Life Insurance Co Valuations Somewhat Stretched

Scotia Capital, 3 November 2006Event� Canadian lifeco share prices have increased 5% in the last two days with the catalyst being the proposed taxation of Income Trust distributions.What It Means� We believe valuations are somewhat stretched at current levels. The forward P/E multiple for the group is 13.6x, well above the 12.5x average for the sector since 2002. The only time the group has