Great-West Lifeco Inc

Latest Results (23.10.2025):

Great-West Lifeco Inc. reported strong financial results for the first quarter of 2025, driven by significant growth in its Wealth and Retirement businesses. The company achieved a 5% increase in base earnings compared to the same period last year, supported by robust performance in its U.S. segment and strategic portfolio repositioning. Despite a decline in net earnings from continuing operations, Great-West Lifeco maintained a solid capital position and continued its commitment to shareholder returns through dividends and share repurchases.

Strong Underlying Performance

Great-West Lifeco Inc. reported base earnings of CA$1.0 billion, a 5% increase year-over-year, reaching CA$1.11 per share. This growth was primarily driven by double-digit earnings growth in the Retirement and Wealth businesses, enhanced by higher equity market performance and improved expense efficiency.

Robust U.S. Segment Growth

The U.S. segment contributed significantly to the overall performance, with base earnings increasing by 13% year-over-year. This growth was fueled by higher average customer account balances, substantial retirement plan acquisitions, and strong net flows in the Wealth business, including a 30% increase in rollover sales.

Strategic Portfolio Repositioning

Great-West Lifeco continued to strategically reposition its portfolio towards higher-growth, capital-efficient businesses. Total client assets surpassed CA$3.0 trillion, with over CA$1.0 trillion in higher-margin assets under management. The Retirement and Wealth businesses saw a 13% growth in client assets across all markets.

Resilience Amid Market Volatility

The company demonstrated resilience during periods of market volatility, supported by a strong capital position with a LICAT ratio of 130% and CA$2.5 billion in cash. Diversification across business segments and a prudent investment approach, including 93% in fixed income assets, contributed to stability despite fluctuating market conditions.

Commitment to Shareholders

Great-West Lifeco continued its commitment to returning value to shareholders by repurchasing 2.1 million shares, aligning with its intention to repurchase CA$500 million in 2025. Additionally, the Board approved a quarterly dividend of CA$0.61 per common share, reinforcing the company’s dedication to shareholder returns.