Great-West Lifeco reports double-digit base earnings growth and increases share buybacks

Executive Summary

• Great-West Lifeco reported record Q3 2025 base earnings of $1.23 billion (up 15% YoY) and net earnings of $1.16 billion (up 35% YoY).
• The company increased its share‑repurchase plan to $1.5 billion for the full year, having already repurchased $995 million by November 5.
• Strong performance was driven by double‑digit growth across U.S., Europe and Capital & Risk Solutions segments, with client assets reaching $3.31 trillion.

Key Details

• Base Earnings: $1,225 M (Q3 2025) vs. $1,061 M (Q3 2024), +15%.
• Net Earnings: $1,158 M (Q3 2025) vs. $859 M (Q3 2024), +35%.
• Base EPS: $1.33 per share (up 17% YoY).
• Net EPS: $1.25 per share (up 36% YoY).
• Base ROE: 17.7%; ROE: 15.8%, both above prior year levels.
• LICAT Ratio: 131% (down 1 pt YoY, still well‑above requirement).
• Cash Balance: $2.5 billion, providing flexibility for repurchases and investments.

Segment Highlights

• U.S. – Base earnings $436 M (+10% YoY); net earnings $376 M (+23%). Empower’s Retirement net plan inflows $30 B vs. $25 B expected; Wealth net flows +43% to $3.4 B. Pre‑tax operating margins record 32% (Retirement) and 38% (Wealth).
• Canada – Base earnings $371 M (+1% YoY); net earnings $483 M (+5%). Strong Group Benefits experience.
• Europe – Base earnings $266 M (+19% YoY); net earnings $188 M (+49%). Growth driven by higher‑margin assets and favorable currency effects.
• Capital & Risk Solutions – Base earnings $265 M (+20% YoY); net earnings $280 M (up from $19 M a year ago). Segment ROE 41%.

Capital Management

• Share Repurchases: $995 M repurchased to date; additional $500 M planned under NCIB, total FY target $1.5 billion.
• Preferred Share Offering: Completed in Q3 2025 for gross proceeds of $200 M.
• Dividends: Quarterly dividend declared $0.61 per common share (payable Dec 31 2025). Preferred dividends approved on multiple series (see release).

Other Financial Metrics

• Book Value per Share: $27.86 (up 8% YoY).
• Total Client Assets: $3.307 trillion (up ~14%).
• Total Assets Under Management/Advisement: $1.114 trillion.

Notable Quotes

“We successfully executed on our growth strategies this quarter, delivering record base earnings per share with growth above our medium‑term objective,” – David Harney, President & CEO.

Source: Great-West Lifeco Inc., Q3 2025 Quarterly Report to Shareholders (Canada Newswire).