Great-West Lifeco reports record base earnings and announces intention for additional $500 million in share buybacks

Executive Summary

• Great-West Lifeco reported record second-quarter 2025 base earnings of $1.149 billion, an 11% increase year-over-year, driven by strong performance in Wealth and Group Benefits businesses.
• Net earnings from continuing operations were $894 million ($0.96 per share), down 11% from Q2 2024, primarily due to higher business transformation charges and unfavorable market experience.
• The Company announced an intention to repurchase an additional $500 million of common shares in 2025 under its Normal Course Issuer Bid (NCIB), bringing total planned buybacks for the year to $1 billion.

Key Details

• Base Earnings: $1,149 million for Q2 2025 (up 11% from $1,038 million in Q2 2024); $2,179 million year-to-date (up 8% from $2,016 million).
• Net Earnings: $894 million for Q2 2025 ($0.96 EPS), down from $1,005 million ($1.08 EPS) in Q2 2024.
• Base EPS: $1.24 for Q2 2025, up 12% from $1.11 in Q2 2024.
• Return on Equity: Base ROE of 17.4% and ROE of 14.9% for Q2 2025.
• Capital Position: LICAT ratio of 132%; Lifeco cash of $2.1 billion; Book value per share of $27.38 (up 8% YoY).
• Share Repurchases: Repurchased 6.3 million shares in Q2 at a cost of $321 million. Intends to repurchase an additional $500 million in 2025 under NCIB.
• Dividends: Board approved a quarterly dividend of $0.61 per common share, payable September 29, 2025, to shareholders of record on August 29, 2025.
• Segment Performance (Base Earnings Q2 2025):
  • United States: $341 million (up from $335 million in Q2 2024).
  • Canada: $375 million (up from $360 million in Q2 2024).
  • Europe: $262 million (up from $236 million in Q2 2024).
  • Capital and Risk Solutions: $229 million (up from $199 million in Q2 2024).
  • Corporate: $(58) million.
• Client Assets: Total client assets reached $3.0 trillion as of June 30, 2025, with $1.0 trillion in higher-margin assets under management or advisement.
• Empower Performance:
  • Retirement business expects net plan inflows of at least US$25 billion for H2 2025.
  • Wealth net flows improved 83% to US$2.9 billion.
  • Plan participants served: 18.5 million (up 3% YoY).
• Credit Impacts: Q2 2025 base earnings included credit-related impacts of $51 million (post-tax) globally, and US$37 million in the U.S. segment.

Notable Quotes

• "We delivered double-digit base earnings growth in the second quarter, primarily driven by strong performance in our wealth and group benefits businesses, and successfully navigated a period of elevated market volatility," said David Harney, President and CEO. "I am particularly pleased with the strong underlying performance at Empower, which remains well positioned to drive double-digit base earnings growth going forward."