Great-West Lifeco (GWO) Investor Day 2025 summary

Strategic direction and business evolution

• Emphasis on driving growth and delivering lasting value through a shift to a more capital-efficient, cash-generative portfolio, supported by secular tailwinds such as aging populations and advice gaps, especially in retirement and wealth sectors.

• Portfolio now consists of four at-scale business segments, each executing clear strategies to unlock value and drive long-term growth, with a willingness to exit businesses lacking leadership potential and redeploy capital to higher-growth opportunities.

• Strategic actions include targeted acquisitions, business dispositions, and investments in brand, technology modernization, and capabilities to strengthen leadership positions.

• Strategic playbook emphasizes organic and inorganic investment, risk and capital discipline, and leveraging scale and new capabilities.

• Medium-term objectives have been raised, reflecting confidence in business fundamentals and execution.

Financial guidance and medium-term objectives

• Raised base ROE objective to 19%+, with a medium-term base EPS growth objective of 8–10%, reflecting growth targets and a shift to a more capital-light business mix.

• Introduced a new capital generation objective: generating capital in excess of 80% of base earnings, supporting strong dividend payout and reinvestment capacity.

• Maintaining a dividend payout objective of 45–55% of base earnings and expectation to deliver mid-teens sustainable total shareholder returns.

• Delivered 8–10% annual base EPS growth and increased base ROE to 17.5% in 2024, with a new target of 19%+ over the medium term.

• Plans to invest $250–$300 million in post-tax transformation charges over 36 months to achieve efficiency gains, with run-rate savings expected to match these charges and an efficiency ratio targeted below 50%.

Segment highlights and growth drivers

• Empower (U.S.): Targeting double-digit base earnings growth, leveraging retirement leadership, expanding into personal wealth, and focusing on the mass affluent segment.

• Canada: Leadership in group benefits and non-bank wealth, aiming for mid single-digit base earnings growth, high cash generation, and efficiency improvements.

• Europe: Market-leading positions in Ireland and the U.K., targeting at least mid single-digit base earnings growth, expansion in Bulk Annuities, and 80–90% capital generation.

• Capital & Risk Solutions: Balanced between capital and risk solutions, targeting mid single-digit+ base earnings growth, supported by secular tailwinds and disciplined execution.

• All segments emphasize capital-efficient growth, high base capital generation (80–90% for Canada and Europe, 60–80% for CRS), and increasing base ROE.