Great-West Lifeco (GWO) Q1 2026 earnings summary

Executive summary

• Achieved double-digit growth in base and net earnings for Q1 2026, with base earnings up 20% to $1.239 billion and net earnings up 39% to $1.192 billion year-over-year, surpassing all financial objectives set at the previous Investor Day.

• Base EPS increased 23% year-over-year to $1.37, supported by significant share repurchases and strong cash generation.

• Achieved base ROE of 19.1%, exceeding the 19%+ medium-term objective for the first time.

• All segments contributed to growth, with Empower, Canada, Europe, and Capital & Risk Solutions delivering robust results.

• Total client assets grew 10% year-over-year to $3.3 trillion.

Financial highlights

• Base earnings: $1,239 million, up 20% year-over-year; Net earnings: $1,192 million, up 39% year-over-year.

• Base EPS: $1.37, up 23% year-over-year; Net EPS: $1.32, up 43% year-over-year.

• Dividend per share increased 10% to $0.67.

• Efficiency ratio improved by 220 bps to 54.5%.

• LICAT ratio at 129%, holdco cash over $2.1 billion, and leverage ratio steady at 28%.

Outlook and guidance

• Confident in sustaining 19%+ base ROE under normal market conditions and well-positioned to deliver base earnings in line with medium-term objectives.

• Empower expected to deliver double-digit base earnings growth for 2026, with CRS likely to exceed medium-term base earnings objectives.

• Targeting over 70% of base earnings from capital-light businesses in the medium term.

• Anticipate maintaining LICAT ratio above 125% and capital return to shareholders at least in line with 2025, barring major M&A.

• Significant financial capacity for further buybacks and strategic opportunities.