Great-West Lifeco (GWO) Q2 2026 earnings summary

Executive summary

• Achieved 15% year-over-year base EPS growth, driven by double-digit gains at Empower and Capital and Risk Solutions (CRS), with net EPS up 20% year-over-year.

• Empower surpassed $2 trillion in client assets and announced the acquisition of Milliman's Retirement and Benefits Administration business, strengthening its U.S. platform.

• Base ROE reached 19.3%, meeting or exceeding medium-term objectives for the second consecutive quarter.

• Strong cash generation and financial flexibility support continued capital deployment through buybacks, M&A, and dividend increases.

• Total client assets grew to $3.7 trillion, with robust growth in Retirement and Wealth segments.

Financial highlights

• Base earnings reached $1,270 million, up 11% year-over-year; net earnings were $1,039 million, up 16%.

• Base EPS was $1.42, up 15% year-over-year; net EPS was $1.16, up 20%.

• Book value per share increased 9% year-over-year to $29.85.

• Base dividend payout ratio improved to 47.3% from 49.2% year-over-year.

• Efficiency ratio improved to 54.1% from 56.7% year-over-year.

Outlook and guidance

• Empower and CRS are projected to maintain double-digit organic base earnings growth through 2026, with Milliman's acquisition expected to be accretive to base earnings in Year 1 and generate a mid-teens IRR.

• Total capital deployment in 2026 is expected to match or exceed 2025 levels.

• LICAT ratio expected to remain at or above 125% for the remainder of the year.

• Empower's platform will benefit from expanded capabilities and cost synergies from the Milliman acquisition.

• CRS run rate earnings seen as sustainable with mid-single digit plus growth expected.