Great-West Lifeco (GWO) Q3 2025 earnings summary

Executive summary

• Achieved record base earnings of $1.23 billion in Q3 2025, up 15% year-over-year, with all major segments—U.S., Europe, and Capital and Risk Solutions (CRS)—delivering double-digit earnings growth.

• Strong execution of strategic priorities, including technology investments, operational efficiency, and robust cash generation supporting increased share buybacks and capital deployment.

• Announced an increase in share buyback target for 2025 to $1.5 billion, with $995 million repurchased year-to-date.

Financial highlights

• Base EPS rose to $1.33 (up 17% YoY); net EPS at $1.25; net earnings reached $1.16 billion.

• Base ROE reached 17.7% (up 40 bps YoY); net ROE at 15.8%.

• LICAT ratio at 131%, leverage ratio at 27%, and Lifeco cash position at $2.5 billion.

• Total client assets grew 15% YoY to $3.3 trillion; AUMA at $1.1 trillion.

• Empower's Retirement business reported US$30 billion in net plan inflows for Q3 2025.

Outlook and guidance

• Medium-term objectives: base EPS growth of 8-10%, base ROE of 19%+, base capital generation 80%+, and dividend payout ratio of 45-55%.

• Expect continued mid-single-digit or better earnings growth in CRS and ongoing positive insurance experience, especially in Canadian group morbidity.

• Plan to repurchase an additional $500 million in shares by year-end under the NCIB.