Great-West Lifeco (GWO) Q3 2025 earnings summary

Executive summary

• Achieved record base earnings of $1.23 billion, up 15% year-over-year, with double-digit growth in the U.S., Europe, and Capital and Risk Solutions segments.

• Net earnings rose 35% year-over-year to $1.16 billion, reflecting strong operational performance and favorable market experience.

• All four business segments delivered base earnings growth in line with or ahead of medium-term ambitions.

• Strong execution of strategic priorities, with robust cash generation supporting increased share buybacks and capital deployment.

• Increased planned share buybacks to $1.5 billion for 2025, with $995 million already repurchased by November 5.

Financial highlights

• Base EPS reached $1.33, up from $1.14 in Q3 2024; net EPS was $1.25, up from $0.92.

• Base ROE was 17.7%, up 40 basis points year-over-year; net ROE at 15.8%.

• Insurance experience gains totaled $112 million, nearly double the four-quarter average.

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

• Empower's Retirement business reported US$30 billion in net plan inflows for Q3 2025; Empower Wealth net inflows hit $3.4 billion, up 43% year-over-year.

Outlook and guidance

• Expect continued double-digit growth in Empower, with plan flows for H2 2025 in line with previous guidance.

• CRS earnings growth expected in the mid-single-digit range or better over the medium term.

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

• Remittances in Q4 expected to align with four-quarter average; strong free cash flow supports ongoing capital deployment.

• Guidance for credit experience is 4-6 basis points post-tax annually, with expected volatility.