Great-West Lifeco (GWO) Q4 2025 earnings summary

Executive summary

• Achieved record base earnings of $4.6 billion for 2025, up 11% year-over-year, and base EPS up 12%, surpassing medium-term objectives, with double-digit growth in Retirement, Wealth, and Group Benefits, especially at Empower, driving a shift to capital-light business lines.

• Leadership transitions completed, positioning for continued growth in 2026 and beyond, with strong cash generation enabling significant share buybacks and enhanced shareholder focus.

• Total client assets reached $3.3 trillion, with over $1 trillion in higher-margin assets under management or advisement.

• Increased quarterly dividend by 10% to $0.67 per share and renewed share repurchase program, with $1.6 billion in buybacks in 2025.

• Total shareholder return was strong in 2025, supported by robust capital deployment and strategic execution.

Financial highlights

• FY2025 base earnings reached $4,649M, up 11% year-over-year; net earnings were $3,960M.

• Base EPS rose 12% to $5.03; net EPS was $4.29.

• Base ROE reached 18.2%, with the U.S. segment surpassing 20% for the first time; net ROE at 15.5%.

• Total client assets ended at $3.3 trillion, with $1.14 trillion in assets under management or advisement.

• Empower crossed $2 trillion in assets, with net new assets driving 14% organic growth and a 26% increase in base earnings.

Outlook and guidance

• Confident in achieving medium-term growth ambitions, targeting base ROE over 19%, with Empower expected to deliver double-digit earnings growth in 2026.

• On track to generate over 70% of base earnings from capital-light businesses.

• Anticipate bulk annuity volumes in Europe to return to growth in 2026 as regulatory headwinds subside.

• Effective tax rate expected to rise to approximately 18% by 2028 due to business mix and tax changes.