Great-West Lifeco (GWO) RBC Capital Markets Global Financial Institutions Conference 2025 summary

Macroeconomic and Industry Environment

• Tariffs are not seen as a major risk due to diversified, necessity-based business lines and geographic spread, with 70% of earnings from outside Canada and 40% in U.S. dollars.

• Volatility and risk are managed through conservative investment strategies, asset-liability matching, and diversification.

• The company is focused on long-term growth and resilience, having weathered past economic dislocations.

• Maintains AA/Aa3 credit ratings, 130% LICAT ratio, and $2.2B in holding company cash as of year-end 2024.

• Conservative asset mix: $243.8B invested assets, 99% investment grade, 69% in bonds, 16% in mortgages.

Empower Personal Wealth and Rollover Opportunity

• Empower is a retirement platform with 18.5 million participants and $1.7 trillion in assets under administration, generating over CAD 1 billion in earnings last year.

• Annual rollover opportunity is about $120 billion, with current capture rates in the mid to high teens and a goal to reach market best practices of 40%-50%.

• Growth strategy includes deepening participant relationships, expanding product offerings, and increasing advisor headcount.

• Investments in technology, brand, and acquisitions like Personal Capital and OptionTrax support growth and retention.

• Empower completed the Prudential integration, exceeded retention targets, and divested Putnam Investments to focus on retirement and personal wealth.

Organic and Inorganic Growth Strategies

• Organic growth is driven by winning new plans, increasing participant engagement, and capturing rollovers, supported by cost efficiencies and technology investments.

• Inorganic growth is considered for capability expansion and market consolidation, with a disciplined approach to ensure high client retention and synergy.

• The company is well positioned in the mass affluent segment and is exploring upmarket opportunities.

• Portfolio repositioning emphasized capital-light, organic growth in workplace and wealth, with Empower Personal Wealth and acquisitions driving U.S. expansion.

• Canada Life secured the largest group benefit sale in Canadian history and expanded its wealth platform through acquisitions.