Great-West Lifeco (GWO) Scotiabank Financials Summit summary

Empower business outlook and strategy

• Empower is seen as a key contributor to medium-term earnings growth targets of 8–10% and ROE objectives, leveraging business diversity and market consolidation opportunities.

• Organic growth at the plan level, cost advantages from scale, and automation are central to offsetting demographic headwinds and margin compression.

• Rollover capture from retiring participants and a segmented market approach, focusing on profitable small plans and disciplined pricing for large cases, are major growth drivers.

• Positive net flows are targeted over a 3–5 year horizon, with volatility expected due to large mandate wins or losses; ongoing investment in client experience and cost efficiency is emphasized.

• Recent M&A integrations, such as Prudential, exceeded retention targets due to disciplined, automated processes, and further consolidation is anticipated, though current focus is on capital rebuilding and value proposition enhancement.

M&A and technology integration

• Scale and open architecture are seen as critical for future-proofing against regulatory and margin pressures, with further industry consolidation expected.

• M&A remains a tool for both defined contribution and personal wealth segments, with recent acquisitions like Personal Capital providing a hybrid digital and human advice platform.

• The business is building a licensed sales force to support both in-plan and rollover opportunities, with potential for further capability-extending acquisitions.

• Technology is balanced with human advice, aiming to deliver both digital access and personalized guidance.

• Current M&A approach is patient and disciplined, focusing on value creation rather than scale for its own sake.

Canadian business and product strategy

• Segregated funds are being repositioned through education and automation to reach a broader client base, emphasizing unique features like creditor protection and probate bypass.

• Group business leverages retirement and benefits platforms to deepen client relationships, with automation and a growing sales force targeting underserved segments.

• NextStep rollover and voluntary benefits have shown strong growth, with a 5–10 year horizon for significant expansion.