Great-West Lifeco reported another quarter of solid growth, with base earnings rising 15% year-on-year to $1.23 billion, or $1.33 per share.
Net earnings climbed to $1.16 billion, up 35% from the same period in 2024. The insurer attributed its record performance to double-digit earnings growth across its US, Europe, and Capital & Risk Solutions (CRS) businesses, along with favourable market movements and improved insurance experience.
President and CEO David Harney said the quarter reflected strong execution of Lifeco’s long-term growth strategy, driven by a focus on capital-efficient businesses and disciplined expense management. The company also announced an increase in its planned share buybacks to $1.5 billion for the full year, supported by $2.5 billion in available cash.
Segment results highlight broad-based strength. In the US, Lifeco's Empower Retirement business recorded US$30 billion in net plan inflows, surpassing earlier expectations, while pretax operating margins reached 32% in Retirement and 38% in Wealth.
In Canada, Group Benefits earnings improved on strong insurance experience, while European operations benefited from higher client assets and favourable currency movements. CRS earnings rose 20% year-over-year to $265 million, driven by sustained demand for capital solutions and favourable claims experience.
Lifeco’s base return on equity stood at 17.7%, ahead of its 17.3% a year earlier, while its Life Insurance Capital Adequacy Test (LICAT) ratio remained a healthy 131%. Though slightly below the industry average of 136%, Lifeco’s capital strength continues to provide flexibility for growth and shareholder returns.
Industry observers note that Lifeco’s momentum reflects broader trends across the life and health insurance market: a shift toward high-margin, capital-light business lines such as retirement and reinsurance, growing demand for group benefits coverage, and increased operational efficiency across digital platforms. Insurers with diversified geographic exposure, like Lifeco, are also better positioned to offset region-specific risks and maintain growth despite volatile market conditions.
