Great-West Lifeco Eyes Future Growth After Strong 2025 Performance

WINNIPEG, MB – February 17, 2026 – Great-West Lifeco is set to provide investors with a detailed look into its strategic roadmap this week, following the release of a robust 2025 earnings report that surpassed analyst expectations and highlighted significant shareholder returns. President & Chief Executive Officer David Harney will participate in a virtual fireside chat with esteemed TD Cowen analyst Mario Mendonca on Thursday, February 19, where the discussion will center on the company's impressive 2025 results and its forward-looking strategy.

The announcement of the chat comes on the heels of the company's fourth-quarter and full-year 2025 financial disclosure on February 11, which painted a picture of strong underlying growth and a firm commitment to capital efficiency. As the financial services giant navigates a complex global market, the upcoming discussion is poised to offer critical insights into how it plans to sustain its momentum.

A Year of Robust Growth and Shareholder Rewards

Great-West Lifeco's 2025 performance underscored a year of significant progress, driven by strong execution across its key business segments. The company reported full-year base earnings of $4.65 billion, an 11% increase from 2024. This translated into a base earnings per share (EPS) of $5.03, a 12% rise that comfortably exceeded the company's own medium-term objectives.

The fourth quarter was particularly strong, with base earnings reaching $1.2 billion, or $1.36 per share, marking a 12% jump from the same period in the previous year and beating consensus analyst forecasts of $1.28 EPS. While reported net earnings for the year were largely flat compared to 2024 at $3.96 billion, the company attributed the variance to one-time business transformation impacts and unfavorable market experience, suggesting the core operational health of the business remains vigorous.

For investors, the most tangible evidence of the company's confidence came in the form of direct capital returns. The board of directors approved a substantial 10% increase in the quarterly common share dividend, raising it to $0.67 per share. This move, coupled with an aggressive share repurchase program that saw $1.6 billion of common shares bought back in 2025, signals a clear and consistent strategy of rewarding shareholders. The company has already repurchased an additional $250 million in shares year-to-date in 2026 and holds authorization for further buybacks, reinforcing a narrative of financial strength and disciplined capital management.

Empowering the Future: The U.S. Engine and Strategic Shifts

A central pillar of Great-West Lifeco's success and future strategy is its U.S. segment, Empower. This division has emerged as the company's primary growth engine, delivering double-digit constant currency base earnings growth of 11% for the full year and an impressive 17% in the fourth quarter. In 2025, Empower surpassed $2 trillion in assets for the first time, a testament to its expanding footprint in the American retirement and wealth management markets.

The segment's retirement business generated a remarkable US$23 billion in net plan flows in 2025, with expectations for continued positive flows in 2026. Furthermore, its wealth division saw 14% net new asset growth and added approximately 500,000 net new plan participants. Management has signaled confidence in this momentum, projecting double-digit earnings growth for Empower again in 2026.

This performance is indicative of a broader strategic pivot within Great-West Lifeco towards higher-growth, capital-efficient businesses. The focus on wealth and retirement solutions allows the company to generate strong returns without tying up excessive capital, a strategy designed to help it achieve its ambitious medium-term base return on equity (ROE) target of 19% or higher. In 2025, the company achieved a base ROE of 18.2%. This strategic realignment is also visible in its Canadian operations, where a significant asset acquisition deal with De Thomas Wealth Management helped drive $2.1 billion in net asset inflows during the fourth quarter.

Navigating a Shifting Financial Landscape

Great-West Lifeco's strong 2025 results were achieved against the backdrop of a dynamic and challenging industry landscape. Fluctuating interest rates, market volatility, and intensifying competition are persistent themes. The company's ability to navigate these factors is underpinned by a robust capital position and a forward-looking approach to operational efficiency.

The company ended 2025 with a Life Insurance Capital Adequacy Test (LICAT) ratio of 128%. While slightly lower than the prior year due to strategic reinvestments, this level remains well above regulatory requirements and provides a solid foundation for growth and resilience. Furthermore, with approximately $2.1 billion in excess cash at the holding company level and an estimated $5 billion in total excess capital, Great-West Lifeco possesses significant financial flexibility. This war chest positions the company to pursue further strategic mergers and acquisitions, allowing it to capitalize on consolidation trends within the wealth management and insurance sectors.

In an era where digital transformation is paramount, the company is also leveraging technology to stay ahead. The integration of artificial intelligence into its operations is aimed at enhancing efficiency and improving customer service, a crucial initiative as competition for both clients and talent intensifies. As peers like Sun Life Financial also report strong earnings, Great-West Lifeco's ability to balance robust growth in its key segments with disciplined capital management and technological adoption will be critical to maintaining its market leadership.

The upcoming fireside chat between CEO David Harney and analyst Mario Mendonca will be a key event for stakeholders seeking to understand how these strategic elements will converge in the year ahead. Investors will be listening intently for deeper color on the sustainability of Empower's growth trajectory, plans for deploying its substantial excess capital, and the company's outlook on the macroeconomic environment. The discussion is expected to provide a crucial update on Great-West Lifeco's journey toward its ambitious financial targets and its long-term vision for creating shareholder value.