Great-West Lifeco Posts Double-Digit Earnings Growth on U.S. Retirement Push
Event summary
- Q2 2026 base EPS up 15% YoY to $1.42, net EPS up 20% to $1.16.
- U.S. segment earnings surged 34% YoY, driven by Empower's retirement business.
- $340M acquisition of Milliman's retirement plan and benefits administration announced.
- $336M in share repurchases completed during the quarter.
- Base ROE hits 19.3%, meeting medium-term target.
The big picture
Great-West Lifeco's strong Q2 results reflect its strategic focus on higher-growth, capital-efficient businesses like retirement and wealth management. The Milliman acquisition extends Empower's workplace solutions platform, positioning the company to capitalize on growing demand for comprehensive retirement benefits administration. With $3.7 trillion in total client assets, Great-West continues to leverage scale advantages while maintaining robust capital generation capabilities.
What we're watching
- Integration Challenges
- Whether Empower can successfully integrate Milliman's business and realize expected cost synergies.
- Market Sensitivity
- How interest rate movements may continue to impact net earnings through market experience volatility.
- Capital Deployment
- The pace at which Great-West will execute further share buybacks versus strategic acquisitions.
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