Great-West Lifeco stock posts record Q3 profitability as U.S. leads

Great-West Lifeco reported record underlying profitability for the third quarter on November 4, with its U.S. retirement and wealth businesses leading growth while Canadian group-benefits performance weakened. The company said the quarter showed continued momentum in higher-growth, capital-efficient operations.

Base earnings rose 8 percent year over year to 1.323 billion Canadian dollars, while base earnings per share increased 11 percent to 1.48 Canadian dollars from 1.33 Canadian dollars. Net earnings fell 2 percent to 1.139 billion Canadian dollars, and net earnings per share rose 2 percent to 1.27 Canadian dollars. Great-West Lifeco's base return on equity reached a record 19.4 percent, compared with 17.7 percent a year earlier, meeting management's medium-term objective of at least 19 percent.

The figures are based on the company's non-GAAP measures, which management uses to describe underlying business performance. The release attributed the improvement to continued momentum in Retirement and Wealth, led by Empower, as well as strong new-business growth in Capital and Risk Solutions. Management also cited operating leverage in U.S. Retirement and Wealth and share repurchases completed over the past year.

The regional performance was uneven. U.S. segment base earnings rose 17 percent to 510 million Canadian dollars, helped by higher fee income, stronger markets, positive net plan flows in Retirement, net inflows in Wealth and operating leverage. The segment's base return on equity improved to 22.9 percent. Capital and Risk Solutions also increased base earnings 17 percent to 309 million Canadian dollars, supported by demand for new Capital Solutions business.

Canada remained the principal earnings risk. Canadian base earnings declined 6 percent to 347 million Canadian dollars from 371 million Canadian dollars in the prior-year quarter. Great-West Lifeco attributed the decline mainly to moderated Group Benefits insurance experience, partly offset by stronger Retirement results and improved Insurance and Risk Solutions experience. Europe was steadier, with base earnings up 3 percent to 273 million Canadian dollars.

Management is repositioning the portfolio toward businesses with stronger growth and capital efficiency. Retirement and Wealth now account for more than half of base earnings, while average client assets in both lines increased 16 percent year over year. Total client assets reached 3.9 trillion Canadian dollars at September 30, including 1.3 trillion Canadian dollars in assets under management or advisement.

Capital management also supported the quarter. Great-West Lifeco repurchased 3.7 million common shares for 340 million Canadian dollars, maintained a 127 percent LICAT ratio and completed the acquisition of Milliman's U.S. retirement and benefits administration business. The board approved a quarterly common-share dividend of 0.67 Canadian dollars, payable December 31 to shareholders of record on December 3.

Great-West Lifeco stock traded at 60.43 euros on Lang & Schwarz at 13:20 CET on Thursday, November 12, 2026.

Great-West Lifeco's third-quarter release is available through CNW.

Canadian investors can follow the broader market through the S&P/TSX Composite.

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