Great-West Lifeco (GWO) Q1 2026 earnings summary

Executive summary

• Achieved double-digit growth in base and net earnings for Q1 2026, with base earnings up 20% to $1.239 billion and net earnings up 39% to $1.192 billion year-over-year, surpassing all financial objectives set at the previous Investor Day.

• Base EPS increased 23% year-over-year to $1.37, supported by significant share repurchases and strong cash generation.

• Achieved base ROE of 19.1%, surpassing the 19%+ medium-term objective for the first time.

• All segments contributed to growth, with Empower, Canada, Europe, and Capital & Risk Solutions delivering robust results.

• Total client assets grew 10% year-over-year to $3.3 trillion.

Financial highlights

• Base earnings: $1,239 million (+20% YoY); Net earnings: $1,192 million (+39% YoY).

• Base EPS: $1.37 (+23% YoY); Net EPS: $1.32 (+43% YoY).

• Dividend per share increased 10% to $0.67.

• Book value per share up 3% to $28.41.

• Efficiency ratio improved by 220 bps to 54.5%.

Outlook and guidance

• Confident in sustaining 19%+ base ROE under normal market conditions and well-positioned to deliver base earnings in line with medium-term objectives.

• Empower expected to maintain double-digit base earnings growth in 2026, with CRS new business volumes anticipated to remain strong.

• Targeting over 70% of base earnings from capital-light businesses in the medium term.

• Capital return to shareholders expected to be at least in line with 2025, barring major M&A.

• Significant financial capacity for further buybacks and strategic opportunities.