Great-West Lifeco has reported its financial results for the first quarter of 2025, with base earnings reaching $1 billion, or $1.11 per share, a 5% increase from a year ago.
The company’s base return on equity stood at 17.2%, while its ROE from continue operations was 15.6%. The company’s Life Insurance Capital Adequacy Test (LICAT) ratio was 130% and cash holdings amounted to $2.5 billion. The book value per share rose 12% year-over-year to $27.61.
“We delivered strong results in the first quarter, including double-digit base earnings growth in our Retirement and Wealth businesses,” said Paul Mahon (pictured), president and CEO of Great-West.
“Our US segment remains a key driver of this growth, supported by strong net flows from retirement plan wins and rollover sales. Despite elevated market volatility, our core business continues to perform well, underpinned by strong capital generation and a solid balance sheet.”
The increase in base earnings was primarily driven by growth in the Retirement and Wealth businesses, which benefited from higher equity markets, improved expense efficiency, and favourable currency movements.
However, the results were partially offset by lower earnings on surplus, a $45 million write-down on three mortgage loans, a $21 million claims provision related to the California wildfires, and unfavourable mortality experience.
The US segment saw a 13% increase in base earnings, driven by growth in customer account balances and strong performance in retirement plan wins. The segment also added about 270,000 net new plan participants at Empower, an increase of 1.5% from the previous quarter. Net flows in the US Wealth business reached US$2.8 billion, largely due to a 30% increase in rollover sales compared to the previous year.
In the Capital and Risk Solutions segment, base earnings increased by 4% to $213 million, compared to the same quarter last year. The growth was partly offset by insurance experience losses, including a $21 million after-tax provision related to the California wildfires.
In Canada, net flows in the Wealth business grew by over $300 million year-over-year, supported by strong segregated fund sales and Investment Planning Counsel net flows.
The company maintained a strong capital position, with $2.5 billion cash. It also reported a diversified portfolio, with no single operating segment or line of business contributing more than one-third of base earnings. A majority of the company’s investments were in fixed-income assets, with 99% of those rated investment grade.
Meanwhile, the board declared a quarterly dividend of $0.61 per share, payable on June 30 to shareholders of record on June 2.
