A series of first-quarter 2026 results from major insurance and financial groups point to a mixed but generally resilient operating picture, with core earnings and capital positions remaining solid even where reported profits were affected by market volatility and one-off items.
The figures from Sun Life, Great-West Lifeco, Empire Life and iA Financial highlight how diversified business models, protection and wealth growth, as well as targeted capital deployment are shaping performance early in the year.
Sun Life Financial reported underlying net income of $1.05 billion for the first quarter of 2026, up slightly from $1.05 billion a year earlier, as growth in protection businesses offset softer asset management results and higher financing costs. Underlying EPS rose 4% to $1.89 and underlying ROE improved to 18.6% from 17.7%.
Assets under management climbed to $1.575 trillion, up $23 billion year over year, while new business contractual service margin increased to $429 million from $406 million, supported by strong individual insurance sales in Asia and higher fee income in Canada.
The group ended the quarter with a LICAT ratio of 143% at the holding company, down from 149% a year earlier but still comfortably above regulatory minimums, and signaled confidence via a dividend increase to $0.96 per share and its intention to renew a normal course issuer bid for up to 10 million common shares.
Great-West Lifeco reported base earnings of $1.24 billion for Q1 2026, up 20% from $1.03 billion in the prior-year period, with base EPS rising 23% to $1.37 from $1.11.
Base ROE reached 19.1%, above the company’s medium‑term objective of 19%+, while reported ROE came in at 16.8%. Net earnings increased 39% year over year to $1.19 billion, or $1.32 per share, compared with $860 million, or $0.92 per share, in Q1 2025.
Management highlighted continued momentum in retirement and wealth businesses, led by Empower in the US, and sustained strength in Capital and Risk Solutions new business volumes, alongside improved insurance and credit experience and elevated trading activity.
The balance sheet remained solid, with a LICAT ratio of 129% and holding company cash of $2.1 billion at quarter‑end.
Empire Life reported common shareholders’ net income of $6 million for the first quarter of 2026, down from $70 million a year earlier, as less favorable market-related impacts weighed on results compared with the prior-year period.
Despite the volatility in quarterly income, Empire Life’s capital position remained robust.
The company’s LICAT total ratio stood at 150% as of March 31, 2026, compared with 140% a year earlier and 153% at year-end 2025, leaving a healthy buffer above regulatory requirements.
Management emphasized ongoing capital strength and noted that its disciplined strategy has allowed it to absorb recent market swings while continuing to provide returns to shareholders, including an additional dividend.
iA Financial Group posted core diluted EPS of $3.25 for the first quarter of 2026, up 12% from $2.91 a year earlier, with core earnings rising 9% to $298 million.
Core ROE for the trailing 12 months improved to 17.5% from 16.1%, underscoring the contribution from diversified business lines and strong distribution platforms in wealth and insurance. The group reported a 5% increase in individual insurance policies issued, record gross segregated fund sales and continued solid growth in US individual insurance, reflecting elevated activity across its distribution network.
Overall ROE for the trailing 12 months was 14.3%, down from 14.9% at year-end 2025 but above the 13.0% level a year earlier. The solvency ratio improved to 134% at March 31, 2026, from 133% at year-end and 132% a year ago, highlighting a solid capital position supported by strong organic capital generation.
iA continued to signal capital management flexibility, increasing the maximum percentage of shares eligible for repurchase to 8% of public float, while book value per common share remained broadly stable at $78.90 and assets under management and administration rose to $346.1 billion from $264.0 billion a year earlier.
