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Power Corporation Reports Second Quarter 2025 Financial Results Français
Readers are referred to the sections Non-IFRS Financial Measures and Forward-Looking Statements later in this release. All figures are expressed in Canadian dollars unless otherwise noted. MONTRÉAL, Aug. 7, 2025 /CNW/ - Power Corporation of Canada (Power Corporation or the Corporation) (TSX: POW; today reported earnings results for the three and six months ended June 30, 2025. Power Corporation Consolidated results for the period ended June 30, 2025 HIGHLIGHTS POWER CORPORATION Net earnings from continuing operations 1 for the second quarter of 2025 were $772 million or $1.20 per share 2, compared with $730 million or $1.12 per share in the second quarter of 2024. Adjusted net earnings from continuing operations 1 3 4 were $883 million or $1.38 per share, compared with $739 million or $1.14 per share in the second quarter of 2024. Adjusted net asset value per share 3 was $64.76 at June 30, 2025, compared with $60.44 at December 31, 2024. Book value per share 5 was $35.90 at June 30, 2025, compared with $35.56 at December 31, 2024. Power group's interest in Wealthsimple, held collectively with IGM Financial and Portage Ventures I, was valued at $2.7 billion, an increase of 21% in the second quarter 6, reflecting Wealthsimple's strong business performance and an increase in peer multiples. The Corporation's direct investment, valued at $997 million, was reflected in the second quarter adjusted net asset value. The Corporation purchased for cancellation 4.4 million subordinate voting shares for a total of $209 million at June 30, 2025. GREAT-WEST LIFECO INC. (LIFECO) Second quarter net earnings from continuing operations were $894 million, compared with $1,005 million in the second quarter of 2024. Adjusted net earnings from continuing operations 7 were $1,149 million, compared with $1,038 million in the second quarter of 2024. Adjusted net earnings from continuing operations increased 11% from the second quarter of 2024, reflecting double-digit growth in Lifeco's Wealth and Group Benefits businesses. Second quarter net earnings from continuing operations primarily reflect higher charges from previously announced business transformation initiatives and unfavourable market experience. Lifeco announced its intention to purchase an additional $500 million of its common shares under its existing Normal Course Issuer Bid (NCIB), increasing the total in fiscal 2025 to $1 billion 8. IGM FINANCIAL INC. (IGM) Second quarter net earnings were $246.7 million, compared with $216.2 million in the second quarter of 2024. Adjusted net earnings 3 were $252.7 million, compared with $220.4 million in the second quarter of 2024. Adjusted net earnings increased 15% from the second quarter of 2024, reflecting strong results across IGM's core operating companies and strategic investments. Record high assets under management and advisement 5 of $283.9 billion, represented an increase of 3.2% from the first quarter of 2025 and 12.5% from June 30, 2024. Assets under management and advisement including strategic investments 5 were $521.1 billion at June 30, 2025, compared with $503.6 billion at March 31, 2025 and $431.7 billion at June 30, 2024. GROUPE BRUXELLES LAMBERT (GBL) GBL reported a net asset value 5 of €14.4 billion or €107.75 per share at June 30, 2025, compared with €15.7 billion or €113.30 per share at December 31, 2024. GBL completed a total of €170 million of share buybacks at June 30, 2025, and cancelled 5.2 million treasury shares. SAGARD HOLDINGS INC. (SAGARD) AND POWER SUSTAINABLE CAPITAL INC. (POWER SUSTAINABLE) Sagard raised US$1.5 billion in new commitments 9 in the second quarter of 2025, including US$0.6 billion raised at Sagard's subsidiary, Performance Equity Management. In the second quarter, the Corporation received cash proceeds of $262 million from the sale of wind projects, representing 425 MW 10, to the Power Sustainable Energy Infrastructure Partnership (PSEIP). The projects were developed by Potentia Renewables Inc., a wholly owned subsidiary of the Corporation. Second Quarter Net earnings from continuing operations attributable to participating shareholders were $772 million or $1.20 per share, compared with $730 million or $1.12 per share in 2024. Adjusted net earnings from continuing operations attributable to participating shareholders 1 were $883 million or $1.38 per share, compared with $739 million or $1.14 per share in 2024. Net earnings attributable to participating shareholders were $772 million or $1.20 per share, compared with $730 million or $1.12 per share in 2024. Adjustments in the second quarter of 2025, excluded from adjusted net earnings from continuing operations, were a negative net impact to earnings of $111 million or $0.18 per share, mainly comprised of the Corporation's share of Adjustments of: Lifeco of negative $168 million, mainly related to business transformation impacts which include a restructuring charge recognized in the second quarter; Partially offset by: IGM of positive $8 million, mainly related to the effect of consolidation which includes a realized gain, recognized on the sale of a corporate investment classified by IGM as FVOCI, reflecting the application of the Corporation's accounting method for investments under common ownership; and Power Sustainable of positive $49 million, mainly related to a recovery on the revaluation of non-controlling interests (NCI) liabilities within the Power Sustainable Energy Infrastructure Partnership, due to a decrease in the fair value of projects held within the fund, and other market-related impacts. In the second quarter of 2024, Adjustments were a negative net impact to earnings of $9 million or $0.02 per share, mainly related to the Corporation's share of Adjustments of Lifeco, partially offset by the Corporation's share of Adjustments of Standalone businesses. Contributions to Power Corporation's Earnings from Continuing Operations (in millions of dollars, except per share amounts) Adjusted Net Earnings Net Earnings 2025 2024 2025 2024 Lifeco 2 790 708 615 686 IGM 2 158 137 154 135 GBL 2 (15) 21 (15) 21 Effect of consolidation - Lifeco and IGM 3 (9) (13) 10 (15) Publicly traded operating companies 924 853 764 827 Sagard and Power Sustainable 4 93 (1) 142 (5) Standalone businesses (2) (26) (2) (5) 1,015 826 904 817 Corporate operations and Other 5 (132) (87) (132) (87) 883 739 772 730 Per participating share 1.38 1.14 1.20 1.12 Average shares outstanding (in millions) 642.1 649.4 642.1 649.4 1 A non-IFRS financial measure; refer to the Non-IFRS Financial Measures section later in this news release. 2 Contribution to net and adjusted net earnings based on earnings reported by Lifeco and IGM. Contribution to net earnings based on earnings reported by GBL. 3 Refer to the detailed table in the Contribution to Net Earnings and Adjusted Net Earnings section of the Corporation's most recent Management's Discussion and Analysis (MD&A) for additional information. 4 Consists of earnings (losses) from the alternative asset investment platforms, including controlled and consolidated subsidiaries. 5 Includes the contribution to net earnings and adjusted net earnings from the Corporation's other investment activities, as well as corporate operations of the Corporation and Power Financial Corporation (Power Financial), which includes operating expenses, financing charges, depreciation, income taxes, and dividends on non-participating and perpetual preferred shares. Refer to the Earnings Summary below. Publicly traded operating companies: contribution to net earnings from continuing operations was $764 million, a decrease of 7.6% from the second quarter of 2024, and contribution to adjusted net earnings from continuing operations was $924 million, an increase of 8.3% from the second quarter of 2024: Lifeco: contribution to net earnings decreased by $71 million or 10.3% and contribution to adjusted net earnings increased by $82 million or 11.6%. IGM: contribution to net earnings and adjusted net earnings increased by $19 million or 14.1% and by $21 million or 15.3%, respectively. GBL: contribution to net earnings and to adjusted net earnings of negative $15 million in the second quarter of 2025, compared with a contribution to net earnings and adjusted net earnings of positive $21 million in the second quarter of 2024. Sagard and Power Sustainable: Sagard had a contribution to net earnings and adjusted net earnings of $106 million, mainly driven by fair value changes in the private equity portfolio. Power Sustainable's contribution to net earnings and adjusted net earnings was $36 million and negative $13 million, respectively. Six Months Net earnings from continuing operations attributable to participating shareholders were $1,461 million or $2.27 per share, compared with $1,488 million or $2.29 per share in 2024. Adjusted net earnings from continuing operations attributable to participating shareholders 1 were $1,670 million or $2.60 per share, compared with $1,449 million or $2.23 per share in 2024. Net earnings attributable to participating shareholders were $1,461 million or $2.27 per share, compared with $1,439 million or $2.21 per share in 2024. Contributions to Power Corporation's Earnings from Continuing Operations (in millions of dollars, except per share amounts) Adjusted Net Earnings Net Earnings 2025 2024 2025 2024 Lifeco 2 1,493 1,374 1,202 1,388 IGM 2 307 277 301 274 GBL 2 (12) 75 10 75 Effect of consolidation - Lifeco and IGM 3 (14) (28) 3 (33) Publicly traded operating companies 1,774 1,698 1,516 1,704 Sagard and Power Sustainable 4 127 (31) 164 (10) Standalone businesses (7) (49) 5 (37) 1,894 1,618 1,685 1,657 Corporate operations and Other 5 (224) (169) (224) (169) 1,670 1,449 1,461 1,488 Per participating share 2.60 2.23 2.27 2.29 Average shares outstanding (in millions) 642.6 650.0 642.6 650.0 1 A non-IFRS financial measure; refer to the Non-IFRS Financial Measures section later in this news release. 2 Contribution to net and adjusted net earnings based on earnings reported by Lifeco and IGM. Contribution to net earnings based on earnings reported by GBL. 3 Refer to the detailed table in the Contribution to Net Earnings and Adjusted Net Earnings section of the Corporation's most recent MD&A for additional information. 4 Consists of earnings (losses) from the alternative asset investment platforms, including controlled and consolidated subsidiaries. 5 Includes the contribution to net earnings and adjusted net earnings from the Corporation's other investment activities, as well as corporate operations of the Corporation and Power Financial, which includes operating expenses, financing charges, depreciation, income taxes, and dividends on non-participating and perpetual preferred shares. Refer to the Earnings Summary below. Great-West Lifeco, IGM Financial and Groupe Bruxelles LambertResults for the quarter ended June 30, 2025 The information below is derived from Lifeco's and IGM's second quarter MD&As, as prepared and disclosed by the respective companies in accordance with applicable securities legislation and which are included in Parts B and C, respectively, of the Corporation's interim MD&A for the period ended June 30, 2025, available under the Corporation's profile on SEDAR+ ( and are also available either under their respective profiles on SEDAR+ ( or from their websites, and The information below related to GBL is derived from publicly disclosed information, as issued by GBL in its half-year report at June 30, 2025. Further information on GBL's results is available on its website at Second Quarter Net earnings from continuing operations attributable to common shareholders were $894 million or $0.96 per share, compared with $1,005 million or $1.08 per share in 2024. Adjusted net earnings from continuing operations 1 attributable to common shareholders were $1,149 million or $1.24 per share, compared with $1,038 million or $1.11 per share in 2024. Net earnings attributable to common shareholders were $894 million or $0.96 per share, compared with $1,005 million or $1.08 per share in 2024. Adjustments in the second quarter of 2025, excluded from adjusted net earnings, were a net negative impact of $255 million, compared with a net negative impact of $33 million in 2024. Lifeco's Adjustments consisted of: Market experience relative to expectations of negative $104 million; Assumption changes and management actions of negative $3 million; Business transformation impacts, primarily related to a restructuring charge in Canada, of negative $121 million; and Amortization of acquisition-related finite life intangible assets of negative $38 million; Partially offset by tax legislative changes and other tax impacts of positive $11 million. IGM FINANCIAL INC. Second Quarter Net earnings available to common shareholders were $246.7 million or $1.04 per share, compared with $216.2 million or $0.91 per share in 2024. Adjusted net earnings attributable to common shareholders were $252.7 million or $1.07 per share, compared with $220.4 million or $0.93 per share in 2024. Assets under management and advisement (AUM&A) 2 at June 30, 2025 were $283.9 billion, an increase of 3.2% from March 31, 2025 and 12.5% from June 30, 2024. Net inflows 3 were $90 million in the second quarter of 2025, compared with net outflows of $1.1 billion in 2024. GROUPE BRUXELLES LAMBERT Second Quarter GBL reported a net loss of €50 million, compared with net earnings of €85 million in 2024. GBL reported a net asset value 2 of €14,352 million or €107.75 per share at June 30, 2025, compared with €15,681 million or €113.30 per share at December 31, 2024. Sagard and Power Sustainable Results for the quarter ended June 30, 2025 Sagard and Power Sustainable comprise the results of the Corporation's alternative asset investment platforms, which includes income earned from asset management and investing activities. Asset management activities includes fee-related earnings (a non-IFRS financial measure, see the Non-IFRS Financial Measures section later in this news release), which is comprised of management fees and fee-related performance revenues less investment platform expenses. Asset management activities also includes carried interest and income from other management activities. Investing activities comprises income earned on the capital invested by the Corporation (proprietary capital) in the investment funds managed by each platform and the share of earnings (losses) of controlled and consolidated subsidiaries held within the alternative asset investment platforms. For additional information, refer to the table later in this news release. Second Quarter Net earnings of the alternative asset investment platforms were $142 million, compared with a net loss of $5 million in 2024. The adjusted net earnings of the alternative asset investment platforms were $93 million, compared with an adjusted net loss of $1 million in 2024. The adjusted net earnings are comprised of: A positive contribution of $106 million from Sagard comprised of a positive contribution of $8 million from asset management activities and a positive contribution of $98 million from investing activities, mainly related to fair value changes in the private equity portfolio; and A negative contribution of $13 million from Power Sustainable comprised of a negative contribution of $14 million from asset management activities and a positive contribution of $1 million from investing activities. Adjustments in the second quarter of 2025, excluded from adjusted net earnings, were a positive impact of $49 million, compared with a negative impact of $4 million in 2024. Power Sustainable Adjustments consisted primarily of a recovery from the revaluation of NCI liabilities 1 within PSEIP, due to a decrease in the fair value of projects held within the fund, and other market-related impacts. 1 The Corporation controls and consolidates the activities of PSEIP in accordance with IFRS; however, limited partner equity interests held by third parties have redemption features and are classified as a financial liability and remeasured at their redemption value. Includes the share of losses from the consolidated activities of PSEIP attributable to third-party investors. The net asset value 2 of PSEIP was $2,097 million at June 30, 2025, compared with $2,012 million at December 31, 2024. In the second quarter of 2025, there was an unrealized decrease in fair value of the assets within the portfolio of $91 million, excluding foreign exchange losses. 2 Refer to the Other Measures section later in this news release. 3 Includes ownership in Wealthsimple Financial Corp. (Wealthsimple) valued at $2.6 billion at June 30, 2025 ($1.5 billion at June 30, 2024) and excludes assets under management of Sagard's private wealth investment platform. In the second quarter of 2025, Sagard acquired a controlling interest in BEX Capital SAS, representing assets under management of $3.1 billion at June 30, 2025. 4 Associated companies includes commitments from Lifeco, IGM and GBL, as well as commitments from management. Adjusted Net Asset Value and Participating Shareholders' EquityAt June 30, 2025 Adjusted Net Asset Value Adjusted net asset value is presented for Power Corporation and represents management's estimate of the fair value of the participating shareholders' equity of the Corporation. Adjusted net asset value is calculated as the fair value of the assets of the combined Power Corporation and Power Financial holding company (the gross asset value) less their net debt and preferred shares. Refer to the Non-IFRS Financial Measures section later in this news release for a description and reconciliation. The Corporation's adjusted net asset value per share was $64.76 at June 30, 2025, compared with $60.44 at December 31, 2024, an increase of 7.1%. (in millions of dollars, except per share amounts) June 30, 2025 December 31, 2024 Variation % Publicly traded operating companies Lifeco 32,910 30,292 9 IGM 6,364 6,792 (6) GBL 2,551 2,162 18 41,825 39,246 7 Alternative asset investment platforms Sagard 1 2,467 2,181 13 Power Sustainable 1 2 830 1,155 (28) 3,297 3,336 (1) Other Standalone businesses 87 85 2 Cash and cash equivalents 1,664 1,606 4 Other assets and investments 536 451 19 2,287 2,142 7 Gross asset value 47,409 44,724 6 Liabilities and preferred shares (5,845) (5,750) (2) Adjusted net asset value 41,564 38,974 7 Shares outstanding (in millions) 641.8 644.8 Adjusted net asset value per share 64.76 60.44 7 1 Includes the management companies as well as the fair value of proprietary capital invested in assets managed within the platforms. The management company of Sagard is presented at its fair value and the management company of Power Sustainable is presented at its carrying value. 2 In the second quarter of 2025, wind assets developed by Potentia Renewables Inc., a wholly owned subsidiary, representing 425 MW were sold to PSEIP. The Corporation received cash proceeds of $262 million. 1 At June 30, 2025 2 Held through Parjointco SA (Parjointco), a jointly controlled corporation (50%) Participating Shareholders' Equity Book value per participating share represents Power Corporation's participating shareholders' equity divided by the number of participating shares outstanding at the end of the reporting period. Participating shareholders' equity is calculated as the total assets of the combined Power Corporation and Power Financial holding company, including investments in subsidiaries presented using the equity method, less their net debt and preferred shares. The Corporation's book value per participating share was $35.90 at June 30, 2025, compared with $35.56 at December 31, 2024, an increase of 1.0%. (in millions of dollars, except per share amounts) June 30, 2025 December 31, 2024 Variation % Publicly traded operating companies Lifeco 17,253 17,108 1 IGM 4,144 4,094 1 GBL 3,518 3,683 (4) 24,915 24,885 − Alternative asset investment platforms Sagard 1,316 1,146 15 Power Sustainable 366 503 (27) 1,682 1,649 2 Other Standalone businesses 91 89 2 Cash and cash equivalents 1,664 1,606 4 Other assets and investments 536 451 19 2,291 2,146 7 Total assets 28,888 28,680 1 Liabilities and preferred shares (5,845) (5,750) (2) Participating shareholders' equity 23,043 22,930 − Shares outstanding (in millions) 641.8 644.8 Book value per participating share 35.90 35.56 1 Dividend on Power Corporation Participating Shares The Board of Directors declared a quarterly dividend of 61.25 cents per share on the Participating Preferred Shares and the Subordinate Voting Shares of the Corporation, payable October 31, 2025 to shareholders of record September 29, 2025. Dividends on Power Corporation Non-Participating Preferred Shares The Board of Directors also declared quarterly dividends on the Corporation's preferred shares, payable October 15, 2025 to shareholders of record at September 24, 2025: Investor Information About Power Corporation Power Corporation is an international management and holding company that focuses on financial services in North America, Europe and Asia. Its core holdings are leading insurance, retirement, wealth management and investment businesses, including a portfolio of alternative asset investment platforms. To learn more, visit At June 30, 2025, Power Corporation held the following economic interests: 1 Held through Parjointco, a jointly controlled corporation (50%). 2 Undiluted equity interest held by Portag3 Ventures Limited Partnership (Portage Ventures I), Power Financial and IGM, representing a fully diluted equity interest of 42.2%. 3 The Corporation held a 47.4% interest in Sagard Holdings Management Inc., and Lifeco and GBL also held interests of 11.8% and 5.2%, respectively. 4 The Corporation held a 74.7% interest in Power Sustainable Manager Inc., and Lifeco also held a 20.8% interest. Earnings Summary Contribution to Adjusted Net Earnings and Net Earnings Three months ended June 30, Six months ended June 30, (in millions of dollars, except per share amounts) 2025 2024 2025 2024 Adjusted net earnings from continuing operations 1 Lifeco 2 790 708 1,493 1,374 IGM 2 158 137 307 277 GBL (15) 21 (12) 75 Effect of consolidation – Lifeco and IGM 3 (9) (13) (14) (28) 924 853 1,774 1,698 Sagard and Power Sustainable 93 (1) 127 (31) Standalone businesses (2) (26) (7) (49) Corporate operations and Other 4 (132) (87) (224) (169) Adjusted net earnings from continuing operations 5 883 739 1,670 1,449 Adjustments 6 (111) (9) (209) 39 Net earnings from continuing operations 5 Lifeco 2 615 686 1,202 1,388 IGM 2 154 135 301 274 GBL 2 (15) 21 10 75 Effect of consolidation – Lifeco and IGM 3 10 (15) 3 (33) 764 827 1,516 1,704 Sagard and Power Sustainable 142 (5) 164 (10) Standalone businesses (2) (5) 5 (37) Corporate operations and Other 4 (132) (87) (224) (169) Net earnings from continuing operations 5 772 730 1,461 1,488 Net earnings (loss) from discontinued operations – Putnam 7 − − − (49) Net earnings 5 772 730 1,461 1,439 Earnings per share – basic 5 Adjusted net earnings from continuing operations 1.38 1.14 2.60 2.23 Adjustments (0.18) (0.02) (0.33) 0.06 Net earnings from continuing operations 1.20 1.12 2.27 2.29 Net earnings (loss) from discontinued operations – Putnam − − − Net earnings 1.20 1.12 2.27 2.21 1 For a reconciliation of Lifeco, IGM, and Sagard and Power Sustainable's non-IFRS adjusted net earnings to their net earnings, and the contribution to adjusted net earnings from GBL and standalone businesses, refer to the Non-IFRS Financial Measures and Sagard and Power Sustainable sections below. 2 Contribution to net and adjusted net earnings based on earnings reported by Lifeco and IGM. Contribution to net earnings based on earnings reported by GBL. 3 Refer to the detailed table in the Contribution to Net Earnings and Adjusted Net Earnings section of the Corporation's most recent MD&A for additional information. 4 Includes the contribution to net earnings and adjusted net earnings from the Corporation's other investment activities, as well as corporate operations, which includes operating expenses, financing charges, depreciation, income taxes, and dividends on non-participating and perpetual preferred shares. 5 Attributable to participating shareholders. 6 Refer to the detailed table of Adjustments in the Non-IFRS Financial Measures section below. 7 Putnam U.S. Holdings I, LLC (Putnam). Sagard and Power Sustainable Three months ended June 30, Six months ended June 30, (in millions of dollars) 2025 2024 2025 2024 Contribution to Power Corporation's: Adjusted net earnings (loss) Asset management activities 1 Sagard 2 8 1 4 − Power Sustainable (14) (18) (20) (32) Investing activities (proprietary capital) Sagard 3 98 26 139 32 Power Sustainable 4 1 (10) 4 (31) Adjusted net earnings (loss) 93 (1) 127 (31) Adjustments 5 Power Sustainable 49 (4) 37 21 Net earnings (loss) 142 (5) 164 (10) 1 Includes management fees charged by the investment platforms on proprietary capital. Management fees paid by the Corporation are deducted from income from investing activities. 2 In the second quarter of 2025, Sagard recognized a retroactive management fee of $5 million related to new capital committed in the fundraising close of Sagard Healthcare Partners, PEM-PVC VI and PEM-PDI V ($4 million in the second quarter of 2024 related to the fundraising close of Portage Capital Solutions). 3 Includes the Corporation's share of earnings (losses) of Wealthsimple. The second quarter of 2025 includes a charge of $14 million related to the Corporation's share of the carried interest payable due to the increase in fair value of the investment held in Wealthsimple. 4 Consists mainly of the Corporation's share of earnings (losses) from direct investments in energy infrastructure and in the consolidated activities of PSEIP, as well as fair value changes of other investments managed within the Power Sustainable platform. 5 Refer to the detailed table of Adjustments in the Non-IFRS Financial Measures section below. Corporate operations and Other 1 Includes the Corporation's investments held in private investment funds, as well as foreign exchange gains or losses and interest on cash and cash equivalents. 2 Includes operating expenses, financing charges, depreciation and income taxes of the Corporation and Power Financial. BASIS OF PRESENTATION The condensed consolidated interim financial statements of the Corporation have been prepared in accordance with International Financial Reporting Standards (IFRS) unless otherwise noted and are the basis for the figures presented in this news release, unless otherwise noted. NON-IFRS FINANCIAL MEASURES Net earnings from continuing operations attributable to participating shareholders are comprised of: Adjusted net earnings from continuing operations (adjusted net earnings) attributable to participating shareholders; and Adjustments, which include the after-tax impact of any item that in management's judgment, including those identified by management of Lifeco and IGM, would make the period-over-period comparison of results from operations less meaningful. Includes the Corporation's share of Lifeco's impact of market-related impacts, where actual market returns in the current period are different than longer-term expected returns; assumption changes and management actions that impact the measurement of assets and liabilities; direct equity and interest rate impacts on the measurement of surplus assets and liabilities; and amortization of acquisition-related finite life intangible assets, as well as items that management believes are not indicative of the underlying business results which include those identified by management of a subsidiary or a jointly controlled corporation, including: business transformation impacts (including restructuring or reorganization and integration costs, acquisition and divestiture costs); material legal settlements; material impairment charges; material impacts of the remeasurement of deferred tax assets and liabilities including those as a result of income tax rate changes, and other tax impairments; certain non-recurring material items, net gains, losses or costs related to the disposition or acquisition of a business, including those related to an investment in an associate or jointly controlled corporation; impacts related to remeasurements due to market changes that result in an accounting mismatch including the remeasurement of derivatives where the hedged item is not also measured at fair value and hedge accounting is not applied, and the revaluation of redemption liabilities, share warrants and conversion options on convertible and exchangeable debt obligations; the impact of the revaluation of non-controlling interests liabilities related to PSEIP which result from changes in fair value of assets held within the fund, and the share of earnings (losses) from the consolidated activities of PSEIP attributable to third-party investors; and other items that, when removed, assist in explaining underlying operating performance. Adjusted net earnings from continuing operations (or adjusted net earnings) represents net earnings from continuing operations excluding Adjustments. In 2024, the Corporation modified the definition of adjusted net earnings, a non-IFRS earnings measure, to better reflect the underlying performance of the Corporation. Effective the fourth quarter of 2024, the definition of Adjustments was modified to include the impacts from applying the definition of Adjustments to the net earnings disclosed by GBL, the results of the Corporation's investing activities and the standalone businesses. The definition was also expanded to include impacts related to remeasurements due to market changes that result in an accounting mismatch. The comparative periods have been restated to conform with the current definition. Management uses these financial measures in its presentation and analysis of the financial performance of Power Corporation, and believes that they provide additional meaningful information to readers in their analysis of the results of the Corporation. Adjusted net earnings, as defined by the Corporation, assists the reader in the comparison of the current period's results to those of previous periods as it reflects management's view of the operating performance of the Corporation and its subsidiaries, excluding items that are not considered to be part of the underlying business results. Fee-related earnings is presented for Sagard and Power Sustainable and includes management fees and fee-related performance revenues earned across all asset classes, less investment platform expenses which include i) fee-related compensation including salary, bonus, and benefits, and ii) operating expenses. Fee-related performance revenues represents the realized portion of performance revenues from perpetual capital vehicles that are i) measured and expected to be received on a recurring basis, ii) not dependent on realization events from underlying investments, and iii) not subject to clawback. Fee-related earnings is presented on a gross pre-tax basis, including non-controlling interests. Fee-related earnings excludes i) share-based compensation expenses, ii) amortization of acquisition-related finite life intangible assets, iii) foreign exchange-related gains and losses, iv) net interest, and v) other items that in management's judgment are not indicative of underlying operating performance of the alternative asset investment platforms, which include restructuring costs, transaction and integration costs related to business acquisitions and certain non-recurring material items. Management uses this measure to assess the profitability of the asset management activities of the alternative asset investment platforms. This financial measure provides insight as to whether recurring revenues from management fees and fee-related performance revenues, which are not based on future realization events, are sufficient to cover associated operating expenses. Adjusted net asset value is commonly used by holding companies to assess their value. Adjusted net asset value represents the fair value of the participating shareholders' equity of Power Corporation. Adjusted net asset value is calculated as the fair value of the assets of the combined Power Corporation and Power Financial holding company less their net debt and preferred shares. The investments held in public entities (including Lifeco, IGM and GBL) are measured at their market value and investments in private entities and investment funds are measured at management's estimate of fair value. The definition of adjusted net asset value involves a number of assumptions, judgments and estimates that may prove to be inaccurate, and the adjusted net asset value per share is not a representation or guarantee of the value a participating shareholder will be able to realize. This measure presents the fair value of the participating shareholders' equity of the holding company, and assists the reader in determining or comparing the fair value of investments held by the holding company or its overall fair value. Adjusted net earnings attributable to participating shareholders, fee-related earnings, adjusted net asset value, gross asset value, adjusted net earnings from continuing operations per share (adjusted net earnings per share) and adjusted net asset value per share are non-IFRS financial measures and ratios that do not have a standard meaning and may not be comparable to similar measures used by other entities. Presentation of Holding Company Activities The Corporation's reportable segments include Lifeco, IGM and GBL, which represent the Corporation's investments in publicly traded operating companies, as well as the holding company. These reportable segments, in addition to the asset management activities, reflect Power Corporation's management structure and internal financial reporting. The Corporation evaluates its performance based on the operating segment's contribution to earnings. The holding company comprises the corporate activities of the Corporation and Power Financial, on a combined basis, and presents the investment activities of the Corporation. The investment activities of the holding company, including the investments in Lifeco, IGM and controlled entities within the alternative asset investment platforms, are presented using the equity method. The holding company activities present the holding company's assets and liabilities, including cash, investments, debentures and non-participating shares. The discussions included in the sections Financial Position and Cash Flows of the Corporation's most recent MD&A present the segmented balance sheets and cash flow statements of the holding company, which are presented in Note 20 of the Interim Consolidated Financial Statements. This presentation is useful to the reader as it presents the holding company's (parent) results separately from the results of its consolidated operating subsidiaries. Power Corporation Adjusted net earnings from continuing operations Three months ended June 30, Six months ended June 30, (in millions of dollars) 2025 2024 2025 2024 Adjusted net earnings from continuing operations – Non-IFRS financial measure 1 883 739 1,670 1,449 Share of Adjustments 2, net of tax Lifeco (168) (23) (286) 8 IGM 8 (3) 6 (2) GBL − − 22 − Sagard and Power Sustainable 49 (4) 37 21 Standalone businesses − 21 12 12 (111) (9) (209) 39 Net earnings from continuing operations – IFRS financial measure 1 772 730 1,461 1,488 Net earnings (loss) from discontinued operations – Putnam − − − (49) Net earnings – IFRS financial measure 1 772 730 1,461 1,439 1 Attributable to participating shareholders of Power Corporation. 2 Refer to the Adjustments section for more details on Adjustments from Lifeco, IGM, GBL, Sagard and Power Sustainable and the Standalone businesses. Adjustments (excluded from Adjusted net earnings) Three months ended June 30, Six months ended June 30, (in millions of dollars) 2025 2024 2025 2024 Lifeco 1 Market experience relative to expectations (pre-tax) (80) 30 (157) 123 Income tax (expense) benefit 8 (11) 23 (31) Assumption changes and management actions (pre-tax) (3) 1 (32) 3 Income tax (expense) benefit 1 26 8 23 Business transformation impacts (pre-tax) 2 (124) (24) (133) (69) Income tax (expense) benefit 41 4 43 16 Amortization of acquisition-related finite life intangible assets (pre-tax) (34) (35) (69) (69) Income tax (expense) benefit 8 10 18 18 Tax legislative changes and other tax impacts 8 (23) 8 − (175) (22) (291) 14 Effect of consolidation (pre-tax) 3 7 (1) 5 (6) Income tax (expense) benefit − − − − (168) (23) (286) 8 IGM 1 Rockefeller debt refinancing (pre-tax) − (2) − (2) Income tax (expense) benefit − − − − Share of Lifeco adjustments (pre-tax) (4) − (6) (1) Income tax (expense) benefit − − − − (4) (2) (6) (3) Effect of consolidation (pre-tax) 3 14 (1) 14 − Income tax (expense) benefit (2) − (2) 1 8 (3) 6 (2) GBL Share of Affidea's gain on debt modification − − 22 − Sagard and Power Sustainable Currency translation reclassification on Power Sustainable China (pre-tax) − − − 54 Income tax (expense) benefit − − − − Revaluation of NCI liabilities and other market-related impacts (pre-tax) 38 (2) 24 (18) Income tax (expense) benefit 11 − 13 (1) Restructuring charges (pre-tax) − (2) − (14) Income tax (expense) benefit − − − − 49 (4) 37 21 Standalone businesses Gain on disposal of an affiliated business of Peak (pre-tax) − 46 − 46 Income tax (expense) benefit − − − − Lion impairment and other market-related impacts (pre-tax) − (30) − (42) Income tax (expense) benefit − 5 − 8 LMPG remeasurement of deferred tax liabilities − − 12 − − 21 12 12 (111) (9) (209) 39 1 As reported by Lifeco and IGM. 2 Business transformation impacts include restructuring and integration costs as well as acquisition and divestiture costs. 3 The Effect of consolidation reflects: i) the elimination of intercompany transactions; and ii) the application of the Corporation's accounting method for investments under common ownership to the Adjustments reported by Lifeco and IGM, including a realized gain recognized by IGM in the second quarter of 2025 on the sale of a portion of its interest in Conquest Planning Inc., a corporate investment classified by IGM as FVOCI. Adjusted net asset value Adjusted net asset value represents management's estimate of the fair value of the participating shareholders' equity of the Corporation. Adjusted net asset value is calculated as the fair value of the assets of the combined Power Corporation and Power Financial holding company less their net debt and preferred shares. The Corporation's adjusted net asset value per share is presented on a look-through basis. The following table presents a reconciliation of the participating shareholders' equity reported in accordance with IFRS to the adjusted net asset value, a non-IFRS financial measure: (in millions of dollars, except per share amounts) June 30, 2025 December 31, 2024 Participating shareholders' equity – IFRS financial measure Share capital – participating shares 9,219 9,236 Retained earnings 11,774 11,364 Reserves 2,050 2,330 23,043 22,930 Fair value adjustments 1 Lifeco 15,657 13,184 IGM 2,220 2,698 GBL (967) (1,521) Sagard and Power Sustainable 1,615 1,687 Standalone businesses (4) (4) 18,521 16,044 Adjusted net asset value – Non-IFRS financial measure 41,564 38,974 Per share 2 Participating shareholders' equity (book value) 35.90 35.56 Adjusted net asset value 64.76 60.44 1 Refer to the table below for more details on the fair value adjustments. 2 Attributable to participating shareholders. The Corporation's adjusted net asset value per share was $64.76 at June 30, 2025, compared with $60.44 at December 31, 2024, representing an increase of 7.1%. The Corporation's book value per participating share was $35.90 at June 30, 2025, compared with $35.56 at December 31, 2024, representing an increase of 1.0%. June 30, 2025 December 31, 2024 (in millions of dollars, except per share amounts) Holding company balance sheet Fair value adjustment Adjusted net asset value Holding company balance sheet Fair value adjustment Adjusted net asset value Holding company assets Investments Power Financial Lifeco 17,253 15,657 32,910 17,108 13,184 30,292 IGM 4,144 2,220 6,364 4,094 2,698 6,792 GBL 1 3,518 (967) 2,551 3,683 (1,521) 2,162 Alternative asset investment platforms Asset management companies 2 Sagard 153 253 406 115 314 429 Power Sustainable 16 − 16 2 − 2 Investing activities Sagard 3 1,163 898 2,061 1,031 721 1,752 Power Sustainable 350 464 814 501 652 1,153 Standalone businesses 91 (4) 87 89 (4) 85 Cash and cash equivalents 1,664 − 1,664 1,606 − 1,606 Other assets and investments 536 − 536 451 − 451 Total holding company assets 28,888 18,521 47,409 28,680 16,044 44,724 Holding company liabilities and non-participating shares Debentures and other debt instruments 897 − 897 897 − 897 Other liabilities 4 1,168 − 1,168 1,073 − 1,073 Non-participating shares and perpetual preferred shares 3,780 − 3,780 3,780 − 3,780 Total holding company liabilities and non-participating shares 5,845 − 5,845 5,750 − 5,750 Net value Participating shareholders' equity (IFRS) / Adjusted net asset value (non-IFRS) 23,043 18,521 41,564 22,930 16,044 38,974 Per share 35.90 64.76 35.56 60.44 1 The Corporation's share of GBL's reported net asset value was $3.9 billion (€2.5 billion) at June 30, 2025 ($3.9 billion (€2.6 billion) at December 31, 2024). 2 The management company of Sagard is presented at its fair value. The management company of Power Sustainable is presented at its carrying value. 3 Includes the Corporation's investments in Portage Ventures I, Portage Ventures II and Wealthsimple, held by Power Financial. 4 In accordance with IAS 12, Income Taxes, no deferred tax liability is recognized with respect to temporary differences associated with investments in subsidiaries and jointly controlled corporations as the Corporation is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. If the Corporation were to dispose of an investment in a subsidiary or a jointly controlled corporation, income taxes payable on such disposition would be minimized through careful and prudent tax planning and structuring, as well as with the use of available tax attributes not otherwise recognized on the balance sheet, including tax losses, tax basis, safe income and foreign tax surplus associated with the subsidiary or jointly controlled corporation. This news release also contains other non-IFRS financial measures which are publicly disclosed by the Corporation's subsidiaries including adjusted net earnings and adjusted net earnings per share. The section below includes the description and reconciliation of the non-IFRS financial measures included in this news release as reported by the Corporation's subsidiaries. The information below is derived from Lifeco's and IGM's second quarter MD&As, as prepared and disclosed by the respective companies in accordance with applicable securities legislation, and which are also available either directly from SEDAR+ ( or from their websites, and Lifeco Adjusted net earnings (loss) from continuing operations attributable to Lifeco's common shareholders Adjusted net earnings (loss) from continuing operations 1 (adjusted net earnings (loss)) reflects Lifeco management's view of the underlying business performance of Lifeco and provides an alternate measure to understand the underlying business performance compared with IFRS net earnings. Adjusted net earnings (loss) excludes the following items from IFRS-reported net earnings: Market-related impacts, where actual market returns in the current period are different than longer-term expected returns; Assumption changes and management actions that impact the measurement of assets and liabilities; Business transformation impacts which include acquisition and divestiture costs and restructuring and integration costs; Material legal settlements, material impairment charges related to goodwill and intangible assets, impacts of income tax rate changes on the remeasurement of deferred tax assets and liabilities and other tax impairments, net gains, losses or costs related to the disposition or acquisition of a business, and net earnings (loss) from discontinued operations; The direct equity and interest rate impacts on the measurement of surplus assets and liabilities; Amortization of acquisition-related finite life intangible assets; and Other items that, when removed, assist in explaining Lifeco's underlying business performance. Three months ended June 30, Six months ended June 30, (in millions of dollars) 2025 2024 2025 2024 Adjusted net earnings – Non-IFRS financial measure 1 2 1,149 1,038 2,179 2,016 Adjustments 3 Market experience relative to expectations (pre-tax) (116) 45 (229) 181 Income tax (expense) benefit 12 (17) 34 (46) Assumption changes and management actions (pre-tax) (5) 1 (47) 4 Income tax (expense) benefit 2 38 12 34 Business transformation impacts (pre-tax) 4 (181) (35) (194) (102) Income tax (expense) benefit 60 6 63 24 Amortization of acquisition-related finite life intangible assets (pre-tax) (51) (52) (102) (102) Income tax (expense) benefit 13 15 27 27 Tax legislative changes and other tax impacts (pre-tax) − − − − Income tax (expense) benefit 11 (34) 11 − (255) (33) (425) 20 Net earnings from continuing operations – IFRS financial measure 2 894 1,005 1,754 2,036 Net earnings (loss) from discontinued operations (post-tax) − − − (115) Net gain from disposal of discontinued operations (post-tax) − − − 44 Net earnings – IFRS financial measure 2 894 1,005 1,754 1,965 1 Defined as "base earnings" and identified as a non-GAAP financial measure by Lifeco. 2 Attributable to Lifeco common shareholders. 3 Described as "items excluded from base earnings" by Lifeco. 4 Business transformation impacts include restructuring and integration costs as well as acquisition and divestiture costs. IGM Financial Adjusted net earnings attributable to IGM's common shareholders Adjusted net earnings attributable to common shareholders excludes Adjustments, which includes the after‐tax impact of any item that management of IGM considers to be of a non‐recurring nature, or that could make the period‐over‐period comparison of results from operations less meaningful. Effective in the first quarter of 2024, adjusted net earnings also excludes IGM's proportionate share of items that Lifeco excludes from its IFRS-reported net earnings in arriving at Lifeco's base earnings. 1 Available to IGM common shareholders. 2 Described as "Other items" by IGM. OTHER MEASURES This news release and other continuous disclosure documents also include other measures used to discuss activities of the Corporation, its consolidated publicly traded operating companies and alternative asset investment platforms including, but not limited to, "assets under management", "assets under administration", "assets under management and advisement", "assets under management and advisement including strategic investments", "book value per participating share", "carried interest", "net asset value", and "unfunded commitments". Refer to the section "Other Measures" in the Corporation's most recent MD&A, which can be located in the Corporation's profile on SEDAR+ at for definitions of such measures, which definitions are incorporated herein by reference. ELIGIBLE DIVIDENDS For purposes of the Income Tax Act (Canada) and any similar provincial legislation, all of the above dividends on the Corporation's preferred shares (including the Participating Preferred Shares) and Subordinate Voting Shares are eligible dividends. FORWARD-LOOKING STATEMENTS Certain statements in this news release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Corporation's current expectations, or with respect to disclosure regarding the Corporation's public subsidiaries, reflect such subsidiaries' disclosed current expectations. Forward-looking statements are provided for the purposes of assisting the reader in understanding the Corporation's financial performance, financial position and cash flows as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future, and the reader is cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Corporation and its subsidiaries, and capital commitments to strategies of the investment platforms. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "estimates", "seeks", "intends", "targets", "projects", "forecasts" or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which are beyond the Corporation's and its subsidiaries' control, affect the operations, performance and results of the Corporation and its subsidiaries and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, fluctuations in interest rates, inflation and foreign exchange rates, monetary policies, business investment and the health of local and global equity and capital markets, management of market liquidity and funding risks, risks related to investments in private companies and illiquid securities, risks associated with financial instruments, changes in accounting policies and methods used to report financial condition (including uncertainties associated with significant judgments, estimates and assumptions), the effect of applying future accounting changes, business competition, operational and reputational risks, technological changes, cybersecurity risks, changes in government administrations, regulation, legislation and policies, changes in tax laws, the impact of trade relations and ongoing trade tensions, including the threat of tariffs and other governmental actions, as well as retaliatory actions, unexpected judicial or regulatory proceedings, catastrophic events, man-made disasters, terrorist attacks, wars and other conflicts, or an outbreak of a public health pandemic or other public health crises, the Corporation's and its subsidiaries' ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, the Corporation's and its subsidiaries' success in anticipating and managing the foregoing factors and with respect to forward-looking statements of the Corporation's subsidiaries disclosed in this news release, the factors identified by such subsidiaries in their respective MD&A. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements. Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, and that strategic transactions, acquisitions, divestitures or other growth or optimization strategies will be completed on expected terms, including that any required approvals will be received when and on such terms as are expected, as well as other considerations that are believed to be appropriate in the circumstances, including that the list of risks and uncertainties in the previous paragraph, collectively, are not expected to have a material impact on the Corporation and with respect to forward-looking statements of the Corporation's subsidiaries disclosed in this news release, that the risks identified by such subsidiaries in their respective MD&A and Annual Information Form are not expected to have a material impact on the Corporation. While the Corporation considers these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect. Other than as specifically required by applicable Canadian law, the Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise. Additional information about the risks and uncertainties of the Corporation's business and material factors or assumptions on which information contained in forward-looking statements is based is provided in its disclosure materials, including its most recent annual MD&A and subsequent interim MD&A and Annual Information Form, filed with the securities regulatory authorities in Canada and available at
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Great-West Lifeco reports record base earnings and announces intention for additional $500 million in share buybacks
TSX:GWO Great-West Lifeco Inc.'s Quarterly Report to Shareholders for the second quarter of 2025, including its Management's Discussion and Analysis (MD&A) and consolidated financial statements for the three and six months ended June 30, 2025, are available at and Readers are referred to the Basis of presentation, Cautionary note regarding Forward-Looking Information and Cautionary note regarding Non-GAAP Financial Measures and Ratios sections at the end of this release for additional information on disclosures. All figures are expressed in millions of Canadian dollars, unless otherwise noted. Base earnings of over $1.1 billion, up 11% from Q2 2024 and base EPS of $1.24, up 12% from Q2 2024 Net earnings of $894 million, or $0.96 per share, down 11% from Q2 2024 Base ROE of 17.4% and ROE of 14.9% LICAT ratio of 132% and Lifeco cash of $2.1 billion Book value per share of $27.38, up 8% year over year Repurchased 6.3 million shares in Q2 at a total cost of $321 million; intention to repurchase an additional $500 million of shares in 2025 WINNIPEG, MB, Aug. 5, 2025 /CNW/ - Great-West Lifeco Inc. (Lifeco or the Company) today announced its Q2 2025 results. "We delivered double-digit base earnings growth in the second quarter, primarily driven by strong performance in our wealth and group benefits businesses, and successfully navigated a period of elevated market volatility," said David Harney, President and CEO, Great-West Lifeco. "I am particularly pleased with the strong underlying performance at Empower, which remains well positioned to drive double-digit base earnings growth going forward. Overall, we are on track to meet or exceed all our medium-term objectives, supported by our strong capital generation, healthy balance sheet and unrelenting focus on executing against our growth strategies." Key Financial Highlights In-Quarter Year-to-Date Q2 2025 Q1 2025 Q2 2024 2025 2024 Earnings Base earnings1 $1,149 $1,030 $1,038$2,179 $2,016 Net earnings $894 $860 $1,005$1,754 $1,965 Earnings per share Base EPS2 $1.24 $1.11 $1.11$2.35 $2.16 Net EPS $0.96 $0.92 $1.08$1.89 $2.11 Return on Equity Base ROE2,3 17.4 % 17.2 % 17.2 % ROE 14.9 % 15.6 % 16.2 % Base earnings1 of $1,149 million ($1.24 per common share) in the second quarter, up 11% from $1,038 million a year ago. The strong result reflects double-digit base earnings growth across our Wealth and Group Benefits businesses, primarily driven by new business growth and higher equity markets, as well as improved insurance experience, and favourable currency movements, partially offset by lower earnings on surplus from lower yields. Base earnings also included a benefit for a change in certain tax estimates relating to tax matters in prior years, offset by credit-related impacts of $51 million (post-tax).1 This is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 2 Base EPS and base return on equity are non-GAAP ratios. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 3 Base return on equity and return on equity – continuing operations are calculated using the trailing four quarters of applicable earnings and common shareholders' earnings from continuing operations of $894 million ($0.96 per common share) in the second quarter, compared to $1,005 million a year ago, mainly reflect higher charges from business transformation initiatives announced earlier this year, as well as unfavourable market experience. Highlights Strong underlying performance: Base earnings reached a record $1,149 million, up 11% year-over-year, driven by double-digit base earnings growth in our Wealth and Group Benefits businesses. Base ROE of 17.4% and ROE of 14.9% remain well-positioned to expand, supported by strong growth in our more capital-efficient U.S. business and further share buybacks. Strong capital generation and $2.1 billion in cash at Lifeco continue to provide substantial flexibility. Continued repositioning of the portfolio toward higher-growth, capital-efficient businesses, particularly Retirement and Wealth: Total client assets4 of $3.0 trillion, of which $1.0 trillion represents higher-margin assets under management or advisement4. Strong growth in client assets of 11% in Retirement and 16% in Wealth. Double-digit base earnings growth in our Group Benefits businesses, driven by strong long-term disability experience in Canada, reflecting continued pricing discipline. U.S. segment continues to deliver strong base earnings growth: U.S. base earnings were up 13% year-over-year excluding credit-related impacts of US$37 million in Q2 2025 and US$29 million in Q2 2024, and a favourable one-time fee income adjustment to earnings of US$22 million in Q2 2024. Base earnings growth was driven by an increase in average customer account balances and the number of plan participants, as well as continued strength in Wealth net flows. Empower's Retirement business is expected to experience net plan inflows of at least US$25 billion for the second half of 2025, more than offsetting a notable termination in Q2 20255. Empower Wealth net flows6 improved by 83% to US$2.9 billion compared to a year ago, primarily from strong rollover sales performance. The number of plan participants served by Empower stood at 18.5 million on June 30, 2025, up 3% from a year ago, primarily reflecting solid organic growth over the past 12 months. Empower significantly strengthened its product offering by partnering with top-tier asset management firms to provide private markets investment options for 401k plan participants. Balance sheet strength provides substantial financial flexibility: LICAT ratio7 of 132%, up 2 percentage points from Q1 2025, driven by strong base capital generation, and lower remittances to Lifeco. Leverage ratio of 28% was unchanged from the preceding quarter, but stood at 27% on a pro forma basis, net of the scheduled repayment of US$500 million senior notes maturing on August 12, 2025. Lifeco cash of $2.1 billion reflected significant share repurchases in the quarter. The Company intends to repurchase an additional $500 million of its common shares in 2025 under its Normal Course Issuer Bid (NCIB), beyond the $500 million announced on May 7, 2025 and the purchases made to offset dilution under its share compensation plans.4 This is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 5 An indicator of the Company's ability to attract and retain business and includes cash flows related to segregated funds and proprietary and non-proprietary mutual funds. 6 See "Cautionary Note regarding Forward-Looking Information" regarding the estimated net plan inflows of Empower's Retirement business. 7 The Life Insurance Capital Adequacy Test (LICAT) Ratio is based on the consolidated results of The Canada Life Assurance Company, Lifeco's major Canadian operating subsidiary. The LICAT Ratio is calculated in accordance with the Office of Superintendent of Financial Institutions' guideline - Life Insurance Capital Adequacy Test.Q2 2025 SEGMENTED OPERATING RESULTS For reporting purposes, Lifeco's consolidated operating results are grouped into five reportable segments – United States, Canada, Europe, Capital and Risk Solutions and Corporate – reflecting the management and corporate structure of the Company. For more information, refer to the Company's second quarter 2025 interim Management's Discussion and Analysis (MD&A).In-QuarterYear-to-DateQ2 2025 Q1 2025 Q2 2024 (restated9) 2025 2024 (restated9) Segment base earnings8 United States $341 $365 $335$706 $637 Canada 375 316 360691 700 Europe 262 239 236501 462 Capital and Risk Solutions 229 213 199442 404 Corporate (58) (103) (92)(161) (187) Total base earnings $1,149 $1,030 $1,038$2,179 $2,016 Segment net earnings from continuing operations United States $305 $338 $281$643 $523 Canada 255 301 373556 764 Europe 126 167 231293 447 Capital and Risk Solutions 194 184 164378 434 Corporate 14 (130) (44)(116) (132) Net earnings from continuing operations $894 $860 $1,005$1,754 $2,036 Net earnings (loss) from discontinued operations - - -- (115) Net gain on disposal of discontinued operations - - -- 44 Total net earnings $894 $860 $1,005$1,754 $1,9658 This is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 9 The Company has updated segment and line of business classifications for 2025 which has resulted in the restatement of certain comparative STATES U.S. segment base earnings of US$247 million ($341 million) and net earnings from continuing operations of US$222 million ($305 million) – Base earnings were largely unchanged from Q2 2024. Higher fee income from business growth and favourable markets was offset by credit-related impacts in the quarter of US$37 million, and lower spread-based income. Base earnings in Q2 2024 included US$29 million of negative credit-related impacts and a favourable one-time fee income adjustment to earnings of US$22 million. CANADA Canada segment base earnings of $375 million and net earnings of $255 million – Base earnings increased by $15 million, or 4%, compared to the same quarter last year, reflecting solid performance across businesses, notably improved insurance experience in Group Benefits, partially offset by lower earnings on surplus. Net earnings were impacted by business transformation charges, in line with previously announced transformation initiatives. EUROPE Europe segment base earnings of $262 million and net earnings of $126 million – Base earnings increased by $26 million, or 11%, compared to the same quarter last year, primarily due to increased Wealth fee income from higher client assets, as well as the impact of currency movements. These items were partially offset by lower earnings on surplus. CAPITAL AND RISK SOLUTIONS Capital and Risk Solutions segment base earnings of $229 million and net earnings of $194 million – Base earnings increased by $30 million, or 15%, compared to the same quarter last year, primarily due to continued strength in Capital Solutions new business volumes and improved claims experience. QUARTERLY DIVIDENDS The Board of Directors approved a quarterly dividend of $0.61 per share on the common shares of Lifeco payable September 29, 2025, to shareholders of record at the close of business August 29, 2025. In addition, the Directors approved quarterly dividends on Lifeco's preferred shares, as follows: First Preferred Shares Amount, per share Series G $0.3250 Series H $0.30313 Series I $0.28125 Series L $0.353125 Series M $0.3625 Series N $0.109313 Series P $0.3375 Series Q $0.321875 Series R $0.3000 Series S $0.328125 Series T $0.321875 Series Y $0.28125 For purposes of the Income Tax Act (Canada), and any similar provincial legislation, the dividends referred to above are eligible dividends. NCIB Share PurchasesThe Company intends to repurchase an additional $500 million of its common shares in 2025 under its Normal Course Issuer Bid (NCIB), beyond the $500 million announced on May 7, 2025 and the purchases made to offset dilution under its share compensation plans. This is subject to market conditions, applicable regulatory approvals, the Company's ability to effect the purchases on a prudent basis, and other strategic opportunities emerging. Analysts' EstimatesThe average estimate of earnings per share and base earnings per share for the quarter among the analysts who follow the Company was $1.07 and $1.17, respectively. Q2 2025 Conference CallLifeco's second quarter conference call and audio webcast will be held on Wednesday, August 6, 2025 at 8:30 a.m. ET. The live webcast of the call will be available at 2nd Quarter 2025 – Conference Call and Webcast or by calling 1-833-752-3481 (toll-free) or 1-647-846-7232 for International participants. A replay of the call will be available following the event on our website or by calling 1-855-669-9658 (Canada toll-free) or 1-412-317-0088 (U.S. toll-free) and using the access code 6604451. Selected financial information is attached. GREAT-WEST LIFECO Lifeco is a financial services holding company focused on building stronger, more inclusive and financially secure futures. We operate in Canada, the United States and Europe under the brands Canada Life, Empower and Irish Life. Together we provide wealth, retirement, workplace benefits and insurance and risk solutions to our over 40 million customer relationships. As of June 30, 2025, Great-West Lifeco's total client assets were $3 trillion. Great-West Lifeco trades on the Toronto Stock Exchange (TSX) under the ticker symbol GWO and is a member of the Power Corporation group of companies. To learn more, visit Basis of presentationThe condensed consolidated interim financial statements for the period ended June 30, 2025 of Lifeco, have been prepared in accordance with International Financial Reporting Standards (IFRS) unless otherwise noted and are the basis for the figures presented in this release, unless otherwise noted. Cautionary note regarding Forward-Looking InformationFrom time to time, Lifeco makes written and/or oral forward-looking statements within the meaning of applicable securities laws, including in this release. Forward-looking information includes statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "achieve", "ambition", "anticipate", "believe", "could", "estimate", "expect", "initiatives", "intend", "may", "objective", "opportunity", "plan", "potential", "project", "target", "will" and other similar expressions or negative versions of those words. Forward-looking information includes, without limitation, statements about the Company and its operations, business (including business mix), financial condition, expected financial performance (including revenues, earnings or growth rates, and medium-term financial objectives), strategies and prospects, expected costs and benefits of acquisitions and divestitures (including timing of integration activities and timing and extent of revenue and expense synergies), the timing and extent of expected transformation charges, expected expenditures or investments (including but not limited to investment in technology infrastructure and digital capabilities and solutions and investments in strategic partnerships), the timing and completion of the acquisition by IPC of wealth assets of De Thomas Wealth Management, value creation and realization and growth opportunities, product and service innovation, expected dividend levels, expected cost reductions and savings, expected capital management activities and use of capital, the timing and extent of possible share repurchases, market position, estimates of risk sensitivities affecting capital adequacy ratios, estimates of financial risk sensitivities (including as a result of current market conditions), expected net plan inflows, anticipated global economic conditions, potential impacts of catastrophe events, potential impacts of geopolitical events and conflicts and the impact of regulatory developments on the Company's business strategy, growth objectives and capital. Forward-looking statements are based on expectations, forecasts, estimates, predictions, projections and conclusions about future events that were current at the time of the statements and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company, economic factors and the financial services industry generally, including the insurance, wealth and retirement solutions industries. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance that they will prove to be correct. With respect to possible share repurchases, the amount and timing of actual repurchases will depend on the earnings, cash requirements and financial condition of the Company, market conditions, our ability to effect the repurchases on a prudent basis, capital requirements, applicable law and regulations (including applicable securities laws), and other factors deemed relevant by the Company, and may be subject to regulatory approval or conditions. With respect to expected net plan inflows of Empower's Retirement business in the second half of 2025, management's estimate is based on the sum of anticipated sales (excluding stock plan services) plus anticipated institutional net flows, net of estimated plan terminations. Management has also assumed that performance of Empower's Retirement business during the second half of 2025 is consistent with its expectations, which take into account current market information, and that actual sales, the ability to maintain or improve client retention and capture rates per management's estimates, and customer behaviour (including contributions, redemptions, withdrawals and lapse rates) are consistent with management's estimates. Statements about historical credit experience are not intended to be indicators of future credit experience. In all cases, whether or not actual results differ from forward-looking information may depend on numerous factors, developments and assumptions, including, without limitation, the ability to integrate and leverage acquisitions and achieve anticipated benefits and synergies, the achievement of expense synergies and client retention targets from the acquisition of the Prudential retirement business, the Company's ability to execute strategic plans and adapt or recalibrate these plans as needed, the Company's reputation, business competition, assumptions around sales, pricing, fee rates, customer behaviour (including contributions, redemptions, withdrawals and lapse rates), mortality and morbidity experience, expense levels, reinsurance arrangements, global equity and capital markets (including continued access to equity and debt markets and credit instruments on economically feasible terms), geopolitical tensions and related economic impacts, interest and foreign exchange rates, inflation levels, liquidity requirements, investment values and asset breakdowns, hedging activities, financial condition of industry sectors and individual issuers that comprise part of the Company's investment portfolio, credit ratings, taxes, write-downs of goodwill and other intangible assets, technological changes, breaches or failure of information systems and security (including cyber attacks), assumptions around third-party suppliers, changes in local and international laws and regulations, changes in accounting policies and the effect of applying future accounting policy changes, changes in actuarial standards, unexpected judicial or regulatory proceedings, catastrophic events, continuity and availability of personnel and third-party service providers, unplanned changes to the Company's facilities, customer and employee relations, levels of administrative and operational efficiencies, and other general economic, political and market factors in North America and internationally. The above list is not exhaustive, and there may be other factors listed in the Company's filings with securities regulators, including those set out in the "Risk Management" and "Summary of Critical Accounting Estimates" sections of the Company's 2024 Annual MD&A and in the Company's annual information form dated February 5, 2025 under "Risk Factors". These, along with other filings, are available for review at The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to place undue reliance on forward-looking information. Other than as specifically required by applicable law, the Company does not intend to update any forward-looking information whether as a result of new information, future events or otherwise. Cautionary note regarding Non-GAAP Financial Measures and RatiosThis release contains some non-Generally Accepted Accounting Principles (GAAP) financial measures and non-GAAP ratios as defined in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure". Terms by which non-GAAP financial measures are identified include, but are not limited to, "base earnings (loss)", "base earnings (loss) (US$)", "base earnings (loss) - pre-tax", "base earnings: insurance service result", "base earnings: net investment result", "assets under management or advisement", "assets under administration", "client assets", "non-par base operating and administration expenses", and "run-rate insurance results". Terms by which non-GAAP ratios are identified include, but are not limited to, "base earnings per common share (EPS)", "base return on equity (ROE)", "base dividend payout ratio", "base capital generation", "efficiency ratio", "effective income tax rate – base earnings – common shareholders" and "pre-tax base operating margin". Non-GAAP financial measures and ratios are used to provide management and investors with additional measures of performance to help assess results where no comparable GAAP (IFRS) measure exists. However, non-GAAP financial measures and ratios do not have standard meanings prescribed by GAAP (IFRS) and are not directly comparable to similar measures used by other companies. Refer to the "Non-GAAP Financial Measures and Ratios" section in this release for the appropriate reconciliations of these non-GAAP financial measures to measures prescribed by GAAP as well as additional details on each measure and ratio. FINANCIAL HIGHLIGHTS (unaudited) (in Canadian $ millions, except per share amounts) Selected consolidated financial information As at or for the three months endedFor the six months endedJune 302025 Mar. 31 2025 June 30 2024June 302025 June 30 2024Base earnings1 $ 1,149 $ 1,030 $ 1,038$ 2,179 $ 2,016 Net earnings from continuing operations2 894 860 1,0051,754 2,036 Net earnings - common shareholders 894 860 1,0051,754 1,965 Per common share Basic: Base earnings3 1.24 1.11 1.112.35 2.16 Net earnings from continuing operations 0.96 0.92 1.081.89 2.18 Net earnings 0.96 0.92 1.081.89 2.11 Dividends paid 0.610 0.610 0.5551.220 1.110 Book value per common share2 27.38 27.61 25.36Base dividend payout ratio3 49.2 % 55.0 % 50.0 %Dividend payout ratio2 63.5 % 66.3 % 51.4 %Efficiency ratio3 56.7 % 56.7 % 57.5 %Base return on equity3 17.4 % 17.2 % 17.2 %Return on equity - continuing operations2 14.9 % 15.6 % 16.2 %Financial leverage ratio4 28 % 28 % 29 %Total assets per financial statements $ 814,842 $ 804,144 $ 749,562Total assets under management or advisement1 1,036,167 1,013,530 941,272Total assets under administration only2 2,007,290 1,993,588 1,786,711Total client assets1 3,043,457 3,007,118 2,727,983Total assets under administration1 3,275,298 3,238,101 2,929,042 Total contractual service margin (net of reinsurance contracts held) 13,802 13,666 13,008 Total equity 32,696 33,091 30,870 Canada Life Assurance Company consolidated LICAT Ratio5 132 % 130 % 130 % 1 This metric is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 2 Refer to the "Glossary" section of the Company's second quarter of 2025 interim MD&A for additional details on the composition of this measure. 3 This metric is a non-GAAP ratio. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 4 The calculation for financial leverage ratio includes the after-tax non-participating contractual service margin (CSM) balance in the denominator, excluding CSM associated with segregated fund guarantees. This reflects that the CSM represents future profit and is considered available capital under LICAT. These ratios are estimates based on available data. 5 The Life Insurance Capital Adequacy Test (LICAT) Ratio is based on the consolidated results of The Canada Life Assurance Company, Lifeco's major Canadian operating subsidiary. The LICAT Ratio is calculated in accordance with the Office of Superintendent of Financial Institutions' guideline - Life Insurance Capital Adequacy Test. Refer to the "Capital Management and Adequacy" section of the Company's second quarter of 2025 interim MD&A for additional details. BASE AND NET EARNINGS Consolidated base earnings and net earnings of Lifeco include the base earnings and net earnings of Empower, Canada Life (and its operating subsidiaries) and the Company's Corporate operating results (including PanAgora Asset Management). Net earnings for the six months ended June 30, 2024 also include the earnings from Putnam Investments reported as discontinued operations. For a further description of base earnings, refer to the "Non-GAAP Financial Measures and Ratios" section of this document and the Company's second quarter of 2025 interim Management's Discussion and Analysis. For further details on restated earnings for the first and second quarters of 2024, refer to the "Summary of Earnings Reclassification" section of the Company's second quarter of 2025 interim Management's Discussion and Analysis. Base earnings1 and net earnings - common shareholders by segment For the three months endedFor the six months endedJune 302025 Mar. 31 2025 June 30 2024 (Restated)June 302025 June 30 2024 (Restated) Base earnings (loss)1 United States $ 341 $ 365 $ 335$ 706 $ 637 Canada 375 316 360691 700 Europe 262 239 236501 462 Capital and Risk Solutions 229 213 199442 404 Corporate (58) (103) (92)(161) (187) Lifeco base earnings1 $ 1,149 $ 1,030 $ 1,038$ 2,179 $ 2,016Items excluded from base earnings Market experience relative to expectations2 $ (104) $ (91) $ 28$ (195) $ 135 Assumption changes and management actions2 (3) (32) 39(35) 38 Business transformation impacts (121) (10) (29)(131) (78) Amortization of acquisition-related finite life intangibles (38) (37) (37)(75) (75) Tax legislative changes 11 — (34)11 — Items excluded from Lifeco base earnings $ (255) $ (170) $ (33)$ (425) $ 20Net earnings (loss) from continuing operations2 United States $ 305 $ 338 $ 281$ 643 $ 523 Canada 255 301 373556 764 Europe 126 167 231293 447 Capital and Risk Solutions 194 184 164378 434 Corporate 14 (130) (44)(116) (132) Lifeco net earnings from continuing operations2 $ 894 $ 860 $ 1,005$ 1,754 $ 2,036 Net earnings (loss) from discontinued operations — — —— (115) Net gain from disposal of discontinued operations — — —— 44 Lifeco net earnings - common shareholders $ 894 $ 860 $ 1,005$ 1,754 $ 1,9651 This metric is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 2 Refer to the "Glossary" section of the Company's second quarter of 2025 interim MD&A for additional details on the composition of this measure. NON-GAAP FINANCIAL MEASURES AND RATIOS Non-GAAP Financial MeasuresThe Company uses several non-GAAP financial measures to measure overall performance of the Company and to assess each of its business units. A financial measure is considered a non-GAAP measure for Canadian securities law purposes if it is presented other than in accordance with generally accepted accounting principles (GAAP) used for the Company's consolidated financial statements. The consolidated financial statements of the Company have been prepared in compliance with IFRS as issued by the IASB. Non-GAAP financial measures do not have a standardized meaning under GAAP and may not be comparable to similar financial measures presented by other issuers. Investors may find these financial measures useful in understanding how management views the underlying business performance of the Company. Base earnings (loss)Base earnings (loss) reflect management's view of the underlying business performance of the Company and provides an alternate measure to understand the underlying business performance compared to IFRS net earnings. Base earnings (loss) exclude the following items from IFRS reported net earnings: Market-related impacts, where actual market returns in the current period are different than longer-term expected returns; Assumption changes and management actions that impact the measurement of assets and liabilities; Business transformation impacts which include acquisition and divestiture costs and restructuring and integration costs; Material legal settlements, material impairment charges related to goodwill and intangible assets, impacts of income tax rate changes on the remeasurement of deferred tax assets and liabilities and other tax impairments, net gains, losses or costs related to the disposition or acquisition of a business; net earnings (loss) from discontinued operations; The direct equity and interest rate impacts on the measurement of surplus assets and liabilities; Amortization of acquisition related finite life intangible assets; and Other items that, when removed, assist in explaining the Company's underlying business performance. LifecoFor the three months endedFor the six months endedJune 302025 Mar. 312025 June 302024June 302025 June 302024 Base earnings $ 1,149 $ 1,030 $ 1,038$ 2,179 $ 2,016Items excluded from Lifeco base earnings Market experience relative to expectations (pre-tax) $ (116) $ (113) $ 45$ (229) $ 181 Income tax (expense) benefit 12 22 (17)34 (46) Assumption changes and management actions (pre-tax) (5) (42) 1(47) 4 Income tax (expense) benefit 2 10 3812 34 Business transformation impacts (pre-tax) (181) (13) (35)(194) (102) Income tax (expense) benefit 60 3 663 24 Amortization of acquisition-related finite life intangibles (pre-tax) (51) (51) (52)(102) (102) Income tax (expense) benefit 13 14 1527 27 Tax legislative changes and other tax impacts (pre-tax) — — —— — Income tax (expense) benefit 11 — (34)11 — Total pre-tax items excluded from base earnings $ (353) $ (219) $ (41)$ (572) $ (19) Impact of items excluded from base earnings on income taxes 98 49 8147 39 Net earnings from continuing operations $ 894 $ 860 $ 1,005$ 1,754 $ 2,036 Net earnings (loss) from discontinued operations (post-tax) — — —— (115) Net gain from disposal of discontinued operations (post-tax) — — —— 44 Net earnings - common shareholders $ 894 $ 860 $ 1,005$ 1,754 $ 1,965 United StatesFor the three months endedFor the six months endedJune 302025 Mar. 31 2025 June 30 2024 (Restated)June 302025 June 30 2024 (Restated) Base earnings $ 341 $ 365 $ 335$ 706 $ 637Items excluded from base earnings Market experience relative to expectations (pre-tax) $ (3) $ 2 $ (7)$ (1) $ (10) Income tax (expense) benefit — — 1— 2 Business transformation impacts (pre-tax) (9) (1) (26)(10) (70) Income tax (expense) benefit 3 — 43 16 Amortization of acquisition-related finite life intangibles (pre-tax) (36) (38) (37)(74) (71) Income tax (expense) benefit 9 10 1119 19 Net earnings from continuing operations $ 305 $ 338 $ 281$ 643 $ 523 Net earnings (loss) from discontinued operations (post-tax) — — —— (115) Net gain from disposal of discontinued operations (post-tax) — — —— 44 Net earnings - common shareholders $ 305 $ 338 $ 281$ 643 $ 452 CanadaFor the three months endedFor the six months endedJune 302025 Mar. 31 2025 June 30 2024 (Restated)June 302025 June 30 2024 (Restated) Base earnings $ 375 $ 316 $ 360$ 691 $ 700Items excluded from base earnings Market experience relative to expectations (pre-tax) $ 44 $ (9) $ 35$ 35 $ 128 Income tax (expense) benefit (19) (1) (10)(20) (36) Assumption changes and management actions (pre-tax) (1) — 1(1) 10 Income tax (expense) benefit — — —— (3) Business transformation impacts (pre-tax) (192) (2) (9)(194) (32) Income tax (expense) benefit 53 1 254 8 Amortization of acquisition-related finite life intangibles (pre-tax) (7) (6) (8)(13) (15) Income tax (expense) benefit 2 2 24 4 Net earnings - common shareholders $ 255 $ 301 $ 373$ 556 $ 764 EuropeFor the three months endedFor the six months endedJune 302025 Mar. 31 2025 June 30 2024 (Restated)June 302025 June 30 2024 (Restated) Base earnings $ 262 $ 239 $ 236$ 501 $ 462Items excluded from base earnings Market experience relative to expectations (pre-tax) $ (139) $ (47) $ 13$ (186) $ (2) Income tax (expense) benefit 29 11 (5)40 (2) Assumption changes and management actions (pre-tax) (1) (32) (2)(33) (2) Income tax (expense) benefit 1 8 —9 — Business transformation impacts (pre-tax) (42) (10) —(52) — Income tax (expense) benefit 10 2 —12 — Amortization of acquisition-related finite life intangibles (pre-tax) (6) (5) (5)(11) (11) Income tax (expense) benefit 1 1 12 2 Tax legislative changes impact (pre-tax) — — —— — Income tax (expense) benefit 11 — (7)11 — Net earnings - common shareholders $ 126 $ 167 $ 231$ 293 $ 447 Capital and Risk SolutionsFor the three months endedFor the six months endedJune 302025 Mar. 31 2025 June 30 2024 (Restated)June 302025 June 30 2024 (Restated) Base earnings $ 229 $ 213 $ 199$ 442 $ 404Items excluded from base earnings Market experience relative to expectations (pre-tax) $ (31) $ (35) $ (6)$ (66) $ 43 Income tax (expense) benefit 4 7 (2)11 (6) Assumption changes and management actions (pre-tax) (3) (1) (1)(4) (7) Income tax (expense) benefit 1 — 11 — Business transformation impacts (9) — —(9) — Income tax expense (benefit) 3 — —3 — Tax legislative changes impact (pre-tax) — — —— — Income tax (expense) benefit — — (27)— — Net earnings - common shareholders $ 194 $ 184 $ 164$ 378 $ 434 CorporateFor the three months endedFor the six months endedJune 302025 Mar. 31 2025 June 30 2024 (Restated)June 302025 June 30 2024 (Restated) Base earnings (loss) $ (58) $ (103) $ (92)$ (161) $ (187)Items excluded from base earnings (loss) Market experience relative to expectations (pre-tax) $ 13 $ (24) $ 10$ (11) $ 22 Income tax (expense) benefit (2) 5 (1)3 (4) Assumption changes and management actions (pre-tax) — (9) 3(9) 3 Income tax (expense) benefit — 2 372 37 Business transformation impacts (pre-tax) 71 — —71 — Income tax (expense) benefit (9) — —(9) — Amortization of acquisition-related finite life intangibles (pre-tax) (2) (2) (2)(4) (5) Income tax (expense) benefit 1 1 12 2 Net earnings (loss) - common shareholders $ 14 $ (130) $ (44)$ (116) $ (132) Assets under administration (AUA), assets under management or advisement (AUMA), and client assetsAssets under administration, assets under management or advisement and client assets are non-GAAP financial measures. These measures provide an indication of the size and volume of the Company's overall business. Administrative services are an important aspect of the overall business of the Company and should be considered when comparing volumes, size and trends. Total assets under administration includes assets under management or advisement (AUMA), assets under administration only (AUAO), the total of which is total client assets, and other balance sheet assets. Client assets represents the total client assets under management or advisement plus assets under administration only for the Company's Retirement and Wealth lines of business. Client assets are classified as AUMA where the Company earns a fee for one or more of the following services: investment management services for proprietary funds or institutional assets, discretionary portfolio management on behalf of clients, and/or the provision of financial advice. AUMA relate to the Company's Retirement and Wealth lines of business only. Refer to the "Glossary" section of the Company's second quarter of 2025 interim MD&A for the definition of AUAO. Other balance sheet assets include insurance contract assets, reinsurance contract assets, goodwill and intangible assets, other assets, as well as the portion of invested assets and investments on account of segregated fund policyholders not included within total client assets. Lifeco1 June 302025 Mar. 312025 June 30 2024 (Restated) Assets under administrationAssets under management or advisement $ 1,036,167 $ 1,013,530 $ 941,272 Assets under administration only2 2,007,290 1,993,588 1,786,711 Total client assets $ 3,043,457 $ 3,007,118 $ 2,727,983 Other assets on balance sheet 231,841 230,983 201,059 Total assets under administration $ 3,275,298 $ 3,238,101 $ 2,929,042 of which: Total balance sheet assets 814,842 804,144 749,562 of which: Invested assets 244,501 247,807 228,616 1 Total Lifeco assets under administration includes assets under management related to PanAgora Asset Management included in the Corporate segment. 2 Refer to the "Glossary" section of the Company's second quarter of 2025 interim MD&A for additional details on the composition of this measure. NON-GAAP RATIOS A non-GAAP ratio is a financial measure in the form of a ratio, fraction, percentage or similar representation that is not disclosed in the financial statements of the Company and has a non-GAAP financial measure as one or more of its components. These financial measures do not have a standardized definition under IFRS and might not be comparable to similar financial measures disclosed by other issuers. The non-GAAP ratios disclosed by the Company each use base earnings (loss) as the non-GAAP component. Base earnings (loss) reflect management's view of the underlying business performance of the Company and provides an alternate measure to understand the underlying business performance compared to IFRS net earnings. Base dividend payout ratio - Dividends paid to common shareholders are divided by base earnings (loss). Base earnings per share - Base earnings (loss) for the period is divided by the number of average common shares outstanding for the period. Base return on equity - Base earnings (loss) for the trailing four quarters are divided by the average common shareholders' equity over the trailing four quarters. This measure provides an indicator of business unit profitability. Efficiency ratio - Calculated on a trailing four quarter basis as pre-tax non-par base operating and administrative expenses divided by the sum of pre-tax base earnings and pre-tax non-par base operating and administrative expenses. SOURCE Great-West Lifeco Inc. View original content to download multimedia: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Cision Canada
5 days ago
- Business
- Cision Canada
Great-West Lifeco reports record base earnings and announces intention for additional $500 million in share buybacks Français
Great-West Lifeco Inc.'s Quarterly Report to Shareholders for the second quarter of 2025, including its Management's Discussion and Analysis (MD&A) and consolidated financial statements for the three and six months ended June 30, 2025, are available at and Readers are referred to the Basis of presentation, Cautionary note regarding Forward-Looking Information and Cautionary note regarding Non-GAAP Financial Measures and Ratios sections at the end of this release for additional information on disclosures. All figures are expressed in millions of Canadian dollars, unless otherwise noted. Base earnings of over $1.1 billion, up 11% from Q2 2024 and base EPS of $1.24, up 12% from Q2 2024 Net earnings of $894 million, or $0.96 per share, down 11% from Q2 2024 Base ROE of 17.4% and ROE of 14.9% LICAT ratio of 132% and Lifeco cash of $2.1 billion Book value per share of $27.38, up 8% year over year Repurchased 6.3 million shares in Q2 at a total cost of $321 million; intention to repurchase an additional $500 million of shares in 2025 WINNIPEG, MB, Aug. 5, 2025 /CNW/ - Great-West Lifeco Inc. (Lifeco or the Company) today announced its Q2 2025 results. "We delivered double-digit base earnings growth in the second quarter, primarily driven by strong performance in our wealth and group benefits businesses, and successfully navigated a period of elevated market volatility," said David Harney, President and CEO, Great-West Lifeco. "I am particularly pleased with the strong underlying performance at Empower, which remains well positioned to drive double-digit base earnings growth going forward. Overall, we are on track to meet or exceed all our medium-term objectives, supported by our strong capital generation, healthy balance sheet and unrelenting focus on executing against our growth strategies." Key Financial Highlights Base earnings 1 of $1,149 million ($1.24 per common share) in the second quarter, up 11% from $1,038 million a year ago. The strong result reflects double-digit base earnings growth across our Wealth and Group Benefits businesses, primarily driven by new business growth and higher equity markets, as well as improved insurance experience, and favourable currency movements, partially offset by lower earnings on surplus from lower yields. Base earnings also included a benefit for a change in certain tax estimates relating to tax matters in prior years, offset by credit-related impacts of $51 million (post-tax). Net earnings from continuing operations of $894 million ($0.96 per common share) in the second quarter, compared to $1,005 million a year ago, mainly reflect higher charges from business transformation initiatives announced earlier this year, as well as unfavourable market experience. Highlights Strong underlying performance: Base earnings reached a record $1,149 million, up 11% year-over-year, driven by double-digit base earnings growth in our Wealth and Group Benefits businesses. Base ROE of 17.4% and ROE of 14.9% remain well-positioned to expand, supported by strong growth in our more capital-efficient U.S. business and further share buybacks. Strong capital generation and $2.1 billion in cash at Lifeco continue to provide substantial flexibility. Continued repositioning of the portfolio toward higher-growth, capital-efficient businesses, particularly Retirement and Wealth: Total client assets 4 of $3.0 trillion, of which $1.0 trillion represents higher-margin assets under management or advisement 4. Strong growth in client assets of 11% in Retirement and 16% in Wealth. Double-digit base earnings growth in our Group Benefits businesses, driven by strong long-term disability experience in Canada, reflecting continued pricing discipline. U.S. segment continues to deliver strong base earnings growth: U.S. base earnings were up 13% year-over-year excluding credit-related impacts of US$37 million in Q2 2025 and US$29 million in Q2 2024, and a favourable one-time fee income adjustment to earnings of US$22 million in Q2 2024. Base earnings growth was driven by an increase in average customer account balances and the number of plan participants, as well as continued strength in Wealth net flows. Empower's Retirement business is expected to experience net plan inflows of at least US$25 billion for the second half of 2025, more than offsetting a notable termination in Q2 2025 5. Empower Wealth net flows 6 improved by 83% to US$2.9 billion compared to a year ago, primarily from strong rollover sales performance. The number of plan participants served by Empower stood at 18.5 million on June 30, 2025, up 3% from a year ago, primarily reflecting solid organic growth over the past 12 months. Empower significantly strengthened its product offering by partnering with top-tier asset management firms to provide private markets investment options for 401k plan participants. Balance sheet strength provides substantial financial flexibility: LICAT ratio 7 of 132%, up 2 percentage points from Q1 2025, driven by strong base capital generation, and lower remittances to Lifeco. Leverage ratio of 28% was unchanged from the preceding quarter, but stood at 27% on a pro forma basis, net of the scheduled repayment of US$500 million senior notes maturing on August 12, 2025. Lifeco cash of $2.1 billion reflected significant share repurchases in the quarter. The Company intends to repurchase an additional $500 million of its common shares in 2025 under its Normal Course Issuer Bid (NCIB), beyond the $500 million announced on May 7, 2025 and the purchases made to offset dilution under its share compensation plans. For reporting purposes, Lifeco's consolidated operating results are grouped into five reportable segments – United States, Canada, Europe, Capital and Risk Solutions and Corporate – reflecting the management and corporate structure of the Company. For more information, refer to the Company's second quarter 2025 interim Management's Discussion and Analysis (MD&A). 8 This is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 9 The Company has updated segment and line of business classifications for 2025 which has resulted in the restatement of certain comparative amounts. UNITED STATES U.S. segment base earnings of US$247 million ($341 million) and net earnings from continuing operations of US$222 million ($305 million) – Base earnings were largely unchanged from Q2 2024. Higher fee income from business growth and favourable markets was offset by credit-related impacts in the quarter of US$37 million, and lower spread-based income. Base earnings in Q2 2024 included US$29 million of negative credit-related impacts and a favourable one-time fee income adjustment to earnings of US$22 million. CANADA Canada segment base earnings of $375 million and net earnings of $255 million – Base earnings increased by $15 million, or 4%, compared to the same quarter last year, reflecting solid performance across businesses, notably improved insurance experience in Group Benefits, partially offset by lower earnings on surplus. Net earnings were impacted by business transformation charges, in line with previously announced transformation initiatives. EUROPE Europe segment base earnings of $262 million and net earnings of $126 million – Base earnings increased by $26 million, or 11%, compared to the same quarter last year, primarily due to increased Wealth fee income from higher client assets, as well as the impact of currency movements. These items were partially offset by lower earnings on surplus. CAPITAL AND RISK SOLUTIONS Capital and Risk Solutions segment base earnings of $229 million and net earnings of $194 million – Base earnings increased by $30 million, or 15%, compared to the same quarter last year, primarily due to continued strength in Capital Solutions new business volumes and improved claims experience. QUARTERLY DIVIDENDS The Board of Directors approved a quarterly dividend of $0.61 per share on the common shares of Lifeco payable September 29, 2025, to shareholders of record at the close of business August 29, 2025. In addition, the Directors approved quarterly dividends on Lifeco's preferred shares, as follows: For purposes of the Income Tax Act (Canada), and any similar provincial legislation, the dividends referred to above are eligible dividends. NCIB Share Purchases The Company intends to repurchase an additional $500 million of its common shares in 2025 under its Normal Course Issuer Bid (NCIB), beyond the $500 million announced on May 7, 2025 and the purchases made to offset dilution under its share compensation plans. This is subject to market conditions, applicable regulatory approvals, the Company's ability to effect the purchases on a prudent basis, and other strategic opportunities emerging. Analysts' Estimates The average estimate of earnings per share and base earnings per share for the quarter among the analysts who follow the Company was $1.07 and $1.17, respectively. Q2 2025 Conference Call Lifeco's second quarter conference call and audio webcast will be held on Wednesday, August 6, 2025 at 8:30 a.m. ET. The live webcast of the call will be available at 2nd Quarter 2025 – Conference Call and Webcast or by calling 1-833-752-3481 (toll-free) or 1-647-846-7232 for International participants. A replay of the call will be available following the event on our website or by calling 1-855-669-9658 (Canada toll-free) or 1-412-317-0088 (U.S. toll-free) and using the access code 6604451. Selected financial information is attached. GREAT-WEST LIFECO INC. Great-West Lifeco is a financial services holding company focused on building stronger, more inclusive and financially secure futures. We operate in Canada, the United States and Europe under the brands Canada Life, Empower and Irish Life. Together we provide wealth, retirement, workplace benefits and insurance and risk solutions to our over 40 million customer relationships. As of June 30, 2025, Great-West Lifeco's total client assets were $3 trillion. Great-West Lifeco trades on the Toronto Stock Exchange (TSX) under the ticker symbol GWO and is a member of the Power Corporation group of companies. To learn more, visit Basis of presentation The condensed consolidated interim financial statements for the period ended June 30, 2025 of Lifeco, have been prepared in accordance with International Financial Reporting Standards (IFRS) unless otherwise noted and are the basis for the figures presented in this release, unless otherwise noted. Cautionary note regarding Forward-Looking Information From time to time, Lifeco makes written and/or oral forward-looking statements within the meaning of applicable securities laws, including in this release. Forward-looking information includes statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "achieve", "ambition", "anticipate", "believe", "could", "estimate", "expect", "initiatives", "intend", "may", "objective", "opportunity", "plan", "potential", "project", "target", "will" and other similar expressions or negative versions of those words. Forward-looking information includes, without limitation, statements about the Company and its operations, business (including business mix), financial condition, expected financial performance (including revenues, earnings or growth rates, and medium-term financial objectives), strategies and prospects, expected costs and benefits of acquisitions and divestitures (including timing of integration activities and timing and extent of revenue and expense synergies), the timing and extent of expected transformation charges, expected expenditures or investments (including but not limited to investment in technology infrastructure and digital capabilities and solutions and investments in strategic partnerships), the timing and completion of the acquisition by IPC of wealth assets of De Thomas Wealth Management, value creation and realization and growth opportunities, product and service innovation, expected dividend levels, expected cost reductions and savings, expected capital management activities and use of capital, the timing and extent of possible share repurchases, market position, estimates of risk sensitivities affecting capital adequacy ratios, estimates of financial risk sensitivities (including as a result of current market conditions), expected net plan inflows, anticipated global economic conditions, potential impacts of catastrophe events, potential impacts of geopolitical events and conflicts and the impact of regulatory developments on the Company's business strategy, growth objectives and capital. Forward-looking statements are based on expectations, forecasts, estimates, predictions, projections and conclusions about future events that were current at the time of the statements and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company, economic factors and the financial services industry generally, including the insurance, wealth and retirement solutions industries. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance that they will prove to be correct. With respect to possible share repurchases, the amount and timing of actual repurchases will depend on the earnings, cash requirements and financial condition of the Company, market conditions, our ability to effect the repurchases on a prudent basis, capital requirements, applicable law and regulations (including applicable securities laws), and other factors deemed relevant by the Company, and may be subject to regulatory approval or conditions. With respect to expected net plan inflows of Empower's Retirement business in the second half of 2025, management's estimate is based on the sum of anticipated sales (excluding stock plan services) plus anticipated institutional net flows, net of estimated plan terminations. Management has also assumed that performance of Empower's Retirement business during the second half of 2025 is consistent with its expectations, which take into account current market information, and that actual sales, the ability to maintain or improve client retention and capture rates per management's estimates, and customer behaviour (including contributions, redemptions, withdrawals and lapse rates) are consistent with management's estimates. Statements about historical credit experience are not intended to be indicators of future credit experience. In all cases, whether or not actual results differ from forward-looking information may depend on numerous factors, developments and assumptions, including, without limitation, the ability to integrate and leverage acquisitions and achieve anticipated benefits and synergies, the achievement of expense synergies and client retention targets from the acquisition of the Prudential retirement business, the Company's ability to execute strategic plans and adapt or recalibrate these plans as needed, the Company's reputation, business competition, assumptions around sales, pricing, fee rates, customer behaviour (including contributions, redemptions, withdrawals and lapse rates), mortality and morbidity experience, expense levels, reinsurance arrangements, global equity and capital markets (including continued access to equity and debt markets and credit instruments on economically feasible terms), geopolitical tensions and related economic impacts, interest and foreign exchange rates, inflation levels, liquidity requirements, investment values and asset breakdowns, hedging activities, financial condition of industry sectors and individual issuers that comprise part of the Company's investment portfolio, credit ratings, taxes, write-downs of goodwill and other intangible assets, technological changes, breaches or failure of information systems and security (including cyber attacks), assumptions around third-party suppliers, changes in local and international laws and regulations, changes in accounting policies and the effect of applying future accounting policy changes, changes in actuarial standards, unexpected judicial or regulatory proceedings, catastrophic events, continuity and availability of personnel and third-party service providers, unplanned changes to the Company's facilities, customer and employee relations, levels of administrative and operational efficiencies, and other general economic, political and market factors in North America and internationally. The above list is not exhaustive, and there may be other factors listed in the Company's filings with securities regulators, including those set out in the "Risk Management" and "Summary of Critical Accounting Estimates" sections of the Company's 2024 Annual MD&A and in the Company's annual information form dated February 5, 2025 under "Risk Factors". These, along with other filings, are available for review at The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to place undue reliance on forward-looking information. Other than as specifically required by applicable law, the Company does not intend to update any forward-looking information whether as a result of new information, future events or otherwise. Cautionary note regarding Non-GAAP Financial Measures and Ratios This release contains some non-Generally Accepted Accounting Principles (GAAP) financial measures and non-GAAP ratios as defined in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure". Terms by which non-GAAP financial measures are identified include, but are not limited to, "base earnings (loss)", "base earnings (loss) (US$)", "base earnings (loss) - pre-tax", "base earnings: insurance service result", "base earnings: net investment result", "assets under management or advisement", "assets under administration", "client assets", "non-par base operating and administration expenses", and "run-rate insurance results". Terms by which non-GAAP ratios are identified include, but are not limited to, "base earnings per common share (EPS)", "base return on equity (ROE)", "base dividend payout ratio", "base capital generation", "efficiency ratio", "effective income tax rate – base earnings – common shareholders" and "pre-tax base operating margin". Non-GAAP financial measures and ratios are used to provide management and investors with additional measures of performance to help assess results where no comparable GAAP (IFRS) measure exists. However, non-GAAP financial measures and ratios do not have standard meanings prescribed by GAAP (IFRS) and are not directly comparable to similar measures used by other companies. Refer to the "Non-GAAP Financial Measures and Ratios" section in this release for the appropriate reconciliations of these non-GAAP financial measures to measures prescribed by GAAP as well as additional details on each measure and ratio. 1 This metric is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 2 Refer to the "Glossary" section of the Company's second quarter of 2025 interim MD&A for additional details on the composition of this measure. 3 This metric is a non-GAAP ratio. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 4 The calculation for financial leverage ratio includes the after-tax non-participating contractual service margin (CSM) balance in the denominator, excluding CSM associated with segregated fund guarantees. This reflects that the CSM represents future profit and is considered available capital under LICAT. These ratios are estimates based on available data. 5 The Life Insurance Capital Adequacy Test (LICAT) Ratio is based on the consolidated results of The Canada Life Assurance Company, Lifeco's major Canadian operating subsidiary. The LICAT Ratio is calculated in accordance with the Office of Superintendent of Financial Institutions' guideline - Life Insurance Capital Adequacy Test. Refer to the "Capital Management and Adequacy" section of the Company's second quarter of 2025 interim MD&A for additional details. BASE AND NET EARNINGS Consolidated base earnings and net earnings of Lifeco include the base earnings and net earnings of Empower, Canada Life (and its operating subsidiaries) and the Company's Corporate operating results (including PanAgora Asset Management). Net earnings for the six months ended June 30, 2024 also include the earnings from Putnam Investments reported as discontinued operations. For a further description of base earnings, refer to the "Non-GAAP Financial Measures and Ratios" section of this document and the Company's second quarter of 2025 interim Management's Discussion and Analysis. For further details on restated earnings for the first and second quarters of 2024, refer to the "Summary of Earnings Reclassification" section of the Company's second quarter of 2025 interim Management's Discussion and Analysis. Base earnings 1 and net earnings - common shareholders by segment For the three months ended For the six months ended June 30 2025 Mar. 31 2025 June 30 2024 (Restated) June 30 2025 June 30 2024 (Restated) Base earnings (loss) 1 United States $ 341 $ 365 $ 335 $ 706 $ 637 Canada 375 316 360 691 700 Europe 262 239 236 501 462 Capital and Risk Solutions 229 213 199 442 404 Corporate (58) (103) (92) (161) (187) Lifeco base earnings 1 $ 1,149 $ 1,030 $ 1,038 $ 2,179 $ 2,016 Items excluded from base earnings Market experience relative to expectations 2 $ (104) $ (91) $ 28 $ (195) $ 135 Assumption changes and management actions 2 (3) (32) 39 (35) 38 Business transformation impacts (121) (10) (29) (131) (78) Amortization of acquisition-related finite life intangibles (38) (37) (37) (75) (75) Tax legislative changes 11 — (34) 11 — Items excluded from Lifeco base earnings $ (255) $ (170) $ (33) $ (425) $ 20 Net earnings (loss) from continuing operations 2 United States $ 305 $ 338 $ 281 $ 643 $ 523 Canada 255 301 373 556 764 Europe 126 167 231 293 447 Capital and Risk Solutions 194 184 164 378 434 Corporate 14 (130) (44) (116) (132) Lifeco net earnings from continuing operations 2 $ 894 $ 860 $ 1,005 $ 1,754 $ 2,036 Net earnings (loss) from discontinued operations — — — — (115) Net gain from disposal of discontinued operations — — — — 44 Lifeco net earnings - common shareholders $ 894 $ 860 $ 1,005 $ 1,754 $ 1,965 1 This metric is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 2 Refer to the "Glossary" section of the Company's second quarter of 2025 interim MD&A for additional details on the composition of this measure. NON-GAAP FINANCIAL MEASURES AND RATIOS Non-GAAP Financial Measures The Company uses several non-GAAP financial measures to measure overall performance of the Company and to assess each of its business units. A financial measure is considered a non-GAAP measure for Canadian securities law purposes if it is presented other than in accordance with generally accepted accounting principles (GAAP) used for the Company's consolidated financial statements. The consolidated financial statements of the Company have been prepared in compliance with IFRS as issued by the IASB. Non-GAAP financial measures do not have a standardized meaning under GAAP and may not be comparable to similar financial measures presented by other issuers. Investors may find these financial measures useful in understanding how management views the underlying business performance of the Company. Base earnings (loss) Base earnings (loss) reflect management's view of the underlying business performance of the Company and provides an alternate measure to understand the underlying business performance compared to IFRS net earnings. Base earnings (loss) exclude the following items from IFRS reported net earnings: Market-related impacts, where actual market returns in the current period are different than longer-term expected returns; Assumption changes and management actions that impact the measurement of assets and liabilities; Business transformation impacts which include acquisition and divestiture costs and restructuring and integration costs; Material legal settlements, material impairment charges related to goodwill and intangible assets, impacts of income tax rate changes on the remeasurement of deferred tax assets and liabilities and other tax impairments, net gains, losses or costs related to the disposition or acquisition of a business; net earnings (loss) from discontinued operations; The direct equity and interest rate impacts on the measurement of surplus assets and liabilities; Amortization of acquisition related finite life intangible assets; and Other items that, when removed, assist in explaining the Company's underlying business performance. United States For the three months ended For the six months ended June 30 2025 Mar. 31 2025 June 30 2024 (Restated) June 30 2025 June 30 2024 (Restated) Base earnings $ 341 $ 365 $ 335 $ 706 $ 637 Items excluded from base earnings Market experience relative to expectations (pre-tax) $ (3) $ 2 $ (7) $ (1) $ (10) Income tax (expense) benefit — — 1 — 2 Business transformation impacts (pre-tax) (9) (1) (26) (10) (70) Income tax (expense) benefit 3 — 4 3 16 Amortization of acquisition-related finite life intangibles (pre-tax) (36) (38) (37) (74) (71) Income tax (expense) benefit 9 10 11 19 19 Net earnings from continuing operations $ 305 $ 338 $ 281 $ 643 $ 523 Net earnings (loss) from discontinued operations (post-tax) — — — — (115) Net gain from disposal of discontinued operations (post-tax) — — — — 44 Net earnings - common shareholders $ 305 $ 338 $ 281 $ 643 $ 452 Canada For the three months ended For the six months ended June 30 2025 Mar. 31 2025 June 30 2024 (Restated) June 30 2025 June 30 2024 (Restated) Base earnings $ 375 $ 316 $ 360 $ 691 $ 700 Items excluded from base earnings Market experience relative to expectations (pre-tax) $ 44 $ (9) $ 35 $ 35 $ 128 Income tax (expense) benefit (19) (1) (10) (20) (36) Assumption changes and management actions (pre-tax) (1) — 1 (1) 10 Income tax (expense) benefit — — — — (3) Business transformation impacts (pre-tax) (192) (2) (9) (194) (32) Income tax (expense) benefit 53 1 2 54 8 Amortization of acquisition-related finite life intangibles (pre-tax) (7) (6) (8) (13) (15) Income tax (expense) benefit 2 2 2 4 4 Net earnings - common shareholders $ 255 $ 301 $ 373 $ 556 $ 764 Europe For the three months ended For the six months ended June 30 2025 Mar. 31 2025 June 30 2024 (Restated) June 30 2025 June 30 2024 (Restated) Base earnings $ 262 $ 239 $ 236 $ 501 $ 462 Items excluded from base earnings Market experience relative to expectations (pre-tax) $ (139) $ (47) $ 13 $ (186) $ (2) Income tax (expense) benefit 29 11 (5) 40 (2) Assumption changes and management actions (pre-tax) (1) (32) (2) (33) (2) Income tax (expense) benefit 1 8 — 9 — Business transformation impacts (pre-tax) (42) (10) — (52) — Income tax (expense) benefit 10 2 — 12 — Amortization of acquisition-related finite life intangibles (pre-tax) (6) (5) (5) (11) (11) Income tax (expense) benefit 1 1 1 2 2 Tax legislative changes impact (pre-tax) — — — — — Income tax (expense) benefit 11 — (7) 11 — Net earnings - common shareholders $ 126 $ 167 $ 231 $ 293 $ 447 Capital and Risk Solutions For the three months ended For the six months ended June 30 2025 Mar. 31 2025 June 30 2024 (Restated) June 30 2025 June 30 2024 (Restated) Base earnings $ 229 $ 213 $ 199 $ 442 $ 404 Items excluded from base earnings Market experience relative to expectations (pre-tax) $ (31) $ (35) $ (6) $ (66) $ 43 Income tax (expense) benefit 4 7 (2) 11 (6) Assumption changes and management actions (pre-tax) (3) (1) (1) (4) (7) Income tax (expense) benefit 1 — 1 1 — Business transformation impacts (9) — — (9) — Income tax expense (benefit) 3 — — 3 — Tax legislative changes impact (pre-tax) — — — — — Income tax (expense) benefit — — (27) — — Net earnings - common shareholders $ 194 $ 184 $ 164 $ 378 $ 434 Corporate For the three months ended For the six months ended June 30 2025 Mar. 31 2025 June 30 2024 (Restated) June 30 2025 June 30 2024 (Restated) Base earnings (loss) $ (58) $ (103) $ (92) $ (161) $ (187) Items excluded from base earnings (loss) Market experience relative to expectations (pre-tax) $ 13 $ (24) $ 10 $ (11) $ 22 Income tax (expense) benefit (2) 5 (1) 3 (4) Assumption changes and management actions (pre-tax) — (9) 3 (9) 3 Income tax (expense) benefit — 2 37 2 37 Business transformation impacts (pre-tax) 71 — — 71 — Income tax (expense) benefit (9) — — (9) — Amortization of acquisition-related finite life intangibles (pre-tax) (2) (2) (2) (4) (5) Income tax (expense) benefit 1 1 1 2 2 Net earnings (loss) - common shareholders $ 14 $ (130) $ (44) $ (116) $ (132) Assets under administration (AUA), assets under management or advisement (AUMA), and client assets Assets under administration, assets under management or advisement and client assets are non-GAAP financial measures. These measures provide an indication of the size and volume of the Company's overall business. Administrative services are an important aspect of the overall business of the Company and should be considered when comparing volumes, size and trends. Total assets under administration includes assets under management or advisement (AUMA), assets under administration only (AUAO), the total of which is total client assets, and other balance sheet assets. Client assets represents the total client assets under management or advisement plus assets under administration only for the Company's Retirement and Wealth lines of business. Client assets are classified as AUMA where the Company earns a fee for one or more of the following services: investment management services for proprietary funds or institutional assets, discretionary portfolio management on behalf of clients, and/or the provision of financial advice. AUMA relate to the Company's Retirement and Wealth lines of business only. Refer to the "Glossary" section of the Company's second quarter of 2025 interim MD&A for the definition of AUAO. Other balance sheet assets include insurance contract assets, reinsurance contract assets, goodwill and intangible assets, other assets, as well as the portion of invested assets and investments on account of segregated fund policyholders not included within total client assets. 1 Total Lifeco assets under administration includes assets under management related to PanAgora Asset Management included in the Corporate segment. 2 Refer to the "Glossary" section of the Company's second quarter of 2025 interim MD&A for additional details on the composition of this measure. NON-GAAP RATIOS A non-GAAP ratio is a financial measure in the form of a ratio, fraction, percentage or similar representation that is not disclosed in the financial statements of the Company and has a non-GAAP financial measure as one or more of its components. These financial measures do not have a standardized definition under IFRS and might not be comparable to similar financial measures disclosed by other issuers. The non-GAAP ratios disclosed by the Company each use base earnings (loss) as the non-GAAP component. Base earnings (loss) reflect management's view of the underlying business performance of the Company and provides an alternate measure to understand the underlying business performance compared to IFRS net earnings. Base dividend payout ratio - Dividends paid to common shareholders are divided by base earnings (loss). Base earnings per share - Base earnings (loss) for the period is divided by the number of average common shares outstanding for the period. Base return on equity - Base earnings (loss) for the trailing four quarters are divided by the average common shareholders' equity over the trailing four quarters. This measure provides an indicator of business unit profitability. Efficiency ratio - Calculated on a trailing four quarter basis as pre-tax non-par base operating and administrative expenses divided by the sum of pre-tax base earnings and pre-tax non-par base operating and administrative expenses. SOURCE Great-West Lifeco Inc.
Cision Canada
22-05-2025
- Business
- Cision Canada
Lindsey Rix-Broom appointed CEO, Europe of Great-West Lifeco Français
TSX: GWO WINNIPEG, MB, May 22, 2025 /CNW/ - Today, Great-West Lifeco Inc. ("Lifeco" or "the company") announced Lindsey Rix-Broom, currently CEO of Canada Life U.K., has been appointed CEO, Europe, effective July 1, 2025. This follows the previously announced appointment of David Harney, currently President & COO, Europe and Capital & Risk Solutions, as President & CEO, Great-West Lifeco and Canada Life, effective July 1, 2025. Lindsey will report directly to Lifeco's President & CEO and join the Lifeco Executive Management Committee. She will continue to lead Canada Life U.K. until a successor is appointed, ensuring a smooth transition and continued momentum. Lindsey is a recognized industry executive with 25 years of leadership experience. As the CEO of Canada Life U.K., she's brought strong focus and ambition, delivering on strategic priorities to simplify, modernize, and grow the business. She's spearheaded substantial growth across key business lines, capitalized on a significant market opportunity within the U.K. Bulk Purchase Annuity sector, unlocked significant value from the balance sheet, and led major modernization efforts across operations and technology. "Lindsey's skill, leadership, commercial acumen, and customer focus have created strong momentum in our U.K. business, and I know she'll bring the same disciplined approach to this role leading our European business segment," said David Harney, Incoming President & CEO, Great-West Lifeco and Canada Life. "I look forward to working closely with Lindsey as we advance Lifeco's strategy in Europe." "Lindsey is a proven leader who has demonstrated her ability to deliver sustainable growth and value," said Paul Mahon, President & CEO, Great-West Lifeco and Canada Life. "With these changes, David Harney has a strong and experienced team to execute against Lifeco's ambitions as he takes on the leadership of the company." "I'm excited about the opportunity to work alongside our leaders across Europe to expand our presence and impact for customers in the U.K., Ireland, and Germany," said Lindsey Rix-Broom, Incoming CEO, Europe. "We have focused strategies, strong teams, and a culture of excellence when it comes to delivering for our customers. I look forward to continuing to build upon Lifeco's momentum established under David Harney." Lindsey's biography is available here. About Great-West Lifeco Inc. Great-West Lifeco is a financial services holding company focused on building stronger, more inclusive and financially secure futures. We operate in Canada, the United States and Europe under the brands Canada Life, Empower and Irish Life. Together we provide wealth, retirement, workplace benefits and insurance and risk solutions to our over 40 million customer relationships. As of December 31, 2024, Great-West Lifeco's total client assets exceeded $3 trillion. Great-West Lifeco trades on the Toronto Stock Exchange (TSX) under the ticker symbol GWO and is a member of the Power Corporation group of companies. SOURCE Great-West Lifeco Inc.
Yahoo
22-05-2025
- Business
- Yahoo
Lindsey Rix-Broom appointed CEO, Europe of Great-West Lifeco
TSX:GWO WINNIPEG, MB, May 22, 2025 /CNW/ - Today, Great-West Lifeco Inc. ("Lifeco" or "the company") announced Lindsey Rix-Broom, currently CEO of Canada Life U.K., has been appointed CEO, Europe, effective July 1, 2025. This follows the previously announced appointment of David Harney, currently President & COO, Europe and Capital & Risk Solutions, as President & CEO, Great-West Lifeco and Canada Life, effective July 1, 2025. Lindsey will report directly to Lifeco's President & CEO and join the Lifeco Executive Management Committee. She will continue to lead Canada Life U.K. until a successor is appointed, ensuring a smooth transition and continued momentum. Lindsey is a recognized industry executive with 25 years of leadership experience. As the CEO of Canada Life U.K., she's brought strong focus and ambition, delivering on strategic priorities to simplify, modernize, and grow the business. She's spearheaded substantial growth across key business lines, capitalized on a significant market opportunity within the U.K. Bulk Purchase Annuity sector, unlocked significant value from the balance sheet, and led major modernization efforts across operations and technology. "Lindsey's skill, leadership, commercial acumen, and customer focus have created strong momentum in our U.K. business, and I know she'll bring the same disciplined approach to this role leading our European business segment," said David Harney, Incoming President & CEO, Great-West Lifeco and Canada Life. "I look forward to working closely with Lindsey as we advance Lifeco's strategy in Europe." "Lindsey is a proven leader who has demonstrated her ability to deliver sustainable growth and value," said Paul Mahon, President & CEO, Great-West Lifeco and Canada Life. "With these changes, David Harney has a strong and experienced team to execute against Lifeco's ambitions as he takes on the leadership of the company." "I'm excited about the opportunity to work alongside our leaders across Europe to expand our presence and impact for customers in the U.K., Ireland, and Germany," said Lindsey Rix-Broom, Incoming CEO, Europe. "We have focused strategies, strong teams, and a culture of excellence when it comes to delivering for our customers. I look forward to continuing to build upon Lifeco's momentum established under David Harney." Lindsey's biography is available here. About Great-West Lifeco Inc. Great-West Lifeco is a financial services holding company focused on building stronger, more inclusive and financially secure futures. We operate in Canada, the United States and Europe under the brands Canada Life, Empower and Irish Life. Together we provide wealth, retirement, workplace benefits and insurance and risk solutions to our over 40 million customer relationships. As of December 31, 2024, Great-West Lifeco's total client assets exceeded $3 trillion. Great-West Lifeco trades on the Toronto Stock Exchange (TSX) under the ticker symbol GWO and is a member of the Power Corporation group of companies. View original content to download multimedia: SOURCE Great-West Lifeco Inc. View original content to download multimedia: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
