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Cision Canada
07-05-2025
- Business
- Cision Canada
Great-West Lifeco reports strong first quarter 2025 results, driven by growth in Wealth and Retirement businesses Français
Great-West Lifeco Inc.'s Quarterly Report to Shareholders for the first quarter of 2025, including its Management's Discussion and Analysis (MD&A) and consolidated financial statements for the three months ended March 31, 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 $1.0 billion, or $1.11 per share, up 5% from Q1 2024 Net earnings from continuing operations of $860 million, or $0.92 per share, down 17% from Q1 2024 Base ROE of 17.2% and ROE from continuing operations of 15.6% LICAT ratio of 130% and Lifeco cash of $2.5 billion Book value per share of $27.61, up 12% year over year Repurchased 2.1 million shares, consistent with intention to repurchase $500 million in 2025 TORONTO, May 7, 2025 /CNW/ - Great-West Lifeco Inc. (Lifeco or the Company) today announced its Q1 2025 results. "We delivered strong results in the first quarter, including double-digit base earnings growth in our Retirement and Wealth businesses," said Paul Mahon, President and CEO, Great-West Lifeco. "Our U.S. segment continues to be the leading driver of this growth, with strong net flows on the back of retirement plan wins and excellent momentum in rollover sales. While market volatility is elevated, the core business continues to perform, and our growth ambitions remain well supported by our strong capital generation and balance sheet." Key Financial Highlights Base earnings 1 of $1,030 million or $1.11 per common share in the first quarter, up 5% from $978 million a year ago. The results reflect higher base earnings in our Retirement and Wealth businesses, primarily driven by business growth and higher equity markets compared to a year ago, as well as improved expense efficiency and favourable currency movements. These items were partially offset by lower earnings on surplus, write downs on three mortgage loans totaling $45 million, a claims provision of $21 million related to the California wildfires, and unfavourable mortality experience. 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' equity. Net earnings from continuing operations of $860 million or $0.92 per common share in the first quarter, compared to $1,031 million a year ago primarily reflect unfavourable market experience, particularly lower returns on real estate assets and interest rates. Highlights Strong underlying performance: Base earnings once again topped $1.0 billion, up 5% year-over-year, driven by double-digit base earnings growth in our Retirement and Wealth businesses. Base ROE exceeded 17% and remains poised to expand, largely owing to stronger growth in our more capital-efficient U.S. business. Strong capital generation contributed to a $370 million increase in cash at Lifeco compared to Q4 2024. Continued repositioning of the portfolio toward higher-growth, capital-efficient businesses, particularly Retirement and Wealth: Total client assets 4 exceeding $3.0 trillion, of which more than $1.0 trillion represents higher-margin assets under management or advisement. Strong growth in client assets of 13% across Retirement and Wealth businesses in all markets. Canada Wealth net flows 5 improved by more than $300 million compared to a year ago and nearly $200 million from the preceding quarter, in part driven by higher Investment Planning Counsel net flows and strong segregated fund sales. Continued mid-single-digit growth across our Group Benefits businesses as we maintain strong pricing discipline. U.S. segment continued to deliver double-digit earnings growth: U.S. base earnings up 13% year-over-year, driven by growth in average customer account balances, significant retirement plan wins and continued strength in Wealth net flows. U.S. net earnings from continuing operations were up 32% in the quarter compared to the first quarter of 2024. Base ROE of 18.6%, up 50 basis points from Q4 2024. Net ROE from continuing operations of 16.7%, up 90 basis points from Q4 2024. Approximately 270,000 net new plan participants at Empower in Q1 2025, an increase of 1.5% from Q4 2024. Net flows of US$2.8 billion in the Wealth business, largely driven by continued strength in rollover sales, which increased 30% from the prior year. Disciplined approach to managing the business contributes to the Company's resilience during periods of market volatility: Strong capital position provides substantial financial flexibility: LICAT ratio of 130% and Lifeco cash of $2.5 billion. Diversified portfolio of businesses, with no operating segment or line of business accounting for more than a third of base earnings 6. Significant earnings contribution from sources that are not market-sensitive in our Retirement and Wealth businesses. Prudent investment approach, with 93% fixed income assets, of which 99% is investment grade. Reduced exposure to weather-related catastrophes in our reinsurance business, as underscored by a claims provision of $21 million after-tax in Q1 2025 related to the wildfires in California despite significant insured losses for the industry. 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 Excludes Corporate segment and excludes earnings on surplus, corporate expenses and other within segments Q1 2025 SEGMENTED OPERATING RESULTS For reporting purposes, Lifeco's consolidated operating results are grouped into five reportable segments – Canada, United States, Europe, Capital and Risk Solutions and Corporate – reflecting the management and corporate structure of the Company. For more information, refer to the Company's first quarter 2025 interim Management's Discussion and Analysis (MD&A). 7 This is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 8 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$255 million ($365 million) and net earnings from continuing operations of US$237 million ($338 million) – Base earnings increased by US$30 million, or 13%, compared to the first quarter of 2024, primarily due to growth in fee-bearing client assets from higher equity markets and business growth, as well as the impact of cost synergies realized from the integration of Prudential last year. This was partially offset by write downs on three commercial mortgage loans of US$26 million post-tax ($37 million), as well as lower spread income resulting from higher crediting rates compared to a year ago. CANADA Canada segment base earnings of $316 million and net earnings of $301 million – Base earnings decreased by $24 million, or 7%, compared to the same quarter last year, primarily as a result of lower Contractual Service Margin (CSM) recognized due to actuarial assumption changes in the second half of 2024, less favourable Group Benefits mortality experience, and lower earnings on surplus due to declines in shorter-term yields. These items were partially offset by higher fee income resulting from asset growth in the Retirement and Wealth businesses, as well as organic growth of the Group Benefits in-force block. EUROPE Europe segment base earnings of $239 million and net earnings of $167 million – Base earnings increased by $13 million, or 6%, compared to the same quarter last year, primarily due to higher fee income from our Wealth business in Ireland, which benefitted from both strong flows and higher equity markets. In addition, Europe segment earnings benefitted from higher CSM recognized, mainly reflecting strong new business volumes in our U.K. bulk annuity business over the past year. These items were partially offset by lower earnings on surplus as a result of remitting capital to Lifeco. CAPITAL AND RISK SOLUTIONS Capital and Risk Solutions segment base earnings of $213 million and net earnings of $184 million – Base earnings increased by $8 million, or 4%, compared to the same quarter last year as business growth was partially offset by insurance experience losses. In-quarter experience included a net provision for estimated claims resulting from the impact of the California wildfires of $21 million after-tax as well as unfavourable mortality experience in the U.S. life business. QUARTERLY DIVIDENDS The Board of Directors approved a quarterly dividend of $0.61 per share on the common shares of Lifeco payable June 30, 2025, to shareholders of record at the close of business June 2, 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 previously announced that it intends to purchase $500 million under its current NCIB, in addition to any purchases made to offset dilution under its share compensation plans. These share repurchases are made subject to market conditions, the Company's ability to effect the purchases on a prudent basis, and other strategic opportunities emerging. In Q1 2025, the Company repurchased 2.1 million shares for $111 million, of which $80 million represented purchases in respect of the additional $500 million intention for 2025. Q1 2025 Conference Call Lifeco's first quarter conference call and audio webcast will be held on Thursday, May 8, 2025 at 9:30 a.m. ET. The live webcast of the call will be available at 1st 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 9089756. 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 March 31, 2025, 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. To learn more, visit Basis of presentation The condensed consolidated interim financial statements for the period ended March 31, 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 and related expected run-rate base earnings savings, expected expenditures or investments (including but not limited to investment in technology infrastructure and digital capabilities and solutions and investments in strategic partnerships), 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), 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. In arriving at our assessment of the Company's potential exposure to Global Minimum Tax and our expectation regarding the impact on our effective income tax rate and base earnings, management has relied on its interpretation of the relevant legislation. It has also assumed a starting point of its current mix of business and base earnings growth consistent with management's base earnings growth ambitions. 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. 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, impairments 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 only", "client assets", "non-par base operating and administration expenses", and "run-rate insurance earnings". 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 first 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 first 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 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 first quarter of 2025 interim Management's Discussion and Analysis. For further details on restated earnings for the first and fourth quarters of 2024, refer to the "Summary of Earnings Reclassification" section of the Company's first quarter of 2025 interim Management's Discussion and Analysis. 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 first quarter of 2025 interim MD&A for additional details on the composition of this measure. 3 Included in other non-market related impacts are business transformation impacts (including restructuring and integration costs as well as acquisition and divestiture costs), amortization of acquisition-related intangible assets and tax legislative changes and other tax impacts. 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. Lifeco For the three months ended Mar. 31 2025 Dec. 31 2024 Mar. 31 2024 Base earnings $ 1,030 $ 1,115 $ 978 Items excluded from Lifeco base earnings Market experience relative to expectations (pre-tax) $ (113) $ 59 $ 136 Income tax (expense) benefit 22 (21) (29) Assumption changes and management actions (pre-tax) (42) 21 3 Income tax (expense) benefit 10 (5) (4) Business transformation impacts (pre-tax) 1 (13) (34) (67) Income tax (expense) benefit 1 3 4 18 Amortization of acquisition-related finite life intangibles (pre-tax) 1 (51) (51) (50) Income tax (expense) benefit 1 14 14 12 Tax legislative changes and other tax impacts (pre-tax) 1 — — — Income tax (expense) benefit 1 — 14 34 Total pre-tax items excluded from base earnings $ (219) $ (5) $ 22 Impact of items excluded from base earnings on income taxes 49 6 31 Net earnings from continuing operations $ 860 $ 1,116 $ 1,031 Net earnings (loss) from discontinued operations (post-tax) — — (115) Net gain from disposal of discontinued operations (post-tax) — — 44 Net earnings - common shareholders $ 860 $ 1,116 $ 960 1 Included in other non-market related impacts. United States For the three months ended Mar. 31 2025 Dec. 31 2024 (Restated) Mar. 31 2024 (Restated) Base earnings $ 365 $ 381 $ 302 Items excluded from base earnings Market experience relative to expectations (pre-tax) $ 2 $ (6) $ (3) Income tax (expense) benefit — — 1 Business transformation impacts (pre-tax) 1 (1) (19) (44) Income tax (expense) benefit 1 — 5 12 Amortization of acquisition-related finite life intangibles (pre-tax) 1 (38) (37) (34) Income tax (expense) benefit 1 10 9 8 Net earnings from continuing operations $ 338 $ 333 $ 242 Net earnings (loss) from discontinued operations (post-tax) — — (115) Net gain from disposal of discontinued operations (post-tax) — — 44 Net earnings - common shareholders $ 338 $ 333 $ 171 1 Included in other non-market related impacts. Canada For the three months ended Mar. 31 2025 Dec. 31 2024 (Restated) Mar. 31 2024 (Restated) Base earnings $ 316 $ 362 $ 340 Items excluded from base earnings Market experience relative to expectations (pre-tax) $ (9) $ 16 $ 93 Income tax (expense) benefit (1) (7) (26) Assumption changes and management actions (pre-tax) — — 9 Income tax (expense) benefit — — (3) Business transformation impacts (pre-tax) 1 (2) (5) (23) Income tax (expense) benefit 1 1 1 6 Amortization of acquisition-related finite life intangibles (pre-tax) 1 (6) (6) (7) Income tax (expense) benefit 1 2 2 2 Tax legislative changes and other tax impacts (pre-tax) 1 — — — Income tax (expense) benefit 1 — 14 — Net earnings - common shareholders $ 301 $ 377 $ 391 1 Included in other non-market related impacts. Europe For the three months ended Mar. 31 2025 Dec. 31 2024 (Restated) Mar. 31 2024 (Restated) Base earnings $ 239 $ 260 $ 226 Items excluded from base earnings Market experience relative to expectations (pre-tax) $ (47) $ 55 $ (15) Income tax (expense) benefit 11 (9) 3 Assumption changes and management actions (pre-tax) (32) 26 — Income tax (expense) benefit 8 (6) — Business transformation impacts (pre-tax) 1 (10) 23 — Income tax (expense) benefit 1 2 (6) — Amortization of acquisition-related finite life intangibles (pre-tax) 1 (5) (6) (6) Income tax (expense) benefit 1 1 2 1 Tax legislative changes impact (pre-tax) 1 — — — Income tax (expense) benefit 1 — — 7 Net earnings - common shareholders $ 167 $ 339 $ 216 1 Included in other non-market related impacts. Capital and Risk Solutions For the three months ended Mar. 31 2025 Dec. 31 2024 (Restated) Mar. 31 2024 (Restated) Base earnings $ 213 $ 232 $ 205 Items excluded from base earnings Market experience relative to expectations (pre-tax) $ (35) $ (23) $ 49 Income tax (expense) benefit 7 (2) (4) Assumption changes and management actions (pre-tax) (1) (5) (6) Income tax (expense) benefit — 1 (1) Tax legislative changes impact (pre-tax) 1 — — — Income tax (expense) benefit 1 — — 27 Net earnings - common shareholders $ 184 $ 203 $ 270 1 Included in other non-market related impacts. Corporate For the three months ended Mar. 31 2025 Dec. 31 2024 (Restated) Mar. 31 2024 (Restated) Base earnings (loss) $ (103) $ (120) $ (95) Items excluded from base earnings (loss) Market experience relative to expectations (pre-tax) $ (24) $ 17 $ 12 Income tax (expense) benefit 5 (3) (3) Assumption changes and management actions (pre-tax) (9) — — Income tax (expense) benefit 2 — — Business transformation impacts (pre-tax) 1 — (33) — Income tax (expense) benefit 1 — 4 — Amortization of acquisition-related finite life intangibles (pre-tax) 1 (2) (2) (3) Income tax (expense) benefit 1 1 1 1 Net earnings (loss) - common shareholders $ (130) $ (136) $ (88) 1 Included in other non-market related impacts. 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 first 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. Lifeco 1 Mar. 31 2025 Dec. 31 2024 (Restated) Mar. 31 2024 (Restated) Assets under administration Assets under management or advisement $ 1,013,530 $ 1,006,384 $ 917,836 Assets under administration only 2 1,993,588 2,026,945 1,738,875 Total client assets $ 3,007,118 $ 3,033,329 $ 2,656,711 Other assets on balance sheet 230,983 232,969 198,453 Total assets under administration $ 3,238,101 $ 3,266,298 $ 2,855,164 of which: Total balance sheet assets $ 804,144 $ 802,163 $ 736,722 of which: Invested assets $ 247,807 $ 243,785 $ 227,673 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 first 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.
Hamilton Spectator
01-05-2025
- Business
- Hamilton Spectator
Great-West Lifeco CEO Paul Mahon to retire, will be succeeded by David Harney
WINNIPEG - Great-West Lifeco Inc. says its president and CEO Paul Mahon is set to retire July 1 and will be succeeded by David Harney. Mahon has spent 39 years with the company, including the past 12 as its chief executive. The Winnipeg-based insurer says in a press release that Mahon has provided 'steady, principled leadership' and was central in shaping its long-term direction, including through the amalgamation of three brands into Canada Life and the launch and build-out of Empower in the U.S. Board of directors chair Jeffrey Orr says that under Mahon's leadership, the company 'has been repositioned and strengthened, achieving record performance and delivering lasting value for our shareholders.' The company says he will act as a senior adviser until early 2026 to support the transition. Harney has served as the company's chief operating officer for Europe since 2020, overseeing the Irish Life and Canada Life organizations in the U.K., Ireland and Germany. This report by The Canadian Press was first published May 1, 2025. Companies in this story: (TSX:GWO)
Winnipeg Free Press
01-05-2025
- Business
- Winnipeg Free Press
Great-West Lifeco CEO Paul Mahon to retire, will be succeeded by David Harney
WINNIPEG – Great-West Lifeco Inc. says its president and CEO Paul Mahon is set to retire July 1 and will be succeeded by David Harney. Mahon has spent 39 years with the company, including the past 12 as its chief executive. The Winnipeg-based insurer says in a press release that Mahon has provided 'steady, principled leadership' and was central in shaping its long-term direction, including through the amalgamation of three brands into Canada Life and the launch and build-out of Empower in the U.S. Board of directors chair Jeffrey Orr says that under Mahon's leadership, the company 'has been repositioned and strengthened, achieving record performance and delivering lasting value for our shareholders.' The company says he will act as a senior adviser until early 2026 to support the transition. Harney has served as the company's chief operating officer for Europe since 2020, overseeing the Irish Life and Canada Life organizations in the U.K., Ireland and Germany. During Elections Get campaign news, insight, analysis and commentary delivered to your inbox during Canada's 2025 election. This report by The Canadian Press was first published May 1, 2025. Companies in this story: (TSX:GWO)
Yahoo
02-04-2025
- Business
- Yahoo
Great-West Lifeco Hosts 2025 Investor Day, Demonstrating how the Company is Driving Growth and Delivering Lasting Value
TSX:GWO Updates Medium-Term Financial Objectives; increasing Base Return on Equity Objective to 19%+ WINNIPEG, MB, April 2, 2025 /CNW/ - Great-West Lifeco Inc. (TSX: GWO) (Lifeco or the Company) will host an Investor Day in Toronto, Ontario today with the theme Driving Growth, Delivering Lasting Value. The event will include a strategic overview of Lifeco's portfolio of businesses and a focused update on each of the Company's business segments. The presentations will highlight how the Company is building and extending its market-leading franchises, delivering lasting value creation for shareholders, and continuing its shift to a more capital efficient mix of businesses. As part of today's event, the Company is updating its medium-term financial objectives, including increasing its Base Return on Equity1 objective to 19%+, up from 16-17%, introducing a new objective for Base Capital Generation2 of 80%+, and reaffirming its confidence in Base EPS growth1 objective of 8-10% and Base Dividend Payout Ratio1 objective of 45-55%. "At Great-West Lifeco, we're driving growth and delivering lasting value for our shareholders. We're doing this with leadership positions in each of our businesses, focused strategies to deliver for our customers, and supported by strong cash and capital generation," said Paul Mahon, President and Chief Executive Officer, Great-West Lifeco. "Today's update demonstrates our confidence in the future of our business, which is why we've updated our medium-term financial objectives, including increasing our objective for Base Return on Equity." Webcast The webcast will begin at 8:30 a.m. and conclude at 12:20 p.m. ET. To register for and attend the live webcast, and to view the Investor Day materials, visit Great-West Lifeco's Investor Day 2025 event page. ________________________________________________________________1 Represents a non-GAAP ratio calculated using base earnings, a non-GAAP financial measure. Additional information regarding these measures/ratios is incorporated by reference and can be found in the "Non-GAAP Financial Measures and Ratios" section of Lifeco's 2024 Annual Management's Discussion and Analysis (MD&A), available at and in the Supplemental Information Package template on Lifeco's website (per Lifeco's news release dated March 17, 2025). 2 Base capital generation is a non-GAAP ratio that provides a view of capital generated or consumed by the business above our internal operating target level. Base capital generation is calculated as follows: base earnings, plus organic CSM movement, plus the change in surplus allowance and required capital related to new business and the run-off of in-force business. Organic CSM movement refers to CSM (excluding participating products), plus impact of new insurance business, plus expected movements from asset returns and locked-in rates, plus CSM recognized for services provided, plus insurance experience gains and losses. Change in surplus allowance and required capital related to new business and the run-off of in-force business excludes participating business and the same items excluded from net earnings. Refer to "Non-GAAP Financial Measures and Ratios" in Lifeco's 2024 Annual MD&A for a description of items excluded from net earnings to calculate base earnings. 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. To learn more, visit SOURCE Great-West Lifeco Inc. View original content to download multimedia: Sign in to access your portfolio
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05-02-2025
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Great-West Lifeco reports record fourth quarter and full year 2024 base earnings; announces dividend increase of 10% and plans for further NCIB share purchases
Great-West Lifeco Inc.'s Quarterly Report to Shareholders for the fourth quarter of 2024, including its Management's Discussion and Analysis (MD&A) and annual consolidated financial statements for the three and twelve months ended December 31, 2024, 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 figures are expressed in millions of Canadian dollars, unless otherwise noted. Base earnings of $1.1 billion, or $1.20 per share, up 15% from Q4 2023; full year base earnings of $4.2 billion, or $4.50 per share, up 14% from 2023 Net earnings from continuing operations of $1.1 billion, or $1.20 per share, up 50% from Q4 2023; full year net earnings from continuing operations of $4.0 billion, or $4.30 per share, up 40% from 2023 Base ROE of 17.5% and ROE from continuing operations of 16.7% LICAT ratio increased two points in 2024 to 130% Book value per share of $27.17, up 12% year over year Quarterly dividend increase of 10% to $0.61 per common share Intention to purchase additional $500 million of common shares under existing Normal Course Issuer Bid1 WINNIPEG, MB, Feb. 5, 2025 /CNW/ - Great-West Lifeco Inc. (Lifeco or the Company) today announced its fourth quarter 2024 results. "Great-West Lifeco delivered record results in 2024, with strong momentum across segments, positioning the Company for continued growth in 2025 and beyond. The strength of the Company's earnings momentum and the value created for shareholders is reflected in the 10% increase in the Company's dividend and our intention to repurchase additional common shares," said Paul Mahon, President and CEO, Great-West Lifeco. "These results reflect our unrelenting focus to deliver on our growth strategies which has enabled us to exceed our medium-term financial objectives2. We have diversified businesses in several countries and a record of managing through volatility. We are well positioned to weather adverse economic impacts that may result from operating in a world experiencing heightened uncertainty. Our disciplined approach to managing the business continues to bolster our capital strength and provides us with significant financial flexibility to continue to drive value creation while managing risk." Key Financial Highlights In-Quarter Full Year Earnings Q4 2024 Q3 2024 Q4 2023 2024 2023 Base earnings3 $1,115 $1,061 $971$4,192 $3,667 Net earnings from continuing operations $1,116 $859 $743$4,011 $2,862 Net earnings $1,116 $859 $740$3,940 $2,738 Earnings per share Base EPS4 $1.20 $1.14 $1.04$4.50 $3.94 Net EPS from continuing operations $1.20 $0.92 $0.80$4.30 $3.07 Net EPS $1.20 $0.92 $0.79$4.23 $2.94 Return on Equity Base ROE4,5 17.5 % 17.3 % 16.6 % ROE – continuing operations5 16.7 % 15.6 % 12.9 % 1 This is in addition to the purchases we make to offset dilution under our share compensation plans. This is subject to market conditions, our ability to effect the purchases on a prudent basis, and other strategic opportunities emerging. 2 Medium Term Objectives are defined in the Company's 2024 Annual Management's Discussion and Analysis (MD&A). 3 This is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 4 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. 5 Base return on equity and return on equity – continuing operations are calculated using the trailing four quarters of applicable earnings and common shareholders' equity. Record base earnings3 of $1,115 million or $1.20 per common share in the fourth quarter, up 15% from $971 million a year ago. The fourth quarter of 2024 was the third consecutive quarter that Lifeco reported record base earnings over $1 billion. The fourth quarter results mainly reflect higher net fee and spread income from all segments from growth in the business and higher equity markets, partially offset by the impact of the Global Minimum Tax (GMT) in the Capital and Risk Solutions and Europe segments. Additionally, base earnings growth was driven by organic growth in Workplace Solutions in the Canada segment and higher contractual service margin (CSM) recognized in the Europe segment. These items were partially offset by lower individual insurance experience and lower earnings on surplus in the Canada segment and favourable property catastrophe impacts in 2023 that did not repeat in the Capital and Risk Solutions segment. Net earnings from continuing operations of $1,116 million or $1.20 per common share in the fourth quarter, compared to $743 million a year ago reflects higher base earnings, favourable market experience relative to expectations, and net favourable impacts of risk-free rate movements. Highlights Record base earnings for the sixth consecutive quarter: Focused strategy to reposition portfolio with increased emphasis on meeting the wealth and retirement needs of customers continues to drive growth across the business. U.S. segment the largest segment by base earnings, driven by record results and strong value-creating performance at Empower: Disciplined approach to managing business remains a core attribute contributing to the strength and stability of the Company's long-term performance: 6 This is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. 7 Includes Investment Planning Counsel (IPC) and Value Partners acquisitions. 8 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. 9 This estimated maximum loss is based on our contract terms and current public reports regarding the fires. The actual impact will be dependent on a number of factors, many of which are still to be determined, including total insured losses and whether the wildfires are considered more than a single loss event. The Company will continue to assess the impact as more information is available and any provision will be determined as part of the Company's 2025 financial results. SEGMENTED OPERATING RESULTS For reporting purposes, Lifeco's consolidated operating results are grouped into five reportable segments – Canada, United States, Europe, Capital and Risk Solutions and Lifeco Corporate – reflecting the management and corporate structure of the Company. For more information, refer to the Company's 2024 Annual Management's Discussion and Analysis (MD&A).In-Quarter Full YearQ4 2024 Q3 2024 Q4 2023 2024 2023 Segment base earnings10Canada $321 $317 $301 $1,262 $1,158 United States 367 359 261 1,336 1,006 Europe 231 195 213 829 777 Capital and Risk Solutions 223 210 236 818 794 Lifeco Corporate (27) (20) (40) (53) (68) Total base earnings10 $1,115 $1,061 $971 $4,192 $3,667 Segment net earnings from continuing operationsCanada $336 $460 $166 $1,484 $961 United States 304 307 194 1,118 769 Europe 310 115 217 813 384 Capital and Risk Solutions 194 9 215 618 833 Lifeco Corporate (28) (32) (49) (22) (85) Total net earnings from continuing operations $1,116 $859 $743 $4,011 $2,862 Net earnings (loss) from discontinued operations - - (3) (115) (124) Net gain on disposal of discontinued operations - - - 44 - Total net earnings $1,116 $859 $740 $3,940 $2,738 10 This is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details. CANADA Q4 Canada segment base earnings of $321 million and net earnings of $336 million – Base earnings of $321 million increased by $20 million, or 7%, compared to the same quarter last year, primarily due to higher net fee and spread income from the addition of IPC and Value Partners and favourable market impacts, organic growth of in-force block earnings in Workplace Solutions, and strong Workplace Solutions health experience driven by pricing actions. These items were partially offset by lower individual insurance health experience and lower earnings on surplus. UNITED STATES Q4 United States segment base earnings of US$262 million ($367 million) and net earnings from continuing operations of US$216 million ($304 million) – Base earnings of US$262 million increased by US$69 million, or 36%, compared to the fourth quarter of 2023, primarily due to a significant increase in fee income driven by growth in the business and higher equity markets, as well as lower credit impacts on commercial mortgage loans. This increase was partially offset by higher crediting rates and higher growth related operating expenses in the current year. EUROPE Q4 Europe segment base earnings of $231 million and net earnings of $310 million – Base earnings of $231 million increased by $18 million, or 8%, compared to the same quarter last year, primarily due to fee income growth in Ireland driven by strong flows and markets, higher CSM recognized and higher trading gains in the U.K. These items were partially offset by less favourable group protection experience in the U.K., and less favourable health experience in Ireland. CAPITAL AND RISK SOLUTIONS Q4 Capital and Risk Solutions segment base earnings of $223 million and net earnings of $194 million – Base earnings of $223 million decreased by $13 million, or 6%, compared to the same quarter last year, as business growth, favourable claims experience in the U.S. life business and higher earnings on surplus were offset by the impact of the GMT and favourable property catastrophe claims experience in 2023 which did not recur. QUARTERLY DIVIDENDS The Board of Directors approved a quarterly dividend of $0.61 per share on the common shares of Lifeco, an increase of $0.055 per share, payable March 31, 2025, to shareholders of record at the close of business March 3, 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 Purchases The Company intends to purchase $500 million under our current NCIB, in addition to the purchases made to offset dilution under its share compensation plans. This is subject to market conditions, the Company's ability to effect the purchases on a prudent basis, and other strategic opportunities emerging. Fourth Quarter Conference Call Lifeco's fourth quarter conference call and audio webcast will be held on Thursday, February 6, 2025 at 8 a.m. ET. The live webcast of the call will be available at 4th Quarter 2024 – Conference Call and Webcast or by calling 1-844-763-8274 (toll-free) or 1-647-484-8814 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 1-412-317-0022 (U.S. toll-free) and using the access code 5558187. 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 December 31, 2024, Great-West Lifeco's assets under administration exceeded $3.2 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 annual consolidated financial statements for the periods ended December 31, 2024 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 This release contains forward-looking information. Forward-looking information includes statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "will", "may", "expects", "anticipates", "intends", "plans", "believes", "estimates", "objective", "target", "potential" and other similar expressions or negative versions thereof. 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, medium-term financial objectives and base earnings objectives for the Empower business), expected earnings contribution of the Company's U.S. segment, 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), expected expenditures or investments (including but not limited to investment in technology infrastructure and digital capabilities and solutions and investments in strategic partnerships), value creation and realization of growth opportunities, product and service innovation, expected dividend levels, expected cost reductions and savings, expected capital management activities and use of capital, market position, estimates of risk sensitivities affecting capital adequacy ratios, 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, mutual fund and retirement solutions industries. They are not guarantees of future performance, and the reader is cautioned that 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. In arriving at our assessment of the Company's potential exposure to Global Minimum Tax and our expectation regarding the impact on our effective income tax rate and base earnings, management has relied on its interpretation of the relevant legislation. It has also assumed a starting point of its current mix of business and base earnings growth consistent with management's base earnings objectives disclosed in the Company's 2024 Annual MD&A. 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. 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, impairments 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 reader is cautioned that the foregoing list of assumptions and factors is not exhaustive, and there may be other factors listed in other filings with securities regulators, including factors set out in the Company's 2024 Annual MD&A under "Risk Management and Control Practices" and "Summary of Critical Accounting Estimates" and in the Company's annual information form dated February 5, 2025 under "Risk Factors", which, along with other filings, is available for review at The reader is also 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: insurance service result", "base earnings: net investment result", "assets under management" and "assets under administration". 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" and "effective income tax rate – base earnings – common shareholders". 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 informationAs at or for the three months endedFor the twelve months ended Dec. 312024 Sept. 30 2024 Dec. 31 2023 Dec. 312024 Dec. 31 2023 Base earnings1 $ 1,115 $ 1,061 $ 971$ 4,192 $ 3,667Net earnings from continuing operations2 1,116 859 7434,011 2,862Net earnings - common shareholders 1,116 859 7403,940 2,738Per common share Basic: Base earnings3 1.20 1.14 1.044.50 3.94 Net earnings from continuing operations 1.20 0.92 0.804.30 3.07 Net earnings 1.20 0.92 0.794.23 2.94 Dividends paid 0.555 0.555 0.5202.220 2.080Base dividend payout ratio3 46.3 % 48.7 % 50.0 %49.3 % 52.8 %Dividend payout ratio2 46.3 % 60.3 % 65.6 %52.5 % 70.7 %Book value per common share2 27.17 25.78 24.26 Base return on equity3 17.5 % 17.3 % 16.6 % Return on equity - continuing operations2,4 16.7 % 15.6 % 12.9 % Financial leverage ratio5 29 % 29 % 30 % Total assets per financial statements $ 802,163 $ 779,741 $ 713,230 Total assets under management1 1,039,405 1,004,183 1,095,374 Total assets under administration1 3,266,298 3,110,284 2,852,540 Total contractual service margin (net of reinsurance contracts held) $ 13,368 $ 13,517 $ 12,635 Total equity $ 32,654 $ 31,311 $ 29,851 Canada Life Assurance Company consolidated LICAT Ratio6 130 % 134 % 128 % 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 2024 Annual 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 Comparative result for the period ended December 31, 2023 has been restated to exclude amounts related to discontinued operations which were included in error in the Q4 2023 MD&A. 5 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. 6 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 2024 Annual 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 Canada Life (and its operating subsidiaries), Empower and PanAgora Asset Management, together with Lifeco's Corporate operating results. Net earnings 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 2024 Annual Management's Discussion and Analysis. Base earnings1 and net earnings - common shareholders by segment For the three months endedFor the twelve months endedDec. 312024 Sept. 30 2024 Dec. 31 2023 Dec. 312024 Dec. 31 2023 Base earnings (loss)1 Canada $ 321 $ 317 $ 301$ 1,262 $ 1,158 United States 367 359 2611,336 1,006 Europe 231 195 213829 777 Capital and Risk Solutions 223 210 236818 794 Lifeco Corporate (27) (20) (40)(53) (68) Lifeco base earnings1 $ 1,115 $ 1,061 $ 971$ 4,192 $ 3,667Items excluded from base earnings Market experience relative to expectations2 $ 38 $ 41 $ (213)$ 214 $ (307) Realized OCI gains / (losses) from asset rebalancing — — —— (121) Assumption changes and management actions2 16 (203) 83(149) (20) Other non-market related impacts3 (53) (40) (98)(246) (357) Items excluded from Lifeco base earnings $ 1 $ (202) $ (228)$ (181) $ (805)Net earnings (loss) from continuing operations2 Canada $ 336 $ 460 $ 166$ 1,484 $ 961 United States 304 307 1941,118 769 Europe 310 115 217813 384 Capital and Risk Solutions 194 9 215618 833 Lifeco Corporate (28) (32) (49)(22) (85) Lifeco net earnings from continuing operations2 $ 1,116 $ 859 $ 743$ 4,011 $ 2,862 Net earnings (loss) from discontinued operations — — (3)(115) (124) Net gain from disposal of discontinued operations — — —44 — Lifeco net earnings - common shareholders $ 1,116 $ 859 $ 740$ 3,940 $ 2,738 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 2024 Annual MD&A for additional details on the composition of this measure. 3 Included in other non-market related impacts are business transformation impacts (including restructuring and integration costs as well as acquisition and divestiture costs), amortization of acquisition-related intangible assets and tax legislative changes and other tax impacts. 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; Realized gains (losses) on the sale of assets measured at fair value through other comprehensive income (FVOCI); 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. Lifeco For the three months endedFor the twelve months ended Dec. 312024 Sept. 302024 Dec. 312023 Dec. 312024 Dec. 312023 Base earnings $ 1,115 $ 1,061 $ 971$ 4,192 $ 3,667Items excluded from Lifeco base earningsMarket experience relative to expectations (pre- tax) $ 59 $ 46 $ (351)$ 286 $ (461)Income tax (expense) benefit (21) (5) 138(72) 154Realized OCI gains / (losses) from asset rebalancing (pre-tax) — — —— (158)Income tax (expense) benefit — — —— 37Assumption changes and management actions (pre-tax) 21 (235) (28)(209) (149)Income tax (expense) benefit (5) 32 11160 129Business transformation impacts (pre-tax)1 (34) (7) (137)(144) (340)Income tax (expense) benefit1 4 3 7032 118Amortization of acquisition-related finite life intangibles (pre-tax)1 (51) (47) (42)(200) (182)Income tax (expense) benefit1 14 11 1152 47Tax legislative changes and other tax impacts (pre-tax)1 — — —— —Income tax (expense) benefit1 14 — —14 —Total pre-tax items excluded from base earnings $ (5) $ (243) $ (558)$ (267) $ (1,290)Impact of items excluded from base earnings on income taxes 6 41 33086 485Net earnings from continuing operations $ 1,116 $ 859 $ 743$ 4,011 $ 2,862Net earnings (loss) from discontinued operations (post-tax) — — (3)(115) (124)Net gain from disposal of discontinued operations (post-tax) — — —44 —Net earnings - common shareholders $ 1,116 $ 859 $ 740$ 3,940 $ 2,7381 Included in other non-market related impacts. Canada For the three months endedFor the twelve months ended Dec. 312024 Sept. 30 2024 Dec. 31 2023 Dec. 312024 Dec. 31 2023 Base earnings $ 321 $ 317 $ 301$ 1,262 $ 1,158Items excluded from base earningsMarket experience relative to expectations (pre- tax) $ 16 $ 58 $ (162)$ 202 $ (197)Income tax (expense) benefit (7) (15) 48(58) 58Assumption changes and management actions (pre-tax) — 147 (22)157 (52)Income tax (expense) benefit — (41) 5(44) 14Business transformation impacts (pre-tax)1 (5) (4) (5)(41) (9)Income tax (expense) benefit1 1 1 210 3Amortization of acquisition-related finite life intangibles (pre-tax)1 (6) (4) (2)(25) (20)Income tax (expense) benefit1 2 1 17 6Tax legislative changes and other tax impacts (pre-tax)1 — — —— —Income tax (expense) benefit1 14 — —14 —Net earnings - common shareholders $ 336 $ 460 $ 166$ 1,484 $ 9611 Included in other non-market related impacts. United States For the three months endedFor the twelve months ended Dec. 312024 Sept. 30 2024 Dec. 31 2023 Dec. 312024 Dec. 312023 Base earnings $ 367 $ 359 $ 261$ 1,336 $ 1,006Items excluded from base earningsMarket experience relative to expectations (pre- tax) $ 13 $ (1) $ (13)$ 19 $ 5Income tax (expense) benefit (4) — 4(5) (1)Assumption changes and management actions (pre-tax) — (29) —(29) —Income tax (expense) benefit — 6 —6 —Business transformation impacts (pre-tax)1 (52) (2) (52)(125) (191)Income tax (expense) benefit1 9 1 2027 54Amortization of acquisition-related finite life intangibles (pre-tax)1 (39) (36) (35)(151) (140)Income tax (expense) benefit1 10 9 940 36Net earnings from continuing operations $ 304 $ 307 $ 194$ 1,118 $ 769Net earnings (loss) from discontinued operations (post-tax) — — (3)(115) (124)Net gain from disposal of discontinued operations (post-tax) — — —44 —Net earnings - common shareholders $ 304 $ 307 $ 191$ 1,047 $ 6451 Included in other non-market related impacts. Europe For the three months endedFor the twelve months ended Dec. 312024 Sept. 30 2024 Dec. 31 2023 Dec. 312024 Dec. 31 2023 Base earnings $ 231 $ 195 $ 213$ 829 $ 777Items excluded from base earningsMarket experience relative to expectations (pre- tax) $ 55 $ (30) $ (114)$ 23 $ (321)Income tax (expense) benefit (9) 7 54(4) 78Realized OCI gains / (losses) from asset rebalancing (pre-tax) — — —— (158)Income tax (expense) benefit — — —— 37Assumption changes and management actions (pre-tax) 26 (69) (6)(45) (46)Income tax (expense) benefit (6) 18 10612 113Business transformation impacts (pre-tax)1 23 (1) (80)22 (140)Income tax (expense) benefit1 (6) 1 48(5) 61Amortization of acquisition-related finite life intangibles (pre-tax)1 (6) (7) (5)(24) (22)Income tax (expense) benefit1 2 1 15 5Net earnings - common shareholders $ 310 $ 115 $ 217$ 813 $ 3841 Included in other non-market related impacts. Capital and Risk Solutions For the three months endedFor the twelve months ended Dec. 312024 Sept. 30 2024 Dec. 31 2023 Dec. 312024 Dec. 31 2023 Base earnings $ 223 $ 210 $ 236$ 818 $ 794Items excluded from base earningsMarket experience relative to expectations (pre- tax) $ (23) $ 34 $ (50)$ 54 $ 75Income tax (expense) benefit (2) — 29(8) 13Assumption changes and management actions (pre-tax) (5) (284) —(296) (51)Income tax (expense) benefit 1 49 —50 2Net earnings - common shareholders $ 194 $ 9 $ 215$ 618 $ 833 Lifeco Corporate For the three months endedFor the twelve months ended Dec. 312024 Sept. 30 2024 Dec. 31 2023 Dec. 312024 Dec. 31 2023 Base earnings (loss) $ (27) $ (20) $ (40)$ (53) $ (68)Items excluded from base earnings (loss)Market experience relative to expectations (pre- tax) $ (2) $ (15) $ (12)$ (12) $ (23)Income tax (expense) benefit 1 3 33 6Assumption changes and management actions (pre-tax) — — —4 —Income tax (expense) benefit — — —36 —Net earnings (loss) - common shareholders $ (28) $ (32) $ (49)$ (22) $ (85)Assets under management (AUM) and assets under administration (AUA) Assets under management and assets under administration are non-GAAP measures that provide an indicator 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 total assets per financial statements, proprietary mutual funds and institutional assets and other assets under administration. LifecoDec. 312024 Sept. 302024 Dec. 31 2023 Total assets per financial statements1 $ 802,163 $ 779,741 $ 713,230Continuing operations - other AUM 237,242 224,442 220,578Discontinued operations - other AUM — — 161,566Total AUM1 $ 1,039,405 $ 1,004,183 $ 1,095,374Other AUA 2,226,893 2,106,101 1,757,166Total AUA1 $ 3,266,298 $ 3,110,284 $ 2,852,5401 Comparative figures include assets held for sale and other AUM related to the discontinued operations of Putnam Investments. 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. SOURCE Great-West Lifeco Inc. View original content to download multimedia:
