Great-West Lifeco Inc.

Great-West reported 15% year-over-year base EPS growth in Q2 2026, with base ROE of 19.3%. Total retirement and wealth client assets increased 22% year over year to more than $3.37 trillion, including $1.3 trillion of higher-margin assets under management or advisement. Empower’s base earnings rose 34% in constant currency, with wealth base earnings up 67% year over year and a record 40% operating margin; Empower’s base ROE reached 22.2%. Europe’s base earnings increased 2% year over year in Q2 and 8% year to date, while CRS base earnings rose 35% in constant currency in Q2. The company ended the quarter with a LICAT ratio of 128%, Holdco cash of $2.5 billion, and a leverage ratio of 27%. Management said total capital deployment through buybacks and M&A in 2026 is expected to be at least as much as the $1.6 billion deployed in 2025, and reiterated that LICAT should remain at or above 125% for the rest of the year even if reinsurance new business stays elevated.

David Harney framed the quarter as validation of the company’s strategy and operating execution, emphasizing diversified growth, higher capital efficiency, and strong cash generation. He highlighted Empower’s milestone above US$2 trillion in workplace assets, Europe’s improving return profile, and continued demand in CRS, saying the company is well positioned to meet its medium-term objectives. His tone was confident and upbeat, with repeated emphasis on discipline in capital deployment and long-term shareholder value.

Jon Nielsen focused on the financial strength of the quarter: 15% base EPS growth, base ROE of 19.3%, base capital generation above 80% of base earnings, and free cash flow at 86% of base earnings. He said credit experience was within the expected annualized range of 4 to 6 basis points and that under normal conditions it should be at the lower end of the $80 million to $120 million pretax range. He also laid out capital flexibility, noting $925 million of share repurchases year to date, the US$340 million Milliman acquisition, LICAT at 128%, and Holdco cash of $2.5 billion, while saying total 2026 capital deployment should be at least equal to 2025’s $1.6 billion.

Analysts pressed on whether strong demand in CRS was widening or eroding margins; management said the business is inherently lumpy, margins on older deals naturally erode, but new business margins remain good and demand remains strong across a diversified set of solutions. Questions also focused on Empower’s participant flows and Milliman; management said workplace contribution seasonality explains some of the flow pattern and expects improvement in Q3 and beyond, while Milliman is meant to fill a product gap and improve bundled sales opportunities. On Europe, management said it is about two-thirds through its capital optimization work and still sees opportunities across the broader portfolio.