Great-West Lifeco Reports ROE Surpasses 19% in Q2, Expands Growth Platform

Great-West Lifeco (GWO) delivered a strong second-quarter performance at its Scotiabank Financials Summit on September 10, 2026, with a return on equity (ROE) of 19.3%—exceeding its 19% medium-term target. The company’s CEO, David Harney, emphasized a year of solid business execution since taking the helm on July 1, 2025, citing a capital-light earnings mix now accounting for two-thirds of total earnings, with projections to rise to 70%–75% over the planning period. Empower, its U.S. retirement and wealth platform, saw client assets cross CAD 2 trillion in Q2, with an operating margin of 34.7%, up from just over 30% in full-year 2025. Personal wealth assets exceeded USD 100 billion, with a margin above 40%, while net inflows slowed to CAD 1.8 billion in Q1–Q2 of 2026 from CAD 3.5 billion in the prior year’s third and fourth quarters. The company also reported USD 20 billion in new plan wins in 2025, nearly USD 200 billion in accumulated wins since the 2023 acquisition of MassMutual, and a rollover capture rate of 15%, though it aims for mid-20s to high-20s long-term. Share buybacks totaled CAD 1.6 billion in 2025 and CAD 925 million in the first half of 2026, with at least CAD 1.6 billion planned for the year, including allocations tied to the USD 340 million Milliman acquisition. Capital optimization efforts in the U.K. delivered CAD 2 billion in value so far, with another CAD 1 billion expected. The stock price rose to 92.64 CAD (+1.65%), marking a 36% year-to-date gain, with nine analysts revising earnings estimates upward. Harney noted strategic priorities, including accelerating AI adoption to streamline operations—targeting a “minutes and seconds” efficiency model—while expanding market share in Europe, particularly Ireland, and navigating long-term disability trends, which have weakened due to post-COVID normalization and lower return-to-work rates. He also hinted at potential Super Bowl advertising for Empower, particularly if the Denver Broncos advanced to the championship, citing the event’s unique timing on Valentine’s Day.