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Great-West Lifeco posts 19.3% base ROE, targets 19%+ again
The company said Q2 base earnings rose 11% to CA$1.270 billion, while it completed CA$336 million in share repurchases and signed a US retirement acquisition.
Great-West Lifeco said it hit a key profitability goal again, reporting a base return on equity of 19.3% for Q2 2026, meeting its medium-term objective of 19% or above for a second straight quarter.
The Winnipeg-headquartered firm posted base earnings of CA$1.270 billion for the quarter, up 11% from CA$1.149 billion a year earlier. Base earnings per share rose 15% to CA$1.42, beating the average analyst consensus of CA$1.37, while net earnings attributable to common shareholders climbed to CA$1.039 billion.
Great-West attributed net EPS of CA$1.16 being below the CA$1.28 average analyst estimate to unfavorable market experience, driven primarily by interest rate movements. Net ROE came in at 17.2%, the company said, with its LICAT ratio holding at 128% and holding company cash at CA$2.5 billion after CA$336 million of share repurchases during the quarter.
The US segment was a standout, with base earnings up 34% year on year in constant currency to US$332 million, supported by higher fee income, positive plan and wealth net inflows, lower credit-related impacts, and operating leverage. Great-West also said it is deploying capital through the acquisition of a retirement business in the US, alongside its share repurchases.