Great-West Lifeco Inc (GWLIF) (Q3 2026) Earnings Call Highlights: Record Base Earnings Above $1. ...

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Release Date: November 05, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript .

Positive Points

• Great-West Lifeco Inc ( GWLIF ) delivered record base earnings exceeding $1.3 billion with 11% base EPS growth, ahead of medium-term objectives.

• Base ROE reached a record 19.4%, marking the third consecutive quarter above the 19% medium-term target.

• Retirement and Wealth businesses now contribute over 50% of base earnings, reflecting a shift toward a more capital-light business mix.

• Empower Retirement crossed 20 million customers and achieved record base ROE of 22.9%, with double-digit earnings growth expected in 2027.

• Strong capital generation and financial flexibility, with $3.6 billion in holdco cash and plans to repurchase at least as many shares in 2027 as in 2026, supporting a total payout ratio over 75%.

Negative Points

• Canada base earnings decreased 6% year over year due to moderated disability experience, with full-year 2027 experience expected to be only broadly neutral.

• Insurance experience continued to moderate from record levels in 2025, partially offsetting overall earnings growth.

• Credit losses in Q3 were higher than the expected quarterly rate, though full-year guidance remains within the $80 million to $120 million pre-tax range.

• Capital and Risk Solutions growth is expected to normalize to mid-single-digit-plus, down from the exceptional 30% year-to-date growth, due to increased competition and less favorable experience.

• Empower's margin outlook reflects increased investments in marketing, technology, and distribution, which may pressure margins, with Retirement expected in the mid-30s and Wealth in the high 30s.

Q & A Highlights

Q: With buybacks guided to at least match 2026 levels in 2027, does that signal limited M&A appetite, or is M&A still a priority? A: CFO Jon Nielsen said the buyback guidance does not anticipate any major M&A, though smaller deals would be incremental to that outlook. CEO David Harney added that Great-West remains open to opportunities with the right price, returns, strategic fit, or added capabilities, and that the company has a strong track record of executing them.

Q: What underpins the expectation for positive Empower net plan wins in 2027? A: Edmund Murphy, President and CEO of Empower, said net plan sales should be positive in Q4 2026 and exceed $20 billion in Q1 2027 on contractual commitments. He expects roughly 950,000 organic participant additions in 2026, about 5% growth off a 20 million base and roughly twice the market rate, and sees multiproduct sales (defined contribution, defined benefit, stock plan services, consumer-directed healthcare, and executive services) increasingly driving wins.

Q: How does the US election outcome affect Empower's 401(k) opportunity and timing? A: Murphy noted retirement legislation has had strong bipartisan support (Secure 1.0 and 2.0) and that incoming House Ways and Means Chairman Neal is well aligned on expanding plan adoption, particularly among small businesses. He flagged potential regulatory headwinds, including Senator Warren's opposition to private assets in defined contribution plans, but said Empower is not adjusting its 2027 plan and still expects double-digit earnings growth.

Q: Why guide Empower Retirement margins to the mid-30s and Wealth to the high 30s when current margins are already at or above those levels? A: Murphy attributed the moderation to investment: expanding distribution for multiproduct capabilities, a roughly 20% increase in brand spend in 2027, and adding advisers on the Wealth side (over 1,000 today). He said unit costs are on track to fall 10% to 15%, with potential to exceed that through an aggressive AI rollout, supporting operating leverage.

Q: What is the outlook for Canadian group benefits disability experience, and how quickly can repricing address it? A: Fabrice Morin, President and COO, Canada, said deterioration reflects higher claims incidence and lower recovery, with Q3 showing more incidence pressure and less recovery pressure than Q2, consistent with industry trends. Great-West is strengthening early intervention, case management, and return-to-work support; pricing actions typically take 12 to 18 months to take effect, and the company expects broadly neutral experience in 2027.

Q: Is CRS's return to mid-single-digit-plus growth just a reiteration of Investor Day targets, or is it based on the pipeline? A: Morin said the mid-single-digit-plus target should be viewed on a medium-term basis rather than year by year. The pipeline remains strong with demand for capital solutions, though it now features more, smaller deals than last year, and 2026's exceptional insurance experience is harder to count on repeating.

Q: Is CRS's strong performance an industry trend or market share capture, and is competition increasing in Capital Solutions? A: Harney cited broad industry demand for better capital management, with Great-West leveraging long-standing insurer relationships. Jeff Poulin, CEO of Reinsurance, said most reinsurers are having good years given benign catastrophe experience, and that Great-West pioneered the Capital Solutions wave and is well positioned. He acknowledged more competition, with record capital inflows into reinsurance, sidecars, and new Bermuda companies chasing transactions.

Q: If no M&A materializes, could the buyback exceed the roughly $1.6 billion level? A: Nielsen said buybacks are now a regular capital allocation tool, with about $1.6 billion done in each of 2025 and 2026 alongside the Milliman acquisition. Under normal conditions and absent significant M&A, capacity would exceed $1.6 billion, given 8% to 10% earnings growth, 80% capital generation, and a roughly 50% dividend payout, generating about 30% excess capital annually, with over $2.5 billion of free cash at the holdco.

Q: What is the margin outlook for Canada Wealth and Retirement into 2027 and beyond? A: Poulin said Canada Wealth margins should run 18% to 20%, reflecting investment including the October 1 merger of wealth dealers and new technology tools. Canada Retirement margins at recent levels are relatively sustainable under normal market conditions, supported by market and operating leverage and improving flows.

Q: What drove the 11% base EPS growth and record results in Q3 2026? A: Harney said base earnings surpassed $1.3 billion, a record, on double-digit growth at Empower and robust Capital Solutions demand in CRS, partly offset by moderating insurance experience versus record 2025 levels. Base ROE reached a record 19.4%, Retirement and Wealth now exceed 50% of combined segment base earnings, and Empower surpassed 20 million customers with the close of the Milliman transaction.

Q: What is the capital position and deployment outlook? A: Nielsen said the LICAT ratio was 127%, down slightly on interest rate movements, and is expected to stay at or above 125% under normal conditions despite CRS capital seasonality peaking in Q4. The leverage ratio rose 2 points to 29% and holdco cash reached $3.6 billion, including prefunding of a EUR500 million Eurobond; excluding that financing, leverage was largely unchanged and holdco cash was about $2.8 billion. Year to date, roughly $1.3 billion of shares were repurchased, and total 2026 capital deployment including Milliman approaches $2 billion.

For the complete transcript of the earnings call, please refer to the full earnings call transcript .