Great-west Lifeco Inc. · TSX:GWO
Great-west Lifeco — Investor Presentation (2025)
33 slides from Great-west Lifeco's investor presentation, 2025
Slide 1: Q1 2025 Investor Overview
Great-West Lifeco Q1 2025 INVESTOR OVERVIEW GREAT-WEST LIFECO
Slide 2: Cautionary Note Regarding Forward-Looking Information
In this presentation, Great-West Lifeco Inc. (“Lifeco”) and its subsidiaries are collectively referred to as “we”, “us”, and the “Company”. CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION From time to time, Lifeco makes written and/or oral forward-looking statements within the meaning of appli
Slide 3: Table of Contents
Strategic Overview 3 U.S. 13 Canada 16 TABLE OF Europe 18 CONTENTS 2 Capital and Risk Solutions (CRS) 21 Balance Sheet Strength 23 Appendix 26 GREAT-WEST LIFECO
Slide 4: A leading & diversified financial services company
STRATEGIC OVERVIEW A leading & diversified financial services Corporate Structure 6 company 175+ 40M+ 6TH 3 Years of History Customer Largest Life Relationships2 Insurer in North America3 68.3% 62.5% $3T+ AA 15%+ Client Assets S&P rating; 5-year Total with $1T+ AUMA1,2 A+ issuer credit Shareholder r
Slide 5: Leading businesses in attractive and stable markets
STRATEGIC OVERVIEW Leading businesses in 2024 Earnings attractive and stable $4.2B Base1 | $4.0B Net2 markets % 2024 Base Earnings3,4 (%) 2024 Net Earnings3,4 Our Segments CRS U.S. 18% U.S. Canada Europe CRS (15%) 31% (28%) 20% (21%) Europe 4 31% (36%) Canada #2 14M+ #1 Leading Capital Retirement pr
Slide 6: Delivering results with a proven strategic playbook
STRATEGIC OVERVIEW Delivering results with a proven strategic playbook Strategic Playbook 5 Build leading companies Focus on attractive Strengthen leadership Maintain strong risk in stable markets market sectors backed through organic and and capital disciplines by sustained secular inorganic invest
Slide 7: Positive long-term economic trends supporting growth
OVERVIEW STRATEGICOVERVIEW Positive long-term economic trends STRATEGIC supporting growth Aging population expanding the need for retirement solutions 83M 71M 92M Increasing population aged 65+1 ▷ 2019 2024 2029E Growing need for advice in underserved 6 mid-to-affluent segments Large retirement savi
Slide 8: Growth opportunities
OVERVIEW STRATEGICOVERVIEW Growth opportunities STRATEGIC Attractive reinvestment opportunities across our business Empower Canada Europe CRS High growth & Increased focus Build on strong Diversified & expanding returns to drive growth value proposition opportunistic growth 7 • Grow Wealth roll-over
Slide 9: Growth driven by a focus on high-return, capital-efficient businesses
& OBJECTIVES FINANCIAL PERFORMANCE Growth driven by a focus on high-return, capital-efficient businesses FINANCIAL PERFORMANCE Base earnings by segment1,2 (C$B) Medium-term growth ambitions 35-40% $4.2B Double digits 8 $3.3B 25% 34% 25-30% Mid single digits 8-10% Base EPS1 growth 34% Medium-Term 40%
Slide 10: Capital-efficient growth driving Base ROE expansion
& OBJECTIVES FINANCIAL PERFORMANCE Capital-efficient growth driving Base ROE expansion FINANCIAL PERFORMANCE Base ROE1 progression(%) 19%+ 19%+ 35bps 30bps 25bps 120bps 110bps 20bps 17.5% 17.5% 9 2024 Mix shift to Operating Updated 2024 US Canada Europe CRS Updated capital leverage and Base ROE Base
Slide 11: Highly cash-generative businesses
& OBJECTIVES FINANCIAL PERFORMANCE Highly cash-generative businesses FINANCIAL PERFORMANCE Targeted base capital generation1,2 (Medium-term, C$B) ~20% 80%+ Base capital generation1 10 ~80% ~50% Key drivers • Attractive Return on ~30% Capital2 • Mix shift GREAT-WEST LIFECO Targeted Organic Base capit
Slide 12: Raised our medium-term objectives
& OBJECTIVES OVERVIEW Raised our medium-term objectives STRATEGIC FINANCIAL PERFORMANCE Medium-term Prior Delivered Objectives2 Objectives2 4 Base Earnings per 8-10% 12% Share (EPS)1, $ Growth p.a. CAGR 11 Base Return on Equity (ROE)1,3 19%+ 17% 5 Base Dividend 6 Payout Ratio1 45-55% 52% GREAT-WEST
Slide 13: Shareholder returns have outpaced the market
& OBJECTIVES OVERVIEW Shareholder returns have outpaced the market STRATEGIC FINANCIAL PERFORMANCE 5-year annualized total shareholder return (TSR)1 As of March 31, 2025 25.0% 21.4% 12 17.7% 18.6% 16.8% GWO S&P TSX TSX Fin. S&P 500 S&P Fin. GREAT-WEST LIFECO Outpaced the TSX by >800 basis points per
Slide 14: Building a winning position in the U.S. Retirement and Wealth market
U.S. EMPOWER Building a winning position in the U.S. Retirement and Wealth market Who we are today Where we are going RANKED Workplace Wealth 13 #2 Retirement plan provider in the U.S. by total participants2 Meeting customer needs Efficiencies Workplace-affiliated initiatives + + US$1.8T ~50% Advice
Slide 15: Differentiated value proposition
U.S. EMPOWER Differentiated value proposition How we gain plan Enables Empower to grow above market sponsor preference Market share growth in Workplace Empower Workplace asset share (% of industry1) Empower is the #2 player and growing 73 World-class 95% Client 97% Client 14 NPS2,3 satisfaction3 ret
Slide 16: Wealth platform leverages Workplace scale
U.S. EMPOWER Wealth platform leverages Workplace scale Sizeable rollover opportunity Drivers of continued rollover Continue to grow capture rate at contributes to growth improvement the same pace as historical Expected five-year opportunity1 Rollover capture improvement 15 ~US$1T • Improved engageme
Slide 17: Leading player in Canadian market positioned for growth
CANADA Leading player in Canadian market positioned for growth Who we are today Where we are going Broad reach across all lines of business Grow Wealth Expand advice Deepen client Drive relationships efficiencies 16 + + + Expand voluntary 14M+ Serving Grow client assets, Build Advice Execute on iden
Slide 18: Canadians choosing to stick with us for their retirement, life, and health needs
CANADA Canadians choosing to stick with us for their retirement, life, and health needs Line of Business How we will grow Group Retain leadership position, expand offering 18% 2.5x Benefits and solutions to plan members Voluntary product1 margin vs. rest of 17 Leverage scale to support Canadians' ev
Slide 19: Leading portfolio in growing markets, positioned for sustained growth
EUROPE Leading portfolio in growing markets, positioned for sustained growth Who we are today Where we are going Ireland United Kingdom Europe-wide Scale core business Capturing growth LEADER & extend into Drive efficiencies 18 Built franchise into #1 Across businesses 2 Wealth + of Bulk Annuities +
Slide 20: Ireland: Further expanding business with employers
EUROPE Ireland: Further expanding business with employers Group Benefits Wealth & Retirement How we Develop more multi-product relationships Increasing Wealth advice penetration through will grow with employers and employees joint venture, employer and digital channels 19 Right to Ability to build o
Slide 21: UK: Significant potential in $1T bulk annuities market
EUROPE UK: Significant potential in $1T bulk annuities market 1 Our capabilities and targeted approach have enabled us to build a significant presence in the market Our strategy has shown proven success 1 2 3 UK bulk annuity market share (%)2 20 How we Expanding SME Capitalize on Leverage strong wil
Slide 22: Global reinsurance leader positioned for high-margin growth
CRS Global reinsurance leader positioned for high-margin growth Who we are today Who we are today #1 #1 Unique expertise + Disciplined execution + Desirable counterparty 21 Reinsurer of U.S. Group Life Deliver solutions to Employ discipline in Lifeco’s capital Health Premiums2 Reinsurer in U.S.2 acc
Slide 23: Global operations with a diversified portfolio of reinsurance solutions
CRS Global operations with a diversified portfolio of reinsurance solutions Run-rate insurance result1 (% of 2024 total) ~15% Health Capital solutions Capital • Optimize client risk while more closely ~10% Life & Annuities 22 solutions aligning regulatory capital to economic capital ~50% ~10% P&C •
Slide 24: Maintaining rigorous and effective risk management
STRENGTH PERFORMANCE Maintaining rigorous and BALANCE SHEET effective risk management FINANCIAL Geography and lines of business deliver Diversified business mix diversification across market cycles S&P Credit Rating3 Prudent investment approach; 93% fixed income1 23 Low sensitivity to market risk po
Slide 25: Maintaining a strong balance sheet
BALANCE SHEET STRENGTH Maintaining a strong balance sheet Diversified, high-quality asset mix Robust capital and liquidity Strong ratings, stable outlook Financial Issuer Strength Rating Credit Ratings Invested Asset Distribution1 Liquidity requirements are largely self- funded Canada Life Great-Wes
Slide 26: Capital allocation priorities to maximize shareholder returns
STRENGTH PERFORMANCE Capital allocation priorities to maximize BALANCE SHEET shareholder returns FINANCIAL Considerations Balance sheet • Retain current credit rating 1 strength • Strong capital position Organic • Attractive risk-adjusted 25 2 reinvestment returns on target capital • 45-55% base ear
Slide 27: Appendix
2 Append 0093417 LSIM-LV3¥9.
Slide 28: 1Q 2025 Financial Results
APPENDIX 1Q 2025 Financial Results Earnings ROE EPS BASE $1,030M 1 17.2% 1 $1.11 1 Up 5% YoY Up 20 bps YoY Up 6% YoY $860M 15.6% $0.92 2 27 NET LICAT Ratio3 Leverage Ratio4 Total Client Assets1 130% 28% $3.0T GREAT-WEST LIFECO Unchanged QoQ Down 1 pp QoQ and 2pp YoY Up 13% YoY 1. Represents a non-GA
Slide 29: Contact us
APPENDIX Contact us Investor Inquiries Investor Relations Media Relations Great-West Lifeco Shubha Khan Tim Oracheski 330 University Avenue SVP, Head of Investor Relations VP, Communications Toronto, ON M5G 1R7 T: (416) 552-5951 T: (204) 946-8961 investorrelations@canadalife.com shubha.khan@canadali
Slide 30: Endnotes
ENDNOTES ENDNOTES Slide 3: 2. As of December 31, 2024. 3. By market capitalization; Source: S&P CapIQ, December 31, 2024 4. S&P Global Ratings - Financial Strength Rating for The Canada Life Assurance Company and Issuer Credit Rating for Lifeco as of March 31, 2025. 5. Per Bloomberg, Total Sharehold
Slide 31: Endnotes
ENDNOTES ENDNOTES Slide 12: 1. Per Bloomberg, Total Shareholder Return includes price appreciation or depreciation and dividends. Slide 13: 2. By total participants, Source: PLANSPONSOR, DC Recordkeeping Survey, 2024. 3. As of December 31, 2024. 4. 2019 to 2024 CAGR. 2019 includes US$12B from Person
Slide 32: Endnotes
ENDNOTES ENDNOTES Slide 19: 1. Central Bank of Ireland, Pension Fund Statistics Q4 2024 (2025), 6% CAGR projection (2024-2029) based on macro trends leading to stable growth in Retirement. 2. Central Bank of Ireland, Household Wealth Q3 2024 (2025), 11% CAGR projection (2024-2029) based on 10% prior
Slide 33: Non-GAAP Financial Measures and Ratios
NON-GAAP FINANCIAL MEASURES & RATIOS NON-GAAP FINANCIAL MEASURES AND RATIOS This document 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”. Non-GAAP fin