Great-west Lifeco Inc. · TSX:GWO
Great-west Lifeco — Q4 2025 Earnings Presentation
39 slides from Great-west Lifeco's earnings presentation, Feb 12, 2026
Slide 1: Quarterly Results Presentation
Great-West Lifeco Quarterly Results Presentation February 12, 2026
Slide 2: Cautionary Notes
Q4 2025 Cautionary Notes CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION From time to time, Lifeco makes written and/or oral forward-looking statements within the meaning of applicable securities laws, including in this presentation. In addition, in the course of the Company’s Q4 2025 earnings
Slide 3: Conference call participants
Q4 2025 Conference call participants PRESENTERS David Harney Jon Nielsen President & CEO EVP & Chief Financial Officer 3 Q&A PARTICIPANTS Ed Murphy Fabrice Morin Lindsey Rix-Broom President & CEO, Empower President & CEO, Canada CEO, Europe Jeff Poulin Linda Kerrigan John Melvin GREAT-WEST LIFECO CE
Slide 4: Year in Review
2025 Year in Review 4 David Harney President & CEO Great-West Lifeco GREAT-WEST LIFECO
Slide 5: 2025 Highlights
Q4 2025 2025 Highlights Delivered record base earnings and exceeded base EPS medium-term objective Double-digit Retirement and Wealth base earnings growth, led by Empower, drives continued shift to capital-light business 5 Successfully completed leadership transition Strong cash generation supported
Slide 6: FY2025 Results Overview
Q4 2025 FY2025 Results Overview Base earnings1 Base ROE1 Base EPS1 Total client assets1 $4,649M 18.2% $5.03 $3.3T Up 11% YoY Up 0.7pp YoY Up 12% YoY Up 9% YoY Net earnings Net ROE2 Net EPS AUMA1 6 $3,960M 15.5% $4.29 $1.1T LICAT Ratio3 Leverage ratio4 Lifeco cash Share repurchases of 128% 28% $2.1B
Slide 7: Strategic Overview: Delivering on our medium-term objectives
Q4 2025 STRATEGIC OVERVIEW Delivering on our medium-term objectives MEDIUM-TERM 1-year 3-year 5-year OBJECTIVE2 Base EPS1 8-10% Growth p.a. 12% 12% CAGR 12% CAGR 7 Base ROE1,3 19%+ 18% 17% 17%4 (prior target 16-17%) Base Dividend Payout Ratio1 45-55% 49% 50% 51% GREAT-WEST LIFECO Base Capital Genera
Slide 8: Financial Performance
Q4 2025 FINANCIAL PERFORMANCE Strong momentum towards our growth ambitions BASE EARNINGS1 GROWTH 2025 YOY MEDIUM-TERM (CONSTANT CURRENCY)2 GROWTH AMBITIONS3 U.S. +11% Double digits 8 Canada +3% Mid-single digits Europe +2% Mid-single digits + GREAT-WEST LIFECO CRS +9% Mid-single digits + 1: This met
Slide 9: Strong progress in executing our strategy in 2025
Q4 2025 Strong progress in executing our strategy in 2025 • Strengthened Wealth platform across markets Enabling Growth • Empower Wealth surpassed US$100B of client assets1 • Canada acquires De Thomas Wealth and makes further progress on dealer integrations • Record retail flows in Europe Customer F
Slide 10: 4Q25 Financial Highlights
4Q25 Financial Highlights 10 Jon Nielsen EVP & Chief Financial Officer, Great-West Lifeco GREAT-WEST LIFECO
Slide 11: Buybacks help drive 13% base EPS growth
Q4 2025 Buybacks help drive 13% base EPS growth Base earnings1 (bars) and net earnings (diamonds) Base ROE1 (bars) and net ROE (diamonds) C$M +12% +0.7pp +10% 1,245 18.2% 17.5% 1,115 in CC2 16.7% 1,116 15.5% 1,048 11 GREAT-WEST LIFECO 4Q24 4Q25 4Q24 4Q25 • Base earnings growth driven by strong marke
Slide 12: Credit experience in line with expectation
Q4 2025 Credit experience in line with expectation Annual credit experience: 10-year history Credit experience breakdown Post-tax, bps of average non-participating fixed income assets1 C$M, pre-tax 4 bps 2 bps 0 bps 4Q24 3Q25 4Q25 2025 0 bps 0 bps 12 (1 bps) (1 bps) (1 bps) in credit experience line
Slide 13: Empower: 20% base ROE on continued double-digit earnings growth
Q4 2025 Empower: 20% base ROE on continued double-digit earnings growth Base earnings1 (bars) and net earnings (diamonds) US$M +17% Empower generating base ROE1 of 20.1%, up 200 bps from Q4 2024 317 300 Retirement 272 • Average client asset growth of 12% YoY 13 • 2H25 net plan flows of US$29B exceed
Slide 14: Canada: Business momentum remains robust
Q4 2025 Canada: Business momentum remains robust Base earnings1 (bars) and net earnings (diamonds) C$M +10% 425 Group Benefits 377 400 • Favourable experience in health, life and LTD insurance 14 362 Retirement & Wealth • Higher fee income from favourable markets • $2.3B of Wealth net inflows, drive
Slide 15: Europe: Annual base earnings surpass $1B for first time
Q4 2025 Europe: Annual base earnings surpass $1B for first time Base earnings1 (bars) and net earnings (diamonds) C$M 339 (2)% In Q4, earnings on surplus down $10M YoY from lower surplus 260 (7)% 256 assets, and trading activity down $11M YoY in CC2 15 Wealth & Retirement • Strong global equity mark
Slide 16: CRS: New business volumes continue to drive growth
Q4 2025 CRS: New business volumes continue to drive growth Base earnings1 (bars) and net earnings (diamonds) C$M +11% +9% 258 in CC2 232 Capital Solutions • Continued strength in new business volumes across U.S. and 203 203 international markets 16 • Run-rate insurance result1,3 for 2025 was up 29%
Slide 17: Capital generation in excess of 80% of base earnings
Q4 2025 Capital generation in excess of 80% of base earnings supports free cash flow Free cash flow1 by quarter C$M 1,823 Withheld in H1 for debt 690 repayment in Q3 17 1,056 998 966 4 quarter average: $1,038 690 1,133 366 GREAT-WEST LIFECO 1Q25 2Q25 3Q25 4Q25 1: See the endnotes in the Appendix.
Slide 18: Strong cash generation supported significant share buybacks in 2025
Q4 2025 Strong cash generation supported significant share buybacks in 2025 Share repurchases1 C$M $1.625B in 2025 929 18 • Renewed NCIB as of Jan 6, 2026 to repurchase up to 20M shares • Power participated on a pro rata basis in the recent purchases 321 264 250 • Further repurchases will be As of b
Slide 19: Strong capital position provides continued financial flexibility
Q4 2025 Strong capital position provides continued financial flexibility LICAT Ratio1 Financial leverage2 Lifeco cash 131% C$B 130% 29% 128% 27% 28% 2.5 19 2.2 2.1 GREAT-WEST LIFECO 4Q24 3Q25 4Q25 4Q24 3Q25 4Q25 4Q24 3Q25 4Q25 1-2: See endnotes in Appendix
Slide 20: Closing Remarks
Closing Remarks 20 David Harney President & CEO Great-West Lifeco GREAT-WEST LIFECO
Slide 21: Looking ahead
Q4 2025 Looking ahead Well positioned to deliver base earnings in line with medium-term growth objective Expect Empower to deliver double-digit base earnings growth in 20261 21 Remain on track to generate 70%+ of base earnings from capital-light businesses in the medium-term and drive base ROE of 19
Slide 22: Q&A
22 GREAT-WEST LIFECO Q4 2025 Q&A
Slide 23: Appendix
23 GREAT-WEST LIFECO Q4 2025 Appendix
Slide 24: Markets have shown sustained momentum since April rebound
Q4 2025 Markets have shown sustained momentum since April rebound 4Q25 Total Returns1 In-quarter average 170% change 160% 4Q25 vs. 4Q25 vs. 4Q24 3Q25 150% Market Indices S&P 500 16% 6% 140% 24 S&P / TSX Composite 26% 10% 130% MSCI Europe 15% 5% BBG US Agg. Bond 6% 2% 120% Currency 110% USD/CAD (0.5%
Slide 25: Empower: 4Q25 Key Metrics
Q4 2025 Empower: 4Q25 Key Metrics Base earnings1 (bars) and net earnings (diamonds) US$M +17% US$B 4Q24 4Q25 YoY 317 317 Retirement 300 Client assets (avg.)2 1,688 1,890 +12% 272 272 Client assets (end)1 1,668 1,892 +13% 237 Total net flows2 (8.3) (16.9) (8.6) 25 227 224 Participants (M, ending) 18.
Slide 26: Empower: Diversified earnings streams
Q4 2025 Empower: Diversified earnings streams Empower 4Q25 net fee and spread income1 Empower 4Q25 ending client asset composition (Retirement) (Retirement) 28% 29% 26 50% 53% 18% 22% GREAT-WEST LIFECO Asset-based fee income Spread income Other fee income U.S. equities Foreign & Capital preservation
Slide 27: Canada: 4Q25 Key Metrics
Q4 2025 Canada: 4Q25 Key Metrics Base earnings1 (bars) and net earnings (diamonds) C$M C$M 4Q24 4Q25 YoY +10% Retirement – Client assets (avg)2 78,788 85,317 +8% 483 425 Retirement – Net flows2 77 (213) nmf 377 400 Wealth – Client assets (avg)2 118,235 130,387 +10% 371 362 46 50 Retirement 43 Wealth
Slide 28: Europe: 4Q25 Key Metrics
Q4 2025 Europe: 4Q25 Key Metrics Base earnings1 (bars) and net earnings (diamonds) C$M C$M 4Q24 4Q25 YoY 339 Retirement – Client assets (avg)2 33,230 37,503 +13% -2% Retirement – Net flows2 131 217 +66% 260 266 10 256 Retirement 8 10 Wealth3 – Client assets (avg)2 224,167 254,148 +13% Wealth 50 56 6
Slide 29: CRS: 4Q25 Key Metrics
Q4 2025 CRS: 4Q25 Key Metrics Base earnings1 (bars) and net earnings (diamonds) C$M +11% 280 265 258 C$M 4Q24 4Q25 YoY 232 Run-rate insurance results by product2 203 203 29 Capital Solutions 112 164 +46% Risk Solutions (excl. P&C) 93 94 +1% 246 238 Reinsurance 214 P&C and other 22 21 (5)% Total 227
Slide 30: Efficiency Ratio improved >1% in 2025
Q4 2025 Efficiency Ratio improved >1% in 2025 Efficiency Ratio1 (%) -1.1 pp 56.7% 30 • Initiatives presented at Investor Day 2025 aimed at reducing Efficiency Ratio to below 50% over the medium term 55.6% • Associated business transformation charges expected to be in the range of $250M-$300M (post-t
Slide 31: Invested assets
Q4 2025 Invested assets Conservative investment portfolio, predominantly comprised of fixed income instruments – 98% of which are investment-grade Invested Asset Distribution Bond Portfolio Quality Bonds represent 70% of invested assets Investment Properties Cash and CD’s 3% BB & Lower AAA Stocks 9%
Slide 32: Diversified non-participating investment portfolio with resilient commercial mortgage portfolio
Q4 2025 Diversified non-participating investment portfolio with resilient commercial mortgage portfolio Lifeco Invested Assets Lifeco Mortgage Portfolio (excluding Participating Account) (excluding Participating Account) Commercial - Investment Properties Retail Stocks Commercial - 1% 11% Office 5%
Slide 33: Lifeco consolidated bond portfolio
Q4 2025 Lifeco consolidated bond portfolio % OF INVESTED ASSETS Gov't, Gov't Related and Corporate and Non-Agency Country of Domicile Agency Securitized Bonds Securitized Bonds Total Bonds U.S. 4.1% 27.3% 31.4% Canada 7.1% 9.3% 16.4% U.K. 5.3% 6.3% 11.6% Germany 0.7% 1.1% 1.8% 33 Ireland 0.1% 0.5% 0
Slide 34: Corporate and Non-Agency Securitized Bonds
Q4 2025 Corporate and Non-Agency Securitized Bonds Sector Diversification Corporates % of Invested Assets Non-Agency Securitized % of Invested Assets Electric Utilities 7.5% CMBS 1.4% Consumer Products 6.4% RMBS 0.0% Industrial Products 5.2% Other ABS 5.0% Financial Services 4.1% Total Non-Agency Se
Slide 35: Lifeco Mortgage Exposures
Q4 2025 Lifeco Mortgage Exposures (C$m) Carrying Value Mortgage Holdings by Segment % of Canada Non- Property Type Total Canada Par U.S. Europe CRS Insured LTV1 DSCR2 WALT3 Lifeco IA Non-Par insured Single Family 765 0.3% 593 172 - - - 156 609 Equity Release 5,664 2.3% 624 1,434 - 2,888 718 - 5,664
Slide 36: Lifeco Non-Fixed Income Portfolio
Q4 2025 Lifeco Non-Fixed Income Portfolio (C$m) Carrying Value Equity Exposure by Segment Canada Canada NFI Portfolio by Type Total % of Lifeco IA U.S. Europe CRS Par Non-Par Investment Properties Industrial 2,745 1.1% 2,102 227 - 415 - Office 1,575 0.6% 921 186 16 452 - Multi Family 2,172 0.9% 1,88
Slide 37: Non-GAAP Financial Measures and 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 financial measures and ratios are used t
Slide 38: Endnotes
All references to the Company’s Annual MD&A in the below footnotes are to the Company’s management’s discussion and analysis for the three and twelve months ended December 31, 2025, which is available on ENDNOTES SEDAR+ at www.sedarplus.com. Slide 6 – FY2025 Results Overview 2. Additional informatio
Slide 39: Endnotes
All references to the Company’s Annual MD&A in the below footnotes are to the Company’s management’s discussion and analysis for the three and twelve months ended December 31, 2025, which is available on ENDNOTES SEDAR+ at www.sedarplus.com. Slide 19 - Strong capital position provides continued fina