Great-west Lifeco Inc. · TSX:GWO
Great-west Lifeco — Investor Day (2025)
103 slides from Great-west Lifeco's investor day presentation, 2025
Slide 1: Investor Day 2025: Driving Growth, Delivering Lasting Value
Welcome Investor Day 2025 Driving Growth, Delivering Lasting Value GREAT-WEST LIFECO Wifi: LifecoInvestorDay2025 Password: DrivingGrowth!
Slide 2: Investor Day 2025
1 Investor Day 2025 GREAT-WEST LIFECO Driving Growth, Delivering Lasting Value
Slide 3: 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”. INVESTOR DAY 2023 CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION From time to time, Lifeco makes written and/or oral forward-looking statements within th
Slide 4: Agenda
INVESTOR DAY 2025 Agenda 1 Shubha Khan SVP, Head of Investor Relations 8:30 5 Fabrice Morin President & COO, Canada 10:35 2 Paul Mahon President & CEO 8:35 Q&A 10:55 David Harney 3 3 Jon Nielsen EVP & CFO 9:00 6 President & COO, Europe and Capital & Risk Solutions Lindsey Rix-Broom CEO, Canada Life
Slide 5: Strategic Overview
Strategic Overview 4 GREAT-WEST LIFECO
Slide 6: Key Messages
STRATEGIC OVERVIEW Key Messages Driving Growth, Delivering Lasting Value 1 Build and extend market-leading franchises, delivering multi-channel advice, solutions and expertise in attractive Wealth, Retirement and Insurance sectors 5 2 Disciplined, risk-aware execution delivering lasting value creati
Slide 7: Leading & diversified financial services company
STRATEGIC OVERVIEW Leading & diversified 2024 Earnings financial services company $4.2B Base1 | $4.0B Net3 % Q4 2024 Base Earnings6,7 CRS (%) Q4 2024 Net Earnings6,7 19% (16%) 31% U.S. 175+ 40M+ $3T+ (27%) 21% Europe (27%) Years of Customer Client Assets 29% 6 History Relationships2 with $1T+ AUMA1,
Slide 8: Delivering results with a proven strategic playbook
STRATEGIC OVERVIEW Delivering results with a proven strategic playbook Guided by our purpose: to build stronger, more inclusive, and financially secure futures Strategic Playbook 7 Build leading client Focus on attractive market Strengthen market Maintain strong risk and franchises in stable sectors
Slide 9: Consistently strong financial results
STRATEGIC OVERVIEW Consistently strong financial results Previously stated Medium-term Delivered Objectives2 Medium-term Objectives introduced mid-2021 5 Base Earnings per $2.88 $3.51 $3.56 $3.94 $4.50 8-10% 12% Share (EPS)1, $ Growth p.a. CAGR 8 4 Base Return on 13% 15% 16% 17% 18% 16-17% 17% Equit
Slide 10: Leading businesses in attractive and stable markets
STRATEGIC OVERVIEW Leading businesses in attractive and stable markets U.S. Canada Europe Capital & Risk Solutions 9 #2 14M+ #1 Leading Retirement provider Customers Across our Ireland Capital Solutions provider in the U.S.1 (1 in 3 Canadians)2 business6 in U.S. and Europe9 19M+ #1 #2 #1 Customers2
Slide 11: Supported by long-term, positive economic trends
STRATEGIC OVERVIEW Supported by long-term, positive economic trends 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 10 mid-to-affluent segments Large retirement savings gap2 ($) ▷ 62T 68
Slide 12: Transforming our business mix
STRATEGIC OVERVIEW Transforming our business mix Generating higher organic growth plus stronger returns and capital generation Change in business mix over time Capital Allocation Base earnings by Line of Business Disciplined organic and inorganic capital (C$ and % total)1,3 allocation has shifted ea
Slide 13: Growth opportunities
STRATEGIC OVERVIEW Growth opportunities 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 12 • Grow Wealth roll-over • Grow Wealth th
Slide 14: Growth driven by strategic enablers & in-market leadership
STRATEGIC OVERVIEW Growth driven by strategic enablers & in-market leadership Leading enterprise-wide capabilities De-centralized model puts expert talent on the ground Empower Strategy & capital allocation Ed Murphy Carol Rich Linton 40+ yrs Waddell 35+ yrs experience 25+ yrs experience experience
Slide 15: Medium-Term Objectives
STRATEGIC OVERVIEW Medium-Term Objectives Raising our financial performance ambitions Base EPS Base Capital Base ROE1 Base earnings growth1 Generation1,2 Dividend Payout Ratio1 Revised 8-10% 80%+ 19%+ 45-55% 14 objectives Prior 8-10% N/A 16-17% 45-55% objectives GREAT-WEST LIFECO Potential to outper
Slide 16: Key Messages
STRATEGIC OVERVIEW Key Messages Driving Growth, Delivering Lasting Value 1 Build and extend market-leading franchises, delivering multi-channel advice, solutions and expertise in attractive Wealth, Retirement and Insurance sectors 2 Disciplined, risk-aware execution delivering lasting value creation
Slide 17: Financial Performance
Financial Performance 16 GREAT-WEST LIFECO
Slide 18: Key Messages
FINANCIAL PERFORMANCE Key Messages Strong track record of delivering on financial objectives and creating 1 shareholder value Enhancing disclosures to provide insights into the attractiveness of 17 2 our business Highly capital generative businesses with financial flexibility and 3 resilience Signif
Slide 19: Strong track record of delivering on financial objectives
FINANCIAL PERFORMANCE Recap: Strong track record of delivering on financial objectives Previously stated Medium-term Delivered Objectives2 Medium-term Objectives introduced mid-2021 5 Base Earnings per $2.88 $3.51 $3.56 $3.94 $4.50 8-10% 12% Share (EPS)1, $ Growth p.a. CAGR 18 4 Base Return on 13% 1
Slide 20: We have created significant value for shareholders
FINANCIAL PERFORMANCE We have created significant value for shareholders Total shareholder return1 Annualized total shareholder return1 March 28, 2020 to March 28, 2025 As of March 28, 2025 350 1 year 3 year 5 year 5 year (Pre-Covid)2 300 Lifeco 34.0% 21.0% 25.3% 16.4% 19 250 S&P TSX 15.0% 7.3% 17.3
Slide 21: Providing additional disclosure on underlying business economics
FINANCIAL PERFORMANCE Providing additional disclosure on underlying business economics Segment-level insight into Additional visibility into returns and capital generation performance and underlying drivers 20 Details on base capital Additional granularity into business generation1 and cash remittan
Slide 22: Growth driven by focus on high-return, capital-efficient businesses
FINANCIAL PERFORMANCE Growth driven by focus on high-return, capital-efficient businesses Base earnings by segment1,2 (C$B) Targeted medium- term growth 35-40% $4.2B Double digits 21 8-10% $3.3B 34% 25% 25-30% Mid single digits Base EPS1 growth 34% Medium-Term 40% Objective 15-20% Mid single digits
Slide 23: Our businesses generate significant capital
FINANCIAL PERFORMANCE Our businesses generate significant capital Base capital generation1,3 (2020-2024, C$B) ~4 ~75% Estimated base capital generation1 22 ~17 ~13 ~9 ~4 GREAT-WEST LIFECO Cumulative Organic Cash remittance Dividends, Inorganic Base earnings Reinvestment to Lifeco2 buybacks reinvestm
Slide 24: Well positioned to further increase capital generation
FINANCIAL PERFORMANCE Well positioned to further increase capital generation Targeted base capital generation1 (Medium-term, C$B) ~20% 80%+ Base capital generation2 23 ~80% ~50% Key drivers • Attractive Return on Capital1 • Mix shift ~30% • Expense discipline GREAT-WEST LIFECO Targeted Organic Base
Slide 25: Attractive and growing returns on capital efficient businesses
FINANCIAL PERFORMANCE Attractive and growing returns on capital efficient businesses Continued capital deployment into high return opportunities Ambition to increase +20% ROC in medium-term Indicative Return on Capital1 (2024, %) through: 24 • Strategic shift mix towards capital- efficient businesse
Slide 26: Strengthening our expense discipline and driving operating leverage
FINANCIAL PERFORMANCE Strengthening our expense discipline and driving operating leverage Prior efficiency initiatives Continued opportunity to drive have strengthened the business further expense efficiency Enterprise expense efficiency ratio1 25 • Focus on increased automation -3pp • Leveraging gl
Slide 27: Case Study: Optimizing our balance sheet
FINANCIAL PERFORMANCE Case Study Optimizing our balance UK Optimize Program sheet Driving C$3B in benefits; with C$1B achieved to date 26 • Improved ALM to ü Improves cash optimize risk and return remittances by ~C$2B1 of invested assets ü Reduces capital strain2 • Optimized use of reinsurance on ne
Slide 28: Capital-efficient growth driving Base ROE expansion
FINANCIAL PERFORMANCE Capital-efficient growth driving Base ROE expansion Base ROE1 progression(%) 35bps 30bps 19%+ 25bps 19%+ 120bps 110bps 20bps 17.5% 17.5% 27 2024 Mix shift to Operating Updated 2024 US Canada Europe CRS Updated capital leverage and Base ROE Base ROE GREAT-WEST LIFECO efficient c
Slide 29: Maintaining rigorous and effective risk management
FINANCIAL PERFORMANCE Maintaining rigorous and effective risk management Geography and lines of business deliver Diversified business mix diversification across market cycles S&P Credit Rating3 Prudent investment approach; 94% fixed income1 28 Low sensitivity to market risk portfolio, ~99% of bonds
Slide 30: Capital allocation priorities to maximize shareholder returns
FINANCIAL PERFORMANCE Capital allocation priorities to maximize shareholder returns Considerations Rationale Balance sheet • Retain current credit rating Maintain a strong foundation to satisfy our 1 strength • Strong capital position commitments and support future growth Organic • Attractive risk-a
Slide 31: Key Messages and Medium-Term Objectives
FINANCIAL PERFORMANCE Key Messages Medium-Term Objectives 8-10% 8-10%Base EPS growth 1 Base EPS growth 1 Strong track record of delivering on financial 1 objectives & creating shareholder value 80%+ Enhancing disclosures to provide insights into the Base capital generation1 30 2 attractiveness of ou
Slide 32: Q&A
INVESTOR DAY 2025 Q&A Moderator 31 Paul Jon Shubha Mahon Nielsen Khan GREAT-WEST LIFECO President & CEO EVP & CFO SVP, Head of Investor Relations
Slide 33: Break
INVESTOR DAY 2025 What’s to come? 4 Break Ed Murphy, President & CEO, Empower Carol Waddell, President, Empower Personal Wealth 5 Fabrice Morin President & Chief Operating Officer, Canada 32 6 David Harney, President & COO Europe and Capital & Risk Solutions Lindsey Rix-Broom, Chief Executive Office
Slide 34: Empower
33 GREAT-WEST LIFECO Empower
Slide 35: Key Messages
EMPOWER Key Messages Expanding leadership position in attractive market through 1 strong value proposition Robust cashflow, high returns and earnings growth – a strong 2 34 contributor to Lifeco Growing leadership position in Workplace and leveraging 3 scale to expand Wealth relationships GREAT-WEST
Slide 36: Winning position
EMPOWER Winning position Building a winning position in the U.S. Retirement and Wealth market How we got here Who we are today Where we are going Built leadership in U.S. RANKED GROW BASE EARNINGS1 Retirement plan provider in 35 Retirement and Wealth Management industry by: #2 the U.S. by total part
Slide 37: Empowering financial freedom
EMPOWER Empowering financial freedom With the customer at the centre Workplace Workplace-Affiliated Wealth Retail Wealth • Defined contribution • In-plan advice • Advice solutions • Consumer directed healthcare • Aggregated outside • Target date funds 36 • Equity plan administration retirement and t
Slide 38: Diversified revenue sources across Workplace
EMPOWER Diversified revenue sources across Workplace Workplace ~80% of Empower net fee and spread income1 Split by Split by product economics product type 37 In-plan advice and proprietary solutions ~50% Asset-based fees ~50% Managed accounts, separate accounts, target date funds, stable value funds
Slide 39: Wealth builds on strong relationships from Workplace
EMPOWER Wealth builds on strong relationships from Workplace Wealth ~20% of Empower net fee and spread income1 Split by Split by product economics client type 38 Workplace-affiliated ~60% Asset-based fees ~75% Clients from existing or previous Workplace relationship (e.g., rollover, roll-in) ~10% Tr
Slide 40: Solid growth track record
EMPOWER Solid growth track record Profitability growing faster than relationships and assets 20195 20246 CAGR ('19-'24) Individual relationships (M)3 9.4 18.5 15% Total client assets (US$B)1 673 1,755 21% 39 Wealth client assets (US$B)1,2 12 87 49% Net fee and spread income (US$B)4 1.2 3.4 24% Base
Slide 41: Strong fundamentals underpin workplace market
EMPOWER Strong fundamentals underpin workplace market Trends that will continue U.S. DC industry has grown at 6% CAGR to fuel growth U.S. DC retirement client assets ü Accelerating growth in number of plans (US$T) 10+ years for 401(k) plans to grow from 500k to 750k, +6% will only take 5 years to gr
Slide 42: Differentiated value proposition
EMPOWER Differentiated value proposition How we gain plan Enables Empower to grow above market sponsor preference Market share growth in Workplace Empower Workplace asset share (% of industry1) Empower is the #2 player and growing 73 95% 97% 41 World-class Client Client NPS2,3 satisfaction3 retentio
Slide 43: Delivering solutions to an underserved market
EMPOWER Delivering solutions to an underserved Growing need for advice as younger generations face financial instability2 market Avg. hours per day spent Avg. savings gap per worrying about money in 2023 individual (US$, 2023) In the U.S.1 94% report sacrificing their mental 42 health to get by fina
Slide 44: Strong financial performance in support of our objectives
EMPOWER Strong financial performance in support of our objectives Incremental returns are Strong capital generation Robust base earnings growth higher than base ROE Base earnings1,2 (US$B) Returns (2024, %) 29% CAGR 43 Empower Base ROE1,2 18% 90%+ Base capital ~25% generation1 US$1.0B US$0.6B GREAT-
Slide 45: Value creation formula to drive growth
EMPOWER Value creation formula to drive growth Workplace Wealth Medium-term ambition Workplace- Meeting customer needs Efficiencies affiliated Double initiatives 44 + + = digits base Advice solutions Continued cost IRA rollovers earnings1 growth & customer efficiency gains and additional engagement
Slide 46: Engagement with in-plan participants through advice solutions
EMPOWER WORKPLACE Engagement with in-plan participants through advice solutions Deepen engagement through advice solutions Advice-based assets as a % of total Client Assets1 Three levers to drive Workplace growth Acquired books of business with 1 Proven playbook to low penetration rates provide reac
Slide 47: Efficiency enables profitable Workplace growth
EMPOWER WORKPLACE Efficiency enables profitable Workplace growth Cost per participant (indexed to 2022)1 ~15pp Two phases of efficiency growth Index=100 ~10pp 1 1 Integrating synergies from 46 past acquisitions 2 2 Efficiency initiatives to capture benefits of scaled platform (technology and AI, glo
Slide 48: Positioned to succeed in the wealth market
EMPOWER WEALTH Positioned to succeed in the wealth market STRONG UNDERSERVED EASILY ACCESSIBLE RELATIONSHIPS MARKET SOLUTIONS 47 ~19M client relationships US$150B+ of participant Offer seamless digital across Empower distributions in 2024 rollover experience Expanding brand awareness 90%+ of rollove
Slide 49: Solutions fit for every need
EMPOWER WEALTH Solutions fit for every need Empower solutions fit the broad array of financial needs in and out of the workplace Mike Jade Tony Crossover Rollover Direct-to- Customer Customer Consumer 48 • Seeking financial advice beyond • Seeking financial guidance during a • Need to evaluate finan
Slide 50: Wealth platform leverages Workplace scale
EMPOWER WEALTH 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 49 ~US$1T • Improved engage
Slide 51: Key Messages: Ambitions driving strategic priorities
EMPOWER Key Messages Ambitions driving our strategic priorities Expanding leadership position in attractive 1 market through strong value proposition Double digits Base earnings growth1 Robust cashflow, high returns and earnings 2 50 growth - a strong contributor to Lifeco Increasing Base ROE1 Growi
Slide 52: Canada
51 GREAT-WEST LIFECO Canada
Slide 53: Key Messages
CANADA Key Messages 1 Leadership position across multiple lines of business 52 2 Highly cash generative and strong, sustainable returns 3 Grow capital-efficient businesses in targeted areas 4 GREAT-WEST LIFECO Strengthen existing business through efficiency and automation
Slide 54: Leading player in Canadian market positioned for growth
CANADA Leading player in Canadian market positioned for growth How we got here Who we are today Where we are going 175+ years serving Canadians Broad reach across all lines GROW BASE EARNINGS1 53 Built Canada Life from 3 brands into leading franchise through: of business Mid single digits CAGR Mediu
Slide 55: Well positioned to capitalize on secular trends
CANADA Well positioned to capitalize on secular trends impacting Canadian individuals and corporations Market trends, approximate figures Corporate customers Individual customers Group Benefits Retirement Wealth Insurance 54 7% 7% 5% 6% p.a. premium growth p.a. growth in assets p.a. growth of indepe
Slide 56: Offering solutions to Canadians across all lines of business
CANADA Offering solutions to Canadians across all lines of business Group Benefits is the Line of Business Right to win largest line of business Base earnings by Line of Business1 Group Benefits Leader in Group Benefits Employer-sponsored life and health Strong intermediary relationships insurance (
Slide 57: High reinvestment returns
CANADA High reinvestment returns Driving strong capital generation and earnings growth, in support of our objectives Incremental returns are Strong source of capital We have experienced solid higher than base ROE generation base earnings growth Returns (2024, %) Base earnings1,2 (C$B) ~3% 56 CAGR Ca
Slide 58: Underlying formula to grow our businesses
CANADA Underlying formula to grow our businesses Medium-term Deepen client Drive ambition Grow Wealth Expand advice relationships efficiencies + + + = Mid single Grow AUA, drive Build Advice Expand voluntary Execute on 57 managed solution Canada: offering to plan identified digits penetration, and a
Slide 59: We are well on our way to becoming a leading Wealth player
CANADA GROW WEALTH We are well on our way to becoming a leading Wealth player How we will grow Right to win Attract entrepreneurial Significant asset base providing Total client assets A advisors with a scale to build platform $119B (2024)1 58 leading platform Provide suite of Highly ranked Wealth p
Slide 60: Strengthened franchise to deliver leading platform for advisors
CANADA EXPAND ADVICE Strengthened franchise to deliver leading platform for entrepreneurial advisors Recent history in transforming advice platform Transitioned to platform expanding market access Acquired MGA to offer Amalgamated 3 Expanded wealth Launched joint wealth- • Advice Canada4 brings uniq
Slide 61: Canadians choosing to stick with us
CANADA DEEPEN CLIENT RELATIONSHIPS 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 60 Leverage sc
Slide 62: Creating operating leverage from scale and efficiency
CANADA DRIVE EFFICIENCIES Creating operating leverage from scale Driving low single digits go-forward and efficiency expense growth Historical expense efficiency Leverage Moved to single insurance brand in 2019, continuously centralizing back- Canada efficiency ratio1 (%) economies office operations
Slide 63: Key Messages: Ambitions driving strategic priorities
CANADA Key Messages Ambitions driving our strategic priorities Leadership position across multiple lines 1 of business Mid single digits Highly cash generative and strong, Base earnings growth1 62 2 sustainable returns Increasing Grow capital-efficient businesses in 3 targeted areas Base ROE1 Streng
Slide 64: Q&A
INVESTOR DAY 2025 Q&A Moderator 63 Paul Jon Carol Ed Fabrice Shubha Mahon Nielsen Waddell Murphy Morin Khan President & CEO EVP & CFO President, Empower President & CEO, President & COO, SVP, Head of Personal Wealth Empower Canada Investor Relations GREAT-WEST LIFECO
Slide 65: Europe
64 GREAT-WEST LIFECO Europe
Slide 66: Key Messages
EUROPE Key Messages Targeted leadership in attractive European markets with strong 1 and sustained cash generation Market leading business in Ireland allows us to grow and extend 65 2 within the expanding Irish economy Leveraging Bulk Annuity capability to capture strong, 3 sustainable risk-adjusted
Slide 67: Leading portfolio in growing markets, positioned for sustained growth
EUROPE Leading portfolio in growing markets, positioned for sustained growth How we got here Who we are today Where we are going #1 Built franchise into Scaling employer Across Europe Across solutions, attracting 66 leading player in Life, businesses2 employees to Wealth, Group Benefits and LEADER G
Slide 68: Ireland & UK operate in markets benefiting from secular tailwinds
EUROPE Ireland & UK operate in markets benefiting from secular tailwinds Group Benefits & Retirement Wealth $1.4T 3% $300-500B 1.8x U.S. foreign direct p.a. growth in projected to be inherited more "excess" deposits 67 Ireland investment total stock Irish employed over next 20 years in vs. 10 years
Slide 69: Solutions cover all lines of business
EUROPE Solutions cover all lines of business We have a diversified Line of Business Right to win mix of business Group Benefits Leading provider in UK & Ireland Base earnings by Line of Business1 Employer-sponsored life & health Leveraging scale to provide insurance, income protection differentiated
Slide 70: Strong European business
EUROPE Strong European business A source of predictable, strong capital generation, in support of our objectives Incremental returns are Portfolio generates Strong capital higher than base ROE significant capital generation through: Returns (2024, %) • Executing capital 69 efficiency initiatives Eur
Slide 71: Our plan to outperform economic growth in Europe
EUROPE Our plan to outperform economic growth in Europe Medium-term Ireland United Kingdom Europe-wide ambition Scale core business & Capturing growth extend into Wealth of Bulk Annuities Drive efficiencies Mid single 70 + + = digits+ Leverage trusted brand Leverage reputation & Embed and deliver ba
Slide 72: Ireland: Further expanding business with employers
EUROPE IRELAND Further expanding business with employers Group Benefits Wealth & Retirement How we Develop more multi-product relationship Increasing Wealth advice penetration through will grow with employers and employees joint venture, employer and digital channels 71 Right to Ability to build on
Slide 73: UK: Strong growth in bulk annuities business
EUROPE UNITED KINGDOM Strong growth in bulk annuities business 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 (%)1 +2-4pp 72 How we Expanding SME Capitalize on Leverage stro
Slide 74: Trustees like Alison will help grow Bulk Annuities
EUROPE UNITED KINGDOM Trustees like Alison will help grow the Bulk Annuities business Fueling long-term growth beyond SME Looking ahead Building capabilities to become the right partner for large plans in the long term 73 • Alison is a Trustee to a £250m pension scheme • Her goal is to secure financ
Slide 75: Continuing to realize efficiency gains through initiatives
EUROPE DRIVE EFFICIENCIES Continuing to realize efficiency gains through initiatives in each country Initiatives driving low single digits Historical expense efficiency go-forward expense growth Europe efficiency ratio1 (%) • Improving operational efficiency and organization effectiveness ~5-7pp 74
Slide 76: Key Messages: Ambitions driving strategic priorities
EUROPE Key Messages Ambitions driving our strategic priorities Targeted leadership in attractive European markets 1 with strong and sustained cash generation Mid single digits+ Market leading business in Ireland allows us to grow Base earnings growth1 75 2 and extend within the expanding Irish econo
Slide 77: Capital & Risk Solutions (CRS)
Capital & Risk Solutions (CRS) 76 GREAT-WEST LIFECO
Slide 78: Key Messages
CRS Key Messages 1 Sustained value creation through a global reinsurance franchise benefitting from secular tailwinds 2 77 Balanced portfolio of risks providing diversification to Lifeco 3 Franchise built on expertise and execution capability to facilitate client growth GREAT-WEST LIFECO
Slide 79: Global reinsurance leader positioned for high-margin growth
CRS Global reinsurance leader positioned for high-margin growth How we got here Who we are today Where we are going • Recognized leader in reinsurance solutions #1 #1 GROW BASE EARNINGS1 Mid single digits+ CAGR 78 that support capital- Reinsurer of U.S. Group Life Health Premiums2 Reinsurer in U.S.2
Slide 80: Global operations with a diversified portfolio of reinsurance solutions
CRS Global operations with a diversified portfolio of reinsurance solutions Where we play Right to win Capital solutions Continuous innovation to stay Culture of ahead of the market and • Optimize client risk while more closely Innovation aligning regulatory capital to economic capital competition ~
Slide 81: Supported by strong secular tailwinds
CRS Supported by strong secular tailwinds Recall: Market tailwinds How it benefits CRS Large transactions with Aging population 22 of the largest 25 annuity writers 80 #1 provider of health reinsurance Constrained in the U.S. by premium. Transactions Governments with 20 of the top 25 health insurers
Slide 82: Diversifying Lifeco portfolio
CRS Diversifying Lifeco portfolio Proportional risk exposure What CRS offers How CRS diversifies Lifeco that diversifies portfolio Composition of Capital at Risk, before diversification1 (% of total) Countercyclical Sustainability of earnings growth to markets during market downturns ~25% 81 Signifi
Slide 83: CRS has a balanced portfolio with diversified risk
CRS CRS has Run-rate insurance earnings1 (% of 2024 total) a balanced ~15% Health portfolio with Capital solutions ~10% Life & Annuities diversified risk ~50% ~10% P&C ~15% Others 82 ~20% Longevity Risk solutions ~10% Mortality ~50% ~10% Asset Intensive ~10% P&C Cat LIFECO GREAT-WEST LIFECO 1. Repre
Slide 84: Main drivers underlying our growth
CRS Main drivers underlying our growth Medium-term ambition Unique Disciplined Desirable expertise execution counterparty Mid single 83 + + = digits+ Deliver solutions to Employ discipline in risk Lifeco’s capital accelerate clients' selection, pricing and support, financial base earnings1 growth gr
Slide 85: Consistent earnings growth and strong cash generation
CRS Consistent earnings growth and strong cash generation GMT2 Strong, consistent earnings growth through major global events Enabling opportunistic deployment of capital CRS earnings growth (C$M)3,4 Base earnings Net earnings 84 60-80% Base capital 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 86: Opportunistic capital deployment
CRS EXPERTISE Opportunistic capital deployment Monthly return SP500, IBEX35, FTSE 100, SP500 20% Solvency II & low interest rates 10% 0% 85 (10%) (20%) 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Global financial crisis Eurozone debt crisis UK/EU interest cri
Slide 87: Advantage through disciplined underwriting and operations
CRS DISCIPLINE Advantage through disciplined underwriting and operations Deal review process CRS maintains a lower expense ratio than peers Expense ratio1 Hundreds of potential deals enter pipeline every year We are more cost efficient than our peers due to: Information gathering 86 • Minimal physic
Slide 88: Enabling customer growth
CRS Enabling customer growth By aligning economic and regulatory capital Case study: Reinsurance solution to support the growth of a U.S. health insurance carrier Context How CRS supported client Outcomes 87 • Market supported by trends • CRS provided reinsurance • Enabled the client’s expansion lik
Slide 89: Key Messages: Ambitions driving strategic priorities
CRS Key Messages Ambitions driving our strategic priorities Sustained value creation through a global reinsurance 1 franchise benefitting from secular tailwinds Mid single digits+ Base earnings growth1 88 Balanced portfolio of risks providing diversification 2 to Lifeco Opportunity dependent Base RO
Slide 90: Q&A
INVESTOR DAY 2025 Q&A Moderator 89 Pic looking at camera? Paul Jon David Lindsey Jeff Shubha Mahon Nielsen Harney Rix-Broom Poulin Khan President & CEO EVP & CFO President & COO, CEO, Canada CEO, Canada SVP, Head of Europe and CRS Life UK Life Reinsurance Investor Relations GREAT-WEST LIFECO Moderat
Slide 91: Closing Remarks
INVESTOR DAY 2025 Closing Remarks Driving Growth, Delivering Lasting Value 90 Paul Mahon GREAT-WEST LIFECO President & Chief Executive Officer
Slide 92: Endnotes
INVESTOR DAY 2025 ENDNOTES Slide 6: 2. As of December 31, 2024. 3. From continuing operations. 4. S&P Global Ratings - Financial Strength Rating for The Canada Life Assurance Company and Issuer Credit Rating for Lifeco as of December 31, 2024. 5. Per Bloomberg, Total Shareholder Return includes pric
Slide 93: Endnotes
INVESTOR DAY 2025 ENDNOTES Slide 14: 2. This measure provides a view of capital generated or consumed by the business above our internal operating target level. Base capital generation is calculated as follows: base earnings, plus organic CSM movement, plus the change in surplus allowance and requir
Slide 94: Endnotes
INVESTOR DAY 2025 ENDNOTES Slide 35: 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 Personal Capital. 5. Cerulli, U.S. Retirement Markets 2024. Slide 36: 1. 2023 DC Retirement assets per Cerull
Slide 95: Endnotes
INVESTOR DAY 2025 ENDNOTES Slide 49: 1. Estimated cumulative 5-year participant distributions from Workplace platforms assuming steady stock market growth and continued share gains in Workplace. Note: Rollover eligibility - Assets can be rolled into a Personal Wealth account without tax penalties: 4
Slide 96: Endnotes
INVESTOR DAY 2025 ENDNOTES Slide 60: 1. Includes life and critical illness Slide 66: 2. Internal analysis of market data. Data has been sourced from several consulting firms and industry bodies to arrive at an estimate. 3. Internal analysis of market data. Data has been sourced from several consulti
Slide 97: Endnotes
INVESTOR DAY 2025 ENDNOTES Slide 73: 1. Pension Protection Fund, Purple Book, 2024. 2. Based on internal analysis of market data. Data has been sourced from several consulting firms and industry bodies to arrive at an estimate. Slide 78: 2. Based on premiums reported by reinsurers to AM Best. 3. Bas
Slide 98: Non-GAAP Financial Measures and Ratios
INVESTOR DAY 2025 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
Slide 99: Non-GAAP Financial Measures and Ratios
INVESTOR DAY 2025 NON-GAAP FINANCIAL MEASURES AND RATIOS Base earnings (loss) – pre-tax Base earnings (loss) before income taxes, earnings (losses) attributable to non-controlling interests and preferred share dividends. The income tax expense for the period represents the sum of current income tax
Slide 100: Non-GAAP Financial Measures and Ratios
INVESTOR DAY 2025 NON-GAAP FINANCIAL MEASURES AND RATIOS Non-par base operating and administrative expenses Non-par base operating and administrative expenses is a non-GAAP financial measure which excludes business transformation cost and other expenses that are excluded from base earnings. In addit
Slide 101: Non-GAAP Financial Measures and Ratios
INVESTOR DAY 2025 NON-GAAP FINANCIAL MEASURES AND RATIOS Non-GAAP Ratios A non-GAAP ratio is a financial measure in the form of a ratio, fraction, percentage or similar representation that is not disclosed in the financial statements of Lifeco and has a non-GAAP financial measure as one or more of i
Slide 102: Glossary
INVESTOR DAY 2025 GLOSSARY • Capital-at-risk – Capital at Risk measures the Company’s ability to maintain a strong balance under normal and stressed conditions (a 1-in-50 year event) over a one-year time horizon. The risk assessment considers material risks, the diversification within and across our
Slide 103: Investor Day 2025
102 Investor Day 2025 GREAT-WEST LIFECO Driving Growth, Delivering Lasting Value