Great-west Lifeco Inc. · TSX:GWO
Great-west Lifeco — Q3 2025 Earnings Presentation
43 slides from Great-west Lifeco's earnings presentation, Nov 6, 2025
Slide 1: Quarterly Results Presentation
Great-West Lifeco Quarterly Results Presentation November 6, 2025
Slide 2: Cautionary Notes
Q3 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 Q3 2025 earnings
Slide 3: Conference call participants
Q3 2025 Conference call participants PRESENTERS David Harney Jon Nielsen Jeff Poulin President & CEO EVP & Chief Financial Officer CEO, Reinsurance 3 Q&A PARTICIPANTS Ed Murphy Fabrice Morin Lindsey Rix-Broom President & CEO, Empower President & COO, Canada CEO, Europe GREAT-WEST LIFECO Linda Kerrig
Slide 4: Business Overview
Business Overview 4 David Harney President & CEO Great-West Lifeco GREAT-WEST LIFECO
Slide 5: Key messages
Q3 2025 Key messages Strong execution against strategic priorities across Lifeco Delivered a record quarter of base earnings 5 Double-digit base earnings growth across U.S., Europe, and CRS segments Strong cash generation supporting our capital deployment strategy; increasing share buybacks GREAT-WE
Slide 6: Q3 2025 financial highlights
Q3 2025 Q3 2025 financial highlights Base earnings1 Base ROE1 Base EPS1 Total client assets1,2 $1,225M 17.7% $1.33 $3.3T Up 15% YoY Up 0.4pp YoY Up 17% YoY Up 15% YoY 6 Net earnings Net ROE2 Net EPS AUMA1 $1,158M 15.8% $1.25 $1.1T Share repurchases of LICAT Ratio3 Leverage ratio4 Lifeco cash $995M Y
Slide 7: Successfully executing on our growth strategies
Q3 2025 Successfully executing on our growth strategies Over 40M customer relationships around the world, with growing demand for our Wealth, Retirement, and Insurance solutions U.S. Empower Wealth crossed US$100B in client assets1 Advancing digital experience across different lines, including mobil
Slide 8: Financial performance: Achieving our growth ambitions across the portfolio
Q3 2025 FINANCIAL PERFORMANCE Achieving our growth ambitions across the portfolio BASE EARNINGS1 MEDIUM-TERM HIGHLIGHTS GROWTH YOY GROWTH AMBITIONS Strong organic growth in Retirement; U.S. record net flows in Wealth from rollovers +10% Double digits 8 Continued strong Group Benefits and Retirement
Slide 9: Capital and Risk Solutions
Capital and Risk Solutions 9 Jeff Poulin Chief Executive Officer, Reinsurance GREAT-WEST LIFECO
Slide 10: CRS: New business drives strong earnings growth
Q3 2025 CRS: New business drives strong earnings growth Base earnings1 (bars) and net earnings (diamonds) C$M 280 +20% +16% 265 in CC2 220 Capital Solutions 10 • Strong new business volume in the U.S. drives 36% YoY increase in run-rate insurance1,3 results Risk Solutions • Steady growth in base ear
Slide 11: Focus continues to shift toward Capital Solutions
Q3 2025 Focus continues to shift toward Capital Solutions Run-rate insurance results1 C$M +21% 261 Growing demand for Capital Solutions 216 Corporates increasingly seeking tools to +36% Capital manage risk and capital 11 146 Solutions 107 Constrained ability for governments to support health & wealt
Slide 12: Capital Solutions
Q3 2025 Capital Solutions Supporting clients’ capital needs while managing risk Attractive alternative to external financing Treaty mechanisms to manage risk Clients facing new business strain Tailored attachment points 12 need financing solutions Short-term contracts with termination rights Debt Ca
Slide 13: CRS well positioned to capitalize on growing opportunity
Q3 2025 CRS well positioned to capitalize on growing opportunity ✓ Strong balance sheet 13 ✓ Deep and long-tenured client relationships Competitive advantages Opportunistic and selective in deals, ✓ reflecting strong risk management ✓ Nimble operations GREAT-WEST LIFECO
Slide 14: Financial Highlights
Financial 14 Highlights Jon Nielsen EVP & Chief Financial Officer, Great-West Lifeco GREAT-WEST LIFECO
Slide 15: Record base earnings and base EPS
Q3 2025 Record base earnings and base EPS Base earnings1 (bars) and net earnings (diamonds) Base ROE1 (bars) and net ROE (diamonds) C$M +15% +0.4pp +13% 1,225 17.3% 17.7% in CC2 1,158 1,061 15.6% 15.8% 15 859 GREAT-WEST LIFECO 3Q24 3Q25 3Q24 3Q25 • Double-digit base earnings growth driven by strong
Slide 16: Strong insurance and credit experience bolster Q3 results
Q3 2025 Strong insurance and credit experience bolster Q3 results Insurance experience in drivers of earnings Credit experience: 10-year history C$M Post-tax, bps of average non-participating fixed income assets1 112 5 bps 16 0 bps 0 bps 0 bps (1 bps) (1 bps) (1 bps) 4-quarter average: 58 56 (3 bps)
Slide 17: Empower: Double-digit base earnings growth
Q3 2025 Empower: Double-digit base earnings growth Base earnings1 (bars) and net earnings (diamonds) US$M +10% 317 287 Retirement 274 272 • Net plan inflows2 of US$30B more than offset participant 17 outflows; average client asset growth of 11% YoY Wealth • Base earnings up 39% YoY • Net flows2 of U
Slide 18: Canada: Business momentum remains robust
Q3 2025 Canada: Business momentum remains robust Base earnings1 (bars) and net earnings (diamonds) C$M 499 483 +4% Canada base earnings +4%, and +9% excluding earnings on surplus 371 356 Group Benefits 18 • Base earnings up 19% mainly due to organic growth and strong insurance experience Retirement
Slide 19: Europe: Strength across business lines
Q3 2025 Europe: Strength across business lines Base earnings1 (bars) and net earnings (diamonds) C$M +19% +12% 266 in CC2 224 Wealth & Retirement • Strong global equity markets and Wealth sales in Irish Life 19 188 and the UK Insurance & Annuities 144 • Retail annuity sales more than doubled YoY Gro
Slide 20: Capital generation supports free cash flow
Q3 2025 Capital generation supports free cash flow in excess of 80% of base earnings Free cash flow1 by quarter C$M 1,823 1,387 690 Withheld in H1 for debt repayment in Q3 20 4 quarter average incl. withheld cash: $1,144 998 690 1,133 367 GREAT-WEST LIFECO 4Q24 1Q25 2Q25 3Q25 1: See the endnotes in
Slide 21: Strong cash generation enables increased buybacks
Q3 2025 Strong cash generation enables increased buybacks Cumulative share buybacks1 and full-year plan2 C$M 1,500 1,000 21 As of Nov 5 500 500 995 603 370 80 GREAT-WEST LIFECO 1Q25 2Q25 3Q25 4Q25 1: Share buybacks YTD as of each quarter end, excluding purchases to offset option dilution. 2: See the
Slide 22: Strong capital position provides continued financial flexibility
Q3 2025 Strong capital position provides continued financial flexibility LICAT Ratio1 Financial leverage2 Lifeco cash 134% 29% C$B 132% 131% 28% 27% 2.5 22 2.1 1.1 GREAT-WEST LIFECO 3Q24 2Q25 3Q25 3Q24 2Q25 3Q25 3Q24 2Q25 3Q25 1-2: See the endnotes in the Appendix.
Slide 23: Closing Remarks
Closing 23 Remarks David Harney President & CEO Great-West Lifeco GREAT-WEST LIFECO
Slide 24: Key messages
Q3 2025 Key messages Strong execution against strategic priorities across Lifeco Delivered a record quarter of base earnings 24 Double-digit base earnings growth in the U.S., Europe, and CRS segments Strong cash generation supporting our capital deployment strategy; Increasing share buybacks GREAT-W
Slide 25: Q&A
25 GREAT-WEST LIFECO Q3 2025 Q&A
Slide 26: Appendix
26 GREAT-WEST LIFECO Q3 2025 Appendix
Slide 27: Markets have shown sustained momentum since April rebound
Q3 2025 Markets have shown sustained momentum since April rebound 3Q25 Total Returns1 In-quarter average 1.55 change 1.50 3Q25 vs. 3Q25 vs. 1.45 3Q24 2Q25 1.40 Market Indices 1.35 S&P 500 18% 13% 1.30 27 S&P / TSX Composite 25% 11% 1.25 MSCI Europe 10% 4% 1.20 BBG US Agg. Bond 3% 2% 1.15 Currency 1.
Slide 28: 3Q25 Key Metrics – Empower
Q3 2025 3Q25 Key Metrics – Empower Base earnings1 (bars) and net earnings (diamonds) US$M +10% US$B 3Q24 3Q25 YoY 317 Retirement 287 Client assets (avg.)3 1,619 1,805 +11% 274 272 2472 Client assets (end)1 1,684 1,872 +11% 222 Total net flows3 (13.7) 17.1 +30.8 28 227 Retirement 212 Participants (M,
Slide 29: Empower: Diversified earnings streams
Q3 2025 Empower: Diversified earnings streams Empower 3Q25 net fee and spread income1 Empower 3Q25 ending client asset composition (Retirement) (Retirement) 29% 29% 29 49% 52% 19% 22% GREAT-WEST LIFECO Asset-based fee income Spread income Other fee income U.S. equities Foreign & Capital preservation
Slide 30: 3Q25 Key Metrics – Canada
Q3 2025 3Q25 Key Metrics – Canada C$M 3Q24 3Q25 YoY Base earnings1 (bars) and net earnings (diamonds) C$M 499 Retirement – Client assets (avg)2 75,091 81,823 +9% 483 +4% Retirement – Net flows2 20 (74) nmf 375 371 Wealth – Client assets (avg)2 113,583 124,216 +9% 356 42 50 Retirement 40 Wealth – Net
Slide 31: 3Q25 Key Metrics – Europe
Q3 2025 3Q25 Key Metrics – Europe Base earnings1 (bars) and net earnings (diamonds) C$M 3Q24 3Q25 YoY C$M Retirement – Client assets (avg)2 31,835 36,338 +14% +19% Retirement – Net flows2 282 650 >100% 262 266 8 10 Wealth3 – Client assets (avg)2 214,077 247,259 +15% 224 56 Retirement 9 68 Wealth3 –
Slide 32: 3Q25 Key Metrics – CRS
Q3 2025 3Q25 Key Metrics – CRS Base earnings1 (bars) and net earnings (diamonds) C$M 3Q24 3Q25 YoY C$M +20% Run-rate insurance results by product2 Capital Solutions 107 146 +36% 265 280 Risk Solutions (excl. P&C) 90 94 +4% 229 P&C and other 19 21 +11% 220 Total 216 261 +21% 194 Insurance experience
Slide 33: Q3 2025 impact of actuarial assumption changes and management actions
Q3 2025 Q3 2025 impact of actuarial assumption changes and management actions 1 Net earnings Assumptions CSM impact Aggregate impact impact Description (C$M) (post-tax) (post-tax) (post-tax) Longevity 41 10 51 Updates to longevity experience, primarily in CRS and Europe Updates to mortality experien
Slide 34: Lifeco's medium-term objectives
Q3 2025 Lifeco’s medium-term objectives Base EPS Base capital Base ROE1 Base earnings growth1 generation1 dividend payout ratio1 Objectives 8-10% 80%+ 19%+ 45-55% 34 Prior objectives 8-10% N/A 16-17% 45-55% GREAT-WEST LIFECO Potential to outperform base EPS growth through accretive deployment of exc
Slide 35: Invested assets
Q3 2025 Invested assets Conservative investment portfolio, predominantly comprised of fixed income instruments • Invested assets of ~$249.4B Invested Asset Distribution Bond Portfolio Quality • Bonds represent 69% – 98% are investment grade Investment Properties Cash and CD's BB & Lower – 69% rated
Slide 36: Diversified investment portfolio with resilient commercial mortgage portfolio
Q3 2025 Diversified investment portfolio with resilient commercial mortgage portfolio Lifeco Invested Assets Lifeco Mortgage Portfolio (excluding Participating Account) (excluding Participating Account) Cash and CDs Commercial - Other Single Family Investment properties Gov’t and 1% 6% 5% Equity Rel
Slide 37: Lifeco consolidated bond portfolio
Q3 2025 Lifeco consolidated bond portfolio % OF INVESTED ASSETS Gov't, Gov't Related and Agency Corporate and Non-Agency Country of Domicile Total Bonds Securitized Bonds Securitized Bonds U.S. 3.3% 27.2% 30.5% Canada 7.5% 9.1% 16.6% U.K. 4.7% 6.3% 11.0% Germany 0.8% 1.0% 1.8% 37 Ireland 0.1% 0.4% 0
Slide 38: Corporate and Non-Agency Securitized Bonds
Q3 2025 Corporate and Non-Agency Securitized Bonds Sector Diversification Corporates % of Invested Assets Non-Agency Securitized % of Invested Assets Electric Utilities 7.6% CMBS 1.5% Consumer Products 6.5% RMBS 0.1% Industrial Products 5.2% Other ABS 4.8% Financial Services 3.8% Total Non-Agency Se
Slide 39: Lifeco Mortgage Exposures
Q3 2025 Lifeco Mortgage Exposures (C$m) Carrying Value Mortgage Holdings by Segment % of Canada Non- Non- Property Type Total Canada Par U.S. Europe CRS Insured LTV1 DSCR2 WALT3 Lifeco IA Par insured Single Family 916 0.4% 706 210 - - - 189 727 Equity Release 5,481 2.2% 611 1,409 - 2,769 692 - 5,481
Slide 40: Lifeco Non-Fixed Income Portfolio
Q3 2025 Lifeco Non-Fixed Income Portfolio (C$m) Carrying Value E qu ity Po r tfo lio by Se gme n t % o f Life co Can ada No n - NF I Po r tfo lio by Type To tal Can ada Par U . S. E u r o pe CRS IA Par Investment Properties Industrial 2,751 1.1% 2,030 290 - 431 - Office 1,583 0.6% 909 166 16 492 - M
Slide 41: 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 42: Endnotes
All references to the Company’s Q3 2025 MD&A in the below footnotes are to the Company’s management’s discussion and analysis for the periods ended September 30, 2025, which is available on SEDAR+ at ENDNOTES www.sedarplus.com. Slide 6 2. Additional information regarding this metric has been incorpo
Slide 43: Endnotes
All references to the Company’s Q3 2025 MD&A in the below footnotes are to the Company’s management’s discussion and analysis for the periods ended September 30, 2025, which is available on SEDAR+ at ENDNOTES www.sedarplus.com. Slide 22 1: The Life Insurance Capital Adequacy Test (LICAT) Ratio is ba