operating margin
—
FY 2026
official guidance
GREAT-WEST LIFECO INC.
Last · TorontoC$90.14+0.56 (+0.63%)close · yahoo · 12h ago
Market capC$80.7B895.2M sh
P/E · TTM18.6fwd 14.2 · eps 4.85
Beta0.66vs S&P 500
Div yield2.86%annual · TTM
52w range
C$57.56C$95.96
Volume446.1Ksession
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong operating momentum is offset by insurance and capital-market risks.
Hold: Q2 base EPS grew 15% year over year and base ROE was 19.3%, with 128% LICAT and $2.5 billion of Holdco cash.
The bull case is strong Empower and CRS momentum plus accretive capital deployment, but weaker Canadian disability experience, lumpy CRS earnings, tight credit spreads, and execution risk around Milliman keep this from being a clean buy.
Themes
- Base Eps Growth
- Empower
- Capital Risk Solutions
- Milliman Acquisition
- Canadian Disability
- Europe Capital Efficiency
Near term
Canadian group long-term disability recoveries weakened for a second consecutive quarter, and management said the pressure may continue into Q3.
Empower Workplace contributions fell to $32 billion in Q2 from $45 billion in Q1, while management only expects rollover and net-new-asset improvement in Q3 and Q4.
CRS demand remains strong but management described the business as lumpy and said demand has tapered somewhat from the prior 18 months.
Milliman closing and integration are required before the promised defined-benefit and bundled-product benefits can be realized.
Longer term
Empower has meaningful scale, with more than US$2 trillion of Workplace client assets, but continued investment will temper near-term margin expansion.
Europe has delivered more than $3 billion of capital benefits and reduced new-business capital strain by approximately 30%; management says the optimization program is only about two-thirds complete.
The long-term earnings mix is becoming less dependent on trading gains, but tight corporate spreads constrain yield enhancement and can pressure capital-intensive pricing and US general-account economics.
Red flags
Management did not quantify the duration or financial impact of weaker disability recoveries, and acknowledged that repricing may be part of the toolkit without giving timing or magnitude.
The quarter exposed unexplained volatility in the equity-hedging and investment portfolio results; management said the sharp-quarter effect was not expected to recur but did not fully quantify the drivers.
The $40 million-share NCIB authorization is described as improbable to be fully used, so the capital-return headline overstates likely near-term buyback volume.
Forward outlook
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
Upcoming earnings
9:00 PM UTC+1
Period
Sep 2026
Est. EPS
$1.45
Est. revenue
0
Earnings transcripts
Documents
FormReporting forFiledFlags