Great-West Lifeco posted net earnings from continuing operations of $860 million for the first quarter of 2025, down 17% from $1.12 billion in the same quarter of last year, the insurer announced Wednesday.
The decrease was primarily attributed to lower market returns, primarily on real estate assets and interest rates, Great-West Life said.
Great-West Life had $2.55 trillion in assets under management and administration as of March 31, up from $2.23 trillion at the same time last year.
In a release, president and CEO Paul Mahon, who will be retiring in July, said the company experienced strong base earnings growth in its U.S. retirement and wealth businesses. Overall, Great-West saw base earnings rise 5% as growth in its U.S. segment outpaced drops in its Canada, Europe, capital markets and risk solutions and corporate segments.
In Canada, base earnings fell to $316 million from $340 million in the first quarter of 2024. The drop was mainly due to a lower contractual service margin — or the value of unearned profits — recognized due to actuarial assumption changes in the latter half of last year, less favourable group benefits mortality experience and lower earnings from declines in short-term yields.
Insurance and annuities sales in Canada for the first quarter fell to $107 million, down $47 million from the same quarter last year, primarily due to lower individual annuity sales. Meanwhile, group benefits sales of $125 million increased by $36 million compared to the same quarter last year in Canada, mainly from increased case sales.
The insurer had net asset outflows of $514 million in Canada in the first quarter of 2025, compared to outflows of $90 million in the same quarter last year. This was primarily due to large case plan terminations in retirement, partially offset by higher segregated fund and third-party mutual fund deposits in wealth management.
Great-West Life’s Life Insurance Capital Adequacy Test ratio is 130%.