Great-West Lifeco posted $1.16 billion in third-quarter net earnings, up 35% compared to the same period in 2024, the insurer announced Wednesday.
The increase was driven by growth in U.S. and European markets and the risk solutions business, David Harney, president and CEO of Great-West Lifeco said in a statement.
Base earnings in Canada were $371 million for the quarter, up $15 million. The increase was mainly due to higher group benefits earnings with favourable long-term disability morbidity experience, and higher wealth and retirement earnings with asset growth, and partially offset by lower income on surplus as interest rates fell.
Group benefits sales in Canada in the third quarter were $67 million, down $183 million year over year from a one-time sale last year that did not repeat. Insurance and annuities sales fell $51 million to $118 million due to lower participating product sales, partially offset by stronger universal life sales.
Net asset outflows in Canada were $554 million, compared to a net outflow of $173 million in the same quarter last year, mainly driven by higher retirement terminations and third-party wealth mutual fund outflows. This was partially offset by improved segregated funds flows and sales.
Year-to-date, Great-West Lifeco repurchased $995 million in shares. It plans to spend another $500 million on share buybacks before the end of the year.
As of Sept. 30, the insurer had $3.5 billion in assets under administration, up from $3.1 billion at the same time last year.
It reported a life insurance capital adequacy test ratio of 131%.