Great-West Lifeco says it earned $1 billion in the fourth quarter of 2025, down 6% from the same quarter in 2024.
Adjusted earnings, or what the company calls base earnings, amounted to $1.2 billion for the quarter, up 12% year over year.
The insurer raised its dividend to 67 cents per common share, up 10% from the third quarter.
In Canada, Great-West Lifeco’s base earnings came in at $400 million for the fourth quarter, compared to $362 million in the fourth quarter of 2024. The increase was primarily due to favourable group benefits and individual insurance experience, higher fee income and changes in some tax estimates. It was partially offset by lower earnings on surplus from lower interest rates.
Group benefits sales for administrative services only and other non-insured business in Canada fell to $19 million in the fourth quarter of 2025 from $279 million a year earlier. The drop was mainly from the federal pensioners’ dental services plan sale in 2024, without a similar large sale in 2025.
At the same time, insurance and annuities sales in Canada fell $34 million to $146 million in the fourth quarter year over year, primarily from lower annuity and participating insurance sales.
Net asset inflows in Canada were $2.1 billion in Canada for the fourth quarter, compared to $134 million in net outflows the same quarter a year prior. The inflows were mainly driven by a large asset acquisition deal with De Thomas Wealth Management and improved segregated fund flows in wealth management. They were partially offset by higher terminations in the retirement business.
Great-West Lifeco had $3.6 trillion in total assets under administration as of Dec. 31, up from $3.3 trillion during the same period a year earlier. In Canada, the insurer had $218 billion in total client assets, compared to $197 billion the year prior.
It had a life insurance capital adequacy test of ratio of 128% at the end of 2025.