How Does Great-West Lifeco Company Work?

Great-West Lifeco Bundle

Get Full Bundle:

	5 FORCES	$15	$10
	BCG	$15	$10
	CANVAS	$15	$10
	4P's MIX	$15	$10
	PESTLE	$15	$10
	SWOT	$15	$10

TOTAL:

ADD TO CART

How Does Great-West Lifeco Operate?

Great-West Lifeco is a major international financial services holding company. It recently reported strong financial results, with base earnings of $1.0 billion in Q1 2025, up 5% year-over-year. This growth was fueled by its Retirement and Wealth segments.

The company's Q2 2025 performance was even stronger, achieving a record $1.149 billion in base earnings, an 11% increase from the previous year. This sustained growth highlights the company's robust operational capabilities and market position.

With client assets surpassing $3.0 trillion as of March 31, 2025, Great-West Lifeco manages substantial wealth. Its operations are primarily conducted through key subsidiaries: Canada Life (Canada and Europe), Empower (United States), and Irish Life (Ireland). These entities offer a broad spectrum of financial products and services, including life and health insurance, retirement and investment solutions, asset management, and reinsurance. The company serves over 40 million customers worldwide, demonstrating its extensive global reach and impact. Understanding the financial strategies and performance drivers of Great-West Lifeco is vital for investors and stakeholders alike, offering insights into market trends and investment opportunities. For a deeper dive into the external factors influencing the company, consider a Great-West Lifeco PESTEL Analysis.

Great-West Lifeco operates a diversified financial services model, creating and delivering value through a broad portfolio of products and services. Its core businesses are structured across Canada, the United States, and Europe, encompassing life insurance, health insurance, retirement solutions, investment management, and reinsurance.

Core Operations Across Segments

The company's operations are segmented geographically, with significant presence in Canada, the US, and Europe. Each region offers a comprehensive suite of financial security products tailored to individual and business needs.

Key Product Offerings

Great-West Lifeco's primary offerings include life and health insurance, robust retirement solutions, and investment management services. The company also engages in reinsurance, leveraging specialized expertise for risk selection.

US Retirement Solutions Leader

In the United States, Empower is a leading provider of employer-sponsored retirement plans. As of March 31, 2025, it administered approximately $1.8 trillion in assets for over 19 million individuals.

European Market Presence

In Europe, Irish Life is a prominent entity, specializing in life assurance, pensions, and investment management. This subsidiary plays a crucial role in the company's European strategy.

Great-West Lifeco's business model is built on disciplined underwriting and proactive expense management, which contribute to its stable financial returns. The company strategically invests in digital tools and services to enhance customer experience and operational efficiency. This focus is reflected in its improved efficiency ratio, which decreased to 56.7% in Q2 2025 from 57.5% in Q2 2024. The company's value proposition to customers is delivered through a diverse range of products, extensive distribution networks, and a commitment to fostering financial security. Partnerships, such as the €500 million climate transition fund launched by Irish Life Investment Managers in 2024, further demonstrate its commitment to innovation and market differentiation, aligning with its Growth Strategy of Great-West Lifeco.

Key Operational Strengths

The company's operational framework is characterized by a strong emphasis on financial discipline and strategic digital investment. These elements are central to how Great-West Lifeco works and generates value.

• Disciplined underwriting strategy
• Proactive expense management
• Strategic investments in digital tools
• Focus on customer experience and efficiency
• Diversified product offerings

Great-West Lifeco SWOT Analysis

• Complete SWOT Breakdown
• Fully Customizable
• Editable in Excel & Word
• Professional Formatting
• Investor-Ready Format

GET TEMPLATE ➔

Great-West Lifeco's revenue generation is multifaceted, primarily driven by insurance premiums, net investment income, and various fee-based services. This diverse approach underscores its comprehensive financial services model, aiming to capture value across different client needs.

Insurance Premiums

A significant portion of Great-West Lifeco's income originates from the premiums collected on its wide array of insurance products. These premiums form the bedrock of its insurance operations.

Net Investment Income

The company actively manages a substantial asset base, generating income through its investments. This income stream is crucial for overall profitability and financial stability.

Fee and Other Income

Beyond premiums and investments, Great-West Lifeco earns revenue from fees associated with its wealth management, retirement services, and other financial solutions. This diversifies its income sources.

Full Year 2024 Performance

For the full year 2024, the company reported base earnings of $4.2 billion, marking a 14% increase from 2023. Net earnings from continuing operations reached $4.0 billion, a substantial 40% rise year-over-year.

Q1 2025 Growth Drivers

In the first quarter of 2025, base earnings grew 5% year-over-year to $1.0 billion, with the Retirement and Wealth segments leading the expansion. The U.S. segment, particularly Empower, showed robust net flows and a 30% increase in rollover sales.

Q2 2025 Earnings Highlights

The second quarter of 2025 saw record quarterly base earnings of $1.149 billion, an 11% increase from the prior year. The U.S. segment contributed 13% base earnings growth, while the Europe segment saw 11% growth.

Great-West Lifeco's monetization strategies are deeply intertwined with its extensive client asset base, which surpassed $3.0 trillion as of March 31, 2025. The company employs a tiered pricing structure for its diverse range of financial services, effectively capturing value based on service complexity and client commitment. A key aspect of its strategy involves robust cross-selling initiatives across its insurance, wealth management, and retirement platforms, aiming to maximize the lifetime value of each customer relationship. This approach is further bolstered by a strategic pivot towards capital-efficient, high-growth businesses, particularly within its Retirement and Wealth segments, which is designed to optimize the company's revenue mix and enhance overall profitability. This strategic direction is supported by a disciplined framework for capital management and a continuous focus on operational efficiency, both of which are critical for sustaining earnings growth and ensuring financial stability. Understanding these elements is key to grasping Target Market of Great-West Lifeco.

Monetization Strategies

The company leverages its substantial client asset base to drive revenue through various financial services. Its strategic focus on growth and efficiency underpins its monetization efforts.

• Utilizing a client asset base exceeding $3.0 trillion as of March 31, 2025.
• Implementing tiered pricing for services to match value with cost.
• Actively cross-selling across insurance, wealth, and retirement platforms.
• Shifting focus to higher-growth, capital-efficient businesses.
• Maintaining disciplined capital management and operational efficiency.

Great-West Lifeco PESTLE Analysis

• Covers All 6 PESTLE Categories
• No Research Needed – Save Hours of Work
• Built by Experts, Trusted by Consultants
• Instant Download, Ready to Use
• 100% Editable, Fully Customizable

GET TEMPLATE ➔

Great-West Lifeco has demonstrated significant growth and strategic adaptation. A major milestone in 2024 was surpassing $3 trillion in assets under administration, highlighting increased client trust and market expansion. The company's strategic moves, such as integrating Prudential Financial's retirement services into Empower in Q2 2024, have substantially broadened its U.S. market reach.

Key Milestones and Growth

In 2024, Great-West Lifeco achieved a significant milestone by exceeding $3 trillion in assets under administration for the first time. This accomplishment reflects the company's expanding market presence and the trust placed in its financial services.

Strategic Acquisitions and Integrations

The company made a pivotal strategic move by completing the integration of Prudential Financial's retirement services business into Empower in Q2 2024. Additionally, Empower acquired Plan Management Corporation (OptionTrax) in 2024, enhancing its digital equity plan administration capabilities.

Product Innovation and Operational Resilience

Great-West Lifeco continues to innovate its product offerings, launching a new universal life product and refining pricing for disability and critical illness insurance in Canada during 2024. The company has shown resilience in the face of market volatility, such as a $21 million claims provision related to California wildfires in Q1 2025.

Competitive Strengths and Market Position

The company's competitive edge is built on its strong brands, including Canada Life and Empower, which is the second-largest retirement services provider in the U.S. Empower manages approximately $1.8 trillion in client assets, serving over 19 million participants as of March 31, 2025.

Great-West Lifeco's business model is further strengthened by its disciplined underwriting and proactive expense management, which contribute to more stable returns on equity compared to industry peers. The company's focus on strategic investments in capital-efficient wealth and retirement solutions demonstrates its adaptability to market trends. This commitment to long-term growth and shareholder value is further evidenced by its intention to repurchase an additional $500 million in shares in 2025, following $432 million in repurchases year-to-date as of Q2 2025.

Understanding Great-West Lifeco's Operational Framework

The operational framework of Great-West Lifeco is designed for sustained growth and financial stability. The company's strategic direction prioritizes capital efficiency and market leadership in key segments.

• Assets under administration surpassed $3 trillion in 2024.
• Empower is the second-largest retirement services provider in the U.S.
• Disciplined underwriting and expense management are core strengths.
• Strategic investments focus on wealth and retirement solutions.
• The company is committed to shareholder returns through share repurchases.

Great-West Lifeco Business Model Canvas

• Complete 9-Block Business Model Canvas
• Effortlessly Communicate Your Business Strategy
• Investor-Ready BMC Format
• 100% Editable and Customizable
• Clear and Structured Layout

GET TEMPLATE ➔

Great-West Lifeco holds a significant position in the global financial services sector, recognized as a major Canadian life insurer and a leading U.S. defined-contribution provider. Its extensive global reach serves over 40 million customer relationships, supported by a strong capital position, with a LICAT ratio of 130% as of March 31, 2025.

Industry Position

Great-West Lifeco is a prominent player, ranking among the 'Big Three' Canadian life insurers and as the second-largest defined-contribution service provider in the U.S. through Empower. Its global reinsurance business is also a significant operation, holding the fourth-largest worldwide position.

Key Risks and Headwinds

The company navigates risks including market volatility affecting real estate and interest rates, which impacted Q1 2025 earnings. Increased competition, expense pressures, economic uncertainties, and potential regulatory changes also present challenges to its Great-West Lifeco operations.

Future Outlook and Strategy

Looking ahead, Great-West Lifeco is focused on strategic growth, increasing its Base Return on Equity objective to 19%+ and setting a new Base Capital Generation objective of 80%+. The company aims to build market-leading franchises and expand in U.S. retirement markets.

Growth Drivers and Efficiency

The U.S. retirement market is a key growth area, expanding at double the industry rate. The company is also committed to cost reduction and digital efficiency initiatives to manage expenses and is open to strategic acquisitions to further enhance its Great-West Lifeco business model.

Strategic Financial Objectives

In April 2025, Great-West Lifeco updated its medium-term financial objectives, signaling a commitment to sustained profitability and growth. These updated targets reflect the company's confidence in its strategic direction and operational capabilities.

• Base Return on Equity objective increased to 19%+
• New Base Capital Generation objective of 80%+
• Reaffirmed Base EPS growth objective of 8-10%
• Reaffirmed Base Dividend Payout Ratio objective of 45-55%

Understanding Revenue Streams & Business Model of Great-West Lifeco provides insight into how the company generates revenue and its overall operational framework. The company's approach to wealth management and its diverse financial solutions are central to its success in serving policyholders and clients across its global operations.

Great-West Lifeco Porter's Five Forces Analysis

• Covers All 5 Competitive Forces in Detail
• Structured for Consultants, Students, and Founders
• 100% Editable in Microsoft Word & Excel
• Instant Digital Download – Use Immediately
• Compatible with Mac & PC – Fully Unlocked

GET TEMPLATE ➔