Great West reports Q2 2026 results with double-digit earnings growth

TSX:GWO

^{Great-West Lifeco Inc.'s Quarterly Report to Shareholders for the second quarter of 2026, including its Management's Discussion and Analysis (MD&A) and consolidated interim financial statements for the three and six months ended June 30, 2026, are available at greatwestlifeco.com/financial-reports and sedarplus.ca. Readers are referred to the Basis of presentation, Cautionary note regarding Forward-Looking Information and Cautionary note regarding Non-GAAP Financial Measures and Ratios sections at the end of this release for additional information on disclosures.}

^{All figures are expressed in millions of Canadian dollars, unless otherwise noted.}

• Base EPS increased 15% to $1.42, and Net EPS increased 20% to $1.16, from Q2 2025
• Base ROE of 19.3% and ROE of 17.2%, achieving Great West's 19%+ medium-term objective
• LICAT ratio of 128% and holding company cash of $2.5 billion
• Repurchased $336 million of common shares in Q2 2026, and announced Retirement acquisition in the U.S.

WINNIPEG, MB, July 28, 2026 /CNW/ -- Great-West Lifeco Inc. (Great West or the Company) today announced its Q2 2026 results.

"Great West delivered another quarter of strong results, with double-digit growth in base earnings, reflecting continued momentum across our Retirement and Wealth businesses," said David Harney, President and CEO, Great West. "We achieved our 19%+ base ROE objective, while deploying capital strategically through the acquisition of a retirement business in the U.S. and share repurchases. Supported by a strong balance sheet and robust capital generation, we remain well positioned to continue creating long-term value for our shareholders."

KEY FINANCIAL HIGHLIGHTS

	In-Quarter		Year-to-Date
	Q2 2026	Q2 2025	2026	2025
Earnings
Base earnings^1	$       1,270	$       1,149	$       2,509	$       2,179
Net earnings	$       1,039	$          894	$       2,231	$       1,754
Earnings per share
Base EPS^2	$         1.42	$         1.24	$         2.79	$         2.35
Net EPS	$         1.16	$         0.96	$         2.48	$         1.89
Return on Equity
Base ROE^2,3	19.3 %	17.4 %
ROE	17.2 %	14.9 %

Base earnings¹ of $1,270 million and $1.42 per common share² in the second quarter, up 11% from $1,149 million and 15% from $1.24 a year ago. The strong results were driven by sustained momentum in our Retirement and Wealth lines of business, led by Empower, and supported by strong Capital Solutions new business growth in Capital and Risk Solutions (CRS). Base earnings growth was partially tempered by unfavourable insurance experience in Canada and lower trading activity year-over-year.

Net earnings of $1,039 million in the second quarter ($894 million a year ago) or $1.16 per common share reflect unfavourable market experience, primarily driven by interest rate movements in the quarter.

_______________________________
^1	This is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details.
^2	Base EPS and base return on equity (Base ROE) are non-GAAP ratios. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for  details.
^3	Base ROE and ROE are calculated using the trailing four quarters of applicable earnings and common shareholders' equity.

HIGHLIGHTS

• Strong business performance:
  • Base EPS for the second quarter increased 15% year-over-year, driven by sustained top-line momentum across lines of business, operating leverage in Retirement and Wealth, and significant share repurchases over the past year.
  • Great West delivered base ROE of 19.3%, achieving its 19%+ medium-term objective for the second consecutive quarter, owing to earnings growth, disciplined capital deployment, and share buybacks.
• Strategic focus on repositioning the portfolio toward higher-growth, capital-efficient businesses:
  • Total client assets⁴ of $3.7 trillion, of which $1.3 trillion represents higher-margin assets under management or advisement⁴.
  • Strong asset growth across Retirement and Wealth, with Q2 2026 average client assets growth of 18% and 17% respectively.
• U.S. segment continued to deliver double-digit base earnings growth:
  • Base earnings increased 34% year-over-year in constant currency, driven by strong net flows, favourable markets, continued operating leverage, and improved credit experience.
  • Base ROE continued to improve, increasing to 22.2% from 20.8% in the preceding quarter.
  • Empower's Retirement business generated US$4.9 billion in net plan flows in Q2 2026, partially offsetting net participant outflows; Empower Wealth saw net inflows of US$1.8 billion driven by rollover sales.
  • In Q2 2026, Empower's platform generated record pre-tax base operating margins⁴ of 34.7% in Retirement, up 660 bps from a year ago, and 40.4% in Wealth, up 970 bps from a year ago.
• Empower to acquire Milliman's retirement plan and benefits administration business:
  • On June 30, 2026, Empower announced the acquisition of Milliman's retirement plan and benefits administration business for US$340 million⁵.
  • Further extends Empower's Workplace Solutions platform with approximately US$130 billion in client assets and 1.5 million participants at closing, while expanding defined benefit administration and health & welfare capabilities to enhance its comprehensive retirement and benefits solutions offering to clients.
  • Expected to be accretive to base earnings in Year 1 and generate a mid-teens IRR, supported by recurring fee-based revenue and growth opportunities. Expected to generate US$20 million in cost synergies within three years and incur approximately US$50 million in integration costs.
  • The transaction is to be funded through Empower's existing cash resources and is expected to have no pro forma impact on Great West's cash balance or leverage ratio.
• Balance sheet strength provides substantial financial flexibility:
  • Strong capital position with $2.5 billion in Holdco cash after $336 million of share repurchases in Q2 2026.
  • LICAT ratio⁶ remained strong at 128%, while Great West free cash flow continued to exceed 80% of base earnings.
  • Leverage ratio⁴ of 27% as at June 30, 2026, down 1% compared to the preceding quarter.
  • Book value per share of $29.85, up 9% year-over-year.

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^4	This is a non-GAAP financial measure/ratio. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details.
^5	Transaction expected to close in the second half of 2026, subject to customary closing conditions and regulatory approvals.
^6	The Life Insurance Capital Adequacy Test (LICAT) Ratio is based on the consolidated results of The Canada Life Assurance Company, Great West's major Canadian operating subsidiary. The LICAT Ratio is calculated in accordance with the Office of Superintendent of Financial Institutions' guideline - Life Insurance Capital Adequacy Test.

SEGMENTED OPERATING RESULTS

For reporting purposes, Great West's consolidated operating results are grouped into five reportable segments – United States, Canada, Europe, Capital and Risk Solutions and Corporate – reflecting the management and corporate structure of the Company. For more information, refer to the Company's Q2 2026 Management's Discussion and Analysis (MD&A).

	In-Quarter		Year-to-Date
	Q2 2026	Q2 2025	2026	2025
Segment base earnings^7
United States	$          458	$          341	$            888	$           706
Canada	341	375	693	691
Europe	266	262	539	501
Capital and Risk Solutions	310	229	610	442
Corporate	(105)	(58)	(221)	(161)
Total base earnings	$       1,270	$       1,149	$         2,509	$        2,179
Segment net earnings
United States	$          404	$          305	$            756	$           643
Canada	310	255	666	556
Europe	163	126	418	293
Capital and Risk Solutions	305	194	658	378
Corporate	(143)	14	(267)	(116)
Total net earnings	$       1,039	$          894	$         2,231	$        1,754

^7	This metric is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of the Q2 2026 MD&A for more details.

UNITED STATES

• Q2 U.S. segment base earnings of US$332 million ($458 million) and net earnings of US$293 million ($404 million) – Base earnings increased by US$85 million, or 34%, compared to the same quarter last year, primarily reflecting higher fee income driven by higher assets from strong markets, positive plan and Wealth net inflows offsetting participant outflows, lower credit-related impacts, and operating leverage in both Retirement and Wealth.

CANADA

• Q2 Canada segment base earnings of $341 million and net earnings of $310 million – Base earnings decreased by $34 million, or 9%, compared to the same quarter last year, primarily driven by moderated Group Benefits insurance experience, partially offset by strong Retirement and Wealth results from higher client assets due to strong markets.

EUROPE

• Q2 Europe segment base earnings of $266 million and net earnings of $163 million – Base earnings increased by $4 million, or 2%, compared to the same quarter last year, primarily due to favourable Group Benefits experience, higher expected insurance earnings, and favourable currency movements, partially offset by lower trading activity and lower expected investment earnings.

CAPITAL AND RISK SOLUTIONS

• Q2 Capital and Risk Solutions segment base earnings of $310 million and net earnings of $305 million – Base earnings increased by $81 million, or 35%, compared to the same quarter last year, primarily due to continued strength in Capital Solutions new business growth.

QUARTERLY DIVIDENDS

The Board of Directors (or Directors) approved a quarterly dividend of $0.67 per share on the common shares of Great West, payable September 29, 2026, to shareholders of record at the close of business September 1, 2026.

In addition, the Directors approved quarterly dividends on Great West's preferred shares, as follows:

First Preferred Shares	Amount, per share
Series G	$0.3250
Series H	$0.30313
Series I	$0.28125
Series L	$0.353125
Series M	$0.3625
Series N	$0.255625
Series P	$0.3375
Series Q	$0.321875
Series R	$0.3000
Series S	$0.328125
Series T	$0.321875
Series Y	$0.28125
Series Z	$0.35625
Series 24^8	$0.3904

^8	The initial dividend of the Series 24 preferred shares will be payable on September 30, 2026. Thereafter, dividends will be payable quarterly on the last day of March, June, September and December in each year at a rate of $0.35625 per share.

For purposes of the Income Tax Act (Canada), and any similar provincial legislation, the dividends referred to above are eligible dividends.

NCIB Share Purchases 

For the second quarter, the Company repurchased 4.4 million common shares for $336 million under the Company's normal course issuer bid (NCIB) program. Share repurchases are made subject to market conditions, the Company's ability to effect the purchases on a prudent basis, applicable laws and the availability of other strategic opportunities.

Great West has amended its NCIB to increase the maximum number of common shares that may be repurchased from 20,000,000 common shares to 40,000,000 common shares. The amendment is expected to become effective on or about July 31, 2026.

Under the amended NCIB, Great West may, from January 6, 2026 to January 5, 2027, purchase up to 40,000,000 common shares for cancellation, representing approximately 4.41% of its 907,158,331 common shares issued and outstanding as at December 23, 2025. Based on the average daily trading volume on the TSX of 1,989,988 common shares for the six months preceding November 30, 2025 (net of repurchases by Great West during that period), daily purchases are limited to 497,497 common shares, other than block purchase exceptions. Purchases under the NCIB are made at prevailing market prices through the facilities of the TSX, other designated exchanges and/or other alternative Canadian trading systems or by other means permitted by applicable law. Great West is also permitted to purchase its shares from Power Financial Corporation and certain of its wholly-owned subsidiaries (collectively, PFC) in connection with the NCIB pursuant to an automatic disposition plan, in order for PFC to approximately maintain its proportionate percentage ownership in the Company. As of July 23, 2026, an aggregate of 13,444,105 common shares have been purchased under the current NCIB.

Analysts' Estimates 

The average estimate of base earnings per share and net earnings per share for the quarter among the analysts who follow the Company was $1.37 and $1.28, respectively.

Q2 2026 Conference Call

Great West's second quarter conference call and audio webcast will be held on Wednesday, July 29, 2026 at 9:30 a.m. ET.

The live webcast of the call will be available at 2nd Quarter 2026 – Conference Call and Webcast or by calling 1-647-932-3411 or 1-800-715-9871 (toll-free in North America). To join the conference call without operator assistance, please register and provide your phone number here.

A replay of the call will be available on July 29, 2026 until August 5, 2026. To listen to the replay, call 1-647-362-9199 or 1-800-770-2030 (toll-free in North America), entry code 3667574.

Selected consolidated financial information is attached.

ABOUT GREAT WEST

Great West is a financial services holding company focused on building stronger, more financially secure futures. We operate in the United States, Canada and Europe under the brands Empower, Canada Life and Irish Life. Together we provide wealth, retirement, group benefits and insurance and risk solutions to our approximately 40 million customer relationships. As of June 30, 2026, Great West's total client assets were $3.7 trillion.

Great West trades on the Toronto Stock Exchange (TSX) under the ticker symbol GWO and is a member of the Power Corporation group of companies. To learn more, visit greatwestlifeco.com.

Basis of presentation
The condensed consolidated interim financial statements for the period ended June 30, 2026 of Great West, have been prepared in accordance with International Financial Reporting Standards (IFRS) Accounting Standards unless otherwise noted and are the basis for the figures presented in this release, unless otherwise noted.

Cautionary note regarding Forward-Looking Information
From time to time, Great West makes written and/or oral forward-looking statements within the meaning of applicable securities laws, including in this release. Forward-looking information includes statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "achieve", "ambition", "anticipate", "believe", "could", "estimate", "expect", "initiatives", "intend", "may", "objective", "opportunity", "plan", "potential", "project", "target", "will" and other similar expressions or negative versions of those words. Forward-looking information includes, without limitation, statements about the Company and its operations, business (including business mix), financial condition, expected financial performance (including revenues, earnings or growth rates and medium-term financial objectives), strategies and prospects, expected costs and benefits of acquisitions and divestitures (including timing of integration activities and timing and extent of revenue and expense synergies), the timing and extent of expected transformation charges and related expected run-rate base earnings savings, expected expenditures or investments (including but not limited to investment in technology infrastructure and digital capabilities and solutions and investments in strategic partnerships), value creation and realization and growth opportunities, product and service innovation, expected dividend levels, expected cost reductions and savings, expected capital management activities and use of capital, market position, estimates of risk sensitivities affecting capital adequacy ratios, estimates of financial risk sensitivities (including as a result of current market conditions), expected credit experience, anticipated global economic conditions, potential impacts of catastrophe events, potential impacts of geopolitical events and conflicts and the impact of regulatory developments (including changes to laws and government policies) on the Company's business strategy, growth objectives and capital.

Forward-looking statements are based on expectations, forecasts, estimates, predictions, projections and conclusions about future events that were current at the time of the statements and are inherently subject to, among other things, risks, uncertainties and assumptions about the Company, economic factors and the financial services industry generally, including the insurance, wealth and retirement solutions industries. They are not guarantees of future performance, and actual events and results could differ materially from those expressed or implied by forward-looking statements. Many of these assumptions are based on factors and events that are not within the control of the Company and there is no assurance that they will prove to be correct.

With respect to the proposed acquisition of Milliman's retirement plan and benefits administration business, management's expectations are subject to: (a) the timing and completion of the proposed acquisition; (b) the expected costs and benefits of the proposed acquisition, including the timing and cost of integration activities, the timing and extent of expected cost efficiencies and synergies, increased scale, capabilities and marketing of Empower, revenue diversification, value creation/realization and growth opportunities, product and service innovation, and improved client outcomes; (c) the impacts of the proposed acquisition on Great West's and Empower's financial condition and flexibility, including the expected internal rate of return of the proposed acquisition and expected base earnings accretion resulting from the proposed acquisition; and (d) the business and financial condition of Great West, Empower and the acquisition business and the U.S. retirement and benefits industry generally.

In all cases, whether or not actual results differ from forward-looking information may depend on numerous factors, developments and assumptions, including, without limitation, the ability to integrate and leverage acquisitions and achieve anticipated benefits and synergies, the achievement of expense synergies and client retention targets from the acquisition of the Prudential retirement business, the Company's ability to execute strategic plans and adapt or recalibrate these plans as needed, the Company's reputation, business competition, assumptions around sales, pricing, fee rates, customer behaviour (including contributions, redemptions, withdrawals and lapse rates), mortality and morbidity experience, expense levels, reinsurance arrangements, global equity and capital markets (including continued access to equity and debt markets and credit instruments on economically feasible terms), geopolitical tensions and related economic impacts, interest and foreign exchange rates, inflation levels, liquidity requirements, investment values and asset breakdowns, hedging activities, financial condition of industry sectors and individual issuers that comprise part of the Company's investment portfolio, credit ratings, taxes, impairments of goodwill and other intangible assets, technological changes, including use of emerging technologies, such as artificial intelligence (AI), in our business, breaches or failure of information systems and security (including cyber attacks), assumptions around third-party suppliers, changes in local and international laws and regulations, changes in accounting policies and the effect of applying future accounting policy changes, changes in actuarial standards, unexpected judicial or regulatory proceedings, catastrophic events, continuity and availability of personnel and third-party service providers, unplanned changes to the Company's facilities, customer and employee relations, levels of administrative and operational efficiencies, and other general economic, political and market factors in North America and internationally.

The above list is not exhaustive, and there may be other factors listed in the Company's filings with securities regulators, including those set out in the "Risk Management" and "Summary of Critical Accounting Estimates" sections of the Company's 2025 Annual MD&A and in the Company's annual information form dated February 11, 2026 under "Risk Factors". These, along with other filings, are available for review at www.sedarplus.ca. The reader is cautioned to consider these and other factors, uncertainties and potential events carefully and not to place undue reliance on forward-looking information.

Other than as specifically required by applicable law, the Company does not intend to update any forward-looking information whether as a result of new information, future events or otherwise.

Cautionary note regarding Non-GAAP Financial Measures and Ratios
This release contains some non-Generally Accepted Accounting Principles (GAAP) financial measures and non-GAAP ratios as defined in National Instrument 52-112 "Non-GAAP and Other Financial Measures Disclosure". Terms by which non-GAAP financial measures are identified include, but are not limited to, "base earnings (loss)", "base earnings (loss) (US$)", "base earnings (loss) - pre-tax", "base earnings: insurance service result", "base earnings: net investment result", "assets under management or advisement", "assets under administration", "client assets", "non-par base operating and administration expenses", and "run-rate insurance results". Terms by which non-GAAP ratios are identified include, but are not limited to, "base earnings per common share (EPS)", "base return on equity (ROE)", "base dividend payout ratio", "base capital generation", "efficiency ratio", "effective income tax rate – base earnings – common shareholders" and "pre-tax base operating margin". Non-GAAP financial measures and ratios are used to provide management and investors with additional measures of performance to help assess results where no comparable GAAP (IFRS Accounting Standards) measure exists. However, non-GAAP financial measures and ratios do not have standard meanings prescribed by GAAP (IFRS Accounting Standards) and are not directly comparable to similar measures used by other companies. Refer to the "Non-GAAP Financial Measures and Ratios" section in this release for the appropriate reconciliations of these non-GAAP financial measures to measures prescribed by GAAP as well as additional details on each measure and ratio.

FINANCIAL HIGHLIGHTS (unaudited)

Selected consolidated financial Information
(in Canadian $ millions, except per share amounts)	Q2-2026	Q2-2025	% Change		YTD-2026	YTD-2025	% Change
Base earnings^1	$       1,270	$       1,149	11 %		$        2,509	$        2,179	15 %
Net earnings - common shareholders	1,039	894	16 %		2,231	1,754	27 %
Per share metrics
Basic - Base earnings^2	1.42	1.24	15 %		2.79	2.35	19 %
Basic - Net earnings - common shareholders	1.16	0.96	20 %		2.48	1.89	31 %
Dividends paid	0.670	0.610	10 %		1.340	1.220	10 %
Book value^3	29.85	27.38	9 %		29.85	27.38	9 %
Base dividend payout ratio^2	47.3 %	49.2 %
Dividend payout ratio^3	57.8 %	63.5 %
Efficiency ratio^2	54.1 %	56.7 %
Base return on equity^2	19.3 %	17.4 %
Return on equity^3	17.2 %	14.9 %

As at		June 30, 2026	December 31, 2025	% Change
Total assets		$         946,011	$         862,828	10 %
Total assets under management or advisement^1		1,278,162	1,136,256	12 %
Total assets under administration only^3		2,432,839	2,181,321	12 %
Total client assets^1		3,711,001	3,317,577	12 %
Total assets under administration^1		3,947,586	3,548,965	11 %
Total contractual service margin^3 (net of reinsurance contracts held)		13,542	13,530	-- %
Total equity		34,602	33,003	5 %
Canada Life consolidated Life Insurance Capital Adequacy Test (LICAT) Ratio^4		128 %	128 %	0 bps
Financial leverage ratio^2		27 %	28 %	-100 bps

^1	This metric is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details.
^2	This metric is a non-GAAP ratio. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details.
^3	Refer to the "Glossary" section of the Company's second quarter of 2026 Interim MD&A for additional details on the composition of this measure.
^4	LICAT Ratio is based on the consolidated results of The Canada Life Assurance Company, Great West's major Canadian operating subsidiary. The LICAT Ratio is calculated in accordance with the Office of Superintendent of Financial Institutions' guideline - Life Insurance Capital Adequacy Test. Refer to the "Capital Management and Adequacy" section of the Company's second quarter of 2026 Interim MD&A for additional details.

BASE AND NET EARNINGS

For a further description of base earnings, refer to the "Non-GAAP Financial Measures and Ratios" section of this document and the Company's second quarter of 2026 Interim Management's Discussion and Analysis.

Base earnings^1 and net earnings - common shareholders by segment
	Q2-2026	Q2-2025	% Change		YTD-2026	YTD-2025	% Change
Base earnings (loss)^1
United States	$           458	$           341	34 %		$          888	$          706	26 %
Canada	341	375	(9) %		693	691	-- %
Europe	266	262	2 %		539	501	8 %
Capital and Risk Solutions	310	229	35 %		610	442	38 %
Corporate	(105)	(58)	(81) %		(221)	(161)	(37) %
Great West base earnings^1	$        1,270	$        1,149	11 %		$       2,509	$       2,179	15 %
Items excluded from base earnings
Market experience relative to expectations^2	$          (168)	$          (104)	(62) %		$         (152)	$         (195)	22 %
Assumption changes and management actions^2	(23)	(3)	<(100)%		(20)	(35)	43 %
Business transformation and other impacts^2	(6)	(121)	95 %		(38)	(131)	71 %
Amortization of acquisition-related finite life intangibles	(34)	(38)	11 %		(68)	(75)	9 %
Tax legislative changes and other tax impacts	--	11	nmf		--	11	nmf
Items excluded from Great West base earnings	$          (231)	$          (255)	9 %		$         (278)	$         (425)	35 %
Net earnings (loss) - common shareholders
United States	$           404	$           305	32 %		$          756	$          643	18 %
Canada	310	255	22 %		666	556	20 %
Europe	163	126	29 %		418	293	43 %
Capital and Risk Solutions	305	194	57 %		658	378	74 %
Corporate	(143)	14	nmf		(267)	(116)	<(100)%
Great West net earnings - common shareholders	$        1,039	$           894	16 %		$       2,231	$       1,754	27 %

^1	This metric is a non-GAAP financial measure. Refer to the "Non-GAAP Financial Measures and Ratios" section of this document for additional details.
^2	Refer to the "Glossary" section of the Company's second quarter of 2026 Interim MD&A for additional details on the composition of this measure.

NON-GAAP FINANCIAL MEASURES AND RATIOS
Non-GAAP Financial Measures
The Company uses several non-GAAP financial measures to measure overall performance of the Company and to assess each of its business units. A financial measure is considered a non-GAAP measure for Canadian securities law purposes if it is presented other than in accordance with generally accepted accounting principles (GAAP) used for the Company's consolidated financial statements. The consolidated financial statements of the Company have been prepared in compliance with IFRS Accounting Standards as issued by the IASB. Non-GAAP financial measures do not have a standardized meaning under GAAP and may not be comparable to similar financial measures presented by other issuers. Investors may find these financial measures useful in understanding how management views the underlying business performance of the Company.

Base earnings (loss)
Base earnings (loss) reflect management's view of the underlying business performance of the Company and provides an alternate measure to understand the underlying business performance compared to net earnings.

Base earnings (loss) exclude the following items from net earnings:

• Market-related impacts, where actual market returns in the current period are different than longer-term expected returns;
• Assumption changes and management actions that impact the measurement of assets and liabilities;
• Business transformation and other impacts, when removed, assist in explaining the Company's underlying business performance, including acquisition and divestiture costs and restructuring and integration costs;
• Material legal settlements, material impairment charges related to goodwill and intangible assets, impacts of income tax rate changes on the remeasurement of deferred tax assets and liabilities and other tax impairments, net gains, losses or costs related to the disposition or acquisition of a business; net earnings (loss) from discontinued operations;
• The direct equity and interest rate impacts on the measurement of surplus assets and liabilities;
• Amortization of acquisition related finite life intangible assets; and
• Other items that, when removed, assist in explaining the Company's underlying business performance.

	Q2-2026
	U.S.	Canada	Europe	CRS	Corporate	Great West
Base earnings (loss)	$        458	$        341	$        266	$        310	$       (105)	$        1,270
Items excluded from base earnings (loss)
Market experience relative to expectations (pre-tax)	(25)	(39)	(100)	(9)	(49)	(222)
Income tax (expense) benefit	7	15	16	4	12	54
Assumption changes and management actions (pre-tax)	--	2	(27)	--	--	(25)
Income tax (expense) benefit	--	(1)	3	--	--	2
Business transformation and other impacts (pre-tax)	(14)	(5)	10	--	--	(9)
Income tax (expense) benefit	3	2	(2)	--	--	3
Amortization of acquisition-related finite life intangibles (pre-tax)	(33)	(8)	(4)	--	(2)	(47)
Income tax (expense) benefit	8	3	1	--	1	13
Tax legislative changes and other tax impacts (pre-tax)	--	--	--	--	--	--
Income tax (expense) benefit	--	--	--	--	--	--
Net earnings (loss) - common shareholders	$        404	$        310	$        163	$        305	$       (143)	$        1,039

	Q2-2025
	U.S.	Canada	Europe	CRS	Corporate	Great West
Base earnings (loss)	$        341	$        375	$        262	$        229	$         (58)	$        1,149
Items excluded from base earnings (loss)
Market experience relative to expectations (pre-tax)	(3)	44	(139)	(31)	13	(116)
Income tax (expense) benefit	--	(19)	29	4	(2)	12
Assumption changes and management actions (pre-tax)	--	(1)	(1)	(3)	--	(5)
Income tax (expense) benefit	--	--	1	1	--	2
Business transformation and other impacts (pre-tax)	(9)	(192)	(42)	(9)	71	(181)
Income tax (expense) benefit	3	53	10	3	(9)	60
Amortization of acquisition-related finite life intangibles (pre-tax)	(36)	(7)	(6)	--	(2)	(51)
Income tax (expense) benefit	9	2	1	--	1	13
Tax legislative changes and other tax impacts (pre-tax)	--	--	--	--	--	--
Income tax (expense) benefit	--	--	11	--	--	11
Net earnings (loss) - common shareholders	$        305	$        255	$        126	$        194	$           14	$           894

	YTD-2026
	U.S.	Canada	Europe	CRS	Corporate	Great West
Base earnings (loss)	$        888	$        693	$         539	$        610	$       (221)	$        2,509
Items excluded from base earnings (loss)
Market experience relative to expectations (pre-tax)	(74)	(24)	(84)	24	(34)	(192)
Income tax (expense) benefit	18	11	8	(6)	9	40
Assumption changes and management actions (pre-tax)	--	(2)	(34)	38	(26)	(24)
Income tax (expense) benefit	--	--	5	(8)	7	4
Business transformation and other impacts (pre-tax)	(34)	(3)	(14)	--	--	(51)
Income tax (expense) benefit	8	1	4	--	--	13
Amortization of acquisition-related finite life intangibles (pre-tax)	(66)	(15)	(8)	--	(3)	(92)
Income tax (expense) benefit	16	5	2	--	1	24
Tax legislative changes and other tax impacts (pre-tax)	--	--	5	--	--	5
Income tax (expense) benefit	--	--	(5)	--	--	(5)
Net earnings (loss) - common shareholders	$        756	$        666	$         418	$        658	$       (267)	$        2,231

	YTD-2025
	U.S.	Canada	Europe	CRS	Corporate	Great West
Base earnings (loss)	$         706	$         691	$         501	$        442	$       (161)	$        2,179
Items excluded from base earnings (loss)
Market experience relative to expectations (pre-tax)	(1)	35	(186)	(66)	(11)	(229)
Income tax (expense) benefit	--	(20)	40	11	3	34
Assumption changes and management actions (pre-tax)	--	(1)	(33)	(4)	(9)	(47)
Income tax (expense) benefit	--	--	9	1	2	12
Business transformation and other impacts (pre-tax)	(10)	(194)	(52)	(9)	71	(194)
Income tax (expense) benefit	3	54	12	3	(9)	63
Amortization of acquisition-related finite life intangibles (pre-tax)	(74)	(13)	(11)	--	(4)	(102)
Income tax (expense) benefit	19	4	2	--	2	27
Tax legislative changes and other tax impacts (pre-tax)	--	--	--	--	--	--
Income tax (expense) benefit	--	--	11	--	--	11
Net earnings (loss) - common shareholders	$         643	$         556	$         293	$        378	$       (116)	$        1,754

Assets under administration (AUA), assets under management or advisement (AUMA), assets under administration only (AUAO) and client assets
Assets under administration, assets under management or advisement and client assets are non-GAAP financial measures. These measures provide an indication of the size and volume of the Company's overall business. Administrative services are an important aspect of the overall business of the Company and should be considered when comparing volumes, size and trends.

Total assets under administration includes assets under management or advisement (AUMA), assets under administration only (AUAO), the total of which is total client assets, and other balance sheet assets.

Client assets represents the total client assets under management or advisement plus assets under administration only for the Company's Retirement and Wealth lines of business.

Client assets are classified as AUMA where the Company earns a fee for one or more of the following services: investment management services for proprietary funds or institutional assets, discretionary portfolio management on behalf of clients, and/or the provision of financial advice. AUMA relate to the Company's Retirement and Wealth lines of business only.

Refer to the "Glossary" section of the Company's second quarter of 2026 Interim MD&A for the definition of AUAO.

Other balance sheet assets include insurance contract assets, reinsurance contract assets, goodwill and intangible assets, other assets, as well as the portion of invested assets and investments on account of segregated fund policyholders not included within total client assets.

Great West^1
As at	June 30, 2026	December 31, 2025
Assets under administration
Assets under management or advisement	$        1,278,162	1,136,256
Assets under administration only^2	2,432,839	2,181,321
Total client assets	$        3,711,001	3,317,577
Other assets on balance sheet	236,585	231,388
Total assets under administration	$        3,947,586	3,548,965
of which: Total balance sheet assets	946,011	862,828
of which: Invested assets	257,830	250,051

^1	Total Great West assets under administration includes assets under management related to PanAgora included in the Corporate segment.
^2	Refer to the "Glossary" section of the Company's second quarter of 2026 Interim MD&A for additional details on the composition of this measure.

Pre-tax operating income
This measure represents base earnings before financing costs, tax, depreciation and amortization for Lifeco's Retirement and Wealth lines of business. It assists in explaining our results from period to period and measures profitability. There is no directly comparable measure under IFRS so it is not possible to provide a reconciliation to the most directly comparable IFRS metric.

NON-GAAP RATIOS
A non-GAAP ratio is a financial measure in the form of a ratio, fraction, percentage or similar representation that is not disclosed in the financial statements of the Company and has a non-GAAP financial measure as one or more of its components. These financial measures do not have a standardized definition under IFRS Accounting Standards and might not be comparable to similar financial measures disclosed by other issuers.

The non-GAAP ratios disclosed by the Company each use base earnings (loss) as the non-GAAP component. Base earnings (loss) reflect management's view of the underlying business performance of the Company and provides an alternate measure to understand the underlying business performance compared to net earnings.

• Base dividend payout ratio - Dividends paid to common shareholders are divided by base earnings (loss).
• Base earnings per share - Base earnings (loss) for the period is divided by the number of average common shares outstanding for the period.
• Base return on equity - Base earnings (loss) for the trailing four quarters are divided by the average common shareholders' equity over the trailing four quarters. This measure provides an indicator of business unit profitability.
• Efficiency ratio - Calculated on a trailing four quarter basis as pre-tax non-par base operating and administrative expenses divided by the sum of pre-tax base earnings and pre-tax non-par base operating and administrative expenses.
• Pre-tax base operating margin - Pre-tax operating earnings expressed as a percentage of fee and spread income.

SOURCE Great-West Lifeco Inc.

For more information: Investor & Media Relations: Shubha Khan, 416-552-5951, [email protected]