Great-West Lifeco reported its fourth-quarter 2024 financial results, highlighting record earnings and ongoing strategic initiatives.
The company reported Q4 base earnings of $1.12 billion, up 15% from $971 million a year earlier. This was the third consecutive quarter where Great-West recorded base earnings exceeding $1 billion.
The increase was attributed to higher net fee and spread income across all segments, business growth and favorable equity markets, partially offset by the impact of the Global Minimum Tax in the Capital and Risk Solutions and Europe segments.
Organic growth in Workplace Solutions in Canada and higher contractual service margin recognized in Europe also contributed, the company said. Meanwhile, offsetting factors included lower individual insurance experience, reduced earnings on surplus in Canada, and property catastrophe impacts in 2023 that did not recur in 2024.
“Great-West Lifeco delivered record results in 2024, with strong momentum across segments, positioning the Company for continued growth in 2025 and beyond,” said Paul Mahon, president and chief executive officer of Great-West Lifeco.
The company maintained a strong capital position, with a LICAT ratio of 130%, up two points from the previous year, and cash holdings increasing by $1.6 billion in 2024. The company estimated a maximum possible loss of $100 million after tax from property catastrophe retrocession contracts related to the January 2025 wildfires in California but did not anticipate reaching this level of claims.
Meanwhile, Great-West Lifeco’s board has approved a quarterly dividend of $0.61 per share, payable March 31 to shareholders of record on March 3.
The company also plans to repurchase $500 million in shares under its current Normal Course Issuer Bid, subject to market conditions and other strategic considerations.
Mahon said the 10% increase in the company’s dividend and plans to repurchase additional common shares reflect Great-West Lifeco’s earnings momentum and shareholder value.
