Great-West Lifeco Inc. hosted its Investor Day in Toronto on Wednesday, offering a strategic overview of the company’s portfolio and providing updates on its financial objectives.
The event, themed “Driving Growth, Delivering Lasting Value,” highlighted the company’s plans to strengthen its franchises and create long-term value for shareholders.
During the event, the company outlined key updates to its medium-term financial goals. Great-West Lifeco raised its base return on equity (ROE) target to 19%+, up from the previous range of 16-17%. The company also introduced a new base capital generation target of 80%+, while maintaining its goals for base EPS growth of 8-10% and a base dividend payout ratio of 45-55%.
“At Great-West Lifeco, we’re driving growth and delivering lasting value for our shareholders,” said Paul Mahon (pictured above), president and CEO of Great-West. "We're doing this with leadership positions in each of our businesses, focused strategies to deliver for our customers, and supported by strong cash and capital generation. Today’s update demonstrates our confidence in the future of our business, which is why we've updated our medium-term financial objectives."
The company said its Investor Day signals its ongoing focus on growth, profitability and adapting to market shifts while maintaining its position as a leader in the global financial services industry.
Great-West Lifeco operates through its subsidiaries, including Great-West Life, London Life and Canada Life, as well as various operations in the US, Europe and the UK. The company provides a wide range of insurance, investment and retirement solutions.
In February, the company posted Q4 base earnings of $1.12 billion, up from $971 million a year ago. This marked the company’s third consecutive quarter of recorded base earnings exceeding $1 billion. The increase was attributed to higher net fee and spread income across all segments.
Meanwhile, the company’s board also declared a quarterly dividend of $0.61 per share, payable March 31 to shareholders of record on March 3. It also plans to repurchase $500 million in shares under its current normal course issuer bid.
The company also said it continues to strengthen its position in the growing digital wealth management sector. The company has also emphasized its commitment to sustainability, with an increasing focus on environmental, social and governance (ESG) factors in its operations and investments.
