Here’s a bold statement: Canada Life Reinsurance just shattered expectations with a staggering 20% surge in base earnings, hitting $265 million in Q3’25. But here’s where it gets controversial—while the numbers look impressive, could this growth be sustainable in the long term? Let’s dive in.
Canada Life Re, the reinsurance arm of Great-West Lifeco specializing in Capital and Risk Solutions (CRS), delivered a standout performance in the third quarter of 2025. Beyond the 20% year-over-year jump in base earnings, the company’s net earnings soared to $280 million, a dramatic leap from the $19 million reported in the same quarter last year. And this is the part most people miss—what’s driving this remarkable turnaround?
The company credits its success to two key factors: a robust influx of new business in Capital Solutions and a surprisingly favorable claims experience in Risk Solutions. These elements not only boosted earnings but also kept the segment’s base return on equity at an impressive 41%, surpassing the already high benchmark of 40%.
Year-to-date, the momentum is undeniable. Base earnings climbed to $707 million, up from $624 million the previous year, while net earnings spiked by 45% to $658 million. This growth isn’t just a win for Canada Life Re—it’s a significant contributor to Great-West Lifeco’s overall success. The Group reported total base earnings of $1.225 billion and net earnings of $1.158 billion for Q3’25, outpacing Q3’24’s figures of $1.061 billion and $859 million, respectively.
Over the first nine months of 2025, the trend continues. Total base earnings reached $3.404 billion, up from $3.077 billion in 2024, while net earnings climbed to $2.912 billion from $2.824 billion. Here’s a thought-provoking question—is this growth a result of strategic brilliance, favorable market conditions, or a combination of both? What do you think?
Jeff Poulin, CEO of Canada Life Re, expressed gratitude and pride in his team’s achievements. “This success is a testament to the dedication and expertise of our team, and to the trust and partnership we continue to build with our valued clients,” he said. “Your confidence in us fuels our momentum, and we are deeply grateful for the opportunity to collaborate with you. I remain proud to lead such an outstanding group of professionals at Canada Life Reinsurance. Together, we are shaping a resilient and forward-looking future.”
Bold interpretation—while the numbers are undeniably impressive, the real test will be maintaining this growth in an ever-changing market. What’s your take? Do you see this as a sustainable trend or a temporary peak? Share your thoughts in the comments—let’s spark a conversation!
