$GWO.TO

Great-West Lifeco Announces $150 Million Preferred Share Offering

Great-West Lifeco (GWO.TO) on Monday said it intends to raise $150 million through a preferred share offering.The company will issue 6.0-million non-cumulative first preferred shares, series 24, at $25.00 apiece. The shares will yield 5.70% per year.The underwriters have also been granted an over-allotment option of up to an additional 2.0-million series 24 shares at the same price. If this option is exercised in full, the total process of the offering will be $200 million, a statement said.Proceeds will be used for general corporate purposes. The offering is expected to close on June 22.Great-West shares were last seen up $1.13, to $84.52, on the Toronto Stock Exchange.Price: $84.53, Change: $+1.14, Percent Change: +1.37%

Canadian Life Companies Split Corp. At The Market Equity Program Renewed

CIBC Reviews Canadian Lifecos' Q1, Says Results "a Little Disappointing", Updates Price Targets on Group

The Canadian lifecos' first-quarter results were "a little disappointing", writes CIBC analyst Paul Holden, with Great-West Lifeco (GWO.TO) the only name to beat consensus EPS. Holden also updated his price targets on the shares of the group.Three lifecos experienced significant negative reactions on the day of their results (Manulife, Sun Life and iA Financial). 2027 consensus EPS for the three stocks did not change that much (-0.3% on average), but multiples declined to reflect lower earnings visibility."While there were clear weaknesses in the results for each of these three names, the overall outcome was not as bad as it initially appeared. EPS was up 8% Y/Y on average and ROE was up 90bps. Buying on weakness is a good call," Holden adds.He still recommends lifecos over banks, pointing out the expected insurance earnings increased by 9% Y/Y on average. Earnings are expected to benefit from the move in equity markets post quarter-end, while lifecos also tend to benefit from higher inflation and interest rates. P/E multiples also remain at a 15% discount to the banks.Great-West and Manulife Financial (MFC.TO)are Holden's two outperformer names. Great-West does not have any meaningful challenges that need to be addressed and there is room for EPS upside, including from a potential acquisition. He has raised his price target on the shares by $6.00 to $81.00.Asia is producing exceptional growth for Manulife, and GWAM earnings are also expected to see a big rebound in the second quarter along with U.S. insurance experience, which is off to a good start in 2026. ROE is on track for 18% in 2027, implying ~5% upside to consensus EPS, Holden calculates. Manulife is also trading at the biggest discount in the group (9%). "We believe this is the stock to buy between quarters." Manulife price target has also been raised to $61.00 from $58.00.CIBC is maintaining a neutral rating on both Sun Life (SLF.TO) and iA Financial (IAG.TO). The price target on the shares of Sun Life has been raised by $7.00 to $102.00, while iA Financial share price target has been lowered to $180.00 from $184.00.Price: $78.76, Change: $+0.61, Percent Change: +0.78%

Power Corporation of Canada, Great-West Lifeco and IGM Financial Announce Joint Investment in Sagard AI Fund

Power Corporation of Canada (POW.TO), Great-West Lifeco Inc (GWO.TO) and IGM Financial Inc (IGM.TO) on Wednesday announced a combined US$150 million investment in the newly established Sagard AI Fund LP.The Fund is a closed-end investment vehicle focused on backing "leading" artificial intelligence companies that are accelerating the adoption of AI across financial services and other key sectors globally, stated the companies."This investment forms part of a broader approach across the Power group to engage early and meaningfully with AI as a foundational technology - supporting long term growth, productivity gains, talent development, and enhanced client and advisor experiences," the statement noted.Power Corporation of Canada's shares were last seen up C$0.75 at C$81.40, Great-West Lifeco's shares were last seen up C$0.51 at C$78.66 and IGM Financial's shares were last seen up C$0.76 at C$78.23, on the Toronto Stock Exchange.Price: $81.16, Change: $+0.51, Percent Change: +0.63%

Power Corporation, Great West and IGM Financial Announcing Joint Investment in Sagard AI Fund

Great-West Lifeco Price Target Raised to $73.00 at National Bank Following Q1 Results

National Bank raised its price target on the shares of Great-West Lifeco (GWO.TO) to C$73.00, from C$65.00, and reiterated its sector-perform rating, after it reported an earnings beat.The company's stronger than expected results unexpectedly came from experience gains in the reinsurance segment, writes analyst Gabriel Dechaine."While this line item is inherently volatile, we view the quarter overall as a positive one," he writes.Highlights included strong earnings growth (and positive net inflows) at both Empower Retirement and Wealth, Dechaine notes, while messaging on share buybacks suggests a similar level of activity this year as last year.Price: $76.16, Change: $+3.30, Percent Change: +4.53%

Sun Life Financial and Great-West Lifeco Price Targets Raised at TD

TD Securities raised its price targets on Sun Life Financial Inc. (SLF.TO) to $107 from $102, and on Great-West Lifeco Inc. (GWO.TO) to $80 from $73, respectively, on Thursday.Analyst Mario Mendonca maintained a Buy rating on both Canadian financial service and insurance companies following their quarterly results."SLF beat our estimate on stronger US and Asian results," Mendonca said in a note to clients. "Pricing actions and reserving point to better US results in 2026.""While MFS margins remain healthy, outflows remain elevated," the analyst said. "Asia sales and earnings remain healthy.""We characterize GWO's Q1/26 results as the strongest among the large insurers so far," Mendonca said."Solid growth in the US Retirement & Wealth earnings (margins) and better flows in Retirement (slightly softer net flows in Wealth), accelerating growth in Capital Solutions and a nearly 20% ROE in the quarter support this characterization."

Earnings Flash (GWO.TO) Great-West Lifeco Base Earnings Increased 20% to $1.2B, and 23% to $1.37 Per Share, from Q1 2025

Great West Lifeco Remains Top Pick in CIBC Q1 LIfecos Preview

CIBC Capital Markets expects Canadian life insurers to post double-digit year over year earnings per share growth on average.Great West Lifeco (GWO.TO) remains top pick. Analyst Paul Holden expects the company to post the highest Y/Y EPS growth in the first quarter (19%). There is potential upside from a number of growth levers at Empower and a strong demand backdrop for capital solutions, he adds. An Empower bolt-on acquisition is a potential catalyst with estimated EPS accretion of ~6%. The stock is trading at a 6% premium to the group average on P/E, consistent with the historical premium.Manulife (MFC.TO) is another outperformer. Holden is looking for a better quarter from the company, noting that Manulife printed strong headline results last quarter but disappointed the Street on some KPIs. "We look for an improvement in U.S. insurance experience, Asia APE sales and GWAM net flows as potential upside drivers."Holden also wants to see double-digit EPS growth and continued progress towards the 2027 18% ROE objective. Manulife is trading at a 5% discount to the group average P/E and recent history suggests an in-line multiple is possible, he adds.CIBC lifted its Q1 EPS estimates for Great West Lifeco by 2%, Manulife and Sun Life by 1% each due to FX and company-specific factors, and decreased the estimate for iA Financial (IAG.TO) by 5% due to seasonality for U.S. dealer services and auto finance."As a group the stocks have not traded all that great YTD (+2.8% on average), and the discount to the banks on P/E now stands at 15% (five-year average is 11%)," Holden writes. He favors lifecos over banks given the valuation discount and strong fundamentals.Price: $70.45, Change: $+1.18, Percent Change: +1.70%