Here’s a bold statement: Canada Life Reinsurance just shattered expectations with a staggering 20% surge in base earnings to $265 million for 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 skyrocketed to $280 million, a jaw-dropping leap from the $19 million reported in the same period 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 surged by 45% to $658 million. This growth isn’t just a blip—it’s a trend. For the nine-month period ending in 2025, total base earnings hit $3.404 billion, up from $3.077 billion in 2024, and net earnings rose to $2.912 billion from $2.824 billion.
Canada Life Re’s performance wasn’t just a win for itself—it significantly bolstered Great-West Lifeco’s overall results. The Group reported total base earnings of $1.225 billion and net earnings of $1.158 billion for Q3’25, compared to $1.061 billion and $859 million, respectively, in Q3’24. Here’s a thought-provoking question: As Canada Life Re continues to outperform, how will this impact the broader reinsurance landscape?
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.”
But here’s the counterpoint: While the numbers are undeniably impressive, could this rapid growth expose the company to unforeseen risks? Or is this just the beginning of a new era for Canada Life Re? We’d love to hear your thoughts in the comments—do you see this growth as sustainable, or are there hidden challenges on the horizon?
