Q1 2026 Financial Performance of Major Canadian Insurance Companies

Canadian insurance powerhouses Sun Life Financial, Great-West Lifeco, Empire Life, and iA Financial have unveiled their financial performance for the first quarter of 2026.

Sun Life Financial reported an underlying net income of CA$1.05 billion for Q1 2026, slightly surpassing the prior year's earnings. This growth was largely driven by an expansion in its protection business, which counterbalanced weaker asset management returns and rising financing costs. The underlying earnings per share (EPS) saw a 4% increase to CA$1.89, while the return on equity (ROE) improved to 18.6%. Additionally, assets under management reached CA$1.575 trillion, growing by CA$23 billion year-over-year, supported by strong individual insurance sales in Asia. Despite a decrease in its LICAT ratio to 143%, Sun Life declared a dividend increase and a plan to renew a share buyback initiative.

Great-West Lifeco reported a significant boost in base earnings, recording CA$1.24 billion, a 20% increase from the previous year. Base EPS surged 23% to CA$1.37, and the base ROE achieved 19.1%, exceeding its strategic target. This growth was attributed to the expansion in retirement and wealth sectors, particularly driven by Empower in the US. The company’s LICAT ratio stood at 129%, reflecting its solid capital management approach.

Empire Life faced a challenging quarter with a net income of CA$6 million, a drop from the previous year's CA$70 million, due to less favorable market conditions. However, Empire Life maintained a robust capital position, with a LICAT total ratio of 150%, offering a strong buffer over regulatory requirements. The management underscored the company's strategic approach to managing market fluctuations, aiming to maintain shareholder returns despite income volatility.

iA Financial Group reported a 12% rise in core diluted EPS to CA$3.25 for the first quarter of 2026, with core earnings increasing to CA$298 million. The core ROE improved to 17.5% over the trailing 12 months, showcasing strong performance across diverse business lines and distribution channels. Notably, there was a 5% increase in individual insurance policies issued and record sales in segregated funds. The group’s solvency ratio improved to 134%, reflecting strong capital management, while assets under management surged to CA$346.1 billion.