Great-West Lifeco Inc

GWO: XTSE (CAN)
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Morningstar Rating for Stocks Fair Value Economic Moat Capital Allocation
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Empower Is a Strong Growth Driver for Great-West's Fee Businesses

Business Strategy and Outlook

Great-West Lifeco is one of the Big Three Canadian life insurers that collectively represent about 80% of the nation’s life insurance premiums. The firm has a strong market position domestically in various life insurance markets and group retirement plans. Of the three, we believe that Great-West Lifeco is the best run, with higher and more-stable returns on equity due to its disciplined underwriting strategy and solid expense control. Given the maturity of the insurance industry in the company's main markets in Canada, the US, the UK, and Ireland, we believe that growth will remain modest in the long run.

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