TSE:GWO

Great West Lifeco (GWO.TO)

89.28
+0.39 (0.44%)
as of Jun 25, 2026, 5:11:13 pm Market Open.
417 watching
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Investor Insights
star iconJun 25, 2026, 12:00 am

This summary was created by AI, based on 7 opinions in the last 12 months.

Great West Lifeco (GWO) is regarded as a strong player in the insurance sector, characterized by stable earnings and relatively low valuations. The consensus among analysts highlights its solid dividend yield, which varies between 3.5% and 5%, and the potential for future increases in dividends, making it an attractive investment option. Despite some analysts noting it is currently trading at a high valuation relative to its growth profile, there is a general belief that it presents a good buying opportunity given its strong fundamentals. Comparisons with other financial stocks like Manulife Financial (MFC) suggest that while GWO has a lower beta, indicating less volatility, it still offers good quality assets and steady earnings growth. Overall, GWO is viewed positively, though some experts suggest waiting for a better entry point before buying.

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Consensus
Buy
valuation icon
Valuation
Overvalued
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Similar
MFC
COMMENT

All lifecos have underperformed. GWL has great assets in Canada, but Putnam Investments in the U.S. has been a drag on them. That said, lifecos are steady and will benefit from rising interest rates. She prefers others in this space.

WAIT

He owns Prudential instead. Should be a terrific time to own an insurer, but it’s not. Flattening yield curve is hurting them. Would wait to see movement in the long rates before buying. US should kick rates higher, which should help. Own the banks, which automatically benefit from growth.

DON'T BUY

He likes the lifecos now, because interest rates are rising. He owns other insurers instead. They've had problems after buying Puttnam Investments; maybe that's turning around now. It's always looked expensive against its peers, yet he doesn't see the same level of growth.

BUY ON WEAKNESS

A sideways pattern where you buy around $32 and sell near $37.

DON'T BUY

You expect all lifecos to do well on a rising interest rate environment. It is surprising that we haven’t had the big trade on the lifecos. He will gravitate toward banks more than lifecos now. He feels uncomfortable with the group at the moment.

BUY

At these levels he is predisposed towards lifecos. They underperformed the market, but things are setting up better for them with rising interest rates. He prefers Manulife Financial Corporation (MFC-T) but both are good long-term investments.

WEAK BUY

This is a good space. High dividends. Growth. Positive demographics. Doesn't know GWF as well as Sunlife or Manulife, but should get moderate to strong returns.

DON'T BUY

Having a multiyear low in long-term interest rates last June, this is likely to creep higher for many years. Looking at insurance companies, rising rates are good for them. Being in a pretty good equity market, equity returns help the insurance industry. It’s a group he is quite interested in, and they could do well for many years. If he had to pick a Canadian insurer, he would probably pick Manulife (MFC-T) as the leader in the group. Technically it is acting the best and has a great global footprint with great growth in Asia. We are in a bull market, so you don’t want to buy a company that is not going up yet.

COMMENT

The most conservative of the 3 lifecos in Canada. A lot of their business is more utilitarian, and they don’t take some of the risks the others do. As a result, they perform better across negative markets, but the leveraged companies have been doing better. They bought Putnam Funds in Boston, and have had difficulty getting that turned around. With Power Financial (PWF-T) you get this company at a discount of about 17%. He would use Power Financial instead.

BUY ON WEAKNESS

GWO-T vs. MFC-T. MFC-T has the advantage of being a very diversified company, globally. They have done well from that diversification. He tends to prefer it to GWO-T, although he might use its weakness to buy.

COMMENT

This has always been one of the most profitable of the large life insurers. If you think we are going into a rising interest rate environment, the insurers are the ones who can benefit greatly. He would prefer owning Power Financial (PWF-T) over this because of its diversification, but also increases in dividends.

COMMENT

Great West Life (GWO-T), Sun Life (SLF-T) or Manulife (MFC-T)? He has quite a bit of exposure to life insurance right now through Manulife and Sun Life, and they both look very attractive. Interest rates are likely going to work their way slowly higher over the next several years.

COMMENT

Great West Life (GWO-T), Sun Life (SLF-T) or Manulife (MFC-T)? This depends on quality and size, but if you are thinking of just keeping it very safe, Manulife and Sun Life would be the 2 he would zoom in on.

COMMENT

Great West Life (GWO-T), Sun Life (SLF-T) or Manulife (MFC-T)? As a group, the insurance companies have not done very well. Of these 3, Sun Life has relatively performed the best. A lot of the difficulties they have experienced has been a function of what has happened with energy, as they all have some energy exposure. Also low interest rates are generally negative for lifecos.

PAST TOP PICK

(Top Pick Aug 20/15, Down 4.27%) The stock has balanced the stock’s valuation losses with its income. This is a sector that needs interest rates to go up and after that there is nothing more to be said. They will soften otherwise.

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