Great West Lifeco

GWO-T

Analysis and Opinions about GWO-T

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
May 8, 2020
Very cheap? This is not the right environment for insurance companies. You have to think if interest rates are going to remain low going forward, it will be difficult for them to make consistent profits. He would look elsewhere. He would rather play in US markets with US dollars instead. Yield 8%
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Very cheap? This is not the right environment for insurance companies. You have to think if interest rates are going to remain low going forward, it will be difficult for them to make consistent profits. He would look elsewhere. He would rather play in US markets with US dollars instead. Yield 8%
BUY
BUY
October 1, 2019
Likes it a lot and recommended it a few weeks ago as yields have been bottoming and flattening out. Yields will rise long-term, he predict, which will benefit lifecos like this. GWO broke its downtrend at end-2018, rose, hit a second bottom (a double-bottom) and is now accelerating higher.
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Likes it a lot and recommended it a few weeks ago as yields have been bottoming and flattening out. Yields will rise long-term, he predict, which will benefit lifecos like this. GWO broke its downtrend at end-2018, rose, hit a second bottom (a double-bottom) and is now accelerating higher.
BUY
BUY
September 20, 2019
The Canadian insurance sector generally trades cheap, and the balance sheets look great. Insurance companies are cheaper and are capitalized cheaper than banks. GWO would be a fine name if there is no recession. Even with a recession, you have 5% dividends to weather the storm.
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Great West Lifeco (GWO-T)
September 20, 2019
The Canadian insurance sector generally trades cheap, and the balance sheets look great. Insurance companies are cheaper and are capitalized cheaper than banks. GWO would be a fine name if there is no recession. Even with a recession, you have 5% dividends to weather the storm.
DON'T BUY
DON'T BUY
August 12, 2019
There is value in it at $10 to $15 dollars. Insurance companies in a negative interest rate environment are tragic. This sector is a 'Hard Avoid' until the dust settles.
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There is value in it at $10 to $15 dollars. Insurance companies in a negative interest rate environment are tragic. This sector is a 'Hard Avoid' until the dust settles.
DON'T BUY
DON'T BUY
April 8, 2019
If you look at '07/08 you will get something similar in the next recession. With low interest rates they will not do well. This one has not grown for years nor made money for anyone.
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If you look at '07/08 you will get something similar in the next recession. With low interest rates they will not do well. This one has not grown for years nor made money for anyone.
COMMENT
COMMENT
December 21, 2018
General opinion of the sector The insurance group had run up earlier in the year as longer term interest rates were expected to rise. However, as short term rates have risen faster this has taken the wind out of the sails. There is still more upside in rates and with yields of 5%, it is a good long term holding. The MFC-T lawsuit over long term contracts will create uncertainty.
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Great West Lifeco (GWO-T)
December 21, 2018
General opinion of the sector The insurance group had run up earlier in the year as longer term interest rates were expected to rise. However, as short term rates have risen faster this has taken the wind out of the sails. There is still more upside in rates and with yields of 5%, it is a good long term holding. The MFC-T lawsuit over long term contracts will create uncertainty.
TOP PICK
TOP PICK
November 28, 2018
As rates rise, lifecos do well. GWL is now a value pick with low volatility. He likes its middling price momentum and solid 21% ROE. 1.4x price to book (vs. historic 2x), and trades at 7x earnings. Pays 5% yield and deecnt payout ratio. But they need to show they can redeploy capital into growth--they got the balance sheet to do that. (Analysts’ price target is $34.50)
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Great West Lifeco (GWO-T)
November 28, 2018
As rates rise, lifecos do well. GWL is now a value pick with low volatility. He likes its middling price momentum and solid 21% ROE. 1.4x price to book (vs. historic 2x), and trades at 7x earnings. Pays 5% yield and deecnt payout ratio. But they need to show they can redeploy capital into growth--they got the balance sheet to do that. (Analysts’ price target is $34.50)
COMMENT
COMMENT
November 13, 2018

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.

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Great West Lifeco (GWO-T)
November 13, 2018

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
WAIT
August 9, 2018

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.

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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.

BUY WEAKNESS
BUY WEAKNESS
June 6, 2018

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

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

DON'T BUY
DON'T BUY
May 17, 2018

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.

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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
BUY
March 29, 2018

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.

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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
WEAK BUY
February 7, 2018

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.

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Great West Lifeco (GWO-T)
February 7, 2018

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
DON'T BUY
November 21, 2017

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.

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Great West Lifeco (GWO-T)
November 21, 2017

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
COMMENT
November 13, 2017

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.

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Great West Lifeco (GWO-T)
November 13, 2017

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 WEAKNESS
BUY WEAKNESS
May 8, 2017

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.

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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
COMMENT
April 28, 2017

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.

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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
COMMENT
December 13, 2016

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.

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Great West Lifeco (GWO-T)
December 13, 2016

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
COMMENT
December 12, 2016

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.

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Great West Lifeco (GWO-T)
December 12, 2016

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
COMMENT
August 16, 2016

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.

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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
PAST TOP PICK
August 11, 2016

(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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(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.

HOLD
HOLD
August 8, 2016

A world-class insurance company with great assets, suffering from high interest rates. This is financially bulletproof and your dividend is secure.

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A world-class insurance company with great assets, suffering from high interest rates. This is financially bulletproof and your dividend is secure.

COMMENT
COMMENT
August 4, 2016

Not an expensive stock from a valuation perspective. It survived the 2008 downturn, and has done a better job than some other insurers. However, this is going to have a difficult time going much higher. 4.1% dividend yield.

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Not an expensive stock from a valuation perspective. It survived the 2008 downturn, and has done a better job than some other insurers. However, this is going to have a difficult time going much higher. 4.1% dividend yield.

COMMENT
COMMENT
July 18, 2016

Negative interest rates leaking into North America will hurt insurance companies more than anyone else. Best case scenario you are in a range. You could add at the low end of the range, but negative interest rates leaking in from Europe are a big risk.

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Negative interest rates leaking into North America will hurt insurance companies more than anyone else. Best case scenario you are in a range. You could add at the low end of the range, but negative interest rates leaking in from Europe are a big risk.

DON'T BUY
DON'T BUY
June 2, 2016

A well-managed insurance company, and has always had a relatively high ROE, but generally speaking it has been one of the lifecos where you have had to pay up for that return on equity. This is selling at 1.8X Book, compared to Manulife (MFC-T) at 1X Book and Sun Life (SLF-T) at 1.5X. He feels you are paying too much for this additional ROE.

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A well-managed insurance company, and has always had a relatively high ROE, but generally speaking it has been one of the lifecos where you have had to pay up for that return on equity. This is selling at 1.8X Book, compared to Manulife (MFC-T) at 1X Book and Sun Life (SLF-T) at 1.5X. He feels you are paying too much for this additional ROE.

HOLD
HOLD
February 18, 2016

A Fixed Perpetual Preferred. In this environment, you are probably all right with something like this. It’s an awfully good coupon. The Rate Reset has problems with being reset potentially lower. As an equity, it is kind of middle of the pack of the insurance companies in Canada. Not bad, but it struggles because of some of its assets mainly.

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Great West Lifeco (GWO-T)
February 18, 2016

A Fixed Perpetual Preferred. In this environment, you are probably all right with something like this. It’s an awfully good coupon. The Rate Reset has problems with being reset potentially lower. As an equity, it is kind of middle of the pack of the insurance companies in Canada. Not bad, but it struggles because of some of its assets mainly.

DON'T BUY
DON'T BUY
January 11, 2016

It is a strong brand. He prefers SLF-T and MFC-T, although owns neither. They take in premiums and invest them in fixed income. It is difficult for them to see a reasonable return on their cash. There are easier ways to make money in the market. He prefers Canadian Banks.

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Great West Lifeco (GWO-T)
January 11, 2016

It is a strong brand. He prefers SLF-T and MFC-T, although owns neither. They take in premiums and invest them in fixed income. It is difficult for them to see a reasonable return on their cash. There are easier ways to make money in the market. He prefers Canadian Banks.

COMMENT
COMMENT
November 24, 2015

Great West Life (GWO-T), Manulife (MFC-T) or Sun Life (SLF-T) for the best upside? That’s a tough question, because he likes all 3. Insurance companies will do well in the economy he sees going forward. Lifecos have a little bit more torque on the upside with rising interest rates. Right now Manulife would be his favourite.

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Great West Lifeco (GWO-T)
November 24, 2015

Great West Life (GWO-T), Manulife (MFC-T) or Sun Life (SLF-T) for the best upside? That’s a tough question, because he likes all 3. Insurance companies will do well in the economy he sees going forward. Lifecos have a little bit more torque on the upside with rising interest rates. Right now Manulife would be his favourite.

PAST TOP PICK
PAST TOP PICK
October 20, 2015

(A Top Pick Sept 23/14. Up 6.37%.) If interest rates go up, he expects the stock to do even better. Still likes the stock as it is cheap.

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Great West Lifeco (GWO-T)
October 20, 2015

(A Top Pick Sept 23/14. Up 6.37%.) If interest rates go up, he expects the stock to do even better. Still likes the stock as it is cheap.

DON'T BUY
DON'T BUY
October 5, 2015

They have done a great job. They are rock solid and pay a decent dividend. It is a well managed business. It is owned by a dual class share structured company. He doesn’t like this. The other lifecos in Canada also have much better global operations.

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They have done a great job. They are rock solid and pay a decent dividend. It is a well managed business. It is owned by a dual class share structured company. He doesn’t like this. The other lifecos in Canada also have much better global operations.

COMMENT
COMMENT
August 24, 2015

Of the 3 Canadian lifecos, it is probably the slowest growth. Rather than looking at this company, he would be more inclined to look at Power Financial which holds this, along with IGM (IGM-T) and others.

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Of the 3 Canadian lifecos, it is probably the slowest growth. Rather than looking at this company, he would be more inclined to look at Power Financial which holds this, along with IGM (IGM-T) and others.

TOP PICK
TOP PICK
August 20, 2015

The stock is getting quite cheap on a comparative basis and has quite a good upside potential. He is going with the value stock in this sector. This is a laggard.

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The stock is getting quite cheap on a comparative basis and has quite a good upside potential. He is going with the value stock in this sector. This is a laggard.

COMMENT
COMMENT
February 6, 2015

They own a big asset manager in the US which they struggled with, but now look like they are turning it around. Also, have Irish Life in Ireland which is looking better. He prefers to get his exposure through Power Corp. (POW-T), which he expects will start increasing their dividend.

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Great West Lifeco (GWO-T)
February 6, 2015

They own a big asset manager in the US which they struggled with, but now look like they are turning it around. Also, have Irish Life in Ireland which is looking better. He prefers to get his exposure through Power Corp. (POW-T), which he expects will start increasing their dividend.

TOP PICK
TOP PICK
September 23, 2014

Excellent upside potential. Fairly close to good, solid technical support at about $30-$31. Nice rising balance sheet. This is a play on the potential for rising interest rates. Yield of 3.76%.

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Great West Lifeco (GWO-T)
September 23, 2014

Excellent upside potential. Fairly close to good, solid technical support at about $30-$31. Nice rising balance sheet. This is a play on the potential for rising interest rates. Yield of 3.76%.

WEAK BUY
WEAK BUY
June 16, 2014

It has a lot of protection from its yield. Likes lifecos in general. If we are going to see interest rates ratchet up then insurance companies will benefit. GWO-T itself is supported more by its yield than anything else and he prefers MFC-T or SLF-T. GWO-T looks expensive to him right now.

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It has a lot of protection from its yield. Likes lifecos in general. If we are going to see interest rates ratchet up then insurance companies will benefit. GWO-T itself is supported more by its yield than anything else and he prefers MFC-T or SLF-T. GWO-T looks expensive to him right now.

HOLD
HOLD
March 21, 2014

Likes the life insurance area in Canada better than the bank area because their interest-rate sensitivity is greater. When interest rates go up, they are huge beneficiaries. Also, feels they have much greater earnings growth potential. Banks have some pretty big headwinds. This lifeco is a little bit different because it recently bought Irish Life, which exposes it more to the European market. There is some confusion here, but this weekend Britain came out with some new standards as far as annuities go in England and they are a big player in that. He has seen some research reports that go both ways that it is either positive or negative for them and he is not quite sure what the answer is.

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Likes the life insurance area in Canada better than the bank area because their interest-rate sensitivity is greater. When interest rates go up, they are huge beneficiaries. Also, feels they have much greater earnings growth potential. Banks have some pretty big headwinds. This lifeco is a little bit different because it recently bought Irish Life, which exposes it more to the European market. There is some confusion here, but this weekend Britain came out with some new standards as far as annuities go in England and they are a big player in that. He has seen some research reports that go both ways that it is either positive or negative for them and he is not quite sure what the answer is.

PAST TOP PICK
PAST TOP PICK
March 14, 2014

(A Top Pick Jan 18/13. Up 25.56%.) This was cheap on a Price to Book basis. The kicker here was what happens if interest rates go up.

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(A Top Pick Jan 18/13. Up 25.56%.) This was cheap on a Price to Book basis. The kicker here was what happens if interest rates go up.

DON'T BUY
DON'T BUY
January 29, 2014

Preferred Shares Series P? This rose to about $26.50 about a year or two ago and slipped to as low as $23 and has gotten up to almost $25. These are Perpetual Preferreds and have call date in 2017 at $26, but only if Great West Life chooses to call it. Not a big fan of this kind of Preferred.

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Great West Lifeco (GWO-T)
January 29, 2014

Preferred Shares Series P? This rose to about $26.50 about a year or two ago and slipped to as low as $23 and has gotten up to almost $25. These are Perpetual Preferreds and have call date in 2017 at $26, but only if Great West Life chooses to call it. Not a big fan of this kind of Preferred.

BUY
BUY
January 9, 2014

Insurance companies do well in a rising rate environment. US 10 year rate has gone up and will continue to. GWO has a relatively cheap multiple.

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Insurance companies do well in a rising rate environment. US 10 year rate has gone up and will continue to. GWO has a relatively cheap multiple.

PAST TOP PICK
PAST TOP PICK
January 2, 2014

(Top Pick Jan 18/13, Up 33.22%) If we got a rise in interest rates, this one would get a lift.

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(Top Pick Jan 18/13, Up 33.22%) If we got a rise in interest rates, this one would get a lift.