Insurers Report Lower Q3 Earnings on Disability Claims
Great-West Lifeco, Manulife and Sunlife posted reduced consolidated net earnings in the third quarter of 2026 as group benefits results weakened.
Updated on Nov. 6, 2026 in Insurance
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Great-West Lifeco, Manulife and Sunlife each reported lower consolidated net earnings for the third quarter of 2026. Higher long-term disability claims pressured group benefits results across Canadian insurers.
Why it matters
Group benefits is a core earnings line for Canadian insurers that employers rely on for workplace disability coverage. Weaker results could eventually shape premiums and claims management for employers and employees across Canada.
Great-West Lifeco's Canadian group benefits base earnings fell 35% to $114 million, while Manulife's annualized premium equivalent sales fell 28% to $112 million year over year. Whether these declines reverse in coming quarters remains unclear.
The players
Great-West Lifeco
A Winnipeg-based financial services company whose group benefits business provides workplace insurance across Canada.
Manulife
Canada's largest insurer by market capitalization, offering life, health and group insurance and wealth management products internationally.
Sunlife
Sun Life Financial, a Toronto-based insurer and asset manager that provides group health, life and disability coverage.
The details
Great-West Lifeco attributed its group benefits decline to less favourable long-term disability experience, citing higher claims incidents and lower claims recovery. Manulife's Canadian core earnings rose 3% to $440 million in the third quarter but fell 4% to $1.17 billion for the first nine months of 2026, largely due to higher group insurance claims and expenses.
Timeline
Third quarter of 2026: Great-West Lifeco, Manulife and Sunlife reported lower consolidated net earnings.
First nine months of 2026: Manulife's Canadian core earnings fell 4% year to date.
Roadmap
Group disability claims have become a recurring source of earnings volatility for Canadian life insurers in recent filings. This quarter's declines suggest the pressure is spreading across multiple major carriers rather than affecting a single firm.
Employers who buy group disability coverage may see premium adjustments as insurers work to offset claims costs. Workers with employer-provided disability benefits could face changes to coverage terms or claims processes.
The takeaway
Monitor group benefits pricing if your employer offers disability coverage, since insurers are reporting pressure that may reshape plan costs. Reviewing your workplace benefits summary can help you understand what protection you currently have.
Further reading
Explore more on Insurance coverage trends across Canada.
Source note: This article includes information reported by Investment Executive.
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