Great-West Lifeco Q2 Earnings Call Highlights Strong Performance
Great-West Lifeco reported a 15% year-over-year increase in second-quarter base earnings per share, driven by strong performance at its Empower retirement business and Capital and Risk Solutions division. The company's base return on equity was 19.3%, close to its medium-term target of 19.5%. Retirement and wealth client assets rose 22% year-over-year to over CAD 3.37 trillion, with the Empower platform surpassing $2 trillion in workplace assets. The company announced a planned acquisition of Milliman's Retirement and Benefits Administration business for approximately $340 million, expected to add 1.5 million participants and $130 billion in client assets upon closing later this year. While Europe delivered earnings growth and strong bulk-annuity sales, Canada saw a 9% decline due to weaker disability and insurance performance. Capital and Risk Solutions reported a 35% increase in base earnings, with management expecting continued growth while maintaining its LICAT ratio of at least 125%. Great-West also repurchased CAD 925 million worth of shares through the first half of the year.
Tickers: $GWLIF
Topics: acquisitions financial performance retirement services