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Empower Year-over-Year Earnings Surge 35% to New Record, up 12% From Second Quarter

T.GWO | November 7, 2024

After-tax base earnings of $264 million vs. $195 million a year ago

Company surpasses 19 million investors served with more than $1.8 trillion in AUA

Empower Personal WealthTM net new assets grow 46% over second quarter

Empower Workplace Solutions earnings up 32% year-over-year; primarily due to higher fees from higher equity markets and business growth

Empower has announced third-quarter earnings achieved as of September 30, 2024, through business growth, higher market returns and sales momentum in its Workplace Solutions and Personal Wealth units.

Empower is reporting after-tax base earnings of $264 million, which brings full-year base earnings to $711 million. Third-quarter base earnings are up 35% year-over-year, and up 12% over second quarter 2024.

Empower assets under administration rose to $1.8 trillion, 26% higher than prior year, and total retirement plan participants and clients are now 19 million, 4% higher than the prior year — a new high by both measures.1

Empower released results as part of a broader quarterly announcement by its parent company, Winnipeg-based Great-West Lifeco (TSX: GWO-CA). For more information on Great-West Lifeco’s third-quarter 2024 results, please see the release on the firm’s website.

Great-West Lifeco reports record base earnings in the third quarter of 2024

“Empower is extending its appeal to a wider range of investors and employers who are making use of our expanded capabilities, insights and offerings,” said Empower President and CEO Edmund F. Murphy III, who noted that the company’s growth is the output of investing strategically in the needs of customers. “We’ve made significant investments in new services, technology and infrastructure and expanded our footprint across the financial services landscape. It’s clear that our new and existing customers are noticing the value we bring to them.”

Murphy cited the third-quarter announcement of Empower’s acquisition of Plan Management Corporation (PMC), the creator of OptionTrax®, as the latest example of expanding capabilities. The combination will bring together Empower’s leading retirement and wealth management services with OptionTrax’s equity compensation platform and administration services. The OptionTrax platform is currently used by more than 300 employers with approximately $62 billion in plan value.

Empower’sWorkplace Solutions unit base earnings are up 32% year-over-year due to higher fees offset in part by lower margins. Retirement plan sales were $11.9 billion in the third quarter and $46 billion year-to-date up 40% as compared to this point last year.

During the quarter, Empower Personal WealthTM (EPW), which was established in January 2023, recognized 16% year-over-year earnings growth with increases in fee income and margins offset with higher expenses. EPW is up 13% compared to the second quarter with higher fees offset with increased expense. EPW net new assets of $2.4 billion are up 26% year-over-year and 46% over the second quarter with retention continuing to improve and strong sales of $5.6 billion which is a 27% increase from prior year.

EPW has total assets under administration of $85 billion (up 32% year-over-year) and has approximately 711,000 clients, up 16% over the last year.

About Empower

Recognized as the second-largest retirement services provider in the U.S.2 by totalparticipants, Empower administers approximately $1.8 trillion in assets for 19 million investors1 through the provision of retirement plans, advice, wealth management and investments. Connect with us on empower.com, Facebook, X, LinkedIn, TikTok and Instagram.

As of September 30, 2024. administration (AUA) refers to the assets administered by Empower. AUA does not reflect the financial stability or strength of a company.
Pensions & Investments DC Recordkeeper Survey (2024). Ranking measured by total number of participants as of December 31, 2023.

Empower refers to the products and services offered by Empower Annuity Insurance Company of America and its subsidiaries. This material is for informational purposes only and is not intended to provide investment, legal, or tax recommendations or advice.

“EMPOWER” and all associated logos and product names are trademarks of Empower Annuity Insurance Company of America. WF-3741400-1124 RO4005237-1124

Learn more:

To learn more about how we’re empowering plan sponsors and their participants to be more engaged in their retirement plans than ever before, call us on 800-719-9914.