Empower Achieves Record Earnings of $236M for Q2 2024 Representing 19% Year-over-Year Growth

Company attains after tax earnings growth of 12% quarter-over-quarter
Empower Personal WealthTM expands assets under administration (AUA) 23% over 12 months as sales from defined contribution plans see strong expansion
Empower Workplace Solutions AUA is up 14% with strong momentum across segments, including public plan sector

Empower is announcing record second-quarter earnings achieved as of June 30, 2024, through business growth and sales momentum in its Workplace Solutions and Personal Wealth units.

The company achieved after-tax base earnings of US $236 million, an increase of $38 million, or 19%, compared to the second quarter of 2023. The growth is primarily due to strong organic sales, a rise in fee income resulting from higher equity markets, and higher surplus income.

The company administers more than $1.6 trillion in assets for 18.6 million individuals.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 second-quarter 2024 results, please see the release on the firm’s website.

Great-West Lifeco reports record base earnings in the second quarter of 2024 (greatwestlifeco.com)

“At the center of Empower’s value proposition is the delivery of advice and service to investors of all types who are coming to us in increasing numbers to provide retirement and wealth management services,” said Empower President and CEO Edmund F. Murphy III. “As the broader macroeconomic picture and the markets present challenges, we will continue to deliver what individuals need to help them on their path to greater financial security.”

During the quarter, Empower Personal Wealth, established in January 2023, recognized a 23% growth in assets under administration year-over-year driven by market performance and positive net flows. The company is beginning to see the benefits of greater visibility among individual investors, heightened brand awareness and elevated customer loyalty from retirement plan participants becoming Personal Wealth customers.

In the Workplace Solutions business, Empower continues to achieve strong organic growth, with assets under administration up 14% on a year-over-year basis. Sales for Empower’s advisor-sold business (plans with under $50 million in assets) are up 35% year-over-year, following a record 2023.

Recent wins in the public plan sector have shown particular growth in 2024. Empower serves state-level plans for 29 of 50 states and in total supports the retirement needs of more than 4.1 million public workers who have invested more than $240 billion in assets across Empower’s government business, as of June 30.

So far this year, Empower announced new and retained client commitments from public plan clients across the country, such as the County of Orange (Calif.) with approximately $2.5 billion in assets and the Kansas Public Employees Retirement System (KPERS) with more than 27,300 plan participants who have saved approximately $1.3 billion in assets. In addition, Empower announced several public transportation authority commitments, including the Santa Clara Valley Transportation Authority (VTA) based out of San Jose, Calif., New Jersey Transit, Chicago Transit Authority, Southeastern Pennsylvania Transportation Authority and METRO Transit Authority of Harris County. These recommitments encompass approximately 50,000 transit authority plan participants.

In addition, Prudential integration was completed in the second quarter of 2024. Retention targets exceeded and the expected U.S. $180 million pre-tax of run rate cost synergies have been achieved, according to the Great-West Lifeco release.

About Empower

Recognized as the second-largest retirement services provider in the U.S.2 by total participants, Empower administers approximately $1.6 trillion in assets for 18.6 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 June 30, 2024. Information refers to all retirement business of Empower Annuity Insurance Company of America (EAICA) and its subsidiaries, including Empower Retirement, LLC; Empower Life & Annuity Insurance Company of New York (ELAINY); and Empower Annuity Insurance Company (EAIC), marketed under the Empower brand. Assets under 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.

Securities, when presented, are offered and/or distributed by Empower Financial Services, Inc., Member FINRA/SIPC. EFSI is an affiliate of Empower Retirement, LLC; Empower Funds, Inc.; and registered investment adviser Empower Advisory Group, LLC. This material is for informational purposes only and is not intended to provide investment, legal, or tax recommendations or advice.

Empower refers to the products and services offered by Empower Annuity Insurance Company of America and its subsidiaries. “EMPOWER” and all associated logos and product names are trademarks of Empower Annuity Insurance Company of America.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240807158470/en/

Stephen Gawlik - Stephen.Gawlik@empower.com Mandy Cassano - Mandy.Cassano@empower.com

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