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Empower Achieves Record Base Earnings of $973M in 2024, up 30% From Prior Year

News provided by business wire2025-02-07

Empower Achieves Record Base Earnings of $973M in 2024, up 30% From Prior Year

Retirement and wealth units grew AUA by 22% and 29%, respectively
Adds 600,000 net new plan participants in retirement plan business

GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)-- Empower today announced it broke into record earnings territory by achieving $973 million in base earnings,^1,2 up 30% from 2023, through business growth and sales momentum in both its workplace and wealth management businesses in 2024. Base return-on-equity^1,3 has increased from approximately 12% to 16% in the past 12 months.

Net earnings growth was 42% for 2024.

Empower, a leading provider of retirement and wealth management services, 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 fourth-quarter 2024 results, please see the release on the firm’s website.

Empower now administers $1.8 trillion in assets (AUA)^1,2 for more than 19 million individuals. Empower Workplace Solutions manages approximately 88,000 employer-sponsored retirement plans, and in 2024 won the trust of approximately 600,000 net new plan participants, an increase of 3.4% over the last year.

Synergies from the integration of Prudential’s retirement business and Empower’s expense efficiency initiatives are reflected in Empower’s strong base earnings¹ growth. For 2024, the average AUA² growth in the company’s Workplace Solutions unit was 22%.

Empower Personal Wealth^TM, which recognizes its second anniversary this quarter, saw 29% growth in average AUA^1,2 in 2024. Positive net flows into Personal Wealth were supported by continued success in capturing rollover volume from defined contribution plans.

“At the center of Empower’s growth strategy is the delivery of financial advice to more people in new ways,” said Empower President and CEO Edmund F. Murphy III. “We achieved four strong quarters of growth in 2024 because our customers, their advisors, and the partners with whom we work are bringing much-needed advice to the millions of people we serve.

“The year 2024 proved we are positioned to further expand this business and help our clients seize opportunities to build the financial security they want and need,” said Murphy.

ABOUT EMPOWER

Recognized as the second-largest retirement services provider in the U.S.⁴ by total participants, Empower administers approximately $1.8 trillion in assets^1,2 for more than 19 million individuals through the provision of retirement plans, advice, wealth management and investments. Connect with us on empower.com, Facebook, X, LinkedIn, TikTok and Instagram.

¹		This is an unaudited non-GAAP financial measure. Refer to the “Non-GAAP Financial Measures and Ratios” section in the Great-West Lifeco 2024 Annual Management Discussion and Analysis (MD&A) for additional details. Please visit Financial reports - Great-West Lifeco Inc. (greatwestlifeco.com).
²		As of or for the year ended December 31, 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.
³		Base return on equity is calculated using the trailing four quarters of applicable earnings and common shareholders' equity.
⁴		Pensions & Investments 2023 Defined Contribution Survey. Ranking measured by total number of participants as of September 2023.

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.