Great-West Lifeco Reports Strong Performance in Q4 and Full Year 2023
Great-West Lifeco Inc. has announced exceptional earnings results for the fourth quarter and full year of 2023, showcasing significant growth across various key metrics. The company's base earnings, earnings per share (EPS), and return on equity (ROE) all recorded notable increases. Moreover, Great-West Lifeco achieved impressive net flows in its wealth and retirement businesses, along with the successful completion of the sale of Putnam Investments. The robust performance also extended to the Group Life & Health premiums in Canada, which experienced a substantial rise.
Empower, the U.S. subsidiary of Great-West Lifeco, exhibited remarkable organic growth and positive cash flows, further solidifying the company's overall performance. In light of these achievements, Great-West Lifeco foresees continued growth in 2024, with particular emphasis on its Empower division, as it strives to deliver value to its shareholders.
Key Highlights from Great-West Lifeco's Earnings Call
During the earnings call, several key points stood out. Great-West Lifeco reported an 11% increase in both base earnings and EPS. The company also celebrated a significant achievement of $30 billion in positive net flows for its wealth and retirement businesses. Additionally, the Group Life & Health premiums in Canada experienced an impressive surge of 22%.
The Empower division showcased noteworthy growth in assets and participants, affirming its position as a pivotal contributor to Great-West Lifeco's success.
Strategic Moves and Future Expectations
Great-West Lifeco's recent strategic moves included the sale of Putnam Investments and the closure of a European onshore wealth business. Looking ahead, the company anticipates a substantial 15% to 20% increase in base earnings from its Empower division in 2024.
Although Great-West Lifeco faced challenges due to lower interest rates and real estate valuations in Canada and the UK, the company maintains a resilient market experience. Empower's partnerships and market positioning remain strong, and Great-West Lifeco is committed to a disciplined approach to growth and capital optimization.
Outlook and Growth Strategies
The earnings call shed light on the company's strategies and growth expectations. Great-West Lifeco aims to leverage its financial strength and strategic positioning for continued success in 2024. Particularly, the Empower division is poised to benefit from the integration of Prudential's retirement business and the anticipated advantages of cost synergies.
In summary, Great-West Lifeco's leadership expressed a sense of optimism about the company's medium-term outlook. They conveyed confidence in their ability to generate strong shareholder returns and achieve sustained growth.
Analyst comment
Positive news. The strong performance, notable achievements, and anticipation of continued growth in 2024 indicate a positive outlook for Great-West Lifeco Inc. The market is expected to see increased base earnings and positive net flows, especially for the Empower division. The company’s financial strength and strategic positioning position it for continued success in generating strong shareholder returns and growth.
