Q2 2024 Great-West Lifeco Inc Earnings Call Transcript
Key Points
- Great-West Lifeco Inc (GWLIF) reported a fourth consecutive quarter of record base earnings, with both base and net earnings exceeding $1 billion for the first time.
- The company achieved a 13% increase in base earnings and base EPS over the prior year, with base ROE increasing to 17.2%.
- The U.S. segment reported double-digit earnings growth, driving a nearly 200 basis point increase in ROE over the past 12 months.
- Great-West Lifeco Inc (GWLIF) maintained a strong regulatory capital position with a 1% increase in the LICAT ratio over the previous quarter.
- The Europe segment delivered its sixth consecutive quarter of growth across all value drivers, supported by targeted strategies and focused actions.
- The company faced headwinds from regulatory and policy changes, inflationary pressures, and shifting interest rates.
- Net flows in the Empower segment were negative this quarter, largely due to anticipated terminations from the Prudential Retirement business acquired in 2022.
- The Capital and Risk Solutions segment was adversely impacted by the global minimum tax, reducing base earnings by $28 million.
- Commercial mortgage impairments in the U.S. office portfolio totaled $40 million, impacting net investment results.
- The insurance and annuities CSM in Canada declined due to insurance experience losses, and the company does not consider CSM a key growth metric in Canada.
Thank you for standing by and the conference operator, and welcome to the Great-West Lifeco's Second Quarter 2024 Results Conference Call. (Operator instructions) And the conference is being recorded. And after the presentation. (Operator instructions) I would now like to turn the conference over to Mr. Shubha Khan, Senior Vice President and Head of Investor Relations and at Great-West Lifeco. Please go ahead.
Thank you, operator. Hello, everyone, and thank you for joining the call to discuss our second quarter financial results. As many of you already know, this is my first time hosting Great-West Lifeco's quarterly results call since I joined the company earlier this summer. It's a pleasure to welcome many familiar faces on today's call, and I look forward to working with you all.
Before we start, please note that a link to our live webcast and materials for this call has been posted on our website at Great-West Lifeco.com under the Investor Relations tab.
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