Q3 2024 Great-West Lifeco Inc Earnings Call Transcript
Key Points
- Great-West Lifeco Inc (GWLIF) delivered record base earnings for the fifth consecutive quarter, with strong growth across all segments.
- The US segment, now the largest, achieved a 35% growth in base earnings, surpassing early 2024 objectives.
- Base EPS increased by 14% year-to-date, and base ROE is above the top end of the range, with Empower's base ROE increasing nearly 300 basis points.
- Strategic acquisitions, such as Empower's acquisition of Land Management Corporation, are enhancing offerings and market positions.
- The company maintains strong capital and cash generation across all segments, with robust regulatory capital levels providing stability and flexibility for future opportunities.
- The insurance service results were down year over year due to lower experience gains in Canada and unfavorable group mortality experience in the UK.
- Net participant outflows in Empower's retirement business are driven by demographic trends, with withdrawals outpacing new contributions.
- The European segment saw a 7% decrease in base earnings year over year in constant currency, primarily due to the release of a tax provision in Germany during the prior year.
- The capital and risk solutions business faced challenges in the mortality reinsurance market, with difficulties in competing due to automated underwriting and demand for guaranteed rates.
- Interest rate decreases in the third quarter could impact fixed income holdings, although the company remains optimized for rate changes.
Thank you for standing by. This is the conference operator. Welcome to the Great-West Lifeco third quarter 2024 results conference call. (Operator Instructions) The conference is being recorded. (Operator Instructions)
I would now like to turn the conference over to Mr. Shubha Khan, Senior Vice President and Head of Investor Relations at Great-West Lifeco. Please go ahead.
Thank you, operator. Hello, everyone, and thank you for joining the call to discuss our third quarter financial results.
Before we start, please note that a link to our live webcast and materials for this call have been posted on the website at greatwestlifeco.com under the Investor Relations tab. Please turn to slide 2.
I'd like to draw your attention to cautionary language regarding the use of forward-looking statements, which form part of today's remarks. Please refer to the appendix for a note on the use of non-GAAP financial measures and important notes on adjustments,
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