In This Article:
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After-tax base earnings of $264 million vs. $195 million a year ago
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Company surpasses 19 million investors served with more than $1.8 trillion in AUA
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Empower Personal WealthTM net new assets grow 46% over second quarter
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Empower Workplace Solutions earnings up 32% year-over-year; primarily due to higher fees from higher equity markets and business growth
GREENWOOD VILLAGE, Colo., November 07, 2024--(BUSINESS WIRE)--Empower has announced third-quarter earnings achieved as of September 30, 2024, through business growth, higher market returns and sales momentum in its Workplace Solutions and Personal Wealth units.
Empower is reporting after-tax base earnings of $264 million, which brings full-year base earnings to $711 million. Third-quarter base earnings are up 35% year-over-year, and up 12% over second quarter 2024.
Empower assets under administration rose to $1.8 trillion, 26% higher than prior year, and total retirement plan participants and clients are now 19 million, 4% higher than the prior year — a new high by both measures.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 third-quarter 2024 results, please see the release on the firm’s website.
"Empower is extending its appeal to a wider range of investors and employers who are making use of our expanded capabilities, insights and offerings," said Empower President and CEO Edmund F. Murphy III, who noted that the company’s growth is the output of investing strategically in the needs of customers. "We’ve made significant investments in new services, technology and infrastructure and expanded our footprint across the financial services landscape. It’s clear that our new and existing customers are noticing the value we bring to them."
Murphy cited the third-quarter announcement of Empower’s acquisition of Plan Management Corporation (PMC), the creator of OptionTrax®, as the latest example of expanding capabilities. The combination will bring together Empower’s leading retirement and wealth management services with OptionTrax’s equity compensation platform and administration services. The OptionTrax platform is currently used by more than 300 employers with approximately $62 billion in plan value.
Empower’s Workplace Solutions unit base earnings are up 32% year-over-year due to higher fees offset in part by lower margins. Retirement plan sales were $11.9 billion in the third quarter and $46 billion year-to-date up 40% as compared to this point last year.