Canada Life parent company Great-West Lifeco has announced its financial results for the third quarter of 2024 – a period that turned out to be another three-month span of record base earnings for the group.
In its announcement, Great-West Lifeco said its base earnings in the quarter grew by 12% to $1.06 billion. Meanwhile its net earnings from continuing operations saw a 9% decline to $859 million.
The company noted: “Record base earnings of $1,061 million or $1.14 per common share, up 12% from $950 million a year ago reflects continued pre-tax growth and higher earnings on surplus from all segments, partially offset by the impact of the global minimum tax in the Capital and Risk Solutions and Europe segments.
“Base earnings growth was driven by net fee and spread income growth from higher equity markets and the addition of investment planning counsel and value partners, higher investment earnings, as well as favourable experience in the US life reinsurance business. These items were partially offset by unfavourable group mortality experience in the Europe segment.
Of the group’s total base earnings in the third quarter, $317 million came from Canada; $359 million from the US; $195 million from Europe; $210 million from Capital and Risk Solutions; and $(20 million) from Lifeco Corporate.
Paul Mahon (pictured), president and chief executive of Great-West Lifeco, commented: “We continue to execute on our focused strategies to deliver sustainable and profitable growth for our shareholders. In our fifth consecutive quarter of record base earnings, we’re delivering at the top end of our medium-term financial objectives.
“We have strong underlying momentum across all of our segments, and we have delivered on key actions to support and accelerate our growth strategies in both the US and Canada. At the same time, the strength of our disciplined approach to managing our business is demonstrated through recent actuarial assumption reviews and their positive impact on our capital levels.”
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