For the second quarter of 2022, Great-West Lifeco delivered “solid results” despite heightened volatility in the regions it operates.
The company reported net earnings of $735 million for Q2 2022, down by 6% from the same period last year. Meanwhile, Great-West Lifeco’s base earnings rose to $830 million from $826 million in 2021 – according to the company, this reflects its “strong insurance and investment results” across the globe, which have more than offset reduced net fee income from wealth management businesses and negative currency movement impacts
Great-West Lifeco revealed that equity markets during the quarter exhibited increased volatility and ended 5% to 16% lower than March 31, 2022 levels. Meanwhile, interest rates also increased during the period to 80-105bps in response to elevated, broad-based levels of inflation.
“Against the backdrop of falling equity markets and elevated inflation, the company’s well diversified and resilient business portfolio delivered solid results,” commented Great-West Lifeco president and CEO Paul Mahon. “Strong insurance and investment results offset the dampening effect of equity markets on wealth and asset management businesses.”
The second quarter saw a Great-West Lifeco subsidiary, Great-West Life & Annuity Insurance Company (GWL&A) which primarily operates under the brand “Empower,” closed its acquisition of the full-service retirement business of Prudential Financial. This transaction expanded Empower’s presence in the US with over 17.4 million retirement plan participants and assets under administration to US$1.3 trillion on behalf of approximately 71,000 workplace savings plans, as of June 30, 2022.
Great-West Lifeco’s capital position remained stable for the quarter. It reported that the LICAT Ratio for its Canadian subsidiary Canada Life was at 117%, which the company said is “near the high end” of its internal target range.
The insurer’s consolidated assets for the quarter were about $670 billion, and its assets under administration were approximately $2.3 trillion as of June 30, 2022. Each figure represents an increase of 6% and 2%, respectively, from December 31, 2021.
