GWL reports strong Q2 investment, insurance results

Great-West Lifeco Inc. reported Wednesday that its total assets under administration (AUA) as of June 30 were $2.34 trillion, up by 8.1% from $2.17 trillion a year earlier, primarily due to an acquisition south of the border.

Total AUA in Canada stood at $218 billion as of June 30, down by 6% from $232 billion a year earlier. Total AUA in the U.S. was $1.88 trillion (US$1.46 trillion), up by 13.4% from $1.66 trillion (US$1.34 trillion) a year earlier.

Great-West Life & Annuity Insurance Co., a Colorado-based subsidiary that operates under the name Empower, closed its acquisition of Prudential Financial Inc.’s full-service retirement business on April 1. The Empower-Prudential deal added $116 billion in total assets, $1 billion in other assets under management and $250 billion in other AUA to the balance sheet.

Great-West Lifeco Inc. said Wednesday that its net earnings attributable to common shareholders were $735 million in Q2, a 6.3% decrease from $784 million a year ago. The profit works out to 79 cents per diluted share, down from 84 cents a year ago. This was due to higher acquisition-related costs, largely from the Prudential acquisition.

Base earnings per share for the quarter were unchanged from the previous year’s quarter, at 89 cents.

“Strong insurance and investment results offset the dampening effect of equity markets on wealth and asset management businesses,” Great-West president and CEO Paul Mahon said in a release on Wednesday.

Total insurance and wealth sales in Canada were $3.22 billion in the second quarter of this year, down by 3.7% from $3.35 billion a year ago. This was primarily due to lower individual mutual fund and segregated fund sales.

Individual wealth sales in Canada were $2.36 billion in the second quarter of this year, down by 7% from $2.55 billion in the second quarter of 2021.

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