Great-West Lifeco reports record earnings growth

Great-West Lifeco reports record earnings growth | Insurance Business Canada

Life & Health

Great-West Lifeco reports record earnings growth

How did the company fare in Q2 2024?

Life & Health

By
Terry Gangcuangco

Great-West Lifeco, the parent company of Canada Life, has released its quarterly results report, marking a new high for the group in terms of its base earnings.

According to figures published by the financial services holding company, its “record” base earnings in the second quarter amounted to nearly $1.04 billion, a 13% jump from last year’s $920 million.

The improved result was attributed to pre-tax growth in all segments from favourable group experience in Canada and Europe, higher net fee income from higher equity markets, realization of expense synergies, organic business growth, and higher surplus income from higher interest rates.

It was highlighted that the three months ended June 30 represented the fourth straight quarter of record base earnings for Great-West Lifeco.

Meanwhile, the group’s net earnings from continuing operations improved from $569 million in Q2 2023 to $1.01 billion this time around. Net earnings similarly grew, from $498 previously to this year’s $1.01 billion.

Broken down, segment base earnings for Canada reached $322 million in the second quarter; US segment base earnings, $324 million; and Europe segment base earnings, $206 million.

President and chief executive Paul Mahon (pictured) noted: “Our strong momentum is supported by market-leading franchises with focused and disciplined execution of their growth strategies. As we work to deliver for our customers, we continue to drive sustainable and profitable growth for our shareholders, leading to a fourth consecutive quarter of record base earnings.

“We are executing against our ambitions in the US, surpassing the growth expectations we shared in 2023 and reiterated for 2024. While our US segment is on course to become our largest by earnings this year, we continue to make progress across our portfolio of companies to strengthen and support our long-term success.”

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