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Empower Achieves Record Earnings of $236M for Q2 2024 Representing 19% Year-over-Year Growth

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Empower reported record Q2 2024 earnings of $236 million, a 19% year-over-year increase. The company's success is attributed to strong organic sales, higher fee income from improved equity markets, and increased surplus income. Empower Personal Wealth saw a 23% growth in assets under administration (AUA) year-over-year, while Workplace Solutions AUA increased by 14%. The company now administers over $1.6 trillion in assets for 18.6 million individuals.

Notable achievements include a 35% year-over-year increase in sales for advisor-sold business plans and significant growth in the public plan sector. Empower serves 29 of 50 state-level plans and supports 4.1 million public workers with over $240 billion in assets. The company also completed the Prudential integration, achieving expected cost synergies of $180 million pre-tax.

Empower ha riportato un utile record per il secondo trimestre del 2024 di 236 milioni di dollari, con un aumento del 19% rispetto all'anno precedente. Il successo dell'azienda è attribuito a forti vendite organiche, a un aumento dei ricavi da commissioni derivanti dal miglioramento dei mercati azionari e a un incremento del reddito surplus. Empower Personal Wealth ha registrato una crescita del 23% nelle attività amministrate (AUA) anno su anno, mentre l'AUA delle Soluzioni per il Lavoro è aumentato del 14%. L'azienda gestisce ora oltre 1,6 trilioni di dollari in attività per 18,6 milioni di individui.

I risultati degni di nota includono un aumento del 35% anno su anno nelle vendite dei piani di affari venduti da consulenti e una significativa crescita nel settore dei piani pubblici. Empower serve 29 dei 50 piani a livello statale e supporta 4,1 milioni di lavoratori pubblici con oltre 240 miliardi di dollari in attivi. L'azienda ha anche completato l'integrazione con Prudential, raggiungendo sinergie sui costi previste di 180 milioni di dollari prima delle imposte.

Empower reportó ganancias récord en el segundo trimestre de 2024 de 236 millones de dólares, un incremento del 19% interanual. El éxito de la empresa se atribuye a fuertes ventas orgánicas, mayores ingresos por comisiones gracias a la mejora en los mercados de capitales y un aumento en los ingresos en exceso. Empower Personal Wealth vio un crecimiento del 23% en activos bajo administración (AUA) en comparación con el año anterior, mientras que el AUA de Soluciones para el Trabajo aumentó un 14%. La empresa ahora administra más de 1.6 billones de dólares en activos para 18.6 millones de individuos.

Logros notables incluyen un aumento del 35% interanual en las ventas de planes de negocios vendidos por asesores y un crecimiento significativo en el sector de planes públicos. Empower sirve a 29 de 50 planes a nivel estatal y apoya a 4.1 millones de trabajadores públicos con más de 240 mil millones de dólares en activos. La empresa también completó la integración con Prudential, logrando sinergias de costos previstas de 180 millones de dólares antes de impuestos.

엠파워는 2024년 2분기 기록적인 수익 2억 3천6백만 달러를 보고했으며, 전년 대비 19% 증가했습니다. 회사의 성공은 강력한 유기적 판매, 개선된 주식 시장으로 인한 수수료 수익 증가, 잉여 수익 증가에 기인합니다. 엠파워 개인 자산은 전년 대비 자산 관리(AUA) 23% 성장을 기록했으며, 직장 솔루션 AUA는 14% 증가했습니다. 이 회사는 현재 1.6조 달러 이상의 자산을 1860만 명의 개인을 위해 관리하고 있습니다.

주목할 만한 성과로는 전년 대비 35% 판매 증가가 있으며, 공공 계획 부문에서도 중대한 성장이 있었습니다. 엠파워는 50개 주 계획 중 29개를 서비스하며, 4.1백만 명의 공공 근로자를 지원하고 2400억 달러 이상의 자산을 관리합니다. 이 회사는 또한 프루덴셜과의 통합을 완료하고, 세전으로 1억 8천만 달러의 예상 비용 시너지를 달성했습니다.

Empower a annoncé un bénéfice record pour le deuxième trimestre de 2024 s'élevant à 236 millions de dollars, avec une augmentation de 19% par rapport à l'année précédente. Le succès de l'entreprise est attribué à de fortes ventes organiques, une hausse des revenus de frais due à l'amélioration des marchés boursiers, et une augmentation des revenus supplémentaires. Empower Personal Wealth a enregistré une croissance de 23% des actifs sous administration (AUA) d'une année sur l'autre, tandis que l'AUA des Solutions de Travail a augmenté de 14%. L'entreprise gère désormais plus de 1,6 trillion de dollars d'actifs pour 18,6 millions d'individus.

Parmi les réalisations notables, on note une augmentation de 35% des ventes d'une année sur l'autre pour les plans d'affaires vendus par des conseillers et une croissance significative dans le secteur des plans publics. Empower sert 29 des 50 plans à niveau étatique et soutient 4,1 millions de travailleurs publics avec plus de 240 milliards de dollars d'actifs. L'entreprise a également achevé l'intégration avec Prudential, atteignant les synergies de coûts prévues de 180 millions de dollars avant impôts.

Empower berichtete im zweiten Quartal 2024 von einem Rekordergebnis von 236 Millionen Dollar, was einem 19% Anstieg im Vergleich zum Vorjahr entspricht. Der Erfolg des Unternehmens wird auf starke organische Verkäufe, höhere Gebühreneinnahmen aus verbesserten Aktienmärkten und einen Anstieg der Überschusseinnahmen zurückgeführt. Empower Personal Wealth verzeichnete einen Wachstum von 23% bei den verwalteten Vermögen (AUA) im Jahresvergleich, während die AUA im Bereich Arbeitsplatzlösungen um 14% stieg. Das Unternehmen verwaltet nun über 1,6 Billionen Dollar an Vermögen für 18,6 Millionen Individuen.

Zu den bemerkenswerten Errungenschaften gehört ein 35% Anstieg bei den Verkäufen von beraterverkauften Geschäftsplänen im Jahresvergleich sowie ein erhebliches Wachstum im öffentlichen Plansektor. Empower bedient 29 von 50 staatlichen Plänen und unterstützt 4,1 Millionen öffentliche Arbeitnehmer mit über 240 Milliarden Dollar an Vermögen. Das Unternehmen schloss auch die Integration mit Prudential ab und erreichte die erwarteten Kostensynergien von 180 Millionen Dollar vor Steuern.

Positive
  • Record Q2 2024 earnings of $236 million, up 19% year-over-year
  • Empower Personal Wealth AUA grew 23% year-over-year
  • Workplace Solutions AUA increased 14% year-over-year
  • Advisor-sold business sales up 35% year-over-year
  • Administers over $1.6 trillion in assets for 18.6 million individuals
  • Achieved $180 million pre-tax run rate cost synergies from Prudential integration
Negative
  • None.

Insights

Empower's Q2 2024 results are highly positive, showcasing robust growth across key metrics. The $236 million in after-tax earnings represents a 19% year-over-year increase, driven by strong organic sales and higher fee income. This growth outpaces many industry peers and indicates effective execution of Empower's strategy.

The 23% growth in Personal Wealth AUA and 14% increase in Workplace Solutions AUA demonstrate Empower's ability to capture market share in both individual and institutional segments. The 35% year-over-year sales increase in the advisor-sold business is particularly impressive, suggesting strong momentum in a competitive market.

The successful integration of Prudential, achieving $180 million in pre-tax run rate cost synergies, further strengthens Empower's market position and financial outlook. These results position Empower favorably for continued growth and profitability in the retirement and wealth management sector.

Empower's performance reflects broader industry trends and market dynamics. The company's success in the public plan sector, with new and retained commitments from various state and transportation authority clients, indicates a growing demand for sophisticated retirement solutions in the government space. This trend could present significant opportunities for further expansion.

The 23% growth in Personal Wealth AUA suggests that Empower is effectively capitalizing on the increasing interest in personalized wealth management services. The company's strategy of converting retirement plan participants into Personal Wealth customers appears to be gaining traction, potentially setting a new benchmark for cross-selling in the industry.

The strong performance in equity markets has clearly benefited Empower, but the company's organic growth indicates resilience beyond market-driven gains. This positions Empower well to navigate potential market volatility while continuing to expand its market share.

Empower's Q2 results underscore its growing influence in the retirement planning landscape. The company's expansion in the public sector, now serving 29 of 50 states, highlights the increasing complexity of public retirement systems and the need for specialized expertise. This positions Empower as a key player in shaping the future of public sector retirement planning.

The growth in the advisor-sold business for plans under $50 million in assets is particularly noteworthy. It suggests that Empower is successfully addressing the needs of smaller employers, a segment often underserved in the retirement industry. This could lead to increased market penetration and a more diverse client base.

The integration of advice delivery into Empower's value proposition aligns with the growing demand for personalized financial guidance. As retirement planning becomes more complex, Empower's focus on advice could be a key differentiator in attracting and retaining clients across all segments.

  • Company attains after tax earnings growth of 12% quarter-over-quarter
  • Empower Personal WealthTM expands assets under administration (AUA) 23% over 12 months as sales from defined contribution plans see strong expansion
  • Empower Workplace Solutions AUA is up 14% with strong momentum across segments, including public plan sector

GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)-- Empower is announcing record second-quarter earnings achieved as of June 30, 2024, through business growth and sales momentum in its Workplace Solutions and Personal Wealth units.

The company achieved after-tax base earnings of US $236 million, an increase of $38 million, or 19%, compared to the second quarter of 2023. The growth is primarily due to strong organic sales, a rise in fee income resulting from higher equity markets, and higher surplus income.

The company administers more than $1.6 trillion in assets for 18.6 million individuals.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 second-quarter 2024 results, please see the release on the firm’s website.

“At the center of Empower’s value proposition is the delivery of advice and service to investors of all types who are coming to us in increasing numbers to provide retirement and wealth management services,” said Empower President and CEO Edmund F. Murphy III. “As the broader macroeconomic picture and the markets present challenges, we will continue to deliver what individuals need to help them on their path to greater financial security.”

During the quarter, Empower Personal Wealth, established in January 2023, recognized a 23% growth in assets under administration year-over-year driven by market performance and positive net flows. The company is beginning to see the benefits of greater visibility among individual investors, heightened brand awareness and elevated customer loyalty from retirement plan participants becoming Personal Wealth customers.

In the Workplace Solutions business, Empower continues to achieve strong organic growth, with assets under administration up 14% on a year-over-year basis. Sales for Empower’s advisor-sold business (plans with under $50 million in assets) are up 35% year-over-year, following a record 2023.

Recent wins in the public plan sector have shown particular growth in 2024. Empower serves state-level plans for 29 of 50 states and in total supports the retirement needs of more than 4.1 million public workers who have invested more than $240 billion in assets across Empower’s government business, as of June 30.

So far this year, Empower announced new and retained client commitments from public plan clients across the country, such as the County of Orange (Calif.) with approximately $2.5 billion in assets and the Kansas Public Employees Retirement System (KPERS) with more than 27,300 plan participants who have saved approximately $1.3 billion in assets. In addition, Empower announced several public transportation authority commitments, including the Santa Clara Valley Transportation Authority (VTA) based out of San Jose, Calif., New Jersey Transit, Chicago Transit Authority, Southeastern Pennsylvania Transportation Authority and METRO Transit Authority of Harris County. These recommitments encompass approximately 50,000 transit authority plan participants.

In addition, Prudential integration was completed in the second quarter of 2024. Retention targets exceeded and the expected U.S. $180 million pre-tax of run rate cost synergies have been achieved, according to the Great-West Lifeco release.

About Empower

Recognized as the second-largest retirement services provider in the U.S.2 by total participants, Empower administers approximately $1.6 trillion in assets for 18.6 million investors1 through the provision of retirement plans, advice, wealth management and investments. Connect with us on empower.com, Facebook, X, LinkedIn, TikTok and Instagram.

  1. As of June 30, 2024. Information refers to all retirement business of Empower Annuity Insurance Company of America (EAICA) and its subsidiaries, including Empower Retirement, LLC; Empower Life & Annuity Insurance Company of New York (ELAINY); and Empower Annuity Insurance Company (EAIC), marketed under the Empower brand. Assets under Administration (AUA) refers to the assets administered by Empower. AUA does not reflect the financial stability or strength of a company.
  2. Pensions & Investments DC Recordkeeper Survey (2024). Ranking measured by total number of participants as of December 31, 2023.

Securities, when presented, are offered and/or distributed by Empower Financial Services, Inc., Member FINRA/SIPC. EFSI is an affiliate of Empower Retirement, LLC; Empower Funds, Inc.; and registered investment adviser Empower Advisory Group, LLC. This material is for informational purposes only and is not intended to provide investment, legal, or tax recommendations or advice.

Empower refers to the products and services offered by Empower Annuity Insurance Company of America and its subsidiaries. “EMPOWER” and all associated logos and product names are trademarks of Empower Annuity Insurance Company of America.

©2024 Empower Annuity Insurance Company of America. All rights reserved. RO3772186-0824

Learn more:

To learn more about how we’re empowering plan sponsors and their participants to be more engaged in their retirement plans than ever before, call us on 800-719-9914.

Stephen Gawlik - Stephen.Gawlik@empower.com

Mandy Cassano - Mandy.Cassano@empower.com

Source: Empower

FAQ

What were Empower's Q2 2024 earnings?

Empower reported record Q2 2024 earnings of $236 million, representing a 19% year-over-year increase.

How much did Empower Personal Wealth's AUA grow in the past year?

Empower Personal Wealth's assets under administration (AUA) grew by 23% year-over-year.

What was the growth rate for Empower's Workplace Solutions AUA?

Empower's Workplace Solutions assets under administration (AUA) increased by 14% year-over-year.

How many state-level plans does Empower serve?

Empower serves state-level plans for 29 out of 50 states in the United States.

What was the total amount of assets administered by Empower as of Q2 2024?

As of Q2 2024, Empower administered more than $1.6 trillion in assets for 18.6 million individuals.

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