Great-West Lifeco Inc. has announced net earnings for its second quarter of $735 million, down by six per cent from the previous year. Base earnings stood at $830 million, up slightly compared to the same period in 2021.

“Against the backdrop of falling equity markets and elevated inflation, the company’s well diversified and resilient business portfolio delivered solid results,” stated Paul Mahon, President and CEO of Great-West Lifeco. “Strong insurance and investment results offset the dampening effect of equity markets on wealth and asset management businesses.” 

Mahon said the company is pleased with the progress it’s making on its strategic priorities including the recent close of Empower’s acquisition of the full-service retirement business of Prudential Financial Inc. 

“The integration of this and our other acquired businesses in the U.S. are on track and we remain confident in the outlook for Empower and our value creation objectives for the business,” said Mahon. 

In the U.S., financial services base earnings of US$123 million were down US$16 million or 12 per cent from the second quarter of 2021. The decrease was mainly due to lower Empower net fee income and higher operating expenses to support participant growth. These items were partially offset by base earnings of US$35 million related to the Prudential acquisition as well as higher contributions from investment experience.

Q2 Canada segment base earnings of $296 million were up one per cent with net earnings of $301 million. The increase was mainly due to favourable morbidity and investment experience in the Group Customer line, partially offset by lower fee income and unfavourable experience in its Individual Customer line.