In its latest quarterly financial statement, Great-West Lifeco reported net earnings attributable to common shareholders of $1.1 billion for the fourth quarter of 2024. This is an increase of 51% over the $740 million recorded for the quarter ended Dec. 31, 2023.

For the full year 2024, net earnings reached $3.9 billion. This represents an increase of $1.2 billion or 44% compared to the $2.7 billion in net earnings reported Dec. 31, 2023.

The company reported record base earnings of $1.1 billion for the fourth quarter of 2024, up 15% over the same period last year.

For the full year 2024, base earnings were up 14% over 2023, reaching $4.2 billion.

Paul Mahon, Great-West's President and CEO, stated that this strong growth across all business segments positions “the company for continued growth in 2025 and beyond.” 

Net income from insurance and investments  

Net income from insurance operations for all divisions amounted to $839 million in the fourth quarter of 2024, compared with $890 million in the same quarter of 2023. This represents a decline of 6%.

For the full year 2024, net income from insurance operations amounted to $3.2 billion, up $166 million or 5% on 2023.

Net income from investment operations for all divisions was $692 million in the fourth quarter of 2024, compared with $265 million in the same quarter of 2023.

For the full year 2024, net earnings from investment operations amounted to $2.5 billion, compared with net earnings of $1.5 billion at Dec. 31, 2023. This represents a 12-month increase of $966 million or 63%.

In Canada  

For Canadian operations, which include the insurer Canada Life, net earnings reached $336 million in the fourth quarter of 2024, compared with $166 million in the same quarter of 2023. This is an increase of 102%.

For the full year 2024, net income attributable to common shareholders from Canadian operations totaled $1.5 billion, an increase of $523 million or 54% compared with net income of $961 million at Dec. 31, 2023.

Among other developments, the company notes in its MD&A that, effective Nov. 1, 2024, Canada Life began administering dental benefits for approximately 1.4 million Canadians through the public service dental plans. Canada Life has administered the dental plan for active employees of the federal public service since 1987. 

United States  

U.S. operations posted net earnings of $304 million in the fourth quarter of 2024, compared with $194 million in the same quarter of 2023.

For the full year 2024, U.S. operations reported net earnings of $1.1 billion, an increase of $349 million or 45% over earnings reported in 2023.

In Europe  

European operations reported net earnings of $310 million in the fourth quarter of 2024, compared with $217 million in the same quarter of 2023. 

In its press release, the company explains this result primarily as a result of fee growth in Ireland, higher contractual service margin (CSM) and higher trading gains in the UK. These items were partly offset by less favorable group protection experience in the UK and health insurance experience in Ireland.

For the full year 2024, net earnings in Europe amount to $813 million, compared with $384 million in 2023. This is an increase of 112%.

Capital management  

Finally, the Capital and Risk Solutions segment reported net earnings of $194 million in the fourth quarter of 2024, compared with $215 million in the same quarter of the previous year.

For the full year 2024, this segment's net income totaled $618 million. This is a decline of 26% compared with the $833 million announced Dec. 31, 2023. 

In its management report, the company points out that it is studying the impact of forest fires in California in January 2025, i.e. after the end of the 2024 fiscal year. It estimates that the maximum possible loss on property catastrophe retrocession contracts would be $100 million. The company does not expect claims to reach this level.

Real estate  

In its presentation to investors, the company discusses its exposure to mortgage risk. It states that its real estate portfolio represents $38.9 billion, or 16% of invested assets, compared with 17% a year earlier.

Residential real estate, both single-family homes and apartments, accounts for 6.4% of the company's investment portfolio, while commercial real estate represents 9.5% of the insurer's investments. In both cases, the relative importance of these portfolios decreased slightly in 2024 compared with the previous year. 

For single-family homes, where the company estimates the value of the portfolio at $1.3 billion, 0.3% of mortgages are in arrears.

The value of office properties is estimated at just over $5 billion, or 2.1% of the portfolio, of which 49.6% is located in the United States. In this respect, the company points out in its management report that the economic slowdown and rising vacancy rates have created a more difficult context in the office property market. The valuation of certain assets has been reduced.