Denver-based recordkeeper Empower reported today that its retirement unit AUA grew by 22% in 2024 and added 600,000 net new plan participants in its retirement plan business.
“At the center of Empower’s growth strategy is the delivery of financial advice to more people in new ways.”
Empower President and CEO Edmund F. Murphy III
That, along with 29% growth in its wealth management unit led to the company achieving record base earnings of $973 million in 2024, up 30% over the prior year. Base return-on-equity has increased from approximately 12% to 16% in the past 12 months. Net earnings growth was 42% for 2024.
“At the center of Empower’s growth strategy is the delivery of financial advice to more people in new ways,” said Empower President and CEO Edmund F. Murphy III. “We achieved four strong quarters of growth in 2024 because our customers, their advisors, and the partners with whom we work are bringing much-needed advice to the millions of people we serve.
Empower released results as part of a broader quarterly announcement by its parent company, Winnipeg-based Great-West Lifeco.
Empower now administers $1.8 trillion in assets (AUA) for more than 19 million individuals. Empower Workplace Solutions manages approximately 88,000 employer-sponsored retirement plans, and the approximately 600,000 net new plan participants represents an increase of 3.4% over the last year.
Synergies from the integration of Prudential’s retirement business and Empower’s expense efficiency initiatives are reflected in Empower’s strong base earnings growth. For 2024, the average AUA growth in the company’s Workplace Solutions unit was 22%.
Empower Personal Wealth, which recognizes its second anniversary this quarter, saw 29% growth in average AUA in 2024. Positive net flows into Personal Wealth were supported by continued success in capturing rollover volume from defined contribution plans.
“The year 2024 proved we are positioned to further expand this business and help our clients seize opportunities to build the financial security they want and need,” said Murphy.
Empower also announced this week that it is Empower is partnering with Alegeus Technology to offer a consumer-directed healthcare (CDH) solution for consumers to manage their healthcare finances.
The solutions will include benefits such as health savings accounts (HSAs), flexible spending accounts (FSAs), health reimbursement accounts (HRAs), voluntary employees’ beneficiary association plans (VEBAs), wellness incentives, lifestyle benefits, and more. Among other features that Empower will provide are investment experiences that include fund lineups, Empower Stable Value for employers and members, and custom investment-lineup options.
SEE ALSO:
• Empower Expands Health Benefits With CDH Offering
• Recordkeepers Slowly Integrating AI in DC Plans
• Empower Enters Equity Compensation Market with Acquisition of OptionTrax
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.
