Assets under administration at Empower rose to $1.8 trillion in Q3 2024—a 26% increase year over year, and total retirement plan participants and clients are now 19 million, 4% higher than the prior year. Both are new highs for the Greenwood Village, Colo.-based recordkeeper.
“Empower is extending its appeal to a wider range of investors and employers who are making use of our expanded capabilities, insights and offerings.”
Empower President and CEO Edmund F. Murphy III
Empower today announced third-quarter earnings achieved as of September 30, 2024, through business growth, higher market returns and sales momentum in its Workplace Solutions and Personal Wealth units. The earnings were released as part of a broader quarterly announcement by its parent company, Winnipeg-based Great-West Lifeco.
Empower is reporting after-tax base earnings of $264 million, which brings full-year base earnings to $711 million. Third-quarter base earnings are up 35% year-over-year, and up 12% over second quarter 2024.
The Empower Workplace Solutions unit base earnings are up 32% year-over-year, primarily due to higher fees from higher equity markets and business growth. Retirement plan sales were $11.9 billion in the third quarter and $46 billion year-to-date up 40% as compared to this point last year.
“Empower is extending its appeal to a wider range of investors and employers who are making use of our expanded capabilities, insights and offerings,” said Empower President and CEO Edmund F. Murphy III, who noted that the company’s growth is the output of investing strategically in the needs of customers. “We’ve made significant investments in new services, technology and infrastructure and expanded our footprint across the financial services landscape. It’s clear that our new and existing customers are noticing the value we bring to them.”
Murphy cited the third-quarter announcement of Empower’s acquisition of Plan Management Corporation (PMC), the creator of OptionTrax, as the latest example of expanding capabilities. The combination brings together Empower’s retirement and wealth management services with OptionTrax’s equity compensation platform and administration services. The OptionTrax platform is currently used by more than 300 employers with approximately $62 billion in plan value.
During the quarter, Empower Personal Wealth (EPW), which was established in January 2023, recognized 16% year-over-year earnings growth with increases in fee income and margins offset with higher expenses. EPW is up 13% compared to the second quarter with higher fees offset with increased expense. EPW net new assets of $2.4 billion are up 26% year-over-year and 46% over the second quarter with retention continuing to improve and strong sales of $5.6 billion which is a 27% increase from prior year.
EPW has total assets under administration of $85 billion (up 32% year-over-year) and has approximately 711,000 clients, up 16% over the last year.
SEE ALSO:
• Empower Enters Equity Compensation Market with Acquisition of OptionTrax