Empower today announced record first-quarter earnings attributed to business growth and sales momentum in its Workplace Solutions and Personal Wealth units. The Greenwood Village, Colo.-based recordkeeper now administers over $1.6 trillion in assets for 18.6 million individuals.
In addition, Empower announced it completed its integration of the retirement business it had acquired from Prudential Financial in 2022.
According to the firm, defined contribution (DC) plan assets under administration (AUA) grew over 15% year-over-year, while its personal wealth unit’s AUA jumped more than 25% over the first quarter of 2023 due to strong net inflows and positive markets.
The company realized base earnings of $211 million, an increase of $48 million, or 29%, compared to the first quarter of 2023. Great-West Lifeco, Empower’s Winnipeg-based parent company, credits the growth due to “the rise in fee income resulting from higher equity markets and growth in the business, higher surplus income, and the dividend income on Franklin Templeton shares, partially offset by lower spread income and higher marketing spending to support business growth.”
“The market for retirement services and consumer wealth management remains strong, even in the face of a macroeconomic climate presenting mixed messages,” said Empower President and CEO Edmund F. Murphy III, in a statement. “The millions of individuals we serve are staying the course with strong support from their advisors, workplace retirement plans, and employers.”
Prudential integration now complete
The news comes as Empower also announced it completed the incorporation of Prudential’s former retirement side into its business. Empower had previously closed its acquisition of the full-service offering in April 2022, and started moving retirement plans from Prudential’s recordkeeping system to Empower in early 2023 until concluding in the second quarter of 2024.
Through the integration process, Empower worked with 2,500 Prudential clients and 3.6 million participants, for a 91% participant retention rate as of March 31. Empower retained approximately $300 billion in client assets, or 94%.
With this acquisition, Empower says it hopes to leverage both its and Prudential’s expertise, while growing its technological expertise and product capabilities.
“This program was focused on elevating the services available to millions of retirement investors, their employers and advisors while asking them to trust us,” said Empower President and Chief Operating Officer Rich Linton.
The firm also touched on the success of its defined benefit (DB) and nonqualified plan offerings, adding that it saw notable market speed in its Institutional Separate Account business. In 2023, Empower achieved approximately $7.2 billion in Separate Account sales.
Empower has integrated 48,000 plans and 6.7 million participant accounts since it first acquired J.P. Morgan’s retirement business in 2014. In subsequent years, Empower integration programs have included the acquired MassMutual business in 2021, Prudential and other smaller acquisitions. Today, Empower has integrated $657 billion in client assets onto its platform.
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