Jeff Poulin, CEO of Canada Life Re, has revealed that the reinsurer delivered 22% of Great-West Lifeco’s base earnings in Q1 of 2024, which exceeded $1 billion for the first time.
According to the firm, this record figure reflects growth in expected insurance earnings, improved insurance experience, higher earnings on surplus and higher net fee income driven by equity market levels, and the contribution of recent acquisitions in Canada.
Great-West Lifeco additionally boasted exceeding $1.6 trillion of assets under administration in Q1. Meanwhile, net earnings from continuing operations in the opening quarter were $1.03 billion, up compared to $614 million a year ago.
Great-West Lifeco cited improved market experience from higher equity markets and interest rate movements, partially offset by business transformation impacts primarily in Canada and Empower.
Paul Mahon, President and CEO, Great-West Lifeco, commented, “We’ve had a strong start to the year, exceeding $1 billion in quarterly base earnings for the first time, building on our momentum from 2023.
“This is the third consecutive quarter of record base earnings supported by the deliberate actions we’ve taken to re-position and strengthen our portfolio of businesses. This disciplined execution against our strategies is unlocking value today and positioning Lifeco for sustainable medium and longer term growth and success.”
Jeff Poulin, CEO of Canada Life Re, added, “On the Reinsurance operations, Canada Life Reinsurance was no exception with 22% of the parent’s base earnings.
“Our Q1 2024 income showed strong results across all of our lines of business with our US mortality having one of its best quarters in years, good results on our Longevity book and our Catastrophe book, and continued strong earnings on our structured business. The structured business saw exceptional new business sales in Q1.”
