Empower's Remarkable Earnings Announcement
Empower recently celebrated a significant milestone by reporting record base earnings of $973 million, marking a commendable 30% increase compared to the previous year. This performance is attributed to robust business growth and considerable sales momentum in both the workplace and wealth management sectors throughout 2024.
Strong Financial Performance Indicators
The company also noted a notable rise in base return-on-equity, which has surged from around 12% to 16% in the past year. Additionally, Empower experienced an impressive net earnings growth of 42% in 2024, a testament to the company’s strategic focus on enhancing its service offerings and client engagement.
Empower's Market Position and Asset Management
As a leading provider of retirement and wealth management services, Empower administers approximately $1.8 trillion in assets under administration (AUA) for over 19 million individuals. The portfolio managed by Empower Workplace Solutions includes about 88,000 employer-sponsored retirement plans, reflecting a solid trust established with around 600,000 net new plan participants, representing a 3.4% increase from the last year.
Growth Driven by Strategic Initiatives
The integration of Prudential’s retirement business into Empower, coupled with efficient expense management, has contributed significantly to this strong growth in base earnings. The company’s Workplace Solutions unit experienced an impressive average growth rate of 22% in AUA for 2024.
Celebrating Personal Wealth Growth
Empower Personal Wealth, now celebrating its second anniversary, witnessed impressive growth, achieving a 29% increase in average AUA in 2024. This growth has been buoyed by successful efforts in capturing rollover volumes from defined contribution plans, effectively expanding Empower’s reach in the wealth management arena.
Vision for the Future
Empower President and CEO, Edmund F. Murphy III, expressed that the company's growth strategy centers around delivering effective financial advice to a wider audience. He emphasized that the four consecutive quarters of growth in 2024 are the result of collaboration with customers, advisors, and various partners—all focused on providing crucial advice to millions of individuals.
Murphy further highlighted, “The year 2024 proved we are positioned to further expand this business and assist our clients in seizing opportunities to enhance their financial security.”
About Empower
Empower, recognized as the second-largest retirement services provider in the U.S. by total participants, manages an impressive $1.8 trillion in assets for more than 19 million individuals. Its offerings include retirement plans, personalized advice, wealth management, and investment services. Empower continues to position itself as a leader in the financial services sector, enabling seamless connection with clients through innovative strategies.
Frequently Asked Questions
What is Empower's recent earnings growth?
Empower achieved a record base earnings of $973 million in 2024, a 30% increase from the previous year.
How many assets does Empower manage?
Empower administers approximately $1.8 trillion in assets under administration for over 19 million individuals.
What led to Empower's earnings growth?
The growth can be attributed to strategic business initiatives, effective integration with Prudential’s retirement business, and strong client engagement.
What is the growth of Empower Personal Wealth?
Empower Personal Wealth saw a remarkable 29% growth in average assets under administration in 2024.
Who is the CEO of Empower?
Edmund F. Murphy III is the President and CEO of Empower, guiding the company’s growth strategy and client-centric approach.
