Great-West Earnings: Empower Powers Strong Results; Increasing Our FVE to CAD 41

No-moat-rated Great-West Life reported a good set of numbers in the second quarter as the company benefited from higher interest rates, buoyant equity markets, and the company’s Empower business recording strong growth and profitability. The highlight in 2024 for us is the solid performance of the Empower business which is on course to become the largest segment for the company in the current year. We think that the Empower business has the best growth outlook among the various Great West business segments from a long-term perspective. The cost synergies achieved from the recent acquisitions made under the Empower business also bode well for shareholders.