Great-West’s Q2 Base Earnings Beat Estimates

Nice-West Lifeco (GWO) base earnings elevated 17% in its second quarter from a 12 months earlier, because of a contribution from Massachusetts Mutual Life Insurance coverage Firm. Nevertheless, internet revenue decreased 9.2% within the quarter. Nice-West Lifeco is a world monetary companies holding firm targeted on insurance coverage.

Web revenue attributable to shareholders was C$784 million (C$0.84 per diluted share) in Q2 2021, down from C$863 million (C$0.93 per share) in Q2 2020.

Excluding one-time gadgets, base earnings got here in at C$826 million (C$0.89 per share) within the quarter ended June 30, up 17% from C$706 million or (C$0.76 per share) within the prior-year quarter. Based on monetary information agency Refinitiv, Nice-West was anticipated to publish C$0.79 per share in base earnings.

The rise was attributable to the C$63-million contribution from MassMutual bought in December, rising inventory markets, and a positive morbidity expertise in Europe and Canada. (See Great-West Lifeco stock charts on TipRanks)

Nice-West president and CEO Paul Mahon mentioned, “We’ve remodeled our portfolio over the previous couple of years by capitalizing on a number of strategic initiatives and investments – together with, most lately, our settlement to accumulate Prudential Monetary, Inc.’s full-service retirement enterprise within the U.S. Our second quarter outcomes have been pushed by robust efficiency throughout segments with stable gross sales exercise. Simply as importantly, our enterprise integration actions within the U.S. stay on observe to ship focused monetary outcomes and robust buyer retention.”

Final month, Lifeco’s U.S. unit (Empower Retirement) agreed to purchase Prudential Monetary Inc’s full-service retirement enterprise for a complete worth of about $3.55 billion. This acquisition strengthens Empower Retirement’s place because the second-largest supplier of pension companies in america.

On July 25, Nationwide Financial institution Monetary analyst Gabriel Dechaine maintained a Maintain score on GWO whereas elevating its value goal to C$37.00 (from C$36.00). This suggests 2.6% draw back potential.

Consensus on the Avenue is that GWO is a Maintain primarily based on one Purchase and 6 Holds. The average Great-West Lifeco price target of C$39.00 implies 2.7% upside potential.

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