Q1 2024 Great-West Lifeco Inc Earnings Call

May 2, 2024

Parts of the formal presentation are Ed Murphy, President and Chief Executive Officer in Power, and John Nielsen, Executive Vice President and Chief Financial Officer.

As I look around the table here today, there are three faces that are missing from the last quarter. Gary McNicholas retiring after 43 years, Jeff McAllen retiring after 40 years, and Archielle Retiring after 25 years.

I know they are listening in as keenly interested investors and want to thank them for their important contributions over so many years.

I also want to welcome a few officers who have not participated in Pascals with analysts and investors. John Nielsen, of note, as our LICO CFO , Fabrice Morin as president of our Canadian operations.

Jeff Poulin, who leads our Capital and Risk Solutions business, and also Linda Kerrigan, our appointed actuary. They along with other officers that you've heard from before will be available to answer your questions.

I'll now draw your attention to our cautionary notes regarding forward-looking information and non- GAAP financial measures and ratios which is found on slide two. These cautionary notes apply to the information we'll discuss during the call. Please turn to slide five.

I'm pleased to share that we've had a great start to the year, building on our momentum from 2023. Together our teams delivered a third consecutive quarter of record-based earnings, and for the first time, we exceeded $1 billion in base earnings. Net earnings were also over a billion this quarter.

These results reflect the intentional and disciplined work we've done to strengthen and reposition the portfolio for sustainable growth. We've seen excellence performance across all four of our operating segments, each of which have clear business strategies to unlock value and drive growth today and over the longer term.

In the U.S., the execution of our strategy continues to deliver results.

Empower reported record-based earnings this quarter surpassing 1.6 trillion in assets under administration. Past acquisitions have expanded Empowers scale and capabilities and continue to provide a foundation for strong and sustainable growth.

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Please be advised.

We've completed the integration of Prudential's full-service retirement business, solidifying empowers position as a preeminent workplace retirement services provider in the U.S.

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Empower exceeded retention targets set for this integration and successfully achieved is achieving its target run rate cost synergies. Ed will share more on Empowers' results and provide an integration update following my comments.

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They along with other officers that you've heard from before it will be available to answer your questions.

Now draw your attention to our cautionary notes regarding forward looking information and non-GAAP financial measures and ratios well, which is found on slide two these cautionary note supply to the information we'll discuss during the call. Please.

Across our businesses, we're delivering against our value creation goals, and we are operating at the top of the range of our base ROE medium-term objective. Our financial strength and flexibility leave us well positioned for continued strong growth. And our stable, of trusted brands, continues to support excellent performance and market leadership.

Please turn to slide five I.

Speaker Change: I am pleased to share that we've had a great start to the year building on our momentum from 2023.

Together, our teams delivered a third third consecutive quarter of record base earnings and for the first time, we exceeded $1 billion in base earnings net earnings were also over 1 billion this quarter.

Earlier this year, brand finance, a leading brand valuation consultancy, rated Canada like the third most valuable brand in Canada, and the highest ranked Canadian insurance company in a list of over 5,000 brands across industries.

These results reflect the intentional and disciplined work, we've done to strengthen and reposition the portfolio for sustainable growth. We've seen excellent performance across all four of our operating segments, each of which have clear business strategies to unlock value and drive growth today and over the longer term.

This recognition reflects our commitment and focus on our people, our customers, advisors, and communities.

Please turn to slide six.

Our results this quarter reflect a strong start to the year. Base earnings of $1 billion and base EPS of $1.9 increased 23% and 22% respectively over the prior year.

Speaker Change: In the U S. The execution of our strategy continues to deliver results.

<unk> reported record base earnings this quarter, surpassing $1 six trillion in assets under administration.

Base ROE increased to 17.2%, up over a full percentage point over the prior year, and book value for share also increased 6%. Our capital position continues to strengthen, including increased cash, a higher LICAT ratio, and a stable leverage ratio.

Speaker Change: Past acquisitions have expanded empowers scale and capabilities and continue to provide a foundation for strong and sustainable growth.

Speaker Change: We've completed the integration of Prudential's full service retirement business, solidifying and Paris position as the preeminent workplace retirement services provider in the U S.

Well, this was a great quarter. We want to note that the high earnings growth is relative to a softer first quarter in 2023, which was also the first under IFRS 17.

Empower exceeded retention target set for this integration and successfully achieved is achieving its target run rate cost synergies that.

We also note that the first quarter of 24 does not reflect the full potential impacts of global minimum tax, which will affect future quarters if enacted.

Speaker Change: Ed will share more on empowers results and provide an integration update following my comments across our businesses, we are delivering against our value creation goals and we are operating at the top of the range of our base ROE medium term objective.

Please turn to slide 7. In Canada, we delivered solid results and continued to take actions to position the business for sustainable growth and performance.

Speaker Change: Our financial strength and flexibility to leave us well positioned for continued strong growth.

In individual wealth, the acquisition of investment planning council, coupled with positive market performance, significantly accelerated growth in average AUA.

Speaker Change: And our stable of trusted brands continues to support excellent performance and market leadership.

Speaker Change: Earlier, this year brand finance, a leading brand valuation consultancy Raymond Cannibalized. The third most valuable brand in Canada, and the highest ranked Canadian insurance company and a list of over 5000 brand brands across industries.

While the acquisitions of IPC and value partners have improved net flows, the SEG fund industry remains in outflows. We're continuing to take steps to strengthen our individual wealth business as we build a leading platform for our advisors and customers, including re-inforcing the unique value segregated fund products have for customers.

Positioned for continued strong growth.

And our stable of trusted brands continues to support excellent performance and market leadership.

Earlier this year brand finance, a leading brand in valuation consultancy rated cannibalize the third most valuable brand in Canada, and the highest ranked Canadian insurance company and a list of over 5000 brand brands across industries. This recognition reflects our commitment and focus on our people our customers.

Ignition reflects our commitment and focus on our people our customers advisors and communities.

In group life and health, our results continue to reflect our leading position in the Canadian market, with premiums up 19% year over year driven by solid organic growth and the addition of the public service health care plan.

Speaker Change: Please turn to slide six.

Speaker Change: Our results this quarter reflect a strong start to the year.

Speaker Change: Base earnings of $1 billion, and basic EPS of $1 nine increased 23% and 22% respectively over the prior year.

Risers and communities.

In insurance and annuities, CSM increased over the last quarter largely due to a one-time reinsurance recapture gain. We continue to approach non-participating insurance with a focus on customer value, balance with pricing discipline. We do not consider CSM to be a key growth metric in Canada, given our capital-light growth focus on our workplace and wealth businesses.

Please turn to slide six.

Speaker Change: Based on our ROE increased to 17, 2%.

Our results this quarter reflect a strong start to the year.

Speaker Change: Over a full percentage point over the prior year and book value per share also increased 6%.

Base earnings of $1 billion in base EPS of $1, nine increased 23% and 22% respectively over the prior year.

Speaker Change: Our capital position continues to strengthen including increased cash by higher lockout ratio and a stable leverage ratio.

Based on our ROE increased to 17, 2%.

Over a full percentage point over the prior year and book value per share also increased 6%.

Speaker Change: This was a great quarter, we wanted to note that the high earnings growth is relative to a softer first quarter in 2023, which was also the first under <unk> 17.

Please turn to slide eight.

Our European business delivered a fifth consecutive quarter of growth across all value drivers.

Speaker Change: Our capital position continues to strengthen including increased cash are higher like cat ratio and a stable leverage ratio.

Speaker Change: We also note that the first quarter of 'twenty four does not reflect the full potential impacts of global minimum tax which will affect future quarters if enacted.

These results are supported by consistent performance across our product lines, which benefit from the stable nature of financial necessities like group benefits, annuities, and retirement savings.

Speaker Change: This was a great quarter, we wanted to note the high earnings growth is relative to a softer first quarter in 2023, which was also the first under <unk> 17.

Speaker Change: Please turn to slide seven.

Speaker Change: In Canada, we delivered solid results and continued to take actions to position the business for sustainable growth and performance.

Last year, we took disciplined actions across our European businesses to strengthen our market position. The benefits of these actions will be reflected in future quarter's results.

Speaker Change: We also note that the first quarter of 'twenty four does not reflect the full potential impacts of global minimum tax which will affect future quarters if enacted.

In individual wealth the acquisition of investment planning Council, coupled with positive market performance significantly accelerated growth in average AUM.

In wealth and retirement, average AUA was up 14% year over year due to good market performance and positive net inflows. Growth in wealth remains underpinned by our wealth strategy in Ireland under the Unio brand and through our JV with Allied Irish Bank.

Please turn to slide seven.

Speaker Change: In Canada, we delivered solid results and continued to take actions to position the business for sustainable growth and performance.

Speaker Change: While the acquisitions of IPC and value partners have improved net flows the segue fund industry remains in outflows, we're continuing to take steps to strengthen our individual wealth business as we build a leading platform for our advisers and customers, including reinforcing the unique value of segregated fund products have for customers.

Speaker Change: In individual wealth the acquisition of investment planning Council, coupled with positive market performance significantly accelerated growth in average AUM.

In workplace, we experience solid sales and organic growth in group life and health in both the UK and Ireland, with book premiums up 10% year over year. In insurance and annuities, individual and bulk annuity growth in the UK helped drive CSM up 17% year over year.

Speaker Change: In group life and health of our results continue to reflect our leading position in the Canadian market with premiums up 19% year over year, driven by solid organic growth and the addition of the public service health care plan.

Overall, this was a very strong quarter of quality earnings across Europe , and we feel well positioned to continue this performance over the medium term.

Edmund Francis Murphy: And insurance and annuities CSM increased over the last quarter, largely due to a onetime reinsurance recapture game.

In group life and health our results continue to reflect our leading position in the Canadian market with premiums up 19% year over year, driven by solid organic growth and the addition of the public service health care plan.

Please turn to slide nine.

Our capital and risk solutions business continue to create value with strong structured business growth and expansion into new markets.

Edmund Francis Murphy: We continue to approach non participating insurance with a focus on customer value balanced with pricing discipline, we do not consider CSM to be a key growth metric in Canada, given our capital light growth focus on our workplace and wealth businesses. Please.

And insurance and annuities CSM increased over the last quarter, largely due to a onetime reinsurance recapture game.

As a result of the global minimum tax not yet being in effect in Canada and the Barbados, these results exclude the anticipated tax impact we disclosed during our fourth quarter call last year or earlier this year.

Speaker Change: We continue to approach non participating insurance with a focus on customer value balance with pricing discipline, we do not consider CSM to be a key growth metric in Canada, given our capital light growth focus on our workplace and wealth businesses.

Please turn to slide eight.

Speaker Change: Our European business delivered a fifth consecutive quarter of growth across all value drivers.

CRS had positive insurance experience with lower than expected mortality results in our U.S. traditional lifebook. Our sales continued to grow largely through our U.S. structured business. Please note that this structured business is accounted for on a PAA basis and does not impact CSM.

Speaker Change: These results were supported by consistent performance across our product lines, which benefit from the stable nature of financial necessities like group benefits annuities and retirement savings last year, we took disciplined actions across our European businesses to strengthen our market position. The benefits of these actions will be reflected in future.

Speaker Change: Please turn to slide eight.

Speaker Change: Our European business delivered a fifth consecutive quarter of growth across all value drivers.

Looking ahead, we see lots of opportunity for our CRS business to continue to grow and act as an important diversifier for Lifeco through discipline pricing and risk selection in line with our value creation objectives.

Speaker Change: Quarter's results.

In wealth and retirement average AUM was up 14% year over year due to good market performance and positive net inflows.

I'm now going to turn the call over to Ed Murphy to discuss the Empower results. Over to you, Ed. Great. Thank you, Paul. Good afternoon, everyone.

Speaker Change: And wealth remains underpinned by our wealth strategy and Ireland under the <unk> brand and through our JV with Allied Irish Bank and.

Speaker Change: Quarter's results.

We delivered a strong quarter to empower with growth across both workplace solutions and personal wealth. In both business lines, we continue to earn new business and capitalize on our enviable market position, with a differentiated offer in the retirement services space.

Speaker Change: In wealth and retirement average AUR was up 14% year over year due to good market performance and positive net inflows.

In workplace, we experienced solid sales and organic growth in group life and health in both the UK and Ireland with book premiums up 10% year over year.

Speaker Change: And wealth remains underpinned by our wealth strategy and Ireland under the <unk> brand and through our JV with Allied Irish Bank.

Speaker Change: And insurance and annuities individual and bulk annuity growth in the U K helped drive CSM up 17% year over year.

Our wealth business continues to see gains in large part as a result of a scale brought by our workplace business.

Speaker Change: In workplace, we experienced solid sales and organic growth in group life and health in both the UK and Ireland with book premiums up 10% year over year.

Speaker Change: Overall this was a very strong quarter of quality earnings across Europe, and we feel well positioned to continue this performance over the medium term.

Our average AUA has risen to $1.6 trillion supported by the benefits of higher markets. Over the past year, our average AUA is up more than 15% in the workplace business.

Speaker Change: And insurance and annuities individual and bulk annuity growth in the U K helped drive CSM up 17% year over year.

Speaker Change: Please turn to slide nine.

Speaker Change: Our capital and risk solutions business continued to create value with strong structured business growth and expansion into new market as.

Speaker Change: Overall this was a very strong quarter of quality earnings across Europe, and we feel well positioned to continue this performance over the medium term.

We've seen especially strong growth in the public plan sector and also in the advisor-sold segment where we continue to benefit from strong relationships with intermediaries.

Speaker Change: As a result of the global minimum tax not yet being in effect in Canada and the Barbados. These results exclude the anticipated tax impact we disclosed during our fourth quarter call last year for.

Speaker Change: Please turn to slide nine.

Speaker Change: Our capital and risk solutions business continued to create value with strong structured business growth and expansion into new markets. As a result of the global minimum tax not yet being in effect in Canada and the Barbados. These results exclude the anticipated tax impact we disclosed during our fourth quarter call last year.

In fact, Empower recently introduced a new innovation to the workplace market to help address the needs of smaller employers.

Or earlier this year.

Speaker Change: Crs had positive insurance experience with lower than expected mortality results in our U S traditional life book.

Leveraging our digital capabilities, this offering helps streamline the end-to-end 401 plan setup process and simplifies plan features and design decision points. The new solution helps to reduce both cost and administrative burdens, often faced by small employers.

Speaker Change: Our sales continued to grow largely through our U S. Structured business. Please note that the structured business is accounted for on a PAA basis and does not impact CSM.

Or earlier this year.

Speaker Change: Crs had positive insurance experience with lower than expected mortality results in our U S traditional life book.

Speaker Change: Looking ahead, we see lots of opportunity for our Crs business to continue to grow and that is an important diversified for lifestyle through disciplined pricing and risk selection in line with our value creation objectives.

Recent new policy improvements, the Secure 2.0 Act, including tax incentives, have created new opportunities for employers to start retirement plans.

Speaker Change: Sales continued to grow largely through our U S. Structured business. Please note that the structured business is accounted for on a PAA basis and does not impact CSM.

Speaker Change: Now going to turn the call over to Ed Murphy to discuss the empower result over to you Ed great. Thank you Paul and good afternoon, everyone. We.

This has the two-fold benefit of putting in power in a positive industry leadership position and helping to address a pressing public policy retirement need in the U.S.

Speaker Change: Looking ahead, we see lots of opportunity for our Crs business to continue to grow and that is an important diversifying for lifestyle through disciplined pricing and risk selection in line with our value creation objectives I am now going to turn the call over to Ed Murphy to discuss the empower results over to you Ed great. Thank you Paul and good afternoon, everyone.

Edmund Francis Murphy: We delivered a strong quarter at empower with growth across both workplace solutions and personal wealth and.

A third-party research firm, Surrullian Associates, recently published a forecast showing significant growth potential in the 401k market in the U.S.

Edmund Francis Murphy: In both business lines, we continue to earn new business and capitalize on our enviable market position with a differentiated offer in the retirement services space.

Edmund Francis Murphy: We delivered a strong quarter at empower with growth across both workplace solutions and personal wealth and.

There are approximately 700,000 plans in existence today. Due to these new opportunities for small employers to start retirement plans, by the end of the decade, that number could total a million plans, increasing the market size from $31 trillion to a predicted $47 trillion, according to Surul.

Edmund Francis Murphy: Our wealth business continues to see gains in large part as a result of the scale brought by our workplace business.

Edmund Francis Murphy: In both business lines, we continue to earn new business and capitalize on our enviable market position with a differentiated offer in the retirement services space.

Edmund Francis Murphy: Our average AUR has risen to one six trillion supported by the benefits of higher markets.

Edmund Francis Murphy: Over the past year, our average <unk> is up more than 15% in the workplace business.

Speaker Change: Our wealth business continues to see gains in large part as a result of the scale brought by our workplace business.

In addition, Empower announced new partnerships with industry peers to offer a suite of retirement income products in the market.

Edmund Francis Murphy: We have seen especially strong growth in the public plans sector and also any advisor sold segment, where we continue to benefit from strong relationships with intermediaries.

Speaker Change: Our average <unk> has risen to one six trillion supported by the benefits of higher markets over the past year, our average is up more than 15% in the workplace business.

The case for retirement income in our market is strong, and our demonstrated leadership role in the industry positions us advantageously for the future.

And in fact, empower recently introduced a new innovation to the workplace market to help address the needs of smaller employers.

Speaker Change: We have seen especially strong growth in the public plans sector and also any advisor sold segment, where we continue to benefit from strong relationships with intermediaries.

One of the hallmarks of our successful workplace business is the diversified client base we serve. The business benefits from a segmentation strategy that has empowered servicing the needs of different clients through different channels and approaches.

Edmund Francis Murphy: Leveraging our digital capabilities. This offering helps streamline the end to end 401, K plan setup processed and simplifies planned features and design design decision points the.

Speaker Change: And in fact, empower recently introduced a new innovation to the workplace market to help address the needs of smaller employers.

The new solution helps to reduce both cost and administrative burdens often faced by small employers.

On the personal wealth side, average assets under administration is up 25% since the first quarter of last year, which was when the new Empower personal wealth brand was launched.

Speaker Change: Leveraging our digital capabilities. This offering helps streamline the end to end 401, K plant setup process and simplifies plant features and design design decision points.

Edmund Francis Murphy: Recent new policy improvements.

Secure pointed out including tax incentives have created new opportunities for employers to start retiring plants.

Both strong market performance and continued net inflows have contributed to our success in this business.

Speaker Change: The new solution helps to reduce both cost and administrative burdens often faced by small employers.

Edmund Francis Murphy: This has a twofold benefit of putting empower and positive industry leadership position and helping to address the pressing public policy retirement need in the U S.

Please turn to slide 12.

Speaker Change: Recent new policy improvements.

Empower is built on a foundation of three building blocks that make us successful. Industry leading retirement plan services

Secure two point I'll act, including tax incentives have created new opportunities for employers to start retiring plants.

A third party research firms certainly in associates recently published a forecast showing significant growth potential in the 401K market in the U S. <unk>.

growing our direct-to-consumer wealth-managing business in M&A excellence.

Speaker Change: This has the twofold benefit of putting in power and a positive industry leadership position and helping to address pressing public policy retirement need in the U S.

In today's remarks, I will focus on the third item listed here, excellence in M&A. Turn to slide 13, please.

Approximately 700000 plans in existence today.

Speaker Change: A third party research firms Cerulean Associates recently published a forecast showing significant growth potential in the 401K market in the U S.

Edmund Francis Murphy: These new opportunities for small employers to start retirement plans by the end of the decade that number could total 1 million plans.

Customers and intermediaries recognize that Empower has made acquisitions and investments. They know that we're committed to the retirement services market while other providers have exited.

Edmund Francis Murphy: Increasing the market size from 31 trillion to predicted 47 trillion according to thoroughly.

Speaker Change: There are approximately 700000 plans in existence today.

We believe this is a critically important factor in our growth and provides intrinsic value to our brand and reputation that is not always quantifiable.

Speaker Change: These new opportunities for small employers to start retirement plans by the end of the decade that number could total 1 million plans, increasing the market size from 31 trillion to a predicted 47 trillion according to thoroughly.

Edmund Francis Murphy: In addition, empower announced new partnerships with industry peers to offer a suite of retirement income products in the market.

Customers want to put their plans with a provider that is committed to the retirement business.

Edmund Francis Murphy: The case for retirement income in our market is strong and our demonstrated leadership role in the industry positions us advantageously for the future.

Empowers acquisitions of J.P. Morgan, Mass Mutual, and Prudential have helped to deliver that message.

Speaker Change: In addition, empower announced new partnerships with industry peers to offer a suite of retirement income products in the market.

Edmund Francis Murphy: One of the hallmarks of our successful workplace business is a diversified client base, we serve the business benefits from a segmentation strategy that has empower servicing the needs of different clients through different channels and approaches.

Following these acquisitions, Empower now administers 1.6 trillion in assets on behalf of 18.6 million individuals.

Edmund Francis Murphy: Case for retirement income in our market is strong and our demonstrated leadership role in the industry positions us advantageously for the future.

Please turn to slide 14. Since 2014, Empower has generated significant value by utilizing its technology and integration prowess to drive synergies and reduce cost.

Edmund Francis Murphy: On the personal wealth side average assets under administration.

Edmund Francis Murphy: Is up 25% since the first quarter of last year.

Edmund Francis Murphy: It was when the new empower personal wealth brand was launched.

During that period, Empower successfully completed 26 different plan migration waves, including 48,000 plans, 6.7 million participants,

Edmund Francis Murphy: Strong market performance and continued net inflows have contributed to our success in this business.

Edmund Francis Murphy: On the personal wealth side average assets under administration is.

Edmund Francis Murphy: He is up 25% since the first quarter of last year, which was when the new empower personal wealth brand was launched.

Edmund Francis Murphy: Please turn to slide 12.

from 10 different record keeping platforms, 500 billion data values. In total, we have integrated 657 billion in assets.

Edmund Francis Murphy: And power is built on a foundation of three building blocks that make us successful industry, leading retirement plan services.

Edmund Francis Murphy: Both strong market performance and continued net inflows have contributed to our success in this business.

Edmund Francis Murphy: Growing our direct to consumer wealth management business and M&A excellence.

What we have accomplished here is not simple. Record keeping integration requires significant skill set, and we have the best team in the industry that knows how to do this work.

Edmund Francis Murphy: Please turn to slide 12.

Edmund Francis Murphy: And power is built on a foundation of three building blocks that make us successful industry, leading retirement plan services.

Edmund Francis Murphy: In today's remarks, I will focus on the third item listed here excellence and M&A.

Edmund Francis Murphy: Turning to slide 13 please.

Please turn to slide 15.

Edmund Francis Murphy: Growing our direct to consumer wealth management business and M&A excellence.

Edmund Francis Murphy: Customers and intermediaries recognize that empower has made acquisitions and investments they know that we're committed to the retirement services market.

Turning to the mass neutral and prudential integrations, I'm pleased to share that we have completed the prudential integration with the final piece occurring this month.

Edmund Francis Murphy: In today's remarks, I will focus on the third item listed here excellence and M&A.

Edmund Francis Murphy: While other providers have exited.

Edmund Francis Murphy: Turning to slide 13 please.

Edmund Francis Murphy: We believe this is a critically important factor in our growth and provides intrinsic value to our brand and reputation that is not always quantifiable.

Our team is highly skilled in this area and the commitment to both quality and achieving our synergy goals has led to a successful program.

Edmund Francis Murphy: Customers and intermediaries recognize that empower has made acquisitions and investments they know that we're committed to the retirement services market.

This work is a great testament to the dedication of our teams.

Edmund Francis Murphy: Customers want to put their plans with a provider that is committed to the retirement business and.

Edmund Francis Murphy: While other providers have exited.

Edmund Francis Murphy: We believe this is a critically important factor in our growth and provides intrinsic value to our brand and reputation that is not always quantifiable.

Similar to the mass mutual business, the retention levels of the prudential business are above original expectation. This includes asset retention of 94% and revenue retention of 86%.

Edmund Francis Murphy: And power's acquisitions of JP Morgan mass mutual and Prudential has helped to deliver that message.

Edmund Francis Murphy: Following these acquisitions in power now administers one six trillion in assets.

Edmund Francis Murphy: Customers want to put their plans with a provider that is committed to the retirement business and.

Cost synergies have met targets for both transactions and allowed us to take 39% of cost out of the mass mutual business and 32% out of the prudentialists.

Edmund Francis Murphy: On behalf of $18 6 million individuals.

Edmund Francis Murphy: And power's acquisitions of JP Morgan mass mutual and Prudential has helped to deliver that message.

Edmund Francis Murphy: Please turn to slide 14.

Edmund Francis Murphy: Since 2014, and power has generated significant value by utilizing our technology and integration prowess to drive synergies.

Edmund Francis Murphy: Following these acquisitions in power now administered one six trillion in assets on behalf of $18 6 million individuals.

Along with these financial metrics, empowers integration of the Poo business offers a true expansion of our capabilities. Our ability to offer a broader set of financial benefits to workplace clients now includes defined benefit, non-qualified plan administration, and insurance separate accounts.

Edmund Francis Murphy: And reduce costs.

Edmund Francis Murphy: During that period empower successfully completed 26 different planned migration wave.

Edmund Francis Murphy: Please turn to slide 14.

Edmund Francis Murphy: Since 2014 and power has generated significant value by utilizing this technology and integration prowess to drive synergies.

Edmund Francis Murphy: Including 48 planned $6 7 million participants.

Edmund Francis Murphy: 10 different record keeping platforms $500 billion data values in total we have integrated $657 billion in assets.

Edmund Francis Murphy: And reduce cost.

As the benefits market and the U.S. continues to develop, we are well positioned to meet growing client interest in this product suite.

Edmund Francis Murphy: During that period empower successfully completed 26 different planned migration waves, including 48000 plans $6 7 million participants.

Please turn to slide 16.

Edmund Francis Murphy: What we have accomplished here is not simple recordkeeping integration will require a significant skill set and we have the best team in the industry that knows how to do this work.

With the completion of the prudential acquisition, it's important to demonstrate that the benefits of scale are becoming apparent in our cost structure despite the impact of inflation.

Edmund Francis Murphy: From 10 different record keeping platforms.

Edmund Francis Murphy: <unk> hundred billion data values in total we have integrated $657 billion in assets.

On slide 16, starting on the left side of the page, we define our base cost per participant as those costs pre-acquisition to be 100%.

Edmund Francis Murphy: Please turn to slide 15.

Edmund Francis Murphy: What we have accomplished here is not simple recordkeeping integration require significant skill set and we have the best team in the industry that knows how to do this work.

Edmund Francis Murphy: Turning to the mass mutual in Prudential integrations I'm pleased to share that we have completed the prudential integration with the final piece occurring this month.

Costs per participant increased 17 percentage points with the additions of both mass neutral and prudential who are operating at higher expense levels. Realizing the cost synergies reduce the overall cost by participant by 20 percentage points. Then with an inflationary market, Empower was able to achieve efficiencies

Edmund Francis Murphy: Our team is highly skilled in this area and the commitment to both quality and achieving our synergy goals has led to a successful program.

Edmund Francis Murphy: Please turn to slide 15.

Edmund Francis Murphy: Turning to the mass mutual in Prudential integrations I am pleased to share that we have completed the prudential integration with the final piece occurring this month.

Edmund Francis Murphy: This work is a great Testament to the dedication of our team.

Edmund Francis Murphy: Similar to the mass mutual business the retention levels of the Prudential business are above the original expectation.

Edmund Francis Murphy: Our team is highly skilled in this area and the commitment to both quality and achieving our synergy goals has led to a successful program.

which added scale for a further reduction of three percentage points.

Edmund Francis Murphy: This includes asset retention of 94% and revenue retention of 86%.

Edmund Francis Murphy: This work is a great Testament to the dedication of our teams.

Over this time period of 2020 to 2024, and power has seen an overall reduction in cost per participant at 6%, which really positions us well.

Edmund Francis Murphy: Cost synergies have met targets for both transactions and allowed us to take 39% of cost out of the mass mutual business and 32% out of the Prudential lists.

Edmund Francis Murphy: Similar to the mass mutual business the retention levels of the Prudential business are above the original expectation. This.

Edmund Francis Murphy: This includes asset retention of 94% and revenue retention of 86%.

Please turn to slide 17.

Edmund Francis Murphy: Along with these financial metrics empowers integration of the <unk> business offers a true expansion of our capabilities.

Recognizing the success of the past few years, Empower does still have further opportunities to expand cost leadership, allowing for investment in customer experience, continued organic growth, and higher margins.

Edmund Francis Murphy: Cost synergies have net targets for both transactions and allowed us to take 39% of cost out of the mass mutual business and 32% out of the Prudential lists.

Edmund Francis Murphy: Our ability to offer a broader set of financial benefits to workplace clients. Now includes defined benefit Nonqualified plan administration and insurance separate accounts.

Edmund Francis Murphy: Along with these financial metrics empowers integration of the <unk> business offers a true expansion of our capabilities.

Examples of some of these opportunities include redesigning end-to-end processes in a scalable way with a client-centric view, increasing utilization of Gen AI in automation, further leveraging our global footprint to maximize our talent pools.

Edmund Francis Murphy: The benefits market in the U S continues to develop we are well positioned to meet growing client interest in this product suite.

Edmund Francis Murphy: Please turn to slide 16.

Edmund Francis Murphy: With the completion of the Prudential acquisition, it's important to demonstrate that the benefits of scale are becoming apparent in our cost structure.

Edmund Francis Murphy: The benefits market in the U S continues to develop we are well positioned to meet growing client interest in this product suite.

optimizing how we communicate with our clients.

And finally, further participating in market consolidation on an opportunistic basis.

Edmund Francis Murphy: Fight the impact of inflation.

Edmund Francis Murphy: On slide 16, starting on the left side of the page, we define our base cost per participant as those cost pre acquisition to be 100%.

Edmund Francis Murphy: Please turn to slide 16.

With that, I'll now turn the call over to John to review the financial results.

Edmund Francis Murphy: With the completion of the Prudential acquisition, it's important to demonstrate that the benefits of scale are becoming apparent in our cost structure.

Thank you, Ed. Please turn to slide 18. Before I get into my remarks on the quarter, I'd like to take the opportunity to express how excited I am to be part of Great West Lifecoe and help the business build on the great momentum that we've delivered over the past few years.

Edmund Francis Murphy: Cost per participant increased 17 percentage points with the additions of both mass mutual in Prudential, who are operating at higher expense levels.

Edmund Francis Murphy: Spike the impact of inflation.

Edmund Francis Murphy: On slide 16, starting on the left side of the page, we define our base cost per participant as those cost pre acquisition to be 100%.

Edmund Francis Murphy: Realizing the cost synergies reduce the overall cost by participant by 20 percentage points.

I wanted to particularly thank Gary for his support during the transition, as well as for his outstanding achievements at CFO for the last nine years.

Edmund Francis Murphy: Cost per participant increased 17 percentage points with the additions of both mass mutual in Prudential, who are operating at higher expense levels.

Edmund Francis Murphy: And with an inflationary market empower was able to achieve efficiencies.

Edmund Francis Murphy: Which added scale for a further reduction of three percentage points.

Despite continued uncertainty and volatility as the market response to inflationary pressures and central bank responses, as well as the ongoing geopolitical tensions, the macro environment has benefited our financial results, primarily as a result of higher interest rates and equity market returns.

Edmund Francis Murphy: Realizing the cost synergies reduce the overall cost by participant by 20 percentage points.

Edmund Francis Murphy: Over this time period of 2020 to 2024 empower has seen an overall reduction in cost per participant of 6%, which really positions us well.

Edmund Francis Murphy: And with an inflationary market in power was able to achieve efficiencies.

Edmund Francis Murphy: Which added scale for a further reduction of three percentage points.

Edmund Francis Murphy: Please turn to slide 17.

Edmund Francis Murphy: Over this time period of 2020 to 2024 and power has seen an overall reduction in cost per participant of 6%, which really positions us well.

The equity market performance supported growth and assets under administrations within our wealth and retirement businesses.

Edmund Francis Murphy: Recognizing the success of the past few years empower does still have further opportunities to expand cost leadership.

Edmund Francis Murphy: Allowing for investment in customer experience continued organic growth and higher margins.

This has increased our asset-related revenues, which are just one of the diverse revenue streams that we have within these businesses.

Edmund Francis Murphy: Please turn to slide 17.

Edmund Francis Murphy: Examples of some of these opportunities include redesigning end to end processes in a scalable way with a client centric view.

Edmund Francis Murphy: Recognizing the success of the past few years empower does still have further opportunities to expand cost leadership.

I would note, while this S&P 500 was up more than 10% for the first quarter, approximately half of the gain was driven by just four stocks.

Edmund Francis Murphy: Allowing for investment in customer experience continued organic growth and higher margins.

Edmund Francis Murphy: Increasing utilization of Gen AI and automation.

Many of our customers have balanced portfolios comprised of a mix of public equities and fixed income, leading to a diversified exposure as opposed to being concentrated in those four stocks.

Edmund Francis Murphy: Further leveraging our global footprint to maximize our talent pools opt.

Edmund Francis Murphy: Examples of some of these opportunities include redesigning end to end processes in a scalable way with a client centric view, increasing utilization of Gen AI and automation.

Edmund Francis Murphy: Optimizing how we communicate with our clients.

Edmund Francis Murphy: And finally further participating in market consolidation on an opportunistic basis.

In the recent quarter, we experienced slightly higher interest rates, which have continued into the second quarter.

Edmund Francis Murphy: Further leveraging our global footprint to maximize our talent pools.

Edmund Francis Murphy: With that I'll now turn the call over to John to review the financial results.

Edmund Francis Murphy: Optimizing how we communicate with our clients.

This led to positive market experience within the first quarter of 2024 and more fundamentally provide the tailwind through higher yields on our surplus as a result of the relatively short duration of these portfolios.

John: Thank you Ed Please turn to slide 18, before I get into my remarks on the quarter I'd like to take the opportunity to express how excited I am to be part of great West Lifeco and help the business build on the great momentum that we delivered over the past few years.

Edmund Francis Murphy: Finally further participating in market consolidation on an opportunistic basis.

Edmund Francis Murphy: With that I'll now turn the call over to John to review the financial results. Thank.

In terms of currency exposures to earnings, the U.S. dollar and the euro were stable with limited changes year over year or quarter over quarter. The British pound gained against the Canadian dollar compared to the prior year, which has modestly benefited our results.

John: Thank you Ed Please turn to slide 18, before I get into my remarks on the quarter I'd like to take the opportunity to express how excited I am to be part of great West Lifeco and helped the business build on the great momentum that we delivered over the past few years I wanted to particularly thank Gary for his support during the transition.

Edmund Francis Murphy: Wanted to particularly thank Gary for his support during the transition as well its fares outstanding achievements.

Edmund Francis Murphy: CFO for the last nine years.

Edmund Francis Murphy: <unk> continued uncertainty and volatility as the market response to inflationary pressures and central bank responses as well as the ongoing geopolitical tension the macro environment has benefited our financial results, primarily as a result of higher interest rates and equity market returns the equity market.

Turning to page 19.

As Paul noted earlier, we had another record 20.

Edmund Francis Murphy: As well, it's fair as outstanding achievements as CFO.

Edmund Francis Murphy: CFO for the last nine years.

Page 20, as Paul noted earlier, we had a record quarter for our base earnings continuing the excellent results in the last three quarters of 2023, and we surpassed one billion of base earnings for the first time. It's also important to highlight that this is the first year-over-year comparison where we operated under IFRF17.

Edmund Francis Murphy: Despite continued uncertainty and volatility as the market response to inflationary pressures and central bank responses as well as the ongoing geopolitical tensions the macro environment has benefited our financial results, primarily as a result of higher interest rates and equity market returns the equity Mark.

Edmund Francis Murphy: Performance supported growth in assets under administrations.

Edmund Francis Murphy: Within our wealth and retirement businesses.

Edmund Francis Murphy: <unk> increased our asset related revenues, which are just one of the diverse revenue streams that we have within these businesses.

We have now adjusted to this new reporting basis and believe it provides a greater degree of transparency and the high quality of earnings that our businesses generate.

Edmund Francis Murphy: Performance supported growth in assets under administrations within our wealth and retirement businesses.

Edmund Francis Murphy: I would note while the S&P 500 was up more than 10% for the first quarter approximately half of the gain was driven by just four stocks. Many of our customers have balanced portfolios comprised of a mix of public equities and fixed income leading to a diversified exposure as opposed to being cons.

Edmund Francis Murphy: This has increased our asset related revenues, which are just one of the diverse revenue streams that we have within these businesses.

We continue to build on the strong foundation and look to further optimize our businesses in this new environment. Year over your growth in base earnings was driven by excellent performance across all four of our segments.

Edmund Francis Murphy: I'd note, while the S&P 500 was up more than 10% for the first quarter approximately half of the gain was driven by just four stocks. Many of our customers have balanced portfolios comprised of a mix of public equities and fixed income leading to a diversified exposure as opposed to being concentrated.

The results for this quarter do not reflect the full anticipated global minimum tax impact that we shared in our fourth quarter earnings call. This quarter only reflects a small impact in Ireland, which has enacted the new tax regime.

Edmund Francis Murphy: Centralia and those four stocks.

Edmund Francis Murphy: In the recent quarter, we experienced slightly higher interest rates, which have continued into the second quarter. This led to positive market experience within the first quarter of 2024 and more fundamentally provides a tailwind through higher yields on our surplus as a result of the relatively short duration of these.

Edmund Francis Murphy: And those four stocks in the recent quarter, we experienced slightly higher interest rates, which have continued into the second quarter. This led to positive market experience within the first quarter of 2024 and more fundamentally provides a tailwind through higher yields on our surplus as a result of that.

The new regime is yet to be effective in Canada or Barbados. If it had been in effect, the impact on our first quarter results would have been a reduction in earnings of approximately 35 million, about 80% within our capital and risk solutions, and 20% within Europe .

Edmund Francis Murphy: Leo.

Leo: In terms of currency exposures to earnings the U S dollar and the Euro were stable with limited changes year over year or quarter over quarter. The British pound gained against the Canadian dollar compared to the prior year, which had modestly benefited our results.

Our base return on equity for the quarter is slightly above the upper end of our medium-term objective of 16 to 17%.

Edmund Francis Murphy: Relatively short duration of these portfolios in terms of currency exposures to earnings the U S dollar and the euro were stable with limited changes year over year or quarter over quarter. The British pound gained against the Canadian dollar compared to the prior year, which is modestly benefited our results.

Edmund Francis Murphy: Turning to page 19.

Edmund Francis Murphy: As Paul noted earlier, we had another record 2020.

The improvement in ROE has been driven by growth and base earnings, the successful integration of empowers recent acquisitions, and discipline capital allocation as we continue to grow our capital life, wealth, and workplace businesses.

Edmund Francis Murphy: Turning to page 19.

Edmund Francis Murphy: As Paul noted earlier, we had another record.

Turning slide 21.

Edmund Francis Murphy: <unk> page.

Edmund Francis Murphy: It's also important to highlight that this is the first year over year comparison, where we operated under <unk> 17.

As I mentioned earlier, you can see on this slide that all four segments strongly contributed to base earnings growth. In Canada, base earnings were driven by solid business performance and strong insurance experience, particularly in our long-term disability business, as well as the contributions from our recent wealth acquisition.

Edmund Francis Murphy: Page 20, as Paul noted earlier, we had a record quarter for our base earnings continuing the excellent results in the last three quarters of 2023, and we surpassed $1 billion of base earnings for the first time. It's also important to highlight that this is the first year over year comparison, where we operated under <unk>.

Edmund Francis Murphy: We have now adjusted to this new reporting basis and believe it provides a greater degree of transparency and the high quality of earnings that our businesses generate.

Edmund Francis Murphy: We continue to build on our strong foundation and look to further optimize our businesses in this new environment year over year growth in base earnings was driven by excellent performance across all four of our segments.

In the U.S., Empower had another quarter of earnings growth with the continued integration of the prudential business, higher fee income from equity markets, a modest increase in crediting rates, and steady growth in personal wealth.

John: <unk>.

John: We have now adjusted to this new reporting basis and believe it provides a greater degree of transparency and the high quality of earnings that our businesses generate we continue to build on the strong foundation and look to further optimize our businesses in this new environment year over year growth in base earnings was driven by excellent.

Edmund Francis Murphy: The results for this quarter.

Edmund Francis Murphy: Do not reflect the full anticipated global minimum tax impacts that we shared in our fourth quarter earnings call. This quarter only reflects a small impact in Ireland, which is enacted the new tax regime. The new regime is yet to be effective in Canada or <unk>.

Growth and base earnings led to an increase in ROE of over 100 basis points.

Over time, we expect the ROE for Empower to move towards our medium-term objective of 16 to 17%. In Europe , growth in net fee income, earnings on surplus, and expected insurance earnings more than offset a higher effective tax rate.

Edmund Francis Murphy: Performance across all four of our segments.

Edmund Francis Murphy: The results for this quarter.

Edmund Francis Murphy: Do not reflect the full anticipated global minimum tax impact that we shared in our fourth quarter earnings call. This quarter only reflects a small impact in Ireland, which is enacted the new tax regime. The new regime is yet to be effective in Canada or Barbados, if it had been in effect.

Edmund Francis Murphy: Our betas if it had been in effect the impact on our first quarter results would have been a reduction in earnings of approximately $35 million about 80% within our capital and risk solutions and 20% within Europe.

Base earnings growth within capital and risk solutions reflected the contribution of robust structured sales throughout 2023 and improvements in mortality.

Edmund Francis Murphy: Our base return on equity for the quarter is slightly above the upper end of our medium term objective about 16% to 17% the improvement in ROE.

Edmund Francis Murphy: The impact on our first quarter results would have been a reduction in earnings of approximately $35 million about 80% within our capital and risk solutions and 20% within Europe.

We continue to maintain pricing discipline while strategically allocating capital to opportunities with strong returns, as well as diversification with our other segments.

Edmund Francis Murphy: It's been driven by growth in base earnings the successful integration of empowers recent acquisitions and disciplined capital allocation as we continue to grow our capital light.

Edmund Francis Murphy: Our base return on equity for the quarter is slightly above the upper end of our medium term objective of 16% to 17%.

Moving to slide 22.

Insurance service results were up year over year driven by growth and insurance earnings, particularly for short-term insurance contracts across all segments, as well as improved insurance experience within Canada and capital and risk solutions.

Edmund Francis Murphy: <unk> and workplace businesses.

Edmund Francis Murphy: <unk> ROE has been driven by growth in base earnings the successful integration of empowers recent acquisitions and disciplined capital allocation as we continue to grow our capital light wealth and workplace businesses.

Edmund Francis Murphy: Turning to slide 21.

The net investment result is also up year over year as fixed income reinvestments into higher interest rates benefited our earnings on surplus. In the quarter, we saw benign credit impacts.

Edmund Francis Murphy: Turning to slide 21.

Edmund Francis Murphy: Particularly in our long term disability business as well as the contributions from our recent wealth acquisition.

Edmund Francis Murphy: As I mentioned earlier you can see on this slide that all four segments strongly contributed to base earnings growth and Canada base earnings were driven by solid business performance and strong insurance experience, particularly in our long term disability business as well as the contributions from our recent wealth acquisition.

Edmund Francis Murphy: In the U S. Empower had another quarter of earnings growth with the continued integration of the Prudential business.

We continue to monitor our commercial real estate mortgages in the U.S. closely, and we don't expect to be fully immune from credit experience. However, we expect any impacts to be manageable and in line with our previous statements.

Edmund Francis Murphy: Fee income from equity markets.

Edmund Francis Murphy: Modest increase in crediting rates.

Edmund Francis Murphy: Steady growth in personal wealth.

Leo: In the U S. Empower had another quarter of earnings growth with the continued integration of the Prudential business.

Edmund Francis Murphy: Growth in base earnings led to an increase in ROE of over 100 basis points over time, we expect the ROE for empower to move towards.

Trading activity, primarily within Europe , reflected asset origination in excess of our new business needs.

Leo: Higher fee income from equity markets, a modest increase in crediting rates and steady growth and personal wealth.

Edmund Francis Murphy: Our medium term objective of 16% to 17% and Europe growth in net fee income earnings on surplus and expected insurance earnings more than offset a higher effective tax rate.

Turning to slide 23, net fee and spread income were up year over year due to growth across the U.S. and Europe where we've benefited from the increase in equity markets and organic growth.

Edmund Francis Murphy: Growth in base earnings led to an increase in ROE.

Edmund Francis Murphy: 100 basis points over time, we expect the ROE in for empower to move towards.

Edmund Francis Murphy: Base earnings growth within capital and risk solutions reflected the contribution of robust structured sales throughout 2023 and improvements in mortality.

Edmund Francis Murphy: Sorry, it's our medium term objective of 16% to 17% and Europe growth in net fee income earnings on surplus and expected insurance earnings more than offset a higher effective tax rate.

Taxes increased year over year driven by higher pre-tax earnings and a higher effective tax rate, which reflects the shift in jurisdictional mix and the non-recurrence of tax benefits in the first quarter of 2023.

Edmund Francis Murphy: We continue to main pricing maintained pricing discipline, while strategically allocating capital to opportunities with strong returns as well as diversification with our other segments.

Edmund Francis Murphy: Base earnings growth within capital and risk solutions reflected the contribution of robust structured sales throughout 2023 and improvements in mortality.

We continue to expect the global minimum tax, if fully enacted, to result in an increase in our effective tax rate of around 3%, resulting in an overall effective tax rate on base earnings in the high teams.

Edmund Francis Murphy: Moving to slide 22.

Edmund Francis Murphy: Insurance service reserve results were up year over year, driven by growth in insurance earnings, particularly for short term insurance contracts across all segments as well as improved insurance experience within Canada and capital and risk solutions.

Turning to slide 24.

Within the quarter, net earnings were slightly above base earnings as positive impacts from market experience, offset impacts of business transformation, and ongoing amortization of intangibles.

Edmund Francis Murphy: Moving to slide 22.

Edmund Francis Murphy: The net investment result is also up year over year and fixed income reinvestments into higher interest rates benefited our earnings on surplus in the quarter. We saw benign credit impacts we continue to monitor our commercial real estate mortgages in the U S closely and we don't expect to be.

The positive market experience was driven by increases in interest rates and public equity markets. These positive impacts were partially offset by a negative impact related to our real estate holdings, where our total return for the quarter was essentially flat versus our expected return of approximately 2%.

Edmund Francis Murphy: Net investment result is also up year over year as fixed income reinvestment into higher interest rates benefited our earnings on surplus in the quarter. We saw benign credit impacts we continue to monitor our commercial real estate mortgages in the U S closely and we don't expect to be full.

Edmund Francis Murphy: Fully <unk> from.

Edmund Francis Murphy: From credit experience. However, we expect any impacts to be manageable and in line with our previous statements.

Business transformation effects included a modest charge for outsourcing of certain IT activities, as well as the integration costs related to our wealth acquisitions in Canada and the impacts that empower as we nears completion of the prudential integration in the first quarter.

Edmund Francis Murphy: Trading activity, primarily within Europe reflected asset origination in excess of our new business needs.

Edmund Francis Murphy: <unk>.

Edmund Francis Murphy: From credit experience. However, we expect any impacts to be manageable and in line with our previous statements trading.

Edmund Francis Murphy: Turning to slide 23, net fee and spread income were up year over year over year due to growth across the U S and Europe, where we benefited from the increase in equity markets and organic growth.

We expect insignificant integration costs for prudential in the second quarter of 2024 as we've now completed this program.

Edmund Francis Murphy: Trading activity, primarily within Europe reflected asset origination in excess of our new business needs.

Edmund Francis Murphy: Turning to slide 23, net fee and spread income were up year over year over year due to growth across the U S and Europe, where we benefited from the increase.

Turning to slide 25.

Edmund Francis Murphy: Taxes increased year over year, driven by higher pretax earnings and a higher effective tax rate, which reflects the shift in jurisdictional mix and the nonrecurring tax benefits in the first quarter of 2023.

we continue to maintain a strong and stable balance sheet, building financial resources and the capacity needed to take advantage of future opportunities as they arise.

Edmund Francis Murphy: The increase in equity markets and organic growth.

Our LI-CAT ratio increased to 129%, up 1% from the prior quarter.

Speaker Change: We continue to expect the global minimum tax.

Paul: If fully enacted.

Paul: To result in an increase in our effective tax rate of around 3%, resulting in an overall effective tax rate on base earnings in the high teens.

As a result of our ALM strategy and our accounting policy choices, we've experienced a much more stable LICAP result under IFRS 17.

Edmund Francis Murphy: We continue to expect the global minimum tax.

This stability highlights the resilience of our balance sheet and it gives us capacity to execute on strategic opportunities.

Paul: Turning to slide 24 within the quarter net earnings were slightly above base certain as positive impacts from market experience offset impacts our business transformation and ongoing amortization of intangibles. The positive market experience was driven by increases in interest rates and public equity Mark.

Edmund Francis Murphy: If fully enacted.

Edmund Francis Murphy: To result in an increase in our effective tax rate of around 3%, resulting in an overall effective tax rate on base earnings in the high teens.

Our leverage ratio has also decreased over the past year as we've now paid down all of the short-term debt that was used to fund the prudential acquisition.

Edmund Francis Murphy: Turning to slide 24.

Edmund Francis Murphy: Within the quarter net earnings were slightly above base, certainly has positive impacts from market experience offset impacts our business transformation and ongoing amortization of intangibles. The positive market experience was driven by increases in interest rates and public equity markets. These positive impacts.

Our cash also grew as strong earnings and capital generation within our businesses allowed for the steady flow of cash up to Lifeco.

Paul: These positive impacts were partially offset by a negative impact related to our real estate holdings, where our total return for the quarter was essentially flat versus our expected return of approximately 2%.

We expect to continue to deliver strong capital generation and for excess cash to build at LICO.

Overall, we're extremely pleased with the results during this quarter and we're off to a very strong start to 2024. With that, I'll turn the call back over to you, Paul. Thanks, Sean.

Paul: Business transformation effects included a modest charge for outsourcing of certain activities as well as the integration costs related to our wealth acquisitions in Canada, and the impacts that empower as we neared completion at the Prudential integration in the first quarter, we expect insignificant integration costs.

Edmund Francis Murphy: Were partially offset by a negative impact related to our real estate holdings, where our total return for the quarter was essentially flat versus our expected return of approximately 2%.

I'll close by just commenting on the fact that our reposition portfolio and disciplined execution continues to deliver for our stakeholders and shareholders.

Edmund Francis Murphy: Business transformation effects included a modest charge for outsourcing of certain activities as well as the integration costs related to our wealth acquisitions in Canada, and the impacts that empower as we neared completion at the Prudential integration in the first quarter, we expect insignificant integration costs.

Paul: For Prudential in the second quarter of 2024 as we've now completed this program.

Momentum from the most recent quarters shows growth and performance at the top end of our medium-term financial objectives.

Paul: Turning to slide 25, we continue to maintain a strong and stable balance sheet building financial resources and the capacity needed to take advantage of future opportunities as they arise.

We're building on a track record of growth and driving strong shareholder returns. Our annualized total returns have outperformed key market indices on a one, three, and a five-year basis.

Edmund Francis Murphy: For Prudential in the second quarter of 2024 as we've now completed this program.

Edmund Francis Murphy: Turning to slide 25, we continue to maintain a strong and stable balance sheet building financial resources and the capacity needed to take advantage of future opportunities as they arise or my cat ratio increased to 129% up 1% from the prior.

Meny Grauman: Our <unk> ratio increased to 129% up 1% from the prior quarter.

As we look ahead, we're well positioned for continued growth. With our strong financial position, we're ready to take advantage of opportunities that will define the next phase of our growth plan.

Meny Grauman: As a result of our <unk> strategy and our accounting policy choices, we've experienced a much more stable Lightcap result, under <unk> 17.

I'm truly excited about what we can accomplish in the remainder of 2024 and beyond, driven by the strength of our team and guided by our clear focus. And with that, operator, please open the line for questions.

Meny Grauman: This stability highlights the resilience of our balance sheet and it gives us capacity to execute on strategic opportunities.

Edmund Francis Murphy: Quarter.

Edmund Francis Murphy: As a result of our <unk> strategy and our accounting policy choices, we've experienced a much more stable Lightcap result, under <unk> 17.

Certainly. We'll now begin the analyst question and answer session. To join the question queue, you may press star than one on your telephone keypad. You'll hear a tone acknowledging your request.

Meny Grauman: Our leverage ratio has also decreased over the past year as we've now paid down all of the short term debt.

Edmund Francis Murphy: This stability highlights the resilience of our balance sheet and it gives us capacity to execute on strategic opportunities.

Edmund Francis Murphy: Used to fund the Prudential acquisition.

Edmund Francis Murphy: Our cash also grew as strong earnings and capital generation within our businesses allows for the steady flow of cash up the lifestyle.

If you're using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press Star of N2.

Edmund Francis Murphy: Our leverage ratio has also decreased over the past year as we've now paid down all of the short term debt that was used to fund the Prudential acquisition.

Edmund Francis Murphy: We expect to continue to deliver strong capital generation and for excess cash to build it like so overall, we're extremely pleased with the results for <unk>. During this quarter and we're off to a very strong start to 2024 with that I'll turn the call back over to you Paul Thanks, Sean.

Our first question is from Manny Grulman with Scotia Bank. Please go ahead.

Edmund Francis Murphy: Our cash also grew as strong earnings and capital generation within our businesses allow for the steady flow of cash up to lifestyle.

Hi, good afternoon. I wanted to ask a question about

Really, the combination of slide 16 and 17, if I look at that 94% in the evolution of cost per participant versus the 2020 baseline, question is how low can that go, given everything that you highlight on slide 17 is what's the right way to think about in terms of the potential there to go below 94%.

Edmund Francis Murphy: We expect to continue to deliver strong capital generation and for excess cash to build it might go overall, we're extremely pleased with the results for <unk>. During this quarter and we're off to a very strong start to 2024 with that I'll turn the call back over to you Paul Thanks, Sean.

Meny Grauman: I'll close by just commenting on the fact that our reposition portfolio and disciplined execution continues to deliver for our stakeholders and shareholders momentum from the most recent quarter shows growth in performance at the top end of our medium term financial objectives.

That's a good question, Manny. And I'm going to turn it over to Ed. Do you want to provide some context around the drivers of cost structure? Yeah, I think that, you know, obviously as we continue to do acquisitions,

Paul: I'll close by just commenting on the fact that our repositioned portfolio and disciplined execution continues to deliver for our stakeholders and shareholders.

Meny Grauman: We're building on the track record of growth and driving strong shareholder returns our annualized total returns have outperformed the key market indices on a one three and five year basis. As we look ahead, we're well positioned for continued growth with our strong financial position, we're ready to take advantage of opportunities that will define the next phase.

Paul: <unk> from the most recent quarter shows growth in performance at the top end of our medium term financial objectives. We're building on the track record of growth and driving strong shareholder returns our annualized total returns have outperformed the key market indices on a one three and five year basis. As we look ahead, we're well positioned for continued.

We can see that there's a tremendous amount of operating leverage in the business and we're able to to lower our unit cost in that regard, but we also have

a number of things that we're working on to drive me to cost lower. Some of those are the ones I've mentioned in my prepared remarks with respect to automating and digitizing the business,

Meny Grauman: Some of our growth plan.

Meny Grauman: Truly excited about what we can accomplish in the remainder of 2024 and beyond driven by the strength of our team and guided by our clear focus and with that operator. Please open the line for questions.

Paul: Growth with a strong financial position, we are ready to take advantage of opportunities that will define the next phase of our growth plan.

expanding our offshore capabilities. We're continuing to grow offshore, both in India and now in the Philippines. And so I would just say that the focus is really around how we can do more straight-through processing and how we can automate the business. And so we have a number of initiatives underway in 2024.

Meny Grauman: Certainly we will now begin the analyst.

Speaker Change: Im truly excited about what we can accomplish in the remainder of 2024 and beyond driven by the strength of our team and guided by our clear focus and with that operator. Please open the line for questions.

Meny Grauman: A question and answer session.

Meny Grauman: So join the question queue you May Press Star then one on your telephone keypad.

Meny Grauman: Telling me acknowledging your request.

Meny Grauman: If you're using a speakerphone please pick up your handset before pressing any key to withdraw your question. Please press star.

Speaker Change: Certainly we will now begin the analyst question and answer session.

Paul: And the question queue you May Press Star then one on your telephone keypad now here at Cowen acknowledging your request.

And we're pretty confident that over time we can continue to drive our unit costs lower.

Meny Grauman: Sorry, then Q.

Meny Grauman: Our first question is from Manny Grauman with Scotiabank. Please go ahead.

And would you think that you could sort of get below 90%?

Paul: Using a speakerphone please pick up your handset before pressing any key seamless China. Your question. Please press Star then two.

Meny Grauman: Hi, Good afternoon, I wanted to ask a question about <unk>.

Speaker Change: Really the combination of slide 16, and 17, if I look at that 94% in the evolution of cost per participant versus the 2020 baseline question is how low can that go given everything that you highlight on slide 17 as.

Does that make sense to you or is there some sort of floor there that's not realistic to cross below?

Paul: Our first question is from Manny Grauman with Scotiabank. Please go ahead.

I would just say that we believe there's opportunity to take our unit cost

Meny Grauman: Hi, Good afternoon, I wanted to ask a question about.

Meny Grauman: Really the combination of slides 16, and 17, if I look at that 94% in the evolution of cost per participant versus the 2020 baseline question is how low can that go given everything that you highlight on slide 17 is.

lower than where they are today.

Meny Grauman: What's the right way to think about in terms of the potential there to go below 94%.

I will note that

On a comparative basis, I think we probably are, on a fully allocated basis, we're probably, if not the lowest cost in the industry today. We're one of the lowest, which gives us tremendous advantages, as you would imagine, when you think about pricing new business.

Speaker Change: That's a good question.

Meny Grauman: I'm going to turn it over to Ed do you want to provide some context around the drivers of cost structure.

Meny Grauman: What's the right way to think about in terms of the potential there to go below 94%.

Edmund Francis Murphy: I think that.

Meny Grauman: Obviously as we continue to do acquisitions.

Speaker Change: That's a good question.

Edmund Francis Murphy: You can see that there is a tremendous amount of operating leverage in the business and we were able to.

But there's opportunity there and we're pretty excited about it. Yeah, many, I might follow on and say when we look at across our businesses and we look at generative AI and being able to use robotics,

Meny Grauman: I'm going to turn it over to Ed do want to provide some context around the drivers of cost structure, yes, I think that.

Meny Grauman: The lower our unit cost in that regard, but we also have a number of things that we're working on to drive the unit cost lower some.

Edmund Francis Murphy: Obviously as we continue to do acquisitions.

There is a significant number of processes, even continuing in Empower, which is one of our most digitized, that are still manual where we're still taking hundreds of thousands of calls. We see a lot of opportunity, and I would say Empower would be one of the key areas where there's a lot of opportunity. Yeah, just one follow up to that question, many, too. I would say that

Edmund Francis Murphy: You can see that there is a tremendous amount of operating leverage in the business and we were able to.

Meny Grauman: Some of those are the ones I mentioned in my prepared remarks, with respect to automating and digitizing the business.

Paul: The lower our unit cost in that regard, but we also have a number of things that we're working on to drive the unit cost lower some of those are the ones I mentioned in my prepared remarks with respect to <unk>.

Meny Grauman: Expanding our offshore capabilities, we're continuing to grow offshore.

Meny Grauman: Both in India now in the Philippines.

Meny Grauman: And.

Meny Grauman: So I would just say that the focus is really around how we can do more straight through processing and how we can automate the business and so we have a number of initiatives underway in 2024.

If you look at the last three years, and we laid this business case out for you, a lot of our discretionary development capacity, our application developers,

Paul: Automation and digitizing the business.

Paul: Expanding our offshore capabilities.

Meny Grauman: Continuing to grow offshore.

Meny Grauman: Both in India now in the Philippines.

were focused and directed at the task at hand, which is essentially the complex integration programs that we've been pursuing the last three years.

Speaker Change: And we're pretty confident that over time, we can continue to drive our unit cost lower.

Meny Grauman: <unk>.

Meny Grauman: So I would just say the focus is really around how we can do more straight through processing and how we can automate the business and so we have a number of initiatives underway in 2024.

Speaker Change: And.

Speaker Change: Would you think that you could sort of get below 90%.

We are now turning our efforts inward to focus on what I would characterize is deferred maintenance, if you will. So opportunities to streamline the business and to take some of the friction out so we can give our customers a better experience.

Meny Grauman: Does that makes sense too or is there some sort of floor, there and that it's not realistic to cross border.

Meny Grauman: And we're pretty confident that over time, we can continue to drive our unit cost lower.

Meny Grauman: And.

John: I would just say that we.

Meny Grauman: Would you think that you could sort of get below 90%.

So, you know, if you think about what we're doing in technology, you know, we're continuing to invest in technology. You can see that running through our P&L. It's really important. But a lot of that development capacity now is being focused on what I would call continuous improvement and transformation. And we have a very detailed agenda to get after that.

John: And believe there is opportunity.

John: Take our unit cost.

Meny Grauman: Does that makes sense too or is there some sort of floor, there and thats not realistic to cross border.

John: Lower than where they are today.

John: I will I will note that on a comparative basis I think we probably are on a fully out of allocated basis, we're probably if not the lowest cost in the industry. Today, we're one of the lowest which gives us tremendous advantages as you would imagine when you think about pricing new business.

Speaker Change: I would just say that.

Meny Grauman: We believe there is opportunity.

Meny Grauman: To take our unit cost.

Meny Grauman: Lower than where they are today.

That's helpful. And then just maybe taking it to the top of the house if I look at just the non-directly attributable and other expenses. A pretty good decline quarter-over-quarter. Is it reasonable to expect further quarter-over-quarter declines in that specific line item?

Meny Grauman: I will note that on a comparative basis I think we probably are on a fully out of allocated basis, we're probably if not the lowest cost in the industry today.

John: But there is opportunity there and we're pretty excited about it.

Speaker Change: I might follow on and say when we look at across our businesses. When we look at generated of AI and being able to use robotics.

Meny Grauman: One of the lowest which gives us tremendous advantages as you would imagine when you think about pricing new business.

John: There is a significant number of processes, even continuing and empower which is one of our most digitized that are still manual where we're still thinking.

Yeah, many, I think there's a bit of an unusual movement in the quarter over quarter. I'll let John speak to sort of what is a better, maybe a better guide to thinking about expense going forward. Yes.

Meny Grauman: But there is opportunity there and we're pretty excited about it.

Meny Grauman: I might follow on and say when we look at across our businesses. When we look at generated of AI and being able to use robotics.

Paul David Holden: Hundreds of thousands of calls.

Paul David Holden: See a lot of opportunity and I would say empower it would be one of the key areas, where theres a lot of opportunity.

Thanks for the question, Minnie. Yeah, if you look back at fourth quarter, there were some discrete items in the fourth quarter number. What we would say is, you know, our objective for the years, and the way to think about this is the average of the last four quarter, average of the four quarters for 2023 would be kind of a way to think about what we're aiming to achieve in 2024. Okay.

Meny Grauman: There is a significant number of processes, even continuing and empower which is one of our most digitized that are still manual where we're still picking.

Speaker Change: Just one follow up to that question, many too I would say that.

Speaker Change: If you look at the last three years and we laid this business case out for you.

Meny Grauman: Hundreds of thousands of calls we see a lot of opportunity and I would say empower it would be one of the key areas, where theres a lot of opportunity. Yes, just just one follow up to that question, many too I would say that.

Speaker Change: A lot of our discretionary development capacity of application developers.

Speaker Change: We're focused and directed at the task at hand, which is essentially the.

Meny Grauman: If you look at the last three years and we laid this business case out for you.

John: Complex integration programs that we've been pursuing the last three years.

Speaker Change: We are now turning our efforts inward.

Edmund Francis Murphy: A lot of our discretionary development capacity of application developers, we're focused and directed at the task at hand, which is essentially the complex integration programs that we've been pursuing the last three years.

So that's about 12-1-250, so the average of that over the four quarters.

John: To focus on what I would characterize as deferred maintenance. If you will so opportunities to streamline the business and to take some of that friction out. So we can give our customers a better experience.

Got it. Thank you.

Thanks, Manning.

Meny Grauman: We are now turning our efforts inward.

John: <unk>.

The next question is from Paul Holden with CIBC. Please go ahead.

John: If you think about what we're doing in technology.

Meny Grauman: To focus on what I would characterize as deferred maintenance. If you will so opportunities to streamline the business and to take some of that friction out. So we can give our customers a better experience. So.

Speaker Change: We're continuing to invest in technology, you can see that running through our P&L. It is really important but a lot of that development capacity now is being focused on what I would call continuous improvement and transformation.

Thanks. Good afternoon. First question is related to M-power and just what are the, maybe can give us a sense of what the cost synergies realized to date have been, how much is still yet to be realized on that 180 going forward?

Meny Grauman: If you think about what we're doing in technology.

Speaker Change: We have a very detailed agenda to get after that.

Meny Grauman: We're continuing to invest in technology, you can see that running through our P&L. It is really important but a lot of that development capacity now is being focused on what I would call continuous improvement and transformation.

Speaker Change: That's helpful. And then just maybe take it to the top of the house if I look at just the non directly attributable and other expenses a pretty good decline quarter over quarter is it reasonable to expect further quarter over quarter declines.

Yeah. Joe.

So, John , what do you start on that one? So you can think of at the end of the first quarter, we added another $15 million to that, so the $85 million will continue to run out, you know,

Meny Grauman: We have a very detailed agenda to get after that.

Speaker Change: That specific line item.

Speaker Change: That's helpful. And then just maybe take it to the top of that obviously, if I look at just the non directly attributable and other expenses.

Speaker Change: Yes, I think.

Speaker Change: There is a bit of an unusual movement in the quarter over quarter I'll, let John speak to sort of what is a better maybe a better guide to thinking about expense going forward. Yeah. Thanks for the question many.

post, you know, moving out of second quarter. And the way to think of how much we'll hit the P&L, because obviously we're guiding to when those synergies start to run through our P&L, you can think of it as kind of between half and two-thirds of the $100 million that we came into 2024 guiding to will come through the P&L through the rest of 2024.

Speaker Change: Pretty good decline quarter over quarter is it reasonable to expect further quarter over quarter declines.

Speaker Change: That specific line item.

John: Yes, if you look back at fourth quarter, there were some discrete items in the fourth quarter.

Speaker Change: Yes, I think.

Meny Grauman: There is a bit of an unusual movement in the quarter over quarter I'll, let John speak to sort of what is a better maybe a better guide to thinking about expense going forward. Yes. Thanks for the question many yes.

John: Number.

Paul David Holden: What we would say is.

John: Our our objective for the year.

Speaker Change: And the way to think about this is the average of the last four quarters.

John: If you look back at fourth quarter, there were some discrete items in the fourth quarter.

Speaker Change: Average of the four quarters for 2023 would be kind of a.

Yeah, and with the balance to follow in turning part of 25.

John: As a.

John: Number what we would say is.

Okay.

John: A way to think about what we're aiming to achieve in.

Thank you for that. And then when I just stick in with out and power, when I look at the year-over-year change in AUA, as you've highlighted, in the DC plan of 15%, but then I look at DC earnings flat year-over-year. How do I reconcile those two? Like some people I talk to are taking that as a sign of...

John: Our our objective for the year is and the way to think about this is the average over the last four quarters.

John: In 2024.

John: So thats about <unk> <unk>.

John: 12, 1250, so the average of that over the four quarters.

John: Average of the four quarters for 2023 would be kind of a.

Speaker Change: Got it.

Speaker Change: Thank you.

John: A way to think about what we're aiming to achieve.

Speaker Change: Thanks Manny.

John: In 2024.

Speaker Change: The next question is from Paul Holden with CIBC. Please go ahead.

John: So thats about 12 1250, so the average of that over the four quarters.

fee compression in the business, is that the right way to read it or is there something else going on there?

Paul David Holden: Thanks.

Speaker Change: Got it thank.

Paul David Holden: Good afternoon first question is related to empower and just wherever you may you can give us a sense of what the cost synergies realized to date have been I E. How much is still yet to be realized that not 188 going forward.

Speaker Change: Thank you.

Paul, there's a lot of moving parts here. I'm going to let John unpack that for you. Yeah, so maybe start with kind of top of the house comments about, you know, the integration of the transactions and how that will play through. I think you touched on one of the elements, the integration benefits that are still yet to come into the P&L and we gave you guidance. I think the other thing that we've tried to provide this quarter is a little bit of the element of the plans that are, you know, we delivered 86% of the overall plans in terms of being integrated into our run rate earnings as we've guided. We've kind of giving you a sense of, you know, as those plans have come on,

Speaker Change: Thanks Manny.

Speaker Change: The next question is from Paul Holden with CIBC. Please go ahead.

Speaker Change: Thanks.

Paul David Holden: Good afternoon first question is related to power and just wherever you may you can give us a sense of what the cost synergies realized to date have been I E. How much is still yet to be realized I'm not 100% going forward.

Paul David Holden: Yeah.

Paul David Holden: Joe.

Paul David Holden: John why don't you start on that one so you can think of at the end of the first quarter, we added another $15 million.

John: To that so the $85 million will continue to run out.

Speaker Change: Yeah.

Paul David Holden: No.

Speaker Change: Joe.

Paul David Holden: Moving out of second quarter, and the way to think of how much will hit the P&L, because obviously, we're guiding to windows.

Joe: Yes, well John why don't you start on that one so you can think of at the end of the first quarter, we added another $15 million.

Joe: To that so the $85 million will continue to run out.

Paul David Holden: Synergy start to run through our P&L, you can think of it as kind of between half and two thirds of the.

John: No.

that don't follow, even though we've exceeded our target, there is obviously a revenue loss from that. We're nearly through, as we say, we're completed with the potential transaction, in terms of the amount of what we're calling shock lapses still to come in second quarter is about $4 billion. And then we'll kind of hit the normal run rate revenues. And as I mentioned, that synergies start to come through.

John: Post it moves.

John: Moving out of second quarter, and the way to think of how much will hit the P&L because obviously, we're guiding to win those.

Paul David Holden: $100 million that we came into 2024 guiding to will come through the P&L through the rest of 2024.

John: Synergy start to run through our P&L, you can think of it as kind of between half and two thirds of the.

Paul David Holden: With the balance to follow and training part of 'twenty five.

Speaker Change: Okay. Thank you.

Speaker Change: You for that.

Speaker Change: $100 million that we came into 2024 guiding to will come through the P&L through the rest of 2024.

Speaker Change #101: And then wanted just to come without empower when I look at the year over year change in <unk>.

Paul David Holden: As <unk> highlighted in the DC plan up 15%, but then I look at TCE earnings flat year over year, how do I reconcile those two like some people I talk to her.

I think the other thing that we wanted to call out is the diverse revenues that we have within the defined contribution revenue stream. And if you see, we added in the appendix or brought a slide to the appendix on slide 31, which gives you a sense of those asset-related revenues, which are about 50% of the overall pool of revenues.

Speaker Change: With the balance to follow and training part of 'twenty five.

Speaker Change: Okay.

Speaker Change #102: Thank you for that.

Speaker Change: And then just sticking with empower when I look at the year over year change in <unk>.

Paul David Holden: Taking that as a sign of fee compression and the business is that the right way to read it or is there something else going on there.

Speaker Change: As <unk> highlighted in the DC plan.

Speaker Change: 15%, but then I look at TC earnings flat year over year, how do I reconcile those two like some people I talk to her.

Paul David Holden: Paul.

Paul David Holden: Lot of moving parts here, John Unpack that for you, yes, so maybe maybe start with the kind of top of the house comments about <unk>.

that spread from our stable value products about 25%.

John: That is a sign of fee compression and the business is that the right way to read it or is there something else going on there.

and then the other fees, which are principally

Paul David Holden: The integration of the transactions and how that will play through I think you touched on one of the elements.

participant or plan related or another 25%.

So while AUM is an indicator of some of the revenue sources, there are other revenue sources, and depending on the size of plan, those revenue sources are slightly, you know, are different in terms of the proportion of different revenues.

John: Paul there's a lot of moving parts here, John Unpack that for you, yes, So maybe maybe start with kind of top of the house comments about.

Paul David Holden: The integration benefits that are still yet to come into the P&L and we gave you guidance I think the other thing that we've tried to tried to provide this quarter is a little bit of the element of the plans that are we delivered 86% of the overall plan in terms of being integrated into our run.

John: The integration of the transactions and how that will play through I think you've touched on one of the elements.

We feel very strong about the earnings potential of the D.C. business.

Speaker Change: The integration benefits that are still yet to come into the P&L and we gave you guidance I think the other thing that we've tried to tried to provide this quarter is a little bit of the.

and expect to continue to grow earnings as we look forward. So don't think it's a sign of, you know, any necessarily material fee compression, just a matter of where we are in the integration and the different sources of revenue that those plans have. Yeah, I agree, John . I think it's fair to say, though, that there is, you know, there is fee compression in any competitive market. And going back to the whole point of how do you drive on your cost.

Paul David Holden: <unk> earnings as we've guided.

Paul David Holden: We kind of giving you a sense of.

Paul David Holden: As those plans come off that don't follow even though we've exceeded our target there is it.

John: Of the plans that are we delivered 86% of the overall plans in terms of being integrated into our run rate earnings as we've guided.

Paul David Holden: Obviously, the revenue loss from that.

John: We're nearly true.

John: As we said were completed the potential transaction in terms of the amount of what we're calling shock lapses still to come in second quarter. It's about $4 billion and then we will kind of hit the normal run rate revenues and as I mentioned that synergies start to come through I think the other thing that we wanted to call out is.

Paul David Holden: We kind of giving you a sense of.

Paul David Holden: As those plans come off that don't follow even though we've exceeded our target.

Speaker Change #105: There is.

Speaker Change: Obviously, the revenue loss from that were.

Speaker Change: We're nearly true as well.

You can end up with a winning strategy in a market that has some fee compression where you're deploying technology and driving down cost and sort of overcoming that. And I think that's clearly one of the strategies that empower things about, right? Ed? For sure.

Paul David Holden: As we say we are completed the potential transaction terms of the amount of what we're calling shock lapses still to come in second quarter. It's about $4 billion and then we will kind of hit the normal run rate revenues and as I mentioned that synergies start to come through I think the other thing that we wanted to call out.

John: Is the diverse revenues that we have within the defined contribution.

John: Revenue stream and if you'd see we added in the appendix slide.

And I think, frankly, we're seeing that play out in our results. If you look at...

John: Slide to the appendix on slide 31, which gives you a sense that those asset related.

our sales through the first quarter, we're up 76% year over year in workplace.

John: Is the diverse revenues that we have within the defined contribution.

John: Revenues, which are about 50% of the overall pool of revenues.

And particularly in the core market, where we're up 40% year over year, and that's the smaller market segment that we've shared with you before.

Paul David Holden: Revenue stream and if you'd see we added in the appendix slide.

John: <unk> from our stable value products about 25% and then the other fees, which are principally participant our plan related or another 25%.

Paul David Holden: Slide to the appendix on slide 31, which gives you a sense of those asset related.

And our pipeline remains very, very strong at 2 trillion. So if I look outward, you know, we've got another 15 billion or so of committed

Paul David Holden: Revenues, which are about 50% of the overall pool of revenues that spread from our stable value products about 25% and then the other fees, which are principally participant our plan related or another 25%.

John: So while AUM is an indicator of some of the revenue sources.

John: There are other revenue sources.

John: And depending on the size of the plan those revenue sources are slightly.

sales in 2024 and we have another 15 billion of committed sales already in 2025. So lots of activity from an organic standpoint. We're continuing to grow.

John: <unk> are different in terms of the proportion of different revenues.

Paul David Holden: So while AUM is an indicator of some of the revenue sources.

John: Feel very strong about the earnings potential of the DC business.

Speaker Change: There are other revenue sources.

Speaker Change #101: And depending on the size of the plan those revenue sources are slightly.

John: And expect to continue to grow earnings as we look forward. So don't think it's a sign of.

at a multiple of the market, particularly as it defined as net participant growth,

Paul David Holden: <unk> are different in terms of the proportion of different revenues.

So organically, growth is strong. Clearly we saw lower general account margins. We saw modest increases, John mentioned, in crediting rates.

John: Any necessarily material fee compression.

Paul David Holden: Feel very strong about the earnings potential of the DC business.

John: Just a matter of how we went out where we are in the integration and the different sources of revenue that those plants out.

Paul David Holden: And expect to continue to grow earnings as we look forward. So don't think its a sign of.

And then we just lower volumes, which certainly had an impact from a year-over-year revenue standpoint. But organically, sales pipeline,

Speaker Change: I agree John.

Speaker Change: Fair to say, though that there is there is fee compression in any competitive market and going back to the whole point of how do you drive down your cost.

Paul David Holden: Any necessarily material fee compression.

Paul David Holden: Just a matter of how we then where we are in the integration and the different sources of revenue that the plants have.

Value proposition is clearly resonating in the market.

Speaker Change: You can end up with a winning strategy in a market that has some fee compression, where you're deploying technology and driving down cost and sort of overcoming that and I think thats clearly one of the strategies that empowers into Alberta for sure.

Okay, that message is clear. Thanks for that. One more question for me on capital and risk solutions. You're referred to growth in the structured reinsurance business. It looks like obviously that is a short duration business. If I look at the composition of income you're generating there. So maybe just some better understanding of what kind of liabilities are associated with that structured reinsurance business. And then two, with the growth you're achieving there, because it is short duration and maybe more capital light, would you consider growing growth?

Paul David Holden: I agree John I think it's fair to say, though that there is.

Paul David Holden: There is fee compression in any competitive market.

Paul David Holden: Going back to the whole point of how do you drive down your cost.

Paul David Holden: You can end up with a winning strategy in a market that has some fee compression, where you're deploying technology and driving down cost and sort of overcoming that and I think thats clearly one of the strategies that empowers into Alberta for sure.

Jeff: And I think.

Jeff Ward: Frankly, we're seeing that play out in our results if you look at it.

Speaker Change: Our sales through the first quarter.

Speaker Change: 76% year over year and workplace.

Speaker Change: And particularly in the core market, where were up 40% year over year.

Paul David Holden: And I think.

Paul David Holden: Frankly, we're seeing that play out in our results if you look at it.

Speaker Change: And Thats the smaller market segment that we've shared with you before.

Paul David Holden: Our sales through the first quarter were up.

Speaker Change: And our pipeline remains very very strong at two trillion. So if I look outward.

Paul David Holden: 76% year over year and workplace.

Paul David Holden: And particularly in the core market, where we are up 40% year over year.

CRS at a slightly faster pace than overall GW earnings, i.e. increasing the earnings mixed from CRS.

John: We've got another $15 billion or so of committed.

Paul David Holden: And Thats the smaller market segment that we've shared with you before.

John:

Jeff: Sales in 2024, and we have another $15 billion of committed sales already in 2020 so.

John: And our pipeline remains very very strong at two trillion. So if I look outward.

Perhaps I'll take the second question first, and then I'll turn it over to Jeff. So Jeff Poulin, who's joining us today, I think it's a great question, so Jeff can give you a bit of color on those structured deals. We really like the Kaplan Risk Solutions business. It is a great diversifier across the group. It actually also leverages deep expertise of a team that we use either as well for internal reinsurance structures and for giving ourselves a big. of a window on the world to understand what's going on in various markets. So we really like the business. We like it growing sort of

Jeff: Lots of activity.

John: We've got another $15 billion or so of committed.

Jeff: From an organic standpoint, we're continuing to grow.

Jeff: At a multiple of the market, particularly as it is defined as net participant growth.

John: Sales in 2024, and we have another $15 billion of committed sales already in 2020 so.

Paul: So organically growth is strong.

John: Lots of activity from.

Paul David Holden: Clearly we saw we saw lower general account margins you saw a modest increase as John mentioned in <unk>.

John: From an organic standpoint, we're continuing to grow.

John: At a multiple of the market, particularly as defined as net participant growth.

Paul David Holden: Crediting rates.

Paul David Holden: And then we just lower volumes, which certainly has had an impact from a from a year over year revenue standpoint, but organically.

John: So organically growth is strong.

John: Clearly we saw we saw lower general account margins, we saw a modest increase as John mentioned.

Paul: Sales pipeline.

at or around the rate at which Lifeco grows, it's kind of a really good diverse fire in that context.

Paul: <unk> proposition is clearly resonating in the market.

John: On crediting rates.

Speaker Change #110: That message is clear thanks for that and one more question for me on capital and risk solutions.

John: And then we just lower volumes, which certainly has had an impact from a from a year over year revenue standpoint, but organically.

And so I wouldn't see it as a place where we would necessarily accelerate, but I see it as a place that it will continue to be both a strong contributor, but also a really strong part of our understanding of markets, competitive markets. So with that, I'm going to turn over to Jeff to talk maybe a bit about the...

Paul: You referred to growth in our structured reinsurance business. It looks like obviously that has a short duration.

John: Sales pipeline.

John: <unk> proposition is clearly resonating in the market.

Paul: Business, if I look at the composition of income you're generating there. So maybe just some better understanding of what kind of liability are associated with that structured reinsurance business and then two with a growth you're achieving there because it is short.

Speaker Change: That message is clear thanks for that one more question for me on capital and risk solutions.

the structured business.

Thanks, Paul. Yeah, I guess when we're looking at structured business, we're looking at the way people, like the purpose of the reinsurance transactions we're trying to enter into. So the goals are financial and more than risk.

John: You referred to growth in structured reinsurance business. So it looks like obviously that has a short duration.

John: Business.

John: If I look at the composition of income you're generating there. So maybe just some better understanding of what kind of liability.

Paul: <unk> may be more capital light.

Paul: Would you consider growing.

for the purpose of the transaction, we're looking at them, we're offering solutions that are shorter term in nature and more out of the money.

John: Associated with that structured reinsurance business.

Paul: Crs at a slightly faster pace than overall GW earnings increasing the earnings mix to see from Crs.

John: And then two with a growth you're achieving there because it is short duration and maybe more capital would you consider growing.

And what we try to do is either improve the reserves of the client or the capital of the clients and return on the business that they have and let them have some of the profit back on the business. We take the first few dollars of profit and give them back the access.

Speaker Change #111: Perhaps I'll take the second question first and then I'll turn it over to Jeff So well.

Speaker Change: Crs at a slightly faster pace than overall GW low earnings increasing the earnings mix to see from Crs.

Paul: Jeff <unk>, who is joining us today I think it's a great question. So Jeff can give you a bit of color on on the on those structured deals.

So that's how we structure it.

Speaker Change: Perhaps I'll take the second question first and then I'll turn it over to Jeff So.

Jeff: Really like the capital and risk solutions business. It is a great diversified across the group, but actually also leverages deep expertise of the team that we use either as well for internal reinsurance structure.

The underlying liabilities could be anything from mortality, the longevity to disability to disability.

Speaker Change: Jeff <unk>, who is joining us today I think it's a great question. So Jeff can give you a bit of color on on the on those structured deals.

group life, group health. We even have some mortgage insurance in there. So there's a variety and a very well-diversified variety of businesses in there. And it all depends on where we see the opportunities. We're focused on where we can get the best return on equity.

Jeff: Structures and for giving ourselves a bit of a window on the world to understand what's going on in various markets. So we really like the business, we like it growing sort of.

Jeff Ward: Really like the capital and risk solutions business. It is a great diversified our across the group. It actually also leverages deep expertise of the team that we use either as well for internal reinsurance.

Speaker Change: Sure around the rate at which lifestyle grows it's kind of a really good diversified in that context.

Speaker Change: Structures and for giving ourselves a bit of a window on the world understand what's going on in various markets. So we really like the business, we like it growing sort of.

And we would like to continue to grow the mortality business and the longevity business, but in this post-COVID world, it's been difficult to know where mortality is going. So we've been very disciplined and

Speaker Change: So I wouldn't see it as a place where we would necessarily accelerate but I see it as a place that it will continue to be both a strong contributor but also a really strong part of our our understanding of market competitive markets. So with that I'm going to turn it over to Jeff to talk maybe a bit about the.

Speaker Change: Sure around the rate at which lifestyle grows thats kind of really good diversified in that context.

have sort of been careful with those businesses. I think it's a matter of time before we make a decision and have a bit more data and go there. But that's really been our plan. So the structured business has grown faster than our...

John: So I wouldn't see it as a place where we would necessarily accelerate but I see it as a place that it will continue to be both a strong contributor but also a really strong part of our our understanding of market competitive markets. So with that I'm going to turn it over to Jeff to talk maybe a bit about the.

Speaker Change: The structure business. Thanks, Paul.

Speaker Change: I guess when we're looking at structured business, we're looking at that the way people like the <unk>.

Paul David Holden: Purpose of the.

Paul: Reinsurance transactions, we're trying to enter into so the goals are financial and in more than risk.

more traditional business.

Speaker Change #112: The structure business. Thanks, Paul.

Yeah.

Paul David Holden: I guess when we're looking at structured business, we're looking at that the way people like the <unk>.

Paul, I might just

Speaker Change: For the purpose of the transaction, we're looking at them, we're offering solutions that are shorter term in nature and more out of the money and what we try to do is either improve the.

Close that by saying that

It's a great diversifier across Lifeco, but it's also a really good diversified business within.

Paul David Holden: Purpose of the.

Paul David Holden: Reinsurance transactions, we are trying to enter into associate with the goals of our financial and.

And the way Jeff described it across all those risks, including he didn't say this, but we even do a little bit of pet insurance as an example.

Tom MacKinnon: Reserves of the client or the capital of the clients of the return on the business that they have and let them have some of the profit back on the business.

Paul David Holden: More than risk.

Paul: For the purpose of the transaction, we're looking at them, we're offering solutions that are shorter term in nature and more out of their money and what we try to do is either improve the.

These are out of the money, low risk, you know, sort of pit more tail risk in a lot of case transactions. And what we're really doing is helping with capital solutions. And yes, there are remote risks, but we're helping with capital and financial solutions. And you're able to do that because you've got the expertise to help and you've got that diversification as opposed to concentration.

Speaker Change: We think the first few dollars of profit and give them back the access so thats, how we structure it.

Paul: Reserves of the client or the capital of the clients of the return on the business that they have and let them have some of the profit back on the business.

Speaker Change: Underlying liabilities can be anything from mortality and longevity disability.

Speaker Change: The group Life Group health.

Paul: We think the first few dollars of profit and give them back the access so thats how restructuring.

Speaker Change: We even have some some mortgage insurance in there so there's.

Okay, thanks again for the time.

Speaker Change: A variety and a very well diversified variety of busy.

Paul: Underlying liabilities can be anything from mortality and longevity disability.

Thanks, Paul.

Speaker Change #113: Businesses in there and it all depends on where we see the opportunities we're focused on where we can get the best return on equity.

The next question is from Tom McKinnon with BMO Capital Markets. Please go ahead.

Paul: Group Life Group health.

Paul: We even have some some mortgage insurance in there so there's.

Yeah, thanks and good afternoon. First question just with respect to Canada and the group Life and Health. The book premiums up nicely year over year.

Paul: We would like to continue to grow that.

Paul: A variety and a very well diversified variety of.

Paul: Mortality business and the longevity business, but in this post COVID-19 world, it's been difficult to know where mortality is going so we've been very disciplined in.

Paul: Businesses in there and it all depends on where we see the opportunities we're focused on where we can get the best return on equity.

up the $15 billion, up nearly 20% year every year.

Paul: <unk>.

Paul: And we would like to continue to grow that.

But if I look at the expected earnings on the short-term contracts, they're only up 5%. So what's happening with respect to...

Paul: Sort of been careful with those businesses.

Paul: As a matter of time before we make a decision.

Paul: Mortality business and the longevity business, but in this post COVID-19 world, it's been difficult to know where mortality is going so we've been very disciplined in.

Paul: A bit more data on go there, but that's really been our plan. So the structured business has grown faster than <unk>.

Is this due to, you know,

a group coming in that would have been of lower margin or margins not fully realized yet. So any color there would be great. Thanks.

Jeff: Sort of been careful with those businesses I think as a matter of time before we make a decision.

Paul: Our <unk>.

Paul: Our traditional business.

Paul: Yes.

Speaker Change: Paul I would like just to close out by saying that.

I'll pass that one over to Fabriz to share his thoughts on that. Thank you for the question, Tom. First, let's step back in the group business. There's smaller plans and there's larger plans. The smaller plans are typically fully insured, the larger plans.

Jeff: A bit more data on go there, but that's really been our plan. So the structured business is growing faster than <unk>.

Paul: It's a great diversified across lifeco, but it's also a really good diversified business within.

Jeff: Our more.

Paul: And the way Jeff described it across all of those risks, including who didn't say this but we even do a little bit of pet insurance as an example.

Jeff: Our traditional business.

Jeff: Yes.

Speaker Change: Paul I'd like to close by saying that.

Speaker Change: It's a great diversified across life co, but it's also a really good diversified business within.

Many of them would be administrative service only, so we don't take risk with these plans, but they come at much lower margins. So their margin complexion is variable by client size. As you know, I'm sure we have on boarded the Canadian federal government plan, which would account for a large portion of that book premium growth.

Paul: These are out of the money.

Paul: Low risk.

Paul: Turning to put more tail risk and a lot of goods transactions and what we're really doing is helping with capital solutions.

Speaker Change: And the way Jeff described it across all of those risks, including who didn't say this but we even do a little bit of pet insurance as an example.

Paul: Yes. There are there are there are remote risks, but we're helping with capital and financial solutions.

Jeff: These are out of the money.

Jeff: Low risk.

Paul: Youre able to do that because we've got the expertise to help and you've got that diversification as opposed to concentration.

Jeff: Starting to put more tail risk and a lot of goods transactions and what we're really doing is helping with capital solutions.

that would correspond to an ASO plan at a lower margin level in this.

Speaker Change #114: Alright, Okay. Thanks again for the for the time.

And also that we will report an IFRS 17

Jeff: Yes. There are there are there are remote risks, but we're helping with Cabo in financial solutions and Youre able to do that because we've got the expertise to help and <unk> got that diversification as opposed to concentration.

Speaker Change #115: Thanks, Paul.

the risk business where we take risk goes into insurance service results

Paul: The next question is from Tom Mackinnon with BMO capital markets. Please go ahead.

And the margin on plans where we don't take risk where we're only a processor goes lower down on the P&L in the fee business results. So the ratio you're calculating there, the average margin will have gone down because we grew into a large plan. But the ratio does not include the margins we make on these large plans.

Speaker Change: Yes, thanks, and good afternoon.

Speaker Change: Alright, Okay. Thanks again for the for the time.

Speaker Change: First question, just with respect to Canada in the group life and health of the book premiums up nicely year over year.

Speaker Change: Thanks, Paul.

Speaker Change: The next question.

Speaker Change: <unk> is from Tom Mackinnon with BMO capital markets. Please go ahead.

Speaker Change: Hum.

Speaker Change: <unk> 15 billion up nearly 20% year over year, but.

Tom MacKinnon: Yes, thanks, and good afternoon.

Speaker Change: But if I look at the expected earnings in the short term contracts they are only up 5% so.

Tom MacKinnon: First question, just with respect to Canada in the group life and health of the book premiums up nicely year over year.

Okay, thanks. I mean the net fee and spread income is flat year every year as well. So if it would have been picked, if some of those ASO fees would have been picked up there, they don't really seem to be showing in the Canadian net fee and spread income. Or maybe there's other things in there too.

Paul: What's happening with respect to them.

Paul: Is this due to you know.

Tom MacKinnon: $15 billion up nearly 20% year over year.

Paul: Our group coming in that would have been at a lower margin or margin is not fully realized yet.

Tom MacKinnon: But if I look at the expected earnings in the short term contracts are only up 5%. So.

Speaker Change #116: So any color there would be great. Thanks.

They would have been picked up part of that, but there's other business that goes in there, including a retirement business and other wealth business, fee business that goes in there.

Speaker Change: What's happening with respect to.

Speaker Change: So tough that went over to <unk> to share his thoughts on that thank you for the question Tom.

Speaker Change: Is this due to.

Speaker Change: <unk>.

Speaker Change: Our group coming in that would have been have a lower margin or margin is not fully realized yet.

Speaker Change: First lets step back in the group business.

I'd be happy to follow up on that.

Speaker Change: There is there are smaller Panther zargar plans. The smaller plans are typically fully insured the larger plans.

Speaker Change: So any color there would be great. Thanks.

Speaker Change: So tough that went over to <unk> to share his thoughts on that thank you for the question Tom.

Paul: Many of them would be administrative surface service only so we don't take risk with these plans, but they come at much lower margins. So their margin complexion is variable by client size.

Speaker Change: And first let's step back and the group business.

But it sounds like you haven't achieved all of them. There's 85 left, and you're going to earn some of that in 2024 and some of that in 2025. Is that how we should be interpreting that? Yeah.

Speaker Change: There is there are smaller plans and theres larger plans. The smaller plans are typically fully insured the larger plans.

Paul: As you know one ensure we have on boarded the Canadian Federal government plan, which would account for a large portion of that book premium growth.

Paul: Many of them would be administrative services only so we don't take risk with these plans, but they come at much lower margins. So their margin complexion is variable by client sites as you know I'm sure. We have on boarded the Canadian Federal government plan, which would account for a large portion of that book premium growth.

Paul: That would correspond to an ASR plan at <unk>.

Yeah, that's right, Tom. Sorry, I blurt it out there before you finish your question. So the way we measure the achievement is when we put the cost actions in place,

Speaker Change: No our margin level in this and also that we will report in <unk> 17 the.

Paul: The risk business, where we take risk goes into insurance service results and the margin on plans, where we don't take risks, where we're only a processor goes lower down the P&L and the.

that will then play out through the earnings, you know, over the next 12 months. So as you recall, we had 100 million left at the beginning of

Paul: That would correspond to an ASR plan at a lower margin level in this and also that we will report in <unk> 17.

Paul: And the fee business results.

24, an additional 15 was achieved during first quarter, and then the residual 85 come through. But they play through on an annual basis, right? They start to play through midway through the second quarter, and that's what I was getting at as to, you know, half to two-thirds.

Paul: <unk> business, where we take risk goes into insurance service results.

Paul: The ratio that you're calculating there the average margin will have gone down because we grew into a large plan, but the ratio does not include the margins we make on this argument.

Paul: The margin on plans, where we don't take risks, where we're only a processor goes lower down the P&L and the and.

Paul: Okay. Thanks, I mean, the net fee and spread income is flat year over year as well. So if it would have been picked if some of those ASO fees would have been picked up there they don't really seem to be showing.

Paul: And the fee business results so.

Paul: The ratio that you're calculating there the average margin will have gone down because we grew into a large plan but.

of that 100 should come through, will come through in the second, third and fourth quarter radically.

Paul: But the ratio does not include the margins we make on this argument.

Paul: In our Canadian net fee and spread income or maybe there's other things in there too.

Okay. And the tail into 2025.

Speaker Change: Okay. Thanks, I mean, the net fee and spread income is flat year over year as well. So if it would have been picked if some of those asl fees would have been picked up there they don't really seem to be showing.

Paul: They would have been picked up part of that but there's other business that goes in there, including our retirement business and that our wealth business fee business that goes in there.

Understood. And any color with respect to the interest rate environment, what that's doing to credit rates, how's that the MD&A notes a little bit of

Paul: Canadian net fee and spread income or maybe theres other things in there too.

Speaker Change #117: Happy to follow up on that okay. Okay. Thanks, and second is on the just with respect to the true synergies I think the MD&A on page 14 says you've completed through a migration in the second quarter.

Paul: It would have been picked up part of that but there's other business with Golden bear and conveying our retirement business and that our wealth business fee business that goes on there.

spread issues with respect to some higher credited rates. How should we be thinking about, you know, kind of margins with the stable value stuff under this higher rate environment?

Paul: $100 million.

Tom MacKinnon: Happy to follow up on that okay. Okay. Thanks second is on the just with respect to the true synergies I think the MD&A on page 14 says you've completed the pru migration in the second quarter, and you achieved $100 million run rate synergies, but it sounds like you haven't achieved all of them there is $80.

Paul: But it sounds like you haven't achieved.

Yeah, thanks again, Tom, for the question. Yeah, we did note that we had modestly higher credit rates in the empower stable value. Part of that was contractual, and the other part was discretionary. It was a small number of basis points increase overall. We continued, you know, that product's really, you know, as it says, stable value. It's meant to be a store of capital for people who don't like market volatility.

Paul: 85 left and you're right some of that.

Paul: 2020.

Paul: <unk> five is that.

Paul: How we should be saving interpreting that.

Speaker Change: Yes, that's right Tom sorry.

Speaker Change: Blurted out there before you finish your question. So the way we measure the achievement is when we put the cost actions in place.

Speaker Change: <unk> left and Youre going to earn some of that in 2024 and some of that in 2025 is that.

Paul: How we should be trading at.

Speaker Change: Will then play out through the earnings.

Paul: Yes.

Speaker Change: Over the next 12 months. So as you recall, we had 100 million less at the beginning of 2024 and additional 15 was achieved during first quarter and then the residual 85 come through but they play through on an annual basis right.

Speaker Change: Yes, that's right Tom sorry.

So it's an important part of our product set.

Tom: Blurted out there before you finish your question. So the way we measure the achievement is when we put the cost actions in place.

You know, in a market with upward market returns like we've seen, you'll typically see less flows into that account. In terms of the other impacts of interest rates,

Speaker Change #118: Will then play out through the earnings.

Speaker Change: Over the next 12 months. So as you recall, we had a $100 million left at the beginning of 2024 and additional 15 was achieved during first quarter and then the residual 85 come through but they play through on an annual basis right.

Paul: They start to play through midway through the second quarter and Thats, what I was getting at is to half to two thirds.

I think we highlighted fairly high degree of impact of higher rates on our earnings on surplus.

Paul: Of that 100 should come through will come through in the second third and fourth quarter Ratably.

And as you know, we continue to see higher rates in the first four months of this year that will radibly, if they stay there, will continue to come through our earnings on surpluses as our assets mature. Those are relatively short duration. So you can think of that, you know, that tailwind and interest rates in the first four months of this year playing into our earnings on surplus as we look forward.

Paul: Okay and tail into 2020 five.

Paul: They start to play through midway through the second quarter and Thats, what I was getting at is two <unk>.

Speaker Change: Understood and then any color with respect to the.

Paul: Half to two thirds.

Paul: Of that 100 should come through will come through in the second third and fourth quarter Ratably.

Paul: The interest rate environment, what that's doing to credit rate how is that.

Paul: Okay, and <unk> into the company 25.

Paul:

Paul: The MD&A notes a little bit of that.

Speaker Change: Understood and.

Speaker Change: Spread issues with respect to some higher credited rates.

Speaker Change: Any color with respect to.

Speaker Change: The interest rate environment, that's due to credit rates how is that.

Doug Young: Should we be thinking about kind of margins with the stable value stuff under this higher rate environment.

Great. And then the final one, I think in the first quarter or in the fourth quarter slides, you said you're looking for Empower to grow its base earnings 15 to 20 percent in 2024. Do you still stand by that?

Paul: The MD&A notes a little bit of that.

Doug Young: Yeah.

Speaker Change: Thanks again, Tom for the question, Yes, we did note that we had modestly higher credit rates in the in the empower stable value part of that was contractual and the other part was discretionary.

Paul: Spread issues with respect to some higher credited rates.

Paul: How should we be thinking about kind of margins with the stable value stuff under this higher rate environment.

Tom, yes, we do. Lots of confidence in that business. As Ed talked about, pipeline is strong.

Doug Young: It's some small number of basis points increase overall.

Paul: Yes.

synergies on the come, a wealth business that, you know, where increasingly, you know, early innings in that business. We've done, you know, modest penetration into the overall potential client base, so we're confident in that business.

Doug Young: We continued that products really assets at stable value, it's meant to be a value store of capital for for people, who don't like market volatility.

Paul: It was.

Doug Young: So it's an important part of our product set.

Paul: Small number of basis points increase overall.

Doug Young: In a market with that Mark.

Paul: We continued that products really.

Doug Young: Upward upward market returns like we've seen.

Paul: Stable value, it's meant to be a value store of capital for for people, who don't like market volatility.

The next question is from Doug Young with Desjardin Capital Markets. Please go ahead.

Doug Young: You'll typically see less flows into that account.

Doug Young: In terms of the other impacts of interest rates I think we highlighted fairly.

Paul: So it's an important part of our product set.

Good afternoon. Just a follow up on that 15 to 20%. I assume that is all in for the U.S. division, so that includes corporate, that includes the pickup of the Franklin dividend. Is that correct?

Paul: In a market with a mark.

Doug Young: The fairly.

Paul: Upward upward market returns like we've seen.

Doug Young: High degree of impact of higher rates on our earnings on surplus.

Paul: You'll typically see less flows into that account.

Doug Young: And as you know we continue to see higher rates in the first.

Paul: In terms of the other impacts of interest rates I think we highlighted fairly.

Yeah, that is correct.

Doug Young: Four months of this year.

Thank you. Thank you.

Doug Young: That will radically if they stay there will continue to come through our earnings on surplus this as our assets mature those are relatively short duration.

Paul: The fairly.

And then just back to the CRS, you know, I guess the results can obviously be lumpy. You know, we can look back over time in terms of the ups and downs. This quarter had good experiences as he articulated.

Paul: High degree of impact of higher rates on our earnings on surplus and as you know we continue to see higher rates in the first.

Doug Young: So you can think of that that tailwind and interest rates in the first four months of this year playing into.

Paul: Four months of this year.

Tom: That will rapidly.

I guess my question is, is the 222 million of base earnings, 54% base are we, like, is this a normal quarter or was this a particularly strong quarter and we should expect some normalization? Just trying to get some perspective on

Speaker Change: They stay there will continue to come through our earnings on surplus this as our assets mature those are relatively short duration. So you can think of that that tailwind and interest rates in the <unk>.

Doug Young: Our earnings on surplus as we look forward.

Speaker Change #119: Great and then the final one I think in the first quarter or in the fourth quarter slides, you said youre looking for empower to grow its base earnings 15% to 20% in 2024 do you still stand by that.

Paul: First four months of this year playing into.

how to think about the earnings on a go forward basis from this division.

Paul: Our earnings on surplus as we look forward.

Speaker Change: Okay, and then final one I think in the first quarter or in the fourth quarter slides, you said youre looking for.

I'll start with that and then pass it over to Jeff, Doug.

Jeff: Tom Yes, we do lots of confidence in that business as.

Jeff: As Ed talked about pipeline is strong synergies on the come.

So, as I said before, it's a diversified business. So it's diversified across some of the more traditional life and longevity mortality. We've got our P&C catastrophe business, and then we've got all the structured businesses.

Speaker Change: Power to grow its base earnings 15% to 20% in 2024 do you still stand by that.

Jeff: Our wealth business.

Jeff: We're increasingly.

Jeff: Early innings in that business, we've been modest penetration into the overall potential client base. So we're confident in that business.

Paul: Tom Yes, we do lots of confidence in that business.

And in any given environment, you're going to see different dynamics. So as Jeff said, once we have...

Paul: As Ed talked about pipeline is strong synergies on the come.

a better siting on sort of long-term trans post-COVID, we would

Speaker Change #120: Okay. Thanks.

Paul: Our wealth business that.

Speaker Change #120: Yeah.

Speaker Change: We're increasingly.

start to sort of participate probably more fully in the annuit and mortality market. But we're, I wouldn't say we're on the sidelines, but we're being really disciplined and watching others, we might say, take bets in that market. So we're being disciplined. Having said that, diversifying the structured business, we have noted that, you know, the global minimum tax impact on CRS has not flowed through, and we've provided some guidance on how that would play out.

Doug Young: The next question is from Doug.

Speaker Change: Early innings in that business, we've been modest penetration into the overall potential client base. So we're confident in that business.

Doug Young: <unk> young with <unk> capital markets. Please go ahead.

Doug Young: Good afternoon, just just a follow up about 15% to 20% I assume that is all in the U S Division. So that includes corporate that includes the pickup of the Franklin dividend is is that correct.

Speaker Change: Okay. Thanks.

Speaker Change: Yeah.

Speaker Change: The next question is from Doug Young with <unk> capital markets. Please go ahead.

Speaker Change: Yes that is correct.

Doug Young: Good afternoon, just just a follow up on that 15% to 20% I assume that is all in the U S Division. So that includes corporate that includes the pickup of the Franklin dividend as is.

Speaker Change: Okay.

Speaker Change: And then just back to the Crs.

I would characterize this as a good quarter, but not like a crazy strong quarter, but it's all those different moving parts.

Speaker Change: I guess.

Speaker Change: The results can obviously be lumpy, we can look back over over time in terms of the ups and downs this quarter had good experiences as he articulated.

But the beauty of it is diversification. So, Jeff, yeah, it's more color. But that's the way I view of the business. Yeah, there is definitely some lumpiness in the results due to mortality. Or I think in the fourth quarter, we released, like we had good experience on the PNC.

Speaker Change: That correct.

Speaker Change #121: Yes that is correct.

Doug Young: Okay.

Speaker Change: I guess my question is is the $222 million of base earnings 54% base ROE is that as a normal quarter or was this a particularly strong quarter and we should expect a normalization just trying to get some perspective on how to think about the earnings on a go forward basis from from this division.

Doug Young: And then just back to the Crs.

Doug Young: I guess.

Doug Young: The results can obviously be lumpy, we can look back over over time in terms of the ups and downs. This quarter had good experiences as you articulated.

catastrophe side, we see our clients every September and October , talk to them, they explain to us where

Speaker Change: I guess my question is is the $222 million of base earnings 54% base ROE is this a normal quarter or was this a particularly strong quarter and we should expect some normalization just trying to get some perspective on how to think about the earnings on a go forward basis from from this division.

the losses are going. So we released, I think, 60 million of reserves that we had

Speaker Change: I'll start with that and then pass it over to Jeff Doug.

put up prior to that. So there was good experience.

Jeff Ward: So as I said before it's a diversified business. So it's diversified across some of the more traditional life and longevity mortality, we've got our P&C catastrophe business and then we've got all the structure businesses and in any given environment youre going to see different dynamics. So as Jeff said once we have a better saving on sort of.

And does create some lumpiness, but I think the structured business is relatively stable. Mortality is going to have good quarters and bad quarters, and we had a good one.

Speaker Change #122: I'll start with that and then pass it over to Jeff Doug.

I think what I would say is that we're expecting the structured business to continue to grow.

Jeff Ward: So as I said before it's a diversified business. So it's diversified across some of the more traditional life and longevity mortality, we've got our P&C catastrophe business and then we've got all the structured businesses and in any given environment youre going to see different dynamics. So as Jeff said once we have a better saving on sort.

Jeff Ward: Long term trends post Covid, we would start to sort of participate probably more fully in the when the annuitant mortality market, but we're putting say were on the sidelines, but we're being really disciplined in watching others.

But maybe mortality is a bigger question mark. We don't know for sure yet where it's going to go. So there could be some lumpiness there. And Paul mentioned the global minimum tax. I think that has.

Speaker Change: We might say.

roughly 10% effect on our business. We've taken some of it in our Irish business, but

Speaker Change: In that market, so we're being disciplined.

Doug Young: Long term trends post COVID-19, we would start to sort of participate probably more fully in the.

Speaker Change: The diversifying diversifying the.

Barbados and Canada have not enacted yet. So if they did, then it would have a 10% effect on our business. So it gives you an idea of where I think we're going, going forward.

Jeff Ward: The structured business, we have noted that.

Doug Young: Annuitant mortality market, but we're let's say we're on the sidelines, but we're being really disciplined in watching others.

Jeff Ward: The global minimum tax impact on Crs has not flowed through and we've provided some guidance on how that would play out but I would characterize this as a good quarter, but not like a crazy strong quarter, but it's all those different moving parts, but the beauty of it is diversification so Jeff yes.

Doug Young: So you take bets in that market, so we're being disciplined.

Speaker Change: So the risk flooding diversifying the <unk>.

And just a follow-up, maybe this can provide some perspective, but how do you or would you tell us or break down how much that structured product contributes to profitability?

Doug Young: The structured business, we have noted that.

Doug Young: The global minimum tax impact on Crs has not flowed through and we've provided some guidance on how that would play out but I would characterize this as a good quarter, but not like a pretty strong quarter, but it's all those different moving parts, but the beauty of it is diversification. So Jeff ill, let you add some more color, but thats the way I view of the <unk>.

John: Some more color, but thats the way our view of the business. There is definitely some lumpiness in our results due to mortality or I think in the fourth quarter. We released like we had good experience on the P&C.

We do that already. I think that when you look at the short-term business,

Most of that, what's not in the CSM or the RA release is mostly the structured business. There's a bit of PMC catastrophe, maybe 20 million a year, sorry, $20 million a quarter, but the rest of it is all structured. So, let's say 100 million.

Jeff Ward: <unk> side, we see our clients every September and October and talk to them they explain to us where <unk>.

Jeff: There is definitely some lumpiness in our results due to mortality or I think in the fourth quarter, we released.

Speaker Change: The losses are going so we released I think $60 million.

Speaker Change: Of reserves that we had put out prior to that so theres good experience.

Jeff: We had good experience on the P&C.

Doug Young: Catastrophe side, we see our clients every September and October talked to them. They explained to us where they think the losses are going so we released I think $60 million.

Speaker Change: It does create some lumpiness, but.

structured earnings per quarter.

Speaker Change: I think that structured business is relatively stable.

Okay. And then just lastly, John , you talked about the asset repricing or the investment repricing short duration as interest rates have gone up and the impact on earnings on surplus. I mean, how much of that portfolio has been repriced and how much more will be repriced as we...

Speaker Change: Mortality.

Speaker Change: It is going to have good quarters, and bad quarters, and we had a good one.

Doug Young: Our reserves that we had put out prior to that so theres good experience.

Speaker Change: I think what.

Speaker Change: I would say is that we're expecting the structured business to continue to grow.

Doug Young: Does create some lumpiness, but.

Doug Young: The structured business is relatively stable.

Speaker Change: But maybe mortality is a bigger question Mark we don't know for sure yet whether it's going to go so there could be some lumpiness there and Paul mentioned, the global minimum tax I think that has.

Speaker Change: Mortality is going to have good quarters, and bad quarters, and we had a good one.

you know, or flow through at higher rates through the year. Just trying to get some perspective on how to think about earnings on surplus.

Doug Young: I think what I.

Doug Young: I would say is that we're expecting the structured business to continue to grow.

Yeah, you know, if you think about it kind of geographically,

Unknown Executive: Roughly 10% effect on our on our business, we've taken some of it in our Irish business, but.

Doug Young: But maybe mortality is a bigger question Mark we don't know for sure yet whether it's going to go so there could be some lumpiness there and Paul mentioned, the global minimum tax I think that has.

You would think around one to two years for most of the business. You know, Empower, I think, is a little bit longer than that. So think of it two to three years. So there is a little, there is more to come. But, you know, obviously the sharp rise in rates in the first quarter

Unknown Executive: Barbados in Canada, not enacted yet so we.

Unknown Executive: If they did then I would have a 10%.

Speaker Change: Roughly 10% effect on our on our business, we've taken some of it in our Irish business, but.

Unknown Executive: Effect on our business. So it gives you an idea.

Speaker Change: Where I think we're going going forward.

Speaker Change: And just a follow up maybe just.

Speaker Change: Barbados in Canada, not enacted yet so we.

Speaker Change: Provide some perspective, but how do you or would you tell us a breakdown how much that structured product contributes to profitability.

will come through as well. I think those are, you know, of a reasonable amount. So there's a little, there's some more to come, but we are well into that, you know, into that repricing.

Jeff Ward: If they did then it would have a 10%.

Jeff Ward: Effect on our business. So it gives you an idea of where I think we're going going forward.

Speaker Change: We do that already I think that when you look at the short term business.

Speaker Change #123: And just a follow up maybe just provide some perspective.

Okay, great. Thank you.

Speaker Change: Most of that what's not CR that what's not in the CSM or DRA release is mostly the structure business is a bit of P&C catastrophe, maybe $20 million a year sorry.

Jeff Ward: Or would you tell us a breakdown how much that structured product contributes to profitability.

Thanks, Doug.

Once again, if you have a question, please press star, then one.

Jeff Ward: Yeah.

The next question is from Nigel DeSuzza with Veritas Investment Research. Please go ahead.

Jeff Ward: We do that already I think that when you look at the short term business.

Speaker Change: Sorry, $20 million a quarter for the rest of it is all structured so.

Jeff Ward: Most of that.

Thank you. Good afternoon. I wanted to turn to your Candace segment and touch on CSN.

Jeff Ward: Not cri, what's not in the CSM or DRA release is mostly the structure business is a bit of PMC catastrophe, maybe $20 million a year sorry.

Speaker Change: Let's say $100 million.

Speaker Change: I've structured earnings per quarter.

Speaker Change: Okay, and then just lastly, John you talked about the asset repricing or the investment repricing short duration as interest rates have gone up and the impact on earnings on surplus I mean, how much of the of that portfolio has been repriced and how much more will be repriced as we.

I know you've said it's not a focus for growth, but the balance has declined, but it's been offset by what appears to be a higher rate of CSN.

Jeff Ward: Sorry, $20 million a quarter for the rest of it is all structured so.

Jeff Ward: Let's say $100 million.

amortization or the last four quarters into earnings. Is that entirely driven by a shift in product mix? Or would there be any other factors that's improved the amount of CSM that's amortized into base earners?

Jeff Ward: I've structured earnings per quarter.

Jeff: Okay, and then just lastly, John you talked about the asset repricing or the investment repricing short duration as interest rates have gone up and the impact on earnings on surplus I mean, how much of the and that portfolio has been repriced and how much more will be repriced as we.

Speaker Change: Our flow through at higher rates through the year, just trying to get some perspective on how to think about earnings on surplus.

Speaker Change: Yes.

I will turn that one to for this to start and perhaps Linda could weigh in.

Speaker Change: If you think about it kind of geographically.

So if you look at the opening and closing balance of CSM, there would be a one-time impact this period because we have an external reinsurance action that has added for CSM in this period. So that would be favorable not going to earnings but adding to our base of CSM for future earnings.

Speaker Change: <unk>.

Speaker Change: You would think around one to two years for most of the business.

John: Our flow through at higher rates through the year, just trying to get some perspective on how to think about earnings on surplus.

Speaker Change: Empower I think is a little bit longer than that so so think of it two to three years. So there is a little there is more to come but.

Jeff Ward: Yes.

Jeff Ward: If you think about it kind of geographically.

Jeff Ward: <unk>.

Jeff Ward: You would think around one to two years for most of the business.

Speaker Change: Obviously, the sharp rise in rates in the first quarter.

Otherwise, yes, we have been amortizing more CFM into earnings than creating CSM. We continue to be disciplined in our individual insurance business, the nonparts fading side of our insurance business. That's what we report on this, if you look at this area of CSM. So what we would have seen this quarter, I believe, is consistent with what we would have seen in past quarters.

Speaker Change: Come through as well I think those are up.

Speaker Change: Empower I think is a little bit longer than that so so think of it two to three years. So there is a little there is more to come but obviously the sharp rise in rates in the first quarter.

Speaker Change: Reasonable amount so.

Speaker Change: There's some.

Speaker Change: More to come but we are.

Speaker Change: Well into that.

Speaker Change: And to that of repricing.

Speaker Change: Okay, great. Thank you.

Speaker Change: We will come through as well I think those are.

Speaker Change #124: Thanks, Doug.

Speaker Change: Reasonable amount so.

Speaker Change: Once again, if you have a question. Please press Star then one.

Speaker Change: There's a little there is some more to come but we are.

Speaker Change: Well listen to that.

Speaker Change: The next question is from Nigel This is that with Barclays investment Research. Please go ahead.

Yeah, and Nigel, it is indicative of, if you think about the duration of the liabilities and the way they run off, you know, relative to, you know, your expected termination of contracts in the lake, I think it's just following the natural flow of the book with

Speaker Change: That are repricing.

Speaker Change: Okay, great. Thank you.

Unknown Executive: Thank you good afternoon, I wanted to turn to your Canada segment and touch on.

Speaker Change: Thanks, Doug.

Speaker Change: Once again, if you have a question. Please press Star then one.

Speaker Change: <unk>.

Speaker Change: The next question is from Nigel D'souza with Bariatric investment research. Please go ahead.

Unknown Executive: I know you've you've set us on it.

the ads coming in with whatever their duration is, the things that come off on their duration. And at this stage, as we pointed out, notwithstanding that,

Speaker Change: Focus for growth, but the balances decline.

Speaker Change: It's been offset by.

Unknown Executive: Thank you good afternoon, I wanted to turn to your Canada segment and touch on TSN.

Speaker Change: Appears to be a higher rate of CSN.

It has been getting a bit smaller, but at the same time, we remain very committed to the non-par business in Canada. We just want to make sure we're writing it in a disciplined way where it's creating value for all stakeholders, good value for the client.

Speaker Change: Amortization over the last four quarters into earnings is that entirely driven by <unk>.

Unknown Executive: I know you've set a target.

Speaker Change: Shifts in product mix or would there be any other factors.

Unknown Executive: Focus for growth, but the balances decline.

Speaker Change: The amount of CSN to amortize the debates.

Speaker Change: But it's been offset by what appears to be a higher rate of CSN.

Speaker Change: Yes.

Speaker Change: I will turn that one to for this to start and breaths Linda Goodwin. So if you look at the opening and closing balance of CSM, there would be a onetime impact this period, because we add a reinsurance and external reinsurance action that has added for CSN in this period and so that would be.

good value from the standpoint where advisors have the right tools to sell and good value for the shareholder where we're getting the right return on capital. So that's kind of the balancing act and we think it's the right way to play this particular market right now given the competitive conditions.

Speaker Change: Amortization over the last four quarters into earnings is that entirely driven by <unk>.

Speaker Change: Shifting product mix or would there be any other factors that could improve.

Speaker Change: The amount of CSM that's amortized.

Speaker Change: Yes.

Speaker Change: I will turn that one to for this to start and perhaps Linda could win. So if you look at the opening and closing balance of CSM, there would be a onetime impact this period, because we add a reinsurance and external reinsurance action that has added for CSN in this period, so that would.

Okay, that's helpful and just wanted to clarify the guidance on global minimum.

Speaker Change: Favorable not filling through earnings, but adding to our base of CFM for future earnings.

tax. I believe it's two to four percentage points increase in your affected tax rate at the all LIFCO level. And when I look at the trailing effected tax rate about 15%, that will put it around 17 to 19%.

Speaker Change: Otherwise, yes, we have been.

Speaker Change: Amortizing more CFM and to earnings then created creating CFM, we continue to be disciplined in our individual insurance business than nonparticipating side of our insurance business. That's what we report on this.

Speaker Change: Be favorable not filling through earnings, but adding to our base of CFM for future earnings otherwise, yes, we have been.

going forward. But when I look at your commentary on base earnings this quarter, if it was enacted, I calculate an effected tax rate closer to 20%. So just wondering if that's right and if there was any items in this quarter that resulted in that affected tax rate being higher. Is it just a mix of earnings

Speaker Change: If you look at this.

Speaker Change: Area CSM. So what we would have seen this quarter I believe is consistent with what we would see with what we're seeing has been in past quarters.

Speaker Change: Diving more CFM to earnings then created creating CFM, we continue to be disciplined in our individual insurance business than nonparticipating side of our insurance business. That's what we report on this.

Speaker Change: Nigel It is indicative of if you think about the duration of the liabilities them the way they run off.

Speaker Change #125: If you look at this area CSM. So what we would have seen this quarter I believe is consistent with what we will see what we're seeing has been in past quarters.

Mas: Relative to.

Speaker Change: Youre expected termination of contracts and the like I think it's just following the natural flow of the book with the ads coming in with whatever their duration is the things that come off of them their duration and.

And then is that 17 to 19% range the right way to think about it going forward?

Yeah, well, Nigel, I'll tell you that that 70 to 19 is the right range. I wonder whether we might take that offline and just go through your, compare our calculations, because as we've noted, there's been a little bit of it recognized in the context of Ireland adopting, the remainder that will be adopted related to Canada and Barbados on the assumption that it's, is enacted. Right.

Speaker Change: And Nigel it is indicative of if you think about the duration of the liabilities and the way they run off.

Speaker Change: At this stage as we pointed out notwithstanding that.

Speaker Change: Relative to you.

Speaker Change: <unk>.

Speaker Change: It has been getting a bit smaller but at the same time, we remain very committed to the non par business in Canada. We just wanted to make sure we're ready for that in a disciplined way, where it's creating value for all stakeholders good value for the client.

Speaker Change: At this stage as we pointed out notwithstanding that.

But our calculations wouldn't take us into that range where you're at. So perhaps offline we could go through the math. Just compare notes that way.

Speaker Change: <unk>.

Speaker Change: Good value from our standpoint, we're at advisors have the right tools to sell and good value for the shareholder where we're getting the right return on capital. So thats kind of the balancing act and we think it's the right way to play this particular market right now given the competitive conditions.

Speaker Change: It has been getting a bit smaller but at the same time, we remain very committed to the non par business in Canada. We just wanted to make sure we're running to that in a disciplined way, where it's creating value for all stakeholders good value for the client.

Okay, that's helpful. That's it for me. Thanks.

Thank you, Nigel.

This concludes the question and answer session. I'd like to turn the conference back over to Mr. Mann for any closing remarks.

Speaker Change: Good value from the standpoint, where advisers have the right tools to sell and good value for the shareholder where we're getting the right return on capital. So thats kind of the balancing act and we think it's the right way to play this particular market right now given the competitive conditions.

Speaker Change: Okay. That's helpful and just wanted to clarify the guidance on pulpwood minimum.

Thank you very much, operator. Well, I would like to thank everyone who's participated in today's call. We really do appreciate your interest and insights as we look through our results in any given quarter.

Speaker Change: I believe that two to four percentage point increase.

Speaker Change: Right.

Speaker Change: All life co level, when I look at the trailing effective tax rate of about 50%.

Unknown Executive: Okay. That's helpful and just wanted to clarify the guidance on corporate minimum.

Speaker Change: Ralph.

As I'll restate from my final comments and prepared comments, we remain very excited about the opportunity we have as we look ahead through the balance of 2024, and we really look forward to connecting, reconnecting with all of you in August , hopefully during sunny times in August , and hopefully with a Canadian hockey team having won the Stanley Calf. Okay, thank you and have a great rest of the day.

Speaker Change: 19%.

Speaker Change: Going forward, but when I look at your commentary on pace.

Unknown Executive: I believe it's 2% to four percentage point increase.

Speaker Change: Base earnings this quarter, if it was enacted.

Speaker Change: Tax rate.

Speaker Change: All lifestyle level.

Speaker Change: Calculate.

Speaker Change: At the trailing.

Speaker Change: Tax rate closer to 20%. So just wondering if that's right and if there was any.

Speaker Change: Tax rate of about 50% output at around 17% to 19%.

Speaker Change: Items in this quarter that resulted in that effective tax rate being higher or is it just the <unk>.

Speaker Change: Forward, but when I look at your commentary on.

Speaker Change: Base earnings this quarter, if it was enacted.

Speaker Change: Good morning.

Speaker Change: And then as that 17% to 19% range the right product going forward, yes, well Nigel I'll tell you that 70 to 90 million is the right range I wonder whether you might take that offline.

Speaker Change: Calculate.

This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant.

Speaker Change: Tax rate closer to 20%. So just wondering if that's right and if there was any items in this quarter that resulted in that effective tax rate in <unk>.

Speaker Change: Just go through your competitor our calculations because as we've noted there's been a little bit of it recognized in the context of Ireland, Ireland adopting the remainder of that will be adopted related to Canada in Barbados on the assumption that it's.

Speaker Change: Higher is it just the mix of earnings.

Speaker Change: And then as that 17% to 19% range the right way to think.

Speaker Change: Going forward, yes.

Speaker Change: Well Nigel I'll tell you that 7% to 19 is the right range I Wonder whether you might take that offline and just go through your compare our calculations because as we've noted there's been a little bit of it recognized in the context of Ireland, Ireland adopting the remainder of that will be adopted related to Canada and Barbara.

Speaker Change: Isn't it enacted.

Speaker Change: Our calculations wouldn't take us into that range.

Speaker Change: Where youre at so perhaps offline we could go through the math.

Speaker Change: Fair enough.

Speaker Change: Okay. That's helpful. That's it for me.

Speaker Change: Those on the assumption that it's.

Speaker Change: Thanks.

Speaker Change: It is enacted.

Speaker Change: Thank you Nigel.

Speaker Change: But our calculations wouldn't take us into that range.

Speaker Change: This concludes the question and answer session I would like to turn the conference back over to Mr. Mas for any closing remark.

Speaker Change: Where youre at so perhaps offline we could go through the math.

Speaker Change: Just compare notes upwards.

Mas: Thank you very much operator, well I would like to thank everyone, who has participated in today's call. We really do appreciate your interest and insights as we as we look through our results in any given quarter.

Speaker Change #108: That's helpful. That's it for me thanks.

Speaker Change: Thank you Nigel.

Moderator: This concludes our question and answer session I would like to turn the conference back over to Mr. Mas for any closing remark.

Mas: As I'll restate for my final comments in the prepared comments, we remain very excited about the opportunity that we have as we look ahead through the balance of 2024, and we really look forward to connecting and reconnecting with all of you in August hopefully during the Sunday times in August and hopefully with the Canadian Hockey team, having won the Stanley Cup.

Mr. Mas: Thank you very much operator.

Mas: Well I would like to thank everyone, who has participated in today's call. We really do appreciate your interest and insights as we as we look through our results in any given quarter.

Speaker Change: As I'll restate for my final comments in the prepared comments, we remain very excited about the opportunities. We have as we look ahead through the balance of 2024, and we really look forward to connecting reconnecting with all of you in August hopefully during the Sunday times in August and hopefully with the Canadian hockey team having one.

Speaker Change #103: Okay. Thank you and have a great.

Speaker Change: The rest of the day.

Speaker Change: I think that close today's conference call you may disconnect. Your line. Thank you.

Speaker Change #104: You for participating and have a pleasant day.

Speaker Change #107: Suddenly come okay. Thank you and have a great.

Speaker Change: The rest of the.

Speaker Change #109: Okay. Thanks, Chuck close today's conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.

Speaker Change #104: Yeah.

Speaker Change #104: [noise].

Speaker Change #104: Yeah.

Speaker Change: Yeah.

Speaker Change: [music].

Q1 2024 Great-West Lifeco Inc Earnings Call

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