Great-West Posts a Flat Second Quarter

No-moat-rated Great-West turned in a rather flat second quarter. Adjusted earnings of CAD 830 million were flat from the year-ago period. The firm’s U.S. businesses were the culprit as lower markets affected fee income at Empower and Putnam. Europe and Capital and Risk Solutions or CRS performed well with double-digit constant currency revenue growth. We will maintain our fair value estimate of CAD 40 per share. We are adjusting our Morningstar Uncertainty Rating to Medium from High as we believe that more accurately reflects the risk of Great-West’s shares.