Changes for page Power Corporation of Canada

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  Investment Planning Counsel is an integrated financial services company focused on providing Canadians with high-quality financial products, services and advice through its network of approximately 730 independent financial advisors.
--Groupe Bruxelles Lambert <>
++[[image:POW3.jpg]]
++
++=== Groupe Bruxelles Lambert ===
++
  GBL is a leading investor in Europe, focused on long-term value creation and relying on a stable and supportive family shareholder base. GBL strives to maintain a diversified high-quality portfolio composed of global companies, leaders in their sector, in which it can contribute to value creation by being an active professional investor.
@@ -146,12
+146,12 @@
  Power Financial Europe SA, a wholly owned subsidiary of Power Financial, and the Frère Group each hold a 50% interest in Parjointco SA, a Belgium-based company. Parjointco holds a 43.2% voting interest in GBL.
--Alternative Asset Investment Platforms<>
++=== Alternative Asset Investment Platforms ===
  Power Corporation, through its alternative asset investment platforms (investment platforms), is developing alternative asset management businesses which build upon the investment capabilities that have been created over many years in several high-growth asset classes. The investment platforms are focused on growing their asset management businesses through raising third-party capital and the Corporation intends to provide seed capital to the different investment products managed by each of the investment platforms.
--Sagard
++**Sagard**
  Sagard was founded in 2005 as a complement to the Corporation’s global investment activities. Today, Sagard is a multi-strategy alternative asset manager with professionals principally located in Canada, the U.S. and Europe.
@@ -162,7
+162,7 @@
  Sagard invests across five asset classes: private credit, healthcare royalties, venture capital, private equity and real estate, and also offers wealth management services.
--Power Sustainable
++**Power Sustainable**
  Power Sustainable is a global multi-platform alternative asset manager with a long-term investment approach focused on sustainable strategies. It has offices in Montréal, Toronto, Shanghai, Beijing and New Jersey.
@@ -170,12
+170,12 @@
  Power Sustainable is comprised of two platforms: the Pacific platform invests in the China equity markets, seeking high-quality, sustainable business models with a fundamentals-based, research-driven investment process; and the Energy Infrastructure platform invests in the development, construction, and operations of renewable energy infrastructure assets in North America.
--Fintech Investments<>
++=== Fintech Investments ===
  In partnership with its subsidiaries Great-West Lifeco and IGM Financial, Power Corporation has been actively participating in the emerging fintech industry. The group believes that fintech will change business models in financial services, making financial advice, insurance and investment services more accessible to consumers and available to them by the means and at the times that best suit them.
--China AMC<>
++=== China AMC ===
  Power Corporation’s multi-generational relationships have been foundational in creating investment opportunities in China, such as through its investment in China Asset Management Co., Ltd. (China AMC), one of the largest asset managers in China.
@@ -189,15
+189,15 @@
  Power Corporation and IGM Financial each hold interests of 13.9% in China AMC, representing a combined 27.8% interest.
++[[image:POW4.jpg]]
--Recent Acquisitions
++== Recent Acquisitions ==
--Acquisition of MassMutual retirement services business
--On December 31, 2020 Great-West Life & Annuity completed the purchase, via indemnity reinsurance, of the retirement services business of Massachusetts Mutual Life Insurance Company (MassMutual). Lifeco assumed the economics and risks associated with the reinsured business. The acquisition strengthens Lifeco’s position as a leader in the U.S. retirement market.
++**Acquisition of MassMutual retirement services business**
--[[https:~~/~~/www.powercorporation.com/media/uploads/reports/annual/power_corporation_-_2021_annual_report-final.pdf>>url:https://www.powercorporation.com/media/uploads/reports/annual/power_corporation_-_2021_annual_report-final.pdf]]
++On December 31, 2020 Great-West Life & Annuity completed the purchase, via indemnity reinsurance, of the retirement services business of Massachusetts Mutual Life Insurance Company (MassMutual). Lifeco assumed the economics and risks associated with the reinsured business. The acquisition strengthens Lifeco’s position as a leader in the U.S. retirement market.{{footnote}}https://www.powercorporation.com/media/uploads/reports/annual/power_corporation_-_2021_annual_report-final.pdf{{/footnote}}
  Lifeco paid a ceding commission of $2,937 million (US$2,312 million) net of working capital adjustments to MassMutual, and funded the transaction with existing cash, short-term debt and $1,973 million (US$1,500 million) in long-term debt issued on September 17, 2020.
@@ -205,94
+205,122 @@
  During the year ended December 31, 2021, MassMutual contributed revenue of $2,861  million (US$2,262  million) and net earnings of $199  million (US$158 million). These amounts are included in the statements of earnings and comprehensive income for the year ended December 31, 2021.
--Acquisition of Personal Capital Corporation
++**Acquisition of Personal Capital Corporation**
  On August 17, 2020, Great-West Life & Annuity completed the acquisition of 100% of the equity of Personal Capital, including the 24.8% interest held by IGM prior to the completion of the transaction (approximately 21.7% after giving effect to the dilution). Upon completion of the purchase price allocation in the fourth quarter of 2020, a contingent consideration earn-out provision of $22 million was recognized, representing Lifeco’s best estimate of growth in assets under management metrics defined in the Merger Agreement. The contingent consideration provision was increased by $87 million in 2021 for a total contingent consideration provision of $109 million at December 31, 2021. The increases in 2021 were due to growth in net new assets above the amount assumed at the date of acquisition.
++
  The Merger Agreement allows for contingent consideration of up to $222 million (US$175 million) based on the achievement of growth in assets under management metrics, payable following measurements through December 31, 2021 and December 31, 2022. Changes in the fair value of the contingent consideration measured in accordance with the Merger Agreement subsequent to the completion of the purchase price allocation are recognized in operating and administrative expenses in the statements of earnings.
--Acquisition of Prudential retirement services business
++**Acquisition of Prudential retirement services business**
++
  On July 21, 2021, Great-West Life & Annuity announced that it had entered into an agreement to purchase, through a share purchase and a reinsurance transaction, the full-service retirement business of Prudential Financial, Inc. The acquisition further solidifies Lifeco’s position as a leader in the U.S. retirement market. Lifeco will assume the economics and risks associated with the business, while Prudential will continue to retain the obligation to the contract holders of the reinsured portion. Lifeco will pay a total transaction value of approximately US$3,550 million and will fund the transaction with $1,500 million (US$1,193 million) of limited recourse capital notes (Note 20) and up to US$1,000 million of short-term debt, in addition to its existing resources. The transaction is expected to close in the first half of 2022, subject to regulatory and customary closing conditions. During the year ended December 31, 2021, Lifeco incurred transaction expenses of $9 million (US$7 million) which are included within operating and administrative expenses in the statements of earnings.
--Acquisition of Ark Life Assurance Company
++**Acquisition of Ark Life Assurance Company**
++
  On November 1, 2021, Irish Life completed the acquisition of Ark Life Assurance Company dac (Ark Life) from Phoenix Group Holdings plc for total cash consideration of $332 million (€230 million). Ark Life is closed to new business and manages a range of pensions, savings and protection policies for its customers in the Irish market.
--Acquisition of ClaimSecure Inc.
++**Acquisition of ClaimSecure Inc.**
++
  On September 1, 2021, Canada Life completed the acquisition of 100% of the equity of ClaimSecure Inc., a healthcare management firm that provides health and dental claim management services to private and public businesses in Canada.
--First Quarter 2022 Financial Results
++[[image:POW5.jpg]]
--May 11, 2022; Power Corporation of Canada reported earnings results for the three months ended March 31, 2022.
--[[https:~~/~~/www.powercorporation.com/en/news/press-releases/2022/power-corporation-reports-first-quarter-2022-financial-results-122633/>>url:https://www.powercorporation.com/en/news/press-releases/2022/power-corporation-reports-first-quarter-2022-financial-results-122633/]]
++= Financial Highlights =
++**First Quarter 2022 Financial Results**
++May 11, 2022; Power Corporation of Canada reported earnings results for the three months ended March 31, 2022.{{footnote}}https://www.powercorporation.com/en/news/press-releases/2022/power-corporation-reports-first-quarter-2022-financial-results-122633/{{/footnote}}
++
++
  Net earnings attributable to participating shareholders were $478 million or $0.71 per share, compared with $556 million or $0.82 per share in 2021.
--Adjusted net earnings attributable to participating shareholders [1] were $515 million or $0.76 per share, compared with $786 million or $1.16 per share in 2021.
++Adjusted net earnings attributable to participating shareholders were $515 million or $0.76 per share, compared with $786 million or $1.16 per share in 2021.
--Power Corporation
++**Power Corporation**
--The Corporation reported net earnings [1] of $478 million or $0.71 per share [2] for the first quarter of 2022, compared with $556 million or $0.82 per share in 2021. Adjusted net earnings [1][3] were $515 million or $0.76 per share, compared with $786 million or $1.16 per share in 2021.
++The Corporation reported net earnings of $478 million or $0.71 per share for the first quarter of 2022, compared with $556 million or $0.82 per share in 2021. Adjusted net earnings were $515 million or $0.76 per share, compared with $786 million or $1.16 per share in 2021.
--Adjusted net asset value per share [3] was $49.92 at March 31, 2022, compared with $52.60 at December 31, 2021. The Corporation's book value per participating share [4] was $33.32 at March 31, 2022, compared with $34.56 at December 31, 2021.
++Adjusted net asset value per share was $49.92 at March 31, 2022, compared with $52.60 at December 31, 2021. The Corporation's book value per participating share was $33.32 at March 31, 2022, compared with $34.56 at December 31, 2021.
++
++
  In 2022, the Corporation purchased for cancellation 7,192,900 subordinate voting shares for a total of $280 million under its normal course issuer bids.
--Great-West Lifeco Inc. (Lifeco)
--First quarter adjusted net earnings [5] were $809 million, up 9% compared with the first quarter of 2021.
++**Great-West Lifeco Inc. (Lifeco)**
--Total assets were $600 billion and assets under administration [3] were $2.2 trillion at March 31, 2022, compared with total assets of $630 billion and assets under administration of $2.3 trillion at December 31, 2021.
++First quarter adjusted net earnings were $809 million, up 9% compared with the first quarter of 2021.
++
++Total assets were $600 billion and assets under administration were $2.2 trillion at March 31, 2022, compared with total assets of $630 billion and assets under administration of $2.3 trillion at December 31, 2021.
++
++
  On April 1, 2022, Empower, a subsidiary of Lifeco, completed the acquisition of the full-service retirement services business of Prudential Financial, Inc. (Prudential). Empower's reach in the U.S. is now expanded to more than 17.1 million retirement plan participants and assets under administration to US$1.4 trillion.
++
  Canada Life was rated as the fourth most valued brand in Canada by Brand Finance, making Canada Life the first insurance company ever to jump into its top five most valuable brands in Canada.
--IGM Financial Inc. (IGM)
++**IGM Financial Inc. (IGM)**
++
++
  Record-high first quarter net earnings of $219.3 million, up 8% from the first quarter of 2021.
--Record-high first quarter assets under management and advisement [4] of $268.3 billion, up 8% from the first quarter of 2021 and down 3% from December 31, 2021.
++Record-high first quarter assets under management and advisement of $268.3 billion, up 8% from the first quarter of 2021 and down 3% from December 31, 2021.
++
++
  Record-high first quarter net inflows of $2.5 billion, compared with net inflows of $2.3 billion in the first quarter of 2021.
--Groupe Bruxelles Lambert (GBL)
--GBL reported a net asset value [4] of €21.3 billion, representing €136.10 per share, compared with €22.5 billion or €143.91 per share at December 31, 2021.
++**Groupe Bruxelles Lambert (GBL)**
++GBL reported a net asset value of €21.3 billion, representing €136.10 per share, compared with €22.5 billion or €143.91 per share at December 31, 2021.
++
++
  In the first quarter of 2022, GBL completed €202 million of share buybacks. GBL's board of directors approved an additional buyback envelope of €500 million on May 5, 2022.
++
  GBL announced two strategic investments in the healthcare sector with majority shareholdings in private companies Affidea Group B.V. and Sanoptis AG, leaders in their sector, in April 2022.
--Sagard Holdings Inc. (Sagard) and Power Sustainable Capital Inc. (Power Sustainable)
--Assets under management [4], including unfunded commitments, of the alternative asset investment platforms were $19 billion, up from $11 billion at March 31, 2021.
++**Sagard Holdings Inc. (Sagard) and Power Sustainable Capital Inc. (Power Sustainable)**
++Assets under management including unfunded commitments, of the alternative asset investment platforms were $19 billion, up from $11 billion at March 31, 2021.
++
++
  On March 30, 2022, Power Sustainable announced the launch of its North American agri-food private equity platform, Power Sustainable Lios, and its inaugural Lios Fund I. Power Sustainable Lios is a specialized agri-food private equity investment platform supporting the sustainability transformation occurring within the food system.
  Lifeco: contribution to net earnings increased by 8.5% and contribution to adjusted net earnings increased by 9.1%.
++
  IGM: contribution to net and adjusted net earnings increased by 8.0%.
++
  GBL: negative contribution to net earnings of $29 million. Results include the Corporation's share of a charge of $44 million in the first quarter of 2022 for losses due to an increase in the put right liability of the non-controlling interests in Webhelp Group (Webhelp) and charges related to Webhelp's employee incentive plan.
++
  Alternative asset investment platforms: net earnings include a negative contribution of $92 million from Power Sustainable mainly related to realized losses and impairments in the Power Sustainable China portfolio of $67 million and a $10 million impairment charge in its energy infrastructure platform.
++
  Standalone businesses: contribution to net and adjusted net earnings of $4 million.
++
  Corporate operations and Other: the comparative period includes an income tax expense of $38 million, primarily related to the deferred tax expense resulting from the realization of gains recorded in earnings on the sale of investments.
++
  Adjustments in the first quarter of 2022, excluded from adjusted net earnings, were a net negative impact to earnings of $37 million or $0.05 per share, mainly related to the Corporation's share of Lifeco's adjustments and the Corporation's share of an impairment charge of $10 million recognized by Power Sustainable on direct investments in energy assets. Adjustments in the first quarter of 2021 were a negative net impact to earnings of $230 million or $0.34 per share, mainly related to the Corporation's share of the charge arising from the remeasurement of the put right liability of certain of the non-controlling interests in Wealthsimple Financial Corp. (Wealthsimple) to fair value of $208 million. These were reflected in the Adjustments of the alternative and other investments and in the Effect of consolidation based on Lifeco's and IGM's respective interest.
--References
++= References =
  {{putFootnotes/}}

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