Power Corp -2022 Earnings, Price Target Update

This is only a sample of the article, please login to view the entire article

Power Corporation of Canada(TSX: POW) is an international management and holding company that focuses on financial services in North America, Europe, and Asia. The largest contributor to earnings is the insurance and wealth management segment contributing a significant portion of earnings. This mainly includes Great-West Life and to a lesser extent IGM Financial. Additional segments include Group Bruxelles Lambert, Sagard and Sustaining Investments, China AMC and Other Investments, and Stand Alone businesses.

Interests in publicly listed companies include Great-West Life(GWO-TSX), and IGM Financial (IGM-TSX) comprise the majority of assets. Approximately 40% of earnings are from Canada, Europe – 26%, US-14%, and 20% from the Alternative Investments segment. Total assets as of Dec-31-2022 were $733.7B compared to Dec-31-2021 of $661.6B( Dec-31-2020 of $629.1B). The increase was mainly from the merger with Power Financial Corp., acquisitions including MassMutual, and in Q2-2022 Prudential Life in the US.

The largest segment of Power Corp earnings is from a 66.8% interest in Great-West Life (GWO-TSX). Great-West Life, London Life, and Canada Life brands were merged into Canada Life in 2020, with Great-West Life as the publicly listed entity. They were previously owned through Power Financial Corp.(PWF-TSX). Power Financial Corp.(PWF) was merged with Power Corp. in Q1-2020 by way of a share exchange. Power Corp. also owns a 62.1% interest in IGM Financial (IGM-TSX) and a 14.1% interest in GBL.(Groupe Bruxelles Lambert).

You must be a member to view the entire article, please subscribe or login