Power Financial Corporation operates as an international management and holding company with interests in financial services and asset management businesses in Canada, the United States (U.S.), and Europe.
The company focuses on creating an integrated financial services group, it has remained committed to the growth and evolution of its primary holdings through its controlling interests in Great-West Lifeco Inc. (Lifeco) and IGM Financial Inc. (IGM), and in recent years has implemented an activ...
Power Financial Corporation operates as an international management and holding company with interests in financial services and asset management businesses in Canada, the United States (U.S.), and Europe.
The company focuses on creating an integrated financial services group, it has remained committed to the growth and evolution of its primary holdings through its controlling interests in Great-West Lifeco Inc. (Lifeco) and IGM Financial Inc. (IGM), and in recent years has implemented an active fintech strategy. It also has significant holdings in a portfolio of global companies based in Europe through its investment in Pargesa Holding SA (Pargesa).
Lifeco and IGM are leaders across the insurance, asset management, and wealth and retirement business sectors in their principal markets: Canada, the U.S., and Europe. The company, in partnership with Lifeco and IGM, has been actively participating in the emerging fintech industry.
Lifeco
Lifeco is an international financial service holding company with interests in life insurance, health insurance, retirement and investment services, asset management, and reinsurance businesses. Lifeco operates in Canada, the United States, and Europe under the Canada Life, Empower Retirement, Putnam Investments, and Irish Life brands.
Lifeco has four segments: Canada, the United States, Europe, and Corporate, which reflect geographic lines as well as the management and corporate structure of the companies. In Canada, through the Individual Customer and Group Customer business units, Lifeco offers a broad portfolio of financial and benefit plan solutions for individuals, families, businesses and organizations, including life, disability and critical illness insurance products, as well as wealth savings and income and other speciality products.
In April 2019, Lifeco announced that its three Canadian life insurance companies, The Great-West Life Assurance Company, London Life Insurance Company, and The Canada Life Assurance Company, would be moving to one brand in Canada: Canada Life. Canada Life has become the brand under which the organization creates, delivers, and communicates products and services in Canada across all of its lines of business. In January 2020, Great-West Life, London Life, and Canada Life amalgamated into a single life insurance company: The Canada Life Assurance Company.
The United States segment operates two primary business units, Financial Services and Asset Management. Great-West Life & Annuity Insurance Company (Great-West Life & Annuity) (Empower Retirement), the Financial Services unit, a leading provider of employer-sponsored defined contribution plans, administrative and record-keeping services, individual retirement accounts, fund management, as well as investment and advisory services. The Asset Management unit, Putnam Investments, LLC (Putnam), provides investment management, certain administrative functions, and distribution services, as well as offers a range of investment products, including equity, fixed income, absolute return, and alternative strategies. PanAgora Asset Management, Inc. (PanAgora), a Putnam affiliate, offers a range of investment solutions using quantitative techniques.
In June 2019, Great-West Life & Annuity, a U.S. subsidiary of Lifeco, completed the sale, via indemnity reinsurance, of substantially all of its individual life insurance and annuity business to Protective Life Insurance Company (Protective Life), which now assumes the economics and risks associated with the reinsured business.
The Reinsured Insurance & Annuity Business unit reflects substantially all of the individual life insurance and annuity business sold, through indemnity reinsurance, to Protective Life effective June 1, 2019. These products include life insurance, annuity and executive benefits, which are no longer offered by the U.S. segment.
The European segment comprises two business units, Insurance & Annuities and Reinsurance, which offer protection and wealth management products, including payout annuity products and reinsurance products.
IGM Financial
IGM, a wealth and asset management company, which serves the financial needs of Canadians through its principal subsidiaries, each operating distinctly, primarily within the advice segment of the financial services market. Its activities are carried out through its subsidiaries Investors Group Inc. (IG Wealth Management), Mackenzie Financial Corporation (Mackenzie Investments), and Investment Planning Counsel Inc. (Investment Planning Counsel).
IG Wealth Management offers an exclusive family of mutual funds and other investment vehicles, and a range of insurance, securities, mortgage products, and other financial services. IG Wealth Management offers IG Living Plan, a holistic, client-centric approach to financial planning that reflects the evolving needs, goals, and aspirations of Canadian families and individuals. The IG Living Plan provides a single, integrated view of all aspects of a client’s finances, including retirement and estate planning, investments, and tax strategies, creating a synchronized and comprehensive plan. IG Wealth Management provides its services through its exclusive network of consultants across Canada. It strives to distinguish itself from its competition by offering comprehensive planning to its clients within the context of long-term relationships.
Mackenzie Investments is an investment management firm providing investment advisory and related services through multiple distribution channels: Retail, Strategic Alliances and Institutional. Mackenzie distributes its products and services primarily through a diversified distribution network of third-party financial advisors.
Investment Planning Counsel is an independent distributor of financial products, services, and advice in Canada. IGM previously announced a five-year transformation to modernize its digital platforms and technology infrastructure to enable it to enhance operations, achieve efficiencies, and further improve the service experience for its clients.
Pargesa and Groupe Bruxelles Lambert (GBL)
Power Financial Europe B.V., a wholly owned subsidiary of the company, and the Frère Group each holds a 50% interest in Parjointco N.V. (Parjointco). As of December 31, 2019, Parjointco held a 55.5% interest in Pargesa, representing 75.4% of the voting rights.
Pargesa, a holding company, which, as of December 31, 2019, held a 50% interest in GBL, representing 51.7% of the voting rights.
GBL, a holding company, has portfolio of global industrial and services companies, leaders in their markets, in which GBL plays its role of professional shareholder.
GBL, through its subsidiary, Sienna Capital, is developing a portfolio of private equity, debt, and thematic funds.
During the second quarter of 2019 (year ended December), GBL sold its 0.6% interest in Total through forward sales contracts maturing in January 2020.
In August 2019, GBL announced the signing of an agreement to acquire Webhelp through an investment vehicle controlled by GBL. Webhelp is one of the world’s leading providers of customer experience and business process outsourcing. In November 2019, GBL completed the acquisition of Webhelp.
Portag3 Ventures Limited Partnership (Portag3 Ventures), Wealthsimple Financial Corporation (Wealthsimple), and Koho (KOHO Financial Inc.)
The company, together with IGM and Lifeco (the group), are anchor investors in funds managed by an affiliate, Portag3 Ventures, which operates investment funds dedicated to backing innovative financial services companies that have the potential for change and global impact. To date, Portag3 Ventures has invested in more than 45 fintech companies and investment funds. Portag3 Ventures is managed by Sagard Holdings ULC, a subsidiary of Power Corporation of Canada.
As of December 31, 2019, Portag3, the company and IGM held, through a limited partnership controlled by the company, an undiluted equity interest in Wealthsimple Financial Corporation (Wealthsimple) of 84.9%, representing a voting interest of 85.3% and a fully diluted equity interest of 71.3%. Wealthsimple operates one of the country’s largest and fastest-growing digital investing service.
Segments
The company operates through three segments: Lifeco, IGM Financial, and Pargesa.
Lifeco
This segment is a financial service holding company with interests in life insurance, health insurance, retirement and investment management services, asset management and reinsurance businesses primarily in Canada, the United States, and Europe.
IGM Financial
This segment is a wealth and asset management company operating in Canada primarily within the advice segment of the financial services market. This segment earns revenues from a range of sources, but primarily from management fees, which are charged to its mutual funds for investment advisory and management services. This segment also earns revenues from fees charged to its mutual funds for administrative services.
Pargesa
This segment is held through Parjointco. Pargesa is a holding company with diversified interests in Europe-based companies active in various sectors: minerals-based specialty solutions for industry; testing, inspection, and certification; cement, aggregates and concrete; wines and spirits; design and distribution of sportswear; materials technology and recycling of precious metals; oil, gas and chemical industries; disposable hygiene products; supplier of equipment and project management for a range of processing industries primarily in the food and beverage sectors; operation of regional leisure parks; and provider of customer experience and business process outsourcing.
History
Power Financial Corporation was founded in 1984.
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