MONTREAL - Power Corporation of Canada (Power Corporation or the Corporation) (TSX: POW) today reported earnings results for the three and six months ended June 30, 2021.
Power Corporation
Consolidated results for the period ended June 30, 2021
HIGHLIGHTS
The Corporation reported net earnings per share of $1.47 for the second quarter of 2021, compared with $0.99 in 2020 and record high adjusted net earnings per share [1] of $1.51, compared with $0.79 per share in 2020.
The Corporation's net asset value (NAV) per share [1] increased 12.3% to $51.60 at June 30, 2021, compared with $45.94 at March 31, 2021.
Great-West Lifeco Inc. (Lifeco) announced several key strategic business transactions in the U.S., Canada, and Ireland to add scale and grow its businesses: On July 21, 2021, its U.S. subsidiary, which operates primarily as Empower Retirement, announced a definitive agreement to acquire Prudential Financial, Inc.'s full-service retirement business for a total value of approximately $4.45 billion (US$3.55 billion), solidifying Empower's position as the second largest retirement plan service provider in the United States.
Irish Life Group Limited, a subsidiary of Lifeco, announced on July 13, 2021 that it had entered into an agreement to acquire Ark Life Assurance Company dac from Phoenix Group Holdings plc for EUR230 million, adding significant scale to its retail division and enhancing its ability to provide customers with market-leading wealth and insurance solutions.
The Canada Life Assurance Company, a subsidiary of Lifeco, announced, on July 13, 2021, an agreement to acquire ClaimSecure Inc., an industry-leading health and dental claims management and administration firm to private and public businesses in Canada, extending its presence in a growing segment of the market.
Lifeco's assets under administration were $2.2 trillion at June 30, 2021, an increase of 9.1% from December 31, 2020.
IGM Financial Inc. (IGM) reported net earnings of $237.4 million, or $0.99 per share in the second quarter, the highest in its history, and up 28.6% from the second quarter of 2020.
IGM reported record high assets under management and advisement of $262.0 billion, up 5.4% in the quarter and 39.2% from June 30, 2020, and record high second quarter investment fund net sales of $1.9 billion.
Groupe Bruxelles Lambert's (GBL) NAV was EUR23.1 billion at June 30, 2021, compared with EUR21.1 billion at March 31, 2021, an increase of 9.3%.
Sagard Holdings Inc. (Sagard) launched Portage Fintech Acquisition Corporation (PFAC), a special purpose acquisition company sponsored by an affiliate of Sagard. PFAC successfully completed an initial public offering, raising gross proceeds of US$240 million.
Wealthsimple Financial Corp. (Wealthsimple) completed its previously announced $750 million financing round on May 12, 2021, including a $500 million secondary offering by the Corporation, IGM and Lifeco (Power Group). The Power Group retained an interest of $2.1 billion in Wealthsimple.
The Lion Electric Company (Lion) completed its business combination with Northern Genesis Acquisition Corp. and on May 7, 2021 began trading as 'LEV' on the TSX and the New York Stock Exchange. The Corporation held a 35.7% interest in Lion at June 30, 2021.
NAV, NAV per share and adjusted net earnings per share are non-IFRS financial measures.
Net Asset Value
Net asset value per share represents management's estimate of the fair value of participating shareholders' equity of the Corporation. Net asset value is the fair value of the assets of the combined Power Financial Corporation (Power Financial) and Power Corporation non-consolidated balance sheet less their net debt and preferred shares. Refer to the detailed Net Asset Value section later in this news release for a reconciliation to the non-consolidated combined balance sheet.
COVID-19
The outbreak of the novel strain of coronavirus, specifically identified as 'COVID-19', has resulted in governments worldwide enacting emergency measures to combat the spread of the virus. These measures, which include the implementation of travel bans, imposing restrictions on certain non-essential businesses, self-imposed quarantine periods and social distancing, have caused material disruption to businesses globally resulting in an economic slowdown. Governments and central banks have responded with significant monetary and fiscal interventions designed to stabilize economic conditions. Equity markets in particular have been volatile, experiencing material and rapid declines in the first quarter of 2020; however, the markets have since experienced recoveries.
The duration and full impacts of the COVID-19 pandemic are still unknown at this time. The distribution of vaccines has resulted in the easing of restrictions in many economies; though the COVID-19 pandemic continues to cause material disruption to businesses globally, resulting in continued economic pressures. While the conditions have become more stable, many factors continue to extend economic uncertainty including the rollout and efficacy of vaccines, emergence of new COVID-19 variants and the durability and effectiveness of government and central bank interventions. It is not possible to reliably estimate the length and severity of these developments and the impact on the financial results and condition of the Corporation and its operating subsidiaries in future periods.
Dividend on Power Corporation Participating Shares
The Board of Directors declared a quarterly dividend of 44.75 cents per share on the Corporation's Participating Preferred Shares and the Subordinate Voting Shares, payable November 1, 2021, to shareholders of record September 30, 2021.
Contact:
Tel: 514-286-7400
Email: investor.relations@powercorp.com
About Power Corporation
Power Corporation is an international management and holding company that focuses on financial services in North America, Europe and Asia. Its core holdings are leading insurance, retirement, wealth management and investment businesses, including a portfolio of alternative asset investment platforms.
FORWARD-LOOKING STATEMENTS
Certain statements in this news release, other than statements of historical fact, are forward-looking statements based on certain assumptions and reflect the Corporation's current expectations, or with respect to disclosure regarding the Corporation's public subsidiaries, reflect such subsidiaries' current expectations as disclosed in their respective MD&A. Forward-looking statements are provided for the purposes of assisting the reader in understanding the Corporation's financial performance, financial position and cash flows as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future and the reader is cautioned that such statements may not be appropriate for other purposes. These statements may include, without limitation, statements regarding the operations, business, financial condition, expected financial results, performance, prospects, opportunities, priorities, targets, goals, ongoing objectives, strategies and outlook of the Corporation and its subsidiaries, including the fintech strategy, the expected impact of the COVID-19 pandemic on the Corporation and its subsidiaries' operations, results and dividends, as well as the outlook for North American and international economies for the current fiscal year and subsequent periods, the intended effects of the Reorganization (as defined herein), the Corporation's NCIB (as defined herein), management of standalone businesses to realize value over time, fundraising activities by investment platforms, timing of the proposed GP Strategies transaction (as defined herein), and the Corporation's subsidiaries' disclosed expectations, including the acquisition of the Prudential full-service retirement business (as defined herein), ClaimSecure Inc., Ark Life (as defined herein) and related synergies, impacts, and timing thereof as well as a result of the acquisition of the retirement services business of MassMutual, Personal Capital, Northleaf and related synergies, impacts and timing thereof. Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as 'expects', 'anticipates', 'plans', 'believes', 'estimates', 'seeks', 'intends', 'targets', 'projects', 'forecasts' or negative versions thereof and other similar expressions, or future or conditional verbs such as 'may', 'will', 'should', 'would' and 'could'.
By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. A variety of factors, many of which are beyond the Corporation's and its subsidiaries' control, affect the operations, performance and results of the Corporation and its subsidiaries and their businesses, and could cause actual results to differ materially from current expectations of estimated or anticipated events or results. These factors include, but are not limited to: the impact or unanticipated impact of general economic, political and market factors in North America and internationally, fluctuations in interest rates, inflation and foreign exchange rates, monetary policies, business investment and the health of local and global equity and capital markets, management of market liquidity and funding risks, risks related to investments in private companies and illiquid securities, risks associated with financial instruments, changes in accounting policies and methods used to report financial condition (including uncertainties associated with significant judgments, estimates and assumptions), the effect of applying future accounting changes, business competition, operational and reputational risks, technological changes, cybersecurity risks, changes in government regulation and legislation, changes in tax laws, unexpected judicial or regulatory proceedings, catastrophic events, man-made disasters, terrorist attacks, wars and other conflicts, or an outbreak of a public health pandemic or other public health crises (such as COVID-19), the Corporation's and its subsidiaries' ability to complete strategic transactions, integrate acquisitions and implement other growth strategies, the Corporation's and its subsidiaries' success in anticipating and managing the foregoing factors and with respect to forward-looking statements of the Corporation's subsidiaries disclosed in this news release, the factors identified by such subsidiaries in their respective MD&A.
The reader is cautioned to consider these and other factors, uncertainties, and potential events carefully and not to put undue reliance on forward-looking statements. Information contained in forward-looking statements is based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, as well as other considerations that are believed to be appropriate in the circumstances, including the availability of cash to complete purchases under the NCIB, that the list of factors in the previous paragraph, collectively, are not expected to have a material impact on the Corporation and its subsidiaries and with respect to forward-looking statements of the Corporation's subsidiaries disclosed in this news release, the risks identified by such subsidiaries in their respective MD&A and Annual Information Form most recently filed with the securities regulatory authorities in Canada and available at www.sedar.com. While the Corporation considers these assumptions to be reasonable based on information currently available to management, they may prove to be incorrect.
POWER CORPORATION OF CANADA 
