Readers are referred to the sections Non-IFRS Financial Measures and Forward-Looking Statements later in this release. All figures are expressed in Canadian dollars unless otherwise noted. |
Consolidated results for the period ended
HIGHLIGHTS
POWER CORPORATION
- Net earnings from continuing operations [1] for the first quarter of 2024 were
$758 million or$1.17 per share [2], compared with$326 million or$0.49 per share in 2023.
Adjusted net earnings from continuing operations [1][3][4] were$727 million or$1.12 per share, compared with$588 million or$0.88 per share in the first quarter of 2023. - Adjusted net asset value per share [3] was
$53.10 atMarch 31, 2024 , compared with$53.53 atDecember 31, 2023 .
The Corporation's book value per share [5] was$33.04 atMarch 31, 2024 , compared with$32.49 atDecember 31, 2023 . - The Corporation purchased for cancellation 2.5 million subordinate voting shares for a total of
$97 million in the first quarter of 2024. - Contribution to net earnings from continuing operations from the publicly traded operating companies was
$877 million in the first quarter of 2024, compared with$548 million in 2023.
Contribution to adjusted net earnings from continuing operations from the publicly traded operating companies was$869 million in the first quarter of 2024, compared with$711 million in 2023.
- First quarter net earnings from continuing operations were
$1,031 million , compared with$614 million in the first quarter of 2023.
Adjusted net earnings from continuing operations [6] were$1,012 million , compared with$826 million in the first quarter of 2023. - First quarter adjusted net earnings reflect strong contributions to earnings growth from all four Lifeco segments, including the highest quarterly adjusted net earnings to date from Empower [7].
- First quarter net earnings were
$223.4 million , compared with$381.3 million in the first quarter of 2023.
Adjusted net earnings [3] were$224.5 million , compared with$206.3 million in the first quarter of 2023. - Assets under management and advisement including strategic investments [5] were
$422.3 billion atMarch 31, 2024 , compared with$390.2 billion atDecember 31, 2023 and$349.7 billion atMarch 31, 2023 .
GROUPE
- GBL reported a net asset value [5] of €17.0 billion at
March 31, 2024 , compared with €16.7 billion atDecember 31, 2023 . - In the first quarter of 2024, GBL completed a total of €47 million of share buybacks and subsequent to quarter-end cancelled 8.3 million treasury shares.
Sagard completed, in the first quarter, the previously announced strategic investments inPerformance Equity Management, LLC , andHalseyPoint Asset Management, LLC , broadeningSagard's product offering.- Power Sustainable and Lifeco announced, on
May 6, 2024 , they had agreed to enter into a long-term strategic partnership, which includes a minority shareholding in Power Sustainable's subsidiary,Power Sustainable Manager Inc. The strategic partnership will enable Power Sustainable to accelerate its growth and market penetration in sustainable private equity and infrastructure.
[1] | Attributable to participating shareholders. |
[2] | All per share amounts are per participating share of the Corporation. |
[3] | Adjusted net earnings from continuing operations, adjusted net earnings reported by IGM and adjusted net asset value are non-IFRS financial measures. Adjusted net earnings from continuing operations per share and adjusted net asset value per share are non-IFRS ratios. See the Non-IFRS Financial Measures section later in this news release. |
[4] | Effective the first quarter of 2024, the Corporation modified the definition of adjusted net earnings. Refer to the section Non-IFRS Financial Measures later in this news release. The comparative periods have been restated to reflect this change. |
[5] | See the Other Measures section later in this news release. |
[6] | Defined as "base earnings" by Lifeco, a non-IFRS financial measure; see the Non-IFRS Financial Measures section later in this news release. |
[7] | |
First Quarter
Net earnings from continuing operations attributable to participating shareholders were $758 million or
Adjusted net earnings from continuing operations attributable to participating shareholders [1] were
Net earnings attributable to participating shareholders were
Contributions to | |||||
(in millions of dollars, except per share amounts) | Adjusted Net Earnings | Net Earnings | |||
2024 | 2023 | 2024 | 2023 | ||
Lifeco [2] | 689 | 561 | 702 | 417 | |
IGM [2] | 140 | 128 | 139 | 237 | |
GBL | 54 | 19 | 54 | 19 | |
Effect of consolidation [3] | (14) | 3 | (18) | (125) | |
Publicly traded operating companies | 869 | 711 | 877 | 548 | |
(28) | (43) | (5) | (88) | ||
ChinaAMC [5] | − | 2 | − | (52) | |
Other investments and standalone businesses | (9) | 16 | (9) | 16 | |
832 | 686 | 863 | 424 | ||
Corporate operations and Other [6] | (105) | (98) | (105) | (98) | |
727 | 588 | 758 | 326 | ||
Per participating share | 1.12 | 0.88 | 1.17 | 0.49 | |
Average shares outstanding (in millions) | 650.6 | 666.8 | 650.6 | 666.8 |
Publicly traded operating companies: contribution to net earnings from continuing operations was $877 million and to adjusted net earnings from continuing operations was $869 million, representing an increase of 60.0% and 22.2%, respectively, from the first quarter of 2023:
Lifeco: contribution to net and adjusted net earnings increased by 68.3% and 22.8%, respectively. On
IGM: contribution to net earnings decreased by 41.4% and the contribution to adjusted net earnings increased by 9.4%.
GBL: contribution to net earnings of $54 million in the first quarter of 2024.
Adjustments in the first quarter of 2024, excluded from adjusted net earnings from continuing operations, were a positive net impact to earnings of $31 million or
[1] | A non-IFRS financial measure; see the Non-IFRS Financial Measures section later in this news release. |
[2] | Contribution based on earnings reported by Lifeco and IGM. |
[3] | Refer to the detailed table in the Contribution to Net Earnings and Adjusted Net Earnings section of the Corporation's most recent Management's Discussion and Analysis (MD&A) for additional information. |
[4] | Consists of earnings (losses) from the alternative asset investment platforms, including controlled and consolidated subsidiaries. |
[5] | |
[6] | Includes operating and other expenses, dividends on non-participating shares of the Corporation and |
[7] | |
Results for the quarter ended
The information below is derived from Lifeco and IGM's first quarter MD&As, as prepared and disclosed by the respective companies in accordance with applicable securities legislation, and which are also available either directly from SEDAR+ (www.sedarplus.ca) or from their websites, www.greatwestlifeco.com and www.igmfinancial.com. The information below related to GBL is derived from publicly disclosed information, as issued by GBL in its first quarter press release at |
First Quarter
Net earnings from continuing operations attributable to common shareholders were
Adjusted net earnings from continuing operations [1] attributable to common shareholders were
Net earnings attributable to common shareholders were $960 million or
Adjustments in the first quarter of 2024, excluded from adjusted net earnings, were a net positive impact of $19 million, compared with a net negative impact of $212 million in 2023. Lifeco's adjustments consisted of:
- Market experience relative to expectations of positive
$107 million .
Partially offset by: - Assumption changes and management actions of negative
$1 million ; - A negative earnings impact from business transformation impacts of
$49 million ; and - Amortization of acquisition-related finite life intangible assets of
$38 million .
First Quarter
Net earnings available to common shareholders were
Adjusted net earnings attributable to common shareholders were
Assets under management and advisement (AUM&A) [2][3] at
GROUPE BRUXELLES LAMBERT
First Quarter
GBL reported net earnings of €194 million, compared with net earnings of €77 million in 2023.
GBL reported a net asset value [2] of €16,998 million at
[1] | Defined as "base earnings" by Lifeco. For additional information, refer to the Non-IFRS Financial Measures section later in this news release. |
[2] | See the Other Measures section later in this news release. |
[3] | Comparative information presented excludes AUM&A of |
Results for the quarter ended
First Quarter
Net loss of the alternative asset investment platforms was $5 million, compared with a net loss of $88 million in 2023. The adjusted net loss of the alternative asset investment platforms was $28 million, compared with an adjusted net loss of
The adjusted net loss is comprised of:
- A positive contribution of
$5 million fromSagard comprised of a negative contribution of$1 million from asset management activities and a positive contribution of$6 million from investing activities; - A negative contribution of
$33 million from Power Sustainable comprised of a negative contribution of$14 million from asset management activities and a negative contribution of$19 million from investing activities. Adjustments in the first quarter of 2024, excluded from adjusted net earnings, were a net positive impact of$23 million , compared with a net negative impact of$45 million in 2023. Power Sustainable adjustments consisted of:
i. A recovery of
Partially offset by:
ii. Restructuring charges of
iii. Fair value increases within the
Summary of assets under management [2] (including unfunded commitments):
(in billions of dollars) | ||
32.6 | 18.0 | |
Power Sustainable | 3.8 | 3.5 |
Total | 36.4 | 21.5 |
Percentage of third-party and associated companies | 92 % | 87 % |
[1] | The Corporation controls and consolidates the activities of PSEIP on a historical cost basis; however, limited partner equity interests held by third parties have redemption features and are classified as a financial liability which are remeasured at their redemption value. The net asset value [2] of PSEIP was |
[2] | See the Other Measures section later in this news release. |
[3] | Includes ownership in |
Results for the quarter ended
Other investments and standalone businesses includes the Corporation's investments in investment funds and the share of earnings (losses) of standalone businesses. |
First Quarter
The net loss of the other investments and standalone businesses was $9 million, compared with net earnings of $16 million in 2023.
STANDALONE BUSINESSES |
The net loss of the standalone businesses was $32 million, compared with a net loss of $5 million in 2023. The net loss in the first quarter of 2024 includes a non-cash impairment charge of
At
At
Adjusted Net Asset Value
Adjusted net asset value is presented for |
The Corporation's adjusted net asset value per share was
(in millions of dollars, except per share amounts) | Variation % | |||
Publicly | Lifeco | 27,528 | 27,871 | (1) |
IGM | 5,167 | 5,179 | − | |
GBL | 2,260 | 2,295 | (2) | |
34,955 | 35,345 | (1) | ||
Alternative | 1,427 | 1,327 | 8 | |
Power Sustainable [1][2] | 1,033 | 1,499 | (31) | |
2,460 | 2,826 | (13) | ||
Other | Standalone businesses [3] | 795 | 800 | (1) |
Other assets and investments [2] | 404 | 391 | 3 | |
Cash and cash equivalents [2] | 1,577 | 1,218 | 29 | |
2,776 | 2,409 | 15 | ||
Gross asset value | 40,191 | 40,580 | (1) | |
Liabilities and preferred shares | (5,678) | (5,663) | − | |
Adjusted net asset value | 34,513 | 34,917 | (1) | |
Shares outstanding (in millions) | 650.0 | 652.2 | ||
Adjusted net asset value per share | 53.10 | 53.53 | (1) |
[1] | Includes the management companies as well as the fair value of proprietary capital invested in assets managed within the platforms. The management company of |
[2] | At |
[3] | Includes Lion, LMPG Inc. (LMPG) and |
Shares held [1] | Share price | |||
Ownership [1] | December 31, 2023 | |||
Lifeco | 68.1 | 635.5 | ||
IGM | 62.2 | 147.9 | ||
GBL [2] | 15.5 | 22.8 | €70.06 | €71.22 |
[1] | At |
[2] | Held through |
Participating Shareholders' Equity
Book value per participating share represents |
The Corporation's book value per participating share was
(in millions of dollars, except per share amounts) | Variation % | |||
Publicly | Lifeco | 15,624 | 15,326 | 2 |
IGM | 3,784 | 3,702 | 2 | |
GBL | 3,780 | 3,717 | 2 | |
23,188 | 22,745 | 2 | ||
Alternative | Sagard | 839 | 829 | 1 |
Power Sustainable [1] | 531 | 1,032 | (49) | |
1,370 | 1,861 | (26) | ||
Other | Standalone businesses [2] | 613 | 641 | (4) |
Other assets and investments [1] | 404 | 391 | 3 | |
Cash and cash equivalents [1] | 1,577 | 1,218 | 29 | |
2,594 | 2,250 | 15 | ||
Total assets | 27,152 | 26,856 | 1 | |
Liabilities and preferred shares | (5,678) | (5,663) | − | |
Participating shareholders' equity | 21,474 | 21,193 | 1 | |
Shares outstanding (in millions) | 650.0 | 652.2 | ||
Book value per participating share | 33.04 | 32.49 | 2 |
[1] | At |
[2] | Includes Lion, LMPG and Peak. |
Dividend on Power Corporation Participating Shares
The Board of Directors declared a quarterly dividend of 56.25 cents per share on the Participating Preferred Shares and the Subordinate Voting Shares of the Corporation, payable
Dividends on Power Corporation Non-Participating Preferred Shares
The Board of Directors also declared quarterly dividends on the Corporation's preferred shares, payable
Series | Stock Symbol | Amount | Series | Stock Symbol | Amount | |
Series A | POW.PR.A | 35¢ | Series D | POW.PR.D | 31.25¢ | |
Series B | POW.PR.B | 33.4375¢ | Series G | POW.PR.G | 35¢ | |
Series C | POW.PR.C | 36.25¢ |
Investor information
Access to Quarterly Results Materials: | Quarterly Earnings Conference Call: | |
The first quarter earnings | The live audio webcast and presentation materials will be available at: www.powercorporation.com/en/investors/events-presentations/. To listen via telephone, please dial 1-844-763-8274 toll-free in A replay of the conference call will be available from A webcast archive will also be available on | |
Investor Relations Contact: | ||
514-286-7400 investor.relations@powercorp.com | ||
At
100% – Power Financial | www.powerfinancial.com | ||
68.1 % | www.greatwestlifeco.com | ||
62.2 % | www.igmfinancial.com | ||
15.5 % | GBL [1] (Euronext: GBLB) | www.gbl.com | |
56.6 % | Wealthsimple [2] | www.wealthsimple.com | |
Investment Platforms | |||
www.sagard.com | |||
Power Sustainable [4] | www.powersustainable.com |
___________________________________________________________ | |
[1] | Held through |
[2] | Undiluted equity interest held by |
[3] | The Corporation holds a 53.5% interest in |
[4] | On |
Contribution to Adjusted Net Earnings and Net Earnings | |||||
Three months ended | |||||
(in millions of dollars, except per share amounts) | 2024 | 2023 | |||
Adjusted net earnings from continuing operations [1] | |||||
Lifeco [2][3] | 689 | 561 | |||
IGM [2] | 140 | 128 | |||
GBL | 54 | 19 | |||
Effect of consolidation [4] | (14) | 3 | |||
869 | 711 | ||||
(28) | (43) | ||||
ChinaAMC [5] | − | 2 | |||
Other investments and standalone businesses | (9) | 16 | |||
Corporate operating and other expenses | (57) | (51) | |||
Dividends on non-participating and perpetual preferred shares | (48) | (47) | |||
Adjusted net earnings from continuing operations [6] | 727 | 588 | |||
Adjustments [7] | 31 | (262) | |||
Net earnings from continuing operations | |||||
Lifeco [2][3] | 702 | 417 | |||
IGM [2] | 139 | 237 | |||
GBL | 54 | 19 | |||
Effect of consolidation [4] | (18) | (125) | |||
877 | 548 | ||||
(5) | (88) | ||||
ChinaAMC [5] | − | (52) | |||
Other investments and standalone businesses | (9) | 16 | |||
Corporate operating and other expenses | (57) | (51) | |||
Dividends on non-participating and perpetual preferred shares | (48) | (47) | |||
Net earnings from continuing operations [6] | 758 | 326 | |||
Net earnings (loss) from discontinued operations – | (49) | (13) | |||
Net earnings [6] | 709 | 313 | |||
Earnings per share – basic [6] | |||||
Adjusted net earnings from continuing operations | 1.12 | 0.88 | |||
Adjustments | 0.05 | (0.39) | |||
Net earnings from continuing operations | 1.17 | 0.49 | |||
Net earnings (loss) from discontinued operations – | (0.08) | (0.02) | |||
Net earnings | 1.09 | 0.47 |
[1] | Effective the first quarter of 2024, the Corporation modified the definition of adjusted net earnings. Refer to the section Non-IFRS Financial Measures later in this news release. The comparative periods have been restated to reflect this change. For a reconciliation of Lifeco, IGM, and |
[2] | Contribution based on earnings reported by Lifeco and IGM. |
[3] | Comparative results have been restated to exclude net earnings (losses) from discontinued operations related to |
[4] | Refer to the detailed table in the Contribution to Net Earnings and Adjusted Net Earnings section of the Corporation's most recent MD&A for additional information. |
[5] | On |
[6] | Attributable to participating shareholders. |
[7] | Refer to the detailed table of Adjustments in the Non-IFRS Financial Measures section below. |
Three months ended | |||||
(in millions of dollars) | 2024 | 2023 | |||
Adjusted net earnings (loss) | |||||
Asset management activities [1] | |||||
Sagard | (1) | (10) | |||
Power Sustainable | (14) | (12) | |||
Investing activities (proprietary capital) | |||||
Sagard [2] | 6 | (1) | |||
Power Sustainable | |||||
China public equity | (2) | (2) | |||
Energy Infrastructure [3] | (17) | (18) | |||
Adjusted net earnings (loss) | (28) | (43) | |||
Adjustments [4] | 23 | (45) | |||
Net earnings (loss) | (5) | (88) |
[1] | Includes management fees charged by the investment platforms on proprietary capital. Management fees paid by the Corporation are deducted from income from investing activities. |
[2] | Includes the Corporation's share of earnings (losses) of Wealthsimple. The net increase in fair value of the Corporation's investments, including its investments held through Power Financial in Portage Ventures I, |
[3] | Consists of the Corporation's share of earnings (losses) from direct investments in energy infrastructure and in the consolidated activities of PSEIP. |
[4] | Refer to the detailed table of Adjustments in the Non-IFRS Financial Measures section below. |
Three months ended | |||||
(in millions of dollars) | 2024 | 2023 | |||
Net earnings | |||||
Investment funds and Other [1] | 23 | 21 | |||
Standalone businesses [2] | (32) | (5) | |||
Net earnings (loss) | (9) | 16 |
[1] | Other includes foreign exchange gains or losses and interest on cash and cash equivalents. |
[2] | Includes the Corporation's share of earnings (losses) of Lion, LMPG, and Peak. The first quarter of 2024 includes a non-cash impairment charge of |
BASIS OF PRESENTATION
The condensed consolidated interim financial statements of the Corporation have been prepared in accordance with International Financial Reporting Standards (IFRS) unless otherwise noted and are the basis for the figures presented in this news release, unless otherwise noted.
NON-IFRS FINANCIAL MEASURES
Net earnings from continuing operations attributable to participating shareholders are comprised of:
- Adjusted net earnings from continuing operations (adjusted net earnings) attributable to participating shareholders; and
- Adjustments, which include the after-tax impact of any item that in management's judgment, including those identified by management of its publicly traded operating companies, would make the period-over-period comparison of results from operations less meaningful. Includes the Corporation's share of Lifeco's impact of market-related impacts, where actual market returns in the current period are different than longer-term expected returns, assumption changes and management actions that impact the measurement of assets and liabilities, realized gains (losses) on the sale of assets measured at FVOCI, direct equity and interest rate impacts on the measurement of surplus assets and liabilities, and amortization of acquisition-related finite life intangible assets, as well as items that management believes are not indicative of the underlying business results which include those identified by a subsidiary or a jointly controlled corporation. Items that management and management of its subsidiaries believe are not indicative of the underlying business results include business transformation impacts (including restructuring or reorganization and integration costs, acquisition and divestiture costs), material legal settlements, material impairment charges, impacts of income tax rate changes on the remeasurement of deferred tax assets and liabilities and other tax impairments, certain non-recurring material items, net gains, losses or costs related to the disposition or acquisition of a business, and other items that, when removed, assist in explaining underlying operating performance.
Adjusted net earnings from continuing operations (or adjusted net earnings) represents net earnings from continuing operations excluding Adjustments. Effective the first quarter of 2024, the Corporation modified the definition of adjusted net earnings to better reflect the underlying operating performance of the Corporation. The definition of Adjustments, used to calculate adjusted net earnings, was modified to include the impact of the revaluation of non-controlling interests liabilities related to PSEIP which result from changes in fair value of assets held within the fund, and the share of earnings (losses) from the consolidated activities of PSEIP attributable to third-party investors. The comparative periods have been restated to reflect this change.
Management uses these financial measures in its presentation and analysis of the financial performance of
Fee-related earnings is presented for
Adjusted net asset value is commonly used by holding companies to assess their value. Adjusted net asset value represents the fair value of the participating shareholders' equity of
Adjusted net earnings attributable to participating shareholders, fee-related earnings, adjusted net asset value, gross asset value, adjusted net earnings from continuing operations per share (adjusted net earnings per share) and adjusted net asset value per share are non-IFRS financial measures and ratios that do not have a standard meaning and may not be comparable to similar measures used by other entities.
Presentation of Holding Company Activities
The Corporation's reportable segments include Lifeco, IGM and GBL, which represent the Corporation's investments in publicly traded operating companies, as well as the holding company. These reportable segments, in addition to the asset management activities, reflect
The holding company comprises the corporate activities of the Corporation and Power Financial, on a combined basis, and presents the investment activities of the Corporation. The investment activities of the holding company, including the investments in Lifeco, IGM and controlled entities within the alternative asset investment platforms, are presented using the equity method. The holding company activities present the holding company's assets and liabilities, including cash, investments, debentures and non-participating shares. The discussions included in the sections Financial Position and Cash Flows of the Corporation's most recent MD&A present the segmented balance sheets and cash flow statements of the holding company, which are presented in Note 20 of the Interim Consolidated Financial Statements. This presentation is useful to the reader as it presents the holding company's (parent) results separately from the results of its consolidated operating subsidiaries.
RECONCILIATIONS OF NON-IFRS FINANCIAL MEASURES
Adjusted net earnings from continuing operations
Three months ended | |||||
(in millions of dollars) | 2024 | 2023 | |||
Adjusted net earnings from continuing operations – Non-IFRS financial measure [1] | 727 | 588 | |||
Share of Adjustments [2], net of tax | |||||
Lifeco | 8 | (161) | |||
IGM | − | (2) | |||
Power Sustainable | 23 | (45) | |||
ChinaAMC | − | (54) | |||
31 | (262) | ||||
Net earnings from continuing operations – IFRS financial measure [1] | 758 | 326 | |||
Net earnings (loss) from discontinued operations – | (49) | (13) | |||
Net earnings – IFRS financial measure [1] | 709 | 313 |
[1] | Attributable to participating shareholders of |
[2] | Refer to the Adjustments section for more detail on Adjustments from Lifeco, IGM, Power Sustainable, and ChinaAMC. |
Adjustments (excluded from Adjusted net earnings)
Three months ended | |||||
(in millions of dollars) | 2024 | 2023 | |||
Lifeco [1] | |||||
Market experience relative to expectations (pre-tax) | 93 | (142) | |||
Income tax (expense) benefit | (20) | 28 | |||
Assumption changes and management actions (pre-tax) | 2 | 6 | |||
Income tax (expense) benefit | (3) | (1) | |||
Business transformation impacts (pre-tax) [2] | (45) | (18) | |||
Income tax (expense) benefit | 12 | 5 | |||
Amortization of acquisition-related finite life intangible assets (pre-tax) | (34) | (29) | |||
Income tax (expense) benefit | 8 | 7 | |||
13 | (144) | ||||
Effect of consolidation (pre-tax) [3][4] | (5) | (17) | |||
Income tax (expense) benefit | − | − | |||
8 | (161) | ||||
IGM [1] | |||||
Gain on disposal of Lifeco shares (pre-tax) | − | 112 | |||
Income tax (expense) benefit | − | (3) | |||
Share of Lifeco's adjustments (pre-tax) | (1) | − | |||
Income tax (expense) benefit | − | − | |||
(1) | 109 | ||||
Effect of consolidation (pre-tax) [3] | 1 | (121) | |||
Income tax (expense) benefit | − | 10 | |||
− | (2) | ||||
Power Sustainable | |||||
Reclassification to earnings of foreign currency gains on Power Sustainable China (pre-tax) | 54 | − | |||
Income tax (expense) benefit | − | − | |||
Revaluation of non-controlling interests liabilities (pre-tax) [4] | (19) | (45) | |||
Income tax (expense) benefit | − | − | |||
Restructuring charges (pre-tax) | (12) | − | |||
Income tax (expense) benefit | − | − | |||
23 | (45) | ||||
ChinaAMC | |||||
Transaction costs on disposal of ChinaAMC (pre-tax) | − | (14) | |||
Income tax (expense) benefit | − | − | |||
Income taxes on disposal of ChinaAMC | − | (40) | |||
− | (54) | ||||
31 | (262) |
[1] | As reported by Lifeco and IGM. |
[2] | Business transformation impacts include restructuring and integration costs as well as acquisition and divestiture costs. |
[3] | The Effect of consolidation reflects: i) the elimination of intercompany transactions, including the gain recognized by IGM on the sale of a portion of its interest in Lifeco to the Corporation; ii) the application of the Corporation's accounting method for investments under common control to the Adjustments reported by Lifeco and IGM; and iii) IGM's share of Lifeco's Adjustments, in accordance with the Corporation's definition of Adjusted net earnings. |
[4] | Effective the first quarter of 2024, the Corporation modified the definition of adjusted net earnings. The comparative periods have been restated to reflect this change. |
Adjusted net asset value
Adjusted net asset value represents management's estimate of the fair value of the participating shareholders' equity of the Corporation. Adjusted net asset value is calculated as the fair value of the assets of the combined |
The following table presents a reconciliation of the participating shareholders' equity reported in accordance with IFRS to the adjusted net asset value, a non-IFRS financial measure:
(in millions of dollars, except per share amounts) | |||
Participating shareholders' equity – IFRS financial measure | |||
Share capital – participating shares | 9,254 | 9,284 | |
Retained earnings | 10,300 | 10,005 | |
Reserves | 1,920 | 1,904 | |
21,474 | 21,193 | ||
Fair value adjustments [1] | |||
Lifeco | 11,904 | 12,545 | |
IGM | 1,383 | 1,477 | |
GBL | (1,520) | (1,422) | |
Alternative asset investment platforms | 1,090 | 965 | |
Other investments and standalone businesses | 182 | 159 | |
13,039 | 13,724 | ||
Adjusted net asset value – Non-IFRS financial measure | 34,513 | 34,917 | |
Per share[2] | |||
Participating shareholders' equity (book value) | 33.04 | 32.49 | |
Adjusted net asset value | 53.10 | 53.53 |
[1] | Refer to the table below for more details on the fair value. |
[2] | Attributable to participating shareholders. |
The Corporation's adjusted net asset value per share was
(in millions of dollars, except per share amounts) | Holding | Fair value | Adjusted net | Holding | Fair value | Adjusted net | ||
Holding company assets | ||||||||
Investments | ||||||||
Power Financial | ||||||||
Lifeco | 15,624 | 11,904 | 27,528 | 15,326 | 12,545 | 27,871 | ||
IGM | 3,784 | 1,383 | 5,167 | 3,702 | 1,477 | 5,179 | ||
GBL [1] | 3,780 | (1,520) | 2,260 | 3,717 | (1,422) | 2,295 | ||
Alternative asset investment platforms | ||||||||
Asset management companies [2] | ||||||||
Sagard | 107 | 174 | 281 | 108 | 157 | 265 | ||
Power Sustainable | 9 | − | 9 | − | − | − | ||
Investing activities | ||||||||
Sagard [3][4] | 732 | 414 | 1,146 | 721 | 341 | 1,062 | ||
Power Sustainable [5] | 522 | 502 | 1,024 | 1,032 | 467 | 1,499 | ||
Other investments and standalone | ||||||||
Other investments [5] | 136 | − | 136 | 107 | − | 107 | ||
Standalone businesses [6] | 613 | 182 | 795 | 641 | 159 | 800 | ||
Cash and cash equivalents [5] | 1,577 | − | 1,577 | 1,218 | − | 1,218 | ||
Other assets | 268 | − | 268 | 284 | − | 284 | ||
Total holding company assets | 27,152 | 13,039 | 40,191 | 26,856 | 13,724 | 40,580 | ||
Holding company liabilities and | ||||||||
Debentures and other debt instruments | 897 | − | 897 | 897 | − | 897 | ||
Other liabilities [7] | 1,001 | − | 1,001 | 986 | − | 986 | ||
Non-participating shares and perpetual | 3,780 | − | 3,780 | 3,780 | − | 3,780 | ||
Total holding company liabilities and | 5,678 | − | 5,678 | 5,663 | − | 5,663 | ||
Net value | ||||||||
Participating shareholders' equity (IFRS) / | 21,474 | 13,039 | 34,513 | 21,193 | 13,724 | 34,917 | ||
Per share | 33.04 | 53.10 | 32.49 | 53.53 |
[1] | The Corporation's share of GBL's reported net asset value was |
[2] | The management company of |
[3] | Includes the Corporation's investments in Portage Ventures I, Portage Ventures II and Wealthsimple, held by Power Financial. |
[4] | Includes |
[5] | At |
[6] | An additional deferred tax liability of |
[7] | In accordance with IAS 12, Income Taxes, no deferred tax liability is recognized with respect to temporary differences associated with investments in subsidiaries and jointly controlled corporations as the Corporation is able to control the timing of the reversal of the temporary differences and it is probable that the temporary differences will not reverse in the foreseeable future. If the Corporation were to dispose of an investment in a subsidiary or a jointly controlled corporation, income taxes payable on such disposition would be minimized through careful and prudent tax planning and structuring, as well as with the use of available tax attributes not otherwise recognized on the balance sheet, including tax losses, tax basis, safe income and foreign tax surplus associated with the subsidiary or jointly controlled corporation. |
This news release also contains other non-IFRS financial measures which are publicly disclosed by the Corporation's subsidiaries including adjusted net earnings and adjusted net earnings per share. The section below includes the description and reconciliation of the non-IFRS financial measures included in this news release as reported by the Corporation's subsidiaries. The information below is derived from Lifeco's and IGM's first quarter MD&As, as prepared and disclosed by the respective companies in accordance with applicable securities legislation, and which are also available either directly from
SEDAR+ (www.sedarplus.ca) or from their websites, www.greatwestlifeco.com and www.igmfinancial.com.
Adjusted net earnings (loss) from continuing operations attributable to Lifeco's common shareholders
Adjusted net earnings (loss) from continuing operations [1] (adjusted net earnings (loss)) reflects Lifeco management's view of the underlying business performance of Lifeco and provides an alternate measure to understand the underlying business performance compared with IFRS net earnings. Adjusted net earnings (loss) excludes the following items from IFRS-reported net earnings:
- Market-related impacts, where actual market returns in the current period are different than longer-term expected returns;
- Assumption changes and management actions that impact the measurement of assets and liabilities;
- Business transformation impacts which include acquisition and divestiture costs and restructuring and integration costs;
- Material legal settlements, material impairment charges related to goodwill and intangible assets, impacts of income tax rate changes on the remeasurement of deferred tax assets and liabilities and other tax impairments, net gains, losses or costs related to the disposition or acquisition of a business, and net earnings (loss) from discontinued operations;
- Realized gains (losses) on the sale of assets measured at fair value through other comprehensive income;
- The direct equity and interest rate impacts on the measurement of surplus assets and liabilities;
- Amortization of acquisition-related finite life intangible assets; and
- Other items that, when removed, assist in explaining Lifeco's underlying business performance.
Three months ended | |||||
(in millions of dollars) | 2024 | 2023 | |||
Adjusted net earnings – Non-IFRS financial measure [1][2] | 1,012 | 826 | |||
Adjustments | |||||
Market experience relative to expectations (pre-tax) | 136 | (209) | |||
Income tax (expense) benefit | (29) | 41 | |||
Assumption changes and management actions (pre-tax) | 3 | 9 | |||
Income tax (expense) benefit | (4) | (2) | |||
Business transformation impacts (pre-tax) [3] | (67) | (26) | |||
Income tax (expense) benefit | 18 | 7 | |||
Amortization of acquisition-related finite life intangible assets (pre-tax) | (50) | (43) | |||
Income tax (expense) benefit | 12 | 11 | |||
19 | (212) | ||||
Net earnings from continuing operations – IFRS financial measure [2] | 1,031 | 614 | |||
Net earnings (loss) from discontinued operations (post-tax) [4] | (115) | (19) | |||
Net gain from disposal of discontinued operations (post-tax) | 44 | − | |||
Net earnings [2] | 960 | 595 |
[1] | Defined as "base earnings" and identified as a non-GAAP financial measure by Lifeco. |
[2] | Attributable to Lifeco common shareholders. |
[3] | Business transformation impacts include restructuring and integration costs as well as acquisition and divestiture costs. |
[4] | Comparative results are restated to reclassify divestiture costs related to the sale of |
Adjusted net earnings attributable to IGM's common shareholders
Adjusted net earnings attributable to common shareholders excludes Adjustments [1], which includes the after‐tax impact of any item that management of IGM considers to be of a non‐recurring nature, or that could make the period‐over‐period comparison of results from operations less meaningful.
Effective in the first quarter of 2024, adjusted net earnings also exclude IGM's proportionate share of items that Lifeco excludes from its IFRS-reported net earnings in arriving at Lifeco's base earnings. Comparative periods have been restated to reflect this change.
Three months ended | |||||
(in millions of dollars) | 2024 | 2023 | |||
Adjusted net earnings – Non-IFRS financial measure [2] | 224.5 | 206.3 | |||
Adjustments [1] | |||||
Gain on sale of Lifeco shares (pre-tax) | − | 179.1 | |||
Income tax (expense) benefit | − | (4.3) | |||
Lifeco other items | (1.1) | 0.2 | |||
(1.1) | 175.0 | ||||
Net earnings – IFRS financial measure [2] | 223.4 | 381.3 |
[1] | Described as "Other items" by IGM. |
[2] | Available to IGM common shareholders. |
OTHER MEASURES
This news release and other continuous disclosure documents also include other measures used to discuss activities of the Corporation, its consolidated publicly traded operating companies and alternative asset investment platforms including, but not limited to, "assets under management", "assets under administration", "assets under management and advisement", "assets under management and advisement including strategic investments", "book value per participating share", "net carried interest", "net asset value", and "unfunded commitments". Refer to the section "Other Measures" in the Corporation's most recent MD&A, which can be located in the Corporation's profile on SEDAR+ at www.sedarplus.ca, for definitions of such measures, which definitions are incorporated herein by reference.
ELIGIBLE DIVIDENDS
For purposes of the Income Tax Act (
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' disclosed current expectations. 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, and the impact of the strategic partnership transaction in
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
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 that the list of risks and uncertainties 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
Other than as specifically required by applicable Canadian law, the Corporation undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.
Additional information about the risks and uncertainties of the Corporation's business and material factors or assumptions on which information contained in forward-looking statements is based is provided in its disclosure materials, including its most recent MD&A and Annual Information Form, filed with the securities regulatory authorities in
SOURCE
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