Power Corporation of Canada
Power Corporation of Canada, an international management and holding company, provides financial services in North America, Europe, and Asia. The company operates through Lifeco, IGM Financial, and GBL segments. It offers life, health and dental, disability, critical illness, and creditor insurance, as well as reinsurance products; retirement and wealth management solutions, including annuities and segregated funds; and pension and investment products to individuals and small business owners. The company is also involved in wealth and asset management for supporting financial advisors; listed and private investments, and alternative assets and third-party asset management; and fintech investments. Power Corporation of Canada was incorporated in 1925 and is based in Montreal, Canada.
What does it do?
Power Corporation of Canada is a massive holding company — think of it like a parent company that owns stakes in several large financial businesses. Its biggest asset is Great-West Lifeco, one of Canada's largest life insurance and retirement savings companies. It also owns IGM Financial, which runs investment brands like IG Wealth Management and Mackenzie Investments that manage money for everyday Canadians. On top of that, it holds a stake in GBL, a European investment firm, giving it exposure to global markets most Canadian companies don't touch.
With over $50 billion in annual revenue, Power Corporation sits at the heart of how millions of North Americans save for retirement and protect their families — two needs that aren't going away. As populations age, especially in Canada and Europe, demand for life insurance, annuities, and wealth management services is structurally growing, making companies like this increasingly relevant. The Desmarais family controls the company, and their long track record of disciplined capital allocation gives institutional investors confidence in how the business is run.
How does it make money?
Power Corporation makes money primarily through its subsidiaries rather than selling products directly. Great-West Lifeco collects insurance premiums and earns investment income on the float — the pool of money held before claims are paid — which is a highly profitable model at scale. IGM Financial charges fees on the roughly $250 billion in assets it manages for clients, meaning revenue grows as markets rise and clients add savings. GBL generates returns through dividends and capital gains from its stakes in major European companies like adidas and SGS.
Why do investors care?
The core investment case is straightforward: aging demographics in Canada, the US, and Europe mean more people need retirement products and life insurance every year, which is a long-term tailwind for all three of Power's major subsidiaries. Revenue grew from $45.3 billion to $50.5 billion in the latest year — an 11% jump — showing the business is genuinely expanding, not just treading water. For investors to win, interest rates need to stay at reasonable levels (higher rates help insurance companies earn more on their investment portfolios) and IGM's assets under management need to keep growing. The Desmarais family's controlling stake means the company is run with a long-term mindset, which can frustrate short-term traders but rewards patient investors.
Deep Dive
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