Great-West Financial, a subsidiary of Great-West Lifeco, a member of the Power family, has completed the acquisition of the J.P. Morgan Retirement Plan Services large-market recordkeeping business. Great-West considers the acquisition a major step toward building one of the premier retirement services firms in the U.S. Great-West Financial is now the second-largest retirement organization provider in the U.S. defined contribution market.
Power Corporation of Canada is a diversified international management and holding company with interests in companies in the financial services, communications and other business sectors in North America, Europe and Asia. The holding company’s principal asset is its controlling interest in Power Financial.
For the six months ended June 30, 2014, Power’s operating earnings attributable to shareholders were $548 million, or $1.19 a share, up 8.1 per cent from $507 million, or $1.10 a share, in the same period of 2013.
Power Financial contributed $648 million to Power’s operating earnings, up 12.9 per cent. Power Financial holds substantial interests in the financial services sector in Canada, the U.S., Europe and Asia, through its controlling interests in Lifeco and IGM Financial.
The company’s other subsidiaries, which include Square Victoria Communications Group, Power Energy and a number of other investments, contributed a loss of $34 million to the company, and compared with a loss of $26 million the year before.
Power has paid a quarterly dividend of $0.29 a share for several years now. That may remain the case these next couple of years.
Otherwise, the outlook is positive for the stock, thanks to growth at Power Financial, particularly IGM Financial and Great-West Lifeco.
Power Corp. is a buy for growth and income.
Money Reporter, MPL Communications Inc.
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