Power Corporation Derives Most of Its Value From Great-West Lifeco and IGM Financial

Power Corporation of Canada is a holding company that derives the most of its underlying value from its ownership stakes in no-moat Great-West Life and narrow-moat IGM Financial. We estimate that Power Corp.'s stake in two publicly listed companies accounts for approximately 80% of its overall value. The company has stated that rather than diversifying across industries, Power Corp. will focus on the financial services sector. The company simplified its ownership structure and reduced corporate costs after it acquired all the shares of Power Financial in a restructuring effort in 2020.