Power Corporation’s progress continued in 2025. The focus across the Power group of companies on the success and well-being of our clients, the development of our people and the efficiency of our businesses, along with strong financial markets, produced very attractive financial results for our shareholders in 2025.
The year 2025 also marked Power’s 100th anniversary, an occasion to reflect and acknowledge the contributions of many. In the context of this significant milestone, Power also took the opportunity to thank the thousands of community organizations and social entrepreneurs with which we partner, each devoted to improving lives in the communities where we operate. Their work reflects our long‑held belief in being a responsible corporate citizen.
In an increasingly complex economic and political environment, Power has been steadfast in following the investment principles that have guided its success for many decades: a long-term perspective, leading franchises with attractive growth profiles, robust governance oversight and a strong financial position and prudent approach to risk.
For the past several years, these principles have been embedded in our value creation strategy, which has included three levers:
1.
Organic growth at our publicly traded operating companies — where Great‑West Lifeco and IGM Financial continue to show strong business momentum and GBL is executing a clearly defined strategy;
2.
Adding to that growth through M&A and strategic investments; and
3.
Creating additional returns at the Power Corporation level — through disciplined capital allocation, dividends and share buybacks, and continued work to simplify the group.
Successfully managing leadership succession is a critical task for any organization. The past year has seen each of Power Corporation and its three publicly traded operating companies announce the appointment of new chief executive officers, reflecting our commitment to thoughtful succession planning and the depth of our leadership talent.
Continued strong financial performance in 2025
Strong earnings growth at Great-West and at IGM resulted in a 16% increase in Power’s adjusted net earnings per share from continuing operations in 2025 to $5.31, compared to $4.58 in 2024. Net earnings per share from continuing operations were $4.01 in 2025, compared to $4.31 in 2024.
A year of strong performance and shareholder value creation
Power’s adjusted net asset value per share increased by 42% during the year to $85.77 at December 31, 2025. Appreciation in the value of the ownership stakes Power has in Great‑West and IGM was the primary driver of the increase.
In March of 2025, Power announced a 9% increase in the quarterly dividend paid per participating share. This, together with over $700 million in share buybacks completed during the year, allowed Power to return $2.3 billion in capital to its shareholders in 2025.
Power also strengthened its capital structure and liquidity position during the year, including through the issuance of two series of preferred shares for a total of $400 million. Great‑West, IGM and GBL each announced dividend increases in early 2026. In March of 2026, Power announced a further 9% increase in its quarterly dividend, to 66.75 cents per participating share.
Great-West Lifeco: Strong performance and strategic momentum
Great-West delivered strong financial results in 2025, building on the significant repositioning of its business in recent years. In 2021, Great-West announced medium-term financial objectives including growth in base earnings per share of 8% to 10%, base return on equity of 16 to 17%, and a dividend payout ratio of 45% to 55% of base earnings. The company has since met or exceeded all those objectives and in 2025 it updated its objectives, increasing its base return on equity objective to 19% and adding a new objective for base capital generation.
Growth was broad-based across the business, with particular strength in Retirement and Wealth. U.S.‑based Empower continued to drive double‑digit earnings growth and now serves 20 million individuals with US$2 trillion of client assets[1] on its platform. Empower’s fast-growing wealth platform experienced very strong net asset inflows during 2025 and finished the year with over US$100 billion in client assets[1].
Canada Life continued to strengthen its wealth offering to Canadians and is focused on enhancing it further by integrating its different wealth platforms. Great‑West’s European business enjoyed solid growth driven by strong asset inflows from individual customers. Great‑West’s Capital and Risk Solutions segment continued its focus on generating attractive risk-adjusted returns while ceasing to write new mortality risk reinsurance in the U.S.
Operational discipline remained a priority across the enterprise. Great‑West realized $1 billion of capital benefits from its ongoing efforts to streamline and optimize operations, and accelerated artificial intelligence (AI) adoption across the business. Strong cash generation resulted in over $2 billion of cash and cash equivalents[2] at the holding company level at year-end, virtually unchanged year over year, while supporting $1.6 billion in share buybacks. Great-West announced a 10% dividend increase in early 2026.
The year 2025 also marked an important leadership transition for Great‑West. Paul Mahon retired as President and CEO after 39 years of outstanding service, including the past 12 years in that role, during which he led the company to record performance. Paul is a principled leader whose clarity, compassion and long-term vision strengthened the company and positioned it for sustained success. Paul was succeeded by David Harney, who has more than 35 years of experience across the Great-West group, having been CEO of Irish Life prior to becoming President and COO, Europe, and additionally taking on oversight of Great-West’s Reinsurance business. David brings extensive experience and a strong track record of execution to his new role.
With a proven strategy, strong capital position and an experienced leadership team at the helm, Great‑West enters 2026 well positioned for continued growth.
- Client assets is identified as a non-GAAP financial measure by Great-West Lifeco. Additional information regarding this measure, including a reconciliation, is incorporated by reference from and can be found under “Non‑GAAP Financial Measures and Ratios” in Great‑West Lifeco’s annual MD&A for the year ended December 31, 2025, included in the Corporation’s annual MD&A for the year ended December 31, 2025 and available on SEDAR+ at www.sedarplus.ca.
- Cash and cash equivalents at the Great‑West holding company level.
IGM Financial: Business momentum and value creation from strategic investments
IGM delivered strong results in 2025, supported by continued investment in its wealth and asset management businesses. IGM’s results are ahead of the medium-term objective of 9%+ growth in adjusted net earnings per share set in 2023. The company ended the year with record assets under management and advisement[1], up 15% from 2024. In early 2026, IGM announced a 10% increase in its quarterly dividend, reflecting the strength of its business and strong financial results.
IGM has two operating segments: Wealth Management, anchored by IG Wealth Management and strategic investments in Rockefeller and Wealthsimple; and Asset Management, anchored by Mackenzie Investments and strategic investments in Northleaf and ChinaAMC.
Wealth Management delivered a strong year, supported by continued emphasis on comprehensive financial planning and an improved client experience. IG Wealth Management reported record client assets under advisement and strong client inflows.
Asset Management also delivered strong results, supported by sustained investment in core capabilities and continued focus on product and channel execution. Mackenzie has secured business from some of the world’s largest institutional investors as well as from some of the largest financial services providers in Canada, contributing to $6 billion in institutional net sales in 2025.
In October, IGM participated in transactions with Rockefeller and Wealthsimple that reinforced the strength of these investments. Rockefeller undertook a recapitalization that strengthened its ownership base, increasing the value of IGM’s original 2023 investment by $750 million, or 89%, inclusive of distributions received as part of the transaction. Wealthsimple completed a round of financing which increased the value of IGM’s investment by $680 million, inclusive of an additional investment of $100 million, to $2.26 billion.
Strategic investments in the asset management segment continued to drive strong results. Northleaf’s assets under management[1] grew 9.4% to $35.0 billion, including fundraising of $5.8 billion over the past year. ChinaAMC demonstrated resilience in 2025, with total assets under management[1] reaching a record RMB¥3.0 trillion ($591 billion), and investment fund assets up 28% year over year.
As part of the CEO transition plan regarding Power Corporation announced in February of 2026, Damon Murchison was appointed President and CEO of IGM, effective July 1, 2026. He will also retain his role as President and CEO of IG Wealth Management. Damon is a highly respected leader who has spent over 11 years with IGM, delivering significant impact with both IG Wealth Management and Mackenzie.
- Refer to the section “Other Measures” in the Review of Financial Performance of the Corporation’s 2025 Annual Report.
GBL: Refocused strategy to support higher total shareholder returns
GBL is focused on enhancing returns and optimizing shareholder value through significant portfolio rotation. In 2025, the company continued to further simplify its portfolio and increased its focus on private assets.
Among other transactions in 2025, GBL partially divested its stake in SGS, which contributed to its goal of reducing its portfolio of publicly listed holdings. In November, GBL announced a large portfolio divestment in GBL Capital and, in February 2026, it announced the exit of its position in Umicore. GBL has completed 95% of the €5 billion portfolio simplification target it communicated in its Strategic Update in November 2024.
GBL continued to prioritize cash returns to shareholders in 2025, distributing €1 billion, composed of an enhanced dividend per share and €335 million of share buybacks. The company’s shareholders realized returns of 23.2% during 2025.
Alternative asset management businesses continue to scale and Wealthsimple’s client assets exceed $100 billion
Power Corporation’s alternative asset management businesses added scale and capabilities to enhance their ability to meet client needs and strengthen their competitive positions.
Sagard continued to grow its business through acquisitions, strategic partnerships and successful fundraising. With the pending closing of the acquisition of Unigestion, a European middle market private equity firm, Sagard will have US$47 billion[1] in assets under management[2]. Unigestion will be combined with Performance Equity Management and BEX Capital to form Sagard Private Equity Solutions, creating a global leader in middle market private equity solutions with US$23 billion[3] in assets under management. Sagard also entered a strategic partnership with Baird, a privately held international financial services firm, in furtherance of its strategy of accelerating its U.S. wealth channel expansion. Sagard secured US$3.5 billion[4] in additional capital commitments to its various investment strategies in 2025.
Power launched its fintech strategy over ten years ago, which included launching Sagard’s Portage fintech funds, and supporting the growth of Wealthsimple, now Canada’s leading financial innovator. Wealthsimple announced a fundraising in October of 2025 co-led by leading global investors GIC and Dragoneer, with each of Power and IGM investing $100 million in the equity raise. The fair value of the Power group’s collective holdings of Wealthsimple increased to $4.1 billion, with Power’s own stake valued at $1.6 billion. Wealthsimple has continued to grow its client base and the breadth of its product offering at an impressive pace, with its assets under administration[2] having reached $111 billion at year-end, up 74% year over year.
Power Sustainable successfully added to its capabilities over the past year notwithstanding a challenging fundraising environment in the alternative asset industry. It successfully launched its Decarbonization Private Equity strategy in 2025, and earlier in 2026 announced the final closing of its initial infrastructure credit fund. Along with its Infrastructure Equity and Agri-food private equity funds, Power Sustainable now has four attractive investment strategies, each with experienced and successful investment teams, to offer to the marketplace. Power Sustainable is focused on additional fundraising to continue to add scale to its products and its platform, with assets under management reaching $4.4 billion.
- Includes Unigestion assets under management of ~US$12.5 billion as of August 31, 2025.
- Refer to the section “Other Measures” in the Review of Financial Performance of the Corporation’s 2025 Annual Report.
- As at June 30, 2025.
- Refer to the section “Other Measures” in the Review of Financial Performance of the Corporation’s 2025 Annual Report. Includes commitments from the Corporation, associated companies and third parties, as well as commitments raised in continuation funds.
AI initiatives
The dramatic advances in the power of AI have been a significant focus of our management teams, as we assess and manage the potential opportunities and risks for our businesses, all in the context of the broader public discussion about the future impact of AI.
Power and its group company management teams are actively engaged in assessing, planning and implementing enhancements to our businesses based upon AI. The various workstreams are being led by each company’s management teams with oversight by their respective boards of directors, however many of the activities are being coordinated across the Power group, particularly concerning the sharing of knowledge and insights.
AI efforts are focused on high-value operational opportunities that enhance client experience, improve productivity and modernize core systems and processes. We are also making selective strategic investments to stay close to emerging technologies and business models, anticipate disruption and seize new opportunities.
Responsible management
Responsible management is a core principle for Power Corporation, one that allows us to generate long-term, sustainable value for our companies, employees, shareholders and community partners.
In keeping with our long-standing commitment to corporate citizenship and community involvement, we believe in ensuring that our communities are equipped with first-rate institutions, including in health, education, arts and culture, alongside responsible, environmentally sustainable practices.
In 2025, the Power group of companies advanced their respective corporate responsibility strategies and initiatives, contributing $49 million in total to more than 4,000 charitable organizations.
Beyond the numbers, we are proud of the involvement of our employees at Power and across our group companies. They are engaged, they lead, and they give their time to causes that matter deeply to them, making a difference in the communities where they live and work.
President and CEO transition
In February of 2026, Power Corporation announced that after six years at the helm of Power Corporation and 25 years with the Power group, Jeffrey Orr will assume the role of Vice-Chair, and James O’Sullivan will succeed him as President and CEO, effective July 1, 2026. These leadership changes are part of a well-planned and robust succession planning process that provides continuity while building on the Power group’s momentum.
We wish to extend our gratitude to Jeff for his outstanding contributions to Power, and we invite you to read the special tribute on the following pages in recognition of his years of service. Jeff will stand for re-election to Power’s Board of Directors at the upcoming annual meeting of shareholders.
We are pleased to welcome James O’Sullivan to his new role as President and CEO of Power Corporation. He is an accomplished executive with deep experience across multiple segments of financial services, including the past six years as President and CEO of IGM Financial.
During his tenure as CEO of IGM, James advanced IGM’s strategy, client experience, financial performance, and culture. He established a clear path to sustainable earnings growth, strengthened the strategic orientation across the two main pillars of wealth management and asset management, and championed strategic investments within each pillar.
Since his arrival at IGM, he has worked closely with the senior leadership teams at Power, Great-West and other group companies, and is already a member of the board of several companies in the group, including IGM, Great‑West and Wealthsimple. James is being nominated for election to Power’s Board of Directors at our upcoming annual meeting of shareholders.
Ongoing value creation
Power Corporation and its group companies are enjoying strong momentum. This has been fuelled by leading market positions, a consistent focus on our clients’ success, strong leadership teams and a culture based upon achievement, rooted in integrity, respect, trust and corporate citizenship. Our current success has been built by many people over decades, a fact brought home as we celebrated our 100th anniversary this past year.
The environment in which we are currently operating is full of opportunities due to the growth and success of our clients, our group companies’ enhanced ability to meet their needs and the potential flowing from advances in technology. But risk is also abundant, whether from political division, geopolitical conflict, financial risk or the threats posed by the same technological advancements.
Power Corporation will continue to prosper through different environments by following the principles that have proven enduring over many decades, which include having a long-term perspective, active governance oversight, a strong financial position and a prudent approach to risk. Power Corporation is well positioned to continue delivering long-term growth and shareholder value.
As we conclude our 100th year and look to the future, we wish to express our appreciation to our talented management teams and employees across the Power group for their dedication and commitment. We also thank our shareholders, clients, and business partners for their trust and ongoing support.
On behalf of the Board of Directors,
/s/ Jeffrey Orr
Jeffrey Orr
President and Chief
Executive Officer
/s/ Paul Desmarais, Jr.
Paul Desmarais, Jr., O.C., O.Q.
Chairman of the Board
/s/ André Desmarais
André Desmarais, O.C., O.Q.
Deputy Chairman of the Board
