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Power Financial Q2 profit takes hit from sale of U.S. insurance business

The Power Financial Corporation logo is seen in this undated handout photo. Power Financial Corp. says its net earnings decreased 33 per cent in the second quarter on lower revenues and a large charge resulting from the sale of its U.S. individual life insurance and annuity business. THE CANADIAN PRESS/HO, Power Financial *MANDATORY CREDIT*

MONTREAL — Power Financial Corp. says its net earnings decreased 33 per cent in the second quarter on lower revenues and a substantial charge resulting from the sale of its U.S. individual life insurance and annuity business.

The Montreal-based company says it earned $443 million or 66 cents per share, down from $658 million or 92 cents per share a year earlier.

The result included a $146-million charge, 92 per cent of which related to the June sale by Great-West Life and Annuity to Protective Life Insurance Company of the U.S. operations for $1.6 million.

Excluding the one-time items, adjusted earnings were down 10.5 per cent to $589 million from $658 million in the prior year.

That equalled 88 cents per share, one cent per share better than forecast by analysts and down from 92 cents per share in the second quarter of 2018.

Revenues were $3.5 billion, compared with $11.4 billion a year earlier which included the U.S. business.

Power Financial holds majority stakes in Great-West Lifeco, IGM Financial and Wealthsimple Financial Corp., as well as a minority stake in Pargesa Holding.

 

Companies in this story: (TSX:PWF, TSX:GWO, TSX:IGM)

The Canadian Press