November 11, 2011 / 4:49 PM / 7 years ago

UPDATE 3-Power Financial profit rises, shares up

* Q3 profit C$0.44/shr vs year-earlier profit C$0.42

* Shares up 2.4 percent at C$26.11 on TSX

* Parent Power Corp also sees profits rise (Adds Power Corp results, updates market reaction)

Nov 11 (Reuters) - Resilience in Power Financial Corp’s (PWF.TO) insurance and mutual-fund subsidiaries in a period of volatile markets pushed up its quarterly profit and that of its parent Power Corp (POW.TO), results on Friday showed.

Both Power Corp and Power Financial are part of the financial and communications empire controlled by Montreal’s Desmarais family.

Power Corp earned C$190 million ($188 million), or 41 Canadian cents share, in the quarter ended Sept. 30. That compared with a year-earlier profit of C$169 million, or 37 Canadian cents a share.

The results included a charge of C$148 million in the 2011 quarter, and a charge of C$96 million in the 2010 period.

Power Financial earned C$312 million, or 44 Canadian cents a share, in the quarter ended Sept. 30. That compared with a year-earlier profit of C$294 million, or 42 Canadian cents a share. Its revenue fell to C$9.1 billion from C$9.7 billion in the year-earlier period.

Power Financial owns majority stakes in Canada’s No. 2 insurer, Great-West Lifeco (GWO.TO), and Canada’s biggest asset manager, IGM Financial (IGM.TO).

IGM Financial’s quarterly earnings rose sharply, while Great-West Lifeco reported a higher profit even though its major rivals in the Canadian insurance industry were hit hard by stock market losses and falling bond yields in the quarter. [ID:nN1E7A91TV] [ID:nN1E7A917M]

Power Financial Chief Executive Jeffrey Orr said in September the company was seeking “tactical acquisitions” to build up its U.S. retirement planning and asset management businesses. [ID:nS1E78K1Q6]

Power Financial’s stock closed up 2.4 percent at C$26.11 on Friday on the Toronto Stock Exchange. Shares of Power Corp, which reported after the market close, rose 1.4 percent to C$23.98.

$1=$1.01 Canadian Reporting by Cameron French, Julie Gordon and Allison Martell; editing by Peter Galloway

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