MONTREAL — Power Financial Corp. says its net earnings increased 21 per cent to $586 million in the first quarter due to a strong performance by Great-West Lifeco Inc.
The Montreal-based company — whose main subsidiaries are insurer Great-West Life and fund manager IGM Financial — says it earned 82 cents per share for the period ended March 31, compared with 68 cents per share of $484 million a year earlier.
Excluding one-time items, adjusted profits grew by 17 per cent or $85 million from $501 million or 70 cents per share in the first quarter of 2017.
The results were announced before its annual meeting.
The year’s adjusted net profits included $495 million from Great-West, $107 million from IGM Financial and $44 million from Pargesa Holding SA. That compared with $419 million, $104 million and $43 million respectively in the same period last year.
Great-West sales grew seven per cent to $34.6 billion while fee and other income rose six per cent to $1.4 billion, driven by strong market performance in the U.S.
IGM Financial posted record first-quarter net sales of $1.4 billion.
Power Financial held a 67.7 per cent economic interest in Great-West, 61.4 per cent in IGM Financial, 27.8 per cent Pargesa and 81.6 per cent in Wealthsimple, a Toronto-based digital wealth management firm.
Power Financial is the main subsidiary of holding company Power Corporation of Canada, which also has investments in renewable power and media properties.
Power Corp. holds an investment in The Canadian Press as part of a joint agreement with a subsidiary of the Globe and Mail and Torstar Corp.
Companies in this story: (TSX:PWF, TSX:POW, TSX:GWL, TSX:IGM, SIX:PARG).
The Canadian Press