Power Financial Corp.’s quarterly profit rose 37 per cent, helped by the release of a litigation provision at its Great-West Lifeco Inc. insurance subsidiary, the company said Wednesday.
The Montreal-based company earned $533-million, or 75 cents per share, in the fourth quarter, up from $389-million, or 55 cents per share, in the year-before period.
Excluding items, operating profit was 60 cents per share. Analysts had expected, on average, a profit of 59 cents per share, according to Thomson Reuters I/B/E/S.
Power Financial, which is controlled by Montreal’s Desmarais family through its Power Corp. holding company, also owns a majority interest in Canadian mutual fund company IGM Financial and a major stake in Swiss-based Pargesa Holding SA.
Profit was boosted by a $88-million gain related to a reduction in litigation provisions originally taken by Great-West in 2010.
On an operating basis, Great-West contributed $342-million to Power Financial’s profit, up from $319-million, while IGM contributed $113-million, down from $119-million.
Later Wednesday, Power Corp. reported its quarterly profit rose 37 per cent on stronger results at the financial services subsidiary, the holding company said on Wednesday.
Power earned $314-million, or 68 cents a share, in the fourth quarter. That compared with a year-earlier profit of $229-million, or 50 cents a share.