Power Financial Corp. says its net earnings decreased 33 per cent in the second quarter on lower revenue 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 a share, down from $658-million, or 92 cents a 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 & Annuity Insurance Co. to Protective Life Insurance Co. 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 a share, 1 cent a share better than forecast by analysts and down from 92 cents a share in the second quarter of 2018.
Revenue was $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.
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