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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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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 23/05/24 4:00pm EDT.

SymbolName% changeLast
IGM-T
Igm Financial Inc
-0.76%36.49
GWO-T
Great-West Lifeco Inc
-0.16%42.78

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