Power Corp of Canada (POW) announced a Q3 profit almost three times higher than a year ago, thanks to significant gains in its life insurance business.
Based in Montreal, Power Corp is a diversified holding company focused on financial services in North America, Europe, and Asia. Power Corp holds complete control of Power Financial and thereby controlling interests in Great-West Lifeco (GWO), IGM Financial (IGM), and Wealthsimple, as well as a minority interest in Pargesa.
Profit came in at C$556 million (C$0.82 per share) in Q1 2021 compared with C$200 million (C$0.36 per share) in Q1 2020. Great-West Lifeco net earnings increased 107% to C$707 million, from C$342 million a year earlier.
On an adjusted basis, earnings for the quarter ended March 31 increased to C$786 million (C$1.16 per share) from C$345 million (C$0.62 per share) in the first quarter of 2020.
Power Corp says it has achieved two-thirds of the C$50 million in cost reductions planned over two years since its reorganization completed in February 2020, in which it acquired the minority interests in Power Financial. (See Power Corp of Canada stock analysis on TipRanks)
