Financial services holding company Power Financial Corp. reported flat earnings for the third quarter ended Sept. 30, after as profits fell at its insurance and mutual fund units.

Net earnings for the quarter were $457 million, or 62¢ per share, unchanged from 2007, the company said Tuesday.

The company took a charge of $2 million in the quarter, compared with a charge of $74 million, or 11¢ a share for the same quarter in 2007.

Operating earnings for the quarter were $459 million or 62¢ a share, compared with $531 million, or 73¢ a share in the third quarter of 2007.

Despite the drop in operating earnings, the Montreal-based company hiked its quarterly dividend by 1.5¢ to 35¢ a share.

Insurance subsidiary Great-West Lifeco reported net income attributable to common shareholders of $436 million, or 48.7¢ a share, compared with net income of $461 million, or 51.6¢ a share reported a year ago.

Great-West’s results in the third quarter were impacted by an after-tax charge for asset impairment of $96 million and an after-tax charge of $19 million in connection with the liquidation of the Putnam Prime Money Market fund.

Mutual fund unit IGM Financial reported net income of $199 million, or 75¢ a share, compared with net income of $218 million, or 82¢ a share in 2007.

For the quarter, IGM contributed $112 million to Power Financial’s operating earnings, compared with $122 million in 2007.

The firm’s European subsidiary Pargesa Holding SA. Pargesa reported operating earnings of 256 million Swiss francs, compared with SF126 million in the corresponding period in 2007. The increase is mainly due to the first time accounting for Lafarge beginning on January 1, 2008, under the equity method, and the declaration by GDF SUEZ of an interim dividend recognized during the third quarter of 2008.

The contribution from the European affiliate to Power Financial’s operating earnings was $64 million for the quarter compared with $30 million in 2007.

IE