Power Financial Corp. today reported posted a 12% rise in fourth-quarter earnings.

The holding company, which owns Canada’s second biggest life insurer and largest mutual fund company, reported net income of $532 million, or 72¢ a diluted share, for the three months ended Dec. 31, 2007.

That compared with $474 million, or 64¢, in the same period a year ago.

The company said the increase was a result of higher operating earnings at its subsidiaries and one-time items.

For the three months ended Dec. 31, 2007, insurance subsidiary Great-West Lifeco Inc. reported net income attributable to common shareholders of $537 million, compared with $491 million for the same period in 2006.

Mutual fund unit IGM Financial Inc. reported adjusted net income, excluding a non-cash tax benefit, was $219 million or, 82¢ a share, during the quarter compared with net income of $200 million, or 75¢ a share. for the same period in 2006.