Power Financial Corp. today reported a lower third-quarter profit and raised its dividend by 11%.

The financial services holding company said it earned $381 million, or 52¢ a share, in the quarter ended September 30, down from a profit of $1.1 billion, or $1.58 a share, a year earlier.

Last year’s earnings included an $888 million special gain on dilution following the acquisition of Canada Life by subsidiary Great-West Lifeco Inc.

Operating earnings for the third quarter were $385 million or 52¢ per share, compared with $319 million or 43¢ per share for the same period in 2003, an increase of 20$.

The company said growth in operating earnings reflected a strong increase in the contribution from its subsidiaries.

Great-West Lifeco reported net income attributable to common shareholders, excluding restructuring charges, was $417 million in the third quarter, against $336 million for 2003.

At mutual fund subsidiary IGM Financial Inc., net income attributable to common shareholders for the third quarter was $153.8 million, compared with $140.6 million in 2003, excluding the dilution gain in 2003.

Also today, Power Finanicial declared a quarterly dividend of 20.25¢ per share, an increase of 2¢, or 11%, over the previous quarterly rate of 18.25¢.