UPDATE 2-Power Corp of Canada net income rises on gain

(Adds board changes, updates share price)

TORONTO, May 9 (Reuters) - Net income at Power Corporation of Canada (POW.TO: Quote, Profile, Research) rose 3.6 percent in the first quarter, helped by a one-time gain recorded by an indirect insurance subsidiary, it said on Friday.

The company, controlled by Montreal's wealthy Desmarais family, said it earned C$376 million ($372 million), or 80 Canadian cents a diluted share, for the three months ended March 31. That was up from C$363 million, or 77 Canadian cents a share, in the same 2007 period.

Montreal-based Power Corp controls Power Financial Corp (PWF.TO: Quote, Profile, Research), which reported a 20 percent jump in first-quarter earnings on Thursday, despite the strong Canadian currency.

Power Financial in turn controls insurance concern Great-West Lifeco (GWO.TO: Quote, Profile, Research) and mutual fund company IGM Financial (IGM.TO: Quote, Profile, Research), both of which reported results last week.

Great-West Lifeco's first-quarter profit included two nonrecurring items, one of which was a gain of about C$176 million, and this gain was reflected both in Power Financial and Power Corp's bottom lines.

Power Corp said its operating earnings in the first quarter fell to C$304 million, or 64 Canadian cents a share, from C$363 million, or 78 Canadian cents a share, a year earlier.

The decrease was due to lower income from investments. In the same 2007 period, the company posted "substantial gains" on certain investments in Europe and China, it noted.

Power Corp also named Robert Gratton as deputy chairman of its board. Gratton stepped down this week as chairman of Power Financial, but is still a director there.