Manulife Financial Corp. today reported third quarter shareholders’ net income of $248 million compared to $315 million in 2000

Non-recurring items included in this quarter’s results collectively reduced net income by $64 million, whereas a non-recurring item increased third quarter 2000 net income by $46 million. Excluding these non-recurring items, shareholders’ net income this quarter was $312 million, a 16% increase over the prior year.

“This was a very satisfactory result given the market challenges this quarter,” said Dominic D’Alessandro, president and CEO.

The company cited the impact of recent acquisitions in Japan and Canada, strong growth in Asia, and improved margins in the Canadian insurance and wealth management businesses; partially offset by unfavourable mortality experience in the United States and by the impact of lower equity market values.

“Manulife Financial continued to perform well despite generally difficult market conditions that were made worse by the terrible events of September 11th in the United States,” D’Alessandro said.

The quarter’s non-recurring items related to provisions for anticipated claims arising from the terrorist events in the U.S. on September 11, 2001, a gain from the disposition of a portion of the Company’s investment in Seamark Asset Management Ltd., and two tax related items..

As a result of the terrorist events of September 11, Manulife’s exposure to loss is estimated at $360 million before catastrophe coverage, reserves and taxes. Accident reinsurance exposures account for 80% of this amount with Property & Casualty and Life risks accounting for the balance.

These exposures are expected to be reduced by $120 million of catastrophe coverage, $60 million of expected tax deductions and $80 million of existing net reserves.

Excluding non-recurring items shareholders’ net income was $312 million, a 16% increase over 2000. Earnings per share rose to 65¢ from 56¢ in 2000. Return on shareholders’ equity for the quarter was 15.8%, unchanged from 2000.

Premiums and deposits for the quarter totalled $6.3 billion, a 5% increase over 2000. Funds under management at September 30 increased 7% to $134.6 billion from $126.2 billion a year ago.

The board of directors approved a quarterly shareholders’ dividend of 12¢ per share on the common shares payable on or after December 19.

The directors aslo approved a normal course issuer bid to purchase up to 20 million common shares over a 12 month period, representing approximately 4.15% of the outstanding common shares.