(February 17 – 11:25 ET) – Manulife Financial Corporation achieved its sixth consecutive year of record earnings for 1999, reporting adjusted shareholders’ net income of $874 million and adjusted basic earnings per share of $1.75. Return on shareholders’ equity was 14 per cent for the year, compared to the 12.9 per cent reported in 1998.

This year for the first time, says Manulife, premiums and deposits surpassed the $20 billion mark, growing by 31 per cent over 1998. Revenue growth was particularly strong in the U.S. and Asia. For the fourth quarter of 1999, shareholders’ net income was $251 million, representing earnings of $0.50 per share, up 26 per cent from the $199 million reported during the same period in 1998. Shareholders’ return on equity for the quarter was 15.7 per cent compared to the 13.5 per cent achieved during the fourth quarter of 1998.

“It’s been a remarkable and historic year for Manulife,” says Dominic D’Alessandro, President and Chief Executive Officer of Manulife Financial Corporation. “In addition to successfully completing our conversion to a public company, we achieved record revenue and earnings results, significantly expanded our presence in the Asian markets with new operations in Japan and Vietnam, and successfully completed our Y2K systems upgrade. I am very pleased with the progress made in all Divisions during 1999 and their contributions to our achievements.”

“We also reached our 14 per cent target return on shareholders’ equity one year ahead of schedule and have now established a new goal of attaining a 15 per cent return on equity to enhance value for our shareholders,” says D’Alessandro.

The Board of Directors today announced approval of the Company’s first post demutualization shareholders’ dividend – a quarterly payout of $0.10 per share on common shares of the Company, payable April 28, 2000 to shareholders of record at the close of business on March 20, 2000.

Total premiums and deposits increased by 31 per cent to $20.1 billion when compared to 1998.Funds under management ended the year at $112.1 billion, an increase of 16 per cent from December 31, 1998 levels after being reduced by $3.9 billion due to the impact of the strengthening Canadian dollar. Sales of individual insurance products grew by 23 per cent over the prior year in Canada and 16 per cent in the United States.

The Canadian Division reported net income of $236 million in 1999 compared to $235 million in 1998. The year’s result reflected more favourable claims experience, increased fee income primarily from segregated fund assets, and higher investment income, partially offset by one-time development costs associated with Manulife One and the reorganization of distribution operations.

For the year, premiums and deposits increased to $5.1 billion in 1999 from $4.5 billion in 1998, says Manulife, primarily as a result of premiums assumed on in-force business from Confederation Life. Funds under management ended the year at $29 billion, an increase of seven per cent compared to the prior year. This increase was largely due to net new segregated fund deposits and appreciation in equity markets combined with growth in general fund assets as a result of the assumption of the Confederation Life business.
-IE Staff