(May 17 – 11:20 ET) – Canada’s largest life insurer today reported a strong first quarter with shareholder earnings rising 16 per cent to $227 million. That’s $32 million over the prior year. These solid results reflect continued growth in both insurance and wealth management operations as well as an improvement in unit costs.

Earnings per share rose to 47¢ per share from 39¢ per share last year, an increase of 21%. Return on shareholders’ equity for the quarter was 14.2%, up from 12.8% in the prior period. Premiums and deposits totaled $6.5 billion in the quarter compared to $4.5 billion in the first quarter last year, a jump of 44%. As at March 31, 2000, funds under management were $118.9 billion, an increase of 21% from March 31, 1999.

“All of our businesses around the globe continued to perform well and contributed favourably to our strong first quarter,” said Dominic D’Alessandro, president and Chief Executive Officer of Manulife Financial Corporation. “Our 21% increase in earnings per share and continued growth in return on shareholders’ equity is a reflection of Manulife’s focus on high- growth businesses,” he said.

On April 7, 2000, Manulife Financial Corporation was added to all the key indices of the Toronto Stock Exchange including the TSE 300, TSE 100, S&P/TSE 60 and S&P Global 1200 indices. That day, Manulife Financial accounted for more than one third of the trading volume of the TSE 300.

The Board of Directors today announced approval of a shareholders’ dividend; a quarterly payout of 10¢ per share on common shares, payable July 7, 2000 to shareholders of record at the close of business on June 2, 2000.

Total premiums and deposits increased by 44% over the first quarter of 1999 to $6.5 billion. Strong demand for pensions and annuities and solid growth in insurance sales – including premiums of $387 million from Japan – were key drivers of this growth.

Funds under management increased to $118.9 billion, a 21% increase from the first quarter of 1999.

Sales growth was exceptional, with individual insurance product sales rising by 124% in Canada, 62% in the United States and 50% in Asia (excluding Japan) compared to the first quarter of last year.

Manulife Financial’s wealth management businesses also experienced significant sales growth, led again this quarter by the U.S. operation where premiums and deposits rose by 66% over the first quarter of 1999. Sales of variable annuities were also at record levels. In Canada, a strong RRSP season drove a 13% increase in individual annuity sales.

Canadian Division net income increased by 11% to $59 million, compared to $54 million in the first quarter of 1999. The increased earnings were largely driven by expense management initiatives that reduced unit expenses, partially offset by less favourable long-term disability claims experience.

Premiums and deposits increased by 9% to $1.5 billion, with increases experienced in both the wealth management and insurance businesses. Funds under management increased by 9% to $31.3 billion as at March 31, 2000 from $28.7 billion as at March 31, 1999. This increase was largely due to segregated fund asset growth as a result of asset appreciation and net new deposits, and an increase in general fund assets associated with the Confederation Life assumption reinsurance arrangement in the second quarter of 1999.
-IE Staff

http://www.manulife.com