Manulife Financial Corp. is reporting improved earnings for the second quarter ended June 30.

The financial services firm says second quarter shareholders’ earnings were up 23% over the same period last year.

It says the increase reflects the impact of the transfer of policies and assets from Daihyaku Mutual Life Insurance Company of Japan, business growth in Hong Kong, improved margins in Individual Insurance and Individual Wealth Management businesses in Canada and improved claims experience in the Accident and Health reinsurance line.

“It was another quarter of significant accomplishment for our company. Our financial results were strong and we completed three important acquisitions, two in Canada and a substantial one in Japan, which position us well for the future,” said Dominic D’Alessandro, president and CEO.

Second quarter earnings per share rose to 63¢ from 51¢ in 2000. Return on shareholders’ equity for the quarter was 16.2%, up from 15.3% in 2000.

Premiums and deposits for the quarter totalled $6.4 billion, a 6% increase over 2000. Funds under management increased 15% to $140.9 billion as at June 30, from $122.4 billion a year ago. Fees and other revenue increased by 11% over the corresponding period in 2000.

In Canada, group insurance sales to small and mid-size groups were 88% higher than last year. Group Corporate account sales were lower this quarter versus the same period last year because of the number of very large case sales that were made in the second quarter of 2000. Individual insurance sales continued to be impacted by a softening Canadian economy and an increasingly competitive Universal Life market.

Also in Canada, sales of payout annuity products increased 70%. However, Individual Wealth Management new business volumes declined 29% due to continuing unattractive equity markets and low interest rates. Group Pensions’ premiums and deposits were 21% lower than the prior year, when there was an unusually large deposit.

Canadian Division net income increased by 16% to $80 million, compared to $69 million in the second quarter of 2000. Year-to-date earnings of $153 million were up 20% over the first six months of 2000. The increased earnings were driven by improved margins in Individual Insurance and Individual Wealth Management businesses partially offset by less favourable long-term disability claims results in Group Benefits.