(February 8 – 15:15 ET) – Manulife Financial Corp. is reporting its seventh consecutive year of record earnings. The insurer says that year 2000 net income surpassed $1 billion, reflecting business growth in all operations and continued improvement in expenses.

Fourth quarter net income was $286 million, an increase of $35 million or 14% over 1999. Year to date net income was $1,075 million, an increase of 23% over 1999.

Fourth quarter earnings per share rose to 59¢ from 50¢ in 1999. Year to date EPS rose to $2.22 from $1.75 in 1999.

Return on shareholders’ equity for the quarter was 16.2%, up from 15.7% a year ago, while year to date return on shareholders’ equity increased to 16.1% from 14% in 1999.

Manulife reveals that net income in 2000 included a $42 million one-time reduction in tax expense in the U.S., relating to years prior to 2000.

Total premiums and deposits for the quarter increased by 11% to $6.1 billion from $5.5 billion in the fourth quarter of 1999. Year to date premiums and deposits increased by 20% over the previous year.

Funds under management grew by 10% to $123.5 billion as at December 31, from $112.1 billion in the previous year. The company says was largely due to continued strong sales of 401(k) pension products and variable annuities, net new segregated fund deposits in Canada and a strengthening U.S. dollar.

“Manulife has enjoyed an excellent year. We are especially proud to be the first Canadian life insurance company to exceed one billion dollars in net income, a result that reflects the success to date of our business strategy,” said Dominic D’Alessandro, president and CEO.

The solid results have allowed the company to increase in the quarterly dividend to 12¢ per share from 10¢.
-IE Staff