Manulife Financial Corporation is reporting net income for the first quarter ended March 31 of $335 million. That’s an increase of 24% from the $270 million reported in 2001.

Most of the company’s businesses showed earnings growth of 20% or more. These increases were primarily due to strong business growth, expense efficiencies and the impact of acquisitions in Japan and Canada, says Manulife. The company says total premiums and deposits increased by 21% to $7.7 billion in the first quarter of 2002 from $6.4 billion in 2001. This increase was primarily due to strong sales of pension and annuity products in the United States, the impact of acquisitions in Japan and Canada, growth in mutual fund deposits and good retention.

Here are some of the company’s highlights for the first quarter:
– first quarter shareholders’ net income was $335 million, an increaseof $65 million or 24% over 2001.
– earnings per share rose to $0.70, up 24% from $0.56 in thefirst quarter of 2001.
– return on shareholders’ equity for the quarter was 16.3%, up from 15.0% in 2001.
– premiums and deposits for the quarter totaled $7.7 billion, a 21% increase over 2001. Segregated fund deposits grew by $675 million to $4.6 billion compared to first quarter 2001. General fund premiums increased by $404 million to $2.5 billion from 2001.
– funds under management increased 18% to $146.7 billion as at Mar. 31, 2002, from $124.2 billion as at Mar. 31, 2001, with general funds under management up 26% and segregated fund assets up19%. This growth was achieved despite a decrease of$4.4 billion in other managed funds due to the exclusion of assets managed by Seamark Asset Management Ltd. subsequent to the company’s disposition of a portion of its controlling interest in that entity in July 2001.

The Board of Directors approved a quarterly shareholders’ dividend of $0.14 per share on the common shares of the Company payable on or after June 19, 2002 to shareholders of record at the close of business on May 15, 2002.

Canadian division shareholders’ net income increased 26% to $93 million, from $74 million in the first quarter of 2001. The increased earnings resulted from positive contributions from acquisitions in 2001, increased sales and higher margins on Individual Wealth Management products and expense efficiencies. Premiums and deposits were up 12% to $1.5 billion in the quarter compared to 2001, with increases in the insurance and wealth management businesses.

The acquisitions of Zurich Canada’s group benefits and Commercial Union’s Canadian life insurance businesses in 2001 contributed to a 14% increase in premiums and a nine% increase in premium equivalents. Strong long-term mutual fund sales drove a 54% growth in mutual fund deposits, while segregated fund deposits declined 4%.

Funds under management increased 12% to $34.7 billion as at Mar. 31, 2002 from $31.0 billion as at the same time last year. This increase was primarily due to the impact of acquisitions, organic growth of insurance and fixed-income savings products and for the division’s segregated and mutual fund businesses, improved equity markets and continued positive net policyholder cash flows. The acquisition of Zurich Canada on Mar. 25, 2002 added $794 million to funds under management.