(August 15 – 11:00 ET) – Manulife Financial Corp. today reported strong second quarter results, attributing its gains to wealth management and insurance.

Manulife recorded net income of $247 million for the quarter ended June 30, up $43 million or 21% from the second quarter of 1999. Earnings per share rose to 51¢ from 41¢ in the year ago period. Return on shareholders’ equity for the quarter was 15.2%, up from 13.2%. Year-to-date net income is up 19%, and ROE is 14.7%.

Total premiums and deposits increased by 29% to $6 billion. Strong sales growth in pensions and annuities drove the demand for insurance products. Funds under management increased to $122.4 billion, up 18%, thanks to strong sales of 401(k) pension products in the U.S., variable annuities, and market appreciation. “Other” revenue increased by 27% due to higher fees collected on a 30% increase in segregated fund assets to $55.1 billion, a 30% increase.

“I am very pleased with the financial results that we are reporting today,” said Dominic D’Alessandro, president and CEO of Manulife. “Each one of our operating divisions is enjoying excellent revenue growth and strong net earnings. Manulife is making excellent progress towards sustaining its 15 per cent return on equity objective, and I remain optimistic about the company’s future.”

Manulife’s wealth management growth was strong, particularly in the U.S. where premiums and deposits rose by 41%, thanks to “the effective penetration of the broker/dealer channels”. In Canada, wealth management sales increased by 14% driven by the group pension business and strong individual wealth management sales. In Asia, wealth management sales were more than double the same quarter in 1999, as the investment climate improved and the firm launched new pension products in Indonesia.

“Manulife is committed to its strategy of continued growth at home and in the 14 other countries and territories where we operate. In this regard, we are encouraged by the recent proposed financial services legislation reform because it recognizes the importance of maintaining a viable and independent life insurance industry in Canada,” said D’Alessandro.

The firm has declared a 10¢ dividend to be paid on September 29.
-IE Staff