(November 9 – 10:05 ET) – Manulife Financial is reporting improved earnings for the third quarter ending September 30, reflecting continued growth in its insurance and wealth management operations.

In the quarter, the firm saw net income of $315 million, up 41% in the quarter and 27% in the year-to-date. Earnings per share rose to 65¢ a share from 45¢ a share in the third quarter of 1999. Net income in the quarter included a $49 million one-time reduction in tax expense in the United States, adding 10¢ to it earnings per share. Excluding the one-time reduction in tax expense, net income for the quarter was $266 million, up 19%.

Return on shareholders’ equity for the quarter was 18.6%, up from 14.2%, in the year-to-date it is up to 16% from 13.4% in 1999. Although excluding the one-time gain the year-to-date return on shareholders’ equity is up to 15.0%.

Total premiums and deposits increased by 19% for the quarter to $6 billion, largely because of continued strong sales of 401(k) pension products and variable annuities in the U.S. Funds under management grew by 20% to $126.2 billion at September 30. Continued strong sales in the U.S. and market appreciation boosted these results. Other revenue increased by 30% over the third quarter of 1999, primarily due to higher fee revenue from the growth of segregated funds assets to $58.4 billion.

“I am very pleased with Manulife’s third quarter performance,” said Dominic D’Alessandro, president and CEO of Manulife. “Our first year as a public company has exceeded all of our expectations; our businesses are growing, our return on shareholders’ equity and earnings per share are above our 15% target, and the market is recognizing the value of our stock.”

Peter Rubenovitch, EVP and CFO said. “Particularly encouraging is that every business unit within Manulife’s global operations is contributing to our results. We remain optimistic about the growth prospects of our operations.”

The board has declared a quarterly dividend of 10¢ per share payable on December 18 to shareholders of record at the close of business on November 20.
-IE Staff