November 25th, 2020

Manulife third quarter profit surges to $2.07 billion while core earnings slip

By The Canadian Press on November 11, 2020.

Signage is seen on Manulife Financial Corp.'s office tower in Toronto, Tuesday, Feb. 11, 2020. THE CANADIAN PRESS/Cole Burston

TORONTO – Manulife Financial Corp. beat expectations as its net income attributable to shareholders surged to $2.07 billion in the third quarter.

The Toronto-based insurer says it earned $1.04 per diluted share in the three months ended Sept. 30, up from 35 cents per share of $723 million a year earlier.

The net profit gains were the result of equity markets, interest rates and variable annuity guarantee liabilities, compared with losses in the prior year quarter which included a $500-million charge.

Core earnings decreased 4.8 per cent to $1.45 billion or 73 cents per share, compared with $1.53 billion or 76 cents per share in the third quarter of 2019.

Manulife was expected to earn 70 cents per share in core earnings and 51 cents per share in net income, according to financial data firm Refinitiv.

New business fell to $460 million from $526 million on weaker activity in Asia and the U.S. Total annual premium equivalent revenue was down two per cent to $1.43 billion.

“While the COVID-19 pandemic continues to disrupt economies worldwide, the overall demand for our products was robust,” stated Roy Gori, Manulife’s president and CEO.

This report by The Canadian Press was first published Nov. 11, 2020.

Companies in this story: (TSX:MFC)

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