Manulife Financial Corp. (TSX:MFC) has reported net income attributed to shareholders of $540 million in the first quarter, down sharply from the almost $1.23 billion it reported in the same period a year ago.
Canada’s largest insurance company says the results translated into net earnings per common share of 28 cents, compared with 57 cents in the same 2012 period.
However, core earnings, which Manulife sees as an important measure of performance, rose to $619 million from $526 million in the year-earlier period.
Core earnings represent revenue derived from a company’s main business operations, less all expenses and revenue from non-core activities and exclude earnings from things like goodwill, pension gains and gains or losses from non-recurring items and the like.
“We are pleased with our solid start to 2013,” president and CEO Donald Guloien said in releasing the results Thursday.
“Our first quarter results reflect our continued progress on our growth strategies, strong core earnings, strong net income, decreased equity risk and a very solid capital ratio.”
Guloien said that insurance sales fell short of expectations in the first quarter.
However, he noted that Manulife had generated record wealth sales with contributions from all of the company’s major units around the world.
Chief financial officer Steve Roder said Manulife had “substantially improved” core earnings relative to both the previous quarter and last year and continues to generate solid investment gains “reflecting our high-quality portfolio and disciplined approach to extending credit and other investment activities.”