Manulife Financial Corp. reported first quarter shareholders’ earnings of $986 million and earnings per share of $0.63. These results include the one-time charge to earnings of $69 million related to an asset realignment undertaken to more appropriately position Manulife Financial’s assets under the new financial instrument accounting standards which became effective Jan. 1.

Excluding the one-time impact, shareholders’ net income was about $1.1 billion, earnings per share were $0.68 and adjusted return on common shareholders’ equity was 17.3% for the first quarter of 2007. This represents an 11% increase in earnings and a 13% increase in earnings per share compared to the prior year.

“I was particularly pleased with the strong operational earnings growth from the majority of our businesses,” said Dominic D’Alessandro, president and CEO of Manulife Financial. “As well, record levels of premiums and deposits and funds under management bode well for future growth.”

For the first quarter 2007, premiums and deposits totaled $18.8 billion, an increase of 5% over last year and 19% over the preceding quarter. Record segregated fund deposits in Canada and continued strong wealth management sales in the United States, Hong Kong and Other Asia Territories were key contributors to this positive result.

“The first quarter results benefited from strong growth in in-force earnings and overall favourable operating results compared to one year ago,” noted Peter Rubenovitch, senior executive vice president and Chief Financial Officer. “Slower growth in equity markets somewhat offset earnings growth.”

Total funds under management increased by 11%, or $40.5 billion, over last year to reach a record level of $426 billion as of March 31.

In related news, the company also announced that the board of directors approved a quarterly shareholders’ dividend of $0.22 per share on the common shares of the company, an increase of $0.02 per share, payable on and after June 19 to shareholders of record at the close of business on May 15.