Manulife Financial Corp.’s blockbuster merger with John Hancock Financial Services Inc. has helped the Toronto-based life insurer post record second quarter earnings.
Reporting after the markets closed Thursday, Manulife said net income jumped 71% to $660 million or 93¢ a share for three months ended June 30 vs $386 million (83¢) a year ago.
The profit figure includes two months of contributions from the merger with Boston-based John Hancock, which closed April 28. That worked out to $166 million to earnings in the quarter. Without the impact of John Hancock, earnings in the second quarter increased 28% to $108 million vs same period a year ago.
The merger was the largest cross-border transaction in Canadian history and created the largest life insurer and largest public company, as measured by market capitalization, in Canada.
Manulife also cited strong business growth across the company, excellent claims experience in U.S. Protection, the impact of relatively stable credit and equity markets, and an improved expense position for the strong earnings growth.
The company said total premiums and deposits for the second quarter were $13 billion, up $5.6 billion form a year ago. But much of that was due to the inclusion of John Hancock. Without it, premiums and deposits increased by $2.1 billion or 28%.
Funds under management were $360.2 billion as at June 30, more than twice the level at the end of the prior quarter. The combination with John Hancock increased funds under management by $190.0 billion.
Dominic D’Alessandro, president and CEO of Manulife Financial, said in a statement the integration of John Hancock and subsidiary Maritime Life is on track.
Manulife shares fell 10¢ to $52.90 on Thursday.
Merger helps Manulife post record Q2 earnings
- By: IE Staff
- August 5, 2004 August 5, 2004
- 16:06