Manulife Financial Corp. today reported that third-quarter profit rose 31% to a record, prompting the insurance giant to raise its dividend.

Profit available to common shareholders rose to $968-million, or 62¢ a diluted share, from $742-million or 46¢ a share a year earlier.

Last year, the impact of hurricane Katrina and a tax-related gain in Japan cut profit by $133 million. Excluding those items, growth in earnings per share would have been 14%, the insurer said.

“Our businesses also continue to develop and launch new and innovative products in the marketplace, building on our leading market positions,” said Dominic D’Alessandro, president and chief executive, in a release.

Return on common shareholders’ equity was 16.6% for the quarter.

Total funds under management rose 6% to a record $381 billion as of Sept. 30.

“Third quarter earnings benefited from overall favourable claims, investment related gains and continued growth of our in-force business,” said Peter Rubenovitch, Manulife’s CFO.

Separately, the company raised its quarterly dividend to 20¢ a share, an increase of 2.5¢.