Manulife Financial Corp. is reporting a strong increase in profit for the fourth quarter ended Dec. 31, 2003. The insurer said profit rose 15% as healthy equity markets offset the impact of a stronger Canadian dollar.

Net income for the quarter rose to $428 million, or 91¢ a diluted share, from $372 million, or 80¢ a share, a year ago.

Premiums and deposits totalled $8.1 billion in the quarter, up from $7.4 billion in the year-before quarter. Return on equity was 19.1% in the fourth quarter, compared with 17.2% last year.

Four of Manulife’s five operating units reported higher net income, with the Canadian and Asian operations contributing most of the gains.

For the year, Manulife says it earned a record $1.55 billion, or $3.33 a share, up from $1.38 billion, or $2.90 a share, in the year-ago period.

Manulife says the soaring Canadian dollar, which rose 20% in 2003, reduced the firm’s annual net income by an estimated $92 million.

“We are very pleased to have delivered our tenth consecutive year of record earnings and to have achieved our medium term targets of 15% growth in earnings per share and 16% return on shareholders’ equity,” said Dominic D’Alessandro, president and CEO, in a news release

Manulife also disclosed its embedded value. As at Dec. 31, 2003, the company’s embedded value was $18 billion, before adjustments for discount rate, currency and shareholder dividends.