Manulife Financial Corp. reported record shareholders’ net income of $956 million for the first quarter of fiscal 2006 on Thursday — an increase of 19% from the same period in 2005.

Earnings per common share were $1.20, a 21% increase compared to the first quarter of 2005. In addition, the company’s return on common shareholders’ equity was 16.3%, up 223 basis points from the first quarter in 2005.

“The first quarter results represent an exceptional start to the year. Manulife has again reported record top and bottom line results and all segments contributed to the strong results,” said Dominic D’Alessandro, president and CEO of Manulife Financial. “I am particularly pleased by the exceptional sales levels achieved across the organization in both our wealth management and insurance businesses.”

Total premiums and deposits were $17.9 billion, an increase of 20% above the first quarter of 2005. Sales growth was broadly based, however particular highlights included the following:

– John Hancock Life Insurance sales of US$185 million, up 78%;
– John Hancock Variable Annuities sales of US$2.4 billion, up 61%;
– John Hancock Mutual Funds deposits of US$2.1 billion, up 49%;
– Canada group savings and retirement solutions sales of $342 million, up 92%;
– Japan Variable Annuities sales of US$1.1 billion, up 25%.

“Earnings continue to benefit from both the strong growth in our in-force business and higher levels of new sales,” noted Peter Rubenovitch, senior executive vice president and CFO. “In addition, our continued focus on expense management in this fast growth environment has contributed positively to the first quarter’s results.”

In the first quarter, earnings also benefited from favourable investment and lapse experience and increased fee income due to higher levels of assets under management versus one year ago. Offsetting earnings growth to some extent was less favourable claims experience and the negative impact of currency movements over the year.

As of March 31, total funds under management reached $386 billion, a 10% increase over levels reported one year ago. Excluding the impact of currency movements and the managed reduction within the John Hancock Institutional Fixed products segment, asset growth would have been even more substantial at 15%.

In related news, the company also announced that its board of directors has declared a stock dividend, which has the same effect as a two-for-one split of its common shares.

Shareholders of record as at the close of business on May 25 will be entitled to receive the stock dividend payment on the payment date of June 2.

Starting June 2, ownership statement holders and U.S. registered shareholders will be notified by mail of their revised shareholding after giving effect to the stock dividend, and other registered shareholders will be mailed share certificates representing the stock dividend. The brokerage accounts of other non-registered shareholders will be credited for the additional shares representing the stock dividend on or about the payment date.