Manulife Financial Corp. reported shareholders’ net income of $960 million for the second quarter, an increase of 14% from a year ago. Earnings per common share were $0.61, a 17% increase compared to the second quarter of 2005. In addition, the company’s return on common shareholders’ equity was 16.3%, up 200 basis points from the second quarter in 2005.

“The quality and diversity of our businesses are again evident in our top and bottom line results,” said Dominic D’Alessandro, president and CEO of Manulife Financial. “Also of note, we returned more than $1.2 billion of capital to common shareholders in the second quarter, through the repurchase of 25.7 million shares and our regular quarterly dividends.”

Premiums and deposits for the second quarter totaled $15.9 billion, an increase of 10% over the same period last year. Continued strong wealth management sales in the U.S., Hong Kong and Japan, as well as strong life insurance sales in the U.S., were key contributors to this growth. Sales highlights for the second quarter include the following:

– John Hancock variable annuities sales of US$2.5 billion, up 41%;
– John Hancock mutual fund sales of US$1.97 billion, up 69%;
– John Hancock retirement plan services sales of US$976 million, up 13%;
– John Hancock life insurance sales of US$190 million, up 34%;
– John Hancock long-term care sales of US$36 million, up 44%;
– Hong Kong individual wealth management sales of US$226 million, up 228%;
– Japan variable annuities sales of US$745 million, up 10%.

“Second quarter earnings benefited from the continued growth of our in-force business, expense efficiencies and good credit experience,” noted Peter Rubenovitch, senior executive vice president and chief financial officer. “Offsetting earnings growth were the effect of weaker equity markets, the negative impact of currency movements and somewhat unfavourable claims experience.”

Total funds under management were $370 billion as at June 30, an increase of 2% or $6 billion from one year ago. Growth from strong net sales was offset by the $5 billion of scheduled maturities on the John Hancock institutional fixed products segment and the $29 billion negative impact of currency movements.

In related news, Manulife’s board of directors also declared a quarterly shareholders’ dividend of $0.175 per share on the common shares of the company, payable on or after Sept. 19 to shareholders of record at the close of business on Aug. 16.

The board also declared dividends on the following non-cumulative Class A shares, payable on or after Sept. 19 to shareholders of record at the close of business on Aug. 16:

– Series 1 – $0.25625 per share
– Series 2 – $0.29063 per share
– Series 3 – $0.28125 per share

A dividend of $0.38125 per share was also declared on the non-cumulative Class A shares Series 6 of the Manufacturers Life Insurance Co., payable on and after Sept. 30 to shareholders of record at the close of business on Sept. 15.