Manulife Financial Corp is reporting a 32% rise in quarterly profit for the third quarter ended September 30. The increase comes despite weak equity markets.
The insurer says its Asian and U.S. operations and domestic benefits business propped up profits.
“Our businesses continued to perform well in the third quarter despite the extreme volatility of the financial markets,” said Dominic D’Alessandro, President and Chief Executive Officer of Manulife Financial, in a news release.
Net income was $327 million, or 69¢ a share, for the quarter. That was up from $248 million, or 52¢, excluding nonrecurring items, a year ago.
When $64 million in unusual items are included in last year’s third-quarter results, Manulife had a profit of $312 million, or 65¢.
The insurance company credited lower claims expenses at its U.S. insurance and Canadian group benefits operations for the profit rise. Cost controls, acquisitions in Canada, and Asian business growth also contributed to profits, it said.
These helped offset the impact of soft equity markets, which cut Manulife’s quarterly net income by about $68 million.
Third-quarter return on equity rose to 15.2% from 12.6% last year.
Total premiums and deposits rose 13% in this year’s quarter to $7.1 billion, compared with $6.3 billion last year. The gains were driven partly by increased pension plan and annuity product sales in the United States and higher premiums in its reinsurance division.
Funds under management rose 4% to $139.2 billion from $133.6 billion a year ago.
The insurer raised its quarterly dividend by 4¢ to 18¢ a share.