Manulife Financial Corp. reported slightly improved first-quarter profits on Thursday. The insurer said growth in its Asian and Reinsurance Divisions and favourable claims experience in Canadian Group Benefits were moderated by depressed equity markets on a stronger Canadian dollar.

Net income was $336 million, or 73¢ a share, up slightly from $335 million, or 70¢ , in the year-before period.

Manulife also said its profit was affected by one-time costs of $15 million related to its proposed Canada Life Financial Corp. acquisition last year. Great-West Lifeco eventually trumped Manulife’s offer.

First-quarter return on equity fell to 15.8% from 16.3% on an annualized basis. Total premiums and deposits stood at $7.9 billion, compared with $7.6 billion last year.

Manulife’s Canadian, Asian, and Reinsurance units all posted gains in the first quarter, while the U.S. and Japanese divisions showed declines.

Funds under management decreased by 3% to $141.6 billion as at March 31, 2003 compared to $146.7 billion as at March 31, 2002.

Segregated fund assets decreased to $56.5 billion from $62.7 billion as at March 31, 2002. Strong net policyholder cash flows of 401(k) and annuity products in the U.S. and positive net segregated fund cash flows in Canada over the past 12 months were more than offset by reductions of approximately $12.3 billion as a result of lower equity markets and $3.9 billion due to a strengthened Canadian dollar.

Manulife’s board of directors approved a quarterly shareholders’ dividend of 18¢ per share.

http://www.newswire.ca/releases/April2003/24/c3540.html