Manulife Financial Corp. today reported record shareholders’ net income of $1.102 billion, an increase of 15% over the $959 million reported in second quarter of last year.

Fully diluted earnings per share were 71¢, up from 60¢ a year earlier.. As well, adjusted return on common shareholders’ equity was 18.5%, an increase of 220 basis points.

Second quarter premiums and deposits rose to $16 billion, an increase of 5% over last year when considered on a constant currency basis. Growth was a result of continued strong sales and growth in recurring premiums and deposits.

Total funds under management increased 11% to $410 billion at the end of June.

Adjusted return on equity rose to 18.5% in the second quarter from 16.3% in the same quarter in 2006.

Net income at Manulife’s Canadian insurance division rose 10.8% to $296 million. At its U.S. insurance division profit rose 40.9% to $179 million.

Profit at its U.S. wealth management unit, John Hancock, fell 22% to $234 million.

At its Asia and Japan operations, net income was up 21.6% to $242 million.

“The second quarter was a solid one for our Company,” said Dominic D’Alessandro, president and CEO, in a release. “Our businesses continued to deliver strong earnings and sales growth and our return on equity hit a post-merger record. The strengths of our diversified platform are again evident in these results.”