Manulife Financial Posts Downbeat Q3 Profit

Manulife Financial

reported a weaker-than-expected third-quarter core profit. The Toronto, Canada-based company's net income attributed to shareholders climbed 6.4% to C$1.10 billion. Diluted earnings per common share rose to $0.57 from $0.54. Its core profit, excluding certain items, gained to C$755 million, or 39 Canadian cents per share. Analysts were expecting a profit of 40 Canadian cents per share. Insurance sales gained 46% in Asia, while wealth management sales climbed 74%. Wealth sales dropped 15% in Canada, while insurance sales slipped 23%. Wealth management sales slipped 6% in the United States, while insurance sales slipped 19%. Its total revenue surged 75% to C$11.04 billion ($9.76 billion), versus expectations of C$11.54 billion. Net premiums income surged around 6% to C$4.64 billion in the quarter. Donald Guloien, President and Chief Executive Officer, said, "We had a very strong quarter. Once again we delivered core earnings that were slightly better than planned, achieved outstanding investment results, and had lower-than-expected charges associated with our annual actuarial review. All of these together lead to very strong net income and capital ratio for the quarter." Manulife shares rose 1.16% to close at $19.11 yesterday.