Manulife Philippines’ premiums up

Despite the current challenging business environment, total premiums and deposits of Manulife Philippines increased by seven percent year-to-date encouraged by a 10 percent increase in pre-need premiums and deposits. Total assets under management (AUMs) grew 24 percent over the same period last year.

"In response to our customers’ needs, Manulife this quarter introduced REACT-5, an affordable life insurance plan packaged to provide sufficient protection for all responsible breadwinners," Renato Vergel de Dios, president and chief executive of Manulife Philippines, said.

"REACT-5 is a level premium non-participating plan available in three premium bands so clients can enjoy maximum coverage for their premiums. As a leading provider of family protection products, Manulife recognizes the need for affordable coverage that families can rely on. REACT-5 builds on a basic life insurance premise to provide security in the most uncertain of times," Vergel de Dios added in a press statement.

Meanwhile, Manulife Financial Corp. of Canada reported shareholders’ net income of Canadian $746 million for the third quarter of 2005 alone, an increase of five percent over a year earlier.

Total premiums and deposits for the third quarter reached a record level of $15.7 billion, an increase of $2.2 billion above the third quarter of 2004 despite the $1.1 billion negative impact of currency exchange rates. Contributing to this result were exceptional wealth management sales, which increased by 24 percent over last year, including record sales levels for US variable annuities.

Included in the financial results for the third quarter of 2005 were charges associated with Hurricane Katrina amounting to $198 million ($165 million), incurred in the Reinsurance Division, and a gain of $65 million due to the recognition of future tax assets in the Japan Division, based on a review that confirmed our ability to utilize these assets.

"The solid results reported in the third quarter reflect the benefits of our diversification and scale. Despite the charges recorded for Hurricane Katrina, we have again reported strong sales and strong earnings," said Dominic D’Alessandro, president and chief executive officer of Manulife Financial. "I am particularly pleased by the sales levels achieved across our wealth management businesses and in our US individual insurance operations."

The company’s return on common shareholders’ equity was 12.7 percent this quarter, up from 12 percent a year ago. Excluding the charge associated with Hurricane Katrina and the gain on the recognition of future tax assets in Japan, return on common shareholders’ equity would have been 14.9 percent.

Net income hit $746 million for the third quarter ending September 2005, or an increase of five percent from $713 million in 2004.

Property and casualty reinsurance net losses related to Hurricane Katrina amounted to $198 million ($165 million) and a gain on the recognition of future tax assets in Japan Division, based on a review that confirmed our ability to utilize these assets, amounted to $65 million.

Excluding these two items, earnings would have been $879 million, an increase of 23 percent, driven by favorable investment returns, growth in wealth management businesses, expense synergies, and the positive impact of equity markets. The stronger Canadian dollar negatively impacted earnings by $51 million and integration expenses reduced this quarter’s earnings by $17 million.

Year-to-date shareholders’ net income was $2.3 billion, up 33 percent from the $1.7 billion in 2004.

Premiums and deposits for the third quarter were $15.7 billion compared to $13.5 billion in 2004. The growth was driven by increased sales in the wealth management business lines, primarily the variable annuity and group retirement service businesses in the US and the individual wealth management business in Canada. These increases were partially offset by the $1.1 billion impact of a strengthening Canadian dollar.

Funds under management increased to $359.9 billion end September 2005 compared to $346.1 billion in 2004. The growth was driven by positive segregated fund net sales of $14.7 billion and market value appreciation, which were significantly offset by $5 billion of scheduled maturities of institutional annuities in guaranteed and structured financial products and the $25.9 billion negative impact of a strengthening Canadian dollar.

Total capital was $27.9 billion as at Sept. 30, 2005 down slightly from $28.8 billion as at Sept. 30, 2004. Net income in the past 12 months and the addition of $350 million of preferred shares issued on Feb. 10, 2005 were more than offset by shareholder dividends over the last 12 months of $910 million, the repurchase of 25 million shares over the last 12 months for $1.4 billion and a $1.9 billion negative impact of a strengthening Canadian dollar.