Manulife Financial income up 14%

TORONTO – Manulife Financial Corp. has reported shareholders’ net income of $960 million for the second quarter of 2006, an increase of 14 percent from one year ago. Earnings per common share were $0.61, a 17 percent increase compared to the second quarter of 2005. In addition, return on common shareholders’ equity was 16.3 percent, up 200 basis points from the second quarter in 2005.

"The quality and diversity of our businesses are again evident in our top and bottom line results," Dominic D’Alessandro, president and chief executive officer of Manulife Financial, said.

Manulife Financials also returned more than $1.2 billion of capital to common shareholders in the second quarter, through the repurchase of 25.7 million shares and quarterly dividends.

Premiums and deposits for the second quarter totaled $15.9 billion, an increase of 10 percent over the same period last year. Continued strong wealth management sales in the United States, Hong Kong and Japan, as well as strong life insurance sales in the United States, were key contributors to this growth.

Total capital was $28.3 billion end June, down $500 million from $28.8 billion as at June 2005.

Shareholders’ dividends of $1 billion, the repurchase of 48 million shares for $1.6 billion, and the $1.7 billion negative impact of the strengthened Canadian dollar over the last 12 months were partially offset by net income in the past 12 months, $300 million of preferred shares issued on January 3, 2006 and the net effect of debt redemptions and new issues.

On Feb. 16, 2006, it exercised its right to redeem all of the outstanding $250 million subordinated debentures due Feb. 16, 2011. On March 28, 2006, the company issued $350 million in medium term notes, which bear interest at a fixed rate of 4.67 percent, payable semi-annually, and mature on March 28, 2013.

Total funds under management were $370 billion end June, an increase of two percent or $6 billion from one year ago. Growth from strong net sales was offset by the $5 billion of scheduled maturities on the John Hancock Institutional Fixed products segment and the $29 billion negative impact of currency movements.

In the Philippines, Manulife Financial acquired The Pramerica Life Insurance Co. Inc. This will be the fifth acquisition in the Philippines since 2002, demonstrating the financial institution’s continued commitment to this region.

The combined life and pre-need sales grew by six percent with the sales of pre-need products expanding by a whopping 41 percent."Policyholders continue to put their trust in Manulife as evidenced by the fact that premiums and deposits registered a seven- percent increase over the same quarter last year and total assets under management increased by 20 percent year-on-year," Carl Gustini, president and chief executive officer of Manulife Philippines, said.

To increase its competitiveness, Manulife Philippines launched last month its latest educational product called "New Minds".

New Minds is an innovative juvenile participating anticipated endowment product with a range of benefits such as graduation gifts and textbook allowances payable at key dates during a child’s education.

It also provides insurance protection for the child and a payor’s benefit and contingent education fund that waives premium payment and pays 10 percent of the face amount every year in the event of the payor’s death/disability until the first installment is paid. New Minds targets a growing market in need of a reliable future source of funds that may be used to cover educational expenses.

Manulife Financial is a leading Canadian-based financial services group serving millions of customers in 19 countries and territories worldwide.