Manulife Financial Corp.
) reported first-quarter 2014 core earnings of $653 million
(C$719 million), up 14.0% year over year. The improvement was
driven by higher fee income on increased asset under management,
lower hedging costs and net modestly favorable currency impacts.
However, lower favorable tax impact was a major drag.
Net income for Manulife in the quarter amounted to
approximately $742 million (C$818 million) compared with a net
income of $535.8 million (C$540 million) in the same period last
During the quarter under review, Manulife's total insurance
sales were $487 million (C$537 million), down 15% year over year.
The decline was attributable to lower sales in Canada Group
Wealth sales for the quarter came in at $12.5 billion (C$13.8
billion), up 5% year over year. The improvement stemmed from
strong sales in the Canadian and North American
's core earnings were $221 million compared with $224 million in
the year-ago quarter. The growth in core earnings was driven by
higher new business margins and improved policyholder experience.
However, premiums and deposits were $3.4 billion, down 18% year
's core earnings of $206.7 million (C$228 million) in the
reported quarter increased 27.4% year over year. The improvement
in core earnings was driven by in-force business growth,
including higher fee income from growing wealth management
businesses; higher new business margins due to product changes
and higher interest rates and improved claims experience.
Premiums and deposits in the quarter were $5.5 billion (C$6.1
billion), up 13% year over year, driven by continued strong
growth in Manulife Mutual Funds and Group Retirement
reported core earnings of $339 million, down 29% year over year.
Premiums and deposits were $12.1 billion, up 4% year over year.
The increase was driven by record sales in mutual funds,
partially offset by lower life insurance premiums.
Manulife strengthened its Minimum Continuing Capital and
Surplus Requirements ratio to 255% as of March 31, 2014, up 7%
over the prior quarter.
Funds under management reached an all-time record high of $574
billion (C$635 billion) as of March 31, 2014.
Manulife Financial presently carries a Zacks Rank #3
Other life insurers like
Lincoln National Corp.
) have reported better-than-expected first-quarter earnings.
Protective Life Corp.
), with a Zacks Rank #2 (Buy), is scheduled to release its
first-quarter earnings on May 8.
LINCOLN NATL-IN (LNC): Free Stock Analysis
MANULIFE FINL (MFC): Free Stock Analysis
PROTECTIVE LIFE (PL): Free Stock Analysis
TORCHMARK CORP (TMK): Free Stock Analysis
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