Canadian life insurer
Manulife Financial Corp.
) reported third-quarter 2012 operating earnings of $558.3
million (C$556 million). The company's results exceeded the
income of $596 million (C$583 million) reported in the prior-year
During the quarter under review, Manulife's Insurance sales
declined 8% year over year due to the non-recurrence of a U.S.
event in the prior year. The company delivered record insurance
sales in South East Asia driven by record sales in Indonesia, as
well as solid sales in Affinity in Canada and John Hancock Life
in the U.S.
In the quarter, Manulife witnessed a 4% increase in wealth sales
on a year-over-year basis and once again posted record funds
under management ("FUM") of $515 billion, despite the challenging
Total funds under management as of September 30, 2012, came in at
$523.0 billion (C$514.6 billion) in the reported quarter, up 2.7%
year over year.
Assets managed by Manulife Asset Management climbed 10% year over
year to $231.2 billion (C$227.5 billion) on September 30, 2012.
The Manufacturers Life Insurance Company's consolidated
regulatory capital ratio or Minimum Continuing Capital and
Surplus Requirements ("MCCSR") was reported at 204% as of
September 30, 2012, reflecting a decline from 213% as of June 30,
2012. The MCCSR ratio was lower than the previous quarter largely
due to the net loss in the quarter under review and an increase
in required capital for asset and segregated fund guarantee
Results for the nine months ended 2012 shows that Manulife has
achieved a lot through its long-term strategic initiatives such
as developing its Asian footprint, growing Asset and wealth
management business in the U.S., Canada and Asia, working hard
toward building its Canadian market share, and focusing more on
higher returns and low-risk U.S. businesses.
Sun Life Financial Inc.
) reported operating earnings of $406.7 million (C$405 million),
up from $375.2 million (C$379 million) in the previous quarter.
Manulife currently retains a Zacks # 3 Rank, which translates
into a short-term Hold rating. We are also maintaining our
long-term 'Neutral' recommendation on the shares.
MANULIFE FINL (MFC): Free Stock Analysis
SUN LIFE FINL (SLF): Free Stock Analysis
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