Manulife Posts C$1 Billion Profit on Wealth and Insurance Sales

Manulife Financial Corp. (MFC), Canada’s largest life insurer by market value, posted third-quarter profit that beat analysts’ estimates as wealth and insurance product sales increased.

Net income was C$1.03 billion ($993 million), or 54 cents a share, compared with a loss of C$227 million, or 14 cents, a year earlier, the Toronto-based firm said today in a statement. Profit excluding some items was 36 cents a share, compared with the 35-cent average estimate of 12 analysts surveyed by Bloomberg.

“Insurance sales increased modestly, but most importantly, were accompanied by much higher margins,” Chief Executive Officer Donald Guloien, 56, said in the statement. “Wealth sales were extremely positive across the board. The overall plan is unfolding extremely well.”

The insurer’s wealth product sales gained 34 percent to C$11.3 billion from the same period last year, with the company’s funds under management reaching a record of C$575 billion. Insurance sales were up 4 percent.

Manulife gained 0.2 percent to C$18.71 in Toronto yesterday. It has rallied 38 percent this year, beating the 34 percent gain by the 6-company Standard & Poor’s/TSX Life & Health Insurance Index.

Sun Life Financial Inc. (SLF), Canada’s third-largest insurer, said yesterday that net income from continuing operations slipped 27 percent to C$324 million. Operating profit, which excludes some items, was 69 cents a share, beating the 64-cent average estimate of 11 analysts surveyed by Bloomberg. Wealth-management and insurance sales rose.

(Manulife is hosting an investor conference call at 2 p.m. Toronto time at 416-340-8018 or 1-866-225-0198.)

To contact the reporter on this story: Katia Dmitrieva in Toronto at edmitrieva1@bloomberg.net

To contact the editor responsible for this story: David Scanlan at dscanlan@bloomberg.net

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