Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Manulife Rises on Fed Outlook, Interest Rates

Don't Miss Out —
Follow us on:

March 14 (Bloomberg) -- Manulife Financial Corp., Canada’s largest insurer, rose the most in about five months after yields on 30-year bonds climbed and U.S. Federal Reserve policy makers raised its outlook.

Manulife jumped 6.7 percent to C$13.50 at 4 p.m. in trading on the Toronto Stock Exchange. It was the biggest one-day gain for the Toronto-based company since Oct. 27.

The owner of Boston-based John Hancock Financial has been more sensitive to interest-rate declines than some of its domestic competitors, reporting two straight quarterly net losses. Falling rates reduce investment income while increasing costs from obligations to clients who bought guaranteed investment products.

“As long-term rates back up and as equity markets move up tied to a better economic outlook, life insurers will release a whole batch of reserves into their income,” said Peter Routledge, an analyst at National Bank Financial in Toronto. He rates Manulife shares ‘sector perform’

The Federal Reserve raised its assessment of the economy yesterday as the labor market gathers strength. Yields on 30-year bonds climbed as much as 11 basis points to 3.38 percent, the most in more than four months.

Other Canadian insurers also rose. Sun Life Financial Inc. climbed 4.5 percent, Great-West Lifeco Inc. advanced 2.5 percent and Industrial Alliance Insurance and Financial Services Inc. jumped 11 percent.

To contact the reporter on this story: Sean B. Pasternak in Toronto at spasternak@bloomberg.net.

To contact the editors responsible for this story: David Scanlan at dscanlan@bloomberg.net; David Scheer at dscheer@bloomberg.net.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.