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Stock Market Rebound Helps Manulife 3Q Earnings

By Staff Writer

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NU Online News Service, Oct. 28, 2003, 5:39 p.m. EST – Manulife Financial Corp., Toronto, says the rebound in world stock prices helped it increase third quarter earnings by boosting fee revenue and investment income.

The company is reporting the equivalent of $292 million in net income in U.S. currency for the latest quarter on $2.9 billion in revenue, up from $207 million in net income on $2.7 billion in revenue for the third quarter of 2002.

In local currency, the company is reporting 395 million Canadian dollars in net income on 4 billion Canadian dollars in revenue, compared with 327 million Canadian dollars in net income on 4.2 billion Canadian dollars in revenue.

At the U.S. division, profits increased to $89 million on $3 billion in premiums and deposits, up from $73 million in earnings on $2.6 billion in premiums and deposits for the third quarter of 2002.

But Manulife notes that the weakness of the U.S. dollar lowered the Canadian-dollar value of the U.S. division’s earnings. Back home, Manulife is reporting that its U.S. division earnings increased only 3.4%, to 120 million Canadian dollars.

The conversions here use an exchange rate of $1=1.3536 Canadian dollars for the 2003 results, and an exchange rate of $1=1.5785 Canadian dollars for the 2002 results. The exchange rates come from OANDA Corp., New York.