Manulife credits its John Hancock Financial Services Inc. acquisition for making a strong contribution to its healthy income growth in the second quarter.[@@]
Manulife, in Toronto, reported net income of $520 million (U.S.) in the quarter on revenues of about $5.3 billion, up from about $293 million on revenues of $3.1 billion in the second quarter 2003.
Hancock, which the company acquired at the end of April, contributed around $126 million to that income.
Dominic D’Alessandro, Manulife’s president and chief executive, says the company is not likely to make another big acquisition anytime soon, saying it would be “irresponsible” to do so in view of the immediate challenge of integrating Hancock’s operations.
In another development, it was reported that 9 out of Hancock’s top 10 executives have left the company since its acquisition by Manulife was completed, including David D’Alessandro, Hancock’s chief executive.
A report in the Boston Globe said only James Benson, president of John Hancock Life Insurance Company, remains from the company’s policy committee of 2003.
Hancock’s D’Alessandro, who is not related to Manulife’s CEO, announced his departure in June, just weeks after Manulife completed the acquisition.
Jason Adkins, an attorney whose lawsuit against Hancock directors was recently dismissed, called the severance pay received by the 9 departing executives “a disgrace.”
The Globe reported the 9 executives’ severance package totaled $56.7 million.
“It’s further evidence the whole sellout was a get-rich scheme by the top executives at the expense of the shareholders and the company,.” Adkins charged.
Adkins had sued on behalf of a shareholder, alleging the company was paying its top executives too much. He said he is considering refiling his lawsuit.
Hancock spokesmen did not return calls seeking comment.