John Hancock Long-Term Care operations did well in the fourth quarter, despite the effects of a paper investment loss that reduced revenue.
The business, an arm of Manulife Financial Corp. (TSX:MFC), is reporting $138 million in net income for the quarter on $282 million in total revenue, compared with $148 million in net income on $769 million in revenue for the fourth quarter of 2012.
The Hancock unit reports results in U.S. dollars.
Premium revenue held steady, at $465 million.
Net investment income increased to $327 million, from $296 million, and premiums from new sales increased to $13 million, from $10 million.
Canada requires companies to use “mark to market” International Financial Reporting Standards (IFRS) accounting rules and put the results of changes in the value of investment portfolios and insurance obligations in their financialstatements.
Manulife posted a $519 million mark-to-market paper loss related to net realized investment experience at the John Hancock Long-Term Care unit in the quarter, up from $353 million in the comparable quarter in 2012.