Manulife Financial Corporation today announced net income attributed to shareholders of $1.117 billion for the third quarter of 2016, fully diluted earnings per common share of $0.55 and ROE of 11.1%, compared with $622 million, $0.30, and 6.5%, respectively, for the third quarter of 2015.
The increase in net income attributed to shareholders was primarily due to investment-related experience gains, compared with investment-related experience charges last year.
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For Q3 2016, MFC generated core earnings of $996 million, diluted core earnings per common share of $0.49 and ROE of 9.8%, compared with $870 million, $0.43, and 9.2%, respectively, for Q3 2015.
Year-to-date 2016 net income attributed to shareholders was $2.866 billion, fully diluted earnings per common share was $1.40 and ROE was 9.7%, compared with $1.945 billion, $0.94 and 7.1%, respectively, for the same period in 2015. Year-to-date 2016 core earnings was $2.734 billion, diluted core earnings per common share was $1.34 and core ROE was 9.2%, compared with $2.569 billion, $1.27 and 9.5%, respectively, for the same period in 2015.
“This quarter, we once again delivered strong growth in Asia and generated positive net flows in our wealth and asset management businesses around the world,” says Donald Guloien, MFC’s president and CEO, in a release.
Steve Roder, MFC’s CFO, adds, “We achieved $297 million of broad-based investment gains […]. We completed our annual review of actuarial methods and assumptions in the third quarter, resulting in a net reserve strengthening of $455 million. This amount included updates to policyholder assumptions across a number of products, including Long-Term Care in the U.S., as well as a charge of $313 million related to a proactive 10 basis point downward revision to our ultimate reinvestment rate assumptions.”
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