Manulife posts $1.3 billion increase in net income
Manulife Financial Corporation announced its earnings for the third quarter of 2020, reporting net income of $2.068-billion, a $1.3-billion increase compared to the $723-million reported in the third quarter of 2019.
Core earnings reached $1.453-billion during the quarter, a six per cent decline from the $1.527-billion in core earnings declared in the third quarter of 2019.
Year-to-date net income was $4.091-billion as of September 30, 2020, a decrease compared to the year-to-date net income of $4.374-billion reported for the same period in 2019. Diluted earnings per common share were $1.04 compared to $0.35 in the third quarter of 2019 while diluted core earnings per common share were $0.73, down from $0.76 a year ago.
Impact of COVID-19
The company says the decrease in core earnings reflects the absence of core investment gains, lower investment income, unfavourable policyholder experience in its Canadian insurance operations and lower new business volumes as a result of COVID-19.
Core earnings in the company’s Canadian operations were $279-million in the third quarter of 2020, down from $318-million in the third quarter of 2019.
The company says overall demand for its products was robust during the year so far, while its digital capabilities allowed it to fulfill consumer insurance and wealth management needs across all of its markets globally. The company’s life insurance capital adequacy test (LICAT) ratio was 155 per cent at September 30, down from 146 per cent at the end of the third quarter in 2019.
After releasing its financial results, the company also announced that it would pay a dividend of $0.28 per common share, on December 21, 2020 to shareholders of record on November 23, 2020. Preferred share dividends ranging between $0.10 and $0.35 will also be payable on or after December 19, 2020 to shareholders of record at the close of business on November 23.