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Manulife's core earnings edge down in Q4'17

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Manulife's core earnings edge down in Q4'17

Manulife Financial Corp. reported a fourth-quarter 2017 net loss attributable to shareholders of C$1.61 billion, or 83 Canadian cents per share, compared with income of C$63 million, or 1 cent per share, in the prior-year period.

Core earnings came in at C$1.21 billion, or 59 cents per common share, versus C$1.29 billion or 63 cents per common share, the previous year.

The S&P Capital IQ consensus normalized EPS estimate for the period was 59 Canadian cents.

Impacting fourth-quarter net earnings was a charge of approximately C$1.8 billion, posttax, resulting from the cut in the U.S. corporate income tax rate. The company also recorded a C$1.0 billion charge related to its decision to reduce the allocation of alternative long-duration assets in its portfolio mix supporting the North American legacy businesses.

The company reported a C$35 million charge in 2017 as a result of a review of actuarial methods and assumptions, compared with a C$453 million charge for 2016.

Total assets under management and administration increased 11% year over year to C$1.04 trillion as of Dec. 31, 2017.

For full year 2017, net income attributable to shareholders was C$2.10 billion, or 98 Canadian cents per share, compared with C$2.93 billion, or C$1.41 per share, in 2016.

Core earnings for the year were C$4.57 billion, or C$2.22 per share, versus C$4.02 billion or C$1.96 per share, in 2016.

The S&P CapitalIQ consensus normalized EPS estimate for 2017 was C$2.23.

Insurance sales for the year were C$4.7 billion, a 23% increase from 2016. Sales increased 17% in Asia and 60% in Canada. Life insurance sales in the U.S. went up 11% compared to 2016.

Manulife's board announced a 7% dividend increase to 22 Canadian cents per common share. The dividend will be payable on or after March 19 to shareholders of record Feb. 21.