Manulife reports 2006 Q4 earnings of $3.9 billion

Manulife Financial Corporation reported shareholders’ net income of $3.9 billion for 2006, an increase of 21% over the full year 2005.
“The strong organic growth across all of our operations is encouraging and contributed to another year of record earnings,” said Dominic D’Alessandro, president and CEO of Manulife Financial. “In both our insurance and wealth management businesses, we continued to focus on product innovation, distribution excellence and customer service. The result was a record level of premiums and deposits and funds under management that now exceed $400 billion.”
Shareholders’ earnings in 2006 Q4 were $1.1 billion, an increase of 21% from one year ago — and above $1 billion for the first time.
“The increase was due to the positive equity markets compared to last year; favourable investment experience; strong growth in the business; the return to profitability in the property and casualty reinsurance business; and favourable impacts on the Company’s tax position. For the year ended Dec. 31, 2006, shareholders’ net income was $3.9 billion compared to $3.2 billion in 2005.
The reinsurance division’s net income for 2006 Q4 was $68 million, up $97 million from a loss of $29 million reported a year earlier. The increase was primarily attributable to strong earnings in the property and casualty reinsurance business and favourable life experience gains.
In 2005, losses were reported on the property and casualty reinsurance claims relating to Hurricane Wilma. Full year net income was $294 million compared to a loss of $108 million in 2005.
There was a significant decrease in property and casualty reinsurance premiums due to both lower business volumes and the non-recurrence of reinstatement premiums reported in 2005 on contracts impacted by Hurricane Katrina.