Insurers report record profits

(October 28, 2003) Two of Canada’s largest life insurance companies are reporting record third-quarter profits. Manulife Financial today reported net income of $396 million, a 21% increase from the same period last year. Sun Life Financial posted a $394 million profit, up 9% from 2002.

Both firms cited rising equity markets and higher sales as the main contributors to the improved profit picture.

“We are very proud that Manulife has once again produced record quarterly results,” said Dominic D’Alessandro, president of Manulife Financial.

“We are pleased with the strong financial performance of most of our businesses last quarter,” said Sun Life CEO Donald Stewart.

Manulife said total premiums and deposits for the quarter were $7.4 billion, 5% higher than last year. The strengthening Canadian dollar reduced its earnings by about $25 million, the firm added.

Manulife recently announced plans to acquire Boston-based John Hancock Financial Services in a deal worth $13.5 billion. “Our intention to merge with John Hancock provides a tremendous opportunity to build on our already strong base,” said D’Allesandro.

Stewart pointed to Sun Life’s integration of Clarica, claiming that the depth of the firm’s domestic base “will serve as a strong base for further international growth.” He added that Sun Life recently acquired a licence to conduct business in Beijing, China.

Filed by Doug Watt, Advisor.ca, dwatt@advisor.ca