Manulife's Q3 profit up 6.4% at C$1.1b

Toronto

MANULIFE Financial Corp reported slightly lower-than-expected third-quarter earnings on Thursday as weaker Canadian and US insurance and wealth management sales offset strong growth in Asia. Manulife, Canada's largest insurer, earns the bulk of its profit in North America but also has a fast-growing Asian unit. Wealth management sales fell 15 per cent in Canada and 6 per cent in the US. Insurance sales fell 19 per cent in the US, where Manulife owns John Hancock, and slumped 23 per cent in Canada.

Manulife said that insurance sales rose 46 per cent in Asia, while wealth management sales surged 74 per cent. Core Asian earnings, which excluded hedging costs and other items, increased 17 per cent. "The fundamental case for Asia is unchanged," CFO Steve Roder said, citing favourable economic and market trends. "I'm not suggesting we will maintain 17 per cent, but we'd expect to continue to see healthy growth in Asia."