November 8, 2018 13:30
Photo : Freepik
Manulife financial Corporation has recorded an increase of a little over 42 % of its net profit in the third quarter of 2018, reaching $ 1.57 billion (G$). In the same quarter of 2017, it was$1.1 billion.
“During the quarter, we again posted a profit from operations of basis and net income on solid, both of which have increased by over 10 % compared to the corresponding period of the previous fiscal year. We have also greatly increased the effectiveness of the equity of our traditional activities and we have recently announced the completion of three transactions that are expected to allow the release of equity greater than 1 billion us $ 2, ” said Roy Gori, president and chief executive officer of Manulife.
Declining sales in Canada
In Canada, the income derived from the activities of the base is set at $ 351 million (M %), a decrease of$ 52 Million (13 %) compared to the third quarter of 2017. However, the net profit attributed to shareholders reached $ 109 million ($M) in the third quarter of 2018, compared to 432 Million$ to the same period of last year. Manulife explained that it is fall corresponds to a net charge of$ 242 Million, compared with a profit of$ 29 Million in the third quarter of 2017.
Overall, the subscriptions, the equivalent of annualized premium decreased by 14% between the third quarter of 2018 and 2017. They were$ 245 Million, then they have reached 210 M$. Manulife attributes the decrease only by the ” variability inherent in the insurance market for groups of large size.” Indeed, the subscriptions for group insurance have decreased by 35 %, from$ 120 Million to$78 Million.
On the other hand, the subscriptions to the individual insurance experienced a growth of 18 % in the third quarter, to$ 78 Million. Manulife explained that this is due to a strong performance of its new product Life Manulife with participation after one quarter of activity.
The tax reform american benefits
In addition, the tax reform that the united states, which had led the insurer to report a loss of$ 1.6 billion in the fourth quarter of 2017, eventually enjoy. The balance sheet for the quarter, Manulife reported a product of$ 124 Million, which has not been accounting in the income from the basic activities, but that adds to its net profit of 1.57 G$.