Manulife Financial Corporation (MFC) announced on Nov. 8 net income of $1,105 million for the third quarter of 2017 compared with $1,117 million for the same quarter of 2016.
The Q3 2017 results include “a provision of $240 million for the estimated financial impact on our Property and Casualty Reinsurance business from the significant damage caused by hurricanes Harvey, Irma and Maria," stated Steve Roder, MFC’s Chief Financial Officer. “This marks our first significant loss in this business since 2011."
MFC generated core earnings of $1,085 million in the third quarter of 2017, compared with $996 million for the same quarter last year.
Growth drivers maintained momentum
Roy Gori, Manulife’s President & Chief Executive Officer, said "We delivered solid core earnings and net income in the third quarter, particularly given the provision for catastrophe claims. He added, “Our growth drivers maintained their momentum, with double-digit core earnings and new business value growth in Asia and the 31st consecutive quarter of positive net flows in our global Wealth and Asset Management business."
In its announcement, Manulife noted that its provisions for estimated losses relating to hurricanes Harvey, Irma and Maria are based on a preliminary assessment. “It is too early to determine the final financial impact of these loss events to Manulife given how recently they occurred and their magnitude,” stated the company.
Last week, in its Q3 2017 results, Great-West Lifeco also announced hurricane-related losses.
In Q3 2017, Manulife’s Canadian division insurance sales amounted to $186 million, an increase of $5 million compared to the same quarter of 2016. Manulife noted that, “higher sales in the small and mid-market group benefits segments were largely offset by lower retail insurance sales due to pricing actions and higher prior year sales in advance of regulatory changes.”