Back to top

Analyst Blog

Canadian life insurer Manulife Financial Corp. (MFC - Analyst Report) reported third-quarter 2012 operating earnings of $558.3 million (C$556 million). The company’s results exceeded the income of $596 million (C$583 million) reported in the prior-year quarter.

During the quarter under review, Manulife’s Insurance sales declined 8% year over year due to the non-recurrence of a U.S. event in the prior year. The company delivered record insurance sales in South East Asia driven by record sales in Indonesia, as well as solid sales in Affinity in Canada and John Hancock Life in the U.S.

In the quarter, Manulife witnessed a 4% increase in wealth sales on a year-over-year basis and once again posted record funds under management ("FUM") of $515 billion, despite the challenging macroeconomic environment.

Total funds under management as of September 30, 2012, came in at $523.0 billion (C$514.6 billion) in the reported quarter, up 2.7% year over year.

Assets managed by Manulife Asset Management climbed 10% year over year to $231.2 billion (C$227.5 billion) on September 30, 2012.  

The Manufacturers Life Insurance Company’s consolidated regulatory capital ratio or Minimum Continuing Capital and Surplus Requirements (“MCCSR”) was reported at 204% as of September 30, 2012, reflecting a decline from 213% as of June 30, 2012. The MCCSR ratio was lower than the previous quarter largely due to the net loss in the quarter under review and an increase in required capital for asset and segregated fund guarantee risks.

Results for the nine months ended 2012 shows that Manulife has achieved a lot through its long-term strategic initiatives such as developing its Asian footprint, growing Asset and wealth management business in the U.S., Canada and Asia, working hard toward building its Canadian market share, and focusing more on higher returns and low-risk U.S. businesses.

Manulife’s peer, Sun Life Financial Inc. (SLF - Analyst Report) reported operating earnings of $406.7 million (C$405 million), up from $375.2 million (C$379 million) in the previous quarter.  

Manulife currently retains a Zacks # 3 Rank, which translates into a short-term Hold rating. We are also maintaining our long-term ‘Neutral’ recommendation on the shares.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
TRIQUINT SE… TQNT 20.67 +6.52%
RF MICRO DE… RFMD 12.47 +6.04%
VASCO DATA… VDSI 14.77 +4.68%
STRATTEC SE… STRT 80.24 +3.00%
PATTERSON-U… PTEN 34.54 +2.98%