Manulife's (MFC) Q4 Earnings Rise Y/Y On Business Growth
Zacks Investment Research | Feb 12, 2020 10:47PM ET
Manulife Financial Corporation (NYSE:MFC) delivered fourth-quarter 2019 core earnings of $1.1 billion (C$1.5 billion), up 22.2% year over year. This upside can be attributed to in-force and new business growth in the United States, Hong Kong and Asia Other, progress in Global Wealth and Asset Management and the non-recurrence of market losses on seed money investments in the company’s surplus portfolio.
New business value in the reported quarter was $398.5 million (C$526 million), up 5.1% year over year on the back of Canada new business value and U.S. new business value.
Annualized premium equivalent (APE) sales were almost flat year over year, leading to $1.1 billion (C$1.5 billion).
As of Dec 31, 2019, Manulife Financial’s financial leverage ratio contracted 350 basis points (bps) to 25.1% from the level on Dec 31, 2018.
As of Dec 31, 2019, wealth and asset management assets under management and administration were $516.6 billion (C$681.4 billion), down 2.9% year over year.
Core return on equity, measuring the company’s profitability, is flat at 12.5%.
The Office of the Superintendent of Financial Institutions' new Life Insurance Capital Adequacy Test (LICAT) regulatory capital regime came into effect in Canada on Jan 1, 2018, replacing the Minimum Continuing Capital and Surplus framework. LICAT ratio was 140% as of Dec 31, 2019, down from 143% as of Dec 31, 2018.
Manulife Financial Corp Price, Consensus and EPS Surprise
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