Manulife Financial Corp. says a $2.8-billion post-tax charge related to U.S. tax reform as well as a decision to change its portfolio asset mix resulted in a $1.6-billion, or 83 cents per diluted share, net loss in the fourth quarter of 2017.

The company earned a net profit of $63 million, or a penny per share, in the year-earlier period, in which it declared a $1.2-billion charge related to the direct impact of markets.

Manulife CEO Roy Gori says the tax change that hit net income in the most recent quarter will benefit the company in the future, adding Manulife is “fully committed” to transforming its business to become a digital leader with stronger customer focus.

Read: See how Trump’s tax bill has affected two big banks

The financial services and insurance company says its quarterly dividend will increase 7% to 22 cents per common share, from 20.5 cents.

It says earnings before special charges in the fourth quarter were $1.2 billion or 59 cents per share, down 6% from $1.29 billion or 63 cents per share in the same period of 2016, due to lower investment gains. Strong growth in Asia business partially offset the lower gains.

For the year, Manulife says it had net earnings of $2.1 billion, or 98 cents per share, compared with $2.9 billion or $1.41 per share in 2016.

It says its core earnings before charges for 2017 were $4.56 billion, or $2.22 per share, up from $4.02 billion or $1.96 per share in 2016.

Read: U.S. tax changes to benefit Deutsche in future, CEO says after posting loss

Originally published on Advisor.ca
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