Manulife net income up 34%; Great-West Lifeco raises dividend 6%

Two insurers have reported financial results.

For 2016, Manulife Financial Corporation (MFC) has reported net income attributed to shareholders of $2.93 billion, fully diluted earnings per common share (EPS) of $1.41 and return on common shareholders’ equity (ROE) of 7.3%, compared with $2.19 billion, $1.05 and 5.8%, respectively, for 2015.

The increase in net income attributed to shareholders reflects growth in core earnings, and a turnaround in investment-related experience partially offset by an increase in charges related to the direct impact of markets.

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In 2016, MFC generated core earnings of $4.02 billion, core EPS of $1.96 and core ROE of 10.1%, compared with $3.43 billion, $1.68 and 9.2%, respectively, for 2015.

In the fourth quarter of 2016, net income attributed to shareholders was $63 million, EPS was $0.01 and ROE was 0.3%, compared with $246 million, $0.11 and 2.3%, respectively for the fourth quarter of 2015.

In the fourth quarter of 2016, net income attributed to shareholders includes charges of $1,202 million due to the direct impact of markets. For the quarter, MFC generated core earnings of $1.29 billion, core EPS of $0.63 and core ROE of 12.9%, compared with $859 million, $0.42, and 8.7%, respectively, for the fourth quarter of 2015.

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Great-West Lifeco earnings

Great-West Lifeco (GWL) has also reported earnings.

The company has declared a quarterly common dividend of $0.3670 per common share payable March 31, 2017 — a 6% increase from the third quarter.

For the quarter, net earnings attributable to common shareholders were $676 million or $0.686 per common share. This compares to $683 million or $0.688 per common share for the same period in 2015.

Included in GWL’s net earnings for the fourth quarter of 2016 are restructuring costs related to a realignment of Putnam Investments of $20 million. Excluding these costs, GWL’s net earnings for the fourth quarter of 2016 were $696 million or $0.707 per common share.

For the twelve months ended December 31, 2016, net earnings were $2,641 million compared to $2.76 billion for the same period in 2015. This represents $2.668 per common share for the twelve months ended December 31, 2016, compared to $2.774 per common share for the same period in 2015.

Consolidated assets under administration at year-end were more than $1.2 trillion, an increase of $36 billion from December 31, 2015.

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