Manulife premiums up 38%

The combined growth for Manulife Philippines and Manulife Financial Plans remains consistent through the third quarter of 2003. New annualized premiums rose by 57 percent for the quarter and by 38 percent year-to-date. Likewise, the total number of agents for both entities increased by 48 percent versus the same period last year to 2,276 as of end September.

"Manulife launched a new pension and education product (Plan Right) that will, in time, serve as the new industry product standard as the country’s pension and education industry undergoes its long anticipated reform," Renato Vergel De Dios, president and chief executive officer of Manulife Philippines, said.

Plan Right and other forthcoming life products are positioned to strengthen the company’s market share and help attain our productivity and profitability goals, he added.

This quarter, the integration of CMG Life with Manulife was completed with the final conversion of all CMG policy files under the Manulife administration system. Also in the third quarter, Manulife Philippines‚ head office moved to its new home along Ayala Ave. in Makati City.

"The final quarter of 2003 will see the realization of operating efficiencies arising from back office synergies achieved by integrating the administrative operations of both Manulife Philippines and Manulife Financial Plans," Vergel De Dios added.

Parent company Manulife Financial Corp. reported a five- percent growth for total premiums and deposits for the quarter to $7.4 billion. Funds under management grew by an additional $6.5 billion to $150.8 billion or five percent from second quarter levels and by eight percent compared to a year ago. "Higher sales in the North American insurance businesses, growth in Asia and the turnaround in the equity markets contributed to the growth," it said. Shareholders‚ net income grew to $396 million for the third quarter of 2003. The 21-percent year-over-year increase in earnings was attributable to the impact of business growth, an improved expense position and favorable equity markets. The continued rally in the equity markets in the third quarter had a positive influence on segregated fund guarantees, fee revenue and investment income.

Earnings per common share increased by 23 percent to $0.85 from $0.69 reported in 2002. Return on common shareholders‚ equity for the quarter was 17.9 percent compared to 15.2 percent for the same period last year.

However, currency exchange rates, particularly the depreciation of the U.S. dollar and Japanese yen, had a dampening impact on results in the quarter. The estimated impact of currency movements on the translation of shareholders‚ net income, premiums and deposits, and funds under management were declines of $25 million, $650 million, and $14.5 billion, respectively, compared to a year ago.

Manulife Financial president and chief executive officer Dominic D‚Alessandro said in a statement that the strong organic growth in its core markets as a result of its ongoing focus on expanded distribution, new and innovative products and superior customer service produced dividends.

"Our recently announced intention to merge with John Hancock provides a tremendous opportunity to build on our already strong base," D‚Alessandro added.

Last month, Manulife Financial Corp. and John Hancock Financial Services Inc. merged operations creating a leading global insurance franchise. The merger is expected to close in the second quarter of 2004. Manulife Indonesia made two acquisitions in the third quarter. It acquired Zurich Financial and PT ING-Aetna Life Indonesia significantly increased its customer base and agency force. Manulife-Sinochem, Manulife‚s joint venture in China, was recently granted a branch license for Beijing. It has been an industry pioneer since it began operations in Shanghai in 1996. Today, it is a major player in China‚s insurance market with more than 3,300 agents serving more than 200,000 customers in Shanghai and Guangzhou.

Third quarter premiums and deposits were $7.4 billion in 2003, up five per cent compared to $7.1 billion in the third quarter of 2002. Premiums and deposits increased by approximately 15 per cent after excluding the impact of a strengthened Canadian dollar. This increase was driven by sales of variable annuity products in the U.S. and Japan and wealth management products in Canada, the U.S. and Asia, partially offset by reduced Reinsurance premiums.

Funds under management increased by eight percent to $150.8 billion as at September 30, 2003 compared to $139.2 billion in the same period last year. General fund assets decreased by three percent to $78.4 billion from a year ago as business growth was more than offset by a $6.6 billion decline due to a strengthened Canadian dollar.

Segregated fund assets increased to $65.4 billion from $54 billion as at September 30, 2002. Strong net policyholder cash flows of 401(k) and annuity products in the U.S. and positive net segregated fund cash flows in Canada over the past 12 months were partially offset by the $7.7 billion reduction caused by a strengthened Canadian dollar.

Total capital increased to $12.3 billion as at September 30, 2003 compared to $11.8 billion last year. This increase was primarily the result of net income in the past 12 months and the issuance of $350 million of preferred shares in the second quarter, partially offset by shareholder dividends, the repurchase of four million common shares for $130 million in the fourth quarter of 2002, and the negative impact of a strengthened Canadian dollar.