Manulife Financial has reported a net loss attributed to shareholders of CAD2.4bn for the second quarter of 2010, equating to a fully diluted loss per share of CAD1.36, compared to a net income of CAD1.8bn or CAD1.09 per share for the same quarter of 2009.
Premiums and deposits for the insurance businesses amounted to CAD5.3bn for the second quarter of 2010, representing an increase of 3% over the prior year, on a constant currency basis.
Total revenue for the second quarter increased to CAD11.9bn, from CAD11.4bn from the corresponding quarter of 2009.
Total capital was CAD32.3bn as at June 30, 2010, CAD1.2bn higher than CAD31.1bn as at June 30, 2009.
Donald Guloien, CEO of Manulife Financial, said: “Our results for the second quarter were disappointing. Lower equity markets and historically low interest rates resulted, on a Canadian GAAP basis, in large non-cash charges in the form of mark-to-market increases to our reserves for policyholder liabilities.
“Repositioning of the business is underway. Over several quarters we have been making progress on rebalancing our business mix, re-pricing and re-designing some products to reduce risk, and dramatically accelerating the growth of others. We are building positive sales momentum, particularly in Asia and Canada and in the Retirement Plan Services and Mutual Fund businesses in the US.
“We are taking difficult decisions over the course of this year to better position the company for the future. I believe we are taking the right actions to improve earnings to highly satisfactory levels over the coming years, even assuming today?s low interest rates and no more than normal equity market returns. We expect to share more details on our progress and our plan with investors in the fall.”