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C$ unless otherwise stated
Substantive progress made on growth strategies in the first quarter of 2014:
- Developing our Asian opportunity to the fullest - Improved momentum in insurance sales1 with a significant increase in
Japanand double digit growth in most other territories supported by new product launches and marketing efforts; and wealth sales continued to be at the levels seen in the second half of last year, down from the first half of last year, as rising interest rates and market uncertainty continued to impact some markets.
- Growing our wealth and asset management businesses around the world - Our 22nd consecutive quarter of record funds under management1; Manulife Asset Management reported strong results including: record institutional advisory assets under management; new mandates in
Asiaand North America; and with the majority of public asset classes outperforming their benchmarks on a 1, 3, and 5-year basis.
- Building on our balanced Canadian business - Continued momentum in mutual fund sales and strong group pension sales drove record wealth sales; retail insurance sales increased due to our actions to improve our competitive positioning; and
Manulife Banklending volumes declined reflecting slowing consumer credit and aggressive rate competition.
- Continuing to drive sustainable earnings and opportunistic growth in the U.S. - Record mutual fund sales and funds under management; 10th consecutive quarter of positive net mutual fund sales; Retirement Plan Services sales declined reflecting competitive pressures, but reported meaningful sales in the new mid-market product; and insurance sales slowed reflecting prior year pricing actions, however recently introduced product enhancements and more competitive prices are expected to improve sales momentum2.
"We also generated strong investment-related experience reflecting our high quality portfolio and disciplined approach to extending credit and other investment activities," added
|1||This item is a non-GAAP measure. See "Performance and Non-GAAP Measures" below.|
|2||See "Caution regarding forward-looking statements" below.|
Highlights for the First Quarter of 2014:
- Reported net income attributed to shareholders of
$818 millionfor 1Q14. This compares with net income of $540 millionfor the quarter ended March 31, 2013("1Q13"). Our 1Q14 net income benefited by $275 millionfrom strong investment-related experience which was partly offset by the negative impact of market-related factors totalling $90 million.
- Generated core earnings of
$719 millionin 1Q14, an improvement of