Manulife battered by US storm payouts as third-quarter profit slips
Robust earnings in Asia were eroded by hefty compensation payouts for property damage caused by the spate of hurricanes in the US
The succession of storms in the US this year has taken its toll on Canadian insurer Manulife Financial Corporation, which saw its third-quarter profit drop 1 per cent despite strong Asian sales growth.
Robust earnings in Asia were eroded by hefty compensation payouts for property damage caused by the spate of natural catastrophes in the US.
Manulife, which is listed in Hong Kong, Toronto and New York, reported profit of C$1.105 billion (US$866.98 million) on Thursday morning, or C$0.54 per share, during the three months to the end of September.
That is down 1 per cent from a year earlier but still above market expectations of profit growth of C$1.019 billion, according to the consensus estimate of analysts polled by Bloomberg.
“Our third-quarter results include a provision of C$240 million for the estimated financial impact
on our property and casualty reinsurance business from the significant damage caused by hurricanes Harvey, Irma and Maria. This marks our first significant loss in this business since 2011,” said Steve Roder, chief financial officer of Manulife, in the results statement.