Manulife Financial Corporation has posted a net income attributed to shareholders of C$622m for the third quarter of 2015, down 43% compared with C$1.1bn for the corresponding period in 2014.
The company attributed the decline in net income to shareholders to fair value losses related to oil and gas investments in the third quarter of 2015 compared with overall strong investment-related experience in the third quarter of 2014.
Excluding investment-related experience, core earnings grew by 31 % compared to the third quarter of 2014, reflecting $47m related to recent acquisitions.
The group’s wealth and asset management businesses generated net flows of C$4.5bn, an increase of C$2.1bn from the third quarter of 2014 levels.
The division reported C$477bn in assets under management marking 23rd consecutive quarter of positive net flows.
The group’s wealth and asset management division also launched a UCITS fund structure to support its institutional asset management expansion into the European market.
Manulife Financial president and CEO said: "We delivered strong operating results in the third quarter, including double digit growth in insurance sales and positive net flows in our wealth and asset management businesses. Core earnings increased 31% from the prior year, before giving effect to investment – related impacts, and 15% including these impacts. Net income was negatively impacted by investment experience, principally oil and gas valuation changes, as well as the charges associated with our annual actuarial review."