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Canada's Manulife Q3 profit beats estimates

By Reuters News


Overview

  • Canada insurance and financial services firm's Q3 adjusted EPS beat analyst expectations

  • Adjusted net income for Q3 also beat analyst expectations

  • Net income fell 22% yr/yr, mainly due to market experience losses and Vietnam charges


Outlook

  • Manulife did not provide specific financial guidance for the current or future periods


Result Drivers

  • ASIA GROWTH - Double-digit core earnings growth in Asia driven by continued business expansion and improved claims experience, partially offset by higher expected credit loss provisions

  • MARKET EXPERIENCE LOSSES - Net income declined due to lower than expected returns on alternative long-duration assets and public equities, as well as losses from derivatives and hedge accounting ineffectiveness

  • ACTUARIAL REVIEW IMPACT - Annual review of actuarial methods and assumptions had a net favourable impact on core earnings, but also resulted in a decrease in pre-tax net income attributed to shareholders


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Adjusted EPS

Beat

C$1.24

C$1.18 (12 Analysts)

Q3 EPS

C$0.82

Q3 Adjusted Net Income

Beat

C$2.13 bln

C$2.003 bln (7 Analysts)

Q3 Adjusted ROE

17.80%

Q3 ROE

11.80%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the life & health insurance peer group is "buy"

  • Wall Street's median 12-month price target for Manulife Financial Corporation is C$67.50, about 7.5% above its November 3 closing price of C$62.80

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • Nov 3 - Canadian insurer Intact Financial Q3 adj EPS misses estimates

  • Nov 4 - MetLife's Q3 results beat estimates on volume growth, solid underwriting

  • Nov 3 - AIG Q3 net premiums written rise on commercial, personal insurance growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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