Manulife Financial Corp. showed a $1.2-billion profit in the first quarter of 2012—a 22% jump from the comparable period of 2011 and a sharp contrast to the $69-million loss it reported in the fourth quarter.
Revenue from premiums in the first quarter was relatively constant at $4.5 billion but investment income was down significantly. Total revenue, including investment income, dropped to $3.8 billion in the three months ended March 31, down from $7.1 billion in the first quarter of 2011.
“We entered 2012 with a solid foundation for growth,” said Donald Guloien, president and CEO of Manulife. “Our first quarter reflects strong markets, positive hedging results, 35% higher insurance sales, and stronger underlying earnings relative to the fourth quarter of 2011.”
The fourth quarter of 2011 included $577 million of losses attributed to a variety of special items. By contrast, special items contributed $592 million to the first quarter profit this year and $281 million in the first quarter of 2011.
Guloien added that the first quarter was “not without its challenges” including poor policyholder experience and slightly lower mutual fund sales.
The life insurance giant also announced yesterday the appointment of Steve Roder as senior executive vice-president and chief financial officer. Roder will oversee Manulife’s global financial affairs, including actuarial and capital management, treasury, controllership, taxation, financial regulation, investor relations and reinsurance activities. The appointment is expected to take effect in early June.
“I am pleased we have attracted an executive of Steve Roder’s calibre,” said Guloien. “Steve’s extensive experience in Asia, his hands-on experience in our core business, his impeccable career in public accounting and finance, and his well-known capability as a leader, communicator and straight-shooter were exactly the qualities we were looking for.”
From 2007 to 2010, Roder was CFO for AIA Group Ltd. Prior to that, Roder headed KPMG’s financial services practice in Asia.
Roder will succeed Michael W. Bell, whose departure was announced in February.