TORONTO — Manulife Financial Corp. says first quarter earnings were down from last year because of the effects of a major reinsurance deal.
The insurance giant says its net income attributed to shareholders for the quarter ending March 31 was $866 million, down from $1.4 billion in the same quarter last year.
It says the results include the $800 million impact from a $13-billion reinsurance deal with Global Atlantic that it says included the largest long-term care reinsurance deal in history.
Manulife says the net earnings hit of the deal was broadly offset by a boost to other comprehensive income to make it neutral to book value.
It says core earnings were $1.75 billion, up from $1.53 billion last year.
Manulife says the reinsurance deal was done to reduce risk and redirect capital to growth areas.
This report by The Canadian Press was first published May 8, 2024.
Companies in this story: (TSX:MFC)
The Canadian Press
