(Bloomberg) -- Manulife Financial Corp. shares rose the most in two months after posting second-quarter earnings that topped analysts' estimates thanks in part to lower insurance claims in the U.S. and Canada.
Shares of Canada's largest life insurer rose as much as 5.4% in Toronto trading, their biggest intraday increase in two months. Manulife on Wednesday reported a 7.5% increase in core earnings to C$1.56 billion ($1.17 billion), or 78 Canadian cents a share, beating the 62-cent average estimate of 14 analysts in a Bloomberg survey.
Manulife's “better-than-expected results were driven by the U.S. and Canada on favorable policyholder experience,” RBC Capital Markets analyst Darko Mihelic said in a note to clients, citing gains from the U.S. long-term care business and in the Canada group business.
U.S. earnings led the growth, with a 37% surge from a year ago, followed by a 9.6% earnings jump from its Canadian division. Net income fell 52% to C$727 million after Manulife recorded losses of C$916 million from investments and C$495 million tied to interest rates, partly countered by improving equity markets.
©2020 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
