Manulife’s second quarter net profit halved as insurer grapples with COVID-19 effects

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TORONTO – The managing director of Manulife Financial Inc. says COVID-19 had a significant impact on company performance in the second quarter, but is confident it will rebound.Roy Gori told analysts on Thursday that the pandemic negatively impacted sales and investments were generating lower than expected returns as several countries in which the Toronto-based insurer operates were closed to stop the spread of the novel coronavirus .

Gori says he is optimistic about the business as he believes it has delivered strong results and made significant progress in reducing the company’s risk in the face of economic challenges.

Gori’s remarks come a day after Manulife said COVID-19 hampered the company’s second quarter to the point that its net income fell to half of what it was during the same time period. last year.

The insurer said its net income attributable to shareholders for the period ended June 30 was $ 727 million, just under half of the $ 1.47 billion it earned in the second quarter of 2019.

Manulife’s diluted earnings per common share reached 35 cents for the period, down from 73 cents a year ago, but more than the eight cents per share expected by analysts.

This report by The Canadian Press was first published on August 6, 2020.

Companies in this story: (TSX: MFC)

The canadian press

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