Manulife Financial announces record annual and quarterly results

TORONTO Manulife Financial Corporation reported record shareholders net income of $1,378 million for 2002, an increase of 19 per cent over 2001. Earnings per share were $2.90 in 2002, compared to $2.40 reported for 2001, an increase of 21 per cent. Return on shareholders equity for the year was 16.2 per cent, exceeding the Companys target of 16 per cent. The record results were driven by good business growth, excellent expense management and favourable claims experience in several businesses.

Fourth quarter 2002 shareholders net income of $372 million was also at a record level and was 11 per cent higher than the same period in 2001. Earnings per share were $0.80, an increase of 15 per cent from last year. Return on shareholders equity was a strong 17.2 per cent this quarter. Business growth, improved margins and favourable group claims experience were the primary drivers of the increase in earnings.

Total premiums and deposits of $7.4 billion for the fourth quarter and $29.9 billion for the full year increased by eight per cent and 16 per cent, respectively, over the comparable prior year periods. Funds under management were $146.2 billion as at December 31, 2002, compared to $142.2 billion a year ago.

We are pleased to report our ninth consecutive year of record results, particularly given the very challenging environment in 2002, said Dominic DAlessandro, President and Chief Executive Officer of Manulife Financial. Our diversity across businesses and geographies has mitigated the impact of weak economic conditions and poor equity markets on both our sales and earnings. In many businesses, we experienced an increase in market share, added Mr. DAlessandro.

A strong improvement in the market value of our telecom holdings was particularly welcome, said Peter Rubenovitch, Executive Vice President and Chief Financial Officer. While we will continue to be influenced by our external environment, we are confident that Manulife Financial is very well-positioned to again deliver strong results in 2003.

Manulife makes offer to Canada Life shareholders
On December 27, 2002 Manulife made an offer to purchase all of the outstanding common shares of Canada Life, offering their shareholders a 30 per cent premium above the weighted average market price for Canada Life shares during the 20 trading days preceding the December 9 announcement of the offer and more than double the price for shares acquired at the time of Canada Lifes demutualization in late 1999. Canada Lifes shareholders have the opportunity to participate in the creation of the largest and strongest insurance company in Canada, said Mr. DAlessandro. We believe no other company is a better strategic fit with Canada Life than Manulife Financial.

FINANCIAL PERFORMANCE

Financial Highlights
(unaudited)

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