Tuesday, October 14, 2008

Manulife to take $250M Q3 charge

Manulife to take $250M Q3 chargeThree-month TSX trading in Manulife

Canada's largest insurance company is expecting to take a $250-million charge in the third quarter because of the ongoing financial crisis, Manulife Financial said Monday.

It had earlier revealed it had about $1.4 billion in exposure to troubled U.S. financial companies.

The $250-million charge includes $50 million from higher reserves for losses following credit downgrades on bonds and other investments it owns.

But Dominic D'Alessandro, president and CEO, insisted the company is in good financial shape. "Manulife remains conservatively reserved, has a high-quality balance sheet and strong and leading business franchises around the world," he said in a release.

Manulife stock fell $3.61 Friday to $26.63 on the TSX, and lost $9.84 last week overall as the markets crashed.

There was no trading in Toronto on Monday because of the Thanksgiving holiday.



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