Second-quarter profits at Manulife Financial Corp. (TSX:MFC) edged toward the $1 billion mark as net earnings climbed 14 per cent, the insurance giant reported Thursday.

The financial services company attributed its record performance in part to strong life-insurance sales in the United States.

Premiums and deposits totalled $15.9 billion, an increase of 10 per cent, the company said.

Manulife also cited strong wealth-management sales in the United States, Hong Kong and Japan.

Profits reached $960 million, while earnings per common share rose 17 per cent to 61 cents year over year.

The strong showing came despite weaker equity markets, a "somewhat unfavourable" claims experience, and exchange rate changes that created a $29 billion drag on earnings.

Total funds under management rose slightly to $370 billion as at June 30, an increase of two per cent or $6 billion from one year ago.

"The quality and diversity of our businesses are again evident in our top and bottom line results," Dominic D'Alessandro, president and CEO said in a statement.

"Also of note: We returned more than $1.2 billion of capital to common shareholders in the second quarter through the repurchase of 25.7 million shares and our regular quarterly dividends."

The company declared a quarterly shareholders' dividend of 17.5 cents per share on the common shares.

_______________________________________________________________

© 1997-2006 Rogers Media Inc. - Publishing. All rights reserved.