UPDATE 2-Manulife profit misses estimates on energy investments
(Adds comments from CFO and analyst, share price)
By John Tilak
TORONTO Feb 11 (Reuters) - Canadian insurer Manulife Financial Corp reported fourth-quarter earnings that missed market estimates on Thursday, hit by the impact of weak oil prices on its investments.
Oil prices have continued to plunge since the selloff began in 2014, and energy-sector investments have hurt the company's bottom line in three of the last four quarters.
Manulife, Canada's largest insurer, said it would be difficult to achieve its core earnings target of C$4 billion in 2016, citing "macroeconomic headwinds and energy price volatility."
The Toronto-based company recorded a charge of $361 million in the quarter, largely tied to its oil and gas investments.
Given the weakness in commodity prices this year, Manulife would probably take a charge in the first quarter as well, Chief Financial Officer Steve Roder said.
However, the company is not looking to reduce its exposure to the energy market and not likely to make any major changes to its oil and gas portfolio, he told Reuters in an interview.
"We think this could be a really good asset class for us over the next 10 years or so." Continued...