THE DIS­PUTED NO. 1

National Post (Latest Edition) - Financial Post Magazine - - COMMENT -

Man­ulife Fi­nan­cial Corp. will take no plea­sure from jump­ing 18 spots on the FP500 rank­ing to be anointed Canada’s big­gest com­pany by rev­enue. In­deed, it might just be cause for more gnash­ing and grind­ing of teeth. The rea­son: Man­ulife does not be­lieve the $54.5 bil­lion it re­ported in rev­enue — more than $10 bil­lion higher than any other com­pany in Canada and a 192.5% in­crease from 2013 — is a fair rep­re­sen­ta­tion of its busi­ness op­er­a­tions be­cause the in­sur­ance in­dus­try has to do mark-to-mar­ket ac­count­ing, which means in­clud­ing re­al­ized and un­re­al­ized gains or losses (and other as­sets) in rev­enue. This causes large fluc­tu­a­tions in rev­enue for the sec­tor’s com­pa­nies. In ad­di­tion to Man­ulife’s big gain, Sun Life Fi­nan­cial Inc. re­ported an 85.7% in­crease in rev­enue to jump 14 spots to No. 13, and Industrial Al­liance In­sur­ance & Fi­nan­cial Ser­vices Inc.’s rev­enues soared 60.7% to land at No. 49, or 25 spots higher than last year.

#1MAN­ULIFE FI­NAN­CIAL CORP.

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