THE DISPUTED NO. 1
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.