Manulife Financial Reports First Loss Since It Publicly Listed In 1999

December 2, 2008 12:53 p.m. EST

Toronto, Ontario (AHN) - Major Canadian insurer Manulife Financial Corporation announced Tuesday it is expecting a $1.5 billion loss for the fourth fiscal quarter. It will be the first loss for the insurance firm since it was publicly listed in 1999.

Following the disclosure, Manulife stocks dipped by 5.13 percent or $1.05 in the early morning trading to $19.41.

To boost the company's capital, Manulife will issue $2.125 billion common shares at $19.40 per stock.

In a statement, Dominic D'Alessandro, chief executive officer of Manulife, said, "These transactions provide us with the flexibility to absorb the accounting impact of future volatility in financial markets and, as importantly, will allow us to take advantage of acquisition opportunities that are emerging out of the current industry environment."

Despite its loss, Manulife is still interested in acquiring shares of the American International group and other American life insurance firms financially challenged by the global economic crisis.

Alessandro added Manulife will cut its credit facility made earlier with Canadian banks to $2 billion from $3 billion.