The fall was mainly caused by the impact of a changing interest rates yield curve and the cost of integrating recently acquired businesses, said in a statement.

Core earnings, it said, were C$902 million, up by C$201 million from a year earlier.

On the wealth and asset management side, Manulife said it generated net wealth flows of C$14.5 billion, more than double second quarter 2014 levels. Gross flows were C$34.9 billion, up 74 per cent from Q2 2014 (up 61 per cent when recently acquired business effects are taken out).

Asia achieved gross flows of more than double Q2 2014 levels, driven by successful fund launches in mainland China and a successful pension marketing campaign in Hong Kong, the firm said. Canadian gross flows increased 64 per cent, driven by strong mutual fund deposits, large-case group retirement activity and the recent acquisition of the Canadian-based operations of Standard Life. US gross flows increased 11 per cent, driven by the inclusion of New York Life’s retirement business and the second highest quarterly gross flows at John Hancock Investments.

Global wealth and asset management achieved C$475 billion in assets under management and administration, lifting company assets under management and administration to C$883 billion.

The firm said it achieved “other wealth sales" of C$1.8 billion in the second quarter of this year, double prior year levels (up 59 per cent excluding recent acquisitions). Other wealth sales in Asia more than doubled driven by expanded distribution of the recently launched single premium wealth accumulation product in Japan, while Canada benefited from the inclusion of Standard Life’s segregated fund business, it said.