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Manulife Financial headquarters in Toronto. The company reports earnings on Thursday.
Manulife Financial headquarters in Toronto. The company reports earnings on Thursday.
(KEVIN FRAYER/Canadian Press)

Analyst changes tune on impact of Manulife’s U.S. tax court case

The cost of a multimillion-dollar defeat in U.S. tax court to Manulife Financial Inc.’s U.S. subsidiary is “immaterial” to the insurer, says an RBC analyst, softening his earlier position.

While it initially appeared that the company had set aside reserves to prepare for such a decision, analyst André-Philippe Hardy of RBC Dominion Securities Inc. wrote in a note to clients that there may be about $200-million in outstanding risk. (Streetwise reported yesterday on John Hancock Life Insurance Co.’s use of leveraged leases and its U.S. Tax Court case with the Internal Revenue Service.)