Manulife Financial Asia segment stands out in Q2
The Canadian insurer’s Asia segment saw a surge in new business value of up to 48% in Q2.
Manulife Financial saw a surge in new business value of up to 48% in the second quarter (Q2) in Asia driven by higher sales volumes in Asia Other (excludes Japan and Hong Kong), favourable interest rates, higher sales volumes and product management actions in Hong Kong and expense management actions and favourable product mix in Japan due to a shift away from lower margin corporate-owned life insurance (COLI) products.
Additionally, Manulife also saw a rise in its annualized premium equivalent (APE) sales by 34%, driven by growth in its Asia Other and Hong Kong segments, partially offset by lower sales in Japan.
According to Manulife, whilst COVID-19 impacts on sales have moderated, there continue to be varying degrees of adverse impacts on select markets across the region.
“Asia Other APE sales increased 66%, driven by higher sales with double-digit growth in both bancassurance and agency channels. In Hong Kong, APE sales increased 7% reflecting continued strong domestic demand and emerging demand from mainland Chinese visitors. In Japan, APE sales declined 4% as a result of lower COLI product sales,” Manulife said.
In total, Manulife recorded earnings of up to CA$1.7b ($1.36b) in Q2 2021, an increase of 18% compared to the same period last year.
According to Manulife President and CEO Roy Gori, the results of this quarter showcased the strength of the company’s Asia and Global wealth and asset management (WAM) business
“Our strong momentum continued in the second quarter, as we delivered record core earnings of CA$1.7b, up 18% from the prior-year quarter, driven by double-digit growth in our highest potential businesses and net income of CA$2.6b. Net book value increased 57% year-on-year (YoY), with strong contributions from all geographies and core earnings before interest, taxes, depreciation, and amortization margin increased 4 percentage points YoY, contributing to core earnings growth of 62% in Global WAM. Our results this quarter showcase the strength of our Asia and Global WAM businesses which underpin the next phase of our strategy,” said Gori.