Manulife Hong Kong readies for flood of demand from Chinese visitors
Strong group performance boosted by border opening between Macau and China.
Manulife Hong Kong and Macao (Manulife Hong Kong) reported a 17% increase to HK$7.4b ($950m) of its core earnings in 2021 compared to 2020 and an 18% increase to HK$2.1b ($270m) in Q4 2021 compared to the same quarter a year before, boosted by the opening of the border between Macau and China and strong demand from Chinese mainland visitors.
New business value increased to HK$4.8b ($620m) in 2021, up 32% from 2020, and HK$1.3b ($170m) in Q4 2021, up 27% from Q4 2020. NBV sales were driven by higher sales volume, favourable interest rates and product management actions.
Meanwhile, annual premium equivalent (APE) sales blew up to HK$6.6b ($850m) in 2021, up 10% from 2020, and HK$1.7b ($220m) in Q4 2021, up 11% from Q4 2020.
According to Damien Green, chief executive officer of Manulife Hong Kong after the border between Macau and mainland China re-opened, APE sales in Macau more than doubled in 2021 compared to 2020, with sales from mainland Chinese visitors comprising 60% of the total.
Green said the company is gearing up for cross-border travel to commence between Hong Kong and mainland China so they can meet the demand for insurance products from mainland Chinese visitors, specifically focusing on visitors from the Greater Bay Area.
“In order to help meet this demand, during the fourth quarter we accelerated our investment in both Hong Kong and Macau, opening new offices and upgrading our customer service centres, as well as appointing senior executives to drive our strategic priorities,” Green added.