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Manulife Financial Corp.’s Asia enterprise posted additional beneficial properties, with robust insurance coverage gross sales in Japan and Hong Kong, offsetting decrease earnings in its U.S. division.
Manulife’s core earnings grew six per cent to $1.74 billion within the second quarter, or 91 cents per share, beating analysts’ estimates. The Asia unit led the way in which with a 40 per cent leap in revenue over the identical interval final 12 months, according to a statement Wednesday.
Core earnings in its wealth and asset administration enterprise grew 23 per cent, however the group noticed a slowdown in new enterprise. Net inflows have been simply $100 million — down from $6.7 billion within the first quarter — because it misplaced some retirement-savings belongings.
“We consider that the outcomes might be warmly acknowledged by the market and, regardless of its robust year-to-date efficiency, we might count on that MFC’s second quarter earnings might be supportive to its valuation,” Jefferies analyst John Aiken mentioned in a notice to shoppers.
Pulling again from risky and fewer worthwhile actions and lowering dangers are among the many insurer’s priorities, chief government Roy Gori mentioned throughout an investor day in June. The Canadian agency been utilizing reinsurance transactions to shed less-profitable blocks of enterprise, which frees up capital however can be a drag on earnings.
Manulife can also be counting on different funding methods to reduce volatility, akin to a US$16 billion wager on the timber trade.
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In the second quarter, core earnings within the Canadian section went up seven per cent, whereas the U.S. division slipped by 11 per cent.
Manulife executives will maintain a convention name on Thursday morning at 8 a.m. Toronto time.
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