Manulife Asia reports strong Q2 growth in core earnings and new business

Manulife Financial Corporation (Manulife) has released its second-quarter results for the period ending June 30 (Q2 2024), showcasing growth in core earnings, new business, and book value.

Key figures for the second quarter of 2024 include:

• core earnings of $1.7 billion, representing a 6% increase on a constant exchange rate basis from the second quarter of 2023 (Q2 2023)
• net income attributed to shareholders was steady at $1 billion, unchanged from the same period last year
• core earnings per share (EPS) increased by 9% from Q2 2023 to $0.91, while EPS rose by 1% to $0.52
• excluding the impact of global minimum taxes, core EPS was $0.94, reflecting a 12% increase from Q2 2023
• the core return on equity (ROE) was 15.7%, while ROE was 9%
• the life insurance capital adequacy test (LICAT) ratio was 139%
• annualised premium equivalent (APE) sales grew by 17%, new business contractual service margin (CSM) by 6%, and new business value (NBV) by 23% from Q2 2023
• net inflows for global wealth and asset management were $0.1 billion, down from $2.2 billion in the same period last year

The company also repurchased 31 million shares worth $1.1 billion as of July 31, with plans to buy back up to 90 million shares through the current normal course issuer bid (NCIB), representing a capital return exceeding $3 billion.

Manulife Asia Q2 2024 performance

Manulife’s Asia insurance operations reported robust performance, particularly in Hong Kong and Macau, with notable increases in core earnings, NBV, and APE sales for Q2 2024.

The rise in new business CSM contributed to the overall growth of Manulife’s Asia segment and its global business:

• Core earnings amounted to HK$1.9 billion, a 51% increase from Q2 2023.
• New business value reached HK$1.3 billion, up 23% from Q2 2023.
• APE sales were HK$2.4 billion, a 15% increase from Q2 2023.
• New business CSM was HK$1.1 billion, a 3% increase from Q2 2023.

Commenting on the results, Patrick Graham (pictured), CEO of Manulife Hong Kong and Macau, highlighted strong growth across multiple key performance metrics and initiatives that improved its offerings and services.

“In the second quarter of 2024, we are delighted to achieve strong growth across multiple key performance metrics, delivering record-level APE sales and NBV. We launched a series of initiatives to enhance our product offerings, further strengthen our distribution capabilities, and drive high-quality sustainable growth,” he said. “We introduced Genesis, a new participating life-insurance savings plan featuring several first-in-market attributes to help customers accelerate their long-term savings.

“Additionally, we invested in our body-mind-wealth proposition, enhancing holistic health and wellness for our customers through partnerships with PURE Group, a local yoga and fitness chain, and Mind HK, a local mental health charity. These initiatives underscore our achievements and commitment to innovation and growth. We look forward to building on this momentum and sustaining our business growth in the second half of the year.”

In the Hong Kong retirement market, Manulife retained its position as the largest Mandatory Provident Fund (MPF) provider, with a market share of 27.9% based on assets under management at the end of Q2, an increase of 0.6 percentage points from June 30, 2023.

Manulife Hong Kong also led in estimated net inflows, accounting for 35.4% of the market between April 1 and June 30, 2024.