Manulife Holdings Bhd saw its net profit surge by almost 41 times during the first quarter of 2017. The insurer took in MYR4.62 million (US$1.08 million) for the quarter ended March 31, compared to just MYR113,000 (US$26,400) during the same period last year.
According to the insurer, the huge increase in income was due to strong returns in its investment holding and life insurance businesses. It also incurred lower net foreign exchange losses.
In a stock filing at Bursa Malaysia, Manulife said that its quarterly revenue grew 13% year-on-year, reaching MYR323 million (US$75.42 million) on the back of increased income, fee income, and higher net fair value gains.
It added that while the investment holding business’s operating revenue was mostly stable, it posted a lower loss before tax of MYR400,000 compared to MYR700,000 a year ago, due to better investment gains through disposal of equities.
Manulife expects both its insurance and wealth management businesses to bring in more revenue in the future.
“In addition, we believe there is a secular growth trend in Malaysia, supported by the under-penetration of life insurance coupled with a growing affluent population, which creates a need for investment and retirement solutions,” the insurer’s statement said.
Related stories:
Strong sales in Asia drive Manulife’s earnings
Manulife’s 3Q results surge by 79%
