read more: Despite Market Headwinds, Manulife Posts Strong Earnings in Q2 2022
“In fact, on a year-to-date basis, our Canadian and US segments delivered double-digit sales. [new business value] Increased sales and improved margins will drive growth,” Gori added.
Canada delivered 8.5% core profit growth in Q2 2022 to C$345 million, compared with C$314 million in the same period last year. According to Gori, the growth largely reflects an increase in favorable experiences in individual insurance and annuities, as well as higher compulsory income in the insurance business.
Canadian annual premium equivalent (APE) sales increased 32% to C$361 million from C$271 million in Q2 2021. Manulife is eyeing enhancements to its Canadian website, including artificial intelligence and natural language processing to enhance product search capabilities.
“We continue to advance our digital initiatives and strong digital capabilities and investments in excess of $850 million since 2018,” Gori said in the earnings call.
In the US, meanwhile, core earnings declined, primarily due to variable annuity (VA) reinsurance transactions completed in the first quarter. Excluding this transaction, Manulife said core earnings would have been up 2%.
The US business benefited from improved margins, higher international sales and higher interest rates. New business value (NBV) growth was 32%. International sales in the second quarter were at record levels, up 43% year-to-date.
“Overall, our global footprint, diversified business mix and proven digital capabilities, with a focus on operational resilience, place us uniquely positioned to continue to deliver strong long-term results. was made.”
Agent woes in Asia
Manulife’s sharp decline in sales force in Asia is one of the reasons for the slump in sales in the region. The number of agents in the ‘Asia Other’ category, which includes mainland China, Singapore, Vietnam and other emerging markets, was 86,329 in the second quarter, down 17% from 101,045 in the previous quarter.
The Toronto-based insurer attributes the decline to the impact of the lingering pandemic, the continued push for agency specialization, and the introduction of new product and sales practice regulations in China. But Manulife says he sees these as “short-term factors.”
According to Manulife Asia CEO Damien Green, changes in the workforce have impacted hiring during the pandemic in China and Vietnam. “During the recent wave of the pandemic, we have seen people return to their hometowns to support their families. However, we expect hiring to normalize as the market recovers,” he explained. did.
“We have a diversified multi-channel, multi-segment franchise, reaching customer segments, high-value, high-growth customer segments through multiple channels, from private banks to international high-net-worth brokers to mass-market agencies. provides access to the Asian segment, Green said.
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Gori emphasized that Manulife focuses on quality rather than agency size. “From the pre-pandemic levels of the last two and a half years, the MDRT (Million Dollar Round Table) CAGR, a measure of agency power, has grown 23%,” said the CEO. The Million Dollar Round Table is a global association of over 500 of the world’s leading life insurance and financial services professionals.
“Quality is more important, and the quality of our agency power has improved significantly. Another big strength of ours is the diversification of our channel mix.
Looking ahead, Manulife said it expects to see improvements as Asia as the rest of the world emerges from pandemic conditions. Mr Green said he is confident in achieving the medium-term core earnings growth target of 15% despite current challenges.
Manulife Chief Financial Officer Phil Wetherington said: “Our balance sheet remains strong and provides us with the financial flexibility to deliver on our strategic and capital deployment priorities.”
Manulife Shines Light on Latest Financial Peaks and Valleys
Source link Manulife Shines Light on Latest Financial Peaks and Valleys