Agency sales continued to grow year-over-year in 1Q21 vs a strong 1Q20
Bank channel sales significantly rebounded with successful product drive
The Manulife group of companies operating in Hong Kong ("Manulife Hong Kong") today announced strong results across key financial metrics for the first quarter of 2021, including double-digit growth in annualized premium equivalent (APE) sales.
"We're very proud to deliver an outstanding first quarter, with double-digit growth across core earnings, APE sales, and new business value (NBV). Considering the constraints from the pandemic, these strong results demonstrate the underlying strength and resilience of our business," said Damien Green, Chief Executive Officer of Manulife Hong Kong. "As pandemic restrictions started to ease in February, we saw sales activities quickly rebound across our distribution channels, especially in banks and our highly productive agency force."
First quarter results overview:
Core earnings up 17% to HK$1.7 billion
Annualized premium equivalent (APE) sales up 10% to HK$1.7 billio
New business value (NBV) up 18% to HK$1.1 billion
Number of agents: 10,690 at March 31, 2021, up 6% from the end of the first quarter of 2020
Mandatory Provident Funds (MPF) market share: Manulife Hong Kong was the largest MPF service provider with a record-high market share of 24.7% based on assets under management as at March 31, 2021, up 0.7 percentage point from the end of the prior year quarter. It had a 46.6% share based on estimated net cash flows for the period from January 1 to March 31, 2021.
"There has been an increasing demand for our saving plans and critical illness products, in addition to tax-deductible solutions. Our key saving products, the ManuGrand Saver series, emerged as a popular option for customers to build their wealth. In this quarter, our critical illness sales also jumped by almost 40%. Clearly people have a genuine need for both protection and wealth offerings in times of uncertainty, and that's where we can serve customers better with our health and retirement expertise," added Mr. Green.
Core earnings rose 17% to HK$1.7 billion from HK$1.4 billion in the same quarter of 2020, driven by higher new business volumes, favourable new business product mix, and in-force business growth.
APE sales were HK$1.7 billion, up 10% from HK$1.6 billion in the first quarter of 2020, primarily due to sales growth in the bank channel. This quarter also saw stronger sales from saving products and investment-linked assurance schemes.
NBV grew 18% to HK$1.1 billion from HK$1.0 billion in the prior-year quarter, attributable to higher sales and product management actions.
"Agency force remains our future growth driver, and we are well on track with our plans to expand this channel. Our recent signing of Hong Kong's largest Grade A office leasing deal in the past 20 months[1] showcases our unwavering ambition to accelerate agency growth. The newly rented office space at the International Trade Tower in Kowloon East will mainly be used as our agency offices," continued Mr. Green.
On its digital transformation, Manulife Hong Kong launched an enhanced electronic point of sales tool in January 2021 to empower its agency force. This digital sales tool has gained traction among its agency force with an adoption rate of 70% at the end of the first quarter. Manulife Hong Kong will continue to enhance customer experience by investing in digital technologies, with a fresh customer website and a mobile app set to launch in the coming months.
[1] Based on statistics of CBRE Hong Kong
Manulife Hong Kong reports strong results across key financial metrics for the first quarter of 2021, including double-digit growth in annualized premium equivalent (APE) sales.
Manulife Hong Kong reports strong results across key financial metrics for the first quarter of 2021, including double-digit growth in annualized premium equivalent (APE) sales.
About Manulife Hong Kong
Manulife Hong Kong, through Manulife International Holdings Limited, owns Manulife (International) Limited, Manulife Investment Management (Hong Kong) Limited and Manulife Provident Funds Trust Company Limited. As a member of the Manulife group of companies, Manulife Hong Kong offers a diverse range of protection and wealth products and services to individual and corporate customers in Hong Kong and Macau.