HONG KONG, Nov. 8, 2018 /PRNewswire/ -- The Manulife group of
companies operating in Hong Kong ("Manulife Hong Kong") today reported financial results for the
third quarter and the first nine months of 2018, marked by strong growth and new records.
Results overview:
- Core earnings
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- Quarterly core earnings of HK$1.1 billion, up 15% from the third quarter of 2017
- Year-to-date core earnings of HK$3.4 billion, up 30% from the same period of 2017
Annualized premium equivalent (APE) sales
- Quarterly APE sales of HK$1.3 billion, up 12% from the third quarter of 2017
- Year-to-date APE sales of HK$3.6 billion, up 12% from the same period of 2017
- New business value (NBV)
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- Quarterly NBV of HK$865 million, up 17% from the third quarter of 2017
- Year-to-date NBV of HK$2.3 billion, up 28% from the same period of 2017
- Premiums and deposits
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- Record-high quarterly premiums and deposits of HK$18.3 billion, up 4% from the third
quarter of 2017
- Year-to-date premiums and deposits of HK$53.1 billion, up 15% from the same period of
2017
- Wealth and asset management gross flows
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- Quarterly wealth and asset management gross flows of HK$8.5 billion, up 1% from the third
quarter of 2017
- Year-to-date wealth and asset management gross flows of HK$24.8 billion, up 13% from the
same period of 2017
- Mandatory Provident Funds (MPF) market share increased to a new high of 23% based on assets under management as at
September 30, 2018 and was 36.5% in terms of estimated net cash flows for the period from
July 1 to September 30, 2018, further cementing its No. 1 MPF scheme sponsor position in the
market
- Agency force: up 13% over the previous year to a record high of 7,936 agents
"Manulife remains focused on customers and meeting their needs with tailored product solutions and enhanced customer
experiences. This customer-first strategy has brought us another quarter of solid growth," said Guy
Mills, Chief Executive Officer of Manulife Hong Kong. "At the same time, we have expanded the number of our agents to a
record level to offer customers stronger expert support they need to plan for their financial and protection needs."
Core earnings in the third quarter of 2018 rose to HK$1.1 billion, up 15% from HK$1.0 billion in the same quarter of 2017, mainly driven by business growth. Year-to-date core earnings in
2018 surged 30% to HK$3.4 billion from HK$2.6 billion in the same
period of 2017.
APE sales were HK$1.3 billion, an increase of 12% from HK$1.2
billion in the third quarter of 2017, driven by a successful product launch, continued success of critical illness product
and strong growth in agency force. Year-to-date APE sales in 2018 were HK$3.6 billion, up 12% from
HK$3.2 billion in the same period of 2017.
Third quarter NBV was HK$865 million, up 17% from HK$739 million
in the same quarter of 2017 due to higher sales and favourable product mix. Year-to-date NBV in 2018 was HK$2.3 billion, up 28% from HK$1.8 billion in the same period of 2017.
Total premiums and deposits increased by 4% to a record high of HK$18.3 billion from
HK$17.5 billion in the third quarter of 2017. Year-to-date premiums and deposits in 2018 increased
by 15% to HK$53.1 billion from HK$46.0 billion in the same period of
2017, attributable to growth in new business and higher renewal premiums.
Quarterly wealth and asset management gross flows increased to HK$8.5 billion, up 1% from
HK$8.5 billion in the same quarter of 2017, attributable to the growth in mutual funds
sales. Year-to-date wealth and asset management gross flows in 2018 increased by 13% to HK$24.8
billion from HK$21.8 billion in the same period of 2017.
Manulife has further strengthened its No. 1 MPF scheme sponsor position in Hong Kong, with a
market share of 23% in terms of assets under management as at September 30, 2018, and 36.5% in
terms of estimated net cash flows for the period from July 1 to September 30, 2018. "In the third
quarter, we completed the restructure of our MPF schemes, resulting in greater operational efficiency and savings which we have
been passing back to our MPF customers through a broad fee reduction," Mr. Mills added.
Manulife Hong Kong has been enhancing customer experiences with a host of digital solutions. About 40% of its eligible
customers are already using "claimsimple.hk", a simple, fast and convenient online claims platform launched since early 2018.
During the third quarter, the company further upgraded its electronic point of sales tools of its agency force to streamline the
policy purchase process, giving customers a better experience.
In the reporting quarter, Manulife Hong Kong garnered a number of prestigious awards. These included the "Insurance Company of
the Year -- MPF Provider, Hong Kong" at The Asset Triple A Asset Servicing,
Institutional Investor and Insurance Awards 2018, and two golds in the categories of Insurance Company and Provident Fund at the
Reader's Digest Trusted Brand Awards.
About Manulife Hong Kong
Manulife Hong Kong offers a diverse range of protection and wealth products and services to individual and corporate customers
via Manulife (International) Limited, Manulife Asset Management (Hong Kong) Limited and Manulife
Provident Funds Trust Company Limited, which are members of the Manulife group of companies.
About Manulife
Manulife Financial Corporation is a leading international financial services group that helps people make their decisions
easier and lives better. We operate primarily as John Hancock in the
United States and Manulife elsewhere. We provide financial advice, insurance, as well as wealth and asset management
solutions for individuals, groups and institutions. At the end of 2017, we had about 35,000 employees, 73,000 agents, and
thousands of distribution partners, serving more than 26 million customers. As of September 30,
2018, we had over C$1.1 trillion (HK$6.8 trillion) in assets
under management and administration, and in the previous 12 months we made C$27.6 billion in
payments to our customers. Our principal operations are in Asia, Canada and the United States where we have served customers for more than
100 years. With our global headquarters in Toronto, Canada, we trade as 'MFC' on the
Toronto, New York, and the Philippine stock exchanges and under
'945' in Hong Kong.
Notes:
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i.
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Manulife Hong Kong includes all our Hong Kong businesses including
insurance, insurance-based wealth accumulation products, and our wealth and asset management businesses.
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ii.
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All percentage changes are stated on a year-over-year basis, except for MPF
market share.
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iii.
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Core earnings for Manulife Hong Kong include insurance and insurance-based
wealth accumulation products, and exclude our wealth and asset management businesses. For a description of core
earnings, see "Performance and Non-GAAP Measures" in Manulife's Third Quarter 2018 Management's Discussion and
Analysis."
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iv.
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Annualized premium equivalent (APE) sales are presented to provide
consistency of scope for NBV disclosures and industry practice. APE sales consist of insurance and insurance-based wealth
accumulation products, and exclude our wealth and asset management businesses. They comprise 100% of regular
premiums/deposits sales and 10% of single premiums/deposits sales.
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v.
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Premiums and deposits is a measure of top-line growth and is the aggregate
of (i) general fund premiums, net of reinsurance, reported as premiums on Manulife's Consolidated Statements of Income,
(ii) segregated fund deposits, excluding seed money, ("deposits from policyholders"), (iii) investment contract deposits,
and (iv) mutual fund deposits.
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vi.
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New business value ("NBV") is the change in embedded value as a result of
sales in the reporting period. NBV is calculated as the present value of shareholders' interests in expected future
distributable earnings, after the cost of capital, on actual new business sold in the period using assumptions that are
consistent with the assumptions used in the calculation of embedded value. NBV excludes businesses with immaterial
insurance risks, such as Hong Kong's wealth and asset management businesses. NBV is a useful metric to evaluate the value
created by Manulife Hong Kong's new business franchise.
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vii.
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Wealth and asset management gross flows is a new business measure comprised
of all deposits into mutual funds and pension products. Gross flows is a common industry metric for WAM businesses as it
provides a measure of how successful the businesses are at attracting assets.
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viii.
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MPF market shares are measured by scheme sponsor share of asset under
management and net cash flows. Source: Table on p. 5 of Mercer MPF Market Shares Report as at September 30,
2018.
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SOURCE Manulife