For Immediate Release
November 7, 2019
TSX/NYSE/PSE: MFC SEHK: 945
Hong Kong – The Manulife group of companies operating in Hong Kong (“Manulife Hong Kong”) today reported strong results for the third quarter and first nine months of 2019.
o Record-high quarterly core earnings of HK$1.5 billion, up 28% from the same quarter of 2018
o Year-to-date core earnings of HK$4.2 billion, up 24% from the same period of 2018
o Record-high quarterly APE sales of HK$2.1 billion, up 58% from the same quarter of 2018
o Year-to-date APE sales of HK$4.9 billion, up 37% from the same period of 2018
o Record-high quarterly NBV of HK$1.3 billion, up 55% from the same quarter of 2018
o Year-to-date NBV of HK$3.0 billion, up 32% from the same period of 2018
o Record-high quarterly WAM gross flows of HK$10.7 billion, up 26% from the same quarter of 2018
o Year-to-date WAM gross flows of HK$26.8 billion, up 8% from the same period of 2018
“We had another outstanding quarter with record-high financial results,” said Guy Mills, Chief Executive Officer of Manulife Hong Kong. “Tax-deductible solutions, with their protection and tax benefits, continued to fuel new growth across all distribution channels. Once again, it shows that our unique position as a one-stop, go-to expert for all tax-deductible offerings makes us a top choice for many. Our agency force is scaling up fast, enabling more customers to benefit from our professional advice and personalized health and retirement solutions.”
As a result of new business and in-force growth, third quarter core earnings reached HK$1.5 billion, up 28% from HK$1.1 billion in the same quarter of 2018. Year-to-date core earnings increased 24% to HK$4.2 billion from HK$3.3 billion in the same period of 2018.
APE sales increased 58% to HK$2.1 billion from HK$1.3 billion in the same quarter last year. The strong growth in APE sales was driven by the success of Manulife’s recently-launched Voluntary Health Insurance Scheme (VHIS) and Qualifying Deferred Annuity Policy (QDAP) products, as well as participating products launched at the beginning of this year. Year-to-date APE sales were HK$4.9 billion, up 37% from HK$3.6 billion in the same period of 2018.
NBV grew 55% to HK$1.3 billion from HK$0.9 billion in the same quarter last year. Year-to-date NBV reached HK$3.0 billion, up 32% from HK$2.3 billion in the same period of 2018. New business volume increased on the back of strong channel expansion, and the success of the QDAP and VHIS products.
Quarterly WAM gross flows increased 26% to HK$10.7 billion from HK$8.5 billion in the same quarter of 2018, as mutual fund sales quadrupled and pension fund gross flows remained steady. Year-to-date WAM gross flows rose to HK$26.8 billion, up 8% from HK$24.8 billion in the same period of 2018.
Manulife is one of a few insurers to offer its customers a full suite of tax-deductible solutions. These solutions include the Manulife Shelter VHIS Standard Plan and the Manulife First VHIS Flexi Plan, the MPF Tax Deductible Voluntary Contributions (TVC) account, and QDAP product.
Manulife’s VHIS offerings stand out with a fully digital purchasing and claims experience. Customers can choose to buy the Manulife Shelter VHIS Standard Plan directly from BuySimple.hk, Manulife’s online sales platform. Medical claims can be submitted in less than one minute using the fast eClaims solution, ClaimSimple.hk.
To meet growing demand for retirement solutions, Manulife in October launched a new QDAP product, ManuLeisure Deferred Annuity. This tax-deductible annuity enables those as young as 18 years of age to start investing towards their future with flexible plan options, and it incorporates unique features that include premium holiday and critical illness benefits.
Manulife was recently honoured in four categories at the Hong Kong Insurance Awards 2019, including top award for “Outstanding MPF/Employees’ Benefit Product/Service” and “Outstanding Equal Opportunity Employers”. Organized by the Hong Kong Federation of Insurers, this award programme is one of the most prestigious annual recognitions in Hong Kong’s insurance industry.
During the reporting quarter, Manulife also won a number of top prizes from the Headline No.1 Awards 2019 and Next Magazine Top Service Awards, with its QDAP, VHIS, MPF products and services, critical illness cover and savings plans. These accolades reaffirm the company's reputation as a leading insurance and pension provider in Hong Kong.
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.
Manulife Financial Corporation is a leading international financial services group that helps people make their decisions easier and lives better. With our global headquarters in Toronto, we operate as Manulife across our offices in Canada, Asia, and Europe, and primarily as John Hancock in the United States. We provide financial advice, insurance, as well as wealth and asset management solutions for individuals, groups and institutions. At the end of 2018, we had more than 34,000 employees, over 82,000 agents, and thousands of distribution partners, serving almost 28 million customers. As of September 30, 2019, we had over C$1.2 trillion (HK$6.9 trillion) in assets under management and administration, and in the previous 12 months we made C$29.8 billion in payments to our customers. Our principal operations in Asia, Canada and the United States are where we have served customers for more than 100 years. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges and under '945' in Hong Kong.