For Immediate Release
November 8, 2018
TSX/NYSE/PSE: MFC SEHK: 945
Hong Kong – 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.
- 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
- 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
- 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
- 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
- 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
“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.
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 $1.1 trillion (US$863 billion) in assets under management and administration, and in the previous 12 months we made $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.