Net income at Manulife Financial tumbled $1.1 billion in the second quarter of this year, down $1.6 billion from the same time last year, but the president says the company remains “strong and resilient.”
"We delivered solid results, including core earnings of $1.6 billion, despite challenges posed by the macro environment, including the impact of market headwinds in Global WAM and extended COVID-19 restrictions in Asia," said Manulife President & Chief Executive Officer Roy Gori. "Our global franchise is strong and resilient, as evidenced by double-digit NBV [net book value] growth in the U.S. and Canada on a combined basis, and core earnings growth in our Canada and U.S. Insurance businesses, which reduced the impact of market and pandemic related headwinds elsewhere."
Insurer sees positive investment-related experience
"While our net income for the second quarter was negatively impacted by market volatilities, on a year-to-date basis, we delivered net income attributed to shareholders of $4.1 billion, which was $0.6 billion higher than our year-to-date 2021 net income and $0.9 billion higher than our year-to-date 2022 core earnings. The 2022 results are reflective of positive investment-related experience that more than offset the negative direct impact of markets, as well as the one-time gain from our U.S. variable annuity reinsurance transaction that closed in the first quarter," Gori said
Phil Witherington, Manulife’s chief financial officer said the company maintained an expense efficiency ratio of less than 50 per cent during the quarter despite topline pressures. “This, combined with our in-force business, which grew 7% over the prior year quarter, and comprises approximately three-quarters of our insurance core earnings, has provided for earnings stability against a backdrop of an uncertain macro environment.”
Manulife said it reported its highest ever quarterly sales in the U.S, signed new distributors in Latin America and launched a whole life product to support sales growth. In Asia, its distribution force was given advanced digital tools, with the proportion of new policies sold reaching 85.5 per cent.