Manulife has hit new heights.
The insurer reported net income attributable to shareholders of $3 billion in the first quarter of 2022, up from $783 million ($M) in Q1 2021. This result is unprecedented at Manulife.
The insurer notes that this growth of 279.3 per cent or $2.2 billion increase is “driven by gains from the direct impact of markets compared with losses in the prior year quarter, a gain related to the U.S. variable annuity reinsurance transaction, and a larger gain from investment-related experience compared with the prior year quarter.”
Manulife reported investment-related experience profits of $558 million in the first quarter of 2022, compared with $77 million in Q1 2021. This increase of 624.7 per cent or $481 million “reflected the favourable impact of fixed income reinvestment activities, higher-than-expected returns (including fair value changes) on alternative long duration assets primarily driven by fair value gains on private equity and real estate as well as favourable credit experience,” the insurer points out.
Three out of Manulife’s five segments gained ground, including Canada.
Canada
Manulife reported net income attributable to shareholders of $547 million in the first quarter of 2022, compared with a net loss attributable to shareholders of $19 million in Q1 2021.
Net income attributable to shareholders climbed $566 million and includes core earnings of $314 million in the first quarter of 2022, versus $264 million in Q1 2021. This increase of 18.9 per cent, or $50 million, primarily reflects “higher in-force earnings, experience gains, which included more favourable policyholder experience, and new business gains in our individual insurance business.” “These items were partially offset by lower Manulife Bank earnings,” Manulife says.
Net income attributable to shareholders also comprises “items excluded from core earnings, which amounted to a net gain of $233 million in 1Q22 compared with a net charge of $283 million in 1Q21,” the insurer adds.
Around the world
In the first quarter of 2022, versus the first quarter of 2021, Manulife's net income attributable to shareholders increased by:
- 2,053.1 per cent or $2 billion in the United States, to $2.1 billion;
- and by 3.8 per cent or $12 million for Global Wealth & Asset Management, to $324 million.
On the down side, Manulife reported:
- Net income attributed to shareholders of $773 million in Q1 2022 in Asia, down from net income of $957 million in Q1 2021. This decrease amounts to 19.2 per cent or $184 million;
- A net loss attributable to shareholders of $741 million in the first quarter of 2022 for Corporate and Other, compared with a net loss of $563 million in Q1 2021. This represents a decrease of $178 million.
Premiums and deposits
Manulife’s insurance premiums and deposits were $13.3 billion in the first quarter of 2022 compared with $13.5 billion in Q1 2021. They thus decreased by 1.7 per cent or $230 million.
Insurance premiums and deposits fell 36.4 per cent or $669 million in the U.S. to $1.2 billion.
In contrast, insurance premiums and deposits were up 7.7 per cent or $332 million in Canada. They were $4.7 billion in the first quarter of 2022, versus $4.3 billion in Q1 2021.
Looking at the results in Canada in detail:
- Annuities: Premiums and deposits increased by 12.2 per cent or $121 million in the first quarter of 2022 to $1.1 billion;
- Individual Insurance rose 8.9 per cent or $86 million in Q1 2022, to $1 billion;
- Group Insurance gained 5.3 per cent or $125 million in the first quarter of 2022, to $2.5 billion.
Insurance premiums and deposits in Asia also edged upward 1.4 per cent or $106 million, to $7.4 billion.
