On May 8, Manulife Financial Corporation reported its financial results for the first quarter of 2024. Net income attributed to shareholders was $866 million, compared with $1.4 billion for the same quarter of 2023.

In the report to shareholders, President and CEO Roy Gori highlights the reinsurance transaction announced with Global Atlantic, which closed on February 22, 2024. This is "the largest ever LTC (long-term care) reinsurance transaction,” he stated. 

The decrease in net income attributable to shareholders reflects the $800 million impact of the reinsurance transaction announced at the end of 2023. Realized losses on debt instruments amounted to $670 million in connection with this transaction.

Income from core operations reached $1.8 billion in the first quarter of 2024, up 16 per cent or $223 million on the $1.5 billion recorded in the same quarter of 2023.

The company attributes this result to growth in overall insurance business and fee income in the wealth management sector.

Sales  

Gori also highlights the record level of Annualized Premium Equivalent (APE) sales at March 31, 2024. These sales reached $1.9 billion, up 21 per cent or $283 million on the $1.6 billion reported at March 31, 2023.

Sales climbed 13 per cent in Asia, the insurer's largest market, and were also up 54 per cent in Canada and 14 per cent in the U.S. in the first quarter of 2024 compared with the same period of 2023.

In Canada  

In Canada, net income attributable to shareholders amounted to $273 million in the first quarter of 2024, compared with $309 million reported at March 31, 2023. This is a decline of 12 per cent.

Earnings from core operations reached $364 million in the first quarter of 2024, up 3 per cent over the same period last year.

Other markets  

In Asia, net income attributable to shareholders reached $270 million in the first quarter of the year, compared with $384 million in the same period of 2023. This is a decrease of 29 per cent. On the other hand, income from core activities rose by 39 per cent to $488 million.

In the United States, a net loss attributable to shareholders amounted to $80 million in the first quarter of 2024, compared with net income of $138 million in the same quarter of 2023. Income from core operations rose by 18 per cent to $335 million.

For the Global Wealth and Asset Management segment, net income attributable to shareholders was $365 million in the first quarter of 2024, compared with net income of $297 million reported for the same period in 2023. This represents an increase of 24 per cent. Earnings from core activities rose by a similar 25 per cent to $357 million.

The Corporate and Other segment reported a net loss attributable to shareholders of $27 million in the first quarter of 2024, compared with net income of $95 million in the same quarter of 2023.

Key facts  

Manulife underlined that its transaction with RGA Canada was “the largest universal life reinsurance agreement of its kind.” The deal, which closed April 2, transferred $5.6 billion of insurance contract net liabilities to the reinsurer. 

The company has also entered into a strategic partnership with Aeroplan that will enable eligible participants to accumulate reward points from the start of summer 2024.

Net inflows in the Global Wealth & Asset Management segment reached $6.7 billion in the first quarter of 2024, up $2.3 billion over the same period last year. Retirement net inflows of $3.2 billion in the first quarter were largely responsible for this increase, up $2 billion over the previous year.