TORONTO: Canada’s largest insurer, Manulife Financial, on Wednesday (Aug 9) reported better-than-expected quarterly profit powered by strong insurance sales in Asia, its biggest market, as Hong Kong borders reopened after the Covid-19 pandemic.

The company posted core net income of C$1.64 billion (RM5.58 billion), or 83 Canadian cents per share, compared with C$1.53 billion, or 76 Canadian cents per share, a year earlier.

Analysts were expecting 78 Canadian cents, according to Refinitiv data.

Asia, where Manulife operates in over a dozen markets and caters to 13 million customers, is an important area for global and regional insurers as the region’s rapidly growing middle-class seeks life and healthcare insurance as well as investment options.

Manulife said APE sales in Asia, a gauge of insurance sales in annualised metrics, rose 26% in the second quarter ended June 30, as business recovered across the region, mainly in Hong Kong on demand from customers in mainland China after borders reopened earlier this year.

In Canada, APE sales fell 11% and in the US they decreased about 15%.

The Canadian insurer, wealth adviser and fund manager expects Asia to account for half of the its core earnings by 2025 despite economic slowdown and impact of Covid-19 on its key markets.

In July, it appointed former chief financial officer Phil Witherington as president and CEO of its Asia business, where he will be focused on expanding into other regional markets.

Smaller peer Sun Life Financial reported better-than-expected quarterly profit on Tuesday, helped by its acquisition of dental benefits provider DentaQuest and strong insurance sales at home. – Reuters