Manulife has reported positive results for its Hong Kong businesses in the first half of the year, bannered by an 8% increase in core earnings. This is amid the effects of the COVID-19 pandemic, which resulted in decreases in several metrics for the second quarter of 2020.
According to a statement from the insurer, it registered core earnings of HK$2.9 billion in the first half of 2020, up 8% year-on-year. For the second quarter, it had HK$1.4 billion, up 5% from the same period in 2019.
Annualized premium equivalent sales were up by 5% at HK$3.0 billion in the first half. However, APE declined 8% year-on-year for the second quarter, down to HK$1.4 billion.
The same trend was present for Manulife Hong Kong’s new business value, which increased by 4% in the first half to HK$1.7 billion, but decreased by 13% to HK$0.8 billion in the second quarter; and wealth and asset management gross flows, which increased by 25% for the first half but decreased 4% for the second quarter.
Manulife remained the largest MPF scheme sponsor in Hong Kong, with a market share of 24.4% based on assets under management as of June 30. The company’s agency force also grew by 13% from the previous year to 10,008 agents.
“We have delivered very solid business performance in the first half of 2020, with consistent growth year-on-year in APE sales for seven years consecutively,” said Damien Green, Manulife’s CEO for Hong Kong and Macau. “It not only shows the great diversity and underlying strength of our businesses, but also demonstrates our unwavering focus to help our customers navigate the challenges they face in light of the COVID-19 pandemic.
“We have leveraged the strength and agility of our agency force to better serve customer needs during this unprecedented period. In particular, we had a very strong close in the month of June with a rebound in insurance sales, reflecting the continued demand for health and retirement products. We remain committed to driving our digital capabilities and are actively looking for opportunities to drive strategic initiatives that can benefit customers in Hong Kong, Macau and the Greater Bay Area.”