(Bloomberg) — Manulife Financial Corp.’s continued expansion in Asia paid off in the second quarter, helping the life insurer’s earnings beat analysts’ estimates.
Core earnings in Manulife’s Asia business rose 7.6% to C$526 million ($419 million) in the second quarter, helped by higher sales in Hong Kong. Overall profit topped analysts’ estimates.
Key Insights
After taking a bite out of first-quarter earnings, interest-rate moves helped Manulife’s second-quarter results. The direct effect of equity markets, interest rates and variable annuities added C$217 million to earnings last quarter. That compares with those factors subtracting C$835 million from profit in the previous quarter.Manulife’s global wealth and asset-management business continued to benefit from strong equity markets. Earnings in the unit rose 50% to C$356 million. The unit had net flows of C$8.6 billion in the quarter.In contrast to the strength in Asia, Toronto-based Manulife had weaker performance closer to home. Core earnings fell 7% to C$318 million in its home market of Canada in the second quarter, and dropped 21% to C$478 million in the U.S.
Market Reaction
The shares have risen 6.5% this year, compared with a 17% gain for the S&P/TSX Composite Index.
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Net income more than tripled to C$2.65 billion, or C$1.33 a share. Excluding some items, profit was 83 Canadian cents a share. Analysts estimated 78 Canadian cents, on average.Click here for more on Manulife’s second-quarter results.
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