Manulife HK and Macau's APE sales record significant surge in Q2 2023

Manulife Hong Kong and Macau's annualised premium equivalent (APE) sales have doubled from a year ago, reaching HK$2.1 billion.

The company said in its second quarter 2023 financial report that this reflects a strong growth in its broker and bancassurance channels, primarily driven by a return of demand from mainland Chinese customers following the reopening of the border between Hong Kong and China since February this year.

"Thanks to our comprehensive business portfolios and strong distribution capabilities, our sales for the second quarter of 2023 have exceeded the pre-pandemic records set in 2019. We are encouraged by the momentum we are driving across our Hong Kong and Macau business and the future earnings we expect that these sales will generate," said Patrick Graham, chief executive officer of Manulife Hong Kong and Macau. "Our professional agency force, alongside our diverse broker and bancassurance channels, has contributed to this remarkable sales growth."

"With a firm commitment to growth, we plan to continue to expand our distribution network and customer service facilities meaningfully by the end of this year, while also fully supporting the establishment of after-sales insurance service centres in mainland Greater Bay Area cities," Graham added.

Meanwhile, Roy Gori, Manulife president and chief executive officer said the company is pleased to report strong topline performance during the second quarter including double-digit year-over-year growth in new business metrics from our global insurance business, particularly with new business CSM growing at our medium-term target of 15%. “Our Asia business generated 26% growth in both APE sales and new business CSM, as we capitalise on the recovery across the region, mainly in Hong Kong," he added.

In addition, global wealth and asset management generated net inflows of CAD$2.2bn (HK$13bn) while core EBITDA margin improved by 2.2 percentage points quarter-over-quarter to 24.6%, he added. “We delivered solid operating results in 2Q23, including core earnings of CAD$1.6bn (HK$9.2bn), core ROE of 15.5% and core EPS growth of 6%,” Gori continued. “Our net income of CAD$1bn (HK$5.8bn) increased from the prior year despite the impact of downward pressure on real estate valuations," he said.

“We have an enviable portfolio of businesses, which provide us with a strategic advantage and position us well for success, as evidenced by topline growth in 2Q23. We look forward to CSM growth translating into stable and growing insurance earnings,” said Colin Simpson, chief financial officer of Manulife.

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