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Canadian insurers are reporting an uneven growth in Asia

by

Andrea Lubeck

June 6, 2018 09:06

Photo : Freepik

During the first quarter of 2018, Sun Life Financial has displayed a robust growth in Asia. Manulife has known various fortunes.

The division asia of Sun Life presents a table where the growth is at the rendezvous. It has seen a growth of 56.4 % of its earnings in the first quarter of 2018, to reach $ 105 million (M$). She attributes this jump to the favourable impact from the market because of favourable changes in credit spreads, offset in part by unfavourable movements in stock markets.

Sales of insurance products amounted to 233 Million, compared to$ 200 Million in the corresponding quarter of 2017, an increase of 14 %. All markets, except for those of Hong Kong and International, have experienced an increase in both figures, says Sun Life.

Sales in the sector of wealth management amounted to $ 3.7 billion, an increase of 28.9 % compared to the $ 2.9 billion recorded in the first quarter of 2017. The continued growth of the sector was conducted by the pension activities in Hong Kong, the income equity fund and fixed income securities of a joint venture in mutual fund in India and their company in asset management in the Philippines, in particular.

A single addicted

The only decrease that was recorded by Sun Life in Asia is in its sales of insurance products in the fourth quarter of 2017. For the corresponding period in 2016, they were 208 M$ 203 against M$ in the fourth quarter of 2017. The decrease of$ 5 Million is attributable to the decline in sales of 25 % (15 % in constant currency) for the Hong Kong market.

During a conference call with analysts regarding results for the fourth quarter of 2017 and the fiscal year of 2017, Claude A. Accum, president of Sun Life Financial, points out that without the results of Hong Kong, the growth of the division is 22 %. However, it has not indicated the reasons as to why this market had less good results.

In wealth management, the situation was completely different. Sales rose from$ 3.1 billion in the fourth quarter of 2016 to$ 3.6 billion to 2017, representing a growth of 16.5 %.

For the full year of 2017, totaled $ 687 Million dollars in insurance, an increase of 4% from 2016 and 13.1 G$ in wealth management, up 47.5 %. The net income improved by 43% for the fourth quarter and 5 % for the year, $ 83 Million and$ 326 M$.

Mixed results in Asia for Manulife

Gold, for its part, the results of the Manulife have been mixed for the region. If the asian branch does not record a loss, growth slowed in the first quarter, compared to the results of 2016 or 2017, ” noted a financial analyst during a teleconference organized on the occasion of the disclosure of the results of the first quarter of 2018.

Anil Wadhwani, president and chief executive officer of Manulife Asia, explains that, by excluding the results of Japan, the growth for the region would be 14 % for the equivalent of annualized premium and 28 % to the value of new business. By including them, the sales equivalent of the annualized premium also declined 3 % to $ 778 MILLION US$. The value of new business grew by 1 % and totalled$ 257 MILLION US.

Manulife cites the “increased competition in the enterprise market, and the impact of a price adjustment” to explain the results in Japan.

Roy Gori, president and chief executive officer of Manulife, however, has stated that he believes that the japanese market will continue to contribute to the growth of the division from asia in the future. “We meet some difficulties because of the competitive pressure on some of our products and some distribution channels and we will need to work hard to excel, but it is something that we have done in the past. “

In the first quarter of 2018, the earnings have witnessed a growth of 19.6 %, from 357 million us dollars (M$ US) to$ 427 MILLION US). However, the net benefits have declined from 13.9 % for the same period, amounting to$ 355 MILLION USD 412 MILLION US$ in the first quarter of 2017.

The sales equivalent of the annualized premium also declined, falling 3 % to $ 778 MILLION US$. The value of new business grew by 1 % and totalled$ 257 MILLION US.

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