9 August 2018 13:30
Photo : Freepik
The net income of Manulife amounted to 1 262 billion dollars (G$) in the second quarter of 2018, compared to 1 255 G$ in the second quarter of 2017, an increase of 0.6 %.
The insurer explained that the net income reflects the growth in the earnings base and the improvement of the direct impact of the markets. He adds that this performance has, however, been largely offset by the decrease in profits on the technical results relating to investments and by restructuring costs.
Moreover, the ratio of Manulife in regard to the solvency test for life insurers (TSAV) was 132 % at 30 June 2018.
The collective weight subscriptions
In Canada, sales of Manulife declined from 62.2 % in the second quarter of 2018, compared to the second quarter of 2017, up from $ 524 million ($M) to$ 198 Million. Manulife attributed mainly to the decrease in the non-renewal of a large group size for group insurance. Thus, the underwriting of group insurance amounted to$ 82 Million in the second quarter of 2018, down 79 % ($309 Million), compared to the second quarter of 2017.
The underwriting of annuity contracts, have fallen by 20 % in the second quarter of 2018, compared to the second quarter of 2017, to reach$ 53 Million. Manulife attributes this decline to the measures taken to relegating to the background its segregated fund products at higher risk.
The subscriptions of individual life insurance have declined by 6 % in the second quarter of 2018, compared to the second quarter of 2017, to reach$ 63 Million. This decline occurs primarily because of the pricing measures taken in 2017 to improve profitability.
Benefit of Sun Life, up 23 %
The net profit of Sun Life Financial was $ 706 Million during the second quarter of 2018, compared to 574 Million during the second quarter of 2017, an increase of 23 %. Sun Life explains this growth by the growth of the business and the favourable results achieved in terms of morbidity.
For canadian operations, the ratio of the solvency Test for life insurers (TSAV) of Sun Life of Canada is set to 134 % at June 30, 2018.
Mixed results in underwriting
In Canada, sales of individual life insurance are on the rise from 15.7 % in the second quarter of 2018, compared to the second quarter of 2017. They have reached 266 M$. The increase was attributable among others to the increase in the volume of our sales of major contracts in the group insurance and individual insurance, the company says.
Subscriptions are, however, to the 19.6% decline in wealth management, for this period of comparison. They have reached 3,039 G$ in the second quarter of 2018.