(Toronto) Manulife Financial beat analysts’ expectations for its second-quarter net income report of $2.6 billion, driven by sustained growth in Asia and a strong contribution from its asset and wealth management business.
The Toronto insurer said Wednesday, after financial markets closed, that its net income attributable to shareholders was $1.33 per share, up from 35 cents per share, or 727 million, from the same quarter last year.
Manulife attributed the increase to gains in private placements and capital markets and improved interest rates.
Excluding some non-recurring items, Manulife reported adjusted earnings of $1.68 billion, or 83 cents per share, up 7.8% from $1.56 billion, or 78 cents per share, in the second quarter of 2020.
Analysts expected Manulife to post net profit of $1.75 billion, or 90 cents a share, according to forecasts compiled by financial data firm Refinitiv.
Net inflows for wealth and asset management were $8.6 billion, up from $5.1 billion in the same quarter last year.
“Our results for the quarter are a testament to the strength of our business (Asia and Global Wealth and Asset Management), and support the next phase of our strategy,” said Roy Gauri, President and CEO of Manulife, in a press release.
“While the economic recovery is underway, it is uneven across markets and many challenges remain to be addressed. Manulife is well positioned to meet the needs of its customers during the recovery period, and I look forward to the tremendous opportunities we have.”
The value of new business increased 57% to 550 million. Activities in Asia contributed $399 million, while activities in Canada rose 65% to 76 million, and activities in the United States grew 110% to 75 million.
Annuity equivalent sales rose 30% to $1.4 billion, driven by growth in Hong Kong and other parts of Asia, which offset lower sales in Japan.
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