August 10, 2017 13:55
Photo : Freepik
In the second quarter of 2017, the Manulife Financial Corporation has registered a net profit of 1.23 billion, from$ 704 Million during the second quarter of 2016, which represents an increase of 74 %. According to the company, this net increase takes into account mainly the increase in earnings from operations basic, technical results related to the investment more favorable and the improvement of the direct impact of the markets.
Donald Guloien, president and chief executive officer, stresses the good performance of Manulife’s global operations and is pleased with the solid technical results related to the investments. According to the president of Manulife, Roy Gori, the company has registered, for a 30th consecutive quarter of net flows positive in its wealth management business and assets, » to which all divisions have contribuéÀ «.
The underwriting of insurance products amounted to$ 1.4 billion in the second quarter of 2017, an increase of 46 % compared to the same quarter of 2016. The managed and administered assets related to wealth management business and assets of Manulife totaled $ 572 billion as at 30 June 2017, an increase of 7 % compared to December 31, 2016.
Net decrease in net result
In Canada, the net income attributed to shareholders was set at$ 84 Million, compared with$ 359 Million in the same period of 2016. This is a decrease of over 75 % (- 76,6 %), attributable in particular to the results of technical unfavourable-related benefits long-term disability in the area of group insurance, barely offset by the increase in earnings in the wealth management business and assets and the business of banking, argues the company.
The income from basic activities was$ 345 Million, up 4 % compared to the second quarter of 2017 (333 M$). The negative variance of $ 287 million of items excluded from income from core activities is mainly explained by the direct impact of the markets.
The sales of insurance products have reached 458 M$ 338 M$ more than in the same quarter of 2016, due to the purchase of a group insurance plan for a group of large size.
Subscription down to the individuals
The underwriting of insurance products designed to individuals of$ 37 Million for the quarter were down 21 %, given the decrease in product sales of permanent life insurance due to changes made to the tests for tax exemption on January 1, 2017.
Finally, the gross inflow of wealth management and asset amounted to$ 5.5 billion, an increase of$ 0.7 billion (+ 16 %) compared to the second quarter of 2016. According to Manulife, this increase is attributable to funds received an important mandate of asset management for an institutional client, and to the sustained growth of the wealth management business and assets for individuals.