We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Manulife (MFC) Q3 Earnings Flat Y/Y, Asia Business Solid
Read MoreHide Full Article
Manulife Financial Corporation (MFC - Free Report) delivered third-quarter 2020 core earnings of $1.1 billion (C$1.5 billion), flat with the prior-year quarter.
This result can be attributed to core earnings growth in Asia and U.S. division. However, the same was partially offset by lower international universal life sales, decline in interest rates and adverse impacts of COVID-19.
Manulife Financial Corp Price, Consensus and EPS Surprise
New business value (NBV) in the reported quarter was $345 million (C$460 million), down 13.3% year over year due to lower APE sales and a decline in interest rates in Hong Kong, and lower international universal life sales due to COVID-19 in U.S. segments.
Annualized premium equivalent (APE) sales decreased 9% year over year to $1 billion (C$1.4 billion), attributable to lower sales in Asia, Hong Kong and U.S. segments.
Expense efficiency ratio improved 20 basis points (bps) to 51.2%.
As of Sep 30, 2020, Manulife Financial’s financial leverage ratio deteriorated 60 bps year over year to 26.7%.
Wealth and asset management assets under management and administration were $715.4 billion, up 8.5% year over year. Wealth and Asset Management business generated net outflow of $1.6 billion (C$2.2 billion), driven by higher retail redemptions in mainland China, the non-recurrence of an $8.5 billion redemption in Institutional Asset Management, and higher member withdrawals in Retirement.
Core return on equity, measuring the company’s profitability, contracted 160 bps year over year to 11.4%.
Life Insurance Capital Adequacy Test (LICAT) ratio was 155% as of Sep 30, 2019, up from 146% as of Sep 30, 2019.
Segmental Performance
Global Wealth and Asset Management division’s core earnings came in at $231 million (C$308 million).
Asia division’s core earnings totaled $419.5 million (C$559 million), up 6.5% year over year. NBV decreased 16%, primarily due to lower APE sales and a decline in interest rates in Hong Kong. APE sales decreased 6% as growth in Japan and Asia Other was more than offset by lower sales in Hong Kong.
Manulife Financial’s Canada division core earnings of $209.3 million (C$279 million) were down 13.1% year over year. NBV grew 31% year over year primarily due to higher sales volumes in large-case group insurance. APE sales increased 23%, driven by higher large-case group insurance sales, partially offset by lower individual insurance sales due to the adverse impact of COVID-19.
The U.S. division reported core earnings of $373.7 million (C$498 million), up 4.8% year over year. NBV dropped 38%, primarily due to lower international universal life sales due to COVID-19. APE sales decreased 14% mainly due to the adverse impacts of COVID-19.
Third-quarter earnings of CNA Financial (CNA - Free Report) , Reinsurance Group of America (RGA - Free Report) and Athene Holding beat the respective Zacks Consensus Estimate.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
Manulife (MFC) Q3 Earnings Flat Y/Y, Asia Business Solid
Manulife Financial Corporation (MFC - Free Report) delivered third-quarter 2020 core earnings of $1.1 billion (C$1.5 billion), flat with the prior-year quarter.
This result can be attributed to core earnings growth in Asia and U.S. division. However, the same was partially offset by lower international universal life sales, decline in interest rates and adverse impacts of COVID-19.
Manulife Financial Corp Price, Consensus and EPS Surprise
Manulife Financial Corp price-consensus-eps-surprise-chart | Manulife Financial Corp Quote
New business value (NBV) in the reported quarter was $345 million (C$460 million), down 13.3% year over year due to lower APE sales and a decline in interest rates in Hong Kong, and lower international universal life sales due to COVID-19 in U.S. segments.
Annualized premium equivalent (APE) sales decreased 9% year over year to $1 billion (C$1.4 billion), attributable to lower sales in Asia, Hong Kong and U.S. segments.
Expense efficiency ratio improved 20 basis points (bps) to 51.2%.
As of Sep 30, 2020, Manulife Financial’s financial leverage ratio deteriorated 60 bps year over year to 26.7%.
Wealth and asset management assets under management and administration were $715.4 billion, up 8.5% year over year. Wealth and Asset Management business generated net outflow of $1.6 billion (C$2.2 billion), driven by higher retail redemptions in mainland China, the non-recurrence of an $8.5 billion redemption in Institutional Asset Management, and higher member withdrawals in Retirement.
Core return on equity, measuring the company’s profitability, contracted 160 bps year over year to 11.4%.
Life Insurance Capital Adequacy Test (LICAT) ratio was 155% as of Sep 30, 2019, up from 146% as of Sep 30, 2019.
Segmental Performance
Global Wealth and Asset Management division’s core earnings came in at $231 million (C$308 million).
Asia division’s core earnings totaled $419.5 million (C$559 million), up 6.5% year over year. NBV decreased 16%, primarily due to lower APE sales and a decline in interest rates in Hong Kong. APE sales decreased 6% as growth in Japan and Asia Other was more than offset by lower sales in Hong Kong.
Manulife Financial’s Canada division core earnings of $209.3 million (C$279 million) were down 13.1% year over year. NBV grew 31% year over year primarily due to higher sales volumes in large-case group insurance. APE sales increased 23%, driven by higher large-case group insurance sales, partially offset by lower individual insurance sales due to the adverse impact of COVID-19.
The U.S. division reported core earnings of $373.7 million (C$498 million), up 4.8% year over year. NBV dropped 38%, primarily due to lower international universal life sales due to COVID-19. APE sales decreased 14% mainly due to the adverse impacts of COVID-19.
Zacks Rank
Manulife Financial currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Third-quarter earnings of CNA Financial (CNA - Free Report) , Reinsurance Group of America (RGA - Free Report) and Athene Holding beat the respective Zacks Consensus Estimate.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.3% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>