Hong Kong - The Manulife group of companies operating in Hong Kong ("Manulife Hong Kong") delivered strong financial results for the third quarter of 2014.

  • Highlights for the third quarter of 2014 (Percentages quoted below are compared with the third quarter of 2013):
  • Record high premiums and deposits1 of HK$9.2 billion, up 20 per cent.
  • Significant increase in insurance sales2 to HK$632 million, up 37 per cent.
  • Wealth sales were HK$2.8 billion, up 50 per cent. 
  • Agency numbers of 5,943, an increase of nine per cent.
  • A new bancassurance agreement signed between Manulife (International) Limited ("MIL") and Industrial and Commercial Bank of China (Macau) Limited ("ICBC (Macau)")

"We are pleased with the financial results for the third quarter, which reflect the good progress we have made with our business plans and ability to generate organic growth in Hong Kong," said Michael Huddart, Manulife's Executive Vice President and General Manager for Greater China. "In addition to good sales from our major businesses in the third quarter, we continued to strengthen our distribution capabilities to serve our growing client base in Hong Kong and Macau."

Manulife Hong Kong's insurance sales in the third quarter of 2014 were HK$632 million, representing an increase of 37 per cent over the same quarter last year. The strong growth was driven by successful sales campaigns and the launch of new products tailored to the protection and savings needs of clients. Year-to-date sales of HK$1.5 billion were 16 per cent higher than the same period of 2013.

Third-quarter wealth sales were HK$2.8 billion, up 50 per cent over the same period last year. The strong sales were mainly driven by successful marketing campaigns in the pension and mutual fund businesses. Year-to-date sales of HK$6.8 billion were two per cent higher than the same period of 2013.

Mr. Huddart continued: "Our MPF business in Hong Kong has performed very well this year and we have outperformed other players in terms of estimated net cash flow. We have maintained our strong position as the second-largestMPF provider3. As at the end of June 2014, our MPF market share was 18 per cent in terms of assets under management4."

Manulife Hong Kong's total premiums and deposits in the third quarter grew to HK$9.2 billion, a second consecutive quarterly record, and were 20 per cent higher than the same period last year. The increase was attributable to higher insurance and wealth sales, stable growth in renewal premiums and an expanded agency force. Year-to-date premiums and deposits were HK$25 billion, eight per cent higher than the same period of 2013.

As at the end of September 2014, MIL had a professional agency force of close to 6,000 agents, representing a nine per cent increase over the last 12 months.  

During the third quarter of 2014, MIL signed a new bancassurance agreement with ICBC (Macau), enabling the company to distribute its life plans, medical insurance plans and retirement solutions to ICBC (Macau) customers via the bank's 17 branches and four wealth management centres in Macau. 

Mr. Huddart said: "We are proud of our exceptionally strong agency team, not only in terms of the number of agents but also of their professionalism, for which they are widely recognized by people inside and outside the industry. We have recently been named 'Company for Financial Planning Excellence of the Year' in the insurance category at the annual SCMP/IFPHK Financial Planner Awards for the eighth straight year. Our agents are well equipped with advanced digital sales tools to understand clients' needs and help them achieve their financial goals with customized solutions."

About Manulife Hong Kong
Manulife Hong Kong offers a diverse range of protection and wealth products and services to individual and corporate customers via Manulife (International) Limited, Manulife Asset Management (Hong Kong) Limited and Manulife Provident Funds Trust Company Limited, which are members of the Manulife group of companies. 

About Manulife
Manulife is a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. We operate as John Hancock in the U.S. and as Manulife in other parts of the world. We provide strong, reliable, trustworthy and forward-thinking solutions for our customers' significant financial decisions. Our international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients. We also provide asset management services to institutional customers. Funds under management by Manulife and its subsidiaries were approximately C$663 billion (US$591 billion) as at September 30, 2014.

Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife can be found on the Internet at manulife.com.

Media Contact:
Jacqueline Kam / Crystal Tse
Manulife (International) Limited
Tel: (852) 2202 1284 / 2510 3130
Fax: (852) 2234 6875
Jacqueline_tm_kam@manulife.com /
Crystal_ym_tse@manulife.com

Notes:

1 Premiums and deposits are the aggregate of (i) general fund premiums, net of reinsurance, reported as premiums on Manulife's Consolidated Statements of Income, (ii) segregated fund deposits, excluding seed money, ("deposits from policyholders"), (iii) investment contract deposits, and (iv) mutual fund deposits.

2 Based on 100% new annualized regular and 10% single premium sales from individual and group life and health. For individual insurance, new annualized premiums reflect the annualized premium expected in the first year of a policy that requires premium payments for more than one year. Sales are reported gross before the impact of reinsurance. Single premium is the lump sum premium from the sale of a single premium product. For group insurance, sales include new annualized premiums and administrative services only premium equivalents on new cases, as well as the addition of new coverages and amendments to contracts, excluding rate increases.

3 According to the MPF Annual Report 2013 published by Towers Watson, Manulife Provident Funds Trust Company Limited was second in terms of MPF assets under management.

4 The calculation of MPF market share is based on the following information: i) Aggregate Net Asset Values of all MPF Schemes: HK$542.7 billion (including assets transferred from ORSO scheme) (Source: MPFA Statistical Digest, data as of June 30, 2014.)

ii) Aggregate Net Asset Values of Manulife MPF Schemes as of June 30, 2014: HK$97.8 billion (Source: Manulife Asset Management (Hong Kong) Limited)

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