Manulife Hong Kong reports Solid Growth for Second Quarter and First Half of 2021

The Manulife group of companies operating in Hong Kong (Manulife Hong Kong) have announced solid financial results for the second quarter and first half of 2021, reporting robust growth notably in core earnings and New Business Value (NBV).

Results overview:

Core earnings

• Core earnings of HKD3.3 billion in the first half of 2021, up 16% from the same period of 2020, and HKD1.7 billion in 2Q 2021, up 16% from 2Q 2020

Annualized Premium Equivalent (APE) sales

• APE sales of HKD3.2 billion in the first half of 2021, up 8% from the same period of 2020, and HKD1.5 billion in 2Q 2021, up 7% from 2Q 2020

New Business Value

• NBV of HKD2.3 billion in the first half of 2021, up 31% from the same period of 2020, and HKD1.2 billion in 2Q 2021, up 46% from 2Q 2020

Mandatory Provident Funds (MPF) market share

• Manulife was the largest MPF provider with a market share of 25.0% based on assets under management as at June 30, 2021, up 0.6 percentage points from a year ago. Agency force remains a key driver of MPF business, delivering 49% growth in gross sales in the first half of 2021.

Agency force

• Record-high number of agents at 10,792, up 8% from the previous year

“Our Hong Kong business continued its strong growth trajectory this quarter. As of the second quarter of 2021, we have grown core earnings by double-digits for 14 of the last 15 quarters. NBV in the second quarter recorded its highest year-on-year growth since the outbreak of COVID-19 at the beginning of 2020. Looking at the first half of 2021, our year-to-date APE sales reported year-on-year growth for eight years in a row,” said Damien Green, Chief Executive Officer of Manulife Hong Kong and Macau.

"With a more positive market sentiment, we effectively pivoted to the right product strategy and expanded our distribution capabilities to meet customer needs, especially in health and retirement solutions. This is reflected in the strong and consistent growth in our savings and critical illness product sales during the first half of 2021. Agency force, being our largest distribution channel, was highly active and productive in driving both insurance and MPF sales. We also stood out in the market with our ability to recruit agents faster than our industry peers did. We will continue to invest heavily in our agency force expansion,” added Mr. Green.

Core earnings in the first half of 2021 grew by 16% to HKD3.3 billion from HKD2.9 billion in the same period last year. Second-quarter 2021 core earnings were HKD1.7 billion, up 16% from HKD1.4 billion in the previous year quarter. The growth was attributable to higher new business volumes, favourable product mix, and in-force business growth.

APE sales in the first half of 2021 were HKD3.2 billion, up 8% from HKD3.0 billion in the same period of 2020. Second-quarter 2021 APE sales rose 7% to HKD1.5 billion from HKD1.4 billion in the previous year quarter, reflecting continued strong domestic demand and increased demand from mainland Chinese visitors.

In the first half of 2021, NBV rose 31% to HKD2.3 billion from HKD1.7 billion in the prior year period. Second-quarter 2021 NBV were HKD1.2 billion, an increase of 46% compared with HKD0.8 billion in the prior-year quarter, due to higher sales volume, favourable interest rates and product management actions.

Manulife Hong Kong offers customers comprehensive health and protection coverage including Voluntary Health Insurance Scheme (VHIS) and critical illness products. VHIS remains a popular medical insurance option, accounting for over 70% of Manulife Hong Kong's medical new business in the first half of 2021.

On retirement, Manulife Hong Kong continues to be the MPF market leader in Hong Kong with the largest share in terms of assets under management. Manulife Hong Kong's leadership position in the MPF market was reinforced after becoming the sponsor of the Allianz Global Investors MPF Plan on August 9, 2021.

Manulife Hong Kong will open a premium customer centre, named Manulife Prestige Centre, in Tsim Sha Tsui on August 23, 2021. Conveniently located in the heart of the city, this centre will enable agents and brokers to provide bespoke services dedicated to high-net-worth customers. The 7,300-square-feet, modernly furnished premium facility triples the size of the previous customer centre and doubles the number of meeting rooms, offering better customer experience with greater convenience and comfort.

“Further to leasing 145,000 square feet of Grade A office space at International Trade Tower, the Manulife Prestige Centre is the latest major investment we have made in Hong Kong. The launch of this prestigious customer facility reaffirms Manulife's unwavering commitment to the city and to delivering customer-centric services for Hong Kong residents as well as visitors when border reopens,” continued Mr. Green.