Manulife Hong Kong's new business in the second quarter fell 13% year-on-year, affected by falling sales and falling interest rates

Financial News

Author: Hu Xueneng

2020-08-10 16:38

Manulife Hong Kong announced that the value of new business in the first half of this year was HK$1.7 billion, an increase of 4% year-on-year. However, the value of new business in the second quarter was HK$800 million, a year-on-year decrease of 13%. The company explained that it was due to the decline in sales. Due to the fall in interest rates, the company will focus on health and critical illness protection products in the second half of the year, and the annualized premium equivalent sales of voluntary medical insurance are also expected to increase.

Manulife Hong Kong's core profit in the first half of this year was HK$2.9 billion, an increase of 8% year-on-year; the core profit of the second quarter was HK$1.4 billion, an increase of 5% year-on-year. In the first half of the year, annualized premium equivalent sales recorded HK$3 billion, an increase of 5% year-on-year; in the second quarter, annualized premium equivalent sales recorded HK$1.4 billion, a year-on-year decrease of 8%.

In the first half of this year, annualized premium sales, voluntary medical insurance and eligible deferred annuity policies together accounted for 24%. In terms of annualized premium sales of medical insurance products, voluntary medical insurance accounts for 59%. In terms of annuity annualized premium sales, qualified deferred annuity policies accounted for 94%. In terms of tax deductible voluntary contributions (TVC), each account contributes an average of HK$54,000 per year.

Said to expand the agency team in the second half of the year

Dai Mingjun, Chief Administrative Officer of Manulife Hong Kong and Macau, said that the entry and exit restrictions implemented in the second quarter in response to the new crown virus epidemic caused the sales of mainland customers to visit Hong Kong to fall, but the demand from local customers increased, offsetting the second. Part of the decline in quarterly annualized premium equivalent sales, but he believes that performance will outperform the market for the rest of the year. As of the second quarter of this year, the number of agents in the company was 10,008, an increase of 13% year-on-year, but 96 people fell quarter-to-quarter. He believes this is related to factors such as restrictions on social distancing activities in the port area. Double-digit growth year-on-year.

Manulife Hong Kong Chief Financial Officer Leung Nunshun said that he believes that the insurance market will return to strong after the epidemic returns to stability later and travel restrictions are relaxed.

In addition, when the United States recently announced sanctions on 11 Chinese and Hong Kong officials, whether Manulife has changed its sanctions policy and whether it has received inquiries in this regard, Dai Mingjun said that it is closely monitoring the situation and it is not appropriate to comment at this stage.

Manulife performance