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Manulife sees net income drop 15.4%

Manulife fell for the second quarter in a row.

The insurer reports net income attributable to shareholders of $1.3 billion (B$) in the third quarter of 2022, compared to $1.6 billion in the third quarter of 2021.

This decrease of 15.4% or $245 million (M$) was primarily due to lower investment-related experience gains and lower underlying earnings, partially offset by a minor charge related to the direct impact of the markets, Manulife said.

Manulife attributed the 12.8%, or $195 million, decline in core earnings to several factors, including a $256 million charge in the property and casualty reinsurance subsegment “for estimated losses expected to be losses arising from Hurricane Ian.” while the charge was $152 million in the third quarter of 2021, “in respect of estimated losses related to Hurricane Ida and flooding in Europe”.

Gains on underwriting results related to investments also decreased by 82.1% or $575 million to $125 million in the third quarter of 2022 compared to $700 million in the third quarter of 2021.

Four sectors withdraw

Four of Manulife’s five sectors declined in the third quarter of 2022:

  • net loss of $738 million for the general services and other segment, down $486 million;
  • net income of $521 million for the Asia segment, down 36.6% or $301 million;
  • net income of $641 million for the US segment, down 8% or $56 million;
  • net income of $345 million for the global wealth and asset management sector, down 1.7% or $6 million.

Canada is the only sector that has made progress.

Canada

Domestically, Manulife reports net income of $578 million in the third quarter of 2022, compared to a net loss of $26 million in the third quarter of 2021. This is an increase of $604 million, which is explained by two elements:

On the one hand, earnings from core activities were $350 million in the third quarter of 2022 compared to $311 million in the third quarter of 2021. An increase of 12.5% ​​or $39 million, which “mainly reflects the gains on favorable underwriting results in the group insurance subsector, the increase in the results of current contracts, the increase in the results of Manulife Bank and several less favorable items, partially offset by unfavorable underwriting results in the individual insurance sub-sector,” the insurer said.

On the other hand, items excluded from basic earnings generated net income of $228 million in the third quarter of 2022, compared to a net expense of $337 million in the third quarter of 2021. an improvement of $565 million.

Prizes and deposits

Manulife’s insurance premiums and deposits were $12.6 billion in the third quarter of 2022 compared to $13.9 billion in the third quarter of 2021. They decreased by 9.6% or $1.3 billion.

Insurance premiums and deposits fell 16.4% or $1.2 billion in Asia to $6.3 billion.

In Canada, insurance premiums and deposits fell 3.6%, or $157 million, to $4.2 billion.

The result in Canada is detailed as follows:

  • Annuities: premiums and deposits decreased by 42.4% or $368 million. in the third quarter of 2022 and reached $499 million.
  • Group insurance: premiums and deposits increased 4.6% or $114 million in the third quarter of 2022 to reach $2.6 billion;
  • Individual insurance: premiums and deposits rose 9.5% or $97 million in the third quarter of 2022 to reach $1.1 billion.

Conversely, insurance premiums and deposits increased by 2.7% or $55 million in the United States to reach $2.1 billion.

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