Manulife Financial Corp. reported higher profits for the first quarter of 2022, while fellow insurer Sun Life Financial Inc. saw a decline in profits.
Manulife reported Wednesday that it earned $3 billion in the first quarter of 2022, up $2.2 billion from the same quarter in 2021.
The Toronto-based insurer and financial services company said it had profit of $1.50 per diluted share, compared to 38 cents in the year-earlier quarter.
Manulife said the increase in net profit was due to gains from direct markets compared to losses in the previous quarter, as well as investment experience and higher-than-expected returns from long-term alternative assets.
Underlying earnings were $1.6 billion, down 4% year-over-year, due in part to lower profits from new business in Asia.
In Asia, new business fell 28% to $340 million in the quarter.
Annual premium equivalent sales declined 17% in Asia due to the continuing adverse effects of Covid-19 in Hong Kong and several other markets.
In Canada, new business of $104 million increased 33% compared to the first quarter of last year, driven by higher margins across all business lines, shareholder report he said.
Annual premium equivalent sales in Canada increased 2% compared to the first quarter of 2021, primarily due to increased customer demand for lower risk segregated fund products and higher sales of mid-market group insurance, which was partially offset by volatility in group insurance on a large market scale – we read in the report.
Assets under management and administration as of March 31 were $1.3 trillion, down 4% from the previous quarter.
The decline was mainly attributed to the impact of higher interest rates and lower stock market levels, partially offset by net inflows during the quarter, according to the shareholder report.
Sun Life Earnings
Sun Life Financial Inc. reported that it earned $858 million the first quarter this year, down 8% from the $937 million earned in the first quarter of 2021.
The Toronto-based insurer said its earnings per share for the period ended March 31 were $1.46, compared with $1.59 per share for the same period in 2021.
Sun Life insurance sales for the quarter were $799 million, compared to $730 million in the prior-year quarter.
In its Canadian business segment, Sun Life Financial Inc. reported net income of $263 million, down 35% compared to 2021.
He attributes this reduction to changes in interest rates and lower stock markets, partially offset by an increase in the value of real estate investments.
Canadian insurance sales were $332 million, up 42% year-over-year, driven by large group benefit sales, according to a shareholder report.
Canadian asset sales were $5 billion, an increase of 11% due to defined contribution sales in Group Retirement Services, partially offset by individual asset sales.
Total assets under management increased slightly year-over-year to $1.35 trillion, down 6% from the previous quarter, partly as a result of unfavorable market movements.
On Wednesday, Sun Life increased its dividend by three cents per share to 69 cents per share, payable on June 30, 2022, to existing shareholders at the June 1 close of business.
