This reflects core earnings of $5.3 billion for the first nine months of this year, also up 16 per cent compared with $4.5 billion for the period in 2020, which the company credited to a ‘strong in-force growth, higher new business volumes and a favourable product mix’.
Due to higher sales volumes, favourable interest rates and product management actions, Manulife Hong Kong also reported a net book value (NBV) for the subsidiary of$1.2 billion for the third quarter of 2021, rising 42 per cent year-on-year from $0.9 billion in Q3 2020, contributing to a $3.5 billion NBV for the first nine months, up 34 per cent from $2.6 billion for the same period in 2020.
The third quarter NBV margin was 70.6 per cent, a year-on-year increase of 14.6 per cent compared with the prior year quarter.
Manulife Hong Kong also announced that APE sales for the first nine months came to $4.9 billion, an increase of 10 per cent from the $4.5 billion reported for the same period in 2020. This includes APE sales of $1.7 billion in the third quarter alone, up 12 per cent compared with $1.5 billion Q3 2020.
Demand from Chinese visitors boost demand for bancassurance products
The firm says that the rise in APE sales is due to ‘strong growth in Manulife Hong Kong's bank channel, demand from mainland Chinese visitors through its Macau branch, and an expanded agency force’. Manulife Hong Kong has increased its number of agents to 10,815 in the past year, up six per cent in the third quarter compared with Q3 2020.
Manulife Hong Kong has also worked to enhance its medical solution offering in 2021, including the launch of its new Holistic Professional Medical Support Service alongside a strategic partnership with CUHK Medical Centre last month, with the intention of giving customers priority access to oncology specialists. The company also began a partnership with Hong Kong Baptist Hospital to provide customers with access to its new day medical centre from July 2021.
“Both NBV and NBV margins have increased compared with the prior year quarter, reflecting the quality of our insurance business,” said Damien Green, CEO of Manulife Hong Kong and Macau. “All distribution channels contributed to the outstanding performance. Our agency force reached a record high in numbers and delivered strong performance in insurance and pension sales. Our other distribution channels also reported significant growth in APE sales as we see continuous demand for our wide range of product offerings across different customer segments.”