Manulife Financial MFC-T posted higher fourth-quarter profit on Wednesday, bolstered by a thriving wealth and asset management business and strong growth in Asia.
The results underscore the rising significance of Manulife’s asset and wealth management unit. Insurers have been expanding their investment advisory and retirement planning services to tap into the rising demand for long-term financial management.
They also reinforce the effectiveness of the company’s push into Asia, where it is ramping up to capture the financial needs of a growing, under-insured middle class.
Core earnings from Asia jumped 16% to $477 million, while global wealth and asset management reported a 34% jump to $481 million.
Total core earnings rose 6% to $1.91 billion, or $1.03 per share, in the three months ended December 31. Analysts had expected a profit of nearly 95 Canadian cents per share, according to estimates compiled by LSEG.
“We have created a robust foundation for sustained growth,” CEO Roy Gori said in a statement.
The company has undertaken major reinsurance deals over the past few years, allowing it to offload risk, unlock capital for share buybacks and sharpen its focus on high-return segments.
Gori is scheduled to retire from his role in May this year. He will be succeeded by Phil Witherington, president and CEO of Manulife Asia.