Manulife Hong Kong reports strong fourth quarter and full-year 2021 results

Hong Kong – The Manulife group of companies operating in Hong Kong and Macau (“Manulife Hong Kong”) today announced financial results for the fourth quarter and full year of 2021, reporting strong growth in core earnings, new business value (NBV), annualized premium equivalent (APE) sales and agency numbers.

Damien Green, Chief Executive Officer of Manulife Hong Kong and Macau, said, “We are proud to have delivered double-digit growth for another quarter. Despite COVID-19 impacting local business activities, we once again demonstrated our extreme resilience and maintained very strong sales momentum throughout 2021, ending the year on a high note with record high core earnings and NBV. As of the fourth quarter of 2021, we have grown our core earnings year-on-year for 17 consecutive quarters. This was attributed to the solid results delivered by our expanded agency force. At the same time, our key bank partner DBS and our brokerage channels also reported significant APE sales growth.”

“After the border between Macau and mainland China re-opened, APE sales in Macau more than doubled in 2021 compared to 2020; with sales from mainland Chinese visitors (MCVs) comprising 60% of the total. We look forward to cross-border travel commencing again between Hong Kong and mainland China so that we can meet the demand for insurance products from MCVs, especially those from the Greater Bay Area (GBA). In order to help meet this demand, during the fourth quarter we accelerated our investment in both Hong Kong and Macau, opening new offices and upgrading our customer service centres, as well as appointing senior executives to drive our strategic priorities,” added Mr. Green.

Manulife Hong Kong’s Results Overview:

• Core earnings
  • Core earnings of HK$7.4 billion in 2021, up 17% from 2020, and HK$2.1 billion in 4Q 2021, up 18% from 4Q 2020
     
• NBV
  • NBV of HK$4.8 billion in 2021, up 32% from 2020, and HK$1.3 billion in 4Q 2021, up 27% from 4Q 2020
     
• APE sales
  • APE sales of HK$6.6 billion in 2021, up 10% from 2020, and HK$1.7 billion in 4Q 2021, up 11% from 4Q 2020
     
• Agency force performance
  • Number of agents reached a record level of more than 11,600 as at December 31, 2021, up 9% from 2020
  • Agency force remained the key contributor to insurance business, accounted for more than 60% of total APE sales in 2021
  • Agency-driven Mandatory Provident Fund (“MPF”) sales in 2021 rose 40% from 2020
     
• Mandatory Provident Funds (MPF) market share
  • Manulife was the largest MPF provider with a market share of 27.0% based on assets under management as at December 31, 2021, up 2.4 percentage points from a year ago
  • Manulife was also the leader in terms of estimated net cash flows for the period from October 1, 2021 to December 31, 2021 with a market share of 47.8%
    
    

Full-year core earnings increased 17% to a record high of HK$7.4 billion in 2021 from HK$6.3 billion in 2020, benefiting from higher new business volumes, favourable product mix, and in-force business growth. Fourth-quarter 2021 core earnings also reached a record high of HK$2.1 billion, up 18% from HK$1.8 billion in the same quarter of 2020, driven by higher sales and favourable product mix.

NBV reached a record high at HK$4.8 billion in 2021, up 32% from HK$3.6 billion in 2020, driven by higher sales volumes, favourable interest rates and product management actions. NBV in the fourth quarter of 2021 was HK$1.3 billion, up 27% from HK$1.0 billion in the same quarter of 2020, due to higher sales, favourable interest rates and expense management.

APE sales in 2021 were HK$6.6 billion, up 10% from HK$6.0 billion in 2020, reflecting strong growth in its bank channel, demand from mainland Chinese visitors through its Macau branch, and an expanded agency force. Fourth-quarter 2021 APE sales grew by 11% to HK$1.7 billion from HK$1.5 billion in the same period of 2020 despite the dampening effect of COVID-19 containment measures constraining cross-border travel between Hong Kong and mainland China, reflecting strong growth in its bank channel, and demand from mainland Chinese visitors through its Macau branch.

In the fourth quarter, Manulife Hong Kong expanded its agency offices to 145,000 square-feet of new office space at Manulife Place. The customer service centres in Kwun Tong and Macau were also renovated to provide enhanced customer experience. Further, senior executive appointments, including Candy Au Yeung, the Chief Operations Officer, and Carrie Tong, the Chief Strategy Officer and Head of Macau Branch, were made to help Manulife Hong Kong drive operational excellence and business growth. It also launched a new holistic ‘Medical Professional Support Service’ for customers diagnosed with cancer or suspected cancer, who can have their cases reviewed by dedicated, in-house healthcare professionals or qualified nurses.

“Manulife is the longest continuously operating life insurer in Hong Kong. We’re proud of our commitment to this city and will continue to invest in our people and our operations as we celebrate our 125th anniversary here. With our presence in nine of the 11 GBA cities and our diversified product range, we look forward to serving the health, protection and retirement needs of our GBA customers and helping them live every day better,” said Mr. Green.

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