The business has seen a significant increase from the net outflows of one year ago
Manulife Financial Corporation has reported double-digit core earnings growth for the third quarter of 2021 compared to one year earlier.
Among the highlights were a turnaround for the Global Wealth and Asset Management ("Global WAM") business which posted net inflows of $9.8 billion in the quarter, compared with net outflows of $2.2 billion in the third quarter of 2020.
Overall, the firm posted core earnings of $1.5 billion, up 10% year-over-year (on a constant rate basis) and net income of a solid $1.6 billion, down $476 million year-over-year. Results included strong investment gains that offset a $532 million charge from the previously announced Ultimate Reinvestment Rate reduction.
New business value (NBV) was up 22% year-over-year to $539 million.
"The impact of the pandemic continues to vary across the globe with North American markets beginning to experience a recovery, while many markets in Asia implemented further restrictions in the third quarter," said Phil Witherington, chief financial officer. "Despite the challenging environment, Asia generated double-digit NBV growth and Global WAM was supported by strong net inflows of $9.8 billion in the quarter and delivered an 18% increase in core earnings compared with the prior year quarter."
Asia growth
Manulife’s reach in Asia was expanded by the opening of a 15th provincial branch of Manulife-Sinochem (in Shaanxi province) and the launch of Singapore's first-in-market flexible digital retirement plan with DBS Bank.
In Global WAM, the firm’s Asia online investment platform, Manulife iFunds, continued to show strong momentum aided by Malaysia, where sales and digital applications significantly increased year-over-year.
"The diversity and resilience of our franchise was evident once again in the third quarter, as we continued to deliver against our medium-term targets," said Manulife president & CEO Roy Gori. "We delivered core earnings growth of 10% and solid net income of $1.6 billion in 3Q21, and on a year-to-date basis delivered core return on equity of 13.2%."
