The Manulife group of companies operating in Hong Kong ("Manulife Hong Kong") reported strong results for the third quarter and the first nine months of 2015. The wealth and asset management business made a significant contribution to the robust performance.
Quarterly wealth and asset management gross flows grew by 14% to HK$5.1 billion from HK$4.5 billion in the same quarter of 2014, mainly attributable to growth in pension sales. Year-to-date wealth and asset management gross flows increased by 22% to HK$14.8 billion from HK$12.2 billion in the first nine months of 2014.
Michael Huddart, Manulife’s Executive Vice President and General Manager for Greater China said, "We had a very fruitful third quarter with our key businesses continuing to grow strongly, we are particularly pleased about the signing of a pension distribution agreement with Standard Chartered that will significantly expand our pension business in Hong Kong and reinforce our position as a leader in MPF services. This, together with a higher number of agents at the end of the third quarter, means that our distribution capabilities have been further strengthened."
With the newly-signed 15-year distribution partnership with Standard Chartered, Manulife has the exclusive right to offer its MPF products to the bank’s customers in Hong Kong. And as part of the arrangement, Manulife will acquire Standard Chartered’s existing MPF and Occupational Retirement Schemes Ordinance ("ORSO") businesses, and the related investment management entity. The transaction is expected to close in 2016, subject to the relevant regulatory approvals.
During the third quarter, Manulife completed the purchase of Manulife Tower at Kowloon East from Wheelock Properties. "This is another milestone in our history in Hong Kong," said Mr. Huddart. "We are very pleased to occupy this brand-new Grade-A office building starting this month. This flagship building signifies our commitment to Hong Kong and provides us with additional office space for future expansion."
Highlights of the third quarter were:
- Robust growth in insurance sales:
- Quarterly insurance sales of HK$758 million, up 20% from the third quarter of 2014.
- Year-to-date insurance sales of HK$1.9 billion, up 29% from the first nine months of 2014.
- Solid growth in premiums and deposits:
- Quarterly premiums and deposits of HK$10.0 billion, up 10% from the third quarter of 2014.
- Year-to-date premiums and deposits of HK$29.0 billion, up 15% from the first nine months of 2014.
- Strong growth in wealth and asset management gross flows:
- Quarterly wealth and asset management gross flows of HK$5.1 billion, up 14% from the third quarter of 2014.
- Year-to-date wealth and asset management gross flows of HK$14.8 billion, up 22% from the first nine months of 2014.
- Significant growth in new business value (NBV):
- Quarterly NBV of HK$551 million, up 19% from the same quarter of 2014.
- Year-to-date NBV of HK$1.4 billion, up 29% from the first nine months of 2014.
- Entered into an exclusive 15-year Mandatory Provident Fund ("MPF") distribution partnership with Standard Chartered Bank ("Standard Chartered") and an agreement to acquire the bank’s pension businesses and the related investment management entity in Hong Kong.
- Launched ManulifeMOVE, a unique insurance concept that rewards customers for being healthier and more active.