Manulife Financial Corp. reported higher quarterly earnings on Wednesday, driven by robust growth in its Asian business, which offset weakness in other markets. The Canadian insurer and asset manager posted core earnings of C$1.8 billion ($1.3 billion) for the first quarter, up from C$1.6 billion a year earlier, beating analysts' estimates.
Asia performance boosts results
Revenue from Asia, Manulife's largest market by premiums, rose 12% to C$3.2 billion, fueled by higher sales of life insurance and wealth management products in Hong Kong, China, and Singapore. The company's Asian wealth and asset management segment saw net inflows of C$4.5 billion during the quarter.
Manulife CEO Roy Gori attributed the strong performance to the company's diversified business model and focus on high-growth markets. "Our Asia franchise continues to deliver exceptional results, reflecting the region's growing demand for financial security and retirement solutions," Gori said in a statement.
North American operations mixed
In Canada, core earnings fell 5% to C$400 million, impacted by lower insurance sales and higher claims. The U.S. division posted a 3% decline in core earnings to C$500 million, partly due to lower variable investment income.
However, Manulife's global wealth and asset management business reported a 10% increase in assets under management to C$1.2 trillion, driven by market appreciation and net inflows.
The company declared a quarterly dividend of C$0.40 per share, up from C$0.37 previously.
Shares of Manulife rose 2.1% to C$38.45 on the Toronto Stock Exchange following the earnings release.
