Manulife Financial Corporation, Canada's largest insurer, is on track to surpass its Asia earnings target of 50% by 2027, driven by innovative products and a significant increase in sales. In the third quarter of 2024, Asia contributed 44% of the company's total earnings, a notable rise from 37% the previous year. Core earnings from the region increased by 17%, highlighting the company's robust performance [bde7149b].
A significant factor in this growth has been the booming sales in Hong Kong, where annualized premiums soared by 173% to reach US$570 million. Notably, mainland visitors accounted for 30% of these sales, reflecting the impact of increased tourism on the insurance market. Hong Kong welcomed 21 million tourists in the first half of 2024, marking a 64% increase from the previous year, with a majority of visitors coming from mainland China [bde7149b].
To further enhance customer service and cater to high-net-worth clients, Manulife has launched new products and leveraged technology. The company recently celebrated 25 years of being listed in Hong Kong and reported an all-time high share price following its strong Q3 results [bde7149b].
This surge in earnings and sales aligns with broader trends in the insurance market, where companies like AIA Group are also experiencing significant growth due to increased demand from mainland Chinese customers seeking financial security amid economic uncertainties [22c2b5e3]. AIA reported a 53% increase in net profit for the first half of 2024, driven by similar factors, including a 25% rise in the value of new business [22c2b5e3]. As both AIA and Manulife capitalize on the growing market, the competitive landscape in the insurance sector in Asia is becoming increasingly dynamic.