Manulife Hong Kong reports strong growth for fourth quarter and full-year 2017
HONG KONG, Feb. 13: The Manulife group of companies operating in Hong Kong ("Manulife Hong Kong") today announced its fourth quarter and full-year 2017 results with strong growth and a number of new records.
•Annualized premium equivalent (APE) sales:
◦Record quarterly APE sales of HK$1.3 billion, up 21% from the fourth quarter of 2016.
◦Record full-year APE sales of HK$4.6 billion, up 18% from 2016.
•Premiums and deposits:
◦Record quarterly premiums and deposits of HK$18.1 billion, up 39% from the fourth quarter of 2016.
◦Record full-year premiums and deposits of HK$64.1 billion, up 44% from 2016.
•Wealth and asset management gross flows:
◦Quarterly wealth and asset management gross flows of HK$8.3 billion, up 41% from the fourth quarter of 2016.
◦Record full-year wealth and asset management gross flows of HK$30.1 billion, up 48% from 2016.
•New business value (NBV):
◦Record quarterly NBV of HK$925 million, up 21% from the fourth quarter of 2016.
◦Record full-year NBV of HK$2.7 billion, up 25% from 2016.
•Mandatory Provident Funds (MPF) market share increased to a record-high of 22.5% based on assets under management as at end December 2017 and was 34.4% based on estimated net cash flows for the period from October to December 2017, further cementing its number one MPF scheme sponsor position in the market.
•Agency force: up 7% to 7,725 agents as at end of 2017
"We have finished up 2017 on a high note with significant growth across our individual and group businesses. We have seen strong market demand for both our insurance and wealth products via agency, bancassurance and broker channels," said Guy Mills, Chief Executive Officer of Manulife Hong Kong. "Among our long list of achievements, I'm particularly proud of our leading position in the MPF market which was further strengthened during the year."
Manulife Hong Kong's APE sales in the fourth quarter of 2017 were a new high of HK$1.3 billion, up 21% from HK$1.1 billion in the same quarter of 2016. Full-year APE sales were also a record high of HK$4.6 billion, up 18% from HK$3.8 billion in 2016. The growth during both periods was mainly attributable to the strong sales of recently-launched customer solutions. Both the agency and bank channels experienced double-digit growth.
Total premiums and deposits in the fourth quarter grew to a record of HK$18.1 billion, up 39% from HK$13.0 billion in the same period of 2016, attributable to growth in both insurance and pension sales and higher renewal premiums. Full-year premiums and deposits increased by 44% to another new record of HK$64.1 billion in 2017 from HK$44.3 billion in 2016.
Quarterly wealth and asset management gross flows were up by 41% to HK$8.3 billion from HK$5.8 billion in the fourth quarter of 2016, reflecting strong increases in both retirement and retail businesses across all of its distribution channels. Full-year wealth and asset management gross flows increased to another new high of HK$30.1 billion, up 48% from HK$20.2 billion in 2016, driven by growth in both retail and retirement businesses, including the successful MPF partnership with Standard Chartered Bank.
Quarterly NBV was HK$925 million, a new record high and up 21% from HK$761 million in the fourth quarter of 2016. Full-year NBV of HK$2.7 billion was also a new high, up 25% from HK$2.2 billion in 2016, mainly attributable to higher APE sales during the year. The growth during both periods was driven by robust sales growth and continued strong margins.
"By focusing on the customer, listening to them proactively and using technology to enhance the customer experience, we have successfully launched new products and services that are meeting their needs and eliminating the pain points," Mr. Mills said. "An example is the claimsimple.hk solution which was launched in early 2018 to allow customers to submit their medical claims online via their mobile devices within one minute. We expect more innovative services will be introduced to the market in the future so that it becomes easier and simpler for our customers to buy and manage their insurance plans and enjoy a better experience."