Gelonghui, May 9 | Manulife Finance-S (00945.HK) announced its results for the first quarter ended March 31, 2024. It recorded strong growth in terms of core return on shareholders' capital and turnover during the period, and completed the largest long-term care insurance (“LTC”) business reinsurance transaction in the industry's history. Core profit for the first quarter of 2024 was $1.8 billion, up 16% from the first quarter of 2023 on a fixed exchange rate basis; net revenue attributable to shareholders was 900 million Canadian dollars, a decrease of 500 million Canadian dollars from the first quarter of 2023. Excluding the impact of the reinsurance deal with Global Atlantic (which had a mostly neutral impact on book value), net revenue attributable to shareholders for the first quarter of 2024 was $1.6 billion, up $200 million from the first quarter of 2023; core earnings per share were $0.94, up 20% from the first quarter of 2023; and earnings per share were $0.45, down 38% from the first quarter of 2023. Excluding the impact of the reinsurance deal with Global Atlantic, earnings per share were $0.87, up 21% from the first quarter of 2023.
In the first quarter of 2024, the core return on shareholders' capital was 16.7%, and the return on shareholders' capital was 8.0%; excluding the impact of reinsurance transactions with Global Atlantic, the return on shareholder capital was 15.5%; the “Life Insurance Capital Adequacy Test” (LICAT) ratio 4 recorded a 138% level; compared to the first quarter of 2023, annualized premium equivalent (“APE”) sales increased 21%, and the new business value increased by 52%; the global wealth and asset management business recorded 6.7 billion Canadian dollars The net inflow was higher than the 4.4 billion Canadian dollars in the first quarter of 2023.
Manulife President and CEO Gao Ruihong said, “After an extraordinary year, Manulife continued to maintain strong momentum and achieved outstanding results in the first quarter of 2024, including a 20% increase in core earnings per share, an 11% increase in adjusted book value per share, APE sales reached a record high, and all of its insurance divisions recorded double-digit growth. We completed the largest LTC business reinsurance transaction in history in the first quarter and signed the largest universal life reinsurance agreement ever in Canada, once again confirming our rigor and focus on executing the transaction. I am encouraged by our momentum in the first quarter and the business opportunities that will continue to create value for shareholders in the future.”
Manulife Chief Financial Officer Colin Simpson said, “We had a strong start in 2024. The value of our new CSM and new manufacturing businesses all hit new highs, growing by 52% and 34% respectively. The global wealth and asset management business recorded a strong net inflow of 6.7 billion Canadian dollars, while our capital position remained stable, with a LICAT ratio of 138%. Looking ahead, we will continue to work to further enhance shareholders' return on capital through strict capital allocation and continuous business performance improvements.”