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Manulife (MFC) Q1 Earnings Top Estimates, APE Sales Rise Y/Y
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Manulife Financial Corporation (MFC - Free Report) delivered first-quarter 2024 core earnings of 70 cents per share, which beat the Zacks Consensus Estimate by 6.1%. The bottom line increased 20.7% year over year. Core earnings of $1.3 billion (C$1.8 billion) improved 16% year over year. This reflects strong business growth across its insurance businesses and higher fee income in Global WAM, driven by favorable market impact and positive net flows.
New business value (NBV) in the reported quarter was $488 million (C$669 million), up 34% year over year.
Annualized premium equivalent (APE) sales increased 21% year over year to $1.4 billion (C$1.9 billion).
New business contractual service margin (CSM) increased 52% year over year to $480 (C$658 million)
The Global Wealth and Asset Management business generated net inflows of $4.9 billion (C$6.7 billion), up 55% year over year.
Core return on equity, measuring the company’s profitability, expanded 190 basis points year over year to 16.7%.
The Life Insurance Capital Adequacy Test ratio was 138% as of Mar 31, 2024.
Manulife Financial Corp Price, Consensus and EPS Surprise
Global Wealth and Asset Management division’s core earnings were $260 million (C$357 million), up 25% year over year. Retirement net inflows of $2.3 billion (C$3.2 billion) more than doubled year over year, reflecting higher new retirement plan sales across the company’s three geographies. Retail net inflows of $1.2 billion (C$1.7 billion) more than doubled year over year, driven by increased demand for investment products amid equity market recovery and improved investor sentiment. However, Institutional Asset Management net inflows of $1.3 billion (C$1.8 billion) decreased 28% as higher fixed income mandates sales and lower money market redemptions were offset by higher redemptions in fixed income and equity mandates.
Asia division’s core earnings totaled $488 million, up 39% year over year.
Business mix and the impact of updates to actuarial methods and assumptions in the prior year further contributed to 68% growth in new business CSM.
APE sales increased 13%, driven by growth in Asia Other and Japan, partially offset by lower sales in Hong Kong. In Asia, NBV rose 28% year over year.
Manulife Financial’s Canada division’s core earnings of $265 million (C$364 million) rose 3% year over year. In Canada, NBV increased 71% year over year. New business CSM increased 52% year over year.
APE sales jumped 54% year over year, driven by higher sales volumes in all business units, led by large-case Group Insurance sales year over year.
The U.S. division reported core earnings of $335 million, up 18% year over year. New business CSM increased 3% year over year.
NBV increased 9% year over year. APE sales jumped 14%, reflecting an increase in demand from affluent customers for accumulation insurance products.
Reinsurance Group of America, Incorporated (RGA - Free Report) reported first-quarter 2024 adjusted operating earnings of $6.02 per share, which beat the Zacks Consensus Estimate by 33.5%. The bottom line increased 16.7% from the year-ago quarter. RGA's operating revenues of $6.5 billion improved 50% year over year, driven by higher net premiums, investment income, net of related expenses and other revenues.
Net premiums of $5.4 billion jumped 58.8% year over year. Investment income and net of related expenses increased 12.3% from the prior-year quarter to $961 million. The average investment yield declined 1 basis point to 4.70%, primarily due to higher new money rates, offset by lower variable investment income.
Lincoln National Corporation (LNC - Free Report) reported first-quarter 2024 adjusted earnings of $1.37 per share, which beat the Zacks Consensus Estimate by 24.6%. However, the bottom line declined 9.9% year over year. Adjusted operating revenues of $4.6 billion declined 1.6% year over year in the quarter under review. The top line lagged the consensus mark by 1.3%.
Fee income declined 4% year over year to $1.3 billion, which missed the Zacks Consensus Estimate of $1.4 billion. Insurance premiums of $1.6 billion rose 1.4% year over year. The metric missed the consensus mark by 1%. Net investment income of $1.3 billion declined 8.2% year over year and missed the consensus mark of $1.4 billion. Meanwhile, other revenues climbed 39.2% year over year.
Voya Financial, Inc. (VOYA - Free Report) reported first-quarter 2024 adjusted operating earnings of $1.88 per share, which beat the Zacks Consensus Estimate by 18.9%. The bottom line increased 11.2% year over year. Adjusted operating revenues amounted to $1.9 billion, up 8.9% year over year, driven by higher fee income, premiums and other revenues.
Net investment income declined 2.9% year over year to $529 million. Meanwhile, fee income of $513 million increased 10.5% year over year. Premiums totaled $800 million, up 16.8% from the year-ago quarter. Total benefits and expenses were $1.7 billion, up 4.1% from the year-ago quarter. As of Mar 31, 2024, VOYA’s assets under management, assets under administration and advisement totaled $848.6 billion.
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Manulife (MFC) Q1 Earnings Top Estimates, APE Sales Rise Y/Y
Manulife Financial Corporation (MFC - Free Report) delivered first-quarter 2024 core earnings of 70 cents per share, which beat the Zacks Consensus Estimate by 6.1%. The bottom line increased 20.7% year over year. Core earnings of $1.3 billion (C$1.8 billion) improved 16% year over year. This reflects strong business growth across its insurance businesses and higher fee income in Global WAM, driven by favorable market impact and positive net flows.
New business value (NBV) in the reported quarter was $488 million (C$669 million), up 34% year over year.
Annualized premium equivalent (APE) sales increased 21% year over year to $1.4 billion (C$1.9 billion).
New business contractual service margin (CSM) increased 52% year over year to $480 (C$658 million)
The Global Wealth and Asset Management business generated net inflows of $4.9 billion (C$6.7 billion), up 55% year over year.
Core return on equity, measuring the company’s profitability, expanded 190 basis points year over year to 16.7%.
The Life Insurance Capital Adequacy Test ratio was 138% as of Mar 31, 2024.
Manulife Financial Corp Price, Consensus and EPS Surprise
Manulife Financial Corp price-consensus-eps-surprise-chart | Manulife Financial Corp Quote
Segmental Performance
Global Wealth and Asset Management division’s core earnings were $260 million (C$357 million), up 25% year over year. Retirement net inflows of $2.3 billion (C$3.2 billion) more than doubled year over year, reflecting higher new retirement plan sales across the company’s three geographies. Retail net inflows of $1.2 billion (C$1.7 billion) more than doubled year over year, driven by increased demand for investment products amid equity market recovery and improved investor sentiment. However, Institutional Asset Management net inflows of $1.3 billion (C$1.8 billion) decreased 28% as higher fixed income mandates sales and lower money market redemptions were offset by higher redemptions in fixed income and equity mandates.
Asia division’s core earnings totaled $488 million, up 39% year over year.
Business mix and the impact of updates to actuarial methods and assumptions in the prior year further contributed to 68% growth in new business CSM.
APE sales increased 13%, driven by growth in Asia Other and Japan, partially offset by lower sales in Hong Kong. In Asia, NBV rose 28% year over year.
Manulife Financial’s Canada division’s core earnings of $265 million (C$364 million) rose 3% year over year. In Canada, NBV increased 71% year over year. New business CSM increased 52% year over year.
APE sales jumped 54% year over year, driven by higher sales volumes in all business units, led by large-case Group Insurance sales year over year.
The U.S. division reported core earnings of $335 million, up 18% year over year. New business CSM increased 3% year over year.
NBV increased 9% year over year. APE sales jumped 14%, reflecting an increase in demand from affluent customers for accumulation insurance products.
Zacks Rank
Manulife currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Insurers
Reinsurance Group of America, Incorporated (RGA - Free Report) reported first-quarter 2024 adjusted operating earnings of $6.02 per share, which beat the Zacks Consensus Estimate by 33.5%. The bottom line increased 16.7% from the year-ago quarter. RGA's operating revenues of $6.5 billion improved 50% year over year, driven by higher net premiums, investment income, net of related expenses and other revenues.
Net premiums of $5.4 billion jumped 58.8% year over year. Investment income and net of related expenses increased 12.3% from the prior-year quarter to $961 million. The average investment yield declined 1 basis point to 4.70%, primarily due to higher new money rates, offset by lower variable investment income.
Lincoln National Corporation (LNC - Free Report) reported first-quarter 2024 adjusted earnings of $1.37 per share, which beat the Zacks Consensus Estimate by 24.6%. However, the bottom line declined 9.9% year over year. Adjusted operating revenues of $4.6 billion declined 1.6% year over year in the quarter under review. The top line lagged the consensus mark by 1.3%.
Fee income declined 4% year over year to $1.3 billion, which missed the Zacks Consensus Estimate of $1.4 billion. Insurance premiums of $1.6 billion rose 1.4% year over year. The metric missed the consensus mark by 1%. Net investment income of $1.3 billion declined 8.2% year over year and missed the consensus mark of $1.4 billion. Meanwhile, other revenues climbed 39.2% year over year.
Voya Financial, Inc. (VOYA - Free Report) reported first-quarter 2024 adjusted operating earnings of $1.88 per share, which beat the Zacks Consensus Estimate by 18.9%. The bottom line increased 11.2% year over year. Adjusted operating revenues amounted to $1.9 billion, up 8.9% year over year, driven by higher fee income, premiums and other revenues.
Net investment income declined 2.9% year over year to $529 million. Meanwhile, fee income of $513 million increased 10.5% year over year. Premiums totaled $800 million, up 16.8% from the year-ago quarter. Total benefits and expenses were $1.7 billion, up 4.1% from the year-ago quarter. As of Mar 31, 2024, VOYA’s assets under management, assets under administration and advisement totaled $848.6 billion.