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MFC Renews Centum Deal to Broaden Mortgage and Retirement Solutions

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Key Takeaways

  • Manulife Canada and Centum renew partnership to expand mortgage and financial protection.
  • Centum agents gain Manulife's Mortgage Protection Plan and new Group RRSP program.
  • The deal boosts cross-selling, fee income, cash flows, and operational efficiency.

Manulife Canada, the Canadian operations of Manulife Financial Corporation (MFC - Free Report) and Centum Financial Group Inc., a national mortgage network serving over 2,000 professionals, have extended their existing partnership. The renewal marks a continued commitment to helping Canadians safeguard their homes and families with solutions that are simple, personal, and built for real life.

By combining Centum Financial’s mortgage knowledge with Manulife’s experience in wealth and asset management, Manulife Bank and Affinity, the partnership offers families and homeowners complete mortgage and financial protection. Through this strengthened partnership, Manulife and Centum Financial are also set to provide new retirement savings solutions for the latter’s agents, complementing CENTUM’s established range of Manulife’s flexible mortgage products and reliable insurance protection.

Following the renewal of their partnership, Centum Financial’s agents will keep providing Manulife’s Mortgage Protection Plan, a life and disability insurance solution that helps clients safeguard their families, homes, and financial assets.

Moreover, Centum Financial’s agents will have access starting Sept. 1 to a new Group RRSP program through Manulife, administered via Centum Financial's proprietary DirectPay platform, helping them advance their own long-term financial goals while supporting those of their clients. Additionally, Manulife Bank’s mortgage offerings, such as Manulife One, enable brokers to engage clients at the start of the mortgage journey, providing a natural chance to present protection and financial planning solutions.

The renewal of the partnership expands access to mortgage professionals, who can create a steady pipeline for insurance products and drive premium growth. It may enhance the cross-selling opportunities, generating additional fee income, while mortgage-linked products provide predictable, recurring cash flows. Leveraging the broker network may improve operational efficiency and lower acquisition costs, ultimately supporting long-term revenue growth, stronger market position, and overall financial performance.

MFC’s Price Performance

In the year-to-date period, Manulife’s shares have lost 2.1% compared with a 1.2% decline across the broader industry. Due to volatility in foreign exchange and weaker annualized premium growth in Canada, Manulife continues to face pressure.

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Zacks Rank & Key Picks

Manulife has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Finance space are Jackson Financial Inc. (JXN - Free Report) , Hippo Holdings Inc. (HIPO - Free Report) and Primerica, Inc. (PRI - Free Report) . While Jackson and Hippo each sport a Zacks Rank #1 (Strong Buy), Primerica carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate forJackson's current-year earnings is pegged at $20.44 per share, implying 8.8% year-over-year growth. Jackson surpassed estimates in two of the last four reported quarters, the average surprise being 1.6%. The consensus estimate for JXN’s current-year revenues is pegged at $7.2 billion.

The Zacks Consensus Estimate for Hippo Holdings’s current-year earnings indicates 88.3% year-over-year growth and a massive improvement in the following year. Hippo surpassed earnings estimates in three of the last four reported quarters, with the average surprise being 71%. The consensus estimate for Hippo’s current-year revenues is pegged at $470.4 million, implying 26.4% year-over-year growth.

The Zacks Consensus Estimate for Primerica’s current-year earnings is pegged at $21.39 per share, implying 7.8% year-over-year growth. It surpassed estimates in each of the last four reported quarters, the average surprise being 7.7%. The consensus estimate for PRI’s current-year revenues is pegged at $113.2 billion, implying 6.1% year-over-year growth.

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