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Developing policies pay off

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HONG KONG'S MOST expensive stock may be based in Canada, but it can thank Asia and its developing insurance markets for keeping it out of North America's 'profit warnings' parade.

Manulife Financial reported on Wednesday a 21 per cent growth in the first six months this year, to C$575 million (about HK$2.91 billion). At the same time it raised its return on equity target to 16 per cent from 15 per cent.

Victor Apps, Manulife executive vice-president and general manager, said he felt confident raising the growth prospects target in China, Indonesia, the Philippines and Vietnam.

'We look forward to continued growth in Asia, which is ripe with economic and demographic potential of our business,' Mr Apps said.

Established in Canada in 1887, the company offers life insurance, pension and fund management services in 15 countries.

In the first half this year its eight Asian markets contributed 26 per cent to profits, more than double the 12 per cent contribution in 1998.

The biggest share of the pie came from the United States which represents 32 per cent of its profit - but that is down from 50 per cent in 1998.

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