Hong Kong-listed Manulife Financial Corp plans to start an asset management company on the mainland after the Canadian-based firm's second-quarter profit surged 15 per cent to a record C$1.1 billion (HK$8.16 billion), driven by investment income from Asian stock markets.
Profit at the firm's Hong Kong-based Manulife International, one of the largest insurers and pension providers in the city, surged 62 per cent to HK$903 million. Sales of new insurance policies by the unit rose 31 per cent year on year to boost new premium income to HK$383 million.
Shares of Manulife Financial, which will pay a quarterly dividend of 22 Canadian cents per share, rose 2.17 per cent to HK$300.80 as the earnings beat analysts' expectations.
'The strong earnings were a result of rising stock markets, fee income across the wealth management businesses, and investment income in Hong Kong and other Asian markets,' said Robert Cook, a senior executive vice-president and general manager Asia of Manulife Financial.
Manulife Financial, which has a 50-50 life insurance joint venture on the mainland where it sells life and group pensions, was now looking for a partner to establish an asset management company there and was waiting for regulatory approval, Mr Cook said.
Premium income at its mainland joint venture grew 21 per cent in the second quarter. The number of mainland branches would increase to 25 by the end of the year from 21 now, while the venture's agents would increase to 7,000 from 6,300, he said.
