Manulife adopts expansion policy
Canadian-based financial services group Manulife (International) plans to boost its sales force in Hong Kong from 3,200 to 5,000 in five years.
'As the local economy is improving, it is the right time to recruit more qualified agents to expand our sales force. We want to have 5,000 agents in five years' time,' said Michael Chan, vice-president of the insurer.
Manulife, the second-largest life insurer and pension provider in Hong Kong, already has the second largest sales team in the city behind American International Assurance, which now has 8,500 agents.
The expansion plan was announced yesterday as the insurer released its third quarter net income in Hong Kong which stood at $457.3 million, up 7 per cent on the same quarter a year ago. For the first nine months of the year, the net income was also up 7 per cent at $1.28 billion. Michael Huddart, senior vice-president and Hong Kong general manager, said strong growth had been driven by sales of mutual funds and investment-linked products such that net premiums for the third quarter in Hong Kong totalled $4.3 billion, up 28 per cent on a year earlier.
'The investment-linked products are getting more and more popular. People in Hong Kong are willing to take more risks to achieve higher returns,' Mr Huddart said.
In China, Manulife has a joint-venture life insurance company set up in 1996 which now operates in 11 cities and has gained approval to set up another four in the future.
The insurer's Canadian-based parent Manulife Financial Corporation is listed in five stock markets worldwide including Hong Kong. Corporation net income for the third quarter stood at a record high of C$746 million ($4.85 billion), up 5 per cent on the previous year.
Manulife Financial senior executive vice-president and general manager for Asia Victor Apps said the earnings were offset by higher claims for property damage cover of C$198 million related to Hurricane Katrina in the US. Excluding that factor, shareholders' net income was C$879 million, up 23 per cent from a year earlier.
Manulife yesterday closed unchanged at $407.6.
