Manulife also retreats.
The insurer reports net income attributable to shareholders of $1.1 billion ($B) in the second quarter of 2022, compared to $2.6 billion in the second quarter of 2021.
This decrease of 59% or $1.6 billion “is mainly explained by the charges related to the direct impact of the markets (vs. net profits in Q2 2021)”, by “the decrease in the result from basic activities” , but also by “decreasing profits on technical results related to investments”, says Manulife.
The insurer reports gains on underwriting results related to investments of $591 million (M$) in the second quarter of 2022, compared to $739 M in the second quarter of 2021. This is a decrease of 20 % or $148 million.
Four of Manulife’s five sectors fell in the second quarter of 2022, including Canada.
Canada
Domestically, Manulife reports net income attributable to shareholders of $85 million in the second quarter of 2022, compared to $783 million in the second quarter of 2021. This is a decrease of 89.1% or $698 million.
This result “includes core earnings of $345 million in Q2 2022, compared to $318 million in Q2 2021, and items excluded from core earnings , which represented a net charge of $260 million in Q2 2022, compared to a net profit of $465 million in Q2 2021,” explains the insurer.
Elsewhere in the world
The corporate services and other segment posted a net loss attributable to shareholders of $497 million in the second quarter of 2022, compared to net income attributable to shareholders of $81 million in the second quarter of 2021. This result fell by $578 million.
In addition, in the second quarter of 2022, compared to the second quarter of 2021, net income attributable to Manulife shareholders decreased by:
- 43% or $272 million in Asia, to reach $361 million;
- and by 14.3% or $51 million for the Wealth and Asset Management sector, world, to reach $305 million.
Conversely, Manulife reported net income attributable to shareholders up 4.9% or $39 million in the United States. This reached $832 million.
Premiums and deposits
Manulife’s insurance premiums and deposits were $12.9 billion in the second quarter of 2022, compared to $13.1 billion in the second quarter of 2021. They decreased by 1.1% or $139 million.
Insurance premiums and deposits fell 6.9% or $478 million in Asia to $6.4 billion.
Conversely, insurance premiums and deposits increased by 7.3% or $141 million in the United States, reaching $2.1 billion.
Insurance premiums and deposits also increased, by 4.7% or $200 million, in Canada. They reached $4.4 billion in the second quarter of 2022, compared to $4.2 billion in the second quarter of 2021.
The result in Canada is detailed as follows:
- Individual insurance: premiums and deposits increased by 11.9% or $122M in the second quarter of 2022, reaching $1.1B;
- Group insurance: they increased by 10.8% or $261 million in the second quarter of 2022, reaching $2.7 billion;
- Annuities: they fell by 23.1% or $183 million in the second quarter of 2022, reaching $609 million.