Manulife Holdings Berhad (MHB) has reported a sustained healthy business growth for the full-year 2019, despite challenging macro environment and market conditions last year.
During the period under review, the Group’s operating revenue in Malaysia recorded a year-on-year growth of 6.9 percent in 2019 to RM1,304.1 million, generating a pre-tax profit of RM38.4 million for MHB, up 0.2 percent from 2018.
The key contributor to the Group’s operating revenue was its life insurance businesses, which delivered an 8.2 percent growth in gross premiums on the year. Gross premiums totalled RM988 million, mainly attributed to strong growth in MHB’s onshore and offshore life insurance business.
While pre-tax profits in the investment holdings and asset management services grew significantly, up 720 percent to RM12.3 million and 88.4 percent to RM8.1 million, respectively, the life insurance business, however, fell 44.4 percent to RM18.0 million, due to higher medical claims. The company has taken the step to reprice its medical portfolio.
Lee Sang Hui, Manulife’s group chief executive officer said, “Despite the challenges we faced in 2019, we were able to record higher revenues, given our diversification across various business lines. We will continue to deliver on our commitments to our customers and progress on our mission to help make their decisions easier and lives better.”
MHB’s insurance subsidiary, Manulife Insurance Berhad (MIB), recorded 43 percent growth year-on-year driven by surge in new business sales worth RM182.5 million from its agency and bancassurance channels. Total MIB market share rose to 2.86 percent from 2.24 percent a year earlier, reaffirming its position among the country’s life insurance companies.
“In view of the post-pandemic impact, we expect the insurance business to rebound as demand for protection coverage increases. Although market weakness and volatility will likely prevail throughout the year, we hope that investor sentiment will improve once uncertainty subsides and markets stabilise,” said Lee.