Manulife surpasses Q3 performance expectations: Report

Analysts have estimated 83 cents per share for the quarter.

Manulife Financial Corp. reported a 28% increase in core earnings to C$1.74b ($1.27b) in the third quarter, beating analysts' estimates of 83 cents per share, reported Bloomberg.

The boost was attributed to the flourishing business in Asia, particularly Hong Kong, where insurance sales to mainland Chinese visitors saw improvement after pandemic travel restrictions eased. 

CEO Roy Gori highlighted Asia's strong performance, capitalizing on the return of demand from mainland Chinese customers. The company's shares rose 3.4%, reaching $18.66b in Toronto. 

READ MORE: Manulife Beats Estimates on Momentum From Its Asia Business

In the Asia segment, core earnings surged 33% to $282.38m, driven by commercial factors, including demand from mainland Chinese customers. 

However, Manulife's Canadian business grew 4%, while the US business reported a 2% drop in core earnings. A one-time tax benefit of $209.98m contributed to a net income increase of 87% to $730m. 

The results were impacted by a challenging macroeconomic environment, resulting in a C$400 million charge on alternative long-duration assets, including commercial real estate. 

ALSO READ: Manulife Singapore targets rapidly growing high-net-worth market

Despite declines in commercial real estate values, executives anticipate a rebound. 

Higher-than-expected credit losses of $79.65m were attributed to losses on Hawaiian Electric bonds affected by wildfires. 

Analysts view the quarter's results as noisy but anticipate a focus on core results.

($1.00 = C$1.38)