Manulife projects profit goal of $4 billion by 2016

Posted on Nov 17, 2012 by Sergio Ulloa (G+)  | Tags: Manulife

Manulife Financial Corp plans to double insurance sales, quadruple wealth management sales and double wealth management funds under management in Asia in a move that exhibits their future confidence in the region. Despite initial promises to hit the $4 billion (US$ 3.99bn) mark by 2015, the corporation now pledges to move forwards from the unstable earnings seen in their recent records. A loss of $227m was measured as the third quarter finished at the end of September. Current profitability will need to double in order to reach the 'core' profit (which excludes the direct impact of financial markets) goal of $4 billion Canadian Dollars by 2016, requiring a commitment to continue the growth and expansion of its distribution channels and the development of its agency network. Manulife remains positive that this can be achieved by, "focusing on the growth of fee-based wealth management businesses and de-risked life insurance and long-term care businesses as well as continuing to expand its Retirement Plan Services business into the mid-market." Manulife estimates the majority of insurance business will be found in Asia, with a predicted production of $1.65bn in core profit by 2016, and expectations of $1.5bn from the U.S. division and $1.44bn from its Canadian division. Head of the Asia division, Bob Cook championed the longevity (since 1897) of the company's presence in South East Asia, explaining how they would continue to take advantage of their unique positioning which allows them to examine and project trends in the region. The company also cited a heavily vested strategy in past initiatives that will now begin to produce growth in earnings while bringing a reduction in the current volatility as it moves forward. After a South East Asian decision to appoint Thailand as the new insurance hub for the region, Manulife will look to capitalise on the potential swell of business over the next several years. Countries such as Cambodia, which Manulife entered in 2012, are relatively new markets to the insurance and wealth management industries, and it is here and in similar countries that the company, and indeed the rest of the industry, looks to expand in.