Manulife's Profit Surge: Wealth Management and Asia Growth Drive Success

Manulife Financial Corporation, a leading international financial services provider, has reported banner full year and fourth quarter results, with record core earnings and significant increases across top-line business metrics. The company's strategic focus on Asia and Global Wealth & Asset Management (WAM) has been a key driver behind its recent profit growth. Here's a closer look at Manulife's performance and the opportunities for further growth and diversification within its wealth management segment.

Manulife's Asia business continued to lead the growth, with a 27% increase in core earnings in 2024 compared to 2023. This strong performance was driven by substantial top-line growth, with Asia's APE sales increasing by 42% in the fourth quarter of 2024 (4Q24) compared to 4Q23, and by 30% for the full year 2024. Asia's new business CSM and NBV also saw significant increases of 32% and 31% respectively in 4Q24, and 32% and 32% for the full year 2024.



Manulife's wealth management segment, operating as Manulife Investment Management, has demonstrated remarkable growth. Global WAM ended the year with over $13 billion of net inflows in 2024, a 220 basis point increase in core EBITDA margin, and 30% core earnings growth. This growth is attributed to the segment's focus on accelerating growth in Asia and other high-potential markets.

Asia's leading position in Manulife's wealth management growth is further supported by a joint report by Manulife Hong Kong and Deloitte, which highlights the growing demand for insurance as a legacy planning tool among high-net-worth individuals (HNWIs) in the Greater China region. Over 70% of respondents have integrated insurance into their asset portfolios, with 30% allocating 11% or more of their assets to insurance products. This presents an opportunity for Manulife to further develop and offer tailored wealth management solutions for HNWIs.

To further grow and diversify its wealth management segment, Manulife can explore opportunities to expand into new markets, such as emerging economies with growing middle classes. Additionally, the company can diversify its product offerings by introducing new investment funds, wealth protection solutions, and digital wealth management platforms to cater to the evolving needs of clients.

In conclusion, Manulife's wealth management segment has shown strong performance, particularly in Asia and through digital transformation initiatives. To further grow and diversify this area, Manulife can focus on expanding into new markets, developing tailored solutions for HNWIs, and innovating its product offerings to meet the changing needs of clients. The company's strategic focus on Asia and Global WAM has been a key driver behind its recent profit growth, and its continued success in these areas will be crucial for maintaining its competitive edge in the global financial services landscape.