Manulife, Sun Life see 1st-qtr earnings decline; Asia COVID challenges weigh

By Nichola Saminather

Reuters – Canadas biggest life insurers, Manulife Financial and Sun Life Financial on Wednesday reported core earnings fell from a year ago as the COVID19 pandemic took a toll on their Asian earnings, with Manulife also missing estimates.

Manulife reported core earnings of C1.5 billion 1.15 billion, or 77 Canadian cents a share, in the three months ended March 31, down from C1.6 billion, or 82 Canadian cents a share, a year earlier. Analysts had expected earnings to remain flat.

Underlying profit at Sun Life was C843 million, or C1.44 a share, in the three months ended March 31, down from C850 million, or C1.45, a year earlier. Analysts had expected C1.41 a share.

Manulife attributed the decline in its profit to “the rapid and unprecedented resurgence of COVID19 that disrupted new business activities in multiple markets in Asia.” Profit from the region fell 5.8, offsetting 20 growth at home.

A 31 decline in Sun Life‘s U.S. earnings, due higher health and death claims, and a 4 decrease in Asia, driven by lower sales in Hong Kong driven by COVID19 restrictions were behind the drop in Sun Life’s profit.

Sun Life has paid more than C1 billion COVIDrelated claims, Chief Financial Officer Kevin Strain, said at the companys annual shareholder meeting on Wednesday.

Despite recent volatility in markets, both companies reported higher profits from their wealth and asset management units. Sun Life‘s rose 12 from a year ago, while Manulife’s increased nearly 4. Both saw growth in assets under management.