KUALA LUMPUR (Nov 27): Manulife Holdings Bhd’s net profit for its third quarter ended Sept 30, 2017 fell 41.14% to RM7.45 million, from RM12.64 million a year ago, as its life insurance business recorded worsened claims and higher distribution channel expenses, due to business expansion.
 
However, quarterly revenue climbed 14.91% to RM305.97 million in 3QFY17, from RM266.74 million year-on-year (y-o-y), largely on the back of a 77.3% increase in operating revenue from its asset management services, Manulife said in a filing with Bursa Malaysia today.
 
The group said its life insurance business posted higher revenue due to higher premium income, although investment holding contribution fell due to lower investment income.
 
Manulife’s investment holding segment reported a lower pre-tax loss due to higher disposal gains, while its asset management services also reported lower losses, on the back of higher unit trust sales and higher management fees earned.
 
For the cumulative nine-month period (9MFY17), the group reported a 16.51%  increase in net profit to RM21.37 million, from RM18.34 million in the previous year’s corresponding period, attributable to improved profitability in its life insurance business.
 
Cumulative revenue grew 17.41% to RM951.14 million, from RM810.07 million in 9MFY16.
 
“The group expects our full-year 2017 financial performance to be mixed,” Manulife said. It said a year-on-year contraction in volume for its bancassurance distribution channel would result in little to no growth in total new business premiums.
 
However, its wealth and asset management business is likely to see its current growth momentum continue throughout the year, Manulife said, making it likely for the segment to achieve profitability in 2018.
 
Shares in Manulife were untraded today. They last closed at RM3.29 apiece, giving the group a market capitalisation of RM665.8 million.