KUALA LUMPUR (Aug 23): Manulife Holdings Bhd posted a net profit of RM20.89 million for the second quarter ended June 30, 2021 (2QFY21) against a net loss of RM1.1 million a year before, due mainly to higher profit contributions from its life insurance and asset management services segments.

The stronger earnings came despite quarterly revenue dropping 10.47% to RM377.65 million from RM421.79 million, its filing with Bursa Malaysia showed. The insurer did not declare any dividend for the quarter under review.

Notably, its life insurance business' profit before tax (PBT) rose to RM17.37 million in 2QFY21 from a loss before tax of RM3.72 million in 2QFY20, due to lower reserving of insurance contract liabilities from higher interest rates.

Its asset management services also delivered higher PBT of RM3.96 million in 2QFY21 versus RM1.18 million previously, on higher unit trust sales and higher management fee income from higher asset under management. Its investment holding business' PBT, however, slipped to RM3 million from RM3.97 million.

On a quarter-on-quarter (q-o-q) basis, the group's net profit dropped 20.55% from RM26.3 million in 1QFY21, on lower contributions from both its life insurance and asset management services segments, despite revenue growing 5.74% from RM357.13 million.

For the six months ended June 30, 2021 (1HFY21), its cumulative net profit jumped to RM47.19 million, over five times the RM8.73 million it recorded in 1HFY20, as revenue grew 66.17% to RM734.78 million from RM442.17 million.

On prospects, Manulife said the pandemic is expected to raise consumer demand for life insurance once the economy starts to recover. As for its asset management business, it said there will be buying opportunities for stocks benefitting from the reopening of the economy if one looks beyond the current Covid-19 situation.

It also remain positive about the prospects of the market over the longer term, in anticipation of an eventual global economic recovery.

Manulife shares closed unchanged at RM2.24 today, giving the group a market capitalisation of RM474 million.