Canada’s largest insurance provider, Manulife, is poised to exceed its ambitious earnings goals in the Asian market, buoyed by the introduction of several cutting-edge products that have attracted both affluent clients and an influx of mainland Chinese visitors seeking policies in Hong Kong, as highlighted by a senior executive.
In its recently disclosed third-quarter results, the Toronto-headquartered firm showcased a robust 17 percent jump in core earnings—profits derived from its core business operations—within the Asian market. This region emerged as the most significant profit engine for the company, contributing a substantial 44 percent to the total earnings of the group, a notable increase from 37 percent last year and edging closer to Manulife’s target of achieving 50 percent of its earnings from Asia by 2027.
Phil Witherington, the CEO of Manulife Asia, expressed optimism regarding their progress in an exclusive interview with the Post. “We are advancing toward our goal of ensuring that 50 percent or more of our profits originate from Asia,” Witherington remarked. “We are fully confident that we will hit this landmark before the conclusion of 2027.”
Hong Kong, recognized as Manulife’s Asian headquarters, has played a pivotal role in driving these impressive gains. The annualized premiums from insurance sales soared by an astounding 173 percent compared to a year earlier, reaching US$570 million during the third quarter, as an increasing number of visitors from the mainland opted for insurance coverage in the city. Notably, purchases made by mainland tourists constituted 30 percent of the overall sales, with the remaining share originating from local customers.
In the first half of the year, the bustling city welcomed 21 million tourists, marking a substantial 64 percent increase year-on-year, as reported by the Hong Kong Tourism Board. A significant proportion, two-thirds, came from the mainland.
Witherington emphasized the diverse range of offerings that Manulife provides to meet the specific needs of mainland Chinese visitors, which encompass life insurance, medical coverage, and legacy planning solutions.
The CEO highlighted the company’s strategic focus on enhancing policy sales through agents, committing to investments in distribution channels, and launching a specialized initiative known as Manulife Pro aimed at elevating the productivity of top-tier agents in Hong Kong.
Significant growth has also been reported in other key markets across the Asia-Pacific region—including China, Singapore, Japan, the Philippines, Indonesia, and Malaysia—thanks to the rollout of innovative products, user-friendly customer applications, and advanced call center technology, Witherington noted.
In Japan, for instance, Manulife implemented new call center technology during the third quarter, integrating voice-to-text capabilities and artificial intelligence solutions to enhance customer service efficiency. Furthermore, new applications were launched in Vietnam and Indonesia in the preceding quarter.
In May, the company unveiled the Genesis product line, which boasts flexible withdrawal options and comprehensive estate-planning features tailored for high-net-worth individuals. An integrated platform to cater to wealthy customers has also been established in Hong Kong, Singapore, and Bermuda to serve this lucrative market segment.
“High-net-worth customers require a suite of services including insurance protection, medical coverage, wealth management, and estate planning,” Witherington explained. “There is a lucrative pool of affluent clients in Hong Kong, the Greater Bay Area, and other regions of Asia, all of which represent significant growth prospects for Manulife.”
Manulife’s ambition aligns with that of other major players like HSBC and UBS, all vying for a larger share of the burgeoning wealth management sector in Hong Kong.
According to the latest data from the Securities and Futures Commission, assets managed in Hong Kong increased by 2 percent year-on-year, surpassing HK$31 trillion (US$4 trillion) by the end of 2023. Additionally, net fund inflows skyrocketed to HK$390 billion, reflecting an impressive rise of over 3.4 times year-on-year, largely due to the flourishing family office industry.
Celebrating its remarkable 125-year history in Hong Kong, Manulife recently marked another significant milestone—25 years since its listing on the Hong Kong stock exchange.
“Manulife was the pioneering international insurance entity to go public in Hong Kong and has delivered remarkable returns to its shareholders,” Witherington stated. “Following our impressive third-quarter performance, our stock has surged to an all-time high, underlining our robust growth and operational success in Asia.”
During a recent board strategy meeting held in Shanghai, Witherington acknowledged that this visit was made possible due to the relaxation of visa restrictions for foreign nationals. He is now in possession of a five-year travel permit recently introduced by Beijing, which simplifies cross-border travel for Hong Kong’s 270,000 permanent residents holding foreign passports.
“It is incredibly encouraging to witness China’s open stance towards welcoming foreign visitors from all corners of the globe,” he remarked.
How has the increase in mainland Chinese visitors influenced Manulife’s sales growth in Hong Kong?
**Interview with Phil Witherington, CEO of Manulife Asia**
**Interviewer:** Phil, thank you for joining us today. Manulife has shown impressive growth in Asia, especially in Hong Kong. What do you attribute this success to?
**Phil Witherington:** Thank you for having me. Our success can be attributed to a combination of innovative product offerings and our focus on meeting the unique needs of our clients, particularly affluent customers and mainland Chinese visitors. The demand for comprehensive insurance coverage and financial solutions has surged, and we are committed to providing tailored products that resonate with these segments.
**Interviewer:** You mentioned in your report that Hong Kong is playing a pivotal role in driving these gains. Can you elaborate on the impact of visitors from mainland China?
**Phil Witherington:** Absolutely. We’ve seen a remarkable 173 percent increase in annualized premiums from insurance sales in Hong Kong. Mainland Chinese tourists have made a significant contribution, accounting for 30 percent of our overall sales. The influx of visitors — 21 million in the first half of the year, two-thirds of whom were from the mainland — has really bolstered our business.
**Interviewer:** Manulife aims to have 50 percent of its profits come from Asia by 2027. How close are you to achieving this goal?
**Phil Witherington:** We are very optimistic about reaching this landmark. Currently, Asia accounts for 44 percent of our total earnings, up from 37 percent last year. This growth trajectory is encouraging, and we are confident that we will achieve our target before the end of 2027.
**Interviewer:** Can you tell us more about the new products and technologies you are implementing across different markets in Asia?
**Phil Witherington:** Certainly. We’ve rolled out several innovative offerings, including our Genesis product line, which is designed with high-net-worth individuals in mind. Additionally, we’ve integrated advanced call center technology, such as voice-to-text and AI solutions, to enhance customer service efficiency. New mobile applications have been launched in Vietnam and Indonesia, further improving customer experience across the board.
**Interviewer:** how is Manulife addressing the needs of high-net-worth customers in Asia?
**Phil Witherington:** High-net-worth individuals require a comprehensive suite of services, including insurance protection, medical coverage, wealth management, and estate planning. We’ve established an integrated platform across Hong Kong, Singapore, and Bermuda to cater to this lucrative market segment. Our strategic focus on enhancing policy sales through agents and investing in distribution channels will help us serve these clients even better.
**Interviewer:** Thank you, Phil, for sharing these insights. Best wishes as you continue to grow in the Asian market.
**Phil Witherington:** Thank you for having me!
