Manulife Japan Announces FY2011 Financial Results – Record Sales at Expense of Profits – The title of the feed item
Tokyo – Manulife Life Insurance Company (“Manulife Japan”; Head Office: Chofu-shi, Tokyo; President and CEO: Craig Bromley) announces its financial results for the 2011 Japanese fiscal year ended March 31, 2012.
During the period in review, Manulife Japan achieved record sales growth by continuing to focus on its core strategy of diversifying its sales channels and product lineup. The Company increased the number of agency partnerships of its Managing General Agents (MGA) channel to 329, and increased the number of distribution partnerships of its Financial Institutions channel to 42 as of the end of March 2012. During the period the Company also launched four new products through multiple distributors and channels.
Annualized new business premium for individual insurance and individual annuity insurance combined grew to 61.8 billion yen, up 27.2% from the previous year, reaching a record high since the start of the Company’s business operations in 1999. Annualized new business premium for individual insurance for the period also stood at a record level of 51.5 billion yen, with a 24.5% increase compared to the previous year. The strong new business growth during the period also contributed to an increase in total annualized inforce premium for individual insurance and individual annuity insurance to 326.3 billion yen, up 11.9% compared to the end of the prior fiscal year.
In terms of profit-related indicators, Manulife Japan posted a loss of 6.3 billion in Basic Earnings for the period in review, with Operating Income and Net Income showing losses of 5.5 billion yen and 3.4 billion yen, respectively. This was due to increased new business expenses attributable to the strong sales growth during the period, as well as a decision to make a provision to policy reserves, using the opportunity provided by the Company’s successful steady sales growth over the past several years. The Company’s solvency margin ratio stood at 973.2% as of March 31, 2012, a continuing high level indicating the Company’s solid financial strength.
Craig Bromley, President and CEO of Manulife Japan, made the following statement regarding the FY2011 financial results:
“Manulife Japan continues to focus on the strategic diversification of its sales channels and the offering of a wide range of products that meet customers’ needs. During the period, these efforts enabled us to achieve a leap forward in sales performance and to further expand our business operations. Going forward, as a strong, reliable, trustworthy and forward-thinking company, we will continue to take a customer-centric approach in providing quality products and services.”
Manulife Life Insurance Company (“Manulife Japan”) is a member of the Manulife Financial Group.
Manulife Financial is a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. In 2012, we celebrate 125 years of providing clients with strong, reliable, trustworthy and forward-thinking solutions for their most significant financial decisions. Our international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients. We also provide asset management services to institutional customers. Funds under management by Manulife Financial and its subsidiaries were $512 billion (US$512 billion) as at March 31, 2012. The Company operates as Manulife Financial in Canada and Asia and primarily as John Hancock in the United States.
Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘945’ on the SEHK. Manulife Financial can be found on the Internet at manulife.com. Manulife Japan can be found on the Internet at www.manulife.co.jp.
Manulife Life Insurance Company
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