Manulife Financial's Hong Kong division plans to add more agents and build up its share of Chinese currency-denominated business, the unit's chief executive said on September 07. Michael Huddart, head of the Hong Kong unit of Canada's largest insurer, said enhanced distribution is the key for growth in the company's insurance, pension and mutual fund businesses.
"I'm expecting all three to grow as we move forward," he said in an interview. He said he plans to add to the company's current roster of 4,600 Hong Kong-based agents, but also will seek to build more partnerships with banks and independent distributors.
The insurer already has a number of such relationships, including an agreement with CITIC Bank International that the partners renewed for 10 years earlier this year. "Obviously we continue to look to get shelf space in the other banks that operate in Hong Kong," he said.
Manulife's Hong Kong business is part of a growing Chinese presence that also includes a joint venture with China's Sinochem, which is licensed to operate in nearly 50 cities. Manulife operates in 10 Asian countries, with the biggest business units in Hong Kong and Japan. Asian profit is expected to total C$1.5 billion ($1.5 billion) a year by 2015, which would be more than double the unit's 2010 profit. Toronto-based Manulife also owns the John Hancock insurance business in the United States.
Manulife's Hong Kong insurance sales rose 10 percent to $50 million in the second quarter, while wealth sales jumped 45 percent $254 million, helped by demand for Manulife's short-term yuan-denominated endowment product.
Huddart said yuan insurance and wealth products, which currently represent only a small portion of total premiums and deposits, could reach 25 to 30 percent over the next five years. He said about 10 percent of the Hong Kong insurance market is in yuan, but that the level is growing. "All the signs are the (yuan) will continue to internationalise," he said.
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