MANULIFE(US:MFC) ZACKSยท2024-06-07 16:36Core Insights - Manulife Financial reported strong first-quarter 2024 core earnings of 70 cents per share, exceeding estimates by 6.1% and reflecting a year-over-year increase of 20.7% [2] - The company achieved core earnings of $1.3 billion (C$1.8 billion), marking a 16% improvement year over year, driven by robust growth in its insurance businesses and higher fee income in Global Wealth and Asset Management [2] Financial Performance - New business value (NBV) for the quarter was $488 million (C$669 million), a 34% increase year over year [3] - Annualized premium equivalent (APE) sales rose 21% year over year to $1.4 billion (C$1.9 billion) [3] - The new business contractual service margin (CSM) increased by 52% year over year to $480 million (C$658 million) [3] - The Global Wealth and Asset Management division generated net inflows of $4.9 billion (C$6.7 billion), up 55% year over year [3] Segment Performance - The Global Wealth and Asset Management division's core earnings were $260 million (C$357 million), up 25% year over year, with retirement net inflows of $2.3 billion (C$3.2 billion) more than doubling year over year [5] - The Asia division's core earnings totaled $488 million, reflecting a 39% year-over-year increase, with APE sales up 13% [6] - The Canada division reported core earnings of $265 million (C$364 million), a 3% increase year over year, with NBV rising 71% [7] - The U.S. division's core earnings were $335 million, up 18% year over year [7] Profitability and Capital Adequacy - Core return on equity expanded by 190 basis points year over year to 16.7% [4] - The Life Insurance Capital Adequacy Test ratio stood at 138% as of March 31, 2024 [4] Market Outlook - Estimates for Manulife have been trending downward, with a Zacks Rank of 3 (Hold), indicating an expectation of in-line returns in the coming months [11] - The stock has an aggregate VGM Score of B, with a strong value grade of A, placing it in the top 20% for this investment strategy [10]