Manulife offers Asian retirees new financial products
The company's Asian variable annuity assets have been growing consistently at over 15% in the past couple of years.
"Happy Annuity," as it is called, requires no underwriting and offers guaranteed income for 15 years. It also offers dividends in addition to the annuity benefit at 16% of sum assured annually after the age of 55. Manulife is a leading Canada-based financial services group that has significant insurance and wealth management operations in Asia. It competes with MetLife (MET), AIG (AIG), Prudential Financial (PRU) and Hartford Financial (HIG).
We have a price estimate of $13.56 on Manulife's stock, about 30% above its current market price.
Manulife's Asian operations constitute about 23% of the Trefis price estimate for Manulife's stock. The company's Asian variable annuity assets have been growing consistently at over 15% in the past couple of years, and we expect the growth to continue during the Trefis forecast period driven by strong economic growth in Asia and the growing popularity of variable annuity products over traditional insurance products.
The introduction of new annuity products will further Manulife's sales of annuities in this region. Manulife reported positive initial response to this newly launched product as the customers realize that people are living longer and they need supplemental income. Tax incentives by the government also makes annuities lucrative for customers.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The stock is expensive and the guidance is weak -- not an appetizing combination.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.