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.
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