Manulife Financial Corp (NYSE:MFC) stock rose 3.55% (As on November 9, 11:45:38 AM UTC-4, Source: Google Finance) after the company better-than-expected earnings for the third-quarter, boosted by insurance sales in Asia and higher returns on investment amid rising interest rates. Core earnings rose 28% to C$1.74 billion ($1.26 billion). Manulife said its business in Asia was driven by demand from mainland Chinese visitors following the reopening of the Hong Kong border this year. The company said higher interest rates boosted its earnings from investments and surplus assets, as well as improved insurance sales in Canada. Life insurance companies generally buy long term bonds to support their products that cover long periods of time. The rise in interest rates have benefited life insurers as they can roll over their maturing bonds at higher interest rates. Annual premium equivalent (APE) sales, an annualized sales metric, at Manulife’s Asia unit rose 20% to C$835 million and in Canada rose 51%. Overall, APE sales rose 21%. Asia is the biggest sales contributor, given Manulife’s presence in 12 markets that includes over 100,000 agents and over 100 bank partnerships. Core earnings in Asia rose 33%, while they rose 4% in Canada.

MFC in the third quarter of FY 23 has reported the adjusted earnings per share of 69 cents, beating the analysts’ estimates for the adjusted earnings per share of 60 cents, according to Zacks Investment Research. The company had reported the adjusted revenue of $6.95 billion in the third quarter of FY 23. Net income attributed to shareholders of $1.0 billion, up $0.2 billion from transitional net income attributed to shareholders in the third quarter of 2022 and up $0.5 billion compared with 3Q22 net income attributed to shareholders. The increase in 3Q23 net income attributed to shareholders compared with 3Q22 transitional net income attributed to shareholders was driven by growth in core earnings and a one-time tax-related benefit of $290 million, partially offset by a larger net charge from market experience.

On the other hand, during 3Q23 the company launched a unified high net worth onboarding platform in Bermuda Hong Kong and Singapore, to the international brokers to deliver a consistent high touch experience for both distributors and customers by streamlining new business application, underwriting and compliance processes across the three high net worth markets. In Canada, the company expanded the Personalized Medicine program to all Group Benefits extended healthcare plans.