Manulife Financial Corp (NYSE:MFC) stock rose 1.92% (As on August 10, 11:22:12 AM UTC-4, Source: Google Finance) after the company posted mixed results for the second quarter of FY 23. The company posted a core net income of C$1.64 billion, for the three months ended June 30, compared with C$1.53 billion, a year earlier. The increase in core earnings compared with 2Q22 was driven by an increase in expected investment earnings related to higher investment yields and business growth, higher returns on surplus assets net of higher cost of debt financing and a smaller net charge in the provision for ECL. The company has reported net income attributed to shareholders of $1.0 billion in 2Q23, $0.9 billion higher than 2Q22 transitional net income attributed to shareholders, and $3.1 billion higher than 2Q22 net loss attributed to shareholders.

MFC in the second quarter of FY 23 has reported the adjusted earnings per share of 62 cents, beating the analysts’ estimates for the adjusted earnings per share of 60 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $9 billion in the second quarter of FY 23, missing the analysts’ estimates for revenue by 20.43%. New business value (“NBV”) of $585 million in 2Q23, an increase of 10% compared with 2Q22.

Annualized premium equivalent (“APE”) sales of $1.6 billion in 2Q23, an increase of 12% compared with 2Q22 In Asia, APE sales increased 26%, driven by growth in Hong Kong and Asia Other1, partially offset by lower sales in Japan. In Hong Kong, APE sales doubled, reflecting strong growth in our broker and bancassurance channels, primarily driven by a return of demand from mainland Chinese visitor (“MCV”) customers following the reopening of the border between Hong Kong and mainland China since February 2023. In Japan, APE sales decreased 17%, driven by lower sales in other wealth and corporate-owned life insurance products. In Canada, APE sales decreased 11%, driven by usual variability in the group insurance market with lower large-case sales partially offset by higher mid-size business sales, as well as lower sales of segregated fund products. In the U.S., APE sales decreased 15% due to the adverse impact of higher short-term interest rates on accumulation insurance products, particularly for the higher net worth customers. APE sales of products with the John Hancock Vitality PLUS feature represented 75% of overall U.S. sales.