2026-11-05 · Source: Insurance Business US
Summary in 3 Points • Manulife's US business reported a third-quarter profit of US$137 million, rebounding from a US$54 million loss last year. • The Quick Quote underwriting tool now automates over 70% of preliminary assessments, improving efficiency for underwriters. • Changes in product mix led to a 20% cut in new business CSM and a 13% drop in new business value. --- Manulife's US unit, operating as John Hancock, achieved a third-quarter profit of US$137 million, a significant recovery from a US$54 million loss the previous year. This turnaround was supported by a 5% rise in core earnings to US$254 million, driven by favourable claims experience and business growth, despite challenges such as higher expected credit loss provisions. The company also reported record group-wide core earnings of C$2.1 billion, reflecting strong performance in both North American and Asian markets. The introduction of the Quick Quote underwriting tool has automated over 70% of preliminary assessments, enhancing efficiency for underwriters. However, a shift in product mix has negatively impacted new business margins, with a 20% reduction in new business CSM and a 13% decline in new business value. This trend may lead to more competitive pricing for life insurance advisors, as the focus shifts towards lower-margin products. The implications for the London Market could involve adjustments in underwriting strategies and product offerings in response to similar trends. The shift in product mix cutting new business value suggests potential implications for underwriting strategies and competitive pricing in the London Market.
The shift in product mix cutting new business value suggests potential implications for underwriting strategies and competitive pricing in the London Market.