Asset Management Business to Boost Profit

Manulife is targeting a 10-20% contribution to the group's profitability from the asset management business in five years time.

The group hopes to get its asset management licence by 30/9/2008. Earlier, Manulife walked away from the deal to buy Asia Unit Trusts Bhd as "taking a 70% stake and not 100% is awkward for Manulife".

For FY2007, the net profit of Manulife jumped 68% to RM85 mil and revenue improved by 48% to RM80.7 mil (industry growth: 9%). Sales in 1Q2008 also grew strongly at 32%.

Although the takaful market is attractive, Manulife is in no hurry to acquire an existing takaful business but would rather wait for the right opportunity and at the right price.

Source: The Edge Malaysia May 5, 2008