Growth for our two top Canadian insurance recommendations—including for their Asian operations—may be slowed by the COVID-19 outbreak.

However, both should rebound quickly once the coronavirus outbreak eases. In the meantime recent dividend hikes have also boosted income for investors.

MANULIFE FINANCIAL CORP. (Toronto symbol MFC; www.manulife.ca) is Canada’s largest life insurer.

Manulife sells other forms of insurance, including health, dental and travel plans; its mutual funds and investment management services further diversifies its revenue stream.

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As of December 31, 2019, the company had $1.2 trillion in assets under administration. Increasingly, markets outside of Canada contribute to its growth­—and investor value.

In the quarter ended December 31, 2019, overall earnings rose 10.5%, to $1.48 billion from $1.34 billion, a year earlier. With fewer shares outstanding, investors saw earnings per share rise 12.3%, to $0.73 from $0.65. Profits in Asia rose 6.5%, to $494 million from $463 million.

Manulife continues to focus on controlling its costs. In 2019, its core expense growth was 3%, less than half its historical average. It also managed to find $700 million in total expense savings in 2019. Investors can expect those savings to rise to $1 billion by 2022.

With the March 2020 payment, Manulife handed its investors a 12.0% dividend hike. The new annual rate of $1.12 a share gives you a high 6.5% yield. In the latest quarter, the company paid investors 34% of its earnings, well within its target range of 30% to 40%.

Blue Chip Stocks: This firm yields 4.6% on a modest payout ratio

SUN LIFE FINANCIAL, (Toronto symbol SLF; www.sunlife.ca) sells life insurance, savings, retirement and pension products.

The company operates in Canada, the U.S., Asia and the U.K. It has $1.13 trillion in assets under management.

In the quarter ended December 31, 2019, Sun Life’s earnings rose 10.3%, to $792 million from $718 million. Investors saw earnings, on a per-share basis, rise 12.6%, to $1.34 from $1.19, on fewer shares outstanding.

More specifically, earnings from Canadian operations increased 7.8% on strong Group Retirement sales. U.S. earnings improved 13.2% as a result of lower life insurance claims and higher gains on its investment holdings.

Sun Life’s earnings in Asia gained 2.1%, reflecting higher demand for insurance and wealth management products.

The company recently added value for investors by streamlining its wealth management operations: they’re now consolidated under the “SLC Management” banner. In the fourth quarter, SLC had net inflows of $600 million U.S. and $148.2 billion in assets under management.

In December 2019, Sun Life raised your quarterly dividend 5.0%, to $0.55 a share from $0.525. Today’s annual rate of $2.20 yields a high 4.6%. The company’s payout ratio in the 2019 fourth quarter was 41%, at the low end of its medium-term goal of 40% to 50%.

Recommendation in Canadian Wealth Advisor: Sun Life Financial Inc. and Manulife Financial Corp. are buys.