These two insurers target Asia for growth

Article Excerpt

Both these Canadian insurance stocks offer investors growth prospects as well as high dividend yields. We see each as a buy. MANULIFE FINANCIAL, $40.06, is a buy. This safety-conscious stock (Toronto symbol MFC; Shares o/s: 1.8 billion; Market cap: $72.1 billion; TSINetwork Rating: Above Average; Yield: 4.0%; www.manulife.ca) represents one of Canada’s largest life insurers. The company also sells other forms of insurance including health, dental and travel plans; Manulife’s mutual funds and investment management services further diversify its revenue stream. On June 30, 2024, the insurer had $1.48 trillion in assets under administration. Markets outside of Canada—especially Asia (37% of earnings)—increasingly contribute to Manulife’s growth­. In the quarter ended June 30, 2024, per-share earnings rose 9.6%, to $0.91 from $0.83. Manulife plans to continue its major share buyback program as it keeps divesting from lower-growth assets. In February 2024, the company completed a new long-term care (LTC) reinsurance transaction with insurer Global Atlantic. That firm will reinsure $13 billion in existing Manulife LTC coverage. In April 2024,…