KUALA LUMPUR (Feb 22): Manulife Holdings Bhd has slipped into the red with a net loss of RM6.5 million for the fourth quarter ended Dec 31, 2022 (4QFY2022) against a net profit of RM19.06 million a year ago, dragged by its life insurance business.

The group posted a loss per share of 3.1 sen versus earnings per share of 8.98 sen in 4QFY2021, according to its bourse filing.  

This came despite quarterly revenue rising 26.3% to RM486.38 million from RM385.11 million previously.

Manulife's life insurance business incurred a loss before tax of RM15.81 million compared to a profit before tax of RM20.8 million in 4QFY2021.

This was mainly due to lower realised gains from equity, and unfavourable asset net of insurance contract liability movement as a result of higher interest rates, although there was also higher new business gain.

The last time the group sank into the red was in 2QFY2020, when it recorded a net loss of RM1.1 million.

The dismal quarterly performance dragged Manulife’s full-year net profit down by 78.25% to RM18.91 million from RM86.96 million in FY2021. Annual revenue fell 15.82% to RM1.27 billion from RM1.51 billion.

The group has nevertheless proposed a first and final dividend of seven sen per share, amounting to RM15.14 million. This is the same dividend rate as in FY2021.  

Moving into FY2023, Manulife said global markets are expected to remain volatile and will be influenced by the direction of the US inflation, interest rates and geopolitical developments. Persistent geopolitical tensions in relation to the Russia-Ukraine conflict and the US-China tech war add to the continued uncertainty, it said.

Commenting on its asset management business, Manulife said it expects the choppy trading environment to persist in the near term.

Shares of Manulife closed one sen or 0.49% higher at RM2.07, giving the group a market capitalisation of RM448 million.