KUALA LUMPUR (May 27): Life insurer Manulife Holdings Bhd (KL:MANULFE) said on Monday its net profit more than doubled in the first quarter from a year earlier, led by a jump in investment income.

Net profit for the three months ended March 31, 2024 (1QFY2024) was RM27.85 million, against RM13.55 million over the same period a year earlier, Manulife said in an exchange filing. Revenue for the quarter rose 23.2% year-on-year to RM198.97 million from RM161.56 million.

Looking ahead, Manulife said the outlook for the insurance industry in Malaysia presents a mix of opportunities and challenges.

"Macroeconomic headwinds and inflationary pressures may lead to consumer caution in committing to long-term life insurance plans,” Manulife said. “Nevertheless, the heightened customer awareness regarding health protection, wealth preservation and retirement preparedness has generated a widespread sense of being uninsured or underinsured.”

Manulife, the locally-listed unit of the Canadian multinational insurance company, said it has undertaken several initiatives under the "Scale Up" agenda including strengthening growth by expanding its professional agency force and accelerating digitisation.

By segment, the life insurance business reported improved performance mainly contributed by higher contractual service margin amortisation, better claim experience and higher unrealised fair value gains from equity investments.

Meanwhile, the asset management services' improved earnings were mainly attributed to higher fee income earned on asset under management.

Commenting on the prospects of its asset management business, Manulife said that it is positive on the local equity market for the remainder of the year.

"Performance is expected to be driven by clear policy rollouts, stimulus and infrastructure projects, attractive valuations, high dividend yields and the weaker ringgit are likely to attract foreign funds," it added.

Shares of Manulife closed 18 sen or 7.26% lower at RM2.30, giving the group a market capitalisation of RM504.78 million.