Nichola Sainather

TORONTO (Reuters] – Canada’s biggest life insurers, Manulife Financial, and Sun Life Financial, reported a 33% increase in their third quarter profits. The growth of new business and increased assets under management was the driving force behind this report.

Sun Life exceeded analysts’ expectations thanks to a 23% increase in earnings from its Asset Management business, which compensated losses in Asia and America from COVID related claims. Manulife however missed forecasts due to weather-related charges.

While insurance companies have felt the effects of the pandemic in Canada and other related claims on their businesses, they are seeing a boost to wealth management thanks to government stimulus and lockdown-induced savings.

Manulife Canada, Canada’s largest life insurance company, saw core earnings rise to C$1.5billion ($1.2billion), or 76 Canadiancents per share in the three month ended Sept. 30 from C$1.45billion, or 73cs one year earlier. Analysts expected to see 79 Canadian cents.

A C$152million charge was made by the company in its property & casualty reinsurance industry due to losses from Hurricane Ida in the U.S. Gulf Coast. The loss of floods in Europe and hurricane Ida in Europe. This amount is higher than what Canaccord Genuity analysts had expected.

Manulife saw an increase in its assets under management, which helped to offset the lower earnings from Asia and America.

Sun Life, a smaller company, reported a C$902 million (or C$1.54 each share) in its underwriting profit for the three months ending Sept. 30. This was down from C$842 millions, or C$1.44, one year prior. Analysts expected C$1.52 Canadian dollars.

The decline in earnings in America was 19% and in Asia it was 12%, respectively. This is due in part to COVID-19-related claims from the United States, Indonesia, and the Philippines as well as negative effects of foreign currency movements. This was partially offset by 23% higher earnings at its asset management unit.

($1 = 1.2390 Canadian dollars)