Nichola Saminather

(Reuters] – Canada’s top life insurers Manulife Financial (NYSE) and Sun Life Financial(NYSE:), reported on Wednesday that core earnings were down from a previous year due to the COVID-19 pandemic, which also affected their Asian earnings. Manulife missed estimates.

Manulife’s core earnings were C$1.5 billion (or 77 Canadiancents per share) in the three-months ended March 31. This is a decrease from C$1.6 million, which was 82 Canadiancents per share, one year ago. Analysts expected earnings to stay flat.

Sun Life’s underwriting profit was C$843million, or C$1.44 per share in the three-months ended March 31. This is down from C$850million, or C$1.45, one year ago. Analysts expected C$1.41 per share.

Manulife blamed the drop in profits on “the rapid, unprecedented and unprecedented resurgence in COVID-19” (which) had disrupted many business activities across Asia. This was offset by 20% home growth which saw profits drop 5.8%.

Sun Life suffered a 31% drop in U.S. earnings due to higher death and health claims and a 4 percent decrease in Asia. This was due to lower sales in Hong Kong, which were restricted by COVID-19.

Sun Life paid C$1 Billion COVID-related claims. This was stated by Kevin Strain (CFO), at Wednesday’s Annual Shareholder Meeting.

In spite of recent volatility, both companies posted higher profits from the wealth and asset-management units. Sun Life’s profit rose nearly 4% compared with a year prior, while Manulife’s was up 12%. Both experienced growth in assets under administration.

($1 = 1.2993 Canadian dollars)