UPDATE 1-Manulife says will prioritize organic growth, dividend hikes for C$29 bln excess capital
(Adds share prices, background)
By Nichola Saminather
TORONTO, Feb 11 (Reuters) - Canada's top insurer ManulifeFinancial Corp will prioritize organic growth, dividendincreases and share buybacks over acquisitions for its C$29billion ($22.9 billion) of excess capital, its chief executivesaid on Thursday.
"We don't need M&A to deliver on our medium-term goals of10% to 12% core earnings per share growth," CEO Roy Gori said onan analyst call after reporting higher-than-expectedfourth-quarter earnings on Wednesday.
"When we do deploy capital, for any M&A, we will do thatopportunistically ... when we've got a high degree of confidencethat we can execute against that agenda," he added.
Gori, in an interview on Wednesday, said the company expectsAsia to account for half of its core earnings from bothinsurance and wealth and asset management by 2025, up from 41%in 2020.
Smaller rival Sun Life Financial Inc also beatearnings estimates on Wednesday, helped by strong wealthmanagement growth.
The chief executives of both companies said they areoptimistic about 2021, thanks to the deployment of coronavirusvaccines and the reopening of economies from prolonged lockdownsin many markets, after a challenging 2020 from which theymanaged to emerge relatively unscathed.
The two companies paid out a total of C$590 million incoronavirus-related death claims in 2020.
Sun Life executives told analysts on Thursday it wasreducing its real estate footprint in Canada and the UnitedStates and expects to take a C$40 to C$60 million charge in thefirst quarter as a result.
Shares of Manulife rose 2.1% to C$25.12 in morning tradingin Toronto, while Sun Life shares were up 1.2% at C$62.50. Bothwere on track for their highest close in nearly a year. TheToronto stock benchmark was down 0.15%.
($1 = 1.2666 Canadian dollars)(Reporting By Nichola SaminatherEditing by Bill Berkrot)
