Manulife's (MFC) Unit Inks Partnership With Parreira Almond
Manulife Financial Corporation’s MFC Manulife Investment Management, a leading global wealth and asset management brand, recently entered into a minority partnership with Parreira Almond Holding Company, LLC (PAHC). This partnership marks an important step in Manulife's strategy to support its clients and strengthen its presence in the agricultural sector.
PAHC, a family-owned company specializing in almond hulling, shelling, processing and marketing, will receive investment on behalf of Manulife's clients. This investment will position PAHC and its subsidiaries, RPAC, LLC and Parreira Almond Processing Company, LLC, well for future growth and further acquisitions, ensuring a consistent supply of high-quality almonds.
The Significance of the Partnership & Manulife's Expertise
Manulife Investment Management, with its comprehensive private markets strategies, manages approximately 400,000 acres of prime farmland across the United States, Canada, Chile and Australia. The company's expertise in managing farmland and timberland, along with its commitment to sustainable practices, positions it as a trusted partner in the agricultural sector. This minority partnership with PAHC showcases Manulife's long-term vision and commitment to supporting businesses with a strong track record in agriculture, such as PAHC, to drive growth and generate favorable returns for its investors.
Manulife's Impressive Inorganic Growth & Focus on Value Creation
Historically, Manulife has demonstrated its prowess in strategic acquisitions, which have played a crucial role in the company's growth and success. These acquisitions have enabled it to expand its investment options and capture additional value across its portfolio. By partnering with PAHC, Manulife Investment Management can further enhance its agriculture platform, strengthen its position in the almond industry and mitigate risks. This partnership is another testament to Manulife's commitment to building successful alliances that provide enhanced returns, diversification and access to various end markets.
Manulife is consistently expanding its Wealth and Asset Management (WAM) business around the world, which, in turn, has been driving its core earnings growth. The company’s investment wing boasts a compelling presence in North America and Asia. Manulife Asset Management has identified Europe (and the wider EMEA market) as a significant growth area. This has prompted the life insurer to make long-term investments in this region.
We believe this business is slated for long-term growth. The Global WAM business continued to benefit from the geographic and line-of-business diversification. Total average assets under management and administration in this segment were $814 million at first-quarter 2023 end.
Zacks Rank and Price Performance
Manulife carries a Zacks Rank #2 (Buy) currently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of MFC have increased 4.7% in a year compared with the industry’s increase of 8.6%.
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Other Stocks to Consider
Some other top-ranked stocks from the insurance industry are Reinsurance Group of America RGA, Primerica PRI and GoHealth GOCO.
Reinsurance Group’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, while missing in one. RGA sports a Zacks Rank #1.
The Zacks Consensus Estimate for RGA’s 2023 and 2024 earnings per share indicates a year-over-year increase of 22.9% and 1.4%, respectively. Year to date, RGA shares have gained 1.5%.
Primerica’s earnings surpassed the Zacks Consensus Estimate in three of the last four quarters, while missing in one. PRI carries a Zacks Rank #2.
The Zacks Consensus Estimate for PRI’s 2023 and 2024 earnings per share indicates a year-over-year increase of 34% and 11.5 respectively. Year to date, PRI shares have surged 35.4%.
GoHealth’s earnings surpassed the Zacks Consensus Estimate in two of the last four quarters, while missing in the other two. GOCO carries a Zacks Rank #2.
The Zacks Consensus Estimate for GOCO’s 2023 and 2024 earnings per share indicates a year-over-year increase of 73.1% and 12.2%, respectively. Year to date, GOCO’s shares have surged 91.6%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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