Canadian insurance giants Manulife Financial (MFC) and Sun Life Financial (SLF) are raising their premiums to offset higher costs due to inflation.
Manulife this week posted fourth-quarter earnings of $0.84 per share, up 13.5% from a year earlier and beating analysts' expectations. Sun Life Financial also reported higher earnings.
Sun Life has already raised premiums in its disability and group life businesses, but those will take some time to take effect as those policies are longer term.
Manulife’s senior leadership team also said that they will be raising premiums for its various insurance products, including life, home and automotive, this year to help it manage inflation that is currently at a 30-year high in Canada.
Increased market volatility, higher interest rates and high stock valuations are likely to send more investors into cash this year, reducing flows into funds in 2022, the insurers said when releasing their latest earnings.
Manulife shares jumped 3.9% to $27.95 yesterday (February 11), its highest level since 2008. Sun Life’s stock declined 3.9% to $70.97 on the Toronto Stock Exchange.
