Manulife profit falls as market volatility hits wealth & asset management unit

(Reuters) - Manulife Financial Corp reported a drop in fourth-quarter profit on Wednesday as investors pulled capital from the Canadian insurer's wealth and asset management unit amid heavy market volatility.

Substantial asset management units at insurers have taken a hit from equity market declines through 2022, as investors reeled from fears of a recession, hefty interest rate-hikes and geopolitical turmoil.

Manulife's global wealth and asset management unit posted net outflows of C$8.3 billion ($6.20 billion) in the fourth-quarter, compared with inflows of C$8.1 billion a year earlier.

Core earnings at the unit fell 31% to C$267 million in the quarter, from C$387 million a year earlier.

The company said it experienced top-line pressures throughout the past year primarily due to COVID-19 containment measures in Asia and challenging market conditions, which were partially offset by expense management.

Net income attributed to shareholders fell roughly 9% to C$1.89 billion in the quarter ended Dec. 31, compared with C$2.08 billion a year earlier.

(1 = 1.3386 Canadian dollars)

(Reporting by Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri)