Manulife Pulls Leveraged Insurance Loan Product for Wealthy Hong Kong Clients

2. News 3. Insurance 4. Manulife Pulls Leveraged Insurance Loan Product for Wealthy Hong Kong Clients

**Manulife Financial has withdrawn leverage support for an insurance product aimed at wealthy clients in Hong Kong, after the offering reportedly attracted scrutiny from regulators and competitors.**

According to Bloomberg, the product allowed high-net-worth clients to buy a policy with a nominal value of US$80 million using almost four times leverage. Marketing materials reportedly showed that clients would invest US$14.4 million upfront and borrow a further US$56 million at a fixed interest rate of 3.39% for five years.

The structure stood out because of its high leverage and low borrowing cost compared with prevailing market rates for other policy loans, which Bloomberg reported are currently around 7% for retail customers.

Premium financing, where clients borrow against the value of a life insurance policy, is commonly used by high-net-worth individuals. However, regulators in Hong Kong have previously warned consumers about the risks, including returns falling short of projections, unexpected interest costs and potential losses if policies are surrendered early.

A Manulife spokesperson said the company regularly reviews its policy services and makes adjustments as part of routine operations, while remaining committed to meeting customer needs.

Insurance Authority chief executive Clement Cheung did not comment on the specific product, but said the regulator had observed some premium financing and creative financial arrangements in the industry and remained focused on protecting policyholders’ interests.

IQ-EQ Appoints Head of Asset Owners for APAC, Reflecting Expansion of Regional Service Offering

Former Prudential Executive Joins Manulife Hong Kong Board

FundPark Upsizes HSBC-Backed ABS Facility to US$300 Million to Accelerate Digital SME Growth Across...

APAC Advisors Face Greatest Pressure to Adopt AI, but Remain Optimistic on the Opportunities, Says N...

Sun Life Asia Financial Resilience Index: Financial Security Declines as Cost-of-Living Pressure Bit...

Ericsenz Capital Completes Three-Month Bitcoin Dual-Currency Note Distributed by SBI Digital Markets


Former Prudential Executive Joins Manulife Hong Kong Board


Sun Life Asia Financial Resilience Index: Financial Security Declines as Cost-of-Living Pressure Bites


AIA Hong Kong Launches HNW Savings Plan with Legacy Planning Arrangement


Manulife Names Wilton Kee as Hong Kong and Macau CEO

Recaptcha requires verification.