DAVOS, Switzerland, Jan 16 (Reuters) – Downsizing is not “the top priority” for Manulife Financial Corp (MFC.TO), Canada’s largest insurer, as it sees significant growth opportunities, particularly driven by Asia, CEO Roy said Gori on Monday.
“We are in growth mode,” Gori told the Reuters Global Markets Forum on the sidelines of the World Economic Forum’s annual meeting in Davos, adding that his firm has increased headcount.
“We are growing at more than double or triple GDP in most of the markets in which we operate. That means we’re investing organically to grow our business and…possibly also considering inorganic growth opportunities.”
Gori said Manulife’s US and Canadian markets are stable and growing at a reasonable pace, while he sees a “phenomenal opportunity” in Asia given the region’s expanding middle class, despite any trade shocks it may face.
While China’s reversal of its zero-COVID policy could pose some short-term challenges, Gori expected activity to pick up in the second half of the year, providing impetus to Asia and the rest of the world.
Gori said he was not worried the Federal Reserve would tighten too much as he expects inflation to remain stubbornly high and central banks to stick with higher interest rates for longer.
“We will see at least three rate hikes of 25 basis points by the Fed. If they have to cut rates, it might be 25 basis points or 50 basis points, but I don’t see a 200 basis point rate cut in the outlook for 2023 or 2024.”
The prospect of an impending global recession cast a long shadow over Davos on Monday as participants counted the likely cost to their economies and businesses.
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Reporting by Divya Chowdhury in Davos and Savio Shetty in Mumbai; Additional reporting by Nishara Pathikkal in Bengaluru; Adaptation by Leslie Adler
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