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Manulife Financial headquarters in Toronto. The company reports earnings on Thursday.
Manulife Financial headquarters in Toronto. The company reports earnings on Thursday.
(KEVIN FRAYER/Canadian Press)

Insurers seek higher margins in low-interest-rate environment

Individual life insurance sales in Canada took a hit in the latest quarter at both Manulife Financial Corp. and Great-West Lifeco, after the companies decided to raise prices to protect their profit margins.

Margins have been pinched by low interest rates. In this environment insurers must decide if they want to accept smaller profit margins to keep up their market share, or raise prices and risk lower sales.