Manulife’s core earnings grew 6% to C$1.74 billion (US$1.3 billion) in the second quarter, or 91 Canadian cents per share, beating analysts’ estimates. The Asia unit led the way with a 40% jump in profit over the same period last year, according to a statement Wednesday.

Core earnings in its wealth and asset management business grew 23%, but the group saw a slowdown in new business. Net inflows were just C$100 million — down from C$6.7 billion in the first quarter — as it lost some retirement-savings assets.

“We believe that the results will be warmly recognised by the market and, despite its strong year-to-date performance, we would expect that MFC’s second quarter earnings will be supportive to its valuation,” Jefferies analyst John Aiken said in a note to clients.

Pulling back from volatile and less profitable activities and reducing risks are among the insurer’s priorities, CEO Roy Gori said during an investor day in June. The Canadian firm been using reinsurance transactions to shed less-profitable blocks of business, which frees up capital but can also be a drag on earnings.

Manulife is also relying on alternative investment strategies to lessen volatility, such as a US$16 billion bet on the timber industry.

In the second quarter, core earnings in the Canadian segment went up 7%, while the US division slipped by 11%.