C$ unless otherwise
stated
TSX/NYSE/PSE: MFC SEHK: 945
TORONTO, June 29, 2021 /CNW/ - Manulife Financial
Corporation ("Manulife" or the "Company") is hosting an Investor
Day today at 8 a.m. EDT. Manulife's
senior management will present the next phase of the Company's
strategy, with an emphasis on its Asia and Global Wealth and Asset Management
businesses and digital transformation. New supplemental information
has been made available for Asia
and Global Wealth and Asset Management and this information will
also be provided on an ongoing basis as part of the Company's
financial disclosures.
In addition to presentations, the event will include live
Q&A sessions for institutional investors and research analysts
to engage with the presenters and other executives. Interested
parties may access the live webcast here. The Investor Day slide
presentations can also be found here. An archived version of the
webcast audio and video will be available the day after the live
event here for six months. More information about the Company can
be found at the same location.
Investor Day Agenda
Roy
Gori
President and Chief
Executive Officer
|
Strategic Update:
Accelerating our growth engines, powering the next phase of our
journey
|
Phil
Witherington
Chief Financial
Officer
|
Financial Update:
Strength. Execution. Growth.
|
Anil
Wadhwani
President and CEO,
Manulife Asia
|
Asia: Realizing our
potential
|
Paul
Lorentz
President and CEO,
Manulife Investment Management
|
Global WAM: Unlocking
the next stage of growth
|
Karen
Leggett
Global Chief
Marketing Officer
|
Accelerating our
customer and digital strategy
|
A New Phase of our Strategy
At our 2018 Investor Day,
we introduced our five strategic priorities, which include:
Portfolio Optimization, Expense Efficiency, Accelerate Growth,
Digital, Customer Leader and High Performing Team. Since then,
Manulife has made significant progress executing on its ambition to
become the most digital, customer-centric global company in the
industry. Manulife is pleased to have achieved our Portfolio
Optimization target three years ahead of schedule, releasing
$5.9 billion of capital. In addition,
Manulife's $1 billion expense savings
target was achieved two years ahead of schedule and the Company is
on track to deliver on its Expense Efficiency target to
consistently report an expense efficiency ratio of less than 50 per
cent by 2022.1 In 2020, the Company achieved top
quartile employee engagement amongst global financial services
companies and insurance peers.
_______________________________
|
1 The
Company's strategic priorities and 2022 targets, medium-term
targets, and 2025 supplemental goals do not constitute guidance.
See "Caution regarding forward-looking statements"
below.
|
"Over the last three years we've strengthened our foundations
significantly. Our strong execution and success on these priorities
have positioned us well for future success, and the next phase of
our transformation," said Manulife President & Chief Executive
Officer Roy Gori. "We have entered a
new phase of our strategy, with a greater focus on accelerating the
growth of our highest potential businesses and are committing to
meaningful metrics to measure our progress through to 2025."
"Manulife remains committed to our medium-term targets and has a
clear path to delivering 10 to 12 per cent annual Core EPS growth,"
said Manulife Chief Financial Officer Phil
Witherington.
Discussions at Manulife Investor Day 2021 will focus on the next
phase of our journey, with plans to:
- Generate 75 percent of total company core earnings from highest
potential businesses by 2025.
- Reach a Net Promoter Score (NPS) of +37 and Straight Through
Processing (STP) of 88 per cent by 2025.
- Continue to focus on Portfolio Optimization and reduce the
combined contribution from LTC and VA to less than 15 per cent of
total company core earnings by 2025.
The earnings profile of the Company has shifted as a function of
growth in our Asia and Global WAM
businesses outpacing other segments. As a result, Manulife has
published expanded disclosures for Asia and Global Wealth and Asset Management to
provide additional information for measuring progress. The new
disclosures can be found in an updated 1Q21 Statistical Information
Package here.
Accelerating Growth in Asia
and Global Wealth & Asset Management
Our strategy continues to be supported by the macro environment,
which is being shaped by three megatrends: the growth and emergence
of the middle class in Asia, an
aging global population, and the digitization of the consumer.
Manulife is uniquely positioned to capitalize on these trends over
the next decade and beyond.
With 120 years of experience in Asia, Manulife is a top tier pan-Asian life
insurer, with insurance and/or WAM operations in 13 markets in
Asia. The growth and emergence of
the middle class in Asia, which
will represent approximately two-thirds of the world's middle
class2, will drive higher demand for financial services
and insurance protection, creating a tremendous opportunity for
Manulife. With a growing mortality protection gap and very low
insurance penetration rates3 across many of our markets
in Asia, the Company expects to
see a very significant growth rate in insurance premiums over the
next decade in Asia at more than
double the rate4 it will in North America.
______________________________
|
2 Source: Brookings, the
unprecedented expansion of the global middle class
(2017).
|
3 Source: Swiss Re Institute, Sigma
04/2020: Closing Asia's mortality protection gap (July
2020).
|
4 Source: Allianz insurance report
2020. Asia excludes Japan.
|
Anil Wadhwani, President and CEO, Manulife Asia said, "Manulife
Asia aims to accelerate our growth by capitalizing on these
megatrends and solidifying our position as a top tier pan-Asian
life insurer. With an enviable geographic footprint, balanced
distribution, and full range of products, Manulife is focused on
growing and digitizing our leading agency force, deepening customer
penetration with our bank partners, as well as accelerating growth
in key markets in China and
Southeast Asia."
Manulife's Global Wealth and Asset Management business, Manulife
Investment Management, has delivered strong operating results over
the last five years, with net inflows in ten of the past eleven
years, supported by solid investment performance.
"Manulife Investment Management has a clear strategic direction
and is well positioned to capitalize on a number of global macro
trends through our insurance heritage and asset management
business, including public and private market capabilities and
retail, institutional and retirement services. And, we have made
strategic long-term investments in growing markets including
China and India," said Paul
Lorentz, President and CEO, Manulife Investment
Management.
The next phase of growth for Manulife Investment Management is
focused on three key pillars that will position the Company well
for growth. Our first pillar is about strengthening our commitments
to our Retail business customers by expanding our distribution,
enriching our digital capabilities and continuing to launch
market-leading investment solutions. Our second pillar is focused
on our Retirement business and providing advice and investment
solutions to help plan participants save and prepare for their
golden years. This will include enhanced digital experiences,
improved use of data and analytics for the benefit of clients, and
our diverse product shelf. Our third pillar is on augmenting our
asset management capabilities by developing differentiated public
and private market investment strategies, while building scale
across the business and driving further awareness of ESG with
unique integrated solutions for clients.
Making meaningful progress on our journey to become a
Digital, Customer Leader
Since 2018, Manulife has invested more than $750 million to enhance our digital capabilities,
"Our strategy takes a highly-targeted approach in how we select and
plan our investments to have maximum impact for customers,
shareholders and the company," said Karen
Leggett, Global Chief Marketing Officer.
Manulife has deployed Human-Centered Design globally, with a
dedicated team of practitioners to systematically research, design,
iterate, and deliver best-in-class experiences, validated with
customers at each step. In the past year, Manulife has engaged more
than 7,500 customers in this process, contributing to a 50 per cent
increase in NPS. The Company is accelerating its Customer &
Digital strategy by listening to customers and addressing their
most important feedback real-time and upfront, building
market-leading experiences that emphasize high-value interactions
that matter most to customers, and focusing on extending
relationships and advice for customers in addressing their health
and wellness needs.
Manulife is positioned well to capitalize on the significant
value yet to be unlocked on its path to become a Digital Customer
Leader.
Non-GAAP Financial Measures
Manulife uses a number of non-GAAP financial measures to measure
overall performance and to assess each of its businesses, including
its medium-term targets of: annual diluted core earnings per common
share ("core EPS") growth of 10% to 12% over the medium term, core
return on common shareholders' equity ("core ROE") of 13% or more,
a leverage ratio of 25% and a common share dividend payout ratio of
30% to 40% of core earnings.
A financial measure is considered a non-GAAP measure for
Canadian securities law purposes if it is presented other than in
accordance with generally accepted accounting principles used for
the Company's audited financial statements. Non-GAAP measures
include core earnings, core EPS, core ROE, capital, net annualized
fee income, net fee income yield, and expense efficiency ratio. For
more information on non-GAAP financial measures, including those
referred to above, see "Performance and Non-GAAP Measures" in
Manulife's 2020 Annual Report and First Quarter 2021 Report to
Shareholders.
Net annualized fee income yield on average AUMA ("net fee income
yield") is a non-GAAP ratio. It is equal to net annualized fee
income from Global Wealth and Asset Management ("Global WAM")
channels, expressed as a basis point ratio over average assets
under management and administration (AUMA). This ratio provides
information on the business' basis point return from managing
AUMA.
Net annualized fee income represents Global WAM's income before
income taxes, adjusted to exclude general expenses, investment
income and non-AUMA related net benefits and claims. It also
excludes the components of Global WAM's net fee income from
managing assets on behalf of other Segments. The measure is
annualized based on the number days in the year divided by the
number of days in the reporting period.
Caution Regarding Forward Looking-Statements
From time to time, Manulife makes written and/or oral
forward-looking statements, including in this document. In
addition, our representatives may make forward-looking statements
orally to analysts, investors, the media and others. All such
statements are made pursuant to the "safe harbour" provisions of
Canadian provincial securities laws and the U.S. Private Securities
Litigation Reform Act of 1995. The forward-looking statements in
this document include, but are not limited to, statements with
respect to the Company's strategic priorities and 2022 targets for
net promoter score, employee engagement, its high potential
businesses, expense efficiency and portfolio optimization; its
medium-term targets for shareholder returns, core EPS growth, core
ROE, leverage ratio and common share dividend payout ratio; the
next phase of the Company's strategy and 2025 supplemental goals
related to its highest potential businesses, net promoter score,
straight-through-processing and portfolio optimization for the
long-term care (LTC) and variable annuities (VA) businesses; the
Company's plans to accelerate growth of its Asia and Global Wealth and Asset Management
businesses and to become a digital, customer leader; and also
relate to, among other things, our objectives, goals, strategies,
intentions, plans, beliefs, expectations and estimates, and can
generally be identified by the use of words such as "may", "will",
"should", "expect", "plan", "aim", "continue", and "target" (or the
negative thereof) and words and expressions of similar import, and
include statements concerning possible or assumed future results.
Although we believe that the expectations reflected in such
forward-looking statements are reasonable, such statements involve
risks and uncertainties, and undue reliance should not be placed on
such statements and they should not be interpreted as confirming
market or analysts' expectations in any way.
Certain material factors or assumptions are applied in making
forward-looking statements and actual results may differ materially
from those expressed or implied in such statements. Important
factors that could cause actual results to differ materially from
expectations include but are not limited to: general business and
economic conditions (including but not limited to the performance,
volatility and correlation of equity markets, interest rates,
credit and swap spreads, currency rates, investment losses and
defaults, market liquidity and creditworthiness of guarantors,
reinsurers and counterparties); the severity, duration and spread
of the COVID-19 outbreak, as well as actions that have been, or may
be taken by governmental authorities to contain COVID-19 or to
treat its impact; changes in laws and regulations; changes in
accounting standards applicable in any of the territories in which
we operate; changes in regulatory capital requirements; our ability
to execute strategic plans and changes to strategic plans;
downgrades in our financial strength or credit ratings; our ability
to maintain our reputation; impairments of goodwill or intangible
assets or the establishment of provisions against future tax
assets; the accuracy of estimates relating to morbidity, mortality
and policyholder behaviour; the accuracy of other estimates used in
applying accounting policies, actuarial methods and embedded value
methods; our ability to implement effective hedging strategies and
unforeseen consequences arising from such strategies; our ability
to source appropriate assets to back our long-dated liabilities;
level of competition and consolidation; our ability to market and
distribute products through current and future distribution
channels; unforeseen liabilities or asset impairments arising from
acquisitions and dispositions of businesses; the realization of
losses arising from the sale of investments classified as
available-for-sale; our liquidity, including the availability of
financing to satisfy existing financial liabilities on expected
maturity dates when required; obligations to pledge additional
collateral; the availability of letters of credit to provide
capital management flexibility; accuracy of information received
from counterparties and the ability of counterparties to meet their
obligations; the availability, affordability and adequacy of
reinsurance; legal and regulatory proceedings, including tax
audits, tax litigation or similar proceedings; our ability to adapt
products and services to the changing market; our ability to
attract and retain key executives, employees and agents; the
appropriate use and interpretation of complex models or
deficiencies in models used; political, legal, operational and
other risks associated with our non-North American operations;
acquisitions and our ability to complete acquisitions including the
availability of equity and debt financing for this purpose; the
disruption of or changes to key elements of the Company's or public
infrastructure systems; environmental concerns; our ability to
protect our intellectual property and exposure to claims of
infringement; and our inability to withdraw cash from
subsidiaries.
Additional information about material risk factors that could
cause actual results to differ materially from expectations and
about material factors or assumptions applied in making
forward-looking statements may be found in our most recent interim
report under "Risk Management and Risk Factors Update" and
"Critical Actuarial and Accounting Policies", under "Risk Factors
and Risk Management" and "Critical Actuarial and Accounting
Policies" in the Management's Discussion and Analysis in our most
recent annual report, and in the "Risk Management" note to the
consolidated financial statements in our most recent annual and
interim reports and elsewhere in our filings with Canadian and U.S.
securities regulators.
The forward-looking statements in this document are, unless
otherwise indicated, stated as of the date hereof and are presented
for the purpose of assisting investors and others in understanding
our financial position and results of operations, our future
operations, as well as our objectives and strategic priorities, and
may not be appropriate for other purposes. We do not undertake to
update any forward-looking statements, except as required by
law.
About Manulife
Manulife Financial Corporation is a leading international
financial services provider that helps people make their decisions
easier and lives better. With our global headquarters in
Toronto, Canada, we operate as
Manulife across our offices in Canada, Asia,
and Europe, and primarily as
John Hancock in the United States. We provide financial
advice, insurance, and our global wealth and asset management
segment, Manulife Investment Management, serves individuals,
institutions and retirement plan members worldwide. At the end of
2020, we had more than 37,000 employees, over 118,000 agents, and
thousands of distribution partners, serving over 30 million
customers. As of March 31, 2021, we
had CAD$1.3 trillion (US$1.0 trillion) in assets under management and
administration, and in the previous 12 months we made
$31.3 billion in payments to our
customers. Our principal operations are in Asia, Canada
and the United States where we
have served customers for more than 155 years. We trade as 'MFC' on
the Toronto, New York, and the Philippine stock exchanges
and under '945' in Hong Kong.
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SOURCE Manulife Financial Corporation