C$ unless otherwise
stated
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This earnings news
release for Manulife Financial Corporation ("Manulife" or the
"Company") should be read in conjunction with the Company's
Management's Discussion & Analysis ("MD&A") and
Consolidated Financial Statements for the year and the quarter
ended December 31, 2021, prepared in accordance with International
Financial Reporting Standards ("IFRS") as issued by the
International Accounting Standards Board ("IASB"), which are
available on our website at
www.manulife.com/en/investors/results-and-reports. The MD&A and
additional information relating to the Company is available on the
SEDAR website at http://www.sedar.com and on the U.S. Securities
and Exchange Commission's ("SEC") website at
http://www.sec.gov.
|
TORONTO, Feb. 9, 2022 /CNW/ - Today, Manulife announced
its 2021 and fourth quarter of 2021 ("4Q21") results. Key
highlights include:
- Net income attributed to shareholders of $7.1 billion in 2021, up $1.2 billion from 2020, and $2.1 billion in 4Q21, up $304 million from the fourth quarter of 2020
("4Q20")
- Core earnings1 of $6.5
billion in 2021, up 26% on a constant exchange rate basis
from 2020, and $1.7 billion in 4Q21,
up 20% on a constant exchange rate basis from 4Q202
- Strong LICAT ratio3 of 142%
- Core ROE4 of 13.0% in 2021 and 12.7% in 4Q21, and
ROE of 14.2% in 2021 and 15.6% in 4Q21
- NBV5 of $2.2 billion
in 2021, up 31%6 from 2020, and $555 million in 4Q21, up 17% from 4Q20
- APE sales5 of $6.1
billion in 2021, up 13% from 2020, and $1.4 billion in 4Q21, up 5% from 4Q20
- Global Wealth and Asset Management ("Global WAM") net
inflows5 of $27.9 billion
in 2021 compared with net inflows of $8.9
billion in 2020 and net inflows of $8.1 billion in 4Q21 compared with net inflows of
$2.8 billion in 4Q20. A record year
for our retail wealth business with net inflows of $29.2 billion
- Global WAM average AUMA5 increased by 20% in
2021
- Remittances5 were $4.4
billion in 2021 compared with $1.6
billion in 2020, an increase of $2.8
billion
- Quarterly common share dividend increased by 18% in 4Q21
- Launched a Normal Course Issuer Bid ("NCIB") that permits
repurchase of up to 5% of outstanding common shares
"Our ability to adapt and serve clients across the globe who are
navigating a very uncertain environment continues to drive our
operating results with record net income of $7.1 billion and core earnings of $6.5 billion in 2021 driven by our insurance
businesses delivering double-digit growth in APE sales and NBV and
Global WAM delivering strong net inflows of $27.9 billion," said Manulife President &
Chief Executive Officer Roy
Gori.
"I am incredibly proud of the way our colleagues around the
world have continued to make decisions easier and lives better for
our customers. We are delivering on our strategic priorities,
enhancing our organizational culture and ESG capabilities, and
achieving top quartile employee engagement scores," Mr. Gori
continued. "We are scaling our business to grow across the diverse
markets in Asia and in 2021
commenced a 16-year bancassurance partnership with VietinBank, one
of the largest financial institutions in Vietnam, that enables
a full suite of insurance, wealth and retirement solutions to be
made available to customers in Vietnam. We also continued to make significant
progress on our portfolio optimization commitments, as evidenced by
the announcement of our U.S. variable annuity reinsurance
transaction with Venerable Holdings Inc., which closed in early
February."
"We are pleased to have delivered strong financial performance
in 2021 including Core ROE of 13% and ROE of 14.2%," said
Phil Witherington, Chief Financial
Officer. "We progressed our capital deployment priorities by
investing in our highest potential businesses, including an
exclusive bancassurance transaction in Vietnam, and a common share dividend increase
of 18%. We will also be buying back shares in 2022 to generate
shareholder value and to neutralize the dilution impact on core EPS
from the highly successful U.S. VA transaction. In addition,
remittances increased by $2.8 billion
to total $4.4 billion in 2021 with
positive contributions across geographies including Asia, the U.S.
and Canada," Mr. Witherington
continued.
"We take pride in our products and services, such as insurance
protection, well-being offerings, and retirement and wealth
management solutions, which positions us well to continue helping
our customers live better, happier and healthier lives," said Mr.
Gori.
_______________________________
|
1
|
Core earnings is a
non-GAAP financial measure. For more information on non-GAAP and
other financial measures, see "Non-GAAP and Other Financial
Measures" below and that section in our 2021 Management's
Discussion and Analysis ("2021 MD&A"), which is incorporated by
reference.
|
2
|
Percentage growth /
declines in core earnings stated on a constant exchange rate basis
is a non-GAAP ratio.
|
3
|
Life Insurance
Capital Adequacy Test ("LICAT") ratio of The Manufacturers Life
Insurance Company ("MLI"). LICAT ratio is disclosed under the
Office of the Superintendent of Financial Institutions Canada's
("OSFI's") Life Insurance Capital Adequacy Test Public Disclosure
Requirements guideline.
|
4
|
Core return on common
shareholders' equity ("Core ROE") is a non-GAAP ratio.
|
5
|
For more information
on new business value ("NBV"), annualized premium equivalent
("APE") sales, net flows, average assets under management and
administration ("average AUMA") and remittances, see "Non-GAAP and
Other Financial Measures" below.
|
6
|
In this news release,
percentage growth / declines in NBV, APE sales, gross flows and
average AUMA are stated on a constant exchange rate
basis.
|
2021 BUSINESS HIGHLIGHTS:
In Asia, we continued to grow the scale of our business across
the diverse markets in Asia.
- We completed the acquisition of Aviva Vietnam, along with the
beginning of a 16-year bancassurance partnership with VietinBank
that enables a full suite of insurance, wealth and retirement
solutions to be made available to VietinBank customers.
- We increased the number of contracted agents to over 117,000
and our number of Million Dollar Round Table agents grew by 64%
compared with 2020.
- We continued to expand the reach of our agency force in
China with the opening of our
newest branch in Shaanxi province.
We now operate in 52 cities across 15 provinces, providing access
to over 60% of China's population
and which represents over 70% of GDP.
In Canada, we continued to
offer a differentiated customer experience through our
products.
- We introduced Personalized Medicine, which provides access to
advanced pharmacogenetics to help group benefit members and their
health team find the most effective medication for their
condition.
- We expanded our Manulife Vitality program to reward
customers who received their COVID-19 vaccine.
- We launched the Manulife Vitality HealthyMind reward
program to help our individual insurance customers improve their
mental and emotional wellbeing.
In the U.S., we continued to execute on our portfolio
optimization and made gains in behavioural insurance.
- We entered into an agreement to reinsure over 75% of the legacy
variable annuity block, consisting primarily of policies with
guaranteed minimum withdrawal benefits riders. The transaction,
which closed on February 1, 2022, is
estimated to release approximately $2.0
billion of additional capital reflecting approximately
$1.3 billion of net LICAT required
capital, and a one-time after-tax gain of approximately
$750 million to net income attributed
to shareholders.1
______________________________
|
1
See "Caution regarding forward-looking statements" below. Projected
capital release and gain based on September 30, 2021.
|
- We experienced sales momentum with sales ahead of the prior
year in almost every major category and reported record sales in
our international business. We achieved record full year sales of
US$295 million, an increase of 34%
compared with 2020, from products with the John Hancock Vitality
PLUS feature. We believe our John Hancock Vitality feature is
proving to be the right solution for these times as there is a
heightened awareness around wellbeing highlighted by COVID-19.
- We also launched a preferred partnership with Allstate, which
provides insurance to approximately 15 million
customers, to be one of three carrier partners for its more
than 11,000 agents and 1,000 life specialists. In time we expect
this relationship, enabled by our digital submission capabilities,
will drive significant life insurance sales.1
In Global WAM, we continued to diversify our offerings.
- We expanded our sustainable investing products with the launch
of investment strategies in Sustainable Asia Bond, Global Climate,
and ESG Asian Multi-Asset Income. Additionally, Manulife Investment
Management was accepted as a signatory to the UK Stewardship Code,
which is recognized globally as a best practice benchmark in
investment stewardship. Nearly 200 asset managers, pension funds
and others applied but only 123 were accepted after a rigorous
review by the Financial Reporting Council2.
- We also secured an Alternative Investment Fund Managers
("AIFM") license to offer European Union ("EU") private market
funds in our key European markets, positioning us to drive the
expansion and offering of our private market investment
capabilities within the EU.
- We expanded our retail product line-up beyond traditional
mutual funds with new actively managed Exchange Traded Funds in
both Canada and the U.S. and we
furthered Separately Managed Accounts offerings in the U.S., with
each category generating over $1
billion in net inflows in 2021.
Additionally, we continued to enhance our digital capabilities
and rolled out numerous initiatives to advance our strategy to
become a digital, customer leader.
- In Asia, ePOS, our digital onboarding app, is enabling our
agents with faster, error-free submissions with 82% of applications
digitally submitted, representing a 22% year over year increase.
79% of submitted cases are auto-underwritten.
- In the U.S., we completed the iPipeline integration with the JH
brokerage eApp. This integration provides 66% of our regular
distribution partners with access to next-generation sales tools
and decreases the overall cycle time for applications submitted via
this preferred channel by 49% year over year. It also enabled
access to over 250 firms, including a new partnership with Allstate
and its more than 11,000 agents.
- Aided by the above initiatives, overall new business
applications submitted digitally increased by 15 percentage points
in 2021 to 71%.
- In Canada, we became the first
Canadian company to use artificial intelligence ("AI") in
underwriting mortgage creditor insurance in our individual
insurance business. Since its introduction, one-third of our
applications have been approved using AI, resulting in auto
adjudication of more than $1 billion
of face amount in 2021.
- In Global WAM, Asia Retail's online investment platform,
Manulife iFUNDS continued to show strong momentum in 2021 compared
with 2020, with a 39% increase in gross flows3, a 29%
increase in new accounts opened, and a 198% increase in monthly
investment plans.
- In U.S. Retirement, 88% of plan enrollees adopted our new
digital express enrollment capability, that delivers a simple, fast
and seamless way to enroll in their plan and benefit from access to
personalized guidance. This resulted in an 11% increase in
participation and six times the managed accounts conversion rate
when compared to the previous enrollment process.
__________________________
|
1
|
See "Caution
regarding forward-looking statements below.
|
2
|
The Financial
Reporting Council regulates auditors, accountants and actuaries,
and sets the UK's Corporate Governance and Stewardship Code. It
promotes transparency and integrity in
business.
|
3
|
For more information
on gross flows, see "Performance and Non-GAAP Measures" below and
in our 2021 MD&A.
|
FINANCIAL HIGHLIGHTS:
|
Quarterly
Results
|
Full Year
Results
|
($ millions, unless
otherwise stated)
|
|
4Q21
|
|
4Q20
|
|
2021
|
|
2020
|
Profitability:
|
|
|
|
|
|
|
|
|
Net income attributed
to shareholders
|
$
|
2,084
|
$
|
1,780
|
$
|
7,105
|
$
|
5,871
|
Core
earnings
|
$
|
1,708
|
$
|
1,474
|
$
|
6,536
|
$
|
5,516
|
Diluted earnings per
common share ($)
|
$
|
1.03
|
$
|
0.89
|
$
|
3.54
|
$
|
2.93
|
Diluted core earnings
per common share ("Core EPS") ($)(1)
|
$
|
0.84
|
$
|
0.74
|
$
|
3.25
|
$
|
2.75
|
Return on common
shareholders' equity ("ROE")
|
|
15.6%
|
|
14.1%
|
|
14.2%
|
|
11.6%
|
Core ROE
|
|
12.7%
|
|
11.6%
|
|
13.0%
|
|
10.9%
|
Expense efficiency
ratio(1)
|
|
49.0%
|
|
52.7%
|
|
48.9%
|
|
52.9%
|
General
expenses
|
$
|
2,000
|
$
|
1,968
|
$
|
7,828
|
$
|
7,510
|
Business
Performance:
|
|
|
|
|
|
|
|
|
Asia new business
value
|
$
|
391
|
$
|
368
|
$
|
1,666
|
$
|
1,387
|
Canada new
business value
|
$
|
82
|
$
|
65
|
$
|
307
|
$
|
255
|
U.S. new business
value
|
$
|
82
|
$
|
56
|
$
|
270
|
$
|
160
|
Total new business
value
|
$
|
555
|
$
|
489
|
$
|
2,243
|
$
|
1,802
|
Asia APE
sales
|
$
|
890
|
$
|
996
|
$
|
4,050
|
$
|
3,869
|
Canada APE
sales
|
$
|
295
|
$
|
245
|
$
|
1,227
|
$
|
1,148
|
U.S. APE
sales
|
$
|
244
|
$
|
178
|
$
|
788
|
$
|
609
|
Total APE
sales
|
$
|
1,429
|
$
|
1,419
|
$
|
6,065
|
$
|
5,626
|
Global WAM net flows ($
billions)
|
$
|
8.1
|
$
|
2.8
|
$
|
27.9
|
$
|
8.9
|
Global WAM gross flows
($ billions)
|
$
|
36.0
|
$
|
31.5
|
$
|
144.7
|
$
|
130.2
|
Global WAM assets under
management and administration ($ billions)(2)
|
$
|
855.9
|
$
|
753.6
|
$
|
855.9
|
$
|
753.6
|
Global WAM total
invested assets ($ billions)
|
$
|
4.5
|
$
|
4.8
|
$
|
4.5
|
$
|
4.8
|
Global WAM net
segregated funds net assets ($ billions)
|
$
|
252.6
|
$
|
229.8
|
$
|
252.6
|
$
|
229.8
|
Financial
Strength:
|
|
|
|
|
|
|
|
|
MLI's LICAT
ratio
|
|
142%
|
|
149%
|
|
142%
|
|
149%
|
Financial leverage
ratio
|
|
25.8%
|
|
26.6%
|
|
25.8%
|
|
26.6%
|
Book value per common
share ($)
|
$
|
26.78
|
$
|
25.00
|
$
|
26.78
|
$
|
25.00
|
Book value per common
share excluding AOCI ($)
|
$
|
24.12
|
$
|
21.74
|
$
|
24.12
|
$
|
21.74
|
(1) This item is a non-GAAP
ratio.
|
(2) This item is a non-GAAP
financial measure.
|
PROFITABILITY:
Reported net income attributed to shareholders of
$7.1 billion in 2021, up $1.2 billion from 2020, and $2.1 billion in 4Q21, up $304 million from 4Q20
The $1.2 billion increase in net
income attributed to shareholders in 2021 was driven by gains from
investment-related experience (compared with losses in the prior
year) and growth in core earnings. Investment-related experience
gains reflected higher-than-expected returns (including fair value
changes) on alternative long duration assets ("ALDA") primarily
driven by gains on private equity and infrastructure, strong credit
experience and the favourable impact of fixed income reinvestment
activities. Partially offsetting the gains was a net charge from
the direct impacts of markets (compared with gains in the prior
year). The net charge was primarily driven by a $532 million charge relating to the impact
of updated ultimate reinvestment rate assumptions issued by the
Canadian Actuarial Standards Board.
The $304 million increase in net
income attributed to shareholders in 4Q21 compared with the prior
year quarter was driven by growth in core earnings and gains from
fixed income reinvestment rates assumed in the valuation of policy
liabilities, a component of the direct impact of markets, compared
with losses in the prior year quarter. Fixed income reinvestment
rate gains were driven by the flattening of the yield curve in
Canada and the U.S. and, to a
lesser extent, widening corporate spreads in the U.S. These items
were partially offset by lower investment-related experience gains
in 4Q21. Investment-related experience in 4Q21 reflected
higher-than-expected returns (including fair value changes) on ALDA
primarily driven by gains on private equity and infrastructure as
well as strong credit experience, partially offset by the
unfavourable impact of the acquisition of treasuries, which is a
component of fixed income reinvestment activities.
Delivered core earnings of $6.5
billion in 2021, an increase of 26% compared with 2020, and
$1.7 billion in 4Q21, an increase of
20% compared with 4Q20
The increase in core earnings in 2021 compared with 2020
was driven by the recognition of core investment
gains1 in 2021 (compared with nil core investment
gains in 2020), higher new business gains in all
segments, higher net fee income from higher average AUMA in
Global WAM, which benefitted from the favourable impact of
markets and net inflows, higher investment income in Corporate and
Other which benefitted from higher net gains from
available-for-sale equities and seed money investments in 2021, and
in-force business growth in all segments. These items were
partially offset by unfavourable policyholder experience and a
charge in our Property and Casualty Reinsurance business for losses
related to Hurricane Ida and the European floods.
The increase in core earnings in 4Q21 compared with 4Q20
was driven by the recognition of core investment gains in 2021
(compared with nil core investment gains in the prior year
quarter), higher net fee income from higher average AUMA in Global
WAM, which benefitted from the favourable impact of markets
and net inflows, higher new business gains in the U.S. and
Canada, and a decrease in
Corporate and Other core losses which benefitted from a lower cost
of debt and higher investment income partially offset by lower net
gains on seed money investments in new segregated and mutual funds,
and in-force business growth in Asia and Canada. These items were
partially offset by unfavourable policyholder experience.
BUSINESS PERFORMANCE:
New business value ("NBV") of $2.2
billion in 2021, an increase of 31% compared with 2020, and
$555 million in 4Q21, an increase of
17% compared with 4Q20
NBV was $2.2 billion in 2021, an
increase of 31% compared with 2020. In Asia, NBV of $1.7 billion increased 27% driven by higher sales
volumes in Hong Kong,
Singapore, mainland China, Vietnam and Other Emerging
Markets2, favourable product mix in Singapore and Vietnam and favourable interest rates and
product management actions in Hong
Kong; partially offset by a decline in Japan due to
lower sales. In Canada, NBV of $307
million was up 20% from 2020, primarily due to higher
margins in annuities and individual insurance. In the U.S.,
NBV of $270 million was up 80%
primarily driven by higher sales volumes and improved margins,
notably due to higher international sales.
NBV was $555 million in 4Q21, an
increase of 17% compared with 4Q20. In Asia, NBV increased 11% to
$391 million, reflecting higher sales
volumes, favourable interest rates and expense management in
Hong Kong, and favourable product
mix in Asia Other3,
partially offset by lower sales in Japan and lower Critical
Illness sales in mainland China.
In Canada, NBV of $82 million was up 26% from 4Q20, primarily due
to higher margins in annuities and higher volumes in individual
insurance. In the U.S., NBV of $82
million was up 51% from 4Q20, primarily driven by higher
sales volumes and favourable product mix, notably due to higher
international sales.
__________________
|
1
|
Core investment gains
are disclosed under the OSFI's Source of Earnings Disclosure (Life
Insurance Companies) guideline.
|
2
|
Other Emerging
Markets includes Indonesia, the Philippines, Malaysia, Thailand,
Cambodia, and Myanmar.
|
3
|
Asia Other excludes
Hong Kong and Japan.
|
Annualized premium equivalent ("APE") sales of $6.1 billion in 2021, an increase of 13% compared
with 2020, and $1.4 billion in 4Q21,
an increase of 5% compared with 4Q20
APE sales were $6.1 billion in
2021, an increase of 13% compared with 2020. In Asia, there
continued to be varying degrees of adverse impacts on select
markets across the region related to COVID-19. Asia APE sales
increased 11% primarily as a result of strong APE sales in
Hong Kong, Singapore, mainland China and Other Emerging Markets, partially
offset by a decline in APE sales in Japan resulting from lower corporate-owned
life insurance ("COLI") product sales. In Hong Kong, APE sales increased 10%, reflecting
strong growth in our bank channel, demand from mainland Chinese
visitors through our Macau branch,
and an expanded agency force. Singapore APE sales increased
51%, reflecting double-digit growth across agency, bank and broker
channels. China APE sales increased 12%, primarily reflecting
growth in our bank channel. Vietnam APE sales increased 7%,
reflecting growth in agency and bank channels, partially offset by
the impact of COVID-19 containment measures during the second half
of the year. In Other Emerging Markets, APE sales increased 17%,
despite the impact of COVID-19 containment measures in 2021. Japan
APE sales decreased 26%, driven by lower COLI product sales. In
Canada, APE sales increased 7%
primarily driven by increased customer demand for our lower risk
segregated fund products and higher individual insurance sales in
participating products, partially offset by variability in the
large-case group insurance market. In the U.S., APE sales
increased 38%, due to strong international sales, which is reported
as a part of the U.S. segment results, and our differentiated
domestic product offerings which include the John Hancock
Vitality feature and higher customer demand for insurance
protection in the current COVID-19 environment of greater consumer
interest in improving baseline health. APE sales of products with
the John Hancock Vitality PLUS feature in 2021 increased 34%
compared with the prior year.
APE sales were $1.4 billion in
4Q21, an increase of 5% compared with 4Q20. In Asia, APE sales
decreased 6% as growth in Hong
Kong was more than offset by lower COLI product sales
in Japan. In Hong Kong, APE
sales increased 11% despite the dampening effect of COVID-19
containment measures constraining cross-border travel between
Hong Kong and mainland
China, reflecting strong growth in
our bank channel, and demand from mainland Chinese visitors through
our Macau branch. Asia Other APE
sales were in-line with 4Q20, as higher sales in bancassurance were
offset by lower agency sales, which were adversely impacted by
COVID-19 containment measures in markets such as Vietnam and the
Philippines. In Japan, APE
sales declined 44%, primarily due to a decrease in COLI product
sales. In Canada, APE sales
increased 20%, primarily driven by increased customer demand for
our lower risk segregated fund products and higher individual
insurance sales. In the U.S., APE sales increased 41%, due to
strong international sales, which is reported as a part of the U.S.
segment results, and our differentiated domestic product offerings
which include the John Hancock Vitality feature and
higher customer demand for insurance protection in the current
COVID-19 environment of greater consumer interest in improving
baseline health.
Reported Global Wealth and Asset Management net inflows of
$27.9 billion in 2021, compared with
2020 net inflows of $8.9 billion, and
net inflows of $8.1 billion in 4Q21
compared with net inflows of $2.8
billion in 4Q20
Net inflows were $27.9 billion in
2021, compared with net inflows of $8.9
billion in 2020. Net inflows in Retail were $29.2 billion compared with net inflows of
$3.5 billion in the prior year,
driven by double-digit growth in gross flows across all geographies
amid increased investor demand and lower mutual fund redemption
rates. Net outflows in Institutional Asset Management were
$2.4 billion compared with net
inflows of $3.8 billion in the prior
year, driven by a $9.4 billion
redemption in Asia in the first
quarter of 2021, and the non-recurrence of a $6.9 billion sale in Canada in 2020. This was partially offset by
the non-recurrence of a $5.0 billion
redemption in Europe in 2020,
lower redemptions in Asia and the
U.S., and higher sales of infrastructure, timberland and real
estate mandates. Net inflows in Retirement were $1.1 billion compared with net inflows of
$1.6 billion in the prior year,
reflecting the non-recurrence of a large-case plan sale in 2020 and
higher member redemptions, partially offset by growth in member
contributions.
Net inflows were $8.1 billion in
4Q21, compared with net inflows of $2.8
billion in 4Q20. Net inflows in Retail were $7.5 billion in 4Q21 compared with net inflows of
$3.6 billion in 4Q20, reflecting
higher gross flows, driven by strong intermediary sales and higher
institutional model allocations in the U.S., as well as higher
gross flows in Japan and
China. Net inflows in
Institutional Asset Management were $1.6
billion in 4Q21 compared with net inflows of $1.0 billion in 4Q20, driven by lower
redemptions in timberland and real estate mandates, partially
offset by lower gross flows in fixed income mandates. Net outflows
in Retirement were $1.0 billion in
4Q21 compared with net outflows of $1.8
billion in 4Q20. The reduction in net outflows was driven by
higher gross flows across all geographies, reflecting higher growth
in new plan sales and member contributions, partially offset by
higher plan redemptions.
QUARTERLY EARNINGS RESULTS CONFERENCE
CALL
Manulife Financial Corporation will host a
Fourth Quarter 2021 Earnings Results Conference Call at
8:00 a.m. ET on February 10, 2022. For local and international
locations, please call 416-340-2217 or toll free, North America 1-800-806-5484 (Passcode:
4624021#). Please call in 15 minutes before the call starts. You
will be required to provide your name and organization to the
operator. A replay of this call will be available by 11:00 a.m. ET on February
10, 2022 through May 14, 2022
by calling 905-694-9451 or 1-800-408-3053 (Passcode: 4133171#).
The conference call will also be webcast through Manulife's
website at 8:00 a.m. ET on
February 10, 2022. You may access the
webcast at: manulife.com/en/investors/results-and-reports. An
archived version of the webcast will be available on the website
following the call at the same URL as above.
The Fourth Quarter 2021 Statistical Information Package is also
available on the Manulife website
at: www.manulife.com/en/investors/results-and-reports.
EARNINGS:
The following table presents net income attributed to
shareholders, consisting of core earnings and details of the items
excluded from core earnings:
|
Quarterly
Results
|
Full Year
Results
|
($
millions)
|
4Q21
|
3Q21
|
4Q20
|
2021
|
2020
|
Core
earnings
|
|
|
|
|
|
Asia
|
$
|
547
|
$
|
533
|
$
|
571
|
$
|
2,176
|
$
|
2,110
|
Canada
|
286
|
311
|
316
|
1,179
|
1,174
|
U.S.
|
467
|
490
|
479
|
1,936
|
1,995
|
Global Wealth and
Asset Management
|
387
|
351
|
304
|
1,406
|
1,100
|
Corporate and Other
(excluding core investment gains)
|
(79)
|
(268)
|
(196)
|
(561)
|
(863)
|
Core investment
gains(1)
|
100
|
100
|
-
|
400
|
-
|
Total core
earnings
|
$
|
1,708
|
$
|
1,517
|
$
|
1,474
|
$
|
6,536
|
$
|
5,516
|
Items excluded
from core earnings:(1)
Investment-related
experience outside of core earnings
|
126
|
700
|
585
|
1,642
|
(792)
|
Direct impact of equity
markets and interest rates and variable
annuity
guarantee liabilities
|
398
|
(597)
|
(323)
|
(817)
|
932
|
Change in actuarial
methods and assumptions
|
-
|
(41)
|
-
|
(41)
|
(198)
|
Restructuring
charge
|
-
|
-
|
-
|
(115)
|
-
|
Reinsurance
transaction, tax-related items and other
|
(148)
|
13
|
44
|
(100)
|
413
|
Net income
attributed to shareholders
|
$
|
2,084
|
$
|
1,592
|
$
|
1,780
|
$
|
7,105
|
$
|
5,871
|
(1) These items are disclosed
under OSFI's Source of Earnings Disclosure (Life Insurance
Companies) guideline.
|
NON-GAAP AND OTHER FINANCIAL MEASURES:
The Company
prepares its Consolidated Financial Statements in accordance with
International Financial Reporting Standards ("IFRS") as issued by
the International Accounting Standards Board. We use a number of
non-GAAP and other financial measures to evaluate overall
performance and to assess each of our businesses. This section
includes information required by National Instrument 52-112 –
Non-GAAP and Other Financial Measures Disclosure in respect
of "specified financial measures" (as defined therein).
Non-GAAP financial measures include core earnings
(loss); pre-tax core earnings; core earnings available to common
shareholders; core general expenses; and assets under management
and administration ("AUMA").
Non-GAAP ratios include core return on common
shareholders' equity ("core ROE"); diluted core earnings per common
share ("core EPS"); expense efficiency ratio; and percentage
growth/decline on a constant exchange rate basis in any of the
above non-GAAP financial measures.
Other specified financial measures include assets under
administration; embedded value; NBV; APE sales; gross flows; net
flows; average assets under management and administration ("average
AUMA"); remittances and percentage growth/decline in such other
financial measures.
Non-GAAP financial measures and non-GAAP ratios are not
standardized financial measures under GAAP and, therefore, might
not be comparable to similar financial measures disclosed by other
issuers. Therefore, they should not be considered in isolation or
as a substitute for any other financial information prepared in
accordance with GAAP. For more information on non-GAAP financial
measures, including those referred to above, see the section
"Non-GAAP and Other Financial Measures" in our 2021 MD&A, which
is incorporated by reference.
Reconciliation of core earnings to net income attributed to
shareholders
|
2021
|
($millions, post-tax
and based on actual foreign exchange rates
in effect in
the applicable reporting period, unless otherwise
stated)
|
Asia
|
Canada
|
U.S.
|
Global WAM
|
Corporate and
Other
|
Total
Company
|
Income (loss) before
income taxes
|
$
|
3,188
|
$
|
1,791
|
$
|
2,484
|
$
|
1,641
|
$
|
(979)
|
$
|
8,125
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(322)
|
(413)
|
(418)
|
(234)
|
27
|
(1,360)
|
Items excluded from
core earnings
|
(120)
|
77
|
32
|
(1)
|
159
|
147
|
Income tax (expense)
recovery
|
(442)
|
(336)
|
(386)
|
(235)
|
186
|
(1,213)
|
Net income
(post-tax)
|
2,746
|
1,455
|
2,098
|
1,406
|
(793)
|
6,912
|
|
|
|
|
|
|
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
256
|
-
|
-
|
-
|
(1)
|
255
|
Participating
policyholders
|
(567)
|
101
|
18
|
-
|
-
|
(448)
|
Net income (loss)
attributed to shareholders (post-tax)
|
3,057
|
1,354
|
2,080
|
1,406
|
(792)
|
7,105
|
|
|
|
|
|
|
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
Investment-related
experience outside of core earnings
|
313
|
329
|
1,341
|
-
|
(341)
|
1,642
|
Direct impact of
equity markets and interest rates and variable annuity guarantee
liabilities
|
169
|
(89)
|
(727)
|
-
|
(170)
|
(817)
|
Change in actuarial
methods and assumptions
|
343
|
(65)
|
(314)
|
-
|
(5)
|
(41)
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
(115)
|
(115)
|
Reinsurance
transactions, tax related items and other
|
56
|
-
|
(156)
|
-
|
-
|
(100)
|
|
|
|
|
|
|
|
Core earnings
(post-tax)
|
$
|
2,176
|
$
|
1,179
|
$
|
1,936
|
$
|
1,406
|
$
|
(161)
|
$
|
6,536
|
Income tax on core
earnings (see above)
|
322
|
413
|
418
|
234
|
(27)
|
1,360
|
Core earnings
(pre-tax)
|
$
|
2,498
|
$
|
1,592
|
$
|
2,354
|
$
|
1,640
|
$
|
(188)
|
$
|
7,896
|
(1) These items are disclosed
under OSFI's Source of Earnings Disclosure (Life Insurance
Companies) guideline.
|
Core earnings, CER basis
|
2021
|
(Canadian $ millions,
post-tax and based on actual foreign exchange rates
in effect in the
applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
Company
|
|
|
|
|
|
|
|
Core earnings
(post-tax)
|
$
|
2,176
|
$
|
1,179
|
$
|
1,936
|
$
|
1,406
|
$
|
(161)
|
$
|
6,536
|
CER
adjustment(1)
|
(1)
|
-
|
9
|
4
|
1
|
13
|
Core earnings, CER
basis (post-tax)
|
$
|
2,175
|
$
|
1,179
|
$
|
1,945
|
$
|
1,410
|
$
|
(160)
|
$
|
6,549
|
|
|
|
|
|
|
|
Income tax on core
earnings, CER basis(2)
|
321
|
413
|
421
|
234
|
(26)
|
1,363
|
Core earnings, CER
basis (pre-tax)
|
$
|
2,496
|
$
|
1,592
|
$
|
2,366
|
$
|
1,
644
|
$
|
(186)
|
$
|
7,912
|
(1) The impact of updating
foreign exchange rates to that which was used in
4Q21.
|
(2) Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 4Q21.
|
Reconciliation of core earnings to net income attributed to
shareholders
|
2020
|
($ millions, post-tax
and based on actual foreign exchange rates
in effect in
the applicable reporting period, unless otherwise
stated)
|
Asia
|
Canada
|
U.S.
|
Global WAM
|
Corporate
and Other
|
Total
Company
|
Income (loss) before
income taxes
|
$
|
1,635
|
$
|
390
|
$
|
1,564
|
$
|
1,272
|
$
|
1,910
|
$
|
6,771
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(336)
|
(378)
|
(481)
|
(172)
|
199
|
(1,168)
|
Items excluded from
core earnings
|
104
|
247
|
186
|
-
|
(564)
|
(27)
|
Income tax (expense)
recovery
|
(232)
|
(131)
|
(295)
|
(172)
|
(365)
|
(1,195)
|
Net income
(post-tax)
|
1,403
|
259
|
1,269
|
1,100
|
1,545
|
5,576
|
|
|
|
|
|
|
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
250
|
-
|
-
|
-
|
-
|
250
|
Participating
policyholders
|
(609)
|
64
|
-
|
-
|
-
|
(545)
|
Net income (loss)
attributed to shareholders (post-tax)
|
1,762
|
195
|
1,269
|
1,100
|
1,545
|
5,871
|
|
|
|
|
|
|
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
Investment-related
experience outside of core earnings
|
218
|
(260)
|
(717)
|
-
|
(33)
|
(792)
|
Direct impact of
equity markets and interest rates and variable annuity guarantee
liabilities
|
(583)
|
(817)
|
30
|
-
|
2,302
|
932
|
Change in actuarial
methods and assumptions
|
(41)
|
77
|
(301)
|
-
|
67
|
(198)
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
58
|
21
|
262
|
-
|
72
|
413
|
|
|
|
|
|
|
|
Core earnings
(post-tax)
|
$
|
2,110
|
$
|
1,174
|
$
|
1,995
|
$
|
1,100
|
$
|
(863)
|
$
|
5,516
|
|
|
|
|
|
|
|
Income tax on core
earnings (see above)
|
336
|
378
|
481
|
172
|
(199)
|
1,168
|
Core earnings
(pre-tax)
|
$
|
2,446
|
$
|
1,552
|
$
|
2,476
|
$
|
1,272
|
$
|
(1,062)
|
$
|
6,684
|
(1) These items are disclosed
under OSFI's Source of Earnings Disclosure (Life Insurance
Companies) guideline.
|
Core earnings, CER basis
|
2020
|
(Canadian $ millions,
post-tax and based on actual foreign exchange rates
in effect in the
applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
Company
|
|
|
|
|
|
|
|
Core earnings
(post-tax)
|
$
|
2,110
|
$
|
1,174
|
$
|
1,995
|
$
|
1,100
|
$
|
(863)
|
$
|
5,516
|
CER
adjustment(1)
|
(128)
|
-
|
(124)
|
(42)
|
(9)
|
(303)
|
Core earnings, CER
basis (post-tax)
|
$
|
1,982
|
$
|
1,174
|
$
|
1,871
|
$
|
1,058
|
$
|
(872)
|
$
|
5,213
|
|
|
|
|
|
|
|
Income tax on core
earnings, CER basis(2)
|
323
|
378
|
450
|
169
|
(199)
|
1,121
|
Core earnings, CER
basis (pre-tax)
|
$
|
2,305
|
$
|
1,552
|
$
|
2,321
|
$
|
1,227
|
$
|
(1,071)
|
$
|
6,334
|
(1) The impact of updating
foreign exchange rates to that which was used in
4Q21.
|
(2) Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 4Q21.
|
Reconciliation of core earnings to net income attributed to
shareholders
|
4Q21
|
($ millions, post-tax
and based on actual foreign exchange rates
in effect in
the applicable reporting period, unless otherwise
stated)
|
Asia
|
Canada
|
U.S.
|
Global WAM
|
Corporate and
Other
|
Total
Company
|
Income (loss) before
income taxes
|
$
|
684
|
$
|
806
|
$
|
614
|
$
|
438
|
$
|
(61)
|
$
|
2,481
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(68)
|
(101)
|
(117)
|
(52)
|
(8)
|
(346)
|
Items excluded from
core earnings
|
(13)
|
(77)
|
(4)
|
-
|
10
|
(84)
|
Income tax (expense)
recovery
|
(81)
|
(178)
|
(121)
|
(52)
|
2
|
(430)
|
Net income
(post-tax)
|
603
|
628
|
493
|
386
|
(59)
|
2,051
|
|
|
|
|
|
|
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
34
|
-
|
-
|
(1)
|
(1)
|
32
|
Participating
policyholders
|
(76)
|
12
|
(1)
|
-
|
-
|
(65)
|
Net income (loss)
attributed to shareholders (post-tax)
|
645
|
616
|
494
|
387
|
(58)
|
2,084
|
|
|
|
|
|
|
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
Investment-related
experience outside of core earnings
|
58
|
90
|
58
|
-
|
(80)
|
126
|
Direct impact of
equity markets and interest rates and variable annuity guarantee
liabilities
|
32
|
240
|
125
|
-
|
1
|
398
|
Change in actuarial
methods and assumptions
|
-
|
-
|
-
|
-
|
-
|
-
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
8
|
-
|
(156)
|
-
|
-
|
(148)
|
|
|
|
|
|
|
|
Core earnings
(post-tax)
|
$
|
547
|
$
|
286
|
$
|
467
|
$
|
387
|
$
|
21
|
$
|
1,708
|
|
|
|
|
|
|
|
Income tax on core
earnings (see above)
|
68
|
101
|
117
|
52
|
8
|
346
|
Core earnings
(pre-tax)
|
$
|
615
|
$
|
387
|
$
|
584
|
$
|
439
|
$
|
29
|
$
|
2,054
|
(1) These items are disclosed
under OSFI's Source of Earnings Disclosure (Life Insurance
Companies) guideline.
|
Core earnings, CER basis
|
4Q21
|
(Canadian $ millions,
post-tax and based on actual foreign exchange rates
in effect in the
applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global WAM
|
Corporate
and Other
|
Total
Company
|
|
|
|
|
|
|
|
Core earnings
(post-tax)
|
$
|
547
|
$
|
286
|
$
|
467
|
$
|
387
|
$
|
21
|
$
|
1,708
|
CER
adjustment(1)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Core earnings, CER
basis (post-tax)
|
$
|
547
|
$
|
286
|
$
|
466
|
$
|
387
|
$
|
21
|
$
|
1,708
|
|
|
|
|
|
|
|
Income tax on core
earnings, CER basis(2)
|
|
68
|
|
101
|
|
117
|
|
52
|
|
8
|
|
346
|
Core earnings, CER
basis (pre-tax)
|
$
|
615
|
$
|
387
|
$
|
584
|
$
|
439
|
$
|
29
|
$
|
2,054
|
|
|
|
|
|
|
|
(1) The impact of updating
foreign exchange rates to that which was used in
4Q21.
|
(2) Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 4Q21.
|
Reconciliation of core earnings to net income attributed to
shareholders
|
3Q21
|
($ millions, post-tax
and based on actual foreign exchange rates
in effect in
the applicable reporting period, unless otherwise
stated)
|
Asia
|
Canada
|
U.S.
|
Global WAM
|
Corporate and
Other
|
Total
Company
|
Income (loss) before
income taxes
|
$
|
650
|
$
|
(101)
|
$
|
800
|
$
|
418
|
$
|
(287)
|
$
|
1,480
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(52)
|
(109)
|
(79)
|
(66)
|
12
|
(294)
|
Items excluded from
core earnings
|
(31)
|
153
|
(16)
|
(1)
|
23
|
128
|
Income tax (expense)
recovery
|
(83)
|
44
|
(95)
|
(67)
|
35
|
(166)
|
Net income
(post-tax)
|
567
|
(57)
|
705
|
351
|
(252)
|
1,314
|
|
|
|
|
|
|
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
48
|
-
|
-
|
-
|
-
|
48
|
Participating
policyholders
|
(303)
|
(31)
|
8
|
-
|
-
|
(326)
|
Net income (loss)
attributed to shareholders (post-tax)
|
822
|
(26)
|
697
|
351
|
(252)
|
1,592
|
|
|
|
|
|
|
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
Investment-related
experience outside of core earnings
|
62
|
97
|
617
|
-
|
(76)
|
700
|
Direct impact of
equity markets and interest rates and variable annuity guarantee
liabilities
|
(129)
|
(369)
|
(96)
|
-
|
(3)
|
(597)
|
Change in actuarial
methods and assumptions
|
343
|
(65)
|
(314)
|
-
|
(5)
|
(41)
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
13
|
-
|
-
|
-
|
-
|
13
|
|
|
|
|
|
|
|
Core earnings
(post-tax)
|
$
|
533
|
$
|
311
|
$
|
490
|
$
|
351
|
$
|
(168)
|
$
|
1,517
|
|
|
|
|
|
|
|
Income tax on core
earnings (see above)
|
52
|
109
|
79
|
66
|
(12)
|
294
|
Core earnings
(pre-tax)
|
$
|
585
|
$
|
420
|
$
|
569
|
$
|
417
|
$
|
(180)
|
$
|
1,811
|
|
|
|
|
|
|
|
|
(1) These items are disclosed under
OSFI's Source of Earnings Disclosure (Life Insurance Companies)
guideline.
|
Core earnings, CER basis
|
3Q21
|
(Canadian $ millions,
post-tax and based on actual foreign exchange rates
in effect in the
applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global WAM
|
Corporate and
Other
|
Total
Company
|
|
|
|
|
|
|
|
Core earnings
(post-tax)
|
$
|
533
|
$
|
311
|
$
|
490
|
$
|
351
|
$
|
(168)
|
$
|
1,517
|
CER
adjustment(1)
|
(2)
|
-
|
-
|
(1)
|
-
|
(3)
|
Core earnings, CER
basis (post-tax)
|
$
|
531
|
$
|
311
|
$
|
490
|
$
|
350
|
$
|
(168)
|
$
|
1,514
|
|
|
|
|
|
|
|
Income tax on core
earnings, CER basis(2)
|
51
|
109
|
80
|
66
|
(12)
|
294
|
Core earnings, CER
basis (pre-tax)
|
$
|
582
|
$
|
420
|
$
|
570
|
$
|
416
|
$
|
(180)
|
$
|
1,808
|
|
|
|
|
|
|
|
(1) The impact of updating
foreign exchange rates to that which was used in
4Q21.
|
(2) Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 4Q21.
|
Reconciliation of core earnings to net income attributed to
shareholders
|
4Q20
|
($ millions, post-tax
and based on actual foreign exchange rates
in effect in
the applicable reporting period, unless otherwise
stated)
|
Asia
|
Canada
|
U.S.
|
Global WAM
|
Corporate and
Other
|
Total
Company
|
Income (loss) before
income taxes
|
$
|
755
|
$
|
707
|
$
|
108
|
$
|
361
|
$
|
134
|
$
|
2,065
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(89)
|
(86)
|
(110)
|
(57)
|
49
|
(293)
|
Items excluded from
core earnings
|
1
|
40
|
108
|
-
|
(80)
|
69
|
Income tax (expense)
recovery
|
(88)
|
(46)
|
(2)
|
(57)
|
(31)
|
(224)
|
Net income
(post-tax)
|
667
|
661
|
106
|
304
|
103
|
1,841
|
|
|
|
|
|
|
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
57
|
-
|
-
|
-
|
-
|
57
|
Participating
policyholders
|
(29)
|
33
|
-
|
-
|
-
|
4
|
Net income (loss)
attributed to shareholders (post-tax)
|
639
|
628
|
106
|
304
|
103
|
1,780
|
|
|
|
|
|
|
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
Investment-related
experience outside of core earnings
|
127
|
332
|
110
|
-
|
16
|
585
|
Direct impact of
equity markets and interest rates and variable annuity guarantee
liabilities
|
(88)
|
(35)
|
(483)
|
-
|
283
|
(323)
|
Change in actuarial
methods and assumptions
|
-
|
-
|
-
|
-
|
-
|
-
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
29
|
15
|
-
|
-
|
-
|
44
|
|
|
|
|
|
|
|
Core earnings
(post-tax)
|
$
|
571
|
$
|
316
|
$
|
479
|
$
|
304
|
$
|
(196)
|
$
|
1,474
|
|
|
|
|
|
|
|
Income tax on core
earnings (see above)
|
89
|
86
|
110
|
57
|
(49)
|
293
|
Core earnings
(pre-tax)
|
$
|
660
|
$
|
402
|
$
|
589
|
$
|
361
|
$
|
(245)
|
$
|
1,767
|
|
|
|
|
|
|
|
|
(1) These items are disclosed
under OSFI's Source of Earnings Disclosure (Life Insurance
Companies) guideline.
|
Core earnings, CER basis
|
4Q20
|
(Canadian $ millions,
post-tax and based on actual foreign exchange rates
in effect in the
applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global WAM
|
Corporate and
Other
|
Total
Company
|
|
|
|
|
|
|
|
Core earnings
(post-tax)
|
$
|
571
|
$
|
316
|
$
|
479
|
$
|
304
|
$
|
(196)
|
$
|
1,474
|
CER
adjustment(1)
|
(24)
|
-
|
(16)
|
(6)
|
(1)
|
(47)
|
Core earnings, CER
basis (post-tax)
|
$
|
547
|
$
|
316
|
$
|
463
|
$
|
298
|
$
|
(197)
|
$
|
1,427
|
|
|
|
|
|
|
|
Income tax on core
earnings, CER basis(2)
|
87
|
86
|
106
|
56
|
(49)
|
286
|
Core earnings, CER
basis (pre-tax)
|
$
|
634
|
$
|
402
|
$
|
569
|
$
|
354
|
$
|
(246)
|
$
|
1,713
|
|
|
|
|
|
|
|
(1) The impact of
updating foreign exchange rates to that which was used in
4Q21.
|
(2) Income tax on
core earnings adjusted to reflect the foreign exchange rates for
the Statement of Income in effect for 4Q21.
|
Core earnings available to common shareholders
($ millions, post-tax
and based on actual foreign exchange
rates in effect in
the applicable reporting period, unless otherwise
stated)
|
Quarterly
|
Full
Year
|
4Q21
|
3Q21
|
2Q21
|
1Q21
|
4Q20
|
2021
|
2020
|
|
|
|
|
|
|
|
|
Core earnings (post
tax)
|
$
|
1,708
|
$
|
1,517
|
$
|
1,682
|
$
|
1,629
|
$
|
1,474
|
$
|
6,536
|
$
|
5,516
|
Less: Preferred share
dividends
|
(71)
|
(37)
|
(64)
|
(43)
|
(43)
|
(215)
|
(171)
|
Core earnings
available to common shareholders
|
1,637
|
1,480
|
1,618
|
1,586
|
1,431
|
6,321
|
5,345
|
CER
adjustment(1)
|
-
|
(3)
|
29
|
(13)
|
(47)
|
13
|
(303)
|
Core earnings
available to common shareholders, CER basis
|
$
|
1,637
|
$
|
1,477
|
$
|
1,647
|
$
|
1,573
|
$
|
1,384
|
$
|
6,334
|
$
|
5,042
|
(1) The impact of
updating foreign exchange rates to that which was used in
4Q21.
|
Core ROE
($ millions and based
on actual foreign exchange rates
in effect in the
applicable reporting period)
|
Quarterly
|
Full
Year
|
4Q21
|
3Q21
|
2Q21
|
1Q21
|
4Q20
|
2021
|
2020
|
Core earnings
available to common shareholders (post-tax)
|
$
|
1,637
|
$
|
1,480
|
$
|
1,618
|
$
|
1,586
|
$
|
1,431
|
$
|
6,321
|
$
|
5,345
|
Annualized core
earnings available to common shareholders (post-tax)
|
$
|
6,483
|
$
|
5,874
|
$
|
6,485
|
$
|
6,435
|
$
|
5,697
|
$
|
6,321
|
$
|
5,345
|
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity (see below)
|
$
|
51,049
|
$
|
49,075
|
$
|
46,757
|
$
|
46,974
|
$
|
48,984
|
$
|
48,463
|
$
|
49,145
|
Core
ROE
|
12.7%
|
12.0%
|
13.9%
|
13.7%
|
11.6%
|
13.0%
|
|
10.9%
|
|
|
|
|
|
|
|
|
|
Average common
shareholders' equity
|
|
|
|
|
|
|
|
|
Total shareholders'
and other equity
|
$
|
58,408
|
$
|
55,457
|
$
|
53,466
|
$
|
51,238
|
$
|
52,335
|
$
|
58,408
|
$
|
52,335
|
Less: Preferred
shares and other equity
|
(6,381)
|
(5,387)
|
(5,387)
|
(5,804)
|
(3,822)
|
(6,381)
|
|
(3,822)
|
Common
shareholders' equity
|
$
|
52,027
|
$
|
50,070
|
$
|
48,079
|
$
|
45,434
|
$
|
48,513
|
$
|
52,027
|
$
|
48,513
|
Average common
shareholders' equity
|
$
|
51,049
|
$
|
49,075
|
$
|
46,757
|
$
|
46,974
|
$
|
48,984
|
$
|
48,463
|
$
|
49,145
|
Core EPS
($ millions and based
on actual foreign exchange rates
in effect in the
applicable reporting period, unless otherwise stated)
|
Quarterly
|
Full
Year
|
4Q21
|
3Q21
|
2Q21
|
1Q21
|
4Q20
|
2021
|
2020
|
Core
EPS
|
|
|
|
|
|
|
|
Core earnings
available to common shareholders (post-tax)
|
$
|
1,637
|
$
|
1,480
|
$
|
1,618
|
$
|
1,586
|
$
|
1,431
|
$
|
6,321
|
$
|
5,345
|
Diluted weighted
average common shares outstanding (millions)
|
1,946
|
1,946
|
1,946
|
1,945
|
1,943
|
1,946
|
1,943
|
Core earnings per
share
|
0.84
|
0.76
|
0.83
|
0.82
|
0.74
|
3.25
|
2.75
|
|
|
|
|
|
|
|
Core EPS, CER
basis
|
|
|
|
|
|
|
|
Core earnings
available to common shareholders (post-tax), CER basis
|
$
|
1,637
|
$
|
1,477
|
$
|
1,647
|
$
|
1,573
|
$
|
1,384
|
$
|
6,334
|
$
|
5,042
|
Diluted weighted
average common shares outstanding (millions)
|
1,946
|
1,946
|
1,946
|
1,945
|
1,943
|
1,946
|
1,943
|
Core earnings per
share, CER basis
|
0.84
|
0.76
|
0.85
|
0.81
|
0.71
|
3.26
|
2.59
|
|
|
|
|
|
|
|
|
|
|
|
Global WAM AUMA reconciliation
As
at
|
|
($ millions, and
based on actual foreign exchange rates in effect in the applicable
reporting period, unless otherwise stated)
|
Dec
31,
2021
|
Sept 30,
2021
|
June 30,
2021
|
Mar 31,
2021
|
Dec 31,
2020
|
Total invested
assets
|
$
|
427,098
|
$
|
419,087
|
$
|
405,209
|
$
|
397,948
|
$
|
410,977
|
Less: Non Global WAM
total invested assets
|
422,640
|
414,754
|
400,998
|
393,623
|
406,217
|
Total Invested
Assets – Global WAM
|
4,458
|
4,333
|
4,211
|
4,325
|
4,760
|
Total segregated
funds net assets
|
$
|
399,788
|
$
|
387,799
|
$
|
383,845
|
$
|
371,682
|
$
|
367,436
|
Less: Non Global WAM
total segregated funds net assets
|
147,221
|
143,248
|
141,227
|
137,220
|
137,609
|
Total Invested
Assets – Global WAM
|
252,567
|
244,551
|
242,618
|
234,462
|
229,827
|
Global WAM total
invested assets and net segregated funds assets
|
$
|
257,025
|
$
|
248,884
|
$
|
246,829
|
$
|
238,787
|
$
|
234,587
|
Global WAM
AUMA
|
|
|
|
|
|
Total Invested
Assets
|
$
|
4,458
|
$
|
4,333
|
$
|
4,211
|
$
|
4,325
|
$
|
4,760
|
Segregated funds net
assets
|
|
|
|
|
|
Segregated funds net
assets - Institutional
|
4,470
|
4,400
|
4,229
|
4,157
|
1,886
|
Segregated funds net
assets - Other
|
248,097
|
240,151
|
238,389
|
230,305
|
227,941
|
Total
|
252,567
|
244,551
|
242,618
|
234,462
|
229,827
|
Mutual
funds
|
290,863
|
277,421
|
265,110
|
249,137
|
238,068
|
Institutional asset
management(1)
|
106,407
|
103,732
|
99,983
|
96,989
|
107,387
|
Other
funds
|
14,001
|
12,562
|
12,232
|
11,611
|
10,880
|
Total Global WAM
AUM
|
668,296
|
642,599
|
624,154
|
596,524
|
590,922
|
Assets under
administration
|
187,631
|
181,013
|
174,376
|
167,558
|
162,688
|
Total Global WAM
AUMA
|
$
|
855,927
|
$
|
823,612
|
$
|
798,530
|
$
|
764,082
|
$
|
753,610
|
|
|
|
|
|
|
Total Global WAM
AUMA
|
$
|
855,927
|
$
|
823,612
|
$
|
798,530
|
$
|
764,082
|
$
|
753,610
|
CER
adjustment(2)
|
-
|
(3,191)
|
12,587
|
4,244
|
(5,003)
|
Total Global WAM
AUMA, CER basis
|
$
|
855,927
|
$
|
820,421
|
$
|
811,117
|
$
|
768,326
|
$
|
748,607
|
(1) Institutional asset
management excludes Institutional segregated funds net
assets.
|
(2) The impact of updating
foreign exchange rates to that which was used in 4Q21.
|
Expense efficiency ratio
($ millions, pre-tax
and based on actual foreign exchange
rates in effect in
the applicable reporting period, unless otherwise
stated)
|
Quarterly
|
Full
Year
|
4Q21
|
3Q21
|
2Q21
|
1Q21
|
4Q20
|
2021
|
2020
|
|
|
|
|
|
|
|
|
Expense Efficiency
Ratio
|
|
|
|
|
|
|
|
Core general
expenses
|
$
|
1,973
|
$
|
1,904
|
$
|
1,794
|
$
|
1,882
|
$
|
1,968
|
$
|
7,553
|
$
|
7,501
|
|
|
|
|
|
|
|
|
Core earnings
(pre-tax)
|
2,054
|
1,811
|
2,036
|
1,995
|
1,767
|
7,896
|
6,684
|
Total - Core earnings
(pre-tax) and Core general expenses
|
$
|
4,027
|
$
|
3,715
|
$
|
3,830
|
$
|
3,877
|
$
|
3,735
|
$
|
15,449
|
$
|
14,185
|
Expense Efficiency
Ratio
|
49.0%
|
51.3%
|
46.8%
|
48.5%
|
52.7%
|
48.9%
|
52.9%
|
|
|
|
|
|
|
|
|
Core general
expenses
|
|
|
|
|
|
|
|
General expenses -
Financial Statements
|
$
|
2,000
|
$
|
1,904
|
$
|
1,892
|
$
|
2,032
|
$
|
1,968
|
$
|
7,828
|
$
|
7,510
|
Less: General
expenses included in items excluded from core earnings
|
|
|
|
|
|
|
|
Restructuring
charge
|
-
|
-
|
-
|
150
|
-
|
150
|
-
|
Legal
provisions and other expenses
|
27
|
-
|
98
|
-
|
-
|
125
|
9
|
Total
|
$
|
27
|
$
|
-
|
$
|
98
|
$
|
150
|
$
|
-
|
$
|
275
|
$
|
9
|
Core general
expenses
|
$
|
1,973
|
$
|
1,904
|
$
|
1,794
|
$
|
1,882
|
$
|
1,968
|
$
|
7,553
|
$
|
7,501
|
|
|
|
|
|
|
|
|
Core general
expenses
|
$
|
1,973
|
$
|
1,904
|
$
|
1,794
|
$
|
1,882
|
$
|
1,968
|
$
|
7,553
|
$
|
7,501
|
CER
adjustment
|
-
|
(3)
|
24
|
(18)
|
(54)
|
3
|
(312)
|
Core general
expenses, CER basis
|
$
|
1,973
|
$
|
1,901
|
$
|
1,818
|
$
|
1,864
|
$
|
1,914
|
$
|
7,556
|
$
|
7,189
|
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 possible share buybacks
under our NCIB, the impact related to the reinsurance of our legacy
U.S. variable annuity block, 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", "could",
"should", "would", "likely", "expect", "estimate", "believe",
"plan", "objective", "aim", "continue", and "goal" (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 ongoing prevalence
of COVID-19, including any variants, as well as actions that have
been, or may be taken by governmental authorities in response to
COVID-19, including the impacts of any variants; 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 2021 Management's
Discussion and Analysis under "Risk Management and Risk Factors"
and "Critical Actuarial and Accounting Policies" and in the "Risk
Management" note to the Consolidated Financial Statements for the
year ended December 31, 2021 as well
as 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.
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SOURCE Manulife Financial Corporation