C$ unless otherwise
stated TSX/NYSE/PSE: MFC SEHK:
945
This earnings news
release for Manulife Financial Corporation ("Manulife" or the
"Company") should be read in conjunction with the Company's Second
Quarter 2022 Report to Shareholders, including our unaudited
interim Consolidated Financial Statements for the three and six
months ended June 30, 2022, 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, Aug. 10,
2022 /PRNewswire/ - Today, Manulife announced its
second quarter of 2022 ("2Q22") results. Key highlights
include:
- Net income attributed to shareholders of $1.1 billion in 2Q22, down $1.6 billion from the second quarter of 2021
("2Q21")
- Core earnings1 of $1.6
billion in 2Q22, down 9% on a constant exchange rate basis
from 2Q212
- LICAT ratio3 of 137%
- Core ROE4 of 12.1% and ROE of 8.3% in 2Q22
- NBV5 of $511
million in 2Q22, down 9%5 from 2Q21
- APE sales5 of $1.4
billion in 2Q22, down 1% from 2Q21
- Global Wealth and Asset Management ("Global WAM") net
inflows5 of $1.7 billion
in 2Q22, compared with net inflows of $8.6
billion in 2Q21
- Expense efficiency ratio4 of 49.2%, compared with
our target of less than 50%, and general expenses decreased
3%6
"We delivered solid results, including core earnings of
$1.6 billion, despite challenges
posed by the macro environment, including the impact of market
headwinds in Global WAM and extended COVID-19 restrictions in
Asia," said Manulife President
& Chief Executive Officer Roy
Gori. "Our global franchise is strong and resilient, as
evidenced by double-digit NBV growth in the U.S. and Canada on a combined basis, and core earnings
growth in our Canada and U.S.
Insurance businesses7, which reduced the impact of
market and pandemic related headwinds elsewhere."
"While our net income for the second quarter was negatively
impacted by market volatilities, on a year-to-date basis, we
delivered net income attributed to shareholders of $4.1 billion, which was $0.6 billion higher than our year-to-date 2021
net income and $0.9 billion higher
than our year-to-date 2022 core earnings. The 2022 results are
reflective of positive investment-related experience that more than
offset the negative direct impact of markets, as well as the
one-time gain8 from our U.S. variable annuity
reinsurance transaction that closed in the first quarter," Mr. Gori
concluded.
"Expense efficiency continues to be an important strategic
priority and we maintained an expense efficiency ratio of less than
50% during the quarter despite topline pressures. This, combined
with our in-force business, which grew 7% over the prior year
quarter9, and comprises approximately three-quarters of
our insurance core earnings, has provided for earnings stability
against a backdrop of an uncertain macro environment," said
Phil Witherington, Chief Financial
Officer.
"We are committed to delivering value to shareholders, and have
repurchased approximately 2% of our common shares so far this
year10," Mr. Witherington continued.
BUSINESS HIGHLIGHTS:
Manulife ranked among Corporate Knights' 2022 Best 50 Corporate
Citizens, which recognizes the rising standard and ambition for
corporate sustainability leadership in Canada. In Asia, we became the first life
insurer in Vietnam to offer
healthcare solutions via the MoMo e-wallet, providing the app's 31
million users with access to our award-winning Max-Health insurance
product. MoMo users can now easily purchase Manulife Vietnam's
Max-Health product in less than one minute through a simple
three-step process. In our U.S. segment, we reported the highest
ever quarterly sales in our international business. We signed new
distributors in the Latin America
region and launched a whole life product to support continued sales
growth and diversify the business across geographies. In Global
WAM, we published our 2022 Manulife Investment Management
Stewardship report, detailing our commitment to sustainability as a
global investment manager and outlining actions we are taking to
address material sustainability risks and opportunities, build more
resilient portfolios, and pursue long-term value creation.
In addition, we continued to make progress on our digital
journey in 2Q22. In Asia, we enabled our distribution force with an
advanced suite of digital tools, with the proportion of new
policies sold being digitally submitted reaching 85.5%, an increase
of 10 percentage points compared with 2Q21. In Canada, we continued to advance our digital
solutions with enhancements to Manulife.ca that included enabling
artificial intelligence and natural-language processing
capabilities to make searching for product information quick,
accurate and intuitive. In the U.S., we enhanced our digital
capabilities by launching eDelivery notification of client
correspondence to improve preferred producer experience and
response to customers. In Global WAM, we launched a new mobile app
feature in Canada Retirement that
enables members to make additional contributions to their
Registered Retirement Savings Plans, providing them with greater
control over their financial future.
________________________________
|
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 in our Second Quarter 2022 Management's
Discussion and Analysis ("2Q22 MD&A") for additional
information.
|
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") and expense efficiency ratio are
non-GAAP ratios.
|
5
|
For more information on
new business value ("NBV"), annualized premium equivalent ("APE")
sales and net flows, see "Non-GAAP and other financial measures"
below. In this news release, percentage growth / declines in
NBV and APE sales are stated on a constant exchange rate
basis.
|
6
|
General expenses
percentage decline stated on an actual exchange rate
basis.
|
7
|
Canada segment is
comprised of the Insurance, Annuities, and Manulife Bank
businesses. U.S. segment is comprised of the U.S. Insurance and
U.S. Annuities businesses.
|
8
|
Recognized a one-time
after-tax gain of $842 million in the first quarter of 2022
("1Q22").
|
9
|
Excludes $63 million
(pre-tax) of lost expected profit on in-force relating to the U.S.
variable annuity reinsurance transaction that closed in
1Q22.
|
10
|
As of August 8, 2022,
the Company has purchased for cancellation approximately 38 million
common shares for $933 million
|
FINANCIAL HIGHLIGHTS:
|
Quarterly
Results
|
YTD
Results
|
($ millions, unless
otherwise stated)
|
2Q22
|
2Q21
|
2022
|
2021
|
Profitability:
|
|
|
|
|
Net income attributed
to shareholders
|
$
1,086
|
$ 2,646
|
$ 4,056
|
$ 3,429
|
Core
earnings
|
$
1,562
|
$ 1,682
|
$ 3,114
|
$ 3,311
|
Diluted earnings per
common share ($)
|
$
0.53
|
$ 1.33
|
$
2.04
|
$ 1.71
|
Diluted core earnings
per common share ("Core EPS") ($)(1)
|
$
0.78
|
$ 0.83
|
$
1.55
|
$ 1.65
|
Return on common
shareholders' equity ("ROE")
|
8.3 %
|
22.2 %
|
15.7 %
|
14.3 %
|
Core ROE
|
12.1 %
|
13.9 %
|
12.0 %
|
13.8 %
|
Expense efficiency
ratio
|
49.2 %
|
46.8 %
|
49.6 %
|
47.7 %
|
General
expenses
|
$
1,843
|
$ 1,892
|
$
3,741
|
$ 3,924
|
Business
Performance:
|
|
|
|
|
Asia
new business value
|
$
337
|
$
399
|
$
677
|
$
876
|
Canada
new business value
|
$
82
|
$
76
|
$
186
|
$
154
|
U.S. new business
value
|
$
92
|
$
75
|
$
161
|
$
119
|
Total new business
value
|
$
511
|
$
550
|
$ 1,024
|
$ 1,149
|
Asia APE
sales
|
$
838
|
$
950
|
$ 1,886
|
$ 2,230
|
Canada APE
sales
|
$
361
|
$
274
|
$
724
|
$
629
|
U.S. APE
sales
|
$
209
|
$
191
|
$
408
|
$
341
|
Total APE
sales
|
$
1,408
|
$ 1,415
|
$ 3,018
|
$ 3,200
|
Global WAM net flows ($
billions)
|
$
1.7
|
$
8.6
|
$
8.6
|
$ 10.0
|
Global WAM gross flows
($ billions)(2)
|
$
33.6
|
$ 33.7
|
$
72.1
|
$ 73.4
|
Global WAM assets under
management and administration ($ billions)(3)
|
$
744.7
|
$ 798.5
|
$ 744.7
|
$ 798.5
|
Global WAM total
invested assets ($ billions)
|
$
4.0
|
$
4.2
|
$
4.0
|
$
4.2
|
Global WAM net
segregated funds net assets ($ billions)
|
$
213.3
|
$ 242.6
|
$ 213.3
|
$ 242.6
|
Financial
Strength:
|
|
|
|
|
MLI's LICAT
ratio
|
137 %
|
137 %
|
137 %
|
137 %
|
Financial leverage
ratio
|
28.5 %
|
25.9 %
|
28.5 %
|
25.9 %
|
Book value per common
share ($)
|
$
25.56
|
$ 24.76
|
$ 25.56
|
$ 24.76
|
Book value per common
share excluding AOCI ($)
|
$
25.49
|
$ 22.89
|
$ 25.49
|
$ 22.89
|
(1) This item is a non-GAAP
ratio.
|
(2) For more information on
gross flows, see "Non-GAAP and other financial measures"
below.
|
(3) This item is a non-GAAP
financial measure.
|
PROFITABILITY:
Reported net income attributed to shareholders of
$1.1 billion in 2Q22, down
$1.6 billion from 2Q21
The
decrease in net income attributed to shareholders was primarily
driven by charges from the direct impact of markets (compared with
net gains in 2Q21), smaller gains from investment-related
experience, and lower core earnings. The charge from the direct
impact of markets in 2Q22 was primarily driven by the impact of
unfavourable equity market performance and interest rate hedge
ineffectiveness due to significant interest rate movements across
several markets of differing magnitudes and shape changes. In
addition, foreign exchange movements, losses from the sale of
available-for-sale ("AFS") bonds, and losses from non-parallel
movements in swap spreads also contributed. Investment-related
experience in 2Q22 reflected higher-than-expected returns
(including fair value changes) on alternative long-duration assets
primarily driven by fair value gains on private equity investments,
the favourable impact of fixed income reinvestment activities, and
favourable credit experience.
Delivered core earnings of $1.6
billion in 2Q22, a decrease of 9% compared with
2Q21
The decrease in core earnings was driven by the
unfavourable impact of markets on seed money investments in new
segregated and mutual funds (compared with gains in 2Q21) in
Corporate and Other and on net fee income in Global WAM. In
addition, core earnings were also impacted by lower new business
gains across our insurance segments, lower in-force earnings in
U.S. Annuities due to the variable annuity reinsurance transaction
that closed in 1Q22, and lower fee spread in Global WAM. These
items were partially offset by in-force business growth in
Asia, U.S. Insurance and
Canada, higher yields on fixed
income investments and gains on AFS equities in Corporate and
Other, and improved policyholder experience in the U.S.
ANNUAL REVIEW OF ACTUARIAL METHODS AND ASSUMPTIONS IN THE
THIRD QUARTER OF 2022
("3Q22")1:
In 3Q22, we will complete our annual review of actuarial methods
and assumptions. The review includes a comprehensive study of our
U.S. long-term care ("LTC") experience and, although work is still
ongoing, preliminary indications suggest that the net impact to net
income attributed to shareholders in 3Q22 will be approximately
neutral in total and for LTC; however, there could be variability
in this outcome. The LTC review includes all aspects of assumptions
on claims and future premium rate increases. Other assumptions
being reviewed this year include mortality and certain lapse
assumptions for Canada life
insurance, as well as lapse and mortality assumptions for certain
Asia markets.
BUSINESS PERFORMANCE:
New business value ("NBV") of $511
million in 2Q22, a decrease of 9% compared with
2Q21
In Asia, NBV decreased 17% reflecting lower sales in
Hong Kong, Japan corporate owned life insurance ("COLI")
and Asia Other2, as well
as unfavourable product mix in Asia
Other, partially offset by higher individual protection and
other wealth sales in Japan. In Canada, NBV increased 8% from
2Q21, driven by higher volumes in large-case group insurance,
partially offset by less favourable business mix in Insurance. In
the U.S., NBV increased 18% from 2Q21, driven by improved margins
due to product actions, higher international sales volumes, and
higher interest rates.
Annualized premium equivalent ("APE") sales of $1.4 billion in 2Q22, a decrease of 1% compared
with 2Q21
In Asia, APE sales decreased 12%, reflecting
continued adverse impacts from COVID-19 in Hong Kong, lower COLI product sales in
Japan, and lower sales in
Asia Other. In Hong Kong, APE sales decreased 32% driven by
the continued effect of COVID-19 in Hong
Kong and tighter containment measures in Macau during the quarter. In Japan, APE sales decreased 15% as a result of
lower COLI product sales, partially offset by higher individual
protection and other wealth sales. Asia Other APE sales decreased
3%, reflecting lower agency sales in Vietnam, mainland China and Indonesia, partially offset by higher
bancassurance sales in Singapore,
Vietnam and mainland China. In Canada, APE sales increased 32%, primarily
driven by higher large-case group insurance and individual
insurance par sales, partially offset by lower segregated fund
sales. In the U.S., APE sales increased 6%, primarily due to
strong international sales, which are reported as part of the U.S.
segment results. This increase was partially offset by lower sales
of domestic protection-oriented insurance products, as the impact
of higher inflation on household discretionary spending reduced
demand. APE sales of products with the John Hancock Vitality PLUS
feature increased 13% compared with the prior year quarter,
reflecting greater consumer interest in improving baseline health
due to the impact of COVID-19, making our Vitality feature a
desirable solution in the current environment.
Reported Global Wealth and Asset Management net inflows of
$1.7 billion in 2Q22, compared with
2Q21 net inflows of $8.6
billion
Net inflows in Retirement were $1.0 billion in 2Q22 compared with net outflows
of $0.6 billion in 2Q21, driven by
growth in member contributions and lower plan redemptions. Net
outflows in Retail were $1.9 billion
in 2Q22 compared with net inflows of $7.3
billion in 2Q21, reflecting higher mutual fund redemption
rates and lower gross flows due to decreased investor demand amid
equity market declines and higher interest rates. Net inflows in
Institutional Asset Management were $2.5
billion in 2Q22 compared with net inflows of $1.9 billion in 2Q21, driven by a $1.9 billion sale of an equity mandate, partially
offset by the non-recurrence of a $1.0
billion sale to an existing client in the prior year.
____________________
|
1 See
"Caution regarding forward-looking statements" below.
2 Asia Other excludes Hong Kong and
Japan.
|
QUARTERLY EARNINGS RESULTS CONFERENCE CALL
Manulife Financial Corporation will host a Second Quarter 2022
Earnings Results Conference Call at 8:00
a.m. ET on August 11, 2022.
For local and international locations, please call 416-340-2217 or
toll free, North America
1-800-806-5484 (Passcode: 5329622#). Please call in 15 minutes
before the call starts. You will be required to provide your name
and organization to the operator. A replay of this call will be
available by 11:00 a.m. ET on
August 11, 2022 through November 3, 2022 by calling 905-694-9451 or
1-800-408-3053 (Passcode: 1177427#).
The conference call will also be webcast through Manulife's
website at 8:00 a.m. ET on
August 11, 2022. You may access the
webcast at: manulife.com/en/investors/results-and-reports. An
archived version of the webcast will be available on the website
following the call at the same URL as above.
The Second Quarter 2022 Statistical Information Package is also
available on the Manulife website
at: www.manulife.com/en/investors/results-and-reports.
Any information contained in, or otherwise accessible
through, websites mentioned in this news release does not form a
part of this document unless it is expressly incorporated by
reference.
EARNINGS:
The following table presents net income attributed to
shareholders, consisting of core earnings and details of the items
excluded from core earnings:
|
Quarterly
Results
|
YTD
Results
|
($ millions)
|
2Q22
|
1Q22
|
2Q21
|
2022
|
2021
|
Core
earnings
|
|
|
|
|
|
Asia
|
$
513
|
$
537
|
$
526
|
$
1,050
|
$
1,096
|
Canada
|
345
|
314
|
318
|
659
|
582
|
U.S.
|
456
|
486
|
478
|
942
|
979
|
Global Wealth and Asset
Management
|
305
|
324
|
356
|
629
|
668
|
Corporate and Other
(excluding core investment gains)
|
(157)
|
(209)
|
(96)
|
(366)
|
(214)
|
Core investment
gains(1)
|
100
|
100
|
100
|
200
|
200
|
Total core
earnings
|
$
1,562
|
$
1,552
|
$
1,682
|
$
3,114
|
$
3,311
|
Items excluded from
core earnings:(1)
Investment-related
experience outside of core earnings
|
591
|
558
|
739
|
1,149
|
816
|
Direct impact of equity
markets and interest rates and variable annuity guarantee
liabilities
|
(1,067)
|
97
|
217
|
(970)
|
(618)
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
(115)
|
Reinsurance
transaction, tax-related items and other
|
-
|
763
|
8
|
763
|
35
|
Net income
attributed to shareholders
|
$
1,086
|
$
2,970
|
$
2,646
|
$
4,056
|
$
3,429
|
(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; NBV; APE sales; gross flows; net flows; 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 2Q22 MD&A, which
is incorporated by reference.
Reconciliation of core earnings to net income attributed to
shareholders
|
2Q22
|
($ 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
|
Income (loss) before
income taxes
|
$
216
|
$
224
|
$ 1,010
|
$
362
|
$
(555)
|
$ 1,257
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(74)
|
(119)
|
(92)
|
(57)
|
4
|
(338)
|
Items excluded from
core earnings
|
44
|
64
|
(82)
|
-
|
54
|
80
|
Income tax (expense)
recovery
|
(30)
|
(55)
|
(174)
|
(57)
|
58
|
(258)
|
Net income
(post-tax)
|
186
|
169
|
836
|
305
|
(497)
|
999
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
(11)
|
-
|
-
|
-
|
-
|
(11)
|
Participating
policyholders
|
(164)
|
84
|
4
|
-
|
-
|
(76)
|
Net income (loss)
attributed to shareholders (post-tax)
|
361
|
85
|
832
|
305
|
(497)
|
1,086
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
Investment-related
experience outside of core earnings
|
80
|
86
|
591
|
-
|
(166)
|
591
|
Direct impact of
equity markets and interest rates and variable annuity guarantee
liabilities
|
(232)
|
(346)
|
(215)
|
-
|
(274)
|
(1,067)
|
Change in actuarial
methods and assumptions
|
-
|
-
|
-
|
-
|
-
|
-
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
-
|
-
|
-
|
-
|
-
|
-
|
Core earnings
(post-tax)
|
$
513
|
$
345
|
$
456
|
$ 305
|
$
(57)
|
$ 1,562
|
Income tax on core
earnings (see above)
|
74
|
119
|
92
|
57
|
(4)
|
338
|
Core earnings
(pre-tax)
|
$
587
|
$
464
|
$
548
|
$ 362
|
$
(61)
|
$ 1,900
|
(1) These items are disclosed
under OSFI's Source of Earnings Disclosure (Life Insurance
Companies) guideline.
|
Core earnings, CER basis
|
2Q22
|
(Canadian $ millions,
post-tax and based on actual foreign
exchanger rates in effect in the applicable reporting period,
unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
Core earnings
(post-tax)
|
$
513
|
$
345
|
$
456
|
$
305
|
$
(57)
|
$ 1,562
|
CER
adjustment(1)
|
-
|
-
|
-
|
-
|
-
|
-
|
Core earnings, CER
basis (post-tax)
|
$
513
|
$
345
|
$
456
|
$ 305
|
$
(57)
|
$ 1,562
|
Income tax on core
earnings, CER basis(2)
|
74
|
119
|
92
|
57
|
(4)
|
338
|
Core earnings, CER
basis (pre-tax)
|
$
587
|
$
464
|
$
548
|
$ 362
|
$
(61)
|
$ 1,900
|
(1) The impact of updating
foreign exchange rates to that which was used in 2Q22.
|
(2) Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 2Q22.
|
Reconciliation of core earnings to net income attributed to
shareholders
|
1Q22
|
($ 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
|
Income (loss) before
income taxes
|
$
681
|
$
880
|
$ 2,577
|
$ 386
|
$ (813)
|
$ 3,711
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(74)
|
(110)
|
(105)
|
(61)
|
26
|
(324)
|
Items excluded from
core earnings
|
(11)
|
(115)
|
(405)
|
-
|
46
|
(485)
|
Income tax (expense)
recovery
|
(85)
|
(225)
|
(510)
|
(61)
|
72
|
(809)
|
Net income
(post-tax)
|
596
|
655
|
2,067
|
325
|
(741)
|
2,902
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
20
|
-
|
-
|
1
|
-
|
21
|
Participating
policyholders
|
(197)
|
108
|
-
|
-
|
-
|
(89)
|
Net income (loss)
attributed to shareholders (post-tax)
|
773
|
547
|
2,067
|
324
|
(741)
|
2,970
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
Investment-related
experience outside of core earnings
|
64
|
53
|
527
|
-
|
(86)
|
558
|
Direct impact of
equity markets and interest rates and variable annuity guarantee
liabilities
|
180
|
180
|
212
|
-
|
(475)
|
97
|
Change in actuarial
methods and assumptions
|
-
|
-
|
-
|
-
|
-
|
-
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
(8)
|
-
|
842
|
-
|
(71)
|
763
|
Core earnings
(post-tax)
|
$
537
|
$
314
|
$
486
|
$ 324
|
$ (109)
|
$ 1,552
|
Income tax on core
earnings (see above)
|
74
|
110
|
105
|
61
|
(26)
|
324
|
Core earnings
(pre-tax)
|
$
611
|
$
424
|
$
591
|
$ 385
|
$ (135)
|
$ 1,876
|
(1) These items are disclosed
under OSFI's Source of Earnings Disclosure (Life Insurance
Companies) guideline.
|
Core earnings, CER basis
|
1Q22
|
(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
|
Core earnings
(post-tax)
|
$
537
|
$
314
|
$
486
|
$ 324
|
$ (109)
|
$ 1,552
|
CER
adjustment(1)
|
(10)
|
-
|
4
|
1
|
-
|
(5)
|
Core earnings, CER
basis (post-tax)
|
$
527
|
$
314
|
$
490
|
$ 325
|
$ (109)
|
$ 1,547
|
Income tax on core
earnings, CER basis(2)
|
72
|
110
|
106
|
61
|
(26)
|
323
|
Core earnings, CER
basis (pre-tax)
|
$
599
|
$
424
|
$
596
|
$ 386
|
$ (135)
|
$ 1,870
|
(1) The impact of updating
foreign exchange rates to that which was used in 2Q22.
|
(2) Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 2Q22.
|
Reconciliation of core earnings to net income attributed to
shareholders
|
2Q21
|
($ 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
|
Income (loss) before
income taxes
|
$
736
|
$ 1,031
|
$
986
|
$ 419
|
$
120
|
$ 3,292
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(78)
|
(112)
|
(106)
|
(64)
|
6
|
(354)
|
Items excluded from
core earnings
|
(22)
|
(107)
|
(83)
|
1
|
(45)
|
(256)
|
Income tax (expense)
recovery
|
(100)
|
(219)
|
(189)
|
(63)
|
(39)
|
(610)
|
Net income
(post-tax)
|
636
|
812
|
797
|
356
|
81
|
2,682
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
84
|
-
|
-
|
-
|
-
|
84
|
Participating
policyholders
|
(81)
|
29
|
4
|
-
|
-
|
(48)
|
Net income (loss)
attributed to shareholders (post-tax)
|
633
|
783
|
793
|
356
|
81
|
2,646
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
Investment-related
experience outside of core earnings
|
121
|
207
|
506
|
-
|
(95)
|
739
|
Direct impact of
equity markets and interest rates and variable annuity guarantee
liabilities
|
(22)
|
258
|
(191)
|
-
|
172
|
217
|
Change in actuarial
methods and assumptions
|
-
|
-
|
-
|
-
|
-
|
-
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
8
|
-
|
-
|
-
|
-
|
8
|
Core earnings
(post-tax)
|
$
526
|
$
318
|
$
478
|
$ 356
|
$
4
|
$ 1,682
|
Income tax on core
earnings (see above)
|
78
|
112
|
106
|
64
|
(6)
|
354
|
Core earnings
(pre-tax)
|
$
604
|
$
430
|
$
584
|
$ 420
|
$
(2)
|
$ 2,036
|
(1) These items are disclosed
under OSFI's Source of Earnings Disclosure (Life Insurance
Companies) guideline.
|
Core earnings, CER basis
|
2Q21
|
(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
|
Core earnings
(post-tax)
|
$
526
|
$
318
|
$
478
|
$ 356
|
$
4
|
$ 1,682
|
CER
adjustment(1)
|
1
|
-
|
19
|
9
|
1
|
30
|
Core earnings, CER
basis (post-tax)
|
$
527
|
$
318
|
$
497
|
$ 365
|
$
5
|
$ 1,712
|
Income tax on core
earnings, CER basis(2)
|
80
|
111
|
109
|
65
|
(5)
|
360
|
Core earnings, CER
basis (pre-tax)
|
$
607
|
$
429
|
$
606
|
$ 430
|
$
-
|
$ 2,072
|
(1) The impact of updating
foreign exchange rates to that which was used in 2Q22.
|
(2) Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 2Q22.
|
Reconciliation of core earnings to net income attributed to
shareholders
|
YTD
2022
|
($ 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
|
Income (loss) before
income taxes
|
$
897
|
$ 1,104
|
$ 3,587
|
$ 748
|
$
(1,368)
|
$ 4,968
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(148)
|
(229)
|
(197)
|
(118)
|
30
|
(662)
|
Items excluded from
core earnings
|
33
|
(51)
|
(487)
|
-
|
100
|
(405)
|
Income tax (expense)
recovery
|
(115)
|
(280)
|
(684)
|
(118)
|
130
|
(1,067)
|
Net income
(post-tax)
|
782
|
824
|
2,903
|
630
|
(1,238)
|
3,901
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
9
|
-
|
-
|
1
|
-
|
10
|
Participating
policyholders
|
(361)
|
192
|
4
|
-
|
-
|
(165)
|
Net income (loss)
attributed to shareholders (post-tax)
|
1,134
|
632
|
2,899
|
629
|
(1,238)
|
4,056
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
Investment-related
experience outside of core earnings
|
144
|
139
|
1,118
|
-
|
(252)
|
1,149
|
Direct impact of
equity markets and interest rates and variable annuity guarantee
liabilities
|
(52)
|
(166)
|
(3)
|
-
|
(749)
|
(970)
|
Change in actuarial
methods and assumptions
|
-
|
-
|
-
|
-
|
-
|
-
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
(8)
|
-
|
842
|
-
|
(71)
|
763
|
Core earnings
(post-tax)
|
$ 1,050
|
$
659
|
$
942
|
$ 629
|
$
(166)
|
$ 3,114
|
Income tax on core
earnings (see above)
|
148
|
229
|
197
|
118
|
(30)
|
662
|
Core earnings
(pre-tax)
|
$ 1,198
|
$
888
|
$ 1,139
|
$ 747
|
$
(196)
|
$ 3,776
|
(1) These items are disclosed
under OSFI's Source of Earnings Disclosure (Life Insurance
Companies) guideline.
|
Core earnings, CER basis
|
YTD
2022
|
(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
|
Core earnings
(post-tax)
|
$ 1,050
|
$
659
|
$
942
|
$ 629
|
$
(166)
|
$ 3,114
|
CER
adjustment(1)
|
(10)
|
-
|
4
|
1
|
-
|
(5)
|
Core earnings, CER
basis (post-tax)
|
$ 1,040
|
$
659
|
$
946
|
$ 630
|
$
(166)
|
$ 3,109
|
Income tax on core
earnings, CER basis(2)
|
146
|
229
|
198
|
118
|
(30)
|
661
|
Core earnings, CER
basis (pre-tax)
|
$ 1,186
|
$
888
|
$ 1,144
|
$ 748
|
$
(196)
|
$ 3,770
|
(1) The impact of updating
foreign exchange rates to that which was used in 2Q22.
|
(2) Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 2Q22.
|
Reconciliation of core earnings to net income attributed to
shareholders
|
YTD 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
|
Income (loss) before
income taxes
|
$ 1,854
|
$ 1,086
|
$ 1,070
|
$ 785
|
$ (631)
|
$ 4,164
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(202)
|
(203)
|
(222)
|
(116)
|
23
|
(720)
|
Items excluded from
core earnings
|
(76)
|
1
|
52
|
-
|
126
|
103
|
Income tax (expense)
recovery
|
(278)
|
(202)
|
(170)
|
(116)
|
149
|
(617)
|
Net income
(post-tax)
|
1,576
|
884
|
900
|
669
|
(482)
|
3,547
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
174
|
-
|
-
|
1
|
-
|
175
|
Participating
policyholders
|
(188)
|
120
|
11
|
-
|
-
|
(57)
|
Net income (loss)
attributed to shareholders (post-tax)
|
1,590
|
764
|
889
|
668
|
(482)
|
3,429
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
Investment-related
experience outside of core earnings
|
193
|
142
|
666
|
-
|
(185)
|
816
|
Direct impact of
equity markets and interest rates and variable annuity guarantee
liabilities
|
266
|
40
|
(756)
|
-
|
(168)
|
(618)
|
Change in actuarial
methods and assumptions
|
-
|
-
|
-
|
-
|
-
|
-
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
(115)
|
(115)
|
Reinsurance
transactions, tax related items and other
|
35
|
-
|
-
|
-
|
-
|
35
|
Core earnings
(post-tax)
|
$ 1,096
|
$
582
|
$
979
|
$ 668
|
$
(14)
|
$ 3,311
|
Income tax on core
earnings (see above)
|
202
|
203
|
222
|
116
|
(23)
|
720
|
Core earnings
(pre-tax)
|
$ 1,298
|
$
785
|
$ 1,201
|
$ 784
|
$
(37)
|
$ 4,031
|
(1) These items are disclosed
under OSFI's Source of Earnings Disclosure (Life Insurance
Companies) guideline.
|
Core earnings, CER basis
|
YTD 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
|
Core earnings
(post-tax)
|
$ 1,096
|
$
582
|
$
979
|
$ 668
|
$
(14)
|
$ 3,311
|
CER
adjustment(1)
|
(18)
|
-
|
23
|
10
|
1
|
16
|
Core earnings, CER
basis (post-tax)
|
$ 1,078
|
$
582
|
$ 1,002
|
$ 678
|
$
(13)
|
$ 3,327
|
Income tax on core
earnings, CER basis(2)
|
200
|
202
|
227
|
117
|
(23)
|
723
|
Core earnings, CER
basis (pre-tax)
|
$ 1,278
|
$
784
|
$ 1,229
|
$ 795
|
$
(36)
|
$ 4,050
|
(1) The impact of updating
foreign exchange rates to that which was used in 2Q22.
|
(2) Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 2Q22.
|
Core earnings available to common
shareholders
($ millions, and based on actual foreign
exchange rates in effect in the applicable reporting period, unless
otherwise stated)
|
Quarterly
Results
|
YTD
Results
|
Full Year
Results
|
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
Core
earnings
|
$ 1,562
|
$ 1,552
|
$ 1,708
|
$ 1,517
|
$ 1,682
|
$ 3,114
|
$ 3,311
|
$ 6,536
|
Less: Preferred share
dividends
|
(60)
|
(52)
|
(71)
|
(37)
|
(64)
|
(112)
|
(107)
|
(215)
|
Core earnings
available to common shareholders
|
1,502
|
1,500
|
1,637
|
1,480
|
1,618
|
3,002
|
3,204
|
6,321
|
CER
adjustment(1)
|
-
|
(5)
|
2
|
(5)
|
30
|
(5)
|
16
|
13
|
Core earnings
available to common shareholders, CER basis
|
$ 1,502
|
$ 1,495
|
$ 1,639
|
$ 1,475
|
$ 1,648
|
$ 2,997
|
$ 3,220
|
$ 6,334
|
(1) The impact of updating
foreign exchange rates to that which was used in 2Q22.
|
Core ROE
($ millions, unless otherwise stated)
|
Quarterly
Results
|
YTD
Results
|
Full Year
Results
|
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
Core earnings available
to common shareholders
|
$ 1,502
|
$ 1,500
|
$ 1,637
|
$ 1,480
|
$ 1,618
|
$ 3,002
|
$ 3,204
|
$ 6,321
|
Annualized core
earnings available to common shareholders
|
$ 6,022
|
$ 6,085
|
$ 6,483
|
$ 5,874
|
$ 6,485
|
$ 6,053
|
$ 6,460
|
$ 6,321
|
Average common
shareholders' equity (see below)
|
$
49,814
|
$
51,407
|
$
51,049
|
$
49,075
|
$
46,757
|
$
50,611
|
$
46,865
|
$
48,463
|
Core ROE
(annualized) (%)
|
12.1 %
|
11.8 %
|
12.7 %
|
12.0 %
|
13.9 %
|
12.0 %
|
13.8 %
|
13.0 %
|
Average common
shareholders' equity
|
|
|
|
|
|
|
|
|
Total shareholders' and
other equity
|
$
55,500
|
$
56,457
|
$
58,408
|
$
55,457
|
$
53,466
|
$
55,500
|
$
53,466
|
$
58,408
|
Less: Preferred shares
and other equity
|
(6,660)
|
(5,670)
|
(6,381)
|
(5,387)
|
(5,387)
|
(6,660)
|
(5,387)
|
(6,381)
|
Common shareholders'
equity
|
$
48,840
|
$
50,787
|
$
52,027
|
$
50,070
|
$
48,079
|
$
48,840
|
$
48,079
|
$
52,027
|
Average common
shareholders' equity
|
$
49,814
|
$
51,407
|
$
51,049
|
$
49,075
|
$
46,757
|
$
50,611
|
$
46,865
|
$
48,463
|
Core EPS
($ millions, and based on actual foreign
exchange rates in effect in the applicable reporting period, unless
otherwise stated)
|
Quarterly
Results
|
YTD
Results
|
Full Year
Results
|
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
Core
EPS
|
|
|
|
|
|
|
|
|
Core earnings available
to common shareholders
|
$ 1,502
|
$ 1,500
|
$ 1,637
|
$
1,480
|
$ 1,618
|
$ 3,002
|
$ 3,204
|
$ 6,321
|
Diluted weighted
average common shares outstanding (millions)
|
1,924
|
1,942
|
1,946
|
1,946
|
1,946
|
1,933
|
1,946
|
1,946
|
Core earnings per
share
|
$
0.78
|
$ 0.77
|
$
0.84
|
$
0.76
|
$ 0.83
|
$
1.55
|
$ 1.65
|
$ 3.25
|
Core EPS, CER
basis
|
|
|
|
|
|
|
|
|
Core earnings available
to common shareholders, CER basis
|
$ 1,502
|
$ 1,495
|
$ 1,639
|
$
1,475
|
$ 1,648
|
$ 2,997
|
$ 3,220
|
$ 6,334
|
Diluted weighted
average common shares outstanding (millions)
|
1,924
|
1,942
|
1,946
|
1,946
|
1,946
|
1,933
|
1,946
|
1,946
|
Core earnings per
share, CER basis
|
$
0.78
|
$ 0.77
|
$
0.84
|
$
0.76
|
$ 0.85
|
$
1.55
|
$ 1.65
|
$ 3.25
|
Global WAM AUMA reconciliation
($ millions, and based
on actual foreign exchange rates in effect in the applicable
reporting period, unless otherwise stated)
As at
|
June 30,
2022
|
March 31,
2022
|
Dec 31,
2021
|
Sept 30,
2021
|
June 30,
2021
|
Total invested
assets
|
$
402,329
|
$
409,401
|
$
427,098
|
$
419,087
|
$
405,209
|
Less: Non Global WAM
total invested assets
|
398,362
|
405,933
|
422,640
|
414,754
|
400,998
|
Total Invested
Assets – Global WAM
|
3,967
|
3,468
|
4,458
|
4,333
|
4,211
|
Total segregated funds
net assets
|
$
334,903
|
$
371,928
|
$
399,788
|
$
387,799
|
$
383,845
|
Less: Non Global WAM
total segregated funds net assets
|
121,624
|
135,314
|
147,221
|
143,248
|
141,227
|
Total Segregated
funds net assets – Global WAM
|
213,279
|
236,614
|
252,567
|
244,551
|
242,618
|
Global WAM total
invested assets and segregated funds net assets
|
$
217,246
|
$
240,082
|
$
257,025
|
$
248,884
|
$
246,829
|
Global WAM
AUMA
|
|
|
|
|
|
Total Invested
Assets
|
$
3,967
|
$
3,468
|
$
4,458
|
$
4,333
|
$
4,211
|
Segregated funds net
assets
|
|
|
|
|
|
Segregated funds net
assets - Institutional
|
4,098
|
4,338
|
4,470
|
4,400
|
4,229
|
Segregated funds net
assets - Other
|
209,181
|
232,276
|
248,097
|
240,151
|
238,389
|
Total
|
213,279
|
236,614
|
252,567
|
244,551
|
242,618
|
Mutual funds
|
250,445
|
274,665
|
290,863
|
277,421
|
265,110
|
Institutional asset
management(1)
|
100,205
|
101,105
|
106,407
|
103,732
|
99,983
|
Other funds
|
12,110
|
13,269
|
14,001
|
12,562
|
12,232
|
Total Global WAM
AUM
|
580,006
|
629,121
|
668,296
|
642,599
|
624,154
|
Assets under
administration
|
164,697
|
178,843
|
187,631
|
181,013
|
174,376
|
Total Global WAM
AUMA
|
$
744,703
|
$
807,964
|
$
855,927
|
$
823,612
|
$
798,530
|
|
|
|
|
|
|
Total Global WAM
AUMA
|
$
744,703
|
$
807,964
|
$
855,927
|
$
823,612
|
$
798,530
|
CER
adjustment(2)
|
-
|
15,962
|
6,878
|
3,490
|
19,372
|
Total Global WAM
AUMA, CER basis
|
$
744,703
|
$
823,926
|
$
862,805
|
$
827,102
|
$
817,902
|
(1) Institutional asset
management excludes Institutional segregated funds net
assets.
|
(2) The impact of updating
foreign exchange rates to that which was used in 2Q22.
|
Expense efficiency ratio
($ millions, and based on actual foreign exchange rates in effect
in the applicable reporting period, unless otherwise stated)
|
Quarterly
Results
|
YTD
Results
|
Full Year
Results
|
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2Q21
|
2022
|
2021
|
2021
|
Expense Efficiency
Ratio
|
|
|
|
|
|
|
|
|
Core general
expenses
|
$ 1,843
|
$ 1,877
|
$ 1,973
|
$ 1,904
|
$ 1,794
|
$ 3,720
|
$ 3,676
|
$ 7,553
|
Core earnings
(pre-tax)
|
1,900
|
1,876
|
2,054
|
1,811
|
2,036
|
3,776
|
4,031
|
7,896
|
Total - Core earnings
(pre-tax) and Core general expenses
|
$ 3,743
|
$ 3,753
|
$ 4,027
|
$ 3,715
|
$ 3,830
|
$ 7,496
|
$ 7,707
|
$
15,449
|
Expense Efficiency
Ratio
|
49.2 %
|
50.0 %
|
49.0 %
|
51.3 %
|
46.8 %
|
49.6 %
|
47.7 %
|
48.9 %
|
Core general
expenses
|
|
|
|
|
|
|
|
|
General expenses -
Financial Statements
|
$ 1,843
|
$ 1,898
|
$ 2,000
|
$ 1,904
|
$ 1,892
|
$ 3,741
|
$ 3,924
|
$ 7,828
|
Less: General expenses
included in items excluded from core earnings
|
|
|
|
|
|
|
|
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
150
|
150
|
Integration and
acquisition
|
-
|
8
|
-
|
-
|
-
|
8
|
-
|
-
|
Legal provisions and
Other expenses
|
-
|
13
|
27
|
-
|
98
|
13
|
98
|
125
|
Total
|
$
-
|
$
21
|
$
27
|
$
-
|
$
98
|
$
21
|
$
248
|
$
275
|
Core general
expenses
|
$ 1,843
|
$ 1,877
|
$ 1,973
|
$ 1,904
|
$ 1,794
|
$ 3,720
|
$ 3,676
|
$ 7,553
|
Core general
expenses
|
$ 1,843
|
$ 1,877
|
$ 1,973
|
$ 1,904
|
$ 1,794
|
$ 3,720
|
$ 3,676
|
$ 7,553
|
CER
adjustment(1)
|
-
|
(11)
|
(7)
|
(11)
|
17
|
(11)
|
(9)
|
(26)
|
Core general
expenses, CER basis
|
$ 1,843
|
$ 1,866
|
$ 1,966
|
$ 1,893
|
$ 1,811
|
$ 3,709
|
$ 3,667
|
$ 7,527
|
(1) The impact of updating
foreign exchange rates to that which was used in 2Q22.
|
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 estimated impact of
our annual review of actuarial methods and assumptions 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", "suspect", "outlook",
"expect", "intend", "estimate", "anticipate", "believe", "plan",
"forecast", "objective", "seek", "aim", "continue", "goal",
"restore", "embark" and "endeavour" (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, inflation rates, 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;
geopolitical uncertainty, including international conflicts;
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, including climate
change; 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 under "Risk Management and
Risk Factors" and "Critical Actuarial and Accounting Policies" in
the Management's Discussion and Analysis in our most recent annual
report, under "Risk Management and Risk Factors Update" and
"Critical Actuarial and Accounting Policies" in the Management's
Discussion and Analysis in our most recent interim report, in the
"Risk Management" note to the consolidated financial statements in
our most recent annual and interim reports 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