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, 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, Feb. 15,
2023 /CNW/ - Today, Manulife announced its 2022
and fourth quarter of 2022 ("4Q22") results. Key highlights
include:
- Net income attributed to shareholders of $7.3 billion in 2022, up $0.2 billion from 2021 and $1.9 billion in 4Q22, down $0.2 billion from the fourth quarter of 2021
("4Q21")
- Core earnings1 of $6.2
billion in 2022, down 7% on a constant exchange rate basis
from 2021, and $1.7 billion in 4Q22,
down 2% on a constant exchange rate basis from
4Q212
- Core ROE3 of 11.9% in 2022 and 13.2% in 4Q22 and ROE
of 14.1% in 2022 and 14.4% in 4Q22
- NBV4 of $2.1 billion
in 2022, down 9%4 from 2021, and $525 million in 4Q22, down 9% from 4Q21
- APE sales4 of $5.7
billion in 2022, down 7% from 2021, and $1.3 billion in 4Q22, down 12% from 4Q21
- Global Wealth and Asset Management ("Global WAM") net
inflows4 of $3.3 billion
in 2022 compared with net inflows of $27.9
billion in 2021, and net outflows of $8.3 billion in 4Q22, compared with net inflows
of $8.1 billion in 4Q21
- LICAT ratio5 of 131%
- Remittances4 of $6.9
billion in 2022 compared with $4.4
billion in 2021, an increase of $2.5
billion
- Purchased for cancellation 4.1% of common shares outstanding,
or approximately 79 million common shares, for $1.9 billion in 2022
- Completed two transactions to reinsure over 80%6 of
Manulife's legacy U.S. variable annuity block, releasing
$2.5 billion of capital and
significantly reducing risk
- Acquired full control of Manulife TEDA Fund Management Co., Ltd
("MTEDA") by purchasing the remaining 51% of shares from our joint
venture partner in mainland China
- Also announced earlier today:
-
- An 11% increase in common share dividend, and
- Our intention to launch a Normal Course Issuer Bid ("NCIB")
that permits repurchase of up to 3% of outstanding common shares
subject to the approval of the Toronto Stock
Exchange7
"Manulife demonstrated resilience and delivered record net
income of $7.3 billion, and core
earnings of $6.2 billion in 2022,"
said Manulife President & Chief Executive Officer Roy Gori. "Our results reflect the strength of
our diverse global franchise. Though difficult market conditions
persisted this quarter, we are pleased to have generated
$3.3 billion in net inflows and a
core EBITDA margin8 of 30.4% in our Global WAM
business on a full-year basis, enabled by our substantial scale and
disciplined approach to managing operating expenses. In Asia, we
ended the year with positive momentum as evidenced by core earnings
growth in 4Q22 compared with the same period of 2021 and third
quarter of 2022, and our Asia in-force business delivered
double-digit growth for the full year despite a challenging
operating environment which impacted our full year APE sales and
NBV. Our North American insurance businesses also generated robust
NBV growth in 2022 of 25% and 18% in the U.S. and Canada, respectively."
"We are relentlessly committed to making decisions easier and
lives better for our customers. We are proud of the progress we
have made on the strategic priority targets that we set in 2018,
and we are confident in achieving our 2025 targets9,"
added Mr. Gori. "After achieving our portfolio optimization target
three years ahead of schedule, we continued to make significant
progress in 2022 and completed two reinsurance transactions on our
legacy U.S. variable annuity block, further reducing our go-forward
risk profile. In addition, we remain focused on growing our
highest potential businesses and became the first global wealth and
asset manager to acquire a 100% stake in a fully operating public
fund management company in mainland China, upon purchasing the remaining 51% of
shares in MTEDA in November
2022."
Phil Witherington, Chief
Financial Officer, said, "In 2022, we achieved an expense
efficiency ratio10 of 50.9% with expenses maintained in
line with 2021 despite the inflationary environment, an outcome of
our strategic focus on digitization and efficiency. Our capital
position remains strong with a LICAT ratio of 131% and we delivered
$6.9 billion in remittances, the
highest in our company's history and an increase of $2.5 billion compared with the prior year,
benefiting from the reinsurance of our legacy U.S. variable
annuities block. Over the past year we have repurchased 4.1% of the
outstanding common shares. We view share buybacks as an efficient
tool to deploy excess capital and announced our intention to launch
an NCIB to repurchase up to 3% of outstanding shares. Our
strong balance sheet and financial flexibility position us well to
execute on our strategic priorities in the months and years
ahead."
"As we prepare for the adoption of the new accounting standard
IFRS 17, we remain confident in the value of our products and
services for both our customers and our shareholders and our
ability to achieve our medium-term financial targets2,"
added Mr. Witherington.
"The macro environment is being shaped by three megatrends: the
growth and emergence of the middle class in Asia, an aging global population, and the
digitization of the consumer. Manulife's Asia and Global WAM
businesses are very well positioned to capitalize on these global
megatrends. We enter 2023 in a position of strength, ready to
execute on our growth strategy and deliver for our customers,
colleagues and shareholders, which was reflected in the 11%
dividend increase approved by the Board today," Mr. Gori
concluded.
2022 BUSINESS HIGHLIGHTS:
We continue to execute on our ambition of being the most
digital, customer-centric global company in our industry, and we
have substantially progressed our business with the ambitious 2022
targets we set five years ago. We delivered $9.0 billion of cumulative capital benefits from
our legacy businesses, exceeding our portfolio optimization target
by $4.0 billion. We achieved the
$1 billion expense efficiency target
in 2020, two years ahead of schedule and delivered an expense
efficiency ratio of 48.9% in 2021. In 2022, core general
expenses11 and general expenses in total were in
line12,13 with the prior year and our expense
efficiency ratio was 50.9%, reflecting our strategic focus on
digitalization and efficiency and the value of our disciplined
approach to managing operating expenses during periods of topline
pressure, as was the case throughout 2022, due to COVID-19
containment measures in Asia and
challenging market conditions for our Global WAM business. These
temporary headwinds dampened the contribution of core earnings
generated from our highest potential business in 2022, which was
63%, or 4 percentage points short of our target. While our 2022 Net
Promoter Score of +20 marked a significant improvement from the
2017 baseline of +1, we were short of our ambitious target of +31
as workforce capacity constraints, which have since been addressed,
impacted our service levels in the first half of the year. Our high
performing team has been a key enabler of these accomplishments and
we achieved a top quartile employee engagement
rank14 in each of 2020, 2021 and 2022. Our employee
engagement score has improved steadily since 2017 and we were
ranked in the top 6%14 amongst global finance and
insurance companies in 2022. Looking forward, we are confident that
our all-weather strategy, diverse business model and considerable
financial strength and flexibility position us well to win and
deliver on our 2025 strategic and medium-term financial
targets15.
In 2022, our Asia segment continued to invest in our diversified
distribution platform to accelerate growth and commenced offering
insurance solutions to VietinBank's customers, demonstrating strong
momentum in the first year of its 16-year exclusive bancassurance
partnership in Vietnam. In
Canada, we added innovative
customer-centric enhancements across our product shelf to help
Canadians focus on improving their health and wellness, including
the expansion of the Manulife Vitality program to all
eligible new retail term and universal life insurance policies. In
the U.S., we achieved our highest ever full year domestic life
insurance sales with the John Hancock Vitality PLUS feature and
entered into a partnership with GRAIL, a healthcare company, as the
first life insurance carrier to offer access to their leading edge,
multi-cancer early detection test, Galleri®, to a pilot group of
customers through John Hancock Vitality. The completion of two
transactions to reinsure more than 80% of our legacy U.S. variable
annuity block released $2.5 billion
of capital, including a cumulative one-time after-tax net gain of
$806 million.16 In
Global WAM, we executed on our accelerated growth strategy with the
acquisition of the remaining 51% of shares in MTEDA, as well as a
significant minority equity position in ARCH Capital, an
Asia-focused real estate private equity investment manager. We also
expanded our Environmental, Social and Governance investment
offerings with the launch of the Global Climate Action Strategy in
Europe and Asia, and the launch of
the Manulife Forest Climate strategy in the U.S.
Meanwhile, tremendous effort has been dedicated to driving
progress in our digital journey across all segments. In Asia, we
further enhanced our digital capabilities and invested in high
impact digital initiatives spanning the full customer and
distributor experience, such as launching Manulife Shop in
the Philippines in 4Q22 to enable
customers to purchase insurance online, and increasing the adoption
of ePOS, our proprietary digital onboarding app, by 15 percentage
points17 to 89%, enabling faster, error-free new
business application submissions. In Canada, we enhanced our mobile apps across
many businesses including an upgraded Manulife Vitality
mobile app experience in our individual insurance business and a
new user interface in the Manulife mobile app for our Group
Benefits customers with additional functionality. In the U.S., we
improved the producer and customer experience while contributing to
a more cost-efficient operation. We reduced the average time to
complete background checks for new producers within our digital
brokerage and traditional brokerage channels by over 90% via
automation. We also reduced call volumes for enquiries related to
John Hancock Vitality customer login and registration by 39%
compared with 2021 as we optimized self-service functionality. In
Global WAM, our improved U.S. Retirement mobile app drove a 99%
growth in users in 2022, while the Canadian Retirement mobile app
launched a new feature to enable additional contributions and
booking one-on-one meetings with an advisor directly in the
app.
__________
|
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 2022 Management's Discussion and
Analysis ("2022 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
|
Core return on common
shareholders' equity ("Core ROE") is a non-GAAP
ratio.
|
4
|
For more information on
new business value ("NBV"), annualized premium equivalent ("APE")
sales, net flows and remittances, 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.
|
5
|
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.
|
6
|
Represents a reduction
in guarantee value on our total U.S. variable annuity block
compared with December 31, 2021. Guarantee value on our U.S.
variable annuity Guaranteed Minimum Withdrawal Benefits block
reduced by more than 90% compared with December 31,
2021.
|
7
|
See "Caution regarding
forward-looking statements" below.
|
8
|
Core EBITDA margin is a
non-GAAP ratio.
|
9
|
See "Caution regarding
forward-looking statements" below.
|
10
|
Expense efficiency
ratio is a non-GAAP ratio.
|
11
|
Core general expenses
is a non-GAAP financial measure.
|
12
|
Percentage growth /
declines in core general expenses stated on a constant exchange
rate basis is a non-GAAP ratio.
|
13
|
Percentage growth /
declines in general expenses is stated on an actual exchange rate
basis.
|
14
|
Based on the annual
global employee engagement survey conducted by Gallup. Ranking is
measured by the engagement grand mean as compared to Gallup's
finance and insurance company level database.
|
15
|
See "Caution regarding
forward-looking statements" below.
|
16
|
The cumulative one-time
after-tax gain of these two transactions was $806 million,
consisting of a net gain of $846 million in 2022 and a $40 million
loss recognized in 2021.
|
17
|
Case adoption, compared
with 2021.
|
FINANCIAL HIGHLIGHTS:
|
Quarterly
Results
|
Full Year
Results
|
($ millions, unless
otherwise stated)
|
4Q22
|
4Q21
|
2022
|
2021
|
Profitability:
|
|
|
|
|
Net income attributed
to shareholders
|
$
1,891
|
$ 2,084
|
$ 7,294
|
$ 7,105
|
Core
earnings
|
$
1,746
|
$ 1,708
|
$ 6,182
|
$ 6,536
|
Diluted earnings per
common share ($)
|
$
0.95
|
$ 1.03
|
$
3.68
|
$ 3.54
|
Diluted core earnings
per common share ("Core EPS") ($)(1)
|
$
0.88
|
$ 0.84
|
$
3.10
|
$ 3.25
|
Return on common
shareholders' equity ("ROE")
|
14.4 %
|
15.6 %
|
14.1 %
|
14.2 %
|
Core ROE
|
13.2 %
|
12.7 %
|
11.9 %
|
13.0 %
|
Expense efficiency
ratio
|
50.9 %
|
49.0 %
|
50.9 %
|
48.9 %
|
General
expenses
|
$
2,141
|
$ 2,000
|
$
7,782
|
$ 7,828
|
Business
Performance:
|
|
|
|
|
Asia
new business value
|
$
339
|
$
391
|
$ 1,349
|
$ 1,666
|
Canada
new business value
|
$
87
|
$
82
|
$
362
|
$
307
|
U.S. new business
value
|
$
99
|
$
82
|
$
352
|
$
270
|
Total new business
value
|
$
525
|
$
555
|
$ 2,063
|
$ 2,243
|
Asia APE
sales
|
$
829
|
$
890
|
$ 3,569
|
$ 4,050
|
Canada APE
sales
|
$
252
|
$
295
|
$ 1,261
|
$ 1,227
|
U.S. APE
sales
|
$
208
|
$
244
|
$
823
|
$
788
|
Total APE
sales
|
$
1,289
|
$ 1,429
|
$ 5,653
|
$ 6,065
|
Global WAM net flows ($
billions)
|
$
(8.3)
|
$
8.1
|
$
3.3
|
$ 27.9
|
Global WAM gross flows
($ billions)(2)
|
$
32.6
|
$ 36.0
|
$ 136.6
|
$ 144.7
|
Global WAM assets under
management and administration ($ billions)(3)
|
$
779.9
|
$ 855.9
|
$ 779.9
|
$ 855.9
|
Global WAM total
invested assets ($ billions)
|
$
3.7
|
$
4.5
|
$
3.7
|
$
4.5
|
Global WAM net
segregated funds net assets ($ billions)
|
$
224.2
|
$ 252.6
|
$ 224.2
|
$ 252.6
|
Financial
Strength:
|
|
|
|
|
MLI's LICAT
ratio
|
131 %
|
142 %
|
131 %
|
142 %
|
Financial leverage
ratio
|
27.7 %
|
25.8 %
|
27.7 %
|
25.8 %
|
Book value per common
share ($)
|
$
26.49
|
$ 26.78
|
$ 26.49
|
$ 26.78
|
Book value per common
share excluding AOCI ($)
|
$
26.50
|
$ 24.12
|
$ 26.50
|
$ 24.12
|
(1)
|
This item is a non-GAAP
ratio.
|
(2)
|
For more information on
gross flows, see "Non-GAAP and other financial measures" below and
in our 2022 MD&A for additional information.
|
(3)
|
This item is a non-GAAP
financial measure.
|
PROFITABILITY:
Reported net income attributed to shareholders of
$7.3 billion in 2022, up $0.2 billion from 2021, and $1.9 billion in 4Q22, down $0.2 billion from 4Q21
The $0.2 billion increase in net
income attributed to shareholders in 2022 was driven by gains
related to the two U.S. variable annuity reinsurance transactions
and the favourable impact of an increase in the Canadian corporate
tax rate, partially offset by lower gains from investment-related
experience and lower core earnings. Investment-related experience
gains in 2022 reflected the favourable impact of fixed income
reinvestment activities, strong credit experience and
higher-than-expected returns (including fair value changes) on
alternative long duration assets ("ALDA") primarily driven by
private equity, infrastructure and timberland, partially offset by
real estate. The net charge from the direct impact of markets in
2022 was primarily driven by the impact of unfavourable equity
market performance and losses from the sale of available-for-sale
("AFS") bonds, partially offset by gains due to flattening of the
yield curve in the U.S. and Canada.
The $0.2 billion decrease in net
income attributed to shareholders in 4Q22 was primarily driven by
losses from investment-related experience (compared with gains in
the prior year) and a smaller gain from the direct impact of
markets, partially offset by the favourable impact of an increase
in the Canadian corporate tax rate and higher core earnings.
Investment-related experience in 4Q22 reflected lower-than-expected
returns (including fair value changes) on ALDA related to real
estate, partially offset by the favourable impact of fixed income
reinvestment activities and strong credit experience. The gain from
the direct impact of markets in 4Q22 was primarily driven by gains
due to the flattening of the yield curve in the U.S. and
Canada and the impact of
favourable equity market performance, partially offset by losses
from corporate spread movements across several markets of differing
magnitudes and from the sale of AFS bonds.
Delivered core earnings of $6.2
billion in 2022, a decrease of 7% compared with 2021, and
$1.7 billion in 4Q22, a decrease of
2% compared with 4Q21
The decrease in core earnings in 2022 compared with 2021 was
driven by lower new business gains in Asia and the U.S., losses from the
unfavourable impact of markets on seed money investments in new and
segregated mutual funds (compared with gains in the prior year) and
lower net gains on the sale of AFS equities in Corporate and Other,
lower net fee income from lower average AUMA18 in
Global WAM, lower in-force earnings in U.S. Annuities due to the
variable annuity reinsurance transactions and higher charges in our
Property and Casualty Reinsurance business in 2022. These items
were partially offset by higher yields on fixed income investments
and lower expenses in Corporate and Other, in-force business growth
in Asia and Canada and experience gains in Canada compared with losses in 2021. Lower
expenses in Corporate and Other were primarily driven by lower
supplemental pension expense due to market impacts.
The decrease in core earnings in 4Q22 compared with 4Q21 on a
constant exchange rate basis was driven by lower net fee
income from lower average AUMA in Global WAM, lower new business
gains in Asia and the U.S. and
lower in-force earnings in U.S. Annuities due to the variable
annuity reinsurance transactions. These items were largely offset
by higher yields on fixed income investments, gains on seed money
investments and lower withholding taxes in Corporate and Other,
improved policyholder experience in Canada and the U.S. and in-force business
growth in Asia and Canada.
BUSINESS PERFORMANCE:
New business value ("NBV") of $2.1
billion in 2022, a decrease of 9% compared with 2021, and
$525 million in 4Q22, a decrease of
9% compared with 4Q21
NBV was $2.1 billion in 2022, a
decrease of 9% compared with 2021. In Asia, NBV was
$1.3 billion in 2022, a decrease of
20% compared with the prior year, due to lower NBV in Hong Kong, Singapore and mainland China, partially offset by higher NBV in
Japan and Other Emerging
Markets19. NBV in Hong
Kong decreased 27%, reflecting lower sales volumes,
partially offset by favourable product mix and the impact of higher
interest rates. NBV in Singapore
and mainland China decreased 19%
and 58%, respectively, reflecting changes in product mix. NBV in
Vietnam was in line with the prior
year, as the impact of favourable product mix was offset by lower
sales volumes. NBV in Japan and
Other Emerging Markets increased 28% and 5%, respectively,
reflecting favourable product mix, partially offset by lower sales
volumes. In Canada, NBV of $362
million was up 18% from 2021, driven by higher margins
across all businesses and higher group insurance volumes, partially
offset by lower volumes in annuities. In the U.S., NBV of
$352 million was up 25% driven by
higher interest rates, higher international sales volumes and
product actions, partially offset by lower brokerage sales
volumes.
NBV was $525 million in 4Q22, a
decrease of 9% compared with 4Q21. In Asia, NBV decreased 17% from
4Q21 reflecting lower sales in Hong
Kong and unfavourable changes in product mix in Asia Other20, partially offset by the
benefit of higher interest rates and higher individual protection
and other wealth sales in Japan.
In Canada, NBV increased 6%,
driven by higher margins in our insurance businesses, partially
offset by lower volumes in annuities. In the U.S., NBV increased
12% from 4Q21, driven by higher interest rates, higher
international sales volumes and product actions, partially offset
by lower brokerage sales volumes.
Annualized premium equivalent ("APE") sales of $5.7 billion in 2022, a decrease of 7% compared
with 2021, and $1.3 billion in 4Q22,
a decrease of 12% compared with 4Q21
APE sales were $5.7 billion in
2022, a decrease of 7% compared with 2021. In Asia, COVID-19
continued to impact sales in select markets throughout the year,
with the situation beginning to improve in most markets as
containment measures were progressively relaxed. Travel
restrictions between mainland China and, Hong
Kong and Macau impacted
cross-border commerce in 2022. Weaker customer sentiment negatively
impacted sales in the second half of the year. Asia APE sales
declined 12%, due to decreases experienced in Hong Kong, Japan, Vietnam and Other Emerging Markets, partially
offset by increases in mainland China and Singapore. In Hong
Kong, APE sales decreased 33%, primarily reflecting weaker
customer sentiment on financial planning decisions and continued
COVID-19 containment measures through most of the year. In
Japan, APE sales decreased 15%,
reflecting lower corporate-owned life insurance product sales,
partially offset by higher individual protection and other wealth
sales. Vietnam APE sales decreased 9%, reflecting a decline in the
agency channel, partially offset by growth in the bank channel.
Other Emerging Markets APE sales decreased 4%, reflecting a decline
in the agency and bank channels. Mainland China APE sales increased
4%, driven by growth in the bank channel, partially offset by a
decline in the agency channel. Singapore APE sales increased 1%,
reflecting growth in the bank channel offset by a decline in the
broker channel. In Canada, APE
sales increased 3%, primarily driven by higher sales in group
insurance, participating insurance and travel insurance, partially
offset by the impact of market volatility on the demand for
segregated fund products, and lower universal life and health and
dental sales. In the U.S., APE sales increased 1%, due to an
increase in international sales, which are reported as part of U.S.
segment results, partially offset by lower sales of domestic life
insurance products. APE sales of products with the John Hancock
Vitality PLUS feature were a record-setting US$332 million, an increase of 13% compared with
2021, reflecting the increasing attractiveness of the Vitality
feature as an option for health-focused life insurance
consumers.
APE sales were $1.3 billion in
4Q22, a decrease of 12% compared with 4Q21. In Asia, APE sales
decreased 9%, reflecting lower sales in Hong Kong, partially offset by higher
individual protection and other wealth sales in Japan and higher sales in Asia Other. In Hong
Kong, APE sales decreased 35% driven by the impact of weaker
customer sentiment on financial planning decisions. In Japan, APE sales increased 15% as a result of
higher individual protection and other wealth sales. Asia Other APE
sales increased 2%, reflecting higher bancassurance and agency
sales in mainland China, partially
offset by lower agency sales in Vietnam, Singapore and Other Emerging Markets. In
Canada, APE sales decreased 15%,
primarily driven by lower segregated fund and participating
insurance sales, partially offset by higher small business group
insurance sales. In the U.S., APE sales decreased 21% due
to lower sales of domestic life insurance products, partially
offset by an increase in international sales, which are reported as
part of U.S. segment results. Demand for domestic life insurance
products purchased primarily to protect household income declined.
Demand also decreased for domestic life insurance products
purchased primarily for estate planning due to volatility in equity
markets. APE sales of products with the John Hancock Vitality
PLUS feature decreased 20%, reflecting the decrease in sales of
domestic life insurance products.
Reported Global Wealth and Asset Management net inflows of
$3.3 billion in 2022, compared with
2021 net inflows of $27.9 billion,
and net outflows of $8.3 billion in
4Q22, compared with 4Q21 net inflows of $8.1
billion
Net inflows were $3.3 billion in
2022, compared with net inflows of $27.9
billion in 2021. Net outflows in Retirement were
$0.1 billion compared with net
inflows of $1.1 billion in the prior
year, driven by higher plan redemptions in the U.S. Net outflows in
Retail were $1.6 billion compared
with net inflows of $29.2 billion in
the prior year, reflecting higher redemptions and lower gross flows
due to decreased investor demand amid higher interest rates and
equity market declines in 2022. Net inflows in Institutional
Asset Management were $5.0 billion
compared with net outflows of $2.4
billion in the prior year, driven by the non-recurrence of a
$9.4 billion redemption in 2021 and
higher equity mandate gross flows mainly from a $1.9 billion sale in the second quarter of
2022.
Net outflows were $8.3 billion in
4Q22, compared with net inflows of $8.1
billion in 4Q21. Net outflows in Retirement were
$4.6 billion in 4Q22 compared with
net outflows of $1.0 billion in 4Q21,
driven by higher plan redemptions and lower new plan sales in the
U.S. Net outflows in Retail were $4.7
billion in 4Q22 compared with net inflows of $7.5 billion in 4Q21, reflecting higher
redemptions and lower gross flows driven by decreased investor
demand. Net inflows in Institutional Asset Management were
$0.9 billion in 4Q22 compared with
net inflows of $1.6 billion in 4Q21,
driven by lower net flows in real estate, timberland and
infrastructure products, partially offset by higher sales of fixed
income mandates.
__________
|
18
|
For more information on
average assets under management and administration ("average
AUMA"), see "Non-GAAP and other financial measures"
below.
|
19
|
Other Emerging Markets
includes Indonesia, the Philippines, Malaysia, Thailand, Cambodia,
and Myanmar.
|
20
|
Asia Other excludes
Hong Kong and Japan.
|
QUARTERLY EARNINGS RESULTS CONFERENCE CALL
Manulife Financial Corporation will host a Fourth Quarter 2022
Earnings Results Conference Call at 8:00
a.m. ET on February 16, 2023.
For local and international locations, please call 416-340-2217 or
toll free, North America
1-800-806-5484 (Passcode: 6705831#). Please call in 15 minutes
before the call starts. You will be required to provide your name
and organization to the operator. A replay of this call will be
available by 11:00 a.m. ET on
February 16, 2023 through
May 13, 2023 by calling 905-694-9451
or 1-800-408-3053 (Passcode: 6555267#).
The conference call will also be webcast through Manulife's
website at 8:00 a.m. ET on
February 16, 2023. You may access the
webcast at: manulife.com/en/investors/results-and-reports. An
archived version of the webcast will be available on the website
following the call at the same URL as above.
The Fourth Quarter 2022 Statistical Information Package is also
available on the Manulife website
at: www.manulife.com/en/investors/results-and-reports.
Any information contained in, or otherwise accessible
through, websites mentioned in this news release does not form a
part of this document unless it is expressly incorporated by
reference.
EARNINGS:
The following table presents net income attributed to
shareholders, consisting of core earnings and details of the items
excluded from core earnings:
|
Quarterly
Results
|
Full Year
Results
|
($ millions)
|
4Q22
|
3Q22
|
4Q21
|
2022
|
2021
|
Core
earnings
|
|
|
|
|
|
Asia
|
$
569
|
$
513
|
$
547
|
$
2,132
|
$
2,176
|
Canada
|
350
|
350
|
286
|
1,359
|
1,179
|
U.S.
|
374
|
384
|
467
|
1,700
|
1,936
|
Global Wealth and Asset
Management
|
267
|
345
|
387
|
1,241
|
1,406
|
Corporate and Other
(excluding core investment gains)
|
86
|
(370)
|
(79)
|
(650)
|
(561)
|
Core investment
gains(1)
|
100
|
100
|
100
|
400
|
400
|
Total core
earnings
|
$
1,746
|
$
1,322
|
$
1,708
|
$
6,182
|
$
6,536
|
Items excluded from
core earnings:(1)
Investment-related
experience outside of core earnings
|
(457)
|
125
|
126
|
817
|
1,642
|
Direct impact of equity
markets and interest rates and variable annuity guarantee
liabilities
|
184
|
(54)
|
398
|
(840)
|
(817)
|
Change in actuarial
methods and assumptions
|
-
|
36
|
-
|
36
|
(41)
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
(115)
|
Reinsurance
transaction, tax-related items and other
|
418
|
(82)
|
(148)
|
1,099
|
(100)
|
Net income
attributed to shareholders
|
$
1,891
|
$
1,347
|
$
2,084
|
$
7,294
|
$
7,105
|
(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; core earnings before income
taxes, depreciation and amortization ("core EBITDA"), core revenue
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"); core EBITDA margin; 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;
remittances, average assets under management and administration
("average AUMA") 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 2022 MD&A, which
is incorporated by reference.
Reconciliation of core earnings to net income attributed to
shareholders
($ millions, post-tax and based on actual foreign exchange rates
in effect in the applicable reporting period, unless otherwise
stated)
|
2022
|
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
Income (loss) before
income taxes
|
$ 2,063
|
$ 2,621
|
$ 4,877
|
$
1,546
|
$
(2,360)
|
$ 8,747
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(309)
|
(482)
|
(332)
|
(218)
|
106
|
(1,235)
|
Items excluded from
core earnings
|
(1)
|
(295)
|
(553)
|
(5)
|
524
|
(330)
|
Income tax (expense)
recovery
|
(310)
|
(777)
|
(885)
|
(223)
|
630
|
(1,565)
|
Net income
(post-tax)
|
1,753
|
1,844
|
3,992
|
1,323
|
(1,730)
|
7,182
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
(4)
|
-
|
-
|
2
|
1
|
(1)
|
Participating
policyholders
|
(467)
|
314
|
42
|
-
|
-
|
(111)
|
Net income (loss)
attributed to shareholders (post-tax)
|
2,224
|
1,530
|
3,950
|
1,321
|
(1,731)
|
7,294
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
Investment-related
experience outside of core
earnings
|
31
|
70
|
1,183
|
-
|
(467)
|
817
|
Direct impact of
equity markets and interest rates and variable annuity guarantee
liabilities
|
153
|
76
|
197
|
-
|
(1,266)
|
(840)
|
Change in actuarial
methods and assumptions
|
(45)
|
35
|
36
|
-
|
10
|
36
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
(47)
|
(10)
|
834
|
80
|
242
|
1,099
|
Core earnings
(post-tax)
|
$ 2,132
|
$ 1,359
|
$ 1,700
|
$
1,241
|
$
(250)
|
$ 6,182
|
Income tax on core
earnings (see above)
|
309
|
482
|
332
|
218
|
(106)
|
1,235
|
Core earnings
(pre-tax)
|
$ 2,441
|
$ 1,841
|
$ 2,032
|
$
1,459
|
$
(356)
|
$ 7,417
|
(1)
|
These items are
disclosed under OSFI's Source of Earnings Disclosure (Life
Insurance Companies) guideline.
|
Core earnings, CER basis
($ millions, post-tax and based on actual foreign exchange rates
in effect in the applicable reporting period, unless otherwise
stated)
|
2022
|
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
Core earnings
(post-tax)
|
$ 2,132
|
$ 1,359
|
$ 1,700
|
$
1,241
|
$
(250)
|
$ 6,182
|
CER
adjustment(1)
|
40
|
-
|
79
|
33
|
(2)
|
150
|
Core earnings, CER
basis (post-tax)
|
$ 2,172
|
$ 1,359
|
$ 1,779
|
$
1,274
|
$
(252)
|
$ 6,332
|
Income tax on core
earnings, CER basis(2)
|
313
|
482
|
349
|
220
|
(107)
|
1,257
|
Core earnings, CER
basis (pre-tax)
|
$ 2,485
|
$ 1,841
|
$ 2,128
|
$
1,494
|
$
(359)
|
$ 7,589
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q22.
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 4Q22.
|
Reconciliation of core earnings to net income attributed to
shareholders
($ millions, post-tax and based on actual foreign exchange rates
in effect in the applicable reporting period, unless otherwise
stated)
|
2021
|
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
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
|
(122)
|
77
|
32
|
1
|
159
|
147
|
Income tax (expense)
recovery
|
(444)
|
(336)
|
(386)
|
(233)
|
186
|
(1,213)
|
Net income
(post-tax)
|
2,744
|
1,455
|
2,098
|
1,408
|
(793)
|
6,912
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
254
|
-
|
-
|
2
|
(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
($ millions, post-tax and based on actual foreign exchange rates
in effect in the applicable reporting period, unless otherwise
stated)
|
2021
|
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Core earnings
(post-tax)
|
$ 2,176
|
$ 1,179
|
$ 1,936
|
$ 1,406
|
$ (161)
|
$ 6,536
|
|
CER
adjustment(1)
|
34
|
-
|
160
|
76
|
(2)
|
268
|
|
Core earnings, CER
basis (post-tax)
|
$ 2,210
|
$ 1,179
|
$ 2,096
|
$ 1,482
|
$ (163)
|
$ 6,804
|
|
Income tax on core
earnings, CER basis(2)
|
325
|
413
|
453
|
238
|
(26)
|
1,403
|
|
Core earnings, CER
basis (pre-tax)
|
$ 2,535
|
$ 1,592
|
$ 2,549
|
$
1,720
|
$ (189)
|
$ 8,207
|
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q22.
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 4Q22.
|
Reconciliation of core earnings to net income attributed to
shareholders
($ millions, post-tax and based on actual foreign exchange rates
in effect in the applicable reporting period, unless otherwise
stated)
|
4Q22
|
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
Income (loss) before
income taxes
|
$
690
|
$
698
|
$
524
|
$
403
|
$
(173)
|
$ 2,142
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(100)
|
(137)
|
(73)
|
(50)
|
58
|
(302)
|
Items excluded from
core earnings
|
(36)
|
(169)
|
(14)
|
(5)
|
360
|
136
|
Income tax (expense)
recovery
|
(136)
|
(306)
|
(87)
|
(55)
|
418
|
(166)
|
Net income
(post-tax)
|
554
|
392
|
437
|
348
|
245
|
1,976
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
6
|
-
|
-
|
1
|
-
|
7
|
Participating
policyholders
|
(21)
|
72
|
27
|
-
|
-
|
78
|
Net income (loss)
attributed to shareholders (post-tax)
|
569
|
320
|
410
|
347
|
245
|
1,891
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
Investment-related
experience outside of core earnings
|
(110)
|
(166)
|
(62)
|
-
|
(119)
|
(457)
|
Direct impact of
equity markets and interest rates and variable annuity guarantee
liabilities
|
110
|
146
|
63
|
-
|
(135)
|
184
|
Change in actuarial
methods and assumptions
|
-
|
-
|
-
|
-
|
-
|
-
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
-
|
(10)
|
35
|
80
|
313
|
418
|
Core earnings
(post-tax)
|
$
569
|
$
350
|
$
374
|
$
267
|
$
186
|
$ 1,746
|
Income tax on core
earnings (see above)
|
100
|
137
|
73
|
50
|
(58)
|
302
|
Core earnings
(pre-tax)
|
$
669
|
$
487
|
$
447
|
$
317
|
$
128
|
$ 2,048
|
(1)
|
These items are
disclosed under OSFI's Source of Earnings Disclosure (Life
Insurance Companies) guideline.
|
Core earnings, CER basis
($ millions, post-tax and based on actual foreign exchange rates
in effect in the applicable reporting period, unless otherwise
stated)
|
4Q22
|
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
Core earnings
(post-tax)
|
$
569
|
$
350
|
$
374
|
$
267
|
$
186
|
$ 1,746
|
CER
adjustment(1)
|
-
|
-
|
-
|
-
|
-
|
-
|
Core earnings, CER
basis (post-tax)
|
$
569
|
$
350
|
$
374
|
$
267
|
$
186
|
$ 1,746
|
Income tax on core
earnings, CER basis(2)
|
100
|
137
|
73
|
50
|
(58)
|
302
|
Core earnings, CER
basis (pre-tax)
|
$
669
|
$
487
|
$
447
|
$
317
|
$
128
|
$ 2,048
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q22.
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 4Q22.
|
Reconciliation of core earnings to net income attributed to
shareholders
($ millions, post-tax and based on actual foreign exchange rates
in effect in the applicable reporting period, unless otherwise
stated)
|
3Q22
|
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
Income (loss) before
income taxes
|
$
476
|
$
819
|
$
766
|
$
395
|
$ (819)
|
$ 1,637
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(61)
|
(116)
|
(62)
|
(50)
|
18
|
(271)
|
Items excluded from
core earnings
|
2
|
(75)
|
(52)
|
-
|
64
|
(61)
|
Income tax (expense)
recovery
|
(59)
|
(191)
|
(114)
|
(50)
|
82
|
(332)
|
Net income
(post-tax)
|
417
|
628
|
652
|
345
|
(737)
|
1,305
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
(19)
|
-
|
-
|
-
|
1
|
(18)
|
Participating
policyholders
|
(85)
|
50
|
11
|
-
|
-
|
(24)
|
Net income (loss)
attributed to shareholders (post-tax)
|
521
|
578
|
641
|
345
|
(738)
|
1,347
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
Investment-related
experience outside of core earnings
|
(3)
|
97
|
127
|
-
|
(96)
|
125
|
Direct impact of
equity markets and interest rates and variable annuity guarantee
liabilities
|
95
|
96
|
137
|
-
|
(382)
|
(54)
|
Change in actuarial
methods and assumptions
|
(45)
|
35
|
36
|
-
|
10
|
36
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
(39)
|
-
|
(43)
|
-
|
-
|
(82)
|
Core earnings
(post-tax)
|
$
513
|
$
350
|
$
384
|
$
345
|
$ (270)
|
$ 1,322
|
Income tax on core
earnings (see above)
|
61
|
116
|
62
|
50
|
(18)
|
271
|
Core earnings
(pre-tax)
|
$
574
|
$
466
|
$
446
|
$
395
|
$ (288)
|
$ 1,593
|
(1)
|
These items are
disclosed under OSFI's Source of Earnings Disclosure (Life
Insurance Companies) guideline.
|
Core earnings, CER basis
($ millions, post-tax and based on actual foreign exchange rates
in effect in the applicable reporting period, unless otherwise
stated)
|
3Q22
|
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Core earnings
(post-tax)
|
$
513
|
$
350
|
$
384
|
$
345
|
$ (270)
|
$ 1,322
|
|
CER
adjustment(1)
|
15
|
-
|
15
|
8
|
(8)
|
30
|
|
Core earnings, CER
basis (post-tax)
|
$
528
|
$
350
|
$
399
|
$
353
|
$ (278)
|
$ 1,352
|
|
Income tax on core
earnings, CER basis(2)
|
62
|
116
|
65
|
50
|
(18)
|
275
|
|
Core earnings, CER
basis (pre-tax)
|
$
590
|
$
466
|
$
464
|
$
403
|
$ (296)
|
$ 1,627
|
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q22.
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 4Q22.
|
Reconciliation of core earnings to net income attributed to
shareholders
($ millions, post-tax and based on actual foreign exchange rates
in effect in the applicable reporting period, unless otherwise
stated)
|
4Q21
|
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
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
|
(15)
|
(77)
|
(4)
|
2
|
10
|
(84)
|
Income tax (expense)
recovery
|
(83)
|
(178)
|
(121)
|
(50)
|
2
|
(430)
|
Net income
(post-tax)
|
601
|
628
|
493
|
388
|
(59)
|
2,051
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
32
|
-
|
-
|
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
($ millions, post-tax and based on actual foreign exchange rates
in effect in the applicable reporting period, unless otherwise
stated)
|
4Q21
|
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
Core earnings
(post-tax)
|
$
547
|
$
286
|
$
467
|
$
387
|
$
21
|
$ 1,708
|
CER
adjustment(1)
|
13
|
-
|
35
|
20
|
3
|
71
|
Core earnings, CER
basis (post-tax)
|
$
560
|
$
286
|
$
502
|
$
407
|
$
24
|
$ 1,779
|
Income tax on core
earnings, CER basis(2)
|
68
|
101
|
127
|
52
|
8
|
356
|
Core earnings, CER
basis (pre-tax)
|
$
628
|
$
387
|
$
629
|
$
459
|
$
32
|
$ 2,135
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q22.
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 4Q22.
|
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
|
Full Year
Results
|
|
4Q22
|
3Q22
|
2Q22
|
1Q22
|
4Q21
|
2022
|
2021
|
Core
earnings
|
$ 1,746
|
$
1,322
|
$ 1,562
|
$ 1,552
|
$ 1,708
|
$ 6,182
|
$ 6,536
|
Less: Preferred share
dividends
|
(97)
|
(51)
|
(60)
|
(52)
|
(71)
|
(260)
|
(215)
|
Core earnings
available to common
shareholders
|
1,649
|
1,271
|
1,502
|
1,500
|
1,637
|
5,922
|
6,321
|
CER
adjustment(1)
|
-
|
30
|
60
|
60
|
71
|
150
|
268
|
Core earnings
available to common
shareholders, CER
basis
|
$ 1,649
|
$
1,301
|
$ 1,562
|
$ 1,560
|
$ 1,708
|
$ 6,072
|
$ 6,589
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in
4Q22.
|
Core ROE
($ millions, unless otherwise stated)
|
Quarterly
Results
|
Full Year
Results
|
|
4Q22
|
3Q22
|
2Q22
|
1Q22
|
4Q21
|
2022
|
2021
|
Core earnings available
to common shareholders
|
$ 1,649
|
$ 1,271
|
$ 1,502
|
$ 1,500
|
$ 1,637
|
$ 5,922
|
$ 6,321
|
Annualized core
earnings available to
common
shareholders
|
$ 6,538
|
$ 5,045
|
$ 6,022
|
$ 6,085
|
$ 6,483
|
$ 5,922
|
$ 6,321
|
Average common
shareholders' equity
(see
below)
|
$
49,410
|
$
49,129
|
$
49,814
|
$
51,407
|
$
51,049
|
$
49,940
|
$
48,463
|
Core ROE
(annualized) (%)
|
13.2 %
|
10.3 %
|
12.1 %
|
11.8 %
|
12.7 %
|
11.9 %
|
13.0 %
|
Average common
shareholders' equity
|
|
|
|
|
|
|
|
Total shareholders' and
other equity
|
$
56,061
|
$
56,078
|
$
55,500
|
$
56,457
|
$
58,408
|
$
56,061
|
$
58,408
|
Less: Preferred shares
and other equity
|
(6,660)
|
(6,660)
|
(6,660)
|
(5,670)
|
(6,381)
|
(6,660)
|
(6,381)
|
Common shareholders'
equity
|
$
49,401
|
$
49,418
|
$
48,840
|
$
50,787
|
$
52,027
|
$
49,401
|
$
52,027
|
Average common
shareholders' equity
|
$
49,410
|
$
49,129
|
$
49,814
|
$
51,407
|
$
51,049
|
$
49,940
|
$
48,463
|
Core EPS
($ millions, and based on actual foreign exchange rates in
effect in the applicable reporting period, unless otherwise
stated)
|
Quarterly
Results
|
Full Year
Results
|
|
4Q22
|
3Q22
|
2Q22
|
1Q22
|
4Q21
|
2022
|
2021
|
Core
EPS
|
|
|
|
|
|
|
|
Core earnings available
to common
shareholders
|
$ 1,649
|
$ 1,271
|
$ 1,502
|
$
1,500
|
$ 1,637
|
$
5,922
|
$
6,321
|
Diluted weighted
average common shares
outstanding
(millions)
|
1,881
|
1,904
|
1,924
|
1,942
|
1,946
|
1,913
|
1,946
|
Core earnings per
share
|
$
0.88
|
$ 0.67
|
$
0.78
|
$
0.77
|
$ 0.84
|
$
3.10
|
$
3.25
|
Core EPS, CER
basis
|
|
|
|
|
|
|
|
Core earnings available
to common
shareholders, CER
basis
|
$ 1,649
|
$ 1,301
|
$ 1,562
|
$
1,560
|
$ 1,708
|
$
6,072
|
$
6,589
|
Diluted weighted
average common shares
outstanding
(millions)
|
1,881
|
1,904
|
1,924
|
1,942
|
1,946
|
1,913
|
1,946
|
Core earnings per
share, CER basis
|
$
0.88
|
$ 0.68
|
$
0.81
|
$
0.80
|
$ 0.88
|
$
3.17
|
$
3.39
|
Core earnings related to strategic priorities
Highest potential businesses
($ millions, post-tax and based on actual foreign exchange rates
in effect in the applicable reporting period)
For the years ended
December 31,
|
2022
|
2021
|
Core earnings highest
potential businesses(1)
|
$
3,875
|
$
4,111
|
Core earnings - All
other businesses excl. core investment gains
|
1,907
|
2,025
|
Core investment
gains
|
400
|
400
|
Core
earnings
|
6,182
|
6,536
|
Items excluded from
core earnings
|
1,112
|
569
|
Net income (loss)
attributed to shareholders
|
$
7,294
|
$
7,105
|
Highest Potential
Businesses core earnings contribution
|
63 %
|
63 %
|
(1)
|
Includes core earnings
from Asia and Global WAM segments, Canada group benefits, and
behavioural insurance products.
|
Global WAM AUMA Reconciliation
($ millions, and based on actual foreign exchange rates in
effect in the applicable reporting period, unless otherwise
stated)
As at
|
Dec
31,
2022
|
Sept 30,
2022
|
June 30,
2022
|
March 31,
2022
|
Dec 31,
2021
|
Total invested
assets
|
$
414,001
|
$
411,292
|
$
402,329
|
$
409,401
|
$
427,098
|
Less: Non Global WAM
total invested assets
|
410,284
|
407,551
|
398,362
|
405,933
|
422,640
|
Total Invested
Assets – Global WAM
|
3,717
|
3,741
|
3,967
|
3,468
|
4,458
|
Total segregated funds
net assets
|
$
348,562
|
$
335,245
|
$
334,903
|
$
371,928
|
$
399,788
|
Less: Non Global WAM
total segregated funds net assets
|
124,370
|
120,775
|
121,624
|
135,314
|
147,221
|
Total Invested
Assets – Global WAM
|
224,192
|
214,470
|
213,279
|
236,614
|
252,567
|
Global WAM total
invested assets and net segregated
funds
assets
|
$
227,909
|
$
218,211
|
$
217,246
|
$
240,082
|
$
257,025
|
Global WAM
AUMA
|
|
|
|
|
|
Total Invested
Assets
|
$
3,717
|
$
3,741
|
$
3,967
|
$
3,468
|
$
4,458
|
Segregated funds net
assets
|
|
|
|
|
|
Segregated funds net
assets - Institutional
|
3,719
|
4,118
|
4,098
|
4,338
|
4,470
|
Segregated funds net
assets - Other
|
220,473
|
210,352
|
209,181
|
232,276
|
248,097
|
Total
|
224,192
|
214,470
|
213,279
|
236,614
|
252,567
|
Mutual funds
|
258,183
|
249,520
|
250,445
|
274,665
|
290,863
|
Institutional asset
management(1)
|
109,979
|
100,361
|
100,205
|
101,105
|
106,407
|
Other funds
|
13,617
|
12,910
|
12,110
|
13,269
|
14,001
|
Total Global WAM
AUM
|
609,688
|
581,002
|
580,006
|
629,121
|
668,296
|
Assets under
administration
|
170,224
|
167,759
|
164,697
|
178,843
|
187,631
|
Total Global WAM
AUMA
|
$
779,912
|
$
748,761
|
$
744,703
|
$
807,964
|
$
855,927
|
|
|
|
|
|
|
Total Global WAM
AUMA
|
$
779,912
|
$
748,761
|
$
744,703
|
$
807,964
|
$
855,927
|
CER
adjustment(2)
|
-
|
(5,465)
|
27,142
|
46,021
|
38,313
|
Total Global WAM
AUMA, CER basis
|
$
779,912
|
$
743,296
|
$
771,845
|
$
853,985
|
$
894,240
|
(1)
|
Institutional asset
management excludes Institutional segregated funds net
assets.
|
(2)
|
The impact of updating
foreign exchange rates to that which was used in 4Q22.
|
Reconciliation of Global WAM core earnings to core
EBITDA
($ millions, pre-tax and based on actual foreign exchange rates
in effect in the applicable reporting period, unless otherwise
stated)
|
Quarterly
Results
|
Full Year
Results
|
|
4Q22
|
3Q22
|
2Q22
|
1Q22
|
4Q21
|
2022
|
2021
|
Global WAM core
earnings (post-tax)
|
$
267
|
$
345
|
$
305
|
$
324
|
$
387
|
$ 1,241
|
$ 1,406
|
Addback taxes,
acquisition costs, other
expenses and deferred
sales
commissions
|
|
|
|
|
|
|
|
Core income tax
(expense) recovery
(see above)
|
50
|
50
|
57
|
61
|
52
|
218
|
234
|
Acquisition costs,
other expenses
|
89
|
86
|
80
|
81
|
79
|
336
|
323
|
Deferred sales
commissions
|
23
|
23
|
25
|
24
|
25
|
95
|
99
|
Core
EBITDA
|
$
429
|
$
504
|
$
467
|
$
490
|
$
543
|
$ 1,890
|
$ 2,062
|
Core EBITDA margin
($ millions, unless otherwise stated)
|
Quarterly
Results
|
Full Year
Results
|
|
4Q22
|
3Q22
|
2Q22
|
1Q22
|
4Q21
|
2022
|
2021
|
Core EBITDA
margin
|
|
|
|
|
|
|
|
Core EBITDA
|
$
429
|
$
504
|
$
467
|
$
490
|
$
543
|
$ 1,890
|
$ 2,062
|
Global WAM core
revenue
|
$ 1,572
|
$ 1,542
|
$ 1,521
|
$ 1,586
|
$ 1,727
|
$ 6,221
|
$ 6,541
|
Core EBITDA
margin
|
27.3 %
|
32.7 %
|
30.7 %
|
30.9 %
|
31.4 %
|
30.4 %
|
31.5 %
|
|
|
|
|
|
|
|
|
Global WAM
Revenue
|
$ 1,662
|
$ 1,542
|
$ 1,521
|
$ 1,586
|
$ 1,727
|
$ 6,311
|
$ 6,541
|
Less: Revenue reported
in items excluded
from core
earnings
|
|
|
|
|
|
|
|
Revenue related to
integration and
acquisitions
|
90
|
-
|
-
|
-
|
-
|
90
|
-
|
Global WAM core
revenue
|
$ 1,572
|
$ 1,542
|
$ 1,521
|
$ 1,586
|
$ 1,727
|
$ 6,221
|
$ 6,541
|
Expense Efficiency Ratio
($ millions, and based on actual foreign exchange rates in
effect in the applicable reporting period, unless otherwise
stated)
|
Quarterly
Results
|
Full Year
Results
|
|
4Q22
|
3Q22
|
2Q22
|
1Q22
|
4Q21
|
2022
|
2021
|
Expense Efficiency
Ratio
|
|
|
|
|
|
|
|
Core general
expenses
|
$ 2,122
|
$ 1,859
|
$ 1,843
|
$ 1,877
|
$ 1,973
|
$ 7,701
|
$ 7,553
|
Core earnings
(pre-tax)
|
2,048
|
1,593
|
1,900
|
1,876
|
2,054
|
7,417
|
7,896
|
Total - Core earnings
(pre-tax) and Core
general
expenses
|
$ 4,170
|
$ 3,452
|
$ 3,743
|
$ 3,753
|
$ 4,027
|
$
15,118
|
$
15,449
|
Expense Efficiency
Ratio
|
50.9 %
|
53.9 %
|
49.2 %
|
50.0 %
|
49.0 %
|
50.9 %
|
48.9 %
|
Core general
expenses
|
|
|
|
|
|
|
|
General expenses -
Financial Statements
|
$ 2,141
|
$ 1,900
|
$ 1,843
|
$ 1,898
|
$ 2,000
|
$ 7,782
|
$ 7,828
|
Less: General expenses
included in items
excluded from core
earnings
|
|
|
|
|
|
|
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
150
|
Integration and
acquisition
|
18
|
-
|
-
|
8
|
-
|
26
|
-
|
Legal provisions and
Other expenses
|
1
|
41
|
-
|
13
|
27
|
55
|
125
|
Total
|
$
19
|
$
41
|
$
-
|
$
21
|
$
27
|
$
81
|
$
275
|
Core general
expenses
|
$ 2,122
|
$ 1,859
|
$ 1,843
|
$ 1,877
|
$ 1,973
|
$ 7,701
|
$ 7,553
|
Core general
expenses
|
$ 2,122
|
$ 1,859
|
$ 1,843
|
$ 1,877
|
$ 1,973
|
$ 7,701
|
$ 7,553
|
CER
adjustment(1)
|
-
|
40
|
49
|
41
|
49
|
130
|
186
|
Core general
expenses, CER basis
|
$ 2,122
|
$ 1,899
|
$ 1,892
|
$ 1,918
|
$ 2,022
|
$ 7,831
|
$ 7,739
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q22.
|
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 to possible share
buybacks under our NCIB, and also relate to our ability to achieve
our medium-term financial targets and our 2025 strategic targets
and also related 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 obtain premium
rate increases on in-force policies; 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 in our 2022 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, 2022 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