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 First
Quarter 2023 Report to Shareholders, including our unaudited
interim Consolidated Financial Statements for the three months
ended March 31, 2023, 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 Company's Management's Discussion
& Analysis ("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.
|
Manulife adopted IFRS
17 "Insurance Contracts" and IFRS 9 "Financial Instruments"
effective for years beginning on January 1, 2023, to be applied
retrospectively. Our quarterly 2022 results have been restated in
accordance with IFRS 17 and IFRS 9.
|
The comparative
restated 2022 results in this news release may not be fully
representative of our market risk profile, as the transition of our
general fund portfolio for asset-liability matching purposes under
IFRS 17 and IFRS 9 was not completed until early 2023.
Consequently, year-over-year variations between our 2023 results
compared to the restated 2022 results should be viewed in this
context.
|
In addition, our
restated 2022 results are also not directly comparable to 2023
results because IFRS 9 hedge accounting and expected credit loss
("ECL") principles are applied prospectively effective January 1,
2023. Accordingly, we have also presented comparative quarterly
2022 results as if IFRS had allowed such principles to be
implemented for 2022. Such results are denoted as being
"transitional" throughout this news release and include the
transitional net income attributed to shareholders for 2022. For a
complete list of transitional financial measures, please see
section A1 "Implementation of IFRS 17" of the First Quarter 2023
MD&A.
|
TORONTO, May 10, 2023
/PRNewswire/ - Today, Manulife announced its first quarter of 2023
("1Q23") results. This marks the first quarter of reporting under
IFRS 17 and IFRS 9 and the transition impacts on our results are
consistent with the guidance that we provided previously. Key
highlights of 1Q23 include:
- Net income attributed to shareholders of $1.4 billion in 1Q23, up $0.1 billion compared with transitional net
income attributed to shareholders1 for the first quarter
of 2022 ("1Q22"), and up $2.6 billion
compared with 1Q22 net income attributed to shareholders
- Core earnings1 of $1.5
billion in 1Q23, up 6% on a constant exchange rate
basis2 from 1Q22
- Core EPS3 of $0.79 in
1Q23, up 11%2 compared with 1Q22, and diluted earnings
per common share ("EPS") of $0.73 in
1Q23, up 4% compared with transitional EPS3 of
$0.66 in 1Q22, and up $1.39 compared with EPS of -$0.66 in 1Q22
- Core ROE3 of 14.8% and ROE of 13.6% in 1Q23
- APE sales4 of $1.6
billion in 1Q23, down 3%4 from 1Q22
- NBV4 of $509 million
in 1Q23, down 5% from 1Q22
- New business contractual service margin ("CSM")5 of
$442 million in 1Q23, down
13%2 from 1Q22
- CSM balance net of NCI of $17.5
billion and post-tax CSM net of NCI1 of
$14.9 billion as at March 31, 2023
- Global Wealth and Asset Management ("Global WAM") net
inflows6 of $4.4 billion
in 1Q23, compared with net inflows of $6.8
billion in 1Q22
- LICAT ratio7 of 138%
- Purchased for cancellation 0.8% of common shares outstanding,
or approximately 15.6 million common shares, for $0.4 billion in 1Q238
- Adjusted book value per common share9 of
$30.04 as of March 31, 2023, an increase of $2.51 from March 31,
2022, and book value per common share of $22.01 as at March 31,
2023, an increase of $1.90
from March 31, 2022
- Embedded value6 of $63.9
billion or $34.29 per common
share, as of December 31, 2022,
compared with $64.8 billion or
$33.35 per common share as of
December 31, 2021
"We reported strong operating results in the first quarter of
2023 despite continued market volatility, delivering core earnings
of $1.5 billion, net income
attributed to shareholders of $1.4
billion and core return on equity of 14.8%," said
Roy Gori, Manulife President &
Chief Executive Officer. "We delivered core EPS growth of 11%,
reflecting strong core earnings and the impact of our share buyback
actions over the past year. The strength and global diversity of
our franchise was again demonstrated this quarter with
year-over-year core earnings growth in our North America insurance businesses. In Asia,
we are encouraged by the sales momentum building progressively
through the first quarter as the region continues to rebound from
the global pandemic, which contributed to double-digit APE sales
growth in Hong Kong compared with
1Q22. Global WAM generated net inflows of $4.4 billion with positive contributions from all
business lines and geographies."
"As we report our first quarter of financial results under IFRS
17 and IFRS 9, I am pleased to confirm that the transition impacts
are consistent with the guidance we provided previously," said
Phil Witherington, Chief Financial
Officer. "Adjusted book value per common share, which reflects the
intrinsic value of our insurance businesses, demonstrated stable
growth throughout 2022 and increased 9% in 1Q23 compared with the
first quarter of 2022. Our capital position remains strong with a
LICAT ratio of 138%. We continue to execute on our share buyback
program and repurchased 0.8% of our outstanding common shares for
$0.4 billion in 1Q23. An important
metric under IFRS 17 is the contractual service margin, or CSM. For
the first quarter we reported $14.9
billion of post-tax CSM, reflecting $0.4 billion of CSM generated from new business
in the quarter. While the pace of growth was impacted by lower
sales volumes in an operating environment that continued to be
challenging, we continue to view our target of growing CSM by eight
to ten percent per year to be appropriate.10 I am
optimistic about the momentum we are seeing in our Asia business,
and am confident that we are well positioned for the future as
insurance markets across Asia continue to grow."
"Our financial strength, robust risk management and diversified
business portfolio continue to drive the performance for our global
franchise," added Mr. Gori.
________________________________________
|
1
|
Transitional net income
attributed to shareholders, core earnings and post-tax CSM net of
NCI ("post-tax CSM") are non-GAAP financial measures. For more
information on non-GAAP and other financial measures, see "Non-GAAP
and other financial measures" below and in our 1Q23
MD&A.
|
2
|
Percentage growth /
declines in core earnings, core EPS and new business CSM net of NCI
stated on a constant exchange rate basis are non-GAAP
ratios.
|
3
|
Diluted core earnings
per common share ("Core EPS"), transitional EPS and core return on
common shareholders' equity ("Core ROE") are non-GAAP
ratios.
|
4
|
For more information on
new business value ("NBV") and annualized premium equivalent
("APE") sales, 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
|
New business
contractual service margin is net of non-controlling interests
("NCI").
|
6
|
For more information on
net flows and embedded value, see "Non-GAAP and other financial
measures" below.
|
7
|
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.
|
8
|
8.7 million shares were
repurchased under the current Normal Course Issuer Bid ("NCIB")
commenced on February 23, 2023, and 6.9 million shares were
repurchased under the previous NCIB that expired on February 2,
2023.
|
9
|
Adjusted book value per
common share is a non-GAAP ratio.
|
10
|
See "Caution regarding
forward-looking statements" below.
|
BUSINESS HIGHLIGHTS:
In Asia, we continued to leverage our health and wellness
platform, ManulifeMOVE, to drive incremental sales, with over 50%
of our in-force eligible customers having activated the
ManulifeMOVE app, of which 38% have made a subsequent insurance
purchase. In Canada, we partnered
with Cleveland Clinic Canada using their global healthcare
expertise to enhance product offerings and services to our five
million group benefits customers by providing industry research,
thought leadership, and education materials. In the U.S., we
continued to innovate our customer wellness offerings by expanding
access to GRAIL's Galleri® multi-cancer early detection test to all
eligible life insurance customers who have registered with the John
Hancock Vitality PLUS program. This expanded access comes after a
successful initial pilot when we became the first life insurance
carrier to make the test available in September 2022. In Global WAM, our Hong Kong retirement business won a total of
19 awards in "The 2023 MPF Awards" organized by MPF Ratings,
including the "MPF Gold Rating", "Best Employer Experience",
"Environmentally Responsible", "People's Choice" and 15 Consistent
Performer awards. Among these, we have been voted the "People's
Choice" for five consecutive years.
In addition, we continued to make progress on our digital
journey in 1Q23. In Asia, we further accelerated user adoption of
our customer website in Vietnam by
implementing additional servicing features and user interface
improvements to enhance the customer experience, with the
proportion of active users increasing 29 percentage points from
1Q22 to 37% at the end of 1Q23, materially contributing to an
increase of 10 percentage points in servicing
straight-through-processing for the segment. In Canada, we enhanced our Manulife
Vitality program with continued expansion of compatible
devices and apps, enabling members to now earn points for
activities recorded on additional wearable devices and mobile
applications. In the U.S., we optimized the customer registration
experience across our life and long-term-care insurance customer
websites at the end of 2022 resulting in a 35% increase in online
registrations in 1Q23 compared with 1Q22, contributing to a 13%
improvement in unique website traffic. In Global WAM, we announced
a strategic agreement with Fidelity Clearing Canada which will
provide access to a leading advisory technology platform for our
Canadian retail wealth channel. The agreement will bring a robust
digital experience and powerful technology directly to advisors and
clients as we continue to enhance and broaden our wealth planning
and advice business.
FINANCIAL HIGHLIGHTS:
|
Quarterly
Results
|
($ millions, unless
otherwise stated)
|
1Q23
|
1Q22
Transitional
|
Profitability:
|
|
|
|
|
Net income (loss)
attributed to shareholders(1)
|
$
|
1,406
|
$
|
1,325
|
Return on common
shareholders' equity ("ROE")(1)
|
|
13.6 %
|
|
13.3 %
|
Diluted earnings (loss)
per common share ($)(1)
|
$
|
0.73
|
$
|
0.66
|
|
Quarterly
Results
|
($ millions, unless
otherwise stated)
|
1Q23
|
1Q22
|
Profitability:
|
|
|
|
|
Net income (loss)
attributed to shareholders
|
$
|
1,406
|
$
|
(1,220)
|
Core
earnings
|
$
|
1,531
|
$
|
1,393
|
Diluted earnings per
common share ("EPS") ($)
|
$
|
0.73
|
$
|
(0.66)
|
Diluted core earnings
per common share ("Core EPS") ($)(3)
|
$
|
0.79
|
$
|
0.69
|
Return on common
shareholders' equity ("ROE")
|
|
13.6 %
|
|
(13.3) %
|
Core ROE
|
|
14.8 %
|
|
14.0 %
|
Expense efficiency
ratio(3)
|
|
47.1 %
|
|
46.4 %
|
Expenditure efficiency
ratio(3)
|
|
54.0 %
|
|
53.4 %
|
General
expenses
|
$
|
1,086
|
$
|
931
|
Core
expenses(2)
|
$
|
1,605
|
$
|
1,416
|
Core
expenditures(2)
|
$
|
2,112
|
$
|
1,872
|
Business
performance:
|
|
|
|
|
Asia APE
sales
|
$
|
1,173
|
$
|
1,087
|
Canada APE
sales
|
$
|
293
|
$
|
363
|
U.S. APE
sales
|
$
|
134
|
$
|
160
|
Total APE
sales
|
$
|
1,600
|
$
|
1,610
|
Asia
new business value
|
$
|
372
|
$
|
369
|
Canada
new business value
|
$
|
92
|
$
|
104
|
U.S. new business
value
|
$
|
45
|
$
|
41
|
Total new business
value
|
$
|
509
|
$
|
514
|
Asia
new business CSM
|
$
|
301
|
$
|
317
|
Canada
new business CSM
|
$
|
46
|
$
|
61
|
U.S. new business
CSM
|
$
|
95
|
$
|
112
|
Total new business
CSM
|
$
|
442
|
$
|
490
|
Asia
CSM net of NCI
|
$
|
9,678
|
$
|
9,045
|
Canada
CSM
|
$
|
3,659
|
$
|
3,903
|
U.S. CSM
|
$
|
4,080
|
$
|
3,892
|
Corporate and Other
CSM
|
$
|
50
|
$
|
27
|
Total CSM net of
NCI
|
$
|
17,467
|
$
|
16,867
|
Post-tax CSM net of
NCI(2)
|
$
|
14,850
|
$
|
14,320
|
Global WAM net flows ($
billions)
|
$
|
4.4
|
$
|
6.8
|
Global WAM gross flows
($ billions)(4)
|
$
|
38.8
|
$
|
38.4
|
Global WAM assets under
management and administration ($ billions)(2)
|
$
|
814.5
|
$
|
810.2
|
Global WAM total
invested assets ($ billions)
|
$
|
5.6
|
$
|
5.8
|
Global WAM net
segregated funds net assets ($
billions)
|
$
|
235.6
|
$
|
236.6
|
Financial
strength:
|
|
|
|
|
MLI's LICAT
ratio
|
|
138 %
|
|
140 %
|
Financial leverage
ratio(3)
|
|
26.0 %
|
|
24.9 %
|
Book value per common
share ($)
|
$
|
22.01
|
$
|
20.11
|
Adjusted book value per
common share ($)(3)
|
$
|
30.04
|
$
|
27.53
|
(1)
|
2022 results for
transitional net income attributed to shareholders, transitional
EPS and transitional ROE, a non-GAAP ratio, are adjusted to include
IFRS 9 hedge accounting and expected credit loss principles ("IFRS
9 transitional impacts"). See 1Q23 MD&A for more information.
For 2023, there are no IFRS 9 transitional adjustments as ECL and
hedge accounting is effective January 1, 2023 and therefore the
impact is included in net income attributed to
shareholders.
|
(2)
|
This item is a non-GAAP
financial measure. See "Non-GAAP and other financial measures"
below and in our 1Q23 MD&A for additional
information.
|
(3)
|
This item is a non-GAAP
ratio.
|
(4)
|
For more information on
gross flows, see "Non-GAAP and other financial measures" below and
in our 1Q23 MD&A.
|
PROFITABILITY:
Reported net income attributed to shareholders of
$1.4 billion in 1Q23, in line with
1Q22 transitional net income attributed to shareholders, and
$2.6 billion higher than 1Q22 net
loss attributed to shareholders
Net income attributed to shareholders in 1Q23 was in line with
1Q22 transitional net income attributed to shareholders, reflecting
higher core earnings largely offset by charges from market
experience (compared with a small gain in the prior year on a
transitional basis). The net charge from market experience in 1Q23
was primarily driven by lower-than-expected returns (including fair
value changes) on alternative long duration assets ("ALDA") related
to real estate and private equity, and a net realized loss from the
sale of fixed income assets which are classified as fair value
through other comprehensive income ("FVOCI"), partially offset by
higher-than-expected returns on public equity, favourable foreign
exchange impacts and a modest net gain from derivatives and hedge
ineffectiveness. Net income attributed to shareholders in 1Q23
increased by $2.6 billion compared
with 1Q22, driven by factors mentioned above and $2.5 billion of transitional impacts due to the
application of IFRS 9 hedge accounting and ECL principles
(transitional impacts are geography-related and do not impact total
shareholders' equity as the corresponding offset is in other
comprehensive income).
Delivered core earnings of $1.5
billion in 1Q23, an increase of 6% compared with
1Q22
The increase in core earnings compared with 1Q22 was driven
by the non-recurrence of excess mortality claims related to
COVID-19 in 1Q22 in the U.S. life insurance business, an increase
in expected investment earnings related to business growth and
higher reinvestment yields, higher returns on surplus assets net of
higher cost of debt financing and lower new insurance business
losses related to onerous contracts driven by pricing actions.
These were partially offset by an increase in the ECL provision
primarily related to commercial mortgages, lower CSM recognized
into earnings for service provided reflecting slower amortization
of CSM for certain VFA1 contracts and the impact of the
U.S. variable annuity reinsurance transactions in 2022, and lower
net fee income from lower average AUMA and higher general expenses
in Global WAM.
BUSINESS PERFORMANCE:
Annualized premium equivalent ("APE") sales of $1.6 billion in 1Q23, a decrease of 3% compared
with 1Q22
In Asia, APE sales increased 5%, driven by growth in
Hong Kong. APE sales in
Japan and Asia Other2 were in line with
1Q22. In Hong Kong, APE sales
increased 26% reflecting strong growth in our broker and agency
channels, primarily driven by a return of demand from mainland
Chinese visitors ("MCV") customers following the reopening of the
border between Hong Kong and
mainland China. In Japan, APE sales were in line with 1Q22, as
higher other wealth sales were offset by lower sales in individual
protection and corporate-owned life insurance products. Asia Other
APE sales were in line with 1Q22, as lower agency sales in
Vietnam and bancassurance sales in
Singapore were offset by higher
sales in mainland China and in our
international high net worth business3. In Canada, APE sales decreased 19%, primarily due
to the impact of market volatility on the demand for segregated
fund products and variability in the large-case group insurance
market, partially offset by higher participating life insurance
sales. In the U.S., APE sales decreased 22% due to the
adverse impact of higher short-term interest rates and equity
market volatility on consumer sentiment. APE sales of products
with the John Hancock Vitality PLUS feature in 1Q23 increased to
74% of overall U.S. sales compared with 70% in 1Q22.
New business value ("NBV") of $509
million in 1Q23, a decrease of 5% compared with 1Q22
In Asia, NBV decreased 4% from 1Q22 driven by less favourable
product mix partially offset by higher sales volumes. In
Canada, NBV decreased 12% driven
by lower volumes in Annuities and Group Insurance, partially offset
by higher margins in Individual Insurance and Annuities. In the
U.S., NBV increased 6% due to pricing actions and favourable mix,
partially offset by lower sales volumes.
____________________________________
|
1
|
Variable fee approach
("VFA").
|
2
|
Asia Other excludes
Hong Kong and Japan.
|
3
|
Effective January 1,
2023, international high net worth business was reclassified from
the U.S. segment to the Asia segment. Prior period comparative
information has been restated to reflect the change in segment
reporting.
|
New business CSM of $442
million in 1Q23, a decrease of 13% compared with
1Q22
In Asia, new business CSM decreased 9% from 1Q22 driven by less
favourable product mix partially offset by higher sales volumes. In
Canada, new business CSM decreased
25% due to lower segregated fund sales volumes and less favourable
product mix in Individual Insurance. Under IFRS 17 the majority of
group insurance and affinity products are classified as Premium
Allocation Approach ("PAA") and do not generate CSM. In the U.S.,
new business CSM decreased 20% consistent with lower sales
volumes.
CSM net of NCI was $17,467
million as at March 31, 2023,
an increase of $184 million compared
with December 31, 2022
The $184 million increase in CSM
net of NCI reflects an increase in total CSM movement of
$223 million, net of an increase in
NCI of $39 million. Organic CSM
movement was an increase of $166
million in 1Q23 driven by the impact of new insurance
business and expected movements related to finance income or
expenses, partially offset by amounts recognized for service
provided in current period earnings and a loss from insurance
experience. Inorganic CSM movement was an increase of $57 million driven by the impact of movement in
exchange rates and reinsurance related gains. Post-tax CSM net of
NCI was $14,850 million as at
March 31, 2023.
Reported Global Wealth and Asset Management net inflows of
$4.4 billion in 1Q23, compared with
1Q22 net inflows of $6.8
billion
Net inflows in Retirement were $1.2
billion in 1Q23 compared with net inflows of $2.0 billion in 1Q22, driven by higher plan
redemptions and lower new pension plan sales, partially offset by
growth in member contributions and lower member withdrawals. Net
inflows in Retail were $0.8 billion
in 1Q23 compared with net inflows of $4.0
billion in 1Q22, reflecting lower investor demand amid
continued market volatility and higher interest rates. Net inflows
in Institutional Asset Management were $2.5
billion in 1Q23 compared with net inflows of $0.9 billion in 1Q22, driven by higher gross
flows and new product launches in mainland China, partially offset by higher redemptions
in mainland China.
ADDITIONAL INFORMATION ON IFRS 17 AND IFRS 9
To accompany the release of our 1Q23 financial results we have
published a video with presentation slides which provide a
conceptual overview of our adoption of IFRS 17 and IFRS 9 as well
as presentation slides on our 2022 comparative results. These
materials are available under the "IFRS 17 Information"
section on the Manulife website at:
www.manulife.com/en/investors/results-and-reports.
QUARTERLY EARNINGS RESULTS CONFERENCE CALL
Manulife Financial Corporation will host a First Quarter 2023
Earnings Results Conference Call at 8:00
a.m. ET on May 11, 2023. As
this will mark the first quarter of reporting under the new
accounting standards, we have extended the length of the call to
two hours. For local and international locations, please call
416-340-2217 or toll free, North
America 1-800-806-5484 (Passcode: 7425868#). 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 until August 5,
2023 by calling 905-694-9451 or 1-800-408-3053 (Passcode:
7830868#).
The conference call will also be webcast through Manulife's
website at 8:00 a.m. ET on
May 11, 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 First Quarter 2023 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 for 1Q23 and transitional net income attributed to
shareholders for 1Q22 and 4Q22, consisting of core earnings and
details of the items excluded from core earnings:
|
Quarterly
Results
|
($ millions)
|
1Q23
|
4Q22
|
1Q22
|
Core
earnings
|
|
|
|
Asia
|
$
489
|
$
496
|
$
479
|
Canada
|
353
|
296
|
334
|
U.S.
|
385
|
408
|
293
|
Global Wealth and Asset
Management
|
287
|
274
|
344
|
Corporate and
Other
|
17
|
69
|
(57)
|
Total core
earnings
|
$
1,531
|
$
1,543
|
$
1,393
|
Items excluded from
core earnings:
Market experience gains
(losses)
|
(65)
|
(655)
|
3
|
Change in actuarial
methods and assumptions that flow directly through
income
|
-
|
-
|
-
|
Restructuring
charge
|
-
|
-
|
-
|
Reinsurance
transactions, tax-related items and other
|
(60)
|
340
|
(71)
|
Net income
attributed to shareholders /
Transitional(1)
|
$
1,406
|
$
1,228
|
$
1,325
|
(1) This
item is a non-GAAP financial measure.
|
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; transitional net income (loss) attributed to
shareholders; common shareholders' transitional net income;
adjusted book value; post-tax contractual service margin; post-tax
contractual service margin net of NCI ("post-tax CSM net of NCI");
total expenses; core expenses; total expenditures; core
expenditures; 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"); transitional return on common shareholders'
equity ("transitional ROE"); transitional diluted earnings per
common share ("transitional diluted EPS"); expense efficiency
ratio; expenditure efficiency ratio; financial leverage ratio;
adjusted book value per common share and percentage growth/decline
on a constant exchange rate basis in any of the above non-GAAP
financial measures.
Other specified financial measures include assets under
administration; embedded value; NBV; APE sales; gross flows; net
flows; average assets under management and administration ("average
AUMA") and percentage growth/decline in such other financial
measures and new business CSM.
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
|
|
1Q23
|
($ 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
|
$
613
|
$
423
|
$
219
|
$
345
|
$
119
|
$ 1,719
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(68)
|
(85)
|
(86)
|
(45)
|
14
|
(270)
|
Items excluded from
core earnings
|
(37)
|
(14)
|
53
|
(3)
|
(38)
|
(39)
|
Income tax (expense)
recovery
|
(105)
|
(99)
|
(33)
|
(48)
|
(24)
|
(309)
|
Net income
(post-tax)
|
508
|
324
|
186
|
297
|
95
|
1,410
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests ("NCI")
|
54
|
-
|
-
|
-
|
-
|
54
|
Participating
policyholders
|
(65)
|
15
|
-
|
-
|
-
|
(50)
|
Net income (loss)
attributed to shareholders (post-tax)
|
519
|
309
|
186
|
297
|
95
|
1,406
|
Less: Items excluded
from core earnings (post-tax)
|
|
|
|
|
|
|
Market experience
gains (losses)
|
30
|
(44)
|
(166)
|
9
|
106
|
(65)
|
Changes in actuarial
methods and assumptions that
flow directly
through income
|
-
|
-
|
-
|
-
|
-
|
-
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
-
|
-
|
(33)
|
1
|
(28)
|
(60)
|
Core earnings
(post-tax)
|
$
489
|
$
353
|
$
385
|
$
287
|
$
17
|
$ 1,531
|
Income tax on core
earnings (see above)
|
68
|
85
|
86
|
45
|
(14)
|
270
|
Core earnings
(pre-tax)
|
$
557
|
$
438
|
$
471
|
$
332
|
$
3
|
$ 1,801
|
Core earnings, CER basis
|
1Q23
|
|
(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)
|
$
489
|
$
353
|
$
385
|
$
287
|
$
17
|
$
1,531
|
CER
adjustment(1)
|
-
|
-
|
-
|
-
|
-
|
-
|
Core earnings, CER basis
(post-tax)
|
$
489
|
$
353
|
$
385
|
$
287
|
$
17
|
$
1,531
|
Income tax on core
earnings, CER basis(2)
|
68
|
85
|
86
|
45
|
(14)
|
270
|
Core earnings, CER basis
(pre-tax)
|
$
557
|
$
438
|
$
471
|
$
332
|
$
3
|
$
1,801
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 1Q23.
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 1Q23.
|
Reconciliation of core earnings and transitional net income
attributed to shareholders to net income attributed to
shareholders
|
4Q22
|
($ 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
|
$
403
|
$
(37)
|
$
(68)
|
$
461
|
$
(62)
|
$
697
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(82)
|
(81)
|
(96)
|
(47)
|
71
|
(235)
|
Items excluded from
core earnings
|
(21)
|
67
|
120
|
(13)
|
308
|
461
|
Income tax (expense)
recovery
|
(103)
|
(14)
|
24
|
(60)
|
379
|
226
|
Net income
(post-tax)
|
300
|
(51)
|
(44)
|
401
|
317
|
923
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
32
|
-
|
-
|
-
|
1
|
33
|
Participating
policyholders
|
(47)
|
22
|
-
|
-
|
-
|
(25)
|
Net income (loss)
attributed to shareholders (post-tax)
|
315
|
(73)
|
(44)
|
401
|
316
|
915
|
IFRS 9 transitional
impacts (post-tax)
|
178
|
193
|
(62)
|
-
|
4
|
313
|
Transitional net
income (loss) attributed to
shareholders
(post-tax)
|
493
|
120
|
(106)
|
401
|
320
|
1,228
|
Less: Items excluded
from core earnings (post-tax)
|
|
|
|
|
|
|
Market experience
gains (losses)
|
12
|
(136)
|
(514)
|
45
|
(62)
|
(655)
|
Changes in actuarial
methods and assumptions that
flow directly
through income
|
-
|
-
|
-
|
-
|
-
|
-
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
(15)
|
(40)
|
-
|
82
|
313
|
340
|
Core earnings
(post-tax)
|
$
496
|
$
296
|
$
408
|
$
274
|
$
69
|
$ 1,543
|
Income tax on core
earnings (see above)
|
82
|
81
|
96
|
47
|
(71)
|
235
|
Core earnings
(pre-tax)
|
$
578
|
$
377
|
$
504
|
$
321
|
$
(2)
|
$ 1,778
|
Core earnings, CER basis
|
4Q22
|
(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)
|
$
496
|
$
296
|
$
408
|
$
274
|
$
69
|
$ 1,543
|
CER
adjustment(1)
|
11
|
-
|
(2)
|
(1)
|
-
|
8
|
Core earnings, CER
basis (post-tax)
|
$
507
|
$
296
|
$
406
|
$
273
|
$
69
|
$ 1,551
|
Income tax on core
earnings, CER basis(2)
|
80
|
82
|
95
|
48
|
(71)
|
234
|
Core earnings, CER
basis (pre-tax)
|
$
587
|
$
378
|
$
501
|
$
321
|
$
(2)
|
$ 1,785
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 1Q23.
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 1Q23.
|
Reconciliation of core earnings and transitional net income
attributed to shareholders 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
|
$
192
|
$
(1,038)
|
$ (775)
|
$
336
|
$ (378)
|
$
(1,663)
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(64)
|
(72)
|
(61)
|
(64)
|
20
|
(241)
|
Items excluded from
core earnings
|
(9)
|
455
|
237
|
11
|
(13)
|
681
|
Income tax (expense)
recovery
|
(73)
|
383
|
176
|
(53)
|
7
|
440
|
Net income
(post-tax)
|
119
|
(655)
|
(599)
|
283
|
(371)
|
(1,223)
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
2
|
-
|
-
|
-
|
-
|
2
|
Participating
policyholders
|
(22)
|
17
|
-
|
-
|
-
|
(5)
|
Net income (loss)
attributed to shareholders (post-tax)
|
139
|
(672)
|
(599)
|
283
|
(371)
|
(1,220)
|
IFRS 9 transitional
impacts (post-tax)
|
66
|
998
|
1,484
|
-
|
(3)
|
2,545
|
Transitional net
income (loss) attributed to
shareholders
(post-tax)
|
205
|
326
|
885
|
283
|
(374)
|
1,325
|
Less: Items excluded
from core earnings (post-tax)
|
|
|
|
|
|
|
Market experience
gains (losses)
|
(274)
|
(8)
|
592
|
(61)
|
(246)
|
3
|
Changes in actuarial
methods and assumptions that
flow directly
through income
|
-
|
-
|
-
|
-
|
-
|
-
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
-
|
-
|
-
|
-
|
(71)
|
(71)
|
Core earnings
(post-tax)
|
$
479
|
$
334
|
$
293
|
$
344
|
$
(57)
|
$ 1,393
|
Income tax on core
earnings (see above)
|
63
|
72
|
61
|
64
|
(20)
|
240
|
Core earnings
(pre-tax)
|
$
542
|
$
406
|
$
354
|
$
408
|
$
(77)
|
$ 1,633
|
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)
|
$
479
|
$
334
|
$
293
|
$
344
|
$
(57)
|
$ 1,393
|
CER
adjustment(1)
|
17
|
-
|
20
|
15
|
2
|
54
|
Core earnings, CER
basis (post-tax)
|
$
496
|
$
334
|
$
313
|
$
359
|
$
(55)
|
$ 1,447
|
Income tax on core
earnings, CER basis(2)
|
65
|
72
|
65
|
66
|
(20)
|
248
|
Core earnings, CER
basis (pre-tax)
|
$
561
|
$
406
|
$
378
|
$
425
|
$
(75)
|
$ 1,695
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 1Q23.
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 1Q23.
|
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
|
|
($ millions, and based
on actual foreign exchange rates
in effect in the applicable reporting period, unless
otherwise stated)
|
1Q23
|
4Q22
|
3Q22
|
2Q22
|
1Q22
|
2022
|
Core
earnings
|
$ 1,531
|
$ 1,543
|
$ 1,339
|
$ 1,526
|
$ 1,393
|
$ 5,801
|
Less: Preferred share
dividends
|
(52)
|
(97)
|
(51)
|
(60)
|
(52)
|
(260)
|
Core earnings
available to common shareholders
|
1,479
|
1,446
|
1,288
|
1,466
|
1,341
|
5,541
|
CER
adjustment(1)
|
-
|
8
|
38
|
64
|
54
|
164
|
Core earnings
available to common shareholders,
CER basis
|
$ 1,479
|
$ 1,454
|
$ 1,326
|
$ 1,530
|
$ 1,395
|
$ 5,705
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 1Q23.
|
Core ROE
($ millions, unless otherwise stated)
|
Quarterly
Results
|
Full Year
Results
|
($ millions, unless
otherwise stated)
|
1Q23
|
4Q22
|
3Q22
|
2Q22
|
1Q22
|
2022
|
Core earnings available
to common shareholders
|
$ 1,479
|
$ 1,446
|
$ 1,288
|
$ 1,466
|
$ 1,341
|
$ 5,541
|
Annualized core
earnings available to common
shareholders
|
$ 5,998
|
$ 5,737
|
$ 5,110
|
$ 5,880
|
$ 5,439
|
$ 5,541
|
Average common
shareholders' equity (see below)
|
$
40,465
|
$
40,667
|
$
40,260
|
$
39,095
|
$
38,881
|
$
39,726
|
Core ROE
(annualized) (%)
|
14.8 %
|
14.1 %
|
12.7 %
|
15.1 %
|
14.0 %
|
14.0 %
|
Average common
shareholders' equity
|
|
|
|
|
|
|
Total shareholders' and
other equity
|
$
47,375
|
$
46,876
|
$
47,778
|
$
46,061
|
$
44,459
|
$
46,876
|
Less: Preferred shares
and other equity
|
6,660
|
6,660
|
6,660
|
6,660
|
5,670
|
6,660
|
Common shareholders'
equity
|
$
40,715
|
$
40,216
|
$
41,118
|
$
39,401
|
$
38,789
|
$
40,216
|
Average common
shareholders' equity
|
$
40,465
|
$
40,667
|
$
40,260
|
$
39,095
|
$
38,881
|
$
39,726
|
Transitional ROE
($ millions, unless otherwise
stated)
|
Quarterly
Results
|
Full Year
Results
|
|
4Q22
|
3Q22
|
2Q22
|
1Q22
|
2022
|
Common shareholders'
transitional net income (loss)
|
$ 1,131
|
$
726
|
$
108
|
$ 1,273
|
$ 3,238
|
Annualized common
shareholders' transitional net income (loss)
|
$ 4,487
|
$ 2,876
|
$
437
|
$ 5,163
|
$ 3,238
|
Average common
shareholders' equity
|
$
40,667
|
$
40,260
|
$
39,095
|
$
38,881
|
$
39,726
|
Transitional ROE
(annualized) (%)
|
11.0 %
|
7.1 %
|
1.1 %
|
13.3 %
|
8.2 %
|
|
Quarterly
Results
|
Full Year
Results
|
|
4Q22
|
3Q22
|
2Q22
|
1Q22
|
2022
|
Common shareholders'
transitional net income (loss):
|
|
|
|
|
|
Total transitional net
income (loss) attributed to shareholders
|
$ 1,228
|
$
777
|
$
168
|
$ 1,325
|
$ 3,498
|
Less: Preferred share
dividends and other equity distributions
|
(97)
|
(51)
|
(60)
|
(52)
|
(260)
|
Common shareholders'
transitional net income (loss)
|
$ 1,131
|
$
726
|
$
108
|
$ 1,273
|
$ 3,238
|
New Business CSM detail, CER Basis
($ millions
pre-tax, and based on actual foreign exchange rates in effect in
the applicable reporting period, unless otherwise stated).
|
|
|
|
1Q23
|
4Q22
|
3Q22
|
2Q22
|
1Q22
|
2022
|
New business CSM,
net of NCI
|
|
|
|
|
|
|
Hong Kong
|
$
119
|
$
110
|
$
127
|
$
94
|
$
106
|
$
437
|
Japan
|
36
|
28
|
37
|
38
|
37
|
140
|
Asia Other
|
146
|
186
|
176
|
196
|
174
|
732
|
International High Net
Worth
|
|
|
|
|
|
195
|
Mainland
China
|
|
|
|
|
|
13
|
Singapore
|
|
|
|
|
|
189
|
Vietnam
|
|
|
|
|
|
306
|
Other Emerging
Markets
|
|
|
|
|
|
29
|
Asia
|
301
|
324
|
340
|
328
|
317
|
1,309
|
Canada
|
46
|
47
|
44
|
47
|
61
|
199
|
U.S.
|
95
|
71
|
86
|
118
|
112
|
387
|
Total new business CSM
net of NCI
|
442
|
442
|
470
|
493
|
490
|
1,895
|
Asia
NCI
|
19
|
-
|
2
|
1
|
17
|
20
|
Total impact of new
insurance business in CSM
|
$
461
|
$
442
|
$
472
|
$
494
|
$
507
|
$ 1,915
|
New business CSM,
net of NCI, CER adjustment(1)
|
|
|
|
|
|
|
Hong Kong
|
$
-
|
$
(1)
|
$
4
|
$
6
|
$
8
|
$
17
|
Japan
|
-
|
2
|
3
|
1
|
(2)
|
4
|
Asia Other
|
-
|
4
|
8
|
11
|
6
|
29
|
International High Net
Worth
|
|
|
|
|
|
8
|
Mainland
China
|
|
|
|
|
|
-
|
Singapore
|
|
|
|
|
|
14
|
Vietnam
|
|
|
|
|
|
7
|
Other Emerging
Markets
|
|
|
|
|
|
-
|
Asia
|
-
|
5
|
15
|
18
|
12
|
50
|
Canada
|
-
|
-
|
-
|
-
|
-
|
-
|
U.S.
|
-
|
-
|
4
|
7
|
7
|
18
|
Total new business CSM
net of NCI
|
-
|
5
|
19
|
25
|
19
|
68
|
Asia
NCI
|
-
|
-
|
-
|
-
|
-
|
-
|
Total impact of new
insurance business in CSM
|
$
-
|
$
5
|
$
19
|
$
25
|
$
19
|
$
68
|
New Business CSM net
of NCI,
CER
basis
|
|
|
|
|
|
|
Hong Kong
|
$
119
|
$
109
|
$
131
|
$
100
|
$
114
|
$
454
|
Japan
|
36
|
30
|
40
|
39
|
35
|
144
|
Asia Other
|
146
|
190
|
184
|
207
|
180
|
761
|
International High Net
Worth
|
|
|
|
|
|
203
|
Mainland
China
|
|
|
|
|
|
13
|
Singapore
|
|
|
|
|
|
203
|
Vietnam
|
|
|
|
|
|
313
|
Other Emerging
Markets
|
|
|
|
|
|
29
|
Asia
|
301
|
329
|
355
|
346
|
329
|
1,359
|
Canada
|
46
|
47
|
44
|
47
|
61
|
199
|
U.S.
|
95
|
71
|
90
|
125
|
119
|
405
|
Total new business CSM
net of NCI, CER basis
|
442
|
447
|
489
|
518
|
509
|
1,963
|
Asia NCI, CER
basis
|
19
|
(1)
|
2
|
1
|
17
|
19
|
Total impact of new
insurance business in CSM,
CER
basis
|
$
461
|
$
446
|
$
491
|
$
519
|
$
526
|
$ 1,982
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 1Q23.
|
Post-tax CSM
($ millions and based on actual
foreign exchange rates in effect in the applicable reporting
period)
As at
($
millions)
|
Mar 31,
2023
|
Dec 31,
2022
|
Sept 30,
2022
|
Jun 30,
2022
|
Mar 31,
2022
|
Post-tax
CSM
|
|
|
|
|
|
CSM
|
$
18,200
|
$
17,977
|
$
17,798
|
$
17,452
|
$
17,659
|
Marginal tax rate on
CSM
|
(2,724)
|
(2,726)
|
(2,632)
|
(2,595)
|
(2,667)
|
Post-tax
CSM
|
$
15,476
|
$
15,251
|
$
15,166
|
$
14,857
|
$
14,992
|
|
|
|
|
|
|
CSM, net of
NCI
|
$
17,467
|
$
17,283
|
$
17,086
|
$
16,711
|
$
16,867
|
Marginal tax rate on
CSM net of NCI
|
(2,617)
|
(2,624)
|
(2,526)
|
(2,487)
|
(2,547)
|
Post-tax CSM net
NCI
|
$
14,850
|
$
14,659
|
$
14,560
|
$
14,224
|
$
14,320
|
Adjusted book value
As at
($
millions)
|
Mar 31,
2023
|
Dec 31,
2022
|
Sept 30,
2022
|
Jun 30,
2022
|
Mar 31,
2022
|
Common shareholders'
equity
|
$
40,715
|
$
40,216
|
$
41,118
|
$
39,401
|
$
38,789
|
Post tax CSM, net of
NCI
|
14,850
|
14,659
|
14,560
|
14,224
|
14,320
|
Adjusted book
value
|
$
55,565
|
$
54,875
|
$
55,678
|
$
53,625
|
$
53,109
|
Core expenses
($ millions, and based on actual foreign
exchange rates in effect in the applicable reporting period, unless
otherwise stated)
|
Quarterly
Results
|
Full Year
Results
|
|
1Q23
|
4Q22
|
3Q22
|
2Q22
|
1Q22
|
2022
|
Core
expenses
|
|
|
|
|
|
|
General expenses -
Statements of Income
|
$ 1,086
|
$ 1,002
|
$
914
|
$
884
|
$
931
|
$ 3,731
|
Directly attributable
acquisition expense for contracts
measured using
the PAA method(1)
|
33
|
15
|
17
|
15
|
11
|
58
|
Directly attributable
maintenance expense(1)
|
546
|
577
|
497
|
483
|
482
|
2,039
|
Total
expenses
|
$
1,665
|
$ 1,594
|
$ 1,428
|
$ 1,382
|
$ 1,424
|
$ 5,828
|
Less: General expenses
included in items excluded
from core
earnings
|
|
|
|
|
|
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Integration and
acquisition
|
|
18
|
-
|
-
|
8
|
26
|
Legal provisions and
Other expenses
|
60
|
-
|
39
|
1
|
-
|
40
|
Total
|
60
|
18
|
39
|
1
|
8
|
66
|
Core
expenses
|
$ 1,605
|
$ 1,576
|
$ 1,389
|
$ 1,381
|
$ 1,416
|
$ 5,762
|
CER
adjustment(2)
|
-
|
7
|
34
|
44
|
45
|
130
|
Core expenses, CER
basis
|
$ 1,605
|
$ 1,583
|
$ 1,423
|
$ 1,425
|
$ 1,461
|
$ 5,892
|
Total
expenses
|
$ 1,665
|
$ 1,594
|
$ 1,428
|
$ 1,382
|
$ 1,424
|
$ 5,828
|
CER
adjustment(2)
|
-
|
7
|
36
|
44
|
46
|
133
|
Total expenses, CER
basis
|
$ 1,665
|
$ 1,601
|
$ 1,464
|
$ 1,426
|
$ 1,470
|
$ 5,961
|
(1)
|
Expenses are components
of insurance service expenses on the Statements of Income that flow
directly to income.
|
(2)
|
The impact of updating
foreign exchange rates to that which was used in 1Q23.
|
Core expenditures
($ millions, and based on actual
foreign exchange rates in effect in the applicable reporting
period, unless otherwise stated)
|
Quarterly
Results
|
Full Year
Results
|
|
|
1Q23
|
4Q22
|
3Q22
|
2Q22
|
1Q22
|
2022
|
Core
expenditures
|
|
|
|
|
|
|
Total
expenses
|
$ 1,665
|
$ 1,594
|
$ 1,428
|
$ 1,382
|
$ 1,424
|
$ 5,828
|
Directly attributable
acquisition expenses capitalized
through the
CSM(1)
|
507
|
532
|
467
|
454
|
456
|
1,909
|
Total
expenditures
|
2,172
|
2,126
|
1,895
|
1,836
|
1,880
|
7,737
|
Less: General expenses
included in items excluded
from core
earnings (see core expenses reconciliation
above)
|
60
|
18
|
39
|
1
|
8
|
66
|
Core
expenditures
|
$ 2,112
|
$ 2,108
|
$ 1,856
|
$ 1,835
|
$ 1,872
|
$ 7,671
|
CER
adjustment(2)
|
-
|
14
|
54
|
62
|
55
|
185
|
Core expenditures,
CER basis
|
$ 2,112
|
$ 2,122
|
$ 1,910
|
$ 1,897
|
$ 1,927
|
$ 7,856
|
Total
expenditures
|
$ 2,172
|
$ 2,126
|
$ 1,895
|
$ 1,836
|
$ 1,880
|
$ 7,737
|
CER
adjustment(2)
|
-
|
15
|
56
|
61
|
56
|
188
|
Total expenditures,
CER basis
|
$ 2,172
|
$ 2,141
|
$ 1,951
|
$ 1,897
|
$ 1,936
|
$ 7,925
|
1)
|
Expenses are components
of insurance service expenses on the Statements of Income and are
then capitalized to CSM.
|
2)
|
The impact of updating
foreign exchange rates to that which was used in 1Q23.
|
Global WAM AUMA reconciliation
As at
|
|
|
|
|
|
($ millions, and based
on actual foreign exchange rates in
effect in the applicable reporting period, unless otherwise
stated)
|
March 31,
2023
|
December 31,
2022
|
Sept 30,
2022
|
June 30,
2022
|
March 31,
2022
|
Total invested
assets
|
$
412,476
|
$
400,142
|
$ 396,583
|
$
391,098
|
$
404,023
|
Less: Non Global WAM
total invested assets
|
406,911
|
394,390
|
390,997
|
385,400
|
398,222
|
Total invested
assets – Global WAM
|
5,565
|
5,752
|
5,586
|
5,698
|
5,801
|
Total segregated funds
net assets
|
$
364,044
|
$
348,562
|
$ 335,245
|
$
334,903
|
$
371,926
|
Less: Non Global WAM
total segregated funds net assets
|
128,466
|
124,371
|
120,776
|
121,624
|
135,314
|
Total invested
assets – Global WAM
|
235,578
|
224,191
|
214,469
|
213,279
|
236,612
|
Global WAM total
invested assets and net segregated
funds assets
|
$
241,143
|
$
229,943
|
$ 220,055
|
$
218,977
|
$
242,413
|
Global WAM
AUMA
|
|
|
|
|
|
Total invested
assets
|
$
5,565
|
$ 5,752
|
$
5,586
|
$
5,698
|
$
5,801
|
Segregated funds net
assets
|
|
|
|
|
|
Segregated funds net
assets - Institutional
|
3,718
|
3,719
|
4,118
|
4,098
|
4,336
|
Segregated funds net
assets - Other
|
231,860
|
220,472
|
210,351
|
209,181
|
232,276
|
Total
|
235,578
|
224,191
|
214,469
|
213,279
|
236,612
|
Mutual funds
|
267,767
|
258,273
|
249,591
|
250,517
|
274,733
|
Institutional asset
management(1)
|
113,781
|
109,739
|
100,474
|
96,997
|
98,177
|
Other funds
|
14,302
|
13,617
|
12,910
|
15,075
|
16,023
|
Total Global WAM
AUM
|
636,993
|
611,572
|
583,030
|
581,566
|
631,346
|
Assets under
administration
|
177,510
|
170,768
|
168,316
|
165,197
|
178,843
|
Total Global WAM
AUMA
|
$
814,503
|
$
782,340
|
$ 751,346
|
$
746,763
|
$
810,189
|
|
|
|
|
|
|
Total Global WAM
AUMA
|
$
814,503
|
$
782,340
|
$ 751,346
|
$
746,763
|
$
810,189
|
CER
adjustment(2)
|
-
|
(396)
|
(5,941)
|
26,727
|
45,590
|
Total Global WAM
AUMA, CER basis
|
$
814,503
|
$
781,944
|
$ 745,405
|
$
773,490
|
$
855,779
|
(1)
|
Institutional asset
management excludes Institutional segregated funds net
assets.
|
(2)
|
The impact of updating
foreign exchange rates to that which was used in 1Q23.
|
CAUTION REGARDING FORWARD-LOOKING STATEMENTS:
From time to time, Manulife makes written and/or oral
forward-looking statements, including in this document. In
addition, our representatives may make forward-looking statements
orally to analysts, investors, the media and others. All such
statements are made pursuant to the "safe harbour" provisions of
Canadian provincial securities laws and the U.S. Private Securities
Litigation Reform Act of 1995.
The forward-looking statements in this document include, but are
not limited to, statements with respect to possible share
buybacks under our NCIB, our ability to achieve our medium-term
financial and operating targets 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 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 fair value
through other comprehensive income; 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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