TSX/NYSE/PSE: MFC SEHK: 945
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TORONTO, Feb. 14,
2024 /CNW/ - Manulife Financial Corporation
("Manulife" or the "Company") reported its full year and fourth
quarter results for the period ended December 31, 2023, during which we delivered
double-digit growth in core EPS, and today declared a common share
dividend increase of 9.6%.
Key highlights for full year 2023 and the fourth quarter
("4Q23") include:
- Net income attributed to shareholders of $5.1 billion in 2023, up $1.6 billion from 2022 transitional net income
attributed to shareholders ("Transitional Net Income")1,
and $1.7 billion in 4Q23, up
$0.4 billion from Transitional Net
Income in the fourth quarter of 2022 ("4Q22")
- Net income attributed to shareholders of $5.1 billion in 2023, up $7.0 billion from 2022, and $1.7 billion in 4Q23, up $0.7 billion from 4Q22
- Core earnings1 of $6.7 billion in 2023, up 13% on a constant
exchange rate basis2 from 2022. Core earnings
of $1.8 billion in 4Q23, up 15% from
4Q22
- Core EPS3 of $3.47 in 2023, up 17%2 from
$2.90 in 2022. Core EPS of
$0.92 in 4Q23, up 20% from
$0.77 in 4Q22
- EPS of $2.61 in 2023, up
47%2 compared with transitional EPS3 of
$1.69 in 2022 and up $3.76 compared with EPS of -$1.15 in 2022. EPS of $0.86 in 4Q23, up 43% compared with transitional
EPS of $0.60 in 4Q22 and up
97%2 compared with EPS of $0.43 in 4Q22
- Core ROE3 of 15.9% in 2023 and 16.4% in 4Q23, and
ROE of 11.9% in 2023 and 15.3% in 4Q23
- LICAT ratio4 of 137%
- Remittances5 of $5.5 billion in 2023 compared with $6.9 billion in 2022
- Entered into an agreement with Global Atlantic to reinsure four
in-force blocks of legacy and low ROE business, including
$6 billion of long-term care ("LTC")
insurance contract net liabilities6, representing the
largest ever LTC reinsurance transaction. The transaction is
expected to close by the end of February
20247
- Purchased for cancellation 3.4% of common shares outstanding,
or more than 62 million common shares, for $1.6 billion in 2023
- Declared a 9.6% increase in the dividend per common share
today
"2023 was a milestone
year for Manulife as we continued to execute on our transformation
journey. We
delivered strong business results of 17% and 13% growth
year-over-year in core EPS and core earnings,
respectively, as well as core ROE of 15.9% in 2023. We generated
core earnings growth across all insurance
segments, double-digit increases in all new business
metrics8, and $4.5 billion of net
inflows5 in Global WAM9.
We also announced a milestone reinsurance transaction, including
the largest ever LTC risk transfer."
"Our strategy is
grounded in making decisions easier and lives better for our
customers and driving greater
value for our shareholders. The dedication and passion of our team
to deliver has helped us excel in
uncertain market conditions and achieve positive momentum as we
begin 2024."
— Roy Gori,
Manulife President & Chief Executive Officer
"This year marked a
smooth transition to IFRS 17 where Manulife delivered growth in
earnings, book value
per common share, and LICAT ratio, while returning $1.6 billion to
shareholders through our share buyback
program. We generated $5.5 billion in remittances in 2023, and we
announced a 9.6% increase in the
common share dividend today. We enter 2024 well positioned to
deliver business growth and cash generation
to our shareholders."
— Colin Simpson,
Manulife Chief Financial Officer
|
Results at a Glance
($ millions, unless otherwise
stated)
|
Quarterly Results
|
Full Year
Results
|
4Q23
|
4Q22
|
Change2,5
|
2023
|
2022
|
Change
|
|
Net Income attributed to shareholders
/
Transitional
|
$
|
1,659
|
$
$
|
915 /
1,228
|
81% /
35%
|
$
|
5,103
|
$
$
|
(1,933) /
3,498
|
nm /
40%
|
|
Core Earnings
|
$
|
1,773
|
$
|
1,543
|
15 %
|
$
|
6,684
|
$
|
5,801
|
13 %
|
|
EPS / Transitional
($)
|
$
|
0.86
|
$
$
|
0.43 /
0.60
|
97%/
43%
|
$
|
2.61
|
$
$
|
(1.15)/
1.69
|
nm /
47%
|
|
Core EPS ($)
|
$
|
0.92
|
$
|
0.77
|
20 %
|
$
|
3.47
|
$
|
2.90
|
17 %
|
|
ROE /
Transitional3
|
|
15.3 %
|
|
8.0% /
11.0%
|
7.3 pps /
4.3
pps
|
|
11.9 %
|
|
(5.5)% /
8.2%
|
17.4 pps /
3.7 pps
|
|
Core ROE
|
|
16.4 %
|
|
14.1 %
|
2.3 pps
|
|
15.9 %
|
|
14.0 %
|
1.9 pps
|
|
Book value per common
share ($)
|
$
|
22.36
|
$
|
21.56
|
4 %
|
$
|
22.36
|
$
|
21.56
|
4 %
|
|
Adjusted BV per common
share ($)3
|
$
|
32.19
|
$
|
29.42
|
9 %
|
$
|
32.19
|
$
|
29.42
|
9 %
|
|
APE
sales5
|
$
|
1,550
|
$
|
1,288
|
20 %
|
$
|
6,440
|
$
|
5,653
|
12 %
|
|
NBV5
|
$
|
630
|
$
|
524
|
20 %
|
$
|
2,324
|
$
|
2,063
|
10 %
|
|
New business
CSM
|
$
|
626
|
$
|
442
|
41 %
|
$
|
2,167
|
$
|
1,895
|
12 %
|
|
Global WAM
net flows ($ billions)
|
$
|
(1.3)
|
$
|
(8.4)
|
85 %
|
$
|
4.5
|
$
|
3.2
|
28 %
|
|
Results by Segment
($ millions, unless otherwise
stated)
|
Quarterly Results
|
Full Year
Results
|
|
4Q23
|
|
4Q22
|
Change
|
2023
|
2022
|
Change
|
Asia (US$)
|
|
|
|
|
|
|
|
|
|
|
Net Income attributed to shareholders
/
Transitional
|
$
|
452
|
$
|
231 /
363
|
84% /
22%
|
$
|
995
|
$
|
516 /
481
|
43% /
73%
|
Core Earnings
|
|
414
|
|
365
|
14 %
|
|
1,518
|
|
1,392
|
11 %
|
APE sales
|
|
731
|
|
658
|
11 %
|
|
3,313
|
|
2,920
|
15 %
|
NBV
|
|
306
|
|
292
|
5 %
|
|
1,206
|
|
1,181
|
3 %
|
New
Business CSM
|
|
303
|
|
238
|
27 %
|
|
1,148
|
|
1,006
|
16 %
|
Canada
|
|
|
|
|
|
|
|
|
|
|
Net Income attributed to shareholders
/
Transitional
|
$
|
365
|
$
|
(73) /
120
|
nm /
204%
|
$
|
1,191
|
$
|
(503) /
1,198
|
nm /
(1)%
|
Core Earnings
|
|
352
|
|
296
|
19 %
|
|
1,487
|
|
1,387
|
7 %
|
APE sales
|
|
363
|
|
252
|
44 %
|
|
1,409
|
|
1,261
|
12 %
|
NBV
|
|
139
|
|
87
|
60 %
|
|
490
|
|
362
|
35 %
|
New
Business CSM
|
|
70
|
|
47
|
49 %
|
|
224
|
|
199
|
13 %
|
U.S. (US$)
|
|
|
|
|
|
|
|
|
|
|
Net Income attributed to shareholders
/
Transitional
|
$
|
146
|
$
|
(33) /
(79)
|
nm/
nm
|
$
|
473
|
$
|
(1,809)/
1,139
|
nm /
(58)%
|
Core Earnings
|
|
349
|
|
301
|
16 %
|
|
1,304
|
|
1,202
|
8 %
|
APE sales
|
|
141
|
|
105
|
34 %
|
|
416
|
|
461
|
(10) %
|
NBV
|
|
54
|
|
31
|
74 %
|
|
153
|
|
126
|
21 %
|
New
Business CSM
|
|
105
|
|
52
|
102 %
|
|
292
|
|
299
|
(2) %
|
Global WAM
|
|
|
|
|
|
|
|
|
|
|
Net Income attributed to
shareholders
|
$
|
365
|
$
|
401
|
(9) %
|
$
|
1,297
|
$
|
1,121
|
15 %
|
Core Earnings
|
|
353
|
|
274
|
29 %
|
|
1,321
|
|
1,299
|
(1) %
|
Gross flows ($
billions)5
|
|
35.1
|
|
32.5
|
8 %
|
|
143.4
|
|
136.9
|
2 %
|
Average AUMA ($ billions)5
|
|
817
|
|
780
|
5 %
|
|
813
|
|
790
|
0 %
|
Core EBITDA margin3
|
|
25.7 %
|
|
23.6 %
|
210 bps
|
|
24.9 %
|
|
27.2 %
|
(230) bps
|
Strategic Highlights
We are executing on our strategy to reshape our portfolio and
focus on high potential growth
We entered into an agreement with Global Atlantic to reinsure
four in-force blocks of legacy and low ROE business, including
$6 billion of LTC insurance contract
net liabilities. This agreement represents the largest ever LTC
reinsurance transaction and is a major milestone in our
transformation journey to reshape our portfolio by reducing risk,
improving ROE, strengthening capital, growing high return
businesses and delivering value to shareholders.7
In Asia, we continued to
enhance our mainland Chinese visitor ("MCV") capabilities to
complement our prominent domestic franchise in Hong Kong with support from the launch of an
expanded hospital network covering more than 3,000 hospitals in
mainland China and the opening of
our second prestige service centre in Hong Kong. Our continued investments in MCV
capabilities have contributed to robust MCV APE sales in 2023, more
than double that of our 2019 pre-pandemic levels.
In addition, we launched a unified onboarding platform in our
global high net worth business in Bermuda10, Hong Kong and Singapore. The new platform makes new business
application, underwriting and compliance processes simpler and
faster, enabling more streamlined interactions and an overall
enhanced experience for both our brokers and customers.
In Global WAM, we entered into an agreement to acquire
multi-sector alternative credit manager CQS11,
headquartered in London. The
acquisition will give Manulife Investment Management and CQS
clients enhanced access to our combined global investment
solutions.
In Canada, we partnered with
League, a leading healthcare technology provider, to offer our
group benefits members more personalized and integrated digital
healthcare experiences, enabling them to connect their benefits
directly with healthcare options.
We are helping our customers live longer, healthier, and
better lives
In the U.S., we enhanced our John Hancock Vitality Program by
extending eligibility to access GRAIL's Galleri®
multi-cancer early detection test to additional members, expanding
eligibility for preventative care and early detection behaviours
through annual skin cancer screenings, and introducing a
personalized way to incentivize members to be more physically
active through a new Active Rewards feature.
In addition, we differentiated ourselves from other U.S. life
insurance carriers by hosting the first longevity symposium in the
industry that brought together 250 life insurance brokers,
leadership from reinsurance companies, media, and local government
officials to give them a first-hand look at the innovations and
science shaping the future of longevity.
In Canada, we expanded our
Personalized Medicine program to all group benefits extended
healthcare plans, making this service available to more customers,
while enabling them to learn about medications that best meet their
needs and work with healthcare providers on customized treatment
plans that can lead to better outcomes.
We continue to progress on our ambition to be the most
digital, customer-centric company in our industry
In Global WAM, we continued to enhance and broaden our wealth
planning and advice business in Canada Retail through strategic agreements
with Fidelity Clearing Canada and Envestnet that will provide
access to leading advisory technology and portfolio management
platforms, which when combined will deliver an enhanced digital
client experience and improved advisor productivity.
In Asia, we completed Phase 1
of the policy administration system modernization in mainland
China, launching new business and
underwriting modules on the new cloud-native solution, with the
seamless data migration of more than three million customers. This
enables scale and efficiency, and lays the foundation for improved
customer, distributor and partner experience.
Furthermore, we optimized the customer registration experience
across our customer websites in the U.S., resulting in a 26%
increase in online registrations in 2023, contributing to a 19%
improvement in unique website traffic. In Canada, we grew our annual Manulife mobile app
downloads by 18%, supported by upgrades designed to enhance our
customers' digital experience and a successful communication
campaign highlighting the ease and speed of online claims
submissions.
Strong earnings12 growth supported by
rising interest rates and improved insurance experience
Core earnings of $6.7 billion
in 2023, up 13% from 2022, and $1.8
billion in 4Q23, up 15% from 4Q22
The increase from 2022 was driven by improved insurance
experience, the net impact of rising interest rates, and business
growth. These were partially offset by a higher expected credit
loss ("ECL") provision, higher performance-related costs and
investments in technology. Insurance experience in our Property and
Casualty ("P&C") Reinsurance business improved significantly in
2023 due to updates to prior year hurricane provisions compared
with charges in 2022.
In the fourth quarter, core earnings increased by double-digits
year-over-year across all four operating segments.
- In Asia, higher net insurance
results reflected the net impact of updates to actuarial methods
and assumptions, which along with the impact of higher interest
rates and business growth, contributed to a 14% increase in 4Q23
core earnings.
- 4Q23 core earnings in Global WAM were up 29% as a result of
higher average AUMA and fee spreads, benefitting from favourable
market impacts.
- In Canada, growth in
short-term insurance, primarily Group Insurance, as well as a
decline in the ECL provision led to a 19% growth in 4Q23 core
earnings.
- 4Q23 core earnings in the U.S. increased 16%, in part due to
the net impact of higher yields and improved insurance
experience.
- In Corporate and Other, core earnings decreased by $39 million as improved insurance experience in
our P&C Reinsurance business was more than offset by higher
performance-related costs and higher cost of debt financing.
Net Income attributed to shareholders rose to $5.1 billion in 2023, $1.6
billion higher than 2022 Transitional Net Income, and
$1.7 billion in 4Q23, $0.4 billion higher than 4Q22 Transitional Net
Income
The $1.6 billion increase compared
with 2022 Transitional Net Income reflected growth in core earnings
and a smaller net charge from market experience. The net charge
from market experience in 2023 was primarily related to
lower-than-expected returns on alternative long-duration assets
("ALDA") and the net impact of interest rate movements. The
$7.0 billion increase compared with
2022 net income attributed to shareholders was driven by the
factors noted above and $5.4 billion
of transitional impacts due to the application of IFRS 9 hedge
accounting and ECL principles.
The $0.4 billion increase compared
with 4Q22 Transitional Net Income was primarily driven by a smaller
net charge from market experience, growth in core earnings and the
impact of updates to actuarial methods and assumptions in 4Q23. In
addition, 4Q22 included the impact of an increase in the Canadian
corporate tax rate on our deferred tax assets. The net charge from
market experience in 4Q23 was primarily related to
lower-than-expected returns on ALDA, partially offset by
higher-than-expected returns on public equity. The $0.7 billion increase compared with 4Q22 net
income attributed to shareholders was driven by the factors noted
above and $0.3 billion of
transitional impacts due to the application of IFRS 9 hedge
accounting and ECL principles.
Double-digit growth in new business results and $4.5 billion of net inflows in Global WAM
Our 2023 new business results were boosted by strong
performance in Asia and
Canada. Overall, our APE sales,
NBV and new business CSM increased 12%, 10% and 12%, respectively,
from 2022
- In Asia, higher demand across
various markets in the region after the lifting of all COVID-19
containment measures in early 2023 contributed to a 15%, 3% and 16%
growth in APE sales, NBV and new business CSM, respectively. Hong
Kong APE sales, NBV and new business CSM increased 58%, 20% and
49%, respectively, primarily driven by a return of demand from MCV
customers.
- In Canada, APE sales increased
12%, driven by a large affinity markets sale, higher sales in all
group benefits markets, partially offset by lower segregated fund
sales. Higher sales volumes and higher margins in Group Insurance
and Annuities led to a 35% increase year-over-year in NBV. New
business CSM also increased 13%.
- In the U.S., APE sales and new business CSM were down 10% and
2%, respectively, due to the adverse impact of higher short-term
interest rates on accumulation insurance products for most of 2023,
particularly for our affluent customers. However, NBV increased
21%, driven by pricing actions, product mix and higher interest
rates, which more than offset the impact of lower sales
volumes.
Our 4Q23 new business results demonstrated momentum with
year-over-year growth across all insurance segments, with increases
of 20%, 20% and 41% in APE sales, NBV and new business CSM,
respectively
- Asia generated year-over-year
growth of 11%, 5% and 27% in APE sales, NBV and new business CSM,
respectively, primarily driven by strong growth in Hong Kong due to a return of demand from MCV
customers as noted above.
- In Canada, APE sales increased
44% from 4Q22, primarily due to higher large-case and mid-size
sales in Group Insurance and higher fixed annuity sales, partially
offset by lower travel sales. Combined with higher margins, this
resulted in a 60% and 49% increase in NBV and new business CSM,
respectively.
- In the U.S., APE sales increased 34% compared with 4Q22,
reflecting a rebound in demand from affluent customers. Combined
with product mix and pricing actions, this led to a 74% and 102%
increase in NBV and new business CSM, respectively.
Global WAM net inflows of $4.5
billion in 2023, $1.3 billion
higher compared with net inflows of $3.2
billion in 2022
- Growth in member contributions in Retirement were more than
offset by large case pension plan redemptions by a U.S. sponsor in
the second half of the year, resulting in increased net outflows of
$4.0 billion in 2023, compared with
$0.1 billion in the prior year.
- Retail net outflows of $0.5
billion in 2023 improved from $1.6
billion in the prior year, driven by lower mutual fund
redemption rates and the launch of our Global Semiconductors
strategy in Japan. This was
partially offset by lower demand as investors continued to favour
short-term cash and money market instruments amid market volatility
and higher interest rates.
- Institutional Asset Management generated increased net inflows
of $9.0 billion in 2023, compared
with $4.9 billion in the prior year,
driven by higher net inflows in alternative asset mandates, the
impact of acquiring full ownership of Manulife Fund Management in
China and new institutional
product launches.
Global WAM net outflows of $1.3
billion in 4Q23, a $7.1
billion improvement compared with net outflows of
$8.4 billion in 4Q22
- Retirement net outflows of $2.5
billion improved from $4.6
billion in the prior year quarter, driven by lower pension
plan redemptions in the U.S. and growth in new pension plan sales
and member contributions.
- Retail net outflows of $1.0
billion in 4Q23 improved from $4.7
billion in 4Q22, driven by lower mutual fund redemption
rates.
- Institutional Asset Management generated higher net inflows of
$2.1 billion, compared with
$0.9 billion in 4Q22, driven by
higher sales of real estate, private equity and credit
mandates.
CSM balance increased 21%2 with
contribution from organic CSM movement of
5%5 and the impact from changes in actuarial
methods and assumptions
CSM net of NCI13 was $20,440 million as at December 31, 2023
CSM net of NCI increased $3,157
million compared with December 31,
2022, representing growth of 21%. Organic CSM movement was
an increase of $890 million or 5% in
2023, driven by the impact of new business and interest accretion,
partially offset by amortization recognized in core earnings and a
net reduction from insurance experience. Inorganic CSM movement was
an increase of $2,434 million in
2023, primarily driven by the impact from changes in actuarial
methods and assumptions, partially offset by changes in foreign
currency exchange rates. In addition, NCI CSM increased
$167 million compared with
December 31, 2022. Post-tax CSM net
of NCI1 was $17,748
million as at December 31,
2023.
4Q23 Update of Actuarial Methods and Assumptions
We updated our actuarial methods and assumptions which decreased
the overall level of the risk adjustment for non-financial risk in
the fourth quarter. This change moves the risk adjustment to
approximately the middle of our existing 90-95% confidence
level range. The risk adjustment would have exceeded the 95%
confidence level in 4Q23 without making the change. This
change led to a decrease in pre-tax fulfilment cash flows of
$2,850 million, an increase in
pre-tax net income attributed to shareholders of $144 million (an increase of $119 million post-tax), an increase in pre-tax
net income attributed to participating policyholders of
$115 million ($91 million post-tax), an increase in CSM of
$2,638 million, and a decrease in
pre-tax other comprehensive income of $47
million ($37 million
post-tax).
______________________________________
|
1
|
Transitional Net
Income, core earnings and post-tax contractual service margin net
of NCI ("post-tax CSM net of NCI")
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 2023 Management's Discussion and Analysis ("2023
MD&A").
|
2
|
Percentage growth /
declines in core earnings, diluted core earnings per common share
("core EPS"), transitional diluted earnings per common share
("transitional EPS"), diluted earnings (loss) per share ("EPS"),
net income attributed to shareholders, Transitional Net Income, new
business contractual service margin net of NCI ("new business CSM")
and contractual service margin net of NCI ("CSM net of NCI")
are stated on a constant exchange rate basis
and are non-GAAP ratios.
|
3
|
Core EPS, transitional
EPS, core ROE, transitional return on equity ("transitional ROE"),
adjusted book value per common share ("adjusted BV per common
share") and core EBITDA margin are non-GAAP
ratios.
|
4
|
Life Insurance Capital
Adequacy Test ("LICAT") ratio of The Manufacturers Life Insurance
Company ("MLI") as at December 31, 2023. 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.
|
5
|
For more information on
remittances, net flows, APE sales, NBV, gross flows and average
asset under management and administration ("average AUMA"), see
"Non-GAAP and other financial measures" below. In this news
release, percentage growth / declines in net flows, APE sales, NBV,
gross flows, average AUMA and organic CSM are stated on a constant
exchange rate basis.
|
6
|
Insurance and
investment contract net liabilities amounts are as at September 30,
2023. IFRS 17 current estimate of present value of future cashflows
+ risk adjustment + contractual service margin.
|
7
|
See "Caution regarding
forward-looking statements" below.
|
8
|
Annualized premium
equivalent ("APE") sales, new business value ("NBV") and new
business CSM.
|
9
|
Global Wealth and Asset
Management ("Global WAM").
|
10
|
Bermuda represents our
International High Net Worth business.
|
11
|
The transaction is
expected to close in the first half of 2024 subject to customary
closing conditions and regulatory approvals.
|
12
|
See "Profitability" in
section 1 "Manulife Financial Corporation" and section 8 "Fourth
Quarter Financial Highlights" in our 2023 MD&A for more
information on notable items attributable to core earnings and net
income attributed to shareholders.
|
13
|
Non-controlling
interests ("NCI").
|
Earnings Results Conference Call
Manulife will host a conference call and live webcast on its
fourth quarter and full year 2023 results on February
15, 2024, at 8:00 a.m.
(ET). To access the conference call, dial
1-800-806-5484
or 1-416-340-2217 (Passcode: 7713937#). Please call in 15 minutes
before the scheduled start
time. You will be required
to provide your name and organization to
the operator. You may access the webcast at
manulife.com/en/investors/results-and-reports.
The archived webcast will be available following the call at the
same URL as above. A replay of the call will also be available
until March 16, 2024, by dialing
1-800-408-3053 or 1-905-694-9451 (Passcode: 1481706#).
The Fourth Quarter
2023 Statistical Information Package is also available on the Manulife
website at:
www.manulife.com/en/investors/results-and-reports.
This earnings news
release should be read in conjunction with the Company's
2023 MD&A and Consolidated Financial Statements for
the year and the quarter ended December
31, 2023, prepared in accordance with International
Financial Reporting Standards ("IFRS") as issued by the
International Accounting Standards Board, which is available on our
website at
www.manulife.com/en/investors/results-and-reports. The
Company's 2023 MD&A and additional information relating to the
Company is available on the SEDAR+ website at
http://www.sedarplus.ca and on the U.S. Securities and
Exchange Commission's ("SEC") website at http://www.sec.gov.
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 4Q23, 3Q23 and full year 2023 results as well
as Transitional Net Income for 4Q22 and full
year 2022 results, consisting of core earnings and details of the
items excluded from core earnings:
Quarterly Results
|
|
Full Year
Results
|
($ millions)
|
4Q23
|
3Q23
|
4Q22
|
2023
|
2022
|
Core
earnings
|
|
|
|
|
|
Asia
|
$
564
|
$
522
|
$
496
|
$
2,048
|
$
1,812
|
Canada
|
352
|
408
|
296
|
1,487
|
1,387
|
U.S.
|
474
|
442
|
408
|
1,759
|
1,566
|
Global
Wealth and Asset Management
|
353
|
361
|
274
|
1,321
|
1,299
|
Corporate
and Other
|
30
|
10
|
69
|
69
|
(263)
|
Total
core earnings
|
$
1,773
|
$
1,743
|
$
1,543
|
$
6,684
|
$
5,801
|
Items
excluded from core earnings:
Market
experience gains (losses)
|
(133)
|
(1,022)
|
(655)
|
(1,790)
|
(2,585)
|
Change
in actuarial methods and assumptions that
flow
directly through
income
|
119
|
(14)
|
-
|
105
|
26
|
Restructuring
charge
|
(36)
|
-
|
-
|
(36)
|
-
|
Reinsurance transactions, tax-related items
and other
|
(64)
|
306
|
340
|
140
|
256
|
Net
income attributed to shareholders /
Transitional
|
$
1,659
|
$
1,013
|
$
1,228
|
$
5,103
|
$
3,498
|
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);
core earnings available to common
shareholders; core earnings before
income taxes, depreciation and amortization ("core EBITDA"); transitional net income (loss)
attributed to shareholders ("Transitional Net Income"); 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"); and core revenue. In
addition, non-GAAP financial measures include the following stated
on a constant exchange rate ("CER") basis: any of the foregoing
non-GAAP financial measures; net income attributed to shareholders;
and common shareholders' net income.
Non-GAAP ratios include core return on common
shareholders' equity ("core ROE"); diluted core earnings per common
share ("core EPS"); transitional diluted earnings per common share
("transitional EPS"); transitional return on equity ("transitional
ROE"); adjusted book value per common share; core EBITDA margin;
and percentage growth/decline on a constant exchange rate basis in
any of the above non-GAAP financial measures and non-GAAP ratios;
net income attributed to shareholders; diluted earnings per common
share ("EPS"), CSM net of NCI, and new business CSM.
Other specified
financial measures include remittances;
NBV; APE sales; gross flows; net flows; average
assets under management and administration ("average AUMA"); and
percentage growth/decline in these foregoing specified financial
measures. In addition, explanations of the components of the CSM
movement, other than the new business CSM were provided in the 2023
MD&A.
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 2023 MD&A, which
is incorporated by reference.
IFRS 17 Transition
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 and full year 2022 results have been
restated in accordance with IFRS 17 and IFRS 9.
The 2022
comparative 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 2022 results should be
viewed in this context.
In addition,
our 2022 results are also not directly comparable to 2023 results
because IFRS 9 hedge accounting and ECL
principles are applied prospectively effective January 1, 2023. Accordingly, we have also
presented comparative quarterly and full
year 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 for 2022. For a
complete list of transitional financial measures, please see
section 1 "Implementation of IFRS 17 and IFRS 9" of the 2023
MD&A.
Reconciliation of core earnings and transitional net income
attributed to shareholders to net income attributed to
shareholders
|
|
2023
|
($ 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
|
$ 2,244
|
$ 1,609
|
$
751
|
$ 1,497
|
$
351
|
$
6,452
|
Income tax (expenses)
recoveries
|
|
|
|
|
|
|
Core
earnings
|
(279)
|
(378)
|
(402)
|
(204)
|
99
|
(1,164)
|
Items excluded from
core earnings
|
(161)
|
5
|
290
|
6
|
179
|
319
|
Income tax (expenses)
recoveries
|
(440)
|
(373)
|
(112)
|
(198)
|
278
|
(845)
|
Net income
(post-tax)
|
1,804
|
1,236
|
639
|
1,299
|
629
|
5,607
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests ("NCI")
|
141
|
-
|
-
|
2
|
1
|
144
|
Participating
policyholders
|
315
|
45
|
-
|
-
|
-
|
360
|
Net income (loss)
attributed to shareholders (post-tax)
|
1,348
|
1,191
|
639
|
1,297
|
628
|
5,103
|
Less: Items excluded
from core earnings (post-tax)
|
|
|
|
|
|
|
Market experience
gains (losses)
|
(553)
|
(341)
|
(1,196)
|
10
|
290
|
(1,790)
|
Changes in actuarial
methods and assumptions that
flow directly through income
|
(68)
|
41
|
132
|
-
|
-
|
105
|
Restructuring
charge
|
-
|
-
|
-
|
(36)
|
-
|
(36)
|
Reinsurance
transactions, tax related items and other
|
(79)
|
4
|
(56)
|
2
|
269
|
140
|
Core earnings
(post-tax)
|
$ 2,048
|
$ 1,487
|
$ 1,759
|
$ 1,321
|
$
69
|
$
6,684
|
Income tax on core
earnings (see above)
|
279
|
378
|
402
|
204
|
(99)
|
1,164
|
Core earnings
(pre-tax)
|
$ 2,327
|
$ 1,865
|
$ 2,161
|
$ 1,525
|
$
(30)
|
$
7,848
|
Core earnings, CER basis and U.S. dollars
|
2023
|
(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)
|
$ 2,048
|
$ 1,487
|
$ 1,759
|
$
1,321
|
$
69
|
$
6,684
|
CER
adjustment(1)
|
(10)
|
-
|
15
|
7
|
2
|
14
|
Core earnings, CER
basis (post-tax)
|
$ 2,038
|
$ 1,487
|
$ 1,774
|
$
1,328
|
$
71
|
$
6,698
|
Income tax on core
earnings, CER basis(2)
|
277
|
378
|
405
|
204
|
(99)
|
1,165
|
Core earnings, CER
basis (pre-tax)
|
$ 2,315
|
$ 1,865
|
$ 2,179
|
$
1,532
|
$
(28)
|
$
7,863
|
Core earnings (U.S.
dollars) – Asia and U.S. segments
|
|
|
|
|
|
|
Core earnings
(post-tax)(3), US $
|
$ 1,518
|
|
$ 1,304
|
|
|
|
CER adjustment US
$(1)
|
(21)
|
|
-
|
|
|
|
Core earnings, CER
basis (post-tax), US $
|
$ 1,497
|
|
$ 1,304
|
|
|
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q23.
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 4Q23.
|
(3)
|
Core earnings
(post-tax) in Canadian $ is translated to US $ using the US $
Statement of Income exchange rate for the four respective quarters
that make up 2023 core earnings.
|
Reconciliation of core earnings and transitional net income
attributed to shareholders to net income attributed to
shareholders
|
2022
|
($ millions, post-tax
and based on actual foreign exchange
rates in effect in the applicable reporting period, unless
otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
Income (loss) before
income taxes
|
$
910
|
$ (969)
|
$
(3,011)
|
$ 1,291
|
$
(1,359)
|
$
(3,138)
|
Income tax (expenses)
recoveries
|
|
|
|
|
|
|
Core
earnings
|
(264)
|
(335)
|
(341)
|
(222)
|
116
|
(1,046)
|
Items excluded from
core earnings
|
(54)
|
845
|
1,036
|
52
|
326
|
2,205
|
Income tax (expenses)
recoveries
|
(318)
|
510
|
695
|
(170)
|
442
|
1,159
|
Net income
(post-tax)
|
592
|
(459)
|
(2,316)
|
1,121
|
(917)
|
(1,979)
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
120
|
-
|
-
|
-
|
1
|
121
|
Participating
policyholders
|
(211)
|
44
|
-
|
-
|
-
|
(167)
|
Net income (loss)
attributed to shareholders (post-tax)
|
683
|
(503)
|
(2,316)
|
1,121
|
(918)
|
(1,933)
|
IFRS 9 transitional
impacts (post-tax)
|
(36)
|
1,701
|
3,764
|
-
|
2
|
5,431
|
Transitional net
income (loss) attributed to
shareholders (post-tax)
|
647
|
1,198
|
1,448
|
1,121
|
(916)
|
3,498
|
Less: Items excluded
from core earnings (post-tax)
|
|
|
|
|
|
|
Market experience
gains (losses)
|
(1,141)
|
(196)
|
(93)
|
(260)
|
(895)
|
(2,585)
|
Changes in actuarial
methods and assumptions that
flow directly through income
|
(9)
|
47
|
(12)
|
-
|
-
|
26
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
(15)
|
(40)
|
(13)
|
82
|
242
|
256
|
Core earnings
(post-tax)
|
$ 1,812
|
$ 1,387
|
$ 1,566
|
$ 1,299
|
$ (263)
|
$ 5,801
|
Income tax on core
earnings (see above)
|
263
|
335
|
341
|
222
|
(116)
|
1,045
|
Core earnings
(pre-tax)
|
$ 2,075
|
$ 1,722
|
$ 1,907
|
$ 1,521
|
$ (379)
|
$ 6,846
|
Core earnings, CER basis and U.S. dollars
|
2022
|
(Canadian $ millions,
post-tax and based on actual foreign
exchange rates in effect in the applicable reporting period,
unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
Core earnings
(post-tax)
|
$ 1,812
|
$
1,387
|
$ 1,566
|
$
1,299
|
$ (263)
|
$ 5,801
|
CER
adjustment(1)
|
30
|
-
|
69
|
40
|
(5)
|
134
|
Core earnings, CER
basis (post-tax)
|
$ 1,842
|
$
1,387
|
$ 1,635
|
$
1,339
|
$ (268)
|
$
5,935
|
Income tax on core
earnings, CER basis(2)
|
267
|
335
|
356
|
226
|
(116)
|
1,068
|
Core earnings, CER
basis (pre-tax)
|
$ 2,109
|
$
1,722
|
$ 1,991
|
$
1,565
|
$ (384)
|
$ 7,003
|
Core earnings (U.S.
dollars) – Asia and U.S. segments
|
|
|
|
|
|
|
Core earnings
(post-tax)(3), US $
|
$ 1,392
|
|
$ 1,202
|
|
|
|
CER adjustment US
$(1)
|
(39)
|
|
-
|
|
|
|
Core earnings, CER
basis (post-tax), US $
|
$ 1,353
|
|
$ 1,202
|
|
|
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q23.
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 4Q23.
|
(3)
|
Core earnings
(post-tax) in Canadian $ is translated to US $ using the US $
Statement of Income exchange rate for the four respective quarters
that make up 2022 core earnings.
|
Reconciliation of core earnings to net income attributed to
shareholders
|
|
4Q23
|
($ 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
|
$
847
|
$
498
|
$
244
|
$
424
|
$
110
|
$ 2,123
|
Income tax (expenses)
recoveries
|
|
|
|
|
|
|
Core
earnings
|
(76)
|
(87)
|
(113)
|
(55)
|
37
|
(294)
|
Items excluded from
core earnings
|
(33)
|
(29)
|
67
|
(3)
|
(30)
|
(28)
|
Income tax (expenses)
recoveries
|
(109)
|
(116)
|
(46)
|
(58)
|
7
|
(322)
|
Net income
(post-tax)
|
738
|
382
|
198
|
366
|
117
|
1,801
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests ("NCI")
|
37
|
-
|
-
|
1
|
1
|
39
|
Participating
policyholders
|
86
|
17
|
-
|
-
|
-
|
103
|
Net income (loss)
attributed to shareholders (post-tax)
|
615
|
365
|
198
|
365
|
116
|
1,659
|
Less: Items excluded
from core earnings (post-tax)
|
|
|
|
|
|
|
Market experience
gains (losses)
|
-
|
9
|
(279)
|
51
|
86
|
(133)
|
Changes in actuarial
methods and assumptions that
flow directly through income
|
89
|
4
|
26
|
-
|
-
|
119
|
Restructuring
charge
|
-
|
-
|
-
|
(36)
|
-
|
(36)
|
Reinsurance
transactions, tax related items and other
|
(38)
|
-
|
(23)
|
(3)
|
-
|
(64)
|
Core earnings
(post-tax)
|
$
564
|
$
352
|
$
474
|
$
353
|
$
30
|
$ 1,773
|
Income tax on core
earnings (see above)
|
76
|
87
|
113
|
55
|
(37)
|
294
|
Core earnings
(pre-tax)
|
$
640
|
$
439
|
$
587
|
$
408
|
$
(7)
|
$ 2,067
|
Core earnings, CER basis and U.S. dollars
|
4Q23
|
|
(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)
|
$
564
|
$
352
|
$
474
|
$
353
|
$
30
|
$ 1,773
|
|
CER
adjustment(1)
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Core earnings, CER
basis (post-tax)
|
$
564
|
$
352
|
$
474
|
$
353
|
$
30
|
$ 1,773
|
|
Income tax on core
earnings, CER basis(2)
|
76
|
87
|
113
|
55
|
(37)
|
294
|
|
Core earnings, CER
basis (pre-tax)
|
$
640
|
$
439
|
$
587
|
$
408
|
$
(7)
|
$ 2,067
|
|
Core earnings (U.S.
dollars) – Asia and U.S. segments
|
|
|
|
|
|
|
|
Core earnings
(post-tax)(3), US $
|
$
414
|
|
$
349
|
|
|
|
|
CER adjustment US
$(1)
|
-
|
|
-
|
|
|
|
|
Core earnings, CER
basis (post-tax), US $
|
$
414
|
|
$
349
|
|
|
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q23.
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 4Q23.
|
(3)
|
Core earnings
(post-tax) in Canadian $ is translated to US $ using the US $
Statement of Income exchange rate for 4Q23.
|
Reconciliation of core earnings to net income attributed to
shareholders
|
|
3Q23
|
($ 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
|
$
439
|
$
376
|
$
68
|
$
366
|
$
(75)
|
$
1,174
|
Income tax (expenses)
recoveries
|
|
|
|
|
|
|
Core
earnings
|
(62)
|
(109)
|
(93)
|
(59)
|
30
|
(293)
|
Items excluded from
core earnings
|
(73)
|
15
|
97
|
11
|
294
|
344
|
Income tax (expenses)
recoveries
|
(135)
|
(94)
|
4
|
(48)
|
324
|
51
|
Net income
(post-tax)
|
304
|
282
|
72
|
318
|
249
|
1,225
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests ("NCI")
|
25
|
-
|
-
|
-
|
-
|
25
|
Participating
policyholders
|
195
|
(8)
|
-
|
-
|
-
|
187
|
Net income (loss)
attributed to shareholders (post-tax)
|
84
|
290
|
72
|
318
|
249
|
1,013
|
Less: Items excluded
from core earnings (post-tax)
|
|
|
|
|
|
|
Market experience
gains (losses)
|
(286)
|
(159)
|
(476)
|
(43)
|
(58)
|
(1,022)
|
Changes in actuarial
methods and assumptions that
flow directly through income
|
(157)
|
37
|
106
|
-
|
-
|
(14)
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
5
|
4
|
-
|
-
|
297
|
306
|
Core earnings
(post-tax)
|
$
522
|
$
408
|
$
442
|
$
361
|
$
10
|
$
1,743
|
Income tax on core
earnings (see above)
|
62
|
109
|
93
|
59
|
(30)
|
293
|
Core earnings
(pre-tax)
|
$
584
|
$
517
|
$
535
|
$
420
|
$
(20)
|
$
2,036
|
Core earnings, CER basis and U.S. dollars
|
3Q23
|
|
(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)
|
$
522
|
$
408
|
$
442
|
$
361
|
$
10
|
$ 1,743
|
|
|
CER
adjustment(1)
|
5
|
-
|
6
|
4
|
-
|
15
|
|
|
Core earnings, CER
basis (post-tax)
|
$
527
|
$
408
|
$
448
|
$
365
|
$
10
|
$ 1,758
|
|
|
Income tax on core
earnings, CER basis(2)
|
62
|
109
|
95
|
59
|
(30)
|
295
|
|
|
Core earnings, CER
basis (pre-tax)
|
$
589
|
$
517
|
$
543
|
$
424
|
$
(20)
|
$ 2,053
|
|
|
Core earnings (U.S.
dollars) – Asia and U.S. segments
|
|
|
|
|
|
|
|
|
Core earnings
(post-tax)(3), US $
|
$
390
|
|
$
329
|
|
|
|
|
|
CER adjustment US
$(1)
|
(3)
|
|
-
|
|
|
|
|
|
Core earnings, CER
basis (post-tax), US $
|
$
387
|
|
$
329
|
|
|
|
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q23.
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 4Q23.
|
(3)
|
Core earnings
(post-tax) in Canadian $ is translated to US $ using the US $
Statement of Income exchange rate for 3Q23.
|
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 (expenses)
recoveries
|
|
|
|
|
|
|
Core
earnings
|
(82)
|
(81)
|
(96)
|
(47)
|
71
|
(235)
|
Items excluded from
core earnings
|
(21)
|
67
|
120
|
(13)
|
308
|
461
|
Income tax (expenses)
recoveries
|
(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 and U.S. dollars
|
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)
|
(1)
|
-
|
1
|
-
|
-
|
-
|
Core earnings, CER
basis (post-tax)
|
$
495
|
$
296
|
$
409
|
$
274
|
$
69
|
$ 1,543
|
Income tax on core
earnings, CER basis(2)
|
81
|
82
|
95
|
48
|
(71)
|
235
|
Core earnings, CER
basis (pre-tax)
|
$
576
|
$
378
|
$
504
|
$
322
|
$
(2)
|
$ 1,778
|
Core earnings (U.S.
dollars) – Asia and U.S. segments
|
|
|
|
|
|
|
Core earnings
(post-tax)(3), US $
|
$
365
|
|
$
301
|
|
|
|
CER adjustment US
$(1)
|
(1)
|
|
-
|
|
|
|
Core earnings, CER
basis (post-tax), US $
|
$
364
|
|
$
301
|
|
|
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q23.
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 4Q23.
|
(3)
|
Core earnings
(post-tax) in Canadian $ is translated to US $ using the US $
Statement of Income exchange rate for 4Q22.
|
Core earnings available to common shareholders
($
millions, post-tax and based on actual foreign exchange rates in
effect in the applicable reporting period, unless otherwise
stated)
|
Quarterly
Results
|
Full Year
Results
|
|
4Q23
|
3Q23
|
2Q23
|
1Q23
|
4Q22
|
2023
|
2022
|
Core
earnings
|
$
1,773
|
$
1,743
|
$
1,637
|
$
1,531
|
$
1,543
|
$
6,684
|
$
5,801
|
Less: Preferred share
dividends
|
(99)
|
(54)
|
(98)
|
(52)
|
(97)
|
(303)
|
(260)
|
Core earnings available
to common shareholders
|
1,674
|
1,689
|
1,539
|
1,479
|
1,446
|
6,381
|
5,541
|
CER
adjustment(1)
|
-
|
15
|
5
|
(6)
|
-
|
14
|
134
|
Core earnings
available to common shareholders,
CER basis
|
$
1,674
|
$
1,704
|
$
1,544
|
$
1,473
|
$
1,446
|
$
6,395
|
$
5,675
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q23.
|
Core ROE
($ millions, unless otherwise stated)
|
Quarterly
Results
|
Full Year
Results
|
|
4Q23
|
3Q23
|
2Q23
|
1Q23
|
4Q22
|
2023
|
2022
|
Core earnings available
to common shareholders (post-
tax)
|
$
1,674
|
$
1,689
|
$
1,539
|
$
1,479
|
$
1,446
|
$
6,381
|
$
5,541
|
Annualized core
earnings available to common
shareholders
|
$
6,641
|
$
6,701
|
$
6,173
|
$
5,998
|
$
5,737
|
$
6,381
|
$
5,541
|
Average common
shareholders' equity (see below)
|
$
40,563
|
$
39,897
|
$
39,881
|
$
40,465
|
$
40,667
|
$
40,201
|
$
39,726
|
Core ROE (annualized
%)
|
16.4 %
|
16.8 %
|
15.5 %
|
14.8 %
|
14.1 %
|
15.9 %
|
14.0 %
|
Average common
shareholders' equity
|
|
|
|
|
|
|
|
Total shareholders' and
other equity
|
$
47,039
|
$
47,407
|
$
45,707
|
$
47,375
|
$
46,876
|
$
47,039
|
$
46,876
|
Less: Preferred shares
and other equity
|
6,660
|
6,660
|
6,660
|
6,660
|
6,660
|
6,660
|
6,660
|
Common shareholders'
equity
|
$
40,379
|
$
40,747
|
$
39,047
|
$
40,715
|
$
40,216
|
$
40,379
|
$
40,216
|
Average common
shareholders' equity
|
$
40,563
|
$
39,897
|
$
39,881
|
$
40,465
|
$
40,667
|
$
40,201
|
$
39,726
|
Transitional ROE
($ millions, unless otherwise
stated)
|
Quarterly
Results
|
Full Year
Results
|
|
4Q22
|
3Q22
|
2Q22
|
1Q22
|
2022
|
Total transitional
net income (loss) attributed to shareholders
|
$ 1,228
|
$
777
|
$
168
|
$
1,325
|
$
3,498
|
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
|
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 %
|
CSM and post-tax CSM information
($ millions and based
on actual foreign exchange rates in effect in the applicable
reporting period, unless otherwise stated)
As at
|
Dec 31,
2023
|
Sept 30,
2023
|
June 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
CSM
|
$
21,301
|
$
18,149
|
$
18,103
|
$
18,200
|
$
17,977
|
Less: CSM for
NCI
|
(861)
|
(780)
|
(680)
|
(733)
|
(694)
|
CSM, net of
NCI
|
$
20,440
|
$
17,369
|
$
17,423
|
$
17,467
|
$
17,283
|
CER
adjustment(1)
|
380
|
116
|
324
|
(171)
|
(138)
|
CSM, net of NCI, CER
basis
|
$
20,820
|
$
17,485
|
$
17,747
|
$
17,296
|
$
17,145
|
Post-tax
CSM
|
|
|
|
|
|
CSM
|
$
21,301
|
$
18,149
|
$
18,103
|
$
18,200
|
$
17,977
|
Marginal tax rate on
CSM
|
(2,798)
|
(2,474)
|
(2,645)
|
(2,724)
|
(2,726)
|
Post-tax
CSM
|
$
18,503
|
$
15,675
|
$
15,458
|
$
15,476
|
$
15,251
|
CSM, net of
NCI
|
$
20,440
|
$
17,369
|
$
17,423
|
$
17,467
|
$
17,283
|
Marginal tax rate on
CSM net of NCI
|
(2,692)
|
(2,377)
|
(2,546)
|
(2,617)
|
(2,624)
|
Post-tax CSM net of
NCI
|
$
17,748
|
$
14,992
|
$
14,877
|
$
14,850
|
$
14,659
|
(1)
|
The impact of
reflecting CSM and CSM net of NCI using the foreign exchange rates
for the Statement of Financial Position in effect for
4Q23.
|
Adjusted book value
As at
($
millions)
|
Dec 31,
2023
|
Sept 30,
2023
|
June 30,
2023
|
Mar 31,
2023
|
Dec 31,
2022
|
Common shareholders'
equity
|
$
40,379
|
$ 40,747
|
$ 39,047
|
$ 40,715
|
$ 40,216
|
Post-tax CSM, net of
NCI
|
17,748
|
14,992
|
14,877
|
14,850
|
14,659
|
Adjusted book
value
|
$
58,127
|
$ 55,739
|
$ 53,924
|
$ 55,565
|
$ 54,875
|
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)
|
Quarterly
Results
|
Full Year
Results
|
|
4Q23
|
3Q23
|
2Q23
|
1Q23
|
4Q22
|
2023
|
2022
|
New business CSM,
net of NCI
|
|
|
|
|
|
|
|
Hong Kong
|
$ 199
|
$ 167
|
$ 191
|
$ 119
|
$ 110
|
$
676
|
$ 437
|
Japan
|
42
|
29
|
19
|
36
|
28
|
126
|
140
|
Asia Other
|
173
|
206
|
222
|
146
|
186
|
747
|
732
|
International High
Net Worth
|
|
|
|
|
|
231
|
197
|
Mainland
China
|
|
|
|
|
|
138
|
12
|
Singapore
|
|
|
|
|
|
244
|
189
|
Vietnam
|
|
|
|
|
|
87
|
305
|
Other Emerging
Markets
|
|
|
|
|
|
47
|
29
|
Asia
|
414
|
402
|
432
|
301
|
324
|
1,549
|
1,309
|
Canada
|
70
|
51
|
57
|
46
|
47
|
224
|
199
|
U.S.
|
142
|
54
|
103
|
95
|
71
|
394
|
387
|
Total new business CSM
net of NCI
|
626
|
507
|
592
|
442
|
442
|
2,167
|
1,895
|
Asia
NCI
|
39
|
46
|
38
|
19
|
-
|
142
|
20
|
Total impact of new
insurance business in CSM
|
$ 665
|
$ 553
|
$ 630
|
$ 461
|
$ 442
|
$
2,309
|
$
1,915
|
New business CSM,
net of NCI, CER
adjustment(1),(2)
|
|
|
|
|
|
|
|
Hong Kong
|
$
-
|
$
3
|
$
3
|
$
1
|
$
-
|
$
7
|
$ 20
|
Japan
|
-
|
(1)
|
(1)
|
(3)
|
(1)
|
(5)
|
(10)
|
Asia Other
|
-
|
5
|
(1)
|
(3)
|
2
|
1
|
22
|
International High
Net Worth
|
|
|
|
|
|
3
|
7
|
Mainland
China
|
|
|
|
|
|
-
|
-
|
Singapore
|
|
|
|
|
|
2
|
13
|
Vietnam
|
|
|
|
|
|
(2)
|
3
|
Other Emerging
Markets
|
|
|
|
|
|
(2)
|
(1)
|
Asia
|
-
|
7
|
1
|
(5)
|
1
|
3
|
32
|
Canada
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
U.S.
|
-
|
1
|
1
|
1
|
-
|
3
|
20
|
Total new business CSM
net of NCI
|
-
|
8
|
2
|
(4)
|
1
|
6
|
52
|
Asia
NCI
|
-
|
-
|
-
|
(1)
|
(1)
|
(1)
|
(1)
|
Total impact of new
insurance business in CSM
|
$
-
|
$
8
|
$
2
|
$
(5)
|
$
-
|
$
5
|
$ 51
|
New business CSM net
of NCI, CER basis
|
|
|
|
|
|
|
|
Hong Kong
|
$ 199
|
$ 170
|
$ 194
|
$ 120
|
$ 110
|
$
683
|
$ 457
|
Japan
|
42
|
28
|
18
|
33
|
27
|
121
|
130
|
Asia Other
|
173
|
211
|
221
|
143
|
188
|
748
|
754
|
International High
Net Worth
|
|
|
|
|
|
234
|
204
|
Mainland
China
|
|
|
|
|
|
138
|
12
|
Singapore
|
|
|
|
|
|
246
|
202
|
Vietnam
|
|
|
|
|
|
85
|
308
|
Other Emerging
Markets
|
|
|
|
|
|
45
|
28
|
Asia
|
414
|
409
|
433
|
296
|
325
|
1,552
|
1,341
|
Canada
|
70
|
51
|
57
|
46
|
47
|
224
|
199
|
U.S.
|
142
|
55
|
104
|
96
|
71
|
397
|
407
|
Total new business CSM
net of NCI, CER basis
|
626
|
515
|
594
|
438
|
443
|
2,173
|
1,947
|
Asia NCI, CER
basis
|
39
|
46
|
38
|
18
|
(1)
|
141
|
19
|
Total impact of new
insurance business in
CSM, CER basis
|
$ 665
|
$ 561
|
$ 632
|
$ 456
|
$ 442
|
$
2,314
|
$
1,966
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q23.
|
(2)
|
New business CSM for
Asia Other is reported by country annually, on a full year basis.
Other Emerging Markets within Asia Other include Indonesia, the
Philippines, Malaysia, Thailand, Cambodia and Myanmar.
|
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
|
|
4Q23
|
3Q23
|
2Q23
|
1Q23
|
4Q22
|
2023
|
2022
|
Global WAM core
earnings (post-tax)
|
$
353
|
$
361
|
$
320
|
$
287
|
$
274
|
$
1,321
|
$ 1,299
|
Add back taxes,
acquisition costs, other expenses and
deferred sales commissions
|
|
|
|
|
|
|
|
Core income tax
(expenses) recoveries (see above)
|
55
|
59
|
45
|
45
|
47
|
204
|
222
|
Amortization of
deferred acquisition costs and other
depreciation
|
45
|
41
|
40
|
40
|
43
|
166
|
154
|
Amortization of
deferred sales commissions
|
21
|
19
|
19
|
21
|
25
|
80
|
98
|
Core
EBITDA
|
$
474
|
$
480
|
$
424
|
$
393
|
$
389
|
$
1,771
|
$ 1,773
|
CER
adjustment(1)
|
-
|
4
|
3
|
1
|
1
|
8
|
51
|
Core EBITDA, CER
basis
|
$
474
|
$
484
|
$
427
|
$
394
|
$
390
|
$
1,779
|
$ 1,824
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q23.
|
Core EBITDA margin and core revenue
|
Quarterly
Results
|
Full Year
Results
|
($ millions, unless
otherwise stated)
|
4Q23
|
3Q23
|
2Q23
|
1Q23
|
4Q22
|
2023
|
2022
|
Core EBITDA
margin
|
|
|
|
|
|
|
|
Core EBITDA
|
$
474
|
$
480
|
$
424
|
$
393
|
$
389
|
$
1,771
|
$ 1,773
|
Core revenue
|
$
1,842
|
$ 1,783
|
$ 1,722
|
$ 1,756
|
$ 1,646
|
$
7,103
|
$ 6,516
|
Core EBITDA
margin
|
25.7 %
|
26.9 %
|
24.6 %
|
22.4 %
|
23.6 %
|
24.9 %
|
27.2 %
|
Global WAM core
revenue
|
|
|
|
|
|
|
|
Other revenue per
financial statements
|
$
1,719
|
$ 1,645
|
$ 1,691
|
$ 1,691
|
$ 1,671
|
$
6,746
|
$ 6,186
|
Less: Other revenue in
segments other than Global WAM
|
31
|
(64)
|
44
|
26
|
26
|
37
|
(205)
|
Other revenue in
Global WAM (fee income)
|
$
1,688
|
$ 1,709
|
$ 1,647
|
$ 1,665
|
$ 1,645
|
$
6,709
|
$ 6,391
|
Investment income per
financial statements
|
$
4,497
|
$ 4,028
|
$ 4,135
|
$ 3,520
|
$ 4,271
|
$
16,180
|
$ 15,204
|
Realized and unrealized
gains (losses) on assets supporting
insurance and investment contract liabilities per
financial
statements
|
2,674
|
(2,430)
|
950
|
1,944
|
(2,453)
|
3,138
|
(13,646)
|
Total investment
income
|
7,171
|
1,598
|
5,085
|
5,464
|
1,818
|
19,318
|
1,558
|
Less: Investment income
in segments other than Global WAM
|
6,941
|
1,578
|
5,010
|
5,357
|
1,672
|
18,886
|
1,659
|
Investment income in
Global WAM
|
$
230
|
$ 20
|
$ 75
|
$
107
|
$
146
|
$
432
|
$
(101)
|
Total other revenue and
investment income in Global WAM
|
$
1,918
|
$ 1,729
|
$ 1,722
|
$ 1,772
|
$ 1,791
|
$
7,141
|
$ 6,290
|
Less: Total revenue
reported in items excluded from core
earnings
|
|
|
|
|
|
|
|
Market
experience gains (losses)
|
63
|
(54)
|
7
|
12
|
55
|
28
|
(316)
|
Revenue related
to integration and acquisitions
|
13
|
-
|
(7)
|
4
|
90
|
10
|
90
|
Global WAM core
revenue
|
$
1,842
|
$ 1,783
|
$ 1,722
|
$ 1,756
|
$ 1,646
|
$
7,103
|
$ 6,516
|
Net income financial measures on a CER basis
($
Canadian millions, post-tax and based on actual foreign exchange
rates in effect in the applicable reporting period, unless
otherwise stated)
|
Quarterly
Results
|
Full Year
Results
|
|
4Q23
|
3Q23
|
2Q23
|
1Q23
|
4Q22
|
2023
|
2022
|
Net income (loss)
attributed to shareholders:
|
|
|
|
|
|
|
|
Asia
|
$ 615
|
$ 84
|
$ 130
|
$ 519
|
$ 315
|
$
1,348
|
$ 683
|
Canada
|
365
|
290
|
227
|
309
|
(73)
|
1,191
|
(503)
|
U.S.
|
198
|
72
|
183
|
186
|
(44)
|
639
|
(2,316)
|
Global WAM
|
365
|
318
|
317
|
297
|
401
|
1,297
|
1,121
|
Corporate and
Other
|
116
|
249
|
168
|
95
|
316
|
628
|
(918)
|
Total net income
(loss) attributed to shareholders
|
1,659
|
1,013
|
1,025
|
1,406
|
915
|
5,103
|
(1,933)
|
Preferred share
dividends and other equity distributions
|
(99)
|
(54)
|
(98)
|
(52)
|
(97)
|
(303)
|
(260)
|
Common shareholders'
net income (loss)
|
$
1,560
|
$ 959
|
$ 927
|
$
1,354
|
$ 818
|
$
4,800
|
$ (2,193)
|
CER
adjustment(1)
|
|
|
|
|
|
|
|
Asia
|
$
-
|
$
2
|
$ 13
|
$
1
|
$
19
|
$ 16
|
$ 274
|
Canada
|
-
|
1
|
1
|
(2)
|
(2)
|
-
|
78
|
U.S.
|
-
|
-
|
11
|
1
|
(2)
|
12
|
(160)
|
Global WAM
|
-
|
4
|
4
|
-
|
(1)
|
8
|
16
|
Corporate and
Other
|
-
|
(7)
|
(9)
|
(1)
|
(11)
|
(17)
|
(86)
|
Total net income
(loss) attributed to shareholders
|
-
|
-
|
20
|
(1)
|
3
|
19
|
122
|
Preferred share
dividends and other equity distributions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Common shareholders'
net income (loss)
|
$
-
|
$
-
|
$ 20
|
$ (1)
|
$
3
|
$ 19
|
$ 122
|
Net income (loss)
attributed to shareholders, CER basis
|
|
|
|
|
|
|
|
Asia
|
$ 615
|
$ 86
|
$ 143
|
$ 520
|
$ 334
|
$
1,364
|
$ 957
|
Canada
|
365
|
291
|
228
|
307
|
(75)
|
1,191
|
(425)
|
U.S.
|
198
|
72
|
194
|
187
|
(46)
|
651
|
(2,476)
|
Global WAM
|
365
|
322
|
321
|
297
|
400
|
1,305
|
1,137
|
Corporate and
Other
|
116
|
242
|
159
|
94
|
305
|
611
|
(1,004)
|
Total net income
(loss) attributed to shareholders, CER basis
|
1,659
|
1,013
|
1,045
|
1,405
|
918
|
5,122
|
(1,811)
|
Preferred share
dividends and other equity distributions, CER basis
|
(99)
|
(54)
|
(98)
|
(52)
|
(97)
|
(303)
|
(260)
|
Common shareholders'
net income (loss), CER basis
|
$
1,560
|
$ 959
|
$ 947
|
$
1,353
|
$ 821
|
$
4,819
|
$ (2,071)
|
Asia net income
attributed to shareholders, U.S. dollars
|
|
|
|
|
|
|
|
Asia net income (loss)
attributed to shareholders, US $(2)
|
$ 452
|
$ 63
|
$ 96
|
$ 384
|
$ 231
|
$ 995
|
$ 516
|
CER adjustment, US
$(1)
|
-
|
-
|
9
|
(2)
|
14
|
7
|
186
|
Asia net income
(loss) attributed to shareholders, U.S. $, CER
basis(1)
|
$ 452
|
$ 63
|
$ 105
|
$ 382
|
$ 245
|
$
1,002
|
$ 702
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q23.
|
(2)
|
Asia net income
attributed to shareholders (post-tax) in Canadian dollars is
translated to U.S. dollars using the U.S. dollar Statement of
Income rate for the reporting period.
|
Transitional net income financial measures on a CER
basis
($ Canadian millions, post-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
|
2022
|
Transitional net
income (loss) attributed to shareholders:
|
|
|
|
|
|
Asia
|
$ 493
|
$
176
|
$ (227)
|
$
205
|
$
647
|
Canada
|
120
|
481
|
271
|
326
|
1,198
|
U.S.
|
(106)
|
314
|
355
|
885
|
1,448
|
Global WAM
|
401
|
287
|
150
|
283
|
1,121
|
Corporate and
Other
|
320
|
(481)
|
(381)
|
(374)
|
(916)
|
Total transitional
net income (loss) attributed to shareholders
|
1,228
|
777
|
168
|
1,325
|
3,498
|
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
|
CER
adjustment(1)
|
|
|
|
|
|
Asia
|
$
14
|
$
32
|
$
34
|
$
62
|
$
142
|
Canada
|
(3)
|
13
|
7
|
12
|
29
|
U.S.
|
(2)
|
16
|
(4)
|
58
|
68
|
Global WAM
|
(1)
|
8
|
2
|
8
|
17
|
Corporate and
Other
|
(10)
|
(23)
|
(22)
|
(31)
|
(86)
|
Total CER adjustment
- transitional net income attributed to shareholders
|
(2)
|
46
|
17
|
109
|
170
|
Preferred share
dividends and other equity distributions
|
-
|
-
|
-
|
-
|
-
|
Common shareholders'
transitional net income (loss)
|
$
(2)
|
$
46
|
$
17
|
$
109
|
$
170
|
Transitional net
income (loss) attributed to shareholders, CER basis
|
|
|
|
|
|
Asia
|
$ 507
|
$
208
|
$ (193)
|
$
267
|
$
789
|
Canada
|
117
|
494
|
278
|
338
|
1,227
|
U.S.
|
(108)
|
330
|
351
|
943
|
1,516
|
Global WAM
|
400
|
295
|
152
|
291
|
1,138
|
Corporate and
Other
|
310
|
(504)
|
(403)
|
(405)
|
(1,002)
|
Total transitional
net income (loss) attributed to shareholders, CER
basis
|
1,226
|
823
|
185
|
1,434
|
3,668
|
Preferred share
dividends and other equity distributions, CER basis
|
(97)
|
(51)
|
(60)
|
(52)
|
(260)
|
Common shareholders'
net income (loss), CER basis
|
$
1,129
|
$
772
|
$
125
|
$
1,382
|
$
3,408
|
Asia transitional
net income attributed to shareholders, U.S. dollars
|
|
|
|
|
|
Asia transitional net
income (loss) attributed to shareholders, US
$(2)
|
$ 363
|
$
134
|
$ (177)
|
$
161
|
$
481
|
CER adjustment, US
$(1)
|
9
|
19
|
35
|
35
|
98
|
Asia transitional
net income (loss) attributed to shareholders, U.S. $, CER
basis(1)
|
$ 372
|
$
153
|
$ (142)
|
$
196
|
$
579
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q23.
|
(2)
|
Asia transitional net
income attributed to shareholders (post-tax) in Canadian dollars is
translated to U.S. dollars using the U.S. dollar Statement of
Income rate for the reporting period.
|
CAUTION REGARDING FORWARD-LOOKING STATEMENTS:
From time to time, Manulife makes written and/or oral
forward-looking statements, including in this document. In
addition, our
representatives may make forward-looking statements orally to analysts, investors, the media and others.
All such statements are made pursuant to the "safe
harbour" provisions of Canadian provincial securities laws and
the U.S. Private Securities Litigation Reform Act of 1995.
The forward-looking statements in this document include, but are
not limited to, statements with respect to the closing of the
reinsurance transaction in respect of certain legacy blocks, the
closing of the acquisition
of CQS, 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; our inability to withdraw cash
from subsidiaries; and the timing to close the reinsurance
transactions and CQS transaction described in this document.
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 2023 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, 2023, 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