TSX/NYSE/PSE: MFC SEHK: 945
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TORONTO, Feb. 19,
2025 /PRNewswire/ - Manulife Financial Corporation
("Manulife" or the "Company") reported banner full year and fourth
quarter results for the period ended December 31, 2024, with record core earnings,
30%+ increases across top-line business metrics1,
double-digit core EPS2 growth for the full year, as well
as declaring a common share dividend increase of 10%.
Key highlights for full year 2024 and the fourth quarter ("4Q24")
include:
- Core earnings3 of $7.2
billion in 2024, up 8% on a constant exchange rate
basis4 from 2023. Core earnings of $1.9 billion in 4Q24, up 6% from the fourth
quarter of 2023 ("4Q23")
- Net income attributed to shareholders of $5.4 billion in 2024, up $0.3 billion from 2023, and $1.6 billion in 4Q24, in line with 4Q23
- Core EPS of $3.87 in 2024, up
11%4 from 2023, and $1.03
in 4Q24, up 9% from 4Q23
- Excluding the impact of Global Minimum Taxes
("GMT")5, core EPS2 was $3.97 in 2024, up 14%4 from 2023, and
$1.06 in 4Q24, up 13% from 4Q23
- EPS of $2.84 in 2024, up
8%4 from 2023, and $0.88
in 4Q24, in line with 4Q23
- Core ROE2 of 16.4% in 2024 and 16.5% in 4Q24, and
ROE of 12.0% in 2024 and 14.0% in 4Q24
- Entered into an agreement with RGA to reinsure two blocks of
legacy business, including a younger block of long-term care
("LTC"), our second LTC reinsurance transaction in less than 12
months. The transaction was completed in the first quarter of 2025
with an effective date of January 1,
2025
- LICAT ratio6 of 137% in 4Q24, in line with prior
quarter
- Remittances7 of $7.0
billion in 2024 compared with $5.5
billion in 2023
- Purchased and cancelled 4.6% of common shares outstanding, or
more than 82 million common shares, for $3.2 billion in
2024
- Also announced today:
- A 10% increase in the quarterly dividend per common share,
and
- A Normal Course Issuer Bid ("NCIB") that permits repurchase of
up to 3% of outstanding common shares, commencing in late
February 20258
"2024 was a banner year for Manulife on many fronts and we
finished the year with very strong results. We delivered record
insurance new business results for the full year, including 30%+
increases year-over-year across APE sales7, new business
CSM4 and new business value7.
Asia continued to lead with
substantial top-line growth and a 27% increase in core earnings.
Global WAM ended the year with over $13
billion of net inflows7, a 220 basis point
increase in core EBITDA margin2 and 30% core
earnings growth."
"We continued to build on our momentum to deliver for
shareholders and customers. We closed the largest LTC reinsurance
transaction in the industry and announced a second LTC risk
transfer deal within 12 months. We also made significant progress
towards our digital, customer leadership ambition, achieving a
record high Net Promoter Score and generating over $600 million of benefits9 from our
initiatives globally in 2024. We have created a robust foundation
for sustained growth. I am confident about the future
of Manulife and the value that we will continue
to generate for our shareholders."
— Roy Gori, Manulife
President & Chief Executive Officer
"We continued to make progress against our targets announced at
Investor Day. Our core ROE increased to 16.4% and core EPS grew
11%, despite the impact of Global Minimum Tax. Expense efficiency
ratio2 improved further and ended at 44.8% for the
full year. We remitted $7.0 billion
in 2024, reflecting our strong cash generating capability across
our global operations and benefiting from our capital optimization
initiatives. We returned $6.1 billion
of capital to shareholders, including buying back 4.6% of
outstanding common shares. As announced today,
the Board approved
a 10% increase in the common share
dividend, and we are launching a new NCIB
program to repurchase up to 3% of our outstanding common
shares."
— Colin Simpson, Manulife
Chief Financial Officer
Results at a Glance
|
Quarterly
Results
|
Full Year
Results
|
|
($ millions, unless
otherwise stated)
|
4Q24
|
4Q23
|
Change4,7
|
2024
|
2023
|
Change
|
|
Net Income attributed to shareholders
|
$
1,638
|
$
1,659
|
(3) %
|
$
5,385
|
$ 5,103
|
5 %
|
|
Core Earnings
|
$
1,907
|
$
1,773
|
6 %
|
$
7,226
|
$ 6,684
|
8 %
|
|
EPS ($)
|
$
0.88
|
$
0.86
|
0 %
|
$
2.84
|
$
2.61
|
8 %
|
|
Core EPS ($)
|
$
1.03
|
$
0.92
|
9 %
|
$
3.87
|
$
3.47
|
11 %
|
|
ROE
|
14.0 %
|
15.3 %
|
-1.3 pps
|
12.0 %
|
11.9 %
|
0.1 pps
|
|
Core ROE
|
16.5 %
|
16.4 %
|
0.1 pps
|
16.4 %
|
15.9 %
|
0.5 pps
|
|
Book value per common share
($)
|
$
25.63
|
$ 22.36
|
15 %
|
$
25.63
|
$ 22.36
|
15 %
|
|
Adjusted BV per common share
($)2
|
$
37.02
|
$ 32.19
|
15 %
|
$
37.02
|
$ 32.19
|
15 %
|
|
Financial leverage ratio
(%)2
|
23.7 %
|
24.3 %
|
-0.6 pps
|
23.7 %
|
24.3 %
|
-0.6 pps
|
|
APE sales
|
$
2,248
|
$ 1,550
|
42 %
|
$
8,385
|
$ 6,440
|
30 %
|
|
New business CSM
|
$
842
|
$
626
|
32 %
|
$
2,887
|
$ 2,167
|
32 %
|
|
NBV
|
$
842
|
$
630
|
31 %
|
$
3,077
|
$ 2,324
|
32 %
|
|
Global WAM
net flows ($ billions)
|
$
1.2
|
$
(1.3)
|
-
|
$
13.3
|
$
4.5
|
196 %
|
Results by Segment
|
Quarterly Results
|
Full Year
Results
|
|
($ millions, unless
otherwise stated)
|
4Q24
|
4Q23
|
Change7
|
2024
|
2023
|
Change
|
|
Asia (US$)
|
|
|
Net Income attributed to shareholders
|
$
417
|
$
452
|
(8) %
|
$
1,717
|
$
995
|
71 %
|
|
Core Earnings
|
477
|
414
|
16 %
|
1,890
|
1,518
|
27 %
|
|
APE sales
|
1,187
|
731
|
63 %
|
4,429
|
3,313
|
36 %
|
|
New Business CSM
|
419
|
303
|
38 %
|
1,567
|
1,148
|
38 %
|
|
NBV
|
418
|
306
|
37 %
|
1,612
|
1,206
|
35 %
|
|
Canada
|
|
|
|
|
|
|
|
Net Income attributed to shareholders
|
$
439
|
$
365
|
20 %
|
$
1,221
|
$ 1,191
|
3 %
|
|
Core Earnings
|
390
|
352
|
11 %
|
1,568
|
1,487
|
5 %
|
|
APE sales
|
376
|
363
|
4 %
|
1,689
|
1,409
|
20 %
|
|
New Business CSM
|
116
|
70
|
66 %
|
357
|
224
|
59 %
|
|
NBV
|
168
|
139
|
21 %
|
627
|
490
|
28 %
|
|
U.S. (US$)
|
|
|
Net Income attributed to shareholders
|
$
73
|
$
146
|
(50) %
|
$
96
|
$
473
|
(80) %
|
|
Core Earnings
|
294
|
349
|
(16) %
|
1,234
|
1,304
|
(5) %
|
|
APE sales
|
151
|
141
|
7 %
|
454
|
416
|
9 %
|
|
New Business CSM
|
100
|
105
|
(5) %
|
278
|
292
|
(5) %
|
|
NBV
|
63
|
54
|
17 %
|
175
|
153
|
14 %
|
|
Global WAM
|
|
|
Net Income attributed to shareholders
|
$
384
|
$
365
|
3 %
|
$
1,597
|
$ 1,297
|
22 %
|
|
Core Earnings
|
481
|
353
|
34 %
|
1,736
|
1,321
|
30 %
|
|
Gross flows ($
billions)7
|
43.5
|
35.1
|
21 %
|
171.7
|
143.4
|
19 %
|
|
Average AUMA ($ billions)7
|
1,015
|
817
|
21 %
|
946
|
813
|
15 %
|
|
Core EBITDA
margin
|
28.6 %
|
25.7 %
|
290 bps
|
27.1 %
|
24.9 %
|
220 bps
|
Strategic Highlights
We continued
to transform our portfolio and accelerate new business growth through expanded
market offerings and enhanced distribution capabilities
During 2024, we closed the largest LTC reinsurance transaction
in the industry and the largest universal life reinsurance
transaction in Canada. We also
entered into an agreement in 4Q24 for a second LTC reinsurance
transaction in less than 12 months on a younger LTC block, further
validating the prudence
of our reserves and assumptions. These transactions
also further transformed our business profile to higher return and
lower risk.
In Asia, we expanded Manulife Pro, our proprietary
proposition for top-tier agents, to Indonesia, Japan and Hong
Kong. The proposition provides select agents with
differentiated resources and tools, including dedicated
underwriting support and enhanced customer engagement services with
access to customer leads. This initiative contributed to improved
agent productivity, demonstrated by our 23% year-over-year growth
in agency APE sales in 2024. With this expansion, Manulife Pro
is now available in five of our markets10.
In addition, we further addressed the complex and evolving financial needs of high-net-worth individuals through a
focus on innovative customer solutions. This includes the launch of
two new products that cater to the protection, legacy planning and
wealth management needs of high-net-worth customers.
In Global
WAM, we completed the acquisition of CQS, a U.K.-based multi-sector alternative credit manager,
which positively contributed to Global WAM net flows and core
earnings in 2024. We have leveraged these expanded investment
capabilities to launch the John Hancock Multi Asset Credit
Fund in U.S. Retail. This fund is a strong addition to our growing
lineup of liquid and semi-liquid alternative offerings which are
part of our larger credit franchise.
In Canada,
we introduced a guaranteed issue
life product, designed
to provide accessible life insurance coverage
with guaranteed fixed premiums for a wide range of individuals
seeking straightforward and reliable life insurance
coverage. Also, we refreshed our suite of segregated fund
options with a new product that features a simplified,
all-inclusive fee structure and offers Canadians an investment
solution to help with their estate planning needs.
In the U.S., we entered into a strategic distribution
collaboration with Annexus — one of the nation's leading
independent retirement planning product design and distribution
companies — to expand our portfolio of indexed account offerings
and reach a wider market with our Protection Indexed Universal Life
solution.
We have made significant progress on our ambition to be the most digital,
customer-centric company in our industry
We are driving value from generative AI by rapidly scaling
use cases across our organization. We had 27 use
cases in production, with another 32 in development at the end of 2024.
Our continued investment in foundational
capabilities has put us in a strong position, and enabled faster
and easier execution in deploying AI-based solutions. We are
able to quickly scale use cases, enhancing value for our customers
and our business.
In Asia, we strengthened
agent-customer interactions through the launch of an innovative
generative AI sales tool in both Singapore and Japan. It enables our agents to automatically
create personalized engagement strategies to offer customers the
right solutions at the right time based on their needs,
preferences, demographic data and transaction histories.
In Global WAM, we advanced and broadened our wealth planning
and advice business
with the implementation of a new advisor retail
wealth platform and an AI-powered planning tool in
Canada, and a new AI-powered
sales enablement app in Asia. These tools improve
productivity for advisors and agents and deliver an enhanced
digital experience for investors.
In Canada, we entered into a multi-year loyalty rewards partnership agreement with Aeroplan.
We launched the
Aeroplan Rewards and Challenges program in the Manulife mobile
app that enables eligible group benefits plan
members to earn reward points by completing programs and
benefits-related activities to encourage health and well-being.
In the U.S., we continued to modernize the end-to-end purchase
and delivery process by introducing a term solution with digital
policy delivery, payment capabilities, and easy registration
process to the Life Customer Storefront as well as Vitality's
website.
Record core earnings for full year and 4Q24 reflecting strong growth in our highest
potential businesses11
Core earnings of $7.2 billion
in 2024, up 8% from 2023, and $1.9
billion in 4Q24, up 6% from 4Q23
The increase
in 2024 reflected strong business growth
led by Global WAM and Asia, and a lower
net charge in the provision for Expected Credit
Loss, which more than offset the impacts of GMT and reinsurance
transactions that were closed earlier in 2024. Excluding the impact
of GMT, full year 2024 core earnings increased 10% from the prior
year4.
In 4Q24, strong momentum
continued in Global WAM, Asia and Canada where we generated double-digit growth
compared with 4Q23.
- Asia core earnings were up 16%
in 4Q24, reflecting continued business growth momentum and impacts
from the annual updates to actuarial methods and assumptions.
- Global WAM core earnings increased 34% primarily driven by
higher net fee income from favourable market impacts and positive
net flows. In addition, 4Q24 core earnings benefited from certain
non- recurring tax true-ups and tax benefits, performance fees from
CQS, and continued expense discipline.
- In Canada, more favourable
insurance experience overall, and business growth in Group
Insurance drove an 11% increase in 4Q24 core earnings.
- U.S. core earnings decreased 16%, reflecting lower investment
spreads, impacts from the previously completed reinsurance
transaction and the annual review of actuarial methods and
assumptions.
- In Corporate and Other, core earnings decreased $72 million, mainly due to the impact of GMT and
higher interest on capital allocated to operating segments.
Net Income attributed to shareholders of $5.4 billion in 2024, $0.3
billion higher compared with 2023, and $1.6 billion
in 4Q24, in line with 4Q23
The $0.3 billion increase
in 2024 net income was driven by core earnings
growth and improved market experience, partially
offset by a higher net charge related to the updates to actuarial
methods and assumptions and lower tax- related benefits. The net
charge from market experience in 2024 was primarily related to
lower-than-expected returns on alternative long-duration assets
("ALDA"), driven by real estate and private equity investments, as
well as realized loss due to the sale of debt instruments related
to the reinsurance transactions that were closed in 2024. This
realized loss due to the sale of debt instruments was broadly
offset by an associated change in Other Comprehensive Income,
resulting in a neutral impact to book value.
4Q24 net income was in line with prior year, as core earnings
growth offset the non-recurrence of the impact from updates to
actuarial methods and assumptions in 4Q23. The net charge from
market experience in 4Q24 was
primarily related to lower-than-expected returns on public equity and lower-than-expected returns
on ALDA, driven by real estate investments.
30%+ increases in insurance new business results
and $13.3 billion
of net inflows in Global WAM
APE sales, new
business CSM and NBV hit record
levels in 2024 and increased 30%, 32% and 32%,
respectively, year-over-year. We achieved our four best quarters
ever in 2024 for all three metrics
- Asia led with continued
momentum throughout 2024 and achieved substantial top-line growth,
generating 36%, 38% and 35% increases in APE sales, new business
CSM and NBV, respectively, driven by broad- based growth across
Asia, led by Hong Kong. NBV margin7 remained
resilient at 40.7%.
- In Canada, APE sales and NBV
increased 20% and 28%, respectively, driven by higher sales volumes
in Group Insurance across all group benefits markets, in
participating life insurance and in segregated fund products. New
business CSM increased 59%, benefiting from higher sales volumes
and higher margins from Individual Insurance and Annuities.
- In the U.S., APE sales and NBV increased 9% and 14%,
respectively, mainly related to increased demand from affluent
customers for accumulation insurance products. New business CSM
decreased 5% driven by product mix and the impact of interest
rates, partially offset by higher sales volumes.
Our 4Q24 new business
results demonstrated strong momentum with year-over-year growth of 42%, 32%
and 31% in APE sales, new business CSM and NBV,
respectively
- Asia continued to generate
positive momentum in 4Q24 and grew APE sales, new business CSM and
NBV by 63%, 38% and 37%, respectively, driven by broad-based growth
across Asia.
- Canada increased APE sales,
new business CSM and NBV by 4%, 66% and 21%, respectively,
reflecting strong sales growth in participating life insurance and
segregated fund products. Lower Group Insurance sales modestly
impacted the overall growth in APE sales and NBV.
- In the U.S., 4Q24 APE sales and NBV increased 7% and 17%,
respectively, driven by increased demand from
affluent customers for accumulation insurance
products. New business
CSM decreased 5% driven by product mix and the
impact of interest rates, partially offset by higher sales
volumes.
Global WAM net inflows of $13.3
billion in 2024, $8.8 billion
higher compared with net inflows of $4.5
billion in 2023, reflecting strong retail net flows and improved net flows in retirement. This contributes to
Global WAM's track record of generating positive net flows in 14
out of the past 15 years
- Retirement net inflows of $0.7
billion in 2024 increased from net outflows of $4.0 billion in 2023, primarily driven by the
non-recurrence of large-case retirement plan redemptions by a
single sponsor in the U.S. and higher new retirement plan sales,
partially offset by higher member withdrawals.
- Retail net inflows of $6.8
billion in 2024 increased from net outflows of $0.5 billion in 2023, driven by increased demand
for investment products amid a constructive equity market and
improved investor sentiment.
- Institutional Asset Management net inflows of $5.7 billion in 2024 decreased compared with net
inflows of $9.0 billion in 2023,
reflecting lower net flows from fixed income and equity
mandates.
Global WAM net inflows
of $1.2 billion
in 4Q24, increased $2.5 billion compared
with net outflows of $1.3 billion in 4Q23, driven by
continued strong retail net flows across all geographies
- Retirement net outflows of $1.9
billion in 4Q24 improved from net outflows of $2.5 billion in 4Q23, primarily driven by the
non-recurrence of a large-case retirement plan redemption in the
U.S. and higher member contributions, partially offset by higher
withdrawals.
- Retail net inflows of $1.3
billion in 4Q24 improved from net outflows of $1.0 billion in 4Q23, driven by increased demand
for investment products amid a constructive equity market and
improved investor sentiment.
- Institutional Asset Management net inflows of $1.8 billion in 4Q24 decreased compared with net
inflows of $2.1 billion in 4Q23, as
higher net flows from fixed income mandates were more than offset
by lower net flows in equity mandates.
CSM balance
increased 3% with contribution from organic CSM movement of 6%4,7
CSM was $22,127 million as at
December 31, 2024
CSM increased $1,687 million
compared with December 31, 2023.
Organic CSM movement contributed $1,231
million of the increase in 2024, driven by the impact of new
business and interest accretion, partially offset by
amortization recognized in core earnings
and unfavourable insurance
experience. Inorganic CSM movement was an
increase of $456 million in 2024,
primarily driven by the favourable impacts of changes in foreign
currency exchange rates, partially offset by the impacts of
reinsurance transactions and the annual review of actuarial methods
and assumptions. Post-tax CSM net of NCI3 was
$19,682 million as at December 31, 2024.
|
____________________________________
|
|
(1)
|
Comprised of annualized premium
equivalent ("APE") sales,
new business contractual service margin net of NCI ("new business
CSM"), new business value ("NBV"), and Global Wealth
and Asset Management ("Global WAM") net flows.
|
|
(2)
|
Diluted core earnings per common share
("core EPS"), core EPS excluding
the impact of GMT, core ROE, core EBITDA margin,
expense efficiency ratio, adjusted book value per common
share ("adjusted BV per common share") and financial leverage ratio
are non-GAAP ratios.
|
|
(3)
|
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 2024 Management's Discussion
and Analysis ("2024 MD&A").
|
|
(4)
|
Percentage growth /
declines in core earnings, core EPS, core EPS excluding the impact
of GMT, diluted earnings (loss) per share ("EPS"), net
income attributed to shareholders, new business CSM, core earnings
excluding the impact of GMT and contractual service margin net of NCI ("CSM") are stated on a constant
exchange rate basis and are non-GAAP ratios.
|
|
(5)
|
On June 20, 2024, Canada enacted the Global Minimum
Tax Act. The impact was reflected in Corporate & Other in situations where GMT was not substantively enacted
in local jurisdictions where we operated as of December 31,
2024.
|
|
(6)
|
Life
Insurance Capital Adequacy Test ("LICAT") ratio
of The Manufacturers Life Insurance Company ("MLI") as at December
31, 2024. 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.
|
|
(7)
|
For
more information on remittances, APE sales, NBV, net flows,
gross flows, average
assets under management and administration ("average AUMA") and new business
value margin ("NBV margin"), see "Non-GAAP and other financial
measures" below. In this news release, percentage growth / declines
in APE sales, NBV, net flows, gross flows,
average AUMA and organic CSM are stated on a constant
exchange rate basis.
|
|
(8)
|
See "Caution regarding forward-looking statements" below.
|
|
(9)
|
The
benefits from our global digital,
customer leadership initiatives include expense saves, growth absorption, revenue benefits (margin
businesses) and new business CSM growth
(insurance).
|
|
(10)
|
Manulife Pro is available in Singapore, Vietnam,
Indonesia, Japan and Hong Kong.
|
|
(11)
|
See
"Profitability" in section
1 "Manulife Financial Corporation" and section
8 "Fourth Quarter
Financial Highlights" in our 2024 MD&A for more information on notable
items attributable to core earnings and net income attributed to
shareholders.
|
Earnings Results Conference Call
Manulife will host a conference call and live webcast on its
fourth quarter and full year 2024 results on February 20, 2025, at 8:00
a.m. (ET). To access the conference call, dial
1-800-806-5484 or 1-416-340-2217 (Passcode: 8414068#). Please call
in 15 minutes before the start time. You will be required to
provide your name and
organization to the operator. You may access
the webcast at www.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 22, 2025, by
dialing 1-800-408-3053 or 1-905-694-9451 (Passcode: 7315507#).
The Fourth Quarter 2024 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 2024 MD&A and Consolidated Financial
Statements for the year and the quarter ended December 31, 2024, 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
2024 MD&A and additional information relating to the
Company is available on the SEDAR+ website at
https://www.sedarplus.ca and on the U.S. Securities and Exchange
Commission's ("SEC") website at https://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.
Media Inquiries
Anne Hammer
(201) 925-1213
ahammer@manulife.com
Investor Relations
Hung Ko
(416) 806-9921
hung_ko@manulife.com
Earnings
The following table presents net income attributed to
shareholders, consisting of core earnings and details of the items
excluded from core earnings:
|
Quarterly
Results
|
Full Year
Results
|
|
($
millions)
|
4Q24
|
3Q24
|
4Q23
|
2024
|
2023
|
|
Core earnings
|
|
|
|
|
|
|
Asia
|
$
666
|
$
619
|
$
564
|
$
2,589
|
$
2,048
|
|
Canada
|
390
|
412
|
352
|
1,568
|
1,487
|
|
U.S.
|
412
|
411
|
474
|
1,690
|
1,759
|
|
Global
Wealth and Asset Management
|
481
|
499
|
353
|
1,736
|
1,321
|
|
Corporate and
Other
|
(42)
|
(113)
|
30
|
(357)
|
69
|
|
Total
core earnings
|
$
1,907
|
$
1,828
|
$
1,773
|
$
7,226
|
$
6,684
|
|
Items
excluded from core earnings:
|
|
|
|
|
|
|
Market experience
gains (losses)
|
(192)
|
186
|
(133)
|
(1,450)
|
(1,790)
|
|
Change in actuarial methods and assumptions that flow
directly through income
|
-
|
(199)
|
119
|
(199)
|
105
|
|
Restructuring charge
|
(52)
|
(20)
|
(36)
|
(72)
|
(36)
|
|
Reinsurance
transactions, tax-related items and other
|
(25)
|
44
|
(64)
|
(120)
|
140
|
|
Net income attributed to shareholders
|
$
1,638
|
$
1,839
|
$
1,659
|
$
5,385
|
$
5,103
|
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 interest, taxes, depreciation and amortization
("core EBITDA"); core expenses, core earnings available to common
shareholders excluding the impact of GMT; 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"); core EPS excluding the impact of GMT;
expense efficiency ratio; adjusted book value per common share;
financial leverage ratio; 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, 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");
NBV margin; 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 2024
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 2024 MD&A, which is
incorporated by reference.
Reconciliation of core earnings to net income attributed to
shareholders —
2024
($ millions, post-tax and based on actual
foreign exchange rates
in effect in the applicable reporting period, unless
otherwise stated)
|
2024
|
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Income (loss) before
income taxes
|
$
3,197
|
$
1,679
|
$
132
|
$
1,747
|
$
335
|
$
7,090
|
|
Income
tax (expenses) recoveries
|
|
|
|
|
|
|
|
Core earnings
|
(267)
|
(399)
|
(408)
|
(171)
|
(21)
|
(1,266)
|
|
Items
excluded from core earnings
|
(193)
|
46
|
411
|
23
|
(233)
|
54
|
|
Income
tax (expenses) recoveries
|
(460)
|
(353)
|
3
|
(148)
|
(254)
|
(1,212)
|
|
Net income (post-tax)
|
2,737
|
1,326
|
135
|
1,599
|
81
|
5,878
|
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
|
Non-controlling interests ("NCI")
|
241
|
-
|
-
|
2
|
4
|
247
|
|
Participating policyholders
|
141
|
105
|
-
|
-
|
-
|
246
|
|
Net income (loss)
attributed to shareholders (post-tax)
|
2,355
|
1,221
|
135
|
1,597
|
77
|
5,385
|
|
Less: Items excluded from core earnings (post-tax)
|
|
|
|
|
|
|
|
Market
experience gains (losses)
|
(178)
|
(384)
|
(1,327)
|
4
|
435
|
(1,450)
|
|
Changes in actuarial methods and assumptions that
flow directly through income
|
(5)
|
2
|
(202)
|
-
|
6
|
(199)
|
|
Restructuring charge
|
-
|
(6)
|
-
|
(66)
|
-
|
(72)
|
|
Reinsurance transactions, tax related
items and other
|
(51)
|
41
|
(26)
|
(77)
|
(7)
|
(120)
|
|
Core earnings (post-tax)
|
$
2,589
|
$
1,568
|
$
1,690
|
$
1,736
|
$
(357)
|
$
7,226
|
|
Income
tax on core earnings (see above)
|
267
|
399
|
408
|
171
|
21
|
1,266
|
|
Core earnings (pre-tax)
|
$
2,856
|
$
1,967
|
$
2,098
|
$
1,907
|
$
(336)
|
$
8,492
|
Core earnings, CER
basis and U.S. dollars
— 2024
($ millions, post-tax and based on actual
foreign exchange rates
in effect in the applicable reporting period, unless
otherwise stated)
|
2024
|
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Core earnings (post-tax)
|
$
2,589
|
$
1,568
|
$
1,690
|
$
1,736
|
$
(357)
|
$
7,226
|
|
CER adjustment(1)
|
51
|
-
|
36
|
27
|
4
|
118
|
|
Core earnings, CER basis (post-tax)
|
$
2,640
|
$
1,568
|
$
1,726
|
$
1,763
|
$
(353)
|
$
7,344
|
|
Income tax on core earnings, CER basis(2)
|
272
|
399
|
417
|
171
|
21
|
1,280
|
|
Core earnings, CER basis (pre-tax)
|
$
2,912
|
$
1,967
|
$
2,143
|
$
1,934
|
$
(332)
|
$
8,624
|
|
Core earnings (U.S.
dollars) – Asia
and U.S. segments
Core earnings (post-tax)(3), US $
|
$
1,890
|
|
$
1,234
|
|
|
|
|
CER adjustment US $(1)
|
(1)
|
|
-
|
|
|
|
|
Core earnings, CER basis (post-tax), US $
|
$
1,889
|
|
$
1,234
|
|
|
|
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q24.
|
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 4Q24.
|
|
(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 2024 core earnings.
|
Reconciliation of core earnings 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)
|
2023
|
|
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
|
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. dollar
— 2023
($ millions, post-tax and based on actual
foreign exchange rates
in effect in the applicable reporting period, unless
otherwise stated)
|
2023
|
|
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)
|
26
|
-
|
65
|
32
|
9
|
132
|
|
Core earnings, CER basis (post-tax)
|
$
2,074
|
$
1,487
|
$
1,824
|
$
1,353
|
$
78
|
$ 6,816
|
|
Income tax on core earnings, CER basis(2)
|
280
|
378
|
416
|
206
|
(99)
|
1,181
|
|
Core earnings, CER basis (pre-tax)
|
$
2,354
|
$
1,865
|
$
2,240
|
$
1,559
|
$
(21)
|
$ 7,997
|
|
Core earnings (U.S.
dollars) – Asia
and U.S. segments
Core earnings (post-tax)(3), US $
|
$
1,518
|
|
$
1,304
|
|
|
|
|
CER adjustment US $(1)
|
(34)
|
|
-
|
|
|
|
|
Core earnings, CER basis (post-tax), US $
|
$
1,484
|
|
$
1,304
|
|
|
|
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 4Q24.
|
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 4Q24.
|
|
(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 to net income attributed to
shareholders —
4Q24
($ millions, post-tax and based on actual
foreign exchange rates
in effect in the applicable reporting period, unless
otherwise stated)
|
4Q24
|
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Income (loss) before
income taxes
|
$
781
|
$
579
|
$
112
|
$
419
|
$
222
|
$
2,113
|
|
Income
tax (expenses) recoveries
|
|
|
|
|
|
|
|
Core earnings
|
(71)
|
(97)
|
(98)
|
(61)
|
(18)
|
(345)
|
|
Items
excluded from core earnings
|
(85)
|
(20)
|
89
|
26
|
(71)
|
(61)
|
|
Income
tax (expenses) recoveries
|
(156)
|
(117)
|
(9)
|
(35)
|
(89)
|
(406)
|
|
Net income (post-tax)
|
625
|
462
|
103
|
384
|
133
|
1,707
|
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
|
Non-controlling interests ("NCI")
|
18
|
-
|
-
|
-
|
4
|
22
|
|
Participating policyholders
|
24
|
23
|
-
|
-
|
-
|
47
|
|
Net income (loss)
attributed to shareholders (post-tax)
|
583
|
439
|
103
|
384
|
129
|
1,638
|
|
Less: Items excluded from core earnings (post-tax)
|
|
|
|
|
|
|
|
Market
experience gains (losses)
|
(83)
|
55
|
(309)
|
(23)
|
168
|
(192)
|
|
Changes in actuarial methods and assumptions that
flow directly through income
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Restructuring charge
|
-
|
(6)
|
|
-
|
(46)
|
-
|
(52)
|
|
Reinsurance transactions, tax related
items and other
|
-
|
-
|
|
-
|
(28)
|
3
|
(25)
|
|
Core earnings (post-tax)
|
$
666
|
$
390
|
$
412
|
$
481
|
$
(42)
|
$
1,907
|
|
Income
tax on core earnings (see above)
|
71
|
97
|
98
|
61
|
18
|
345
|
|
Core earnings (pre-tax)
|
$
737
|
$
487
|
$
510
|
$
542
|
$
(24)
|
$
2,252
|
|
|
|
|
|
|
|
|
|
|
Core earnings, CER
basis and U.S. dollars
— 4Q24
($ millions, post-tax and based on actual
foreign exchange rates
in effect in the applicable reporting period, unless
otherwise stated)
|
4Q24
|
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Core earnings (post-tax)
|
$
666
|
$
390
|
$
412
|
$
481
|
$
(42)
|
$
1,907
|
|
CER adjustment(1)
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Core earnings, CER basis (post-tax)
|
$
666
|
$
390
|
$
412
|
$
481
|
$
(42)
|
$
1,907
|
|
Income tax on core earnings, CER basis(2)
|
71
|
97
|
98
|
61
|
18
|
345
|
|
Core earnings, CER basis (pre-tax)
|
$
737
|
$
487
|
$
510
|
$
542
|
$
(24)
|
$
2,252
|
|
Core earnings (U.S.
dollars) – Asia
and U.S. segments
Core earnings (post-tax)(3), US $
|
$
477
|
|
$
294
|
|
|
|
|
CER adjustment US $(1)
|
-
|
|
-
|
|
|
|
|
Core earnings, CER basis (post-tax), US $
|
$
477
|
|
$
294
|
|
|
|
|
(1)
|
The impact of updating foreign
exchange rates to that which was used in 4Q24.
|
|
(2)
|
Income tax on core earnings
adjusted to reflect the foreign exchange
rates for the Statement of Income in effect for 4Q24.
|
|
(3)
|
Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange
rate for 4Q24.
|
Reconciliation of core earnings to net income attributed to
shareholders —
3Q24
($ millions, post-tax and based on actual
foreign exchange rates
in effect in the applicable reporting period, unless
otherwise stated)
|
3Q24
|
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Income (loss) before
income taxes
|
$
1,059
|
$
578
|
$
18
|
$
519
|
$
167
|
$
2,341
|
|
Income
tax (expenses) recoveries
|
|
|
|
|
|
|
|
Core earnings
|
(65)
|
(104)
|
(112)
|
(6)
|
(28)
|
(315)
|
|
Items
excluded from core earnings
|
26
|
(10)
|
99
|
(14)
|
(60)
|
41
|
|
Income
tax (expenses) recoveries
|
(39)
|
(114)
|
(13)
|
(20)
|
(88)
|
(274)
|
|
Net income (post-tax)
|
1,020
|
464
|
5
|
499
|
79
|
2,067
|
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
|
Non-controlling interests ("NCI")
|
130
|
-
|
-
|
1
|
-
|
131
|
|
Participating policyholders
|
63
|
34
|
-
|
-
|
-
|
97
|
|
Net income (loss)
attributed to shareholders (post-tax)
|
827
|
430
|
5
|
498
|
79
|
1,839
|
|
Less: Items excluded from core earnings (post-tax)
|
|
|
|
|
|
|
|
Market
experience gains (losses)
|
213
|
16
|
(204)
|
28
|
133
|
186
|
|
Changes in actuarial methods and assumptions that
flow directly through income
|
(5)
|
2
|
(202)
|
-
|
6
|
(199)
|
|
Restructuring charge
|
-
|
-
|
-
|
(20)
|
-
|
(20)
|
|
Reinsurance transactions, tax related
items and other
|
-
|
-
|
-
|
(9)
|
53
|
44
|
|
Core earnings (post-tax)
|
$
619
|
$
412
|
$
411
|
$
499
|
$
(113)
|
$
1,828
|
|
Income
tax on core earnings (see above)
|
65
|
104
|
112
|
6
|
28
|
315
|
|
Core earnings (pre-tax)
|
$
684
|
$
516
|
$
523
|
$
505
|
$
(85)
|
$
2,143
|
Core earnings, CER
basis and U.S. dollars
— 3Q24
($ millions, post-tax and based on actual
foreign exchange rates
in effect in the applicable reporting period, unless
otherwise stated)
|
3Q24
|
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Core earnings (post-tax)
|
$
619
|
$
412
|
$
411
|
$
499
|
$
(113)
|
$
1,828
|
|
CER adjustment(1)
|
12
|
-
|
11
|
10
|
1
|
34
|
|
Core earnings, CER basis (post-tax)
|
$
631
|
$
412
|
$
422
|
$
509
|
$
(112)
|
$
1,862
|
|
Income tax on core earnings, CER basis(2)
|
66
|
104
|
115
|
5
|
28
|
318
|
|
Core earnings, CER basis (pre-tax)
|
$
697
|
$
516
|
$
537
|
$
514
|
$
(84)
|
$
2,180
|
|
Core earnings (U.S.
dollars) – Asia
and U.S. segments
Core earnings (post-tax)(3), US $
|
$
453
|
|
$
302
|
|
|
|
|
CER adjustment US $(1)
|
(2)
|
|
-
|
|
|
|
|
Core earnings, CER basis (post-tax), US $
|
$
451
|
|
$
302
|
|
|
|
|
(1)
|
The impact of updating foreign
exchange rates to that which was used in 4Q24.
|
|
(2)
|
Income tax on core earnings
adjusted to reflect the foreign exchange
rates for the Statement of Income in effect for 4Q24.
|
|
(3)
|
Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange
rate for 3Q24.
|
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)
|
4Q23
|
|
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
|
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
($ millions, post-tax and based on actual
foreign exchange rates
in effect in the applicable reporting period, unless
otherwise stated)
|
4Q23
|
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Core earnings (post-tax)
|
$
564
|
$
352
|
$
474
|
$
353
|
$
30
|
$
1,773
|
|
CER adjustment(1)
|
11
|
-
|
13
|
7
|
3
|
34
|
|
Core earnings, CER basis (post-tax)
|
$
575
|
$
352
|
$
487
|
$
360
|
$
33
|
$
1,807
|
|
Income tax on core earnings, CER basis(2)
|
78
|
87
|
116
|
56
|
(38)
|
299
|
|
Core earnings, CER basis (pre-tax)
|
$
653
|
$
439
|
$
603
|
$
416
|
$
(5)
|
$
2,106
|
|
Core earnings (U.S.
dollars) – Asia
and U.S. segments
Core earnings (post-tax)(3), US $
|
$
414
|
|
$
349
|
|
|
|
|
CER adjustment US $(1)
|
(3)
|
|
(1)
|
|
|
|
|
Core earnings, CER basis (post-tax), US $
|
$
411
|
|
$
348
|
|
|
|
|
(1)
|
The impact of updating foreign
exchange rates to that which was used in 4Q24.
|
|
(2)
|
Income tax on core earnings
adjusted to reflect the foreign exchange
rates for the Statement of Income in effect for 4Q24.
|
|
(3)
|
Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange
rate for 4Q23.
|
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
|
|
4Q24
|
3Q24
|
2Q24
|
1Q24
|
4Q23
|
2024
|
2023
|
|
Core earnings
|
$
1,907
|
$
1,828
|
$
1,737
|
$
1,754
|
$
1,773
|
$
7,226
|
$
6,684
|
|
Less: Preferred share dividends
|
101
|
56
|
99
|
55
|
99
|
311
|
303
|
|
Core earnings available to common shareholders
|
1,806
|
1,772
|
1,638
|
1,699
|
1,674
|
6,915
|
6,381
|
|
CER adjustment(1)
|
-
|
34
|
36
|
48
|
34
|
118
|
132
|
|
Core earnings available to common
shareholders, CER basis
|
$
1,806
|
$
1,806
|
$
1,674
|
$
1,747
|
$
1,708
|
$
7,033
|
$
6,513
|
|
(1) The impact of updating foreign
exchange rates to that which was used in 4Q24.
|
Core
ROE
($ millions, unless otherwise stated)
|
Quarterly Results
|
Full Year
Results
|
|
4Q24
|
3Q24
|
2Q24
|
1Q24
|
4Q23
|
2024
|
2023
|
|
Core earnings available to common shareholders (post-
tax)
|
$
1,806
|
$
1,772
|
$
1,638
|
$
1,699
|
$
1,674
|
$
6,915
|
$
6,381
|
|
Annualized core earnings available to common
shareholders
|
$
7,185
|
$
7,049
|
$
6,588
|
$
6,833
|
$
6,641
|
$
6,915
|
$
6,381
|
|
Average common shareholders' equity
(see below)
|
$
43,613
|
$ 42,609
|
$ 41,947
|
$ 40,984
|
$ 40,563
|
$
42,288
|
$ 40,201
|
|
Core ROE (annualized %)
|
16.5 %
|
16.6 %
|
15.7 %
|
16.7 %
|
16.4 %
|
16.4 %
|
15.9 %
|
|
Average common shareholders' equity
|
|
|
|
|
|
|
|
|
Total
shareholders' and other equity
|
$
50,972
|
$ 49,573
|
$ 48,965
|
$ 48,250
|
$ 47,039
|
$
50,972
|
$ 47,039
|
|
Less: Preferred shares and other
equity
|
6,660
|
6,660
|
6,660
|
6,660
|
6,660
|
6,660
|
6,660
|
|
Common shareholders' equity
|
$
44,312
|
$ 42,913
|
$ 42,305
|
$ 41,590
|
$ 40,379
|
$
44,312
|
$ 40,379
|
|
Average common
shareholders' equity
|
$
43,613
|
$ 42,609
|
$ 41,947
|
$ 40,984
|
$ 40,563
|
$
42,288
|
$ 40,201
|
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, 2024
|
Sept 30, 2024
|
June 30, 2024
|
Mar 31, 2024
|
Dec 31, 2023
|
|
CSM
|
$
23,425
|
$
22,213
|
$
21,760
|
$
22,075
|
$
21,301
|
|
Less: CSM for NCI
|
1,298
|
1,283
|
1,002
|
986
|
861
|
|
CSM, net of NCI
|
$
22,127
|
$
20,930
|
$
20,758
|
$
21,089
|
$
20,440
|
|
CER adjustment(1)
|
-
|
618
|
889
|
894
|
1,118
|
|
CSM, net of NCI,
CER basis
|
$
22,127
|
$
21,548
|
$
21,647
|
$
21,983
|
$
21,558
|
|
Post-tax CSM
CSM
|
$
23,425
|
$
22,213
|
$
21,760
|
$
22,075
|
$
21,301
|
|
Marginal
tax rate on CSM
|
(2,599)
|
(2,488)
|
(2,576)
|
(2,650)
|
(2,798)
|
|
Post-tax CSM
|
$
20,826
|
$
19,725
|
$
19,184
|
$
19,425
|
$
18,503
|
|
CSM, net of
NCI
|
$
22,127
|
$
20,930
|
$
20,758
|
$
21,089
|
$
20,440
|
|
Marginal tax rate on
CSM net of NCI
|
(2,445)
|
(2,335)
|
(2,468)
|
(2,542)
|
(2,692)
|
|
Post-tax CSM net of NCI
|
$
19,682
|
$
18,595
|
$
18,290
|
$
18,547
|
$
17,748
|
|
(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 4Q24.
|
Adjusted book value
($ millions)
|
As at
|
Dec 31, 2024
|
Sept 30, 2024
|
June 30, 2024
|
Mar 31, 2024
|
Dec 31, 2023
|
|
Common shareholders' equity
|
$
44,312
|
$
42,913
|
$
42,305
|
$
41,590
|
$
40,379
|
|
Post-tax
CSM, net of NCI
|
19,682
|
18,595
|
18,290
|
18,547
|
17,748
|
|
Adjusted book
value
|
$
63,994
|
$
61,508
|
$
60,595
|
$
60,137
|
$
58,127
|
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
|
|
4Q24
|
3Q24
|
2Q24
|
1Q24
|
4Q23
|
2024
|
2023
|
|
New
business CSM, net of NCI
|
|
|
|
|
|
|
|
Hong Kong
|
$
299
|
$
254
|
$
200
|
$
168
|
$
199
|
$
921
|
$
676
|
|
Japan
|
66
|
86
|
90
|
48
|
42
|
290
|
126
|
|
Asia Other
|
221
|
253
|
188
|
275
|
173
|
937
|
747
|
|
International High Net Worth
|
|
187
|
231
|
|
Mainland China
|
270
|
138
|
|
Singapore
|
391
|
244
|
|
Vietnam
|
17
|
87
|
|
Other Emerging Markets
|
72
|
47
|
|
Asia
|
586
|
593
|
478
|
491
|
414
|
2,148
|
1,549
|
|
Canada
|
116
|
95
|
76
|
70
|
70
|
357
|
224
|
|
U.S.
|
140
|
71
|
74
|
97
|
142
|
382
|
394
|
|
Total new business CSM net of
NCI
|
842
|
759
|
628
|
658
|
626
|
2,887
|
2,167
|
|
Asia NCI
|
-
|
-
|
-
|
-
|
39
|
-
|
142
|
|
Total impact
of new insurance business in CSM
|
$
842
|
$
759
|
$
628
|
$
658
|
$
665
|
$
2,887
|
$
2,309
|
|
New business CSM,
net of NCI, CER adjustment(1),(2)
|
|
|
|
|
|
|
|
Hong Kong
|
$
-
|
$
7
|
$
4
|
$
6
|
$
5
|
$
17
|
$
25
|
|
Japan
|
-
|
1
|
4
|
1
|
(1)
|
6
|
(6)
|
|
Asia Other
|
-
|
4
|
6
|
11
|
6
|
21
|
22
|
|
International High Net Worth
|
|
3
|
9
|
|
Mainland China
|
7
|
4
|
|
Singapore
|
9
|
12
|
|
Vietnam
|
(1)
|
(4)
|
|
Other Emerging Markets
|
3
|
1
|
|
Asia
|
-
|
12
|
14
|
18
|
10
|
44
|
41
|
|
Canada
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|
U.S.
|
-
|
1
|
2
|
4
|
4
|
7
|
14
|
|
Total new business CSM net of
NCI
|
-
|
13
|
16
|
22
|
14
|
51
|
55
|
|
Asia NCI
|
-
|
1
|
-
|
(1)
|
(40)
|
(1)
|
(143)
|
|
Total impact
of new insurance business in CSM
|
$
-
|
$
14
|
$
16
|
$
21
|
$
(26)
|
$
50
|
$
(88)
|
|
New business CSM net of NCI,
CER basis
|
|
|
|
|
|
|
|
Hong Kong
|
$
299
|
$
261
|
$
204
|
$
174
|
$
204
|
$
938
|
$
701
|
|
Japan
|
66
|
87
|
94
|
49
|
41
|
296
|
120
|
|
Asia Other
|
221
|
257
|
194
|
286
|
179
|
958
|
769
|
|
International High Net Worth
|
|
190
|
240
|
|
Mainland China
|
277
|
142
|
|
Singapore
|
400
|
256
|
|
Vietnam
|
16
|
83
|
|
Other Emerging Markets
|
75
|
48
|
|
Asia
|
586
|
605
|
492
|
509
|
424
|
2,192
|
1,590
|
|
Canada
|
116
|
95
|
76
|
70
|
70
|
357
|
224
|
|
U.S.
|
140
|
72
|
76
|
101
|
146
|
389
|
408
|
|
Total
new business CSM net of NCI, CER
basis
|
842
|
772
|
644
|
680
|
640
|
2,938
|
2,222
|
|
Asia NCI, CER
basis
|
-
|
1
|
-
|
(1)
|
(1)
|
(1)
|
(1)
|
|
Total impact
of new insurance business in CSM, CER
basis
|
$
842
|
$
773
|
$
644
|
$
679
|
$
639
|
$
2,937
|
$
2,221
|
|
(1)
|
Impact of updating
foreign exchange rates to that which was used in 4Q24.
|
|
(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
|
|
4Q24
|
3Q24
|
2Q24
|
1Q24
|
4Q23
|
2024
|
2023
|
|
Global WAM core
earnings (post-tax)
|
$
481
|
$ 499
|
$ 399
|
$ 357
|
$ 353
|
$
1,736
|
$ 1,321
|
|
Add back taxes,
acquisition costs, other expenses and deferred
sales commissions
|
|
|
|
|
|
|
|
|
Core income tax (expenses) recoveries (see above)
|
61
|
6
|
46
|
58
|
55
|
171
|
204
|
|
Amortization of deferred acquisition costs and
other depreciation
|
49
|
48
|
49
|
42
|
45
|
188
|
166
|
|
Amortization of deferred sales commissions
|
20
|
19
|
19
|
20
|
21
|
78
|
80
|
|
Core EBITDA
|
$
611
|
$ 572
|
$ 513
|
$ 477
|
$ 474
|
$
2,173
|
$ 1,771
|
|
CER adjustment(1)
|
-
|
11
|
7
|
13
|
7
|
31
|
39
|
|
Core EBITDA,
CER basis
|
$
611
|
$ 583
|
$ 520
|
$ 490
|
$ 481
|
$
2,204
|
$ 1,810
|
|
(1) The impact of updating foreign
exchange rates to that which was used in 4Q24.
|
Core EBITDA margin and core
revenue
($ millions, unless otherwise stated)
|
Quarterly Results
|
Full Year
Results
|
|
4Q24
|
3Q24
|
2Q24
|
1Q24
|
4Q23
|
2024
|
2023
|
|
Core EBITDA margin
Core EBITDA
|
$ 611
|
$ 572
|
$ 513
|
$ 477
|
$ 474
|
$
2,173
|
$ 1,771
|
|
Core revenue
|
$
2,140
|
$
2,055
|
$
1,948
|
$
1,873
|
$
1,842
|
$
8,016
|
$ 7,103
|
|
Core EBITDA
margin
|
28.6 %
|
27.8 %
|
26.3 %
|
25.5 %
|
25.7 %
|
27.1 %
|
24.9 %
|
|
Global WAM core revenue
Other revenue per
financial
statements
|
$
2,003
|
$
1,928
|
$
1,849
|
$
1,808
|
$
1,719
|
$
7,588
|
$ 6,746
|
|
Less: Other revenue in segments other
than Global WAM
|
(2)
|
53
|
40
|
58
|
31
|
149
|
37
|
|
Other revenue in Global WAM
(fee income)
|
$
2,005
|
$
1,875
|
$
1,809
|
$
1,750
|
$
1,688
|
$
7,439
|
$ 6,709
|
|
Investment income per
financial
statements
|
$
5,250
|
$
4,487
|
$
4,261
|
$
4,251
|
$
4,497
|
$
18,249
|
$
16,180
|
|
Realized and unrealized gains (losses) on assets supporting
insurance and investment contract liabilities per
financial
statements
|
(622)
|
1,730
|
564
|
538
|
2,674
|
2,210
|
3,138
|
|
Total investment
income
|
4,628
|
6,217
|
4,825
|
4,789
|
7,171
|
20,459
|
19,318
|
|
Less: Investment income
in segments other than Global WAM
|
4,550
|
5,991
|
4,687
|
4,649
|
6,941
|
19,877
|
18,886
|
|
Investment income in Global WAM
|
$ 78
|
$ 226
|
$ 138
|
$ 140
|
$ 230
|
$
582
|
$
432
|
|
Total other revenue
and investment income in Global WAM
|
$
2,083
|
$
2,101
|
$
1,947
|
$
1,890
|
$
1,918
|
$
8,021
|
$ 7,141
|
|
Less: Total revenue reported in items
excluded from core earnings
|
|
|
|
|
|
|
|
Market experience gains
(losses)
|
(28)
|
33
|
(9)
|
8
|
63
|
4
|
28
|
|
Revenue related to
integration and acquisitions
|
(29)
|
13
|
8
|
9
|
13
|
1
|
10
|
|
Global WAM core
revenue
|
$
2,140
|
$
2,055
|
$
1,948
|
$
1,873
|
$
1,842
|
$
8,016
|
$
7,103
|
Core earnings available to common shareholders excluding the
impact of GMT
($ millions and post-tax)
|
Quarterly Results
|
Full Year
Results
|
|
4Q24
|
2024
|
|
Core earnings available to common shareholders
|
$
1,806
|
$
6,915
|
|
Less: GMT included in core earnings
|
(57)
|
(164)
|
|
Core
earnings available to common shareholders excluding the impact
GMT
|
$
1,863
|
$
7,079
|
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
|
|
4Q24
|
3Q24
|
2Q24
|
|
1Q24
|
4Q23
|
2024
|
2023
|
|
Net income (loss)
attributed to shareholders:
|
|
|
|
|
|
|
|
|
|
Asia
|
$
583
|
$ 827
|
$ 582
|
$
|
363
|
$
615
|
$
2,355
|
$ 1,348
|
|
Canada
|
439
|
430
|
79
|
|
273
|
365
|
1,221
|
1,191
|
|
U.S.
|
103
|
5
|
135
|
|
(108)
|
198
|
135
|
639
|
|
Global WAM
|
384
|
498
|
350
|
|
365
|
365
|
1,597
|
1,297
|
|
Corporate and Other
|
129
|
79
|
(104)
|
|
(27)
|
116
|
77
|
628
|
|
Total net income
(loss) attributed to shareholders
|
1,638
|
1,839
|
1,042
|
|
866
|
1,659
|
5,385
|
5,103
|
|
Preferred share dividends and other equity
distributions
|
(101)
|
(56)
|
(99)
|
|
(55)
|
(99)
|
(311)
|
(303)
|
|
Common shareholders' net income (loss)
|
$
1,537
|
$
1,783
|
$ 943
|
$
|
811
|
$ 1,560
|
$
5,074
|
$ 4,800
|
|
CER
adjustment(1)
|
|
|
|
|
|
|
|
|
|
Asia
|
$
-
|
$
26
|
$
8
|
$
|
18
|
$
20
|
$
52
|
$
60
|
|
Canada
|
-
|
-
|
-
|
|
4
|
(8)
|
4
|
(6)
|
|
U.S.
|
-
|
5
|
3
|
|
(1)
|
5
|
7
|
47
|
|
Global WAM
|
-
|
11
|
9
|
|
12
|
9
|
32
|
39
|
|
Corporate and Other
|
-
|
2
|
(2)
|
|
-
|
2
|
-
|
(30)
|
|
Total net income
(loss) attributed to shareholders
|
-
|
44
|
18
|
|
33
|
28
|
95
|
110
|
|
Preferred share dividends and other equity
distributions
|
-
|
-
|
-
|
|
-
|
-
|
-
|
-
|
|
Common shareholders' net income (loss)
|
$
-
|
$
44
|
$
18
|
$
|
33
|
$
28
|
$
95
|
$
110
|
|
Net
income (loss) attributed to shareholders, CER basis
|
|
|
|
|
|
|
|
|
|
Asia
|
$
583
|
$ 853
|
$ 590
|
$
|
381
|
$
635
|
$
2,407
|
$ 1,408
|
|
Canada
|
439
|
430
|
79
|
|
277
|
357
|
1,225
|
1,185
|
|
U.S.
|
103
|
10
|
138
|
|
(109)
|
203
|
142
|
686
|
|
Global WAM
|
384
|
509
|
359
|
|
377
|
374
|
1,629
|
1,336
|
|
Corporate and Other
|
129
|
81
|
(106)
|
|
(27)
|
118
|
77
|
598
|
|
Total net income
(loss) attributed to shareholders, CER basis
|
1,638
|
1,883
|
1,060
|
|
899
|
1,687
|
5,480
|
5,213
|
|
Preferred share dividends and other equity
distributions, CER basis
|
(101)
|
(56)
|
(99)
|
|
(55)
|
(99)
|
(311)
|
(303)
|
|
Common shareholders' net income (loss), CER basis
|
$
1,537
|
$
1,827
|
$ 961
|
$
|
844
|
$ 1,588
|
$
5,169
|
$ 4,910
|
|
Asia
net income attributed to shareholders, U.S.
dollars
Asia net income
(loss) attributed to shareholders, US $(2)
|
$
417
|
$ 606
|
$ 424
|
$
|
270
|
$
452
|
$
1,717
|
$
995
|
|
CER adjustment, US $(1)
|
-
|
4
|
(1)
|
|
4
|
2
|
7
|
15
|
|
Asia net income (loss)
attributed to shareholders, U.S. $, CER
basis(1)
|
$
417
|
$ 610
|
$ 423
|
$
|
274
|
$
454
|
$
1,724
|
$ 1,010
|
|
(1)
|
The impact of updating foreign
exchange rates to that which was used in 4Q24.
|
|
(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.
|
Core
expenses
($ 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
|
|
4Q24
|
3Q424
|
2Q24
|
1Q24
|
4Q23
|
2024
|
2023
|
|
Core expenses
|
|
|
|
|
|
|
|
|
General
expenses - Statements of Income
|
$
1,328
|
$ 1,204
|
$ 1,225
|
$ 1,102
|
$ 1,180
|
$ 4,859
|
$ 4,330
|
|
Directly attributable acquisition expense for contracts
|
|
|
|
|
|
|
|
|
measured using the PAA method and
for other
products without
a CSM(1)
|
43
|
36
|
39
|
38
|
42
|
156
|
147
|
|
Directly attributable maintenance expense(1)
|
517
|
509
|
509
|
539
|
565
|
2,074
|
2,205
|
|
Total
expenses
|
1,888
|
1,749
|
1,773
|
1,679
|
1,787
|
7,089
|
6,682
|
|
Less: General
expenses included in items excluded
|
|
|
|
|
|
|
|
|
from core earnings
|
|
|
|
|
|
|
|
|
Restructuring charge
|
67
|
25
|
-
|
-
|
46
|
92
|
46
|
|
Integration and acquisition
|
-
|
-
|
57
|
-
|
8
|
57
|
8
|
|
Legal provisions and Other expenses
|
24
|
8
|
3
|
6
|
8
|
41
|
78
|
|
Total
|
91
|
33
|
60
|
6
|
62
|
190
|
132
|
|
Core expenses
|
$
1,797
|
$ 1,716
|
$ 1,713
|
$ 1,673
|
$ 1,725
|
$ 6,899
|
$ 6,550
|
|
CER adjustment(2)
|
-
|
22
|
28
|
36
|
27
|
86
|
114
|
|
Core expenses, CER basis
|
$
1,797
|
$ 1,738
|
$ 1,741
|
$ 1,709
|
$ 1,752
|
$ 6,985
|
$ 6,664
|
|
Total
expenses
|
$
1,888
|
$ 1,749
|
$ 1,773
|
$ 1,679
|
$ 1,787
|
$ 7,089
|
$ 6,682
|
|
CER adjustment(2)
|
-
|
22
|
29
|
37
|
28
|
88
|
117
|
|
Total expenses, CER basis
|
$
1,888
|
$ 1,771
|
$ 1,802
|
$ 1,716
|
$ 1,815
|
$ 7,177
|
$ 6,799
|
|
(1)
|
Expenses are components
of insurance service expenses on the Statements of Income that flow
directly through income.
|
|
(2)
|
The impact of updating
foreign exchange rates to that which was used in 4Q24.
|
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 our strategic priorities
and targets and potential future common share repurchases, 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); 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 and actuarial 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 fact that the amount and timing of any
future common share repurchases will depend on the earnings, cash
requirements and financial condition of Manulife, market
conditions, capital requirements (including under
LICAT capital standards), common share issuance
requirements, applicable law and regulations
(including Canadian and U.S. securities laws and Canadian insurance
company regulations).
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 2024 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, 2024,
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
