C$ unless otherwise stated                                      TSX/NYSE/PSE: MFC     SEHK: 945 Manulife's digital capabilities, including AI-enabled enhancements, are expected to generate a threefold return on investment over five years through 2027TORONTO, March 6, 2025 /PRNewswire/ - Manulife announced today that over 75 percent of its global workforce are engaged with GenAI through learning, immersive experiences and tools, including ChatMFC, its proprietary GenAI assistant introduced in 2024. Manulife ...

Core Points - Manulife Financial Corporation announced that holders of its Series 19 Preferred Shares are not entitled to convert them into Series 20 Preferred Shares due to insufficient election notices received by the conversion deadline [1] - Starting March 20, 2025, holders of Series 19 Preferred Shares will receive a fixed rate non-cumulative preferential cash dividend of 5.16900% per annum, equating to $0.323063 per share per quarter [2] - The Series 19 Preferred Shares may be redeemed by Manulife on March 19, 2030, and every five years thereafter, subject to certain conditions [3] Company Overview - Manulife Financial Corporation is a leading international financial services provider, operating under the name Manulife in Canada, Asia, and Europe, and as John Hancock in the United States [5] - The company provides financial advice and insurance services to individuals, groups, and businesses, and offers global investment and retirement plan services [5] - As of the end of 2024, Manulife had over 37,000 employees and served more than 36 million customers [5]

Core Viewpoint - Manulife has received an unsolicited mini-tender offer from Ocehan LLC to purchase up to 50,000 common shares at a price of $34.20 per share, which is significantly below the current market price [1][2]. Group 1: Mini-Tender Offer Details - The mini-tender offer represents a discount of approximately 19.83% and 20.07% below the closing prices on the TSX and NYSE on February 3, 2025, and a discount of 20.35% and 20.12% below the closing prices on February 24, 2025 [2]. - Mini-tender offers seek to acquire less than 5% of a company's outstanding shares, allowing them to avoid certain disclosure and procedural requirements under Canadian and U.S. securities regulations [3]. Group 2: Regulatory Concerns - The Canadian Securities Administrators (CSA) and the U.S. Securities and Exchange Commission (SEC) have raised concerns about mini-tender offers, particularly regarding the potential for investors to accept offers without fully understanding the price relative to the market [3][4]. - The SEC warns that bidders often make mini-tender offers at below-market prices, aiming to catch investors off guard if they do not compare the offer price to the current market price [4]. Group 3: Company Position - Manulife is not associated with Ocehan and does not endorse the unsolicited offer, advising shareholders to carefully review the offer documents and consult with investment advisors [2][4]. - Manulife provides shareholder services through stock transfer agents in various regions, including Canada, the United States, Hong Kong, and the Philippines [5].

Core Insights - Insurers like Manulife Financial have diversified beyond traditional underwriting by developing wealth and asset management divisions, creating additional growth sources [1] Company Analysis - Manulife Financial is highlighted as an example of an insurer that has successfully expanded its operations beyond traditional insurance, focusing on wealth and asset management [1]

Group 1 - Manulife Financial Corporation has initiated an automatic share repurchase plan to buy back its common shares under a previously announced normal course issuer bid (NCIB) [1] - The actual number of shares repurchased, timing, and price will be influenced by future market conditions [1] - The automatic plan allows for share repurchases even during internal trading blackout periods and in compliance with insider trading rules [1] Group 2 - Manulife is a leading international financial services provider, operating under the name Manulife in Canada, Asia, and Europe, and as John Hancock in the United States [4] - The company had over 37,000 employees and served more than 36 million customers as of the end of 2024 [4] - Manulife trades as 'MFC' on multiple stock exchanges, including Toronto, New York, and the Philippines, and as '945' in Hong Kong [4]

Group 1 - Manulife Financial Corporation is viewed as an interesting company in the life insurance sector due to its strong fundamentals and long-term growth prospects [1] - The company has been analyzed by a fund manager/analyst with over 18 years of experience in the financial markets, indicating a level of expertise in the evaluation [1] Group 2 - No stock, option, or similar derivative positions are held in any of the companies mentioned, indicating an unbiased analysis [2] - The article expresses personal opinions and does not involve compensation from the companies discussed, reinforcing the independence of the analysis [2]

Core Insights - Manulife Financial Corporation (MFC) reported fourth-quarter 2024 core earnings of 74 cents per share, exceeding the Zacks Consensus Estimate by 10.4% and reflecting an 8.8% year-over-year improvement [1] - The company achieved core earnings of $1.4 billion (C$1.9 billion), marking a 6% increase year over year, driven by strong business growth in Global Wealth and Asset Management (WAM), Canada, and Asia [2] - New business value (NBV) for the quarter was $601 million (C$842 million), up 31% year over year, attributed to higher sales volumes across Asia, Canada, and the U.S. [2] - Annualized premium equivalent (APE) sales rose 42% year over year, primarily due to increased sales in Asia and the U.S. [3] - Wealth and asset management assets under management and administration reached $705.6 billion (C$1,015 billion), a 21% increase year over year, with net inflows of $0.8 billion (C$1.2 billion) compared to net outflows of $1.3 billion in the previous year [3] Financial Metrics - Core return on equity improved by 50 basis points year over year to 16.4% [4] - The Life Insurance Capital Adequacy Test ratio stood at 137% as of December 31, 2024, unchanged from the previous year [4] - Adjusted book value per common share increased by 15% year over year to $37.02 [4] Segment Performance - Global Wealth and Asset Management's core earnings were $343 million (C$481 million), up 34% year over year, driven by higher net fee income and positive net flows [5] - The Asia division reported core earnings of $341 million (C$477 million), a 16% year-over-year increase, with significant growth in APE sales, new business CSM, and NBV [6] - The Canada division's core earnings reached $278 million (C$390 million), an 11% increase year over year, supported by favorable insurance experiences and growth in Group Insurance [7] - The U.S. division's core earnings were $210 million (C$294 million), down 16% year over year due to lower investment spreads and impacts from prior reinsurance transactions [8] Dividend Update - The board of directors approved a 10% increase in the quarterly dividend to 44 cents, with shareholders of record as of March 5 set to receive the dividend on March 19 [10]

Fourth Quarter and Full Year 2024 Financial & Operating Results February 20, 2025 Caution regarding forward-looking statements From time to time, Manulife makes written and/or oral forward-looking statements, including in this presentation. 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 Litigat ...

Financial Data and Key Metrics Changes - Manulife reported record core earnings exceeding $7 billion for the first time, representing a 10 percentage point increase from 2023 [7][8] - Core EPS grew by 11%, with a potential growth of 14% excluding the impact of global minimum taxes, surpassing the medium-term target of 10% to 12% [21][40] - The core ROE expanded to 16.4%, indicating progress towards the 2027 target of over 18% [22][55] - Adjusted book value per share increased by 15% to $37.02, despite returning over $6 billion to shareholders [52] Business Line Data and Key Metrics Changes - APE sales increased by 42% year-over-year, with Asia leading the growth [35] - New business CSM and new business value in Asia grew by 32% and 31% respectively [35] - Global WAM achieved a 34% increase in core earnings, supported by higher average third-party AUMA exceeding $1 trillion [44] - The Canadian segment saw a 4% increase in APE sales, driven by higher participating life insurance and segregated fund sales [46] Market Data and Key Metrics Changes - Asia segment APE sales surged by 63%, with significant contributions from Hong Kong [43] - Global WAM maintained positive net inflows of $1.2 billion, marking the fifth consecutive quarter of over 20% growth in pre-tax core earnings [38][44] - The US segment experienced a 7% increase in APE sales, although core earnings decreased by 16% due to lower investment spreads [47] Company Strategy and Development Direction - The company aims to become the most digital customer-centric organization in the industry, with significant investments in digital capabilities [11][14] - A new buyback program was announced to repurchase up to 3% of outstanding common shares, reflecting a commitment to returning capital to shareholders [18][50] - The focus remains on sustaining growth in Asia and Global WAM while maintaining market leadership in Canada [30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic volatility and geopolitical uncertainty, supported by a strong balance sheet [26][23] - The company anticipates continued strong momentum in Asia and Global WAM, with a commitment to investing in these high-potential businesses [30][32] - Management highlighted the importance of disciplined expense management, achieving an efficiency ratio of 44.8% [15][55] Other Important Information - The company executed several milestone transactions, including the largest-ever LTC reinsurance transaction, which is expected to unlock significant shareholder value [10][18] - Record remittances of $7 billion were generated in 2024, benefiting from capital optimization initiatives [49][50] Q&A Session Summary Question: What drove the improvement in the drag? - The improvement was primarily due to better performance in private equity and infrastructure, with expectations for broad improvement across the portfolio [60][61] Question: What is the outlook for the Asia segment? - The Asia segment is expected to maintain mid-teens growth, with the majority of growth coming from normal business activities rather than methodology changes [69][72] Question: Can you discuss the margins in Global WAM? - Global WAM has seen strong margins due to disciplined expense management and access to higher-margin geographies, with expectations for continued growth [88][90] Question: What is the exposure to California wildfires? - The exposure is limited to about $90 million, with expectations that actual losses will be less than half of that amount [96] Question: What are the drivers of earnings on surplus? - The increase in earnings on surplus was driven by favorable currency impacts and fund rebalancing, with expectations for stability going forward [105][107] Question: Why did Manulife not take a write-down in Vietnam? - Manulife's strong in-force portfolio and protective measures in bank assurance partnerships contributed to the decision not to take a write-down [114][115]

Core Viewpoint - Manulife Financial Corporation has appointed Nancy Carroll and John Montalbano to its Board of Directors, effective February 28, 2025, enhancing its governance with experienced professionals in financial services and asset management [1][4]. Group 1: New Board Members - Nancy Carroll has over 40 years of experience as a legal advisor in the insurance and reinsurance sectors, previously serving as a partner at McCarthy Tétrault LLP [2]. - John Montalbano is a seasoned executive in wealth and asset management, formerly the CEO of RBC Global Asset Management and currently the Principal of Tower Beach Capital Ltd [3]. Group 2: Board Contributions - The new board members are expected to provide valuable oversight of Manulife's strategy and operations, with Carroll joining the Audit Committee and Corporate Governance and Nominating Committee, while Montalbano will be part of the Management Resources and Compensation Committee and Risk Committee [4]. Group 3: Company Overview - Manulife Financial Corporation is a leading international financial services provider, operating under the Manulife brand in Canada, Asia, and Europe, and as John Hancock in the United States, serving over 36 million customers globally [5].