Core Earnings and Net Income - Core earnings reached CAD 1.8 billion, a 4% increase year-over-year at constant exchange rates[2] - Net income attributed to shareholders was CAD 1.8 billion, an increase of CAD 800 million compared to Q3 2023[2] - Core earnings per share (EPS) were CAD 1.00, up 7% year-over-year, while EPS grew 91% to CAD 1.00[2] - Q3 2024 core earnings reached CAD 1.8 billion, up 4% YoY, driven by strong growth in global wealth and asset management and Asia[11] - Core earnings for Q3 2024 totaled 1.828billion,comparedto1.737 billion in Q2 2024 and 1.743billioninQ32023[24]−Year−to−datecoreearningsfor2024reached5.319 billion, an 8.3% increase from 4.911billioninthesameperiodof2023[24]−Coreearningsaftertax,onaconstantcurrencybasis,forQ32024were1.828 billion, with Asia contributing 619million,Canada412 million, and the US 411million[30]−Coreearningsbeforetax,onaconstantcurrencybasis,forQ32024were2.143 billion, with Asia contributing 684million,Canada516 million, and the US 523million[30]−CoreearningsaftertaxforAsiaandUSoperationsinUSDforQ32024were453 million and 302millionrespectively[30]−CoreearningsaftertaxforQ22024were1.737 billion, with Asia contributing 647million,Canada402 million, and the US 415million[33]−CoreearningsbeforetaxforQ22024were2.057 billion, with Asia contributing 711million,Canada509 million, and the US 510million[33]−Coreearningsaftertax,onaconstantcurrencybasis,forQ22024were1.742 billion, with Asia contributing 654million,Canada402 million, and the US 413million[34]−Coreearningsbeforetax,onaconstantcurrencybasis,forQ22024were2.063 billion, with Asia contributing 719million,Canada509 million, and the US 508million[34]−CoreearningsaftertaxforAsiaandUSoperationsinUSDforQ22024were478 million and 303millionrespectively[34]−CoreearningsforQ32024reached1,743 million (after tax), with Asia contributing 522million,Canada408 million, and the US 442million[36]−CoreearningsbeforetaxforQ32024totaled2,036 million, with Asia contributing 584million,Canada517 million, and the US 535million[36]−CoreearningsonaconstantcurrencybasisforQ32024were1,759 million (after tax), with Asia contributing 526million,Canada408 million, and the US 449million[37]−CoreearningsbeforetaxonaconstantcurrencybasisforQ32024were2,054 million, with Asia contributing 588million,Canada517 million, and the US 544million[37]−Coreearningsfortheyear−to−date2024reached5,319 million (after tax), with Asia contributing 1,923million,Canada1,178 million, and the US 1,278million[39]−Coreearningsbeforetaxfortheyear−to−date2024totaled6,240 million, with Asia contributing 2,119million,Canada1,480 million, and the US 1,588million[39]−Coreprofitaftertaxfortheoverallbusinessin2024year−to−dateis5.319 billion, with Asia contributing 1.923billion,Canada1.178 billion, and the US 1.278billion[40]−Coreprofitaftertaxonaconstantcurrencybasisfor2024year−to−dateis5.340 billion, with Asia at 1.938billion,Canadaat1.178 billion, and the US at 1.281billion[40]−Coreprofitaftertaxfortheoverallbusinessin2023year−to−dateis4.911 billion, with Asia contributing 1.484billion,Canada1.135 billion, and the US 1.285billion[42]−Coreprofitaftertaxonaconstantcurrencybasisfor2023year−to−dateis4.928 billion, with Asia at 1.473billion,Canadaat1.135 billion, and the US at 1.303billion[43]−CoreprofitaftertaxforQ32024is1.828 billion, with Q2 2024 at 1.737billionandQ12024at1.754 billion[44] - Core profit attributable to common shareholders for 2024 year-to-date is 5.109billion,withQ32024at1.772 billion, Q2 2024 at 1.638billion,andQ12024at1.699 billion[44] - Core profit attributable to common shareholders on a constant currency basis for 2024 year-to-date is 5.130billion,withQ32024at1.772 billion, Q2 2024 at 1.643billion,andQ12024at1.715 billion[44] - Core earnings attributable to common shareholders for Q3 2024 were CAD 1,772 million, with a year-to-date total of CAD 5,109 million, compared to CAD 4,707 million in the same period last year[45] - Annualized core earnings attributable to common shareholders (after tax) for Q3 2024 were CAD 7,049 million, up from CAD 6,588 million in Q2 2024 and CAD 6,701 million in Q3 2023[45] - Core earnings attributable to common shareholders excluding GMT impact for Q3 2024 were CAD 1,833 million, after adjusting for CAD 61 million GMT impact[46] New Business and Sales Growth - Annualized Premium Equivalent (APE) sales increased by 40% year-over-year, with New Business Value (NBV) growing by 39%[2] - Asia region APE sales grew by 64% year-over-year, with New Business CSM increasing by 45% and New Business Value by 55%[5] - Canada region net income attributed to shareholders increased by 48% year-over-year, while APE sales declined by 20%[5] - Manulife Pro program in Asia drove new business value and APE sales growth of over 20% YoY in Q3 2024[6] - Insurance APE sales, new business CSM, and new business value grew 40%, 47%, and 39% YoY respectively in Q3 2024[14] - Annualized Premium Equivalent (APE) sales, new business CSM, and new business value reached record highs[18] - New business CSM in Hong Kong for Q3 2024 reached 254million,showingasignificantincreasefrom200 million in Q2 2024[52] - Japan's new business CSM for Q3 2024 was 86million,slightlydownfrom90 million in Q2 2024[52] - Asia's total new business CSM for Q3 2024 was 593million,upfrom478 million in Q2 2024[52] - Canada's new business CSM for Q3 2024 was 95million,comparedto76 million in Q2 2024[52] - The US new business CSM for Q3 2024 was 71million,downfrom74 million in Q2 2024[52] - Total new business CSM for Q3 2024 was 759million,upfrom628 million in Q2 2024[52] - Fixed exchange rate adjustments for new business CSM in Q3 2024 were minimal, with a total adjustment of 0[52]−Asia′snewbusinessCSMonafixedexchangeratebasisforQ32024was593 million, up from 484millioninQ22024[52]−TotalnewbusinessCSMonafixedexchangeratebasisforQ32024was759 million, up from 633millioninQ22024[52]−Thecompany′snewbusinessCSMinotheremergingmarketsinAsiafor2023was87 million[52] Global Wealth and Asset Management - Global Wealth and Asset Management net inflows were CAD 5.2 billion, a significant improvement from CAD 0.8 billion net outflows in Q3 2023[2] - Global Wealth and Asset Management core EBITDA margin improved to 27.8%, up 90 basis points year-over-year[5] - Total assets under management and administration (AUMA) reached CAD 963 billion, a 16% increase year-over-year[5] - Global wealth and asset management core earnings hit a record high, increasing 37% YoY in Q3 2024[11] - Global wealth and asset management net inflows reached CAD 5.2 billion in Q3 2024, a significant improvement from CAD 0.8 billion net outflows in Q3 2023[14] - The company's global wealth and asset management business reported a core EBITDA of 572millioninQ32024,upfrom513 million in Q2 2024 and 477millioninQ12024[57]−Thecompany′scoreprofitforglobalwealthandassetmanagementinQ32024was499 million, compared to 399millioninQ22024and357 million in Q1 2024[57] - Core EBITDA for global wealth and asset management on a constant currency basis was 572millioninQ32024,slightlyhigherthanthe511 million reported in Q2 2024[57] - The company's core profit for global wealth and asset management on a constant currency basis was 499millioninQ32024,unchangedfromthereportedfigure[57]−Coreprofitaftertaxfortheglobalwealthandassetmanagementsegmentin2024year−to−dateis1.255 billion, while in 2023 year-to-date it is 968million[40][42]−CorerevenueforQ32024reached2.055 billion, up from 1.948billioninQ22024[58]−GlobalWealthandAssetManagementcorerevenueforQ32024was2.055 billion, consistent with previous quarters[58] - Total investment income for Q3 2024 was 6.217billion,with226 million attributed to Global Wealth and Asset Management[58] Contractual Service Margin (CSM) - CSM balance increased by CAD 490 million to CAD 20.93 billion as of September 30, 2024, compared to December 31, 2023[16] - Organic CSM growth contributed CAD 724 million in the first three quarters of 2024, driven by new business and interest accretion[16] - Inorganic CSM decreased by CAD 234 million due to reinsurance transactions and actuarial method and assumption reviews[16] - Post-tax CSM, excluding NCI, stood at CAD 18.595 billion as of September 30, 2024[16] - CSM decreased by CAD 421 million as a result of the actuarial review[17] - Contractual Service Margin (CSM) as of September 30, 2024, was CAD 22,213 million, up from CAD 21,760 million in Q2 2024 and CAD 18,149 million in Q3 2023[49] - CSM attributable to non-controlling interests as of September 30, 2024, was CAD 1,283 million, compared to CAD 780 million in Q3 2023[49] - Post-tax CSM as of September 30, 2024, was CAD 19,725 million, up from CAD 18,503 million in Q4 2023 and CAD 15,675 million in Q3 2023[49] - Post-tax CSM attributable to non-controlling interests as of September 30, 2024, was CAD 18,595 million, compared to CAD 14,992 million in Q3 2023[49] Regional Performance - Asia core earnings grew 17% YoY in Q3 2024, supported by business growth and actuarial updates[11] - Asia region contributed 619milliontocoreearningsinQ32024,up18.6522 million in Q3 2023[24] - Net income attributable to shareholders in Asia for Q3 2024 was 827million,asignificantincreasefrom582 million in Q2 2024 and 363millioninQ12024[55]−NetincomeattributabletoshareholdersinCanadaforQ32024was430 million, a substantial increase from 79millioninQ22024and273 million in Q1 2024[55] - Net income attributable to shareholders in the U.S. for Q3 2024 was 5million,asharpdeclinefrom135 million in Q2 2024 and a loss of 108millioninQ12024[55]−NetincomeattributabletoshareholdersinAsiaonaconstantcurrencybasisforQ32024was827 million, consistent with the reported figure[55] Shareholders' Equity and Return on Equity - Shareholders' core return on equity (ROE) stood at 16.6%, reflecting strong business performance and disciplined capital allocation[2] - Shareholders' equity core return (annualized) for Q3 2024 was 16.6%, compared to 15.7% in Q2 2024 and 16.8% in Q3 2023[45] - Total shareholders' equity and other interests for Q3 2024 were CAD 49,573 million, with common shareholders' equity at CAD 42,913 million[45] Actuarial and Market Experience - Annual actuarial review resulted in a pre-tax favorable impact of CAD 174 million on cash flows[17] - Pre-tax net income attributable to shareholders decreased by CAD 250 million (CAD 199 million post-tax) due to actuarial review[17] - Market experience gains were 186millioninQ32024,comparedtolossesof665 million in Q2 2024 and 1.022billioninQ32023[24]−Actuarialmethodsandassumptionschangesnegativelyimpactedincomeby199 million in Q3 2024[24] - Market experience losses for Q3 2024 were 1,022million,withAsiacontributing286 million, Canada 159million,andtheUS476 million[36] - Market experience losses for the year-to-date 2024 were 1,258million,withAsiacontributing95 million, Canada 439million,andtheUS1,018 million[39] Forward-Looking Statements and Risks - The company's forward-looking statements are subject to significant risks and uncertainties, including general business and economic conditions, COVID-19 impacts, legal and regulatory changes, and more[65] - Forward-looking statements include the company's ability to achieve mid-term financial and operational goals, and involve words like "may," "will," "expect," and "estimate"[63] - Actual results may differ materially from forward-looking statements due to factors such as market volatility, interest rates, credit spreads, and inflation[65] - The company's ability to execute strategic plans and adapt to market changes is a key factor in its forward-looking statements[65] - Risks related to the company's non-North American operations, geopolitical uncertainties, and environmental factors like climate change are highlighted[65] - The company's ability to attract and retain key personnel and manage complex models is crucial for future performance[65] - Legal or regulatory proceedings, including tax audits and litigation, could impact the company's actual results[65] - The company's liquidity and ability to meet financial obligations are important considerations in its forward-looking statements[65] - The company's ability to protect intellectual property and avoid infringement claims is a significant risk factor[65] - Further details on risk factors and assumptions applied to forward-looking statements can be found in the company's latest annual and interim reports[66] Technology and Innovation - AI-enhanced voice-to-text and call summarization reduced average handling time by 28% in customer centers[8] - New mobile apps in Vietnam and Indonesia doubled monthly customer registrations after launch[8] Product Launches and Initiatives - Manulife Global Indexed UL PRO and Signature Indexed Income launched to cater to high-net-worth clients' needs[6] - Manulife Private Equity Partners II fund raised CAD 1.1 billion for institutional investors[7] - Manulife Pro is now available in Singapore, Vietnam, Indonesia, Japan, and Hong Kong[18] Financial Metrics and Ratios - Core EBITDA for Q3 2024 was 572million,withacoreEBITDAmarginof27.81.716 billion, slightly up from 1.713billioninQ22024[60]−HighestpotentialbusinesscoreearningsforYTD2024were3.745 billion, contributing 70% to total core earnings[61] - Total core earnings for YTD 2024 were 5.319billion,upfrom4.911 billion in 2023[61] - Net income attributable to shareholders for YTD 2024 was 3.747billion,comparedto3.444 billion in 2023[61] - Adjusted book value as of September 30, 2024, stood at 61.508billion,comparedto60.595 billion as of June 30, 2024, and 60.137billionasofMarch31,2024[56]−Thecompany′sadjustedbookvalueincreasedby913 million from June 30, 2024, to September 30, 2024, reaching $61.508 billion[56]
MANULIFE(00945)2024-11-07 00:02