MANULIFE(00945)2022-08-10 23:59Financial Performance - Manulife reported a net income of CAD 1.1 billion for Q2 2022, a decrease of CAD 1.6 billion compared to Q2 2021[1]. - Core earnings for Q2 2022 were CAD 1.6 billion, representing a 9% decrease year-over-year on a constant currency basis[1]. - Net income attributable to shareholders for Q2 2022 was CAD 1.1 billion, a decrease of CAD 1.6 billion compared to Q2 2021[8]. - Core earnings for Q2 2022 were CAD 1.6 billion, down 9% from Q2 2021[9]. - The net income attributable to shareholders for Q2 2022 was CAD 1.086 billion, a decrease from CAD 2.970 billion in Q1 2022[19]. - The net income (after tax) for Q1 2022 was CAD 2,902 million, with CAD 2,067 million from the US and CAD 596 million from Asia[25]. - The net income attributable to shareholders (after tax) for Q2 2021 was 2,682 million, underscoring the company's strong market presence[27]. Sales and Business Growth - The annualized premium equivalent sales for Q2 2022 amounted to CAD 1.4 billion, down 1% from Q2 2021[1]. - The global wealth and asset management business recorded net inflows of CAD 1.7 billion in Q2 2022, significantly lower than CAD 8.6 billion in Q2 2021[1]. - New business value recorded in Q2 2022 was CAD 511 million, a decline of 9% compared to Q2 2021[11]. - Annualized premium equivalent sales in Asia for Q2 2022 were CAD 838 million, down from CAD 950 million in Q2 2021[11]. - Annualized premium equivalent sales in Canada for Q2 2022 were CAD 361 million, an increase from CAD 274 million in Q2 2021[11]. - Annualized premium equivalent sales in the US for Q2 2022 were CAD 209 million, up from CAD 191 million in Q2 2021[11]. - The retirement business recorded a net inflow of CAD 1 billion in Q2 2022, a significant improvement from a net outflow of CAD 600 million in Q2 2021[13]. - Institutional asset management net inflow was CAD 2.5 billion in Q2 2022, compared to CAD 1.9 billion in Q2 2021[13]. Efficiency and Cost Management - The company achieved a spending efficiency ratio of 49.2%, with general expenses decreasing by 3%[1]. - The expense ratio for Q2 2022 was 49.2%, compared to 46.8% in Q2 2021[8]. - The core general expenses for Q2 2022 were 1,877 million in Q1 2022, showing a decrease of 1.8%[43]. - The expense efficiency ratio improved to 49.2% in Q2 2022 from 50.0% in Q1 2022, indicating better cost management[43]. Capital and Investment - The LICAT ratio for Q2 2022 was reported at 137%[1]. - The total assets under management and administration in global wealth and asset management were CAD 744.7 billion, down from CAD 798.5 billion[8]. - The total assets managed by the Global Wealth and Asset Management division reached 807,964 million in the previous quarter, indicating a drop of 7.8%[41]. - The total investment assets amounted to 4,458 million in March 2022, reflecting a decrease of 11%[39]. Digital Transformation - Manulife enhanced its digital capabilities, achieving an 85.5% electronic submission rate for new policies in Asia, a 10 percentage point increase from Q2 2021[4]. Risk Factors and Strategic Focus - The company acknowledges that forward-looking statements involve risks and uncertainties, and actual performance may differ significantly from expectations[46]. - Key risk factors affecting actual performance include general business and economic conditions, market volatility, interest rates, and credit spreads[46]. - The ongoing impact of the COVID-19 pandemic, including any variants, remains a significant risk to future performance[46]. - The company anticipates continued focus on market expansion and new product development as part of its strategic initiatives moving forward[44]. - The company has outlined that its financial condition and operational performance are subject to various regulatory and legal risks[47]. - The company emphasizes the importance of maintaining its reputation and financial strength amid potential downgrades in credit ratings[46]. Shareholder Returns - The company repurchased approximately 2% of its common shares year-to-date, totaling CAD 933 million[2]. - The diluted earnings per share for Q2 2022 was CAD 0.78, slightly up from CAD 0.77 in Q1 2022[37].