MANULIFE(00945)2022-11-10 00:08Financial Performance - Manulife reported a net income attributable to shareholders of CAD 1.3 billion for Q3 2022, a decrease of CAD 200 million compared to Q3 2021[1]. - Core earnings for Q3 2022 were CAD 1.3 billion, representing a 14% decrease year-over-year on a constant currency basis[1]. - Net income attributable to shareholders for Q3 2022 was CAD 1.347 billion, down from CAD 1.592 billion in Q3 2021, reflecting a decrease of 15.4%[9]. - Core earnings for Q3 2022 were CAD 1.322 billion, a decline of 14% compared to CAD 1.517 billion in Q3 2021[10]. - The return on common equity for Q3 2022 was 10.5%, down from 12.6% in Q3 2021[9]. - The expense ratio for Q3 2022 was 53.9%, compared to 51.3% in Q3 2021, indicating increased operational costs[9]. - Core earnings (after tax) for the company reached CAD 4,828 million, reflecting a 68% increase compared to the previous year[36]. - The net income attributable to shareholders (after tax) was CAD 5,021 million, with a significant contribution from Asia at CAD 2,412 million[35]. Sales and Business Value - The annualized premium equivalent sales for Q3 2022 were CAD 1.3 billion, down 6% from Q3 2021[2]. - The new business value for Q3 2022 was CAD 514 million, a decrease of 6% compared to the same quarter in 2021[2]. - New business value in Asia dropped by 17% year-over-year, primarily due to lower sales in Hong Kong[12]. - New business value in Canada increased by 25% year-over-year, driven by improved margins in the insurance business[12]. - New business value in the U.S. rose by 27% year-over-year, attributed to pricing measures and rising interest rates[12]. - The sales of products featuring Vitality PLUS increased by 12% compared to Q3 2021, indicating growing interest among health-conscious consumers[13]. Wealth and Asset Management - Global wealth and asset management business recorded net inflows of CAD 3 billion in Q3 2022, down from CAD 9.8 billion in Q3 2021[2]. - The total assets under management in the global wealth and asset management business were CAD 748.8 billion, down from CAD 823.6 billion[9]. - The total investment assets managed by the Global Wealth and Asset Management business as of September 30, 2022, were 402,329 million on June 30, 2022, representing a growth of 2.4%[40]. - The total assets under administration provided by the Global Wealth and Asset Management division amounted to 504 million, reflecting a 7.9% increase compared to 1.859 billion, slightly higher than $1.843 billion in Q2 2022[44]. Strategic Initiatives - Manulife expanded its Manulife Vitality program to include new policyholders for term and universal life insurance starting November 2022[4]. - The company introduced advanced early detection services for multiple cancers through the Galleri® test, becoming the first life insurer to offer this service[5]. - The company plans to continue expanding its market presence and investing in new technologies to enhance service offerings[41]. Risks and Uncertainties - The company emphasizes that forward-looking statements are subject to risks and uncertainties, and actual performance may differ significantly from expectations[46]. - Significant factors affecting actual performance include general business and economic conditions, market volatility, interest rates, and credit spreads[47]. - The ongoing impact of the COVID-19 pandemic, including any variants, poses additional risks to the company's performance[47]. - Legal and regulatory changes may affect the company's operations and financial performance[47]. - The company acknowledges the challenges in attracting and retaining key personnel, which could impact operational effectiveness[48].