MANULIFE(00945)2023-11-09 00:06Financial Performance - Net income attributable to shareholders for Q3 2023 reached CAD 1 billion, an increase of CAD 200 million compared to Q3 2022 transitional net income and CAD 500 million compared to Q3 2022 net income [2]. - Core earnings for Q3 2023 were CAD 1.743 billion, representing a 28% increase from Q3 2022 [2]. - Core earnings per share for Q3 2023 were CAD 0.92, a 35% increase from CAD 0.68 in Q3 2022 [2]. - The company reported a total core earnings of CAD 4,911 million year-to-date in 2023, an increase from CAD 4,258 million in the same period of 2022 [20]. - The net income attributable to shareholders for Q3 2023 increased by CAD 500 million compared to Q3 2022, driven by core earnings growth and a one-time tax-related gain of CAD 290 million [6]. - The total net income attributable to shareholders for the year-to-date 2023 was CAD 3,444 million, a significant increase from a loss of CAD 2,848 million in the same period of 2022 [44]. - The company reported a net loss attributable to shareholders of CAD 214 million in Q3 2023, compared to a loss of CAD 430 million in Q2 2023 [32]. Sales and Business Growth - APE sales for Q3 2023 amounted to CAD 1.657 billion, a 21% increase from CAD 1.347 billion in Q3 2022 [4]. - New business value for Q3 2023 was CAD 600 million, up 15% from CAD 515 million in Q3 2022 [4]. - The company reported a 33% year-over-year growth in core earnings driven by the Asia region, with new business CSM increasing by 16% [2]. - Annualized premium equivalent (APE) sales amounted to CAD 1.7 billion, reflecting a 21% increase year-over-year, with strong performance in Asia, particularly a 57% increase in Hong Kong [9]. - New business value (NBV) recorded CAD 600 million, a 15% increase from Q3 2022, with a 72% growth in Canada, while the U.S. saw a 29% decline [10]. Shareholder Returns and Equity - The company repurchased nearly CAD 1.3 billion of common shares since the beginning of the year to enhance shareholder returns [2]. - The company achieved a shareholder equity core return rate of 16.8% for Q3 2023, up from 12.7% in the previous year [3]. - Total equity attributable to shareholders increased to 39,047 million in Q2 2023, marking a 4.4% rise [35]. Market and Regional Performance - The Asian market contributed CAD 522 million to core earnings in Q3 2023, a 35% increase from CAD 387 million in Q3 2022 [20]. - The Canadian market's core earnings were CAD 408 million in Q3 2023, up from CAD 391 million in Q3 2022, marking a 4.4% increase [20]. - The U.S. market reported core earnings of CAD 442 million in Q3 2023, compared to CAD 437 million in Q3 2022, showing a 1.1% increase [20]. - The global wealth and asset management segment experienced a net outflow of CAD 800 million in Q3 2023, compared to a net inflow of CAD 3 billion in Q3 2022 [12]. - Institutional asset management recorded a net inflow of CAD 2.8 billion in Q3 2023, a significant increase from CAD 600 million in Q3 2022 [12]. Strategic Initiatives and Product Development - The company plans to continue focusing on market expansion and new product development as part of its strategic initiatives moving forward [22]. - In Q3 2023, the company launched an integrated high-end account platform in Bermuda, Hong Kong, and Singapore, simplifying new business applications and compliance processes for high-end markets [15]. - The company expanded its personalized medicine program in Canada to all group insurance extended medical plans, enhancing accessibility for more clients [15]. - A new product named "Excellence Protection Indexed Universal Life" was introduced in the U.S., allowing employees to purchase personal coverage through a simplified electronic process [15]. Operational Efficiency and Technology - The company reported a 31% increase in calls completed without human interaction due to improved interactive voice response technology, enhancing the digital customer experience [16]. - In Asia, the automation of claims processing in Hong Kong has nearly doubled the number of directly processed claims compared to Q3 2022 [16]. - The "Goodbye Paper" initiative in Canada led to a 165% increase in the adoption rate of electronic applications among retirement business clients [16]. Risk Factors and Future Outlook - The company emphasizes that forward-looking statements involve risks and uncertainties that may cause actual results to differ significantly from those anticipated [46]. - The company highlighted significant risk factors that could lead to actual performance differing greatly from expectations, including economic conditions, market volatility, and credit spreads [47]. - The ongoing impact of the COVID-19 pandemic, including potential government actions in response to variants, was noted as a critical factor affecting future performance [48]. - The company acknowledged the importance of attracting and retaining key personnel to drive operational success [48].