Manulife Financial Corporation (MFC) shares have rallied 47.9% year to date, outperforming the industry’s growth of 31.5%, the Finance sector’s increase of 20.9% and the S&P 500 Composite’s gain of  24.4%. With a market capitalization of $57.4 billion, the average volume of shares traded in the last three months was 1.9 million.The strength of its Asia business, expanding Wealth and Asset Management business and solid capital position continue to drive this life insurer. Manulife is one of the three dominan ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for moment ...

Manulife Financial Corporation (MFC) has inked a $5.4 billion reinsurance agreement with Reinsurance Group of America (RGA) . This strategic move is intended to optimize the portfolio and release capital to distribute wealth to its shareholders.  The deal is priced at 11.4 times the core earnings multiple and bears testimony to its prudent LTC reserves and assumptions.Per the transaction, Manulife has reinsured its $2.4 billion of long-term care (LTC) reserves by RGA on a full-risk transfer basis. This repr ...

C$ unless otherwise stated                                                                                   TSX/NYSE/PSE: MFC     SEHK: 945TORONTO, Nov. 20, 2024 /PRNewswire/ - Manulife Financial Corporation ("Manulife") today announced the applicable dividend rates for its Non-cumulative Rate Reset Class 1 Shares Series 17 (the "Series 17 Preferred Shares") (TSX: MFC.PR.M) and Non-cumulative Floating Rate Class 1 Shares Series 18 (the "Series 18 Preferred Shares").With respect to any Series 17 Preferred S ...

C$ unless otherwise stated                                            TSX/NYSE/PSE: MFC     SEHK: 945Board names Phil Witherington, Manulife Asia CEO, as SuccessorTORONTO, Nov. 18, 2024 /PRNewswire/ - Manulife Financial Corporation's (MFC) Board today announced that President and Chief Executive Officer Roy Gori has informed them of his intention to retire, effective May 8, 2025, with Phil Witherington appointed as his successor and joining the Board of Directors at that time. To support this transition, fo ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tried-and-true metrics and fundamental ...

Have you been paying attention to shares of Manulife Financial (MFC) ? Shares have been on the move with the stock up 7.3% over the past month. The stock hit a new 52-week high of $32.94 in the previous session. Manulife Financial has gained 46.1% since the start of the year compared to the 23.3% move for the Zacks Finance sector and the 30.4% return for the Zacks Insurance - Life Insurance industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't m ...

Manulife Financial Corporation (MFC) delivered third-quarter 2024 core earnings of 73 cents per share, which beat the Zacks Consensus Estimate by 4.3%. The bottom line improved 5.7% year over year.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Core earnings of $1.3 billion (C$1.8 billion) remained unchanged year over year. The results reflected strong business growth led by Global WAM and Asia, and a lower net charge in the provision for Expected Credit Loss (ECL), more than offset ...

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 $1.828 billion, compared to $1.737 billion in Q2 2024 and $1.743 billion in Q3 2023[24] - Year-to-date core earnings for 2024 reached $5.319 billion, an 8.3% increase from $4.911 billion in the same period of 2023[24] - Core earnings after tax, on a constant currency basis, for Q3 2024 were $1.828 billion, with Asia contributing $619 million, Canada $412 million, and the US $411 million[30] - Core earnings before tax, on a constant currency basis, for Q3 2024 were $2.143 billion, with Asia contributing $684 million, Canada $516 million, and the US $523 million[30] - Core earnings after tax for Asia and US operations in USD for Q3 2024 were $453 million and $302 million respectively[30] - Core earnings after tax for Q2 2024 were $1.737 billion, with Asia contributing $647 million, Canada $402 million, and the US $415 million[33] - Core earnings before tax for Q2 2024 were $2.057 billion, with Asia contributing $711 million, Canada $509 million, and the US $510 million[33] - Core earnings after tax, on a constant currency basis, for Q2 2024 were $1.742 billion, with Asia contributing $654 million, Canada $402 million, and the US $413 million[34] - Core earnings before tax, on a constant currency basis, for Q2 2024 were $2.063 billion, with Asia contributing $719 million, Canada $509 million, and the US $508 million[34] - Core earnings after tax for Asia and US operations in USD for Q2 2024 were $478 million and $303 million respectively[34] - Core earnings for Q3 2024 reached $1,743 million (after tax), with Asia contributing $522 million, Canada $408 million, and the US $442 million[36] - Core earnings before tax for Q3 2024 totaled $2,036 million, with Asia contributing $584 million, Canada $517 million, and the US $535 million[36] - Core earnings on a constant currency basis for Q3 2024 were $1,759 million (after tax), with Asia contributing $526 million, Canada $408 million, and the US $449 million[37] - Core earnings before tax on a constant currency basis for Q3 2024 were $2,054 million, with Asia contributing $588 million, Canada $517 million, and the US $544 million[37] - Core earnings for the year-to-date 2024 reached $5,319 million (after tax), with Asia contributing $1,923 million, Canada $1,178 million, and the US $1,278 million[39] - Core earnings before tax for the year-to-date 2024 totaled $6,240 million, with Asia contributing $2,119 million, Canada $1,480 million, and the US $1,588 million[39] - Core profit after tax for the overall business in 2024 year-to-date is $5.319 billion, with Asia contributing $1.923 billion, Canada $1.178 billion, and the US $1.278 billion[40] - Core profit after tax on a constant currency basis for 2024 year-to-date is $5.340 billion, with Asia at $1.938 billion, Canada at $1.178 billion, and the US at $1.281 billion[40] - Core profit after tax for the overall business in 2023 year-to-date is $4.911 billion, with Asia contributing $1.484 billion, Canada $1.135 billion, and the US $1.285 billion[42] - Core profit after tax on a constant currency basis for 2023 year-to-date is $4.928 billion, with Asia at $1.473 billion, Canada at $1.135 billion, and the US at $1.303 billion[43] - Core profit after tax for Q3 2024 is $1.828 billion, with Q2 2024 at $1.737 billion and Q1 2024 at $1.754 billion[44] - Core profit attributable to common shareholders for 2024 year-to-date is $5.109 billion, with Q3 2024 at $1.772 billion, Q2 2024 at $1.638 billion, and Q1 2024 at $1.699 billion[44] - Core profit attributable to common shareholders on a constant currency basis for 2024 year-to-date is $5.130 billion, with Q3 2024 at $1.772 billion, Q2 2024 at $1.643 billion, and Q1 2024 at $1.715 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 $254 million, showing a significant increase from $200 million in Q2 2024[52] - Japan's new business CSM for Q3 2024 was $86 million, slightly down from $90 million in Q2 2024[52] - Asia's total new business CSM for Q3 2024 was $593 million, up from $478 million in Q2 2024[52] - Canada's new business CSM for Q3 2024 was $95 million, compared to $76 million in Q2 2024[52] - The US new business CSM for Q3 2024 was $71 million, down from $74 million in Q2 2024[52] - Total new business CSM for Q3 2024 was $759 million, up from $628 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's new business CSM on a fixed exchange rate basis for Q3 2024 was $593 million, up from $484 million in Q2 2024[52] - Total new business CSM on a fixed exchange rate basis for Q3 2024 was $759 million, up from $633 million in Q2 2024[52] - The company's new business CSM in other emerging markets in Asia for 2023 was $87 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 $572 million in Q3 2024, up from $513 million in Q2 2024 and $477 million in Q1 2024[57] - The company's core profit for global wealth and asset management in Q3 2024 was $499 million, compared to $399 million in Q2 2024 and $357 million in Q1 2024[57] - Core EBITDA for global wealth and asset management on a constant currency basis was $572 million in Q3 2024, slightly higher than the $511 million reported in Q2 2024[57] - The company's core profit for global wealth and asset management on a constant currency basis was $499 million in Q3 2024, unchanged from the reported figure[57] - Core profit after tax for the global wealth and asset management segment in 2024 year-to-date is $1.255 billion, while in 2023 year-to-date it is $968 million[40][42] - Core revenue for Q3 2024 reached $2.055 billion, up from $1.948 billion in Q2 2024[58] - Global Wealth and Asset Management core revenue for Q3 2024 was $2.055 billion, consistent with previous quarters[58] - Total investment income for Q3 2024 was $6.217 billion, with $226 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 $619 million to core earnings in Q3 2024, up 18.6% year-over-year from $522 million in Q3 2023[24] - Net income attributable to shareholders in Asia for Q3 2024 was $827 million, a significant increase from $582 million in Q2 2024 and $363 million in Q1 2024[55] - Net income attributable to shareholders in Canada for Q3 2024 was $430 million, a substantial increase from $79 million in Q2 2024 and $273 million in Q1 2024[55] - Net income attributable to shareholders in the U.S. for Q3 2024 was $5 million, a sharp decline from $135 million in Q2 2024 and a loss of $108 million in Q1 2024[55] - Net income attributable to shareholders in Asia on a constant currency basis for Q3 2024 was $827 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 $186 million in Q3 2024, compared to losses of $665 million in Q2 2024 and $1.022 billion in Q3 2023[24] - Actuarial methods and assumptions changes negatively impacted income by $199 million in Q3 2024[24] - Market experience losses for Q3 2024 were $1,022 million, with Asia contributing $286 million, Canada $159 million, and the US $476 million[36] - Market experience losses for the year-to-date 2024 were $1,258 million, with Asia contributing $95 million, Canada $439 million, and the US $1,018 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 $572 million, with a core EBITDA margin of 27.8%[58] - Core expenses for Q3 2024 were $1.716 billion, slightly up from $1.713 billion in Q2 2024[60] - Highest potential business core earnings for YTD 2024 were $3.745 billion, contributing 70% to total core earnings[61] - Total core earnings for YTD 2024 were $5.319 billion, up from $4.911 billion in 2023[61] - Net income attributable to shareholders for YTD 2024 was $3.747 billion, compared to $3.444 billion in 2023[61] - Adjusted book value as of September 30, 2024, stood at $61.508 billion, compared to $60.595 billion as of June 30, 2024, and $60.137 billion as of March 31, 2024[56] - The company's adjusted book value increased by $913 million from June 30, 2024, to September 30, 2024, reaching $61.508 billion[56]

[Financial Highlights](index=1&type=section&id=Financial%20Highlights) [Third Quarter 2024 Performance Overview](index=1&type=section&id=Third%20Quarter%202024%20Performance%20Overview) The company reported record core earnings of $1.8 billion and strong new business growth in Q3 2024 Q3 2024 Key Financial Metrics | Metric | Q3 2024 | Change vs Q3 2023 (Constant Exchange Rate) | | :--- | :--- | :--- | | Core Earnings | $1.8 billion | ▲ 4% | | Net Income to Shareholders | $1.8 billion | ▲ $0.8 billion | | Core EPS | $1.00 | ▲ 7% | | EPS | $1.00 | ▲ 91% | | Core ROE | 16.6% | -0.2 pps | | LICAT Ratio | 137% | Unchanged | | APE Sales | $2.3 billion | ▲ 40% | | New Business CSM | $759 million | ▲ 47% | | Global WAM Net Flows | $5.2 billion (inflows) | vs. $0.8 billion (outflows) | - Management highlighted progress on financial targets, noting strong business performance, disciplined capital allocation, and an expense efficiency ratio of **45.0% year-to-date**, in line with the medium-term target of less than 45%[2](index=2&type=chunk) - The company has returned over **$2 billion** to shareholders through its common share buyback program since the start of 2024[2](index=2&type=chunk) [Strategic Highlights](index=3&type=section&id=Strategic%20Highlights) Strategic priorities advanced through profitable growth initiatives, digital enhancements, and customer wellness programs - Key growth initiatives in Q3 2024 included rolling out the 'Manulife Pro' agent program contributing to over **20% YoY growth** in agency NBV and APE sales, launching new high-net-worth products, and closing a **$1.1 billion** institutional private equity fund[7](index=7&type=chunk) - Digital and AI enhancements were a key focus, with AI-enabled tools reducing average handling time by **28%** in the Japan contact center and a new strategic partnership with Ethos for instant term life insurance decisions[8](index=8&type=chunk) - Customer wellness initiatives were advanced by enhancing the Manulife Vitality mobile app in Canada and expanding access to multi-cancer early detection tests for John Hancock Vitality members in the U.S[8](index=8&type=chunk) [A. TOTAL COMPANY PERFORMANCE](index=7&type=section&id=A.%20TOTAL%20COMPANY%20PERFORMANCE) [Profitability](index=7&type=section&id=A1%20Profitability) Net income surged to $1.84 billion, while core earnings grew 4% to $1.83 billion, driven by market experience and business growth Quarterly Profitability (Q3 2024 vs. Q3 2023) | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income to Shareholders | $1,839 M | $1,013 M | ▲ $826 M | | Core Earnings | $1,828 M | $1,743 M | ▲ $85 M | | Items Excluded from Core Earnings | $11 M (gain) | $(730) M (charge) | - | | Core EPS | $1.00 | $0.92 | ▲ 7% (CER) | - The increase in core earnings was driven by higher net fee income in Global WAM, growth in the insurance business, and a lower charge in the expected credit loss (ECL) provision[19](index=19&type=chunk) - The expense efficiency ratio was **44.4%** in Q3 2024, with the year-to-date ratio improving to **45.0%** from 45.5%, aligning with the company's medium-term target of **less than 45%**[28](index=28&type=chunk)[30](index=30&type=chunk) [Business Performance](index=10&type=section&id=A2%20Business%20performance) The company achieved record new business results, with APE sales up 40%, and a significant turnaround in Global WAM net flows New Business Performance (Q3 2024 vs. Q3 2023) | Metric | Q3 2024 | Q3 2023 | Change (CER) | | :--- | :--- | :--- | :--- | | APE Sales | $2,347 M | $1,657 M | ▲ 40% | | New Business Value (NBV) | $843 M | $600 M | ▲ 39% | | New Business CSM | $759 M | $507 M | ▲ 47% | - Segment contributions to new business growth were led by **Asia** with **64% growth in APE sales**, while the **U.S.** delivered double-digit growth across all metrics[32](index=32&type=chunk) - Global WAM net inflows of **$5.2 billion** were driven by a turnaround in Retail (+$3.9B vs. -$0.2B in Q3'23) and Retirement (+$0.6B vs. -$3.4B in Q3'23)[34](index=34&type=chunk) - The Contractual Service Margin (CSM) net of NCI stood at **$20.9 billion** as of September 30, 2024, an increase of $490 million since year-end 2023[34](index=34&type=chunk) [Financial Strength](index=12&type=section&id=A3%20Financial%20strength) A strong financial position was maintained with a stable LICAT ratio of 137% and an improved financial leverage ratio of 23.5% Key Financial Strength Indicators (as of Sept 30, 2024) | Indicator | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | MLI's LICAT Ratio | 137% | 137% | | Financial Leverage Ratio | 23.5% | 25.2% | | Book Value per Common Share | $24.40 | $22.42 | | Adjusted Book Value per Common Share | $34.97 | $30.67 | - The financial leverage ratio decreased by **1.7 percentage points** from Q3 2023, primarily due to the redemption of capital instruments and an increase in total equity[36](index=36&type=chunk) - The company has purchased **51 million common shares** for cancellation as of September 30, 2024, and plans to purchase the maximum 90 million shares approved under its current normal course issuer bid[37](index=37&type=chunk) [Assets Under Management and Administration (AUMA)](index=13&type=section&id=A4%20Assets%20under%20management%20and%20administration%20(AUMA)) Total AUMA reached $1.6 trillion, a 10% increase from year-end 2023, driven by favorable markets and net inflows - AUMA increased by **10% to $1.6 trillion** compared to December 31, 2023[39](index=39&type=chunk) - The increase was attributed to the favorable impact of interest rates on debt instruments, positive equity market performance, and net inflows[39](index=39&type=chunk) [Impact of Foreign Currency Exchange Rates](index=13&type=section&id=A5%20Impact%20of%20foreign%20currency%20exchange%20rates) Foreign currency fluctuations had a modest impact, with a weaker Canadian dollar increasing Q3 core earnings by $20 million - Changes in foreign currency exchange rates increased Q3 2024 core earnings by **$20 million**, primarily due to a weaker Canadian dollar versus the U.S. dollar[40](index=40&type=chunk) - Year-to-date core earnings decreased by **$4 million** due to currency effects, mainly from a stronger Canadian dollar compared to the Japanese yen[40](index=40&type=chunk) [Business Highlights](index=13&type=section&id=A6%20Business%20highlights) Strategic execution focused on driving profitable growth, elevating customer experience, and promoting healthier lives - **Driving Growth:** Expanded 'Manulife Pro' agent program to Hong Kong, boosting agency NBV and APE sales by **over 20% YoY**, and closed a **$1.1 billion** institutional private equity fund[41](index=41&type=chunk) - **Elevating Customer Experience:** Deployed AI in Japan's contact center, **reducing handling time by 28%**, and launched new mobile apps in Vietnam and Indonesia[42](index=42&type=chunk) - **Promoting Healthier Lives:** Enhanced the Manulife Vitality app in Canada, **increasing utilization by 9% YoY**, and expanded access to multi-cancer early detection tests in the U.S[43](index=43&type=chunk) [Strategic Priorities](index=14&type=section&id=A7%20Strategic%20priorities) Manulife raised key financial targets, including a core ROE of 18%+ by 2027 and cumulative remittances over $22 billion - The company raised several key financial targets, including: **Core ROE of 18%+ by 2027**, **Cumulative Remittances of $22 billion+** between 2024 and 2027, and an **Expense Efficiency Ratio of <45%** in the medium-term[44](index=44&type=chunk) - Manulife reconfirmed its other medium-term financial targets, including core EPS growth of **10% to 12%** and new business CSM growth of **15%**[44](index=44&type=chunk) [B. PERFORMANCE BY SEGMENT](index=15&type=section&id=B.%20PERFORMANCE%20BY%20SEGMENT) [Asia](index=15&type=section&id=B1%20Asia) The Asia segment served as a primary growth engine, with core earnings up 17% and APE sales surging 64% Asia Segment Performance (Q3 2024 vs. Q3 2023, in US$) | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income to Shareholders | $606 M | $63 M | ▲ 877% | | Core Earnings | $453 M | $390 M | ▲ 17% | | APE Sales | $1,372 M | $835 M | ▲ 64% | | New Business Value (NBV) | $481 M | $310 M | ▲ 55% | - Core earnings growth was driven by an increase in expected earnings on insurance contracts from business growth and the net impact of updates to actuarial methods and assumptions[46](index=46&type=chunk)[47](index=47&type=chunk) - APE sales growth was broad-based, with Hong Kong APE sales increasing **173% to US$570 million**, Japan up **83%**, and Asia Other up **21%**[48](index=48&type=chunk) [Canada](index=17&type=section&id=B2%20Canada) The Canada segment delivered stable results with a 1% increase in core earnings, though APE sales declined from a strong prior year Canada Segment Performance (Q3 2024 vs. Q3 2023) | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income to Shareholders | $430 M | $290 M | ▲ 48% | | Core Earnings | $412 M | $408 M | ▲ 1% | | APE Sales | $343 M | $431 M | ▼ 20% | - The **20% decrease in APE sales** was primarily due to the non-recurrence of a large affinity markets sale in Q3 2023[53](index=53&type=chunk) - Manulife Bank's average net lending assets grew **4% to $26.2 billion** compared to year-end 2023, driven by improved mortgage retention and business growth[54](index=54&type=chunk)[55](index=55&type=chunk) [U.S.](index=19&type=section&id=B3%20U.S.) The U.S. segment saw an 8% core earnings decline but positive business momentum with a 23% increase in APE sales U.S. Segment Performance (Q3 2024 vs. Q3 2023, in US$) | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income to Shareholders | $5 M | $53 M | ▼ 91% | | Core Earnings | $302 M | $329 M | ▼ 8% | | APE Sales | $97 M | $79 M | ▲ 23% | - The decrease in core earnings was driven by lower expected investment earnings and the impact of the GA Reinsurance transaction, partially offset by a lower ECL provision and favorable life claims experience[59](index=59&type=chunk) - APE sales of products featuring John Hancock Vitality PLUS represented **79% of overall U.S. sales** in Q3 2024, up from 71% in Q3 2023[60](index=60&type=chunk) [Global Wealth and Asset Management](index=20&type=section&id=B4%20Global%20Wealth%20and%20Asset%20Management) The Global WAM segment delivered a record quarter with core earnings up 37% and a sharp reversal to $5.2 billion in net inflows Global WAM Performance (Q3 2024 vs. Q3 2023) | Metric | Q3 2024 | Q3 2023 | Change | | :--- | :--- | :--- | :--- | | Net Income to Shareholders | $498 M | $318 M | ▲ 55% | | Core Earnings | $499 M | $361 M | ▲ 37% | | Net Flows | $5.2 B (inflows) | $(0.8) B (outflows) | - | | Core EBITDA Margin | 27.8% | 26.9% | ▲ 90 bps | - Core earnings growth was driven by higher average AUMA, favorable tax benefits totaling **$70 million**, and disciplined expense management[63](index=63&type=chunk) - The **$6.0 billion increase in net flows** was primarily due to a turnaround in Retirement (net inflows of $0.6B vs. outflows of $3.4B) and Retail (net inflows of $3.9B vs. outflows of $0.2B)[63](index=63&type=chunk) [Corporate and Other](index=22&type=section&id=B5%20Corporate%20and%20Other) The Corporate and Other segment reported a core loss of $113 million, driven by a new Global Minimum Tax charge - The segment's core loss was **$113 million**, a $123 million decrease from the prior-year quarter's core earnings of $10 million[65](index=65&type=chunk) - A key driver of the decline was an **$89 million charge** for the Global Minimum Tax (GMT), of which $61 million was recorded in core earnings[65](index=65&type=chunk) - Higher interest on capital allocated to the Asia, Global WAM, and U.S. operating segments also contributed to the decline in core earnings[65](index=65&type=chunk) [C. RISK MANAGEMENT AND RISK FACTORS UPDATE](index=22&type=section&id=C.%20RISK%20MANAGEMENT%20AND%20RISK%20FACTORS%20UPDATE) [Variable Annuity and Segregated Fund Guarantees](index=23&type=section&id=C1%20Variable%20annuity%20and%20segregated%20fund%20guarantees) The net amount at risk from guarantees decreased to $1.6 billion, reflecting ongoing risk mitigation strategies Net Amount at Risk from Guarantees (Net of Reinsurance) | Date | Net Amount at Risk | | :--- | :--- | | September 30, 2024 | $1,589 million | | December 31, 2023 | $2,463 million | [Publicly Traded Equity Performance Risk Sensitivities](index=23&type=section&id=C3%20Publicly%20traded%20equity%20performance%20risk%20sensitivities%20and%20exposure%20measures) Net income is sensitive to equity markets, with a 10% decline estimated to reduce net income by $400 million after hedging Potential Impact on Net Income from Public Equity Changes (as of Sept 30, 2024) | Equity Market Change | Impact on Net Income Attributed to Shareholders | | :--- | :--- | | -30% | $(1,210) million | | -10% | $(400) million | | +10% | $400 million | | +30% | $1,200 million | [Interest Rate and Spread Risk Sensitivities](index=26&type=section&id=C4%20Interest%20rate%20and%20spread%20risk%20sensitivities%20and%20exposure%20measures) Net income shows balanced sensitivity to interest rates, with a 50 basis point parallel decline estimated to benefit net income by $100 million Potential Impact on Net Income from Rate/Spread Changes (as of Sept 30, 2024) | Scenario | Impact on Net Income | | :--- | :--- | | Interest Rates -50 bp | $100 million | | Interest Rates +50 bp | $(100) million | | Corporate Spreads +50 bp | $(100) million | | Swap Spreads -20 bp | $200 million | [Alternative Long-Duration Asset (ALDA) Performance Risk Sensitivities](index=28&type=section&id=C5%20Alternative%20long-duration%20asset%20performance%20risk%20sensitivities%20and%20exposure%20measures) Earnings are significantly exposed to ALDA performance, with a 10% market value decline estimated to reduce net income by $2.5 billion Potential Impact on Net Income from ALDA Market Value Changes (as of Sept 30, 2024) | ALDA Market Value Change | Impact on Net Income Attributed to Shareholders | | :--- | :--- | | -10% | $(2,500) million | | +10% | $2,500 million | [Strategic and Product Risk Factors Update](index=29&type=section&id=C6%20Strategic%20and%20product%20risk%20factors%20update) The new Global Minimum Tax is expected to increase the effective tax rate by 2 to 3 percentage points - The newly enacted Global Minimum Tax (GMT) Act in Canada is expected to increase the company's effective tax rate by approximately **2 to 3 percentage points**[91](index=91&type=chunk) - The company is in disputes with some reinsurers who have attempted to increase rates on existing contracts, but is enforcing its contractual rights and believes its reserves are appropriate[93](index=93&type=chunk) [D. CRITICAL ACTUARIAL AND ACCOUNTING POLICIES](index=30&type=section&id=D.%20CRITICAL%20ACTUARIAL%20AND%20ACCOUNTING%20POLICIES) [Actuarial Methods and Assumptions](index=30&type=section&id=D2%20Actuarial%20methods%20and%20assumptions) The annual actuarial review resulted in a $199 million post-tax decrease in net income, driven by updates to lapse and reinsurance assumptions Impact of 2024 Actuarial Review on Pre-tax Fulfilment Cash Flows | Assumption Update | Impact on Pre-tax Fulfilment Cash Flows | | :--- | :--- | | Lapse and policyholder behaviour | $620 M | | Reinsurance contract and risk adjustment | $427 M | | Expense updates | $(406) M | | Financial related updates | $(386) M | | Mortality and morbidity updates | $(273) M | | Methodology and other updates | $(156) M | | **Total Impact** | **$(174) M** | - The **$174 million decrease** in pre-tax fulfillment cash flows translated into a $250 million pre-tax (**$199 million post-tax**) decrease in net income attributed to shareholders[97](index=97&type=chunk)[99](index=99&type=chunk) - Key assumption changes included updates to **lapse rates** for U.S. life insurance, **reinsurance** costs on older U.S. mortality blocks, a global **expense** review, and updates to **discount rates**[99](index=99&type=chunk)[100](index=100&type=chunk) [E. OTHER](index=35&type=section&id=E.%20OTHER) [Non-GAAP and Other Financial Measures](index=35&type=section&id=E3%20Non-GAAP%20and%20other%20financial%20measures) This section defines and reconciles non-GAAP measures like core earnings used to evaluate long-term operating performance - **Core earnings** is a key non-GAAP measure used to assess the long-term earnings capacity of the business by excluding market-related volatility and other non-recurring items[117](index=117&type=chunk) - The report provides detailed reconciliations of core earnings to net income attributed to shareholders for Q3 2024, prior quarters, and year-to-date periods, broken down by operating segment[122](index=122&type=chunk)[124](index=124&type=chunk)[130](index=130&type=chunk) - Other defined and reconciled measures include Core ROE, Core EPS, AUMA, CSM, Core EBITDA, and the expense efficiency ratio, providing a comprehensive view of management's performance metrics[145](index=145&type=chunk)[163](index=163&type=chunk)[184](index=184&type=chunk) [Quarterly Financial Information](index=72&type=section&id=E5%20Quarterly%20financial%20information) A summary of key financial data for the last eight quarters shows total revenue for Q3 2024 was $14.6 billion Quarterly Financial Summary | Metric ($ millions, except per share) | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 14,586 | 12,876 | 12,798 | 14,917 | 9,125 | | Net Income to Shareholders | 1,839 | 1,042 | 866 | 1,659 | 1,013 | | Diluted EPS | $1.00 | $0.52 | $0.45 | $0.86 | $0.52 | [Revenue](index=73&type=section&id=E6%20Revenue) Total revenue increased to $14.6 billion in Q3 2024 from $9.1 billion in Q3 2023, driven by higher net investment income Revenue Breakdown (Q3 2024 vs. Q3 2023) | Revenue Component ($ millions) | Q3 2024 | Q3 2023 | | :--- | :--- | :--- | | Insurance Revenue | 6,746 | 6,215 | | Net Investment Income | 5,912 | 1,265 | | Other Revenue | 1,928 | 1,645 | | **Total Revenue** | **14,586** | **9,125** |