Core Insights - The company reported a core profit of CAD 1.767 billion for the three months ending March 31, 2025, a decrease of 1% year-over-year [1] - Net income attributable to shareholders was CAD 485 million, down 47% compared to the previous year [1] - The global wealth and asset management business saw net inflows of CAD 500 million, significantly lower than the CAD 6.7 billion net inflows achieved in the first quarter of 2024 [1] Business Performance - The company started the new year with strong momentum, achieving record new business performance in the insurance sector for the quarter [1] - All business units in the insurance sector experienced double-digit growth in new business value, with Asia showing a year-on-year increase of 43% [1] - Core profit in the global wealth and asset management business grew by 24%, with a core EBITDA margin expansion of 290 basis points [1] Strategic Developments - The company completed its second long-term care reinsurance transaction, demonstrating its commitment to creating sustainable value for shareholders [1] - The company expressed confidence in navigating the current economic environment and seizing growth opportunities, supported by a robust balance sheet [1] - The LICAT ratio remained strong at 137%, and the financial leverage ratio was at 23.9%, within the mid-term target range of 25% [1]

Business Performance - The new business value in the insurance sector reached a record high, with a year-on-year growth of 43% in Asia, contributing to a 36% increase in new business value overall [4]. - Core earnings for Q1 2025 were CAD 1.767 billion, a decrease of 1% compared to Q1 2024, while net income attributable to shareholders was CAD 485 million, down 47% [6]. - Core EPS increased by 3% to CAD 0.99, while overall EPS fell by 48% to CAD 0.25 [6]. - APE sales rose by 37% to CAD 2.689 billion, and new business CSM increased by 31% to CAD 907 million [6]. - In Q1 2025, core earnings were CAD 1.8 billion, a decrease of 1% compared to Q1 2024 [13]. - Net income attributable to shareholders in Q1 2025 was CAD 500 million, down CAD 400 million from Q1 2024, primarily due to increased net provisions from market experience [14]. - APE sales, new business CSM, and new business value in the insurance sector grew by 37%, 31%, and 36% year-over-year, respectively, in Q1 2025 [15]. - Core earnings for Q1 2025 totaled CAD 1,767 million, a decrease from CAD 1,907 million in Q4 2024 but an increase from CAD 1,710 million in Q1 2024 [24]. - The net income attributable to shareholders for Q1 2025 was CAD 485 million, down from CAD 1,638 million in Q4 2024 and CAD 866 million in Q1 2024 [24]. Financial Metrics - The LICAT ratio remained strong at 137%, and the financial leverage ratio was 23.9%, within the mid-term target range of 25% [4]. - The core EBITDA margin for the global wealth and asset management business expanded by 290 basis points to 28.4% [8]. - The market experience loss for Q1 2025 was CAD 1,332 million, compared to a loss of CAD 192 million in Q4 2024 and a loss of CAD 779 million in Q1 2024 [24]. - The company reported a core earnings tax adjustment of $331 million for Q1 2025, consistent with the effective rates applied during the reporting period [31]. - The company reported a total investment income of $3,242 million for Q1 2025, down from $4,628 million in Q4 2024 [49]. - The company’s total income before tax was $1,252 million, with a significant contribution from the Asia segment at $594 million [35]. - The company’s core earnings tax adjustment for Q1 2024 was $330 million, reflecting the effective tax rate applied [37]. Market and Strategic Initiatives - The company launched FutureStepTM, a new digital retirement plan product for small businesses in the U.S., enhancing its market presence [9]. - A strategic partnership with China Banking Corporation was extended for 15 years to provide comprehensive financial solutions in the Philippines [9]. - The company completed a reinsurance transaction with Reinsurance Group of America, releasing capital to be returned to shareholders through a new share buyback plan [9]. - The company is focusing on expanding its market presence and enhancing its product offerings as part of its strategic initiatives [23]. - The company plans to return capital through share buybacks as part of its strategy to achieve mid-term financial and operational goals [50]. Regional Performance - In Asia, APE sales, new business CSM, and new business value reached record highs, growing by 50%, 38%, and 43% year-over-year, respectively [18]. - In Canada, APE sales increased by 9%, with new business value growing by 15% compared to Q1 2024 [18]. - The net income from Asia for Q1 2025 was $624 million, up from $583 million in Q4 2024, while the U.S. reported a loss of $569 million [45]. - The net income from Canada for Q1 2025 was $222 million, a decrease from $439 million in Q4 2024 [45]. Risks and Uncertainties - The company emphasizes that forward-looking statements are subject to significant risks and uncertainties, which may cause actual results to differ materially from expectations [50]. - Key factors affecting actual performance include general business and economic conditions, market volatility, interest rates, and credit spreads [52]. - Future performance may be influenced by geopolitical uncertainties, including international disputes and trade issues [52]. - The potential impact of climate change and environmental factors on the company's operations is acknowledged as a significant risk [52]. - The company acknowledges the importance of adapting to market changes and retaining key personnel to ensure operational effectiveness [52].

[First Quarter Report Overview](index=1&type=section&id=First%20Quarter%20Report%20Overview) Manulife achieved record insurance new business and double-digit NBV growth, with strong core earnings in Global WAM and a robust financial position [Key Highlights](index=1&type=section&id=Key%20Highlights) Manulife reported strong 1Q25 results with record insurance new business, double-digit NBV growth, significant Global WAM core earnings, and a robust financial position - Delivered record levels of total company annualized premium equivalent ("APE") sales, new business contractual service margin ("new business CSM") and new business value ("NBV")[3](index=3&type=chunk)[5](index=5&type=chunk)[8](index=8&type=chunk) - Achieved double-digit growth in new business value across all insurance segments, with Asia leading at a **43% increase year over year**[5](index=5&type=chunk) - Global Wealth and Asset Management (Global WAM) delivered **24% core earnings growth** and expanded core EBITDA margin by **290 basis points**[5](index=5&type=chunk) - Completed the second long-term care reinsurance transaction[5](index=5&type=chunk) - Book value per common share increased steadily by **12% year over year**[6](index=6&type=chunk) - Maintained a strong Life Insurance Capital Adequacy Test (LICAT) ratio of **137%** and a financial leverage ratio of **23.9%**, well within the medium-term target[6](index=6&type=chunk) [A. Total Company Performance](index=5&type=section&id=A.%20TOTAL%20COMPANY%20PERFORMANCE) Manulife's total performance saw mixed profitability with decreased net income but increased core earnings, strong insurance sales, stable capital, and strategic business advancements [A1 Profitability](index=6&type=section&id=A1%20Profitability) Net income decreased significantly due to market experience, while core earnings slightly increased, driven by Global WAM and insurance business growth Quarterly Financial Results (1Q25 vs 1Q24) | Metric | 1Q25 (CAD millions) | 1Q24 (CAD millions) | Change (%) | | :--------------------------------- | :------------------ | :------------------ | :--------- | | Net income attributed to shareholders | 485 | 866 | (47)% | | Core earnings | 1,767 | 1,710 | (1)% | | EPS ($) | 0.25 | 0.45 | (48)% | | Core EPS ($) | 0.99 | 0.91 | 3% | | ROE | 3.9% | 8.0% | (4.1) pps | | Core ROE | 15.6% | 16.2% | (0.6) pps | | Book value per common share ($) | 25.88 | 23.09 | 12% | | Financial leverage ratio (%) | 23.9% | 24.6% | (0.7) pps | - Net income decrease driven by a **$1,332 million net charge** from market experience in 1Q25, including realized losses on debt instruments related to the RGA U.S. Reinsurance Transaction, lower-than-expected returns on alternative long-duration assets (ALDA) and public equities, and a charge from derivatives and hedge accounting ineffectiveness[53](index=53&type=chunk)[65](index=65&type=chunk) - Core earnings decline (on a constant exchange rate basis) was primarily due to a net increase in the provision for expected credit loss (ECL) of **$45 million post-tax** in 1Q25 (compared to an $8 million post-tax release in 1Q24) and a **$43 million post-tax charge** for estimated losses from the California wildfires in the Property and Casualty (P&C) Reinsurance business[55](index=55&type=chunk) - The reduction in core earnings was partially offset by higher core earnings in Global Wealth and Asset Management (Global WAM), reflecting increased net fee income from higher average assets under management and administration (AUMA) and positive net flows, higher performance fees, and disciplined expense management[55](index=55&type=chunk) - The expense efficiency ratio increased to **45.9%** in 1Q25 from 45.1% in 1Q24, reflecting a **2% decrease** in pre-tax core earnings and a **2% increase** in core expenses[73](index=73&type=chunk) [A2 Business Performance](index=8&type=section&id=A2%20Business%20Performance) Strong insurance sales and NBV growth were achieved, but Global WAM net inflows decreased, while CSM increased from organic growth Insurance New Business Metrics (1Q25 vs 1Q24) | Metric | 1Q25 (CAD millions) | 1Q24 (CAD millions) | Change (%) | | :---------------- | :------------------ | :------------------ | :--------- | | APE sales | 2,689 | 1,883 | 37% | | New business CSM | 907 | 658 | 31% | | NBV | 907 | 641 | 36% | - Global WAM net inflows decreased significantly to **$0.5 billion** in 1Q25, down from **$6.7 billion** in 1Q24[15](index=15&type=chunk)[79](index=79&type=chunk) - CSM net of NCI was **$22,296 million** as at March 31, 2025, an increase of **$169 million** compared with December 31, 2024[78](index=78&type=chunk) - Organic CSM movement contributed **$598 million** of the increase for 1Q25, representing an **11% growth** on an annualized basis, primarily driven by the impact of new business, interest accretion, and net favourable insurance experience[78](index=78&type=chunk) - Inorganic CSM movement was a decrease of **$429 million**, primarily driven by the unfavourable impacts of equity market performance and the RGA U.S. Reinsurance Transaction[78](index=78&type=chunk) [A3 Financial Strength](index=9&type=section&id=A3%20Financial%20Strength) Manulife maintained a strong financial position with a stable LICAT ratio, improved financial leverage, and increased book value per share Financial Strength Metrics (1Q25 vs 4Q24) | Metric | 1Q25 | 4Q24 | Change | | :--------------------------------- | :----- | :----- | :------- | | MLI's LICAT ratio | 137% | 137% | 0 pps | | Financial leverage ratio | 23.9% | 24.0% | (0.1) pps | | Consolidated capital ($ billions) | 80.4 | 79.9 | 0.5 | | Book value per common share ($) | 25.88 | 25.63 | 1% | | Adjusted book value per common share ($) | 36.66 | 36.25 | 1% | - The stability of MLI's LICAT ratio was due to positive impacts from the RGA U.S. Reinsurance Transaction, earnings, and CSM, which were offset by the impact of new segregated fund capital requirements and common share buybacks[81](index=81&type=chunk) - MFC's financial leverage ratio decreased by **0.1 percentage points**, driven by an increase in total equity and higher post-tax CSM[83](index=83&type=chunk) - Book value per common share increased by **1% to $25.88**, driven by an increase in total comprehensive income and a net decrease of **11 million common shares** outstanding due to buybacks[87](index=87&type=chunk) [A4 Assets under Management and Administration ("AUMA")](index=10&type=section&id=A4%20Assets%20under%20Management%20and%20Administration%20%28%22AUMA%22%29) Total AUMA decreased by 1% to $1.6 trillion, primarily due to unfavorable equity markets and reinsurance transactions, partially offset by interest rates and net inflows - AUMA as at March 31, 2025, was **$1.6 trillion**, a decrease of **1%** compared with December 31, 2024[89](index=89&type=chunk) - The decrease was primarily due to the unfavourable impact of equity markets and the transfer of invested assets related to the RGA U.S. Reinsurance Transaction[89](index=89&type=chunk) - This decrease was partially offset by the impact of interest rates on debt securities and net inflows[89](index=89&type=chunk) [A5 Impact of Foreign Currency Exchange Rates](index=10&type=section&id=A5%20Impact%20of%20Foreign%20Currency%20Exchange%20Rates) Foreign currency exchange rate changes favorably impacted core earnings by $78 million, driven by a weaker Canadian dollar - Changes in foreign currency exchange rates increased core earnings by **$78 million** in 1Q25 compared with 1Q24[90](index=90&type=chunk) - This increase was primarily due to a weaker Canadian dollar relative to the U.S. dollar[90](index=90&type=chunk) [A6 Business Highlights](index=10&type=section&id=A6%20Business%20Highlights) Manulife advanced strategic priorities through new digital retirement plans, renewed partnerships, innovative insurance products, and enhanced GenAI capabilities - Launched FutureStepTM, a new fully digital retirement plan offering for small businesses in the U.S., in collaboration with Vestwell[19](index=19&type=chunk)[91](index=91&type=chunk) - Renewed bancassurance partnership in the Philippines with China Banking Corporation for another **15 years**[20](index=20&type=chunk)[92](index=92&type=chunk) - Closed the previously announced transaction to reinsure two blocks of in-force business with Reinsurance Group of America, with plans to return capital through a new share buyback program[21](index=21&type=chunk)[93](index=93&type=chunk) - Introduced a Shared Values proposition in Asia, combining high-net-worth life insurance with comprehensive health benefits (e.g., whole-body MRI, medical second opinion, critical illness)[21](index=21&type=chunk)[93](index=93&type=chunk) - Launched the John Hancock CQS Asset Backed Securities (ABS) Fund in the U.S., offering exposure to the global ABS market[22](index=22&type=chunk)[94](index=94&type=chunk) - Strengthened GenAI capabilities in Asia to enhance sales support and customer experience, rolling out an AI Assistant solution in Singapore and Japan[24](index=24&type=chunk)[98](index=98&type=chunk) - Introduced an innovative GenAI tool in Canada's Individual Insurance business, enabling personalized communications to advisors and contributing to an **11% year-over-year increase** in advisors placing business[25](index=25&type=chunk)[99](index=99&type=chunk) - Became the first life insurer to offer eligible John Hancock Vitality members access to Function Health's technology and screening tools (over 100 lab tests) in the U.S.[26](index=26&type=chunk)[101](index=101&type=chunk) [A7 Global Minimum Taxes ("GMT")](index=11&type=section&id=A7%20Global%20Minimum%20Taxes%20%28%22GMT%22%29) Canada enacted the Global Minimum Tax Act, retroactively impacting Manulife's core earnings and net income, with 2024 comparatives updated - The Canadian government passed the Global Minimum Tax Act into law, applied retroactively to fiscal periods commencing on or after December 31, 2023[103](index=103&type=chunk) - Global Minimum Taxes (GMT) are now recognized in net income within the reporting segments whose earnings are subject to this tax, reported in both core earnings and items excluded from core earnings[104](index=104&type=chunk) - Manulife updated 2024 quarterly core earnings to reallocate GMT from the Corporate and Other segment to the segment whose core earnings are subject to this tax, with no impact to 2024 quarterly net income attributed to shareholders[105](index=105&type=chunk) - In total, **$231 million** in GMT expense was recorded in 2024, with **$208 million** now reported in core earnings and **$23 million** in items excluded from core earnings[105](index=105&type=chunk) - The Company expects to pay GMT of **$61 million** for the three months ended March 31, 2025, arising from its operations in Barbados, China, and Hong Kong (compared to $44 million for all worldwide operations in 2024)[392](index=392&type=chunk) [B. Performance by Segment](index=11&type=section&id=B.%20PERFORMANCE%20BY%20SEGMENT) Segment performance varied, with strong growth in Asia and Global WAM, modest growth in Canada, and a net loss in the U.S. segment [B1 Asia](index=11&type=section&id=B1%20Asia) Asia segment showed strong 1Q25 performance with significant increases in net income, core earnings, APE sales, and NBV, driven by robust sales Asia Segment Profitability (US$ millions, 1Q25 vs 1Q24) | Metric | 1Q25 | 1Q24 | Change (%) | | :--------------------------------- | :--- | :--- | :--------- | | Net income attributed to shareholders | 435 | 270 | 57% | | Core earnings | 492 | 465 | 7% | - Core earnings increased by **7% (in US$)** driven by an increase in expected earnings on insurance contracts, improved impact of new business, and favourable claims experience, partially offset by an increase in the Expected Credit Loss (ECL) provision[112](index=112&type=chunk) Asia Segment Business Performance (US$ millions, 1Q25 vs 1Q24) | Metric | 1Q25 | 1Q24 | Change (%) | | :------------------------ | :--- | :--- | :--------- | | APE sales | 1,412 | 950 | 50% | | NBV | 457 | 323 | 43% | | New business CSM | 498 | 364 | 38% | | NBV margin | 38.1% | 41.7% | (3.6) pps | - Sales growth was driven by Hong Kong (APE sales up **172%**), Asia Other (APE sales up **16%**), and Japan (APE sales up **45%**)[113](index=113&type=chunk)[117](index=117&type=chunk) - Renewed bancassurance partnership in the Philippines with China Banking Corporation for another **15 years**[118](index=118&type=chunk) - Strengthened GenAI capabilities to enhance sales support and customer experience, rolling out an AI Assistant solution in Singapore and Japan[118](index=118&type=chunk)[119](index=119&type=chunk) [B2 Canada](index=13&type=section&id=B2%20Canada) Canada segment saw decreased net income but increased core earnings, with APE sales and NBV growth driven by higher sales and digital advancements Canada Segment Profitability (CAD millions, 1Q25 vs 1Q24) | Metric | 1Q25 | 1Q24 | Change (%) | | :--------------------------------- | :--- | :--- | :--------- | | Net income attributed to shareholders | 222 | 273 | (19)% | | Core earnings | 374 | 364 | 3% | - Core earnings increased by **$10 million or 3%**, reflecting overall favourable net insurance experience and business growth in Group Insurance, partially offset by an increase in the provision for Expected Credit Loss (ECL) and lower Manulife Bank earnings[122](index=122&type=chunk) Canada Segment Business Performance (CAD millions, 1Q25 vs 1Q24) | Metric | 1Q25 | 1Q24 | Change (%) | | :---------------- | :--- | :--- | :--------- | | APE sales | 491 | 450 | 9% | | NBV | 180 | 157 | 15% | | New business CSM | 91 | 70 | 30% | - APE sales increased across all business lines: Individual Insurance (up **19%**), Group Insurance (up **4%**), and Annuities (up **12%**)[128](index=128&type=chunk) - Introduced an innovative GenAI tool within the Individual Insurance business, enabling personalized communications to advisors and contributing to an **11% year-over-year increase** in advisors placing business[129](index=129&type=chunk) - Further enhanced the Manulife Vitality program with offerings to assist members in meeting health and wellness goals, including resources for diabetes management and extended travel rewards[129](index=129&type=chunk) [B3 U.S.](index=13&type=section&id=B3%20U.S.) U.S. segment reported a net loss and decreased core earnings due to unfavorable experience, despite growth in APE sales and NBV U.S. Segment Profitability (US$ millions, 1Q25 vs 1Q24) | Metric | 1Q25 | 1Q24 | Change (%) | | :--------------------------------- | :--- | :--- | :--------- | | Net income attributed to shareholders | (397) | (80) | (396)% | | Core earnings | 251 | 335 | (25)% | - Core earnings decreased by **US$84 million or 25%**, reflecting unfavourable net claims experience, lower expected investment earnings, an increase in the Expected Credit Loss (ECL) provision, and the net impact of the annual review of actuarial methods and assumptions in 2024[133](index=133&type=chunk) U.S. Segment Business Performance (US$ millions, 1Q25 vs 1Q24) | Metric | 1Q25 | 1Q24 | Change (%) | | :---------------- | :--- | :--- | :--------- | | APE sales | 120 | 113 | 6% | | NBV | 48 | 37 | 30% | | New business CSM | 70 | 72 | (3)% | - APE sales increased by **6%**, reflecting continued demand from affluent customers for accumulation insurance products[134](index=134&type=chunk) - Became the first life insurer to offer eligible John Hancock Vitality members access to Function Health's technology and screening tools, including over **100 lab tests**[138](index=138&type=chunk) - Introduced a new hybrid indexed universal life insurance solution offering more flexible living benefits and a streamlined digital application process[138](index=138&type=chunk) [B4 Global Wealth and Asset Management](index=15&type=section&id=B4%20Global%20Wealth%20and%20Asset%20Management) Global WAM achieved significant increases in net income, core earnings, and EBITDA, driven by fee income and expense management, despite decreased net inflows Global WAM Profitability (CAD millions, 1Q25 vs 1Q24) | Metric | 1Q25 | 1Q24 | Change (%) | | :--------------------------------- | :--- | :--- | :--------- | | Net income attributed to shareholders | 443 | 365 | 15% | | Core earnings | 454 | 349 | 24% | | Core EBITDA | 608 | 477 | 22% | | Core EBITDA margin (%) | 28.4% | 25.5% | 290 bps | - Core earnings increased by **$105 million or 24%**, driven by an increase in net fee income from higher average AUMA (due to favourable market impacts and net inflows), higher performance fees, and disciplined expense management[142](index=142&type=chunk) Global WAM Business Performance (CAD millions, 1Q25 vs 1Q24) | Metric | 1Q25 | 1Q24 | Change (%) | | :-------------------------------------- | :----- | :----- | :--------- | | Wealth and asset management gross flows | 50,274 | 45,444 | 5% | | Wealth and asset management net flows | 489 | 6,723 | (93)% | | Assets under management and administration ($ billions) | 1,026.3 | 911.4 | 13% | | Average AUMA ($ billions) | 1,041 | 879.8 | 13% | - Net inflows decreased significantly due to Retirement net outflows of **$2.6 billion** (vs. $3.2 billion inflows in 1Q24) and Retail net inflows of **$0.5 billion** (vs. $1.7 billion inflows in 1Q24)[34](index=34&type=chunk)[146](index=146&type=chunk) - Institutional Asset Management net inflows increased to **$2.6 billion** (vs. $1.8 billion in 1Q24), driven by lower redemptions in fixed income mandates[35](index=35&type=chunk)[146](index=146&type=chunk) - Launched FutureStepTM, a new fully digital retirement plan offering for small businesses in the U.S., and the John Hancock CQS Asset Backed Securities (ABS) Fund in the U.S.[146](index=146&type=chunk) [B5 Corporate and Other](index=15&type=section&id=B5%20Corporate%20and%20Other) Corporate and Other segment reported increased net and core losses, primarily due to California wildfires and higher interest on allocated capital Corporate and Other Segment Profitability (CAD millions, 1Q25 vs 1Q24) | Metric | 1Q25 | 1Q24 | Change (%) | | :--------------------------------- | :---- | :---- | :--------- | | Net income attributed to shareholders | (235) | (27) | (770)% | | Core earnings (loss) | (127) | (81) | (56.8)% | - The **$46 million decline** in core earnings was primarily due to a charge for estimated losses from the recent California wildfires in the P&C Reinsurance business of **$43 million post-tax** and overall higher interest on capital allocated to operating segments[148](index=148&type=chunk) [C. Risk Management and Risk Factors Update](index=16&type=section&id=C.%20RISK%20MANAGEMENT%20AND%20RISK%20FACTORS%20UPDATE) Manulife actively manages various financial risks, including variable annuity, equity, interest rate, and ALDA, while monitoring tax law changes [C1 Variable Annuity and Segregated Fund Guarantees](index=16&type=section&id=C1%20Variable%20Annuity%20and%20Segregated%20Fund%20Guarantees) Manulife manages variable annuity and segregated fund guarantee risks through hedging, with a net amount at risk of $1,778 million - Guarantees on variable annuity products and segregated funds are contingent and only payable upon the occurrence of the relevant event, if fund values at that time are below guarantee values[151](index=151&type=chunk) - The Company seeks to mitigate a portion of the risks embedded in its retained variable annuity and segregated fund guarantee business through dynamic and macro hedging strategies[152](index=152&type=chunk) Variable Annuity and Segregated Fund Guarantees (Net of Reinsurance, CAD millions) | Metric | March 31, 2025 | December 31, 2024 | | :------------------------ | :------------- | :---------------- | | Total gross of reinsurance | 5,284 | 4,971 | | Total, net of reinsurance | 1,778 | 1,666 | - The net amount at risk (in-the-money amount) increased to **$1,778 million** as at March 31, 2025, from **$1,666 million** as at December 31, 2024[155](index=155&type=chunk) [C2 Caution Related to Sensitivities](index=17&type=section&id=C2%20Caution%20Related%20to%20Sensitivities) Sensitivities are directional estimates based on internal models, and actual results may differ significantly due to various interacting factors and model limitations - Sensitivities are projected using internal models as at a specific date, measuring the impact of changing one factor at a time and assuming all other factors remain unchanged[157](index=157&type=chunk) - Actual results can differ significantly from these estimates due to interactions among factors, changes in liabilities from updates to non-economic assumptions, changes in business mix, effective tax rates, other market factors, and general limitations of internal models[157](index=157&type=chunk) - The sensitivities should only be viewed as directional estimates, and no assurance can be provided that the actual impact on contractual service margin, net income, other comprehensive income, or MLI's LICAT ratio will be as indicated[157](index=157&type=chunk) [C3 Publicly Traded Equity Performance Risk Sensitivities and Exposure Measures](index=17&type=section&id=C3%20Publicly%20Traded%20Equity%20Performance%20Risk%20Sensitivities%20and%20Exposure%20Measures) Manulife has net equity risk exposure, with a 10% decline in public equities estimated to impact net income by $400 million and LICAT ratio by 1 percentage point - The Company has net exposure to equity risk through asset and liability mismatches, with dynamic and macro hedging strategies designed to mitigate public equity risk, but not completely offset all risks[159](index=159&type=chunk) Potential Immediate Impact on Net Income Attributed to Shareholders (after hedging and reinsurance, CAD millions) | Change in Public Equity Returns | March 31, 2025 | December 31, 2024 | | :---------------------------- | :------------- | :---------------- | | -30% | (1,220) | (1,250) | | -20% | (810) | (820) | | -10% | (400) | (400) | | +10% | 390 | 390 | | +20% | 780 | 790 | | +30% | 1,170 | 1,180 | Potential Immediate Impact on MLI's LICAT Ratio (change in percentage points) from Public Equity Market Values | Change in Public Equity Market Values | March 31, 2025 | December 31, 2024 | | :---------------------------------- | :------------- | :---------------- | | -30% | (2) | (1) | | -20% | (1) | (1) | | -10% | (1) | - | | +10% | 1 | 1 | | +20% | 1 | 1 | | +30% | 2 | 1 | - The dynamic hedging program assumes that equity hedges offset **95%** of the dynamically hedged variable annuity liability movement that occurs as a result of market changes[162](index=162&type=chunk) [C4 Interest Rate and Spread Risk Sensitivities and Exposure Measures](index=19&type=section&id=C4%20Interest%20Rate%20and%20Spread%20Risk%20Sensitivities%20and%20Exposure%20Measures) Net income is sensitive to interest rate changes, with a 50bp shift impacting it by $100 million, while OCI is significantly affected by interest and spread movements - The sensitivity of net income attributed to shareholders to a **50 basis point parallel decline** in interest rates is estimated to be a benefit of **$100 million**, and to a **50 basis point parallel increase**, a charge of **$100 million**[174](index=174&type=chunk) Potential Impacts on Net Income Attributed to Shareholders (CAD millions, post-tax) | Scenario | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | -50bp parallel interest rates | 100 | 100 | | +50bp parallel interest rates | (100) | (100) | | -50bp corporate spreads | 100 | 100 | | +50bp corporate spreads | (100) | (100) | | -20bp swap spreads | 100 | 100 | | +20bp swap spreads | (100) | (100) | Potential Impacts on Other Comprehensive Income Attributed to Shareholders (CAD millions, post-tax) | Scenario | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | -50bp parallel interest rates | (100) | (100) | | +50bp parallel interest rates | 100 | 200 | | -50bp corporate spreads | (200) | (200) | | +50bp corporate spreads | 300 | 300 | | -20bp swap spreads | (200) | (100) | | +20bp swap spreads | 200 | 100 | Potential Impacts on MLI's LICAT Ratio (change in percentage points) | Scenario | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | -50bp parallel interest rates | (1) | - | | +50bp parallel interest rates | - | - | | -50bp corporate spreads | (3) | (3) | | +50bp corporate spreads | 3 | 3 | | -20bp swap spreads | - | - | | +20bp swap spreads | - | - | - The disclosed interest rate sensitivities primarily reflect impacts on Other Comprehensive Income (OCI) as most assets and liabilities are designated as fair value through OCI[176](index=176&type=chunk) - The probability of a scenario switch that could materially impact the LICAT ratio is low with the current level of interest rates in 1Q25[191](index=191&type=chunk) [C5 Alternative Long-Duration Asset Performance Risk Sensitivities and Exposure Measures](index=20&type=section&id=C5%20Alternative%20Long-Duration%20Asset%20Performance%20Risk%20Sensitivities%20and%20Exposure%20Measures) A 10% change in ALDA market values could significantly impact net income by $2,400 million and the LICAT ratio by 1 percentage point - Alternative Long-Duration Assets (ALDA) include commercial real estate, private equity, infrastructure, timber and agriculture, energy, and other investments[194](index=194&type=chunk) Potential Immediate Impacts from Changes in ALDA Market Values (CAD millions, post-tax) | Scenario | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | **-10% ALDA market values** | | | | CSM excluding NCI | (200) | (200) | | Net income attributed to shareholders | (2,400) | (2,500) | | Other comprehensive income attributed to shareholders | (200) | (200) | | Total comprehensive income attributed to shareholders | (2,600) | (2,700) | | **+10% ALDA market values** | | | | CSM excluding NCI | 200 | 200 | | Net income attributed to shareholders | 2,400 | 2,500 | | Other comprehensive income attributed to shareholders | 200 | 200 | | Total comprehensive income attributed to shareholders | 2,600 | 2,700 | Potential Immediate Impact on MLI LICAT Ratio from Changes in ALDA Market Values (change in percentage points) | Scenario | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | -10% ALDA market values | (1) | (1) | | +10% ALDA market values | 1 | 1 | [C6 Risk Management and Risk Factors Update](index=21&type=section&id=C6%20Risk%20Management%20and%20Risk%20Factors%20Update) Changes in tax laws, including Canada's capital gains inclusion rate increase, could impact Manulife, though most investments are not materially affected - Changes in tax laws, tax regulations, or interpretations could make some products less attractive, increase corporate taxes, or cause changes in the value of deferred tax assets and liabilities, potentially having a material adverse effect[199](index=199&type=chunk) - The Canadian government's intention to increase the capital gains inclusion rate from **50% to 66.67%** (effective January 1, 2026) is not expected to materially affect Manulife, as most of its investments are not treated as capital property[201](index=201&type=chunk) - For investments treated as capital properties, the increased effective tax rate on capital gains would result in a modest increase in the deferred tax liabilities on such investments with accrued gains[201](index=201&type=chunk) [D. Critical Actuarial and Accounting Policies](index=21&type=section&id=D.%20CRITICAL%20ACTUARIAL%20AND%20ACCOUNTING%20POLICIES) This section outlines Manulife's critical actuarial and accounting policies, estimation processes, and sensitivities to assumption changes [D1 Critical Actuarial and Accounting Policies](index=21&type=section&id=D1%20Critical%20Actuarial%20and%20Accounting%20Policies) Critical actuarial and accounting policies, including those for liabilities, asset valuation, and impairment, are detailed in the 2024 Annual Report - Material accounting policies are described in note 1 to the 2024 Annual Consolidated Financial Statements[203](index=203&type=chunk) - Critical actuarial policies and estimation processes relating to the determination of insurance and investment contract liabilities are described starting on page 87 of the 2024 Annual Report[203](index=203&type=chunk) - Critical accounting policies and estimation processes for assessing control for consolidation, fair value of invested assets, impairment, derivative financial instruments, pension obligations, income taxes, and goodwill/intangible assets are described starting on page 95 of the 2024 Annual Report[203](index=203&type=chunk) [D2 Sensitivity to Changes in Assumptions](index=21&type=section&id=D2%20Sensitivity%20to%20Changes%20in%20Assumptions) Sensitivity analyses show impacts of economic variable changes on CSM, net income, and OCI, but actual results may differ due to model limitations - The analysis is based on a simultaneous change in assumptions across all business units and holds all other assumptions constant[205](index=205&type=chunk) - Actual results can differ materially from these estimates due to the interaction among factors, actual experience differing from assumptions, changes in business mix, effective tax rates, and general limitations of internal models[205](index=205&type=chunk) Potential Impact on CSM net of NCI (CAD millions, post-tax except CSM) | Financial Assumption | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | 10 basis point reduction in ultimate spot rate | (300) | (300) | | 50 basis point increase in interest rate volatility | (100) | (100) | | 50 basis point increase in non-fixed income return volatility | (100) | (100) | [D3 Accounting and Reporting Changes](index=22&type=section&id=D3%20Accounting%20and%20Reporting%20Changes) Future accounting and reporting changes are detailed in note 2 of the unaudited Interim Consolidated Financial Statements - For future accounting and reporting changes arising during the quarter, refer to note 2 of the unaudited Interim Consolidated Financial Statements for the three months ended March 31, 2025[209](index=209&type=chunk) [E. Other](index=22&type=section&id=E.%20OTHER) This section covers outstanding shares, legal proceedings, non-GAAP measures, forward-looking statements, and quarterly financial data [E1 Outstanding Common Shares – Selected Information](index=22&type=section&id=E1%20Outstanding%20Common%20Shares%20%E2%80%93%20Selected%20Information) As of April 30, 2025, Manulife Financial Corporation had 1,712,710,832 common shares outstanding - As at April 30, 2025, MFC had **1,712,710,832 common shares** outstanding[210](index=210&type=chunk) [E2 Legal and Regulatory Proceedings](index=22&type=section&id=E2%20Legal%20and%20Regulatory%20Proceedings) Manulife faces ongoing legal and regulatory proceedings, including a class action lawsuit regarding insurance rates, with uncertain outcomes - The Company is regularly involved in legal actions, both as a defendant and as a plaintiff, ordinarily relating to its activities as a provider of insurance protection or wealth management products, reinsurance, or in its capacity as an investment adviser, employer, or taxpayer[211](index=211&type=chunk)[529](index=529&type=chunk) - Government and regulatory bodies regularly make inquiries and conduct examinations concerning the Company's compliance with insurance laws, securities laws, and laws governing broker-dealers[529](index=529&type=chunk) - A lawsuit was initiated in September 2023 as a putative class action alleging impermissible failure to decrease cost of insurance rates charged to universal life policy owners after the implementation of the Tax Cuts and Jobs Act of 2018[530](index=530&type=chunk) - It is too early in the litigation to offer any reliable opinion about the scope of the class policies that may be at issue or the likely outcome[531](index=531&type=chunk) [E3 Non-GAAP and Other Financial Measures](index=22&type=section&id=E3%20Non-GAAP%20and%20Other%20Financial%20Measures) This section defines Manulife's non-GAAP and other financial measures, including core earnings, EPS, ROE, AUMA, NBV, and APE sales - Non-GAAP financial measures include core earnings (loss), core EPS, core ROE, core EBITDA, total expenses, core expenses, post-tax contractual service margin (CSM), assets under management (AUM), assets under management and administration (AUMA), adjusted book value, and constant exchange rate (CER) basis measures[213](index=213&type=chunk) - Other specified financial measures include assets under administration (AUA), consolidated capital, new business value (NBV), new business value margin (NBV margin), sales, annualized premium equivalent (APE) sales, gross flows, net flows, and average AUMA[215](index=215&type=chunk) - Core earnings are used to better understand the long-term earnings capacity and valuation of the business by excluding market-related gains or losses, changes in actuarial methods and assumptions, and other items that do not reflect underlying earnings capacity[219](index=219&type=chunk) - The expected return for Alternative Long-Duration Assets (ALDA) and public equities varies by asset class and ranges from **3.25% to 11.5%**, leading to an average return of between **9.0% to 9.5%** on these assets as of March 31, 2025[222](index=222&type=chunk) - The contractual service margin (CSM) is a liability representing future unearned profits on insurance contracts, with changes classified as organic (impact of new business, interest accretion, insurance experience) and inorganic (changes in actuarial methods/assumptions, market impacts, reinsurance transactions)[299](index=299&type=chunk)[301](index=301&type=chunk) - New business value (NBV) is calculated as the present value of shareholders' interests in expected future distributable earnings on actual new business sold, excluding businesses with immaterial insurance risks[347](index=347&type=chunk) [E4 Caution Regarding Forward-Looking Statements](index=52&type=section&id=E4%20Caution%20Regarding%20Forward-Looking%20Statements) Forward-looking statements involve risks and uncertainties, and actual results may differ materially due to economic conditions, regulatory changes, and market volatility - Forward-looking statements involve risks and uncertainties, and actual results may differ materially from those expressed or implied[356](index=356&type=chunk) - Important factors that could cause actual results to differ include general business and economic conditions (e.g., equity markets, interest rates, inflation, currency rates), changes in laws and regulations, regulatory capital requirements, ability to execute strategic plans, credit rating downgrades, accuracy of estimates (morbidity, mortality, policyholder behaviour), and effectiveness of hedging strategies[357](index=357&type=chunk) - Forward-looking statements are stated as of the date of the document and are presented for understanding financial position and results of operations, as well as objectives and strategic priorities, and may not be appropriate for other purposes[359](index=359&type=chunk) [E5 Quarterly Financial Information](index=52&type=section&id=E5%20Quarterly%20Financial%20Information) Summary financial information for the past eight quarters is provided, including revenue, net income, EPS, assets, and dividends Summary Quarterly Financial Information (CAD millions, except per share amounts) | Metric | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | | :--------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total revenue | 11,994 | 13,031 | 14,586 | 12,876 | 12,798 | | Net income (loss) attributed to shareholders | 485 | 1,638 | 1,839 | 1,042 | 866 | | Basic earnings (loss) per common share ($) | 0.25 | 0.88 | 1.01 | 0.53 | 0.45 | | Diluted earnings (loss) per common share ($) | 0.25 | 0.88 | 1.00 | 0.52 | 0.45 | | Segregated funds deposits | 14,409 | 11,927 | 11,545 | 11,324 | 12,206 | | Total assets (in billions) | 981 | 979 | 953 | 915 | 907 | | Weighted average common shares (in millions) | 1,723 | 1,746 | 1,774 | 1,793 | 1,805 | | Dividends per common share ($) | 0.440 | 0.400 | 0.400 | 0.400 | 0.400 | [E6 Revenue](index=53&type=section&id=E6%20Revenue) Total revenue decreased to $12.0 billion in 1Q25, primarily due to lower net investment income, partially offset by increased insurance and other revenue Total Revenue (CAD millions, 1Q25 vs 1Q24) | Metric | 1Q25 | 1Q24 | Change (%) | | :---------------- | :----- | :----- | :--------- | | Total revenue | 11,994 | 12,798 | (6.3)% | | Insurance revenue | 7,062 | 6,497 | 8.7% | | Net investment income | 2,946 | 4,493 | (34.4)% | | Other revenue | 1,986 | 1,808 | 9.8% | - Total revenue decreased primarily due to lower net investment income, partially offset by an increase in insurance revenue and other revenue[364](index=364&type=chunk) - By segment, the decline in revenue reflected lower net investment income in Asia, Corporate and Other, and the U.S., partially offset by higher insurance revenue in the U.S., Asia, and Canada, and higher other revenue in Global WAM[365](index=365&type=chunk) [E7 Other](index=53&type=section&id=E7%20Other) No material changes occurred in internal control over financial reporting, and the MD&A was approved by the Board of Directors - No changes were made in internal control over financial reporting during the three months ended March 31, 2025, that have materially affected or are reasonably likely to materially affect internal control over financial reporting[366](index=366&type=chunk) - MFC's Audit Committee reviewed the MD&A and the unaudited interim financial report, and MFC's Board of Directors approved this MD&A prior to its release[366](index=366&type=chunk) [Consolidated Financial Statements](index=53&type=section&id=Consolidated%20Financial%20Statements) This section presents Manulife's consolidated financial statements, including statements of financial position, income, comprehensive income, changes in equity, and cash flows [Consolidated Statements of Financial Position](index=53&type=section&id=Consolidated%20Statements%20of%20Financial%20Position) The Consolidated Statements of Financial Position detail Manulife's assets, liabilities, and equity as of March 31, 2025 Consolidated Statements of Financial Position (CAD millions) | Asset/Liability | March 31, 2025 | December 31, 2024 | | :------------------------------------------------ | :------------- | :---------------- | | Total assets | 981,418 | 978,818 | | Cash and short-term securities | 25,362 | 25,789 | | Debt securities | 212,650 | 210,621 | | Public equities | 33,999 | 33,725 | | Mortgages | 55,105 | 54,447 | | Private placements | 49,881 | 49,668 | | Loans to Bank clients | 2,382 | 2,310 | | Real estate | 13,170 | 13,263 | | Other invested assets | 53,188 | 52,674 | | Total invested assets | 445,737 | 442,497 | | Reinsurance contract held assets | 65,105 | 59,015 | | Deferred tax assets | 5,942 | 5,884 | | Goodwill and intangible assets | 11,073 | 11,052 | | Segregated funds net assets | 428,610 | 435,988 | | Total liabilities | 928,254 | 925,858 | | Insurance contract liabilities, excluding those for account of segregated fund holders | 406,898 | 396,401 | | Investment contract liabilities | 13,693 | 13,498 | | Deposits from Bank clients | 22,952 | 22,063 | | Long-term debt | 6,635 | 6,629 | | Capital instruments | 7,542 | 7,532 | | Total equity | 53,164 | 52,960 | | Preferred shares and other equity | 6,660 | 6,660 | | Common shares | 20,572 | 20,681 | | Shareholders and other equity holders' retained earnings | 4,077 | 4,764 | | Shareholders and other equity holders' accumulated other comprehensive income (loss) ("AOCI") | 19,624 | 18,663 | [Consolidated Statements of Income](index=54&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Statements of Income show a net income of $623 million for 1Q25, with total revenue at $11,994 million Consolidated Statements of Income (CAD millions, except per share amounts) | Metric | 2025 | 2024 | | :--------------------------------- | :--- | :--- | | Insurance revenue | 7,062 | 6,497 | | Total insurance service result | 1,043 | 978 | | Net investment income (loss) | 2,946 | 4,493 | | Total investment result | (364) | 348 | | Other revenue | 1,986 | 1,808 | | Total revenue | 11,994 | 12,798 | | Net income (loss) before income taxes | 699 | 1,252 | | Income tax (expenses) recoveries | (76) | (280) | | Net income (loss) | 623 | 972 | | Net income (loss) attributed to shareholders | 485 | 866 | | Basic earnings per common share ($) | 0.25 | 0.45 | | Diluted earnings per common share ($) | 0.25 | 0.45 | | Dividends per common share ($) | 0.44 | 0.40 | [Consolidated Statements of Comprehensive Income](index=55&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income was $1,487 million for 1Q25, including net income and OCI, impacted by foreign exchange and finance income Consolidated Statements of Comprehensive Income (CAD millions) | Metric | 2025 | 2024 | | :------------------------------------------------ | :--- | :--- | | Net income (loss) | 623 | 972 | | Other comprehensive income (loss) ("OCI"), net of tax | 864 | 1,142 | | Total comprehensive income (loss), net of tax | 1,487 | 2,114 | | Total comprehensive income (loss) attributed to shareholders and other equity holders | 1,446 | 2,161 | - Other comprehensive income (loss) was significantly influenced by foreign exchange gains (losses) on translation of foreign operations (**$77 million** in 2025 vs **$747 million** in 2024) and changes in insurance finance income (expenses) (**$-1,229 million** in 2025 vs **$4,047 million** in 2024)[372](index=372&type=chunk) [Consolidated Statements of Changes in Equity](index=56&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Equity) Total equity increased to $53,164 million, reflecting net income, share repurchases, dividends, and AOCI changes Consolidated Statements of Changes in Equity (CAD millions) | Metric | 2025 | 2024 | | :------------------------------------------------ | :--- | :--- | | Total equity, end of period | 53,164 | 49,892 | | Preferred shares and other equity, end of period | 6,660 | 6,660 | | Common shares, end of period | 20,572 | 21,488 | | Shareholders and other equity holders' retained earnings, end of period | 4,077 | 4,779 | | Shareholders and other equity holders' accumulated other comprehensive income (loss) ("AOCI"), end of period | 19,624 | 15,106 | - Common shares repurchased for cancellation amounted to **$137 million** in 2025 (**12 million shares**) compared to **$74 million** in 2024 (**83 million shares**)[513](index=513&type=chunk)[515](index=515&type=chunk) - Common share dividends paid were **$745 million** in 2025, up from **$722 million** in 2024[376](index=376&type=chunk) [Consolidated Statements of Cash Flows](index=57&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Cash provided by operating activities increased to $6,688 million, while investing and financing activities used cash, resulting in a net decrease Consolidated Statements of Cash Flows (CAD millions) | Activity | 2025 | 2024 | | :--------------------------------- | :----- | :----- | | Cash provided by (used in) operating activities | 6,688 | 4,576 | | Cash provided by (used in) investing activities | (6,518) | (3,504) | | Cash provided by (used in) financing activities | (858) | (195) | | Increase (decrease) during the period (Cash and short-term securities) | (688) | 877 | | Balance, end of period (Cash and short-term securities) | 24,333 | 21,025 | - Interest received was **$3,194 million** in 2025, and interest paid was **$376 million**[380](index=380&type=chunk) - Income taxes paid were **$292 million** in 2025[380](index=380&type=chunk) [CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS](index=58&type=section&id=CONDENSED%20NOTES%20TO%20INTERIM%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section provides condensed notes to the interim financial statements, detailing accounting policies, assets, liabilities, risk management, and segment reporting [Note 1 Nature of Operations and Material Accounting Policy Information](index=58&type=section&id=Note%201%20Nature%20of%20Operations%20and%20Material%20Accounting%20Policy%20Information) Manulife Financial Corporation, a leading financial services group, prepared its interim financial statements in accordance with IAS 34 - Manulife Financial Corporation (MFC) is the holding company of The Manufacturers Life Insurance Company (MLI), a leading financial services group with principal operations in Asia, Canada, and the United States[381](index=381&type=chunk) - These Interim Consolidated Financial Statements have been prepared in accordance with International Accounting Standard (IAS) 34 'Interim Financial Reporting' and are consistent with the Company's 2024 Annual Consolidated Financial Statements[382](index=382&type=chunk) - The Interim Consolidated Financial Statements as at and for the three months ended March 31, 2025, were authorized for issue by MFC's Board of Directors on May 7, 2025[384](index=384&type=chunk) [Note 2 Accounting and Reporting Changes](index=58&type=section&id=Note%202%20Accounting%20and%20Reporting%20Changes) This note outlines future accounting and reporting changes, including IFRS amendments and the impact of the Global Minimum Tax Act - Annual Improvements to IFRS Accounting Standards – Volume 11 (issued July 2024, effective Jan 1, 2026) is not expected to have a significant impact[386](index=386&type=chunk) - Amendments to the Classification and Measurement of Financial Instruments (issued May 2024, effective Jan 1, 2026) clarify guidance on derecognition of financial liabilities and assessment of cash flow characteristics; the Company is assessing the impact[387](index=387&type=chunk) - IFRS 18 'Presentation and Disclosure in Financial Statements' (issued April 2024, effective Jan 1, 2027) introduces new requirements for presentation and disclosures, including five defined categories of income/expenses and management-defined performance measures; the Company is assessing the impact[388](index=388&type=chunk)[393](index=393&type=chunk) - Amendments to IAS 12 'Income Taxes' relate to the Global Minimum Tax Act (GMT), effective retroactively to fiscal periods commencing on or after December 31, 2023[390](index=390&type=chunk) - The Company expects to pay GMT of **$61 million** for the three months ended March 31, 2025, arising from operations in Barbados, China, and Hong Kong (2024 – $44 million worldwide)[392](index=392&type=chunk) [Note 3 Invested Assets and Investment Income](index=60&type=section&id=Note%203%20Invested%20Assets%20and%20Investment%20Income) This note details Manulife's invested assets, their fair values, and a breakdown of investment income and remaining terms to maturity Total Invested Assets (CAD millions) | Asset Type | March 31, 2025 (Carrying Value) | December 31, 2024 (Carrying Value) | | :-------------------------------- | :------------------------------ | :------------------------------- | | Cash and short-term securities | 25,362 | 25,789 | | Debt securities | 212,650 | 210,621 | | Public equities | 33,999 | 33,725 | | Mortgages | 55,105 | 54,447 | | Private placements | 49,881 | 49,668 | | Loans to Bank clients | 2,382 | 2,310 | | Real estate | 13,170 | 13,263 | | Other invested assets | 53,188 | 52,674 | | **Total invested assets** | **445,737** | **442,497** | Investment Income (CAD millions, for the three months ended March 31) | Metric | 2025 | 2024 | | :------------------------------------------------ | :--- | :--- | | Interest income | 3,504 | 3,436 | | Dividends, rental income and other income | 907 | 681 | | Impairments (loss) / recovery, net | (59) | 37 | | Other | (118) | 97 | | **Investment income** | **4,234** | **4,251** | | Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities | (992) | 538 | | Investment expenses | (296) | (296) | | **Net investment income (loss)** | **2,946** | **4,493** | - The Company records transfers of assets and liabilities between Level 1 and Level 2 at their fair values as at the end of each reporting period[409](index=409&type=chunk) - During the three months ended March 31, 2025, there were no transfers of assets between Level 1 and Level 2[409](index=409&type=chunk) - Invested assets and segregated funds net assets are classified as Level 3 if there are no observable market inputs or if significant non-market observable inputs are used to determine fair value[411](index=411&type=chunk) [Note 4 Derivative and Hedging Instruments](index=65&type=section&id=Note%204%20Derivative%20and%20Hedging%20Instruments) This note details Manulife's derivative financial instruments, including notional amounts, fair values, and embedded derivatives Total Derivatives (CAD millions) | Metric | March 31, 2025 | December 31, 2024 | | :------------------------------------------------ | :------------- | :---------------- | | Total derivatives (Notional amount) | 523,266 | 499,021 | | Total derivative assets | 8,398 | 8,667 | | Total derivative liabilities | 12,920 | 14,247 | Fair Value of Derivative Assets by Remaining Term to Maturity (CAD millions) | Remaining Term to Maturity | March 31, 2025 | December 31, 2024 | | :------------------------- | :------------- | :---------------- | | Less than 1 year | 683 | 1,171 | | 1 to 3 years | 578 | 578 | | 3 to 5 years | 732 | 635 | | Over 5 years | 6,405 | 6,283 | | **Total Derivative Assets**| **8,398** | **8,667** | - Certain insurance contracts contain features classified as embedded derivatives, measured separately at Fair Value Through Profit or Loss (FVTPL), including reinsurance contracts related to guaranteed minimum income benefits and contracts with certain credit and interest rate features[431](index=431&type=chunk) - Reinsured contracts with guaranteed minimum income benefits had a fair value of **$314 million** as of March 31, 2025 (December 31, 2024 – $281 million)[432](index=432&type=chunk) [Note 5 Insurance and Reinsurance Contract Assets and Liabilities](index=67&type=section&id=Note%205%20Insurance%20and%20Reinsurance%20Contract%20Assets%20and%20Liabilities) This note details movements in insurance and reinsurance contract assets/liabilities, new business components, and significant reinsurance transactions Net Carrying Balance of Insurance Contracts Issued (CAD millions) | Metric | March 31, 2025 | January 1, 2025 | | :------------------------------------------------ | :------------- | :-------------- | | Net closing balance | 530,032 | 522,844 | | Total changes in income and OCI | 7,242 | | | Total cash flows | 2,624 | | Net Carrying Balance of Reinsurance Contracts Held (CAD millions) | Metric | March 31, 2025 | January 1, 2025 | | :------------------------------------------------ | :------------- | :-------------- | | Net closing balance | 62,309 | 56,346 | | Total changes in income and OCI | 1,315 | | | Total cash flows | 4,653 | | Insurance Revenue (CAD millions, for the three months ended March 31) | Component | 2025 | 2024 | | :---------------------------------------- | :--- | :--- | | Expected incurred claims and other insurance service result | 3,780 | 3,553 | | Change in risk adjustment for non-financial risk expired | 362 | 366 | | CSM recognized for services provided | 734 | 640 | | Recovery of insurance acquisition cash flows | 423 | 279 | | Contracts under PAA | 1,763 | 1,659 | | **Total insurance revenue** | **7,062** | **6,497** | - The Company completed a reinsurance agreement with Reinsurance Group of America (RGA) for U.S. LTC and U.S. structured settlement legacy blocks, effective January 1, 2025, transferring **$5.4 billion** in invested assets and reinsuring **$5.2 billion** in insurance contract liabilities[449](index=449&type=chunk)[450](index=450&type=chunk) - A reinsurance agreement with RGA Life Reinsurance Company of Canada for its Canadian universal life block closed on April 2, 2024, transferring **$5.5 billion** in invested assets and reinsuring **$5.4 billion** in insurance contract liabilities[451](index=451&type=chunk)[452](index=452&type=chunk) - An agreement with Global Atlantic Financial Group (GA) to reinsure U.S. long-term care, U.S. structured settlements, and Japan whole life legacy blocks closed on February 22, 2024, transferring **$13.4 billion** in invested assets and reinsuring **$13.2 billion** in net liabilities[453](index=453&type=chunk)[454](index=454&type=chunk) [Note 6 Investment Contract Assets and Liabilities](index=70&type=section&id=Note%206%20Investment%20Contract%20Assets%20and%20Liabilities) This note presents the carrying and fair values of investment contract liabilities, measured at fair value or amortized cost - Investment contract liabilities are contractual financial obligations of the Company that do not contain significant insurance risk, measured either at fair value or at amortized cost[456](index=456&type=chunk) Investment Contract Liabilities (CAD millions) | Metric | March 31, 2025 | December 31, 2024 | | :------------------------------------------------ | :------------- | :---------------- | | Investment contract liabilities, gross of reinsurance (Fair value) | 896 | 808 | | Reinsurance financial assets (Fair value) | 672 | 669 | | Net (Fair value) | 224 | 139 | | Investment contract liabilities, gross of reinsurance (Carrying value, amortized cost) | 12,797 | 12,690 | | Reinsurance financial assets (Carrying value, amortized cost) | 1,035 | 1,052 | | Net (Carrying value, amortized cost) | 11,762 | 11,638 | - The fair value of investment contract assets and liabilities was determined using Level 2 valuation techniques[460](index=460&type=chunk) [Note 7 Risk Management](index=71&type=section&id=Note%207%20Risk%20Management) This note details Manulife's risk management practices, focusing on credit risk, securities lending, and expected credit loss allowances - Credit risk is managed through defined credit evaluation and adjudication processes, delegated credit approval authorities, and established exposure limits by borrower, corporate connection, credit rating, industry, and geographic region[464](index=464&type=chunk) Allowance for Expected Credit Losses (ECL) (CAD millions) | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Probability-weighted ECL allowance | 889 | 828 | | Baseline ECL allowance | 626 | 629 | - As at March 31, 2025, the Company had loaned securities with a market value of **$1,355 million** and held collateral exceeding this value[478](index=478&type=chunk) - The Company limits the risk of credit losses from derivative counterparties by using investment grade counterparties, master netting arrangements, and Credit Support Annex agreements requiring collateral when exposure exceeds a threshold[484](index=484&type=chunk) Credit Default Swap (CDS) Protection Sold (CAD millions) | Rating | March 31, 2025 (Notional Amount) | December 31, 2024 (Notional Amount) | | :----- | :------------------------------- | :-------------------------------- | | AA | 24 | 23 | | A | 72 | 68 | | BBB | 24 | 23 | | **Total** | **120** | **114** | - The Company does not offset certain derivatives, securities lent, and repurchase agreements in the Consolidated Statements of Financial Position due to conditional offset rights, but master netting agreements provide offset rights in the event of default[486](index=486&type=chunk)[487](index=487&type=chunk) [Note 8 Long-Term Debt](index=76&type=section&id=Note%208%20Long-Term%20Debt) This note details Manulife's long-term debt instruments, measured at amortized cost, primarily U.S. dollar senior notes hedging U.S. operations Carrying Value of Long-Term Debt Instruments (CAD millions) | Senior Notes | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | 3.050% Senior notes (US$1,155) | 1,661 | 1,659 | | 5.375% Senior notes (US$750) | 1,068 | 1,067 | | 3.703% Senior notes (US$750) | 1,075 | 1,074 | | 2.396% Senior notes (US$200) | 287 | 287 | | 2.484% Senior notes (US$500) | 718 | 717 | | 3.527% Senior notes (US$270) | 388 | 388 | | 4.150% Senior notes (US$1,000) | 1,438 | 1,437 | | **Total** | **6,635** | **6,629** | - The U.S. dollar senior notes are designated as hedges of the Company's net investment in its U.S. operations to reduce earnings volatility from re-measurement into Canadian dollars[495](index=495&type=chunk) - The fair value of long-term debt was **$5,771 million** as of March 31, 2025 (December 31, 2024 – $5,741 million), determined using Level 2 valuation techniques[496](index=496&type=chunk) [Note 9 Capital Instruments](index=76&type=section&id=Note%209%20Capital%20Instruments) This note outlines Manulife's capital instruments, measured at amortized cost, including subordinated debentures hedging foreign investments Carrying Value of Capital Instruments (CAD millions) | Capital Instrument | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | JHFC Subordinated notes | 648 | 648 | | 2.818% MFC Subordinated debentures | 997 | 997 | | 4.064% MFC Subordinated debentures | 995 | 995 | | 4.275% MFC Subordinated notes | 532 | 524 | | 5.054% MFC Subordinated debentures | 1,096 | 1,095 | | 5.409% MFC Subordinated debentures | 1,196 | 1,196 | | 4.061% MFC Subordinated notes | 1,078 | 1,077 | | 2.237% MFC Subordinated debentures | 1,000 | 1,000 | | **T

TSX/NYSE/PSE: MFC  SEHK: 945                                                                                                           C$ unless otherwise stated                                                                                                  TORONTO, May 7, 2025 /PRNewswire/ - Manulife Financial Corporation ("Manulife" or the "Company") reported its first quarter results for the period ended March 31, 2025, delivering record insurance new business results1 and steady growth in book value pe ...

Core Insights - Manulife has released its 2024 Sustainability Report and Public Accountability Statement, highlighting its commitment to sustainability and long-term value creation for stakeholders [1][2] Group 1: Sustainability Initiatives - The firm aims to empower health and well-being, drive inclusive economic opportunities, and accelerate sustainability through its Impact Agenda [2] - Manulife's Chief Sustainability Officer emphasized the company's role in improving lives and communities, serving over 36 million customers globally [2] Group 2: Partnerships and Collaborations - Manulife announced a three-year partnership with Uplink to promote longevity innovation through Global Longevity Innovation challenges, with winners receiving $50,000 each [4] - A five-year collaboration with MIT AgeLab will focus on longevity-related research to enhance consumer preparedness [4] - The company partnered with the Centre for Addiction and Mental Health to fund mental health research for women, highlighting workplace health challenges [4] Group 3: Community Engagement and Education - The Smart$ense Financial Literacy for Kids Campaign was launched in the U.S., inspired by a successful program in the Philippines, winning an award for community investment [4] - A partnership with Mind HK aims to raise mental health awareness in Hong Kong through public events and expert discussions [4] Group 4: Responsible Innovation - Manulife released Responsible AI Principles to ensure ethical and transparent AI applications, aligning innovations with safety and sustainability standards [4] Group 5: Company Overview - Manulife Financial Corporation is a leading international financial services provider with over 37,000 employees and 109,000 agents, serving more than 36 million customers [5]

Media Contact To access the conference call, dial 1-800-806-5484 or 1-416-340-2217 (Passcode: 3499479#). Please call in 15 minutes prior to the scheduled start time. The archived webcast will be available at manulife.com/en/investors/results-and-reports following the call. A replay of the call will also be available until June 7, 2025, by dialing 1-800-408-3053 or 1-905-694- 9451 (Passcode: 9456881#). About Manulife Manulife Financial Corporation is a leading international financial services provider, helpi ...

Core Viewpoint - The article expresses a cautious stance on the valuation of Manulife Financial Corporation despite its favorable business profile and long-term growth prospects [1]. Group 1: Company Overview - Manulife Financial Corporation is recognized for its solid business profile and good growth prospects over the long term [1]. Group 2: Analyst Background - The author of the article is a fund manager/analyst with over 18 years of experience in the financial sector, specializing in portfolio management [1].

Core Insights - Manulife has appointed Stephanie Fadous as Chief Actuary, effective May 9, 2025, succeeding Steve Finch who has become President and CEO of Manulife Asia [1][2] - Hung Ko will take on the expanded role of Global Head of Treasury and Investor Relations, leveraging over 20 years of experience in the insurance industry [1][4] Company Leadership Changes - Stephanie Fadous has been integral in developing global funding programs and managing relationships with rating agencies and banks as the current Global Treasurer and Head of Capital Management [2] - Roy Gori, President and CEO of Manulife, expressed confidence in Fadous's ability to drive meaningful outcomes and strengthen the global team [3] - Hung Ko's new role combines responsibilities in both treasury and investor relations, enhancing the company's financial management capabilities [4] Company Overview - Manulife Financial Corporation is a leading international financial services provider with operations in Canada, Asia, Europe, and the United States [5] - The company serves over 36 million customers and employs more than 37,000 employees, alongside over 109,000 agents and numerous distribution partners [5]

Company Overview - Manulife Financial (MFC) is headquartered in Toronto and operates in the Finance sector, with a stock price change of -10.75% since the beginning of the year [3] - The company currently pays a dividend of $0.3 per share, resulting in a dividend yield of 4.44%, which is significantly higher than the Insurance - Life Insurance industry's yield of 1.68% and the S&P 500's yield of 1.76% [3] Dividend Performance - Manulife's current annualized dividend of $1.22 has increased by 3% from the previous year, and over the last 5 years, the company has raised its dividend 5 times, averaging an annual increase of 8.83% [4] - The company's payout ratio stands at 43%, indicating that it distributes 43% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate projects earnings of $2.92 per share, reflecting a year-over-year growth rate of 3.55% [5] Investment Appeal - Manulife is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [7]

Core Viewpoint - Manulife Financial Corporation plans to redeem all outstanding $1 billion principal amount of 2.237% Fixed/Floating Subordinated Debentures on May 12, 2025, at par value, along with accrued interest [1][2]. Company Overview - Manulife Financial Corporation is a prominent international financial services provider headquartered in Toronto, Canada, operating under the name Manulife in Canada, Asia, and Europe, and as John Hancock in the United States [3]. - The company offers financial advice, insurance, and investment services to individuals, groups, and businesses, with a workforce of over 37,000 employees and more than 109,000 agents serving over 36 million customers globally [3]. - Manulife trades as 'MFC' on the Toronto, New York, and Philippine stock exchanges, and under '945' in Hong Kong [3].