Manulife Reports Second Quarter 2024 Results

Core Insights - Manulife Financial Corporation reported strong second quarter results for 2024, with core earnings of $1.7 billion, reflecting a 6% increase year-over-year on a constant exchange rate basis [2][14] - The company achieved a net income attributed to shareholders of $1.0 billion, consistent with the same period in 2023 [2][16] - Core earnings per share (EPS) rose to $0.91, a 9% increase from the previous year, while the overall EPS increased by 1% to $0.52 [2][14] Financial Performance - Core return on equity (ROE) was reported at 15.7%, indicating strong profitability despite the impact of Global Minimum Taxes (GMT) [3][15] - The Life Insurance Capital Adequacy Test (LICAT) ratio stood at 139%, demonstrating a robust capital position [3][15] - Annualized premium equivalent (APE) sales increased by 17%, with new business contractual service margin (CSM) up by 6% and new business value (NBV) rising by 23% compared to the second quarter of 2023 [2][17] Segment Performance - Asia's core earnings surged by 40%, driven by business growth and updates to actuarial methods [15][18] - In Canada, core earnings grew by 7%, supported by strong performance in Group Insurance [15][18] - The U.S. segment experienced an 11% decrease in core earnings due to adverse net insurance experience [15][18] Shareholder Returns - Manulife repurchased 31 million common shares, amounting to $1.1 billion, and plans to buy back a total of 90 million shares, representing a capital return exceeding $3 billion [2][3] - Adjusted book value per common share increased by 15% year-over-year, reaching $33.96 [3][14] Strategic Initiatives - The company completed the acquisition of CQS, enhancing its capabilities in Global Wealth and Asset Management (WAM) [7] - Manulife launched a Generative AI agent sales tool in Singapore to improve agent-customer interactions [8] - The company introduced a Robo-Advisor for its Mandatory Provident Fund in Hong Kong, aimed at providing automated portfolio insights [9]