Manulife Financial Q4 Earnings Beat Estimates, Dividend Raised

Core Insights - Manulife Financial Corporation (MFC) reported fourth-quarter 2024 core earnings of 74 cents per share, exceeding the Zacks Consensus Estimate by 10.4% and reflecting an 8.8% year-over-year improvement [1] - The company achieved core earnings of $1.4 billion (C$1.9 billion), marking a 6% increase year over year, driven by strong business growth in Global Wealth and Asset Management (WAM), Canada, and Asia [2] - New business value (NBV) for the quarter was $601 million (C$842 million), up 31% year over year, attributed to higher sales volumes across Asia, Canada, and the U.S. [2] - Annualized premium equivalent (APE) sales rose 42% year over year, primarily due to increased sales in Asia and the U.S. [3] - Wealth and asset management assets under management and administration reached $705.6 billion (C$1,015 billion), a 21% increase year over year, with net inflows of $0.8 billion (C$1.2 billion) compared to net outflows of $1.3 billion in the previous year [3] Financial Metrics - Core return on equity improved by 50 basis points year over year to 16.4% [4] - The Life Insurance Capital Adequacy Test ratio stood at 137% as of December 31, 2024, unchanged from the previous year [4] - Adjusted book value per common share increased by 15% year over year to $37.02 [4] Segment Performance - Global Wealth and Asset Management's core earnings were $343 million (C$481 million), up 34% year over year, driven by higher net fee income and positive net flows [5] - The Asia division reported core earnings of $341 million (C$477 million), a 16% year-over-year increase, with significant growth in APE sales, new business CSM, and NBV [6] - The Canada division's core earnings reached $278 million (C$390 million), an 11% increase year over year, supported by favorable insurance experiences and growth in Group Insurance [7] - The U.S. division's core earnings were $210 million (C$294 million), down 16% year over year due to lower investment spreads and impacts from prior reinsurance transactions [8] Dividend Update - The board of directors approved a 10% increase in the quarterly dividend to 44 cents, with shareholders of record as of March 5 set to receive the dividend on March 19 [10]