Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential and diversification opportunities [1] Investment Focus - The company has diversified its investments across various sectors including banking, telecommunications, logistics, and hotels, indicating a strategic approach to portfolio management [1] - The entry into the US market in 2020 reflects a growing interest in international investment opportunities, particularly in sectors like banks, hotels, and shipping [1] Market Trends - The popularity of insurance companies in the Philippines since 2014 suggests a shift in investment preferences among local investors, moving towards more diversified financial products [1] - The trend of using platforms like Seeking Alpha for analysis indicates a growing reliance on data-driven investment strategies among investors in both the ASEAN and US markets [1]

PERFORMANCE UPDATE 2025 Full Year Highlights We generated $1.6 billion ($0.67/share) of Distributable Earnings ("DE") during the quarter and $6.0 billion ($2.54/share) for the year. Record Deployable Capital $6B 11% $188B Annual Growth in DE Before Realizations Distributable Earnings ("DE") DE before realizations were $1.5 billion ($0.63/share) for the quarter and $5.4 billion ($2.27/share) for the year, representing growth of 11% per share over the prior year. Asset Management Wealth Solutions Operating Bu ...

Earnings Results Quarter Ended December 31, 2025 For internal use only. Not to be used with, or distributed to, the public 1 Forward–Looking Statements This presentation may contain forward-looking statements. Information on factors that could cause results to differ materially from those projected in this presentation is available in our Form 10-K for the year ended December 31, 2024, as may have been modified by subsequent Forms 10-Q. These documents are available in the Investor Relations section of our ...

Group 1 - The core viewpoint of the article highlights the growth in the banking and insurance sectors in China, with significant increases in loans and insurance premiums as of the end of 2025 [1] Group 2 - By the end of Q4 2025, the balance of inclusive loans to small and micro enterprises in the banking sector reached 37 trillion yuan, marking a year-on-year growth of 11.0% [1] - The balance of inclusive agricultural loans was 14.2 trillion yuan, with a year-on-year increase of 10.3% [1] - In 2025, the total premium income of insurance companies was 6.1 trillion yuan, reflecting a year-on-year growth of 7.4% [1] - Claims and benefit expenditures amounted to 2.4 trillion yuan, which is a year-on-year increase of 6.2% [1] - The number of new insurance policies issued reached 116.8 billion, showing a year-on-year growth of 12.6% [1] Group 3 - The total assets of banking financial institutions reached 480 trillion yuan by the end of Q4 2025, representing a year-on-year growth of 8.0% [1] - The total assets of insurance companies and insurance asset management companies were 41.3 trillion yuan, increasing by 15.1% since the beginning of the year [1] Group 4 - The non-performing loan ratio for commercial banks was 1.50% at the end of Q4 2025, a decrease of 0.02 percentage points from the previous quarter [1] - The provision coverage ratio for commercial banks stood at 205.21% [1] - The capital adequacy ratio for commercial banks (excluding foreign bank branches) was 15.46%, with a tier 1 capital adequacy ratio of 12.37% and a core tier 1 capital adequacy ratio of 10.92% [1] Group 5 - The average comprehensive solvency adequacy ratio for insurance companies was 181.1% at the end of Q4 2025, while the core solvency adequacy ratio was 130.4%, exceeding the regulatory standards of 100% and 50% respectively [1]

Financial Data and Key Metrics Changes - Adjusted operating income increased by 31% year-over-year in Q4 2025, marking the highest level in four years [5][25] - Full-year adjusted income from operations available to common shareholders was over $1.5 billion, a 23% improvement compared to 2024 [25] - Net income available to common stockholders for Q4 was $745 million, or $3.80 per diluted share [26] Business Line Data and Key Metrics Changes - Annuities sales volumes increased by 25% in 2025, with RILA sales up 35% and fixed annuity sales up 11% [11][12] - Group Protection delivered operating earnings of $493 million for the full year, up 16% from 2024, with a margin improvement to 9% [28] - Life Insurance operating earnings improved to $77 million for Q4, compared to an operating loss of $15 million in the prior year [36] Market Data and Key Metrics Changes - Group Protection now accounts for approximately 25% of business unit earnings, up from 18% in 2023 [45] - Spread-based annuity account balances increased to 30%, up from 25% in 2023 [46] - Average account balances in Retirement Plan Services increased nearly 9% year-over-year to $124 billion [35] Company Strategy and Development Direction - The company is focused on increasing risk-adjusted returns, reducing volatility, and growing its franchise through strategic realignment and operational execution [7][10] - There is an emphasis on products with higher risk-adjusted margins and stable cash flows to strengthen business resilience [9][14] - The company aims to maintain expense discipline while investing strategically to support long-term priorities [8][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term value despite potential market volatility [10][22] - The company is committed to improving the quality and durability of earnings while focusing on profitable growth [21][36] - The outlook for 2026 includes expectations for continued earnings growth and capital return to shareholders [49] Other Important Information - The investment portfolio delivered an annualized return of nearly 12% for Q4, exceeding targets [24][42] - The company completed the consolidation of several Life Insurance captive entities, which is expected to improve free cash flow [43][69] - Holding company liquidity ended the year at approximately $1.1 billion, providing financial flexibility for future capital returns [44] Q&A Session Summary Question: Capital return guidance and buybacks - Management indicated that capital deployment priorities include maintaining excess capital in operating entities and preparing for optimal handling of preferred securities [52][54] Question: Excess cash and potential uses - The excess cash at the holding company is primarily aimed at managing preferred securities and increasing capital return to shareholders [56] Question: Life Insurance captive consolidation impact - The consolidation of captives is expected to reduce reserve financing costs and improve the free cash flow profile of the legacy Life block [68][69]

Financial Data and Key Metrics Changes - In 2025, the company achieved a core EPS growth of 8% and a core ROE expansion of 30 basis points, reaching a target of 18%+ by 2027 [7][15][24] - The company generated $6.4 billion in remittances and returned nearly $5.5 billion to shareholders, with a LICAT ratio of 136% and a leverage ratio of 23.9% [7][24][25] - A 10% increase in the quarterly common share dividend was announced, alongside a new NCIB program allowing the repurchase of up to 42 million shares [8][24] Business Line Data and Key Metrics Changes - New business CSM growth exceeded 20% in each insurance segment, contributing to double-digit growth in the CSM balance [5][15] - Global WAM reported net outflows of $9.5 billion, primarily due to large retirement plan redemptions, but still delivered strong margins and core earnings growth [6][15][16] - Core earnings in Asia increased by 24% year-over-year, driven by business growth and favorable impacts from previous basis changes [20][21] Market Data and Key Metrics Changes - APE sales in Asia decreased by 3%, with double-digit growth in Japan and Asia Other offset by lower sales in Hong Kong [19][20] - The U.S. segment saw a 9% increase in APE sales, with new business CSM growing by 34%, although core earnings decreased by 22% due to lower investment spreads [22][23] - Canadian APE sales and new business value increased by 2% and 4% respectively, reflecting strong growth in individual insurance and annuity sales [22] Company Strategy and Development Direction - The company introduced a refreshed enterprise strategy focused on growth and customer choice, with strategic investments made in various markets [9][10] - The company aims to become an AI-powered organization, investing in AI to enhance efficiency and customer experiences [12][14] - Strategic acquisitions, including Comvest Credit Partners and a joint venture in India, are part of the company's growth strategy [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic and geopolitical uncertainties due to the diversified nature of the business [5][6] - The company anticipates continued growth in core earnings and is optimistic about achieving its 2027 targets [15][24] - Management highlighted the importance of maintaining a balanced and diversified business model to mitigate risks [9][10] Other Important Information - The company became the first international life insurer to establish an office in the Dubai International Financial Centre [10] - A significant collaboration in Hong Kong aims to enhance healthcare solutions for customers [11] Q&A Session Summary Question: Clarification on Hong Kong sales and regulatory changes - Management noted that while there was a decline in sales due to regulatory changes, they expect brokers to adjust and sales to increase over time [28][30][31] Question: NBV margin increase in Hong Kong - The increase in NBV margin was attributed to a favorable mix, with a focus on higher-margin channels [34][36] Question: Impact of eMPF on GWAM earnings - Management confirmed that the eMPF transition has had a negative impact, but Comvest is expected to contribute positively to AUM and earnings [37][38] Question: U.S. division's unfavorable mortality experience - Management indicated that the recent unfavorable mortality experience is viewed as normal variability and not indicative of a long-term trend [42][46][48] Question: Legacy book dispositions and EPS neutrality - Management stated that current share price levels do not constrain their ability to pursue future transactions and maintain EPS neutrality [60][61]

Financial Data and Key Metrics Changes - Adjusted Operating Income increased by 31% year-over-year in Q4 2025, marking the highest level in four years [5] - Full-year Adjusted Operating Income available to common stockholders was over $1.5 billion, a 23% improvement compared to 2024 [25] - Net income available to common stockholders for Q4 was $745 million, or $3.80 per diluted share [26] Business Line Data and Key Metrics Changes - Annuities delivered operating income of $311 million for Q4, with total sales volumes up 25% year-over-year [11][30] - Group Protection's full-year operating earnings increased by 16% to $493 million, with a margin improvement to 9% [28] - Life insurance delivered operating earnings of $77 million for Q4, a significant improvement from an operating loss of $15 million in the prior year [36] Market Data and Key Metrics Changes - RILA sales increased by 35% in 2025, reflecting strong customer demand [12] - Fixed Annuity sales increased by 11%, while Variable Annuity sales rose by 27% year-over-year [12] - Group Protection's full-year premium growth was nearly 7%, driven by strong sales and persistency [19] Company Strategy and Development Direction - The company is focused on increasing risk-adjusted returns, reducing volatility, and growing its franchise [7] - Strategic realignment efforts are aimed at optimizing the operating model and enhancing capital efficiency [9] - The company is prioritizing profitable growth over top-line sales growth, particularly in annuities [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term value despite potential market volatility [10] - The company expects to sustain momentum in earnings growth and improve the quality of earnings over time [22] - Management highlighted the importance of maintaining expense discipline and optimizing the investment strategy [41][42] Other Important Information - The investment portfolio delivered an annualized return of nearly 12% for Q4, exceeding targets [24] - The company completed the consolidation of several life insurance captive entities, which is expected to improve free cash flow [43][69] - Holding company liquidity ended the year at approximately $1.1 billion, providing financial flexibility for future capital returns [44] Q&A Session Summary Question: Capital return expectations for 2026 - Management indicated that capital deployment priorities include maintaining excess capital in operating entities and preparing for preferred stock redemption [52][54] Question: Future remittances and shareholder returns - Management confirmed that remittances are expected to grow, and there is potential for increased capital return to shareholders in the future [60][61] Question: Impact of captive consolidation on earnings - Management noted that the captive consolidation completed in Q4 provided a $10 million benefit to life earnings and is part of broader efforts to improve free cash flow [69]

Financial Data and Key Metrics Changes - In 2025, the company achieved a core EPS growth of 8% and a core ROE expansion of 30 basis points, reaching a target of 18%+ by 2027 [7][24] - The company generated $6.4 billion in remittances and returned nearly $5.5 billion to shareholders, with a LICAT ratio of 136% and a leverage ratio of 23.9% [7][25] - The adjusted book value per share increased by 6% to CAD 38.27, despite significant capital returns to shareholders [25] Business Line Data and Key Metrics Changes - New business CSM growth exceeded 20% in each insurance segment, contributing to double-digit growth in core earnings [5][15] - Global WAM reported net outflows of $9.5 billion, primarily due to large retirement plan redemptions, but still maintained strong margins and core earnings growth [16][21] - In Asia, APE sales decreased by 3%, but new business CSM and new business value showed strong double-digit growth, with NBV margin expanding by 5.5 percentage points to 41.2% [20][21] Market Data and Key Metrics Changes - The U.S. segment saw a 9% increase in APE sales, with new business CSM growing by 34%, although core earnings decreased by 22% due to lower investment spreads and unfavorable claims experience [22][23] - In Canada, APE sales and new business value increased by 2% and 4% respectively, driven by individual insurance and annuity sales [22] Company Strategy and Development Direction - The company introduced a refreshed enterprise strategy focused on growth and customer choice, with strategic investments in various markets, including a joint venture in India and acquisitions in Indonesia [9][10] - The company aims to become an AI-powered organization, investing in AI to enhance efficiency and customer experience, ranking first among global life insurers for AI maturity [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic and geopolitical uncertainties, emphasizing the diversified nature of the business as a strength [5][6] - The company anticipates continued growth in core earnings and is optimistic about achieving its 2027 targets, despite challenges in specific markets [15][49] Other Important Information - The company announced a 10% increase in its quarterly common share dividend and received approval for a new NCIB program to repurchase up to 42 million shares [7][8] - The company is focused on maintaining a balanced, diversified business model while making strategic investments to strengthen its portfolio [9][10] Q&A Session Summary Question: Clarification on Hong Kong sales and regulatory changes - Management noted that while there was a decline in sales due to regulatory changes, they expect sales to normalize as distributors adjust [28][30] Question: Increase in NBV margin in Hong Kong - The increase in NBV margin was attributed to a shift in sales mix, with higher margins from agency and bank channels compared to the broker channel [34][36] Question: Impact of Comvest acquisition on GWAM earnings - The Comvest acquisition is expected to contribute positively to AUMA and core earnings, with strong customer demand anticipated [37][38] Question: Concerns about mortality experience in the U.S. - Management indicated that recent unfavorable mortality experience is viewed as short-term variability, with improvements expected moving forward [42][44] Question: Achieving 18%+ Core ROE target - Management remains confident in reaching the 18%+ Core ROE target by leveraging share buybacks and optimizing capital allocation [47][49]

Financial Data and Key Metrics Changes - Manulife reported strong financial results for 2025, with new business CSM growth exceeding 20% in each insurance segment, contributing to double-digit growth in CSM balance and supporting future earnings potential [4][5] - Core EPS grew by 8% year-over-year, with core ROE expanding by 30 basis points from the prior year, tracking well towards the 2027 target of 18%+ [5][24] - The company generated $6.4 billion in remittances and returned nearly $5.5 billion to shareholders, with a LICAT ratio of 136% and a leverage ratio of 23.9% [5][25] Business Line Data and Key Metrics Changes - Global WAM experienced net outflows of $9.5 billion in the second half of 2025, but continued to deliver strong margins and core earnings growth [4][15] - In Asia, APE sales decreased by 3% year-over-year, but new business CSM and new business value delivered strong double-digit growth, with NBV margin expanding by 5.5 percentage points to 41.2% [19][20] - The U.S. segment saw a 9% increase in APE sales, with new business CSM growing by 34%, although core earnings decreased by 22% due to lower investment spreads and unfavorable life insurance claims experience [23] Market Data and Key Metrics Changes - The company reported strong growth in Asia, with APE sales showing double-digit growth in Japan and other Asian markets, despite a decline in Hong Kong sales due to regulatory changes [19][20] - In Canada, APE sales and new business value increased by 2% and 4% respectively, driven by strong growth in individual insurance and annuity sales [21][22] - The U.S. market showed broad-based demand for products, contributing to a significant increase in new business CSM [23] Company Strategy and Development Direction - Manulife introduced a refreshed enterprise strategy focused on growth and customer choice, with strategic investments made to strengthen the portfolio [6][8] - The company aims to become an AI-powered organization, investing in AI to enhance efficiency and customer experience, ranking first among global life insurers for AI maturity [12] - Strategic acquisitions, such as Comvest Credit Partners and a joint venture in India, are part of the company's growth strategy [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic and geopolitical uncertainties due to the diversified nature of the business [4] - The company anticipates continued growth in core earnings and is optimistic about achieving its 2027 targets, despite challenges in specific markets [14][24] - Management highlighted the importance of maintaining a balanced, diversified business model to support sustainable growth [8][9] Other Important Information - The company announced a 10% increase in its quarterly common share dividend and received approval for a new NCIB program to repurchase up to 42 million shares [5][6] - Adjusted book value per share grew by 6% year-over-year, reflecting strong capital position despite significant capital returns to shareholders [25] Q&A Session Summary Question: Clarification on Hong Kong sales and regulatory changes - Management noted that while there was a decline in Hong Kong sales due to regulatory changes, the overall performance for the year was strong, with expectations for recovery as brokers adjust [27][30] Question: Increase in NBV margin in Hong Kong - The increase in NBV margin was attributed to a shift in sales mix, with stronger performance in higher-margin channels [34][36] Question: Impact of eMPF on GWAM earnings and Comvest acquisition - Management indicated that Comvest is expected to contribute positively to AUMA and core earnings, with optimism about customer demand [39] Question: Concerns about mortality experience in the U.S. - Management clarified that recent mortality experience variability is not indicative of a long-term trend and expressed confidence in the normalization of claims experience [44][46] Question: Achieving 18%+ Core ROE target - Management remains confident in reaching the 18%+ Core ROE target by 2027, with various strategies in place to optimize capital deployment and growth [48][50]

Financial Data and Key Metrics Changes - Adjusted Operating Income increased by 31% year-over-year for Q4 2025, marking the highest level in four years, with full-year Adjusted Operating Income exceeding $1.5 billion, a 23% improvement compared to 2024 [5][25][26] - Net income available to common stockholders for Q4 was $745 million, or $3.80 per diluted share, driven by favorable market conditions [26] - The company reported a strong alternative investments portfolio return of nearly 12% for the quarter [25][42] Business Line Data and Key Metrics Changes - Annuities delivered operating income of $311 million for Q4, with total sales volumes up 25% year-over-year, driven by a shift towards spread-based products [10][31] - Group Protection achieved operating earnings of $493 million for the full year, up 16% from 2024, with a margin improvement to 9% [28][30] - Life insurance operating earnings improved significantly to $77 million for Q4, compared to an operating loss of $15 million in the prior year [36][38] Market Data and Key Metrics Changes - RILA sales increased by 35% in 2025, while Fixed Annuity sales rose by 11%, reflecting strong market demand [11][12] - Group Protection's full-year premium growth was nearly 7%, with strong sales across all products and segments [19][30] - Retirement Plan Services reported average account balances increasing nearly 9% year-over-year to $124 billion, despite net outflows of approximately $1 billion for the quarter [35][36] Company Strategy and Development Direction - The company is focused on improving risk-adjusted returns on capital, reducing volatility, and growing its franchise through strategic realignment and operational enhancements [6][7] - There is an emphasis on products with higher risk-adjusted margins and stable cash flows to strengthen business resilience [8][9] - The company aims to maintain disciplined expense management while investing strategically to support long-term priorities [7][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver long-term value, despite potential market volatility and economic changes [9][23] - The company is committed to enhancing capital efficiency and optimizing its operating model to support sustainable growth [22][48] - Looking ahead to 2026, management expects continued earnings growth and a focus on profitable growth over top-line sales growth [12][16] Other Important Information - The company completed the consolidation of several life insurance captive entities, which is expected to improve GAAP earnings by approximately $25 million to $30 million in 2026 [71] - Holding company liquidity ended the year at approximately $1.1 billion, providing financial flexibility for future capital returns to shareholders [44][49] Q&A Session Summary Question: Capital return expectations for 2026 - Management indicated that capital deployment priorities include maintaining excess capital in operating entities and preparing for optimal handling of preferred securities [52][54] Question: Excess cash management at the holding company - Management confirmed that excess cash would primarily be used for managing preferred securities and increasing capital return to shareholders [56][57] Question: Life insurance business improvements - Management discussed the benefits of captive consolidation and ongoing efforts to enhance the free cash flow profile of the legacy life block, projecting further improvements in earnings [70][71]