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]