2025-11-13 14:00Financial Data and Key Metrics Changes - The company reported a core EPS growth of 16% year-over-year, supported by record core earnings and strong underlying business growth across various segments [9][12][27] - The LICAT ratio remained strong at 138%, indicating a solid capital position, while the leverage ratio improved to 22.7% [9][26] - Book value per share increased by 7% year-over-year, reflecting continued capital return to shareholders [9][25] Business Line Data and Key Metrics Changes - Insurance new business performance showed growth of 15% or greater in new business CSM across all segments, with total new business CSM increasing over 20% year-over-year for the fifth consecutive quarter [8][12][13] - Asia segment reported a 29% year-on-year increase in core earnings, with APE sales up 5% and new business CSM increasing by 18% [10][19] - Global WAM experienced net outflows of $6.2 billion but maintained a record level of core earnings with a 19% increase in pre-tax core earnings [8][20][21] - The U.S. segment saw APE sales growth of 51%, but core earnings decreased by 20% due to unfavorable life insurance claims experience [24][25] Market Data and Key Metrics Changes - The company is expanding into the Indian insurance market through a joint venture with Mahindra, aiming to leverage local expertise and distribution [6][30] - The company continues to focus on Asia and global WAM for growth opportunities, with a strong emphasis on digital innovation and AI [7][10] Company Strategy and Development Direction - The refreshed enterprise strategy aims to build on strengths and focus on sustainable growth, with a diversified portfolio to mitigate risks [5][6][8] - The company plans to enhance its leadership position in its home market while maintaining a scaled presence in the U.S. [6][7] - Investments will be made to leverage AI capabilities and improve customer engagement [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2027 financial targets, emphasizing the importance of diversified growth across segments [9][27] - The company remains optimistic about the fundamentals in Asia, particularly in markets like China and Singapore [32][33] - Management acknowledged challenges in net flows but highlighted strong core earnings generation and operational resilience [12][27] Other Important Information - The company returned nearly $4 billion of capital to shareholders year-to-date through dividends and share buybacks [25][26] - The annual actuarial review resulted in a favorable impact on reserves, validating the prudence of the company's reserves [18][48] Q&A Session Summary Question: Details on the India venture - Management highlighted the favorable regulatory environment and digital infrastructure in India, with expectations to launch operations within 12-18 months [30][31] Question: Outlook for Asia markets - Continued strong sales growth is expected in Asia, with broad-based success across multiple markets [32][33] Question: Private credit exposure - The company has a CAD 4 billion below-investment-grade private credit portfolio, focusing on middle-market lending [34] Question: Impact of mandatory provident fund fee changes - Guidance remains intact for a $25 million quarterly impact post-transition, with expectations for improved margins [36][37] Question: Actuarial review impact - The annual review led to a reserve reduction of $605 million, positively impacting core earnings [48][49] Question: U.S. business strategy - The focus remains on high net worth customers, with no intention to revert to previous high-risk products [57][58]