Manulife announces Normal Course Issuer Bid

Rhea-AI Summary

Manulife Financial (MFC) has announced a new Normal Course Issuer Bid (NCIB) program to repurchase and cancel up to 51.5 million common shares, representing approximately 3% of its issued and outstanding shares. The program will run from February 24, 2025, to February 23, 2026.

The company can purchase up to 1,420,093 shares daily on the TSX, representing 25% of the average daily trading volume. Purchases will be made through TSX, NYSE, and alternative trading systems at prevailing market prices. Under its previous 2024 NCIB program, Manulife has already repurchased 88,466,133 shares at an average price of $39.11 per share.

The NCIB provides Manulife flexibility in its capital management strategy, balancing regulatory capital ratios with shareholder value generation. The company may also undertake repurchases outside North America and enter into derivative-based programs, subject to regulatory approval.

Positive

• Authorization to repurchase 51.5 million shares (3% of outstanding shares)
• Previous NCIB program successfully executed with 88.4M shares repurchased at $39.11 average price
• Flexible capital management approach including international markets and derivative-based programs

Negative

• None.

Insights

Financial Markets Analyst

The announcement of Manulife's new 51.5 million share repurchase program (approximately 3% of outstanding shares) signals a strategic continuation of their capital return policy, albeit at a more measured pace compared to their previous 90 million share authorization. This reduction in size reflects prudent capital management in the current market environment.

The successful execution of their 2024 NCIB, with 88.4 million shares already repurchased, demonstrates strong implementation capabilities and commitment to shareholder returns. The sophisticated approach to execution, including potential private agreements, derivative-based programs, and pre-defined trading plans, provides maximum flexibility to optimize purchase timing and pricing.

The program's structure, limiting daily purchases to 1.42 million shares (25% of average daily volume), ensures market stability while maintaining execution efficiency. The inclusion of multiple trading venues and methods, including block trades and private agreements at potential discounts, showcases advanced treasury management designed to enhance program effectiveness.

From a capital management perspective, this NCIB represents a balanced approach to maintaining healthy regulatory capital ratios while returning excess capital to shareholders. The program's 12-month duration provides sufficient flexibility to adjust to market conditions and regulatory requirements, particularly important given the LICAT capital standards framework.

C$ unless otherwise stated                                                        TSX/NYSE/PSE: MFC     SEHK: 945

TORONTO, Feb. 19, 2025 /PRNewswire/ - Manulife Financial Corporation ("Manulife") announced today that it intends to launch a Normal Course Issuer Bid ("NCIB") permitting the purchase for cancellation of up to 51.5 million of its common shares, representing approximately 3% of Manulife's issued and outstanding common shares. As at February 12, 2025, Manulife had 1,723,281,035 common shares issued and outstanding.  Manulife has received approval for the NCIB from the Office of the Superintendent of Financial Institutions Canada and from the Toronto Stock Exchange ("TSX").

Under the NCIB, Manulife may purchase up to 1,420,093 of its common shares on the TSX during any trading day, which represents 25% of the average daily trading volume of 5,680,374 common shares on the TSX for the six months ended January 31, 2025, subject to TSX rules permitting block purchases. Purchases under the NCIB may commence through the TSX on February 24, 2025 and continue until February 23, 2026, when the NCIB expires, or such earlier date as Manulife completes its purchases. 

Having a NCIB in place will provide Manulife with the flexibility to purchase common shares as part of its capital management strategy which is designed to maintain healthy regulatory capital ratios while balancing the objective of generating shareholder value.

Purchases under the NCIB may be made through the facilities of the TSX, the New York Stock Exchange, and alternative trading systems in Canada and the United States at market prices prevailing at the time of purchase or such other price as may be permitted. All common shares acquired by Manulife under the NCIB will be cancelled. Repurchases will be subject to compliance with applicable Canadian securities laws and United States federal securities laws.

In addition, Manulife may undertake repurchases of its common shares outside of Canada and the United States in compliance with applicable laws. Subject to regulatory approval, Manulife may also acquire common shares directly from other holders by way of private agreement pursuant to issuer bid exemption orders issued by applicable securities regulatory authorities. Any private purchase made under an exemption order issued by a securities regulatory authority will generally be at a discount to the prevailing market price. Manulife may also enter into derivative-based programs in support of its repurchase activities, including the writing of put options and forward purchase agreements, accelerated share repurchase transactions, other equity contracts or use other methods of acquiring shares, in each case subject to regulatory approval and on such terms and at such times as shall be permitted by applicable securities laws. The total number of common shares repurchased under the NCIB and all other potential arrangements will not exceed 51.5 million common shares.

Subject to regulatory approval, Manulife intends from time to time to enter into pre-defined plans with a registered investment dealer to allow for the repurchase of common shares at times when Manulife ordinarily would not be active in the market due to its own internal trading blackout periods, insider trading rules or otherwise. Any such plans will be adopted in accordance with applicable Canadian securities laws and United States federal securities laws.

Manulife's most recent normal course issuer bid, as subsequently amended (the "2024 NCIB") commenced on February 23, 2024, for the purchase of up to 90 million common shares, and will expire on February 22, 2025.  Manulife has repurchased 88,466,133 common shares for cancellation during the period from the commencement of its 2024 NCIB to January 31, 2025, at a volume weighted average repurchase price per common share of $39.11. All repurchases were made through the facilities of the TSX.

Caution regarding forward-looking statements

This document contains forward-looking statements within the meaning of the "safe harbour" provisions of Canadian provincial securities laws and the U.S. Private Securities Litigation Reform Act of 1995 with respect to possible future purchases by Manulife of its common shares. Although we believe that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual common share repurchases to differ materially from expectations include but are not limited to the fact that the amount and timing of any future common share repurchases will depend on the earnings, cash requirements and financial condition of Manulife, market conditions, capital requirements (including under LICAT capital standards), common share issuance requirements, applicable law and regulations (including Canadian and U.S. securities laws and Canadian insurance company regulations), and other factors deemed relevant by Manulife, and may be subject to regulatory approval or conditions.

Additional information about material risk factors that could cause actual results to differ materially from expectations may be found in our most recent annual and interim reports and elsewhere in our filings with Canadian and U.S. securities regulators.

The forward-looking statements in this document are, unless otherwise indicated, stated as of the date hereof. We do not undertake to update any forward-looking statements, except as required by law.

About Manulife

Manulife Financial Corporation is a leading international financial services provider, helping people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we provide financial advice and insurance, operating as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States. Through Manulife Wealth & Asset Management, we offer global investment, financial advice, and retirement plan services to individuals, institutions, and retirement plan members worldwide. At the end of 2023, we had more than 38,000 employees, over 98,000 agents, and thousands of distribution partners, serving over 35 million customers. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges, and under '945' in Hong Kong.

Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com. 

Media Contact
Anne Hammer
Manulife
201-925-1213
ahammer@manulife.com

Investor Relations
Hung Ko
Manulife
416-806-9921
hung_ko@manulife.com

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SOURCE Manulife Financial Corporation

FAQ

How many shares can Manulife (MFC) repurchase under the new 2025 NCIB program?

Manulife can repurchase up to 51.5 million common shares, representing approximately 3% of its issued and outstanding shares.

What is the daily purchase limit for MFC shares under the 2025 NCIB?

Manulife can purchase up to 1,420,093 common shares per trading day on the TSX, which represents 25% of the average daily trading volume.

When does Manulife's new 2025 NCIB program start and end?

The new NCIB program runs from February 24, 2025, to February 23, 2026.

How many shares did Manulife (MFC) repurchase under its 2024 NCIB program?

Under the 2024 NCIB program, Manulife repurchased 88,466,133 common shares at an average price of $39.11 per share.

What exchanges will Manulife (MFC) use for its 2025 share buyback program?

Manulife will conduct purchases through the Toronto Stock Exchange (TSX), New York Stock Exchange (NYSE), and alternative trading systems in Canada and the United States.