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Manulife Reports Third Quarter 2024 Results

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Manulife Financial (MFC) reported strong Q3 2024 results with record core earnings of $1.8 billion, up 4% from Q3 2023. Key highlights include: core EPS of $1.00 (up 7%), net income of $1.8 billion (up $0.8 billion), and a LICAT ratio of 137%. The company saw significant growth with APE sales up 40%, new business CSM up 47%, and NBV up 39%. Global Wealth and Asset Management achieved net inflows of $5.2 billion, compared to net outflows of $0.8 billion in Q3 2023. The company maintained strong financial metrics with a core ROE of 16.6% and has returned over $2 billion to shareholders through share buybacks since the start of 2024.

Manulife Financial (MFC) ha riportato risultati solidi per il terzo trimestre del 2024, con utili core record di 1,8 miliardi di dollari, in aumento del 4% rispetto al terzo trimestre del 2023. I punti salienti includono: EPS core di 1,00 dollari (in aumento del 7%), reddito netto di 1,8 miliardi di dollari (in aumento di 0,8 miliardi di dollari) e un rapporto LICAT del 137%. L'azienda ha registrato una crescita significativa con vendite APE in aumento del 40%, CSM per nuove attività in aumento del 47% e NBV in aumento del 39%. La Global Wealth e Asset Management ha ottenuto afflussi netti di 5,2 miliardi di dollari, rispetto a deflussi netti di 0,8 miliardi di dollari nel terzo trimestre del 2023. L'azienda ha mantenuto solidi indicatori finanziari con un ROE core del 16,6% e ha restituito oltre 2 miliardi di dollari agli azionisti attraverso riacquisti di azioni dall'inizio del 2024.

Manulife Financial (MFC) reportó resultados sólidos en el tercer trimestre de 2024, con ganancias centrales récord de 1.8 mil millones de dólares, un aumento del 4% en comparación con el tercer trimestre de 2023. Los aspectos destacados incluyen: EPS central de 1.00 dólares (un aumento del 7%), ingresos netos de 1.8 mil millones de dólares (un aumento de 0.8 mil millones de dólares) y un índice LICAT del 137%. La empresa vio un crecimiento significativo con ventas APE en aumento del 40%, CSM del nuevo negocio en aumento del 47% y NBV en aumento del 39%. Global Wealth y Asset Management lograron entradas netas de 5.2 mil millones de dólares, en comparación con salidas netas de 0.8 mil millones de dólares en el tercer trimestre de 2023. La empresa mantuvo métricas financieras sólidas con un ROE central del 16.6% y ha devuelto más de 2 mil millones de dólares a los accionistas a través de recompras de acciones desde principios de 2024.

매뉴라이프 파이낸셜 (MFC)는 2024년 3분기 강력한 실적을 발표하며, 18억 달러의 기록적인 핵심 수익을 기록했고, 이는 2023년 3분기 대비 4% 증가한 수치입니다. 주요 하이라이트로는: 핵심 EPS 1.00 달러 (7% 증가), 순이익 18억 달러 (8억 달러 증가), LICAT 비율 137%입니다. 이 회사는 APE 매출이 40% 증가하고 신규 비즈니스 CSM이 47% 증가하며 NBV가 39% 증가하는 상당한 성장을 목격했습니다. 글로벌 재산 및 자산 관리 부서는 2023년 3분기에 8억 달러의 순 유출과 비교하여 52억 달러의 순 유입을 달성했습니다. 이 회사는 핵심 ROE 16.6%의 강력한 재무 지표를 유지했으며, 2024년 초부터 주식 매입을 통해 주주에게 20억 달러 이상을 반환했습니다.

Manulife Financial (MFC) a annoncé des résultats solides pour le troisième trimestre 2024, avec des bénéfices centraux record de 1,8 milliard de dollars, en hausse de 4 % par rapport au troisième trimestre 2023. Les faits saillants comprennent : EPS central de 1,00 $ (en hausse de 7 %), revenu net de 1,8 milliard de dollars (en hausse de 0,8 milliard de dollars) et un ratio LICAT de 137 %. L'entreprise a connu une croissance significative avec des ventes APE en hausse de 40 %, un CSM pour les nouvelles affaires en hausse de 47 % et un NBV en hausse de 39 %. La gestion de patrimoine et d'actifs mondiale a réalisé des apports nets de 5,2 milliards de dollars, contre des sorties nettes de 0,8 milliard de dollars au troisième trimestre 2023. L'entreprise a maintenu des indicateurs financiers solides avec un ROE central de 16,6 % et a retourné plus de 2 milliards de dollars aux actionnaires par le biais de rachats d'actions depuis le début de 2024.

Manulife Financial (MFC) hat im dritten Quartal 2024 starke Ergebnisse bekannt gegeben, mit rekordverdächtigen Kerngewinnen von 1,8 Milliarden Dollar, was einem Anstieg von 4 % gegenüber dem dritten Quartal 2023 entspricht. Zu den wichtigsten Punkten gehören: Kern-EPS von 1,00 Dollar (7 % gestiegen), Nettoeinkommen von 1,8 Milliarden Dollar (um 0,8 Milliarden Dollar gestiegen) und ein LICAT-Verhältnis von 137 %. Das Unternehmen verzeichnete ein signifikantes Wachstum mit APE-Verkäufen, die um 40 % gestiegen sind, neuen Geschäft CSM, die um 47 % gestiegen sind, und NBV, das um 39 % gestiegen ist. Global Wealth und Asset Management konnten Nettozuflüsse von 5,2 Milliarden Dollar verzeichnen, im Vergleich zu Nettoabflüssen von 0,8 Milliarden Dollar im dritten Quartal 2023. Das Unternehmen hielt starke Finanzkennzahlen mit einem Kern-ROE von 16,6 % und hat seit Anfang 2024 über 2 Milliarden Dollar an die Aktionäre durch Aktienrückkäufe zurückgegeben.

Positive
  • Record core earnings of $1.8 billion, up 4% year-over-year
  • Net income increased by $0.8 billion to $1.8 billion
  • Strong Global WAM performance with $5.2 billion net inflows
  • APE sales growth of 40% and NBV growth of 39%
  • Return of over $2 billion to shareholders through buybacks in 2024
  • Core ROE of 16.6% demonstrating strong profitability
Negative
  • U.S. segment core earnings declined 8%
  • Canada APE sales decreased 20% year-over-year
  • Impact of Global Minimum Taxes affecting earnings

Insights

Manulife delivered an impressive $1.8 billion in core earnings for Q3 2024, marking a 4% year-over-year increase. The company's performance was particularly strong in key areas:

  • Global WAM achieved record core earnings with a 37% increase, driven by higher fee income and positive net flows of $5.2 billion
  • Asia segment showed robust growth with core earnings up 17% and record levels in APE sales, new business CSM and NBV
  • Book value per share increased 9% to $24.40

The company's financial position remains solid with a LICAT ratio of 137% and has returned over $2 billion to shareholders through buybacks in 2024. The 16.6% core ROE demonstrates strong operational execution and efficient capital management.

The results reveal strong market positioning and execution across key business segments. Notable highlights include:

  • Record insurance metrics with APE sales up 40%, demonstrating strong market demand and distribution effectiveness
  • Global Wealth segment attracted $5.2 billion in net inflows, reversing previous outflows and indicating improved investor confidence
  • Expense efficiency ratio of 45.0% shows disciplined cost management

The strategic focus on high-net-worth offerings and digital transformation, particularly in Asia markets, positions the company well for continued growth. The expansion of AI capabilities and enhanced customer experience initiatives should drive further operational efficiencies.

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

TORONTO, Nov. 6, 2024 /PRNewswire/ - Manulife Financial Corporation ("Manulife" or the "Company") reported its third quarter results for the period ended September 30, 2024, delivering record core earnings and insurance new business results1.

Key highlights for the third quarter of 2024 ("3Q24") include:

  • Core earnings2 of $1.8 billion, up 4% on a constant exchange rate basis3 from the third quarter of 2023 ("3Q23")
  • Net income attributed to shareholders of $1.8 billion, up $0.8 billion from 3Q23
  • Core EPS4 of $1.00, up 7%3 from 3Q23. EPS of $1.00, up 91%3 from 3Q23
  • Excluding the impact of Global Minimum Taxes ("GMT")5, core EPS4 was $1.03, up 11%3 from 3Q23
  • Core ROE4 of 16.6% and ROE of 16.6%
  • LICAT ratio6 of 137%
  • APE sales up 40%7, new business CSM up 47%3 and new business value ("NBV") up 39%7 from 3Q238
  • Global Wealth and Asset Management net inflows7 of $5.2 billion, up from net outflows of $0.8 billion in 3Q23

"We continued to drive momentum and delivered strong results in the third quarter, evident in record total company core earnings, substantial top-line growth across our operating segments and steady growth in our book value per share. In Global WAM, we generated a 37% increase in core earnings year-over-year, and our core EBITDA margin4 further improved to 27.8% driven by strong AUMA growth and higher operating leverage. In Asia, we reached record levels of APE sales, new business CSM and NBV, while delivering 17% growth in core earnings. On a year-to-date basis, we generated 70% of core earnings from our highest potential businesses4 which contributed to a 14% growth in core EPS excluding the impact of GMT. We remain focused on executing against our strategic priorities and delivering on our financial targets to bring a strong close to 2024, and I am optimistic in our ability to continue generating value to our shareholders."

—    Roy Gori, Manulife President & Chief Executive Officer

"We have made progress on our financial targets unveiled at our Investor Day this year. Core ROE of 16.6% reflects strong business performance and disciplined capital allocation. We remain diligent in our expense management with 45.0% expense efficiency ratio4 on a year-to-date basis, in-line with our medium-term target of less than 45%. Our balance sheet is strong, and we returned more than $2 billion to our shareholders through our common share buyback program since the start of 20249."

—    Colin Simpson, Manulife Chief Financial Officer

Results at a Glance


Quarterly Results

YTD Results

($ millions, unless otherwise stated)

3Q24

3Q23

Change3,7

2024

2023

Change

Net income attributed to shareholders

$        1,839

$       1,013

82 %

$       3,747

$       3,444

8 %

Core earnings

$        1,828

$       1,743

4 %

$       5,319

$       4,911

8 %

EPS ($)

$          1.00

$          0.52

91 %

$         1.97

$         1.76

11 %

Core EPS ($)

$          1.00

$          0.92

7 %

$         2.84

$         2.55

12 %

ROE

16.6 %

9.5 %

7.1 pps

11.3 %

10.8 %

0.5 pps

Core ROE

16.6 %

16.8 %

-0.2 pps

16.3 %

15.7 %

0.6 pps

Book value per common share ($)

$        24.40

$       22.42

9 %

$       24.40

$       22.42

9 %

Adjusted BV per common share ($)4

$        34.97

$       30.67

14 %

$       34.97

$       30.67

14 %

Financial leverage ratio (%)4

23.5 %

25.2 %

-1.7 pps

23.5 %

25.2 %

-1.7 pps

APE sales

$        2,347

$       1,657

40 %

$       6,137

$       4,890

26 %

New business CSM

$           759

$          507

47 %

$       2,045

$       1,541

33 %

NBV

$           843

$          600

39 %

$       2,235

$       1,694

32 %

Global WAM net flows ($ billions)

$            5.2

$          (0.8)

- %

$         12.0

$           5.8

110 %

Results by Segment


Quarterly Results

YTD Results

($ millions, unless otherwise stated)

3Q24 

3Q23 

 Change7

2024

2023

Change

Asia (US$)







Net income attributed to shareholders

$          606

$             63

877 %

$       1,300

$          543

136 %

Core earnings

453

390

17 %

1,413

1,104

31 %

APE sales

1,372

835

64 %

3,242

2,582

28 %

New business CSM

435

300

45 %

1,148

845

38 %

NBV

481

310

55 %

1,194

900

35 %

Canada







Net income attributed to shareholders

$          430

$           290

48 %

$          782

$           826

(5) %

Core earnings

412

408

1 %

1,178

1,135

4 %

APE sales

343

431

(20) %

1,313

1,046

26 %

New business CSM

95

51

86 %

241

154

56 %

NBV

143

153

(7) %

459

351

31 %

U.S. (US$)


Net income attributed to shareholders

$              5

$             53

(91) %

$            23

$          327

(93) %

Core earnings

302

329

(8) %

940

955

(2) %

APE sales

97

79

23 %

303

275

10 %

New business CSM

52

40

30 %

178

187

(5) %

NBV

34

25

36 %

112

99

13 %

Global WAM


Net income attributed to shareholders

$          498

$           318

55 %

$       1,213

$          932

29 %

Core earnings

499

361

37 %

1,255

968

29 %

Gross flows ($ billions)7

41.3

34.3

19 %

128.2

108.2

18 %

Average AUMA ($ billions)7

963

813

16 %

924

812

13 %

Core EBITDA margin (%)

27.8 %

26.9 %

90 bps

26.6 %

24.7 %

190 bps

Strategic Highlights

We are driving profitable top-line growth through product and distribution innovations

In Asia, we continued the rollout of Manulife Pro, our proprietary recognition and activation program for top-tier agents, to Hong Kong in July. This key initiative contributed to improved productivity, reflecting our investments in our agency force and contributing to over 20% year-over-year growth in agency NBV and agency APE sales in 3Q24. With this expansion Manulife Pro is now available in five of our markets10.

In addition, we further enhanced our high-net-worth offerings with the launch of two innovative new products: Manulife Global Indexed UL PRO in our International High Net Worth business and Signature Indexed Income in Singapore. These offerings build on our capabilities to meet the complex and evolving protection, legacy planning and wealth management needs of high-net-worth customers.

In the U.S., we expanded a differentiated enhancement to our entire suite of survivorship solutions, allowing customers to proactively address their estate planning needs now in anticipation of potential estate tax changes in 2026.

In Global WAM, we announced the closing of a $1.1 billion institutional fund - Manulife Private Equity Partners II. This fund is part of our ongoing effort to provide specialized solutions for institutional investors seeking greater exposure to opportunities in the growing North American private equity market.

We are elevating the customer experience with continued digital and AI enhancements

In Asia, we improved customer experience and the operational efficiency of our Japan contact centre as part of global contact centre transformation initiatives. Our further enhancement of voice bot capabilities and the application of AI contributed to a record high transactional NPS11 on a year-to-date basis. AI-enabled speech-to-text and call summarization enhancements reduced average contact centre handling time by 28% compared with 3Q23.

Furthermore, we launched new mobile apps in Vietnam and Indonesia as part of our program to create a unified customer app experience in each of our Asia markets. These apps now enable customers to seamlessly conduct a wide range of policy management activities including accessing policy information, making premium payments, tracking claim status, updating personal information and downloading contracts. Since the launch of the new mobile app in Vietnam in August, monthly customer registrations have nearly doubled12.

In the U.S., we entered into a strategic distribution partnership with Ethos – a life insurance technology company focused on simplifying the purchase experience – to provide prospective customers and nearly 9,000 newly appointed agents with instant coverage decisions for our Simple Term solution via the Ethos platform.

In Global WAM, we launched an AI-powered planning tool in our wealth platform in Canada Retail to enhance support for advisors and their clients, delivering an elevated service experience through streamlined financial planning processes and personalized advice and solutions.

We are helping our customers live longer, healthier, and better lives

In Canada, we further enhanced our mobile app for the Manulife Vitality program with tailored activity recommendations to provide customers with a more personalized app experience to help them achieve their health and wellness goals. Continuous improvements have resulted in a 9% increase in utilization year-over-year.

In the U.S., we provided access to GRAIL's Galleri® multi-cancer early detection test to certain eligible John Hancock Vitality members ages 40 to 49 (previously ages 50 and up). This change aligns our offering with recent medical research indicating a significant increase in early-onset cancer diagnoses13, reinforcing our commitment to early detection and better health outcomes for our members.

Strong earnings driven by continued business growth and improved market experience14

Core earnings of $1.8 billion in 3Q24, up 4% from 3Q23

The increase reflected strong business growth led by Global WAM and Asia, and a lower net charge in the provision for Expected Credit Loss ("ECL"), more than offsetting the impacts of GMT and reinsurance transactions closed earlier this year.

  • Asia core earnings were up 17%, reflecting continued business growth momentum and benefits from updates to actuarial methods and assumptions in 2023 and 2024.
  • Global WAM core earnings hit a record level in 3Q24 and grew 37%, driven by higher net fee income from favourable market impacts and positive net flows, favourable tax true-ups and benefits, and continued expense discipline.
  • Canada core earnings increased 1% as strong business growth in Group Insurance more than offset the impact of less favourable claims experience in 3Q24.
  • U.S. core earnings were down 8%, primarily due to lower investment spreads, impact from the previously completed reinsurance transaction and the annual review of actuarial methods and assumptions, partially offset by a lower charge in the ECL provision and more favourable claims experience in life.
  • Corporate and Other core earnings decreased $123 million, mainly due to the impact of GMT and higher interest on capital allocated to operating segments.

Net Income attributed to shareholders of $1.8 billion in 3Q24, $0.8 billion higher compared with 3Q23

The $0.8 billion increase in net income reflects improved market experience and core earnings growth, partially offset by lower tax-related benefits and a higher net charge from the annual review of actuarial methods and assumptions. The net gain from market experience in 3Q24 was primarily related to higher-than-expected returns from public equity and net realized gains from the sale of debt instruments, partially offset by lower-than-expected returns on alternative long-duration assets mainly related to real estate investments.

Record levels across all three insurance new business metrics for total company and Asia segment, and strong net inflows in Global WAM

Significant momentum continued into 3Q24 as the insurance business generated year-over-year growth of 40%, 47% and 39% in APE sales, new business CSM and NBV, respectively.

  • Asia led with broad-based growth, generating 64%, 45% and 55% year-over-year growth in APE sales, new business CSM and NBV, respectively, reflecting higher sales volumes in Hong Kong, mainland China, Singapore and Japan. NBV margin7 remained resilient at 38.8%.
  • Canada delivered solid new business results; higher sales in participating life insurance and Group Insurance were more than offset by the non-recurrence of a large affinity market sale in 3Q23. APE sales and NBV were down 20% and 7%, respectively, while new business CSM increased 86% due to strong individual insurance and segregated fund sales.
  • U.S. delivered double-digit growth in APE sales, new business CSM and NBV of 23%, 30% and 36%, respectively, reflecting a rebound in demand from affluent customers for accumulation insurance products.

Global WAM net inflows of $5.2 billion in 3Q24, increased $6.0 billion compared with net outflows of $0.8 billion in 3Q23, reflecting strong Retail net flows across all geographies

  • Retirement net inflows of $0.6 billion in 3Q24 increased from net outflows of $3.4 billion in 3Q23, primarily driven by the non-recurrence of a large-case retirement plan redemption in the U.S. in 3Q23.
  • Retail net inflows of $3.9 billion in 3Q24 increased from net outflows of $0.2 billion in 3Q23, due to increased demand for investment products amid an equity market recovery and improved investor sentiment, as well as the onboarding of several new advisors in Canada wealth.
  • Institutional Asset Management net inflows of $0.7 billion in 3Q24 decreased compared with net inflows of $2.8 billion in 3Q23, reflecting higher redemptions in fixed income mandates.

Growth in new business continues to drive higher organic CSM and CSM balance 
CSM15 was $20,930 million as at September 30, 2024

CSM increased $490 million compared with December 31, 2023. Organic CSM movement contributed $724 million of the increase for the first three quarters of 2024, primarily driven by the impact of new business and interest accretion, partially offset by amortization recognized in core earnings and adverse insurance experience. Inorganic CSM movement was a decrease of $234 million for the same period, primarily driven by the impacts of reinsurance transactions and the annual review of actuarial methods and assumptions, partially offset by favourable impacts of changes in foreign currency exchange rates and equity market performance. Post-tax CSM net of NCI2 was $18,595 million as at September 30, 2024.

Annual Review of Actuarial Methods and Assumptions

We completed our annual review of actuarial methods and assumptions, which resulted in a net favourable impact of a $174 million16 decrease in pre-tax fulfillment cash flows. Under IFRS 17, the impact of the annual review of actuarial methods and assumptions is reported in several places. The $174 million decrease in pre-tax fulfillment cash flows in 3Q24 was comprised of a decrease in pre-tax net income attributed to shareholders of $250 million ($199 million post-tax), an increase in pre-tax net income attributed to participating policyholders of $29 million ($21 million post-tax), a decrease in CSM of $421 million, an increase in pre-tax other comprehensive income attributed to shareholders of $771 million ($632 million post-tax), and an increase in pre-tax other comprehensive income attributed to participating policyholders of $45 million ($32 million post-tax). The actuarial review this year included updates to our lapse assumptions for non-participating products in our U.S. life insurance business and in our International High Net Worth business in Asia segment, updates to discount rates used in the valuation of our non-participating business, a review of our reinsurance contracts and risk adjustment, updates to our global expense assumptions, updates to mortality and morbidity assumptions in certain products in Asia, as well as other methodology refinements.

__________________________________

1.

Record levels of total company annualized premium equivalent ("APE") sales, new business contractual service margin ("new business CSM") and new business value ("NBV").

2.

Core earnings and post-tax contractual service margin net of NCI ("post-tax CSM net of NCI") are non-GAAP financial measures. For more information on non-GAAP and other financial measures, see "Non-GAAP and other financial measures" below and in our 3Q24 Management's Discussion and Analysis ("3Q24 MD&A").

3.

Percentage growth / declines in core earnings, diluted core earnings per common share ("core EPS"), diluted earnings (loss) per share ("EPS"), core EPS excluding the impact of GMT, new business contractual service margin net of NCI ("new business CSM"), and net income attributed to shareholders are stated on a constant exchange rate basis and are non-GAAP ratios.

4.

Core EPS, core EPS excluding the impact of GMT, core ROE, core EBITDA margin, highest potential businesses core earnings contribution, expense efficiency ratio, adjusted book value per common share ("adjusted BV per common share") and financial leverage ratio are non-GAAP ratios.

5.

On June 20, 2024, Canada enacted the Global Minimum Tax Act. The impact was reflected in Corporate & Other in situations where GMT was not substantively enacted in local jurisdictions where we operated as of September 30, 2024.

6.

Life Insurance Capital Adequacy Test ("LICAT") ratio of The Manufacturers Life Insurance Company ("MLI") as at September 30, 2024. LICAT ratio is disclosed under the Office of the Superintendent of Financial Institutions Canada's ("OSFI's") Life Insurance Capital Adequacy Test Public Disclosure Requirements guideline.

7.

For more information on annualized premium equivalent ("APE") sales, NBV, Global Wealth and Asset Management ("Global WAM") net flows, gross flows, average asset under management and administration ("average AUMA") and new business value margin ("NBV margin"), see "Non-GAAP and other financial measures" below. In this news release, percentage growth/decline in APE sales, NBV, net flows, gross flows and average AUMA are stated on a constant exchange rate basis.

8.

Refer to "Results at a Glance" for 3Q24 and 3Q23 results.

9.

As of October 31, 2024.

10.

Manulife Pro is available in Singapore, Vietnam, Indonesia, Japan and Hong Kong.

11.

Net promoter score ("NPS").

12.

Compared with registration in May 2024, prior to the soft launch of the app in June 2024.

13.

Jianhui Zhao, Liying Xu, et al - Global trends in incidence, death, burden and risk factors of early-onset cancer from 1990 to 2019: BMJ Oncology 2023.

14.

See section A1 "Profitability" in our 3Q24 MD&A for more information on notable items attributable to core earnings and net income attributed to shareholders.

15.

Net of non-controlling interests ("NCI").

16.

This amount excludes the portion related to NCI.

Quarterly Results Conference Call

Manulife will host a conference call and live webcast on its third quarter 2024 results on November 7, 2024, at 8:00 a.m. (ET). To access the conference call, dial 1-800-806-5484 or 1-416-340-2217 (Passcode: 3664682#). Please call in 15 minutes before the scheduled start time. You will be required to provide your name and organization to the operator. You may access the webcast at manulife.com/en/investors/results-and-reports. 

The archived webcast will be available following the call at the same URL as above. A replay of the call will also be available until December 7, 2024, by dialing 1-800-408-3053 or 1-905-694-9451 (Passcode: 5071593#).

The Third Quarter 2024 Statistical Information Package is also available on the Manulife website at www.manulife.com/en/investors/results-and-reports.

This earnings news release should be read in conjunction with the Company's Third Quarter 2024 Report to Shareholders, including our unaudited interim Consolidated Financial Statements for the three and nine months ended September 30, 2024, prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, which is available on our website at www.manulife.com/en/investors/results-and-reports.html. The Company's 3Q24 MD&A and additional information relating to the Company is available on the SEDAR+ website at http://www.sedarplus.ca and on the U.S. Securities and Exchange Commission's ("SEC") website at http://www.sec.gov.

Any information contained in, or otherwise accessible through, websites mentioned in this news release does not form a part of this document unless it is expressly incorporated by reference.

Earnings

The following table presents net income attributed to shareholders, consisting of core earnings and details of the items excluded from core earnings:


Quarterly Results

YTD Results

($ millions)

3Q24

2Q24

3Q23

2024

2023

Core earnings






Asia

$             619

$             647

$             522

$           1,923

$            1,484

Canada

412

402

408

1,178

1,135

U.S.

411

415

442

1,278

1,285

Global Wealth and Asset Management

499

399

361

1,255

968

Corporate and Other

(113)

(126)

10

(315)

39

Total core earnings

$          1,828

$          1,737

$          1,743

$           5,319

$            4,911

Items excluded from core earnings:






Market experience gains (losses)

186

(665)

(1,022)

(1,258)

(1,657)

Change in actuarial methods and assumptions that flow directly through income

 

(199)

 

-

 

(14)

 

(199)

 

(14)

Restructuring charge

(20)

-

-

(20)

-

Reinsurance transactions, tax-related items and other

44

(30)

306

(95)

204

Net income attributed to shareholders

$          1,839

$          1,042

$          1,013

$           3,747

$            3,444

Non-GAAP and other financial measures

The Company prepares its Consolidated Financial Statements in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board. We use a number of non-GAAP and other financial measures to evaluate overall performance and to assess each of our businesses. This section includes information required by National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure in respect of "specified financial measures" (as defined therein).

Non-GAAP financial measures include core earnings (loss); core earnings available to common shareholders; core earnings before income taxes, depreciation and amortization ("core EBITDA"); core expenses, core earnings available to common shareholders excluding the impact of GMT; core revenue; adjusted book value; post-tax contractual service margin; and post-tax contractual service margin net of NCI ("post-tax CSM net of NCI"). In addition, non-GAAP financial measures include the following stated on a constant exchange rate ("CER") basis: any of the foregoing non-GAAP financial measures; net income attributed to shareholders; and common shareholders' net income.

Non-GAAP ratios include core return on common shareholders' equity ("core ROE"); diluted core earnings per common share ("core EPS"); core EPS excluding the impact of Global Minimum Tax ("GMT"); highest potential businesses core earnings contribution; expense efficiency ratio; adjusted book value per common share; financial leverage ratio; core EBITDA margin; and percentage growth/decline on a constant exchange rate basis in any of the above non-GAAP financial measures and non-GAAP ratios; net income attributed to shareholders; diluted earnings per common share ("EPS"); and new business CSM.

Other specified financial measures include NBV; APE sales; gross flows; net flows; average assets under management and administration ("average AUMA"); new business value margin ("NBV margin"); and percentage growth/decline in these foregoing specified financial measures. In addition, explanations of the components of the CSM movement, other than the new business CSM were provided in the 3Q24 MD&A.

Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under GAAP and, therefore, might not be comparable to similar financial measures disclosed by other issuers. Therefore, they should not be considered in isolation or as a substitute for any other financial information prepared in accordance with GAAP. For more information on non-GAAP financial measures, including those referred to above, see the section "Non-GAAP and other financial measures" in our 3Q24 MD&A, which is incorporated by reference.

Reconciliation of core earnings to net income attributed to shareholders – 3Q24
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)


3Q24


Asia

Canada

U.S.

Global
WAM

Corporate
and Other

Total

Income (loss) before income taxes

$         1,059

$           578

$             18

$           519

$           167

$         2,341

Income tax (expenses) recoveries







Core earnings

(65)

(104)

(112)

(6)

(28)

(315)

Items excluded from core earnings

26

(10)

99

(14)

(60)

41

Income tax (expenses) recoveries

(39)

(114)

(13)

(20)

(88)

(274)

Net income (post-tax)

1,020

464

5

499

79

2,067

Less: Net income (post-tax) attributed to







Non-controlling interests

130

-

-

1

-

131

Participating policyholders

63

34

-

-

-

97

Net income (loss) attributed to shareholders (post-tax)

827

430

5

498

79

1,839

Less: Items excluded from core earnings (post-tax)







Market experience gains (losses)

213

16

(204)

28

133

186

Changes in actuarial methods and assumptions that flow directly through income

(5)

2

(202)

-

6

(199)

Restructuring charge

-

-

-

(20)

-

(20)

Reinsurance transactions, tax related items and other

-

-

-

(9)

53

44

Core earnings (post-tax)

$            619

$           412

$           411

$           499

$        (113)

$         1,828

Income tax on core earnings (see above)

65

104

112

6

28

315

Core earnings (pre-tax)

$            684

$           516

$           523

$           505

$          (85)

$         2,143










Core earnings, CER basis and U.S. dollars – 3Q24
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)


3Q24


 

Asia

 

Canada

 

U.S.

Global
WAM

Corporate
and Other

Total

Core earnings (post-tax)

$            619

$           412

$           411

$           499

$         (113)

$        1,828

CER adjustment(1)

-

-

-

-

-

-

Core earnings, CER basis (post-tax)

$            619

$           412

$           411

$           499

$         (113)

$        1,828

Income tax on core earnings, CER basis(2)

65

104

112

6

28

315

Core earnings, CER basis (pre-tax)

$            684

$           516

$           523

$           505

$           (85)

$        2,143

Core earnings (U.S. dollars) – Asia and U.S. segments

Core earnings (post-tax)(3), US $

 

$            453


 

$           302




CER adjustment US $(1)

-


-




Core earnings, CER basis (post-tax), US $

$            453


$           302




(1) The impact of updating foreign exchange rates to that which was used in 3Q24.

(2) Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 3Q24.

(3) Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for 3Q24.

Reconciliation of core earnings to net income attributed to shareholders – 2Q24
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)


2Q24


Asia

Canada

U.S.

Global
WAM

Corporate
and Other

Total

Income (loss) before income taxes

$           763

$           141

$           156

$           383

$          (59)

$        1,384

Income tax (expenses) recoveries







Core earnings

(64)

(107)

(95)

(46)

(8)

(320)

Items excluded from core earnings

(51)

68

74

14

(37)

68

Income tax (expenses) recoveries

(115)

(39)

(21)

(32)

(45)

(252)

Net income (post-tax)

648

102

135

351

(104)

1,132

Less: Net income (post-tax) attributed to







Non-controlling interests

38

-

-

1

-

39

Participating policyholders

28

23

-

-

-

51

Net income (loss) attributed to shareholders (post-tax)

582

79

135

350

(104)

1,042

Less: Items excluded from core earnings (post-tax)







Market experience gains (losses)

(58)

(364)

(280)

(7)

44

(665)

Changes in actuarial methods and assumptions that flow directly through income

 

-

 

-

 

-

 

-

 

-

 

-

Restructuring charge

-

-

-

-

-

-

Reinsurance transactions, tax related items and other

(7)

41

-

(42)

(22)

(30)

Core earnings (post-tax)

$           647

$           402

$           415

$           399

$        (126)

$        1,737

Income tax on core earnings (see above)

64

107

95

46

8

320

Core earnings (pre-tax)

$           711

$           509

$           510

$           445

$        (118)

$        2,057

Core earnings, CER basis and U.S. dollars – 2Q24
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)


2Q24


Asia

Canada

U.S.

Global
WAM

Corporate
and Other

Total

Core earnings (post-tax)

$           647

$           402

$           415

$           399

$        (126)

$        1,737

CER adjustment(1)

7

-

(2)

(1)

1

5

Core earnings, CER basis (post-tax)

$           654

$           402

$           413

$           398

$        (125)

$        1,742

Income tax on core earnings, CER basis(2)

65

107

95

46

8

321

Core earnings, CER basis (pre-tax)

$           719

$           509

$           508

$           444

$        (117)

$        2,063

Core earnings (U.S. dollars) – Asia and U.S. segments

Core earnings (post-tax)(3), US $

 

$           472


 

$           303




CER adjustment US $(1)

6


-




Core earnings, CER basis (post-tax), US $

$           478


$           303




(1)

The impact of updating foreign exchange rates to that which was used in 3Q24.

(2)

Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 3Q24.

(3)

Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for 2Q24.

Reconciliation of core earnings to net income attributed to shareholders – 3Q23
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)


3Q23


Asia

Canada

U.S.

Global 
WAM

Corporate
and Other

Total

Income (loss) before income taxes

$           439

$           376

$             68

$           366

$          (75)

$        1,174

Income tax (expenses) recoveries







Core earnings

(62)

(109)

(93)

(59)

30

(293)

Items excluded from core earnings

(73)

15

97

11

294

344

Income tax (expenses) recoveries

(135)

(94)

4

(48)

324

51

Net income (post-tax)

304

282

72

318

249

1,225

Less: Net income (post-tax) attributed to







Non-controlling interests

25

-

-                    -                    -

25

Participating policyholders

195

(8)

-                    -                    -

187

Net income (loss) attributed to shareholders (post-tax)

84

290

72

318

249

1,013

Less: Items excluded from core earnings (post-tax)







Market experience gains (losses)

(286)

(159)

(476)

(43)

(58)

(1,022)

Changes in actuarial methods and assumptions that flow directly through income

 

(157)

 

37

 

106

 

-

 

-

 

(14)

Restructuring charge

-

-

-                    -                    -

-

Reinsurance transactions, tax related items and other

5

4

-                    -               297

306

Core earnings (post-tax)

$           522

$           408

$           442

$           361

$             10

$        1,743

Income tax on core earnings (see above)

62

109

93

59

(30)

293

Core earnings (pre-tax)

$           584

$           517

$           535

$           420

$          (20)

$        2,036

Core earnings, CER basis and U.S. dollars – 3Q23
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)


3Q23


Asia

Canada

U.S.

Global 
WAM

Corporate
and Other

Total

Core earnings (post-tax)

$           522

$           408

$           442

$           361

$             10

$        1,743

CER adjustment(1)

4

-

7

4

1

16

Core earnings, CER basis (post-tax)

$           526

$           408

$           449

$           365

$             11

$        1,759

Income tax on core earnings, CER basis(2)

62

109

95

59

(30)

295

Core earnings, CER basis (pre-tax)

$           588

$           517

$           544

$           424

$          (19)

$        2,054

Core earnings (U.S. dollars) – Asia and U.S. segments





Core earnings (post-tax)(3), US $

$           390


$           329

CER adjustment US $(1)

(4)


-

Core earnings, CER basis (post-tax), US $

$           386


$           329

(1)

The impact of updating foreign exchange rates to that which was used in 3Q24.

(2)

Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 3Q24.

(3)

Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for 3Q23.

Reconciliation of core earnings to net income attributed to shareholders – YTD 2024
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)


YTD 2024


Asia

Canada

U.S.

Global 
WAM

Corporate
and Other

Total

Income (loss) before income taxes

$        2,416

$        1,100

$             20

$        1,328

$           113

$       4,977

Income tax (expenses) recoveries







Core earnings

(196)

(302)

(310)

(110)

(3)

(921)

Items excluded from core earnings

(108)

66

322

(3)

(162)

115

Income tax (expenses) recoveries

(304)

(236)

12

(113)

(165)

(806)

Net income (post-tax)

2,112

864

32

1,215

(52)

4,171

Less: Net income (post-tax) attributed to







Non-controlling interests

223

-

-

2

-

225

Participating policyholders

117

82

-

-

-

199

Net income (loss) attributed to shareholders (post-tax)

1,772

782

32

1,213

(52)

3,747

Less: Items excluded from core earnings (post-tax)







Market experience gains (losses)

(95)

(439)

(1,018)

27

267

(1,258)

Changes in actuarial methods and assumptions that flow directly through income

 

(5)

 

2

 

(202)

 

-

 

6

 

(199)

Restructuring charge

-

-

-

(20)

-

(20)

Reinsurance transactions, tax related items and other

(51)

41

(26)

(49)

(10)

(95)

Core earnings (post-tax)

$        1,923

$        1,178

$        1,278

$        1,255

$          (315)

$       5,319

Income tax on core earnings (see above)

196

302

310

110

3

921

Core earnings (pre-tax)

$        2,119

$        1,480

$        1,588

$        1,365

$          (312)

$       6,240

Core earnings, CER basis and U.S. dollars – YTD 2024
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)


YTD

2024



Asia

Canada

U.S.

Global 
WAM

Corporate
and Other

Total

Core earnings (post-tax)

$        1,923

$        1,178

$        1,278

$        1,255

$          (315)

$5,319

CER adjustment(1)

15

-

3

2

1

21

Core earnings, CER basis (post-tax)

$        1,938

$        1,178

$        1,281

$        1,257

$          (314)

$5,340

Income tax on core earnings, CER basis(2)

197

302

312

110

3

924

Core earnings, CER basis (pre-tax)

$        2,135

$        1,480

$        1,593

$        1,367

$          (311)

$6,264

Core earnings (U.S. dollars) – Asia and U.S. segments





Core earnings (post-tax)(3), US $

$        1,413


$           940

CER adjustment US $(1)

6


-

Core earnings, CER basis (post-tax), US $

$        1,419


$           940

(1)

The impact of updating foreign exchange rates to that which was used in 3Q24.

(2)

Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 3Q24.

(3)

Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for the respective quarters that make up 2024 year-to-date core earnings.

Reconciliation of core earnings to net income attributed to shareholders – YTD 2023
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)


YTD 2023


Asia

Canada

U.S.

Global 
WAM

Corporate
and Other

Total

Income (loss) before income taxes

$        1,397

$        1,111

$           507

$         1,073

$           241

$  4,329

Income tax (expenses) recoveries







Core earnings

(203)

(291)

(289)

(149)

62

(870)

Items excluded from core earnings

(128)

34

223

9

209

347

Income tax (expenses) recoveries

(331)

(257)

(66)

(140)

271

(523)

Net income (post-tax)

1,066

854

441

933

512

3,806

Less: Net income (post-tax) attributed to







Non-controlling interests

104

-

-

1

-

105

Participating policyholders

229

28

-

-

-

257

Net income (loss) attributed to shareholders (post-tax)

733

826

441

932

512

3,444

Less: Items excluded from core earnings (post-tax)







Market experience gains (losses)

(553)

(350)

(917)

(41)

204

(1,657)

Changes in actuarial methods and assumptions that flow directly through income

 

(157)

 

37

 

106

 

-

 

-

 

(14)

Restructuring charge

-

-

-

-

-

-

Reinsurance transactions, tax related items and other

(41)

4

(33)

5

269

204

Core earnings (post-tax)

$        1,484

$        1,135

$        1,285

$           968

$             39

$  4,911

Income tax on core earnings (see above)

203

291

289

149

(62)

870

Core earnings (pre-tax)

$        1,687

$        1,426

$        1,574

$         1,117

$            (23)

$  5,781

Core earnings, CER basis and U.S. dollars – YTD 2023
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)


YTD 2023


Asia

Canada

U.S.

Global 
WAM

Corporate
and Other

Total

Core earnings (post-tax)

$        1,484

$        1,135

$        1,285

$           968

$              39

$  4,911

CER adjustment(1)

(11)

-

18

8

2

17

Core earnings, CER basis (post-tax)

$        1,473

$        1,135

$        1,303

$           976

$              41

$  4,928

Income tax on core earnings, CER basis(2)

199

291

293

149

(61)

871

Core earnings, CER basis (pre-tax)

$        1,672

$        1,426

$        1,596

$        1,125

$             (20)

$  5,799

Core earnings (U.S. dollars) – Asia and U.S. segments

Core earnings (post-tax)(3), US $

 

$        1,104


 

$           955




CER adjustment US $(1)

(24)


-




Core earnings, CER basis (post-tax), US $

$        1,080


$           955




(1)

The impact of updating foreign exchange rates to that which was used in 3Q24.

(2)

Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 3Q24.

(3)

Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for the respective quarters that make up 2023 year-to-date core earnings.

Core earnings available to common shareholders
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)


Quarterly Results

YTD Results

Full Year
Results


3Q24

2Q24

1Q24

4Q23

3Q23

2024

2023

2023

Core earnings

Less: Preferred share dividends and
   other equity distributions

$       1,828

 

56

$       1,737

 

99

$       1,754

 

55

$       1,773

 

99

$       1,743

 

54

$       5,319

 

210

$       4,911

 

204

$       6,684

 

303

Core earnings available to common









shareholders

1,772

1,638

1,699

1,674

1,689

5,109

4,707

6,381

CER adjustment(1)

-

5

16

2

16

21

17

19

Core earnings available to common
   shareholders, CER basis

 

$       1,772

 

$       1,643

 

$       1,715

 

$       1,676

 

$       1,705

 

$       5,130

 

$       4,724

 

$       6,400

(1)

The impact of updating foreign exchange rates to that which was used in 3Q24.

Core ROE
($ millions, unless otherwise stated)


Quarterly Results 

YTD Results

Full Year
Results


3Q24

2Q24

1Q24

4Q23

3Q23

2024

2023

2023

Core earnings available to common shareholders

 

$        1,772

 

$        1,638

 

$        1,699

 

$        1,674

 

$        1,689

 

$        5,109

 

$        4,707

 

$        6,381

Annualized core earnings available to common shareholders (post-tax)

 

$        7,049

 

$        6,588

 

$        6,833

 

$        6,641

 

$        6,701

 

$        6,824

 

$        6,293

 

$        6,381

Average common shareholders' equity (see below)

 

$      42,609

 

$      41,947

 

$      40,984

 

$      40,563

 

$      39,897

 

$      41,847

 

$      40,081

 

$      40,201

Core ROE (annualized) (%)

16.6 %

15.7 %

16.7 %

16.4 %

16.8 %

16.3 %

15.7 %

15.9 %

Average common shareholders'









equity









Total shareholders' and other equity

$      49,573

$      48,965

$      48,250

$      47,039

$      47,407

$      49,573

$      47,407

$      47,039

Less: Preferred shares and other equity

6,660

6,660

6,660

6,660

6,660

6,660

6,660

6,660

Common shareholders' equity

$      42,913

$      42,305

$      41,590

$      40,379

$      40,747

$      42,913

$      40,747

$      40,379

Average common shareholders' equity

 

$      42,609

 

$      41,947

 

$      40,984

 

$      40,563

 

$      39,897

 

$      41,847

 

$      40,081

 

$      40,201

 

Core earnings available to common shareholders excluding the impact of GMT

For the three months ended September 30, 2024

($ millions and post-tax)

 

2024

Core earnings available to common shareholders

$           1,772

Less: GMT included in core earnings

(61)

Core earnings available to common shareholders excluding the impact GMT

$           1,833

CSM and post-tax CSM information

($ millions pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

 

As at

Sept 30,

2024

Jun 30,

2024

Mar 31,

2024

Dec 31,

2023

Sept 30,

2023

CSM

$         22,213

$           21,760

$           22,075

$           21,301

$         18,149

Less: CSM for NCI

1,283

1,002

986

861

780

CSM, net of NCI

$         20,930

$           20,758

$           21,089

$           20,440

$         17,369

CER adjustment(1)

-

218

207

427

152

CSM, net of NCI, CER basis

$         20,930

$           20,976

$           21,296

$           20,867

$         17,521

Post-tax CSM

CSM

 

$         22,213

 

$           21,760

 

$           22,075

 

$           21,301

 

$         18,149

Marginal tax rate on CSM

(2,488)

(2,576)

(2,650)

(2,798)

(2,474)

Post-tax CSM

$         19,725

$           19,184

$           19,425

$           18,503

$         15,675

CSM, net of NCI

$         20,930

$           20,758

$           21,089

$           20,440

$         17,369

Marginal tax rate on CSM net of NCI

(2,335)

(2,468)

(2,542)

(2,692)

(2,377)

Post-tax CSM net of NCI

$         18,595

$           18,290

$           18,547

$           17,748

$         14,992

(1)

The impact of reflecting CSM and CSM net of NCI using the foreign exchange rates for the Statement of Financial Position in effect for 3Q24.

 

New business CSM(1) detail, CER basis
($ millions pre-tax, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)



Quarterly Results

YTD Results

Full Year
Results



3Q24

2Q24

1Q24

4Q23

3Q23

2024

2023

2023

New business CSM










Hong Kong


$   254

$   200

$   168

$   199

$   167

$   622

$   477

$   676

Japan


86

90

48

42

29

224

84

126

Asia Other


253

188

275

173

206

716

574

747

International High Net Worth









231

Mainland China









138

Singapore









244

Vietnam









87

Other Emerging Markets









47

Asia


593

478

491

414

402

1,562

1,135

1,549

Canada


95

76

70

70

51

241

154

224

U.S.


71

74

97

142

54

242

252

394

Total new business CSM


$   759

$   628

$   658

$   626

$   507

$   2,045

$   1,541

$   2,167

New business CSM, CER adjustment(2),(3)










Hong Kong


$   -

$   -

$   1

$   1

$   3

$   1

$   7

$   -

Japan


-

4

1

(1)

(1)

5

(5)

(8)

Asia Other


-

2

5

2

6

7

5

(5)

International High Net Worth









1

Mainland China









(1)

Singapore









-

Vietnam









(4)

Other Emerging Markets









(1)

Asia


-

6

7

2

8

13

7

(13)

Canada


-

-

-

-

1

-

-

-

U.S.


-

(1)

1

(1)

1

-

1

(1)

Total new business CSM


$   -

$   5

$   8

$   1

$   10

$   13

$   8

$   (14)

New business CSM, CER basis










Hong Kong


$   254

$   200

$   169

$   200

$   170

$   623

$   484

$   676

Japan


86

94

49

41

28

229

79

118

Asia Other


253

190

280

175

212

723

579

742

International High Net Worth









232

Mainland China









137

Singapore









244

Vietnam









83

Other Emerging Markets









46

Asia


593

484

498

416

410

1,575

1,142

1,536

Canada


95

76

70

70

52

241

154

224

U.S.


71

73

98

141

55

242

253

393

Total new business CSM, CER basis


$   759

$   633

$   666

$   627

$   517

$   2,058

$   1,549

$   2,153

(1)

New business CSM is net of NCI.

(2)

The impact of updating foreign exchange rates to that which was used in 3Q24.

(3)

New business CSM for Asia Other is reported by country annually, on a full year basis. Other Emerging Markets within Asia Other include Indonesia, the Philippines, Malaysia, Thailand, Cambodia and Myanmar.

 

Net income financial measures on a CER basis

($ Canadian millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)


Quarterly Results 

YTD Results

Full Year
 Results 


3Q24

2Q24

  1Q24

4Q23

3Q23

2024

2023

2023

Net income (loss) attributed to shareholders:









Asia

$       827

$ 582

$      363

$    615

$      84

$1,772

$  733

$    1,348

Canada

430

79

273

365

290

782

826

1,191

U.S.

5

135

(108)

198

72

32

441

639

Global WAM

498

350

365

365

318

1,213

932

1,297

Corporate and Other

79

(104)

(27)

116

249

(52)

512

628

Total net income (loss) attributed to shareholders

1,839

1,042

866

1,659

1,013

3,747

3,444

5,103

Preferred share dividends and other equity distributions

(56)

(99)

(55)

(99)

(54)

(210)

(204)

(303)

Common shareholders' net income (loss)

$  1,783

$ 943

$      811

$1,560

$  959

$3,537

$3,240

$    4,800

CER adjustment(1)








Asia

$           -

$  (10)

$          3

$       1

$      -

$    (7)

$      17

$         18

Canada

-

1

2

(5)

3

3

2

(3)

U.S.

-

(1)

5

(2)

-

4

13

11

Global WAM

-

(1)

3

-

4

2

8

8

Corporate and Other

-

(1)

-

-

(7)

(1)

(20)

(20)

Total net income (loss) attributed to shareholders

-

(12)

13

(6)

-

1

20

14

Preferred share dividends and other equity distributions

-

-

-

-

-

-

-

-

Common shareholders' net income (loss)    

$         - $

(12) $

13 $

(6) $

-

$       1

$     20

$         14

Net income (loss) attributed to shareholders, CER basis









Asia

$       827

$ 572

$   366

$   616

$    84

$1,765

$   750

$    1,366

Canada

430

80

275

360

293

785

828

1,188

U.S.

5

134

(103)

196

72

36

454

650

Global WAM

498

349

368

365

322

1,215

940

1,305

Corporate and Other

79

(105)

(27)

116

242

(53)

492

608

Total net income (loss) attributed to shareholders, CER








  basis

1,839

1,030

879

1,653

1,013

3,748

3,464

5,117

Preferred share dividends and other equity distributions, CER 
 basis

(56)

(99)

(55)

(99)

(54)

(210)

(204)

(303)

Common shareholders' net income (loss), CER basis

$  1,783

$ 931

$  824

$1,554

$  959

$  3,538

$3,260

$    4,814

Asia net income attributed to shareholders, U.S. dollars








Asia net income (loss) attributed to shareholders, US $(2)

$       606

$ 424

$  270

$   452

$    63

$1,300

$    543

$       995

CER adjustment, US $(1)

-

(5)

(2)

(1)

(1)

(7)

6

5

Asia net income (loss) attributed to shareholders, U.S. $, CER basis(1)

 

$       606

$    419

 

$       268

 

$       451

 

$   62

 

$1,293

 

$   549

 

$    1,000

(1) 

The impact of updating foreign exchange rates to that which was used in 3Q24.

(2)

Asia net income attributed to shareholders (post-tax) in Canadian dollars is translated to U.S. dollars using the U.S. dollar Statement of Income rate for the reporting period.

Adjusted book value

As at

($ millions)

Sept 30,

2024

Jun 30,

2024

Mar 31,

2024

Dec 31,

2023

Sept 30,

2023

Common shareholders' equity

$      42,913

$      42,305

$      41,590

$      40,379

$      40,747

Post-tax CSM, net of NCI

18,595

18,290

18,547

17,748

14,992

Adjusted book value

$      61,508

$      60,595

$      60,137

$      58,127

$      55,739

Reconciliation of Global WAM core earnings to core EBITDA

($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)


Quarterly Results

YTD Results

Full Year
Results


3Q24

2Q24

1Q24

4Q23

3Q23

2024

2023

2023

Global WAM core earnings (post-tax)

$       499

$       399

$       357

$       353

$       361

$    1,255

$       968

$        1,321

Add back taxes, acquisition costs, other expenses
   and deferred sales commissions









Core income tax (expenses) recoveries (see
   above)

6

46

58

55

59

110

149

204

Amortization of deferred acquisition costs and
   other depreciation

48

49

42

45

41

139

121

166

Amortization of deferred sales commissions

19

19

20

21

19

58

59

80

Core EBITDA

$       572

$       513

$       477

$       474

$       480

$    1,562

$    1,297

$        1,771

CER adjustment(1)

-

(2)

4

(1)

5

2

10

9

Core EBITDA, CER basis

$       572

$       511

$       481

$       473

$       485

$    1,564

$    1,307

$        1,780

(1)   The impact of updating foreign exchange rates to that which was used in 3Q24.

 

Core EBITDA margin and core revenue


Quarterly Results

YTD Results

Full Year
 Results

($ millions, unless otherwise stated)

3Q24

2Q24

1Q24

4Q23

3Q23

2024

2023

2023

Core EBITDA margin









Core EBITDA

$     572

$     513

$     477

$     474

$     480

$   1,562

$  1,297

$       1,771

Core revenue

$  2,055

$  1,948

$  1,873

$  1,842

$  1,783

$   5,876

$  5,261

$       7,103

Core EBITDA margin

27.8 %

26.3 %

25.5 %

25.7 %

26.9 %

26.6 %

24.7 %

24.9 %

Global WAM core revenue









Other revenue per financial statements

$  1,928

$  1,849

$  1,808

$  1,719

$  1,645

$   5,585

$  5,027

$       6,746

Less: Other revenue in segments other than Global









WAM

53

40

58

31

(64)

151

6

37

Other revenue in Global WAM (fee income)

$  1,875

$  1,809

$  1,750

$  1,688

$  1,709

$   5,434

$   5,021

$       6,709

Investment income per financial statements

$  4,487

$  4,261

$  4,251

$  4,497

$  4,028

$ 12,999

$ 11,683

$     16,180

Realized and unrealized gains (losses) on assets









supporting insurance and investment contract









liabilities per financial statements

1,730

564

538

2,674

(2,430)

2,832

464

3,138

Total investment income

6,217

4,825

4,789

7,171

1,598

15,831

12,147

19,318

Less: Investment income in segments other than









Global WAM

5,991

4,687

4,649

6,941

1,578

15,327

11,945

18,886

Investment income in Global WAM

$     226

$     138

$     140

$      230

$       20

$     504

$     202

$          432

Total other revenue and investment income in Global








WAM

$  2,101

$  1,947

$  1,890

$   1,918

$  1,729

$   5,938

$     5,223

$       7,141

Less: Total revenue reported in items excluded from








core earnings








Market experience gains (losses)

33

(9)

8

63

(54)

32

(35)

28

Revenue related to integration and acquisitions

13

8

9

13

-

30

(3)

10

Global WAM core revenue

$  2,055

$  1,948

$  1,873

$  1,842

$  1,783

$  5,876

$  5,261

$       7,103

 

Core expenses

($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)


Quarterly Results

YTD Results

Full Year
Results


3Q24

2Q24

1Q24

4Q23

3Q23

2024

2023

2023

Core expenses









General expenses - Statements of Income

$   1,204

$   1,225

$   1,102

$   1,180

$   1,042

$     3,531

$     3,150

$     4,330

Directly attributable acquisition expense for
   contracts measured using the PAA method and
   for other products without a CSM(1)

36

39

38

42

37

113

105

147

Directly attributable maintenance expense(1)

509

509

539

565

544

1,557

1,640

2,205

Total expenses

1,749

1,773

1,679

1,787

1,623

5,201

4,895

6,682

Less: General expenses included in items
    excluded from core earnings









Restructuring charge

25

-

-

46

-

25

-

46

Integration and acquisition

-

57

-

8

-

57

-

8

Legal provisions and Other expenses

8

3

6

8

1

17

70

78

Total

33

60

6

62

1

99

70

132

Core expenses

$   1,716

$   1,713

$   1,673

$   1,725

$   1,622

$     5,102

$     4,825

$     6,550

CER adjustment(2)

-

1

11

2

12

12

19

21

Core expenses, CER basis

$   1,716

$   1,714

$   1,684

$   1,727

$   1,634

$     5,114

$     4,844

$     6,571

Total expenses

$   1,749

$   1,773

$   1,679

$   1,787

$   1,623

$     5,201

$     4,895

$     6,682

CER adjustment(2)

-

1

11

2

12

12

19

21

Total expenses, CER basis

$   1,749

$   1,774

$   1,690

$   1,789

$   1,635

$     5,213

$     4,914

$     6,703

(1)   Expenses are components of insurance service expenses on the Statements of Income that flow directly through income.

(2)   The impact of updating foreign exchange rates to that which was used in 3Q24.

 

Core earnings contribution from highest potential businesses

($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

YTD Results


2024

2023

Core earnings highest potential businesses(1)                                                                                   $                   3,745 

$           2,950

Core earnings - All other businesses                                                                                                                       1,574

1,961

Core earnings                                                                                                                                                            5,319

4,911

Items excluded from core earnings                                                                                                                        (1,572)

(1,467)

Net income (loss) attributed to shareholders                                                                                  $                   3,747 

$           3,444

Highest potential businesses core earnings contribution                                                                                    70%

60 %

(1) Includes core earnings from Asia and Global WAM segments, Canada Group Benefits, and behavioral insurance products.


 

CAUTION REGARDING FORWARD-LOOKING STATEMENTS:

From time to time, Manulife makes written and/or oral forward-looking statements, including in this document. In addition, our representatives may make forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the "safe harbour" provisions of Canadian provincial securities laws and the U.S. Private Securities Litigation Reform Act of 1995.

The forward-looking statements in this document include, but are not limited to, statements with respect to our ability to achieve our medium-term financial and operating targets, and also relate to, among other things, our objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and can generally be identified by the use of words such as "may", "will", "could", "should", "would", "likely", "suspect", "outlook", "expect", "intend", "estimate", "anticipate", "believe", "plan", "forecast", "objective", "seek", "aim", "continue", "goal", "restore", "embark" and "endeavour" (or the negative thereof) and words and expressions of similar import, and include statements concerning possible or assumed future results. 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 and they should not be interpreted as confirming market or analysts' expectations in any way.

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 results to differ materially from expectations include but are not limited to: general business and economic conditions (including but not limited to the performance, volatility and correlation of equity markets, interest rates, credit and swap spreads, inflation rates, currency rates, investment losses and defaults, market liquidity and creditworthiness of guarantors, reinsurers and counterparties); the ongoing prevalence of COVID-19, including any variants, as well as actions that have been, or may be taken by governmental authorities in response to COVID-19, including the impacts of any variants; changes in laws and regulations; changes in accounting standards applicable in any of the territories in which we operate; changes in regulatory capital requirements; our ability to obtain premium rate increases on in-force policies; our ability to execute strategic plans and changes to strategic plans; downgrades in our financial strength or credit ratings; our ability to maintain our reputation; impairments of goodwill or intangible assets or the establishment of provisions against future tax assets; the accuracy of estimates relating to morbidity, mortality and policyholder behaviour; the accuracy of other estimates used in applying accounting policies, actuarial methods and embedded value methods; our ability to implement effective hedging strategies and unforeseen consequences arising from such strategies; our ability to source appropriate assets to back our long-dated liabilities; level of competition and consolidation; our ability to market and distribute products through current and future distribution channels; unforeseen liabilities or asset impairments arising from acquisitions and dispositions of businesses; the realization of losses arising from the sale of investments classified fair value through other comprehensive income; our liquidity, including the availability of financing to satisfy existing financial liabilities on expected maturity dates when required; obligations to pledge additional collateral; the availability of letters of credit to provide capital management flexibility; accuracy of information received from counterparties and the ability of counterparties to meet their obligations; the availability, affordability and adequacy of reinsurance; legal and regulatory proceedings, including tax audits, tax litigation or similar proceedings; our ability to adapt products and services to the changing market; our ability to attract and retain key executives, employees and agents; the appropriate use and interpretation of complex models or deficiencies in models used; political, legal, operational and other risks associated with our non-North American operations; geopolitical uncertainty, including international conflicts; acquisitions and our ability to complete acquisitions including the availability of equity and debt financing for this purpose; the disruption of or changes to key elements of the Company's or public infrastructure systems; environmental concerns, including climate change; our ability to protect our intellectual property and exposure to claims of infringement; and our inability to withdraw cash from subsidiaries.

Additional information about material risk factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found under "Risk Management and Risk Factors" and "Critical Actuarial and Accounting Policies" in the Management's Discussion and Analysis in our most recent annual report, under "Risk Management and Risk Factors Update" and "Critical Actuarial and Accounting Policies" in the Management's Discussion and Analysis in our most recent interim report, and in the "Risk Management" note to the Consolidated Financial Statements in our most recent annual and interim reports, as well as 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 and are presented for the purpose of assisting investors and others in understanding our financial position and results of operations, our future operations, as well as our objectives and strategic priorities, and may not be appropriate for other purposes. We do not undertake to update any forward-looking statements, except as required by law.

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SOURCE The Manufacturers Life Insurance Company

FAQ

What was Manulife's (MFC) core earnings for Q3 2024?

Manulife reported core earnings of $1.8 billion in Q3 2024, representing a 4% increase from Q3 2023.

How much did Manulife's (MFC) APE sales grow in Q3 2024?

Manulife's APE sales increased by 40% compared to Q3 2023.

What was Manulife's (MFC) net income in Q3 2024?

Manulife's net income attributed to shareholders was $1.8 billion in Q3 2024, up $0.8 billion from Q3 2023.

What was Manulife's (MFC) core ROE in Q3 2024?

Manulife's core ROE was 16.6% in Q3 2024.

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Manulife Financial Corp.

NYSE:MFC

MFC Rankings

#239 Ranked by Market Cap
#564 Ranked by Dividends

MFC Latest News

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MFC Stock Data

58.42B
1.80B
0.03%
60.59%
0.52%
Insurance - Life
Financial Services
Link
United States of America
Toronto