C$ unless otherwise stated
TSX/NYSE/PSE: MFC
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This earnings news
release for Manulife Financial Corporation ("Manulife" or the
"Company") should be read in conjunction with the Company's
Management's Discussion & Analysis ("MD&A") and
Consolidated Financial Statements for the year ended December 31,
2020, prepared in accordance with International Financial Reporting
Standards ("IFRS") as issued by the International Accounting
Standards Board ("IASB"), which are available on our website at
www.manulife.com/en/investors/results-and-reports. Additional
information relating to the Company is available on the SEDAR
website at http://www.sedar.com and on the U.S. Securities and
Exchange Commission's ("SEC") website at
http://www.sec.gov.
|
TORONTO, Feb. 10, 2021 /PRNewswire/ - Today, Manulife
announced its 2020 and fourth quarter of 2020 ("4Q20") results. Key
highlights include:
- Net income attributed to shareholders of $5.9 billion in 2020, up $0.3 billion from 2019, and $1.8 billion in 4Q20, up $0.6 billion from the fourth quarter of 2019
("4Q19")
- Core earnings1 of $5.5
billion in 2020, down $0.5
billion from 2019, and $1.5
billion in 4Q20, in line with 4Q19
- Strong LICAT ratio2 of 149%
- Core ROE1 of 10.9% in 2020 and 11.6% in 4Q20, and
ROE of 11.6% in 2020 and 14.1% in 4Q20
- NBV1 of $1.8 billion
in 2020, down 13%3 from 2019, and $489 million in 4Q20, down 7% from 4Q19
- APE sales1 of $5.6
billion in 2020, down 8% from 2019, and $1.4 billion in 4Q20, down 5% from 4Q19
- Global WAM net inflows1 of $8.9 billion in 2020 compared with net outflows
of $0.9 billion in 2019 and net
inflows of $2.8 billion in 4Q20
compared with net inflows of $4.9
billion in 4Q19
- As of December 31, 2020,
delivered a cumulative reduction in pre-tax annual general expenses
of $1.0 billion, achieving our
medium-term target two years ahead of schedule
"2020 was an incredibly challenging year in so many ways.
Countless people were affected by illness and loss, as well as
isolation from loved ones, putting stress on their physical and
mental health, and creating anxiety for their financial well-being.
We want to thank all of the front-line workers globally for their
incredible efforts through this unprecedented time," said Manulife
President & Chief Executive Officer Roy
Gori.
"I want to also take this opportunity to thank every colleague,
along with our agents and business partners for all they have done
to make decisions easier and lives better for our customers over
the past year. As the year ahead presents continued challenges, I
am enormously grateful for their passion for serving our customers'
evolving needs while most are persevering through the personal and
professional challenges of doing so while working from home," Mr.
Gori continued.
"Navigating the challenges presented by the pandemic, we
achieved very solid operating results in 2020, illustrating the
global strength and diversity of our business, our strong digital
capabilities and the tremendous resilience of our team. Core
earnings increased year-over-year across three of our four
operating segments, Global WAM delivered net inflows of
$8.9 billion, and our APE sales were
down just 8% compared to 2019," added Mr. Gori.
___________________________________
|
1
|
Core earnings, core
return on common shareholders' equity ("Core ROE"), new business
value ("NBV"), annualized premium equivalent ("APE") sales, and net
flows are non-GAAP measures. See "Performance and Non-GAAP
Measures" below and in our 2020 Management's Discussion and
Analysis ("2020 MD&A") for additional
information.
|
2
|
Life Insurance
Capital Adequacy Test ("LICAT") ratio of The Manufacturers Life
Insurance Company ("MLI").
|
3
|
All percentage growth
/ declines in financial metrics in this news release are reported
on a constant exchange rate basis. Constant exchange rate basis
excludes the impact of currency fluctuations and is a non-GAAP
measure. See "Performance and Non-GAAP Measures" below and in our
2020 MD&A for additional information.
|
"We continued to execute against our strategic
priorities1 throughout 2020, including deploying
capital to expand our distribution footprint in Asia. Our insurance agency force grew by 21%
and now exceeds 115,000 agents. And, we extended our exclusive
partnership with Bank Danamon in Indonesia and announced a new exclusive
partnership with VietinBank, one of the largest banks in
Vietnam," Mr. Gori noted.
Phil Witherington, Chief
Financial Officer, offered, "We continued to make significant
progress on improving our expense efficiency in 2020. Core general
expenses2 declined by 3% compared with the prior
year, and we have now delivered one billion
dollars of sustainable expense efficiencies, achieving our
2022 target two years ahead of schedule. In addition, we are on
track to achieve our target expense efficiency ratio of less than
50% by 20223, despite headwinds related to the global
pandemic."
"Our LICAT ratio of 149% is strong and we continue to maintain
substantial financial flexibility. Reflecting the challenging
operating environment and our robust capital position, we delivered
Core ROE of 10.9% in 2020. Although the result fell short of our
medium-term target of 13% plus, we view this as a good outcome
given the circumstances," added Mr. Witherington.
"The events of the past year have reinforced the value of
insurance, well-being, retirement and wealth management programs,
and the products and services we provide," said Mr.
Gori. "And I am optimistic about the tremendous opportunity
we have in this year to help people live better, happier and
healthier lives."
2020 BUSINESS HIGHLIGHTS:
We made further progress on portfolio optimization in 2020
through a variety of initiatives. We completed an agreement to
reinsure our legacy U.S. Bank-Owned Life Insurance business,
experienced continued success from our Annuity Guaranteed Minimum
Withdrawal Benefit offer program, and recognized impacts from the
sale of alternative long-duration assets enabled by reinsurance of
individual and group payout annuity policies. In total, portfolio
optimization initiatives generated additional capital benefits of
$780 million.
We made significant strategic investments in our technology
infrastructure in recent years. As the COVID-19 pandemic took hold
globally, we leveraged these investments to provide quality service
to our existing customers and to those seeking to purchase our
products; 97%4 of our product shelf in
Asia and Canada, 90%5 of our Global WAM
product shelf and 80%4 of our U.S. product shelf
are accessible to customers through virtual
face-to-face6 methods. In addition, these
investments enabled a seamless transition to remote work
arrangements for our employees, 95% of whom have worked remotely
for prolonged periods during the pandemic.
In Asia, we increased the number of insurance agents by 21% to
over 115,000, announced an exclusive bancassurance partnership with
VietinBank7 and reached an early extension of our
bancassurance agreement with PT Bank Danamon Indonesia to 2036. In
addition, in 4Q20 we received approval from the China Banking and
Insurance Regulatory Commission to begin preparation work to
establish a new branch in the Shaanxi
Province. In Canada, we
introduced Health by Design to our Group Benefits product offering,
a proactive approach using the latest science, technology and
predictive analytics to help each member with their unique health
journey. In the U.S., we continued to see growth in our "Vitality
for All" strategy through Vitality GO and Vitality PLUS, extending
Vitality benefits to all insurance customers and we announced
a strategic collaboration with Amazon which adds the Halo wellness
band to the devices supported by John
Hancock's Vitality Program. In our Global Wealth and Asset
Management business, we acquired a minority stake in Albamen
Capital Partners, a private equity infrastructure investment
manager with a focus on renewable energy, data centers and other
power-intensive infrastructure assets in mainland China and completed the formation of our
Retail and Institutional joint venture with Mahindra Finance in
India.
__________________________________
|
1
|
Our strategic
priorities include Portfolio Optimization, Expense Efficiency,
Accelerate Growth, Digital Customer Leader and High Performing
Team. For more information, please refer to "Strategic priorities
progress update" in our 2020 MD&A.
|
2
|
This item is a
non-GAAP measure. See "Performance and Non-GAAP Measures" below and
in our 2020 MD&A for additional information.
|
3
|
See "Caution
regarding forward-looking statements" below.
|
4
|
Represents the
percentage of 2019 APE sales that are currently available for sale
via virtual face-to-face methods (applies to Asia, Canada and
U.S.).
|
5
|
Reflects Global WAM's
AUMA available to new and existing retail and retirement
customers.
|
6
|
Virtual face-to-face,
includes digital as well as non-digital solutions.
|
7
|
Pending regulatory
approval.
|
FINANCIAL HIGHLIGHTS:
|
Quarterly
Results
|
Full Year
Results
|
($ millions, unless
otherwise stated)
|
|
4Q20
|
|
4Q19
|
|
2020
|
|
2019
|
Profitability:
|
|
|
|
|
|
|
|
|
Net income attributed
to shareholders
|
$
|
1,780
|
$
|
1,228
|
$
|
5,871
|
$
|
5,602
|
Core
earnings(1)
|
$
|
1,474
|
$
|
1,477
|
$
|
5,516
|
$
|
6,004
|
Diluted earnings per
common share ($)
|
$
|
0.89
|
$
|
0.61
|
$
|
2.93
|
$
|
2.77
|
Diluted core earnings
per common share ($)(1)
|
$
|
0.74
|
$
|
0.73
|
$
|
2.75
|
$
|
2.97
|
Return on common
shareholders' equity ("ROE")
|
|
14.1%
|
|
10.3%
|
|
11.6%
|
|
12.2%
|
Core
ROE(1)
|
|
11.6%
|
|
12.5%
|
|
10.9%
|
|
13.1%
|
Expense efficiency
ratio(1)
|
|
52.7%
|
|
54.2%
|
|
52.9%
|
|
52.0%
|
Performance:
|
|
|
|
|
|
|
|
|
Asia new business
value
|
$
|
368
|
$
|
390
|
$
|
1,387
|
$
|
1,595
|
Canada new
business value
|
$
|
65
|
$
|
59
|
$
|
255
|
$
|
237
|
U.S. new business
value
|
$
|
56
|
$
|
77
|
$
|
160
|
$
|
218
|
Total new business
value(1)
|
$
|
489
|
$
|
526
|
$
|
1,802
|
$
|
2,050
|
Asia APE
sales
|
$
|
996
|
$
|
975
|
$
|
3,869
|
$
|
4,278
|
Canada APE
sales
|
$
|
245
|
$
|
271
|
$
|
1,148
|
$
|
1,057
|
U.S. APE
sales
|
$
|
178
|
$
|
249
|
$
|
609
|
$
|
702
|
Total APE
sales(1)
|
$
|
1,419
|
$
|
1,495
|
$
|
5,626
|
$
|
6,037
|
Global Wealth and Asset
Management net flows ($ billions)(1)
|
$
|
2.8
|
$
|
4.9
|
$
|
8.9
|
$
|
(0.9)
|
Global Wealth and Asset
Management gross flows ($ billions)(1)
|
$
|
31.5
|
$
|
32.9
|
$
|
130.2
|
$
|
114.2
|
Global Wealth and
Asset Management assets under management
|
|
|
|
|
|
|
|
|
and
administration ($ billions)(1)
|
$
|
753.6
|
$
|
681.4
|
$
|
753.6
|
$
|
681.4
|
Financial
Strength:
|
|
|
|
|
|
|
|
|
MLI's LICAT
ratio
|
|
149%
|
|
140%
|
|
149%
|
|
140%
|
Financial leverage
ratio
|
|
26.6%
|
|
25.1%
|
|
26.6%
|
|
25.1%
|
Book value per common
share ($)
|
$
|
25.00
|
$
|
23.25
|
$
|
25.00
|
$
|
23.25
|
Book value per common
share excluding AOCI ($)
|
$
|
21.74
|
$
|
19.94
|
$
|
21.74
|
$
|
19.94
|
(1) This
item is a non-GAAP measure. See "Performance and Non-GAAP Measures"
below and in our 2020 MD&A for additional
information.
|
PROFITABILITY:
Reported net income attributed to shareholders of
$5.9 billion in 2020, up $0.3 billion from 2019, and $1.8 billion in 4Q20, up $0.6 billion from 4Q19
The
$0.3 billion increase in net income
attributed to shareholders was primarily due to gains from the
direct impact of interest rates in 2020, including gains from
the sale of available-for-sale bonds held in Corporate and
Other, (compared with losses in 2019, including a $0.5 billion charge related to updated Ultimate
Reinvestment Rate assumptions issued by the Canadian Actuarial
Standards Board), partially offset by losses on investment-related
experience (compared with gains in 2019, including $400 million of core investment
gains1) and losses from the direct impact of equity
markets and variable annuity guarantee liabilities (compared with
gains in 2019).
The $0.6 billion increase in net
income attributed to shareholders in 4Q20 compared with the
prior year quarter was primarily driven by higher
investment-related experience gains, gains from reinsurance
transactions compared with losses in 4Q19, and a lower charge from
the direct impact of markets.
__________________________________
|
1
|
This item is a
non-GAAP measure. See "Performance and Non-GAAP measures" below and
in our 2020 MD&A for additional information.
|
Delivered core earnings of $5.5
billion in 2020, a decrease of 9% compared with 2019, and
$1.5 billion in 4Q20, in line
with 4Q19
The decrease in core earnings in 2020 compared
with 2019 reflects the absence of core investment gains in the year
(compared with gains in the prior year), lower investment income in
Corporate and Other, less favourable impact of markets on seed
money investments in new segregated and mutual funds, and lower new
business volumes. These items were partially offset by the impact
of in-force business growth, favourable policyholder experience,
favourable new business product mix in Hong Kong and Asia
Other1, and higher average AUMA in Global Wealth
and Asset Management.
Core earnings in 4Q20 were in line with 4Q19, reflecting
the absence of core investment gains in the quarter (compared with
gains in the prior year quarter) and lower investment income in
Corporate and Other; offset by the favourable impact of
in-force business growth in Asia and the U.S., higher average
AUMA in Global Wealth and Asset Management, favourable
experience in our P&C Reinsurance business and lower general
expenses.
BUSINESS PERFORMANCE:
New business value ("NBV") of $1.8
billion in 2020, a decrease of 13% compared with 2019, and
$489 million in 4Q20, a decrease of
7% compared with 4Q19
NBV was $1.8
billion in 2020, a decrease of 13% compared with 2019. In
Asia, NBV of $1.4 billion was down
14%, driven by lower sales volumes in Hong Kong and Japan and a decline in market interest rates
in Hong Kong and Asia Other, partially offset by favourable
product mix in Asia Other. In
Canada, NBV of $255 million was up 8% from 2019, primarily due
to higher margins and higher sales in our insurance businesses. In
the U.S., NBV of $160 million was
down 27% primarily driven by lower sales volumes.
NBV was $489 million in 4Q20, a
decrease of 7% compared with 4Q19. In Asia, NBV of $368 million was down 5% due to lower sales
volumes in Hong Kong and less
favourable product mix in Japan,
partially offset by higher sales and more favourable product
mix in Asia Other. In Canada, NBV of $65
million increased 10% compared with 4Q19, primarily
driven by higher margins across all business lines, partially
offset by lower volumes in small and mid-size group insurance and
individual insurance. In the U.S., NBV of $56 million was down 26%, driven primarily by
lower international universal life sales volumes.
Annualized premium equivalent ("APE") sales of $5.6 billion in 2020, a decrease of 8% compared
with 2019, and $1.4 billion in 4Q20,
a decrease of 5% compared with 4Q19
APE sales were
$5.6 billion in 2020, a decrease of
8% compared with 2019. In Asia, APE sales decreased 11% primarily
as a result of lower Japan APE sales, which decreased 30% due to
accelerated sales of corporate-owned life insurance ("COLI")
products in the first quarter of 2019 in advance of a change in tax
regulations and the adverse impact of COVID-19. Hong Kong APE sales
decreased 10% driven by the adverse impact of COVID-19 containment
measures, and lower sales to mainland Chinese visitors. Asia
Other APE sales in 2020 were in line with 2019, as growth in
mainland China and Vietnam was offset by the adverse impact of
COVID-19 in other markets. In Canada, APE sales increased 9%, primarily
driven by higher large-case group insurance sales, higher
sales in our lower risk segregated funds and higher affinity market
sales within individual insurance, partially offset by lower retail
insurance sales due to the adverse impact of COVID-19. In
the U.S., APE sales decreased 14%, as lower international universal
life, domestic protection universal life, and variable universal
life sales, more than offset higher term life and domestic indexed
universal life sales. The decline in U.S. APE sales was driven by
higher prior year domestic universal life sales in advance of
anticipated regulatory changes, as well as the unfavourable impact
of COVID-19.
APE sales were $1.4 billion in
4Q20, a decrease of 5% compared with 4Q19. In Asia, APE sales
increased 2% as growth in sales in Japan from COLI and higher Asia Other sales from Vietnam and Singapore, were partially offset by lower
sales in Hong Kong, due to the
tightening of COVID-19 containment measures. In Canada, APE sales decreased 10% primarily
driven by lower small and mid-size group insurance and individual
insurance sales due to the adverse impact of COVID-19, partially
offset by higher sales in our lower risk segregated funds. In the
U.S., APE sales decreased 28%, as international universal life
sales were unfavourably impacted by COVID-19 and domestic universal
life sales decreased compared with a strong prior year quarter,
which benefited from higher sales in advance of anticipated
regulatory changes.
Reported Global Wealth and Asset Management net inflows of
$8.9 billion in 2020, compared with
2019 net outflows of $0.9 billion,
and net inflows of $2.8 billion in
4Q20 compared with net inflows of $4.9
billion in 4Q19
Net inflows were $8.9 billion in 2020, compared with net outflows
of $0.9 billion in 2019. In Asia, net
inflows were $3.9 billion in 2020
compared with net inflows of $4.8
billion in 2019, reflecting lower retail net flows mainly in
mainland China and Hong Kong, partially offset by higher net
flows in Indonesia Retail and Hong
Kong Retirement. In Canada, net inflows were $14.6 billion in 2020 compared with net outflows
of $3.6 billion in 2019, driven by
improved net inflows in Institutional Asset Management, from the
non-recurrence of an $8.5 billion
redemption in 2019 and the funding of a $6.9
billion mandate from a new client in the second quarter of
2020, and in Retirement, from lower plan redemptions and individual
withdrawals. In the U.S., net outflows were $9.6 billion in 2020 compared with net
outflows of $2.0 billion
in 2019, driven by a $5.0
billion redemption of an equity mandate and the
non-recurrence of several large sales in Institutional Asset
Management in 2019, as well as higher redemptions in Retirement,
mainly due to member withdrawals under the U.S. CARES Act during
the year.
_____________________________________________
|
1
|
Asia Other excludes
Hong Kong and Japan.
|
Net inflows were $2.8 billion in
4Q20 compared with net inflows of $4.9
billion in 4Q19. Net inflows in Asia were $2.2
billion in 4Q20 compared with net inflows of $0.2 billion in 4Q19, driven by lower redemptions
in Institutional Asset Management and higher gross flows of retail
money market funds in Indonesia.
Net inflows in Canada were
$2.2 billion in 4Q20 compared with
net inflows of $1.0 billion in 4Q19,
driven by lower plan redemptions in Retirement and higher gross
flows1 across the product line-up in Retail. Net
outflows in the U.S. were $1.6
billion in 4Q20 compared with net inflows of $3.7 billion in 4Q19, driven by higher
redemptions across all business lines and lower new plan sales in
Retirement and the non-recurrence of several large sales in
Institutional Asset Management in 4Q19, partially offset by
higher net inflows in Retail from strong intermediary sales.
____________________________________
|
1
|
This item is a
non-GAAP measure. See "Performance and Non-GAAP measures" below and
in our 2020 MD&A for additional information.
|
QUARTERLY EARNINGS RESULTS CONFERENCE CALL
Manulife Financial Corporation will host a Fourth Quarter and
Year End 2020 Earnings Results Conference Call at 8:00 a.m. ET on February
11, 2021. For local and international locations, please call
416-340-2217 or toll free, North
America 1-800-806-5484 (Passcode: 6747325#). Please call in
15 minutes before the call starts. You will be required to provide
your name and organization to the operator. A replay of this call
will be available by 11:00 a.m. ET on
February 11, 2021 through
May 14, 2021 by calling 905-694-9451
or 1-800-408-3053 (Passcode: 1451526#).
The conference call will also be webcast through Manulife's
website at 8:00 a.m. ET on
February 11, 2021. You may access the
webcast at: manulife.com/en/investors/results-and-reports. An
archived version of the webcast will be available on the website
following the call at the same URL as above.
The Fourth Quarter 2020 Statistical Information Package is also
available on the Manulife website
at: www.manulife.com/en/investors/results-and-reports.
EARNINGS:
The following table reconciles core earnings to net income
attributed to shareholders:
|
Quarterly Results
|
Full Year
Results
|
($
millions)
|
4Q20
|
3Q20
|
4Q19
|
2020
|
2019
|
Core
earnings(1)
|
|
|
|
|
|
Global Wealth and
Asset Management
|
$
|
304
|
$
|
308
|
$
|
265
|
$
|
1,100
|
$
|
1,021
|
Asia
|
571
|
559
|
494
|
2,110
|
2,005
|
Canada
|
316
|
279
|
288
|
1,174
|
1,201
|
U.S.
|
479
|
498
|
489
|
1,995
|
1,876
|
Corporate and Other
(excluding core investment gains)
|
(196)
|
(191)
|
(159)
|
(863)
|
(499)
|
Core investment
gains(1)
|
-
|
-
|
100
|
-
|
400
|
Total core
earnings
|
$
|
1,474
|
$
|
1,453
|
$
|
1,477
|
$
|
5,516
|
$
|
6,004
|
Items excluded
from core earnings:
Investment-related
experience outside of core earnings
|
585
|
147
|
182
|
(792)
|
366
|
Direct impact of
equity markets and interest rates and
|
|
|
|
|
|
variable annuity
guarantee liabilities
|
(323)
|
390
|
(389)
|
932
|
(778)
|
Change in actuarial
methods and assumptions
|
-
|
(198)
|
-
|
(198)
|
(21)
|
Reinsurance
transactions
|
44
|
276
|
(34)
|
341
|
81
|
Tax-related items and
other
|
-
|
-
|
(8)
|
72
|
(50)
|
Net income
attributed to shareholders
|
$
|
1,780
|
$
|
2,068
|
$
|
1,228
|
$
|
5,871
|
$
|
5,602
|
(1) This
item is a non-GAAP measure. See "Performance and Non-GAAP Measures"
below and in our 2020 MD&A for additional
information.
|
PERFORMANCE AND NON-GAAP MEASURES:
We use a number of non-GAAP financial measures to measure
overall performance and to assess each of our businesses. A
financial measure is considered a non-GAAP measure if it is
presented other than in accordance with generally accepted
accounting principles used for the Company's audited financial
statements. Non-GAAP measures referenced in this news release
include: core earnings; core ROE; diluted core earnings per common
share; core investment gains; core general expenses; expense
efficiency ratio; APE sales; new business value; gross flows; net
flows; assets under management and administration; average assets
under management and administration ("average AUMA"); and constant
exchange rate basis (measures that are reported on a constant
exchange rate basis include percentage growth/decline in core
earnings, core general expenses, APE sales, new business value, and
gross flows). Non-GAAP financial measures are not defined terms
under GAAP and, therefore, are unlikely to be comparable to similar
terms used 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 "Performance and Non-GAAP Measures" in our 2020 MD&A.
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 expense
efficiency target, 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", "outlook", "expect", "intend", "estimate", "anticipate",
"believe", "plan", "forecast", "objective", "seek", "aim",
"continue", "goal", and "restore" (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, currency rates, investment
losses and defaults, market liquidity and creditworthiness of
guarantors, reinsurers and counterparties); the severity, duration
and spread of the COVID-19 outbreak, as well as actions that have
been or may be taken by governmental authorities to contain
COVID-19 or to treat its impact; 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 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 as available-for-sale; 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; 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; 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 in our 2020 Management's
Discussion and Analysis under "Risk Factors and Risk Management"
and "Critical Actuarial and Accounting Policies" and in the "Risk
Management" note to the Consolidated Financial Statements for the
year ended December 31, 2020 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 Manulife Financial Corporation