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