Manulife reports strong topline results in 2Q23 with APE sales up 12%, NBV up 10%, new business CSM of $592 million up 15% and Global Wealth and Asset Management net inflows of $2.2 billion. Net income attributed to shareholders was $1.0 billion in 2Q23 and core earnings were $1.6 billion with strong EPS and core EPS growth
- Net income attributed to shareholders increased by $0.9 billion compared to the second quarter of 2022.
- Core earnings were $1.6 billion, up 4% on a constant exchange rate basis.
- APE sales increased by 12% to $1.6 billion.
- NBV increased by 10% to $585 million.
- The company's LICAT ratio is 136%.
- None.
C$ unless otherwise stated TSX/NYSE/PSE: MFC SEHK: 945
This earnings news release for Manulife Financial Corporation ("Manulife" or the "Company") should be read in conjunction with the Company's Second Quarter 2023 Report to Shareholders, including our unaudited interim Consolidated Financial Statements for the three and six months ended June 30, 2023, prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), which are both available on our website at www.manulife.com/en/investors/results-and-reports. The Company's Management's Discussion & Analysis ("MD&A") and additional information relating to the Company is available on the SEDAR+ website at http://www.sedarplus.com and on the |
- Net income attributed to shareholders of
$1.0 billion $0.9 billion $3.1 billion - Core earnings1 of
$1.6 billion 4% on a constant exchange rate basis2 from 2Q22 - Core EPS3 of
$0.83 6% 2 compared with 2Q22, and diluted earnings per common share ("EPS") of$0.50 $0.44 $0.06 $1.63 $1.13 - Core ROE3 of
15.5% and ROE of9.3% in 2Q23 - APE sales4 of
$1.6 billion 12% 4 from 2Q22 - NBV4 of
$585 million 10% from 2Q22 - New business contractual service margin ("CSM")5 of
$592 million 15% 2 from 2Q22 - CSM balance net of NCI of
$17.4 billion $14.9 billion $140 million $218 million - Global Wealth and Asset Management ("Global WAM") net inflows6 of
$2.2 billion $1.7 billion - LICAT ratio7 of
136% - Purchased for cancellation
0.9% of common shares outstanding, or approximately 17.3 million common shares, for$443 million - Adjusted book value per common share8 of
$29.42 $21.30 $1.36 $0.68
"We are pleased to report strong topline performance during the second quarter including double-digit year-over-year growth in new business metrics9 from our global insurance business, particularly with new business CSM growing at our medium-term target of
"We delivered solid operating results in 2Q23, including core earnings of
Colin
To continue helping our customers live longer, healthier, better lives, we:
- launched enhanced healthcare coverage in
Hong Kong to better address the growing demand for health and protection services. Customers can now use our expanded hospital network covering over 3,000 hospitals across mainlandChina . We are the first life insurer in the market to cover all Grade III public hospitals; - continued to expand our behavioural insurance program in
Canada by making Manulife Vitality available on new Manulife Par individual insurance policies; and - deepened our collaboration with ŌURA to offer John Hancock Vitality members discounts on ŌURA rings and the ability to earn points for healthy sleep habits and mindfulness.
We remain committed to our Environmental, Social and Governance ("ESG") strategy:
- We strengthened our commitment to reducing emissions by disclosing science-based11 targets, including an increased ambition to reduce absolute scope 1 and 2 emissions
40% by 2035, and a combination of sector-specific and asset-class specific interim targets to reduce the General Account's financed emissions as outlined in our 2022 ESG Report published in May 2023.12 Currently, Manulife's owned timberland and agriculture properties remove more carbon from the atmosphere than emitted in our operations; - We announced the launch of our industry-first ESG themed funds in Manulife Mandatory Provident Fund ("MPF") in
Hong Kong Retirement. This makes our flagship MPF scheme the first in the MPF market to provide both sustainable equity and fixed income investment options; and - Manulife was named one of Corporate Knights' Best 50 Corporate Citizens in
Canada for the third consecutive year.
We continue to make progress on our digital journey:
- In Global WAM, we announced a new partnership with Envestnet in
Canada Retail that will provide advisors with a leading-edge portfolio management platform to deliver a better client experience and improve advisor productivity. The Envestnet platform is a market tested portfolio management solution which will give advisors access to advanced trading and modelling capabilities, streamlined workflows and automated tasks, more robust and client-friendly reporting, and the ability to manage accounts in a unified structure. These benefits will enable advisors to increase their efficiency and focus on their client relationships and business growth. This partnership signifies another successful step in our digital transformation journey as a leader of advice inCanada ; - In
Asia , we continued to drive utilization of connected agent profiles in Manulife Shop, our proprietary online channel inthe Philippines , to enable us to enhance customer experience, fulfill a wider range of customer needs, and improve agent activity and productivity. In 2Q23, this contributed to a16% increase quarter-over-quarter in organic lead submissions through the channel. We plan to roll out connected agent profiles to additional markets in the second half of 2023; - In
Canada , we reduced our call transfer rates by nearly half compared with 2Q22 in our Group Benefits contact centre, by leveraging Amazon AWS Connect, which contributed to a14% improvement in the contact centre's transactional NPS. We continue to expand the use of this technology, which enables a more holistic digital customer experience and drives operational efficiency; and - In the
U.S. , we received recognition from LIBRA Insurance Partners, the largest independently owned life insurance marketing organization in theU.S. 13, as one of the carriers who provide a best-in-class experience on an electronic platform for permanent life insurance products. We also eliminated over 3 million pieces of paper by completing our first e-delivery of life insurance policy prospectuses.
________________________________________ | |
1 | Transitional net income attributed to shareholders, core earnings and post-tax CSM net of NCI ("post-tax CSM") 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 2Q23 MD&A. |
2 | Percentage growth / declines in core earnings, diluted core earnings per common share ("core EPS") and new business CSM stated on a constant exchange rate basis are non-GAAP ratios. |
3 | Core EPS, transitional EPS and core return on common shareholders' equity ("Core ROE") are non-GAAP ratios. |
4 | For more information on annualized premium equivalent ("APE") sales and new business value ("NBV"), see "Non-GAAP and other financial measures" below. In this news release, percentage growth / declines in NBV and APE sales are stated on a constant exchange rate basis. |
5 | New business CSM is net of non-controlling interests ("NCI"). |
6 | For more information on net flows, see "Non-GAAP and other financial measures" below. |
7 | Life Insurance Capital Adequacy Test ("LICAT") ratio of The Manufacturers Life Insurance Company ("MLI"). 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. |
8 | Adjusted book value per common share and core EBITDA margin are non-GAAP ratios. |
9 | Includes APE sales, NBV and new business CSM. |
10 | As of June 30, 2023. |
11 | Targets developed in alignment with the methodology for financial institutions outlined by the Science-based Targets Initiative (SBTi), in combination with Partnership for Carbon Accounting Financials (PCAF) methodologies for emissions accounting. |
12 | See "Caution regarding forward-looking statements" below. |
13 | Based on gross annual production according to Paradigm Partners International, a third-party research firm specializing in the insurance landscape. |
Quarterly Results | YTD Results | |||||||
($ millions, unless otherwise stated) | 2Q23 | 2Q22 |
2023 | 2022 Transitional | ||||
Profitability: | ||||||||
Net income (loss) attributed to shareholders(1) | $ | 1,025 | $ | 168 | $ | 2,431 | $ | 1,493 |
Return on common shareholders' equity ("ROE")(1) | 9.3 % | 1.1 % | 11.4 % | 7.1 % | ||||
Diluted earnings (loss) per common share ($)(1) | $ | 0.50 | $ | 0.06 | $ | 1.23 | $ | 0.71 |
Quarterly Results | YTD Results | |||||||
($ millions, unless otherwise stated) | 2Q23 | 2Q22 | 2023 | 2022 | ||||
Profitability: | ||||||||
Net income (loss) attributed to shareholders | $ | 1,025 | $ | (2,119) | $ | 2,431 | $ | (3,339) |
Core earnings | $ | 1,637 | $ | 1,526 | $ | 3,168 | $ | 2,919 |
EPS ($) | $ | 0.50 | $ | (1.13) | $ | 1.23 | $ | (1.79) |
Core EPS ($) | $ | 0.83 | $ | 0.76 | $ | 1.63 | $ | 1.45 |
ROE | 9.3 % | (22.4) % | 11.4 % | (17.9) % | ||||
Core ROE | 15.5 % | 15.1 % | 15.2 % | 14.5 % | ||||
Expense efficiency ratio(2) | 45.1 % | 43.1 % | 46.1 % | 44.7 % | ||||
Expenditure efficiency ratio(2) | 51.9 % | 50.1 % | 52.9 % | 51.7 % | ||||
General expenses | $ | 1,022 | $ | 884 | $ | 2,108 | $ | 1,815 |
Core expenses(3) | $ | 1,598 | $ | 1,381 | $ | 3,203 | $ | 2,797 |
Core expenditures(3) | $ | 2,099 | $ | 1,835 | $ | 4,211 | $ | 3,707 |
Business performance: | ||||||||
Asia APE sales | $ | 1,181 | $ | 900 | $ | 2,354 | $ | 1,987 |
Canada APE sales | $ | 322 | $ | 361 | $ | 615 | $ | 724 |
$ | 130 | $ | 147 | $ | 264 | $ | 307 | |
Total APE sales | $ | 1,633 | $ | 1,408 | $ | 3,233 | $ | 3,018 |
$ | 424 | $ | 393 | $ | 796 | $ | 762 | |
$ | 106 | $ | 82 | $ | 198 | $ | 186 | |
$ | 55 | $ | 35 | $ | 100 | $ | 76 | |
Total new business value | $ | 585 | $ | 510 | $ | 1,094 | $ | 1,024 |
$ | 432 | $ | 328 | $ | 733 | $ | 645 | |
$ | 57 | $ | 47 | $ | 103 | $ | 108 | |
$ | 103 | $ | 118 | $ | 198 | $ | 230 | |
Total new business CSM | $ | 592 | $ | 493 | $ | 1,034 | $ | 983 |
$ | 9,630 | $ | 9,025 | $ | 9,630 | $ | 9,025 | |
$ | 3,656 | $ | 3,626 | $ | 3,656 | $ | 3,626 | |
$ | 4,106 | $ | 4,026 | $ | 4,106 | $ | 4,026 | |
Corporate and Other CSM | $ | 31 | $ | 34 | $ | 31 | $ | 34 |
Total CSM net of NCI | $ | 17,423 | $ | 16,711 | $ | 17,423 | $ | 16,711 |
Post-tax CSM net of NCI | $ | 14,877 | $ | 14,224 | $ | 14,877 | $ | 14,224 |
Global WAM net flows ($ billions) | $ | 2.2 | $ | 1.7 | $ | 6.6 | $ | 8.5 |
Global WAM gross flows ($ billions)(4) | $ | 35.2 | $ | 34.1 | $ | 74.0 | $ | 72.5 |
Global WAM assets under management and administration ($ billions)(3) | $ | 819.6 | $ | 746.8 | $ | 819.6 | $ | 746.8 |
Global WAM total invested assets ($ billions) | $ | 5.5 | $ | 5.7 | $ | 5.5 | $ | 5.7 |
Global WAM segregated funds net assets ($ billions) | $ | 238.7 | $ | 213.3 | $ | 238.7 | $ | 213.3 |
Financial strength: | ||||||||
MLI's LICAT ratio | 136 % | 137 % | 136 % | 137 % | ||||
Financial leverage ratio(2) | 25.8 % | 26.0 % | 25.8 % | 26.0 % | ||||
Book value per common share ($) | $ | 21.30 | $ | 20.62 | $ | 21.30 | $ | 20.62 |
Adjusted book value per common share ($) | $ | 29.42 | $ | 28.06 | $ | 29.42 | $ | 28.06 |
(1) | 2022 results for transitional net income attributed to shareholders, transitional EPS and transitional ROE, a non-GAAP ratio, are adjusted to include IFRS 9 hedge accounting and expected credit loss principles ("IFRS 9 transitional impacts"). See 2Q23 MD&A for more information. For 2023, there are no IFRS 9 transitional adjustments as ECL and hedge accounting is effective January 1, 2023 and therefore the impact is included in net income attributed to shareholders. |
(2) | This item is a non-GAAP ratio. |
(3) | This item is a non-GAAP financial measure. See "Non-GAAP and other financial measures" below and in our 2Q23 MD&A for additional information. |
(4) | For more information on gross flows, see "Non-GAAP and other financial measures" below and in our 2Q23 MD&A. |
Reported net income attributed to shareholders of
The increase in 2Q23 net income attributed to shareholders compared with 2Q22 transitional net income attributed to shareholders was primarily driven by a smaller charge from market experience and growth in core earnings. The net charge from market experience in 2Q23 was driven by lower-than-expected returns (including fair value changes) on alternative long duration assets ("ALDA") mainly related to real estate and energy as well as changes in foreign currency exchange rates, partially offset by higher-than-expected returns on public equity. Net income attributed to shareholders in 2Q23 increased by
Delivered core earnings of
The increase in core earnings compared with 2Q22 was driven by an increase in expected investment earnings related to higher investment yields and business growth, higher returns on surplus assets net of higher cost of debt financing and a smaller net charge in the provision for ECL. These were partially offset by higher workforce related costs, a charge from net unfavourable insurance experience (compared with a net gain in 2Q22) and a slower CSM amortization on certain variable fee approach ("VFA") contracts. In addition, lower core earnings in Global WAM were driven by an increase in workforce related costs and lower earnings from seed capital investments due to repatriations, partially offset by higher net fee income from increased fee spread and business mix.
Annualized premium equivalent ("APE") sales of
In
New business value ("NBV") of
In
New business CSM of
In
CSM net of NCI was
The
Reported Global WAM net inflows of
Net inflows in Retirement were
________________________________________ | |
1 | Asia Other excludes |
2 | Effective January 1, 2023, international high net worth business was reclassified from the |
Manulife Financial Corporation will host a Second Quarter 2023 Earnings Results Conference Call at 8:00 a.m. ET on August 10, 2023. For local and international locations, please call 416-340-2217 or toll free,
The conference call will also be webcast through Manulife's website at 8:00 a.m. ET on August 10, 2023. 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 Second Quarter 2023 Statistical Information Package is also available on the Manulife website at: www.manulife.com/en/investors/results-and-reports.
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.
The following table presents net income attributed to shareholders for 2Q23 and 1Q23 and transitional net income attributed to shareholders for 2Q22 and year-to-date 2022 results, consisting of core earnings and details of the items excluded from core earnings:
Quarterly Results | YTD Results | ||||
($ millions) | 2Q23 | 1Q23 | 2Q22 | 2023 | 2022 |
Core earnings | |||||
$ 473 | $ 489 | $ 450 | $ 962 | $ 929 | |
374 | 353 | 366 | 727 | 700 | |
458 | 385 | 428 | 843 | 721 | |
Global Wealth and Asset Management | 320 | 287 | 327 | 607 | 671 |
Corporate and Other | 12 | 17 | (45) | 29 | (102) |
Total core earnings | $ 1,637 | $ 1,531 | $ 1,526 | $ 3,168 | $ 2,919 |
Items excluded from core earnings: Market experience gains (losses) | (570) | (65) | (1,358) | (635) | (1,355) |
Change in actuarial methods and assumptions that flow | - | - | - | - | - |
Restructuring charge | - | - | - | - | - |
Reinsurance transactions, tax-related items and other | (42) | (60) | - | (102) | (71) |
Net income attributed to shareholders / Transitional(1) | $ 1,025 | $ 1,406 | $ 168 | $ 2,431 | $ 1,493 |
(1) | This item is a non-GAAP financial measure. |
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); pre-tax core earnings; core earnings available to common shareholders; core earnings before income taxes, depreciation and amortization ("core EBITDA"); transitional net income (loss) attributed to shareholders; common shareholders' transitional net income; adjusted book value; post-tax contractual service margin; post-tax contractual service margin net of NCI ("post-tax CSM net of NCI"); total expenses; core expenses; total expenditures; core expenditures; core revenue; and assets under management and administration ("AUMA").
Non-GAAP ratios include core return on common shareholders' equity ("core ROE"); diluted core earnings per common share ("core EPS"); transitional return on common shareholders' equity ("transitional ROE"); transitional diluted earnings per common share ("transitional diluted EPS"); expense efficiency ratio; expenditure efficiency ratio; financial leverage ratio; adjusted book value per common share; core EBITDA margin and percentage growth/decline on a constant exchange rate basis in any of the above non-GAAP financial measures and new business CSM.
Other specified financial measures include assets under administration; NBV; APE sales; gross flows; net flows; average assets under management and administration ("average AUMA") and percentage growth/decline in such other financial measures.
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 2Q23 MD&A, which is incorporated by reference.
Reconciliation of core earnings to net income attributed to shareholders
2Q23 | ||||||
($ millions, post-tax and based on actual foreign exchange | Global | Corporate | Total | |||
Income (loss) before income taxes | $ 345 | $ 312 | $ 220 | $ 362 | $ 197 | $ 1,436 |
Income tax (expense) recovery | ||||||
Core earnings | (73) | (97) | (110) | (45) | 18 | (307) |
Items excluded from core earnings | (18) | 33 | 73 | 1 | (47) | 42 |
Income tax (expense) recovery | (91) | (64) | (37) | (44) | (29) | (265) |
Net income (post-tax) | 254 | 248 | 183 | 318 | 168 | 1,171 |
Less: Net income (post-tax) attributed to | ||||||
Non-controlling interests ("NCI") | 25 | - | - | 1 | - | 26 |
Participating policyholders | 99 | 21 | - | - | - | 120 |
Net income (loss) attributed to shareholders (post-tax) | 130 | 227 | 183 | 317 | 168 | 1,025 |
Less: Items excluded from core earnings (post-tax) | ||||||
Market experience gains (losses) | (297) | (147) | (275) | (7) | 156 | (570) |
Changes in actuarial methods and assumptions that | - | - | - | - | - | - |
Restructuring charge | - | - | - | - | - | - |
Reinsurance transactions, tax related items and other | (46) | - | - | 4 | - | (42) |
Core earnings (post-tax) | $ 473 | $ 374 | $ 458 | $ 320 | $ 12 | $ 1,637 |
Income tax on core earnings (see above) | 73 | 97 | 110 | 45 | (18) | 307 |
Core earnings (pre-tax) | $ 546 | $ 471 | $ 568 | $ 365 | $ (6) | $ 1,944 |
Core earnings, CER basis
2Q23 | |||||||
(Canadian $ millions, post-tax and based on actual foreign | Global | Corporate | Total | ||||
Core earnings (post-tax) | $ 473 | $ 374 | $ 458 | $ 320 | $ 12 | $ 1,637 | |
CER adjustment(1) | - | - | - | - | - | - | |
Core earnings, CER basis (post-tax) | $ 473 | $ 374 | $ 458 | $ 320 | $ 12 | $ 1,637 | |
Income tax on core earnings, CER basis(2) | 73 | 97 | 110 | 45 | (18) | 307 | |
Core earnings, CER basis (pre-tax) | $ 546 | $ 471 | $ 568 | $ 365 | $ (6) | $ 1,944 | |
(1) | The impact of updating foreign exchange rates to that which was used in 2Q23. |
(2) | Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q23. |
Reconciliation of core earnings to net income attributed to shareholders
1Q23 | ||||||
($ millions, post-tax and based on actual foreign exchange | Global | Corporate | Total | |||
Income (loss) before income taxes | $ 613 | $ 423 | $ 219 | $ 345 | $ 119 | $ 1,719 |
Income tax (expense) recovery | ||||||
Core earnings | (68) | (85) | (86) | (45) | 14 | (270) |
Items excluded from core earnings | (37) | (14) | 53 | (3) | (38) | (39) |
Income tax (expense) recovery | (105) | (99) | (33) | (48) | (24) | (309) |
Net income (post-tax) | 508 | 324 | 186 | 297 | 95 | 1,410 |
Less: Net income (post-tax) attributed to | ||||||
Non-controlling interests ("NCI") | 54 | - | - | - | - | 54 |
Participating policyholders | (65) | 15 | - | - | - | (50) |
Net income (loss) attributed to shareholders (post-tax) | 519 | 309 | 186 | 297 | 95 | 1,406 |
Less: Items excluded from core earnings (post-tax) | ||||||
Market experience gains (losses) | 30 | (44) | (166) | 9 | 106 | (65) |
Changes in actuarial methods and assumptions that | - | - | - | - | - | - |
Restructuring charge | - | - | - | - | - | - |
Reinsurance transactions, tax related items and other | - | - | (33) | 1 | (28) | (60) |
Core earnings (post-tax) | $ 489 | $ 353 | $ 385 | $ 287 | $ 17 | $ 1,531 |
Income tax on core earnings (see above) | 68 | 85 | 86 | 45 | (14) | 270 |
Core earnings (pre-tax) | $ 557 | $ 438 | $ 471 | $ 332 | $ 3 | $ 1,801 |
Core earnings, CER basis
1Q23 | |||||||
(Canadian $ millions, post-tax and based on actual foreign | Global | Corporate | Total | ||||
Core earnings (post-tax) | $ 489 | $ 353 | $ 385 | $ 287 | $ 17 | $ 1,531 | |
CER adjustment(1) | (8) | - | (3) | (1) | - | (12) | |
Core earnings, CER basis (post-tax) | $ 481 | $ 353 | $ 382 | $ 286 | $ 17 | $ 1,519 | |
Income tax on core earnings, CER basis(2) | 67 | 85 | 85 | 45 | (14) | 268 | |
Core earnings, CER basis (pre-tax) | $ 548 | $ 438 | $ 467 | $ 331 | $ 3 | $ 1,787 | |
(1) | The impact of updating foreign exchange rates to that which was used in 2Q23. |
(2) | Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q23. |
Reconciliation of core earnings and transitional net income attributed to shareholders to net income attributed to shareholders
2Q22 | ||||||
($ millions, post-tax and based on actual foreign exchange | Global | Corporate | Total | |||
Income (loss) before income taxes | $ 49 | $ (923) | $ (1,561) | $ 170 | $ (391) | $ (2,656) |
Income tax (expense) recovery | ||||||
Core earnings | (64) | (88) | (101) | (60) | 12 | (301) |
Items excluded from core earnings | (35) | 415 | 436 | 40 | (2) | 854 |
Income tax (expense) recovery | (99) | 327 | 335 | (20) | 10 | 553 |
Net income (post-tax) | (50) | (596) | (1,226) | 150 | (381) | (2,103) |
Less: Net income (post-tax) attributed to | ||||||
Non-controlling interests | 52 | - | - | - | - | 52 |
Participating policyholders | (51) | 15 | - | - | - | (36) |
Net income (loss) attributed to shareholders (post-tax) | (51) | (611) | (1,226) | 150 | (381) | (2,119) |
IFRS 9 transitional impacts (post-tax) | (176) | 882 | 1,581 | - | - | 2,287 |
Transitional net income (loss) attributed to shareholders (post-tax) | (227) | 271 | 355 | 150 | (381) | 168 |
Less: Items excluded from core earnings (post-tax) | ||||||
Market experience gains (losses) | (677) | (95) | (73) | (177) | (336) | (1,358) |
Changes in actuarial methods and assumptions that | - | - | - | - | - | - |
Restructuring charge | - | - | - | - | - | - |
Reinsurance transactions, tax related items and other | - | - | - | - | - | - |
Core earnings (post-tax) | $ 450 | $ 366 | $ 428 | $ 327 | $ (45) | $ 1,526 |
Income tax on core earnings (see above) | 64 | 88 | 101 | 60 | (12) | 301 |
Core earnings (pre-tax) | $ 514 | $ 454 | $ 529 | $ 387 | $ (57) | $ 1,827 |
Core earnings, CER basis
2Q22 | ||||||
(Canadian $ millions, post-tax and based on actual foreign | Global | Corporate | Total | |||
Core earnings (post-tax) | $ 450 | $ 366 | $ 428 | $ 327 | $ (45) | $ 1,526 |
CER adjustment(1) | 18 | - | 22 | 12 | - | 52 |
Core earnings, CER basis (post-tax) | $ 468 | $ 366 | $ 450 | $ 339 | $ (45) | $ 1,578 |
Income tax on core earnings, CER basis(2) | 65 | 88 | 106 | 62 | (12) | 309 |
Core earnings, CER basis (pre-tax) | $ 533 | $ 454 | $ 556 | $ 401 | $ (57) | $ 1,887 |
(1) | The impact of updating foreign exchange rates to that which was used in 2Q23. |
(2) | Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q23. |
Reconciliation of core earnings to net income attributed to shareholders
YTD 2023 | ||||||
($ millions, post-tax and based on actual foreign exchange | Global | Corporate | Total | |||
Income (loss) before income taxes | $ 958 | $ 735 | $ 439 | $ 707 | $ 316 | $ 3,155 |
Income tax (expense) recovery | ||||||
Core earnings | (141) | (182) | (196) | (90) | 32 | (577) |
Items excluded from core earnings | (55) | 19 | 126 | (2) | (85) | 3 |
Income tax (expense) recovery | (196) | (163) | (70) | (92) | (53) | (574) |
Net income (post-tax) | 762 | 572 | 369 | 615 | 263 | 2,581 |
Less: Net income (post-tax) attributed to | ||||||
Non-controlling interests | 79 | - | - | 1 | - | 80 |
Participating policyholders | 34 | 36 | - | - | - | 70 |
Net income (loss) attributed to shareholders (post-tax) | 649 | 536 | 369 | 614 | 263 | 2,431 |
Less: Items excluded from core earnings (post-tax) | ||||||
Market experience gains (losses) | (267) | (191) | (441) | 2 | 262 | (635) |
Changes in actuarial methods and assumptions that | - | - | - | - | - | - |
Restructuring charge | - | - | - | - | - | - |
Reinsurance transactions, tax related items and other | (46) | - | (33) | 5 | (28) | (102) |
Core earnings (post-tax) | $ 962 | $ 727 | $ 843 | $ 607 | $ 29 | $ 3,168 |
Income tax on core earnings (see above) | 141 | 182 | 196 | 90 | (32) | 577 |
Core earnings (pre-tax) | $ 1,103 | $ 909 | $ 1,039 | $ 697 | $ (3) | $ 3,745 |
Core earnings, CER basis
YTD 2023 | ||||||
(Canadian $ millions, post-tax and based on actual foreign | Global | Corporate | Total | |||
Core earnings (post-tax) | $ 962 | $ 727 | $ 843 | $ 607 | $ 29 | $ 3,168 |
CER adjustment(1) | (8) | - | (2) | (1) | (1) | (12) |
Core earnings, CER basis (post-tax) | $ 954 | $ 727 | $ 841 | $ 606 | $ 28 | $ 3,156 |
Income tax on core earnings, CER basis(2) | 140 | 182 | 195 | 90 | (32) | 575 |
Core earnings, CER basis (pre-tax) | $ 1,094 | $ 909 | $ 1,036 | $ 696 | $ (4) | $ 3,731 |
(1) | The impact of updating foreign exchange rates to that which was used in 2Q23. |
(2) | Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q23. |
Reconciliation of core earnings and transitional net income attributed to shareholders to net income attributed to shareholders
YTD 2022 | ||||||
($ millions, post-tax and based on actual foreign exchange | Global | Corporate | Total | |||
Income (loss) before income taxes | $ 241 | $ (1,961) | $ (2,336) | $ 506 | $ (769) | $ (4,319) |
Income tax (expense) recovery | ||||||
Core earnings | (128) | (160) | (162) | (124) | 32 | (542) |
Items excluded from core earnings | (44) | 870 | 673 | 51 | (15) | 1,535 |
Income tax (expense) recovery | (172) | 710 | 511 | (73) | 17 | 993 |
Net income (post-tax) | 69 | (1,251) | (1,825) | 433 | (752) | (3,326) |
Less: Net income (post-tax) attributed to | ||||||
Non-controlling interests | 54 | - | - | - | - | 54 |
Participating policyholders | (73) | 32 | - | - | - | (41) |
Net income (loss) attributed to shareholders (post-tax) | 88 | (1,283) | (1,825) | 433 | (752) | (3,339) |
IFRS 9 transitional impacts (post-tax) | (110) | 1,880 | 3,065 | - | (3) | 4,832 |
Transitional net income (loss) attributed to | (22) | 597 | 1,240 | 433 | (755) | 1,493 |
Less: Items excluded from core earnings (post-tax) | ||||||
Market experience gains (losses) | (951) | (103) | 519 | (238) | (582) | (1,355) |
Changes in actuarial methods and assumptions that | - | - | - | - | - | - |
Restructuring charge | - | - | - | - | - | - |
Reinsurance transactions, tax related items and other | - | - | - | - | (71) | (71) |
Core earnings (post-tax) | $ 929 | $ 700 | $ 721 | $ 671 | $ (102) | $ 2,919 |
Income tax on core earnings (see above) | 127 | 160 | 162 | 124 | (32) | 541 |
Core earnings (pre-tax) | $ 1,056 | $ 860 | $ 883 | $ 795 | $ (134) | $ 3,460 |
Core earnings, CER basis
YTD 2022 | ||||||
(Canadian $ millions, post-tax and based on actual foreign | Global | Corporate | Total | |||
Core earnings (post-tax) | $ 929 | $ 700 | $ 721 | $ 671 | $ (102) | $ 2,919 |
CER adjustment(1) | 27 | - | 40 | 25 | 2 | 94 |
Core earnings, CER basis (post-tax) | $ 956 | $ 700 | $ 761 | $ 696 | $ (100) | $ 3,013 |
Income tax on core earnings, CER basis(2) | 130 | 160 | 171 | 127 | (32) | 556 |
Core earnings, CER basis (pre-tax) | $ 1,086 | $ 860 | $ 932 | $ 823 | $ (132) | $ 3,569 |
(1) | The impact of updating foreign exchange rates to that which was used in 2Q23. |
(2) | Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q23. |
Core earnings available to common shareholders
($ millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
Quarterly Results | YTD Results | Full Year | ||||||
2Q23 | 1Q23 | 4Q22 | 3Q22 | 2Q22 | 2023 | 2022 | 2022 | |
Core earnings | $ 1,637 | $ 1,531 | $ 1,543 | $ 1,339 | $ 1,526 | $ 3,168 | $ 2,919 | $ 5,801 |
Less: Preferred share dividends | (98) | (52) | (97) | (51) | (60) | (150) | (112) | (260) |
Core earnings available to common | 1,539 | 1,479 | 1,446 | 1,288 | 1,466 | 3,018 | 2,807 | 5,541 |
CER adjustment(1) | - | (12) | (4) | 27 | 52 | (12) | 94 | 117 |
Core earnings available to common | $ 1,539 | $ 1,467 | $ 1,442 | $ 1,315 | $ 1,518 | $ 3,006 | $ 2,901 | $ 5,658 |
(1) | The impact of updating foreign exchange rates to that which was used in 2Q23. |
Core ROE
($ millions, unless otherwise stated)
Quarterly Results | YTD Results | Full Year | ||||||
2Q23 | 1Q23 | 4Q22 | 3Q22 | 2Q22 | 2023 | 2022 | 2022 | |
Core earnings available to common | $ 1,539 | $ 1,479 | $ 1,446 | $ 1,288 | $ 1,466 | $ 3,018 | $ 2,807 | $ 5,541 |
Annualized core earnings available | $ 6,173 | $ 5,998 | $ 5,737 | $ 5,110 | $ 5,880 | $ 6,086 | $ 5,661 | $ 5,541 |
Average common shareholders' | $ 39,881 | $ 40,465 | $ 40,667 | $ 40,260 | $ 39,095 | $ 40,173 | $ 38,988 | $ 39,726 |
Core ROE (annualized) (%) | 15.5 % | 14.8 % | 14.1 % | 12.7 % | 15.1 % | 15.2 % | 14.5 % | 14.0 % |
Average common shareholders' equity | ||||||||
Total shareholders' and other equity | $ 45,707 | $ 47,375 | $ 46,876 | $ 47,778 | $ 46,061 | $ 45,707 | $ 46,061 | $ 46,876 |
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 | $ 39,047 | $ 40,715 | $ 40,216 | $ 41,118 | $ 39,401 | $ 39,047 | $ 39,401 | $ 40,216 |
Average common shareholders' | $ 39,881 | $ 40,465 | $ 40,667 | $ 40,260 | $ 39,095 | $ 40,173 | $ 38,988 | $ 39,726 |
Transitional ROE
($ millions, unless otherwise stated)
Quarterly Results | YTD | Full Year | ||||
4Q22 | 3Q22 | 2Q22 | 1Q22 | 2022 | 2022 | |
Total transitional net income (loss) attributed to | $ 1,228 | $ 777 | $ 168 | $ 1,325 | $ 1,493 | $ 3,498 |
Preferred share dividends and other equity distributions | (97) | (51) | (60) | (52) | (112) | (260) |
Common shareholders transitional net income (loss) | $ 1,131 | $ 726 | $ 108 | $ 1,273 | $ 1,381 | $ 3,238 |
Annualized common shareholders transitional net income | $ 4,487 | $ 2,876 | $ 437 | $ 5,163 | $ 2,785 | $ 3,238 |
Average common shareholders' equity (see below) | $ 40,667 | $ 40,260 | $ 39,095 | $ 38,988 | $ 39,726 | |
Transitional ROE (annualized) (%) | 11.0 % | 7.1 % | 1.1 % | 13.3 % | 7.1 % | 8.2 % |
Post-tax CSM
($ millions and based on actual foreign exchange rates in effect in the applicable reporting period)
As at | Jun 30, | Mar 31, | Dec 31, | Sept 30, | Jun 30, |
Post-tax CSM | |||||
CSM | $ 18,103 | $ 18,200 | $ 17,977 | $ 17,798 | $ 17,452 |
Marginal tax rate on CSM | (2,645) | (2,724) | (2,726) | (2,632) | (2,595) |
Post-tax CSM | $ 15,458 | $ 15,476 | $ 15,251 | $ 15,166 | $ 14,857 |
CSM, net of NCI | $ 17,423 | $ 17,467 | $ 17,283 | $ 17,086 | $ 16,711 |
Marginal tax rate on CSM net of NCI | (2,546) | (2,617) | (2,624) | (2,526) | (2,487) |
Post-tax CSM net of NCI | $ 14,877 | $ 14,850 | $ 14,659 | $ 14,560 | $ 14,224 |
New business CSM 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 | ||||||
2Q23 | 1Q23 | 4Q22 | 3Q22 | 2Q22 | 2023 | 2022 | 2022 | |
New business CSM, net of NCI | ||||||||
$ 191 | $ 119 | $ 110 | $ 127 | $ 94 | $ 310 | $ 200 | $ 437 | |
19 | 36 | 28 | 37 | 38 | 55 | 75 | 140 | |
Asia Other | 222 | 146 | 186 | 176 | 196 | 368 | 370 | 732 |
International High Net Worth | 197 | |||||||
Mainland | 12 | |||||||
189 | ||||||||
305 | ||||||||
Other Emerging Markets | 29 | |||||||
432 | 301 | 324 | 340 | 328 | 733 | 645 | 1,309 | |
57 | 46 | 47 | 44 | 47 | 103 | 108 | 199 | |
103 | 95 | 71 | 86 | 118 | 198 | 230 | 387 | |
Total new business CSM net of NCI | 592 | 442 | 442 | 470 | 493 | 1,034 | 983 | 1,895 |
Asia NCI | 38 | 19 | - | 2 | 1 | 57 | 18 | 20 |
Total impact of new insurance business in CSM | $ 630 | $ 461 | $ 442 | $ 472 | $ 494 | $ 1,915 | ||
New business CSM, net of NCI, CER adjustment(1) | ||||||||
$ - | $ (1) | $ (1) | $ 3 | $ 5 | $ (1) | $ 12 | $ 14 | |
- | (1) | 1 | 2 | (1) | (1) | (4) | (3) | |
Asia Other | - | (2) | 2 | 7 | 11 | (2) | 15 | 25 |
International High Net Worth | 5 | |||||||
Mainland | - | |||||||
12 | ||||||||
8 | ||||||||
Other Emerging Markets | - | |||||||
- | (4) | 2 | 12 | 15 | (4) | 23 | 36 | |
- | - | - | - | (1) | - | - | - | |
- | - | (1) | 3 | 6 | - | 13 | 15 | |
Total new business CSM net of NCI | - | (4) | 1 | 15 | 20 | (4) | 36 | 51 |
Asia NCI | - | (1) | (1) | (1) | 1 | (1) | (1) | (1) |
Total impact of new insurance business in CSM | $ - | $ (5) | $ - | $ 14 | $ 21 | $ (5) | $ 35 | $ 50 |
New business CSM net of NCI, CER basis | ||||||||
$ 191 | $ 118 | $ 109 | $ 130 | $ 99 | $ 309 | $ 212 | $ 451 | |
19 | 35 | 29 | 39 | 37 | 54 | 71 | 137 | |
Asia Other | 222 | 144 | 188 | 183 | 207 | 366 | 385 | 757 |
International High Net Worth | 202 | |||||||
Mainland | 12 | |||||||
201 | ||||||||
313 | ||||||||
Other Emerging Markets | 29 | |||||||
432 | 297 | 326 | 352 | 343 | 729 | 668 | 1,345 | |
57 | 46 | 47 | 44 | 46 | 103 | 108 | 199 | |
103 | 95 | 70 | 89 | 124 | 198 | 243 | 402 | |
Total new business CSM net of NCI, CER basis | 592 | 438 | 443 | 485 | 513 | 1,030 | 1,019 | 1,946 |
Asia NCI, CER basis | 38 | 18 | (1) | 1 | 2 | 56 | 17 | 19 |
Total impact of new insurance business in | $ 630 | $ 456 | $ 442 | $ 486 | $ 515 | $ 1,965 | ||
(1) | The impact of updating foreign exchange rates to that which was used in 2Q23. |
Adjusted book value
As at ($ millions) | June 30, | Mar 31, | Dec 31, | Sept 30, | June 30, |
Common shareholders' equity | $ 39,047 | $ 40,715 | $ 40,216 | $ 41,118 | $ 39,401 |
Post tax CSM, net of NCI | 14,877 | 14,850 | 14,659 | 14,560 | 14,224 |
Adjusted book value | $ 53,924 | $ 55,565 | $ 54,875 | $ 55,678 | $ 53,625 |
Global WAM AUMA reconciliation
($ millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
As at | June 30, | Mar 31, | Dec 31, | Sept 30, | June 30, |
Total invested assets | $ 403,428 | $ 412,476 | $ 400,142 | $ 396,583 | $ 391,098 |
Less: Non Global WAM total invested assets | 397,964 | 406,911 | 394,390 | 390,997 | 385,400 |
Total invested assets – Global WAM | 5,464 | 5,565 | 5,752 | 5,586 | 5,698 |
Total segregated funds net assets | $ 365,981 | $ 364,044 | $ 348,563 | $ 335,245 | $ 334,903 |
Less: Non Global WAM total segregated funds net assets | 127,304 | 128,466 | 124,372 | 120,776 | 121,624 |
Total invested assets – Global WAM | 238,677 | 235,578 | 224,191 | 214,469 | 213,279 |
Global WAM total invested assets and net segregated funds | $ 244,141 | $ 241,143 | $ 229,943 | $ 220,055 | $ 218,977 |
Global WAM AUMA | |||||
Total invested assets | $ 5,464 | $ 5,565 | $ 5,752 | $ 5,586 | $ 5,698 |
Segregated funds net assets | |||||
Segregated funds net assets - Institutional | 3,564 | 3,718 | 3,719 | 4,118 | 4,098 |
Segregated funds net assets - Other | 235,113 | 231,860 | 220,472 | 210,351 | 209,181 |
Total | 238,677 | 235,578 | 224,191 | 214,469 | 213,279 |
Mutual funds | 267,835 | 267,767 | 258,273 | 249,591 | 250,517 |
Institutional asset management(1) | 112,491 | 113,781 | 109,739 | 100,474 | 96,997 |
Other funds | 14,674 | 14,302 | 13,617 | 12,910 | 15,075 |
Total Global WAM AUM | 639,141 | 636,993 | 611,572 | 583,030 | 581,566 |
Assets under administration | 180,430 | 177,510 | 170,768 | 168,316 | 165,197 |
Total Global WAM AUMA | $ 819,571 | $ 814,503 | $ 782,340 | $ 751,346 | $ 746,763 |
Total Global WAM AUMA | $ 819,571 | $ 814,503 | $ 782,340 | $ 751,346 | $ 746,763 |
CER adjustment(2) | - | (15,583) | (15,342) | (19,868) | 12,252 |
Total Global WAM AUMA, CER basis | $ 819,571 | $ 798,920 | $ 766,998 | $ 731,478 | $ 759,015 |
(1) | Institutional asset management excludes Institutional segregated funds net assets. |
(2) | The impact of updating foreign exchange rates to that which was used in 2Q23. |
Core expenses
($ millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
Quarterly Results | YTD Results | Full Year | ||||||
2Q23 | 1Q23 | 4Q22 | 3Q22 | 2Q22 | 2023 | 2022 | 2022 | |
Core expenses | ||||||||
General expenses - Statements of Income | $ 914 | $ 884 | $ 3,731 | |||||
Directly attributable acquisition expense for | 35 | 33 | 15 | 17 | 15 | 68 | 26 | 58 |
Directly attributable maintenance expense(1) | 550 | 546 | 577 | 497 | 483 | 1,096 | 965 | 2,039 |
Total expenses | 1,607 | 1,665 | 1,594 | 1,428 | 1,382 | 3,272 | 2,806 | 5,828 |
Less: General expenses included in items excluded | ||||||||
Restructuring charge | - | - | - | - | - | - | - | - |
Integration and acquisition | - | - | 18 | - | - | - | 8 | 26 |
Legal provisions and Other expenses | 9 | 60 | - | 39 | 1 | 69 | 1 | 40 |
Total | 9 | 60 | 18 | 39 | 1 | 69 | 9 | 66 |
Core expenses | $ 5,762 | |||||||
CER adjustment(2) | - | (11) | (3) | 25 | 36 | (11) | 72 | 94 |
Core expenses, CER basis | $ 5,856 | |||||||
Total expenses | $ 5,828 | |||||||
CER adjustment(2) | - | (10) | (3) | 27 | 35 | (10) | 71 | 95 |
Total expenses, CER basis | $ 5,923 | |||||||
(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 2Q23. |
Core expenditures
($ millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
Quarterly Results | YTD Results | Full Year | ||||||
2Q23 | 1Q23 | 4Q22 | 3Q22 | 2Q22 | 2023 | 2022 | 2022 | |
Core expenditures | ||||||||
Total expenses | $ 5,828 | |||||||
Directly attributable acquisition expenses | 501 | 507 | 532 | 467 | 454 | 1,008 | 910 | 1,909 |
Total expenditures | 2,108 | 2,172 | 2,126 | 1,895 | 1,836 | 4,280 | 3,716 | 7,737 |
Less: General expenses included in items excluded | 9 | 60 | 18 | 39 | 1 | 69 | 9 | 66 |
Core expenditures | $ 7,671 | |||||||
CER adjustment(2) | - | (17) | (3) | 39 | 47 | (17) | 86 | 122 |
Core expenditures, CER basis | $ 7,793 | |||||||
Total expenditures | $ 7,737 | |||||||
CER adjustment(2) | - | (17) | (3) | 40 | 46 | (17) | 86 | 124 |
Total expenditures, CER basis | $ 7,861 | |||||||
(1) | Expenses are components of insurance service expenses on the Statements of Income and are then capitalized to CSM. |
(2) | The impact of updating foreign exchange rates to that which was used in 2Q23. |
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 | ||||||
2Q23 | 1Q23 | 4Q22 | 3Q22 | 2Q22 | 2023 | 2022 | 2022 | |
Global WAM core earnings (post-tax) | $ 320 | $ 287 | $ 274 | $ 354 | $ 327 | $ 607 | $ 671 | $ 1,299 |
Addback taxes, acquisition costs, other expenses and | ||||||||
Core income tax (expense) recovery (see above) | 45 | 45 | 47 | 51 | 60 | 90 | 124 | 222 |
Amortization of deferred acquisition costs and | 40 | 40 | 43 | 36 | 37 | 80 | 75 | 154 |
Amortization of deferred sales commissions | 19 | 21 | 25 | 24 | 24 | 40 | 49 | 98 |
Core EBITDA | $ 424 | $ 393 | $ 389 | $ 465 | $ 448 | $ 817 | $ 919 | $ 1,773 |
CER adjustment(1) | - | (2) | (3) | 10 | 15 | (2) | 32 | 39 |
Core EBITDA, CER basis | $ 424 | $ 391 | $ 386 | $ 475 | $ 463 | $ 815 | $ 951 | $ 1,812 |
(1) | The impact of updating foreign exchange rates to that which was used in 2Q23. |
Core EBITDA margin and core revenue
Quarterly Results | YTD Results | Full Year | ||||||
($ millions, unless otherwise stated) | 2Q23 | 1Q23 | 4Q22 | 3Q22 | 2Q22 | 2023 | 2022 | 2022 |
Core EBITDA margin | ||||||||
Core EBITDA | $ 424 | $ 393 | $ 389 | $ 465 | $ 448 | $ 817 | $ 919 | $ 1,773 |
Core revenue | $ 6,516 | |||||||
Core EBITDA margin | 24.6 % | 22.4 % | 23.6 % | 28.9 % | 28.1 % | 23.5 % | 28.2 % | 27.2 % |
Global WAM core revenue | ||||||||
Other revenue per financial statements | $ 6,186 | |||||||
Less: Other revenue in segments other than Global | 44 | 26 | 26 | (9) | (106) | 70 | (222) | (205) |
Other revenue in Global WAM (fee income) | $ 6,391 | |||||||
Investment income per financial statements | $ 15,204 | |||||||
Realized and unrealized gains (losses) on assets | 950 | 1,944 | (2,453) | (1,112) | (5,685) | 2,894 | (10,081) | (13,646) |
Total investment income | 5,085 | 5,464 | 1,818 | 2,720 | (2,154) | 10,549 | (2,980) | 1,558 |
Less: Investment income in segments other than | 5,010 | 5,357 | 1,672 | 2,748 | (1,981) | 10,367 | (2,761) | 1,659 |
Investment income in Global WAM | $ 75 | $ 107 | $ 146 | $ (28) | $ (173) | $ 182 | $ (219) | $ (101) |
Total Other revenue and investment income in Global | $ 6,290 | |||||||
Less: Total revenue reported in items excluded from | ||||||||
Market experience gains (losses) | 7 | 12 | 55 | (82) | (217) | 19 | (289) | (316) |
Revenue related to integration and acquisitions | (7) | 4 | 90 | - | - | (3) | - | 90 |
Global WAM core revenue | $ 6,516 | |||||||
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
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, our journey to net zero, 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, 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
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
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