This earnings news release for Manulife Financial Corporation ("Manulife" or the "Company") should be read in conjunction with the Company's Third Quarter 2022 Report to Shareholders, including our unaudited interim Consolidated Financial Statements for the three and nine months ended September 30, 2022, prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), which are available on our website at www.manulife.com/en/investors/results-and-reports. The MD&A and additional information relating to the Company is available on the SEDAR website at http://www.sedar.com and on the U.S. Securities and Exchange Commission's ("SEC") website at http://www.sec.gov.
|
◾ |
Net income attributed to shareholders of $1.3 billion in 3Q22, down $0.2 billion from the third quarter of 2021 ("3Q21")
|
◾ |
Core earnings1 of $1.3 billion in 3Q22, down 14% on a constant exchange rate basis from 3Q212. 3Q22 core earnings include a $256 million charge in our Property and Casualty ("P&C") reinsurance business related to Hurricane Ian.
|
◾ |
LICAT ratio3 of 136%
|
◾ |
Core ROE4 of 10.3% and ROE of 10.5% in 3Q22
|
◾ |
NBV5 of $514 million in 3Q22, down 6%5 from 3Q21
|
◾ |
APE sales5 of $1.3 billion in 3Q22, down 6% from 3Q21
|
◾ |
Global Wealth and Asset Management ("Global WAM") net inflows5 of $3.0 billion in 3Q22, compared with net inflows of $9.8 billion in 3Q21
|
◾ |
The impact to net income attributed to shareholders of our annual review of actuarial methods and assumptions was a modest net gain of $36 million in total, and approximately net neutral for long-term care ("LTC")
|
◾ |
Purchased for cancellation approximately 23 million common shares in 3Q22 for $0.5 billion
|
1 |
Core earnings is a non-GAAP financial measure. For more information on non-GAAP and other financial measures, see "Non-GAAP and other financial measures" below and in our Third Quarter 2022 Management's Discussion and Analysis ("3Q22 MD&A") for additional information.
|
2 |
Percentage growth / declines in core earnings stated on a constant exchange rate basis is a non-GAAP ratio.
|
3 |
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.
|
4 |
Core return on common shareholders' equity ("Core ROE") and core EBITDA margin are non-GAAP ratios.
|
5 |
For more information on new business value ("NBV"), annualized premium equivalent ("APE") sales and net flows, 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.
|
1 |
As of October 31, 2022 the Company has purchased for cancellation approximately 60 million common shares for $1.4 billion.
|
Quarterly Results
|
YTD Results
| |||||||||||||||
($ millions, unless otherwise stated)
|
3Q22
|
3Q21
|
2022
|
2021
| ||||||||||||
Profitability:
| ||||||||||||||||
Net income attributed to shareholders
|
$
|
1,347
|
$
|
1,592
|
$
|
5,403
|
$
|
5,021
| ||||||||
Core earnings
|
$
|
1,322
|
$
|
1,517
|
$
|
4,436
|
$
|
4,828
| ||||||||
Diluted earnings per common share ($)
|
$
|
0.68
|
$
|
0.80
|
$
|
2.72
|
$
|
2.51
| ||||||||
Diluted core earnings per common share ("Core EPS") ($)(1) |
$
|
0.67
|
$
|
0.76
|
$
|
2.22
|
$
|
2.41
| ||||||||
Return on common shareholders' equity ("ROE")
|
10.5
|
%
|
12.6
|
%
|
14.0
|
%
|
13.7
|
%
| ||||||||
Core ROE
|
10.3
|
%
|
12.0
|
%
|
11.4
|
%
|
13.2
|
%
| ||||||||
Expense efficiency ratio(1) |
53.9
|
%
|
51.3
|
%
|
51.0
|
%
|
48.9
|
%
| ||||||||
General expenses
|
$
|
1,900
|
$
|
1,904
|
$
|
5,641
|
$
|
5,828
| ||||||||
Business Performance:
| ||||||||||||||||
Asia new business value
|
$
|
333
|
$
|
399
|
$
|
1,010
|
$
|
1,275
| ||||||||
Canada new business value
|
$
|
89
|
$
|
71
|
$
|
275
|
$
|
225
| ||||||||
U.S. new business value
|
$
|
92
|
$
|
69
|
$
|
253
|
$
|
188
| ||||||||
Total new business value
|
$
|
514
|
$
|
539
|
$
|
1,538
|
$
|
1,688
| ||||||||
Asia APE sales
|
$
|
854
|
$
|
930
|
$
|
2,740
|
$
|
3,160
| ||||||||
Canada APE sales
|
$
|
285
|
$
|
303
|
$
|
1,009
|
$
|
932
| ||||||||
U.S. APE sales
|
$
|
207
|
$
|
203
|
$
|
615
|
$
|
544
| ||||||||
Total APE sales
|
$
|
1,346
|
$
|
1,436
|
$
|
4,364
|
$
|
4,636
| ||||||||
Global WAM net flows ($ billions)
|
$
|
3.0
|
$
|
9.8
|
$
|
11.6
|
$
|
19.8
| ||||||||
Global WAM gross flows ($ billions)(2) |
$
|
32.0
|
$
|
35.2
|
$
|
104.1
|
$
|
108.7
| ||||||||
Global WAM assets under management and administration ($ billions)(3) |
$
|
748.8
|
$
|
823.6
|
$
|
748.8
|
$
|
823.6
| ||||||||
Global WAM total invested assets ($ billions)
|
$
|
3.7
|
$
|
4.3
|
$
|
3.7
|
$
|
4.3
| ||||||||
Global WAM net segregated funds net assets ($ billions)
|
$
|
214.5
|
$
|
244.6
|
$
|
214.5
|
$
|
244.6
| ||||||||
Financial Strength:
| ||||||||||||||||
MLI's LICAT ratio
|
136
|
%
|
138
|
%
|
136
|
%
|
138
|
%
| ||||||||
Financial leverage ratio
|
28.8
|
%
|
25.5
|
%
|
28.8
|
%
|
25.5
|
%
| ||||||||
Book value per common share ($)
|
$
|
26.17
|
$
|
25.78
|
$
|
26.17
|
$
|
25.78
| ||||||||
Book value per common share excluding AOCI ($)
|
$
|
25.88
|
$
|
23.41
|
$
|
25.88
|
$
|
23.41
|
(1) |
This item is a non-GAAP ratio.
|
(2) |
For more information on gross flows, see "Non-GAAP and other financial measures" below and in our 3Q22 MD&A for additional information.
|
(3) |
This item is a non-GAAP financial measure.
|
1 |
Asia Other excludes Hong Kong and Japan.
|
Media Inquiries
Cheryl Holmes
(416) 557-0945
Cheryl_Holmes@manulife.com |
Investor Relations
Hung Ko
(416) 806-9921
Hung_Ko@manulife.com |
Quarterly Results
|
YTD Results
| |||||||||||||||||||
($ millions)
|
3Q22
|
2Q22
|
3Q21
|
2022
|
2021
| |||||||||||||||
Core earnings
| ||||||||||||||||||||
Asia
|
$
|
513
|
$
|
513
|
$
|
533
|
$
|
1,563
|
$
|
1,629
| ||||||||||
Canada
|
350
|
345
|
311
|
1,009
|
893
| |||||||||||||||
U.S.
|
384
|
456
|
490
|
1,326
|
1,469
| |||||||||||||||
Global Wealth and Asset Management
|
345
|
305
|
351
|
974
|
1,019
| |||||||||||||||
Corporate and Other (excluding core investment gains)
|
(370
|
)
|
(157
|
)
|
(268
|
)
|
(736
|
)
|
(482
|
)
| ||||||||||
Core investment gains(1) |
100
|
100
|
100
|
300
|
300
| |||||||||||||||
Total core earnings
|
$
|
1,322
|
$
|
1,562
|
$
|
1,517
|
$
|
4,436
|
$
|
4,828
| ||||||||||
Items excluded from core earnings:(1)
Investment-related experience outside of core earnings
|
125
|
591
|
700
|
1,274
|
1,516
| |||||||||||||||
Direct impact of equity markets and interest rates and variable annuity guarantee liabilities
|
(54
|
)
|
(1,067
|
)
|
(597
|
)
|
(1,024
|
)
|
(1,215
|
)
| ||||||||||
Change in actuarial methods and assumptions
|
36
|
-
|
(41
|
)
|
36
|
(41
|
)
| |||||||||||||
Restructuring charge
|
-
|
-
|
-
|
-
|
(115
|
)
| ||||||||||||||
Reinsurance transaction, tax-related items and other
|
(82
|
)
|
-
|
13
|
681
|
48
| ||||||||||||||
Net income attributed to shareholders
|
$
|
1,347
|
$
|
1,086
|
$
|
1,592
|
$
|
5,403
|
$
|
5,021
|
(1) |
These items are disclosed under OSFI's Source of Earnings Disclosure (Life Insurance Companies) guideline.
|
3Q22 | ||||||||||||||||||||||||
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
| ||||||||||||||||||
Income (loss) before income taxes
|
$
|
476
|
$
|
819
|
$
|
766
|
$
|
395
|
$
|
(819
|
)
|
$
|
1,637
| |||||||||||
Income tax (expense) recovery
| ||||||||||||||||||||||||
Core earnings
|
(61
|
)
|
(116
|
)
|
(62
|
)
|
(50
|
)
|
18
|
(271
|
)
| |||||||||||||
Items excluded from core earnings
|
2
|
(75
|
)
|
(52
|
)
|
-
|
64
|
(61
|
)
| |||||||||||||||
Income tax (expense) recovery
|
(59
|
)
|
(191
|
)
|
(114
|
)
|
(50
|
)
|
82
|
(332
|
)
| |||||||||||||
Net income (post-tax)
|
417
|
628
|
652
|
345
|
(737
|
)
|
1,305
| |||||||||||||||||
Less: Net income (post-tax) attributed to
| ||||||||||||||||||||||||
Non-controlling interests
|
(19
|
)
|
-
|
-
|
-
|
1
|
(18
|
)
| ||||||||||||||||
Participating policyholders
|
(85
|
)
|
50
|
11
|
-
|
-
|
(24
|
)
| ||||||||||||||||
Net income (loss) attributed to shareholders
(post-tax)
|
521
|
578
|
641
|
345
|
(738
|
)
|
1,347
| |||||||||||||||||
Less: Items excluded from core earnings(1) | ||||||||||||||||||||||||
Investment-related experience outside of core
earnings
|
(3
|
)
|
97
|
127
|
-
|
(96
|
)
|
125
| ||||||||||||||||
Direct impact of equity markets and interest rates
and variable annuity guarantee liabilities
|
95
|
96
|
137
|
-
|
(382
|
)
|
(54
|
)
| ||||||||||||||||
Change in actuarial methods and assumptions
|
(45
|
)
|
35
|
36
|
-
|
10
|
36
| |||||||||||||||||
Restructuring charge
|
-
|
-
|
-
|
-
|
-
|
-
| ||||||||||||||||||
Reinsurance transactions, tax related items
and other
|
(39
|
)
|
-
|
(43
|
)
|
-
|
-
|
(82
|
)
| |||||||||||||||
Core earnings (post-tax)
|
$
|
513
|
$
|
350
|
$
|
384
|
$
|
345
|
$
|
(270
|
)
|
$
|
1,322
| |||||||||||
Income tax on core earnings (see above)
|
61
|
116
|
62
|
50
|
(18
|
)
|
271
| |||||||||||||||||
Core earnings (pre-tax)
|
$
|
574
|
$
|
466
|
$
|
446
|
$
|
395
|
$
|
(288
|
)
|
$
|
1,593
|
(1) |
These items are disclosed under OSFI's Source of Earnings Disclosure (Life Insurance Companies) guideline.
|
3Q22 | ||||||||||||||||||||||||
(Canadian $ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
| ||||||||||||||||||
Core earnings (post-tax)
|
$
|
513
|
$
|
350
|
$
|
384
|
$
|
345
|
$
|
(270
|
)
|
$
|
1,322
| |||||||||||
CER adjustment(1) |
-
|
-
|
-
|
-
|
-
|
-
| ||||||||||||||||||
Core earnings, CER basis (post-tax)
|
$
|
513
|
$
|
350
|
$
|
384
|
$
|
345
|
$
|
(270
|
)
|
$
|
1,322
| |||||||||||
Income tax on core earnings, CER basis(2) |
61
|
116
|
62
|
50
|
(18
|
)
|
271
| |||||||||||||||||
Core earnings, CER basis (pre-tax)
|
$
|
574
|
$
|
466
|
$
|
446
|
$
|
395
|
$
|
(288
|
)
|
$
|
1,593
|
(1) |
The impact of updating foreign exchange rates to that which was used in 3Q22.
|
(2) |
Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 3Q22.
|
2Q22 | ||||||||||||||||||||||||
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
| ||||||||||||||||||
Income (loss) before income taxes
|
$
|
216
|
$
|
224
|
$
|
1,010
|
$
|
362
|
$
|
(555
|
)
|
$
|
1,257
| |||||||||||
Income tax (expense) recovery
| ||||||||||||||||||||||||
Core earnings
|
(74
|
)
|
(119
|
)
|
(92
|
)
|
(57
|
)
|
4
|
(338
|
)
| |||||||||||||
Items excluded from core earnings
|
44
|
64
|
(82
|
)
|
-
|
54
|
80
| |||||||||||||||||
Income tax (expense) recovery
|
(30
|
)
|
(55
|
)
|
(174
|
)
|
(57
|
)
|
58
|
(258
|
)
| |||||||||||||
Net income (post-tax)
|
186
|
169
|
836
|
305
|
(497
|
)
|
999
| |||||||||||||||||
Less: Net income (post-tax) attributed to
| ||||||||||||||||||||||||
Non-controlling interests
|
(11
|
)
|
-
|
-
|
-
|
-
|
(11
|
)
| ||||||||||||||||
Participating policyholders
|
(164
|
)
|
84
|
4
|
-
|
-
|
(76
|
)
| ||||||||||||||||
Net income (loss) attributed to shareholders
(post-tax)
|
361
|
85
|
832
|
305
|
(497
|
)
|
1,086
| |||||||||||||||||
Less: Items excluded from core earnings(1) | ||||||||||||||||||||||||
Investment-related experience outside of core
earnings
|
80
|
86
|
591
|
-
|
(166
|
)
|
591
| |||||||||||||||||
Direct impact of equity markets and interest rates
and variable annuity guarantee liabilities
|
(232
|
)
|
(346
|
)
|
(215
|
)
|
-
|
(274
|
)
|
(1,067
|
)
| |||||||||||||
Change in actuarial methods and assumptions
|
-
|
-
|
-
|
-
|
-
|
-
| ||||||||||||||||||
Restructuring charge
|
-
|
-
|
-
|
-
|
-
|
-
| ||||||||||||||||||
Reinsurance transactions, tax related items
and other
|
-
|
-
|
-
|
-
|
-
|
-
| ||||||||||||||||||
Core earnings (post-tax)
|
$
|
513
|
$
|
345
|
$
|
456
|
$
|
305
|
$
|
(57
|
)
|
$
|
1,562
| |||||||||||
Income tax on core earnings (see above)
|
74
|
119
|
92
|
57
|
(4
|
)
|
338
| |||||||||||||||||
Core earnings (pre-tax)
|
$
|
587
|
$
|
464
|
$
|
548
|
$
|
362
|
$
|
(61
|
)
|
$
|
1,900
|
(1) |
These items are disclosed under OSFI's Source of Earnings Disclosure (Life Insurance Companies) guideline.
|
2Q22 | ||||||||||||||||||||||||
(Canadian $ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
| ||||||||||||||||||
Core earnings (post-tax)
|
$
|
513
|
$
|
345
|
$
|
456
|
$
|
305
|
$
|
(57
|
)
|
$
|
1,562
| |||||||||||
CER adjustment(1) |
3
|
-
|
10
|
4
|
1
|
18
| ||||||||||||||||||
Core earnings, CER basis (post-tax)
|
$
|
516
|
$
|
345
|
$
|
466
|
$
|
309
|
$
|
(56
|
)
|
$
|
1,580
| |||||||||||
Income tax on core earnings, CER basis(2) |
75
|
119
|
94
|
58
|
(5
|
)
|
341
| |||||||||||||||||
Core earnings, CER basis (pre-tax)
|
$
|
591
|
$
|
464
|
$
|
560
|
$
|
367
|
$
|
(61
|
)
|
$
|
1,921
|
(1) |
The impact of updating foreign exchange rates to that which was used in 3Q22.
|
(2) |
Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 3Q22.
|
3Q21 | ||||||||||||||||||||||||
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
| ||||||||||||||||||
Income (loss) before income taxes
|
$
|
650
|
$
|
(101
|
)
|
$
|
800
|
$
|
418
|
$
|
(287
|
)
|
$
|
1,480
| ||||||||||
Income tax (expense) recovery
| ||||||||||||||||||||||||
Core earnings
|
(52
|
)
|
(109
|
)
|
(79
|
)
|
(66
|
)
|
12
|
(294
|
)
| |||||||||||||
Items excluded from core earnings
|
(31
|
)
|
153
|
(16
|
)
|
(1
|
)
|
23
|
128
| |||||||||||||||
Income tax (expense) recovery
|
(83
|
)
|
44
|
(95
|
)
|
(67
|
)
|
35
|
(166
|
)
| ||||||||||||||
Net income (post-tax)
|
567
|
(57
|
)
|
705
|
351
|
(252
|
)
|
1,314
| ||||||||||||||||
Less: Net income (post-tax) attributed to
| ||||||||||||||||||||||||
Non-controlling interests
|
48
|
-
|
-
|
-
|
-
|
48
| ||||||||||||||||||
Participating policyholders
|
(303
|
)
|
(31
|
)
|
8
|
-
|
-
|
(326
|
)
| |||||||||||||||
Net income (loss) attributed to shareholders
(post-tax)
|
822
|
(26
|
)
|
697
|
351
|
(252
|
)
|
1,592
| ||||||||||||||||
Less: Items excluded from core earnings(1) | ||||||||||||||||||||||||
Investment-related experience outside of core
earnings
|
62
|
97
|
617
|
-
|
(76
|
)
|
700
| |||||||||||||||||
Direct impact of equity markets and interest rates
and variable annuity guarantee liabilities
|
(129
|
)
|
(369
|
)
|
(96
|
)
|
-
|
(3
|
)
|
(597
|
)
| |||||||||||||
Change in actuarial methods and assumptions
|
343
|
(65
|
)
|
(314
|
)
|
-
|
(5
|
)
|
(41
|
)
| ||||||||||||||
Restructuring charge
|
-
|
-
|
-
|
-
|
-
|
-
| ||||||||||||||||||
Reinsurance transactions, tax related items
and other
|
13
|
-
|
-
|
-
|
-
|
13
| ||||||||||||||||||
Core earnings (post-tax)
|
$
|
533
|
$
|
311
|
$
|
490
|
$
|
351
|
$
|
(168
|
)
|
$
|
1,517
| |||||||||||
Income tax on core earnings (see above)
|
52
|
109
|
79
|
66
|
(12
|
)
|
294
| |||||||||||||||||
Core earnings (pre-tax)
|
$
|
585
|
$
|
420
|
$
|
569
|
$
|
417
|
$
|
(180
|
)
|
$
|
1,811
|
(1) |
These items are disclosed under OSFI's Source of Earnings Disclosure (Life Insurance Companies) guideline.
|
3Q21 | ||||||||||||||||||||||||
(Canadian $ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
| ||||||||||||||||||
Core earnings (post-tax)
|
$
|
533
|
$
|
311
|
$
|
490
|
$
|
351
|
$
|
(168
|
)
|
$
|
1,517
| |||||||||||
CER adjustment(1) |
(8
|
)
|
-
|
18
|
6
|
(4
|
)
|
12
| ||||||||||||||||
Core earnings, CER basis (post-tax)
|
$
|
525
|
$
|
311
|
$
|
508
|
$
|
357
|
$
|
(172
|
)
|
$
|
1,529
| |||||||||||
Income tax on core earnings, CER basis(2) |
51
|
110
|
82
|
67
|
(12
|
)
|
298
| |||||||||||||||||
Core earnings, CER basis (pre-tax)
|
$
|
576
|
$
|
421
|
$
|
590
|
$
|
424
|
$
|
(184
|
)
|
$
|
1,827
|
(1) |
The impact of updating foreign exchange rates to that which was used in 3Q22.
|
(2) |
Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 3Q22.
|
YTD 2022 | ||||||||||||||||||||||||
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
| ||||||||||||||||||
Income (loss) before income taxes
|
$
|
1,373
|
$
|
1,923
|
$
|
4,353
|
$
|
1,143
|
$
|
(2,187
|
)
|
$
|
6,605
| |||||||||||
Income tax (expense) recovery
| ||||||||||||||||||||||||
Core earnings
|
(209
|
)
|
(345
|
)
|
(259
|
)
|
(168
|
)
|
48
|
(933
|
)
| |||||||||||||
Items excluded from core earnings
|
35
|
(126
|
)
|
(539
|
)
|
-
|
164
|
(466
|
)
| |||||||||||||||
Income tax (expense) recovery
|
(174
|
)
|
(471
|
)
|
(798
|
)
|
(168
|
)
|
212
|
(1,399
|
)
| |||||||||||||
Net income (post-tax)
|
1,199
|
1,452
|
3,555
|
975
|
(1,975
|
)
|
5,206
| |||||||||||||||||
Less: Net income (post-tax) attributed to
| ||||||||||||||||||||||||
Non-controlling interests
|
(10
|
)
|
-
|
-
|
1
|
1
|
(8
|
)
| ||||||||||||||||
Participating policyholders
|
(446
|
)
|
242
|
15
|
-
|
-
|
(189
|
)
| ||||||||||||||||
Net income (loss) attributed to shareholders
(post-tax)
|
1,655
|
1,210
|
3,540
|
974
|
(1,976
|
)
|
5,403
| |||||||||||||||||
Less: Items excluded from core earnings(1) | ||||||||||||||||||||||||
Investment-related experience outside of core
earnings
|
141
|
236
|
1,245
|
-
|
(348
|
)
|
1,274
| |||||||||||||||||
Direct impact of equity markets and interest
rates and variable annuity guarantee liabilities
|
43
|
(70
|
)
|
134
|
-
|
(1,131
|
)
|
(1,024
|
)
| |||||||||||||||
Change in actuarial methods and assumptions
|
(45
|
)
|
35
|
36
|
-
|
10
|
36
| |||||||||||||||||
Restructuring charge
|
-
|
-
|
-
|
-
|
-
|
-
| ||||||||||||||||||
Reinsurance transactions, tax related items
and other
|
(47
|
)
|
-
|
799
|
-
|
(71
|
)
|
681
| ||||||||||||||||
Core earnings (post-tax)
|
$
|
1,563
|
$
|
1,009
|
$
|
1,326
|
$
|
974
|
$
|
(436
|
)
|
$
|
4,436
| |||||||||||
Income tax on core earnings (see above)
|
209
|
345
|
259
|
168
|
(48
|
)
|
933
| |||||||||||||||||
Core earnings (pre-tax)
|
$
|
1,772
|
$
|
1,354
|
$
|
1,585
|
$
|
1,142
|
$
|
(484
|
)
|
$
|
5,369
|
(1) |
These items are disclosed under OSFI's Source of Earnings Disclosure (Life Insurance Companies) guideline.
|
YTD 2022
| ||||||||||||||||||||||||
(Canadian $ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
| ||||||||||||||||||
Core earnings (post-tax)
|
$
|
1,563
|
$
|
1,009
|
$
|
1,326
|
$
|
974
|
$
|
(436
|
)
|
$
|
4,436
| |||||||||||
CER adjustment(1) |
(4
|
)
|
-
|
25
|
10
|
2
|
33
| |||||||||||||||||
Core earnings, CER basis (post-tax)
|
$
|
1,559
|
$
|
1,009
|
$
|
1,351
|
$
|
984
|
$
|
(434
|
)
|
$
|
4,469
| |||||||||||
Income tax on core earnings, CER basis(2) |
209
|
345
|
264
|
169
|
(49
|
)
|
938
| |||||||||||||||||
Core earnings, CER basis (pre-tax)
|
$
|
1,768
|
$
|
1,354
|
$
|
1,615
|
$
|
1,153
|
$
|
(483
|
)
|
$
|
5,407
|
(1) |
The impact of updating foreign exchange rates to that which was used in 3Q22.
|
(2) |
Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 3Q22.
|
YTD 2021
| ||||||||||||||||||||||||
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
| ||||||||||||||||||
Income (loss) before income taxes
|
$
|
2,504
|
$
|
985
|
$
|
1,870
|
$
|
1,203
|
$
|
(918
|
)
|
$
|
5,644
| |||||||||||
Income tax (expense) recovery
| ||||||||||||||||||||||||
Core earnings
|
(254
|
)
|
(312
|
)
|
(301
|
)
|
(182
|
)
|
35
|
(1,014
|
)
| |||||||||||||
Items excluded from core earnings
|
(107
|
)
|
154
|
36
|
(1
|
)
|
149
|
231
| ||||||||||||||||
Income tax (expense) recovery
|
(361
|
)
|
(158
|
)
|
(265
|
)
|
(183
|
)
|
184
|
(783
|
)
| |||||||||||||
Net income (post-tax)
|
2,143
|
827
|
1,605
|
1,020
|
(734
|
)
|
4,861
| |||||||||||||||||
Less: Net income (post-tax) attributed to
| ||||||||||||||||||||||||
Non-controlling interests
|
222
|
-
|
-
|
1
|
-
|
223
| ||||||||||||||||||
Participating policyholders
|
(491
|
)
|
89
|
19
|
-
|
-
|
(383
|
)
| ||||||||||||||||
Net income (loss) attributed to shareholders
(post-tax)
|
2,412
|
738
|
1,586
|
1,019
|
(734
|
)
|
5,021
| |||||||||||||||||
Less: Items excluded from core earnings(1) | ||||||||||||||||||||||||
Investment-related experience outside of core
earnings
|
255
|
239
|
1,283
|
-
|
(261
|
)
|
1,516
| |||||||||||||||||
Direct impact of equity markets and interest
rates and variable annuity guarantee liabilities
|
137
|
(329
|
)
|
(852
|
)
|
-
|
(171
|
)
|
(1,215
|
)
| ||||||||||||||
Change in actuarial methods and assumptions
|
343
|
(65
|
)
|
(314
|
)
|
-
|
(5
|
)
|
(41
|
)
| ||||||||||||||
Restructuring charge
|
-
|
-
|
-
|
-
|
(115
|
)
|
(115
|
)
| ||||||||||||||||
Reinsurance transactions, tax related items
and other
|
48
|
-
|
-
|
-
|
-
|
48
| ||||||||||||||||||
Core earnings (post-tax)
|
$
|
1,629
|
$
|
893
|
$
|
1,469
|
$
|
1,019
|
$
|
(182
|
)
|
$
|
4,828
| |||||||||||
Income tax on core earnings (see above)
|
254
|
312
|
301
|
182
|
(35
|
)
|
1,014
| |||||||||||||||||
Core earnings (pre-tax)
|
$
|
1,883
|
$
|
1,205
|
$
|
1,770
|
$
|
1,201
|
$
|
(217
|
)
|
$
|
5,842
|
(1) |
These items are disclosed under OSFI's Source of Earnings Disclosure (Life Insurance Companies) guideline.
|
YTD 2021
| ||||||||||||||||||||||||
(Canadian $ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
| ||||||||||||||||||
Core earnings (post-tax)
|
$
|
1,629
|
$
|
893
|
$
|
1,469
|
$
|
1,019
|
$
|
(182
|
)
|
$
|
4,828
| |||||||||||
CER adjustment(1) |
(22
|
)
|
1
|
64
|
27
|
(2
|
)
|
68
| ||||||||||||||||
Core earnings, CER basis (post-tax)
|
$
|
1,607
|
$
|
894
|
$
|
1,533
|
$
|
1,046
|
$
|
(184
|
)
|
$
|
4,896
| |||||||||||
Income tax on core earnings, CER basis(2) |
251
|
313
|
314
|
184
|
(34
|
)
|
1,028
| |||||||||||||||||
Core earnings, CER basis (pre-tax)
|
$
|
1,858
|
$
|
1,207
|
$
|
1,847
|
$
|
1,230
|
$
|
(218
|
)
|
$
|
5,924
|
(1) |
The impact of updating foreign exchange rates to that which was used in 3Q22.
|
(2) |
Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 3Q22.
|
Quarterly Results |
YTD Results |
Full Year
Results
| |||||||||||||||||||||||||||||||
3Q22
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2022
|
2021
|
2021
| ||||||||||||||||||||||||||
Core earnings
|
$
|
1,322
|
$
|
1,562
|
$
|
1,552
|
$
|
1,708
|
$
|
1,517
|
$
|
4,436
|
$
|
4,828
|
$
|
6,536
| |||||||||||||||||
Less: Preferred share
dividends
|
(51
|
)
|
(60
|
)
|
(52
|
)
|
(71
|
)
|
(37
|
)
|
(163
|
)
|
(144
|
)
|
(215
|
)
| |||||||||||||||||
Core earnings available to
common shareholders
|
1,271
|
1,502
|
1,500
|
1,637
|
1,480
|
4,273
|
4,684
|
6,321
| |||||||||||||||||||||||||
CER adjustment(1) |
-
|
18
|
15
|
24
|
12
|
33
|
68
|
92
| |||||||||||||||||||||||||
Core earnings available to
common shareholders,
CER basis
|
$
|
1,271
|
$
|
1,520
|
$
|
1,515
|
$
|
1,661
|
$
|
1,492
|
$
|
4,306
|
$
|
4,752
|
$
|
6,413
|
(1) |
The impact of updating foreign exchange rates to that which was used in 3Q22.
|
Quarterly Results
|
YTD Results
|
Full Year
Results
| ||||||||||||||||||||||||||||||
3Q22
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2022
|
2021
|
2021
| |||||||||||||||||||||||||
Core earnings available to
common shareholders
|
$
|
1,271
|
$
|
1,502
|
$
|
1,500
|
$
|
1,637
|
$
|
1,480
|
$
|
4,273
|
$
|
4,684
|
$
|
6,321
| ||||||||||||||||
Annualized core earnings
available to common
shareholders
|
$
|
5,045
|
$
|
6,022
|
$
|
6,085
|
$
|
6,483
|
$
|
5,874
|
$
|
5,714
|
$
|
6,262
|
$
|
6,321
| ||||||||||||||||
Average common
shareholders' equity (see
below)
|
$
|
49,129
|
$
|
49,814
|
$
|
51,407
|
$
|
51,049
|
$
|
49,075
|
$
|
50,117
|
$
|
47,601
|
$
|
48,463
| ||||||||||||||||
Core ROE (annualized) (%)
|
10.3
|
%
|
12.1
|
%
|
11.8
|
%
|
12.7
|
%
|
12.0
|
%
|
11.4
|
%
|
13.2
|
%
|
13.0
|
%
| ||||||||||||||||
Average common
shareholders' equity
| ||||||||||||||||||||||||||||||||
Total shareholders' and other
equity
|
$
|
56,078
|
$
|
55,500
|
$
|
56,457
|
$
|
58,408
|
$
|
55,457
|
$
|
56,078
|
$
|
55,457
|
$
|
58,408
| ||||||||||||||||
Less: Preferred shares and
other equity
|
(6,660
|
)
|
(6,660
|
)
|
(5,670
|
)
|
(6,381
|
)
|
(5,387
|
)
|
(6,660
|
)
|
(5,387
|
)
|
(6,381
|
)
| ||||||||||||||||
Common shareholders'
equity
|
$
|
49,418
|
$
|
48,840
|
$
|
50,787
|
$
|
52,027
|
$
|
50,070
|
$
|
49,418
|
$
|
50,070
|
$
|
52,027
| ||||||||||||||||
Average common
shareholders' equity
|
$
|
49,129
|
$
|
49,814
|
$
|
51,407
|
$
|
51,049
|
$
|
49,075
|
$
|
50,117
|
$
|
47,601
|
$
|
48,463
|
Quarterly Results
|
YTD Results
|
Full Year
Results
| ||||||||||||||||||||||||||||||
3Q22
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2022
|
2021
|
2021
| |||||||||||||||||||||||||
Core EPS
| ||||||||||||||||||||||||||||||||
Core earnings available to
common shareholders
|
$
|
1,271
|
$
|
1,502
|
$
|
1,500
|
$
|
1,637
|
$
|
1,480
|
$
|
4,273
|
$
|
4,684
|
$
|
6,321
| ||||||||||||||||
Diluted weighted average
common shares outstanding
(millions)
|
1,904
|
1,924
|
1,942
|
1,946
|
1,946
|
1,923
|
1,946
|
1,946
| ||||||||||||||||||||||||
Core earnings per share
|
$
|
0.67
|
$
|
0.78
|
$
|
0.77
|
$
|
0.84
|
$
|
0.76
|
$
|
2.22
|
$
|
2.41
|
$
|
3.25
| ||||||||||||||||
Core EPS, CER basis
| ||||||||||||||||||||||||||||||||
Core earnings available to
common shareholders, CER
basis
|
$
|
1,271
|
$
|
1,520
|
$
|
1,515
|
$
|
1,661
|
$
|
1,492
|
$
|
4,306
|
$
|
4,752
|
$
|
6,413
| ||||||||||||||||
Diluted weighted average
common shares outstanding
(millions)
|
1,904
|
1,924
|
1,942
|
1,946
|
1,946
|
1,923
|
1,946
|
1,946
| ||||||||||||||||||||||||
Core earnings per share,
CER basis
|
$
|
0.67
|
$
|
0.79
|
$
|
0.78
|
$
|
0.85
|
$
|
0.77
|
$
|
2.24
|
$
|
2.44
|
$
|
3.30
|
As at
|
Sept 30,
2022
|
June 30,
2022
|
March 31,
2022
|
December
31, 2021
|
Sept 30,
2021
| |||||||||||||||
Total invested assets
|
$
|
411,292
|
$
|
402,329
|
$
|
409,401
|
$
|
427,098
|
$
|
419,087
| ||||||||||
Less: Non Global WAM total invested assets
|
407,551
|
398,362
|
405,933
|
422,640
|
414,754
| |||||||||||||||
Total Invested Assets - Global WAM
|
3,741
|
3,967
|
3,468
|
4,458
|
4,333
| |||||||||||||||
Total segregated funds net assets
|
$
|
335,245
|
$
|
334,903
|
$
|
371,928
|
$
|
399,788
|
$
|
387,799
| ||||||||||
Less: Non Global WAM total segregated funds net assets
|
120,775
|
121,624
|
135,314
|
147,221
|
143,248
| |||||||||||||||
Total Invested Assets - Global WAM
|
214,470
|
213,279
|
236,614
|
252,567
|
244,551
| |||||||||||||||
Global WAM total invested assets and net segregated funds assets
|
$
|
218,211
|
$
|
217,246
|
$
|
240,082
|
$
|
257,025
|
$
|
248,884
| ||||||||||
Global WAM AUMA
| ||||||||||||||||||||
Total Invested Assets
|
$
|
3,741
|
$
|
3,967
|
$
|
3,468
|
$
|
4,458
|
$
|
4,333
| ||||||||||
Segregated funds net assets
| ||||||||||||||||||||
Segregated funds net assets - Institutional
|
4,118
|
4,098
|
4,338
|
4,470
|
4,400
| |||||||||||||||
Segregated funds net assets - Other
|
210,352
|
209,181
|
232,276
|
248,097
|
240,151
| |||||||||||||||
Total
|
214,470
|
213,279
|
236,614
|
252,567
|
244,551
| |||||||||||||||
Mutual funds
|
249,520
|
250,445
|
274,665
|
290,863
|
277,421
| |||||||||||||||
Institutional asset management(1) |
100,361
|
100,205
|
101,105
|
106,407
|
103,732
| |||||||||||||||
Other funds
|
12,910
|
12,110
|
13,269
|
14,001
|
12,562
| |||||||||||||||
Total Global WAM AUM
|
581,002
|
580,006
|
629,121
|
668,296
|
642,599
| |||||||||||||||
Assets under administration
|
167,759
|
164,697
|
178,843
|
187,631
|
181,013
| |||||||||||||||
Total Global WAM AUMA
|
$
|
748,761
|
$
|
744,703
|
$
|
807,964
|
$
|
855,927
|
$
|
823,612
| ||||||||||
Total Global WAM AUMA
|
$
|
748,761
|
$
|
744,703
|
$
|
807,964
|
$
|
855,927
|
$
|
823,612
| ||||||||||
CER adjustment(2) |
-
|
33,035
|
52,761
|
45,465
|
40,546
| |||||||||||||||
Total Global WAM AUMA, CER basis
|
$
|
748,761
|
$
|
777,738
|
$
|
860,725
|
$
|
901,392
|
$
|
864,158
|
(1) |
Institutional asset management excludes Institutional segregated funds net assets.
|
(2) |
The impact of updating foreign exchange rates to that which was used in 3Q22.
|
Quarterly Results
|
YTD Results
|
Full Year
Results
| ||||||||||||||||||||||||||||||
3Q22
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2022
|
2021
|
2021
| |||||||||||||||||||||||||
Global WAM core earnings (post-tax)
|
$
|
345
|
$
|
305
|
$
|
324
|
$
|
387
|
$
|
351
|
$
|
974
|
$
|
1,019
|
$
|
1,406
| ||||||||||||||||
Addback taxes, acquisition
costs, other expenses and
deferred sales commissions
| ||||||||||||||||||||||||||||||||
Core income tax
(expense) recovery
(see above)
|
50
|
57
|
61
|
52
|
66
|
168
|
182
|
234
| ||||||||||||||||||||||||
Acquisition costs, other
expenses
|
86
|
80
|
81
|
79
|
86
|
247
|
244
|
323
| ||||||||||||||||||||||||
Deferred sales
commissions
|
23
|
25
|
24
|
25
|
26
|
72
|
74
|
99
| ||||||||||||||||||||||||
Core EBITDA
|
$
|
504
|
$
|
467
|
$
|
490
|
$
|
543
|
$
|
529
|
$
|
1,461
|
$
|
1,519
|
$
|
2,062
|
Quarterly Results
|
YTD Results
|
Full Year
Results
| ||||||||||||||||||||||||||||||
3Q22
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2022
|
2021
|
2021
| |||||||||||||||||||||||||
Core EBITDA margin
| ||||||||||||||||||||||||||||||||
Core EBITDA
|
$
|
504
|
$
|
467
|
$
|
490
|
$
|
543
|
$
|
529
|
$
|
1,461
|
$
|
1,519
|
$
|
2,062
| ||||||||||||||||
Global WAM revenue
|
$
|
1,542
|
$
|
1,521
|
$
|
1,586
|
$
|
1,727
|
$
|
1,680
|
$
|
4,649
|
$
|
4,814
|
$
|
6,541
| ||||||||||||||||
Core EBITDA margin
|
32.7
|
%
|
30.7
|
%
|
30.9
|
%
|
31.4
|
%
|
31.5
|
%
|
31.4
|
%
|
31.6
|
%
|
31.5
|
%
|
Quarterly Results
|
YTD Results
|
Full Year
Results
| ||||||||||||||||||||||||||||||
3Q22
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2022
|
2021
|
2021
| |||||||||||||||||||||||||
Expense Efficiency Ratio
| ||||||||||||||||||||||||||||||||
Core general expenses
|
$
|
1,859
|
$
|
1,843
|
$
|
1,877
|
$
|
1,973
|
$
|
1,904
|
$
|
5,579
|
$
|
5,580
|
$
|
7,553
| ||||||||||||||||
Core earnings (pre-tax)
|
1,593
|
1,900
|
1,876
|
2,054
|
1,811
|
5,369
|
5,842
|
7,896
| ||||||||||||||||||||||||
Total - Core earnings (pre-
tax) and Core general
expenses
|
$
|
3,452
|
$
|
3,743
|
$
|
3,753
|
$
|
4,027
|
$
|
3,715
|
$
|
10,948
|
$
|
11,422
|
$
|
15,449
| ||||||||||||||||
Expense Efficiency Ratio
|
53.9
|
%
|
49.2
|
%
|
50.0
|
%
|
49.0
|
%
|
51.3
|
%
|
51.0
|
%
|
48.9
|
%
|
48.9
|
%
| ||||||||||||||||
Core general expenses
| ||||||||||||||||||||||||||||||||
General expenses - Financial
Statements
|
$
|
1,900
|
$
|
1,843
|
$
|
1,898
|
$
|
2,000
|
$
|
1,904
|
$
|
5,641
|
$
|
5,828
|
$
|
7,828
| ||||||||||||||||
Less: General expenses
included in items excluded
from core earnings
| ||||||||||||||||||||||||||||||||
Restructuring charge
|
-
|
-
|
-
|
-
|
-
|
-
|
150
|
150
| ||||||||||||||||||||||||
Integration and
acquisition
|
-
|
-
|
8
|
-
|
-
|
8
|
-
|
-
| ||||||||||||||||||||||||
Legal provisions and
Other expenses
|
41
|
-
|
13
|
27
|
-
|
54
|
98
|
125
| ||||||||||||||||||||||||
Total
|
$
|
41
|
$
|
-
|
$
|
21
|
$
|
27
|
$
|
-
|
$
|
62
|
$
|
248
|
$
|
275
| ||||||||||||||||
Core general expenses
|
$
|
1,859
|
$
|
1,843
|
$
|
1,877
|
$
|
1,973
|
$
|
1,904
|
$
|
5,579
|
$
|
5,580
|
$
|
7,553
| ||||||||||||||||
Core general expenses
|
$
|
1,859
|
$
|
1,843
|
$
|
1,877
|
$
|
1,973
|
$
|
1,904
|
$
|
5,579
|
$
|
5,580
|
$
|
7,553
| ||||||||||||||||
CER adjustment(1) |
-
|
11
|
-
|
6
|
1
|
11
|
14
|
20
| ||||||||||||||||||||||||
Core general expenses,
CER basis
|
$
|
1,859
|
$
|
1,854
|
$
|
1,877
|
$
|
1,979
|
$
|
1,905
|
$
|
5,590
|
$
|
5,594
|
$
|
7,573
|
(1) |
The impact of updating foreign exchange rates to that which was used in 3Q22.
|
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Disclaimer
Manulife Financial Corporation published this content on 09 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 November 2022 22:35:09 UTC.