Manulife Reports First Quarter 2025 Results

TSX/NYSE/PSE: MFC SEHK: 945 C$ unless otherwise stated , /PRNewswire/ - Manulife Financial Corporation ("Manulife" or the "Company") reported its first quarter results for the period ended March 31, 2025, delivering record insurance new business results1 and steady growth in book value per common share. Key highlights for the first quarter of 2025 ("1Q25") include: Core earnings2 of $1.8 billion, a 1% decrease on a constant exchange rate basis3 compared with the first quarter of 2024 ("1Q24")4 Net income attributed to shareholders of $0.5 billion, a decrease of $0.4 billion compared with 1Q24 Core EPS5 of $0.99, up 3%3 from 1Q244. EPS of $0.25, down 48%3 from 1Q24 Core ROE5 of 15.6% and ROE of 3.9% LICAT ratio6 of 137% APE sales up 37%7, new business CSM up 31%3 and new business value ("NBV") up 36%7 from 1Q244,8 Global Wealth and Asset Management ("Global WAM") net inflows7 of $0.5 billion, down from $6.7 billion in 1Q24 "We started the year with continued strong momentum, delivering record levels of insurance new business results this quarter. We generated double-digit growth in new business value across all insurance segments, led by Asia with a 43% increase year over year, demonstrating broad-based strength in our top-line results. Global WAM delivered 24% core earnings growth, expanded core EBITDA margin5 by 290 basis points and generated positive net flows. We also completed our second long-term care reinsurance transaction9, a testament to our focused execution and commitment in delivering sustainable value to shareholders. Overall, I am proud of our performance this quarter against an increasingly volatile operating environment, and our results reflect the strength of the franchise."The work we have done since 2017 has put the company in a position of great strength. We could not have transformed the company in such a tangible way without the hard work, disciplined execution, and commitment of our more than 37,000 colleagues across the globe. I couldn't be prouder of what we've accomplished and of the momentum we built, and I look forward to watching Phil Witherington lead the company in writing its next chapter."— Roy Gori, Manulife President & Chief Executive Officer "Our underlying business growth remained resilient, while our core EPS growth was dampened by strengthened provisions related to expected credit loss and a provision for the California wildfires. Book value per common share continued to increase steadily in 1Q25, growing 12% year over year. We maintained a strong LICAT ratio of 137%, and our financial leverage ratio5 was 23.9%, well within our medium-term target of 25%. Anchored by our strategic priorities and supported by our robust balance sheet, we are well-positioned to navigate the current economic conditions and capitalize on growth opportunities." — Colin Simpson, Manulife Chief Financial Officer Results at a Glance ($ millions, unless otherwise stated) Quarterly Results 1Q25 1Q24 Change3,7 Net income attributed to shareholders $ 485 $ 866 (47) % Core earnings $ 1,767 $ 1,710 (1) % EPS ($) $ 0.25 $ 0.45 (48) % Core EPS ($) $ 0.99 $ 0.91 3 % ROE 3.9 % 8.0 % (4.1) pps Core ROE4 15.6 % 16.2 % (0.6) pps Book value per common share ($) $ 25.88 $ 23.09 12 % Adjusted BV per common share ($)4,5 $ 36.66 $ 32.74 12 % Financial leverage ratio (%)4 23.9 % 24.6 % (0.7) pps APE sales $ 2,689 $ 1,883 37 % New business CSM $ 907 $ 658 31 % NBV $ 907 $ 641 36 % Global WAM net flows ($ billions) $ 0.5 $ 6.7 (93) % Results by Segment ($ millions, unless otherwise stated) Quarterly Results 1Q25 1Q24 Change7 Asia (US$) Net income attributed to shareholders $ 435 $ 270 57 % Core earnings4 492 465 7 % APE sales 1,412 950 50 % New business CSM 498 364 38 % NBV4 457 323 43 % Canada Net income attributed to shareholders $ 222 $ 273 (19) % Core earnings 374 364 3 % APE sales 491 450 9 % New business CSM 91 70 30 % NBV 180 157 15 % U.S. (US$) Net income attributed to shareholders $ (397) $ (80) (396) % Core earnings 251 335 (25) % APE sales 120 113 6 % New business CSM 70 72 (3) % NBV 48 37 30 % Global WAM Net income attributed to shareholders $ 443 $ 365 15 % Core earnings4 454 349 24 % Gross flows ($ billions)7 50.3 45.4 5 % Average AUMA ($ billions)7 1,041 880 13 % Core EBITDA margin (%) 28.4 % 25.5 % 290 bps Strategic Highlights We are capitalizing on opportunities and driving growth while optimizing our portfolio In Global WAM, we launched FutureStepTM, a new fully digital retirement plan offering for small businesses in the U.S., in collaboration with Vestwell, a financial technology company. This complements our existing plan offerings and enhances our market presence. It marks a significant step in transforming our retirement business to become the partner of choice for distributors, third-party administrators, and plan sponsors. In Asia, we renewed our bancassurance partnership in the Philippines with China Banking Corporation ("Chinabank"), extending our exclusive partnership for another 15 years. This strategic partnership, which started in 2007, solidifies the two organizations' shared commitment to provide holistic life, wealth, and health solutions for the long-term financial security of Filipino families. In addition, we closed the previously announced transaction to reinsure two blocks of in-force business, including a younger block of long-term care, with Reinsurance Group of America. We plan to return the capital released from this transaction through our new share buyback program which commenced in late February 2025.10 We continue to expand our innovative product portfolio to meet changing customer needs In Asia, we introduced our Shared Values proposition by offering a first-of-its-kind combination of high-net-worth life insurance with comprehensive health benefits in our International High Net Worth business. The proposition provides access to customer benefits including a whole-body MRI scan, medical second opinion concierge services and critical illness benefits. In Global WAM, we launched the John Hancock CQS Asset Backed Securities ("ABS") Fund in the U.S., our second retail fund leveraging Manulife | CQS Investment Management expertise. This fund offers exposure to the global ABS market, aiming to generate returns through current income and capital appreciation with a diversified, actively managed portfolio. In the U.S., we continued enhancing the appeal of our differentiated suite of solutions, including the launch of a new hybrid indexed universal life insurance solution offering more flexible living benefits and a streamlined digital application process. We are advancing our digital, customer leadership ambition with AI enhancements In Asia, we further strengthened our GenAI capabilities to enhance sales support and improve customer experience. We rolled out our AI Assistant solution to support agents in Singapore and to help our teams better serve brokers in Japan, enabling faster access to product information, reducing administrative workload and allowing distributors to focus more on customer engagement. In Canada, we introduced an innovative GenAI tool within our Individual Insurance business, which enables our internal sales team to automatically generate personalized communications to advisors by analyzing historical data and identifying available opportunities. As a result, interactions between wholesalers and advisors have improved, contributing to an 11% year-over-year increase in the number of advisors placing business with us in 1Q25. We are helping our customers live longer, healthier, better lives In the U.S., we became the first life insurer to offer eligible John Hancock Vitality members access to Function Health's technology and screening tools. Function Health includes access to over 100 lab tests – spanning heart, hormone, thyroid, and autoimmunity, among others. This addition builds on our growing portfolio of offerings that help our customers take proactive steps to better understand their health. In Canada, we further enhanced the Manulife Vitality program with offerings to assist members in meeting their health and wellness goals, including additional resources and incentives for managing and preventing diabetes, the extension of travel rewards to all members, and the addition of ŌURA as our newest Vitality rewards partner. Strong Global WAM and Asia results contributed to resilient earnings11 Core earnings of $1.8 billion in 1Q25, down 1% from 1Q24 Core earnings decreased modestly on a constant exchange rate basis, as continued business growth in Global WAM and Asia was offset by strengthened provisions related to expected credit loss ("ECL") of $45 million post-tax in 1Q2512, compared with a net release of $8 million post-tax in 1Q2412, and a provision for the California wildfires of $43 million post-tax in 1Q25. Asia core earnings were up 7%, reflecting continued business growth, improved impact of new business, and favourable claims experience, partially offset by strengthened ECL provisions. Global WAM core earnings grew 24%, primarily driven by higher net fee income from favourable market impacts over the past 12 months and positive net flows, higher performance fees, and continued expense discipline. Canada core earnings increased 3%, primarily driven by overall favourable net insurance experience, and business growth in Group Insurance, partially offset by strengthened ECL provisions and lower Manulife Bank earnings. U.S. core earnings decreased 25%, reflecting lower investment spreads, strengthened ECL provisions, and the net unfavourable impact of the annual review of actuarial methods and assumptions in 2024. Corporate and Other core earnings decreased $46 million, mainly related to a provision for the California wildfires in our Property and Casualty reinsurance business. Net Income attributed to shareholders of $0.5 billion in 1Q25, $0.4 billion lower compared with 1Q24 The $0.4 billion decrease in net income was driven by a larger net charge from market experience. The net charge from market experience in 1Q25 was primarily related to a $0.7 billion realized loss due to the sale of debt instruments related to the RGA U.S. Reinsurance Transaction, lower-than-expected returns on alternative long-duration assets, mainly related to real estate and private equities, and lower-than-expected returns on public equities. The realized loss due to the sale of debt instruments was offset by an associated change in Other Comprehensive Income, resulting in a neutral impact to book value. Record levels across all three insurance new business metrics and positive net flows in Global WAM Continued momentum in our 1Q25 top-line insurance results, as evidenced by the year-over-year growth of 37%, 31% and 36% in APE sales, new business CSM and NBV, respectively Asia delivered another strong quarter with record levels of APE sales, new business CSM and NBV, with year-over-year growth of 50%, 38% and 43%, respectively, reflecting higher sales volumes in Hong Kong, Asia Other13 and Japan. NBV margin7 of 38.1% demonstrated resilience. Canada APE sales increased 9% bolstered by higher sales volumes across all business lines. Coupled with higher margins in Group Insurance, NBV grew 15% compared with 1Q24. New business CSM also increased 30%, driven by higher sales volumes in Individual Insurance and segregated fund products. In the U.S., APE sales and NBV increased 6% and 30%, respectively, reflecting continued demand from affluent customers for accumulation insurance products. New business CSM decreased 3%, primarily driven by product mix, partially offset by higher sales volumes. Global WAM net inflows of $0.5 billion in 1Q25, compared with net inflows of $6.7 billion in 1Q24 Retirement net outflows of $2.6 billion in 1Q25 decreased from net inflows of $3.2 billion in 1Q24, reflecting higher retirement plan redemptions and higher net member withdrawals in North America. Retail net inflows of $0.5 billion in 1Q25 decreased from net inflows of $1.7 billion in 1Q24, reflecting higher redemptions due to lower investor demand amid market volatility. This was partially offset by higher money market fund sales and new fund launches in mainland China, as well as higher net sales through our retail wealth platform in Canada. Institutional Asset Management net inflows of $2.6 billion in 1Q25 increased compared with net inflows of $1.8 billion in 1Q24, driven by lower redemptions in fixed income mandates. Growth in new business continues to drive higher organic CSM and CSM balance CSM14 was $22,296 million as at March 31, 2025 CSM increased $169 million compared with December 31, 2024. Organic CSM movement contributed $598 million of the increase for the first quarter of 2025, representing an 11%7 growth on an annualized basis, primarily driven by the impact of new business, interest accretion and net favourable insurance experience, partially offset by amortization recognized in core earnings. Inorganic CSM movement was a decrease of $429 million for the same period, primarily driven by the unfavourable impacts of equity market performance and the impact of the RGA U.S. Reinsurance Transaction, partially offset by the favourable impacts of changes in foreign currency exchange rates. Post-tax CSM net of NCI2 was $18,524 million as at March 31, 2025. ________________________________________________(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 1Q25 Management's Discussion and Analysis ("1Q25 MD&A"). (3) Percentage growth/declines in core earnings, diluted core earnings per common share ("core EPS"), diluted earnings (loss) per share ("EPS"), 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) 1Q24 core earnings (total and by segment), core EPS, NBV (total and Asia segment), core ROE, adjusted book value per common share ("adjusted BV per common share"), and financial leverage ratio have been updated to align with the presentation of Global Minimum Taxes ("GMT") in 2025. See section A7 "Global Minimum Taxes (GMT)" in our 1Q25 MD&A for more information. (5) Core EPS, core ROE, core EBITDA margin, financial leverage ratio and adjusted book value per common share are non-GAAP ratios. (6) Life Insurance Capital Adequacy Test ("LICAT") ratio of The Manufacturers Life Insurance Company ("MLI") as at March 31, 2025. 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 APE sales, NBV, 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, average AUMA and organic CSM are stated on a constant exchange rate basis. (8) Refers to "Results at a Glance" for 1Q25 and 1Q24 results. (9) Also referred to as the "RGA U.S. Reinsurance Transaction". (10) See "Caution regarding forward-looking statements" below. (11) See section A1 "Profitability" in our 1Q25 MD&A for more information on notable items attributable to core earnings and net income attributed to shareholders. (12) The net change in ECL excluded the impact from the RGA U.S. Reinsurance Transaction and the GA Reinsurance Transaction in 1Q25 and 1Q24, respectively. (13) Asia Other excludes Hong Kong and Japan. (14) Net of non-controlling interests ("NCI"). Earnings Results Conference Call Manulife will host a conference call and live webcast on its First Quarter 2025 results on May 8, 2025, at 8:00 a.m. (ET). To access the conference call, dial 1-800-806-5484 or 1-416-340-2217 (Passcode: 3499479#). 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 https://www.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 June 7, 2025, by dialing 1-800-408-3053 or 1-905-694-9451 (Passcode: 9456881#). The First Quarter 2025 Statistical Information Package and 2024 New Business Value Report are also available on the Manulife website at https://www.manulife.com/en/investors/results-and-reports. This earnings news release should be read in conjunction with the Company's First Quarter 2025 Report to Shareholders, including our unaudited interim Consolidated Financial Statements for the three months ended March 31, 2025, prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, which is available on our website at https://www.manulife.com/en/investors/results-and-reports.html. The Company's 1Q25 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. Media InquiriesFiona McLean(437) 441-7491[email protected] Investor RelationsHung Ko(416) 806-9921[email protected] 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 ($ millions) 1Q25 4Q24 1Q24 Core earnings(1) Asia $ 705 $ 640 $ 626 Canada 374 390 364 U.S. 361 412 452 Global Wealth and Asset Management 454 459 349 Corporate and Other (127) 6 (81) Total core earnings $ 1,767 $ 1,907 $ 1,710 Items excluded from core earnings Market experience gains (losses) (1,332) (192) (779) Restructuring charge - (52) - Reinsurance transactions, tax-related items and other(1) 50 (25) (65) Net income attributed to shareholders $ 485 $ 1,638 $ 866 (1) 2024 quarterly core earnings by segment, and 1Q24 total core earnings have been updated to align with the presentation of GMT in 2025, with a corresponding offset in items excluded from core earnings. See section A7 "Global Minimum Tax (GMT)" in our 1Q25 MD&A for more information. Global Minimum Taxes ("GMT") On June 20, 2024, the Canadian government passed the Global Minimum Tax Act into law. Canada's GMT is applied retroactively to fiscal periods commencing on or after December 31, 2023. As additional local jurisdictions are expected to enact the GMT in 2025, GMT is now recognized in net income in the reporting segments whose earnings are subject to this tax. GMT is reported in both core earnings and items excluded from core earnings in line with our definition of core earnings in section E3 Non-GAAP and Other Financial Measures of the 1Q25 MD&A. To improve the comparability of results between 2025 and 2024, we have updated certain 2024 non-GAAP and other financial measures to reflect the impact of GMT, including quarterly core earnings, core ROE, core EPS, financial leverage ratio, adjusted book value per common share, new business value, and post-tax CSM net of NCI. For further information and a complete list of the impacted financial measures, please see section A7 "Global Minimum Taxes (GMT)" of the 1Q25 MD&A, which is incorporated by reference. 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 interest, taxes, depreciation and amortization ("core EBITDA"); core expenses; adjusted book value; post-tax contractual service margin; post-tax contractual service margin net of NCI ("post-tax CSM net of NCI"); and core revenue. 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"); 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"), CSM, and new business CSM. Other specified financial measures include NBV; APE sales; gross flows; net flows; average assets under management and administration ("average AUMA"); 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 1Q25 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 1Q25 MD&A, which is incorporated by reference. Reconciliation of core earnings to net income attributed to shareholders – 1Q25($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated) 1Q25 Asia Canada U.S. Global WAM Corporate and Other Total Income (loss) before income taxes $ 870 $ 305 $ (731) $ 528 $ (273) $ 699 Income tax (expenses) recoveries Core earnings (101) (89) (84) (86) 29 (331) Items excluded from core earnings (30) 30 246 2 7 255 Income tax (expenses) recoveries (131) (59) 162 (84) 36 (76) Net income (post-tax) 739 246 (569) 444 (237) 623 Less: Net income (post-tax) attributed to Non-controlling interests 67 - - 1 (2) 66 Participating policyholders 48 24 - - - 72 Net income (loss) attributed to shareholders (post-tax) 624 222 (569) 443 (235) 485 Less: Items excluded from core earnings (post-tax) Market experience gains (losses) (77) (152) (930) (11) (162) (1,332) Changes in actuarial methods and assumptions that flow directly through income - - - - - - Restructuring charge - - - - - - Reinsurance transactions, tax related items and other (4) - - - 54 50 Core earnings (post-tax) $ 705 $ 374 $ 361 $ 454 $ (127) $ 1,767 Income tax on core earnings (see above) 101 89 84 86 (29) 331 Core earnings (pre-tax) $ 806 $ 463 $ 445 $ 540 $ (156) $ 2,098 Core earnings, CER basis and U.S. dollars – 1Q25($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated) 1Q25 Asia Canada U.S. Global WAM Corporate and Other Total Core earnings (post-tax) $ 705 $ 374 $ 361 $ 454 $ (127) $ 1,767 CER adjustment(1) - - - - - - Core earnings, CER basis (post-tax) $ 705 $ 374 $ 361 $ 454 $ (127) $ 1,767 Income tax on core earnings, CER basis(2) 101 89 84 86 (29) 331 Core earnings, CER basis (pre-tax) $ 806 $ 463 $ 445 $ 540 $ (156) $ 2,098 Core earnings (U.S. dollars) – Asia and U.S. segments Core earnings (post-tax)(3), US $ $ 492 $ 251 CER adjustment US $(1) - - Core earnings, CER basis (post-tax), US $ $ 492 $ 251 (1) The impact of updating foreign exchange rates to that which was used in 1Q25. (2) Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q25. (3) Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for 1Q25. Reconciliation of core earnings to net income attributed to shareholders – 4Q24(1)($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated) 4Q24 Asia Canada U.S. Global WAM Corporate and Other Total Income (loss) before income taxes $ 781 $ 579 $ 112 $ 419 $ 222 $ 2,113 Income tax (expenses) recoveries Core earnings (97) (97) (98) (83) 30 (345) Items excluded from core earnings (59) (20) 89 48 (119) (61) Income tax (expenses) recoveries (156) (117) (9) (35) (89) (406) Net income (post-tax) 625 462 103 384 133 1,707 Less: Net income (post-tax) attributed to Non-controlling interests 18 - - - 4 22 Participating policyholders 24 23 - - - 47 Net income (loss) attributed to shareholders (post-tax) 583 439 103 384 129 1,638 Less: Items excluded from core earnings (post-tax) Market experience gains (losses) (83) 55 (309) (23) 168 (192) Changes in actuarial methods and assumptions that flow directly through income - - - - - - Restructuring charge - (6) - (46) - (52) Reinsurance transactions, tax related items and other 26 - - (6) (45) (25) Core earnings (post-tax) $ 640 $ 390 $ 412 $ 459 $ 6 $ 1,907 Income tax on core earnings (see above) 97 97 98 83 (30) 345 Core earnings (pre-tax) $ 737 $ 487 $ 510 $ 542 $ (24) $ 2,252 (1) This reconciliation and related core earnings reconciliations below have been updated to align with the presentation of GMT in 2025. See section A7 "Global Minimum Taxes (GMT)" in our 1Q25 MD&A for more information. Core earnings, CER basis and U.S. dollars – 4Q24($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated) 4Q24 Asia Canada U.S. Global WAM Corporate and Other Total Core earnings (post-tax) $ 640 $ 390 $ 412 $ 459 $ 6 $ 1,907 CER adjustment(1) 14 - 11 8 2 35 Core earnings, CER basis (post-tax) $ 654 $ 390 $ 423 $ 467 $ 8 $ 1,942 Income tax on core earnings, CER basis(2) 100 97 99 85 (30) 351 Core earnings, CER basis (pre-tax) $ 754 $ 487 $ 522 $ 552 $ (22) $ 2,293 Core earnings (U.S. dollars) – Asia and U.S. segments Core earnings (post-tax)(3), US $ $ 457 $ 294 CER adjustment US $(1) (2) - Core earnings, CER basis (post-tax), US $ $ 455 $ 294 (1) The impact of updating foreign exchange rates to that which was used in 1Q25. (2) Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q25. (3) Core earnings (post-tax) in Canadian $ are translated to US $ using the US $ Statement of Income exchange rate for 4Q24. Reconciliation of core earnings to net income attributed to shareholders – 1Q24(1)($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated) 1Q24 Asia Canada U.S. Global WAM Corporate and Other Total Income (loss) before income taxes $ 594 $ 381 $ (154) $ 426 $ 5 $ 1,252 Income tax (expenses) recoveries Core earnings (98) (91) (103) (66) 28 (330) Items excluded from core earnings (52) 8 149 5 (60) 50 Income tax (expenses) recoveries (150) (83) 46 (61) (32) (280) Net income (post-tax) 444 298 (108) 365 (27) 972 Less: Net income (post-tax) attributed to Non-controlling interests 55 - - - - 55 Participating policyholders 26 25 - - - 51 Net income (loss) attributed to shareholders (post-tax) 363 273 (108) 365 (27) 866 Less: Items excluded from core earnings (post-tax) Market experience gains (losses) (250) (91) (534) 6 90 (779) Changes in actuarial methods and assumptions that flow directly through income - - - - - - Restructuring charge - - - - - - Reinsurance transactions, tax related items and other (13) - (26) 10 (36) (65) Core earnings (post-tax) $ 626 $ 364 $ 452 $ 349 $ (81) $ 1,710 Income tax on core earnings (see above) 98 91 103 66 (28) 330 Core earnings (pre-tax) $ 724 $ 455 $ 555 $ 415 $ (109) $ 2,040 (1) This reconciliation and related core earnings reconciliations below have been updated to align with the presentation of GMT in 2025. See section A7 "Global Minimum Taxes (GMT)" in our 1Q25 MD&A for more information. Core earnings, CER basis and U.S. dollars – 1Q24($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated) 1Q24 Asia Canada U.S. Global WAM Corporate and Other Total Core earnings (post-tax) $ 626 $ 364 $ 452 $ 349 $ (81) $ 1,710 CER adjustment(1) 33 - 29 16 2 80 Core earnings, CER basis (post-tax) $ 659 $ 364 $ 481 $ 365 $ (79) $ 1,790 Income tax on core earnings, CER basis(2) 104 91 109 68 (28) 344 Core earnings, CER basis (pre-tax) $ 763 $ 455 $ 590 $ 433 $ (107) $ 2,134 Core earnings (U.S. dollars) – Asia and U.S. segments Core earnings (post-tax)(3), US $ $ 465 $ 335 CER adjustment US $(1) (6) - Core earnings, CER basis (post-tax), US $ $ 459 $ 335 (1) The impact of updating foreign exchange rates to that which was used in 1Q25. (2) Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q25. (3) Core earnings (post-tax) in Canadian $ are translated to US $ using the US $ Statement of Income exchange rate for 1Q24. Core earnings available to common shareholders(1)($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated) Quarterly Results Full Year Results 1Q25 4Q24 3Q24 2Q24 1Q24 2024 Core earnings $ 1,767 $ 1,907 $ 1,828 $ 1,737 $ 1,710 $ 7,182 Less: Preferred share dividends and other equity distributions 57 101 56 99 55 311 Core earnings available to common shareholders 1,710 1,806 1,772 1,638 1,655 6,871 CER adjustment(2) - 35 68 68 80 251 Core earnings available to common shareholders, CER basis $ 1,710 $ 1,841 $ 1,840 $ 1,706 $ 1,735 $ 7,122 (1) 2024 reconciliations have been updated to align with the presentation of GMT in 2025 (2) The impact of updating foreign exchange rates to which was used in 1Q25. Core ROE(1)($ millions, unless otherwise stated) Quarterly Results Full Year Results 1Q25 4Q24 3Q24 2Q24 1Q24 2024 Core earnings available to common shareholders $ 1,710 $ 1,806 $ 1,772 $ 1,638 $ 1,655 $ 6,871 Annualized core earnings available to common shareholders (post-tax) $ 6,935 $ 7,185 $ 7,049 $ 6,588 $ 6,656 $ 6,871 Average common shareholders' equity (see below) $ 44,394 $ 43,613 $ 42,609 $ 41,947 $ 40,984 $ 42,288 Core ROE (annualized) (%) 15.6 % 16.5 % 16.6 % 15.7 % 16.2 % 16.2 % Average common shareholders' equity Total shareholders' and other equity $ 51,135 $ 50,972 $ 49,573 $ 48,965 $ 48,250 $ 50,972 Less: Preferred shares and other equity 6,660 6,660 6,660 6,660 6,660 6,660 Common shareholders' equity $ 44,475 $ 44,312 $ 42,913 $ 42,305 $ 41,590 $ 44,312 Average common shareholders' equity $ 44,394 $ 43,613 $ 42,609 $ 41,947 $ 40,984 $ 42,288 (1) 2024 reconciliations have been updated to align with the presentation of GMT in 2025. See section A7 "Global Minimum Taxes (GMT)" in our 1Q25 MD&A for more information. CSM and post-tax CSM information(1)($ millions pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated) As at Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 CSM $ 23,713 $ 23,425 $ 22,213 $ 21,760 $ 22,075 Less: CSM for NCI 1,417 1,298 1,283 1,002 986 CSM, net of NCI $ 22,296 $ 22,127 $ 20,930 $ 20,758 $ 21,089 CER adjustment(2) - 157 770 1,034 1,027 CSM, net of NCI, CER basis $ 22,296 $ 22,284 $ 21,700 $ 21,792 $ 22,116 CSM by segment Asia $ 15,904 $ 15,540 $ 14,715 $ 13,456 $ 13,208 Asia NCI 1,417 1,298 1,283 1,002 986 Canada 4,052 4,109 4,036 3,769 4,205 U.S. 2,329 2,468 2,171 3,522 3,649 Corporate and Other 11 10 8 11 27 CSM $ 23,713 $ 23,425 $ 22,213 $ 21,760 $ 22,075 CSM, CER adjustment(2) Asia $ - $ 158 $ 630 $ 854 $ 804 Asia NCI - 10 37 58 62 Canada - - - - - U.S. - - 140 181 224 Corporate and Other - - - - - Total $ - $ 168 $ 807 $ 1,093 $ 1,090 CSM, CER basis Asia $ 15,904 $ 15,698 $ 15,345 $ 14,310 $ 14,012 Asia NCI 1,417 1,308 1,320 1,060 1,048 Canada 4,052 4,109 4,036 3,769 4,205 U.S. 2,329 2,468 2,311 3,703 3,873 Corporate and Other 11 10 8 11 27 Total CSM, CER basis $ 23,713 $ 23,593 $ 23,020 $ 22,853 $ 23,165 Post-tax CSM CSM $ 23,713 $ 23,425 $ 22,213 $ 21,760 $ 22,075 Marginal tax rate on CSM (3,929) (3,928) (3,719) (3,718) (3,820) Post-tax CSM $ 19,784 $ 19,497 $ 18,494 $ 18,042 $ 18,255 CSM, net of NCI $ 22,296 $ 22,127 $ 20,930 $ 20,758 $ 21,089 Marginal tax rate on CSM net of NCI (3,772) (3,774) (3,566) (3,608) (3,712) Post-tax CSM net of NCI $ 18,524 $ 18,353 $ 17,364 $ 17,150 $ 17,377 (1) 2024 reconciliations have been updated to align with the presentation of GMT in 2025. See section A7 "Global Minimum Taxes (GMT)" in our 1Q25 MD&A for more information. (2) The impact of reflecting CSM and CSM net of NCI using the foreign exchange rates for the Statement of Financial Position in effect for 1Q25. 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 Full Year Results 1Q25 4Q24 3Q24 2Q24 1Q24 2024 New business CSM Hong Kong $ 316 $ 299 $ 254 $ 200 $ 168 $ 921 Japan 81 66 86 90 48 290 Asia Other(2) 318 221 253 188 275 937 International High Net Worth 187 Mainland China 270 Singapore 391 Vietnam 17 Other Emerging Markets 72 Asia 715 586 593 478 491 2,148 Canada 91 116 95 76 70 357 U.S. 101 140 71 74 97 382 Total new business CSM $ 907 $ 842 $ 759 $ 628 $ 658 $ 2,887 New business CSM, CER adjustment(3) Hong Kong - $ 8 $ 13 $ 10 $ 9 $ 40 Japan - 1 3 6 3 13 Asia Other(2) - 4 9 9 16 38 International High Net Worth 9 Mainland China 11 Singapore 14 Vietnam - Other Emerging Markets 4 Asia - 13 25 25 28 91 Canada - - - - - - U.S. - 4 3 3 7 17 Total new business CSM $ - $ 17 $ 28 $ 28 $ 35 $ 108 New business CSM, CER basis Hong Kong $ 316 $ 307 $ 267 $ 210 $ 177 $ 961 Japan 81 67 89 96 51 303 Asia Other(2) 318 225 262 197 291 975 International High Net Worth 196 Mainland China 281 Singapore 405 Vietnam 17 Other Emerging Markets 76 Asia 715 599 618 503 519 2,239 Canada 91 116 95 76 70 357 U.S. 101 144 74 77 104 399 Total new business CSM, CER basis $ 907 $ 859 $ 787 $ 656 $ 693 $ 2,995 (1) New business CSM is net of NCI. (2) 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. (3) The impact of updating foreign exchange rates to that which was used in 1Q25. 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 Full Year Results 1Q25 4Q24 3Q24 2Q24 1Q24 2024 Net income (loss) attributed to shareholders: Asia $ 624 $ 583 $ 827 $ 582 $ 363 $ 2,355 Canada 222 439 430 79 273 1,221 U.S. (569) 103 5 135 (108) 135 Global WAM 443 384 498 350 365 1,597 Corporate and Other (235) 129 79 (104) (27) 77 Total net income (loss) attributed to shareholders 485 1,638 1,839 1,042 866 5,385 Preferred share dividends and other equity distributions (57) (101) (56) (99) (55) (311) Common shareholders' net income (loss) $ 428 $ 1,537 $ 1,783 $ 943 $ 811 $ 5,074 CER adjustment(1) Asia $ - $ 10 $ 48 $ 25 $ 35 $ 118 Canada - (8) - - 6 (2) U.S. - 4 10 7 (7) 14 Global WAM - 9 23 17 21 70 Corporate and Other - 6 2 (4) (2) 2 Total net income (loss) attributed to shareholders - 21 83 45 53 202 Preferred share dividends and other equity distributions - - - - - - Common shareholders' net income (loss) $ - $ 21 $ 83 $ 45 $ 53 $ 202 Net income (loss) attributed to shareholders, CER basis Asia $ 624 $ 593 $ 875 $ 607 $ 398 $ 2,473 Canada 222 431 430 79 279 1,219 U.S. (569) 107 15 142 (115) 149 Global WAM 443 393 521 367 386 1,667 Corporate and Other (235) 135 81 (108) (29) 79 Total net income (loss) attributed to shareholders, CER basis 485 1,659 1,922 1,087 919 5,587 Preferred share dividends and other equity distributions, CER basis (57) (101) (56) (99) (55) (311) Common shareholders' net income (loss), CER basis $ 428 $ 1,558 $ 1,866 $ 988 $ 864 $ 5,276 Asia net income attributed to shareholders, U.S. dollars Asia net income (loss) attributed to shareholders, US $(2) $ 435 $ 417 $ 606 $ 424 $ 270 $ 1,717 CER adjustment, US $(1) - (4) 4 (1) 7 6 Asia net income (loss) attributed to shareholders, U.S. $, CER basis(1) $ 435 $ 413 $ 610 $ 423 $ 277 $ 1,723 Net income (loss) attributed to shareholders (pre-tax) Net income (loss) attributed to shareholders (post-tax) $ 485 $ 1,638 $ 1,839 $ 1,042 $ 866 $ 5,385 Tax on net income attributed to shareholders 47 388 229 238 247 1,102 Net income (loss) attributed to shareholders (pre-tax) 532 2,026 2,068 1,280 1,113 6,487 CER adjustment(1) - 36 60 60 42 198 Net income (loss) attributed to shareholders (pre-tax), CER basis $ 532 $ 2,062 $ 2,128 $ 1,340 $ 1,155 $ 6,685 (1) The impact of updating foreign exchange rates to that which was used in 1Q25. (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(1)($ millions) As at Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 ($ millions) Common shareholders' equity $ 44,475 $ 44,312 $ 42,913 $ 42,305 $ 41,590 Post-tax CSM, net of NCI 18,524 18,353 17,364 17,150 17,377 Adjusted book value $ 62,999 $ 62,665 $ 60,277 $ 59,455 $ 58,967 (1) 2024 reconciliations have been updated to align with the presentation of GMT in 2025. See section A7 "Global Minimum Taxes (GMT)" in our 1Q25 MD&A for more information. 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 Full Year Results 1Q25 4Q24 3Q24 2Q24 1Q24 2024 Global WAM core earnings (post-tax) $ 454 $ 459 $ 479 $ 386 $ 349 $ 1,673 Add back taxes, acquisition costs, other expenses and deferred sales commissions Core income tax (expenses) recoveries (see above) 86 83 26 59 66 234 Amortization of deferred acquisition costs and other depreciation 46 49 48 49 42 188 Amortization of deferred sales commissions 22 20 19 19 20 78 Core EBITDA $ 608 $ 611 $ 572 $ 513 $ 477 $ 2,173 CER adjustment(1) - 11 21 18 21 71 Core EBITDA, CER basis $ 608 $ 622 $ 593 $ 531 $ 498 $ 2,244 (1) The impact of updating foreign exchange rates to that which was used in 1Q25. Core EBITDA margin and core revenue($ millions, unless otherwise stated) Quarterly Results Full Year Results 1Q25 4Q24 3Q24 2Q24 1Q24 2024 Core EBITDA margin Core EBITDA $ 608 $ 611 $ 572 $ 513 $ 477 $ 2,173 Core revenue $ 2,140 $ 2,140 $ 2,055 $ 1,948 $ 1,873 $ 8,016 Core EBITDA margin 28.4 % 28.6 % 27.8 % 26.3 % 25.5 % 27.1 % Global WAM core revenue Other revenue per financial statements $ 1,986 $ 2,003 $ 1,928 $ 1,849 $ 1,808 $ 7,588 Less: Other revenue in segments other than Global WAM 11 (2) 53 40 58 149 Other revenue in Global WAM (fee income) $ 1,975 $ 2,005 $ 1,875 $ 1,809 $ 1,750 $ 7,439 Investment income per financial statements $ 4,234 $ 5,250 $ 4,487 $ 4,261 $ 4,251 $ 18,249 Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities per financial statements (992) (622) 1,730 564 538 2,210 Total investment income 3,242 4,628 6,217 4,825 4,789 20,459 Less: Investment income in segments other than Global WAM 3,089 4,550 5,991 4,687 4,649 19,877 Investment income in Global WAM $ 153 $ 78 $ 226 $ 138 $ 140 $ 582 Total other revenue and investment income in Global WAM $ 2,128 $ 2,083 $ 2,101 $ 1,947 $ 1,890 $ 8,021 Less: Total revenue reported in items excluded from core earnings Market experience gains (losses) (14) (28) 33 (9) 8 4 Revenue related to integration and acquisitions 2 (29) 13 8 9 1 Global WAM core revenue $ 2,140 $ 2,140 $ 2,055 $ 1,948 $ 1,873 $ 8,016 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 plans for the return of capital released from reinsurance transactions through share buybacks 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); 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 and 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 operations; geopolitical uncertainty, including international conflicts and trade disputes; 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; our inability to withdraw cash from subsidiaries; and the fact that the amount and timing of any future common share repurchases will depend on the earnings, cash requirements and financial condition of Manulife, market conditions, capital requirements (including under LICAT capital standards), common share issuance requirements, applicable law and regulations (including Canadian and U.S. securities laws and Canadian insurance company regulations), and other factors deemed relevant by Manulife, and may be subject to regulatory approval or conditions. 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. SOURCE Manulife Financial Corporation WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Manulife Reports First Quarter 2025 Results

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