Diapos (en anglais) (MFC QRS 2024 Q3 EN)
Third Quarter 2024
Financial & Operating Results
Caution regarding forward-looking statements
From time to time, Manulife makes written and/or oral forward-looking statements, including in this presentation. 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, the Company's strategic priorities and targets for its highest potential businesses, net promoter score, straight-through- processing, ongoing expense efficiency, portfolio optimization, employee engagement, expected long-term returns on alternative long-duration assets ("ALDA"), its medium-term financial and operating targets and also relate to, among other things, our objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and can generally be identified by the use of words such as "may", "will", "could", "should", "would", "likely", "suspect", "outlook", "expect", "intend", "estimate", "anticipate", "believe", "plan", "forecast", "objective", "seek", "aim", "continue", "goal", "restore", "embark" and "endeavour" (or the negative thereof) and words and expressions of similar import, and include statements concerning possible or assumed future results. Although we believe that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements and they should not be interpreted as confirming market or analysts' expectations in any way.
Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from expectations include but are not limited to: general business and economic conditions (including but not limited to the performance, volatility and correlation of equity markets, interest rates, credit and swap spreads, inflation rates, currency rates, investment losses and defaults, market liquidity and creditworthiness of guarantors, reinsurers and counterparties); the ongoing prevalence of COVID-19, including any variants, as well as actions that have been, or may be taken by governmental authorities in response to COVID-19, including the impact 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 amount of contractual service margin recognized for service provided; the accuracy of estimates relating to morbidity, mortality and policyholder behaviour; the accuracy of other estimates used in applying accounting policies, actuarial methods and embedded value methods; our ability to implement effective hedging strategies and unforeseen consequences arising from such strategies; our ability to source appropriate assets to back our long-dated liabilities; level of competition and consolidation; our ability to market and distribute products through current and future distribution channels; unforeseen liabilities or asset impairments arising from acquisitions and dispositions of businesses; the realization of losses arising from the sale of investments classified as 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 or divestitures, and our ability to complete transactions; 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 in our 3Q24 Management's Discussion and Analysis under "Risk Management and Risk Factors Update" and "Critical Actuarial and Accounting Policies", in our 2023 Management's Discussion and Analysis under "Risk Management and Risk Factors" and "Critical Actuarial and Accounting Policies", and in the "Risk Management" note to the Consolidated Financial Statements in our most recent annual and interim reports and elsewhere in our filings with Canadian and
The forward-looking statements in this presentation 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.
2
Conference call participants
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President & Chief Executive Officer. |
President & CEO, Global Wealth and Asset Management |
|
|
Global Head of Strategy & Inforce Management |
Chief Financial Officer |
|
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Chief Actuary |
President & CEO, |
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President & CEO, |
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Trevor Kreel |
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Chief Investment Officer |
President & CEO, Manulife Asia |
3
Agenda |
• Overview and strategic update |
|
• Financial and operating results
• Question & Answer session
4
Overview and strategic update
President & Chief Executive Officer
5
Continued to deliver strong results in 3Q24
Growth |
Profitability |
Core EPS |
Balance sheet |
APE sales1 |
Core EPS1,3 |
excl. GMT impact1 |
Adjusted book value per share3 |
▲40% |
▲7% |
▲11% |
▲14% |
New business CSM1 |
EPS1 |
Book value per share |
|
▲47% |
▲91% |
▲9% |
|
New business value1 |
Core ROE3 |
Financial leverage ratio3 |
|
▲39% |
16.6% |
23.5% |
|
Global WAM net flows2 |
ROE |
MLI's LICAT ratio4 |
|
|
16.6% |
137% |
6 Note: All changes reflect 3Q24 results compared with 3Q23 results. All footnotes are on slide 36.
Strong execution is driving growth and generating value for shareholders
Core EPS1
(C$)
+12%
Core ROE1
(%)
+0.6 pps
Adjusted book value per share2
(C$)
CSM balance per common share2 Book value per common share
+14%
34.97
30.67
10.57
8.25
2.55
2.84
15.7 |
16.3 |
3Q23 |
3Q24 |
||||
YTD |
YTD |
||||
EPS1 |
1.76 |
1.97 |
|||
+11% |
|||||
3Q23 |
3Q24 |
||||||
YTD |
YTD |
||||||
ROE |
10.8 |
11.3 |
|||||
+0.5 pps |
|||||||
22.42 24.40
3Q23 3Q24
7 Note: All footnotes are on slide 36.
Making strong progress on our digital priorities
Delivering record high customer experience
Scaling and driving impact with GenAI
11 |
24 |
Use cases |
Expected use cases |
deployed YTD |
deployed by year-end |
NPS3
25
+24 STP4
89%
+21 pps
100% |
>5% |
|
|
Higher repurchase rate from |
|
sales scripting tool |
successful pilot |
|
% |
% |
|
North American15contact centre |
Average12handle time |
|
agents enabled with GenAI tools1 |
reduction on calls2 |
2017 |
3Q24 |
2018 |
3Q24 |
Baseline |
Baseline |
YTD |
Generating significant value from
Digital, Customer Leadership ("DCL")
Global DCL benefits5 |
~2.5x |
|
(C$ millions)
500
185
2023 |
2024 |
Actual |
Forecast |
8 Note: See "Caution regarding forward-looking statements" above. All footnotes are on slide 36.
Financial and operating results
Chief Financial Officer
9
APE sales1
(C$ millions)
+40%
2,347
132
343
1,657
106
431
1,872
1,120
New business CSM2
(C$ millions)
+47%
759
71
95
507
54
51
593
402
New business value1
(C$ millions)
+39%
843
45
143
600
33
153
655
414
Global WAM net flows1
(C$ billions)
Retirement excl. large client redemption
Retail
Institutional
Retirement large client redemption
5.2
0.6
1.4
3.9
2.8
(0.2) 0.7
(4.8)
(0.8)
3Q23 |
3Q24 |
3Q23 |
3Q24 |
3Q23 |
3Q24 |
3Q23 3Q24
10 Note: All footnotes are on slide 36.
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