shareholder report q2 2024

Second Quarter Report to Shareholders

Three and six months ended

June 30, 2024

Manulife Financial Corporation

Manulife Financial Corporation ("Manulife" or the "Company") reported its second quarter results for the period ended June 30, 2024, delivering positive momentum in core earnings, new business and book value growth.

Key highlights for the second quarter of 2024 ("2Q24") include:

• Core earnings1 of $1.7 billion, up 6% on a constant exchange rate basis2 from the second quarter of 2023 ("2Q23")
• Net income attributed to shareholders of $1.0 billion, in-line with 2Q23
• Core EPS3 of $0.91, up 9%2 from 2Q23. EPS of $0.52, up 1%2 from 2Q23
• Excluding the impact of Global Minimum Taxes ("GMT")4, core EPS3 was $0.94, up 12%2 from 2Q23
• Core ROE3 of 15.7% and ROE of 9.0%
• LICAT ratio5 of 139%
• APE sales up 17%6, new business CSM up 6%2 and new business value ("NBV") up 23%6 from 2Q237
• Global Wealth and Asset Management net inflows6 of $0.1 billion, down from $2.2 billion in 2Q23
• Bought back 31 million, or $1.1 billion worth of common shares as of July 31, 2024, and plan to buy back the maximum 90 million shares through the current NCIB, representing a capital retuof more than $3 billion8

"At our Investor Day in June, we communicated our goals of raising the bar on our financial targets. We are pleased to demonstrate continued positive momentum in the second quarter, with core EPS and new business value growth of 9% and 23%, respectively. As part of our transformation toward a higher retuand lower risk business, we are proud to have closed the largest UL reinsurance transaction in Canada9 and the acquisition of CQS. Momentum also continued in our growth engines, with Asia delivering strong growth in core earnings, new business CSM and new business value margin6 year-over-year, and Global WAM delivering positive net flows and an improved core EBITDA margin3. We continue to demonstrate that we have a strong track record of execution, and I am confident about the future and our ability to execute against our strategy and deliver value to our shareholders."

• Roy Gori, Manulife President & Chief Executive Officer

"Adjusted book value per common share3 continued to grow and was up 15% year-over-year. Core ROE of 15.7% in the second quarter reflected strong profitability despite the impact of GMT. Our capital position remained strong with a LICAT ratio of 139%. We have repurchased more than 31 million common shares and are planning on buying back the full 90 million shares under our current program, representing a capital retuof over $3 billion."

1. • Colin Simpson, Manulife Chief Financial Officer
2. 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" in our 2Q24 Management's Discussion and Analysis ("2Q24 MD&A").
3. Percentage growth / declines in core earnings, diluted core earnings per common share ("core EPS"), diluted earnings (loss) per share ("EPS"), core EPS excluding the impact of GMT, and new business contractual service margin net of NCI ("new business CSM") are stated on a constant exchange rate basis and are non-GAAP ratios.
4. Core EPS, core EPS excluding the impact of GMT, core ROE, core EBITDA margin, and adjusted book value per common share ("adjusted BV per common share") are non-GAAP ratios.
5. On June 20, 2024, Canada enacted the Global Minimum Tax Act. The impact was reflected in Corporate & Other in situations where GMT was not substantively enacted in local jurisdictions where we operate as of June 30, 2024.
6. Life Insurance Capital Adequacy Test ("LICAT") ratio of The Manufacturers Life Insurance Company ("MLI") as at June 30, 2024. LICAT ratio is disclosed under the Office of the Superintendent of Financial Institutions Canada's ("OSFI's") Life Insurance Capital Adequacy Test Public Disclosure Requirements guideline.
7. For more information on annualized premium equivalent ("APE") sales, NBV, Global Wealth and Asset Management ("Global WAM") net flows, and new business value margin ("NBV margin"), see "Non-GAAP and other financial measures" in our 2Q24 MD&A. Percentage growth/decline in APE sales, NBV and net flows are stated on a constant exchange rate basis.
8. Refer to "Results at a Glance" for 2Q24 and 2Q23 results.
9. NCIB stands for Normal Course Issuer Bid. The estimated capital retuis calculated based on MFC share price as of market close on July 31, 2024. See "Caution regarding forward-looking statements" below.
10. Also referred to as the RGA reinsurance transaction.

Results at a Glance

Results by Segment

1. Percentage growth / declines in net income attributed to shareholders is stated on a constant exchange rate basis and is a non-GAAP ratio.
2. For more information on gross flows and average asset under management and administration ("average AUMA"), see "Non-GAAP and other financial measures" in our 2Q24 MD&A. Percentage growth/decline in gross flows and average AUMA are stated on a constant exchange rate basis.
3. Financial leverage ratio is a non-GAAP ratio.

Strategic Highlights

We are expanding our customer reach through strategic partnerships and new product offerings

In Global WAM, we completed the acquisition of CQS, the U.K.-basedmulti-sector alternative credit manager, which we have co-branded as Manulife | CQS Investment Management and have leveraged these expanded capabilities to launch the John Hancock Multi Asset Credit Fund in U.S. Retail. This fund is a strong addition to our growing lineup of liquid and semi-liquid alternative offerings and our larger credit franchise.

In the U.S., we announced a strategic partnership with Annexus - one of the nation's leading independent product design and distribution companies - to expand our portfolio of indexed account offerings and reach a wider market with our Protection Indexed Universal Life solution.

We are deploying Generative AI and delivering on our Digital, Customer Leader strategic priority

In Asia, we enhanced agent-customer interactions through the launch of an innovative Generative AI agent sales tool in Singapore that enables our agents to automatically create personalized engagement strategies to offer customers the right solutions at the right time based on their needs, preferences, demographic data, and transaction histories.

In Global WAM, we piloted our Manulife Mandatory Provident Fund ("MPF") Robo-Advisor in Hong Kong Retirement, a new portal that aims to provide automated portfolio insights and personalized investment tips to our MPF members. This initiative is part of our ongoing commitment to enhancing customer experiences in MPF investment management through digital innovation and strengthening member education.

In Canada, we enhanced our Manulife mobile app for group benefits members by adding mental health features and live support. These services were added in alliance with TELUS Health1 and provide eligible members and their families immediate, personal assistance in navigating the healthcare system to help them understand the types of support available.

In the U.S., we deployed a Generative AI knowledge management chatbot and automated call summarization for our customer service representatives within our Annuities contact center, contributing to an immediate improvement to average handle time. This initiative is part of our continuing efforts to enhance customer experience and streamline processes.

We are helping our customers live longer, healthier, and better lives

In the U.S., we advanced our commitment to provide preventative health screenings to customers and further differentiated our solutions by becoming the first U.S. life insurer to offer discounted and prioritized access to Prenuvo - a whole body MRI scan for the early detection of cancer and other diseases - to eligible John Hancock Vitality members.

In Canada, we released our 2023 Wellness Report which highlighted health trends and challenges that affected Canadian employees of our group benefits plan sponsors. This report supports our plan sponsors with valuable, data-driven insights so they can ensure their plan designs are targeting areas of highest conceto help drive better health outcomes for plan members.

Strong earnings results reflect continued business growth, more than offsetting the impact of GMT and reinsurance transactions2

Core earnings of $1.7 billion in 2Q24, up 6% from 2Q23

Our positive momentum continued in 2Q24 with a 6% increase year-over-year, as strong business growth more than offset the impact of GMT.

• Asia core earnings were up 40%, benefitting from continued business growth momentum and updates to actuarial methods and assumptions in the second half of 2023.

1. Telus Health (Canada) Ltd.
2. See section A1 "Profitability" in our 2Q24 MD&A for more information on notable items attributable to core earnings and net income attributed to shareholders.

• Global WAM core earnings grew 23%, driven by higher fee income from favourable market impacts and positive net flows, and a favourable tax true-up.
• In Canada, strong growth in Group Insurance and favourable net insurance experience contributed to a 7% growth in 2Q24 core earnings.
• In the U.S., adverse net insurance experience and foregone core earnings from the long-term care reinsurance transaction announced in December 2023 resulted in an 11% decrease in 2Q24 core earnings.
• In Corporate and Other, core earnings decreased $138 million, reflecting the impact of GMT, higher interest on allocated capital to operating segments and higher workforce-related expenses.

Net Income attributed to shareholders of $1.0 billion in 2Q24, consistent with 2Q23

Net income was in-line compared with 2Q23, as improved market experience and core earnings growth were offset by a $0.3 billion realized loss due to the sale of debt instruments related to the RGA reinsurance transaction. This realized loss was broadly offset by an associated change in other comprehensive income, resulting in a neutral impact to book value. This, along with lower-than-expected returns on alternative long- duration assets mainly related to private equity and real estate investments, contributed to a net charge in market experience in 2Q24.

Continued momentum in new insurance business results and positive net flows in Global WAM

We delivered another quarter of strong new business growth in our insurance businesses with APE sales and NBV hitting record levels in 2Q24, demonstrating the strength and benefits of our diversified portfolio. Overall, our APE sales, new business CSM and NBV increasedyear-over-yearby 17%, 6% and 23%, respectively.

• Asia continued to generate positive momentum and grew APE sales, new business CSM and NBV by 7%, 10% and 19%, respectively, reflecting higher sales volumes in Japan and Hong Kong in 2Q24. The year-over-year improvement of 3.4 percentage points in NBV margin reflected our pricing discipline and changes in business mix.
• Canada delivered excellent growth and record level NBV this quarter. Compared with 2Q23, APE sales and NBV increased 61% and 50%, respectively, driven by higher sales volumes in all business units, led by a large-case Group Insurance sale. New business CSM was up 33% driven by margin expansion in Individual Insurance and higher sales volumes in segregated fund products.
• In the U.S., APE sales decreased 4% year-over-year with a shift in product mix, while NBV was up 3%. New business CSM decreased 30% due to change in product mix and the impact of higher interest rates.

Global WAM net inflows of $0.1 billion in 2Q24, mainly reflecting the strength in our Institutional business, offset by outflows in our Retirement business. Compared with 2Q23, net inflows was $2.1 billion lower.

• Retirement net outflows of $1.3 billion in 2Q24 compared with net inflows of $0.7 billion in 2Q23, as higher member contributions were more than offset by increased member withdrawals and a large-case retirement plan redemption in the U.S.
• Retail net outflows of $0.1 billion in 2Q24 were in line with 2Q23, as increased demand for investment products amid equity market recovery and improved investor sentiment was offset by higher redemptions.
• Institutional Asset Management net inflows of $1.4 billion in 2Q24 compared with net inflows of $1.6 billion in 2Q23 as net inflows from CQS were more than offset by higher redemptions in fixed income mandates and lower sales in alternative mandates.

Organic Contractual Service Margin ("CSM") growth contributing to higher CSM balance

CSM1 was $20,758 million as at June 30, 2024

CSM increased $318 million compared with December 31, 2023. Organic CSM movement contributed $453 million of the increase in the first half of 2024, primarily driven by the impact of new business and interest accretion, partially offset by amortization recognized in core earnings and adverse insurance experience. Inorganic CSM movement was a decrease of $135 million for the same period, primarily driven by the impact of reinsurance transactions, partially offset by favourable impacts of changes in foreign currency exchange rates and equity market performance. Post-tax CSM net of NCI2 was $18,290 million as at June 30, 2024.

1. Net of non-controlling interests.
2. Post-taxcontractual service margin net of NCI ("post-tax CSM net of NCI") is a non-GAAP financial measure. For more information on non-GAAP and other financial measures, see "Non-GAAP and other financial measures" in our 2Q24 MD&A.

MANAGEMENT'S DISCUSSION AND ANALYSIS

This Management's Discussion and Analysis ("MD&A") is current as of August 7, 2024, unless otherwise noted. This MD&A should be read in conjunction with our unaudited Interim Consolidated Financial Statements for the three and six months ended June 30, 2024 and the MD&A and audited Consolidated Financial Statements contained in our 2023 Annual Report.

For further information relating to our risk management practices and risk factors affecting the Company, see "Risk Management and Risk Factors" and "Critical Actuarial and Accounting Policies" in the MD&A in our 2023 Annual Report ("2023 MD&A") and the "Risk Management" note to the Consolidated Financial Statements in our most recent annual and interim reports.

In this MD&A, the terms "Company", "Manulife", "we" and "our" mean Manulife Financial Corporation ("MFC") and its subsidiaries. All amounts are reported in Canadian dollars, unless otherwise indicated. Any information contained in, or otherwise accessible through, websites mentioned in this MD&A does not form a part of this document.

CONTENTS

1. This item is a non-GAAP financial measure. See "Non-GAAP and other financial measures" below for more information.
2. This item is a non-GAAP ratio. See "Non-GAAP and other financial measures" below for more information.

Quarterly profitability

Manulife's net income attributed to shareholders was $1,042 million in the second quarter of 2024 ("2Q24") compared with $1,025 million in the second quarter of 2023 ("2Q23"). Net income attributed to shareholders is comprised of core earnings (consisting of items we believe reflect the underlying earnings capacity of the business), which amounted to $1,737 million in 2Q24 compared with $1,637 million in 2Q23, and items excluded from core earnings, which amounted to a net charge of $695 million in 2Q24 compared with a net charge of $612 million in 2Q23. The effective tax rate on net income (loss) attributed to shareholders was 19% in 2Q24 compared with 19% in 2Q23.

Net income attributed to shareholders in 2Q24 increased $17 million compared with 2Q23, as the impact of improved market experience and core earnings was largely offset by a net loss of $239 million from the reinsurance transaction with RGA Canada1 ("RGA Reinsurance Transaction"), primarily related to the sale of fair value through other comprehensive income ("FVOCI") debt instruments (there is an offsetting change in other comprehensive income ("OCI") attributed to shareholders resulting in a neutral impact to book value), and a charge related to the adoption of Global Minimum Tax Act in 2Q24. Market experience was a net charge of $665 million in 2Q24 primarily reflecting lower-than-expected returns on alternative long duration assets ("ALDA") largely related to private equity and real estate investments and the net loss from above-noted RGA Reinsurance Transaction, partially offset by a gain from derivatives and hedge accounting ineffectiveness.

Core earnings increased $100 million or 6% on a constant exchange rate basis2 compared with 2Q23. The increase in core earnings compared with 2Q23 was driven by higher core earnings in Global Wealth and Asset Management ("Global WAM") reflecting an increase in net fee income from higher average assets under management and administration3 ("average AUMA") and positive net flows3, along with disciplined expense management, growth in our insurance business, the impact of updates to actuarial methods and assumptions in the second half of 2023, and a tax true-up in Global WAM. This was partially offset by a charge of $46 million related to the adoption of the Global Minimum Tax Act, which was enacted in Canada in 2Q24, and higher workforce-related costs. In addition, core earnings reflected improved net insurance experience in Canada and Asia, partially offset by adverse net experience in the U.S. The reinsurance transaction with Global Atlantic ("GA Reinsurance Transaction") also led to an unfavourable core earnings variance of $25 million, attributable to the

1. RGA Life Reinsurance Company of Canada.
2. Percentage growth / declines in core earnings, pre-tax core earnings, core expenses, general expenses, contractual service margin ("CSM") net of non- controlling interests ("NCI"), new business contractual service margin ("new business CSM"), assets under management and administration ("AUMA"), assets under management ("AUM"), core earnings before interest, taxes, depreciation and amortization ("core EBITDA"), and Manulife Bank average net lending assets are stated on a constant exchange rate basis, a non-GAAP ratio. See "Non-GAAP and other financial measures" below for more information.
3. For more information on this metric, see "Non-GAAP and other financial measures" below.

impact on expected earnings on insurance contracts, expected investment earnings and insurance experience. The RGA Reinsurance Transaction led to a favourable core earnings variance of $1 million.

Year-to-date profitability

Net income attributed to shareholders for the six months ended June 30, 2024 was $1,908 million compared with $2,431 million for the six months ended June 30, 2023. Year-to-date core earnings amounted to $3,491 million in 2024 compared with $3,168 million in the same period of 2023, and items excluded from year-to-date core earnings amounted to a net charge of $1,583 million in 2024 compared with a net charge of $737 million in the same period of 2023. The effective tax rate on year-to-date net income (loss) attributed to shareholders was 20% in 2024 compared with 18% for the same period in 2023.

Year-to-date net income attributed to shareholders in 2024 decreased $523 million compared with 2023 as the impact of a net loss of $1,002 million from the GA and RGA Reinsurance Transactions, primarily related to market experience from the sale of FVOCI debt instruments (there is an offsetting change in OCI attributed to shareholders resulting in a neutral impact to book value) and a charge related to the adoption of the Global Minimum Tax Act in 2Q24, was partially offset by improved core earnings and other market experience. Market experience was a net charge of $1,444 million in 2024 primarily reflecting the net loss from above-noted GA and RGA Reinsurance Transactions, lower-than-expected returns on ALDA largely related to real estate and private equity investments, partially offset by higher-than-expected returns on public equities and a gain from derivatives and hedge accounting ineffectiveness.

Year-to-date core earnings in 2024 increased $323 million or 11% compared with the same period of 2023. The increase in core earnings compared with 2023 was driven by higher core earnings in Global WAM reflecting an increase in net fee income from higher average AUMA and positive net flows, along with disciplined expense management, strong growth in our insurance business, the impact of updates to actuarial methods and assumptions in the second half of 2023, and a tax true-up in Global WAM. The provision for expected credit loss ("ECL") was a modest net release in 2024 compared with a net charge in 2023. This was partially offset by a charge of $46 million related to the adoption of the Global Minimum Tax Act, which was enacted in Canada in 2Q24, and higher workforce-related costs primarily reflecting strong TSR1 performance relative to peers and business performance. In addition, year-to-date core earnings reflected improved net insurance experience in Canada and Asia, partially offset by adverse net experience in the U.S. The GA Reinsurance Transaction also led to an unfavourable year-to-date core earnings variance of $43 million, attributable to the impact on expected earnings on insurance contracts, expected investment earnings, the change in ECL, and insurance experience. The RGA Reinsurance Transaction also led to a favourable year-to-date core earnings variance of $1 million.

Core earnings by segment is presented in the table below.

1 Total Shareholder Return.

The table below presents net income attributed to shareholders consisting of core earnings and items excluded from core earnings.

1. Market experience was a net charge of $665 million in 2Q24, primarily driven by lower-than-expected returns on ALDA mainly related to private equity and real estate investments, net realized losses from the sale of debt instruments which are classified as FVOCI, of which $273 million was related to the transfer of assets with respect to the RGA Reinsurance Transaction, and losses from unfavourable foreign exchange impacts. These were partially offset by a gain from derivatives and hedge accounting ineffectiveness and a modest gain from higher-than-expected returns on public equity. Market experience was a net charge of $570 million in 2Q23 primarily driven by lower-than-expected returns on ALDA mainly related to real estate and energy investments, changes in foreign currency exchange rates, net realized losses from the sale of debt instruments which are classified as FVOCI and a modest net charge from derivatives and hedge accounting ineffectiveness. These were partially offset by higher-than-expected returns on public equity.
2. The 2Q24 net charge of $30 million mainly included a charge of $43 million related to the acquisition of CQS, a charge of $42 million related to Global Minimum Taxes ("GMT") (an additional $46 million charge was recorded in core earnings), which was enacted in Canada in the second quarter and a charge of $25 million related to a reinsurance recapture in Asia. This was partially offset by a gain of $34 million related to the RGA Reinsurance transaction in Canada and other tax related true-ups of $44 million. The 2Q23 net charge of $42 million mainly included a provision for the cancellation of certain policies in our Vietnam operation of $46 million.

Net income attributed to shareholders by segment is presented in the following table.

Expense efficiency ratio

The expense efficiency ratio is a financial measure which we use to measure progress on our strategic priority of expense efficiency and reflects expenses that flow directly through core earnings ("core expenses"). Core expenses include core general expenses, directly attributable maintenance expenses and directly attributable acquisition expenses for products measured using the premium allocation approach ("PAA"). Core expenses exclude certain expenses directly attributable to acquiring new business that are capitalized into the CSM instead of flowing directly through core earnings.

Our focus on expense efficiency has enabled us to drive the benefits of scale across our businesses. We believe there are further opportunities to leverage our global scale and operating environment, streamline processes and further digitize our business. As a result, we recently updated our medium-term target for the expense efficiency ratio from less than 50% to less than 45%.