shareholder report q3 2024

Third Quarter Report to Shareholders

Three and nine months ended September 30, 2024

Manulife Financial Corporation

Manulife Financial Corporation ("Manulife" or the "Company") reported its third quarter results for the period ended September 30, 2024, delivering record core earnings and insurance new business results1.

Key highlights for the third quarter of 2024 ("3Q24") include:

• Core earnings2 of $1.8 billion, up 4% on a constant exchange rate basis3 from the third quarter of 2023 ("3Q23")
• Net income attributed to shareholders of $1.8 billion, up $0.8 billion from 3Q23
• Core EPS4 of $1.00, up 7%3 from 3Q23. EPS of $1.00, up 91%3 from 3Q23
• Excluding the impact of Global Minimum Taxes ("GMT")5, core EPS4 was $1.03, up 11%3 from 3Q23
• Core ROE4 of 16.6% and ROE of 16.6%
• LICAT ratio6 of 137%
• APE sales up 40%7, new business CSM up 47%3 and new business value ("NBV") up 39%7 from 3Q238
• Global Wealth and Asset Management net inflows7 of $5.2 billion, up from net outflows of $0.8 billion in 3Q23

"We continued to drive momentum and delivered strong results in the third quarter, evident in record total company core earnings, substantial top-line growth across our operating segments and steady growth in our book value per share. In Global WAM, we generated a 37% increase in core earnings year-over-year, and our core EBITDA margin4 further improved to 27.8% driven by strong AUMA growth and higher operating leverage. In Asia, we reached record levels of APE sales, new business CSM and NBV, while delivering 17% growth in core earnings. On a year-to-date basis, we generated 70% of core earnings from our highest potential businesses4 which contributed to a 14% growth in core EPS excluding the impact of GMT. We remain focused on executing against our strategic priorities and delivering on our financial targets to bring a strong close to 2024, and I am optimistic in our ability to continue generating value to our shareholders."

• Roy Gori, Manulife President & Chief Executive Officer

"We have made progress on our financial targets unveiled at our Investor Day this year. Core ROE of 16.6% reflects strong business performance and disciplined capital allocation. We remain diligent in our expense management with 45.0% expense efficiency ratio4 on a year-to-date basis, in-line with our medium-term target of less than 45%. Our balance sheet is strong, and we returned more than $2 billion to our shareholders through our common share buyback program since the start of 20249."

• Colin Simpson, Manulife Chief Financial Officer

• Record levels of total company annualized premium equivalent ("APE") sales, new business contractual service margin ("new business CSM") and new business

value ("NBV").

• 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 3Q24 Management's Discussion and Analysis ("3Q24 MD&A").

• 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.

• Core EPS, core EPS excluding the impact of GMT, core ROE, core EBITDA margin, highest potential businesses core earnings contribution, and expense efficiency ratio are non-GAAP ratios.

• 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 operated as of September 30, 2024.

• Life Insurance Capital Adequacy Test ("LICAT") ratio of The Manufacturers Life Insurance Company ("MLI") as at September 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.

• For more information on APE sales, NBV, and Global Wealth and Asset Management ("Global WAM") net flows, see "Non-GAAP and other financial measures" in

our 3Q24 MD&A. Percentage growth/decline in APE sales and NBV are stated on a constant exchange rate basis.

• Refer to "Results at a Glance" for 3Q24 and 3Q23 results.
  9 As of October 31, 2024.

Results at a Glance

Results by Segment

• Percentage growth / declines in net income attributed to shareholders is stated on a constant exchange rate basis and is a non-GAAP ratio.

• For more information on gross flows and average asset under management and administration ("average AUMA"), see "Non-GAAP and other financial measures"

in our 3Q24 MD&A. Percentage growth/decline in net flows, gross flows and average AUMA are stated on a constant exchange rate basis.

• Adjusted book value per common share ("adjusted BV per common share") and financial leverage ratio are non-GAAP ratios.

Strategic Highlights

We are driving profitable top-line growth through product and distribution innovations

In Asia, we continued the rollout of Manulife Pro, our proprietary recognition and activation program for top-tier agents, to Hong Kong in July. This key initiative contributed to improved productivity, reflecting our investments in our agency force and contributing to over 20% year-over-year growth in agency NBV and agency APE sales in 3Q24. With this expansion Manulife Pro is now available in five of our markets1.

In addition, we further enhanced our high-net-worth offerings with the launch of two innovative new products: Manulife Global Indexed UL PRO in our International High Net Worth business and Signature Indexed Income in Singapore. These offerings build on our capabilities to meet the complex and evolving protection, legacy planning and wealth management needs of high-net-worth customers.

In the U.S., we expanded a differentiated enhancement to our entire suite of survivorship solutions, allowing customers to proactively address their estate planning needs now in anticipation of potential estate tax changes in 2026.

In Global WAM, we announced the closing of a $1.1 billion institutional fund - Manulife Private Equity Partners II. This fund is part of our ongoing effort to provide specialized solutions for institutional investors seeking greater exposure to opportunities in the growing North American private equity market.

We are elevating the customer experience with continued digital and AI enhancements

In Asia, we improved customer experience and the operational efficiency of our Japan contact centre as part of global contact centre transformation initiatives. Our further enhancement of voice bot capabilities and the application of AI contributed to a record high transactional NPS2 on a year-to-date basis. AI-enabled speech-to-text and call summarization enhancements reduced average contact centre handling time by 28% compared with 3Q23.

Furthermore, we launched new mobile apps in Vietnam and Indonesia as part of our program to create a unified customer app experience in each of our Asia markets. These apps now enable customers to seamlessly conduct a wide range of policy management activities including accessing policy information, making premium payments, tracking claim status, updating personal information and downloading contracts. Since the launch of the new mobile app in Vietnam in August, monthly customer registrations have nearly doubled3.

In the U.S., we entered into a strategic distribution partnership with Ethos - a life insurance technology company focused on simplifying the purchase experience - to provide prospective customers and nearly 9,000 newly appointed agents with instant coverage decisions for our Simple Term solution via the Ethos platform.

In Global WAM, we launched an AI-powered planning tool in our wealth platform in Canada Retail to enhance support for advisors and their clients, delivering an elevated service experience through streamlined financial planning processes and personalized advice and solutions.

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

In Canada, we further enhanced our mobile app for the Manulife Vitality program with tailored activity recommendations to provide customers with a more personalized app experience to help them achieve their health and wellness goals. Continuous improvements have resulted in a 9% increase in utilization year-over-year.

In the U.S., we provided access to GRAIL's Galleri® multi-cancer early detection test to certain eligible John Hancock Vitality members ages 40 to 49 (previously ages 50 and up). This change aligns our offering with recent medical research indicating a significant increase in early-onset cancer diagnoses4, reinforcing our commitment to early detection and better health outcomes for our members.

• Manulife Pro is available in Singapore, Vietnam, Indonesia, Japan and Hong Kong.
  2 Net promoter score ("NPS").

• Compared with registration in May 2024, prior to the soft launch of the app in June 2024.

• Jianhui Zhao, Liying Xu, et al - Global trends in incidence, death, burden and risk factors of early-onset cancer from 1990 to 2019: BMJ Oncology 2023.

Strong earnings driven by continued business growth and improved market experience1

Core earnings of $1.8 billion in 3Q24, up 4% from 3Q23

The increase reflected strong business growth led by Global WAM and Asia, and a lower net charge in the provision for Expected Credit Loss ("ECL"), more than offsetting the impacts of GMT and reinsurance transactions closed earlier this year.

• Asia core earnings were up 17%, reflecting continued business growth momentum and benefits from updates to actuarial methods and assumptions in 2023 and 2024.
• Global WAM core earnings hit a record level in 3Q24 and grew 37%, driven by higher net fee income from favourable market impacts and positive net flows, favourable tax true-ups and benefits, and continued expense discipline.
• Canada core earnings increased 1% as strong business growth in Group Insurance more than offset the impact of less favourable claims experience in 3Q24.
• U.S. core earnings were down 8%, primarily due to lower investment spreads, impact from the previously completed reinsurance transaction and the annual review of actuarial methods and assumptions, partially offset by a lower charge in the ECL provision and more favourable claims experience in life.
• Corporate and Other core earnings decreased $123 million, mainly due to the impact of GMT and higher interest on capital allocated to operating segments.

Net Income attributed to shareholders of $1.8 billion in 3Q24, $0.8 billion higher compared with 3Q23

The $0.8 billion increase in net income reflects improved market experience and core earnings growth, partially offset by lower tax-related benefits and a higher net charge from the annual review of actuarial methods and assumptions. The net gain from market experience in 3Q24 was primarily related to higher-than-expected returns from public equity and net realized gains from the sale of debt instruments, partially offset by lower-than-expected returns on alternative long-duration assets mainly related to real estate investments.

Record levels across all three insurance new business metrics for total company and Asia segment, and strong net inflows in Global WAM

Significant momentum continued into 3Q24 as the insurance business generated year-over-year growth of 40%, 47% and 39% in APE sales, new business CSM and NBV, respectively.

• Asia led with broad-based growth, generating 64%, 45% and 55% year-over-year growth in APE sales,
  new business CSM and NBV, respectively, reflecting higher sales volumes in Hong Kong, mainland China, Singapore and Japan. NBV margin2 remained resilient at 38.8%.
• Canada delivered solid new business results; higher sales in participating life insurance and Group Insurance were more than offset by the non-recurrence of a large affinity market sale in 3Q23. APE sales and NBV were down 20% and 7%, respectively, while new business CSM increased 86% due to strong individual insurance and segregated fund sales.
• U.S. delivered double-digit growth in APE sales, new business CSM and NBV of 23%, 30% and 36%, respectively, reflecting a rebound in demand from affluent customers for accumulation insurance products.

Global WAM net inflows of $5.2 billion in 3Q24, increased $6.0 billion compared with net outflows of $0.8 billion in 3Q23, reflecting strong Retail net flows across all geographies

• Retirement net inflows of $0.6billion in 3Q24 increased from net outflows of $3.4 billion in 3Q23, primarily driven by the non-recurrence of a large-case retirement plan redemption in the U.S. in 3Q23.
• Retail net inflows of$3.9 billion in 3Q24 increased from net outflows of $0.2 billion in 3Q23, due to increased demand for investment products amid an equity market recovery and improved investor sentiment, as well as the onboarding of several new advisors in Canada wealth.
• Institutional Asset Management net inflows of$0.7 billion in 3Q24 decreased compared with net inflows of $2.8 billion in 3Q23, reflecting higher redemptions in fixed income mandates.

• See section A1 "Profitability" in our 3Q24 MD&A for more information on notable items attributable to core earnings and net income attributed to shareholders.

• For more information on new business value margin ("NBV margin"), see "Non-GAAP and other financial measures" below.

Growth in new business continues to drive higher organic CSM and CSM balance

CSM1 was $20,930 million as at September 30, 2024

CSM increased $490 million compared with December 31, 2023. Organic CSM movement contributed $724 million of the increase for the first three quarters 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 $234 million for the same period, primarily driven by the impacts of reinsurance transactions and the annual review of actuarial methods and assumptions, partially offset by favourable impacts of changes in foreign currency exchange rates and equity market performance. Post-tax CSM net of NCI2 was $18,595 million as at September 30, 2024.

Annual Review of Actuarial Methods and Assumptions

We completed our annual review of actuarial methods and assumptions, which resulted in a net favourable impact of a $174 million3 decrease in pre-tax fulfillment cash flows. Under IFRS 17, the impact of the annual review of actuarial methods and assumptions is reported in several places. The $174 million decrease in pre-tax fulfillment cash flows in 3Q24 was comprised of a decrease in pre-tax net income attributed to shareholders of $250 million ($199 million post-tax), an increase in pre-tax net income attributed to participating policyholders of $29 million ($21 million post-tax), a decrease in CSM of $421 million, an increase in pre-tax other comprehensive income attributed to shareholders of $771 million ($632 million post-tax), and an increase in pre-tax other comprehensive income attributed to participating policyholders of $45 million ($32 million post-tax). The actuarial review this year included updates to our lapse assumptions for non-participating products in our U.S. life insurance business and in our International High Net Worth business in Asia segment, updates to discount rates used in the valuation of our non-participating business, a review of our reinsurance contracts and risk adjustment, updates to our global expense assumptions, updates to mortality and morbidity assumptions in certain products in Asia, as well as other methodology refinements.

• Net of non-controlling interests ("NCI").

• 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 3Q24 MD&A.

• This amount excludes the portion related to NCI.

MANAGEMENT'S DISCUSSION AND ANALYSIS

This Management's Discussion and Analysis ("MD&A") is current as of November 6, 2024, unless otherwise noted. This MD&A should be read in conjunction with our unaudited Interim Consolidated Financial Statements for the three and nine months ended September 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

E. OTHER

1. Outstanding common shares - selected information
2. Legal and regulatory proceedings
3. Non-GAAPand other financial measures
4. Caution regarding forward-looking statements
5. Quarterly financial information
6. Revenue
7. Other

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 $1,839 million in the third quarter of 2024 ("3Q24") compared with $1,013 million in the third quarter of 2023 ("3Q23"). 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 $1,828 million in 3Q24 compared with $1,743 million in 3Q23, and items excluded from core earnings, which amounted to a net gain of $11 million in 3Q24 compared with a net charge of $730 million in 3Q23. The effective tax rate on net income (loss) attributed to shareholders was a tax expense of 11% in 3Q24 compared with a recovery of 7% in 3Q23 reflecting $100 million of tax benefits in 3Q24 compared with $290 million in 3Q23, a charge related to Global Minimum Taxes ("GMT") in 3Q24 and the jurisdictional mix of pre-tax profits.

Net income attributed to shareholders in 3Q24 increased $826 million compared with 3Q23, primarily reflecting improved market experience and core earnings growth, partially offset by lower tax-related benefits, a higher net charge from the annual review of actuarial methods and assumptions and a charge to items excluded from core earnings related to GMT. The net gain from market experience of $186 million in 3Q24 was primarily related to higher-than-expected returns from public equity and net realized gains from the sale of debt instruments, partially offset by lower-than-expected returns on alternative long-duration assets ("ALDA") mainly related to real estate investments.

Core earnings increased $85 million or 4% on a constant exchange rate basis1 compared with 3Q23. The increase was driven by higher core earnings in Global Wealth and Asset Management ("Global WAM"), largely reflecting an increase in net fee income from higher average assets under management and administration2 ("average AUMA") and positive net flows2, along with disciplined expense management and favourable tax true-ups and tax benefits. In addition, growth in our insurance business, a lower charge in the expected credit loss ("ECL") provision in 3Q24 and the impact of updates to actuarial methods and assumptions in 2023 also contributed to higher core earnings. These increases were partially offset by lower expected investment earnings and a charge related to GMT. The reinsurance transaction with Global Atlantic ("GA Reinsurance Transaction")3 reduced core earnings by $21 million in 3Q24 compared with 3Q23 reflecting the impact on expected earnings on insurance contracts, expected investment earnings, and insurance experience. The reinsurance transaction with the RGA Life Insurance Company of Canada ("RGA Reinsurance Transaction")3 reduced core earnings by $2 million in 3Q24 compared with 3Q23.

The components of the items excluded from core earnings are outlined in the table below and the annual review of actuarial methods and assumptions that flow directly through income is discussed in section D2 "Actuarial methods and assumptions" below.

• 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.

• For more information on this metric, see "Non-GAAP and other financial measures" below.

• The GA Reinsurance Transaction closed February 22, 2024 with an effective date of January 1, 2024. The RGA Reinsurance Transaction closed April 2, 2024.

Year-to-date profitability

Net income attributed to shareholders for the nine months ended September 30, 2024 was $3,747 million compared with $3,444 million for the nine months ended September 30, 2023. Year-to-date core earnings amounted to $5,319 million in 2024 compared with $4,911 million in the same period of 2023, and items excluded from year-to-date core earnings amounted to a net charge of $1,572 million in 2024 compared with a net charge of $1,467 million in the same period of 2023. The effective tax rate on year-to-date net income (loss) attributed to shareholders was 16% in 2024 compared with 12% for the same period in 2023.

Year-to-date net income attributed to shareholders in 2024 increased $303 million compared with 2023 due to improved market experience in public equities, ALDA, and derivatives and hedge accounting ineffectiveness, and growth in core earnings. This was partially offset by the impact of the $958 million net loss attributed to the GA and RGA Reinsurance Transactions recorded in items excluded from core earnings, primarily related to market experience from 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), lower tax-related benefits, a higher net charge from the annual review of actuarial methods and assumptions and a charge to items excluded from core earnings related to GMT. Year-to-date market experience was a net charge of $1,258 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 $408 million or 8% compared with the same period of 2023. The increase 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 and tax true-ups and tax benefits. In addition, strong growth in our insurance business, a lower charge in the ECL provision in 2024 and the impact of updates to actuarial methods and assumptions in 2023 also contributed to higher core earnings. These increases were partially offset by a charge related to GMT, lower expected investment earnings, higher workforce- related costs, including higher performance-related costs, and lower gains from updates to provisions for estimated losses in our Property & Casualty Reinsurance business compared with prior year. In addition, year-to-date core earnings reflected adverse net insurance experience in the U.S., partially offset by improved experience in Asia. The GA Reinsurance Transaction reduced year-to-date core earnings by $64 million in 2024 compared with 2023, attributable to the impact on expected earnings on insurance contracts, expected investment earnings, the change in ECL, and insurance experience. The RGA Reinsurance Transaction reduced year-to-date core earnings by $1 million in 2024 compared with 2023.

Core earnings by segment is presented in the table below.

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 gain of $186 million in 3Q24, driven by higher-than-expected returns on public equity, net realized gains from the sale of debt instruments which are classified as FVOCI and favourable foreign exchange impacts. These were partially offset by lower-than-expected returns on ALDA mainly related to real estate, and a modest loss from derivatives and hedge accounting ineffectiveness. Market experience was a net charge of $1,022 million in 3Q23, primarily driven by lower-than-expected returns on ALDA mainly related to real estate, lower-than-expected returns on public equity, a charge from derivatives and hedge accounting ineffectiveness, net realized losses from the sale of debt instruments which are classified as FVOCI and a charge in other investment results.
2. Refer to section D2 "Actuarial methods and assumptions" below for detail.
3. In 3Q24, we reported a restructuring charge of $20 million post-tax ($25 million pre-tax) in Global WAM.
4. The 3Q24 net gain of $44 million mainly included tax related benefits and true-ups of $69 million and a charge of $28 million related to Global Minimum Taxes ("GMT") (an additional $61 million charge was recorded in core earnings). The 3Q23 net gain of $306 million included a one-time tax-related benefit of $290 million, additional tax-related true-ups of $11 million and a gain of $5 million related to a reinsurance transaction in Vietnam.

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") and for other products without a CSM. 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, in the second quarter of 2024 ("2Q24") we updated our medium-term target for the expense efficiency ratio from less than 50% to less than 45%.