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Manulife News Release C $ unless otherwise stated May 5 , 2021 TSX / NYSE / PSE : MFC SEHK : 945 This earnings news release for Manulife Financial Corporation ( " Manulife " or the " Company " ) should be read in conjunction with the Company's First Quarter 2021 Report to Shareholders , including our unaudited interim Consolidated Financial Statements for the three months ended March 31 , 2021 , prepared in accordance with International Financial Reporting Standards ( " IFRS " ) as issued by the International Accounting Standards Board ( " IASB " ) , which are available on our website at www.manulife.com/en/investors/results-and- reports . Additional information relating to the Company is available on the SEDAR website at http://www.sedar.com and on the U.S. Securities and Exchange Commission's ( " SEC " ) website at http://www.sec.gov . Manulife reports 1Q21 net income of $ 783 million and core earnings of $ 1.6 billion with strong growth in Asia and Global Wealth and Asset Management Today , Manulife announced its first quarter of 2021 ( " 1Q21 " ) results . Key highlights include : " Net income attributed to shareholders of $ 783 million in 1Q21 , down $ 513 million from the first quarter of 2020 ( " 1Q20 " ) Core earnings of $ 1.6 billion in 1Q21 , up 67 % ² from 1Q20 ■ Core ROE1 of 13.7 % and ROE of 6.4 % in 1Q21 ■ NBV1 of $ 599 million in 1Q21 , up 32 % from 1Q20 ■ ■ " APE sales of $ 1.8 billion in 1Q21 , up 14 % from 1Q20 Global Wealth and Asset Management ( " Global WAM " ) net inflows¹ of $ 1.4 billion in 1Q21 , compared with net inflows of $ 3.2 billion in 1Q20 Strong LICAT ratio³ of 137 % Expense efficiency ratio¹ of 48.5 % , compared with our target of consistently achieving less than 50 % Embedded value¹ of $ 61.1 billion or $ 31.49 per share , as of December 31 , 2020 , up $ 1.70 per share from 2019 " We delivered very strong operating results in the first quarter of 2021 , driven by double - digit growth in core earnings across all of our operating segments . While the overall impact of higher interest rates is positive over the long term for our Company , higher risk - free rates and a steepening yield curve within North America impacted net income in the quarter , " said Manulife President & Chief Executive Officer Roy Gori . " Despite ongoing challenges presented by the pandemic , the global strength and diversity of our business continues to shine through . We are progressing on our digital transformation with auto - underwriting at 72 % , straight - through - processing 4 at 81 % and eClaims at 92 % . We delivered 14 % growth in APE sales , driven by a very strong result in Asia and continued demand for our innovative Vitality solution in the U.S. And , we generated net inflows of $ 1.4 billion in our Global Wealth and Asset Management business , supported by strength in our Retail 1 Core earnings , core return on common shareholders ' equity ( " core ROE " ) , new business value ( " NBV " ) , annualized premium equivalent ( " APE " ) sales , net flows , expense efficiency ratio and embedded value are non - GAAP measures . See " Performance and Non - GAAP Measures " below and in our First Quarter 2021 Management's Discussion and Analysis ( " 1Q21 MD & A " ) for additional information . 2 All percentage growth / declines in financial metrics in this news release are reported on a constant exchange rate basis . Constant exchange rate basis excludes the impact of currency fluctuations and is a non - GAAP measure . See " Performance and Non - GAAP Measures " below and in our 1Q21 MD & A for additional information . 3 4 Life Insurance Capital Adequacy Test ( " LICAT " ) ratio of The Manufacturers Life Insurance Company ( " MLI " ) . Straight - through - processing includes money movement . May 5 , 2021 - Press Release Reporting First Quarter Results 1