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Manulife News Release C $ unless otherwise stated August 4 , 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 Second Quarter 2021 Report to Shareholders , including our unaudited interim Consolidated Financial Statements for the three and six months ended June 30 , 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 2Q21 net income of $ 2.6 billion and core earnings of $ 1.7 billion driven by continued growth in Asia and Global Wealth and Asset Management Today , Manulife announced its second quarter of 2021 ( " 2Q21 " ) results . Key highlights include : ■ ■ Net income attributed to shareholders of $ 2.6 billion in 2Q21 , up $ 1.9 billion from the second quarter of 2020 ( " 2Q20 " ) Core earnings of $ 1.7 billion in 2Q21 , up 18 % on a constant exchange rate basis² from 2Q20 Core ROE1 of 13.9 % and ROE of 22.2 % in 2Q21 " NBV1 of $ 550 million in 2Q21 , up 57 % from 2Q20 ■ APE sales of $ 1.4 billion in 2Q21 , up 30 % from 2Q20 " ■ " Global Wealth and Asset Management ( " Global WAM " ) net inflows¹ of $ 8.6 billion in 2Q21 , compared with net inflows of $ 5.1 billion in 2Q20 Strong LICAT ratio³ of 137 % Expense efficiency ratio¹ of 46.8 % , compared with our target of consistently achieving less than 50 % " Our strong momentum continued in the second quarter , as we delivered record core earnings of $ 1.7 billion , up 18 % from the prior year quarter , driven by double - digit growth in our highest potential businesses and net income of $ 2.6 billion . NBV increased 57 % year - over - year , with strong contributions from all geographies and core EBITDA margin¹ increased 4 percentage points year - over - year , contributing to core earnings growth of 62 % in Global WAM . Our results this quarter showcase the strength of our Asia and Global WAM businesses which underpin the next phase of our strategy , " said Manulife President & Chief Executive Officer Roy Gori . " We have also continued to make strides in our ambition to become the most digital , customer - centric , global company in our industry , launching digital enhancements across a number of our businesses and making it easier for customers to do business with us in the current environment . Our NPS4 score of +19 , an 18 point improvement from the 2017 baseline 5 , is reflective of our success in this area , ” added Mr. Gori . " While economic recovery is 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 core EBITDA margin are non - GAAP measures . See " Performance and non - GAAP Measures " below and in our Second Quarter 2021 Management's Discussion and Analysis ( " 2Q21 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 2Q21 MD & A for additional information . 3 Life Insurance Capital Adequacy Test ( " LICAT " ) ratio of The Manufacturers Life Insurance Company ( " MLI " ) . 4 5 Relationship Net Promotor Score . In 2021 , we adjusted the weightings in our relationship NPS methodology to more closely align with our focus on our highest potential businesses . This adjustment had no impact on the 2017 NPS baseline of +1 and would have modestly increased the score in 2018 , 2019 , and 2020 . August 4 , 2021 - Press Release Reporting Second Quarter Results