Slides
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Fourth Quarter and Full Year 2024 Financial & Operating Results February 20, 2025
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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 U.S. Private Securities Litigation Reform Act of 1995. The forward-looking statements in this document include, but are not limited to, the Company’s strategic priorities and targets, expected long-term returns on alternative long-duration assets (“ALDA”), its medium-term financial and operating targets, the expected capital release from reinsurance transactions, potential future common share repurchases, 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; our inability to withdraw cash from subsidiaries and the fact that the amount and timing of any future common share repurchases will depend on the earnings, cash requirements and financial condition of Manulife, market conditions, capital requirements (under LICAT capital standards), common share issuance requirements, applicable law and regulations (including Canadian and U.S. securities laws and Canadian insurance company regulations). 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 2024 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 U.S. securities regulators. 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. Caution regarding forward-looking statements 2
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Conference call participants 3 Roy Gori, President & Chief Executive Officer. Marc Costantini Global Head of Strategy & Inforce Management Steve Finch Chief Actuary Naveed Irshad President & CEO, Manulife Canada Trevor Kreel Chief Investment Officer Paul Lorentz President & CEO, Global Wealth and Asset Management Colin Simpson Chief Financial Officer Brooks Tingle President & CEO, John Hancock Halina von dem Hagen Chief Risk Officer Phil Witherington President & CEO, Manulife Asia
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4 • Overview and strategic update Roy Gori, President & Chief Executive Officer • Incoming CEO’s remarks Phil Witherington, President & Chief Executive Officer, Manulife Asia • Financial and operating results Colin Simpson, Chief Financial Officer • Question & Answer session Agenda
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5 Overview and strategic update Roy Gori President & Chief Executive Officer
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Further reshaping our portfolio towards higher returns and lower risk in 2024 6 Note: See “Caution regarding forward-looking statements” above. All footnotes are on slide 43. Rapidly growing our most profitable businesses Core earnings contribution from highest potential businesses 2,3 70% Core earnings contribution from Asia region 3 44% Strong execution to optimize legacy and low-ROE businesses Expected capital release (cumulative) 4 ~$2.8B Expected core ROE accretion (cumulative) 4,5 ~0.4pps • Record core earnings in Asia and Global WAM • Record top-line metrics in Asia • Positive net flows of $13.3 billion1 in Global WAM; 14 out of the past 15 years • Executed two LTC reinsurance transactions within 12 months: • Largest-ever LTC transaction closed in February 2024 • Announced a transaction on a younger block in November 2024 and closed in January • Executed the largest-ever Canadian UL reinsurance transaction
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Investing to continue improving customer experience while driving efficiency 7 Note: All footnotes are on slide 43. Improving efficiencyDelivering record high NPS Net Promoter Score (“NPS”)2 27 Straight-through processing (“STP”)3 89% • Continue to proactively manage expenses • Core expense growth of 5%4, slower than core earnings growth • Invested ~$600 million in digital capabilities in the last two years • 27 GenAI use cases deployed in 2024 • Generated over $600 million1 of benefits from digital, customer leadership initiatives in 2024 Expense efficiency ratio5 44.8%
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Driven by our winning team and supported by a strong capital position 8 Note: See “Caution regarding forward-looking statements” above. All footnotes are on slide 43. Winning culture is our competitive advantage Disciplined capital allocation Capital returned to shareholders $6.1B • 5th consecutive year of top quartile employee engagement1 • 5th consecutive year as one of the World’s Best Employers 2 • 2nd consecutive year of Exceptional Workplace3 • Bought back $3.2 billion or 4.6% of common shares • Announced a new program to repurchase up to 3% of common shares outstanding • Announced a 10% common share dividend increase Remittances4 $7.0B Employee engagement 1st quartile
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Delivered strong results in 2024, well on our way to reach the bar we’ve raised 9 APE sales1 ▲30% New business value1 ▲32% Global WAM net flows2 $13.3B New business CSM1 ▲32% Core EPS1,3 ▲11% Core ROE3 16.4% EPS1 ▲8% ROE 12.0% Book value per share ▲15% Adjusted book value per share3 ▲15% MLI’s LICAT ratio4 137% Financial leverage ratio3 23.7% Growth Profitability Balance sheet Note: All changes reflect full year 2024 results compared with full year 2023 results. All footnotes are on slide 43. Core EPS excl. GMT impact1 ▲14%
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Our transformation journey since 2017 generated tremendous shareholder value 10 Note: All growth figures are based on full year 2024 results under IFRS 17 relative to full year 2017 results under IFRS 4. All footnotes are on slide 44. Our 2024 results are a testament to the significant transformation of Manulife since 2017… Core ROE growth1 Dividend per common share growth Growth in highest potential businesses3 Adjusted book value per common share growth 2 …generating tremendous shareholder value Total shareholder return (“TSR”)4 as of December 31, 2024: • 1-year of 57% • 3-year of 114% • 5-year of 117% • 137% since 2017 TSR Ranking4 1st quartile +5.1pps 11.3% 16.4% +16pps 54% 70% +96% $18.89 $37.02 +95% $0.82 $1.60
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11 Incoming CEO’s remarks Phil Witherington President & Chief Executive Officer, Manulife Asia DRAFT
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12 Financial and operating results Colin Simpson Chief Financial Officer
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Asia and Global WAM driving strong top-line momentum 13 995 1,661 363 376 192 211 4Q23 4Q24 1,550 2,248 +42% U.S. Canada Asia APE sales1 (C$ millions) 414 586 70 116 142 140 4Q23 4Q24 626 842 +32% New business CSM2 Global WAM net flows1 2.1 1.8 1.3 (1.0) (1.9) (2.3) (0.2) 4Q23 4Q24 (1.3) 1.2 Retirement excl. large client redemption Retail Institutional Retirement large client redemption (C$ billions) New business value1 417 585 139 168 74 89 4Q23 4Q24 630 842 +31% U.S. Canada Asia (C$ millions) U.S. Canada Asia (C$ millions) Note: All footnotes are on slide 44.
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Core earnings growth supported by strong insurance and Global WAM results 14 4Q23 4Q24 Risk adjustment release 239 205 CSM recognized for service provided 529 521 Expected earnings on short-term insurance business 203 195 Impact of new insurance business (44) (25) Insurance experience gains (losses) 5 123 Other 24 10 Core net insurance service result 956 1,029 Expected investment earnings 694 671 Change in expected credit loss - (5) Expected earnings on surplus 264 284 Other (1) 17 Core net investment result 957 967 Core Global Wealth and Asset Management 408 542 Core Manulife Bank 64 60 Other core earnings (318) (346) Total core earnings (pre-tax) 2,067 2,252 Core income tax (expense) recovery (294) (345) Total core earnings 1,773 1,907 Items excluded from core earnings (114) (269) Net income attributed to shareholders 1,659 1,638 Drivers of earnings1 (C$ millions) 4Q24 core earnings increased 6%2 from the prior year quarter: • Robust business growth in our insurance businesses, partially offset by lower investment spreads • Net favourable insurance experience across all segments led by Canada • Growth in Global WAM pre-tax earnings supported by AUMA growth and disciplined expense management; also benefited from certain non-recurring tax true-ups and tax benefits of $23 million • Impact of Global Minimum Taxes (“GMT”) was a charge of $57 million that moderated core earnings growth by 3 pps • Reinsurance transactions that closed earlier in 2024 reduced core earnings by $24 million 3 compared with prior year quarter Note: All footnotes are on slide 44.
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Core EPS1 (C$) Solid core EPS growth of 9%1, or 13% excluding the impact of GMT 15 Earnings for the fourth quarter 2024 (C$ millions, except per share amounts) 1,773 1,907 4Q23 4Q24 +6% Core earnings1 (C$ millions) 4Q24 Post-tax 4Q24 Per share Core earnings1 1,907 1.03 Items excluded from core earnings: Realized gains (losses) on debt instruments (43) (0.02) Derivatives and hedge accounting ineffectiveness 40 0.02 Actual less expected long-term returns on public equity (113) (0.06) Actual less expected long-term returns on ALDA (97) (0.06) Other investment results 21 0.01 Total market experience gains (losses) (192) (0.11) Changes in actuarial methods and assumptions that flow directly through income - - Restructuring charge (52) (0.03) Reinsurance transactions, tax-related items and other (25) (0.01) Net income attributed to shareholders 1,638 0.88 0.92 1.03 1.06 4Q23 4Q24 4Q24 excl. GMT impact +9% +13% Note: All footnotes are on slide 44.
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Asia: Continued momentum in new business results and core earnings growth 16 Net income (US$ millions) Core earnings2 (US$ millions) 218 254 79 87 119 147 (2) 4Q23 (11) 4Q24 414 477 +16% 452 417 4Q23 4Q24 Hong Kong Japan Asia Other Regional Office New business value1 (US$ millions) 155 230 120 150 31 4Q23 38 4Q24 306 418 +37% Hong Kong Japan Asia Other APE sales1 (US$ millions) 215 558 450 533 4Q23 96 4Q24 731 1,187 66 +63% Hong Kong Japan Asia Other New business CSM2 (US$ millions) 146 214 47127 158 30 4Q23 4Q24 303 419 +38% Hong Kong Japan Asia Other • Higher sales reflect broad-based growth across Asia, led by Hong Kong, which contributed to the double-digit growth in new business CSM and new business value • Strong core earnings growth reflects continued business growth momentum and the impact of the annual review of actuarial methods and assumptions Note: All footnotes are on slide 44.
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Global WAM: Continued margin expansion driven by strong growth in asset base 17 Core EBITDA margin2 (%) Average AUMA1 (C$ billions) 25.7 28.6 4Q23 4Q24 + 290 bps 2.1 1.8 (0.2) 1.3 (1.0) (1.9) (2.3) 4Q23 4Q24 (1.3) 1.2 Retirement excl. large client redemption Retail Institutional Retirement large client redemption 817 1,015 4Q23 4Q24 +21% Net flows by business line1 (C$ billions) Core earnings3 (C$ millions) Net income (C$ millions) • Net inflows of $1.2 billion reflect positive flows from Institutional, and solid sales in Retail benefiting from increased investor demand amid a constructive equity market, partially offset by net outflows in Retirement due to pension plan redemptions • Strong core earnings growth supported by higher average AUMA, certain non-recurring tax true-ups and tax benefits, performance fees from CQS, and continued expense discipline Note: All footnotes are on slide 45. 353 481 4Q23 4Q24 +34% 365 384 4Q23 4Q24
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Canada: Strong new business results supported by Individual Insurance business 18 Net income (C$ millions) Core earnings2 (C$ millions) APE sales1 (C$ millions) 53 60 203 143 107 173 4Q23 4Q24 363 376 +4% Individual Insurance Group Insurance Annuities New business CSM2 (C$ millions) 70 116 4Q23 4Q24 +66% • Higher sales reflect strong growth in Individual Insurance and segregated fund sales, which were partially offset by lower sales in our group benefits business • Strong growth in core earnings reflects more favourable insurance experience overall, and business growth in Group Insurance • The RGA reinsurance transaction reduced core earnings by $7 million compared with prior year quarter New business value1 (C$ millions) 139 168 4Q23 4Q24 +21% Note: All footnotes are on slide 45. 258 295 48 5146 44 4Q23 4Q24 352 390 +11% Manulife Bank Annuities Insurance 365 439 4Q23 4Q24
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U.S.: Solid new business results; core earnings impacted by lower investment spreads, the Global Atlantic reinsurance transaction and the annual actuarial review 19 Net income (US$ millions) Core earnings2 (US$ millions) 146 73 4Q23 4Q24 300 256 49 38 4Q23 4Q24 349 294 -16% U.S. Annuities U.S. Insurance APE sales1 (US$ millions) 141 151 4Q23 4Q24 +7% New business CSM2 (US$ millions) 105 100 4Q23 4Q24 -5% Note: All footnotes are on slide 45. • Solid sales growth reflects higher sales of accumulation insurance products, which contributed to the strong growth in new business value • Lower core earnings primarily reflect lower investment spreads and the impact of the annual review of actuarial methods and assumptions • The Global Atlantic reinsurance transaction reduced core earnings by US$14 million compared with prior year quarter New business value1 (US$ millions) 54 63 4Q23 4Q24 +17%
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Strong cash generation with continued capital return to shareholders 20 2.5 2.7 2.8 1.9 1.6 3.2 2022 2023 2024 4.4 4.3 6.1 Share buyback Common share dividends Capital returned to shareholders (C$ billions) Note: See “Caution regarding forward-looking statements” above. All footnotes are on slide 45. Remittances1 (C$ billions) 6.9 5.5 7.0 2022 2023 2024 Dividend per common share (C$) 1.32 1.46 1.60 1.76 2022 2023 2024 2025 Pro- forma2 +10%
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Steady growth in adjusted book value per share with strong balance sheet 21 Adjusted book value per common share1 (C$) 22.36 24.40 25.63 9.83 10.57 11.39 4Q23 3Q24 4Q24 32.19 34.97 37.02 +15% CSM balance per common share Book value per common share 1 Note: All footnotes are on slide 45. Capital metrics Capital over supervisory target (C$ billions) LICAT Ratio (%) 24.3 23.5 23.7 4Q23 3Q24 4Q24 Medium-term target of 25% $22 $23 $24 137% 137% 137% 0 20 40 60 80 100 120 140 0 5 10 15 20 25 4Q23 3Q24 4Q24 Financial leverage ratio2 (%)
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2023 2024 Core ROE1 15.9% 16.4% Remittances2 $5.5B $7.0B New business CSM growth3 12% 32% CSM balance growth3 21% 3% Core EPS growth1,4 17% 11% Expense efficiency ratio5 45.5% 44.8% Financial leverage ratio1 24.3% 23.7% Core dividend payout ratio1 42% 41% EPS growth4 47% 8% ROE 11.9% 12.0% Common share dividend payout ratio 56% 56% 2027 targets 18%+ $22B+ cumulative Medium-term targets 15% 8-10% 10-12% <45% 25% 35-45% Note: See “Caution regarding forward-looking statements” above. Growth rates shown are compared with the respective prior year periods. Actual remittance results reflect reported annual remittances. The 2027 target for remittances is a cumulative remittances target, which reflects cumulative remittances between 2024-2027. All footnotes are on slide 45. 22 Strong delivery on targets
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On track to achieve the ambitious core ROE1 objectives 23 Asia (%) Global WAM U.S. (%) Canada (%)(%) Note: All footnotes are on slide 45. 14 2023 2024 1515.9 16.4 2023 2024 Total company (%) 2023 2024 16 19 2023 2024 25 27 15 2023 2024 16
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Question & Answer session 24
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• Financial KPI summary • Insurance experience, ECL and OCI • Changes in CSM • Full year financial results • Global WAM investment performance • Invested assets • Sensitivities • Footnotes Appendix 25
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4Q24 and 2024 financial KPI summary 26 (C$ millions, unless noted) 4Q23 4Q24 Change 2023 2024 Change APE sales1 (C$ billions) $1.6 $2.2 ▲ 42% $6.4 $8.4 ▲ 30% New business CSM2 $626 $842 ▲ 32% $2,167 $2,887 ▲ 32% New business value1 $630 $842 ▲ 31% $2,324 $3,077 ▲ 32% CSM balance growth2 21% 3% ▼ 18 pps 21% 3% ▼ 18 pps Global WAM net flows1 (C$ billions) ($1.3) $1.2 ▲ $2.5 $4.5 $13.3 ▲ $8.8 Global WAM core EBITDA margin3 25.7% 28.6% ▲ 290 bps 24.9% 27.1% ▲ 220 bps Global WAM average AUMA1 (C$ billions) $817 $1,015 ▲ 21% $813 $946 ▲ 15% Net income attributed to shareholders $1,659 $1,638 ▼ $(21) $5,103 $5,385 ▲ $282 Core earnings2,4 $1,773 $1,907 ▲ 6% $6,684 $7,226 ▲ 8% Core EPS2,3 $0.92 $1.03 ▲ 9% $3.47 $3.87 ▲ 11% Core ROE3 16.4% 16.5% ▲ 0.1 pps 15.9% 16.4% ▲ 0.5 pps Expense efficiency ratio3 45.5% 44.4% ▼ 1.1 pps 45.5% 44.8% ▼ 0.7 pps Book value per share (C$) $22.36 $25.63 ▲ 15% $22.36 $25.63 ▲ 15% CSM balance per share3 (C$) $9.83 $11.39 ▲ 16% $9.83 $11.39 ▲ 16% Adjusted book value per share3 (C$) $32.19 $37.02 ▲ 15% $32.19 $37.02 ▲ 15% MLI’s LICAT ratio 137% 137% In line 137% 137% In line Financial leverage ratio3 24.3% 23.7% ▼ 0.6 pps 24.3% 23.7% ▼ 0.6 pps Dividend per common share 36.5¢ 40.0¢ ▲ 10% $1.46 $1.60 ▲ 10% Growth Profitability Balance Sheet Note: All footnotes are on slide 46.
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Insurance experience impacts on core earnings and CSM 27 4Q24 insurance experience gains/(losses) (C$ millions, pre-tax) Core earnings impact1 CSM (net of NCI) impact Total impact Asia 7 5 12 Canada 54 17 71 U.S. 17 2 19 Insurance operating segments 78 24 102 Corporate & Other 45 - 45 Total 123 24 147 • Insurance experience is reflected in core earnings and in the CSM – the impacts need to be considered together • Total net favourable insurance experience driven by claims gains in Canada group long-term disability, a release of P&C provisions related to past incurred events in Corporate, and favourable overall LTC experience Note: All footnotes are on slide 46.
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Change in ECL, (charges)/recoveries (C$ millions, pre-tax) Change in ECL for 4Q24 was largely neutral 29 1 (55) (5) 4Q23 1Q24 2Q24 3Q24 4Q24 0 Change in ECL for 4Q24, (charges)/recoveries (C$ millions, pre-tax) Stage 1 Stage 2 Stage 3 Total Net transfers between stages (1) 12 (11) - Net new originations or purchases (12) (1) 7 (6) Changes to risk, parameters and models 25 (1) (23) 1 Total change in ECL1 12 10 (27) (5) Total allowance for credit losses balance (December 31, 2024)1 828 28 Note: For more information on credit risk see Note 8(c) in our Consolidated Financial Statements for the year ended December 31, 2024. All footnotes are on slide 46.
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Other comprehensive income reflects the weakening of Canadian currency and increase in interest rates in 4Q24 29 4Q24 total comprehensive income (C$ millions) Net income attributed to shareholders 1,638 Other comprehensive income (OCI) Net insurance/reinsurance finance income (expense) 6,564 Fair value through OCI investments gains (losses) (6,289) Net impact 275 Unrealized foreign exchange gains (losses) of net foreign operations 1,560 Other changes in OCI attributed to shareholders and other equity holders 111 Total OCI 1,946 Total comprehensive income attributed to shareholders 3,584 Net gain in other comprehensive income driven by: • The currency translation of foreign operations (due to the weakening of the Canadian dollar against most foreign currencies), which does not reflect the fundamental performance of our business • Net favourable impact from higher interest rates and steepening of the corporate spread curve, partially offset by the flattening of the yield curve
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Generated solid organic growth in CSM of 6%1 30 2024 changes in CSM (C$ millions, pre-tax) 2,887 915 456 CSM opening balance, net of NCI (Dec 31, 2023) Impact of new insurance business Expected movements related to finance income or expense CSM recognized for service provided Insurance experience gains (losses) and other Inorganic CSM movement CSM closing balance net of NCI (Dec 31, 2024) 20,440 (2,306) (265) 22,127 Organic CSM movement: + 1,231 • Solid growth of 6% in organic CSM during 20241 was supported by contributions from new business CSM, which increased 32% year-over-year • Inorganic CSM movement reflects the favourable impacts of changes in foreign currency exchange rates, partially offset by the impacts of the reinsurance transactions and the annual review of actuarial methods and assumptions • CSM balance of $22.1 billion (net of NCI) increased 3% in 2024 compared with December 31, 2023 1 Note: All balances are net of non-controlling interests. For an explanation of the components of CSM movement other than new business CSM see “Non-GAAP and Other Financial Measures” in our 2024 MD&A. All footnotes are on slide 46.
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Asia and Global WAM driving strong top-line growth in 2024 31 4,469 6,073 1,409 1,689 562 623 2023 2024 6,440 8,385 +30% U.S. Canada Asia APE sales1 (C$ millions) 1,549 2,148 224 357 394 382 2023 2024 2,167 2,887 +32% New business CSM2 Global WAM net flows1 9.0 5.7 3.1 6.8 (7.1) (0.5) 2023 0.7 2024 4.5 13.3 Retirement excl. large client redemptions Retail Institutional Retirement large client redemptions (C$ billions) New business value1 1,627 2,209 490 627 207 241 2023 2024 2,324 3,077 +32% U.S. Canada Asia (C$ millions) U.S. Canada Asia (C$ millions) Note: All footnotes are on slide 46.
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Core earnings growth supported by strong insurance and Global WAM results 32 2023 2024 Risk adjustment release 1,057 857 CSM recognized for service provided 1,768 2,048 Expected earnings on short-term insurance business 755 828 Impact of new insurance business (168) (108) Insurance experience gains (losses) (7) 138 Other 108 85 Core net insurance service result 3,513 3,848 Expected investment earnings 2,817 2,743 Change in expected credit loss (252) (30) Expected earnings on surplus 1,095 1,039 Other 21 67 Core net investment result 3,681 3,819 Core Global Wealth and Asset Management 1,525 1,907 Core Manulife Bank 249 235 Other core earnings (1,120) (1,317) Total core earnings (pre-tax) 7,848 8,492 Core income tax (expense) recovery (1,164) (1,266) Total core earnings 6,684 7,226 Items excluded from core earnings (1,581) (1,841) Net income attributed to shareholders 5,103 5,385 Drivers of earnings1 (C$ millions) 2024 core earnings increased 8%2 from the prior year: • Strong business growth in our insurance businesses and more favourable insurance experience in Canada • Lower net charge in the provision for ECL • Growth in Global WAM pre-tax earnings supported by AUMA growth and disciplined expense management; also benefited from certain non-recurring tax true-ups and tax benefits of $110 million • The impact of GMT was a charge of $164 million3 that moderated core earnings growth by 2 pps • Reinsurance transactions that closed earlier in 2024 reduced core earnings by $89 million 4 compared with prior year Note: All footnotes are on slide 46.
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Core EPS1 (C$) Solid core EPS growth of 11%1, or 14% excluding the impact of GMT 33 Earnings for the full year 2024 (C$ millions, except per share amounts) 6,684 7,226 2023 2024 +8% Core earnings1 (C$ millions) 2024 Post-tax 2024 Per share Core earnings1 7,226 3.87 Items excluded from core earnings: Realized gains (losses) on debt instruments (962) (0.54) Derivatives and hedge accounting ineffectiveness 132 0.07 Actual less expected long-term returns on public equity 312 0.18 Actual less expected long-term returns on ALDA (969) (0.54) Other investment results 37 0.02 Total market experience gains (losses) (1,450) (0.81) Changes in actuarial methods and assumptions that flow directly through income (199) (0.11) Restructuring charge (72) (0.04) Reinsurance transactions, tax-related items and other (120) (0.07) Net income attributed to shareholders 5,385 2.84 3.47 3.87 3.97 2023 2024 2024 excl. GMT impact +11% +14% Note: All footnotes are on slide 46.
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Asia: Strong growth in core earnings supported by continued momentum in new business results 34 Net income (US$ millions) Core earnings2 (US$ millions) 728 992 309 362 72 49 41 216 133 12679 73 (13) 161 2023 (34) 114 2024 1,518 1,890 +27% 995 1,717 2023 2024 Hong Kong Japan International HNW Mainland China Singapore Vietnam Other Emerging Markets Regional Office New business value1 (US$ millions) 538 772 117 194 126 111 183 207 278 25 64 53 155 2023 (5) 2024 1,206 1,612 +35% APE sales1 (US$ millions) 904 1,626262 170 170 738 896817 955 147 95275 296 2023 391 2024 3,313 4,429 +36% New business CSM2 (US$ millions) 501 670 93 212172 103 198 181 285 64 1234 53 2023 137 2024 1,148 1,567 +38% • Double-digit growth in sales, new business CSM and new business value reflects broad-based growth across Asia, led by Hong Kong • Strong core earnings growth across most of our markets Note: All footnotes are on slide 46.
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Global WAM: Strong margin expansion driven by higher asset base and disciplined expense management 35 Core EBITDA margin2 (%) Average AUMA1 (C$ billions) 24.9 27.1 2023 2024 +220 bps 9.0 5.7 3.1 6.8 (7.1) (0.5) 2023 0.7 2024 4.5 13.3 Retirement excl. large client redemptions Retail Institutional Retirement large client redemptions 813 946 2023 2024 +15% Net flows by business line1 (C$ billions) Core earnings3 (C$ millions) 1,321 1,736 2023 2024 +30% Net income (C$ millions) 1,297 1,597 2023 2024 • Net inflows of $13.3 billion reflect strong sales in Retail and net inflows from our Institutional business • Strong core earnings growth supported by higher average AUMA, certain non-recurring tax true-ups and tax benefits, and continued expense discipline, partially offset by the impact of lower fee spreads Note: All footnotes are on slide 47.
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Canada: Record core earnings and double-digit growth across top-line metrics 36 Net income (C$ millions) Core earnings2 (C$ millions) 1,101 1,188 204 210182 170 2023 2024 1,487 1,568 +5% Manulife Bank Annuities Insurance APE sales1 (C$ millions) 201 243 644 923 564 523 2023 2024 1,409 1,689 +20% Individual Insurance Group Insurance Annuities New business CSM2 (C$ millions) 224 357 2023 2024 +59% • Higher sales reflect strong growth in Group Insurance across all group benefits markets, in participating life insurance and in segregated fund products, partially offset by the non-recurrence of a large affinity markets sale in 2023 • Solid growth in core earnings driven by business growth in Group Insurance, improved insurance experience in Individual Insurance, and a lower ECL provision, partially offset by lower investment spreads • The RGA reinsurance transaction reduced core earnings by $8 million compared with prior year New business value1 (C$ millions) 490 627 2023 2024 +28% Note: All footnotes are on slide 47. 1,191 1,221 2023 2024
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U.S.: Solid new business results; core earnings reflect the impact of the Global Atlantic reinsurance transaction 37 Net income (US$ millions) Core earnings2 (US$ millions) 473 96 2023 2024 1,133 1,064 171 170 2023 2024 1,304 1,234 -5% U.S. Annuities U.S. Insurance APE sales1 (US$ millions) 416 454 2023 2024 +9% New business CSM2 (US$ millions) 292 278 2023 2024 -5% Note: All footnotes are on slide 47. • Solid sales growth reflects higher sales of accumulation insurance products, which contributed to the strong growth in new business value • Lower core earnings primarily reflect lower investment spreads, net unfavourable claims experience, and the impact of the annual review of actuarial methods and assumptions, partially offset by a lower charge in the ECL provision • The Global Atlantic reinsurance transaction reduced core earnings by US$69 million compared with prior year New business value1 (US$ millions) 153 175 2023 2024 +14%
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38 Global WAM: Solid long-term investment performance • Our strategies are performing in line with expectations given the current market conditions and our long-term performance track records remain solid 3 Public asset class 3-year 5-year 10-year % of total Equity 50% 63% 72% 90% Fixed income 23% 20% 88% 83% Allocation1 27% 34% 81% 84% Total2 100% 46% 78% 87% % of assets above peer 76-100%51-75%0-50% Note: Past performance is not indicative of future results and is not indicative of individual fund performance, nor intended for marketing purposes. All footnotes are on slide 47.
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39 • High quality and diverse asset mix • 96% of bonds are investment grade • Large holdings in defensive government and utility bonds • 70% of bonds are rated A or higher • ALDA generates enhanced yield; minimizes need to pursue riskier fixed income strategy • Portfolio is positioned at the low end of the risk return spectrum with ~70% in real assets and ~30% in private equity • ~50% of ALDA supports participating or pass-through products • High quality mortgage portfolio is diversified • 55% of the portfolio is commercial mortgages with LTV ratio of 61% in Canada and 59% in the U.S. • Robust risk management framework • Has supported our underwriting and favourable credit quality Diversified high quality asset mix avoids risk concentrations Total invested assets (C$442.5 billion, carrying values as of December 31, 2024) Fixed Income & Other Alternative Long-Duration Assets (“ALDA”) Public Equities Note: All footnotes are on slide 47. Corporate Bonds 28% Public Equities 8% Energy 0.5% Timberland & Farmland 1%Private Equity & Other 4% Infrastructure 4% Real Estate 3% Real Estate Interests 1% Other 1% Loans to Bank Clients 1% Cash & Short-Term Securities 6% Mortgages1 12% Securitized MBS/ABS 0.5% Private Placement Debt 11% Government Bonds 19%
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40 Interest rate related sensitivities remain within our risk appetite limits Potential impacts1 of an immediate parallel change in “interest rates”: (C$ millions, post-tax except CSM) 3Q24 4Q24 -50bps +50bps -50bps +50bps CSM - (100) 100 (200) Net income attributed to shareholders 100 (100) 100 (100) Other comprehensive income attributed to shareholders - 100 (100) 200 Total comprehensive income attributed to shareholders 100 - - 100 MLI’s LICAT ratio - - - - Potential impact1 of a parallel change in “corporate spreads”: (C$ millions, post-tax except CSM) -50bps +50bps -50bps +50bps CSM - (100) - (100) Net income attributed to shareholders 100 (100) 100 (100) Other comprehensive income attributed to shareholders (300) 300 (200) 300 Total comprehensive income attributed to shareholders (200) 200 (100) 200 MLI’s LICAT ratio (4) 3 (3) 3 Potential impact1 of a parallel change in “swap spreads”: (C$ millions, post-tax except CSM) -20bps +20bps -20bps +20bps CSM - - - - Net income attributed to shareholders 200 (100) 100 (100) Other comprehensive income attributed to shareholders (200) 100 (100) 100 Total comprehensive income attributed to shareholders - - - - MLI’s LICAT ratio - - - - Note: Please refer to “Caution Related to Sensitivities” in our 2024 MD&A. All footnotes are on slide 47.
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41 Potential immediate impact1 on CSM and total comprehensive income arising from a 10% change in public equity returns 4Q24 (C$ millions) -10% +10% CSM (pre-tax) Net income (post-tax) Other comprehensive income (post-tax) Total comprehensive income (post-tax) CSM (pre-tax) Net income (post-tax) Other comprehensive income (post-tax) Total comprehensive income (post-tax) S&P (260) (230) (210) (440) 260 220 200 420 TSX (70) (50) (30) (80) 70 40 20 60 EAFE (excluding Japan) (80) (10) (30) (40) 80 10 40 50 MSCI Asia (100) (40) (10) (50) 100 40 10 50 HSI (70) (30) - (30) 70 30 - 30 SHCOMP (40) (40) - (40) 40 50 - 50 Total (620) (400) (280) (680) 620 390 270 660 Note: Please refer to “Caution Related to Sensitivities” in our 2024 MD&A. All footnotes are on slide 47.
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Non-GAAP and other financial measures 42 Manulife prepares its Consolidated Financial Statements in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. We use a number of non-GAAP and other financial measures to evaluate overall performance and to assess each of our businesses. This section includes information required by National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure in respect of “specified financial measures” (as defined therein). Non-GAAP financial measures include core earnings (loss); pre-tax core earnings; core earnings before interest, taxes, depreciation and amortization (“core EBITDA”); core Drivers of Earnings (“DOE”) line items for core net insurance service result, core net investment result, other core earnings, and core income tax (expense) recovery; post-tax contractual service margin (“post-tax CSM”); post-tax contractual service margin net of NCI (“post-tax CSM net of NCI”); assets under management and administration (“AUMA”); and adjusted book value. Non-GAAP ratios include core return on common shareholders’ equity (“core ROE”); core ROE for operating segments; diluted core earnings per common share (“core EPS”); core EPS excluding the impact of the Global Minimum Tax Act; financial leverage ratio; adjusted book value per common share; common share core dividend payout ratio (“core dividend payout ratio”); CSM balance per common share; expense efficiency ratio; core EBITDA margin; percentage of core earnings contribution from highest potential businesses; percentage of core earnings contribution from Asia; and percentage of core earnings contribution from LTC & VA. In addition, non-GAAP ratios include the percentage growth/decline on a constant exchange rate (“CER”) basis in any of the above non-GAAP financial measures, net income attributed to shareholders, general expenses, DOE line item for net insurance service result, CSM, CSM net of NCI, impact of new insurance business, new business CSM net of NCI, and diluted earnings per common share. Other specified financial measures include new business value (“NBV”); new business value margin (“NBV margin”); sales; annualized premium equivalent (“APE”) sales; net flows; average assets under management and administration (“average AUMA”); remittances; any of the foregoing specified financial measures stated on a CER basis; and percentage growth/decline in any of the foregoing specified financial measures on a CER basis. Core ROE for operating segments Core ROE for Manulife’s operating segments is a non-GAAP ratio which measures profitability of those segments and is calculated as segment core earnings available to common shareholders as a percentage of the average common shareholders’ allocated equity. The methodology used to allocate total Manulife average common shareholders’ equity to operating segments considers a number of factors including the level of equity and capital consumption of the segments. For more information on the non-GAAP and other financial measures in this document, please see “Non-GAAP and Other Financial Measures” of the 2024 MD&A which are incorporated by reference and available on the SEDAR+ website at www.sedarplus.ca .
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Footnotes 43 Slide Footnote 6 1 For more information on net flows, see "Non-GAAP and Other Financial Measures" above. 2 Highest potential businesses include Asia, Global WAM, Canada group benefits, and North American behavioural insurance produc ts. 3 Percentages of core earnings from highest potential businesses and Asia (Insurance & WAM) are non -GAAP ratios. 4 The expected capital release and core ROE accretion are based on estimates at the time of the announcement of the reinsurance transactions. Core return on common shareholders’ equity (“core ROE”) is a non-GAAP ratio. 5 Share buybacks are expected to result in accretion to core ROE. Assumes the full capital release is deployed towards buybacks . 7 1 The benefits from our global digital, customer leadership initiatives include expense saves, growth absorption, revenue benef its (margin businesses) and new business CSM growth (insurance). 2 Net Promoter Score is based on a rolling four quarter average. 3 Straight-through processing includes money movement. 4 Core expenses is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. Percentage change in core expenses stated on a constant exchange rate basis is a non-GAAP ratio. 5 Expense efficiency ratio is a non-GAAP ratio. 8 1 Based on the annual global employee engagement survey conducted by Gallup. Ranking is measured by the engagement grand mean as compared to Gallup’s Finance and Insurance Company level database. 2 Recognized by Forbes as one of the World’s Best Employers for the fifth consecutive year, one of Canada’s Best Employers for the eighth consecutive year, Canada’s Best Employers for Diversity, and America’s Best Employers for Diversity. 3 Awarded the Gallup Exceptional Workplace Award for the second consecutive year, recognizing our focus on engagement and prior itization of employee experience that creates an authentic, unique culture to empower our colleague population to do and achieve more. 4 For more information on remittances, see "Non-GAAP and Other Financial Measures" above. 9 1 Percentage changes in diluted earnings per common share (“EPS”), diluted core earnings per common share (“core EPS”), core EPS excluding the impact of Global Minimum Taxes (“GMT”), and new business CSM net of non-controlling interests (“NCI”) stated on a constant exchange rate basis are non-GAAP ratios. Percentage changes in annualized premium equivalent (“APE”) sales, and new business value (“NBV”) are stated on a constant exchange rate basis. For more information on APE sales and NBV , see “Non-GAAP and Other Financial Measures” above. 2 For more information on net flows, see "Non-GAAP and Other Financial Measures" above. 3 Core EPS, core ROE, adjusted book value per common share and financial leverage ratio are non-GAAP ratios. 4 Life Insurance Capital Adequacy Test (“LICAT”) ratio of The Manufacturers Life Insurance Company (“MLI”) as at December 31, 2 024. 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.
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Footnotes 44 Slide Footnote 10 1 Core ROE is a non-GAAP ratio. 2 Percentage growth is based on full year 2024 adjusted book value per common share under IFRS 17 relative to full year 2017 book value per commo n share under IFRS 4. Adjusted book value per common share represents book value per common share plus CSM balance (post-tax) net of NCI per common share. Adjusted book value per common share and CSM balance per common share are non-GAAP ratios. 3 Reflects growth of the core earnings percentage contribution from highest potential businesses. Highest potential businesses include Asia, Global WAM, Canada group benefits, and North American behavioural insurance products. Percentage of core earnings from highest potential businesses is a non -GAAP ratio. 4 The TSR figures are based on MFC-TSX sourced from Bloomberg and assumes dividends are re-invested. The TSR ranking is relative to Manulife’s proxy peer group. For the peer companies included in the group, see our 2024 Management Information Circular. 13 1 Percentage change in APE sales and NBV are stated on a constant exchange rate basis. For more information on APE sales, NBV and net flows, see “Non-GAAP and Other Financial Measures” above. 2 Percentage change in new business CSM net of NCI stated on a constant exchange rate basis is a non-GAAP ratio. 14 1 Core drivers of earnings (“DOE”) line items for core net insurance service result, core net investment result, other core earn ings, and core income tax (expense) recovery are non-GAAP financial measures. For more information and an explanation of the components of core DOE line items other than the change in expected credit los s, see “Non-GAAP and Other Financial Measures” in our 2024 MD&A. 2 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. Percentage change in core earnings stated on a constant exchange rate basis is a non-GAAP ratio. 3 The LTC reinsurance transaction with Global Atlantic (closed in February 2024 with an effective date of January 1, 2024) reduced core earnings by C$17 million in 4Q24 compared with 4Q23, reflecting the impact on expected earnings on insurance contracts, insurance experience, and expected investment earnings. Th e Canadian UL reinsurance transaction with RGA (closed in April 2024) reduced core earnings by C$7 million in 4Q24 compared with 4Q23. 15 1 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. Core EPS and core EPS excluding the impact of GMT are non- GAAP ratios. Percentage changes are stated on a constant exchange rate basis. 16 1 Percentage changes in APE sales and NBV are stated on a constant exchange rate basis. For more information on APE sales and NBV, see “Non -GAAP and Other Financial Measures” above. 2 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. Percentage changes in core earnings and new business CSM net of NCI stated on a constant exchange rate basis are non-GAAP ratios.
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Footnotes 45 Slide Footnote 17 1 Percentage change in average AUMA is stated on a constant exchange rate basis. For more information on net flows and average AUMA, see “Non -GAAP and Other Financial Measures” above. 2 Core EBITDA margin is a non-GAAP ratio. 3 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. Percentage change in core earnings stated on a constant exchange rate basis is a non-GAAP ratio. 18 1 Percentage changes in APE sales and NBV are stated on a constant exchange rate basis. For more information on APE sales and NBV, see “Non -GAAP and Other Financial Measures” above. 2 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. Percentage changes in core earnings and new business CSM net of NCI stated on a constant exchange rate basis are non-GAAP ratios. 19 1 Percentage changes in APE sales and NBV are stated on a constant exchange rate basis. For more information on APE sales and NBV, see “Non -GAAP and Other Financial Measures” above. 2 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. Percentage changes in core earnings and new business CSM net of NCI stated on a constant exchange rate basis are non-GAAP ratios. 20 1 For more information on remittances, see "Non-GAAP and Other Financial Measures" above. 2 Reflects the annualized impact of the announced 10% increase in our dividend per common share effective March 2025, based on the number of common shares outstanding as of December 31, 2024, and not adjusted for the potential impacts from share buybacks. 21 1 Adjusted book value per common share and CSM balance per common share are non-GAAP ratios. Adjusted book value per common share represents book value per common share plus CSM balance (post-tax) net of NCI per common share. 2 Financial leverage ratio is a non-GAAP ratio. 22 1 Core ROE, core EPS growth, financial leverage ratio, and common share core dividend payout ratio (“core dividend payout ratio”) are non-GAAP ratios. 2 For more information on remittances, see "Non-GAAP and Other Financial Measures" above. 3 Net of NCI. Percentage changes in new business CSM and CSM balance growth stated on a constant exchange rate basis are non-GAAP ratios. 4 Based on a constant exchange rate basis. 5 Expense efficiency ratio is a non-GAAP ratio. 23 1 Core ROE and core ROE for operating segments are non-GAAP ratios.
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Footnotes 46 Slide Footnote 26 1 Percentage changes in APE sales, NBV, and average AUMA are stated on a constant exchange rate basis. For more information on APE sales, NBV and net flows, see “Non-GAAP and Other Financial Measures” above. 2 Percentage changes in new business CSM net of NCI, CSM balance growth net of NCI (year -over-year change), core earnings and core EPS stated on a constant exchange rate basis are non-GAAP ratios. 3 Core EBITDA margin, CSM balance per common share, core EPS, core ROE, expense efficiency ratio, adjusted book value per commo n share, and financial leverage ratio are non-GAAP ratios. 4 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. 27 1 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. 28 1 The total change in ECL is attributed to shareholders only. The total allowance for credit losses balance is attributed to sh areholders and participating policyholders. 30 1 Organic CSM, new business CSM and CSM balance growth rates stated on a constant exchange rate basis are non-GAAP ratios. 31 1 Percentage changes in APE sales and NBV are stated on a constant exchange rate basis. For more information on APE sales, NBV and net flows, see “Non -GAAP and Other Financial Measures” above. 2 Percentage change in new business CSM net of NCI stated on a constant exchange rate basis is a non-GAAP ratio. 32 1 Core drivers of earnings (“DOE”) line items for core net insurance service result, core net investment result, other core earn ings, and core income tax (expense) recovery are non-GAAP financial measures. For more information and an explanation of the components of core DOE line items other than the change in expected credit los s, see “Non-GAAP and Other Financial Measures” in our 2024 MD&A. 2 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. Percentage change in core earnings stated on a constant exchange rate basis is a non-GAAP ratio. 3 In addition, a C$67 million charge related to the Global Minimum Tax Act was recorded in items excluded from core earnings. 4 The LTC reinsurance transaction with Global Atlantic (closed in February 2024 with an effective date of January 1, 2024) reduced core earnings by C$81 million in 2024 compared with 2023, reflecting the impact on expected earnings on insurance contracts, expected investment earnings, insurance experience and the change in ECL. The Canadian UL reinsurance transaction with RGA (closed in April 2024) reduced core earnings by C$8 million in 4Q24 compared with 4Q23. 33 1 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. Core EPS and core EPS excluding the impact of GMT are non- GAAP ratios. Percentage changes are stated on a constant exchange rate basis. 34 1 Percentage changes in APE sales and NBV are stated on a constant exchange rate basis. For more information on APE sales and NBV, see “Non -GAAP and Other Financial Measures” above. 2 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. Percentage changes in core earnings and new business CSM net of NCI stated on a constant exchange rate basis are non-GAAP ratios.
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Footnotes 47 Slide Footnote 35 1 Percentage change in average AUMA is stated on a constant exchange rate basis. For more information on net flows and average AUMA, see “Non -GAAP and Other Financial Measures” above. 2 Core EBITDA margin is a non-GAAP ratio. 3 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. Percentage change in core earnings stated on a constant exchange rate basis is a non-GAAP ratio. 36 1 Percentage changes in APE sales and NBV are stated on a constant exchange rate basis. For more information on APE sales and NBV, see “Non -GAAP and Other Financial Measures” above. 2 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. Percentage changes in core earnings and new business CSM net of NCI stated on a constant exchange rate basis are non-GAAP ratios. 37 1 Percentage changes in APE sales and NBV are stated on a constant exchange rate basis. For more information on APE sales and NBV, see “Non -GAAP and Other Financial Measures” above. 2 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. Percentage changes in core earnings and new business CSM net of NCI stated on a constant exchange rate basis are non-GAAP ratios. 38 1 Allocation includes asset allocation and balanced strategies. 2 Investment performance data is as of December 31, 2024. The total assets represents C$338.6 billion. Data is sourced from Mor ningstar, Inc. All rights reserved. The information contained herein: 1) is proprietary to Morningstar and/or its content providers; 2) may not be copied or distributed; and 3) is not war ranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. 3 The universe represented is based on a screen of the Morningstar OpenEnd and ETF universes, excluding money market funds, alt ernatives, private markets and virtual classes. Performance of a representative share class as defined by the Morningstar primary flag is utilized as a proxy to determine if the fund ou tperforms peers (i.e., ranks in the top half of Morningstar peer groups). The order of criteria as directed in user preferences is available at investor request. Performance rankings are calculated n et of fees for performance. Fund of funds are included in this disclosure, so there will be double counting of assets for affiliated underlying funds. 39 1 Includes government-insured mortgages (C$7.9 billion or 14% of total mortgages). 40 1 All estimated sensitivities are approximate and based on a single parameter. No simple formula can accurately estimate ultimate future impact. Refer to the “Interest Rate and Spread Risk Sensitivities and Exposure Measures” section in our 2024 MD&A. 41 1 All estimated sensitivities are approximated based on a single parameter. No simple formula can accurately estimate future im pact. Changes in public equity prices may impact other items including, but not limited to, asset-based fees earned on assets under management and administration or policyholder account val ue, and estimated profits and amortization of deferred policy acquisition and other costs. These items are not hedged.