Slides
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Second Quarter 2025 Financial & Operating Results August 7, 2025
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Caution regarding forward-looking statements 2 From time to time, MFC makes written and/or oral forward-looking statements, including in this document. 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, statements with respect to the Company’s strategic priorities and targets, its medium-term financial and operating targets, expected long term returns on alternative-long duration assets (“ALDA”), the expected impact of the transaction described herein, 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); 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 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 operations; geopolitical uncertainty, including international conflicts and trade disputes; acquisitions and our ability to complete acquisitions including the availability of equity and debt financing for this purpose; the disruption of or changes to key elements of the Company’s or public infrastructure systems; environmental concerns, including climate change; our ability to protect our intellectual property and exposure to claims of infringement and our inability to withdraw cash from subsidiaries; the expected benefits from the transaction, and the business performance of Comvest Credit Partners. 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 2Q25 Management’s Discussion and Analysis under “Risk Management and Risk Factors Update” and “Critical and Actuarial and Accounting Policies”, 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. The forward-looking statements in this document 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.
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Conference call participants 3 Phil Witherington President & Chief Executive Officer. Marc Costantini Global Head of Strategy & Inforce Management Stephanie Fadous Chief Actuary Steve Finch President & CEO, Manulife Asia Naveed Irshad President & CEO, Manulife Canada Trevor Kreel Chief Investment Officer Paul Lorentz President & CEO, Manulife Wealth and Asset Management Colin Simpson Chief Financial Officer Brooks Tingle President & CEO, John Hancock Halina von dem Hagen Chief Risk Officer
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4 • Overview and strategic update Phil Witherington, President & Chief Executive Officer • Financial and operating results Colin Simpson, Chief Financial Officer • Acquisition of Comvest Credit Partners Paul Lorentz, President & CEO, Manulife Wealth and Asset Management • Question & Answer session Agenda
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5 Overview and strategic update Phil Witherington President & Chief Executive Officer DRAFT
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Focused on delivering high-quality, sustainable growth 6 Note: See “Caution regarding forward-looking statements” above. All footnotes are on slide 32. • Confidence in our business model, with market-leading operations globally • Continued progress on Digital, Customer Leader ambition, driving improved outcomes and increased productivity • The fundamentals of our business remain strong, and we are well-positioned to navigate and execute in an evolving macroeconomic environment • Delivering high-quality, sustainable growth through the cycle • Investing in our high-potential businesses with strategically focused intent is critical; acquiring Comvest Credit Partners1, adding scaled and highly complementary private credit capabilities • Immediately accretive to core EPS, core ROE and core EBITDA margin • No impact to the pace of our current share buyback program
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Clear path to achieve our 2027 and medium-term financial targets 7 Core ROE1 Remittances2 New business CSM growth3 CSM balance growth3 Core EPS growth1,4 Expense efficiency ratio1 Financial leverage ratio1 Core dividend payout ratio1 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. The 2027 target for remittances is a cumulative remittances target, which reflects cumulative remittances between 2024-2027. All footnotes are on slide 32.
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Resilient 2Q25 results, with strong top-line growth and robust balance sheet 8 APE sales1 ▲15% New business value1 ▲20% Global WAM net flows2 $0.9B New business CSM1 ▲37% Core EPS1,3 ▲2% Core ROE3 15.0% EPS1 ▲88% ROE 15.6% Book value per share ▲5% Adjusted book value per share3 ▲7% MLI’s LICAT ratio5 136% Financial leverage ratio3 23.6% Growth Profitability Balance sheet Core EPS Excl. ECL1,3,4 ▲7% Note: All changes reflect 2Q25 results compared with 2Q24 results. Certain 2024 figures and growth rates have been updated to align with the presentation of Global Minimum Taxes (“GMT”) in 2025 throughout the presentation. See slide 31 for additional information and a list of the impacted measures in this presentation. “Core EPS growth excl. ECL” excludes the impact of strengthened ECL provisions. See corresponding footnotes for further details. All footnotes are on slide 32.
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9 Financial and operating results Colin Simpson Chief Financial Officer
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Continued top-line momentum in Asia; 30%+ new business CSM growth in each insurance segment 10 1,259 1,705 520 345128 180 2Q24 2Q25 1,907 2,230 +15% U.S. Canada Asia APE sales1 (C$ millions) 478 663 76 100 74 119 2Q24 2Q25 628 882 +37% New business CSM2 Global WAM net flows1 1.4 2.1 (1.3) 2.0 (3.2)(0.1) 2Q24 2Q25 0.1 0.9 Retirement Retail Institutional (C$ billions) New business value1 474 622 159 16158 63 2Q24 2Q25 691 846 +20% U.S. Canada Asia (C$ millions) U.S. Canada Asia (C$ millions) Note: All footnotes are on slide 32.
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Strong business growth dampened byunfavourable U.S. mortality experience and higher expected credit loss ("ECL") 11 2Q24 2Q25 Risk adjustment release 224 205 CSM recognized for service provided 507 533 Expected earnings on short-term insurance business 186 204 Impact of new insurance business (34) (20) Insurance experience gains (losses) 14 (38) Other 28 31 Core net insurance service result 925 915 Expected investment earnings 699 665 Change in expected credit loss 1 (102) Expected earnings on surplus 255 241 Other 18 15 Core net investment result 973 819 Core Global Wealth and Asset Management 445 552 Core Manulife Bank 57 53 Other core earnings (343) (315) Total core earnings (pre-tax) 2,057 2,024 Core income tax (expense) recovery (320) (298) Total core earnings 1,737 1,726 Items excluded from core earnings (695) 63 Net income attributed to shareholders 1,042 1,789 Drivers of earnings1 (C$ millions) 2Q25 core earnings decreased 2%2 from the prior year quarter: • Continued business growth in Asia and Canada • Unfavourable insurance experience mainly driven by unfavourable U.S. life insurance claims experience • Net charge in the provision for ECL primarily related to certain below-investment-grade loan investments • Growth in Global WAM pre-tax earnings supported by AUMA growth and disciplined expense management • Reinsurance transactions with RGA reduced core earnings by $20 million 3 compared with prior year quarter • Excluding the impact of the change in ECL, core earnings growth would have been 2% year-over-year 4 Note: All footnotes are on slide 32.
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Core EPS1 (C$) Positive overall market experience; gains from public equities partially offset by lower-than-expected ALDA returns 12 Earnings for the second quarter 2025 (C$ millions, except per share amounts) 1,737 1,726 2Q24 2Q25 -2% Core earnings1 (C$ millions) 2Q25 Post-tax 2Q25 Per share Core earnings1 1,726 0.95 Items excluded from core earnings: Realized gains (losses) on debt instruments (5) - Derivatives and hedge accounting ineffectiveness 74 0.04 Actual less expected long-term returns on public equity 217 0.12 Actual less expected long-term returns on ALDA (172) (0.10) Other investment results (1) - Total market experience gains (losses) 113 0.06 Changes in actuarial methods and assumptions that flow directly through income - - Restructuring charge - - Reinsurance transactions, tax-related items and other (50) (0.03) Net income attributed to shareholders 1,789 0.98 0.91 0.95 2Q24 2Q25 +2% Note: All footnotes are on slide 32.
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Asia: Strong momentum across new business metrics and double-digit growth in core earnings 13 Net income (US$ millions) Core earnings2 (US$ millions) 220 92 259 145 97 159 (8) 2Q24 5 2Q25 449 520 +13% 424 600 2Q24 2Q25 Asia Other Japan Hong Kong Regional Office New business value1 (US$ millions) 162 242 56 32128 177 2Q24 2Q25 346 451 +28% Asia Other Japan Hong Kong APE sales1 (US$ millions) 308 512 101 94 511 627 2Q24 2Q25 920 1,233 +31% Asia Other Japan Hong Kong New business CSM2 (US$ millions) 146 207 66 53 137 220 2Q24 2Q25 349 480 +34% Asia Other Japan Hong Kong • Higher sales reflect strong growth in Hong Kong and Asia Other, which contributed to the double-digit growth in new business CSM and new business value • Strong core earnings growth reflects continued business growth, favourable claims experience and improved impact of new business, partially offset by strengthened ECL provisions Note: All footnotes are on slide 33.
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Global WAM: Continued margin expansion driven by strong growth in AUM and disciplined expense management 14 Core EBITDA margin2 (%) Average AUMA1 (C$ billions) 26.3 30.1 2Q24 2Q25 +380 bps 1.4 2.1 (1.3) 2.0 (3.2)(0.1) 2Q24 2Q25 0.1 0.9 Retirement Retail Institutional 933 1,005 2Q24 2Q25 +7% Net flows by business line1 (C$ billions) Core earnings3 (C$ millions) Net income (C$ millions) • Net inflows of $0.9 billion reflect positive flows from Retirement and Institutional, partially offset by net outflows in Retail • Continued strong core earnings growth supported by higher average AUMA, higher performance fees and continued expense discipline, partially offset by the impact of lower fee spreads and higher taxes Note: All footnotes are on slide 33. 386 463 2Q24 2Q25 +19% 350 482 2Q24 2Q25
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Canada: Solid core earnings growth despite a strong prior year comparator 15 Net income (C$ millions) Core earnings2 (C$ millions) APE sales1 (C$ millions) 59 57 352 136 109 152 2Q24 2Q25 520 345 -34% Individual Insurance Group Insurance Annuities New business CSM2 (C$ millions) 76 100 2Q24 2Q25 +32% • Lower sales reflects strong growth in Individual Insurance, which was more than offset by the non-recurrence of a large-case sale in Group Insurance in 2Q24 • Solid growth in core earnings reflects business growth in Group Insurance and higher investment spreads, partially offset by the impacts of a release in ECL provision in 2Q24 • The RGA Canadian Reinsurance Transaction reduced core earnings by $9 million compared with prior year quarter New business value1 (C$ millions) 159 161 2Q24 2Q25 +1% Note: All footnotes are on slide 33. 307 326 55 5640 37 2Q24 2Q25 402 419 +4% Manulife Bank Annuities Insurance 79 390 2Q24 2Q25
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U.S.: Strong new business results; core earnings impacted by unfavourable mortality experience, lower investment spreads and ECL 16 Net income (US$ millions) Core earnings2 (US$ millions) 98 26 2Q24 2Q25 254 114 49 27 2Q24 2Q25 303 141 -53% U.S. Annuities U.S. Insurance APE sales1 (US$ millions) 93 130 2Q24 2Q25 +40% New business CSM2 (US$ millions) 54 86 2Q24 2Q25 +59% Note: All footnotes are on slide 33. • Strong sales growth reflects continued demand for accumulation insurance products, which contributed to the strong growth in new business CSM and new business value • Lower core earnings primarily reflect unfavourable life insurance claims experience, lower investment spreads and strengthened ECL provisions • The RGA U.S. Reinsurance Transaction reduced core earnings by US$7 million compared with prior year quarter New business value1 (US$ millions) 41 46 2Q24 2Q25 +12%
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Higher year-on-year adjusted book value per share while returning capital to shareholders 17 Adjusted book value per common share1 (C$) 23.71 24.40 25.63 25.88 24.90 9.61 9.87 10.62 10.78 10.88 2Q24 3Q24 4Q24 1Q25 2Q25 33.32 34.27 36.25 36.66 35.78 +7% CSM balance per common share Book value per common share 1 Note: All footnotes are on slide 33. 0.7 0.7 0.7 0.7 0.8 0.6 1.0 1.4 0.5 0.6 2Q24 3Q24 4Q24 1Q25 2Q25 1.4 1.7 2.1 1.2 1.4 Share buyback Common share dividends Capital returned to shareholders (C$ billions)
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Maintained robust balance sheet, providing financial flexibility 18 Note: All footnotes are on slide 33. Capital metrics Capital over supervisory target (C$ billions) LICAT ratio (%) 24 25 23 139 137 136 0 20 40 60 80 100 120 140 0 5 10 15 20 25 2Q24 1Q25 2Q25 Financial leverage ratio1 (%) 25.0 23.9 23.6 2Q24 1Q25 2Q25 Medium-term target of 25%
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Maintained focus on executing on all targets 19 2023 2024 2Q25 YTD Core ROE1 15.9% 16.2% 15.3% Remittances2 $5.5B $7.0B N/A New business CSM growth3 12% 32% 34% CSM balance growth3 21% 3% 6% Core EPS growth1,4 17% 10% 3% Expense efficiency ratio1 45.5% 44.8% 45.7% Financial leverage ratio1 24.3% 24.0% 23.6% Core dividend payout ratio1 42% 42% 45% EPS growth4 47% 8% 23% ROE 11.9% 12.0% 9.7% Common share dividend payout ratio 56% 56% 71% 2027 targets 18%+ $22B+ cumulative Medium-term targets 15% 8-10% 10-12% <45% 25% 35-45% Note: See “Caution regarding forward-looking statements” above. Growth rates shown are compared with the respective prior year periods. Actual remittance results reflect reported annual remittances. The 2027 target for remittances is a cumulative remittances target, which reflects cumulative remittances between 2024-2027. All footnotes are on slide 33.
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Question & Answer session 20
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21 • Financial KPI summary • Insurance experience, ECL and OCI • Changes in CSM • Global WAM investment performance • Invested assets • Sensitivities • Non-GAAP and other financial measures • Footnotes Appendix
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2Q25 financial KPI summary 22 (C$ millions, unless noted) 2Q24 2Q25 Change APE sales1 (C$ billions) $1.9 $2.2 ▲ 15% New business CSM2 $628 $882 ▲ 37% New business value1 $691 $846 ▲ 20% CSM balance growth2 18% 6% ▼ 12 pps Global WAM net flows1 (C$ billions) $0.1 $0.9 ▲ $0.8 Global WAM core EBITDA margin3 26.3% 30.1% ▲ 380 bps Global WAM average AUMA1 (C$ billions) $933 $1,005 ▲ 7% Net income attributed to shareholders $1,042 $1,789 ▲ $747 Core earnings2,4 $1,737 $1,726 ▼ 2% Core EPS2,3 $0.91 $0.95 ▲ 2% Core ROE3 15.7% 15.0% ▼ 0.7 pps Expense efficiency ratio3 45.4% 45.5% ▲ 0.1 pps Book value per share (C$) $23.71 $24.90 ▲ 5% CSM balance per share3 (C$) $9.61 $10.88 ▲ 13% Adjusted book value per share3 (C$) $33.32 $35.78 ▲ 7% MLI’s LICAT ratio 139% 136% ▼ 3 pps Financial leverage ratio3 25.0% 23.6% ▼ 1.4 pps Dividend per common share 40.0¢ 44.0¢ ▲ 10% Growth Profitability Balance Sheet Note: All footnotes are on slide 34.
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Insurance experience impacts on core earnings and CSM 23 2Q25 insurance experience gains/(losses) (C$ millions, pre-tax) Core earnings impact1 CSM (net of NCI) impact Total Impact Asia 34 (9) 25 Canada 40 2 42 U.S. (122) 38 (84) Insurance operating segments (48) 31 (17) Corporate & Other 10 - 10 Total (38) 31 (7) • Insurance experience is reflected in core earnings and in the CSM – the impacts need to be considered together • Total net unfavourable insurance experience reflects adverse mortality experience in U.S. life, largely offset by claims gains in Canada group long- term disability, favourable mortality experience in Asia, and favourable overall LTC experience Note: All footnotes are on slide 34.
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Change in ECL, (charges)/recoveries (C$ millions, pre-tax) Change in ECL for 2Q25 was a charge primarily related to certain below-investment-grade loan investments 1 (55) (5) (46) (102) 2Q24 3Q24 4Q24 1Q25 2Q25 Change in ECL for 2Q25, (charges)/recoveries (C$ millions, pre-tax) Stage 1 Stage 2 Stage 3 Total Net transfers between stages 3 5 (8) - Net new originations or purchases (21) - 7 (14) Changes to risk, parameters and models Credit migration (4) (13) (59) (76) Parameter and model updates, and other (4) (10) 2 (12) Total change in ECL1 (26) (18) (58) (102) 24 Note: For more information on credit risk see Note 7(b) in our Consolidated Financial Statements for the quarter ended June 30, 2025. All footnotes are on slide 34.
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Other comprehensive income reflects the strengthening of Canadian currency 25 2Q25 total comprehensive income (C$ millions) Net income attributed to shareholders 1,789 Other comprehensive income (OCI) Net insurance/reinsurance finance income (expense) (1,291) Fair value through OCI investments gains (losses) 862 Net impact (429) Unrealized foreign exchange gains (losses) of net foreign operations (1,797) Other changes in OCI attributed to shareholders and other equity holders (115) Total OCI (2,341) Total comprehensive income attributed to shareholders (552) Net loss in other comprehensive income driven by: • The currency translation of foreign operations (due to the net strengthening of the Canadian dollar), which does not reflect the fundamental performance of our business
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Generated strong annualized organic growth in CSM of 11%1 26 1H25 changes in CSM (C$ millions, pre-tax) 1,789 467 107 CSM opening balance, net of NCI (Dec 31, 2024) Impact of new insurance business Expected movements related to finance income or expenses CSM recognized for service provided Insurance experience gains (losses) and other Inorganic CSM movement CSM closing balance, net of NCI (June 30, 2025) 22,127 (1,201) (973) 22,316 Organic CSM movement: + 1,162 • Strong annualized growth of 11% in organic CSM during 1H251 was supported by contributions from new business CSM, which increased 34% year-over-year on a YTD basis • Inorganic CSM movement primarily reflects the unfavourable impacts of changes in foreign currency exchange rates • CSM balance of $22.3 billion (net of NCI) in 2Q25 increased 4% compared with December 31, 2024 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 2Q25 MD&A. All footnotes are on slide 34.
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27 Global WAM: Solid long-term investment performance Public asset class 3-year 5-year 10-year % of total Equity 51% 72% 62% 87% Fixed income 23% 75% 73% 87% Allocation1 26% 46% 83% 100% Total2 100% 65% 70% 91% % 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 34. • Our strategies are performing in line with expectations given the current market conditions and our long-term performance track records remain solid 3
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28 • 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 • 54% 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 Note: All footnotes are on slide 34. Total invested assets (C$438.5 billion, carrying values as of June 30, 2025) Public EquitiesFixed Income & Other Alternative Long-Duration Assets (“ALDA”) Corporate Bonds 28% Public Equities 8% Energy 0.5% Timberland & Farmland 1%Private Equity & Other 4% Infrastructure 4% Real Estate 3% Real Estate Interests 1% Other 1% Loans to Bank Clients 1% Cash & Short-Term Securities 5% Mortgages1 13% Securitized MBS/ABS 0.5% Private Placement Debt 11% Government Bonds 19%
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29 Interest rate-related sensitivities remain within our risk appetite limits Potential impacts1 of an immediate parallel change in “interest rates”: (C$ millions, post-tax except CSM) 1Q25 2Q25 -50bp +50bp -50bp +50bp CSM 100 (200) 100 (300) Net income attributed to shareholders 100 (100) 100 (100) Other comprehensive income attributed to shareholders (100) 100 (100) 100 Total comprehensive income attributed to shareholders - - - - MLI’s LICAT ratio (1) - (1) - Potential impact1 of a parallel change in “corporate spreads”: (C$ millions, post-tax except CSM) -50bp +50bp -50bp +50bp CSM - (100) (100) - Net income attributed to shareholders 100 (100) - - Other comprehensive income attributed to shareholders (200) 300 (100) 200 Total comprehensive income attributed to shareholders (100) 200 (100) 200 MLI’s LICAT ratio (3) 3 (3) 3 Potential impact1 of a parallel change in “swap spreads”: (C$ millions, post-tax except CSM) -20bp +20bp -20bp +20bp CSM - - - - Net income attributed to shareholders 100 (100) 100 (100) Other comprehensive income attributed to shareholders (200) 200 (200) 200 Total comprehensive income attributed to shareholders (100) 100 (100) 100 MLI’s LICAT ratio - - - - Note: Please refer to “Caution Related to Sensitivities” in our 2Q25 MD&A. All footnotes are on slide 34.
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30 Potential immediate impact1 on CSM and total comprehensive income arising from a 10% change in public equity returns 2Q25 (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) (240) (200) (440) 260 230 190 420 TSX (70) (50) (40) (90) 60 50 40 90 EAFE (excluding Japan) (100) (10) (20) (30) 100 10 30 40 MSCI Asia (100) (30) (10) (40) 100 30 10 40 HSI (30) (20) - (20) 30 20 - 20 SHCOMP (50) (50) - (50) 50 50 - 50 Total (610) (400) (270) (670) 600 390 270 660 Note: Please refer to “Caution Related to Sensitivities” in our 2Q25 MD&A. All footnotes are on slide 34.
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Non-GAAP and other financial measures 31 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”); 2017 core earnings; core earnings excluding ECL; 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”); diluted core earnings per common share (“core EPS”); core EPS excluding ECL; 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; and core EBITDA margin. 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. For more information on the non-GAAP and other financial measures in this document, please see “Non-GAAP and Other Financial Measures” of the 2Q25 and 2024 MD&A which are incorporated by reference and available on the SEDAR+ website at www.sedarplus.ca . Global Minimum Taxes (“GMT”) On June 20, 2024, the Canadian government passed the Global Minimum Tax Act into law. Canada’s GMT is applied retroactively to fiscal periods commencing on or after December 31, 2023. As additional local jurisdictions are expected to enact the GMT in 2025, GMT is now recognized in net income in the reporting segments whose earnings are subject to this tax. GMT is reported in both core earnings and items excluded from core earnings in line with our definition of core earnings in section E3 Non-GAAP and Other Financial Measures of the 2Q25 MD&A. To improve the comparability of results between 2025 and 2024, we have updated certain 2024 non-GAAP and other financial measures to reflect the impact of GMT, including quarterly core earnings, core ROE, core EPS, core dividend payout ratio, financial leverage ratio, adjusted book value per common share, CSM balance per common share, new business value, and post- tax CSM net of NCI. For further information, please see section A7 “Global Minimum Taxes (GMT)” of the 2Q25 MD&A, which is incorporated by reference.
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Footnotes 32 Slide Footnote 6 1 Subject to customary closing conditions and approvals. 7 1 Core ROE, diluted core earnings per common share (“core EPS”) growth, expense efficiency ratio, f inancial 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 non-controlling interests. 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. 8 1 Percentage changes in diluted earnings per common share (“EPS”), core EPS, core EPS excluding ECL, 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 ex change 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 EPS excluding ECL, core ROE, adjusted book value per common share and financial leverage ratio are non-GAAP ratios. 4 The impact of ECL provisions reflect strengthened provisions of $83 million post-tax in 2Q25, compared with strengthened provisions of $4 million post-tax in 2Q24. Excludes ECL impacts from the Canadian universal life reinsurance transaction with RGA (“RGA Canadian Reinsurance Transaction”) in 2Q24. 5 Life Insurance Capital Adequacy Test (“LICAT”) ratio of The Manufacturers Life Insurance Company (“MLI”) as at June 30, 2025. 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. 10 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. 11 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, 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 change in core earnings stated on a constant exchange rate basis is a non-GAAP ratio. 3 The LTC reinsurance transaction with RGA (“RGA U.S. Reinsurance Transaction”) reduced core earnings by C$11 million in 2Q25 c ompared with 2Q24 and the RGA Canadian Reinsurance Transaction reduced core earnings by C$9 million in 2Q25 compared with 2Q24. 4 Core earning excluding ECL is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. Percentage change in core earnings excluding ECL stated on a constant exchange rate basis is a non-GAAP ratio. Impact of ECL provisions reflects strengthened provisions of $83 million post-tax in 2Q25, compared with strengthened provisions of $4 million post-tax in 2Q24. Excludes ECL impacts from the RGA Canadian Reinsurance Transaction in 2Q24. 12 1 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. Core EPS is a non-GAAP ratio. Percentage changes are stated on a constant exchange rate basis.
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Footnotes 33 Slide Footnote 13 1 Percentage changes in APE sales and NBV are stated on a constant exchange rate basis. For more information on APE sales and N BV, 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. 14 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. 15 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. 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. 17 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. 18 1 Financial leverage ratio is a non-GAAP ratio. 19 1 Core ROE, core EPS growth, expense efficiency ratio, 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.
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Footnotes 34 Slide Footnote 22 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. 23 1 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. 24 1 The total change in ECL is attributed to shareholders only. 26 1 Annualized organic CSM, new business CSM and CSM balance growth rates stated on a constant exchange rate basis are non-GAAP ratios. 27 1 Allocation includes asset allocation and balanced strategies. 2 Investment performance data is as of June 30, 2025. The total assets represents C$332.9 billion. Data is sourced from Morning star, 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 warranted t o 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. 28 1 Includes government-insured mortgages (C$8.2 billion or 15% of total mortgages). 29 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 2Q25 MD&A. 30 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 value, and estimated profits and amortization of deferred policy acquisition and other costs. These items are not hedged.