C$ unless otherwise
stated
TSX/NYSE/PSE:
MFC SEHK:
945
|
This earnings news
release for Manulife Financial Corporation ("Manulife" or the
"Company") should be read in conjunction with the Company's Third
Quarter 2022 Report to Shareholders, including our unaudited
interim Consolidated Financial Statements for the three and nine
months ended September 30, 2022, prepared in accordance with
International Financial Reporting Standards ("IFRS") as issued by
the International Accounting Standards Board ("IASB"), which are
available on our website at
www.manulife.com/en/investors/results-and-reports. The MD&A and
additional information relating to the Company is available on the
SEDAR website at http://www.sedar.com and on the U.S. Securities
and Exchange Commission's ("SEC") website at
http://www.sec.gov.
|
TORONTO, Nov. 9, 2022
/CNW/ - Today, Manulife announced its third quarter of 2022
("3Q22") results. Key highlights include:
- Net income attributed to shareholders of $1.3 billion in 3Q22, down $0.2 billion from the third quarter of 2021
("3Q21")
- Core earnings1 of $1.3
billion in 3Q22, down 14% on a constant exchange rate basis
from 3Q212. 3Q22 core earnings include a $256 million charge in our Property and Casualty
("P&C") reinsurance business related to Hurricane Ian.
- LICAT ratio3 of 136%
- Core ROE4 of 10.3% and ROE of 10.5% in 3Q22
- NBV5 of $514 million
in 3Q22, down 6%5 from 3Q21
- APE sales5 of $1.3
billion in 3Q22, down 6% from 3Q21
- Global Wealth and Asset Management ("Global WAM") net
inflows5 of $3.0 billion
in 3Q22, compared with net inflows of $9.8
billion in 3Q21
- The impact to net income attributed to shareholders of our
annual review of actuarial methods and assumptions was a modest net
gain of $36 million in total, and
approximately net neutral for long-term care ("LTC")
- Purchased for cancellation approximately 23 million common
shares in 3Q22 for $0.5 billion
"We delivered resilient operating results in the third quarter
amidst a challenging market and operating environment," said
Manulife President & Chief Executive Officer Roy Gori. "We continued to deliver solid results
in our Asia business and delivered in-force business growth of 8%
and 12% in the third quarter and year-to-date, respectively. And,
in Global WAM, we generated net inflows of $3.0 billion and our core EBITDA
margin4 was 32.7% in 3Q22, a very strong achievement
given the market volatility."
"We are focused on driving resilience for our people, customers
and communities. Through our behavioural insurance offerings, we
are committed to helping our customers lead longer, healthier,
better lives, and we are rewarding them for making healthy
lifestyle choices. We are expanding our Manulife Vitality
offerings in Canada across our
core product suite. In the U.S., we have made a multi-cancer, early
detection test available to a pilot group of existing customers
through John Hancock Vitality, enabling customers to make more
informed choices about their health. And, in Asia, we continue to roll out servicing
features in our ManulifeMOVE app, furthering its position as a
one-stop health and servicing gateway for our customers," added Mr.
Gori.
"Our diverse business and strong capital levels position us well
to navigate an uncertain market environment. Our LICAT ratio of
136% provides significant flexibility, and we have repurchased
approximately 3.1% of our common shares for $1.4 billion so far this year6 as we
remain committed to delivering value to shareholders," said
Phil Witherington, Chief Financial
Officer.
"Expense efficiency continues to be a key strategic priority and
important lever in the current operating environment. Our third
quarter general expenses were held in line with the prior year,
providing an offset to topline pressure," Mr. Witherington
continued.
|
__________
|
|
1
|
Core earnings is a
non-GAAP financial measure. For more information on non-GAAP and
other financial measures, see "Non-GAAP and other financial
measures" below and in our Third Quarter 2022 Management's
Discussion and Analysis ("3Q22 MD&A") for additional
information.
|
|
2
|
Percentage growth /
declines in core earnings stated on a constant exchange rate basis
is a non-GAAP ratio.
|
|
3
|
Life Insurance Capital
Adequacy Test ("LICAT") ratio of The Manufacturers Life Insurance
Company ("MLI"). 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.
|
|
4
|
Core return on common
shareholders' equity ("Core ROE") and core EBITDA margin are
non-GAAP ratios.
|
|
5
|
For more information on
new business value ("NBV"), annualized premium equivalent ("APE")
sales and net flows, see "Non-GAAP and other financial measures"
below. In this news release, percentage growth / declines in
NBV and APE sales are stated on a constant exchange rate
basis.
|
|
6
|
As of October 31, 2022
the Company has purchased for cancellation approximately 60 million
common shares for $1.4 billion.
|
BUSINESS HIGHLIGHTS:
In Asia, we accelerated the utilization of ManuAcademy, our
regional digital learning platform rolled out to Vietnam last quarter. Since the roll-out, the
platform has enabled the onboarding of over 11,000 newly-recruited
insurance agents, and delivered over 150,000 training hours to
approximately 45,000 insurance agents. Our new training series,
Manulife MasterClass, captures best practices from our Million
Dollar Round Table agents and shares them across all agents through
the platform. In Canada, we
announced an expansion of the Manulife Vitality program,
making it available to new term and universal life insurance
policyholders effective November
2022. In the U.S., we continue to innovate our wellness
offerings and announced a partnership with GRAIL, a healthcare
company, offering access to Galleri®, their leading edge,
multi-cancer early detection test to a pilot group of customers
through John Hancock Vitality. As the first life insurance carrier
to make GRAIL's Galleri® test available, we are enabling eligible
customers to take proactive steps to better understand and make
more informed choices about their health. In Global WAM, we
expanded our Environmental, Social and Governance investment
offerings with the launch of the Global Climate Action strategy in
Europe to meet increasing demand
for sustainable investment solutions.
In addition, we continued to make progress on our digital
journey in 3Q22. In Asia, we continued to drive the adoption of
ePOS, our proprietary digital onboarding app, to enhance the
distributor experience and enable faster, error-free new business
application submissions with case adoption at 90%, an increase of 9
percentage points compared with 3Q21. In the U.S., we reduced the
amount of time to onboard producers within our traditional
brokerage channel by 92% by automating the background check
process. In Global WAM, we made a number of enhancements to our
digital platform in Retirement including rolling out functionality
that enables members in Canada to
book one-on-one meetings with a Manulife PlanRight financial
advisor directly in the mobile app, which generated successful
engagement, and resulted in approximately 1,400 advisor meeting
requests in 3Q22. In addition, we recently enhanced digital service
features which enable members in the U.S. to self-serve to a
greater extent, resulting in a reduction of approximately 10,000
calls to the call centre this quarter.
FINANCIAL HIGHLIGHTS:
|
Quarterly
Results
|
YTD
Results
|
|
($ millions, unless
otherwise stated)
|
3Q22
|
3Q21
|
2022
|
2021
|
|
Profitability:
|
|
|
|
|
|
Net income attributed
to shareholders
|
$
1,347
|
$ 1,592
|
$ 5,403
|
$ 5,021
|
|
Core
earnings
|
$
1,322
|
$ 1,517
|
$ 4,436
|
$ 4,828
|
|
Diluted earnings per
common share ($)
|
$
0.68
|
$ 0.80
|
$
2.72
|
$ 2.51
|
|
Diluted core earnings
per common share ("Core EPS") ($)(1)
|
$
0.67
|
$ 0.76
|
$
2.22
|
$ 2.41
|
|
Return on common
shareholders' equity ("ROE")
|
10.5 %
|
12.6 %
|
14.0 %
|
13.7 %
|
|
Core ROE
|
10.3 %
|
12.0 %
|
11.4 %
|
13.2 %
|
|
Expense efficiency
ratio(1)
|
53.9 %
|
51.3 %
|
51.0 %
|
48.9 %
|
|
General
expenses
|
$
1,900
|
$ 1,904
|
$
5,641
|
$ 5,828
|
|
Business
Performance:
|
|
|
|
|
|
Asia
new business value
|
$
333
|
$
399
|
$ 1,010
|
$ 1,275
|
|
Canada
new business value
|
$
89
|
$
71
|
$
275
|
$
225
|
|
U.S. new business
value
|
$
92
|
$
69
|
$
253
|
$
188
|
|
Total new business
value
|
$
514
|
$
539
|
$ 1,538
|
$ 1,688
|
|
Asia APE
sales
|
$
854
|
$
930
|
$ 2,740
|
$ 3,160
|
|
Canada APE
sales
|
$
285
|
$
303
|
$ 1,009
|
$
932
|
|
U.S. APE
sales
|
$
207
|
$
203
|
$
615
|
$
544
|
|
Total APE
sales
|
$
1,346
|
$ 1,436
|
$ 4,364
|
$ 4,636
|
|
Global WAM net flows ($
billions)
|
$
3.0
|
$
9.8
|
$
11.6
|
$ 19.8
|
|
Global WAM gross flows
($ billions)(2)
|
$
32.0
|
$ 35.2
|
$ 104.1
|
$ 108.7
|
|
Global WAM assets under
management and administration ($ billions)(3)
|
$
748.8
|
$ 823.6
|
$ 748.8
|
$ 823.6
|
|
Global WAM total
invested assets ($ billions)
|
$
3.7
|
$
4.3
|
$
3.7
|
$
4.3
|
|
Global WAM net
segregated funds net assets ($ billions)
|
$
214.5
|
$ 244.6
|
$ 214.5
|
$ 244.6
|
|
Financial
Strength:
|
|
|
|
|
|
MLI's LICAT
ratio
|
136 %
|
138 %
|
136 %
|
138 %
|
|
Financial leverage
ratio
|
28.8 %
|
25.5 %
|
28.8 %
|
25.5 %
|
|
Book value per common
share ($)
|
$
26.17
|
$ 25.78
|
$ 26.17
|
$ 25.78
|
|
Book value per common
share excluding AOCI ($)
|
$
25.88
|
$ 23.41
|
$ 25.88
|
$ 23.41
|
|
(1)
|
This item is a non-GAAP
ratio.
|
|
(2)
|
For more information on
gross flows, see "Non-GAAP and other financial measures" below and
in our 3Q22 MD&A for additional information.
|
|
(3)
|
This item is a non-GAAP
financial measure.
|
PROFITABILITY:
Reported net income attributed to shareholders of
$1.3 billion in 3Q22, down
$0.2 billion from
3Q21
The decrease in net income attributed to
shareholders was primarily driven by lower gains from
investment-related experience and lower core earnings, partially
offset by a smaller charge from the direct impact of markets. The
direct impact of markets in 3Q21 included a $0.5 billion charge related to the impact of
updated Ultimate Reinvestment Rate assumptions issued by the
Canadian Actuarial Standards Board. Investment-related experience
in 3Q22 reflected the favourable impact of fixed income
reinvestment activities and favourable credit experience, partially
offset by lower-than-expected returns (including fair value
changes) on alternative long-duration assets primarily related to
real estate. The charge from the direct impact of markets in 3Q22
was primarily driven by the impact of unfavourable equity market
performance, losses from the sale of available-for-sale ("AFS")
bonds and swap spread movements, partially offset by gains due to
rising interest rates in the U.S., a flattening of the yield curve
in Canada, and widening corporate
spreads in the U.S.
Delivered core earnings of $1.3
billion in 3Q22, a decrease of 14% compared with
3Q21
The decrease in core earnings was driven by a
$256 million charge in our P&C
Reinsurance business for estimated losses related to Hurricane Ian
(compared with a $152 million charge
in the prior year quarter for estimated losses related to Hurricane
Ida and the European floods), lower net gains on sales of AFS
equities and the unfavourable impact of markets on seed money
investments in new and segregated mutual funds in Corporate and
Other, lower new business gains in Asia and the U.S., lower U.S. Annuities
in-force earnings due to the variable annuity reinsurance
transaction that closed in the first quarter of 2022, and a higher
charge from net unfavourable U.S. policyholder experience. These
items were partially offset by higher yields on fixed income
investments and lower expenses in Corporate and Other, and in-force
business growth in Asia and
Canada. Lower expenses in
Corporate and Other reflect lower supplemental pension expense
primarily due to market impacts and lower variable incentive
compensation.
ANNUAL REVIEW OF ACTUARIAL METHODS AND ASSUMPTIONS:
We completed our annual review of actuarial methods and
assumptions, which resulted in a modest net gain of $36 million post-tax to net income attributed to
shareholders in total and approximately net neutral impact for LTC.
The review included a comprehensive study of our U.S. LTC
experience, including all aspects of claims assumptions and future
premium rate increases. Other assumptions reviewed included
mortality and certain lapse assumptions for Canada's life insurance business, as well as
lapse and mortality assumptions for certain Asia markets.
BUSINESS PERFORMANCE:
New business value ("NBV") of $514
million in 3Q22, a decrease of 6% compared with
3Q21
In Asia, NBV decreased 17% from 3Q21 reflecting lower
sales in Hong Kong and changes in
product mix in Asia
Other7, partially offset by higher individual
protection and other wealth sales in Japan. In Canada, NBV increased 25% from 3Q21, driven by
higher margins in our insurance businesses, partially offset by
lower volumes in Annuities. In the U.S., NBV increased 27% from
3Q21, driven by improved margins due to pricing actions, higher
interest rates and changes in product mix.
Annualized premium equivalent ("APE") sales of $1.3 billion in 3Q22, a decrease of 6% compared
with 3Q21
In Asia, APE sales decreased 7%, reflecting lower
sales in Hong Kong, partially
offset by higher sales in Japan
and Asia Other. In Hong Kong, APE sales decreased 40% driven by
the impact of weaker customer sentiment on financial planning
decisions and tighter COVID-19 containment measures in Macau during the quarter. In Japan, APE sales increased 22% as a result of
higher individual protection and other wealth sales. Asia Other APE
sales increased 6%, reflecting higher bancassurance sales in
mainland China, Vietnam and Singapore, partially offset by lower agency
sales in Singapore and mainland
China. In Canada, APE sales decreased 6%, primarily
driven by lower segregated fund sales and the non-recurrence of a
large affinity markets sale in 3Q21, partially offset by normal
variability of large-case group insurance sales. In the U.S.,
APE sales decreased 1%, primarily due to lower sales of
domestic life insurance products, partially offset by an increase
in international sales, which are reported as part of U.S. segment
results. APE sales of products with the John Hancock Vitality PLUS
feature increased 12% compared with 3Q21, reflecting the increasing
attractiveness of the Vitality feature as an option for
health-focused life insurance consumers.
Reported Global Wealth and Asset Management net inflows of
$3.0 billion in 3Q22, compared with
3Q21 net inflows of $9.8
billion
Net inflows in Retirement were $1.4 billion in 3Q22 compared with net inflows of
$0.6 billion in 3Q21, driven by
growth in member contributions and lower plan redemptions. Net
inflows in Retail were $1.0 billion
in 3Q22 compared with net inflows of $7.9
billion in 3Q21, reflecting lower gross flows and higher
mutual fund redemption rates due to decreased investor demand amid
equity market declines and higher interest rates. Net inflows in
Institutional Asset Management were $0.6
billion in 3Q22 compared with net inflows of $1.3 billion in 3Q21, driven by higher
redemptions, partially offset by higher sales of equity and fixed
income mandates.
|
________________________________
|
|
7 Asia
Other excludes Hong Kong and Japan.
|
QUARTERLY EARNINGS RESULTS CONFERENCE
CALL
Manulife Financial Corporation will host a Third
Quarter 2022 Earnings Results Conference Call at 8:00 a.m. ET on November
10, 2022. For local and international locations, please call
416-340-2217 or toll free, North
America 1-800-806-5484 (Passcode: 2059970#). Please call in
15 minutes before the call starts. You will be required to provide
your name and organization to the operator. A replay of this call
will be available by 11:00 a.m. ET on
November 10, 2022 through
February 4th, 2023 by calling
905-694-9451 or 1-800-408-3053 (Passcode: 7330185#).
The conference call will also be webcast through Manulife's
website at 8:00 a.m. ET on
November 10, 2022. You may access the
webcast at: manulife.com/en/investors/results-and-reports. An
archived version of the webcast will be available on the website
following the call at the same URL as above.
The Third Quarter 2022 Statistical Information Package is also
available on the Manulife website
at: www.manulife.com/en/investors/results-and-reports.
Any information contained in, or otherwise accessible
through, websites mentioned in this news release does not form a
part of this document unless it is expressly incorporated by
reference.
EARNINGS:
The following table presents net income attributed to
shareholders, consisting of core earnings and details of the items
excluded from core earnings:
|
Quarterly
Results
|
YTD
Results
|
|
($ millions)
|
3Q22
|
2Q22
|
3Q21
|
2022
|
2021
|
|
Core
earnings
|
|
|
|
|
|
|
Asia
|
$
513
|
$
513
|
$
533
|
$
1,563
|
$
1,629
|
|
Canada
|
350
|
345
|
311
|
1,009
|
893
|
|
U.S.
|
384
|
456
|
490
|
1,326
|
1,469
|
|
Global Wealth and Asset
Management
|
345
|
305
|
351
|
974
|
1,019
|
|
Corporate and Other
(excluding core investment gains)
|
(370)
|
(157)
|
(268)
|
(736)
|
(482)
|
|
Core investment
gains(1)
|
100
|
100
|
100
|
300
|
300
|
|
Total core
earnings
|
$
1,322
|
$
1,562
|
$
1,517
|
$
4,436
|
$
4,828
|
|
Items excluded from
core earnings:(1)
Investment-related
experience outside of core earnings
|
125
|
591
|
700
|
1,274
|
1,516
|
|
Direct impact of equity
markets and interest rates and variable annuity guarantee
liabilities
|
(54)
|
(1,067)
|
(597)
|
(1,024)
|
(1,215)
|
|
Change in actuarial
methods and assumptions
|
36
|
-
|
(41)
|
36
|
(41)
|
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
(115)
|
|
Reinsurance
transaction, tax-related items and other
|
(82)
|
-
|
13
|
681
|
48
|
|
Net income
attributed to shareholders
|
$
1,347
|
$
1,086
|
$
1,592
|
$
5,403
|
$
5,021
|
|
(1)
|
These items are
disclosed under OSFI's Source of Earnings Disclosure (Life
Insurance Companies) guideline.
|
NON-GAAP AND OTHER FINANCIAL MEASURES:
The Company 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 available to common
shareholders; core general expenses; core earnings before income
taxes, depreciation and amortization ("core EBITDA") and assets
under management and administration ("AUMA").
Non-GAAP ratios include core return on common
shareholders' equity ("core ROE"); diluted core earnings per common
share ("core EPS"); core EBITDA margin; expense efficiency ratio;
and percentage growth/decline on a constant exchange rate basis in
any of the above non-GAAP financial measures.
Other specified financial measures include assets under
administration; NBV; APE sales; gross flows; net flows; and
percentage growth/decline in such other financial measures.
Non-GAAP financial measures and non-GAAP ratios are not
standardized financial measures under GAAP and, therefore, might
not be comparable to similar financial measures disclosed by other
issuers. Therefore, they should not be considered in isolation or
as a substitute for any other financial information prepared in
accordance with GAAP. For more information on non-GAAP financial
measures, including those referred to above, see the section
"Non-GAAP and other financial measures" in our 3Q22 MD&A, which
is incorporated by reference.
Reconciliation of core earnings to net income attributed to
shareholders
|
3Q22
|
|
($ millions, post-tax
and based on actual foreign exchange
rates in effect in the applicable reporting period, unless
otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Income (loss) before
income taxes
|
$
476
|
$
819
|
$
766
|
$ 395
|
$
(819)
|
$ 1,637
|
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
|
Core
earnings
|
(61)
|
(116)
|
(62)
|
(50)
|
18
|
(271)
|
|
Items excluded from
core earnings
|
2
|
(75)
|
(52)
|
-
|
64
|
(61)
|
|
Income tax (expense)
recovery
|
(59)
|
(191)
|
(114)
|
(50)
|
82
|
(332)
|
|
Net income
(post-tax)
|
417
|
628
|
652
|
345
|
(737)
|
1,305
|
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
|
Non-controlling
interests
|
(19)
|
-
|
-
|
-
|
1
|
(18)
|
|
Participating
policyholders
|
(85)
|
50
|
11
|
-
|
-
|
(24)
|
|
Net income (loss)
attributed to shareholders (post-tax)
|
521
|
578
|
641
|
345
|
(738)
|
1,347
|
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
|
Investment-related
experience outside of core
earnings
|
(3)
|
97
|
127
|
-
|
(96)
|
125
|
|
Direct impact of
equity markets and interest rates and
variable annuity
guarantee liabilities
|
95
|
96
|
137
|
-
|
(382)
|
(54)
|
|
Change in actuarial
methods and assumptions
|
(45)
|
35
|
36
|
-
|
10
|
36
|
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Reinsurance
transactions, tax related items and other
|
(39)
|
-
|
(43)
|
-
|
-
|
(82)
|
|
Core earnings
(post-tax)
|
$
513
|
$
350
|
$
384
|
$ 345
|
$
(270)
|
$ 1,322
|
|
Income tax on core
earnings (see above)
|
61
|
116
|
62
|
50
|
(18)
|
271
|
|
Core earnings
(pre-tax)
|
$
574
|
$
466
|
$
446
|
$ 395
|
$
(288)
|
$ 1,593
|
|
(1)
|
These items are
disclosed under OSFI's Source of Earnings Disclosure (Life
Insurance Companies) guideline.
|
Core earnings, CER basis
|
3Q22
|
|
(Canadian $ millions,
post-tax and based on actual foreign
exchange rates in effect in the applicable reporting period,
unless
otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Core earnings
(post-tax)
|
$
513
|
$
350
|
$
384
|
$ 345
|
$
(270)
|
$ 1,322
|
|
CER
adjustment(1)
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Core earnings, CER
basis (post-tax)
|
$
513
|
$
350
|
$
384
|
$ 345
|
$
(270)
|
$ 1,322
|
|
Income tax on core
earnings, CER basis(2)
|
61
|
116
|
62
|
50
|
(18)
|
271
|
|
Core earnings, CER
basis (pre-tax)
|
$
574
|
$
466
|
$
446
|
$ 395
|
$
(288)
|
$ 1,593
|
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 3Q22.
|
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 3Q22.
|
Reconciliation of core earnings to net income attributed to
shareholders
|
2Q22
|
|
($ millions, post-tax
and based on actual foreign exchange
rates in effect in the applicable reporting period,unless
otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Income (loss) before
income taxes
|
$
216
|
$
224
|
$ 1,010
|
$
362
|
$ (555)
|
$ 1,257
|
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
|
Core
earnings
|
(74)
|
(119)
|
(92)
|
(57)
|
4
|
(338)
|
|
Items excluded from
core earnings
|
44
|
64
|
(82)
|
-
|
54
|
80
|
|
Income tax (expense)
recovery
|
(30)
|
(55)
|
(174)
|
(57)
|
58
|
(258)
|
|
Net income
(post-tax)
|
186
|
169
|
836
|
305
|
(497)
|
999
|
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
|
Non-controlling
interests
|
(11)
|
-
|
-
|
-
|
-
|
(11)
|
|
Participating
policyholders
|
(164)
|
84
|
4
|
-
|
-
|
(76)
|
|
Net income (loss)
attributed to shareholders (post-tax)
|
361
|
85
|
832
|
305
|
(497)
|
1,086
|
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
|
Investment-related
experience outside of core
earnings
|
80
|
86
|
591
|
-
|
(166)
|
591
|
|
Direct impact of
equity markets and interest rates and
variable annuity
guarantee liabilities
|
(232)
|
(346)
|
(215)
|
-
|
(274)
|
(1,067)
|
|
Change in actuarial
methods and assumptions
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Reinsurance
transactions, tax related items and other
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Core earnings
(post-tax)
|
$
513
|
$
345
|
$
456
|
$ 305
|
$
(57)
|
$ 1,562
|
|
Income tax on core
earnings (see above)
|
74
|
119
|
92
|
57
|
(4)
|
338
|
|
Core earnings
(pre-tax)
|
$
587
|
$
464
|
$
548
|
$ 362
|
$
(61)
|
$ 1,900
|
|
(1)
|
These items are
disclosed under OSFI's Source of Earnings Disclosure (Life
Insurance Companies) guideline.
|
Core earnings, CER basis
|
2Q22
|
|
|
(Canadian $ millions,
post-tax and based on actual foreign
exchange rates in effect in the applicable reporting period,
unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Core earnings
(post-tax)
|
$
513
|
$
345
|
$
456
|
$
305
|
$
(57)
|
$ 1,562
|
|
CER
adjustment(1)
|
3
|
-
|
10
|
4
|
1
|
18
|
|
Core earnings, CER
basis (post-tax)
|
$
516
|
$
345
|
$
466
|
$
309
|
$
(56)
|
$ 1,580
|
|
Income tax on core
earnings, CER basis(2)
|
75
|
119
|
94
|
58
|
(5)
|
341
|
|
Core earnings, CER
basis (pre-tax)
|
$
591
|
$
464
|
$
560
|
$
367
|
$
(61)
|
$ 1,921
|
|
|
|
|
|
|
|
|
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 3Q22.
|
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 3Q22.
|
Reconciliation of core earnings to net income attributed to
shareholders
|
3Q21
|
|
($ millions, post-tax
and based on actual foreign exchange
rates in effect in the applicable reporting period, unless
otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Income (loss) before
income taxes
|
$
650
|
$ (101)
|
$
800
|
$ 418
|
$ (287)
|
$ 1,480
|
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
|
Core
earnings
|
(52)
|
(109)
|
(79)
|
(66)
|
12
|
(294)
|
|
Items excluded from
core earnings
|
(31)
|
153
|
(16)
|
(1)
|
23
|
128
|
|
Income tax (expense)
recovery
|
(83)
|
44
|
(95)
|
(67)
|
35
|
(166)
|
|
Net income
(post-tax)
|
567
|
(57)
|
705
|
351
|
(252)
|
1,314
|
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
|
Non-controlling
interests
|
48
|
-
|
-
|
-
|
-
|
48
|
|
Participating
policyholders
|
(303)
|
(31)
|
8
|
-
|
-
|
(326)
|
|
Net income (loss)
attributed to shareholders (post-tax)
|
822
|
(26)
|
697
|
351
|
(252)
|
1,592
|
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
|
Investment-related
experience outside of core
earnings
|
62
|
97
|
617
|
-
|
(76)
|
700
|
|
Direct impact of
equity markets and interest rates and
variable annuity
guarantee liabilities
|
(129)
|
(369)
|
(96)
|
-
|
(3)
|
(597)
|
|
Change in actuarial
methods and assumptions
|
343
|
(65)
|
(314)
|
-
|
(5)
|
(41)
|
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Reinsurance
transactions, tax related items and other
|
13
|
-
|
-
|
-
|
-
|
13
|
|
Core earnings
(post-tax)
|
$
533
|
$
311
|
$
490
|
$ 351
|
$ (168)
|
$ 1,517
|
|
Income tax on core
earnings (see above)
|
52
|
109
|
79
|
66
|
(12)
|
294
|
|
Core earnings
(pre-tax)
|
$
585
|
$
420
|
$
569
|
$ 417
|
$ (180)
|
$ 1,811
|
|
(1)
|
These items are
disclosed under OSFI's Source of Earnings Disclosure (Life
Insurance Companies) guideline.
|
Core earnings, CER basis
|
3Q21
|
|
|
(Canadian $ millions,
post-tax and based on actual foreign
exchange rates in effect in the applicable reporting period,
unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Core earnings
(post-tax)
|
$
533
|
$
311
|
$
490
|
$ 351
|
$ (168)
|
$ 1,517
|
|
CER
adjustment(1)
|
(8)
|
-
|
18
|
6
|
(4)
|
12
|
|
Core earnings, CER
basis (post-tax)
|
$
525
|
$
311
|
$
508
|
$ 357
|
$ (172)
|
$ 1,529
|
|
Income tax on core
earnings, CER basis(2)
|
51
|
110
|
82
|
67
|
(12)
|
298
|
|
Core earnings, CER
basis (pre-tax)
|
$
576
|
$
421
|
$
590
|
$ 424
|
$ (184)
|
$ 1,827
|
|
|
|
|
|
|
|
|
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 3Q22.
|
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 3Q22.
|
Reconciliation of core earnings to net income attributed to
shareholders
|
YTD
2022
|
|
|
($ millions, post-tax
and based on actual foreign
exchange rates in effect in the applicable reporting period,
unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Income (loss) before
income taxes
|
$ 1,373
|
$ 1,923
|
$ 4,353
|
$
1,143
|
$
(2,187)
|
$ 6,605
|
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
|
Core
earnings
|
(209)
|
(345)
|
(259)
|
(168)
|
48
|
(933)
|
|
Items excluded from
core earnings
|
35
|
(126)
|
(539)
|
-
|
164
|
(466)
|
|
Income tax (expense)
recovery
|
(174)
|
(471)
|
(798)
|
(168)
|
212
|
(1,399)
|
|
Net income
(post-tax)
|
1,199
|
1,452
|
3,555
|
975
|
(1,975)
|
5,206
|
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
|
Non-controlling
interests
|
(10)
|
-
|
-
|
1
|
1
|
(8)
|
|
Participating
policyholders
|
(446)
|
242
|
15
|
-
|
-
|
(189)
|
|
Net income (loss)
attributed to shareholders (post-tax)
|
1,655
|
1,210
|
3,540
|
974
|
(1,976)
|
5,403
|
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
|
Investment-related
experience outside of core
earnings
|
141
|
236
|
1,245
|
-
|
(348)
|
1,274
|
|
Direct impact of
equity markets and interest rates and
variable annuity
guarantee liabilities
|
43
|
(70)
|
134
|
-
|
(1,131)
|
(1,024)
|
|
Change in actuarial
methods and assumptions
|
(45)
|
35
|
36
|
-
|
10
|
36
|
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Reinsurance
transactions, tax related items and other
|
(47)
|
-
|
799
|
-
|
(71)
|
681
|
|
Core earnings
(post-tax)
|
$ 1,563
|
$ 1,009
|
$ 1,326
|
$ 974
|
$
(436)
|
$ 4,436
|
|
Income tax on core
earnings (see above)
|
209
|
345
|
259
|
168
|
(48)
|
933
|
|
Core earnings
(pre-tax)
|
$ 1,772
|
$ 1,354
|
$ 1,585
|
$
1,142
|
$
(484)
|
$ 5,369
|
|
|
|
|
|
|
|
|
|
(1) These items are disclosed
under OSFI's Source of Earnings Disclosure (Life Insurance
Companies) guideline.
|
Core earnings, CER basis
|
YTD
2022
|
|
(Canadian $ millions,
post-tax and based on actual foreign
exchange rates in effect in the applicable reporting period,
unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Core earnings
(post-tax)
|
$ 1,563
|
$ 1,009
|
$ 1,326
|
$ 974
|
$
(436)
|
$ 4,436
|
|
CER
adjustment(1)
|
(4)
|
-
|
25
|
10
|
2
|
33
|
|
Core earnings, CER
basis (post-tax)
|
$ 1,559
|
$ 1,009
|
$ 1,351
|
$ 984
|
$
(434)
|
$ 4,469
|
|
Income tax on core
earnings, CER basis(2)
|
209
|
345
|
264
|
169
|
(49)
|
938
|
|
Core earnings, CER
basis (pre-tax)
|
$ 1,768
|
$ 1,354
|
$ 1,615
|
$
1,153
|
$
(483)
|
$ 5,407
|
|
(1) The impact of updating
foreign exchange rates to that which was used in 3Q22.
|
|
(2) Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 3Q22.
|
Reconciliation of core earnings to net income attributed to
shareholders
|
YTD 2021
|
|
|
($ millions, post-tax
and based on actual foreign exchange
rates in effect in the applicable reporting period, unless
otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Income (loss) before
income taxes
|
$ 2,504
|
$
985
|
$ 1,870
|
$
1,203
|
$ (918)
|
$ 5,644
|
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
|
Core
earnings
|
(254)
|
(312)
|
(301)
|
(182)
|
35
|
(1,014)
|
|
Items excluded from
core earnings
|
(107)
|
154
|
36
|
(1)
|
149
|
231
|
|
Income tax (expense)
recovery
|
(361)
|
(158)
|
(265)
|
(183)
|
184
|
(783)
|
|
Net income
(post-tax)
|
2,143
|
827
|
1,605
|
1,020
|
(734)
|
4,861
|
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
|
Non-controlling
interests
|
222
|
-
|
-
|
1
|
-
|
223
|
|
Participating
policyholders
|
(491)
|
89
|
19
|
-
|
-
|
(383)
|
|
Net income (loss)
attributed to shareholders (post-tax)
|
2,412
|
738
|
1,586
|
1,019
|
(734)
|
5,021
|
|
Less: Items excluded
from core earnings(1)
|
|
|
|
|
|
|
|
Investment-related
experience outside of core
earnings
|
255
|
239
|
1,283
|
-
|
(261)
|
1,516
|
|
Direct impact of
equity markets and interest rates and
variable annuity
guarantee liabilities
|
137
|
(329)
|
(852)
|
-
|
(171)
|
(1,215)
|
|
Change in actuarial
methods and assumptions
|
343
|
(65)
|
(314)
|
-
|
(5)
|
(41)
|
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
(115)
|
(115)
|
|
Reinsurance
transactions, tax related items and other
|
48
|
-
|
-
|
-
|
-
|
48
|
|
Core earnings
(post-tax)
|
$ 1,629
|
$
893
|
$ 1,469
|
$
1,019
|
$ (182)
|
$ 4,828
|
|
Income tax on core
earnings (see above)
|
254
|
312
|
301
|
182
|
(35)
|
1,014
|
|
Core earnings
(pre-tax)
|
$ 1,883
|
$ 1,205
|
$ 1,770
|
$
1,201
|
$ (217)
|
$ 5,842
|
|
|
|
|
|
|
|
|
|
(1) These items are disclosed
under OSFI's Source of Earnings Disclosure (Life Insurance
Companies) guideline.
|
Core earnings, CER basis
|
YTD 2021
|
|
(Canadian $ millions,
post-tax and based on actual foreign
exchange rates in effect in the applicable reporting period,
unless otherwise stated)
|
Asia
|
Canada
|
U.S.
|
Global
WAM
|
Corporate
and Other
|
Total
|
|
Core earnings
(post-tax)
|
$ 1,629
|
$
893
|
$ 1,469
|
$
1,019
|
$ (182)
|
$ 4,828
|
|
CER
adjustment(1)
|
(22)
|
1
|
64
|
27
|
(2)
|
68
|
|
Core earnings, CER
basis (post-tax)
|
$ 1,607
|
$
894
|
$ 1,533
|
$
1,046
|
$ (184)
|
$ 4,896
|
|
Income tax on core
earnings, CER basis(2)
|
251
|
313
|
314
|
184
|
(34)
|
1,028
|
|
Core earnings, CER
basis (pre-tax)
|
$ 1,858
|
$ 1,207
|
$ 1,847
|
$
1,230
|
$ (218)
|
$ 5,924
|
|
(1) The impact of updating
foreign exchange rates to that which was used in 3Q22.
|
|
(2)
Income tax on core earnings adjusted to reflect the foreign
exchange rates for the Statement of Income in effect for
3Q22.
|
Core earnings available to common
shareholders
($ millions, and based on actual foreign
exchange rates in effect in the applicable reporting period, unless
otherwise stated)
|
Quarterly
Results
|
YTD
Results
|
Full
Year
Results
|
|
3Q22
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2022
|
2021
|
2021
|
|
Core
earnings
|
$ 1,322
|
$
1,562
|
$ 1,552
|
$ 1,708
|
$ 1,517
|
$ 4,436
|
$ 4,828
|
$ 6,536
|
|
Less: Preferred
share
dividends
|
(51)
|
(60)
|
(52)
|
(71)
|
(37)
|
(163)
|
(144)
|
(215)
|
|
Core earnings
available to
common
shareholders
|
1,271
|
1,502
|
1,500
|
1,637
|
1,480
|
4,273
|
4,684
|
6,321
|
|
CER
adjustment(1)
|
-
|
18
|
15
|
24
|
12
|
33
|
68
|
92
|
|
Core earnings
available to
common
shareholders,
CER
basis
|
$ 1,271
|
$
1,520
|
$ 1,515
|
$ 1,661
|
$ 1,492
|
$ 4,306
|
$ 4,752
|
$ 6,413
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The impact of updating
foreign exchange rates to that which was used in 3Q22.
|
Core ROE
($ millions, unless otherwise stated)
|
Quarterly
Results
|
YTD
Results
|
Full
Year
Results
|
|
3Q22
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2022
|
2021
|
2021
|
|
Core earnings available
to
common
shareholders
|
$ 1,271
|
$ 1,502
|
$ 1,500
|
$ 1,637
|
$ 1,480
|
$ 4,273
|
$ 4,684
|
$ 6,321
|
|
Annualized core
earnings
available to
common
shareholders
|
$ 5,045
|
$ 6,022
|
$ 6,085
|
$ 6,483
|
$ 5,874
|
$ 5,714
|
$ 6,262
|
$ 6,321
|
|
Average
common
shareholders' equity
(see
below)
|
$
49,129
|
$
49,814
|
$
51,407
|
$
51,049
|
$
49,075
|
$
50,117
|
$
47,601
|
$
48,463
|
|
Core ROE
(annualized) (%)
|
10.3 %
|
12.1 %
|
11.8 %
|
12.7 %
|
12.0 %
|
11.4 %
|
13.2 %
|
13.0 %
|
|
Average
common
shareholders'
equity
|
|
|
|
|
|
|
|
|
|
Total shareholders' and
other
equity
|
$
56,078
|
$
55,500
|
$
56,457
|
$
58,408
|
$
55,457
|
$
56,078
|
$
55,457
|
$
58,408
|
|
Less: Preferred shares
and
other equity
|
(6,660)
|
(6,660)
|
(5,670)
|
(6,381)
|
(5,387)
|
(6,660)
|
(5,387)
|
(6,381)
|
|
Common
shareholders'
equity
|
$
49,418
|
$
48,840
|
$
50,787
|
$
52,027
|
$
50,070
|
$
49,418
|
$
50,070
|
$
52,027
|
|
Average
common
shareholders'
equity
|
$
49,129
|
$
49,814
|
$
51,407
|
$
51,049
|
$
49,075
|
$
50,117
|
$
47,601
|
$
48,463
|
Core EPS
($ millions, and based on actual foreign
exchange rates in effect in the applicable reporting period, unless
otherwise stated)
|
Quarterly
Results
|
YTD
Results
|
Full
Year
Results
|
|
|
3Q22
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2022
|
2021
|
2021
|
|
Core
EPS
|
|
|
|
|
|
|
|
|
|
Core earnings available
to
common
shareholders
|
$ 1,271
|
$ 1,502
|
$ 1,500
|
$
1,637
|
$ 1,480
|
$
4,273
|
$
4,684
|
$ 6,321
|
|
Diluted weighted
average
common shares
outstanding
(millions)
|
1,904
|
1,924
|
1,942
|
1,946
|
1,946
|
1,923
|
1,946
|
1,946
|
|
Core earnings per
share
|
$
0.67
|
$ 0.78
|
$
0.77
|
$
0.84
|
$ 0.76
|
$
2.22
|
$
2.41
|
$ 3.25
|
|
Core EPS, CER
basis
|
|
|
|
|
|
|
|
|
|
Core earnings available
to
common shareholders,
CER
basis
|
$ 1,271
|
$ 1,520
|
$ 1,515
|
$
1,661
|
$ 1,492
|
$
4,306
|
$
4,752
|
$ 6,413
|
|
Diluted weighted
average
common shares
outstanding
(millions)
|
1,904
|
1,924
|
1,942
|
1,946
|
1,946
|
1,923
|
1,946
|
1,946
|
|
Core earnings per
share,
CER
basis
|
$
0.67
|
$ 0.79
|
$
0.78
|
$
0.85
|
$ 0.77
|
$
2.24
|
$
2.44
|
$ 3.30
|
Global WAM AUMA reconciliation
($ millions, and based on
actual foreign exchange rates in effect in the applicable reporting
period, unless otherwise stated)
|
As at
|
Sept
30,
2022
|
June 30,
2022
|
March 31,
2022
|
December
31, 2021
|
Sept 30,
2021
|
|
Total invested
assets
|
$
411,292
|
$
402,329
|
$
409,401
|
$
427,098
|
$
419,087
|
|
Less: Non Global WAM
total invested assets
|
407,551
|
398,362
|
405,933
|
422,640
|
414,754
|
|
Total Invested
Assets – Global WAM
|
3,741
|
3,967
|
3,468
|
4,458
|
4,333
|
|
Total segregated funds
net assets
|
$
335,245
|
$
334,903
|
$
371,928
|
$
399,788
|
$
387,799
|
|
Less: Non Global WAM
total segregated funds net assets
|
120,775
|
121,624
|
135,314
|
147,221
|
143,248
|
|
Total Invested
Assets – Global WAM
|
214,470
|
213,279
|
236,614
|
252,567
|
244,551
|
|
Global WAM total
invested assets and net segregated funds assets
|
$
218,211
|
$
217,246
|
$
240,082
|
$
257,025
|
$
248,884
|
|
Global WAM
AUMA
|
|
|
|
|
|
|
Total Invested
Assets
|
$
3,741
|
$
3,967
|
$
3,468
|
$
4,458
|
$
4,333
|
|
Segregated funds net
assets
|
|
|
|
|
|
|
Segregated funds net
assets - Institutional
|
4,118
|
4,098
|
4,338
|
4,470
|
4,400
|
|
Segregated funds net
assets - Other
|
210,352
|
209,181
|
232,276
|
248,097
|
240,151
|
|
Total
|
214,470
|
213,279
|
236,614
|
252,567
|
244,551
|
|
Mutual funds
|
249,520
|
250,445
|
274,665
|
290,863
|
277,421
|
|
Institutional asset
management(1)
|
100,361
|
100,205
|
101,105
|
106,407
|
103,732
|
|
Other funds
|
12,910
|
12,110
|
13,269
|
14,001
|
12,562
|
|
Total Global WAM
AUM
|
581,002
|
580,006
|
629,121
|
668,296
|
642,599
|
|
Assets under
administration
|
167,759
|
164,697
|
178,843
|
187,631
|
181,013
|
|
Total Global WAM
AUMA
|
$
748,761
|
$
744,703
|
$
807,964
|
$
855,927
|
$
823,612
|
|
|
|
|
|
|
|
Total Global WAM
AUMA
|
$
748,761
|
$
744,703
|
$
807,964
|
$
855,927
|
$
823,612
|
|
CER
adjustment(2)
|
-
|
33,035
|
52,761
|
45,465
|
40,546
|
|
Total Global WAM
AUMA, CER basis
|
$
748,761
|
$
777,738
|
$
860,725
|
$
901,392
|
$
864,158
|
|
(1) Institutional asset
management excludes Institutional segregated funds net
assets.
|
|
(2) The impact of updating
foreign exchange rates to that which was used in 3Q22.
|
Reconciliation of Global WAM core earnings to core
EBITDA
($ millions, pre-tax and based on actual foreign
exchange rates in effect in the applicable reporting period, unless
otherwise stated)
|
Quarterly
Results
|
YTD
Results
|
Full
Year
Results
|
|
3Q22
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2022
|
2021
|
2021
|
|
Global WAM core
earnings (post-tax)
|
$
345
|
$
305
|
$
324
|
$
387
|
$
351
|
$
974
|
$ 1,019
|
$ 1,406
|
|
Addback taxes,
acquisition
costs, other expenses
and
deferred sales
commissions
|
|
|
|
|
|
|
|
|
|
Core income
tax
(expense)
recovery
(see above)
|
50
|
57
|
61
|
52
|
66
|
168
|
182
|
234
|
|
Acquisition costs,
other
expenses
|
86
|
80
|
81
|
79
|
86
|
247
|
244
|
323
|
|
Deferred
sales
commissions
|
23
|
25
|
24
|
25
|
26
|
72
|
74
|
99
|
|
Core
EBITDA
|
$
504
|
$
467
|
$
490
|
$
543
|
$
529
|
$ 1,461
|
$ 1,519
|
$ 2,062
|
Core EBITDA margin
($ millions, unless otherwise
stated)
|
Quarterly
Results
|
YTD
Results
|
Full
Year
Results
|
|
3Q22
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2022
|
2021
|
2021
|
|
Core EBITDA
margin
|
|
|
|
|
|
|
|
|
|
Core EBITDA
|
$
504
|
$
467
|
$
490
|
$
543
|
$
529
|
$ 1,461
|
$ 1,519
|
$ 2,062
|
|
Global WAM
revenue
|
$ 1,542
|
$ 1,521
|
$ 1,586
|
$ 1,727
|
$ 1,680
|
$ 4,649
|
$ 4,814
|
$ 6,541
|
|
Core EBITDA
margin
|
32.7 %
|
30.7 %
|
30.9 %
|
31.4 %
|
31.5 %
|
31.4 %
|
31.6 %
|
31.5 %
|
Expense efficiency ratio
($ millions, and based on actual foreign exchange rates in effect
in the applicable reporting period, unless otherwise stated)
|
Quarterly
Results
|
YTD
Results
|
Full
Year
Results
|
|
3Q22
|
2Q22
|
1Q22
|
4Q21
|
3Q21
|
2022
|
2021
|
2021
|
|
Expense Efficiency
Ratio
|
|
|
|
|
|
|
|
|
|
Core general
expenses
|
$ 1,859
|
$ 1,843
|
$ 1,877
|
$ 1,973
|
$ 1,904
|
$ 5,579
|
$ 5,580
|
$ 7,553
|
|
Core earnings
(pre-tax)
|
1,593
|
1,900
|
1,876
|
2,054
|
1,811
|
5,369
|
5,842
|
7,896
|
|
Total - Core earnings
(pre-
tax) and Core
general
expenses
|
$ 3,452
|
$ 3,743
|
$ 3,753
|
$ 4,027
|
$ 3,715
|
$
10,948
|
$
11,422
|
$
15,449
|
|
Expense Efficiency
Ratio
|
53.9 %
|
49.2 %
|
50.0 %
|
49.0 %
|
51.3 %
|
51.0 %
|
48.9 %
|
48.9 %
|
|
Core general
expenses
|
|
|
|
|
|
|
|
|
|
General expenses -
Financial
Statements
|
$ 1,900
|
$ 1,843
|
$ 1,898
|
$ 2,000
|
$ 1,904
|
$ 5,641
|
$ 5,828
|
$ 7,828
|
|
Less: General
expenses
included in items
excluded
from core
earnings
|
|
|
|
|
|
|
|
|
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
150
|
150
|
|
Integration
and
acquisition
|
-
|
-
|
8
|
-
|
-
|
8
|
-
|
-
|
|
Legal provisions
and
Other
expenses
|
41
|
-
|
13
|
27
|
-
|
54
|
98
|
125
|
|
Total
|
$
41
|
$
-
|
$
21
|
$
27
|
$
-
|
$
62
|
$
248
|
$
275
|
|
Core general
expenses
|
$ 1,859
|
$ 1,843
|
$ 1,877
|
$ 1,973
|
$ 1,904
|
$ 5,579
|
$ 5,580
|
$ 7,553
|
|
Core general
expenses
|
$ 1,859
|
$ 1,843
|
$ 1,877
|
$ 1,973
|
$ 1,904
|
$ 5,579
|
$ 5,580
|
$ 7,553
|
|
CER
adjustment(1)
|
-
|
11
|
-
|
6
|
1
|
11
|
14
|
20
|
|
Core general
expenses,
CER
basis
|
$ 1,859
|
$ 1,854
|
$ 1,877
|
$ 1,979
|
$ 1,905
|
$ 5,590
|
$ 5,594
|
$ 7,573
|
|
(1) The impact of updating
foreign exchange rates to that which was used in 3Q22.
|
CAUTION REGARDING FORWARD-LOOKING STATEMENTS:
From
time to time, Manulife 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 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 impacts 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 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
available-for-sale; 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 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.
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 under "Risk Management and
Risk Factors" and "Critical Actuarial and Accounting Policies" in
the Management's Discussion and Analysis in our most recent annual
report, under "Risk Management and Risk Factors Update" and
"Critical Actuarial and Accounting Policies" in the Management's
Discussion and Analysis in our most recent interim report, in the
"Risk Management" note to the consolidated financial statements in
our most recent annual and interim reports as well as elsewhere in
our filings with Canadian and U.S. securities regulators.
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.
SOURCE Manulife Financial Corporation