Manulife Financial Corporation · TSX:MFC
Manulife Financial — Investor Day (June 2024)
37 slides from Manulife Financial's investor day presentation, Jun 27, 2024
Slide 1: Indonesia Investor Day 2024
Indonesia Investor Day 2024 Ryan Charland, President Director & CEO, Indonesia Afifa, President Director & CEO, Indonesia Wealth & Asset Management June 27, 2024
Slide 2: Top takeaways
Top takeaways • Attractive market with a large and young population, increasing wealth and low penetration rates • Diversified business mix and unique proposition that our peers cannot easily replicate • Excellent track record of execution and outpacing our peers 2
Slide 3: Market Opportunities
Market 0pportunities 3
Slide 4: Indonesia: sizeable potential with a bright future
Indonesia, Fourth largest population1 Middle class population growth2 Median age3 sizeable potential with a bright future 278M 3X 30YO. GDP4 Life insurance industry GWP5 Investment industry6 2013-2023 CAGR 2013-2023 CAGR 2013-2023 CAGR + %4 + %5 + 10% Insurance penetration7 Mutual fund penetration8
Slide 5: We have a clear right to win…
We have a clear right to win… Customer proposition • Diverse product suite and holistic proposition around Life, Investment, and Retirement solutions, with personalized offering to meet customer needs • Unique full-time and franchise agency model Distribution reach • Strong partnership with local di
Slide 6: ...and excellent track record
...and excellent track record Customers Digital, customer leader1 70+pts 1.1M 2.3M >740K NPS2 (Life and Retirement) Retail & Life Retirement4 Institutional Extensive distribution 13K 36 network1 agents (Life) across 39 branches distribution partners, including two exclusive banca partnerships (Life)
Slide 7: Insurance: Looking back
(1) Manulife Insurance: Looking back
Slide 8: Demonstrating execution success
Demonstrating execution success APE sales1 New business value1 New business CSM2 CSM2 Core earnings2 +8% +25% +98% +59% +25% 2017 2023 2017 2023 2022 2023 2022 2023 2017 2023 8 Note: All footnotes are on slide 33, including the nearest comparable GAAP financial measures, where applicable.
Slide 9: Increasing scale and generating shareholder return
Increasing scale and generating shareholder return Improved scale (2017-2023) 1.8x +4 market share1 ranking1 Increased reach (2017-2023) 3.1x 1.5x As our business grows, we continue to generate shareholder return agency banca through: market share1 market share1 • Consistently strong cash flows • At
Slide 10: Compelling distribution capabilities fueling our growth…
Compelling distribution capabilities fueling our growth… Two exclusive banca partnerships High performing agency force Banca new business premium (“NBP”)1 Agency new business premium (“NBP”)1 2017-2023 46% 2017-2023 140% NBP growth% NBP growth% 46% 140% Manulife Manulife 5% 23% Industry2 Industry2 2
Slide 11: …enabled by our unique product offerings and digital propositions
…enabled by our unique product offerings and digital propositions 2x higher growth in value from product mix1 Digital enhancements for customer experience Product mix, APE sales (%) Digital submissions, claims NPS3 Life2 6% Life2 42% Health and protection 34% Health and protection 46% +34 pps +31 pt
Slide 12: Insurance: Looking ahead
Insurance: Looking ahead 12
Slide 13: Our ambition is to become a top 3 scale insurer
Our ambition is to become a top 3 scale insurer NBV >30% CAGR • Accelerating banca growth in new segments • Accelerating agency growth through our unique full-time and franchise model • Enhance our holistic propositions in health, protection and long-term savings 2023 Banca Agency Holistic 2027 solu
Slide 14: Banca: Maximize new opportunities and existing relationships
Banca: Banca productivity Maximize new opportunities (Case count/active seller per month) 1.6x and existing relationships Focus on value creation • Better serve all segments with a focus on health, long-term savings, and protection to increase customer product holding • Further penetrate into upper
Slide 15: Agency: Accelerate growth through our unique model
Agency: Active agents Accelerate growth through (#) 2x our unique model Shift our management approach • Move from a geographical-based management to a segmentation management operating model Elevate our agency model • Greater emphasis on quality and sustainability in full-time model • Supported by e
Slide 16: Product mix: Enhance our product propositions
Product mix: Health and protection mix Enhance our product (%) propositions +8 pps Shift to product proposition orientation • Focus on driving value through product mix, enhancing efficiency, and achieving scale Expand health proposition • Increase our mix of health products such as critical illness
Slide 17: Digital: Continue to digitalize end-to-end operations
Digital: Maintain leading NPS Continuous improvement to streamline processes and eliminate non-value additive Continue to digitalize end- Prioritize digital capability builds for activities to-end operations to growth and to improve customer experience enhance customer journey MiAccount NPS Straight
Slide 18: Top takeaways
Top takeaways • Attractive market with a large and young population, increasing wealth and low penetration rates • Diversified business mix and unique proposition that our peers cannot easily replicate • Excellent track record of execution and outpacing our peers 18
Slide 19: Wealth & Asset Management: Looking back
Wealth & Asset Management: Looking back 19
Slide 20: A market leading wealth and asset manager…
A market leading wealth and asset manager… Manulife 100% Foreign Foreign JV Domestic Investment Management Retirement Market share by total AUM1 Market share by retirement AUM2 December 2023 December 2023 12.3% 21.4% 18.2% 17.6% 8.6% 7.2% 7.0% 6.8% 10.1% 7.6% Manulife Peer A Peer B Peer C Peer D Pee
Slide 21: …with well diversified business lines and a broad range of solutions
…with well diversified business lines and a broad range of solutions WAM managed AUM by distribution channel1 WAM managed AUM by asset class1 Retail 17% Equity 24% Retirement 25% Fixed income 57% Institutional 16% Money market 19% Insurance affiliate2 42% 21 Note: All footnotes are on slide 34.
Slide 22: Proven track record of execution success
Proven track record of execution success Total AUM1 Investment mgmt. Core earnings Retirement NPS2 Industry leading market market share1 rankings (%, total AUM) +8% CAGR +2.9 pps 2.4x +23 pts #1 Asset manager by total AUM1 #2 Retirement provider (DPLK) by AUM3 2017 2023 2017 2023 2017 2023 20184 202
Slide 23: iFUNDS: The first AMCO to offer an end-to-end digital journey
iFUNDS: New direct clients’ One-stop The first AMCO to End-to-end digital transaction platform account opening >95% journey, entirely offer an end-to-end paperless (account opening, trades, updates) digital journey to clients Direct clients’ digital Integrated with Central Digital payments (bank, pa
Slide 24: Wealth & Asset Management: Looking ahead
Wealth & Asset Management: Looking ahead 24
Slide 25: Continue to be the market leader, driving innovation and growing share
Continue to be the market leader, driving innovation and growing share Total AUM1 (US$ billions) >1.6x >1.6x AUM growth through: 12 • Delivering innovative solutions across channels and customer segments 7 • Distribution expansion and growing share in underpenetrated segments • Leveraging our insura
Slide 26: Delivering innovative solutions across channels and customer segments
Delivering innovative solutions across channels and customer segments Offshore strategies market ranking Leveraging regional and global capabilities to complement strong local (by AUM) investment solutions: • Expanding our income-oriented solutions given retail customer preferences • Growing our off
Slide 27: Distribution expansion and growing share in underpenetrated segments
Distribution expansion and growing share in underpenetrated segments Market share in state-owned and local banks Maintain dominant share of platform with regional and global banks +6 pps Expand and deepen penetration of large local and state-owned banks Grow market share with existing top-tier local
Slide 28: Leveraging our insurance affiliate and continuing to digitalize customer journey
Leveraging our Collaboration with insurance affiliate Digitization insurance affiliate • Support customer investment solutions for and continuing to ILP platform and general account • Continue to invest in digital tools (EBClick and iFUNDs) to simplify and automate digitalize customer • Leverage gro
Slide 29: Wealth & Asset Management: Top takeaways
Wealth & Asset Management: • No. 1 player in the market with double-digit market share, and well positioned for the growth Top takeaways to come • Diversified business mix, unique proposition relative to our competitors, and a strong partnership with our insurance affiliate • Excellent track record
Slide 30: In summary
In summary • Attractive market with a large and young population, increasing wealth and low penetration rates • Diversified business mix and unique proposition that our peers cannot easily replicate • Excellent track record of execution and outpacing our peers 30
Slide 31: Manulife: Raising the Bar
‘'' Manulife Raising the Bar
Slide 32: Appendix
Appendix • Footnotes • Caution regarding forward-looking statements • Non-GAAP and other financial measures 32
Slide 33: Footnotes
Footnotes Slide Footnote 1 Source: World Bank. Population estimates and projections. 4th largest population as of October 2023. 2 Source: World Bank. Expanding Middle Class Key For Indonesia’s Future. Middle class population growth from 2005-2020. 3 Source: Economic and Social Commission for Asia Pa
Slide 34: Footnotes
Footnotes Slide Footnote 17 1 Estimation based on historical trend. 1 Source: OJK. Total AUM excludes retirement assets managed by our insurance affiliate. 20 2 Source: DPLK Association. 1 Data as of December 31, 2023. 21 2 Insurance affiliates includes investment-linked policy assets distributed to
Slide 35: Caution regarding forward-looking statements
Caution regarding Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially counterparties to meet their obligations; the availability, affordability and adequacy of reinsurance; legal and regulatory proceedings, from those expr
Slide 36: Non-GAAP and other financial measures
Non-GAAP and other financial measures 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 overal
Slide 37: Reconciliation: Core earnings, CER basis
Reconciliation: Core earnings, CER basis 2017 ($ millions, post-tax and based on actual foreign exchange rates in effect in Global Corporate Asia Canada U.S. Total the applicable reporting period, unless otherwise stated) WAM and Other Core earnings (post-tax) 1,453 1,209 1,609 816 (522) 4,565 CER a