Manulife Financial Corporation · TSX:MFC
Manulife Financial — Investor Day (June 2024)
28 slides from Manulife Financial's investor day presentation, Jun 26, 2024
Slide 1: Winning in our Home Market
Winning in our Home Market Investor Day 2024: Canada Naveed Irshad President and CEO, Manulife Canada June 26, 2024
Slide 2: Strong foundation in home market
Strong foundation in home market 2
Slide 3: Looking back: Top takeaways
Looking back: • Leading presence in home market Top takeaways • Excellent track record of execution and delivering results • At scale operating units drive strong returns with optimized product portfolios • Culture of expense efficiency and exceptional customer experience • Attractive opportunity fo
Slide 4: Leading presence in our home market
Leading presence in our home market Presence at home 1 in 4 Canadians served >10K Independent financial advisors >7M Unique customers >27K Plan sponsors Leading bank for >3M Customers with multiple products independent financial advisors Strong market rankings #2 Group insurance1 #2 Mortgage credito
Slide 5: Right to win in our home market
Right to win in our home market Strong brand with a 135+ year Top-tier product shelf meets Broad multi-channel distribution history highlighted by many diverse needs of Canadians network, providing advisors and industry-leading firsts in Canada across all segments customers preferred choice of chann
Slide 6: Diversified operating units drive sustainable annual core earnings
Diversified operating units drive 2023 Sales sustainable annual core earnings Group Insurance 1,487 Corporate Total Manulife core earnings Mid-Market (C$ millions) Small Business 35% Individual Insurance Retail Core earnings1 Canada Affinity 6,684 22% Annuities 53% Bank Secured Loans 12% 6 Note: All
Slide 7: Track record of execution and delivery
Track record of execution and delivery Improved core return on equity Consistent earnings growth Delivered sustained annual (Core ROE, %2) outpaced peers remittances4 (Core earnings, C$ millions2) (C$) +4 pps +23% 14 $10.5B 1,487 10 1,209 Cumulative remittances 2017-2023 20171 2023 20171 2023 Peer a
Slide 8: Driving returns on new business and effectively deploying capital
Driving returns on new business and effectively deploying capital Significantly improved NBV1 Optimized product portfolio …improving capital payback (New business value, C$ millions) across the segment… (New business capital payback year “CPY”) (New business lifetime return on capital) +157% +9 pps
Slide 9: Improved expense efficiency driving competitive advantage
Improved expense efficiency driving competitive advantage Drove efficiencies across the Improved experience through Individual inforce servicing segment digitization cost2 (Expense efficiency ratio1) (Straight-through-processing) $25 $22 +9 pps -6 pps 47.6% 86% Peer average Manulife 77% Group insura
Slide 10: Looking back: Summary
Looking back: • Leading presence in our home market Summary • At scale operating units drive strong returns • Culture of expense efficiency 10
Slide 11: Ambitious vision for future
Ambitious vision for future 11
Slide 12: Looking ahead: Top takeaways
Looking ahead: • Well-positioned to meet growing needs of Top takeaways Canadians • Opportunity in Canada is attractive as population growth accelerates, and health protection gap widens • Focused on delivering best-in-class core product and service offerings • Ambitiously pushing our digital agenda
Slide 13: Canada is an attractive market
Canada is an attractive market Top 3 players account for over half of Record population growth in Canadians are spending increasingly individual life insurance sales1 Canada, highest since 19572 more each year on healthcare4,5 (C$ billions) >48M Projected Canadian +84 population3 in 2041 Top 3 427 O
Slide 14: Enhance core ROE and become the undisputed insurance leader in Canada
Enhance core ROE and become the undisputed insurance leader in Canada Continue to launch innovative Core ROE1 (%) +1.0-1.5 product solutions and (pps) maintain strong service 16 Deliver in core standards +0.25-0.75 Achieve digital, customer leadership through industry- 14 (pps) leading digital exper
Slide 15: Deliver in core: Continue gaining momentum and delivering results
Deliver in core Deliver in core: Continue gaining momentum and delivering results Continue to enhance product Maintain industry-leading Preserve strong margins and solutions in individual insurance metrics in group benefits drive sales • Vitality now available on all retail • Industry leading persis
Slide 16: Digital, customer leadership: Leverage digital to provide exceptional service
Digital, customer leadership Digital, customer leadership: Leverage digital to provide exceptional service +7 pps +23 pps +10 pps +28 pps Continue to deliver efficiencies • Simplify, digitize, and automate processes 93% 59% 84% 60% 86% to capture expense efficiencies 74% 36% 32% Provide a superior s
Slide 17: Distribution expansion: Grow reach to support more Canadians
Distribution expansion Distribution expansion: Grow reach to support more Canadians Doubling down in fast-growing mass market segment • Enhance purchase process through digital improvements and Mass market consumer Manulife Wealth MGA simplified product offerings segment (Annual sales, C$ millions)
Slide 18: Differentiate through health: Become an engrained health partner
Differentiate through health Differentiate through health: Become an engrained health partner Fully integrated health platform for personalized care Opportunity to leverage existing scale with health platform • Combines traditional benefits and personalized health guidance with laser focus on preven
Slide 19: Differentiate through health: Support Canadians' health outcomes
Differentiate through health Differentiate through health: Support Canadians’ health outcomes Fully integrated health platform for personalized care… …with unique care providers providing leading solutions Profile unique to each plan Personalized digital healthcare experience member Health metrics &
Slide 20: Looking ahead: Summary
Looking ahead: • Well-positioned to meet growing needs of Summary Canadians • Delivering best-in-class core product and service offerings • Ambitiously pushing digital capabilities, expanding distribution and differentiating through health • Focused on execution to drive 16%+ ROE 20 Note: See “Cauti
Slide 21: Raising the Bar
‘'' Manulife Raising the Bar
Slide 22: Appendix
Appendix • Footnotes • Caution regarding forward-looking statements • Non-GAAP and other financial measures 22
Slide 23: Footnotes
Footnotes Slide Footnote 1 Sales ranking position based on LIMRA 2023 data. 4 2 Based on internal estimates using publicly available data. 1 Core earnings is a non-GAAP financial measure (2023 Manulife net income attributed to shareholders is C$5,103 million and C$1,191 million for Canada segment).
Slide 24: Footnotes
Footnotes Slide Footnote 1 Based on LIMRA 2023 Results. 2 Canada’s population estimates: Strong population growth in 2023: The Daily — Canada's population estimates: Strong population growth in 2023 (statcan.gc.ca) 3 Projected population by racialized group, generation status and other selected char
Slide 25: Caution regarding forward-looking statements
Caution regarding Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially counterparties to meet their obligations; the availability, affordability and adequacy of reinsurance; legal and regulatory proceedings, from those expr
Slide 26: Non-GAAP and other financial measures
Non-GAAP and other financial measures From time to Manulife prepares its Consolidated Financial Core ROE for operating segments Statements in accordance with International Financial Core ROE for Manulife’s operating segments is a non-GAAP Reporting Standards (“IFRS”) as issued by the International r
Slide 27: Reconciliation: Core earnings, CER basis
Reconciliation: Core earnings, CER basis 2017 ($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable Corporate Asia Canada U.S. Global WAM Total reporting period, unless otherwise stated) and Other Core earnings (post-tax) 1,453 1,209 1,609 816 (522) 4,565 CER a
Slide 28: Reconciliation: Expenses
Reconciliation: Expenses ($ millions, and based on actual foreign exchange rates in effect in the ($ millions, and based on actual foreign exchange rates in effect in the 2017 2023 applicable reporting period, unless otherwise stated) applicable reporting period, unless otherwise stated) Asia 1,981