TSX/NYSE/PSE: MFC SEHK: 945
C$ unless otherwise stated
TORONTO, Nov. 8, 2023
/CNW/ - Manulife Financial Corporation ("Manulife" or the
"Company") reported its third quarter results for the period ended
September 30, 2023, delivering
double-digit growth in core earnings1, APE
sales2 and new business
value2.
Key highlights for the third quarter of 2023 ("3Q23")
include:
- Net income attributed to shareholders of $1.0 billion, up $0.2
billion from transitional net income attributed to
shareholders1 in the third quarter of 2022 ("3Q22")
and up $0.5 billion compared with
3Q22 net income attributed to shareholders
- Core earnings of $1.7 billion, up
28% on a constant exchange rate
basis3 from 3Q22
- Core EPS4 of $0.92, up 35%3 from $0.68 in 3Q22, and EPS of $0.52 in 3Q23, up 31%3 compared with
transitional EPS4 of $0.38
in 3Q22 and up 104%3 compared with EPS of $0.23 in 3Q22
- LICAT ratio5 of 137%
"Our strong operating
and new business results this quarter were supported by growth in
Asia with a 33% increase in core earnings and 16% increase in new
business CSM3 year-over-year. We also delivered
resilient results in Global WAM6 with sequential core
earnings growth, improving core EBITDA margin4 and
positive net flows2 of $5.8 billion over the past three
quarters. We are in a position of strength to weather macroeconomic
uncertainties. We continued to deploy capital through share
buybacks to further enhance shareholder returns, with nearly $1.3
billion of our common shares repurchased since the start of the
year."
— Roy
Gori, Manulife President & Chief Executive Officer
"We delivered core
ROE4 of 16.8% in the third quarter and grew adjusted
book value per share4 to $30.67, despite challenging
macroeconomic conditions. Overall, higher rates have benefited, and
will continue to benefit, our underlying businesses and financial
performance. We remain disciplined in our capital and expense
management approach, reporting a higher LICAT ratio in the quarter
and improving expense efficiency ratio during 2023."
— Colin Simpson, Manulife Chief
Financial Officer
|
Results at a Glance
($ millions, unless otherwise
stated)
|
Quarterly Results
|
YTD
Results
|
3Q23
|
3Q22
|
Change2,3
|
3Q23
|
3Q22
|
Change
|
Net Income attributed to shareholders
/ Transitional
|
$
|
1,013
|
$
$
|
491 /
777
|
87% /
24%
|
$
|
3,444
|
$
$
|
(2,848) /
2,270
|
nm /
42%
|
Core Earnings
|
$
|
1,743
|
$
|
1,339
|
28 %
|
$
|
4,911
|
$
|
4,258
|
12 %
|
EPS / Transitional
($)
|
$
|
0.52
|
$
$
|
0.23 /
0.38
|
104% /
31%
|
$
|
1.76
|
$
$
|
(1.57) /
1.10
|
nm /
48%
|
Core EPS ($)
|
$
|
0.92
|
$
|
0.68
|
35 %
|
$
|
2.55
|
$
|
2.13
|
20 %
|
ROE /
Transitional
|
|
9.5 %
|
|
4.3% /
7.1%
|
5.2 pps /
2.4
pps
|
|
10.8 %
|
|
(10.2)% /
7.2%
|
21.0 pps /
3.7 pps
|
Core ROE
|
|
16.8 %
|
|
12.7 %
|
4.1 pps
|
|
15.7 %
|
|
13.9 %
|
1.8 pps
|
BV per common share
($)
|
$
|
22.42
|
$
|
21.78
|
3 %
|
$
|
22.42
|
$
|
21.78
|
3 %
|
Adjusted BV per common
share ($)
|
$
|
30.67
|
$
|
29.49
|
4 %
|
$
|
30.67
|
$
|
29.49
|
4 %
|
APE sales
|
$
|
1,657
|
$
|
1,347
|
21 %
|
$
|
4,890
|
$
|
4,365
|
9 %
|
NBV
|
$
|
600
|
$
|
515
|
15 %
|
$
|
1,694
|
$
|
1,539
|
6 %
|
New business
CSM
|
$
|
507
|
$
|
470
|
6 %
|
$
|
1,541
|
$
|
1,453
|
3 %
|
Global WAM
net flows ($ billions)
|
$
|
(0.8)
|
$
|
3.0
|
nm
|
$
|
5.8
|
$
|
11.5
|
(51) %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results by Segment
($ millions, unless otherwise
stated)
|
Quarterly Results
|
YTD
Results
|
|
3Q23
|
3Q22
|
Change
|
3Q23
|
3Q22
|
Change
|
Asia
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributed to shareholders
/ Transitional
|
US$
|
63
|
US$
|
216 /
134
|
(74)% /
(58)%
|
US$
|
543
|
US$
|
285 /
118
|
22% /
171%
|
|
Core Earnings
|
|
390
|
|
296
|
33 %
|
|
1,104
|
|
1,027
|
10 %
|
|
APE sales
|
|
835
|
|
699
|
20 %
|
|
2,582
|
|
2,262
|
16 %
|
|
NBV
|
|
310
|
|
291
|
7 %
|
|
900
|
|
889
|
2 %
|
|
New
Business CSM
|
|
300
|
|
261
|
16 %
|
|
845
|
|
768
|
12 %
|
|
Canada
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributed to shareholders
/ Transitional
|
$
|
290
|
$
|
853 /
481
|
(66)% /
(40)%
|
$
|
826
|
$
|
(430) /
1,078
|
nm /
(23)%
|
|
Core Earnings
|
|
408
|
|
391
|
4 %
|
|
1,135
|
|
1,091
|
4 %
|
|
APE sales
|
|
431
|
|
285
|
51 %
|
|
1,046
|
|
1,009
|
4 %
|
|
NBV
|
|
153
|
|
89
|
72 %
|
|
351
|
|
275
|
28 %
|
|
New
Business CSM
|
|
51
|
|
44
|
16 %
|
|
154
|
|
152
|
1 %
|
|
U.S.
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributed to shareholders
/ Transitional
|
US$
|
53
|
US$
|
(342) /
241
|
nm /
(78)%
|
US$
|
327
|
US$
|
(1,776) /
1,218
|
nm /
(73)%
|
|
Core Earnings
|
|
329
|
|
335
|
(2) %
|
|
955
|
|
901
|
6 %
|
|
APE sales
|
|
79
|
|
115
|
(31) %
|
|
275
|
|
356
|
(23) %
|
|
NBV
|
|
25
|
|
35
|
(29) %
|
|
99
|
|
95
|
4 %
|
|
New
Business CSM
|
|
40
|
|
66
|
(39) %
|
|
187
|
|
247
|
(24) %
|
|
Global WAM
|
|
|
|
|
|
|
|
|
|
|
|
Net Income attributed to
shareholders
|
$
|
318
|
$
|
287
|
9 %
|
$
|
932
|
$
|
720
|
27 %
|
|
Core Earnings
|
|
361
|
|
354
|
0 %
|
|
968
|
|
1,025
|
(8) %
|
|
Gross flows ($
billions)2
|
|
34.3
|
|
32.0
|
5 %
|
|
108.2
|
|
104.5
|
0 %
|
|
Average AUMA ($ billions)2
|
|
813
|
|
774
|
4 %
|
|
812
|
|
788
|
(0) %
|
|
Core EBITDA margin
|
|
26.9 %
|
|
28.9 %
|
(200) bps
|
|
24.7 %
|
|
28.4 %
|
(370) bps
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit
Net Income attributed to shareholders rose to $1.0 billion in 3Q23, $0.2
billion higher than 3Q22 transitional net income attributed
to shareholders
Manulife reported net income attributed to shareholders of
$1.0 billion in 3Q23, which was
$0.2 billion higher than 3Q22
transitional net income attributed to shareholders, and
$0.5 billion higher than 3Q22 net
income attributed to shareholders.
The increase in 3Q23 net income attributed to shareholders
compared with 3Q22 transitional net income attributed to
shareholders was driven by growth in core earnings and a one-time
tax-related benefit of $290 million,
partially offset by a larger net charge from market experience. The
net charge from market experience in 3Q23 was primarily related to
lower-than-expected returns (including fair value changes) relative
to long term assumptions on alternative long duration assets mainly
related to real estate, lower-than-expected returns relative to
long term assumptions on public equity and a charge from
derivatives and hedge accounting ineffectiveness. Net income
attributed to shareholders in 3Q23 increased by $0.5 billion compared with 3Q22, driven by the
factors mentioned above and $0.3
billion of transitional impacts due to the application of
IFRS 9 hedge accounting and expected credit loss ("ECL")
principles. Transitional impacts are geography-related and do not
impact total shareholders' equity as the corresponding offset is in
other comprehensive income.
Core earnings grew 28% to $1.7
billion compared with 3Q22
The increase from the prior year quarter was driven by the
non-recurrence of a $256 million
provision in our Property and Casualty Reinsurance business related
to Hurricane Ian in 3Q22, the favourable impact of rising interest
rates on expected investment earnings and earnings on surplus
assets net of higher cost of debt financing, as well as improved
insurance experience in the U.S. and in Canada. Business growth also contributed to
the increase in expected earnings on investments and on insurance
contracts. These were partially offset by an increase in the ECL
provision primarily related to electric utility bonds and private
placements, higher performance-related costs and investments in
technology.
Growth
Annualized premium
equivalent ("APE") sales of $1.7 billion,
up 21% compared with 3Q22
Our APE sales in the third quarter were boosted by strong
performance in Asia, reflecting
our diverse business model. In Asia, APE sales increased 20%
compared with 3Q22 as a result of growth in Hong Kong and Asia
Other7. In Hong
Kong, APE sales increased 57%, driven by strong growth in
our broker and bancassurance channels reflecting the return of
demand from mainland Chinese visitor customers
following the Hong Kong and
mainland China border reopening in February
2023. In Japan, APE sales decreased 6%, due to lower sales in
corporate-owned life insurance products.
APE sales increased 14% in Asia Other compared with the prior
year. Higher bancassurance sales in mainland China and higher broker sales in our
International High Net Worth business8 and in
Singapore were partially offset by
lower agency and bancassurance sales in Vietnam.
In Canada, APE sales increased
51% driven by a large affinity markets sale. U.S. APE sales
decreased 31% due to the adverse impact of higher short-term
interest rates on accumulation insurance products, particularly for
our affluent customers.
NBV of $600 million, rose 15%
compared with 3Q22
In Asia, NBV increased 7% from 3Q22 driven by higher sales
volumes partially offset by business mix. In Canada, NBV
increased 72% driven by higher sales volumes in Individual
Insurance and higher margins in Group Insurance. In the U.S., NBV
decreased 29% primarily due to lower sales volumes and product mix,
partially offset by pricing actions and higher interest rates.
New business CSM of $507
million, up 6% compared with 3Q22
In Asia, new business CSM increased 16% year-over-year primarily
due to higher sales volumes partially offset by business mix. In
Canada, new business CSM
increased 16% driven by product mix in Individual Insurance. Under
IFRS 17, the majority of Group Insurance and affinity products are
classified as premium allocation approach and do not generate
CSM9. In the U.S., new business CSM decreased 39%
driven by lower sales volumes and product mix.
Global WAM net outflows of $0.8
billion in 3Q23 compared with net inflows of $3.0 billion in 3Q22
Net outflows in Retirement were $3.4
billion in 3Q23 compared with net inflows of $1.4 billion in 3Q22, driven entirely by a
large-case pension plan redemption in the U.S. Net outflows in
Retail were $0.2 billion in 3Q23
compared with net inflows of $1.0
billion in 3Q22, reflecting lower demand as investors
continued to favour short-term cash and money market instruments
amid market volatility and higher interest rates. This was
partially offset by the launch of our Global Semiconductors
strategy in Japan and higher net
inflows in mainland China from
acquiring full ownership of Manulife Fund Management ("MFM") in the
fourth quarter of 2022. Net inflows in Institutional Asset
Management were $2.8 billion in 3Q23
compared with net inflows of $0.6
billion in 3Q22, driven by higher net flows in fixed income
mandates, and higher sales of equity and agriculture mandates, as
well as the impact of the MFM acquisition.
Balance Sheet
CSM net of NCI10 was $17,369 million as at September 30, 2023
CSM increased $172 million and
$86 million net of NCI compared with
December 31, 2022. Organic CSM
movement was an increase of $629
million for the nine months ended September 30, 2023, driven by the impact of new
insurance business and expected movements related to finance income
or expenses, partially offset by amounts recognized for service
provided in year-to-date earnings and a net reduction from
insurance experience. Inorganic CSM movement was a decrease of
$457 million for the same period,
driven by net unfavourable impacts of equity market experience and
higher interest rates on certain participating and variable annuity
contracts, as well as changes in foreign currency exchange rates,
partially offset by the changes from our annual review of actuarial
methods and assumptions. Post-tax CSM net of NCI1 was
$14,992 million as at September 30, 2023.
Annual Review of Actuarial Methods and Assumptions
We completed our annual review of actuarial methods and
assumptions, which resulted in a net favourable impact of
$347 million11, comprised
of an increase in pre-tax net income attributed to shareholders of
$27 million (a decrease of
$14 million post-tax), an increase in
pre-tax net income attributed to participating policyholders of
$58 million ($74 million post-tax), an increase in CSM
net of NCI of $116 million, and an
increase in pre-tax other comprehensive income of $146 million ($110
million post-tax). Assumptions reviewed this year included
our Canada variable annuity
assumptions, morbidity assumptions in certain Asia markets,
mortality assumptions in the U.S. life insurance business, lapse
assumptions in Canada and other
methodology refinements.
Strategic Highlights
We are making decisions easier for our global and diverse
customer base
During 3Q23 we launched a unified high net worth
onboarding platform in Bermuda12 Hong Kong and
Singapore, to our international
brokers to deliver a consistent high touch experience for both
distributors and customers by streamlining new business
application, underwriting and compliance processes across our three
high net worth markets. In Canada,
we expanded our Personalized Medicine program to all Group Benefits
extended healthcare plans, making this service available to more
customers, while enabling them to learn about medications that best
meet their needs and work with healthcare providers on customized
treatment plans that can lead to better outcomes. Meanwhile, Global
WAM continued to fulfill investor needs for wealth solutions
through the expansion of our offerings with the launch of the
Global Semiconductors strategy in Japan which garnered more than $0.7 billion in net flows during the quarter, as
well as the launch of a Municipal Opportunities Separately Managed
Account in U.S. Retail, built on our mutual fund of the same
name.
In the U.S., we expanded our reach into the employer market by
introducing a Premier Benefit Indexed Universal Life product. This
permanent life insurance product, available through the
workplace, offers a streamlined digital process for employees to
purchase individual coverage and includes our John Hancock Vitality
PLUS feature. In addition, we launched a distribution relationship
with JPMorgan Chase & Co. enabling new sales of our suite of
products, including our John Hancock Vitality program, through its
network of more than 6,900 advisors.
We are accelerating digital initiatives to move faster and
meet customers' personalized needs
In Canada, we announced a
strategic partnership with League, a leading healthcare technology
provider, to offer our Group Benefits members more integrated
digital healthcare experiences, enabling them to connect their
benefits directly with healthcare options. This partnership
continues our digitization efforts to meet growing demand for more
personalized digital experiences that help customers understand
their health, focus on prevention, access care, and better
comprehend and optimize their benefits. In the U.S., we continued
to optimize our digital capabilities to create a seamless, digital
customer experience through the launch of single sign-on for John
Hancock Vitality customers between John
Hancock Life and Vitality websites, improvement of the
website navigation of our producer portal, and enhancement of the
interactive voice response authentication enabling 31% of inbound
calls to be completed with no human interaction in the quarter.
In Asia, we further automated the claims-handling process in
Hong Kong to improve operational
efficiency and deliver a better customer experience as we continue
to leverage data to enhance our auto-adjudication engine, driving
an almost twofold-increase of straight-through processed claims
compared with 3Q22. In Global WAM, we accelerated customer
adoption of digital applications in Canada Retirement through our "Say Goodbye to
Paper" campaign which contributed to a 165% increase in members
converting to e-statements over the 3-month campaign period and an
increase in satisfaction in their digital experience over the prior
quarter.
_________
|
1
|
Core earnings,
transitional net income attributed to shareholders and post-tax
contractual service margin net of NCI ("post-tax CSM net of
NCI") are non-GAAP financial measures. For more information on
non-GAAP and other financial measures, see "Non-GAAP and other
financial measures" below and in our 3Q23 Management's Discussion
and Analysis ("MD&A").
|
2
|
For more information on
annualized premium equivalent ("APE") sales, new business value
("NBV"), net flows, gross flows and average asset under management
and administration ("average AUMA"), see "Non-GAAP and other
financial measures" below. In this news release, percentage growth
/ declines in APE sales, NBV, net flows, gross flows and average
AUMA are stated on a constant exchange rate basis.
|
3
|
Percentage growth /
declines in core earnings, diluted core earnings per common share
("core EPS"), diluted earnings (loss) per share ("EPS"),
transitional EPS, new business contractual service margin net of
NCI ("new business CSM"), net income attributed to
shareholders and transitional net income attributed to shareholders
are stated on a constant exchange rate basis
and are non-GAAP ratios.
|
4
|
Core EPS, transitional
EPS, core EBITDA margin, core ROE and adjusted book value ("BV")
per common share are non-GAAP ratios.
|
5
|
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.
|
6
|
Global Wealth and Asset
Management ("Global WAM").
|
7
|
Asia Other excludes
Hong Kong and Japan.
|
8
|
Effective January 1,
2023, our International High Net Worth business was reclassified
from the U.S. segment to the Asia segment. Prior period comparative
information has been restated to reflect the change in segment
reporting.
|
9
|
Contractual service
margin ("CSM").
|
10
|
Non-controlling
interests ("NCI").
|
11
|
This amount excludes
the portion related to NCI.
|
12
|
This represents our
International High Net Worth business.
|
Quarterly Earnings
Results Conference Call
Manulife Financial Corporation will host a Third Quarter 2023
Earnings Results Conference Call at 8:00
a.m. ET on November 9, 2023.
For local and international locations, please call 1-416-340-2217
or toll free, North America
1-800-806-5484 (Passcode: 1815155#). Please call in 15 minutes
before the scheduled start time. You will be required to provide
your name and organization to the operator. A replay of this call
will be available until December 9,
2023, by dialing 1-905-694-9451 or 1-800-408-3053 (Passcode:
5296863#).
The conference call will also be webcast through Manulife's
website at 8:00 a.m. ET on
November 9, 2023. 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 2023
Statistical Information Package is also available on
the Manulife website at:
www.manulife.com/en/investors/results-and-reports.
This earnings news release should
be read in conjunction with the Company's
Third Quarter 2023 Report to Shareholders, including our unaudited
interim Consolidated Financial Statements for the three
and nine months ended September 30,
2023, prepared in accordance with International Financial
Reporting Standards ("IFRS") as issued by the International
Accounting Standards Board, which is available on our website at
www.manulife.com/en/investors/results-and-reports. The
Company's MD&A and additional information relating to the
Company is available on the SEDAR+ website at
http://www.sedarplus.com and on the U.S. Securities and
Exchange Commission's ("SEC") website at http://www.sec.gov.
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 for 3Q23, 2Q23 and year-to-date ("YTD") 2023 results
as well as transitional net income attributed to shareholders for
3Q22 and YTD 2022 results, consisting of core earnings and details
of the items excluded from core earnings:
|
Quarterly Results
|
YTD
Results
|
($ millions)
|
3Q23
|
2Q23
|
3Q22
|
2023
|
2022
|
Core
earnings
|
|
|
|
|
|
Asia
|
$
522
|
$
473
|
$
387
|
$
1,484
|
$
1,316
|
Canada
|
408
|
374
|
391
|
1,135
|
1,091
|
U.S.
|
442
|
458
|
437
|
1,285
|
1,158
|
Global
Wealth and Asset Management
|
361
|
320
|
354
|
968
|
1,025
|
Corporate
and Other
|
10
|
12
|
(230)
|
39
|
(332)
|
Total
core earnings
|
$
1,743
|
$
1,637
|
$ 1,339
|
$
4,911
|
$
4,258
|
Items
excluded from core earnings:
Market
experience gains (losses)
|
(1,022)
|
(570)
|
(575)
|
(1,657)
|
(1,930)
|
Change
in actuarial methods and assumptions that
flow
directly through
income
|
(14)
|
-
|
26
|
(14)
|
26
|
Reinsurance transactions, tax-related items
and other
|
306
|
(42)
|
(13)
|
204
|
(84)
|
Net
income attributed to shareholders /
Transitional
|
$
1,013
|
$
1,025
|
$
777
|
$
3,444
|
$
2,270
|
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);
core earnings available to common shareholders; core earnings
before income taxes, depreciation and amortization ("core EBITDA");
transitional net income (loss) attributed to shareholders; common
shareholders' transitional net income; adjusted book value;
post-tax contractual service margin; post-tax contractual service
margin net of NCI ("post-tax CSM net of NCI"); and core
revenue. In addition, non-GAAP financial measures include the
following stated on a constant exchange rate ("CER") basis: any of
the foregoing non-GAAP financial measures; net income attributed to
shareholders; and common shareholders' net income.
Non-GAAP ratios include core return on common shareholders' equity ("core ROE"); diluted core earnings per common
share
("core EPS"); transitional diluted earnings per common
share ("transitional EPS"); transitional return on equity; adjusted
book value per common share; core EBITDA margin;
and percentage growth/decline on a constant
exchange rate basis in any of the above
non-GAAP financial measures; net income attributed to shareholders;
diluted earnings per common share ("diluted EPS") and new business
CSM.
Other specified financial
measures include NBV; APE sales; gross flows; net flows; average
assets under management and administration ("average AUMA"); and
percentage growth/decline in these foregoing specified 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 3Q23 MD&A, which
is incorporated by reference.
IFRS 17 Transition
Manulife adopted
IFRS 17 "Insurance Contracts" and IFRS 9 "Financial Instruments" effective for years
beginning on January 1, 2023, to be applied
retrospectively. Our quarterly and year-to-date 2022 results have
been restated in accordance with IFRS 17 and IFRS 9.
The 2022
comparative results in this news release
may not be fully
representative of our market risk profile, as the
transition of our general fund portfolio for
asset-liability matching purposes under IFRS 17 and IFRS 9 was not
completed until early 2023. Consequently, year-over-year variations
between our 2023 results compared to the 2022 results should be
viewed in this context.
In addition,
our 2022 results are also not directly comparable to 2023 results
because IFRS 9 hedge accounting and ECL
principles are applied prospectively effective January 1, 2023. Accordingly, we have also
presented comparative quarterly and
year-to-date 2022 results
as if IFRS had allowed such principles to be
implemented for 2022. Such results
are denoted as being "transitional" throughout this news
release and include the transitional net income attributed to
shareholders for 2022. For a complete list of transitional
financial measures, please see section A1 "Implementation of IFRS
17 and IFRS 9" of the Third Quarter 2023 MD&A.
Reconciliation of core earnings to net income attributed to
shareholders
|
3Q23
|
($ 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
|
$
439
|
$
376
|
$
68
|
$
366
|
$
(75)
|
$ 1,174
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(62)
|
(109)
|
(93)
|
(59)
|
30
|
(293)
|
Items excluded from
core earnings
|
(73)
|
15
|
97
|
11
|
294
|
344
|
Income tax (expense)
recovery
|
(135)
|
(94)
|
4
|
(48)
|
324
|
51
|
Net income
(post-tax)
|
304
|
282
|
72
|
318
|
249
|
1,225
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests ("NCI")
|
25
|
-
|
-
|
-
|
-
|
25
|
Participating
policyholders
|
195
|
(8)
|
-
|
-
|
-
|
187
|
Net income (loss)
attributed to shareholders (post-tax)
|
84
|
290
|
72
|
318
|
249
|
1,013
|
Less: Items excluded
from core earnings (post-tax)
|
|
|
|
|
|
|
Market experience
gains (losses)
|
(286)
|
(159)
|
(476)
|
(43)
|
(58)
|
(1,022)
|
Changes in actuarial
methods and assumptions that
flow directly through income
|
(157)
|
37
|
106
|
-
|
-
|
(14)
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
5
|
4
|
-
|
-
|
297
|
306
|
Core earnings
(post-tax)
|
$
522
|
$
408
|
$
442
|
$
361
|
$
10
|
$ 1,743
|
Income tax on core
earnings (see above)
|
62
|
109
|
93
|
59
|
(30)
|
293
|
Core earnings
(pre-tax)
|
$
584
|
$
517
|
$
535
|
$
420
|
$
(20)
|
$ 2,036
|
Core earnings, CER basis
|
3Q23
|
|
(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)
|
$
522
|
$
408
|
$
442
|
$
361
|
$
10
|
$ 1,743
|
|
CER
adjustment(1)
|
-
|
-
|
-
|
-
|
-
|
-
|
|
Core earnings, CER
basis (post-tax)
|
$
522
|
$
408
|
$
442
|
$
361
|
$
10
|
$ 1,743
|
|
Income tax on core
earnings, CER basis(2)
|
62
|
109
|
93
|
59
|
(30)
|
293
|
|
Core earnings, CER
basis (pre-tax)
|
$
584
|
$
517
|
$
535
|
$
420
|
$
(20)
|
$ 2,036
|
|
|
|
|
|
|
|
|
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 3Q23.
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 3Q23.
|
Reconciliation of core earnings to net income attributed to
shareholders
|
2Q23
|
($ 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
|
$
345
|
$
312
|
$
220
|
$
362
|
$
197
|
$ 1,436
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(73)
|
(97)
|
(110)
|
(45)
|
18
|
(307)
|
Items excluded from
core earnings
|
(18)
|
33
|
73
|
1
|
(47)
|
42
|
Income tax (expense)
recovery
|
(91)
|
(64)
|
(37)
|
(44)
|
(29)
|
(265)
|
Net income
(post-tax)
|
254
|
248
|
183
|
318
|
168
|
1,171
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests ("NCI")
|
25
|
-
|
-
|
1
|
-
|
26
|
Participating
policyholders
|
99
|
21
|
-
|
-
|
-
|
120
|
Net income (loss)
attributed to shareholders (post-tax)
|
130
|
227
|
183
|
317
|
168
|
1,025
|
Less: Items excluded
from core earnings (post-tax)
|
|
|
|
|
|
|
Market experience
gains (losses)
|
(297)
|
(147)
|
(275)
|
(7)
|
156
|
(570)
|
Changes in actuarial
methods and assumptions that
flow directly through income
|
-
|
-
|
-
|
-
|
-
|
-
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
(46)
|
-
|
-
|
4
|
-
|
(42)
|
Core earnings
(post-tax)
|
$
473
|
$
374
|
$
458
|
$
320
|
$
12
|
$ 1,637
|
Income tax on core
earnings (see above)
|
73
|
97
|
110
|
45
|
(18)
|
307
|
Core earnings
(pre-tax)
|
$
546
|
$
471
|
$
568
|
$
365
|
$
(6)
|
$ 1,944
|
|
|
|
|
|
|
|
|
|
Core earnings, CER basis
|
2Q23
|
|
(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)
|
$
473
|
$
374
|
$
458
|
$
320
|
$
12
|
$ 1,637
|
|
|
CER
adjustment(1)
|
(8)
|
-
|
(1)
|
-
|
-
|
(9)
|
|
|
Core earnings, CER
basis (post-tax)
|
$
465
|
$
374
|
$
457
|
$
320
|
$
12
|
$ 1,628
|
|
|
Income tax on core
earnings, CER basis(2)
|
71
|
97
|
110
|
44
|
(17)
|
305
|
|
|
Core earnings, CER
basis (pre-tax)
|
$
536
|
$
471
|
$
567
|
$
364
|
$
(5)
|
$ 1,933
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 3Q23.
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 3Q23.
|
Reconciliation of core earnings and transitional net income
attributed to shareholders 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
|
$
266
|
$ 1,029
|
$ (607)
|
$
324
|
$ (528)
|
$
484
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(54)
|
(94)
|
(83)
|
(51)
|
13
|
(269)
|
Items excluded from
core earnings
|
11
|
(92)
|
243
|
14
|
33
|
209
|
Income tax (expense)
recovery
|
(43)
|
(186)
|
160
|
(37)
|
46
|
(60)
|
Net income
(post-tax)
|
223
|
843
|
(447)
|
287
|
(482)
|
424
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
34
|
-
|
-
|
-
|
-
|
34
|
Participating
policyholders
|
(91)
|
(10)
|
-
|
-
|
-
|
(101)
|
Net income (loss)
attributed to shareholders (post-tax)
|
280
|
853
|
(447)
|
287
|
(482)
|
491
|
IFRS 9 transitional
impacts (post-tax)
|
(104)
|
(372)
|
761
|
-
|
1
|
286
|
Transitional net
income (loss) attributed to shareholders (post-tax)
|
176
|
481
|
314
|
287
|
(481)
|
777
|
Less: Items excluded
from core earnings (post-tax)
|
|
|
|
|
|
|
Market experience
gains (losses)
|
(202)
|
43
|
(98)
|
(67)
|
(251)
|
(575)
|
Changes in actuarial
methods and assumptions that flow directly through
income
|
(9)
|
47
|
(12)
|
-
|
-
|
26
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
-
|
-
|
(13)
|
-
|
-
|
(13)
|
Core earnings
(post-tax)
|
$
387
|
$
391
|
$
437
|
$
354
|
$ (230)
|
$ 1,339
|
Income tax on core
earnings (see above)
|
54
|
94
|
83
|
51
|
(13)
|
269
|
Core earnings
(pre-tax)
|
$
441
|
$
485
|
$
520
|
$
405
|
$ (243)
|
$ 1,608
|
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)
|
$
387
|
$
391
|
$
437
|
$
354
|
$ (230)
|
$ 1,339
|
CER
adjustment(1)
|
6
|
-
|
11
|
7
|
(5)
|
19
|
Core earnings, CER
basis (post-tax)
|
$
393
|
$
391
|
$
448
|
$
361
|
$ (235)
|
$ 1,358
|
Income tax on core
earnings, CER basis(2)
|
56
|
94
|
86
|
51
|
(13)
|
274
|
Core earnings, CER
basis (pre-tax)
|
$
449
|
$
485
|
$
534
|
$
412
|
$ (248)
|
$ 1,632
|
(1)
|
The impact of
updating foreign exchange rates to that which was used in
3Q23.
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 3Q23.
|
Reconciliation of core earnings to net income attributed to
shareholders
|
YTD
2023
|
($ 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
|
$ 1,397
|
$ 1,111
|
$
507
|
$ 1,073
|
$
241
|
$ 4,329
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(203)
|
(291)
|
(289)
|
(149)
|
62
|
(870)
|
Items excluded from
core earnings
|
(128)
|
34
|
223
|
9
|
209
|
347
|
Income tax (expense)
recovery
|
(331)
|
(257)
|
(66)
|
(140)
|
271
|
(523)
|
Net income
(post-tax)
|
1,066
|
854
|
441
|
933
|
512
|
3,806
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
104
|
-
|
-
|
1
|
-
|
105
|
Participating
policyholders
|
229
|
28
|
-
|
-
|
-
|
257
|
Net income (loss)
attributed to shareholders (post-tax)
|
733
|
826
|
441
|
932
|
512
|
3,444
|
Less: Items excluded
from core earnings (post-tax)
|
|
|
|
|
|
|
Market experience
gains (losses)
|
(553)
|
(350)
|
(917)
|
(41)
|
204
|
(1,657)
|
Changes in actuarial
methods and assumptions that
flow directly through income
|
(157)
|
37
|
106
|
-
|
-
|
(14)
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
(41)
|
4
|
(33)
|
5
|
269
|
204
|
Core earnings
(post-tax)
|
$ 1,484
|
$ 1,135
|
$ 1,285
|
$
968
|
$
39
|
$ 4,911
|
Income tax on core
earnings (see above)
|
203
|
291
|
289
|
149
|
(62)
|
870
|
Core earnings
(pre-tax)
|
$ 1,687
|
$ 1,426
|
$ 1,574
|
$ 1,117
|
$
(23)
|
$ 5,781
|
Core earnings, CER basis
|
YTD
2023
|
(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)
|
$ 1,484
|
$ 1,135
|
$ 1,285
|
$
968
|
$
39
|
$ 4,911
|
CER
adjustment(1)
|
(23)
|
-
|
(4)
|
(2)
|
-
|
(29)
|
Core earnings, CER
basis (post-tax)
|
$ 1,461
|
$ 1,135
|
$ 1,281
|
$
966
|
$
39
|
$ 4,882
|
Income tax on core
earnings, CER basis(2)
|
199
|
291
|
288
|
148
|
(61)
|
865
|
Core earnings, CER
basis (pre-tax)
|
$ 1,660
|
$ 1,426
|
$ 1,569
|
$ 1,114
|
$
(22)
|
$ 5,747
|
(1) The impact of updating
foreign exchange rates to that which was used in 3Q23.
|
(2) Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 3Q23.
|
Reconciliation of core earnings and transitional net income
attributed to shareholders 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
|
$
508
|
$ (932)
|
$
(2,944)
|
$
830
|
$
(1,297)
|
$
(3,835)
|
Income tax (expense)
recovery
|
|
|
|
|
|
|
Core
earnings
|
(183)
|
(254)
|
(244)
|
(175)
|
45
|
(811)
|
Items excluded from
core earnings
|
(33)
|
778
|
916
|
65
|
18
|
1,744
|
Income tax (expense)
recovery
|
(216)
|
524
|
672
|
(110)
|
63
|
933
|
Net income
(post-tax)
|
292
|
(408)
|
(2,272)
|
720
|
(1,234)
|
(2,902)
|
Less: Net income
(post-tax) attributed to
|
|
|
|
|
|
|
Non-controlling
interests
|
88
|
-
|
-
|
-
|
-
|
88
|
Participating
policyholders
|
(164)
|
22
|
-
|
-
|
-
|
(142)
|
Net income (loss)
attributed to shareholders (post-tax)
|
368
|
(430)
|
(2,272)
|
720
|
(1,234)
|
(2,848)
|
IFRS 9 transitional
impacts (post-tax)
|
(214)
|
1,508
|
3,826
|
-
|
(2)
|
5,118
|
Transitional net
income (loss) attributed to
shareholders (post-tax)
|
154
|
1,078
|
1,554
|
720
|
(1,236)
|
2,270
|
Less: Items excluded
from core earnings (post-tax)
|
|
|
|
|
|
|
Market experience
gains (losses)
|
(1,153)
|
(60)
|
421
|
(305)
|
(833)
|
(1,930)
|
Changes in actuarial
methods and assumptions that
flow directly through income
|
(9)
|
47
|
(12)
|
-
|
-
|
26
|
Restructuring
charge
|
-
|
-
|
-
|
-
|
-
|
-
|
Reinsurance
transactions, tax related items and other
|
-
|
-
|
(13)
|
-
|
(71)
|
(84)
|
Core earnings
(post-tax)
|
$ 1,316
|
$ 1,091
|
$ 1,158
|
$ 1,025
|
$ (332)
|
$ 4,258
|
Income tax on core
earnings (see above)
|
181
|
254
|
245
|
175
|
(45)
|
810
|
Core earnings
(pre-tax)
|
$ 1,497
|
$ 1,345
|
$ 1,403
|
$ 1,200
|
$ (377)
|
$ 5,068
|
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)
|
$ 1,316
|
$ 1,091
|
$ 1,158
|
$ 1,025
|
$ (332)
|
$ 4,258
|
CER
adjustment(1)
|
19
|
-
|
51
|
30
|
(3)
|
97
|
Core earnings, CER
basis (post-tax)
|
$ 1,335
|
$ 1,091
|
$ 1,209
|
$ 1,055
|
$ (335)
|
$ 4,355
|
Income tax on core
earnings, CER basis(2)
|
184
|
254
|
256
|
178
|
(45)
|
827
|
Core earnings, CER
basis (pre-tax)
|
$ 1,519
|
$ 1,345
|
$ 1,465
|
$ 1,233
|
$ (380)
|
$ 5,182
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 3Q23.
|
(2)
|
Income tax on core
earnings adjusted to reflect the foreign exchange rates for the
Statement of Income in effect for 3Q23.
|
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
|
|
3Q23
|
2Q23
|
1Q23
|
4Q22
|
3Q22
|
2023
|
2022
|
2022
|
Core
earnings
|
$
1,743
|
$
1,637
|
$
1,531
|
$
1,543
|
$
1,339
|
$
4,911
|
$
4,258
|
$
5,801
|
Less: Preferred share
dividends
|
(54)
|
(98)
|
(52)
|
(97)
|
(51)
|
(204)
|
(163)
|
(260)
|
Core earnings available
to common shareholders
|
1,689
|
1,539
|
1,479
|
1,446
|
1,288
|
4,707
|
4,095
|
5,541
|
CER
adjustment(1)
|
-
|
(9)
|
(20)
|
(13)
|
19
|
(29)
|
97
|
84
|
Core earnings
available to common shareholders, CER basis
|
$
1,689
|
$
1,530
|
$
1,459
|
$
1,433
|
$
1,307
|
$
4,678
|
$
4,192
|
$
5,625
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 3Q23.
|
Core ROE
($ millions, unless otherwise stated)
|
Quarterly
Results
|
YTD
Results
|
Full Year
Results
|
|
3Q23
|
2Q23
|
1Q23
|
4Q22
|
3Q22
|
2023
|
2022
|
2022
|
Core earnings available
to common shareholders
|
$
1,689
|
$
1,539
|
$
1,479
|
$
1,446
|
$
1,288
|
$
4,707
|
$
4,095
|
$
5,541
|
Annualized core
earnings available to common shareholders
|
$
6,701
|
$
6,173
|
$
5,998
|
$
5,737
|
$
5,110
|
$
6,293
|
$
5,475
|
$
5,541
|
Average common
shareholders' equity (see below)
|
$
39,897
|
$
39,881
|
$
40,465
|
$
40,667
|
$
40,260
|
$
40,081
|
$
39,412
|
$
39,726
|
Core ROE
(annualized) (%)
|
16.8 %
|
15.5 %
|
14.8 %
|
14.1 %
|
12.7 %
|
15.7 %
|
13.9 %
|
14.0 %
|
Average common
shareholders' equity
|
|
|
|
|
|
|
|
|
Total shareholders' and
other equity
|
$
47,407
|
$
45,707
|
$
47,375
|
$
46,876
|
$
47,778
|
$
47,407
|
$
47,778
|
$
46,876
|
Less: Preferred shares
and other equity
|
6,660
|
6,660
|
6,660
|
6,660
|
6,660
|
6,660
|
6,660
|
6,660
|
Common shareholders'
equity
|
$
40,747
|
$
39,047
|
$
40,715
|
$
40,216
|
$
41,118
|
$
40,747
|
$
41,118
|
$
40,216
|
Average common
shareholders' equity
|
$
39,897
|
$
39,881
|
$
40,465
|
$
40,667
|
$
40,260
|
$
40,081
|
$
39,412
|
$
39,726
|
Transitional ROE
($ millions, unless otherwise
stated)
|
Quarterly
Results
|
YTD
Results
|
Full Year
Results
|
|
4Q22
|
3Q22
|
2Q22
|
1Q22
|
2022
|
2022
|
Total transitional
net income (loss) attributed to shareholders
|
$
1,228
|
$ 777
|
$ 168
|
$
1,325
|
$
2,270
|
$
3,498
|
Preferred share
dividends and other equity distributions
|
(97)
|
(51)
|
(60)
|
(52)
|
(163)
|
(260)
|
Common shareholders
transitional net income (loss)
|
$
1,131
|
$ 726
|
$ 108
|
$
1,273
|
$
2,107
|
$
3,238
|
Annualized common
shareholders transitional net income (loss)
|
$
4,487
|
$
2,876
|
$ 437
|
$
5,163
|
$
2,817
|
$
3,238
|
Average common
shareholders' equity (see below)
|
$
40,667
|
$
40,260
|
$
39,095
|
$ 38,881
|
$
39,412
|
$
39,726
|
Transitional ROE
(annualized) (%)
|
11.0 %
|
7.1 %
|
1.1 %
|
13.3 %
|
7.2 %
|
8.2 %
|
Post-tax CSM
($ millions and based on actual foreign
exchange rates in effect in the applicable reporting period, unless
otherwise stated)
As at
|
Sept 30,
2023
|
Jun 30, 2023
|
Mar 31, 2023
|
Dec 31, 2022
|
Sept 30,
2022
|
Post-tax
CSM
|
|
|
|
|
|
CSM
|
$
18,149
|
$
18,103
|
$
18,200
|
$
17,977
|
$
17,798
|
Marginal tax rate on
CSM
|
(2,474)
|
(2,645)
|
(2,724)
|
(2,726)
|
(2,632)
|
Post-tax
CSM
|
$
15,675
|
$
15,458
|
$
15,476
|
$
15,251
|
$
15,166
|
CSM, net of
NCI
|
$
17,369
|
$
17,423
|
$
17,467
|
$
17,283
|
$
17,086
|
Marginal tax rate on
CSM net of NCI
|
(2,377)
|
(2,546)
|
(2,617)
|
(2,624)
|
(2,526)
|
Post-tax CSM net of
NCI
|
$
14,992
|
$
14,877
|
$
14,850
|
$
14,659
|
$
14,560
|
New business CSM detail, CER basis
($ 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
|
|
3Q23
|
2Q23
|
1Q23
|
4Q22
|
3Q22
|
2023
|
2022
|
2022
|
New business CSM,
net of NCI
|
|
|
|
|
|
|
|
|
Hong Kong
|
$
167
|
$
191
|
$
119
|
$
110
|
$
127
|
$
477
|
$
327
|
$
437
|
Japan
|
29
|
19
|
36
|
28
|
37
|
84
|
112
|
140
|
Asia Other
|
206
|
222
|
146
|
186
|
176
|
574
|
546
|
732
|
International High Net
Worth
|
|
|
|
|
|
|
|
197
|
Mainland
China
|
|
|
|
|
|
|
|
12
|
Singapore
|
|
|
|
|
|
|
|
189
|
Vietnam
|
|
|
|
|
|
|
|
305
|
Other Emerging
Markets
|
|
|
|
|
|
|
|
29
|
Asia
|
402
|
432
|
301
|
324
|
340
|
1,135
|
985
|
1,309
|
Canada
|
51
|
57
|
46
|
47
|
44
|
154
|
152
|
199
|
U.S.
|
54
|
103
|
95
|
71
|
86
|
252
|
316
|
387
|
Total new business CSM
net of NCI
|
507
|
592
|
442
|
442
|
470
|
1,541
|
1,453
|
1,895
|
Asia
NCI
|
46
|
38
|
19
|
-
|
2
|
103
|
20
|
20
|
Total impact of new
insurance business in CSM
|
$
553
|
$
630
|
$
461
|
$
442
|
$
472
|
$
1,644
|
$ 1,473
|
$ 1,915
|
New business CSM,
net of NCI, CER adjustment(1), (2)
|
|
|
|
|
|
Hong Kong
|
$
-
|
$
-
|
$
(1)
|
$ (2)
|
$
3
|
$ (1)
|
$ 15
|
$
13
|
Japan
|
-
|
(1)
|
(3)
|
(1)
|
(1)
|
(4)
|
(9)
|
(10)
|
Asia Other
|
-
|
(3)
|
(4)
|
1
|
5
|
(7)
|
16
|
17
|
International High Net
Worth
|
|
|
|
|
|
|
|
4
|
Mainland
China
|
|
|
|
|
|
|
|
-
|
Singapore
|
|
|
|
|
|
|
|
10
|
Vietnam
|
|
|
|
|
|
|
|
3
|
Other Emerging
Markets
|
|
|
|
|
|
|
|
-
|
Asia
|
-
|
(4)
|
(8)
|
(2)
|
7
|
(12)
|
22
|
20
|
Canada
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
U.S.
|
-
|
(1)
|
-
|
(1)
|
3
|
(1)
|
15
|
14
|
Total new business CSM
net of NCI
|
-
|
(5)
|
(8)
|
(3)
|
10
|
(13)
|
37
|
34
|
Asia
NCI
|
-
|
(1)
|
(2)
|
-
|
-
|
(3)
|
(1)
|
(1)
|
Total impact of new
insurance business in CSM
|
$
-
|
$ (6)
|
$
(10)
|
$ (3)
|
$ 10
|
$
(16)
|
$ 36
|
$
33
|
New business CSM net
of NCI, CER basis
|
|
|
|
|
|
|
|
|
Hong Kong
|
$
167
|
$
191
|
$
118
|
$
108
|
$
130
|
$
476
|
$
342
|
$
450
|
Japan
|
29
|
18
|
33
|
27
|
36
|
80
|
103
|
130
|
Asia Other
|
206
|
219
|
142
|
187
|
181
|
567
|
562
|
749
|
International High Net
Worth
|
|
|
|
|
|
|
|
201
|
Mainland
China
|
|
|
|
|
|
|
|
12
|
Singapore
|
|
|
|
|
|
|
|
199
|
Vietnam
|
|
|
|
|
|
|
|
308
|
Other Emerging
Markets
|
|
|
|
|
|
|
|
29
|
Asia
|
402
|
428
|
293
|
322
|
347
|
1,123
|
1,007
|
1,329
|
Canada
|
51
|
57
|
46
|
47
|
44
|
154
|
152
|
199
|
U.S.
|
54
|
102
|
95
|
70
|
89
|
251
|
331
|
401
|
Total new business CSM
net of NCI, CER basis
|
507
|
587
|
434
|
439
|
480
|
1,528
|
1,490
|
1,929
|
Asia NCI, CER
basis
|
46
|
37
|
17
|
-
|
2
|
100
|
19
|
19
|
Total impact of new
insurance business in CSM, CER basis
|
$
553
|
$
624
|
$
451
|
$
439
|
$
482
|
$
1,628
|
$ 1,509
|
$ 1,948
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in
3Q23.
|
(2)
|
New business CSM for
Asia Other is reported by country annually, on a full year basis.
Other Emerging Markets within Asia Other include Indonesia, the
Philippines, Malaysia, Thailand, Cambodia and Myanmar.
|
Adjusted Book Value
As at
($
millions)
|
Sept 30,
2023
|
June 30,
2023
|
Mar 31, 2023
|
Dec 31, 2022
|
Sept 30,
2022
|
Common shareholders'
equity
|
$
40,747
|
$
39,047
|
$
40,715
|
$
40,216
|
$
41,118
|
Post tax CSM, net of
NCI
|
14,992
|
14,877
|
14,850
|
14,659
|
14,560
|
Adjusted book
value
|
$
55,739
|
$
53,924
|
$
55,565
|
$
54,875
|
$
55,678
|
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
|
|
3Q23
|
2Q23
|
1Q23
|
4Q22
|
3Q22
|
2023
|
2022
|
2022
|
Global WAM core
earnings (post-tax)
|
$
361
|
$
320
|
$
287
|
$
274
|
$
354
|
$
968
|
$ 1,025
|
$ 1,299
|
Addback taxes,
acquisition costs, other expenses and deferred sales
commissions
|
|
|
|
|
|
|
|
|
Core income tax
(expense) recovery (see above)
|
59
|
45
|
45
|
47
|
51
|
149
|
175
|
222
|
Amortization of
deferred acquisition costs and other depreciation
|
41
|
40
|
40
|
43
|
36
|
121
|
111
|
154
|
Amortization of
deferred sales commissions
|
19
|
19
|
21
|
25
|
24
|
59
|
73
|
98
|
Core
EBITDA
|
$
480
|
$
424
|
$
393
|
$
389
|
$
465
|
$
1,297
|
$ 1,384
|
$ 1,773
|
CER
adjustment(1)
|
-
|
-
|
(3)
|
(3)
|
8
|
(3)
|
38
|
35
|
Core EBITDA, CER
basis
|
$
480
|
$
424
|
$
390
|
$
386
|
$
473
|
$
1,294
|
$ 1,422
|
$ 1,808
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 3Q23.
|
Core EBITDA margin and core revenue
|
Quarterly
Results
|
YTD
Results
|
Full Year
Results
|
($ millions, unless
otherwise stated)
|
3Q23
|
2Q23
|
1Q23
|
4Q22
|
3Q22
|
2023
|
2022
|
2022
|
Core EBITDA
margin
|
|
|
|
|
|
|
|
|
Core EBITDA
|
$
480
|
$
424
|
$
393
|
$
389
|
$
465
|
$
1,297
|
$ 1,384
|
$
1,773
|
Core revenue
|
$
1,783
|
$ 1,722
|
$ 1,756
|
$ 1,646
|
$ 1,610
|
$
5,261
|
$ 4,870
|
$
6,516
|
Core EBITDA
margin
|
26.9 %
|
24.6 %
|
22.4 %
|
23.6 %
|
28.9 %
|
24.7 %
|
28.4 %
|
27.2 %
|
Global WAM core
revenue
|
|
|
|
|
|
|
|
|
Other revenue per
financial statements
|
$
1,645
|
$ 1,691
|
$ 1,691
|
$ 1,671
|
$ 1,547
|
$
5,027
|
$ 4,515
|
$
6,186
|
Less: Other revenue in
segments other than Global
WAM
|
(64)
|
44
|
26
|
26
|
(9)
|
6
|
(231)
|
(205)
|
Other revenue in
Global WAM (fee income)
|
$
1,709
|
$ 1,647
|
$ 1,665
|
$ 1,645
|
$ 1,556
|
$
5,021
|
$ 4,746
|
$
6,391
|
Investment income per
financial statements
|
$
4,028
|
$ 4,135
|
$ 3,520
|
$ 4,271
|
$ 3,832
|
$
11,683
|
$ 10,933
|
$
15,204
|
Realized and unrealized
gains (losses) on assets
supporting insurance and investment contract
liabilities per financial statements
|
(2,430)
|
950
|
1,944
|
(2,453)
|
(1,112)
|
464
|
(11,193)
|
(13,646)
|
Total investment
income
|
1,598
|
5,085
|
5,464
|
1,818
|
2,720
|
12,147
|
(260)
|
1,558
|
Less: Investment income
in segments other than Global
WAM
|
1,578
|
5,010
|
5,357
|
1,672
|
2,748
|
11,945
|
(13)
|
1,659
|
Investment income in
Global WAM
|
$ 20
|
$ 75
|
$
107
|
$
146
|
$
(28)
|
$
202
|
$
(247)
|
$ (101)
|
Total other revenue and
investment income in Global
WAM
|
$
1,729
|
$ 1,722
|
$ 1,772
|
$ 1,791
|
$ 1,528
|
$
5,223
|
$ 4,499
|
$
6,290
|
Less: Total revenue
reported in items excluded from
core earnings
|
|
|
|
|
|
|
|
|
Market
experience gains (losses)
|
(54)
|
7
|
12
|
55
|
(82)
|
(35)
|
(371)
|
(316)
|
Revenue related
to integration and acquisitions
|
-
|
(7)
|
4
|
90
|
-
|
(3)
|
-
|
90
|
Global WAM core
revenue
|
$
1,783
|
$ 1,722
|
$ 1,756
|
$ 1,646
|
$ 1,610
|
$
5,261
|
$ 4,870
|
$
6,516
|
Net income financial measures on a CER basis
($
Canadian millions, post-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
|
|
3Q23
|
2Q23
|
1Q23
|
4Q22
|
3Q22
|
2023
|
2022
|
2022
|
Net income (loss)
attributed to shareholders:
|
|
|
|
|
|
|
|
|
Asia
|
$ 84
|
$ 130
|
$ 519
|
$ 315
|
$ 280
|
$ 733
|
$ 368
|
$ 683
|
Canada
|
290
|
227
|
309
|
(73)
|
853
|
826
|
(430)
|
(503)
|
U.S.
|
72
|
183
|
186
|
(44)
|
(447)
|
441
|
(2,272)
|
(2,316)
|
Global WAM
|
318
|
317
|
297
|
401
|
287
|
932
|
720
|
1,121
|
Corporate and
Other
|
249
|
168
|
95
|
316
|
(482)
|
512
|
(1,234)
|
(918)
|
Total net income
(loss) attributed to shareholders
|
1,013
|
1,025
|
1,406
|
915
|
491
|
3,444
|
(2,848)
|
(1,933)
|
Preferred share
dividends and other equity distributions
|
(54)
|
(98)
|
(52)
|
(97)
|
(51)
|
(204)
|
(163)
|
(260)
|
Common shareholders'
net income (loss)
|
$ 959
|
$ 927
|
$
1,354
|
$ 818
|
$ 440
|
$
3,240
|
$ (3,011)
|
$
(2,193)
|
CER
adjustment(1)
|
|
|
|
|
|
|
|
|
Asia
|
$
-
|
$
8
|
$ (7)
|
$
14
|
$
51
|
$
1
|
$ 233
|
$ 247
|
Canada
|
-
|
-
|
(2)
|
(1)
|
17
|
(2)
|
64
|
63
|
U.S.
|
-
|
(1)
|
(3)
|
(3)
|
(8)
|
(4)
|
(120)
|
(123)
|
Global WAM
|
-
|
(1)
|
(3)
|
(6)
|
5
|
(4)
|
12
|
6
|
Corporate and
Other
|
-
|
(8)
|
(2)
|
(8)
|
(15)
|
(10)
|
(58)
|
(66)
|
Total net income
(loss) attributed to shareholders
|
-
|
(2)
|
(17)
|
(4)
|
50
|
(19)
|
131
|
127
|
Preferred share
dividends and other equity distributions
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Common shareholders'
net income (loss)
|
$
-
|
$ (2)
|
$
(17)
|
$ (4)
|
$
50
|
$
(19)
|
$ 131
|
$ 127
|
Net income (loss)
attributed to shareholders, CER basis
|
|
|
|
|
|
|
|
|
Asia
|
$ 84
|
$ 138
|
$ 512
|
$ 329
|
$ 331
|
$ 734
|
$ 601
|
$ 930
|
Canada
|
290
|
227
|
307
|
(74)
|
870
|
824
|
(366)
|
(440)
|
U.S.
|
72
|
182
|
183
|
(47)
|
(455)
|
437
|
(2,392)
|
(2,439)
|
Global WAM
|
318
|
316
|
294
|
395
|
292
|
928
|
732
|
1,127
|
Corporate and
Other
|
249
|
160
|
93
|
308
|
(497)
|
502
|
(1,292)
|
(984)
|
Total net income
(loss) attributed to shareholders,
CER basis
|
1,013
|
1,023
|
1,389
|
911
|
541
|
3,425
|
(2,717)
|
(1,806)
|
Preferred share
dividends and other equity distributions,
CER basis
|
(54)
|
(98)
|
(52)
|
(97)
|
(51)
|
(204)
|
(163)
|
(260)
|
Common shareholders'
net income (loss), CER basis
|
$ 959
|
$ 925
|
$
1,337
|
$ 814
|
$ 490
|
$
3,221
|
$ (2,880)
|
$
(2,066)
|
Asia net income
attributed to shareholders, U.S. dollars
|
|
|
|
|
|
|
|
|
Asia net income (loss)
attributed to shareholders, US $(2)
|
$ 63
|
$ 96
|
$ 384
|
$ 231
|
$ 216
|
$ 543
|
$ 285
|
$ 516
|
CER adjustment, US
$(1)
|
-
|
7
|
(2)
|
16
|
31
|
5
|
164
|
180
|
Asia net income
(loss) attributed to shareholders, U.S. $,
CER basis(1)
|
$ 63
|
$ 103
|
$ 382
|
$ 247
|
$ 247
|
$ 548
|
$ 449
|
$ 696
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 3Q23.
|
(2)
|
Asia net income
attributed to shareholders (post-tax) in Canadian dollars is
translated to U.S. dollars using the U.S. dollar Statement of
Income rate for the reporting period.
|
Transitional net income financial measures on a CER
basis
($ Canadian millions, post-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
|
|
4Q22
|
3Q22
|
2Q22
|
1Q22
|
2022
|
2022
|
Transitional net
income (loss) attributed to shareholders:
|
|
|
|
|
|
|
Asia
|
$ 493
|
$
176
|
$ (227)
|
$
205
|
$
154
|
$
647
|
Canada
|
120
|
481
|
271
|
326
|
1,078
|
1,198
|
U.S.
|
(106)
|
314
|
355
|
885
|
1,554
|
1,448
|
Global WAM
|
401
|
287
|
150
|
283
|
720
|
1,121
|
Corporate and
Other
|
320
|
(481)
|
(381)
|
(374)
|
(1,236)
|
(916)
|
Total transitional
net income (loss) attributed to shareholders
|
1,228
|
777
|
168
|
1,325
|
2,270
|
3,498
|
Preferred share
dividends and other equity distributions
|
(97)
|
(51)
|
(60)
|
(52)
|
(163)
|
(260)
|
Common shareholders'
transitional net income (loss)
|
$
1,131
|
$
726
|
$
108
|
$
1,273
|
$ 2,107
|
$
3,238
|
CER
adjustment(1)
|
|
|
|
|
|
|
Asia
|
$
12
|
$
25
|
$
31
|
$
59
|
$
115
|
$
127
|
Canada
|
(2)
|
12
|
6
|
9
|
27
|
25
|
U.S.
|
(2)
|
12
|
(5)
|
46
|
53
|
51
|
Global WAM
|
(6)
|
5
|
1
|
6
|
12
|
6
|
Corporate and
Other
|
(8)
|
(16)
|
(18)
|
(24)
|
(58)
|
(66)
|
Total CER adjustment
- transitional net income attributed to shareholders
|
(6)
|
38
|
15
|
96
|
149
|
143
|
Preferred share
dividends and other equity distributions
|
-
|
-
|
-
|
-
|
-
|
-
|
Common shareholders'
transitional net income (loss)
|
$
(6)
|
$
38
|
$
15
|
$
96
|
$
149
|
$
143
|
Transitional net
income (loss) attributed to shareholders, CER basis
|
|
|
|
|
|
|
Asia
|
$ 505
|
$
201
|
$ (196)
|
$
264
|
$
269
|
$
774
|
Canada
|
118
|
493
|
277
|
335
|
1,105
|
1,223
|
U.S.
|
(108)
|
326
|
350
|
931
|
1,607
|
1,499
|
Global WAM
|
395
|
292
|
151
|
289
|
732
|
1,127
|
Corporate and
Other
|
312
|
(497)
|
(399)
|
(398)
|
(1,294)
|
(982)
|
Total transitional
net income (loss) attributed to shareholders, CER
basis
|
1,222
|
815
|
183
|
1,421
|
2,419
|
3,641
|
Preferred share
dividends and other equity distributions, CER basis
|
(97)
|
(51)
|
(60)
|
(52)
|
(163)
|
(260)
|
Common shareholders'
net income (loss), CER basis
|
$
1,125
|
$
764
|
$
123
|
$
1,369
|
$ 2,256
|
$
3,381
|
Asia transitional
net income attributed to shareholders, U.S. dollars
|
|
|
|
|
|
|
Asia transitional net
income (loss) attributed to shareholders, US
$(2)
|
$ 363
|
$
134
|
$ (177)
|
$
161
|
$
118
|
$
481
|
CER adjustment, US
$(1)
|
14
|
17
|
31
|
36
|
84
|
98
|
Asia transitional
net income (loss) attributed to shareholders, U.S. $, CER
basis(1)
|
$ 377
|
$
151
|
$ (146)
|
$
197
|
$
202
|
$
579
|
(1)
|
The impact of updating
foreign exchange rates to that which was used in 3Q23.
|
(2)
|
Asia transitional net
income attributed to shareholders (post-tax) in Canadian dollars is
translated to U.S. dollars using the U.S. dollar Statement of
Income rate for the reporting period.
|
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 our ability to achieve
our medium-term financial and operating targets, and also relate
to, among other things, our objectives, goals, strategies,
intentions, plans, beliefs, expectations and estimates, and can
generally be identified by the use of words such as "may", "will",
"could", "should", "would", "likely", "suspect", "outlook",
"expect", "intend", "estimate", "anticipate", "believe", "plan",
"forecast", "objective", "seek", "aim", "continue", "goal",
"restore", "embark" and "endeavour" (or the negative
thereof) and words and expressions of similar import, and
include statements concerning possible or assumed future results.
Although we believe that the expectations reflected in such
forward-looking statements are reasonable, such statements involve
risks and uncertainties, and undue reliance should not be placed on
such statements and they should not be interpreted as confirming
market or analysts' expectations in any way.
Certain material
factors or assumptions are applied in making forward-looking statements and actual
results may differ materially from those expressed or
implied in such statements.
Important factors that could cause actual results to differ
materially from expectations include but are not limited to:
general business and economic conditions (including but not limited
to the performance, volatility and correlation of equity
markets, interest rates, credit and swap spreads, inflation rates,
currency rates, investment losses and defaults, market liquidity
and creditworthiness of guarantors, reinsurers and counterparties);
the ongoing prevalence of COVID-19, including any variants, as well
as actions that have been, or may be taken by governmental
authorities in response to COVID-19, including the 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 fair value
through other comprehensive income; our liquidity, including the
availability of financing to satisfy existing financial liabilities
on expected maturity dates when required; obligations to pledge
additional collateral; the availability of letters of credit to
provide capital management flexibility; accuracy of information
received from counterparties and the ability of counterparties to
meet their obligations; the availability, affordability and
adequacy of reinsurance; legal and regulatory proceedings,
including tax audits, tax litigation or similar proceedings; our
ability to adapt products and services to the changing market; our
ability to attract and retain key executives, employees and agents;
the appropriate use and interpretation of complex models or
deficiencies in models used; political, legal, operational and
other risks associated with our non-North American operations;
geopolitical uncertainty, including international conflicts;
acquisitions 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.
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SOURCE Manulife Financial Corporation