Manulife Financial Corporation · TSX:MFC
Manulife Financial — Q2 2025 Earnings Presentation
35 slides from Manulife Financial's earnings presentation, Aug 7, 2025
Slide 1: Second Quarter 2025 Financial & Operating Results
Second Quarter 2025 Financial & Operating Results August 7, 2025
Slide 2: Caution regarding forward-looking statements
include but are not limited to: general business and economic this purpose; the disruption of or changes to key elements of the Caution regarding conditions (including but not limited to the performance, volatility and correlation of equity markets, interest rates, credit and swap spreads, Company’s
Slide 3: Conference call participants
Conference call participants Phil Witherington Trevor Kreel President & Chief Executive Officer. Chief Investment Officer Marc Costantini Paul Lorentz Global Head of Strategy & Inforce Management President & CEO, Manulife Wealth and Asset Management Stephanie Fadous Colin Simpson Chief Actuary Chief
Slide 4: Agenda
Agenda • Overview and strategic update Phil Witherington, President & Chief Executive Officer • Financial and operating results Colin Simpson, Chief Financial Officer • Acquisition of Comvest Credit Partners Paul Lorentz, President & CEO, Manulife Wealth and Asset Management • Question & Answer sess
Slide 5: Overview and strategic update
DRAFT Overview and strategic update Phil Witherington President & Chief Executive Officer 5
Slide 6: Focused on delivering high-quality, sustainable growth
Focused on delivering high-quality, sustainable growth • Confidence in our business model, with market-leading operations globally • Continued progress on Digital, Customer Leader ambition, driving improved outcomes and increased productivity • The fundamentals of our business remain strong, and we
Slide 7: Clear path to achieve our 2027 and medium-term financial targets
Clear path to achieve our 2027 and medium-term financial targets 2027 targets Core ROE1 18%+ Remittances2 $22B+ cumulative Medium-term targets New business CSM growth3 15% CSM balance growth3 8-10% Core EPS growth1,4 10-12% Expense efficiency ratio1 <45% Financial leverage ratio1 25% Core dividend p
Slide 8: Resilient 2Q25 results, with strong top-line growth and robust balance sheet
Resilient 2Q25 results, with strong top-line growth and robust balance sheet Growth Profitability Balance sheet Core EPS APE sales1 Core EPS1,3 Excl. ECL1,3,4 Adjusted book value per share3 ▲15% ▲2% ▲7% ▲7% New business CSM1 EPS1 Book value per share ▲37% ▲88% ▲5% New business value1 Core ROE3 Finan
Slide 9: Financial and operating results
Financial and operating results Colin Simpson Chief Financial Officer 9
Slide 10: Continued top-line momentum in Asia; 30%+ new business CSM growth in each insurance segment
Continued top-line momentum in Asia; 30%+ new business CSM growth in each insurance segment APE sales1 New business CSM2 New business value1 Global WAM net flows1 (C$ millions) (C$ millions) (C$ millions) (C$ billions) U.S. Canada Asia U.S. Canada Asia U.S. Canada Asia Retirement Institutional Retai
Slide 11: Strong business growth dampened by unfavourable U.S. mortality experience and higher ECL
Strong business growth dampened by unfavourable U.S. mortality experience and higher expected credit loss ("ECL") Drivers of earnings1 (C$ millions) 2Q24 2Q25 Risk adjustment release 224 205 CSM recognized for service provided 507 533 2Q25 core earnings decreased 2%2 from the prior year quarter: Exp
Slide 12: Positive overall market experience; gains from public equities partially offset by lower ALDA returns
Positive overall market experience; gains from public equities partially offset by lower-than-expected ALDA returns Core earnings1 Earnings for the second quarter 2025 (C$ millions) (C$ millions, except per share amounts) 2Q25 2Q25 -2% Post-tax Per share 1,737 1,726 Core earnings1 1,726 0.95 Items e
Slide 13: Asia: Strong momentum across new business metrics and double-digit growth in core earnings
Asia: Strong momentum across new business metrics and double-digit growth in core earnings APE sales1 New business CSM2 New business value1 Core earnings2 Net income (US$ millions) (US$ millions) (US$ millions) (US$ millions) (US$ millions) Asia Other Asia Other Asia Other Asia Other Hong Kong Japan
Slide 14: Global WAM: Continued margin expansion driven by strong growth in AUM
Global WAM: Continued margin expansion driven by strong growth in AUM and disciplined expense management Net flows by Average AUMA1 Core EBITDA margin2 Core earnings3 Net income business line1 (C$ billions) (%) (C$ millions) (C$ millions) (C$ billions) Retirement Institutional Retail +380 bps +7% +1
Slide 15: Canada: Solid core earnings growth despite a strong prior year comparator
Canada: Solid core earnings growth despite a strong prior year comparator APE sales1 New business CSM2 New business value1 Core earnings2 Net income (C$ millions) (C$ millions) (C$ millions) (C$ millions) (C$ millions) Individual Insurance Manulife Bank Group Insurance Annuities Annuities Insurance
Slide 16: U.S.: Strong new business results; core earnings impacted by unfavourable mortality
U.S.: Strong new business results; core earnings impacted by unfavourable mortality experience, lower investment spreads and ECL APE sales1 New business CSM2 New business value1 Core earnings2 Net income (US$ millions) (US$ millions) (US$ millions) (US$ millions) (US$ millions) U.S. Annuities U.S. I
Slide 17: Higher adjusted book value per share while returning capital to shareholders
Higher year-on-year adjusted book value per share while returning capital to shareholders Adjusted book value per common share1 Capital returned to shareholders (C$) (C$ billions) 1 CSM balance per common share Share buyback Book value per common share Common share dividends +7% 2.1 36.25 36.66 35.7
Slide 18: Maintained robust balance sheet, providing financial flexibility
Maintained robust balance sheet, providing financial flexibility Capital metrics Financial leverage ratio1 (%) Capital over supervisory target LICAT ratio (C$ billions) (%) 139 137 136 Medium-term 25 140 target of 25% 120 20 100 15 80 24 25 25.0 23.9 23.6 23 60 10 40 5 20 0 0 2Q24 1Q25 2Q25 2Q24 1Q2
Slide 19: Maintained focus on executing on all targets
Maintained focus on executing on all targets 2023 2024 2Q25 YTD 2027 targets Core ROE1 15.9% 16.2% 15.3% 18%+ Remittances2 $5.5B $7.0B N/A $22B+ cumulative Medium-term targets New business CSM growth3 12% 32% 34% 15% CSM balance growth3 21% 3% 6% 8-10% Core EPS growth1,4 17% 10% 3% 10-12% Expense ef
Slide 20: Question & Answer session
(i) Manulife Question & Answer session
Slide 21: Appendix
Appendix • Financial KPI summary • Insurance experience, ECL and OCI • Changes in CSM • Global WAM investment performance • Invested assets • Sensitivities • Non-GAAP and other financial measures • Footnotes 21
Slide 22: 2Q25 financial KPI summary
2Q25 financial KPI summary (C$ millions, unless noted) 2Q24 2Q25 Change APE sales1 (C$ billions) $1.9 $2.2 ▲ 15% New business CSM2 $628 $882 ▲ 37% New business value1 $691 $846 ▲ 20% Growth CSM balance growth2 18% 6% ▼ 12 pps Global WAM net flows1 (C$ billions) $0.1 $0.9 ▲ $0.8 Global WAM core EBITD
Slide 23: Insurance experience impacts on core earnings and CSM
Insurance experience impacts on core earnings and CSM 2Q25 insurance experience gains/(losses) (C$ millions, pre-tax) Core earnings CSM (net of NCI) Total • Insurance experience is reflected in core earnings impact1 impact Impact and in the CSM – the impacts need to be considered together Asia 34 (9
Slide 24: Change in ECL for 2Q25 was a charge primarily related to below-investment-grade loans
Change in ECL for 2Q25 was a charge primarily related to certain below-investment-grade loan investments Change in ECL, (charges)/recoveries Change in ECL for 2Q25, (charges)/recoveries (C$ millions, pre-tax) (C$ millions, pre-tax) Stage 1 Stage 2 Stage 3 Total Net transfers between stages 3 5 (8) -
Slide 25: Other comprehensive income reflects the strengthening of Canadian currency
Other comprehensive income reflects the strengthening of Canadian currency 2Q25 total comprehensive income (C$ millions) Net income attributed to shareholders 1,789 Other comprehensive income (OCI) Net insurance/reinsurance finance income (expense) (1,291) Net loss in other comprehensive income driv
Slide 26: Generated strong annualized organic growth in CSM of 11%
Generated strong annualized organic growth in CSM of 11%1 1H25 changes in CSM (C$ millions, pre-tax) 467 1,789 • Strong annualized growth of 11% in 107 organic CSM during 1H251 was supported by contributions from new business CSM, which (1,201) increased 34% year-over-year on a YTD basis 22,316 • In
Slide 27: Global WAM: Solid long-term investment performance
Global WAM: Solid long-term investment performance Public asset class 3-year 5-year 10-year % of assets above peer 0-50% 51-75% 76-100% % of total Equity 51% 72% 62% 87% • Our strategies are performing in line with expectations given Fixed income 23% 75% 73% 87% the current market conditions and our
Slide 28: Diversified high quality asset mix avoids risk concentrations
Diversified high quality asset mix avoids risk concentrations Total invested assets (C$438.5 billion, carrying values as of June 30, 2025) • High quality and diverse asset mix Fixed Income & Other Alternative Long-Duration Assets (“ALDA”) Public Equities • 96% of bonds are investment grade Private P
Slide 29: Interest rate-related sensitivities remain within our risk appetite limits
Interest rate-related sensitivities remain within our risk appetite limits 1Q25 2Q25 Potential impacts1 of an immediate parallel change in “interest rates”: (C$ millions, post-tax except CSM) -50bp +50bp -50bp +50bp CSM 100 (200) 100 (300) Net income attributed to shareholders 100 (100) 100 (100) Ot
Slide 30: Potential immediate impact on CSM and total comprehensive income from 10% change in public equity returns
Potential immediate impact1 on CSM and total comprehensive income arising from a 10% change in public equity returns 2Q25 (C$ millions) -10% +10% Other Total Other Total CSM Net income comprehensive comprehensive CSM Net income comprehensive comprehensive (pre-tax) (post-tax) income income (pre-tax)
Slide 31: Non-GAAP and other financial measures
Non-GAAP and other Non-GAAP ratios include core return on common shareholders’ equity (“core ROE”); diluted core earnings per common share Global Minimum Taxes (“GMT”) On June 20, 2024, the Canadian government passed the Global (“core EPS”); core EPS excluding ECL; financial leverage ratio; Minimum
Slide 32: Footnotes
Footnotes Slide Footnote 6 1 Subject to customary closing conditions and approvals. 1 Core ROE, diluted core earnings per common share (“core EPS”) growth, expense efficiency ratio, financial leverage ratio, and common share core dividend payout ratio (“core dividend payout ratio”) are non-GAAP rati
Slide 33: Footnotes
Footnotes Slide Footnote 1 Percentage changes in APE sales and NBV are stated on a constant exchange rate basis. For more information on APE sales and NBV, see “Non-GAAP and Other Financial Measures” above. 13 2 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and O
Slide 34: Footnotes
Footnotes Slide Footnote 1 Percentage changes in APE sales, NBV, and average AUMA are stated on a constant exchange rate basis. For more information on APE sales, NBV and net flows, see “Non-GAAP and Other Financial Measures” above. 2 Percentage changes in new business CSM net of NCI, CSM balance gr
Slide 35: Manulife
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