Manulife Financial Corporation · TSX:MFC
Manulife Financial — National Bank Financial 2010 Canadian Financial Services Conference
26 slides from Manulife Financial's conference presentation, Mar 30, 2010
Slide 1: National Bank Financial 2010 Canadian Financial Services Conference
National Bank Financial 2010 Canadian Financial Services Conference March 30, 2010 Montreal Donald A. Guloien President & Chief Executive Officer
Slide 2: Legal Disclaimer
Legal Disclaimer Caution Regarding Forward-Looking Statements This document contains forward-looking statements within the meaning of 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
Slide 3: Manulife's New Vision
Manulife’s New Vision To To be be the the most most professional professional financial financial services servicesorganization organization in inthe theworld, world, providing providingstrong, strong, reliable, reliable, trustworthy trustworthy and and forward-thinking forward-thinking solutions so
Slide 4: In other words… we help people with big financial decisions
In other words… …we help people with the big financial decisions in their lives. 3
Slide 5: Manulife's New Brand Positioning Statement
Manulife’s New Brand Positioning Statement “For Your Future” “A Votre Avenir” 4
Slide 6: Manulife's Pride Values Remain Unchanged
Manulife’s Pride Values Remain Unchanged Professionalism Real value to customers Integrity Demonstrated financial strength Employer of choice 5
Slide 7: Manulife's Priorities
Manulife’s Priorities Growth Maintain strong capital / financial strength Improve ROE Manage risk Continue to offer a quality value proposition to clients 6
Slide 8: Execution
Execution Grow our businesses, with priority on: highest return products & geographies diversification and balance Focus growth in business lines where Maintain strong capital levels to: there is: provide cushion for market risk Balanced optimal use of capital enable opportunistic hedging
Slide 9: How? Manulife's Competitive Strengths
How? Manulife’s Competitive Strengths Strong capital position Industry leading ratings Significant scale Superior asset quality Enviable market position and growth opportunities in key markets Excellent brand recognition and reputation Strong, multi-channel distribution Quality team
Slide 10: Strong Capital Position
Strong Capital Position MLI MCCSR Total Capital % C$ Billions 243 240* 33.2 234 30.9 29.4 221 27.3 213 27.1 REGULATORY TARGET: 150% 100 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 9 MLI refers to The Manufacturers Life Insurance Company * Post U.S. legal entity reorganization
Slide 11: Reducing Equity Risk Exposure
Reducing Equity Risk Exposure Amount at Risk % of Gross Guarantee Value (in-the-money amounts) % C$ Billions Reinsured Existing Hedges New Hedges 48 35 13 28.3 31 25.3 26 19.9 23 13 20 13 22 13.3 14 11.6 15 15 13 18 8 13 5 5 3 4 5 4 4Q08 1Q09 2Q09 3Q09 4Q09 4Q08 1Q09 2Q09 3Q09 4Q09 4Q09 PF* * Pro-Fo
Slide 12: Industry Leading Ratings
Industry Leading Ratings Agency Rating AA+ Aa3 AA A+ IC-1 Outlook Negative Stable Negative Stable Stable Insurer Financial Strength (IFS) Ratings AAA, Aaa Standard & Poor's Moody's AA+, Aa1 AA, Aa2 AA-, Aa3 A+. A1 A, A2 A-, A3 * MFC PRU plc AXA SLF GWO MET Allianz PRU LNC PFG ING HIG 11 * Financial
Slide 13: Significant Scale
Significant Scale North American Life Insurers Global Life Insurers Market Cap in US$ Billions Market Cap in US$ Billions 115.3 46.2 32.1 29.8 35.4 34.3 32.1 29.8 24.2 24.2 23.1 24.2 24.2 23.2 23.1 16.0 16.4 10.2 9.4 7.8 7.6 AVIVA AXA AMP MET MFC MET AFL GWO GNW SLF HIG MFC AFL GWO ING PRU LNC PRU p
Slide 14: Superior Asset Quality: Diversified High Quality Asset Mix
Superior Asset Quality: Diversified High Quality Asset Mix Total Invested Assets Diversified, high quality portfolio: (C$187.5 billion) • 14% in Cash & Policy Loans • 16% in high quality Mortgages • 58% in high quality Public & Private Bonds Go ver nment B o nd s Well positioned for current down
Slide 15: Superior Asset Quality: Gross Unrealized Losses Peer Comparison
Superior Asset Quality: Gross Unrealized Losses Peer Comparison Fixed Income Gross Unrealized Losses As a % of Regulatory Surplus 60% 48% 50% Portion of Gross Unrealized Losses > 20% for 6 Months or More 40% Remainder of Gross Unrealized Losses 30% 20% 29% 9% 10% 4% 0% Average of 5 Largest US Public
Slide 16: Significant Presence & Growth Opportunities
Significant Presence & Growth Opportunities Canada United Germany States England Belgium Bermuda Japan China Barbados Hong Kong Macau Taiwan Vietnam Thailand Philippines Brazil Malaysia Singapore Uruguay Indonesia Australia New Zealand 15
Slide 17: Asia Will Be a Major Driver of the World's Future Economic Growth
Asia Will Be a Major Driver of the World’s Future Economic Growth Global GDP* Addressable Population* of 2.2 billion by 2015 Asia CAGR of 104 Australasia 10% will Eastern Europe outpace the Latin America 2.2B Middle East + Africa rest of the 69 European world Union 1.2B United States & Canada 34 Jap
Slide 18: MFC is Well Represented in All Major Economies of Asia
MFC is Well Represented in All Major Economies of Asia With the Exception of India and Korea MANULIFE OPERATIONS Japan China Taiwan MFC Asia Hong Kong 10yr CAGRs Macau Earnings: 31% Philippines Vietnam P&D: 20% Thailand FUM: 30% Malaysia Singapore 17 Indonesia
Slide 19: Significant Presence & Growth Opportunities
Significant Presence & Growth Opportunities Asia Canada Hong Kong, Japan, Philippines, • Individual Insurance Singapore, Indonesia, Vietnam, • Individual Wealth Management Malaysia, Thailand, Taiwan, China • Group Benefits • Individual Life Insurance • Group Pensions • Group Life & Health Insurance
Slide 20: Proven Track Record of New Product and Market Introductions
Proven Track Record of New Product and Market Introductions TODAY TODAY $16 11 provinces Billion in & 44% CAGR high quality 30% CAGR (lending assets) assets (premiums) 41 since 2000 cities since 2000 Assets up Over 21% 500 thousand over last customers year Established 1993 JV in 1996 TODAY TODAY 2nd
Slide 21: Excellent Brand Reputation & Recognition
Excellent Brand Reputation & Recognition In operation since 1887 4th among Canada’s most valuable brands (BrandFinance 2009) Established in 1862 Expanded operations 96% brand awareness in the U.S. to Asia in1897 100 Most Powerful Brands of (including China and 20th Century (New York Time
Slide 22: Strong Multi-Channel Distribution
Strong Multi-Channel Distribution: Skilled in Each Channel and In Avoiding Channel Conflict Advisors Financial Planners In-house Agents Independent Agents Banks Brokers Wirehouses Dealers 21
Slide 23: Proven Track Record of Highly Disciplined M&A
Proven Track Record of Highly Disciplined M&A Over 25 Acquisitions in 15 Years T I M E L I N E 1994 1995 1996 1997 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Confederation Life Cigna Chinfon Pramerica AIC - Canada third party - Taiwan - Vietnam Life agency JV buy out - Canada group mortg
Slide 24: Risks
Risks Equity markets Interest rates Foreign exchange Credit / commercial real estate Regulatory capital and accounting changes (Solvency II, OSFI, IFRS) Long Term Care (Lapse, Morbidity, Guaranteed Rates) No Lapse Guarantee and other long term guaranteed products 23
Slide 25: Investment Thesis
Investment Thesis A Company Well Positioned … Through flight to Whether they be baby quality, higher margins, boomers in Canada, high organic growth, net worth in the U.S., consolidation, market business owners in Japan position and or emerging middle class cost/availability of Global Need For i
Slide 26: Note to Users
Note to Users Performance and Non-GAAP Measures We use a number of non-GAAP financial measures to measure overall performance and to assess each of our businesses. Non-GAAP measures include: Return on Common Shareholders’ Equity; Premiums and Deposits; Premiums and Premium Equivalents; Funds under M
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