Manulife Financial Corporation · TSX:MFC

Manulife Financial — Investor Day (June 2024)

26 slides from Manulife Financial's investor day presentation, Jun 26, 2024

  1. Slide 1: Hong Kong Investor Day 2024

    Hong Kong Investor Day 2024 Patrick Graham, CEO, Hong Kong & Macau Calvin Chiu, Head of Retirement, Asia Wealth & Asset Management June 26, 2024

  2. Slide 2: Looking back

    Looking back 2

  3. Slide 3: Looking back: Top takeaways

    Looking back: • Attractive regional insurance and wealth management market, fueled by domestic and Top takeaways Mainland Chinese Visitors (“MCV”) demand • A trusted brand deeply rooted in Hong Kong • Full suite of health and wealth propositions distributed through our diversified channels • Deliver

  4. Slide 4: Hong Kong is uniquely both a mature and high growth market

    Hong Kong is uniquely both a mature and high growth market Aging domestic population and MCV demand Uniquely positioned in the heart increasing medical costs of the Greater Bay Area (“GBA”) 47% interested in buying HK 2nd highest life expectancy in the world1 insurance products in the next 24 months

  5. Slide 5: Proven track record of execution success – Life and Health

    Proven track record of execution success – Life and Health Hong Kong remains the largest contributor to Asia and our 2023 financials illustrate a strong recovery from COVID APE sales1 New business value1 New business CSM2 CSM2 Core earnings2 (US$ millions) (US$ millions) (US$ millions) (US$ millions

  6. Slide 6: We have a clear right to win

    Channel mix by APE We have a clear 74% 21% right to win 48% agency APE retirement sales generated through agents MPF customers with both MPF and individual life/WAM products Diversified channels Balanced channel mix serving all 13% banca customer segments 39% broker Holistic solutions Full suite of

  7. Slide 7: Delivered strong growth through our strategic focus

    Life and Health | Delivered strong growth through our strategic focus Steady increase in market share Digital, customer leader Market share (%) +25 pts +27 pps NPS3, 2017-2023 STP4, 2019-2023 +1.8pps Top 3 High performing team 6.2% in total new premium1 Top quartile 4.4% in ILAS total new premium1 i

  8. Slide 8: Retirement: Proven track record of execution success

    Retirement | Proven track record of execution success… MPF AUM1 MPF net flows (“NF”) MPF unique customers3 • Comprehensive retirement (US$ billions) (US$ billions) (millions) platforms and solutions as +9% +6% the HK retirement leader CAGR CAGR • Delivered top-tier 40 2.1 investment performance, 2.0

  9. Slide 9: …enabled by our digital tools

    …enabled by our digital tools Manulife HK mobile app BuySimple.hk iFunds Policy and MPF management 2 2 • A one-stop digital platform for simplified portfolio management and policy • Online self-serve platform for Personal maintenance for individual and group insurance, MPF, and mutual funds Account

  10. Slide 10: Looking ahead

    Looking ahead 10

  11. Slide 11: Looking ahead: Top takeaways

    Looking ahead: • Maximize distribution potential to expand our reach and capacity Top takeaways • Strengthen customer-centric propositions and advance health capabilities • Offer holistic solutions to individuals with a diversified product mix across investment, insurance, and retirement • Further e

  12. Slide 12: Focused on disciplined growth

    Focused on disciplined growth Expand active agent + ~280M scale and drive agent Agency productivity NBV (US$ millions) Extend customer reach, ~1,100 + ~190M uplift bank seller productivity, and Partnership capitalize our Global distribution High Net Worth (“GHNW”) franchise 538 + ~80M Enhance our he

  13. Slide 13: Build scale: Leverage our diversified distribution – Agency

    Build scale: Active agent MDRT qualifiers Leverage our diversified +>50% ~+30% distribution Agency • Expand active agent scale: cohort- based segmentation in recruitment and activation to better serve domestic and MCV customers • Drive agent productivity: nurture top-tier talents through differentia

  14. Slide 14: Build scale: Leverage our diversified distribution – Partnership

    Build scale: Bank relationship manager case MCV new policies productivity Leverage our diversified ~+50% ~+40% distribution Partnership distribution • Extend reach in MCV market: engage brokers and banks through servicing capability enhancement • Uplift bank seller productivity through targeted prop

  15. Slide 15: Holistic solutions: Strengthen customer-centric propositions

    Holistic solutions: Product-level NBV margin1 (2023) Product APE sales mix (2023) Strengthen customer- centric propositions ~150% • Improve speed-to-market for our Health and protection innovative health products and ~15% solutions • Advance health capabilities and propositions with value-added serv

  16. Slide 16: Further extend our #1 position in the MPF market

    Further extend our #1 position in the MPF market Total AUM1 (US$ billions) 1.5x • Comprehensive and differentiated funds platform ~60 • Deepened customer engagement 40 • Strong collaboration with agency in creating holistic insurance and wealth solutions • Enhanced digital capabilities for agents an

  17. Slide 17: Strengthen leading market position

    Strengthen leading market position Sustain #1 MPF market share1 Maintain customer satisfaction Continue to deliver a leading investment platform >30% market share based on net flows in 2027 People’s Choice Award for six consecutive years2 Ranking of best performing MPF funds in 20233: • #1 Manulife

  18. Slide 18: Digital investment to enhance customer and agent experience

    Digital investment to enhance customer and agent experience MPF robo-advisor Streamline agency digital tools Improve experience and efficiency New business digital submission ~90% ~80% 2023 2027 • Provide AI-generated portfolio insights • Uplift recruitment and training efficiency • Increase efficie

  19. Slide 19: Summary

    Summary • Hong Kong remains an attractive regional insurance and wealth management market • A trusted brand deeply rooted in Hong Kong • We are well positioned for the next stage of growth 19

  20. Slide 20: Manulife – Raising the Bar

    ‘'' Manulife Raising the Bar

  21. Slide 21: Appendix

    Appendix • Footnotes • Caution regarding forward-looking statements • Non-GAAP and other financial measures 21

  22. Slide 22: Footnotes

    Footnotes Slide Footnote 1 World Population Review 2023. 2 2024 Global Medical Trends Survey, WTW. 3 Oliver Wyman Survey 2023: Capturing the next wave of MCV. 4 4 FY2023, Hong Kong Insurance Authority. 5 HKTDC Research. Data as of 2022. 6 Swiss Re 2023: Life and Health insurance in Hong Kong after t

  23. Slide 23: Footnotes

    Footnotes Slide Footnote 1 NBV excludes acquisition expense gap. 15 2 Others include par & adjustable, Unit Linked (“ILP”), Universal Life, and Non par Savings and Group Health products. 3 Excludes Group Health. 1 2023 MPF AUM is a non-GAAP financial measure (total invested assets and segregated fun

  24. Slide 24: Caution regarding forward-looking statements

    Caution regarding forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Important factors and adequacy of reinsurance; legal and regulatory proceedings, including tax audits, tax litigation or similar proceedings; our ability that cou

  25. Slide 25: 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

  26. Slide 26: 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

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