Manulife Financial Corporation · TSX:MFC
Manulife Financial — Shareholder Meeting (May 2006)
28 slides from Manulife Financial's shareholder meeting presentation, May 4, 2006
Slide 1: Annual Meeting May 4, 2006
Manulife Financial Corporation The Manufacturers Life Insurance Company Annual Meeting May 4, 2006
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. These forward-looking statements r
Slide 3: Arthur Sawchuk, Chairman, Board of Directors
Arthur Sawchuk Chairman, Board of Directors
Slide 4: Election of Directors
Election of Directors Manulife Financial Corporation
Slide 5: Election of Directors
Election of Directors Manufacturers Life
Slide 6: Election of Directors: Policyholders' Directors
Election of Directors Manufacturers Life Policyholders’ Directors
Slide 7: Election of Directors: Shareholder's Directors
Election of Directors Manufacturers Life Shareholder’s Directors
Slide 8: Appointment of Auditors
MM! Manulife Financial Appointment of Auditors
Slide 9: 2005: Another Exceptional Year
2005: Another Exceptional Year Dominic D’Alessandro President and Chief Executive Officer
Slide 10: 2005: An Exceptional Year
2005: An Exceptional Year • Record sales and earnings • Leading market positions across global operations • John Hancock integration complete
Slide 11: Record Premiums and Deposits
Record Premiums and Deposits • Premiums and deposits of $61.3 billion $61 + Record new sales + Strong gains in market share $50 20 % R + C A G $30 $31 $25 $26 $20 $14 $16 $12 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 C$ in millions
Slide 12: Record Funds Under Management
Record Funds Under Management • Funds under management of $372 billion $372 $347 20 % R + C A G $154 $138 $120 $143 $97 $112 $82 $72 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 General Fund Seg Fund Mutual Funds and Other C$ in millions
Slide 13: Record Shareholders' Earnings
Record Shareholders’ Earnings • Shareholders’ earnings of $3,294 million + Favourable investment performance $3,294 + Strong in-force growth + Expense synergies % $2,550 R + 23 C A G $1,539 $1,378 $1,075 $1,159 $874 $743 $710 $503 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 C$ in millions
Slide 14: Manulife's Track Record ROE Expansion
Manulife’s Track Record ROE Expansion Return on Common Shareholders’ Equity 20.0% 19.0% 17.7% 16.1% 16.2% 16.0% 15.1% 15.5% Target 14.0% 14.0% 14.1%14.3% ROE 13.6% 12.9% 13.0% 12.7% 12.4% 12.0% 12.0% 8.0% 4.0% 0.0% '96 '97 '98 '99 '00 '01 '02 '03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05
Slide 15: Delivering Shareholder Value
Delivering Shareholder Value MFC Stock Price is 4.1X the 1999 IPO Level 450% MFC at $73.66 MFC at 300% $18.00 S&P/TSX Financials up 182% S&P/TSX Composite Index up 84% 150% 0% Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- Sep- Mar- 99 00 00 01 01 02 02 03 03 04 04 05 05 06 MFC TSX Com
Slide 16: Exceptional Earnings Diversity: Canada
Exceptional Earnings Diversity Canada $809 million • Strong in-force business growth $809 • Favourable claims experience $614 $286 • Higher equity markets $208 $270 • Emergence of expense synergies $209 $253 $197 2004 2005 Ind. Insurance Wealth Mgt Group Business
Slide 17: Exceptional Earnings Diversity: U.S. Protection
Exceptional Earnings Diversity U.S. Protection $614 million • Favourable investment experience $614 • Improved margins in Long-Term Care $467 $126 $33 • Merger related synergies • Record sales in Individual Insurance $434 $488 2004 2005 Individual Insurance Long-Term Care
Slide 18: Exceptional Earnings Diversity: U.S. Wealth Management
Exceptional Earnings Diversity U.S. Wealth Management $585 million • Exceptional net sales and strong $585 in-force growth $54 $397 $132 • Favourable investment performance $47 • Higher assets under management $114 drove increased fee income $399 $236 2004 2005 Annuities Retirement Services Mutual F
Slide 19: Exceptional Earnings Diversity: U.S. Guaranteed & Structured Financial Products
Exceptional Earnings Diversity U.S. Guaranteed & Structured Financial Products $283 million • Restriction on institutional sales $283 • Focus on retail segment $212 2004 2005
Slide 20: Exceptional Earnings Diversity: Asia and Japan
Exceptional Earnings Diversity Asia and Japan $732 million • Higher business volumes in Hong Kong $732 • China operations growing well • Japan variable annuities sales $489 $351 surpassed US$3 billion $165 $83 $51 $273 $298 2004 2005 Hong Kong Other Asia Japan
Slide 21: Exceptional Earnings Diversity: Reinsurance
Exceptional Earnings Diversity Reinsurance ($108) million • Hurricane claims resulted in earnings loss • New business at higher average rates and attachment points $230 • Strong sales growth in life retrocession ($108) 2004 2005
Slide 22: Investments
Investments • Returns well in excess of Other benchmarks Cash & ST 4% Bonds: AAA/AA/A 6% Policy Loans 42% • Favourable asset mix and 4% Real Estate credit development 3% Stocks 5% • Third party assets under management grew by over Mortgages $10 billion 17% Bonds: BB & below Bonds: BBB 3% 16% As at D
Slide 23: First Quarter Results: Exceptional Start to 2006
First Quarter Results Exceptional Start to 2006 Y/Y (C$ millions, except per share data) Q105 Q106 Growth Premiums and Deposits $ 14,919 $ 17,942 20% Shareholders’ Earnings $ 801 $ 956 19% Earnings per Share $ 0.99 $ 1.20 21% Return on Equity 14.1% 16.3% 223 bps
Slide 24: Looking Forward
Looking Forward Continued focus on core competencies • Product innovation • Distribution • Productivity • Risk management • Investment management
Slide 25: Leading Market Positions: Canada
Leading Market Positions Canada #2 in Individual Life #1 in Group Health #2 in Group Life #2 in Group Pensions #1 in Individual Segregated Funds #1 in Individual Fixed Annuities Based on full-year 2005 sales. Independent surveys include LIMRA and Investor Economics.
Slide 26: Leading Market Positions: United States
Leading Market Positions United States #3 Overall Individual Insurance #1 in Universal Life #1 in Survivorship #5 in Variable Life #1 in Group Long-Term Care #3 in Retail Long-Term Care #2 in Variable Annuities #1 in Small Case 401(k) Rankings based on full-year 2005 sales. Independent surveys inclu
Slide 27: Leading Market Positions: Asia and Japan
Leading Market Positions Asia and Japan #2 in HK Provident Fund #3 in Vietnam #5 in HK Individual #6 in the Philippines #4 in Japan Variable Annuities #6 in Singapore #24 in Japan Individual #13 in Malaysia #4 in Shanghai #16 in Thailand #3 in Indonesia #25 in Taiwan Based on most recent sales data
Slide 28: Annual Meeting May 4, 2006
Manulife Financial Corporation The Manufacturers Life Insurance Company Annual Meeting May 4, 2006