Manulife Financial Corporation · TSX:MFC

Manulife Financial — Investor Day (November 2010)

137 slides from Manulife Financial's investor day presentation, Nov 19, 2010

1. Slide 1: Investor Day 2010

   INVESTOR DAY | 2010 November 19, 2010

2. Slide 2: Legal Disclaimer

   Legal Disclaimer Caution Regarding Forward-Looking Statements This presentation 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

3. Slide 3: Investor Day 2010: Agenda

   Investor Day 2010: Agenda Start End Length Topic Speaker 8:30 AM 9:00 AM 30 min Breakfast & Registration 9:00 AM 9:20 AM 20 min Introduction & The Way Forward Donald Guloien 9:20 AM 9:35 AM 15 min Positioned for Growth Michael Bell 9:35 AM 10:15 AM 40 min Asia: Accelerated Growth Robert Cook 10:15 A

4. Slide 4: The Way Forward

   Investor Day 2010 The Way Forward Donald A. Guloien President and Chief Executive Officer

5. Slide 5: Agenda

   Agenda The focus of the day will be on reviewing our plans to achieve strong and sustainable growth in earnings The Way Forward Donald Guloien Positioned for Growth Michael Bell Asia Division: Accelerated Growth Robert Cook Canada: A Diversified Financial Services Company Paul Rooney Break U.S. Divi

6. Slide 6: Manulife Vision

   Manulife Vision To be the most professional financial services organization in the world, providing strong, reliable, trustworthy and forward-thinking solutions for our clients’ most significant financial decisions 3 INVESTOR DAY | 2010

7. Slide 7: Manulife Priorities

   Manulife Priorities Growth Maintain strong capital/ financial strength Improve ROE Manage risk Continue to offer a quality value proposition to clients 4 INVESTOR DAY | 2010

8. Slide 8: Priorities Driving Performance Objectives

   Priorities Driving Performance Objectives Priorities: Performance Objectives: Growth  Increase Net Income to $4 billion in 20151 Maintain strong capital/  Maintain capital levels that are adequate to meet policyholder financial strength obligations and to support strong financial strength ratings

9. Slide 9: Weaknesses/Challenges

   Weaknesses/Challenges Our challenges are well-known…  Capital and earnings volatility due to equity and interest rate exposures  Historically high concentration of products with long term guarantees  Historically low concentration of products with fee-based income sources  Long-Term Care morbidi

10. Slide 10: Manulife Competitive Strengths

    Manulife Competitive Strengths  Strong capital position  Enviable market position in Asia, retirement segments and other key growth markets  Excellent brand recognition and reputation  Superior asset quality  Quality team  Strong financial strength ratings  Significant scale 7 INVESTOR DAY |

11. Slide 11: Global Strategy

    Global Strategy Global Strategy Re-balance products Systematically hedge Accelerate with unfavourable to reduce earnings growth risk profile and capital volatility Actively manage Diversify our Manage and promote brand business mix capital 8 INVESTOR DAY | 2010

12. Slide 12: Divisional Strategies

    Divisional Strategies Asia Canada U.S. Investments MFC GIM  Accelerated growth  Diversified financial  Focused  Diversified and high  Enhancing margins in the world’s fastest services company transformation quality globally growing market with with high returns successfully  Risk reduced and 

13. Slide 13: Positioned For Growth

    INVESTOR DAY | 2010 Investor Day 2010 Positioned For Growth Michael W. Bell Senior Executive Vice President & Chief Financial Officer

14. Slide 14: Key Strategic Objectives

    Key Strategic Objectives  Successfully manage the strategic shift in our mix of business to increase our ROE, grow our earnings and reduce our risk profile  Leverage our strong market position and brand to drive profitable growth  Execute an expansion in our equity and interest rate hedging progr

15. Slide 15: Expected High Growth Areas

    Expected High Growth Areas  Asia (excluding Japan variable annuities)  Canada – diversified growth, including significant growth in Mutual Funds, Manulife Bank and Group Retirement Solutions  U.S. Wealth Management businesses (excluding variable annuities)  Investment Management for our clients

16. Slide 16: Well Positioned in the Top Economies in the World

    Well Positioned in the Top 3 Economies in the World and in 4 of the Top 10 Source: Wall Street Journal, International Monetary Fund. 4 4 INVESTOR DAY | 2010

17. Slide 17: Improving ROE by Increasing Prices, Reducing Risk, Changing Business Mix

    Focused on: Improving ROE by Increasing Prices, Reducing Risk, Changing Business Mix  Variable annuities  Universal life with no-lapse guarantee feature  Long-Term Care  Book value fixed deferred annuities 5 5 INVESTOR DAY | 2010

18. Slide 18: Earnings Excluding Market & Investment Results by Division

    Earnings Excluding Market & Investment Results1 by Division Latest Four Quarters Ending September 30, 2010 Earnings Excluding Market & Investment Results1 Latest 4 (in millions) 4Q09 1Q10 2Q10 3Q10 Quarters Asia Division (US$) 228 228 257 219 932 Canadian Division (C$) 331 217 239 258 1,045 U.S. Div

19. Slide 19: Estimated ROE by Division

    Estimated ROE by Division Latest 4 Quarters Ending September 30, 2010 Earnings Excluding Market & Allocation Calculated Investment Results1,2 of Equity1,3 ROE (Latest 4 Quarters) (in $billions) $ C$ % C$ (A) (B) (A / B) Asia Division (US$) 0.9 1.0 20% 5.2 19% Canadian Division (C$) 1.0 1.0 30% 7.8 1

20. Slide 20: 2015 Management Objectives

    2015 Management Objectives1 Net Income Average ROE5 Goal2 Allocated Goal (C$ billions) (2015) Equity3,4 (2015) Asia 1.5 5.7 >20% Accelerated growth Canada 1.5 10.6 14% Diversified financial services company U.S. 1.7 14.8 11% Focused transformation Reinsurance 0.2 0.6 33% Expected Cost of Additional

21. Slide 21: Key Drivers: 2010-2015 Earnings/ROE Growth Opportunities

    Key Drivers: 2010-2015 Earnings/ROE Growth Opportunities  Growth of targeted high return businesses  Asia and Wealth Management businesses  Improved new business strain  Growth in fee revenue from asset growth  Less growth in lower return businesses  Partially offset by expected reduction in f

22. Slide 22: Interest Rate Hedging

    Interest Rate Hedging  Use of Available for Sale (“AFS”) bonds as partial hedge  Reduced earnings sensitivity through 3Q10 management actions:  Increased fixed income asset duration in the surplus and liability segments  Purchased additional forward starting interest rate swaps  As at September

23. Slide 23: Equity Risk Hedging

    Equity Risk Hedging  Two approaches:  Traditional dynamic hedging, including use of long-term swaps  Macro hedging – short-term equity futures only  As at September 30, 2010 a 10% reduction in the market value of equity funds estimated to reduce net income by approximately $1.3 billion (reflects

24. Slide 24: Summary

    Summary  Our strategic plan for driving a favourable shift in mix of business from 2010 - 2015  Known areas of uncertainty  Hedging progress and additional plans  This afternoon – review of our 2015 management objectives 12 12 INVESTOR DAY | 2010

25. Slide 25: Asia Division: Accelerated Growth

    INVESTOR DAY | 2010 Asia Division: Accelerated Growth Robert A. Cook Senior Executive Vice President & General Manager, Asia

26. Slide 26: Agenda

    Agenda  The Opportunity  The Way Forward 22 2 INVESTOR DAY | 2010

27. Slide 27: Asia Division: Manulife's Growth Engine for the 21st Century

    Asia Division : Manulife’s Growth Engine for the 21st Century M A N U L I F E O P E R A T I O N S Top Line Growth Insurance Sales1 by Division 46% 59% 81% 54% Japan 41% China 19% FY 2007 3Q10 YTD 2015 Objective Asia Other Taiwan Bottom Line Growth Hong Kong Macau  35%+ of MFC earnings2  10-year Ne

28. Slide 28: Asia economies look set to return to natural share

    Asia economies look set to return to “natural share” Share of World GDP (PPP) Discovery of Americas Internet Revolution Fall of Roman Empire Marco Polo’s Trips to Asia Industrial Revolution 100% 80% 60% 40% 20% 0% 0 500 1000 1500 2000 China India Japan Europe US & Canada RoW Source: Angus Maddison,

29. Slide 29: Asia expected to lead world's economic growth

    Asia expected to lead world’s economic growth Global GDP (PPP) (96-08) (08-15E) (US$ trillions) CAGR CAGR Rest of World 6% 7% European Union 25.9 United States + Canada Japan Rest of Asia 5% 3% 19.0 16.5 20.4 5% 4% 15.2 4.9 3% 1% 7.8 15.8 8.7 4.4 33.7 8.5 2.9 17.5 9% 10% 6.0 1996 2008 2015E Asia (in

30. Slide 30: Asia Strategy evaluated using market segmentation

    Asia Strategy evaluated using market segmentation Current Future Maturing Emerging Giant Giants South Korea, Indonesia, Malaysia, China Countries Japan Taiwan, Hong Kong, Philippines, Vietnam India Singapore GDP growth forecast 1% 4% 6% 9% (2009-2014) Insurance penetration 8% 5 - 7% <2% <2% (% of GD

31. Slide 31: Relative Sizing of Manulife Insurance Businesses

    Relative Sizing of Manulife Insurance Businesses Total Insurance Sales1 3Q10 YTD Hong Kong 18% (US$ millions) Hong Kong 134 ASEAN 118 Japan ASEAN 55% 16% China / Taiwan 77 Japan 399 Total $728 China & Taiwan 11% 1 Sales is a non-GAAP measure; see “Note to Users – Performance and Non-GAAP Measures. 7

32. Slide 32: Relative Sizing of Manulife Non-VA Businesses

    Relative Sizing of Manulife Non-VA Businesses Total Wealth Sales1 (excluding VA & Taiwan Money Markets) 3Q10 YTD China & Taiwan Japan 30% 7% (US$ millions) Hong Kong 555 ASEAN 500 China / Taiwan 512 Japan 118 ASEAN Hong Kong 30% 33% Total $1,685 1 Sales is a non-GAAP measure; see “Note to Users – Pe

33. Slide 33: Agenda

    Agenda  The Opportunity  The Way Forward 99 9 INVESTOR DAY | 2010

34. Slide 34: Strategic Overview

    Strategic Overview Core Strategy Business Model Asia is 10 countries, therefore 10 Add Wealth business models: to Insurance  Japan – diversify  Hong Kong – leverage customer base  Other Asia – ride the economic wave Core Strategy Multiple Channels Build the Brand 10 10 10 INVESTOR DAY | 2010

35. Slide 35: Growth Opportunities

    Growth Opportunities  Continued expansion of our agency systems  Development of bank relationships Near  Entry into Retail MGA channel in Japan Term  Sales growth in our mutual fund businesses  Investment in the Manulife brand  India and Korea Longer  Consolidation in individual countries Ter

36. Slide 36: Japan - Record Insurance Sales

    Japan - Record Insurance Sales Sales1 (¥ billions) 35.4 Insurance sales up 61% 3Q10 YTD 28.4  Driven by new product offerings and successful distribution initiatives 23.5 including new MGA channel 22.0  Market share gains further reflect consumer flight to quality  MGA now accounts for 54% of tot

37. Slide 37: Japan: Growing Sales within a Large Mature Market

    Japan Growing Sales within a Large Mature Market Insurance Sales1 2006 2009 3Q10 YTD ¥10.9 billion ¥28.4 billion ¥35.4 billion MGA Agents Bank  Expanding where the distribution channel is growing  Continue to grow presence in the corporate market  Build retail product offering 1 Sales is a non-GA

38. Slide 38: Japan – Future Growth Plans

    Japan – Future Growth Plans MGA Bancassurance (Current) (Objective) Manulife Japan Bank A Bank B Corporate (~33%) Bank C MUFG Bank D Retail Bank E (~67%) Bank F Manulife Japan Bank G  Manulife Japan has relationships with 172  Mitsubishi UFJ Financial Group (MUFG) of the largest MGAs currently 99%

39. Slide 39: Hong Kong – Building Distribution Capacity

    Hong Kong – Building Distribution Capacity Insurance Sales1 (US$ millions) 151 131 134 Insurance sales up 30% 3Q10 YTD 125 127  Agent count up 18% in 2009 103  Result of focused Agency recruitment and retention efforts  Supported by strong Brand and recognized Financial Strength in the marketplac

40. Slide 40: Hong Kong - Continued growth in MPF

    Hong Kong - Continued growth in MPF MPF Funds under Management1 (US$ billions) Mandatory Provident Fund (MPF) 6.7 system launched in December 2000  2nd largest MPF provider 5.6  Strong organic growth with 32% CAGR in FUM1 since inception  Market share2 (AUM) of 17.1% in 2009, up 4.4 from 14.7% in

41. Slide 41: China - Solid base for growth

    China - Solid base for growth Licensed in 11 provinces and 43 cities  Now the world’s second largest economy, and still growing rapidly  Still very low insurance penetration  One child policy and improving life expectancy will create pension and health opportunities • Operating Cities • Pre-opera

42. Slide 42: China Insurance Market Summary

    China Insurance Market Summary Total In-force Premiums (Agency Channel) (RMB Millions) 2009 Manulife-Sinochem Rank #2 AIA 6,548 Manulife-Sinochem 1,632 Objectives: Prudential 1,594  Expand and become 1st foreign Aviva 835 insurer with national footprint CPIC-ING 604 Generali 443  Accelerate growth

43. Slide 43: Manulife-TEDA Overview

    Manulife-TEDA Overview  At the end of 1Q 2010, Manulife completed the transaction to acquire 49% of ABN AMRO-TEDA (renamed as “Manulife-TEDA”) for USD144M.  Immediate benefits of the deal:  Hit the ground running in China industry with FUM forecast US$1 trillion by 2014  At least five-year head-

44. Slide 44: ASEAN

    ASEAN  Insurance sales1 up 32% in 2009; up 10% 3Q10 YTD Indonesia  Diversifying distribution through 15 bank relationships  Insurance sales1 up 28% in 2009; up 37% 3Q10 YTD Vietnam  Newly launched alternate channels, namely micro-insurance and general agency  3Q10 YTD bank sales1 tripled compar

45. Slide 45: Asian Distribution Channels

    Asian Distribution Channels Agency Bancassurance Brokers & Others  Agency exclusively tied to  North Asian relationships  Brokers are “independent” Manulife open architecture vs advisers, previously tied agents  Agency distribution our core ASEAN exclusive deals competency in Asia  Facilitation

46. Slide 46: Bank Distribution

    Bank Distribution Goal: Build our credibility for a large regional deal  Insurance bank sales1 3Q10 YTD were close to 3 times higher than prior year  Bank sales1 represent 24% of total sales1 in 3Q10 YTD vs. 21% in prior year 1 Sales is a non-GAAP measure; see “Note to Users – Performance and Non-

47. Slide 47: Brand Building – Outdoor Media

    Brand Building – Outdoor Media 23 23 23 INVESTOR DAY | 2010

48. Slide 48: Brand Building – Creative, Non-Traditional

    Strategy: Brand Building – Creative, Non-Traditional 24 24 24 INVESTOR DAY | 2010

49. Slide 49: New Market Entry

    New Market Entry India South Korea  Research project underway  Monitoring acquisition opportunities  Business model being developed  Representative office opened  Regulatory issues have increased 25 25 25 INVESTOR DAY | 2010

50. Slide 50: Market Players: Large Multinationals – Attributes of Success

    Market Players Large Multinationals – Attributes of Success  Conscious of cultural diversity and how to address and adapt  Regional office has attained critical mass, is a driver of regional synergies and effectively filters home office requests  Asia is a material component of global financial r

51. Slide 51: Comparison of Manulife with AIA and Prudential

    Comparison of Manulife with AIA and Prudential Business Model Ultra fast-growth model Similar to Manulife, but Full-time model with Agency Distribution allow some part-timers imposed standards focused on building scale quickly Significant part of Large relationship with Limited success Bank Distribu

52. Slide 52: Asian Growth Strategy

    Asian Growth Strategy Manulife is one of only a handful of companies with a significant pan- Asian strategy. We believe our growth strategies, combined with financial discipline, will lead to sustained success. 28 28 28 INVESTOR DAY | 2010

53. Slide 53: Canadian Division: A Diversified Financial Services Company

    INVESTOR DAY | 2010 Canadian Division: A Diversified Financial Services Company Paul Rooney Senior Executive Vice President & General Manager, Canada

54. Slide 54: Agenda

    Agenda  The Opportunity:  A Diversified Financial Services Company  The Way Forward 2 2 INVESTOR DAY | 2010

55. Slide 55: A Diversified Financial Services Company

    A Diversified Financial Services Company Canadian Division Individual Individual Wealth Group Protection Management Businesses Individual Manulife Group 26% 30% 24% Insurance Investments Benefits Affinity Manulife Group Retirement 5% 10% 5% Markets Bank Solutions (GRS) % of 2009 Canadian Division 1

56. Slide 56: A Diversified Product Portfolio

    A Diversified Product Portfolio Protection Savings Term Insurance Universal Life Mutual Funds Critical Illness Whole Life GICs Disability Variable Annuities Annuities Travel Manulife Bank Group Retirement Medical & Dental Meeting the needs of Canadians, across the spectrum of financial services prod

57. Slide 57: Strong Diversified Distribution Capabilities

    Strong Diversified Distribution Capabilities  Independent Advisors Retail #1 in  National Accounts Distribution All Channels  MGA’s Leading  Brokers Group Market Distribution  Consultants Position Building  Affinity Markets Direct Sales momentum  Manulife Bank 5 5 INVESTOR DAY | 2010

58. Slide 58: Leading Market Positions

    Leading Market Positions New Business: 1H 2010 Rank Market Share GRS – Defined Contribution #1 42% Fixed Annuities #1 28% Individual Life * #2 17% Variable Annuities #2 18% Group Benefits #3 20% Manulife Bank1 #8 <2% Mutual Funds # 14 2% Sources: Mutual Funds: IFIC; Manulife Bank: OSFI; All products

59. Slide 59: Agenda

    Agenda  The Opportunity:  A Diversified Financial Services Company  The Way Forward 7 7 INVESTOR DAY | 2010

60. Slide 60: Go Forward Strategy

    Go Forward Strategy Maintain Invest in High Market  Share Return Businesses  Manulife Bank  Group Retirement Solutions  Individual Insurance  Mutual Funds  Group Benefits  Affinity Markets  Variable Annuities  Group Benefits (small business segment) 8 8 INVESTOR DAY | 2010

61. Slide 61: Manulife Bank: Where have we come from?

    Manulife Bank Where have we come from? Net Income (C$ millions) 80 81 G R 52% C A 68 54 35 2 3 5 21  Strong growth in 11 Manulife One 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009  Advisor based bank Net Lending Assets (C$ billions) 12.0  Unique distribution % 10.1 and product model AG R 39 C

62. Slide 62: Manulife Bank Growth Strategy

    Manulife Bank Growth Strategy Strengthen & Grow Core Business  Advertising  Distribution penetration and productivity  Product/service enhancements  Technology New Products & Services  Expand lending program  Alternative distribution  Trust company 10 10 INVESTOR DAY | 2010

63. Slide 63: Group Retirement Solutions

    Group Retirement Solutions  Defined Benefit to Defined Contribution Innovate  Small Business Market  Payout Strategy  Distribution expansion Expand  Cross sell  Build on member retention success  Infrastructure capacity Strengthen  Efficiency 11 11 INVESTOR DAY | 2010

64. Slide 64: Mutual Funds

    Mutual Funds Product &  Expand product choices  Manage performance Marketing  Build media and brand strategy  Expand mutual fund sales team Distribution  Develop Key Account strategy Market  Strategic Partners  New products Opportunities  Acquisitions 12 12 INVESTOR DAY | 2010

65. Slide 65: Mutual Funds Distribution Strategy

    Mutual Funds Distribution Strategy Mutual Fund Industry Manulife Mutual Funds 93% 31% 31% $186 B $186 B $5 B $191 B 5% 7% 33% Planning Full Service Brokers Discount Brokers Bank Branch Source: Investor Economics. Bank Branch as at June 30th 2009. Financial Advisors, Full-Service Brokers, and Discoun

66. Slide 66: Affinity Markets

    Affinity Markets Favourable  Low capital, high return  Diversified product portfolio Business Attributes  High remittable earnings Growth  Expand direct to consumer marketing  Cross sell Opportunities  Market / product expansion Profitability &  Systems consolidation Productivity  E-commerce

67. Slide 67: Group Benefits

    Group Benefits  Low required capital; fee for service Favourable  Non-correlated risks Business Attributes  Annually re-priced risk  Over 80% of earnings remittable Growth  Focus on small business  Expand distribution Opportunities  Leverage large customer base Profitability &  Managing clai

68. Slide 68: Individual Insurance

    Individual Insurance Favourable  Large, mature business  Substantial and growing earnings stream Business Attributes  Diversified product portfolio Growth  Expand in term, living benefits and adjustable products Opportunities  Expand distribution Profitability &  UL price increases  Systems c

69. Slide 69: Large Customer Base: Cross sell, Collaboration and Retention

    Large Customer Base Cross sell, Collaboration and Retention Individual Individual Wealth Mgmt Insurance > 1 million ~1.6 million in-force contracts in-force policies Manulife We serve Affinity Bank 1 in 5 Markets Canadians > 450,000 loan, mortgage > 700,000 in-force & deposit accounts certificates G

70. Slide 70: Key Messages

    Key Messages  Maintain broad based, balanced approach  Focus investment on high return, low capital businesses  Manulife Bank, Mutual Funds, GRS and Affinity Markets  Adjust business model for evolving capital and accounting framework, but at a measured pace  Leverage our in-force customer base

71. Slide 71: U.S. Division (John Hancock): Focused Transformation

    INVESTOR DAY | 2010 U.S. Division (John Hancock): Focused Transformation James R. Boyle Senior Executive Vice President, U.S. Division & President, John Hancock Financial Services

72. Slide 72: Agenda

    Agenda ƒ A Business in Transition ƒ The Way Forward 2 2 INVESTOR DAY | 2010

73. Slide 73: A Business in Transition

    A Business in Transition ƒ Why? ƒ Historically low interest rates ƒ Historically high equity market volatility ƒ Increasing capital requirements ƒ Regulatory uncertainty ƒ U.S. economy remains challenged ƒ Opportunities in the $12 trillion mutual fund market1 ƒ Growth in the $16 trillion retirement

74. Slide 74: Transition – Numbers Tell The Story

    Transition – Numbers Tell The Story Wealth 3Q09 3Q10 $ % Management Sales1 YTD YTD Change Change Mutual Funds 4,599 7,151 + 2,552 + 55% RPS/401(k) 2,883 3,567 + 684 + 24% Variable Annuity 4,570 2,049 - 2,521 - 55% Fixed Products 2,588 1,122 - 1,466 - 57% Total Wealth Management 14,640 13,889 - 751 -

75. Slide 75: Agenda

    Agenda ƒ A Business in Transition ƒ The Way Forward 5 5 INVESTOR DAY | 2010

76. Slide 76: John Hancock Brand = Strength, Stability, Innovation

    John Hancock Brand = Strength, Stability, Innovation ƒ 94% awareness among U.S. consumers ƒ Brand attributes ƒ Human and real ƒ Empathetic and have customer’s best interests at heart ƒ Before crisis and today: one of the top brands in category ƒ 83% of John Hancock customers have a positive view of

77. Slide 77: Wealth Management Sales Up 6%

    Wealth Management Sales1,2 Up 6% We can reposition and grow! 3Q09 YTD 3Q10 YTD $12.0 billion $12.8 billion 217 Wholesalers 221 Wholesalers „ Variable Annuities „ Mutual Funds „ Retirement Plan Services 1 Sales is a non-GAAP measure; see “Note to Users – Performance and Non-GAAP Measures”. 2 Wealth M

78. Slide 78: Equity Market Recovery

    Equity Market Recovery Wealth Funds Under Management1,2 (US$ billions) 143 146 98 3Q07 1Q09 3Q10 1 Funds Under Management is a non-GAAP measure; see “Note to Users – Performance and Non-GAAP Measures”. 2 Wealth Management Funds Under Management excluding Fixed Products Funds Under Management. 8 8 IN

79. Slide 79: Mutual Fund Market Share

    Mutual Fund Market Share Gross Sales Rank1 Net Sales Rank2 #5 Ra nk a le s # 12 s try S Indu # 16 # 21 2004 2007 Aug 2010 Aug 2010 1 Source: Strategic Insight Simfund, ICI Confidential. New sales is calculated including only John Hancock retail-long term open end funds, excluding money market funds

80. Slide 80: Mutual Funds: Stronger Product Line Up & Greater Diversity

    Mutual Funds Stronger Product Line Up & Greater Diversity 3Q09 YTD Sales1 3Q10 YTD Sales1 13 20 or or Morningstar Morningstar rated funds2 rated funds2 „ #1 Selling Fund „ #2 Selling Fund „ #3 Selling Fund „ All Other Funds 1 Sales is a non-GAAP measure; see “Note to Users – Performance and Non-GAAP

81. Slide 81: Retirement Plan Services: New Distribution Momentum

    Retirement Plan Services New Distribution Momentum New Distribution Partners Sales1 Growth Proposal Inventory3 (Edward Jones, Ameriprise & Morgan Stanley Smith Barney2) 283 $11 billion w th G ro 75% 1 103 3Q09 YTD 3Q10 YTD All Channels 1 Sales is a non-GAAP measure; see “Note to Users – Performance

82. Slide 82: Retirement Plan Services Growth Strategy – Double 401(k) Opportunity

    Retirement Plan Services Growth Strategy – Double 401(k) Opportunity ƒ Today we are a leader in the 401(k) micro plan market, plans with less than $3M in assets1 ƒ Plan to launch a product solution to address larger plan needs, initially plans up to $25M in assets and further up market over time 201

83. Slide 83: Lifestyle Franchise - Target Date and Risk Funds

    Lifestyle Franchise - Target Date and Risk Funds An industry leading position…15 years in the making Assets under Management1 (US$ billions) Fidelity 118.1 Vanguard 82.8 John Hancock 61.5 Lifestyle Assets Lifecycle Assets 3Q10 YTD Deposits2 ƒ $5.3 billion 401(k) deposits ƒ $1.0 billion mutual fund d

84. Slide 84: Asset Allocation Franchise

    Asset Allocation Franchise ƒ A leader in multi-asset class, multi-style, multi-manager investing ƒ Over $69 billion in AUM across variable annuities, retirement plans, variable universal life and mutual funds as of 9/30/10 ƒ Third largest provider of fund-of-funds in the industry; largest multi-mana

85. Slide 85: Life Insurance Distribution - Industry Leading Shelf Space

    Life Insurance Distribution - Industry Leading Shelf Space Life Insurance Ranking in Leading Independent Distributors John Hancock Distributor Ranking 1 Advantage Insurance Network #1 BRAMCO Top 5 Capitas Financial #1 CPS Insurance Service Top 5 Crump Life Insurance Services #1 Highland Capital Brok

86. Slide 86: Industry Leader in VUL Product Line

    Industry Leader in VUL Product Line Variable Universal Life Market Share & Rank (%) Rank #1 Rank #1 Rank #1 14.6 14.8 13.7 Rank #1 12.9 Rank #2 11.1 10.3 Rank #4 9.7 9.5 9.5 9.1 7.7 8.2 2005 2006 2007 2008 2009 2Q10 YTD John Hancock Market Share Top Competitor Market Share ƒ John Hancock has built d

87. Slide 87: Life Insurance - Product Transition

    Life Insurance - Product Transition Significant re-balancing of product portfolio 2009 2011 Target Mix COLI/BOLI 6% Term 10% COLI/BOLI 10% Term 14% Guar NP WL 3% VUL 14% VUL 21% UL NLG 19% UL Other 16% UL NLG 51% New UL 21% UL Other 15% UL NLG product cycle nearing its end New UL products gaining mo

88. Slide 88: The Way Forward

    The Way Forward ƒ Successful transition underway ƒ Maintain and leverage brand excellence ƒ Smart expansion of select product lines with desired risk and reward profile ƒ Rebuild core businesses as economy recovers ƒ Focus on honoring commitments to our clients and employees ƒ Build shareholder valu

89. Slide 89: Investment Division (General Fund): Diversified & High Quality

    INVESTOR DAY | 2010 Investment Division (General Fund): Diversified & High Quality Warren Thomson Senior Executive Vice President & Chief Investment Officer

90. Slide 90: Agenda

    Agenda ƒ Overview ƒ Portfolio Update ƒ Bonds ƒ Mortgages ƒ Public Equities ƒ Alternative Assets 22 2 INVESTOR DAY | 2010

91. Slide 91: Core Strategy & Implementation

    Core Strategy & Implementation Investment Philosophy… Bottom-up Two synergistic development of asset mandates: Derive superior return mix to match needs of General Fund & and risk reduction individual product Third Party Asset using a blend of segments Management assets 33 3 INVESTOR DAY | 2010

92. Slide 92: Strong Risk Management Culture

    Strong Risk Management Culture Risk Management Philosophy ` Strong asset management skills including but not limited to credit 44 4 INVESTOR DAY | 2010

93. Slide 93: Diversified, High Quality General Fund Portfolio

    Diversified, High Quality General Fund Portfolio Fixed Income (89%) Non-Fixed Income (11%) Government Bonds Corporate Bonds Commercial Real Estate Public Equities 20.3% 27.0% 3.0% 5.1% Mortgages Bank Loans 15.5% 1.2% Policy Loans 3.2% MBS/ABS Oil and Gas & Other Private Equity 3.5% 0.8% 0.6% Private

94. Slide 94: Fixed Income - Highly Diversified by Industry

    Fixed Income - Highly Diversified by Industry Public Bonds & Private Placements 3.0% Private Placements Public Bonds 32.8% 4.8% 0.2% 1.6% 0.2% 1.2% 10.1% 0.4% 8.9% 2.0% 1.4% 6.6% 5.8% 2.0% 1.1% 5.6% 3.5% 2.5% 3.6% 1.5% 1.2% Governm ent Utilities Banks Other Energy Securitized Industrial Consum er Ot

95. Slide 95: Highly Diversified Below Investment Grade Bonds

    Highly Diversified Below Investment Grade Bonds Below Investment Grade Public Bonds & Private Placement Debt 0.3% Private Placements Public Bonds 1.6% 26.3% 8.5% 13.6% 7.4% 5.5% 9.9% 0.2% 6.3% 6.0% 1.6% 3.9% 3.4% 2.7% 1.9% 0.2% 0.4% 0.3% Governm ent Financial Utilities Basic Securitized Consum er Co

96. Slide 96: Bond Credit Quality Within Target Range

    Bond Credit Quality Within Target Range Arithmetic Weighted1 Average Credit Quality AA AA- A+ A A- BBB+ Q2/06 Q4/06 Q2/07 Q4/07 Q2/08 Q4/08 Q2/09 Q4/09 Q2/10 Q3/10 1Based on Carrying Value. 88 8 INVESTOR DAY | 2010

97. Slide 97: Continued Improvement in Gross Unrealized Losses

    Continued Improvement in Gross Unrealized Losses Total Gross Unrealized Losses (C$ millions) - Represents 0.9% of Fixed Income Securities Other 2,475 2,385 Financials 1,764 Securitized 1,407 1,033 369 3Q09 4Q09 1Q10 2Q10 3Q10 Net Exposure 1 3Q10 Critical Gross Unrealized Losses >20% of cost and > 6

98. Slide 98: High Quality & Diversified Direct Mortgages

    High Quality & Diversified Direct Mortgages Mortgages by Geography Mortgages by Type Multi-family Residential Agriculture -CMHC Insured 6% 4% Canada Canadian Single- Multi-family (Non-CMHC) Family Residential Residential 28% 6% 7% Canadian Single- Family Residential - CMHC Insured Retail 22% 19% U.S

99. Slide 99: Credit Provisions & Impairments Significant Decline Since Height of the Recession

    Credit Provisions & Impairments Significant Decline Since Height of the Recession Credit Provisions & Impairments1 (C$ Millions) 455 Long term expected level based on Moody's default studies applied 189 173 to our aggregated credit exposure: ~$83 million per quarter 150 36 16 17 24 7 1 55 59 12 61 0

100. Slide 100: Public Equity & Alternative Asset Mix

     General Fund Portfolio Public Equity & Alternative Asset Mix Public Equities & Alternative Assets1 5.1% 3.0% 0.8% 0.8% 0.7% 0.6% Public Equities Commercial Real Oil and Gas & Other Power & Timber & Agriculture Private Equity Estate Infrastructure As at September 30, 2010, Carrying Value. $22.6 billi

101. Slide 101: Diversified Public Equity Portfolio

     Diversified Public Equity Portfolio By Geography By Industry US 28% Canada 37% Financial 23% Funds 27% Energy 8% Utilities 2% Consumer Technology 3% Other 12% (non-cyclical) 7% Diversified, Media, Internet 4% Hong Kong 3% Industrial 6% Singapore 7% Basic Materials 6% Telecommunications 4% Europe 7%

102. Slide 102: Why Invest in Alternative Assets?

     Why Invest in Alternative Assets? Alternative Assets as a Competitive Advantage Diversification Alternative Strong benefits Good fit for long to public historical through low duration liabilities equities returns correlation Leads to higher risk adjusted returns & eliminates need to pursue riskier f

103. Slide 103: Alternative Assets Enhance Risk Adjusted Returns

     Alternative Assets Enhance Risk Adjusted Returns Source: MFC Global Investment Management. 15 15 15 INVESTOR DAY | 2010

104. Slide 104: High Quality, Unlevered Commercial Real Estate

     High Quality, Unlevered Commercial Real Estate By Type Notable Holdings Office – Location Market Value Occupancy Rates Company Use Downtown 18% 53% Toronto 1,463 97% Washington 954 99% Los Angeles / San Francisco 828 94% Office – Suburban Boston 736 99% 12% Chicago 479 78% Industrial 9% Atlanta 375

105. Slide 105: Alternative Assets Strong Historic Performance

     Alternative Assets Strong Historic Performance Historic Annualized Returns1 25.6% 16.1% 13.8% 10.9% 9.6% 6.9% 4.6% Commercial Private Equity Oil & Gas Power & Timber Agriculture Average Return2 Real Estate & Mezzanine Infrastructure 1 Represents 2005 to 2009 data. 2 Average Return represents the 5-y

106. Slide 106: In Summary

     In Summary ƒ Diversified, stable general account asset mix ƒ High quality, high performing portfolio ƒ Strong credit and risk management culture with centralized controls ƒ Returns enhanced through use of alternative assets in lieu of increasing credit risk 18 18 18 INVESTOR DAY | 2010

107. Slide 107: Global Investment Management: Enhancing Margins Globally

     INVESTOR DAY | 2010 Global Investment Management: Enhancing Margins Globally Jean-François Courville, President and Chief Executive Officer, MFC Global Investment Management

108. Slide 108: MFC GIM Evolution

     MFC GIM Evolution Growth Acceleration Growth Foundation ƒ Leveraging capabilities around the world Definition ƒ Commercialization/ ƒ Regional and asset Distribution class cross-selling Formation ƒ Infrastructure build- ƒ Separation from out General Account ƒ Strengthening of ƒ Leverage MFC capabilit

109. Slide 109: Global Footprint

     Global Footprint CANADA U.K. 58 Investment 10 Investment Professionals Professionals JAPAN 11 Investment Professionals U.S.A. 97 Investment Professionals HONG KONG & ASIA 102 Investment Professionals More than 275 Investment Professionals; Offices in 17 countries and territories United States Canada

110. Slide 110: Broad Capabilities

     Broad Capabilities MFC GIM Public Markets MFC GIM Alternative Markets Hancock Agricultural Hancock Timber Equity Fixed Income Investment Group Resource Group ƒ U.S. ƒ U.S. ƒ Canada ƒ Canada ƒ U.K. ƒ U.K. ƒ Asia/Japan ƒ Asia/Japan Portfolio Solutions Strategic & Multi-asset Customized Tactical Funds

111. Slide 111: Strong Investment Performance

     Strong Investment Performance Assets Above Benchmark 80% 68% 68% 1-Year 3-Year 5-Year September 30, 2010 Data Source: MFC GIM This information has been prepared for informational purposes only. The information and/or analysis shown above have been compiled by MFC GIM or arrived at from sources belie

112. Slide 112: Five & Four Star Rated Funds

     40 Five & Four Star Rated Funds1 US: 20 Funds Canada: 16 Funds Asia: 4 Funds 5 Star Funds (4) 5 Star Funds (6) 4 Star Funds (4) ƒ JHF Global Opportunities ƒ Manulife Global Opportunities ƒ MGF US Treasury Inflation Protected ƒ JHF Patriot Premium Dividend II ƒ Manulife Simplicity Income Portfolio Se

113. Slide 113: Recognition for Excellence

     Recognition for Excellence 7 7 INVESTOR DAY | 2010

114. Slide 114: Recognition for Outperformance

     Recognition for Outperformance ƒ Indonesian equity fund, Manulife Syariah Sektoral Amanah, receives Best Islamic Equity Award from Investor Magazine Source: Bloomberg Magazine, October 2010, pages 78-88. 8 8 INVESTOR DAY | 2010

115. Slide 115: Rapid Growth In Client Assets

     Rapid Growth In Client Assets Assets Under Management1 (C$ billions) 184 % A GR 27 123 C 110 94 96 91 83 73 19 21 15 2 2 2001 2002 2003 2004 2005 2006 2007 2008 2009 Oct 2010 Oct 2010 3 Pro-Forma 1 Includes assets managed on behalf of Operating Division clients as well as Institutional clients. 2 20

116. Slide 116: Building our Brand

     Building our Brand Rebranding to Manulife Asset Management as our global institutional name to better leverage and support company-wide branding activity 10 10 INVESTOR DAY | 2010

117. Slide 117: In Conclusion

     In Conclusion ƒ Rapidly growing asset management business ƒ Deep capabilities ƒ Global network with local knowledge advantage ƒ Superior long term performance ƒ Differentiated philosophy ƒ Creating value and helping accelerate growth for Manulife wealth businesses 11 11 INVESTOR DAY | 2010

118. Slide 118: Objectives for the Future

     INVESTOR DAY | 2010 Investor Day 2010 Objectives for the Future Michael W. Bell Senior Executive Vice President & Chief Financial Officer

119. Slide 119: Legal Disclaimer

     Legal Disclaimer Caution Regarding Forward-Looking Statements This presentation 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

120. Slide 120: Overview

     Overview  2015 Management Objectives1(Not Guidance):  $4 billion of Net Income  13% ROE2  With less expected volatility  Key drivers of future earnings growth/ROE expansion  Known areas of uncertainty 1 Does not constitute guidance. Achievement of objectives subject to, among other factors, as

121. Slide 121: Key Planning Assumptions

     Key Planning Assumptions  Based on current accounting and capital standards since uncertainty regarding potential changes  No acquisitions or divestitures  Equity market returns and interest rates consistent with current best estimate of long-term assumptions  No net impact from any future basis

122. Slide 122: 2015 Management Objectives

     2015 Management Objectives1 Net Income Average ROE5 Goal2 Allocated Goal (C$ billions) (2015) Equity3,4 (2015) Asia 1.5 5.7 >20% Canada 1.5 10.6 14% U.S. 1.7 14.8 11% Reinsurance 0.2 0.6 33% Expected Cost of Additional Hedging (0.4) - - Corporate/Other6 (0.5) - - Total Company 4.0 31.7 13% 1 Does no

123. Slide 123: Key Drivers: 2010-2015 Earnings/ROE Growth Opportunities

     Key Drivers: 2010-2015 Earnings/ROE Growth Opportunities  Growth of targeted high return businesses  Asia and Wealth Management businesses  Improved new business strain  Growth in fee revenue from asset growth  Less growth in lower return businesses  Partially offset by expected reduction in f

124. Slide 124: Asia Division – Growth Opportunities

     Asia Division – Growth Opportunities Latest 4 Quarters Ending 3Q10 2015 Objectives1 Earnings Excluding Estimated Net Income ROE2 Market & Investment ROE2 by Division Goal Results2 US$ 0.9 billion 19% US$ 1.4 billion >20%  Significant growth planned for high return insurance and wealth management bu

125. Slide 125: Canadian Division – Growth Opportunities

     Canadian Division – Growth Opportunities Latest 4 Quarters Ending 3Q10 2015 Objectives1 Earnings Excluding Estimated Net Income ROE2 Market & Investment ROE2 by Division Goal Results2 C$ 1.0 billion 13% C$ 1.5 billion 14%  Significant growth planned for high return wealth management businesses  Mu

126. Slide 126: U.S. Division – Growth Opportunities

     U.S. Division – Growth Opportunities Latest 4 Quarters Ending 3Q10 2015 Objectives1 Earnings Excluding Estimated Net Income ROE2 Market & Investment ROE2 by Division Goal Results2 US$ 0.9 billion 8% US$ 1.6 billion 11%  Planned growth in retirement and mutual fund businesses  Higher expected earni

127. Slide 127: Known Areas of Uncertainty

     Known Areas of Uncertainty  Market and investment risks  Potential accounting standards changes (e.g. IFRS)  Regulatory and capital regime (e.g. OSFI)  Timing and approach to expanded hedging  Additional risks1 1 See “Risk Factors” in our most recent Annual Information Form, “Risk Management” a

128. Slide 128: In Summary

     In Summary  Strong businesses in each of our major geographies  Globally recognized brands  Our strategic plan to drive a favourable shift in our mix of business  Opportunities for higher ROE, earnings growth and reduced risk  Additional financial disclosure to support sum-of-the-parts valuatio

129. Slide 129: 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: Earnings Excluding Market and Investment Results; Adjusted Earnings from Operations; Return on Common Shareho

130. Slide 130: Note to Users (cont'd)

     Note to Users (cont’d) Earnings Excluding Market and Investment Results by Division Latest 4 Asia Division (US$ millions) 4Q09 1Q10 2Q10 3Q10 Quarters Reported Earnings 274 412 (693) 546 539 Market & Investment Results 46 184 (950) 327 (393) Earnings excluding market and investment results 228 228 2

131. Slide 131: Accountability to Objectives

     Investor Day 2010 Accountability to Objectives Donald A. Guloien President and Chief Executive Officer

132. Slide 132: Manulife Competitive Strengths

     Manulife Competitive Strengths 9 Strong capital position 9 Enviable market position in Asia, retirement segments and other key growth markets 9 Excellent brand recognition and reputation 9 Superior asset quality 9 Quality team 9 Strong financial strength ratings 9 Significant scale 2 2 INVESTOR DAY

133. Slide 133: The Way Forward In Summary

     The Way Forward In Summary ƒ Manulife is positioned for growth ƒ Addressing challenges head-on; improving our risk profile ƒ Capitalizing on accelerated growth momentum in Asia ƒ Strong, growing diversified financial services firm in Canada ƒ Focused transformation well underway in U.S. ƒ Core compe

134. Slide 134: Accountability to 5 Year Plan Embedded in Compensation

     Accountability to 5 Year Plan Embedded in Compensation Compensation to be linked to: Achieving Maintaining Reducing Maintaining Improving earnings health risk exposure strong capital stock price objectives (short of business & levels & long term) executing on leading to the strategy achievement of t

135. Slide 135: Question & Answer Session

     Thank You Question & Answer Session 5 5 INVESTOR DAY | 2010

136. Slide 136: 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: Earnings Excluding Market and Investment Results; Adjusted Earnings from Operations; Return on Common Shareho

137. Slide 137: Note to Users (cont'd)

     Note to Users (cont’d) Earnings Excluding Market and Investment Results by Division Latest 4 Asia Division (US$ millions) 4Q09 1Q10 2Q10 3Q10 Quarters Reported Earnings 274 412 (693) 546 539 Market & Investment Results 46 184 (950) 327 (393) Earnings excluding market and investment results 228 228 2

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