Manulife Financial Corporation · TSX:MFC

Manulife Financial — Shareholder Meeting (May 2011)

64 slides from Manulife Financial's shareholder meeting presentation, May 5, 2011

  1. Slide 1: Manulife Financial Corporation Annual Meeting

    Manulife Financial Corporation The Manufacturers Life Insurance Company Annual Meeting May 5, 2011

  2. Slide 2: Opening Remarks

    Opening Remarks Gail Cook-Bennett Chair, Board of Directors Manulife Financial Corporation The Manufacturers Life Insurance Company

  3. Slide 3: Platform Introductions

    Platform Introductions  Michael Bell, Senior Executive Vice President and Chief Financial Officer  Donald Guloien, President and Chief Executive Officer  J-P. Bisnaire, Senior Executive Vice President, Corporate Development and General Counsel  Angela Shaffer, Vice President and Corporate Secret

  4. Slide 4: The Stars of Excellence

    The Stars of Excellence This year’s honourees come from 11 countries and territories:  China  Thailand  Hong Kong  The Philippines  Japan  Vietnam  Malaysia  United States of America  Singapore  Canada  Taiwan

  5. Slide 5: Retiring Board Members

    Retiring Board Members Pierre Ducros Gordon Thiessen Director Since: 1999 Director Since: 2002 Manulife Financial Corporation Manulife Financial Corporation The Manufacturers Life Insurance The Manufacturers Life Insurance Company Company Thomas Kierans Director Since: 1989 Manulife Financial Corpor

  6. Slide 6: Calling the Meeting to Order

    Calling the Meeting to Order Manulife Financial Corporation The Manufacturers Life Insurance Company

  7. Slide 7: 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

  8. Slide 8: 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. A financial measure is considered a non-GAAP measure for Canadian securities law purposes if it is presented other than in accordance wi

  9. Slide 9: Notice of Meeting, Confirmation of Quorum and Voting Instructions

    Notice of Meeting, Confirmation of Quorum and Voting Instructions Manulife Financial Corporation The Manufacturers Life Insurance Company

  10. Slide 10: Election of Directors

    Election of Directors Manulife Financial Corporation The Manufacturers Life Insurance Company

  11. Slide 11: Election of Directors of Manulife Financial Corporation

    Election of Directors of Manulife Financial Corporation Manulife Financial Corporation

  12. Slide 12: Nominees for the Election of Directors of Manulife Financial Corporation

    Nominees for the Election of Directors of Manulife Financial Corporation  Linda B. Bammann  Scott M. Hand  Joseph P. Caron  Robert J. Harding  John M. Cassaday  Luther S. Helms  Gail C.A. Cook-Bennett  Donald R. Lindsay  Thomas P. d’Aquino  Lorna R. Marsden  Richard B. DeWolfe  John R.V.

  13. Slide 13: Election of Directors of The Manufacturers Life Insurance Company

    Election of Directors of The Manufacturers Life Insurance Company The Manufacturers Life Insurance Company

  14. Slide 14: Nominees for Election of Policyholders' Directors

    Nominees for Election of Policyholders’ Directors of The Manufacturers Life Insurance Company  John M. Cassaday  Thomas P. d’Aquino  Richard B. DeWolfe  Lorna R. Marsden  Hugh W. Sloan, Jr.

  15. Slide 15: Nominees for Election of Shareholder's Directors

    Nominees for Election of Shareholder’s Directors of The Manufacturers Life Insurance Company  Linda B. Bammann  Scott M. Hand  Joseph P. Caron  Robert J. Harding  Gail C.A. Cook-Bennett  Luther S. Helms  Robert E. Dineen, Jr.  Donald R. Lindsay  Donald A. Guloien  John R.V. Palmer

  16. Slide 16: Appointment of the Auditors

    Appointment of the Auditors Ernst & Young LLP, Chartered Accountants

  17. Slide 17: Shareholders' Approval of Advisory Resolution on Executive Compensation

    Manulife Financial Corporation Shareholders’ Approval of Advisory Resolution Accepting Approach to Executive Compensation Manulife Financial Corporation

  18. Slide 18: Tabling of 2010 Consolidated Financial Statements and Reports

    Tabling of 2010 Consolidated Financial Statements and Reports of the Auditor and Actuary Thereon Manulife Financial Corporation The Manufacturers Life Insurance Company

  19. Slide 19: Shareholder Proposals

    Shareholder Proposals Manulife Financial Corporation

  20. Slide 20: Shareholder Proposal - No. 1

    Shareholder Proposal - No. 1 Studies show that businesses with a critical mass of women on their boards of directors are more successful. Bearing in mind that institutions renew their boards of directors over a period of between 5 and 10 years, it is proposed that the board of directors adopt a poli

  21. Slide 21: Shareholder Proposal No. 2

    Shareholder Proposal No. 2 The compensation of the most senior officer should be justifiable relative to the employees who contribute to the most senior officer’s success and the success of the business. It is proposed that the board of directors adopt a policy stipulating an internal pay ratio that

  22. Slide 22: Manulife Financial Corporation Annual Meeting

    Manulife Financial Corporation The Manufacturers Life Insurance Company Annual Meeting May 5, 2011

  23. Slide 23: Presentation by the Chief Financial Officer

    Presentation by the Chief Financial Officer Manulife Financial Corporation The Manufacturers Life Insurance Company

  24. Slide 24: Annual General Meeting - Michael W. Bell, CFO

    Annual General Meeting Michael W. Bell Senior Executive Vice President & Chief Financial Officer May 5, 2011

  25. Slide 25: Overview

    Overview  Progress on Strategic Priorities  2010 Financial and Operating Results  2011 First Quarter Results 2

  26. Slide 26: Progress on Strategic Priorities

    Progress on Strategic Priorities  Growing and diversifying our businesses  Maintaining strong capital levels and the financial strength which supports our strong brands  Driving a significant reduction in our risk to unfavourable equity markets and interest rates  Improving our ROE through chang

  27. Slide 27: 2010 Financial and Operating Results

    2010 Financial and Operating Results  Adjusted earnings from operations1: $2.87 billion after tax  Net loss for the full year reflected two major legacy issues  Actuarial basis change: $2.07 billion  Goodwill impairments: $1.04 billion 1 Non-GAAP measure; see “Note to Users – Performance and Non

  28. Slide 28: Asia – Rapid Growth

    Asia – Rapid Growth MANULIFE OPERATIONS Sales1 Growth  Targeted insurance sales increased 43%2 Japan China  Record $1.1 billion in insurance sales – 42% of Manulife’s total vs. 19% in 2007 Taiwan  Targeted wealth sales increased 32%2 Hong Kong Macau Earnings Vietnam Philippines  Approximately 30

  29. Slide 29: Canada – Diversified Market Leadership in High Return Businesses

    Canada – Diversified Market Leadership in High Return Businesses MANULIFE OPERATIONS Sales1 Growth  Individual wealth targeted for growth sales up 11% in 2010  Record mutual fund deposits of $1.4 billion – nearly tripling 2009  Group Retirement business ranked #1 in defined contribution sales Can

  30. Slide 30: U.S. – Repositioned for Higher Return Growth

    U.S. – Repositioned for Higher Return Growth MANULIFE OPERATIONS Sales1 Growth  Leveraging strong brand, market position and distribution capabilities  JH Mutual Funds record sales up 48%2 from 2009  JH Retirement services record sales, #1 sales in small group segment  Record Funds under Managem

  31. Slide 31: 2010 Sales Growth in the Products Targeted for Growth

    2010 Sales Growth in the Products Targeted for Growth Insurance Sales1 Wealth Management Sales1 Targeted Growth Products Targeted Growth Products (C$ millions) (C$ millions) 20% 23% Growth2 Growth2 2009 2010 2009 2010 1 Non-GAAP measure. See “Note to Users – Performance and Non-GAAP Measures” below.

  32. Slide 32: Ahead of Timeline for Equity Risk Reduction

    Ahead of Timeline for Equity Risk Reduction Earnings Sensitivity to Equity Markets1 (C$ millions) Assuming 80% hedge asset offset (1,240) Assuming 100% hedge asset offset  Percentage of underlying earnings (1,200) sensitivity hedged  Approximately 50% as of year-end 2010 (740) (660)  On track to

  33. Slide 33: Considerable Progress in Interest Rate Risk Reduction

    Considerable Progress in Interest Rate Risk Reduction Earnings Sensitivity to Interest Rates1 (C$ millions) Sensitivity excluding AFS bond offset (2,200) Sensitivity including  Reduction in interest rate sensitivity AFS bond offset (1,800) from 3Q10  18% as of year-end 2010 (1,600)  On track to m

  34. Slide 34: Financial Strength

    Financial Strength Minimum Continuing Capital and Surplus Requirements Ratio (MLI) 249%  249% MCCSR on December 31, 234% 240% 2010 – strongest in years 221%  Substantial buffer – particularly in 150% Supervisory light of lower equity market and Target interest rate sensitivity  Supports strong AA

  35. Slide 35: Strong First Quarter 2011 Results

    Strong First Quarter 2011 Results  Sales1 of targeted growth products  Wealth sales for targeted growth products up 22% vs. 1Q10  Insurance sales for targeted growth products up 15% vs. 1Q10  Record Mutual Fund sales in U.S.  Record first quarter sales for Individual, Affinity and Mutual Funds

  36. Slide 36: Risk Reduction Continued in 1Q 2011

    Risk Reduction Continued in 1Q 2011 Earnings Sensitivity to Equity Markets1 Earnings Sensitivity to Interest Rates2 (C$ millions) (C$ millions) Assuming 80% hedge Sensitivity excluding (1,290) asset offset AFS bond offset (2,200) Assuming 100% Sensitivity including hedge asset offset AFS bond offset

  37. Slide 37: Summary

    Summary  Strong progress towards strategic priorities  Targeted growth and diversification  Capital and financial strength  Improved risk profile  ROE objective for 2015  Quality value proposition for our clients  Strong start for 2011 14

  38. Slide 38: Manulife Financial Corporation Annual Meeting

    Manulife Financial Corporation The Manufacturers Life Insurance Company Annual Meeting May 5, 2011

  39. Slide 39: Presentation by the President and Chief Executive Officer

    Presentation by the President and Chief Executive Officer Manulife Financial Corporation The Manufacturers Life Insurance Company

  40. Slide 40: Annual General Meeting - Donald A. Guloien, CEO

    Annual General Meeting Donald A. Guloien President & Chief Executive Officer May 5, 2011

  41. Slide 41: Highlights of 2010; The Way Forward; Accounting and Regulatory Update

    1. Highlights of 2010 2. The Way Forward 3. Accounting and Regulatory Update 2

  42. Slide 42: Strategic Priorities

    Strategic Priorities 1. Grow & Diversify Our Business 2. Maintain Strong Capital & Financial Strength 3. Manage Risk 4. Improve Return on Equity 5. Continue to Offer a Quality Value Proposition for Our Clients 3

  43. Slide 43: Growing and Diversifying Our Business

    Growing and Diversifying Our Business  Sales1 of insurance products targeted for growth were $2 billion – an increase of 20 per cent  Sales of wealth management products targeted for growth2 were $27 billion – an increase of 23 per cent 1 Sales is a non-GAAP measure. See “Note to Users – Performan

  44. Slide 44: Growing and Diversifying Our Business

    Growing and Diversifying Our Business Canada  Record sales in individual life and travel insurance  Individual insurance sales Asia C$304 million - up 12 per cent  Record mutual funds sales  Record insurance sales1 of of C$1.4 billion US$1 billion - up 43%2  Wealth products targeted for growth

  45. Slide 45: Investment Capability

    Investment Capability Source and manage assets C$199* billion General for Company’s Assets Under Account General Account. Management Manulife Provides a broad range of asset C$182** billion Asset classes to institutional Assets Under investors and Management investment funds. Management * As at Dece

  46. Slide 46: Maintain Strong Capital and Financial Strength

    Maintain Strong Capital and Financial Strength  Capital position is robust  MCCSR Ratio  249 per cent at year-end and 243 per cent at Q1 2011 MCCSR – Minimum Continuing Capital and Surplus Requirements for The Manufacturers Life Insurance Company 7

  47. Slide 47: Manage Risk

    Manage Risk  Significant progress on hedging  Timely and shareholder- friendly way 8

  48. Slide 48: Ahead of Plan in Reducing Equity Market and Interest Rate Sensitivity

    Ahead of Plan in Reducing Equity Market and Interest Rate Sensitivity Earnings Sensitivity to Equity Markets1 Earnings Sensitivity to Interest Rates2 (C$ millions) (C$ millions) Assuming 80% hedge Sensitivity excluding (1,290) asset offset AFS bond offset (2,200) Assuming 100% Sensitivity including

  49. Slide 49: Improve Return on Equity

    Improve Return on Equity Improved and  Rebalancing product mix more stable returns for  Re-pricing products shareholders  De-risking measures 10

  50. Slide 50: Quality Value Proposition for Clients

    Quality Value Proposition for Clients  Numerous customer service awards  Strong new and renewal premiums  54 four- and five-star Morningstar* rated funds globally – a record – the most we have ever held  Funds under management1 – an all-time record of $478 billion at Q1 2011 1 Non-GAAP measures.

  51. Slide 51: The Way Forward

    The Way Forward Grow earnings1 to $4 billion by 2015 1 Net income excluding the direct impact of equity markets and interest rates. Does not constitute guidance. See “Key Planning Assumptions and Uncertainties” on page 72 of our 2010 Annual Report and “Caution regarding forward-looking statements” a

  52. Slide 52: The Way Forward

    The Way Forward  Accelerate growth in Asian businesses  Significant growth in wealth management businesses 1 Does not constitute guidance. See “Key Planning Assumptions and Uncertainties” on page 72 of our 2010 Annual Report and “Caution regarding forward-looking statements” above. 13

  53. Slide 53: Q1 Sales Increases in Wealth Management

    Q1 Sales1 Increases in Wealth Management 68% Mutual Fund Sales 42%2 119%2 Sales of Wealth Products Targeted for Growth 1 Non-GAAP measure. See “Note to Users – Performance and Non-GAAP Measures” above. 2 Sales growth stated on a constant currency basis. 14

  54. Slide 54: The Way Forward

    The Way Forward  Accelerate growth in Asian businesses  Significant growth in wealth management businesses  Improve return on equity to 13%1 by 2015  Shift capital to higher return products  Shift business mix to more fee and spread-oriented products  Continue to hedge or reinsure 1 Does not c

  55. Slide 55: Well Diversified and Operating in the Three Largest Economies

    Well Diversified and Operating in the Three Largest Economies and Four of the Top 10 Source: Wall Street Journal, International Monetary Fund 16

  56. Slide 56: Accounting & Regulatory Update

    Accounting & Regulatory Update 17

  57. Slide 57: Turn the storms of adversity into happiness

    My Japanese Friends, The whole world has watched as Japan has dealt with the earthquake and tsunami with grace. And you have shown how spirit can overcome adversity. As Craig Bromley, President of Manulife Japan, has said, “Turn the storms of adversity into happiness by facing them with all your mig

  58. Slide 58: Our Vision

    Our 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 19

  59. Slide 59: Thank You

    Thank You Mf! Manulife Financial | For your future” M Manulife Financial strong reliable trustworthy forward-thinking | For your future~

  60. Slide 60: Manulife Financial Corporation Annual Meeting

    Manulife Financial Corporation The Manufacturers Life Insurance Company Annual Meeting May 5, 2011

  61. Slide 61: Voting Results

    Voting Results Manulife Financial Corporation The Manufacturers Life Insurance Company

  62. Slide 62: Termination of Meeting

    Termination of Meeting Manulife Financial Corporation The Manufacturers Life Insurance Company

  63. Slide 63: Question and Answer Period

    Question and Answer Period Manulife Financial Corporation The Manufacturers Life Insurance Company

  64. Slide 64: Manulife Financial Corporation Annual Meeting

    Manulife Financial Corporation The Manufacturers Life Insurance Company Annual Meeting May 5, 2011

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