Manulife Financial Corporation · TSX:MFC
Manulife Financial — Merger or Acquisition (November 2021)
12 slides from Manulife Financial's merger presentation, Nov 15, 2021
Slide 1: Manulife Legacy U.S. VA Reinsurance Transaction
Manulife Legacy U.S. VA Reinsurance Transaction Reducing Risk, Releasing Capital, and Unlocking Value November 15, 2021 1
Slide 2: Caution regarding forward-looking statements
Caution regarding forward-looking statements From time to time, Manulife makes written and/or oral forward-looking statements, including in this document. In addition, of competition and consolidation; our ability to market and distribute products through current and future distribution our represen
Slide 3: Reinsurance transaction unlocks value for shareholders, while reducing risk
Reinsurance transaction unlocks value for shareholders, while reducing risk Transaction will result in approximately $2.0 billion of expected capital release, immediately unlocking value for shareholders as we intend to increase our proposed share buyback program1 up to 5%, and deploy a significant
Slide 4: Value for shareholders
Value for shareholders Expect $2.0 billion capital release and intend to increase our proposed share buyback1 up to 5%, to neutralize EPS impact Overview of capital release Core EPS5 impact (C$ billions) (C$ per share) 2.4 3.15 0.10 3.15 (0.10) • Book value accretive with one-time after-tax gain of
Slide 5: Reduce risk profile
Reduce risk profile Significantly reduces risk and size of legacy block U.S. VA net amount at risk U.S. VA guarantee value Overall VA equity sensitivity1 (C$ billion) (C$ billions) (C$ billion) more than 75% -78% -54% 1.9 32.6 2.7 1.2 0.5 7.2 Pre-transaction Post-transaction Pre-transaction Post-tra
Slide 6: Positive book value impact
Positive book value impact Attractive deal multiple of 10.2x core earnings and positive book value impact Foregone earnings & capital release Book value per share (C$ billions) (C$) 10.2x multiple 2.0 25.78 0.38 26.16 • Transaction results in approximately $200 million in foregone earnings, which is
Slide 7: Significant protection
Significant protection Deal structure provides full risk transfer with significant protection Manulife company Operating company Holding company The Manufacturers Venerable Trust overcollateralization with daily top-ups to Life Insurance Company Holdings, Inc. a required balance and defined investme
Slide 8: Appendix
Appendix • Transaction summary 8
Slide 9: Transaction summary
Transaction summary (C$, unless otherwise stated) • Upon closing, John Hancock Life Insurance Company (U.S.A.) (“John Hancock”), a subsidiary of Manulife will reinsure with Corporate Solutions Life Reinsurance Company, a subsidiary of Venerable, a significant portion of our U.S. VA block, consisting
Slide 10: Performance and non-GAAP financial measures
Performance and non-GAAP financial measures Manulife uses 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 if it is presented other than in accordance with generally accepted accounting p
Slide 11: Investor Relations contact information
Investor Relations Hung Ko Louise Scott VP, Group Investor Relations AVP, Investor Relations contact information hung_ko@manulife.com louise_scott@manulife.com 416 806 9921 416 420 3440 200 Bloor Street East 200 Bloor Street East Toronto, ON M4W 1E5 Toronto, ON M4W 1E5 Eileen Tam Derek Theobalds Hea
Slide 12: Manulife
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