Manulife Financial Corporation · TSX:MFC
Manulife Financial — Investor Day (May 2001)
24 slides from Manulife Financial's investor day presentation, May 24, 2001
Slide 1: Asian Operations
Asian Operations Vic Apps Executive Vice President & General Manager, Asia May 24, 2001
Slide 2: A Dominant Asian Presence
a D ominant Asian Presence
Slide 3: Strong Market Franchises
Strong Market Franchises Hong Kong #2 life insurance (12%) #2 pensions (22%) Indonesia #4 life insurance (7%) Philippines #4 life insurance (5%) Shanghai #5 life insurance (2%) Singapore #10 life insurance (2%) Taiwan Niche player Vietnam #3 life insurance (8%)
Slide 4: Sales Growth: Hong Kong
Sales Growth Hong Kong Annualized New Regular Premiums $ mlns 700 600 500 400 300 200 100 0 1998 1999 2000 Individual Pensions GLH MFD
Slide 5: Sales Growth: Asia ex Hong Kong & Japan
Sales Growth Asia ex Hong Kong & Japan Annualized New Regular Premiums $ mlns 100 75 50 25 0 1998 1999 2000 Indonesia Vietnam Shanghai Singapore Philippines Taiwan
Slide 6: Net Income
Net Income Asia $mlns 200 180 160 140 120 100 80 60 40 20 0 1996 1997 1998 1999 2000
Slide 7: Key Drivers of Growth
Key Drivers of Growth • Significant agency expansion – Expect tripling of agency force over next five years • Superior customer value propositions • New markets and businesses
Slide 8: Distribution Dynamics
Distribution Dynamics • Career agency operation • Fast growth model used in new operations • Broadening product portfolio and developing field technology to transform traditional agent into financial planner • Very limited use of alternate channels
Slide 9: Agent Recruitment and Retention
Agent Recruitment and Retention • Agent training is a priority • Developing agents into Financial Planners • Provide field technology to enhance productivity • In HK, # of agents at 2,300 is fewer than 1/3 of market leader but MFC produced half of the business
Slide 10: Agency Expansion
Agency Expansion 1999 2000 Hong Kong 2,280 2,231 Indonesia 1,795 2,406 Philippines 382 1,041 Shanghai 1,295 1,950 Singapore 263 274 Taiwan 160 220 Vietnam 234 1,742 Total 6,409 9,864
Slide 11: Strong Growth in Agency Force
Strong Growth in Agency Force 12,000 10,000 8,000 6,000 4,000 2,000 0 1996 1997 1998 1999 2000 Indonesia Hong Kong Shanghai Vietnam Philippines Singapore Taiwan
Slide 12: Customer Focus
Customer Focus • Aim is to provide agents with as wide a range of products as possible, subject to local regulations – Regional alliances with suppliers • Development of client data file – Supports cross-selling and improved customer service
Slide 13: Current Product Profile
Current Product Profile • Traditional permanent individual life insurance dominant in all territories • UVL – Hong Kong, Singapore, Indonesia, Taiwan, Shanghai • Group pensions – Hong Kong, Indonesia • Group life & health – Hong Kong, Indonesia • General insurance – Hong Kong • Mutual funds – Hong K
Slide 14: Product Initiatives
Product Initiatives • First par product in Shanghai • First unit-linked product in Taiwan • Entry into Philippines pension & education market • Packaged products in Hong Kong to target specific markets
Slide 15: Mutual Fund Operations
Mutual Fund Operations • MFD in Hong Kong – AUM grew over 8 times to US $564M at Q1 2001 from establishment in December 1997 – Number of accounts has tripled in the same period – Largest sales force licensed to sell mutual funds • MAMI in Indonesia • Asian investment office
Slide 16: Mutual Fund Expansion
Mutual Fund Expansion • Industry still in early stages of development • Emerging industry in China, Philippines and Vietnam • Monitoring developments
Slide 17: Territorial Expansion
Territorial Expansion • Development opportunities in new countries • Acquisition opportunities in existing territories • Expansion opportunities in existing territories
Slide 18: Increased Presence in China
Increased Presence in China • China expansion is a huge opportunity • Hope to start Guangzhou Branch in second half of 2001 • W.T.O. accession will lead to additional branches in 2002 and beyond • Manulife is VERY well positioned in China
Slide 19: Rapid Growth in Vietnam
Rapid Growth in Vietnam • First mover advantage – No additional foreign entrants in 2001 • Comprehensive product range compared to peers • Expanding sales offices in new cities • Building local brand awareness • Expect to break-even by end of 2001 well ahead of target
Slide 20: Hong Kong
Hong Kong • Product development focused on exploiting new market segments – Juvenile and pre-retirement markets • Mandatory Provident Fund – Cross-sell other products to MPF employers and employees – Consolidation in near term • Leveraging new Asian Investment Office to boost pension fund and mutual
Slide 21: Indonesia
Indonesia • Growth strong despite political and economic instability • Competition from new foreign entrants • Winning our long battle on ownership
Slide 22: Philippines
Philippines • Fast agency growth is major focus • Broaden P&E product portfolio • Manulife well-positioned for expected industry shift to unit-linked products
Slide 23: Looking Ahead: Singapore & Taiwan
Looking Ahead Singapore & Taiwan • Singapore – Focus on investment linked products – Bancassurance – Changes in life insurance industry • Taiwan – Rebuilding franchise and agency force – Product innovator
Slide 24: A Global Vision
a global [7 Manulife Financial