Manulife Financial Corporation · TSX:MFC
Manulife Financial — Investor Day (June 2024)
29 slides from Manulife Financial's investor day presentation, Jun 26, 2024
Slide 1: Reshaping Customer Experience to Accelerate Performance
Reshaping Customer Experience to Accelerate Performance Investor Day 2024: Digital, Customer Leadership in the Era of Generative AI Karen Leggett, Chief Marketing Officer Jodie Wallis, Chief Analytics Officer June 26, 2024
Slide 2: Looking back: Top takeaways
• Digital, customer leader (“DCL”) Looking back: accelerated execution program has Top takeaways delivered significant value and transformed our cost base • Customer experience NPS leader across the majority of our markets • Driving faster and more innovative outcomes through our material investment
Slide 3: DCL has transformed our business
DCL has transformed our business Position in 2018 Position today Lagging our peers in customer experience NPS leader in 11 of 16 business lines, up from 41 Low straight-through-processing (“STP”) 85% global STP, up from 68% Limited digital adoption 69% servicing volume fully digital Robust global da
Slide 4: We are generating value at an accelerated pace
We are generating value at an accelerated pace Global DCL programmatic approach embedded in each business with 2023-2025 roadmaps1 $185M benefits delivered in 2023 $500M forecasted benefits in 2024 4 Note: See “Caution regarding forward-looking statements” below. All footnotes are on slide 28.
Slide 5: Transformed cost base through digitization and automation
Transformed cost Reduced operating expenses base through Total Company STP digitization and + 17 pps automation 85% • Eliminated manual work 68% by digitizing and automating highest volume interactions 2018 1Q24 • Now focusing on automating high-cost, Canada1 Asia1 Global WAM1 U.S.1 less frequent in
Slide 6: Majority of high-volume customer interactions fully digitally enabled
Majority of high-volume customer interactions fully digitally enabled Digital servicing interactions (%, April 30, 2024 vs. 20221) Global WAM Asia • 69% of global servicing volume +56 pps +33 pps fully digital 73 53 • Enables revenue and cost 17 20 reduction opportunities through personalized custom
Slide 7: Leading mobile app experiences
Leading mobile app experiences Average mobile app rating (stars out of 5)1 • Laser focus on mobile Canada Asia Global WAM U.S. experience to reach +42 bps best-in-class app +105 bps +16 bps +66 bps 4.75 ratings 4.51 4.48 4.50 • Leading peer average 4.35 4.33 in every segment 3.82 • Accelerating depl
Slide 8: Innovative experiences driving customer engagement and satisfaction
Innovative experiences driving customer engagement and satisfaction Digital health leader Group benefits claims Wealth + Insurance experience • Improves customer engagement from transformation • Fully integrated wealth management and ~1x per year to 24x per month • Fully transparent claims status in
Slide 9: Cloud investments driving speed, agility, efficiency and innovation
Cloud investments driving speed, agility, efficiency and innovation • Material investments in our global Scalable infrastructure1 data and analytics platform have created a ‘Jetstream,’ accelerating AI and GenAI deployments 100% (0% in 2018) • Access to compute on demand Data lakes and AI models on
Slide 10: Accelerating AI deployments to outpace peers
Accelerating AI deployments to outpace peers • Intelligent customer data platform and VOICE – foundational data assets for Leading edge AI use cases1 Accelerating value 103 NPS and personalization, globally scaling • Comprehensive view of all customer interactions and transactions, Deployed AI model
Slide 11: Delivering a leading customer experience in the majority of our business lines
Delivering a leading Leading customer customer experience in experience the majority of our Relationship NPS (“rNPS”) 11 of 16 business lines business lines +22 leading peers in rNPS1 23 • Integrated NPS ownership +2 business lines 2nd highest across Manulife, with real time rNPS analytics to surfac
Slide 12: Looking back: Summary
Looking back: • Delivered significant value to date Summary • Leading in customer experience • Investments in cloud, data and AI accelerating more innovative outcomes • Market-leading digital capabilities driving stronger customer engagement • High confidence in future acceleration and performance 1
Slide 13: DCL will continue to drive business value
DCL will continue to drive business value 13
Slide 14: Raising the bar in value delivered, customer experience and operational excellence
Raising the bar in value delivered, customer experience and operational excellence DCL benefits1 Reducing operating expenses (C$ millions) $1.5B over 3 years 850 88% STP 2025 target 500 Leading customer experience 37 rNPS 185 2023 2024F 2025F 2027 target 14 Note: See “Caution regarding forward-looki
Slide 15: 2025 financial benefit drivers span a diversity of leading-edge capabilities
2025 financial benefit drivers span a diversity of leading-edge capabilities Leading in GenAI to deliver expense and AI and data revenue benefits, doubling deployments Digital as dominant channel for sales and Digital adoption service interactions Automation of end-to-end processes to Automation and
Slide 16: Generative AI Lab
Generative AI Lab 16
Slide 17: Generative AI drives productivity improvements and unlocks growth
Generative AI • Deep AI talent pool drives • Doubled value enabled by analytics productivity over 3 years improvements and unlocks • Over 240 GenAI use cases identified; 7 deployed into production growth • Embedding GenAI as an organizational capability • Structured program to capture GenAI benefits
Slide 18: Delivering value from AI solutions at scale
Delivering value from AI solutions at scale Growing our AI footprint1 Expanding use case breadth (% solution type) Models in production 5 6 19 0 2 69 in 2021 8 2 From 5 12 Underwriting & product Inforce management & portfolio optimization Proactive health management 20 Operations efficiency to 103 i
Slide 19: We have the ingredients for success to build and sustain leadership in GenAI
We have the ingredients for success to build and sustain leadership in GenAI • Leadership from the top – to set the priority • Clear principles about our use of AI – to align with our values • Data and AI infrastructure – to create scale and value • Culture change mindset – to maximize adoption • Cr
Slide 20: Deployed 7 GenAI use cases into production
Deployed 7 GenAI Business use cases Employee productivity use cases into • Sales agent enablement with • ChatMFC production personalized scripts • Microsoft 365 CoPilot • Complex contract lookup for agents • Software code generation and testing • 16+ additional use cases • Marketing content generati
Slide 21: GenAI solutions delivering better customer experience and greater efficiency
GenAI solutions delivering better customer experience and greater efficiency Example: • U.S. Annuities receives ~360,000 calls per year • Customer service agents had to synthesize information from multiple systems and documents • With GenAI, agents can now answer questions faster • Increases speed o
Slide 22: Embedding GenAI as an organizational capability and democratizing use
Embedding GenAI as an organizational capability and democratizing use Targeted learning paths for all Innovation and creativity Program of adoption tactics employees • Feedback loops, prompt-a- • Business change champions • Self-service learning thons • Senior executive accountability opportunities
Slide 23: "Forward thinking and immediately applicable to our work"
Singapore Advisor testimonial for Sales Agent GenAI use case: “Forward thinking and immediately applicable to our work” Gregory Charles Lawrence Financial Services Consultant, Summit Planners Xchange Manulife Financial Advisors (Singapore) Pte. Ltd 23
Slide 24: Generative AI Lab
Generative AI Lab 24
Slide 25: Looking ahead: Summary
Looking ahead: • Well-positioned to lead in GenAI Summary • Forecasting a 3x return from 2023- 2025 DCL investments realized over a 5-year period • Raising the bar for leadership in customer experience and operational excellence • Continuing programmatic approach with 2026-2028 DCL roadmaps • Relent
Slide 26: Raising the Bar
‘'' Manulife Raising the Bar
Slide 27: Appendix
Appendix • Footnotes • Caution regarding forward-looking statements 27
Slide 28: Footnotes
Footnotes Slide Footnote 1 Based on studies conducted quarterly by Ipsos, a global market research company. As of 4Q23. 3 1 Includes expense saves, growth absorption, revenue benefits (margin businesses) and new business contractual service margin (“CSM”) growth (insurance). 4 1 All segment STP scor
Slide 29: Caution regarding forward-looking statements
Caution regarding Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially counterparties to meet their obligations; the availability, affordability and adequacy of reinsurance; legal and regulatory proceedings, from those expr