This earnings news release for Manulife Financial Corporation (“Manulife” or the “Company”) should be read in
conjunction with the Company’s Management’s Discussion & Analysis (“MD&A”) and Consolidated Financial Statements for the year ended December 31, 2020, prepared in accordance with International Financial Reporting Standards (“IFRS”)
as issued by the International Accounting Standards Board (“IASB”), which are available on our website at www.manulife.com/en/investors/results-and-reports. Additional information relating to
the Company is available on the SEDAR website at http://www.sedar.com and on the U.S. Securities and Exchange Commission's (“SEC”) website at http://www.sec.gov.
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◾
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Net income attributed to shareholders of $5.9 billion in 2020, up $0.3 billion from 2019, and $1.8 billion in 4Q20, up $0.6 billion from the fourth quarter
of 2019 (“4Q19”)
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◾
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Core earnings1 of $5.5 billion in 2020, down $0.5 billion from 2019, and $1.5 billion in 4Q20, in line with 4Q19
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◾
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Strong LICAT ratio2 of 149%
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◾
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Core ROE1 of 10.9% in 2020 and 11.6% in 4Q20, and ROE of 11.6% in 2020 and 14.1% in 4Q20
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◾
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NBV1 of $1.8 billion in 2020, down 13%3 from 2019, and $489 million in 4Q20, down 7% from 4Q19
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◾
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APE sales1 of $5.6 billion in 2020, down 8% from 2019, and $1.4 billion in 4Q20, down 5% from 4Q19
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◾
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Global WAM net inflows1 of $8.9 billion in 2020 compared with net outflows of $0.9 billion in 2019 and net inflows of $2.8 billion in 4Q20
compared with net inflows of $4.9 billion in 4Q19
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◾
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As of December 31, 2020, delivered a cumulative reduction in pre-tax annual general expenses of $1.0 billion, achieving our medium-term target two years
ahead of schedule
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1 |
Core earnings, core return on common shareholders’ equity (“Core ROE”), new business value (“NBV”), annualized premium equivalent (“APE”) sales, and net flows are non-GAAP measures.
See “Performance and Non-GAAP Measures” below and in our 2020 Management’s Discussion and Analysis (“2020 MD&A”) for additional information.
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2 |
Life Insurance Capital Adequacy Test (“LICAT”) ratio of The Manufacturers Life Insurance Company (“MLI”).
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3 |
All percentage growth / declines in financial metrics in this news release are reported on a constant exchange rate basis. Constant exchange rate basis excludes the impact of currency
fluctuations and is a non-GAAP measure. See “Performance and Non-GAAP Measures” below and in our 2020 MD&A for additional information.
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1 |
Our strategic priorities include Portfolio Optimization, Expense Efficiency, Accelerate Growth, Digital Customer Leader and High Performing Team. For more information, please refer to
“Strategic priorities progress update” in our 2020 MD&A.
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2 |
This item is a non-GAAP measure. See “Performance and Non-GAAP Measures” below and in our 2020 MD&A for additional information.
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3 |
See “Caution regarding forward-looking statements” below.
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4 |
Represents the percentage of 2019 APE sales that are currently available for sale via virtual face-to-face methods (applies to Asia, Canada and U.S.).
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5 |
Reflects Global WAM’s AUMA available to new and existing retail and retirement customers.
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6 |
Virtual face-to-face, includes digital as well as non-digital solutions.
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7 |
Pending regulatory approval.
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Quarterly Results
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Full Year Results
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|||||||||||||||
($ millions, unless otherwise stated)
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4Q20
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4Q19
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2020
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2019
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||||||||||||
Profitability:
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||||||||||||||||
Net income attributed to shareholders
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$
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1,780
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$
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1,228
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$
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5,871
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$
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5,602
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||||||||
Core earnings(1)
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$
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1,474
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$
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1,477
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$
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5,516
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$
|
6,004
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||||||||
Diluted earnings per common share ($)
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$
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0.89
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$
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0.61
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$
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2.93
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$
|
2.77
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||||||||
Diluted core earnings per common share ($)(1)
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$
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0.74
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$
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0.73
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$
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2.75
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$
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2.97
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||||||||
Return on common shareholders’ equity (“ROE”)
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14.1
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%
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10.3
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%
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11.6
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%
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12.2
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%
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||||||||
Core ROE(1)
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11.6
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%
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12.5
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%
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10.9
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%
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13.1
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%
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||||||||
Expense efficiency ratio(1)
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52.7
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%
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54.2
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%
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52.9
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%
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52.0
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%
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||||||||
Performance:
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||||||||||||||||
Asia new business value
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$
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368
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$
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390
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$
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1,387
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$
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1,595
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||||||||
Canada new business value
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$
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65
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$
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59
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$
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255
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$
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237
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||||||||
U.S. new business value
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$
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56
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$
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77
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$
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160
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$
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218
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||||||||
Total new business value(1)
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$
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489
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$
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526
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$
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1,802
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$
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2,050
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||||||||
Asia APE sales
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$
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996
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$
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975
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$
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3,869
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$
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4,278
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||||||||
Canada APE sales
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$
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245
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$
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271
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$
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1,148
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$
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1,057
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||||||||
U.S. APE sales
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$
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178
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$
|
249
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$
|
609
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$
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702
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||||||||
Total APE sales(1)
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$
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1,419
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$
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1,495
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$
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5,626
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$
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6,037
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||||||||
Global Wealth and Asset Management net flows ($ billions)(1)
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$
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2.8
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$
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4.9
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$
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8.9
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$
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(0.9
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)
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|||||||
Global Wealth and Asset Management gross flows ($ billions)(1)
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$
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31.5
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$
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32.9
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$
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130.2
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$
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114.2
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||||||||
Global Wealth and Asset Management assets under management and administration ($
billions)(1)
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$
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753.6
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$
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681.4
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$
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753.6
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$
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681.4
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||||||||
Financial Strength:
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||||||||||||||||
MLI’s LICAT ratio
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149
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%
|
140
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%
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149
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%
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140
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%
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||||||||
Financial leverage ratio
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26.6
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%
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25.1
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%
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26.6
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%
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25.1
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%
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||||||||
Book value per common share ($)
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$
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25.00
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$
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23.25
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$
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25.00
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$
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23.25
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||||||||
Book value per common share excluding AOCI ($)
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$
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21.74
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$
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19.94
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$
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21.74
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$
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19.94
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(1) |
This item is a non-GAAP measure. See “Performance and Non-GAAP Measures” below and in our 2020 MD&A for additional information.
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1 |
This item is a non-GAAP measure. See “Performance and Non-GAAP measures” below and in our 2020 MD&A for additional information.
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1 |
Asia Other excludes Hong Kong and Japan.
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Media Inquiries
Brooke Tucker-Reid
(647) 528-9601
brooke_tucker-reid@manulife.com
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Investor Relations
Adrienne O’Neill
(416) 926-6997
adrienne_oneill@manulife.com
|
1 |
This item is a non-GAAP measure. See “Performance and Non-GAAP measures” below and in our 2020 MD&A for additional information.
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Quarterly Results
|
Full Year Results
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|||||||||||||||||||
($ millions)
|
4Q20
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3Q20
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4Q19
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2020
|
2019
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|||||||||||||||
Core earnings(1)
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||||||||||||||||||||
Global Wealth and Asset Management
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$
|
304
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$
|
308
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$
|
265
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$
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1,100
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$
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1,021
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||||||||||
Asia
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571
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559
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494
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2,110
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2,005
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|||||||||||||||
Canada
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316
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279
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288
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1,174
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1,201
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|||||||||||||||
U.S.
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479
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498
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489
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1,995
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1,876
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|||||||||||||||
Corporate and Other (excluding core investment gains)
|
(196
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)
|
(191
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)
|
(159
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)
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(863
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)
|
(499
|
)
|
||||||||||
Core investment gains(1)
|
-
|
-
|
100
|
-
|
400
|
|||||||||||||||
Total core earnings
|
$
|
1,474
|
$
|
1,453
|
$
|
1,477
|
$
|
5,516
|
$
|
6,004
|
||||||||||
Items excluded from core earnings:
Investment-related experience outside of core earnings
|
585
|
147
|
182
|
(792
|
)
|
366
|
||||||||||||||
Direct impact of equity markets and interest rates and variable annuity guarantee
liabilities
|
(323
|
)
|
390
|
(389
|
)
|
932
|
(778
|
)
|
||||||||||||
Change in actuarial methods and assumptions
|
-
|
(198
|
)
|
-
|
(198
|
)
|
(21
|
)
|
||||||||||||
Reinsurance transactions
|
44
|
276
|
(34
|
)
|
341
|
81
|
||||||||||||||
Tax-related items and other
|
-
|
-
|
(8
|
)
|
72
|
(50
|
)
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|||||||||||||
Net income attributed to shareholders
|
$
|
1,780
|
$
|
2,068
|
$
|
1,228
|
$
|
5,871
|
$
|
5,602
|
(1)
|
This item is a non-GAAP measure. See “Performance and Non-GAAP Measures” below and in our 2020 MD&A for additional
information.
|