TSX/NYSE/PSE: MFC SEHK: 945 C$ unless otherwise stated
TORONTO, Feb. 19, 2025 /PRNewswire/ – Manulife Financial Corporation (“Manulife” or the “Company”) reported banner full year and fourth quarter results for the period ended December 31, 2024, with record core earnings, 30%+ increases across top-line business metrics1, double-digit core EPS2 growth for the full year, as well as declaring a common share dividend increase of 10%.
Key highlights for full year 2024 and the fourth quarter (“4Q24”) include:
“2024 was a banner year for Manulife on many fronts and we finished the year with very strong results. We delivered record insurance new business results for the full year, including 30%+ increases year-over-year across APE sales7, new business CSM4 and new business value7. Asia continued to lead with substantial top-line growth and a 27% increase in core earnings. Global WAM ended the year with over $13 billion of net inflows7, a 220 basis point increase in core EBITDA margin2 and 30% core earnings growth.”
“We continued to build on our momentum to deliver for shareholders and customers. We closed the largest LTC reinsurance transaction in the industry and announced a second LTC risk transfer deal within 12 months. We also made significant progress towards our digital, customer leadership ambition, achieving a record high Net Promoter Score and generating over $600 million of benefits9 from our initiatives globally in 2024. We have created a robust foundation for sustained growth. I am confident about the future of Manulife and the value that we will continue to generate for our shareholders.”
— Roy Gori, Manulife President & Chief Executive Officer
“We continued to make progress against our targets announced at Investor Day. Our core ROE increased to 16.4% and core EPS grew 11%, despite the impact of Global Minimum Tax. Expense efficiency ratio2 improved further and ended at 44.8% for the full year. We remitted $7.0 billion in 2024, reflecting our strong cash generating capability across our global operations and benefiting from our capital optimization initiatives. We returned $6.1 billion of capital to shareholders, including buying back 4.6% of outstanding common shares. As announced today, the Board approved a 10% increase in the common share dividend, and we are launching a new NCIB program to repurchase up to 3% of our outstanding common shares.”
— Colin Simpson, Manulife Chief Financial Officer
Results at a Glance
Quarterly Results
Full Year Results
($ millions, unless otherwise stated)
4Q24
4Q23
Change4,7
2024
2023
Change
Net Income attributed to shareholders
$ 1,638
$ 1,659
(3) %
$ 5,385
$ 5,103
5 %
Core Earnings
$ 1,907
$ 1,773
6 %
$ 7,226
$ 6,684
8 %
EPS ($)
$ 0.88
$ 0.86
0 %
$ 2.84
$ 2.61
8 %
Core EPS ($)
$ 1.03
$ 0.92
9 %
$ 3.87
$ 3.47
11 %
ROE
14.0 %
15.3 %
-1.3 pps
12.0 %
11.9 %
0.1 pps
Core ROE
16.5 %
16.4 %
0.1 pps
16.4 %
15.9 %
0.5 pps
Book value per common share ($)
$ 25.63
$ 22.36
15 %
$ 25.63
$ 22.36
15 %
Adjusted BV per common share ($)2
$ 37.02
$ 32.19
15 %
$ 37.02
$ 32.19
15 %
Financial leverage ratio (%)2
23.7 %
24.3 %
-0.6 pps
23.7 %
24.3 %
-0.6 pps
APE sales
$ 2,248
$ 1,550
42 %
$ 8,385
$ 6,440
30 %
New business CSM
$ 842
$ 626
32 %
$ 2,887
$ 2,167
32 %
NBV
$ 842
$ 630
31 %
$ 3,077
$ 2,324
32 %
Global WAM net flows ($ billions)
$ 1.2
$ (1.3)
–
$ 13.3
$ 4.5
196 %
Results by Segment
Quarterly Results
Full Year Results
($ millions, unless otherwise stated)
4Q24
4Q23
Change7
2024
2023
Change
Asia (US$)
Net Income attributed to shareholders
$ 417
$ 452
(8) %
$ 1,717
$ 995
71 %
Core Earnings
477
414
16 %
1,890
1,518
27 %
APE sales
1,187
731
63 %
4,429
3,313
36 %
New Business CSM
419
303
38 %
1,567
1,148
38 %
NBV
418
306
37 %
1,612
1,206
35 %
Canada
Net Income attributed to shareholders
$ 439
$ 365
20 %
$ 1,221
$ 1,191
3 %
Core Earnings
390
352
11 %
1,568
1,487
5 %
APE sales
376
363
4 %
1,689
1,409
20 %
New Business CSM
116
70
66 %
357
224
59 %
NBV
168
139
21 %
627
490
28 %
U.S. (US$)
Net Income attributed to shareholders
$ 73
$ 146
(50) %
$ 96
$ 473
(80) %
Core Earnings
294
349
(16) %
1,234
1,304
(5) %
APE sales
151
141
7 %
454
416
9 %
New Business CSM
100
105
(5) %
278
292
(5) %
NBV
63
54
17 %
175
153
14 %
Global WAM
Net Income attributed to shareholders
$ 384
$ 365
3 %
$ 1,597
$ 1,297
22 %
Core Earnings
481
353
34 %
1,736
1,321
30 %
Gross flows ($ billions)7
43.5
35.1
21 %
171.7
143.4
19 %
Average AUMA ($ billions)7
1,015
817
21 %
946
813
15 %
Core EBITDA margin
28.6 %
25.7 %
290 bps
27.1 %
24.9 %
220 bps
Strategic Highlights
We continued to transform our portfolio and accelerate new business growth through expanded market offerings and enhanced distribution capabilities
During 2024, we closed the largest LTC reinsurance transaction in the industry and the largest universal life reinsurance transaction in Canada. We also entered into an agreement in 4Q24 for a second LTC reinsurance transaction in less than 12 months on a younger LTC block, further validating the prudence of our reserves and assumptions. These transactions also further transformed our business profile to higher return and lower risk.
In Asia, we expanded Manulife Pro, our proprietary proposition for top-tier agents, to Indonesia, Japan and Hong Kong. The proposition provides select agents with differentiated resources and tools, including dedicated underwriting support and enhanced customer engagement services with access to customer leads. This initiative contributed to improved agent productivity, demonstrated by our 23% year-over-year growth in agency APE sales in 2024. With this expansion, Manulife Pro is now available in five of our markets10.
In addition, we further addressed the complex and evolving financial needs of high-net-worth individuals through a focus on innovative customer solutions. This includes the launch of two new products that cater to the protection, legacy planning and wealth management needs of high-net-worth customers.
In Global WAM, we completed the acquisition of CQS, a U.K.-based multi-sector alternative credit manager, which positively contributed to Global WAM net flows and core earnings in 2024. We have leveraged these expanded investment capabilities to launch the John Hancock Multi Asset Credit Fund in U.S. Retail. This fund is a strong addition to our growing lineup of liquid and semi-liquid alternative offerings which are part of our larger credit franchise.
In Canada, we introduced a guaranteed issue life product, designed to provide accessible life insurance coverage with guaranteed fixed premiums for a wide range of individuals seeking straightforward and reliable life insurance coverage. Also, we refreshed our suite of segregated fund options with a new product that features a simplified, all-inclusive fee structure and offers Canadians an investment solution to help with their estate planning needs.
In the U.S., we entered into a strategic distribution collaboration with Annexus — one of the nation’s leading independent retirement planning product design and distribution companies — to expand our portfolio of indexed account offerings and reach a wider market with our Protection Indexed Universal Life solution.
We have made significant progress on our ambition to be the most digital, customer-centric company in our industry
We are driving value from generative AI by rapidly scaling use cases across our organization. We had 27 use cases in production, with another 32 in development at the end of 2024. Our continued investment in foundational capabilities has put us in a strong position, and enabled faster and easier execution in deploying AI-based solutions. We are able to quickly scale use cases, enhancing value for our customers and our business.
In Asia, we strengthened agent-customer interactions through the launch of an innovative generative AI sales tool in both Singapore and Japan. It enables our agents to automatically create personalized engagement strategies to offer customers the right solutions at the right time based on their needs, preferences, demographic data and transaction histories.
In Global WAM, we advanced and broadened our wealth planning and advice business with the implementation of a new advisor retail wealth platform and an AI-powered planning tool in Canada, and a new AI-powered sales enablement app in Asia. These tools improve productivity for advisors and agents and deliver an enhanced digital experience for investors.
In Canada, we entered into a multi-year loyalty rewards partnership agreement with Aeroplan. We launched the Aeroplan Rewards and Challenges program in the Manulife mobile app that enables eligible group benefits plan members to earn reward points by completing programs and benefits-related activities to encourage health and well-being.
In the U.S., we continued to modernize the end-to-end purchase and delivery process by introducing a term solution with digital policy delivery, payment capabilities, and easy registration process to the Life Customer Storefront as well as Vitality’s website.
Record core earnings for full year and 4Q24 reflecting strong growth in our highest potential businesses11
Core earnings of $7.2 billion in 2024, up 8% from 2023, and $1.9 billion in 4Q24, up 6% from 4Q23
The increase in 2024 reflected strong business growth led by Global WAM and Asia, and a lower net charge in the provision for Expected Credit Loss, which more than offset the impacts of GMT and reinsurance transactions that were closed earlier in 2024. Excluding the impact of GMT, full year 2024 core earnings increased 10% from the prior year4.
In 4Q24, strong momentum continued in Global WAM, Asia and Canada where we generated double-digit growth compared with 4Q23.
Net Income attributed to shareholders of $5.4 billion in 2024, $0.3 billion higher compared with 2023, and $1.6 billion in 4Q24, in line with 4Q23
The $0.3 billion increase in 2024 net income was driven by core earnings growth and improved market experience, partially offset by a higher net charge related to the updates to actuarial methods and assumptions and lower tax- related benefits. The net charge from market experience in 2024 was primarily related to lower-than-expected returns on alternative long-duration assets (“ALDA”), driven by real estate and private equity investments, as well as realized loss due to the sale of debt instruments related to the reinsurance transactions that were closed in 2024. This realized loss due to the sale of debt instruments was broadly offset by an associated change in Other Comprehensive Income, resulting in a neutral impact to book value.
4Q24 net income was in line with prior year, as core earnings growth offset the non-recurrence of the impact from updates to actuarial methods and assumptions in 4Q23. The net charge from market experience in 4Q24 was primarily related to lower-than-expected returns on public equity and lower-than-expected returns on ALDA, driven by real estate investments.
30%+ increases in insurance new business results and $13.3 billion of net inflows in Global WAM
APE sales, new business CSM and NBV hit record levels in 2024 and increased 30%, 32% and 32%, respectively, year-over-year. We achieved our four best quarters ever in 2024 for all three metrics
Our 4Q24 new business results demonstrated strong momentum with year-over-year growth of 42%, 32% and 31% in APE sales, new business CSM and NBV, respectively
Global WAM net inflows of $13.3 billion in 2024, $8.8 billion higher compared with net inflows of $4.5 billion in 2023, reflecting strong retail net flows and improved net flows in retirement. This contributes to Global WAM’s track record of generating positive net flows in 14 out of the past 15 years
Global WAM net inflows of $1.2 billion in 4Q24, increased $2.5 billion compared with net outflows of $1.3 billion in 4Q23, driven by continued strong retail net flows across all geographies
CSM balance increased 3% with contribution from organic CSM movement of 6%4,7
CSM was $22,127 million as at December 31, 2024
CSM increased $1,687 million compared with December 31, 2023. Organic CSM movement contributed $1,231 million of the increase in 2024, driven by the impact of new business and interest accretion, partially offset by amortization recognized in core earnings and unfavourable insurance experience. Inorganic CSM movement was an increase of $456 million in 2024, primarily driven by the favourable impacts of changes in foreign currency exchange rates, partially offset by the impacts of reinsurance transactions and the annual review of actuarial methods and assumptions. Post-tax CSM net of NCI3 was $19,682 million as at December 31, 2024.
____________________________________
(1)
Comprised of annualized premium equivalent (“APE”) sales, new business contractual service margin net of NCI (“new business CSM”), new business value (“NBV”), and Global Wealth and Asset Management (“Global WAM”) net flows.
(2)
Diluted core earnings per common share (“core EPS”), core EPS excluding the impact of GMT, core ROE, core EBITDA margin, expense efficiency ratio, adjusted book value per common share (“adjusted BV per common share”) and financial leverage ratio are non-GAAP ratios.
(3)
Core earnings and post-tax contractual service margin net of NCI (“post-tax CSM net of NCI”) are non-GAAP financial measures. For more information on non- GAAP and other financial measures, see “Non-GAAP and other financial measures” below and in our 2024 Management’s Discussion and Analysis (“2024 MD&A”).
(4)
Percentage growth / declines in core earnings, core EPS, core EPS excluding the impact of GMT, diluted earnings (loss) per share (“EPS”), net income attributed to shareholders, new business CSM, core earnings excluding the impact of GMT and contractual service margin net of NCI (“CSM”) are stated on a constant exchange rate basis and are non-GAAP ratios.
(5)
On June 20, 2024, Canada enacted the Global Minimum Tax Act. The impact was reflected in Corporate & Other in situations where GMT was not substantively enacted in local jurisdictions where we operated as of December 31, 2024.
(6)
Life Insurance Capital Adequacy Test (“LICAT”) ratio of The Manufacturers Life Insurance Company (“MLI”) as at December 31, 2024. LICAT ratio is disclosed under the Office of the Superintendent of Financial Institutions Canada’s (“OSFI’s”) Life Insurance Capital Adequacy Test Public Disclosure Requirements guideline.
(7)
For more information on remittances, APE sales, NBV, net flows, gross flows, average assets under management and administration (“average AUMA”) and new business value margin (“NBV margin”), see “Non-GAAP and other financial measures” below. In this news release, percentage growth / declines in APE sales, NBV, net flows, gross flows, average AUMA and organic CSM are stated on a constant exchange rate basis.
(8)
See “Caution regarding forward-looking statements” below.
(9)
The benefits from our global digital, customer leadership initiatives include expense saves, growth absorption, revenue benefits (margin businesses) and new business CSM growth (insurance).
(10)
Manulife Pro is available in Singapore, Vietnam, Indonesia, Japan and Hong Kong.
(11)
See “Profitability” in section 1 “Manulife Financial Corporation” and section 8 “Fourth Quarter Financial Highlights” in our 2024 MD&A for more information on notable items attributable to core earnings and net income attributed to shareholders.
Earnings Results Conference Call
Manulife will host a conference call and live webcast on its fourth quarter and full year 2024 results on February 20, 2025, at 8:00 a.m. (ET). To access the conference call, dial 1-800-806-5484 or 1-416-340-2217 (Passcode: 8414068#). Please call in 15 minutes before the start time. You will be required to provide your name and organization to the operator. You may access the webcast at www.manulife.com/en/investors/results-and-reports.
The archived webcast will be available following the call at the same URL as above. A replay of the call will also be available until March 22, 2025, by dialing 1-800-408-3053 or 1-905-694-9451 (Passcode: 7315507#).
The Fourth Quarter 2024 Statistical Information Package is also available on the Manulife website at: www.manulife.com/en/investors/results-and-reports.
This earnings news release should be read in conjunction with the Company’s 2024 MD&A and Consolidated Financial Statements for the year and the quarter ended December 31, 2024, prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board, which is available on our website at www.manulife.com/en/investors/results-and-reports. The Company’s 2024 MD&A and additional information relating to the Company is available on the SEDAR+ website at https://www.sedarplus.ca and on the U.S. Securities and Exchange Commission’s (“SEC”) website at https://www.sec.gov.
Any information contained in, or otherwise accessible through, websites mentioned in this news release does not form a part of this document unless it is expressly incorporated by reference.
Media Inquiries
Anne Hammer
(201) 925-1213
Investor Relations
Hung Ko
(416) 806-9921
Earnings
The following table presents net income attributed to shareholders, consisting of core earnings and details of the items excluded from core earnings:
Quarterly Results
Full Year Results
($ millions)
4Q24
3Q24
4Q23
2024
2023
Core earnings
Asia
