Manulife Financial (MFC) Investor Day 2024 Day 1 summary

Strategic transformation and business evolution

• Shifted from high-risk, low-ROE to lower-risk, high-ROE business since 2017, with a disciplined focus on customer experience, digitalization, and portfolio optimization.

• Divested riskier, low-ROE businesses, freeing up CAD 11 billion in capital, reducing leverage, and strengthening capital position.

• Achieved or exceeded most transformation targets, with ongoing focus on digital innovation, talent, and culture as differentiators.

• Investments in digital capabilities reached CAD 1 billion since 2017, with another CAD 1 billion committed over the next three years.

• Emphasis on sustainability, DE&I, and shifting from a claims-centric to a health-centric business model.

Financial performance and new targets

• Core ROE improved from 11.3% in 2017 to 15.9% in 2023; new target set at 18%+ by 2027.

• Core EPS grew at 8% CAGR, with a new target of 10%-12% growth from 2024-2027.

• Expense efficiency improved by 9.9 percentage points to 45%, with a new goal of less than 45%.

• Cumulative remittance target of CAD 22 billion (or $22B+) for 2024-2027, with 60%-70% of earnings expected to be remittable annually.

• Returned CAD 21 billion to shareholders since 2017 through dividends and buybacks.

Growth drivers and market positioning

• Well-positioned to capitalize on megatrends: Asian middle class growth, global aging, and digitalization.

• Asia and GWAM expected to drive the largest share of future ROE improvement, leveraging scale and operational excellence.

• Focus on organic growth in existing markets, with disciplined M&A primarily in Asia and Global Wealth and Asset Management.

• Product mix shifted toward higher-margin, less capital-intensive offerings, with improved pricing discipline and faster capital payback.

• In-force management and further inorganic actions to optimize capital and reduce risk, especially in legacy blocks.