Manulife Financial (MFC) Investor Day 2024 Day 2 summary

Strategic transformation and future direction

• Emphasis on transformation from a high-risk, low-ROE business to a lower-risk, higher-ROE model, with significant improvements in efficiency, digitization, and product focus since 2017.

• Clear strategy to capitalize on global megatrends, leveraging a unique geographic footprint and a high-quality, execution-focused team.

• Ongoing commitment to raising the bar in financial targets, operational excellence, and customer experience, with a culture of continuous improvement.

• Confidence in detailed, actionable plans to deliver future growth and value, supported by strong leadership and organizational alignment.

Financial performance and operational efficiency

• Achieved industry-leading efficiency ratios, reducing costs through digitization, AI, and operational scale, with $1 billion in cost savings realized ahead of schedule.

• ROE targets for core businesses set at 14%-16% by 2027, driven by selective product offerings and disciplined capital allocation.

• Lifetime return on capital for new business exceeds 20%, with ongoing improvements in profitability and scale.

• Digital transformation and automation have delivered substantial financial benefits, with $185 million in 2023 and a target of $1.5 billion by 2025.

Digital and AI leadership

• Over $2 billion invested in digital and AI capabilities, enabling rapid deployment of generative AI and advanced analytics across the organization.

• 53% of customer servicing processes automated, representing 69% of global servicing volume, with further upside expected from less frequent, high-cost processes.

• Proprietary AI tools and platforms, such as the Intelligent Customer Data Platform, are driving personalized engagement, operational efficiency, and improved customer experience.

• GenAI solutions are being scaled across sales, underwriting, and customer service, with measurable impacts on sales productivity and customer engagement.

• Investments in cloud and AI have enabled rapid deployment of GenAI solutions, with over 100 AI models in production and 7 GenAI use cases deployed, supporting both customer and employee productivity.