Manulife Financial (MFC) Q2 2024 earnings summary

Executive summary

• Delivered strong Q2/2Q24 results: APE sales up 17%, core earnings up 6%, new business value up 23%, and new business CSM up 6% year-over-year.

• Core EPS grew 9% to $0.91, core ROE reached 15.7%, and adjusted book value per share increased 15% to $33.96.

• Asia and Global WAM segments drove earnings growth, with Asia core earnings up 40% and contributing 44% of YTD core earnings.

• Share buybacks accelerated, with $1.1B repurchased (31M shares) and plans to buy back up to 90M shares, returning over $3B to shareholders.

• Closed the largest UL reinsurance transaction in Canada and completed the CQS acquisition, supporting Global WAM growth.

Financial highlights

• Core earnings rose 6% to $1.737B, net income attributed to shareholders was $1.042B, and core EPS grew 9%.

• APE sales increased 17% year-over-year, led by Canada and Asia.

• Adjusted book value per share up 15% to $33.96; CSM balance per share up 26% to $10.25.

• Dividend per common share increased 10% to 40.0¢.

• Global WAM net inflows were $0.1B, down from $2.2B in 2Q23.

Outlook and guidance

• Raised 2027 core ROE target to 18%+ and cumulative remittances target to CAD 22B+ for 2024-2027.

• Medium-term targets: 15% new business CSM growth, 8-10% CSM balance growth, 10-12% core EPS growth, and expense efficiency ratio below 45%.

• Management remains confident in achieving higher return, lower risk transformation and digital leadership.