Manulife Financial (MFC) Q4 2024 earnings summary

Executive summary

• Achieved record core earnings of $7.2B in 2024, up 8% year-over-year, with Asia and Global WAM contributing significantly and highest potential businesses accounting for 70% of total core earnings.

• Executed milestone reinsurance transactions, including the largest-ever LTC and Canadian UL deals, unlocking ~$2.8B in capital and accreting ~0.4pps to core ROE.

• Delivered strong top-line growth: APE sales up over 30%, new business CSM and NBV up over 32% year-over-year, led by Asia.

• Returned $6.1B+ to shareholders in 2024 via dividends and buybacks, including a 10% dividend increase and a new buyback program for up to 3% of shares.

• Maintained a strong capital position with a LICAT ratio of 137% and financial leverage ratio of 23.7%.

Financial highlights

• Core EPS grew 11% to $3.87; excluding global minimum taxes, growth was 14%.

• Core ROE reached 16.4% for 2024, up 0.5 pps year-over-year, progressing toward the 2027 target of 18%+.

• Adjusted book value per share rose 15% to $37.02; book value per share also up 15%.

• Global WAM net inflows reached $13.3B, with average AUMA up 15% to $946B.

• Efficiency ratio improved to 44.8%, meeting the medium-term target.

Outlook and guidance

• On track to achieve 2027 targets: core ROE ≥18%, cumulative remittances ≥$22B, new business CSM growth 15%, and core EPS growth 10–12%.

• Management confident in sustained growth, citing robust digital transformation, capital optimization, and strong cash generation.

• Announced a new share repurchase program for up to 3% of common shares and a 10% dividend increase effective March 2025.

• Asia segment expected to sustain mid-teens core earnings growth, normalizing for global minimum tax impacts.

• Remittance target of CAD 22 billion+ by 2027, with 60%-70% of core earnings expected as cash remittances.