Statistical Information Package
Q2 2023
TABLE OF CONTENTS
Page Page
Notes to Readers 1 Asset Information
Financial Highlights 5 Asset Composition and Quality
Drivers of Earnings 7 Portfolio Composition 45
Financial Highlights (cont'd) 8 Fixed Income Securities by Credit Quality and Geographic Location 46
Fixed Income Securities by Sector and Unrealized Losses 47
Consolidated Financial Statements 48
Consolidated Statements of Comprehensive Income 12
Consolidated Statements of Financial Position 13 Actuarial Liabilities Information
Consolidated Statements of Changes in Equity 14 Variable Annuity and Segregated Fund Guarantees 49
Consolidated Statements of Cash Flows 15
Capital Information
Segmented Information Regulatory Capital 50
Asia 16
Canada 24
. 29 Glossary of Terms and Definitions 51
Global Wealth and Asset Management 35
Corporate & Other 41 General Information 52
NOTES TO READERS - IFRS 17 and IFRS 9 TRANSITION INFORMATION
Manulife adopted IFRS 17 “Insurance Contracts” and IFRS 9 “Financial Instruments” effective for years beginning on or after January 1, 2023, to be applied retrospectively.
Our quarterly and year-to-date 2022 results have been restated in accordance with IFRS 17, including the other comprehensive income option, and IFRS 9. However, the
2022 comparative results restated may not be fully representative of our market risk profile, as the transition of our general fund portfolio for asset-liability matching
purposes under IFRS 17 and IFRS 9 was not completed until early 2023. Consequently, year-over-year variations between our 2023 results compared to the 2022 results
should be viewed in this context.
Additionally, our use of the fair value through other comprehensive income option as permitted under IFRS 17 has resulted in our 2022 results not being directly comparable
to the 2023 results. Accordingly, for 2023 only, we will also present comparative quarterly and year-to-date 2022 results inclusive of IFRS 9 hedge accounting and expected
credit loss principles as if IFRS had allowed such principles to be implemented for 2022 (the “IFRS 9 transitional impacts”).
The following financial measures for 2022 have been adjusted for IFRS transitional impacts and are denoted by the term "Transitional":
Net income (loss) attributed to shareholders
Net income (loss) before income taxes
Net income (loss)
Net income (loss) attributed to shareholders before taxes
Return on common shareholders' equity
Basic earnings per common share; and
Diluted earnings per common share
In this document, we have shaded in light grey the 2022 results which exclude the IFRS 9 transitional impacts.
Page 1
NOTES TO READERS
Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under GAAP and,
therefore, might not be comparable to similar financial measures disclosed by other issuers. For more information
on the non-GAAP and other financial measures in this document, see the section "Non-GAAP and Other Financial
Measures" in our most recently filed Management's Discussion and Analysis ("MD&A"), which is incorporated by
reference and available on SEDAR+ at .
Core earnings is a financial measure which we believe aids investors in better understanding the long-term
earnings capacity and valuation of the business. Core earnings allows investors to focus on the Company’s
operating performance by excluding the impact of market related gains or losses, changes in actuarial methods and
assumptions that flow directly through income as well as a number of other items, outlined below, that we believe
are material, but do not reflect the underlying earnings capacity of the business. For example, due to the long-term
nature of our business, the mark-to-market movements in equity markets, interest rates including impacts on
hedge ineffectiveness, foreign currency exchange rates and commodity prices as well as the change in the fair
value of ALDA from period-to-period can, and frequently do, have a substantial impact on the reported amounts of
our assets, insurance contract liabilities and net income attributed to shareholders. These reported amounts may
not be realized if markets move in the opposite direction in a subsequent period. This makes it very difficult for
investors to evaluate how our businesses are performing from period-to-period and to compare our performance
with other issuers
For more information on core earnings, see the section "Non-GAAP and Other Financial Measures" in our most
recently filed MD&A.
Drivers of Earnings (“DOE”) is used to identify the primary sources of gains or losses in each reporting period.
It is one of the key tools we use to understand and manage our business. The DOE has replaced the Source of
Earnings that was disclosed under OSFI’s Source of Earnings Disclosure (Life Insurance Companies) guideline. The
DOE line items are comprised of amounts that have been included in our financial statements. The DOE shows the
sources of net income (loss) attributed to shareholders and the core DOE shows the sources of core earnings and
the items excluded from core earnings, reconciled to net income attributed to shareholders. We have included
transitional non-GAAP financial measures for our 2022 comparative quarterly results
The elements of the core earnings view are described below:
Net Insurance Service Result represents the net income attributed to shareholders associated with providing
insurance services to policyholders within the period. This includes lines attributed to core earnings including:
• Expected earnings on insurance contracts which includes the release of risk adjustment for
expired non-financial risk, the CSM recognized for services provided and expected earnings on short-
term PAA insurance business.
• Impact of new insurance business relates to income at initial recognition from new insurance
contracts. Losses would occur if the group of new insurance contracts was onerous at initial recognition.
If reinsurance contracts provide coverage for the direct insurance contracts, then the loss is offset by a
corresponding gain on reinsurance contracts held.
• Insurance experience gains (losses) arise from items such as claims, persistency, and expenses,
where the actual experience in the current period differs from the expected results assumed in the
insurance and investment contract liabilities. Generally, this line would be driven by claims and
expenses, as persistency experience relates to future service and would be offset by changes to the
carrying amount of the contractual service margin unless the group is onerous, in which case the impact
of persistency experience would be included in core earnings.
• Other represents pre-tax transitional net income on residual items in the insurance result section.
Use of this document:
Information in the document is supplementary to the Company's current quarter Press Release, MD&A and
audited financial statements in the most recent Annual Report and should be read in conjunction with those
documents.
Non-GAAP and Other Financial Measures
The Company prepares its Consolidated Financial Statements in accordance with International Financial
Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. We use a number of
non-GAAP and other financial measures to evaluate overall performance and to assess each of our businesses.
This section includes information required by National Instrument 52-112 – Non-GAAP and Other Financial
Measures Disclosure in respect of “specified financial measures” (as defined therein).
Non-GAAP financial measures includes transitional net income (loss) attributed to shareholders; transitional
net income (loss) before income taxes; transitional net income (loss); transitional net income (loss) attributed to
shareholders (pre-tax); core earnings (loss); pre-tax core earnings; core earnings before income taxes,
depreciation and amortization (“core EBITDA”); total expense; core expenses; total expenditures; core
expenditures; core revenue; Manulife Bank net lending assets; Manulife Bank average net lending assets; assets
under management (“AUM”); assets under manag ement and administration (“AUMA”); Global Wealth and Asset
Management ("Global WAM") managed AUMA; net annualized fee income; post-tax contractual service margin
(“post-tax CSM”); post-tax contractual service margin net of non-controlling interests (“NCI”) (“post-tax CSM net
of NCI”); Drivers of Earnings (“DOE”) line items for net investment result, other, income tax (expense) recovery
and transitional net income attributed to participating policyholders and NCI; core DOE line items for core net
insurance service result, core net investment result, other core earnings, and core income tax (expense)
recovery; . In addition, non-GAAP financial measures include the following stated on a constant exchange rate
(“CER”) basis: any of the foregoing non-GAAP financial measures; net income attributed to shareholders; and
common shareholders’ net income.
Non-GAAP ratios includes core return on shareholders' equity ("core ROE"); diluted core earnings per common
share (“core EPS”); transitional return on common shareholders’ equity (“transitional ROE”); transitional basic
earnings per common share (“transitional basic EPS”); transitional diluted earnings per common share
("transitional diluted EPS"); financial leverage ratio; common share core dividend payout ratio; effective tax rate
on core earnings; expenditure efficiency ratio; expense efficiency ratio; core EBITDA margin; post-tax CSM net
of NCI per common share; adjusted book value per common share; adjusted book value excluding goodwill per
common share; market value to adjusted book value ratio; market value to adjusted book value exluding
goodwill ratio; net annualized fee income yield on average AUMA and effective tax rate on transitional net
income attributed to shareholders. In addition, non-GAAP ratios include the percentage growth/decline on a CER
basis in any of the above non-GAAP financial measures; net income attributed to shareholders; common
shareholders’ net income; Pre-tax net income attributed to shareholders; basic earnings per common share; and
diluted earnings per common share; DOE line item for net insurance service result; CSM; CSM net of NCI;
impact of new insurance business; new business CSM net of NCI; basic earnings per common share (“basic
EPS”) and diluted earnings per common share (“diluted EPS”).
Other specified financial measures include assets under administration (“AUA”); consolidated capital; new
business value (“NBV”); new business value margin (“NBV margin”); sales; annualized premium equivalent
(“APE”) sales; gross flows; net flows; market value to book value ratio; average assets under management and
administration (“average AUMA”); Global WAM average managed AUMA; average assets under administration;
any of the foregoing specified financial measures stated on a CER basis; and percentage growth/decline in any
of the foregoing specified financial measures on a CER basis. In addition, we provide an explanation of the
components of core DOE line items other than the change in expected credit loss, the items that comprise
certain items excluded from core earnings, and the components of CSM movement other than the new business
CSM.
Page 2
NOTES TO READERS (CONT'D)
New Business CSM is the impact of new business defined above, excluding CSM attributable to non-controlling
interests.
New business value (“NBV”) is the change in embedded value as a result of sales in the reporting period. The
definition of NBV has changed for periods beginning after 2022 as follows:
• Adopting IFRS 17 in the calculation of expected future distributable earnings in Canada, and international high
net worth business, which was reclassified to the Asia segment in 2023; and
• Changing the basis for calculating expected future distributable earnings in the . from IFRS to local capital
requirements.
NBV for periods beginning after December 31, 2022 is calculated as the present value of shareholders’ interests in
expected future distributable earnings in accordance with IFRS 17, after the cost of capital calculated under the
LICAT framework in Canada and the local capital requirements in the . and Asia, on actual new business sold in
the period using assumptions that are consistent with the assumptions used in the calculation of embedded value.
NBV for periods prior to January 1, 2023 is calculated as the present value of shareholders’ interests in expected
future distributable earnings in accordance with IFRS 4 “Insurance Contracts”, after the cost of capital calculated
under the LICAT framework in Canada and the . and the local capital requirements in Asia, on actual new
business sold in the period using assumptions that are consistent with the assumptions used in the calculation of
embedded value.
NBV excludes businesses with immaterial insurance risks, such as the Company’s Global WAM, Manulife Bank and
the P&C Reinsurance businesses. NBV is a useful metric to evaluate the value created by the Company’s new
business franchise.
NBV margin is calculated as NBV divided by APE sales excluding non-controlling interests. APE sales are
calculated as 100% of regular premiums and deposits sales and 10% of single premiums and deposits sales. NBV
margin is a useful metric to help understand the profitability of our new business.
Core earnings before income tax, depreciation and amortization ("Core EBITDA") is a financial measure
which Manulife uses to better understand the long-term earnings capacity and valuation of our Global WAM
business on a basis more comparable to how the profitability of global asset managers is generally measured. Core
EBITDA presents core earnings before the impact of interest, taxes, depreciation, and amortization. Core EBITDA
excludes certain acquisition expenses related to insurance contracts in our retirement businesses which are
deferred and amortized over the expected lifetime of the customer relationship. Core EBITDA was selected as a key
performance indicator for our Global WAM business, as EBITDA is widely used among asset management peers,
and core earnings is a primary profitability metric for the Company overall.
Core EBITDA margin is a financial measure which Manulife uses to better understand the long-term profitability
of our Global WAM business on a more comparable basis to how profitability of global asset managers are
measured. Core EBITDA margin presents core earnings before the impact of interest, taxes, depreciation, and
amortization divided by core revenue from these businesses. Core revenue is used to calculate our core EBITDA
margin, and is equal to the sum of pre-tax other revenue and investment income in Global WAM included in core
EBITDA, and it excludes such items as revenue related to integration and acquisitions and market experience gains
(losses).
Net Investment Result represents the net income attributed to shareholders associated with investment
results within the period. Note that results associated with Global Wealth and Asset Management and
Manulife Bank are shown in separate DOE lines. However within the income statement, the results
associated with these businesses would impact the total net investment result. This section includes lines
attributed to core earnings including:
• Expected investment earnings, which is the difference between expected asset returns and the
associated finance income or expense from insurance contract liabilities, net of investment expenses.
• Change in expected credit loss which is the gain or charge to net income attributed to
shareholders for credit losses to bring the allowance for credit losses to a level management
considers adequate for expected credit-related losses on its portfolio.
• Expected earnings on surplus reflects the expected investment return on surplus assets.
• Other represents pre-tax net income on residual items in the investment result section.
Global Wealth and Asset Management (“Global WAM”) is the pre-tax net income from the Global
Wealth and Asset Management segment, adjusted for applicable items excluded from core earnings as noted
in the core earnings (loss) section above.
Manulife Bank is the pre-tax net income from Manulife Bank, adjusted for applicable items excluded from
core earnings as noted in the core earnings (loss) section above.
Other represents net income associated with items outside of the net insurance service result, net
investment result, Global WAM and Manulife Bank. Other includes lines attributed to core earnings such as:
• Non-Directly Attributable Expenses are expenses incurred by the Company which are not
directly attributable to fulfilling insurance contracts. Non-directly attributable expenses excludes non-
directly attributable investment expenses as they are included in the net investment result.
• Other represents pre-tax net income on residual items in the Other section. Most notably this would
include the cost of financing debt issued by Manulife.
Contractual Service Margin (CSM) is a liability that represents future unearned profits on insurance
contracts written. It is a component of our insurance and reinsurance contract liabilities on our Statement of
Financial Position. Organic and inorganic changes in CSM include amounts attributable to participating
shareholders and non-controlling interests. CSM growth is the percentage change in the CSM compared with a
prior period on a constant exchange rate basis.
Changes in CSM that are classified as Organic include the following impacts:
• Impact of new business is the impact on CSM from insurance contracts initially recognized in the period
and includes acquisition expense related gains (losses) which impact the CSM in the period. It excludes the
impact on CSM from entering into new in-force reinsurance contracts which would generally be considered a
management action.
• Expected movement related to finance income or expenses includes interest accreted on the CSM
during the period and the expected change in the CSM on VFA contracts if returns are as expected.
• CSM recognized for services provided is the portion of the CSM that is recognized in net income for
services provided in the period.
• Insurance experience gains (losses) and other is primarily the change in the CSM balance from
experience variances that relate to future periods. This includes persistency experience and changes in
future period cash flows caused by other current period experience.
Changes in CSM that are classifies as Inorganic include a) Changes in actuarial methods and assumptions that
adjust the CSM b) Effect of movement in exchange rates over the reporting period c) Impact of markets and d)
Reinsurance transactions, tax-related and other items
Page 3
NOTES TO READERS (CONT'D)
Gross Flows is a new business measure presented for our Global WAM business and includes all deposits into
mutual funds, group pension/retirement savings products, private wealth and institutional asset management
products. Gross flows is a common industry metric for WAM businesses as it provides a measure of how successful
the businesses are at attracting assets.
Net flows is presented for our Global WAM business and includes gross flows less redemptions for mutual funds,
group pension/retirement savings products, private wealth and institutional asset management products. In
addition, net flows include the net flows of exchange traded funds and non-proprietary product sold by Manulife
Securities. Net flows is a common industry metric for WAM businesses as it provides a measure of how successful
the businesses are at attracting and retaining assets. When net flows are positive, they are be referred to as net
inflows. Conversely, negative net flows are referred to as net outflows.
Assets under management and administration (AUMA) is a financial measure of the size of the Company. It
is comprised of AUM and AUA. AUM includes assets of general account, consisting of total invested assets and
segregated funds net assets, and external client assets for which we provide investment management services,
consisting of mutual fund, institutional asset management and other fund net assets. AUA are assets for which we
provide administrative services only. Assets under management and administration is a common industry metric for
wealth and asset management businesses.
Our Global WAM business also manages assets on behalf of other segments of the Company. Global WAM Managed
AUMA is a financial measure equal to the sum of Global WAM’s AUMA and assets managed by Global WAM on
behalf of other segments. It is an important measure of the assets managed by Global WAM.
Consolidated capital serves as a foundation of our capital management activities at the MFC level. Consolidated
capital is calculated as the sum of: (i) total equity excluding accumulated other comprehensive income (“AOCI”) on
cash flow hedges; (ii) post-tax CSM; and (iii) certain other capital instruments that qualify as regulatory capital. For
regulatory reporting purposes under the LICAT framework, the numbers are further adjusted for various additions
or deductions to capital as mandated by the guidelines defined by OSFI.
Financial leverage ratio is a debt to equity ratio. The ratio is calculated as the sum of long-term debt, capital
instruments and preferred shares and other equity instruments divided by the sum of long-term debt, capital
instruments, equity and post-tax CSM.
Net annualized fee income yield on average AUMA ("Net Fee income yield") is a financial measure
that represents the net annualized fee income from Global WAM channels over average AUMA. This measure
provides information on Global WAM's adjusted return generated from managing AUMA.
Core earnings per share is core earnings available to common shareholders divided by weighted average
outstanding common shares.
Adjusted book value per common share is calculated dividing common shareholders' equity and post-tax
CSM excluding non-controlling interests by the number of common shares outstanding at the end of the period.
Expense efficiency ratio is defined as core expenses divided by the sum of core earnings before income
taxes (“pre-tax core earnings”) and core expenses. Core expense is equal to total expenses that are included in
core earnings and excludes such items items as material legal provisions for settlements, restructuring charges
and expenses related to integration and acquisitions. Total expenses include the following items that flow
directly through income: general expenses, directly attributable maintenance expenses and directly attributable
acquisition expenses for contracts measured using the PAA method.
Expense efficiency ratio is a financial measure which Manulife uses to measure progress towards our target to
be more efficient. During the transition period for 2023, both the expense efficiency and the expenditure
efficiency ratios will be disclosed. Starting in 2024, we will return to disclosing the expense efficiency ratio
exclusively as it is the key expense performance metric.
Expenditure efficiency ratio is a financial measure which Manulife uses to measure progress towards our
target to be more efficient. It is defined as core expenditures divided by the sum of core earnings before
income taxes (“pre-tax core earnings”) and core expenditures. Core expenditure is equal to total expenditure
which excludes items like material legal provisions for settlements, restructuring charges and expenses related
to integration and acquisitions. Total expenditure includes the sum of total expenses and costs that are directly
attributable to the acquisition of new business that are capitalized into the CSM
Annualized Premium Equivalent ("APE") Sales are comprised of 100% of regular premiums and deposits
sales and 10% of single premiums and deposits sales.
(i) For individual insurance, new annualized premiums reflect the annualized premium expected in the first year
of a policy that requires premium payments for more than one year. Single premium is the lump sum premium
from the sale of a single premium product, . travel insurance. Sales are reported gross before the impact of
reinsurance.
(ii) For group insurance, sales includes new annualized premiums and administrative services only (ASO)
premium equivalents on new cases, as well as the addition of new coverages and amendments to contracts,
excluding rate increases.
(iii) For annuities, APE reflect the annualized premium expected in the first year of a policy that requires
premium payments for more than one year. This includes certain single premium wealth accumulation products
and individual annuities, both fixed and variable.
Annuities Sales are comprised of 100% of all new deposits. This includes certain single premium wealth
accumulation products in Asia and individual annuities, both fixed and variable. As we have discontinued sales
of new VA contracts in the ., beginning in the first quarter of 2013, subsequent deposits into existing .
VA contracts are not reported as sales.
Page 4
FINANCIAL HIGHLIGHTS Q4
(Canadian $ in millions unless otherwise stated and per share information, unaudited)
2023 2023 2022 2022 2022 2023 Q2 2023 Q2 YTD YTD YTD 2023 YTD 2023 Fiscal
Q2 Q1 Q4 Q3 Q2 vs. vs. 2023 2022 vs. vs. 2022
2022 Q2 2022 Q2 YTD 2022 YTD 2022
AER CER 1 AER CER 1
Shareholders' Net Income (loss) by Reporting Segment
Asia 130 519 315 280 (51) - - 649 88 638 % 184 % 683
Canada 227 309 (73) 853 (611) - - 536 (1,283) - - (503)
. 183 186 (44) (447) (1,226) - - 369 (1,825) - - (2,316)
Global Wealth and Asset Management 317 297 401 287 150 111 % 110 % 614 433 42 % 39 % 1,121
Corporate and Other 168 95 316 (482) (381) - - 263 (752) - - (918)
Net income (loss) attributed to shareholders 1,025 1,406 915 491 (2,119) - - 2,431 (3,339) - - (1,933)
Preferred share dividends and other equity distributions (98) (52) (97) (51) (60) (63)% (150) (112) (34)% (260)
Common shareholders' net income (loss) 927 1,354 818 440 (2,179) - - 2,281 (3,451) - - (2,193)
Common shareholders' net income (loss) CER 2 927 1,343 812 473 (2,206) - - 2,270 (3,413) - - (2,128)
Shareholders' Earnings Analysis
Core earnings 2
Asia 473 489 496 387 450 5 % 1 % 962 929 4 % 0 % 1,812
Canada 374 353 296 391 366 2 % 2 % 727 700 4 % 4 % 1,387
. 458 385 408 437 428 7 % 2 % 843 721 17 % 11 % 1,566
Global Wealth and Asset Management 320 287 274 354 327 (2)% (6)% 607 671 (10)% (13)% 1,299
Corporate and Other 12 17 69 (230) (45) - - 29 (102) - - (263)
Total core earnings 1,637 1,531 1,543 1,339 1,526 7 % 4 % 3,168 2,919 9 % 5 % 5,801
Total core earnings CER 2 1,637 1,519 1,539 1,366 1,578 4 % 4 % 3,156 3,013 5 % 5 % 5,918
Items excluded from core earnings
Market experience gains (losses) (570) (65) (655) (575) (1,358) (635) (1,355) (2,585)
Changes in actuarial methods and assumptions that flow directly through income - - - 26 - - - 26
Restructuring charge - - - - - - - -
Reinsurance transactions, tax-related items and other (42) (60) 340 (13) - (102) (71) 256
Net income (loss) attributed to shareholders / Transitional 2,4 1,025 1,406 1,228 777 168 510 % 496 % 2,431 1,493 63 % 50 % 3,498
Net income (loss) attributed to shareholders / Transitional CER 2,4 1,025 1,364 1,228 807 172 496 % 496 % 2,389 1,589 50 % 50 % 3,624
Net income (loss) attributed to shareholders / Transitional 4 1,025 1,406 1,228 777 168 510 % 496 % 2,431 1,493 63 % 50 % 3,498
Less: reconciling items (pre-tax)
Change in expected credit loss - - (27) (9) (19) - 1 (35)
Hedge accounting - - 461 438 3,099 - 6,457 7,356
Total reconciling items (pre-tax) - - 434 429 3,080 - 6,458 7,321
Income tax (expense) recovery - - (121) (143) (793) - (1,626) (1,890)
Less: total reconciling items (post-tax) - - 313 286 2,287 - 4,832 5,431
Net income (loss) attributed to shareholders 1,025 1,406 915 491 (2,119) - - 2,431 (3,339) - - (1,933)
Net income (loss) attributed to shareholders CER 2 1,025 1,395 909 524 (2,146) - - 2,420 (3,301) - - (1,868)
Components of market experience gains (losses)
Realized gains (losses) on debt instruments (24) (31) (453) (225) (208) (55) (483) (1,161)
Derivatives and hedge ineffectiveness (13) 93 (182) 354 (442) 80 95 267
Actual less expected long-term returns on public equity 86 108 274 (375) (866) 194 (1,190) (1,291)
Actual less expected long-term returns on ALDA (478) (364) (634) (113) 497 (842) 715 (32)
Other investment results (141) 129 340 (216) (339) (12) (492) (368)
Total market experience gains (losses) (570) (65) (655) (575) (1,358) (635) (1,355) (2,585)
Selected Performance Measures
Basic earnings (loss) per common share $ $ $ $ ($) - - $ ($) - - ()$
Basic earnings (loss) per common share / Transitional 3,4 $ $ $ $ $ 791 % 760 % $ $ 72 % 60 % $
Diluted earnings (loss) per common share $ $ $ $ ($) - - $ ($) - - ()$
Diluted earnings (loss) per common share / Transitional 3,4 $ $ $ $ $ 790 % 760 % $ $ 72 % 59 % $
Diluted core earnings per common share 3 $ $ $ $ $ 9 % 6 % $ $ 12 % 8 % $
Return on common shareholders' equity (annualized) (%) % % % % ()% pps % ()% pps ()%
Return on common shareholders' equity / Transitional (annualized) (%) 3,4 % % % % % pps % % pps %
Core ROE (annualized) (%) 3 % % % % % pps % % pps %
1 In this document, percentage change on a CER basis is a non-GAAP ratio.
2 This item is a non-GAAP financial measure. For more information on non-GAAP and other financial measures, see “Non-GAAP and Other Financial Measures” in the Notes to Readers section.
3 This item is a non-GAAP ratio.
4 For more information on 2022 transitional results, see "IFRS 17 and IFRS 9 Transitional Information" in the Notes to Readers section and section "A1 Implementation of IFRS 17 and IFRS 9" of the 2Q23 MD&A.
Page 5
FINANCIAL HIGHLIGHTS (CONT'D) Q4
(Canadian $ in millions unless otherwise stated and per share information, unaudited)
2023 2023 2022 2022 2022 2023 Q2 2023 Q2 YTD YTD YTD 2023 YTD 2023 Fiscal
Q2 Q1 Q4 Q3 Q2 vs. vs. 2023 2022 vs. vs. 2022
2022 Q2 2022 Q2 YTD 2022 YTD 2022
AER CER AER CER
Shareholders' Earnings Analysis (Pre-tax)
Core earnings 1
Asia 546 557 578 441 514 6 % 2 % 1,103 1,056 4 % 1 % 2,075
Canada 471 438 377 485 454 4 % 4 % 909 860 6 % 6 % 1,722
. 568 471 504 520 529 7 % 2 % 1,039 883 18 % 11 % 1,907
Global Wealth and Asset Management 365 332 321 405 387 (6)% (9)% 697 795 (12)% (15)% 1,521
Corporate and Other (6) 3 (2) (243) (57) 89 % 89 % (3) (134) 98 % 98 % (379)
Total core earnings 1,944 1,801 1,778 1,608 1,827 6 % 3 % 3,745 3,460 8 % 5 % 6,846
Items excluded from core earnings
Market experience gains (losses) (635) (68) (804) (638) (1,463) (703) (1,368) (2,810)
Changes in actuarial methods and assumptions that flow directly through income - - - 23 - - - 23
Restructuring charge - - - - - - - -
Reinsurance transactions, tax-related items and other (42) (40) 70 (16) 34 (82) 34 88
Net income (loss) attributed to shareholders / Transitional 3 1,267 1,693 1,044 977 398 218 % 190 % 2,960 2,126 39 % 30 % 4,147
Shareholders' Earnings Analysis (Effective Tax Rate)
Core earnings 2
Asia 13% 12% 14% 12% 12% 13% 12% 13%
Canada 21% 19% 21% 19% 19% 20% 19% 19%
. 19% 18% 19% 16% 19% 19% 18% 18%
Global Wealth and Asset Management 12% 14% 15% 13% 16% 13% 16% 15%
Corporate and Other nm nm nm (5)% (21)% nm (24)% (31)%
Total core earnings 16% 15% 13% 17% 16% 15% 16% 15%
Items excluded from core earnings
Market experience gains (losses) (10)% (4)% (19)% (10)% (7)% (10)% (1)% (8)%
Changes in actuarial methods and assumptions that flow directly through income - - - (13)% - - - (13)%
Restructuring charge - - - - - - - -
Reinsurance transactions, tax-related items and other 0% 50% nm (19)% - 24% nm nm
Net income (loss) attributed to shareholders / Transitional 2,3 19% 17% (18)% 20% 58% 18% 30% 16%
Core Expenditures
Asia 644 626 659 601 567 14 % 11 % 1,270 1,134 12 % 10 % 2,394
Canada 401 389 404 384 387 4 % 4 % 790 764 3 % 3 % 1,552
. 247 258 255 236 238 4 % (0)% 505 469 8 % 3 % 960
Global Wealth and Asset Management 705 723 710 619 619 14 % 10 % 1,428 1,250 14 % 10 % 2,579
Corporate and Other 102 116 80 16 24 325 % 325 % 218 90 142 % 142 % 186
Total core expenditures 1 2,099 2,112 2,108 1,856 1,835 14 % 12 % 4,211 3,707 14 % 11 % 7,671
Items excluded from core expenditures
Restructuring charge - - - - - - - -
Integration and acquisition expense - - 18 - - - 8 26
Other 9 60 - 39 1 69 1 40
Total expenditures 1 2,108 2,172 2,126 1,895 1,836 15 % 12 % 4,280 3,716 15 % 12 % 7,737
Expenditure Efficiency Ratio 2
Asia % % % % % % % %
Canada % % % % % % % %
. % % % % % % % %
Global Wealth and Asset Management % % % % % % % %
Total Company % % % % % % % %
Core Expenses
Asia 282 261 264 264 247 14 % 11 % 543 490 11 % 8 % 1,018
Canada 334 324 334 316 319 5 % 5 % 658 631 4 % 4 % 1,281
. 175 181 188 174 172 2 % (3)% 356 336 6 % 1 % 698
Global Wealth and Asset Management 705 723 710 619 619 14 % 10 % 1,428 1,250 14 % 10 % 2,579
Corporate and Other 102 116 80 16 24 325 % 325 % 218 90 142 % 142 % 186
Total core expenses 1 1,598 1,605 1,576 1,389 1,381 16 % 13 % 3,203 2,797 15 % 11 % 5,762
Items excluded from core expenses
Restructuring charge - - - - - - - -
Integration and acquisition expense - - 18 - - - 8 26
Other 9 60 - 39 1 69 1 40
Total expenses 1 1,607 1,665 1,594 1,428 1,382 16 % 13 % 3,272 2,806 17 % 13 % 5,828
Expense Efficiency Ratio 2
Asia % % % % % % % %
Canada % % % % % % % %
. % % % % % % % %
Global Wealth and Asset Management % % % % % % % %
Total Company % % % % % % % %
1 This item is a non-GAAP financial measure. For more information on non-GAAP and other financial measures, see "Non-GAAP and Other Financial Measures" in the Notes to Readers section.
2 Effective tax rate on core earnings, effective tax rate on transitional net income attributed to shareholders, expenditure efficiency ratio and expense efficiency ratio are non-GAAP ratios.
3 For more information on 2022 transitional results, see "IFRS 17 and IFRS 9 Transitional Information" in the Notes to Readers section and section "A1 Implementation of IFRS 17 and IFRS 9" of the 2Q23 MD&A.
Page 6
FINANCIAL HIGHLIGHTS - DRIVER OF EARNINGS Q4
(Canadian $ in millions unless otherwise stated and per share information, unaudited)
2023 2023 2022 2022 2022 2023 Q2 2023 Q2 YTD YTD YTD 2023 YTD 2023 Fiscal
Q2 Q1 Q4 Q3 Q2 vs. vs. 2023 2022 vs. vs. 2022
2022 Q2 2022 Q2 YTD 2022 YTD 2022
AER CER AER CER
Drivers of Earnings 1
Net Insurance Service Result 887 849 961 449 1,035 (14)% (17)% 1,736 1,750 (1)% (3)% 3,160
Net Investment Result 2 372 747 (97) 370 (501) - - 1,119 503 122 % 94 % 776
Global Wealth and Asset Management 362 345 461 324 170 113 % 97 % 707 506 40 % 32 % 1,291
Manulife Bank 59 65 72 66 33 79 % 84 % 124 77 61 % 62 % 215
Other 2 (244) (287) (248) (283) (338) 28 % 28 % (531) (728) 27 % 28 % (1,259)
Net income (loss) before income taxes / Transitional 3 1,436 1,719 1,149 926 399 260 % 3,155 2,108 50 % 4,183
Income tax (expense) recovery 2 (265) (309) 102 (205) (234) (13)% (574) (626) 8 % (729)
Net income (loss) / Transitional 3 1,171 1,410 1,251 721 165 610 % 2,581 1,482 74 % 3,454
Less: Net income (loss) attributed to non-controlling interests / Transitional 2,3 26 54 35 33 46 (43)% 80 47 70 % 115
Less: Net income (loss) attributed to participating policyholders / Transitional 2,3 120 (50) (12) (89) (49) - 70 (58) - (159)
Net income attributed to shareholders / Transitional 3 1,025 1,406 1,228 777 168 510 % 496 % 2,431 1,493 63 % 50 % 3,498
Drivers of Earnings - Core 1
Risk adjustment release 268 274 276 253 263 2 % (2)% 542 542 0 % (3)% 1,071
CSM recognized for service provided 424 400 412 411 462 (8)% (11)% 824 989 (17)% (20)% 1,812
Expected earnings on short-term insurance business 154 178 166 216 149 3 % 3 % 332 324 2 % 1 % 706
Expected earnings on insurance contracts 846 852 854 880 874 (3)% (6)% 1,698 1,855 (8)% (11)% 3,589
Impact of new insurance business (45) (36) (33) (51) (55) 18 % 20 % (81) (124) 35 % 37 % (208)
Insurance experience gains (losses) (22) (28) (59) (318) 61 - - (50) (195) 74 % 76 % (572)
Other 25 20 3 (29) 15 67 % 71 % 45 77 (42)% (44)% 51
Core Net Insurance Service Result 2 804 808 765 482 895 (10)% (13)% 1,612 1,613 (0)% (3)% 2,860
Expected investment earnings 714 682 576 584 535 33 % 29 % 1,396 1,056 32 % 28 % 2,216
Change in expected credit loss (1) (141) (30) (6) (18) 94 % 96 % (142) 2 - - (34)
Expected earnings on surplus 282 283 264 224 179 58 % 54 % 565 366 54 % 51 % 854
Other (6) 21 59 40 9 - - 15 (3) - - 96
Core Net Investment Result 2 989 845 869 842 705 40 % 36 % 1,834 1,421 29 % 25 % 3,132
Core Global Wealth and Asset Management 365 332 321 405 387 (6)% (9)% 697 795 (12)% (15)% 1,521
Core Manulife Bank 59 60 67 70 51 16 % 17 % 119 93 28 % 28 % 230
Non-directly attributable expenses (164) (149) (156) (113) (117) (40)% (37)% (313) (288) (9)% (7)% (557)
Other (109) (95) (88) (78) (94) (16)% (16)% (204) (174) (17)% (18)% (340)
Other core earnings 2 (273) (244) (244) (191) (211) (29)% (28)% (517) (462) (12)% (11)% (897)
Total core earnings (pre-tax) 1,944 1,801 1,778 1,608 1,827 6 % 3 % 3,745 3,460 8 % 5 % 6,846
Core income tax (expense) recovery 2 (307) (270) (235) (269) (301) (2)% 1 % (577) (541) (7)% (4)% (1,045)
Total core earnings (post-tax) 1,637 1,531 1,543 1,339 1,526 7 % 4 % 3,168 2,919 9 % 5 % 5,801
Items excluded from core earnings
Market experience gains (losses) (570) (65) (655) (575) (1,358) (635) (1,355) (2,585)
Changes in actuarial methods and assumptions that flow directly through income - - - 26 - - - 26
Restructuring charge - - - - - - - -
Reinsurance transactions, tax-related items and other (42) (60) 340 (13) - (102) (71) 256
Net income (loss) attributed to shareholders / Transitional 3 1,025 1,406 1,228 777 168 510 % 496 % 2,431 1,493 63 % 50 % 3,498
1 Refer to Notes to Readers section for additional details and definitions on the components of the Drivers of Earnings.
2 This item is a non-GAAP financial measure. For more information on non-GAAP and other financial measures, see "Non-GAAP and Other Financial Measures" in the Notes to Readers section.
3 For more information on 2022 transitional results, see "IFRS 17 and IFRS 9 Transitional Information" in the Notes to Readers section and section "A1 Implementation of IFRS 17 and IFRS 9" of the 2Q23 MD&A.
Page 7
FINANCIAL HIGHLIGHTS (CONT'D) Q4
(Canadian $ in millions unless otherwise stated and per share information, unaudited)
2023 2023 2022 2022 2022 2023 Q2 2023 Q2 YTD YTD YTD 2023 YTD 2023 Fiscal
Q2 Q1 Q4 Q3 Q2 vs. vs. 2023 2022 vs. vs. 2022
2022 Q2 2022 Q2 YTD 2022 YTD 2022
AER CER AER CER
Changes in Contractual Service Margin 1
CSM Opening Balance 18,200 17,977 17,798 17,452 17,659 3 % (2)% 17,977 18,589 (3)% (6)% 18,589
Impact of new insurance business 630 461 442 472 494 28 % 22 % 1,091 1,001 9 % 5 % 1,915
Expected movements related to finance income or expenses 228 195 181 208 247 (8)% (10)% 423 542 (22)% (24)% 931
CSM recognized for service provided (471) (448) (455) (457) (508) 7 % 10 % (919) (1,081) 15 % 18 % (1,993)
Insurance experience gains (losses) and other (85) (42) 114 (57) (19) (347)% (482)% (127) 363 - - 420
Organic CSM Movement 302 166 282 166 214 41 % 31 % 468 825 (43)% (46)% 1,273
Changes in actuarial methods and assumptions that adjust the CSM - - - (287) - - - - - - - (287)
Effect of movement in exchange rates (458) 30 (81) 708 212 (428) (27) 600
Impact of markets 61 3 56 (183) (635) - - 64 (1,200) - - (1,327)
Reinsurance transactions, tax-related items and other (2) 24 (78) (58) 2 - - 22 (735) - - (871)
Inorganic CSM Movement (399) 57 (103) 180 (421) 5 % 126 % (342) (1,962) 83 % 109 % (1,885)
Total CSM movement (97) 223 179 346 (207) 53 % 234 % 126 (1,137) - - (612)
CSM Closing Balance 18,103 18,200 17,977 17,798 17,452 4 % 3 % 18,103 17,452 4 % 3 % 17,977
Less: CSM attributed to non-controlling interests 680 733 694 712 741 (8)% (3)% 680 741 (8)% (3)% 694
CSM Closing Balance net of non-controlling interests (pre-tax) 17,423 17,467 17,283 17,086 16,711 4 % 3 % 17,423 16,711 4 % 3 % 17,283
Income tax (expense) recovery (2,546) (2,617) (2,624) (2,526) (2,487) (2)% (2,546) (2,487) (2)% (2,624)
CSM Closing Balance net of non-controlling interests (post-tax) 2 14,877 14,850 14,659 14,560 14,224 5 % 14,877 14,224 5 % 14,659
1 Unless otherwise specified, all balances include non-controlling interests.
2 This item is non-GAAP financial measure. For more information on non-GAAP and other financial measures see "Non-GAAP and Other Financial Measures" in the Notes to Readers section.
Page 8
FINANCIAL HIGHLIGHTS (CONT'D)
(Canadian $ in millions unless otherwise stated and per share information, unaudited)
2023 2023 2022 2022 2022 2023 Q2 2023 Q2 YTD YTD YTD 2023 YTD 2023 Fiscal
Q2 Q1 Q4 Q3 Q2 vs. vs. 2023 2022 vs. vs. 2022
2022 Q2 2022 Q2 YTD 2022 YTD 2022
AER CER AER CER
Annualized Premium Equivalents Sales
Asia 1,181 1,173 893 913 900 31 % 26 % 2,354 1,987 18 % 14 % 3,793
Canada 322 293 252 285 361 (11)% (11)% 615 724 (15)% (15)% 1,261
. 130 134 143 149 147 (12)% (15)% 264 307 (14)% (19)% 599
Total Annualized premium equivalents sales 1,633 1,600 1,288 1,347 1,408 16 % 12 % 3,233 3,018 7 % 4 % 5,653
Total Annualized premium equivalents sales CER 1,633 1,578 1,295 1,385 1,454 12 % 12 % 3,211 3,087 4 % 4 % 5,767
Insurance Sales 1
Asia 1,045 1,047 776 796 772 35 % 29 % 2,092 1,732 21 % 16 % 3,304
Canada 279 234 204 235 300 (7)% (7)% 513 552 (7)% (7)% 991
. 130 134 143 149 147 (12)% (15)% 264 307 (14)% (19)% 599
Total Insurance sales 1,454 1,415 1,123 1,180 1,219 19 % 15 % 2,869 2,591 11 % (26)% 4,894
Total Insurance sales CER 1,454 1,397 1,128 1,214 1,263 15 % 15 % 2,851 3,875 (26)% (26)% 5,003
1 Insurance sales consist of 100% of recurring premiums and 10% of both excess and single premiums.
Annuities Sales 2
Asia 1,092 917 900 952 1,086 1 % (2)% 2,009 2,095 (4)% (6)% 3,947
Canada 433 584 477 496 612 (29)% (29)% 1,017 1,723 (41)% (41)% 2,696
Total Annuities sales 1,525 1,501 1,377 1,448 1,698 (10)% (12)% 3,026 3,818 (21)% (22)% 6,643
Total Annuities sales CER 1,525 1,477 1,389 1,486 1,724 (12)% (12)% 3,002 3,833 (22)% (22)% 6,708
2 Annuities sales, including single premium accumulation products, in Asia is comprised of 100% regular premiums/deposits sales and 100% single premium/deposits sales.
New Business Contractual Service Margin (CSM) 3
Asia 432 301 324 340 328 32 % 26 % 733 645 14 % 9 % 1,309
Canada 57 46 47 44 47 21 % 21 % 103 108 (5)% (5)% 199
. 103 95 71 86 118 (13)% (17)% 198 230 (14)% (19)% 387
Total New business CSM 592 442 442 470 493 20 % 15 % 1,034 983 5 % 1 % 1,895
Total New business CSM CER 592 438 443 485 513 15 % 15 % 1,030 1,018 1 % 1 % 1,946
3 New Business CSM is net of non-controlling interests.
New Business Value ("NBV") 4
Asia 424 372 395 380 393 8 % 3 % 796 762 4 % (1)% 1,537
Canada 106 92 87 89 82 29 % 29 % 198 186 6 % 6 % 362
. 55 45 42 46 35 57 % 43 % 100 76 32 % 23 % 164
Total New business value 585 509 524 515 510 15 % 10 % 1,094 1,024 7 % 3 % 2,063
Total New business value CER 585 503 525 529 532 10 % 10 % 1,088 1,061 3 % 3 % 2,115
4 New Business Value is not calculated for Global Wealth and Asset Management businesses, Manulife Bank, and Property and Casualty Reinsurance business. Quarterly 2022 NBV has not
been restated as a result of the adoption of IFRS17. The impact of not restating 2022 is not material.
Page 9
FINANCIAL HIGHLIGHTS (CONT'D) Q4
(Canadian $ in millions unless otherwise stated and per share information, unaudited)
2023 2023 2022 2022 2022 2023 Q2 2023 Q2 YTD YTD YTD 2023 YTD 2023 Fiscal
Q2 Q1 Q4 Q3 Q2 vs. vs. 2023 2022 vs. vs. 2022
2022 Q2 2022 Q2 YTD 2022 YTD 2022
AER CER AER CER
Global Wealth and Asset Management Gross Flows by Business Line 1
Retirement 13,773 14,688 12,103 12,803 12,231 13 % 8 % 28,461 27,228 5 % (0)% 52,134
Retail 13,642 17,045 15,245 15,486 16,631 (18)% (21)% 30,687 37,018 (17)% (20)% 67,749
Institutional Asset Management 2 7,737 7,082 5,133 3,703 5,188 49 % 47 % 14,819 8,214 80 % 75 % 17,050
Total Global Wealth and Asset Management Gross flows 35,152 38,815 32,481 31,992 34,050 3 % (0)% 73,967 72,460 2 % (2)% 136,933
Global Wealth and Asset Management Gross Flows by Geographic Source 1
Asia 7,648 10,313 7,507 7,764 7,682 (0)% (2)% 17,961 14,886 21 % 19 % 30,157
Canada 5,797 6,119 5,917 4,777 6,518 (11)% (11)% 11,916 13,404 (11)% (11)% 24,098
. 3 21,707 22,383 19,057 19,451 19,850 9 % 4 % 44,090 44,170 (0)% (6)% 82,678
Total Global Wealth and Asset Management Gross flows 35,152 38,815 32,481 31,992 34,050 3 % (0)% 73,967 72,460 2 % (2)% 136,933
Total Global Wealth and Asset Management Gross flows CER 35,152 38,438 32,294 32,734 35,215 (0)% (0)% 73,590 74,998 (2)% (2)% 140,026
1 Gross flows includes inflows to Manulife-managed retail funds from externally-managed funds that are administered by our Retirement business as follows: $143 million for Q2 2023, $355 million for YTD 2023.
Global Wealth and Asset Management Net Flows by Business Line
Retirement 738 1,185 (4,557) 1,438 1,049 (30)% (32)% 1,923 3,043 (37)% (40)% (76)
Retail (113) 783 (4,681) 979 (1,877) 94 % 94 % 670 2,105 (68)% (68)% (1,597)
Institutional Asset Management 2 1,562 2,472 884 630 2,490 (37)% (37)% 4,034 3,348 20 % 16 % 4,862
Total Global Wealth and Asset Management Net flows 2,187 4,440 (8,354) 3,047 1,662 32 % 30 % 6,627 8,496 (22)% (25)% 3,189
Global Wealth and Asset Management Net Flows by Geographic Source
Asia (18) 2,811 1,394 1,888 1,707 - - 2,793 3,910 (29)% (31)% 7,192
Canada 702 1,273 (211) (98) 598 17 % 17 % 1,975 1,803 10 % 10 % 1,494
. 3 1,503 356 (9,537) 1,257 (643) - - 1,859 2,783 (33)% (36)% (5,497)
Total Global Wealth and Asset Management Net flows 2,187 4,440 (8,354) 3,047 1,662 32 % 30 % 6,627 8,496 (22)% (25)% 3,189
Total Global Wealth and Asset Management Net flows CER 2,187 4,374 (8,237) 3,131 1,678 30 % 30 % 6,561 8,706 (25)% (25)% 3,600
2 Includes the third party institutional business of Manulife Investment Management (“MIM”); includes derivative notional associated with the Company’s liability driven investment product (“LDI”);
and excludes assets managed on behalf of the Insurance businesses and the General Fund.
3 . business line includes Europe.
Assets Under Management and Administration 4
Asia 159,260 162,232 156,035 149,657 145,799 9 % 8 % 159,260 145,799 9 % 8 % 156,035
Canada 144,022 143,854 142,624 141,234 139,758 3 % 3 % 144,022 139,758 3 % 3 % 142,624
. 199,436 204,389 199,125 197,563 195,662 2 % (1)% 199,436 195,662 2 % (1)% 199,125
Global Wealth and Asset Management 5 819,571 814,503 782,340 751,346 746,763 10 % 8 % 819,571 746,763 10 % 8 % 782,340
Corporate and Other 22,550 24,902 20,978 23,319 25,805 (13)% (13)% 22,550 25,805 (13)% (13)% 20,978
Total Assets under management and administration 1,344,839 1,349,880 1,301,102 1,263,119 1,253,787 7 % 6 % 1,344,839 1,253,787 7 % 6 % 1,301,102
Total Assets under management and administration CER 1,344,839 1,323,050 1,274,693 1,231,676 1,272,734 6 % 6 % 1,344,839 1,272,734 6 % 6 % 1,274,693
4 This item is a non-GAAP financial measure.
5 Global Wealth and Asset Management managed AUMA as at June 30, 2023 is $ trillion and includes $ trillion of asset managed on behalf of other segments (see page 37).
Assets Under Management and Administration
Assets Under Management
General fund 403,428 412,476 400,142 396,583 391,098 3 % 403,428 391,098 3 % 400,142
Segregated funds excluding institutional advisory accounts 362,417 360,325 344,843 331,127 330,805 10 % 362,417 330,805 10 % 344,843
Mutual funds 267,835 267,768 258,273 249,591 250,517 7 % 267,835 250,517 7 % 258,273
Institutional asset management 6 116,055 117,499 113,459 104,592 101,095 15 % 116,055 101,095 15 % 113,459
Other funds 7 14,674 14,302 13,617 12,910 15,075 (3)% 14,674 15,075 (3)% 13,617
Total Assets under management 1,164,409 1,172,370 1,130,334 1,094,803 1,088,590 7 % 5 % 1,164,409 1,088,590 7 % 5 % 1,130,334
Assets under administration 180,430 177,510 170,768 168,316 165,197 9 % 7 % 180,430 165,197 9 % 7 % 170,768
Total Assets under management and administration 1,344,839 1,349,880 1,301,102 1,263,119 1,253,787 7 % 6 % 1,344,839 1,253,787 7 % 6 % 1,301,102
6 Institutional asset management includes Institutional segregated funds net assets.
7 Includes ETF assets and College Savings (529 plan).
Page 10
FINANCIAL HIGHLIGHTS (CONT'D) Q4
(Canadian $ in millions unless otherwise stated and per share information, unaudited)
2023 2023 2022 2022 2022 2023 Q2 YTD YTD YTD 2023 Fiscal
Q2 Q1 Q4 Q3 Q2 vs. 2023 2022 vs. 2022
2022 Q2 YTD 2022
Common Share Statistics
Share Price - Toronto (in Canadian $) 1
high (1)% (2)%
low 13 % 12 %
close 12 % 12 %
Share Price - New York (in $) 2
high (8)% (8)%
low 12 % 7 %
close 9 % 9 %
Common shares outstanding (millions)
- end of period 1,833 1,850 1,865 1,888 1,911 (4)% 1,833 1,911 (4)% 1,865
- weighted average 1,842 1,858 1,878 1,902 1,921 (4)% 1,850 1,929 (4)% 1,910
- diluted weighted average 1,846 1,862 1,881 1,904 1,924 (4)% 1,846 1,924 (4)% 1,913
Dividend per common share paid in the quarter 3 11 % 11 %
Common share dividend payout ratio 73% 50% 76% 142% nm - 59% nm - nm
Common share core dividend payout ratio 4 44% 46% 43% 49% 43% 1 pps 45% 45% 0 pps 46%
1 The share prices are based on all Canadian trading venues, including the Toronto Stock Exchange.
2 The share prices are based on all . trading venues, including the New York Stock Exchange.
3 On August 9, 2023, the Board of Directors approved quarterly shareholders’ dividend of cents per share on the common shares of the Company, payable on or after September 19, 2023 to shareholders of record at the close of business on August 23, 2023.
4 This item is a non-GAAP ratio.
Change in Common Shares Outstanding
Beginning Balance 1,865 1,865 1,888 1,911 1,929 1,865 1,943 1,943
Repurchased for cancellation (17) (16) (24) (23) (18) (33) (32) (79)
Issued under dividend reinvestment plans - - - - - - - -
Issued on exercise of stock options and deferred share units - 1 1 - - 1 - 1
Ending Balance 1,833 1,850 1,865 1,888 1,911 1,833 1,911 1,865
Valuation Data
Book value per common share 3 % 3 %
CSM balance per common share 4,5 9 % 9 %
Adjusted book value per common share 4,6 5 % 5 %
Market value to adjusted book value ratio 4,6 7 % 7 %
Book value excluding goodwill per common share 3 % 3 %
Adjusted book value excluding goodwill per common share 4,6 5 % 5 %
Market value to adjusted book value excluding goodwill ratio 4,6 7 % 7 %
Market capitalization ($ billions) 8 % 8 %
5 CSM balance is post-tax net of non-controlling interests.
6 Adjusted book value includes post-tax CSM net of non-controlling interests.
Capital Information
Consolidated capital 7 69,276 71,582 69,591 71,482 69,495 (0)% 69,276 69,495 (0)% 69,591
Financial leverage ratio 4,8 % % % % % pps % % pps %
LICAT Total Ratio - The Manufacturers Life Insurance Company 9 136% 138% 131% 136% 137% -1 pps 136% 137% -1 pps 131%
7 Consolidated capital includes total equity less AOCI on cash flow hedges, post-tax CSM and capital instruments. Total equity includes unrealized gains and losses on AFS bonds and AFS equities, net of taxes.
The net unrealized gain on AFS bonds, net of taxes, is no longer part of OSFI regulatory capital.
8 Financial leverage ratio is calculated as the sum of long-term debt, capital instruments, and preferred shares and other equity, divided by the sum of long-term debt, capital instruments, total equity, and post-tax CSM.
9 LICAT ratio is disclosed under OSFI’s Life Insurance Capital Adequacy Test Public Disclosure Requirements guideline. LICAT ratios for 2022 are on an IFRS4 basis.
Foreign Exchange Information 10
Statements of Financial Position
(CDN to $ 1 US) 3 %
(CDN to 1 YEN) (4)%
Statements of Income
(CDN to $ 1 US) 5 %
(CDN to 1 YEN) (1)%
10 Unless otherwise indicated, information contained in this supplement is in Canadian dollars. The exchange rates above are used for currency conversion from . dollars and Japanese yen to Canadian dollars for financial statement purposes.
Page 11
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Q4
(Canadian $ in millions, unaudited)
2023 2023 2022 2022 2022 2023 Q2 YTD YTD YTD 2023 Fiscal
Q2 Q1 Q4 Q3 Q2 vs. 2023 2022 vs. 2022
2022 Q2 YTD 2022
Insurance revenue
Expected incurred claims and other insurance service result 2,959 3,276 3,495 3,120 3,295 (10)% 6,235 6,405 (3)% 13,020
Change in risk adjustment for non-financial risk expired 402 315 468 349 425 (5)% 717 847 (15)% 1,664
CSM recognized for service provided 526 506 515 520 600 (12)% 1,032 1,263 (18)% 2,298
Recovery of insurance acquisition cashflows 202 179 161 140 127 59 % 381 233 64 % 534
Contracts under PAA 1,491 1,487 1,489 1,431 1,285 16 % 2,978 2,682 11 % 5,602
Insurance revenue 5,580 5,763 6,128 5,560 5,732 (3)% 11,343 11,430 (1)% 23,118
Insurance service expenses
Incurred claims and other insurance service expenses (4,508) (4,567) (4,986) (4,866) (4,306) (5)% (9,075) (9,403) 3 % (19,255)
Losses and reversal of losses on onerous contracts (future service) 24 (146) (71) (267) (177) - (122) (404) 70 % (742)
Changes to liabilities for incurred claims (past service) 405 309 533 548 359 13 % 714 866 (18)% 1,947
Amortization of insurance acquisition cashflows (413) (378) (370) (326) (314) (32)% (791) (589) (34)% (1,285)
Insurance service expenses (4,492) (4,782) (4,894) (4,911) (4,438) (1)% (9,274) (9,530) 3 % (19,335)
Allocation of reinsurance premium (1,596) (1,631) (1,628) (1,447) (1,473) (8)% (3,227) (2,949) (9)% (6,024)
Amounts recovered from reinsurers 1,395 1,499 1,355 1,247 1,214 15 % 2,894 2,799 3 % 5,401
Net expenses from reinsurance contract held (201) (132) (273) (200) (259) 22 % (333) (150) (122)% (623)
Total insurance service result 887 849 961 449 1,035 (14)% 1,736 1,750 (1)% 3,160
Investment income 4,135 3,520 4,271 3,832 3,531 17 % 7,655 7,101 8 % 15,204
Realized and unrealized gains (losses) on assets supporting insurance and 950 1,944 (2,453) (1,112) (5,685) - 2,894 (10,081) - (13,646)
investment contract liabilities
Investment expenses (266) (311) (378) (281) (300) 11 % (577) (562) (3)% (1,221)
Net investment income (loss) 4,819 5,153 1,440 2,439 (2,454) - 9,972 (3,542) - 337
Insurance finance income (expense) and effect of movement in foreign exchange rates (3,734) (3,778) (959) (2,961) (1,792) (108)% (7,512) (2,696) (179)% (6,616)
Reinsurance finance income (expense) and effect of movement in foreign exchange rates (331) (322) (653) 674 585 - (653) 288 - 309
Non-performance risk of reinsurers - - - - - - - - - -
Decrease (increase) in investment contract liabilities (157) (83) (104) (109) (36) (336)% (240) (186) (29)% (399)
Segregated fund related investment result - - - - - - - - - -
Investment income related to segregated fund net assets 11,278 17,613 18,963 (11,584) (41,471) - 28,891 (63,866) - (56,487)
Financial changes related to insurance and investment contract liabilities for account of
segregated fund holders (11,278) (17,613) (18,963) 11,584 41,471 - (28,891) 63,866 - 56,487
Total investment result 597 970 (276) 43 (3,697) - 1,567 (6,136) - (6,369)
Other revenue 1,691 1,691 1,671 1,547 1,446 17 % 3,382 2,968 14 % 6,186
General expenses (1,022) (1,086) (1,002) (914) (884) (16)% (2,108) (1,815) (16)% (3,731)
Commissions related to non-insurance contracts (336) (338) (320) (332) (323) (4)% (674) (681) 1 % (1,333)
Interest expense (381) (367) (337) (309) (233) (64)% (748) (405) (85)% (1,051)
Net income (loss) before income taxes 1,436 1,719 697 484 (2,656) - 3,155 (4,319) - (3,138)
Income tax (expense) recovery (265) (309) 226 (60) 553 - (574) 993 - 1,159
Net income (loss) net of income taxes 1,171 1,410 923 424 (2,103) - 2,581 (3,326) - (1,979)
Less: net income (loss) attributed to non-controlling interests 26 54 33 34 52 (50)% 80 54 48 % 121
Less: net income (loss) attributed to participating policyholders 120 (50) (25) (101) (36) - 70 (41) - (167)
Net income (loss) attributed to shareholders 1,025 1,406 915 491 (2,119) - 2,431 (3,339) - (1,933)
Preferred share dividends and other equity distributions (98) (52) (97) (51) (60) (63)% (150) (112) (34)% (260)
Common shareholders' net income (loss) 927 1,354 818 440 (2,179) - 2,281 (3,451) - (2,193)
Net Income (loss) attributed to shareholders 1,025 1,406 915 491 (2,119) - 2,431 (3,339) - (1,933)
Other comprehensive income (OCI)
Items that may be subsequently reclassified to net income:
Foreign exchange gains (losses) (1,094) 45 (124) 1,550 526 - (1,049) (86) nm 1,340
Net insurance finance income (expense) 1,613 (6,471) (2,571) 13,257 21,522 (93)% (4,858) 44,488 - 55,174
Net reinsurance finance income (expense) (311) 789 512 (2,143) (2,362) 87 % 478 (4,763) - (6,394)
Fair value through OCI investments (1,745) 5,882 1,669 (10,207) (15,915) 89 % 4,137 (33,869) - (42,407)
Cash flow hedges 38 (24) 26 30 22 73 % 14 108 (87)% 164
Cost of hedging 2 (9) - - - - (7) - - -
Share of other comprehensive income (losses) of associates - - 4 (9) 2 (100)% - 2 (100)% (3)
Total items that may be subsequently reclassified to net income (1,497) 212 (484) 2,478 3,795 - (1,285) 5,880 - 7,874
Total items that will not be reclassified to net income 9 (14) (1) (49) 53 (83)% (5) 66 - 16
Total other comprehensive income (loss) (1,488) 198 (485) 2,429 3,848 - (1,290) 5,946 - 7,890
Total comprehensive income (loss) attributed to shareholders (463) 1,604 430 2,920 1,729 - 1,141 2,607 (56)% 5,957
Page 12
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Canadian $ in millions, unaudited)
2023 2023 2022 2022 2022 2023 Q2
Q2 Q1 Q4 Q3 Q2 vs.
2022 Q2
ASSETS
Cash and short-term securities 21,018 18,775 19,153 20,943 21,015 0 %
Securities
Debt securities 203,324 212,366 203,842 201,358 199,756 2 %
Public equities 25,075 24,825 23,519 22,325 22,530 11 %
Loans
Mortgages 51,459 52,128 51,765 51,445 51,276 0 %
Private placements 42,584 43,771 42,010 41,050 40,259 6 %
Loans to Bank clients 2,632 2,706 2,781 2,799 2,782 (5)%
Real estate 13,426 14,041 14,269 15,106 14,672 (8)%
Other invested assets 43,910 43,864 42,803 41,557 38,808 13 %
Total invested assets 403,428 412,476 400,142 396,583 391,098 3 %
Accrued investment income 2,534 2,913 2,635 2,719 2,428 4 %
Derivatives 8,358 8,408 8,588 8,935 8,757 (5)%
Insurance contract assets 404 325 673 610 620 (35)%
Reinsurance contract held assets 43,386 46,148 45,871 46,612 46,283 (6)%
Deferred tax asset 6,863 6,766 6,708 6,310 6,859 0 %
Goodwill and intangible assets 10,310 10,499 10,519 10,071 9,802 5 %
Miscellaneous 10,047 10,543 9,991 10,795 9,641 4 %
Total other assets 81,902 85,602 84,985 86,052 84,390 (3)%
Segregated funds net assets 365,981 364,044 348,562 335,245 334,903 9 %
Total assets 851,311 862,122 833,689 817,880 810,391 5 %
LIABILITIES AND EQUITY
Insurance contract liabilities,
excluding those for account of segregated fund holders
358,413 367,851 354,857 350,486 348,160 3 %
Reinsurance contract held liabilities 2,480 2,405 2,391 2,198 1,779 39 %
Investment contract liabilities 10,557 10,545 10,079 10,031 10,000 6 %
Deposits from Bank clients 21,945 21,814 22,507 21,669 21,589 2 %
Derivatives 12,234 11,879 14,289 14,816 13,994 (13)%
Deferred tax liabilities 1,609 1,648 1,536 1,722 1,717 (6)%
Other liabilities 18,184 19,640 18,886 19,095 17,728 3 %
Long-term debt 6,090 6,228 6,234 6,320 5,931 3 %
Capital instruments 6,662 7,317 6,122 7,118 7,001 (5)%
Total liabilities,
excluding those for account of segregated fund holders
438,174 449,327 436,901 433,455 427,899 2 %
Insurance contract liabilities for account of segregated fund holders 112,529 113,497 110,216 107,302 107,961 4 %
Investment contract liabilities for account of segregated fund holders 253,452 250,547 238,346 227,943 226,942 12 %
Insurance and investment contract liabilities
for account of segregated fund holders
365,981 364,044 348,562 335,245 334,903 9 %
Total liabilities 804,155 813,371 785,463 768,700 762,802 5 %
Equity
Preferred shares and other equity instruments 6,660 6,660 6,660 6,660 6,660 0 %
Common shares 21,816 22,012 22,178 22,453 22,724 (4)%
Contributed surplus 233 235 238 262 262 (11)%
Shareholders' and other equity holders' retained earnings 4,027 4,009 3,947 4,065 4,506 (11)%
Shareholders' accumulated other comprehensive income (loss)
Insurance finance income (expense) 33,150 31,537 38,057 40,628 27,371 21 %
Reinsurance finance income (expense) (4,932) (4,621) (5,410) (5,922) (3,779) (31)%
Fair value through OCI investments (20,051) (18,306) (24,645) (26,318) (16,102) (25)%
Pension and other post-employment plans (103) (113) (97) (97) (48) (115)%
Cash flow hedges - (38) 8 (18) (48) 100 %
Cost of hedging 15 13 - - - -
Real estate revaluation reserve 23 24 22 23 23 0 %
Translation of foreign operations 4,869 5,963 5,918 6,042 4,492 8 %
Total shareholders' and other equity 45,707 47,375 46,876 47,778 46,061 (1)%
Participating policyholders' equity (17) (135) (77) (54) 55 -
Non-controlling interests 1,466 1,511 1,427 1,456 1,473 (0)%
Total equity 47,156 48,751 48,226 49,180 47,589 (1)%
Total liabilities and equity 851,311 862,122 833,689 817,880 810,391 5 %
Page 13
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Canadian $ in millions, unaudited)
2023 2023 2022 2022 2022 YTD YTD Fiscal
Q2 Q1 Q4 Q3 Q2 2023 2022 2022
Preferred shares and other equity
Balance, beginning of period 6,660 6,660 6,660 6,660 5,670 6,660 6,660 6,381
Issued - - - - 1,000 - 1,000 1,000
Redeemed - - - - - - (711) (711)
Issuance costs, net of tax - - - - (10) - (10) (10)
Balance, end of period 6,660 6,660 6,660 6,660 6,660 6,660 6,939 6,660
Common shares
Balance, beginning of period 22,012 22,178 22,453 22,724 22,933 22,178 23,093 23,093
Repurchased (206) (186) (279) (274) (214) (392) (385) (938)
Issued on exercise of stock options and deferred share units 10 20 4 3 5 30 16 23
Issued under dividend reinvestment and share purchase plans - - - - - - - -
Balance, end of period 21,816 22,012 22,178 22,453 22,724 21,816 22,724 22,178
Contributed surplus
Balance, beginning of period 235 238 262 262 262 238 262 262
Exercise of stock options and deferred share units (1) (4) (1) - (1) (5) (3) (4)
Stock option expense (1) 1 2 - 1 - 3 5
Acquisition of non-controlling interests - - (25) - - - - (25)
Balance, end of period 233 235 238 262 262 233 262 238
Shareholders' and other equity holders' retained earnings
Balance, beginning of period 4,009 3,947 4,065 4,506 7,533 3,947 23,492 23,492
Opening adjustments of insurance contracts at adoption of IFRS17 - - - - - - (3,191) (3,191)
Opening adjustments of financial assets at adoption of IFRS9/IFRS17 - (409) - - - (409) (10,645) (10,645)
Net income attributed to shareholders and other equity holders 1,025 1,406 915 491 (2,119) 2,431 (3,339) (1,933)
Common shares repurchased (237) (212) (273) (253) (214) (449) (420) (946)
Preferred share dividends and other equity distributions (98) (52) (97) (51) (60) (150) (112) (260)
Preferred shares redeemed - - - - - - (14) (14)
Common share dividends (672) (671) (620) (628) (634) (1,343) (1,265) (2,513)
Acquisition of non-controlling interests - - (43) - - - - (43)
Balance, end of period 4,027 4,009 3,947 4,065 4,506 4,027 4,506 3,947
Shareholders' accumulated other comprehensive income (loss)
Balance, beginning of period 14,459 13,853 14,338 11,909 8,061 13,853 5,180 5,180
Opening adjustments of insurance contracts at adoption of IFRS17 - - - - - - (16,133) (16,133)
Opening adjustments of financial assets at adoption of IFRS9/IFRS17 - 408 - - - 408 16,916 16,916
Other comprehensive income (loss)
Unrealized foreign exchange gains (losses) of net foreign operations, net of $158 hedges and tax expense of $16 (1,094) 45 (124) 1,550 526 (1,049) (86) 1,340
Net insurance finance expenses, net of tax expense of $320 1,613 (6,471) (2,571) 13,257 21,522 (4,858) 44,488 55,174
Net reinsurance finance income, net of tax recovery of $64 (311) 789 512 (2,143) (2,362) 478 (4,763) (6,394)
Fair value through OCI instruments unrealized gains (losses), net of tax recovery of $383 (1,829) 5,836 1,203 (10,472) (16,181) 4,007 (34,435) (43,704)
Fair value through OCI instruments realized (gains) losses & provision for credit losses , net of tax recovery of nil 84 46 466 265 266 130 566 1,297
Cash flow hedges unrealized gains (losses), net of tax expense of $7 28 (15) 18 19 50 13 124 161
Cash flow hedges realized (gains) losses, net of tax expense of $3 10 (9) 8 11 (28) 1 (16) 3
Cost of hedging unrealized (gains) losses, net of tax expense of $1 2 (9) - - - (7) - -
Remeasurement of pension and other post-employment plans, net of expense of $2 10 (16) - (49) 53 (6) 66 17
Real estate revaluation reserve, net of tax expense of nil (1) 2 (1) - - 1 - (1)
Share of other comprehensive income (loss) of associates, net of tax expense of nil - - 4 (9) 2 - 2 (3)
Balance, end of period 12,971 14,459 13,853 14,338 11,909 12,971 11,909 13,853
Total shareholders' and other equity, end of period 45,707 47,375 46,876 47,778 46,061 45,707 46,340 46,876
Participating policyholders' equity
Balance, beginning of period (135) (77) (54) 55 98 (77) (1,233) (1,233)
Opening adjustments of insurance contracts at adoption of IFRS17 - - - - - - 707 707
Opening adjustments of financial assets at adoption of IFRS9/IFRS17 - - - - - - 626 626
Net income (loss) attributed to participating policyholders 120 (50) (25) (101) (36) 70 (41) (167)
Other comprehensive income attributed to participating policyholders (2) (8) 2 (8) (7) (10) (4) (10)
Balance, end of period (17) (135) (77) (54) 55 (17) 55 (77)
Non-controlling interests
Balance, beginning of period 1,511 1,427 1,456 1,473 1,446 1,427 1,694 1,694
Opening adjustments of insurance contracts at adoption of IFRS17 - - - - - - (258) (258)
Opening adjustments of financial assets at adoption of IFRS9/IFRS17 - - - - - - - -
Net income (loss) attributed to non-controlling interests 26 54 33 34 52 80 54 121
Other comprehensive income (loss) attributed to non-controlling interests (67) 30 (58) (28) (23) (37) (18) (104)
Contributions (distributions and acquisition), net (4) - (4) (23) (2) (4) 1 (26)
Balance, end of period 1,466 1,511 1,427 1,456 1,473 1,466 1,473 1,427
Total equity, end of period 47,156 48,751 48,226 49,180 47,589 47,156 47,868 48,226
Page 14
Q4
(Canadian $ in millions, unaudited)
2023 2023 2022 2022 2022 2023 Q2 YTD YTD YTD 2023 Fiscal
Q2 Q1 Q4 Q3 Q2 vs. 2023 2022 vs. 2022
2022 Q2 YTD 2022
Operating activities
Net income (loss) 1,171 1,410 923 424 (2,103) - 2,581 (3,326) - (1,979)
Adjustments
Increase (decrease) in insurance contract liabilities (242) 6,162 3,448 2,333 839 - 5,920 2,750 115% 8,531
Increase (decrease) in investment contract liabilities 157 83 104 109 36 336 % 240 186 29% 399
(Increase) decrease in reinsurance contract assets excluding reinsurance tran 531 356 326 (294) (206) - 887 767 16% 799
Amortization of premium/discount on invested assets (50) 28 (49) (74) (15) (233)% (22) (8) -175% (131)
CSM amortization (472) (447) (456) (456) (508) 7 % (919) (1,081) 15% (1,993)
Other amortization 141 138 136 131 122 16 % 279 252 11% 519
Net realized and unrealized (gains) losses and impairments on assets (6) (1,863) (129) 1,457 7,223 - (1,869) 12,332 - 13,660
Gain on . variable annuity reinsurance transaction (pre-tax) - - (44) 39 - - - (1,065) 100% (1,070)
Gain on derecognition of Joint Venture interest during Manulife TEDA acquisi - - (95) - - - - - - (95)
Deferred income tax expense (recovery) 8 117 (538) 239 (984) - 125 (1,695) - (1,994)
Stock option expense (1) 1 2 - 1 - - 3 -100% 5
Cash provided by operating activities before undernoted items 1,237 5,985 3,628 3,908 4,405 (72)% 7,222 9,115 -21% 16,651
Changes in policy related and operating receivables and payables 4,557 (3,030) 1,370 601 311 nm 1,527 (617) - 1,354
Cash decrease due to . variable annuity reinsurance transaction - - (114) - - - - (1,263) 100% (1,377)
Cash provided by (used in) operating activities 5,794 2,955 4,884 4,509 4,716 23 % 8,749 7,235 21% 16,628
Investing activities
Purchases and mortgage advances (17,315) (22,286) (23,852) (26,029) (27,862) 38 % (39,601) (61,677) 36% (111,558)
Disposals and repayments 17,434 17,928 19,181 21,361 22,547 (23)% 35,362 52,865 -33% 93,407
Changes in investment broker net receivables and payables (145) 405 151 (101) (632) 77 % 260 (117) - (67)
Net cash increase (decrease) from sale (purchase) of subsidiary (1) - (182) - - - (1) - - (182)
Cash provided by (used in) investing activities (27) (3,953) (4,702) (4,769) (5,947) 100 % (3,980) (8,929) 55% (18,400)
Financing activities
Change in repurchase agreements and securities sold but not yet purchased (582) 152 (83) 365 142 - (430) 64 - 346
Issue of long-term debt - - - - - - - 946 -100% 946
Redemption of long-term debt - - - - - - - - - -
Issue of capital instruments - 1,194 - - - - 1,194 - - -
Redemption of capital instruments (600) - (1,000) - - - (600) - - (1,000)
Secured borrowings from securization transactions 174 194 (298) 187 257 (32)% 368 548 -33% 437
Changes in deposits from Bank clients, net 131 (686) 818 35 (155) - (555) 850 - 1,703
Lease payments (29) (11) (30) (28) (29) 0 % (40) (62) 35% (120)
Shareholders' dividends and other equity distributions (770) (723) (717) (679) (694) (11)% (1,493) (1,391) -7% (2,787)
Contributions from (distributions to) non-controlling interests, net (4) - (29) (23) (2) (100)% (4) 1 - (51)
Common shares repurchased (443) (398) (552) (527) (428) (4)% (841) (805) -4% (1,884)
Common shares issued, net 10 20 4 3 5 100 % 30 16 88% 23
Preferred shares and other equity issued, net - - - - 990 (100)% - 990 -100% 990
Preferred shares redeemed, net - - - - - - - (711) 100% (711)
Cash provided by (used in) financing activities (2,113) (258) (1,887) (667) 86 - (2,371) 446 - (2,108)
Cash and short-term securities
Increase (decrease) during the period 3,654 (1,256) (1,705) (927) (1,145) - 2,398 (1,248) - (3,880)
Effect of foreign exchange rate changes on cash and short-term securities (386) 11 (10) 634 216 - (375) (39) -862% 585
Balance, beginning of period 17,390 18,635 20,350 20,643 21,572 (19)% 18,635 21,930 -15% 21,930
Balance, end of period 20,658 17,390 18,635 20,350 20,643 0 % 20,658 20,643 0% 18,635
Cash and short-term securities
Beginning of period
Gross cash and short-term securities 18,775 19,153 20,943 21,015 22,236 (16)% 19,153 22,594 -15% 22,594
Net payments in transit, included in other liabilities (1,385) (518) (593) (372) (664) 109 % (518) (664) 22% (664)
Net cash and short-term securities, beginning of period 17,390 18,635 20,350 20,643 21,572 (19)% 18,635 21,930 -15% 21,930
End of period
Gross cash and short-term securities 21,018 18,775 19,153 20,943 21,015 0 % 21,018 21,015 0% 19,153
Net payments in transit, included in other liabilities (360) (1,385) (518) (593) (372) (3)% (360) (372) 3% (518)
Net cash and short-term securities, end of period 20,658 17,390 18,635 20,350 20,643 0 % 20,658 20,643 0% 18,635
CONSOLIDATED STATEMENTS OF CASH FLOWS
Page 15
ASIA Q4
(. $ in millions, unless otherwise stated, unaudited)
2023 2023 2022 2022 2022 2023 Q2 YTD YTD YTD 2023 Fiscal
Q2 Q1 Q4 Q3 Q2 vs. 2023 2022 vs. 2022
2022 Q2 YTD 2022
Income Statement
Insurance revenue
Expected incurred claims and other insurance service result 282 297 287 316 263 7 % 579 556 4 % 1,159
Change in risk adjustment for non-financial risk expired 123 125 116 119 126 (2)% 248 260 (5)% 495
CSM recognized for service provided 208 197 191 197 227 (8)% 405 473 (14)% 861
Recovery of insurance acquisition cashflows 103 89 80 72 70 47 % 192 133 44 % 285
Contracts under PAA 221 206 228 209 215 3 % 427 399 7 % 836
Insurance revenue 937 914 902 913 901 4 % 1,851 1,821 2 % 3,636
Insurance service expenses
Incurred claims and other insurance service expenses (433) (388) (352) (384) (359) (21)% (821) (668) (23)% (1,404)
Losses and reversal of losses on onerous contracts (future service) 39 (91) (29) (129) (107) - (52) (225) 77 % (383)
Changes to liabilities for incurred claims (past service) (16) (14) (18) (15) (25) 36 % (30) (45) 33 % (78)
Amortization of insurance acquisition cashflows (152) (131) (126) (115) (110) (38)% (283) (220) (29)% (461)
Insurance service expenses (562) (624) (525) (643) (601) 6 % (1,186) (1,158) (2)% (2,326)
Allocation of reinsurance premium (92) (81) (96) (77) (83) (11)% (173) (152) (14)% (325)
Amounts recovered from reinsurers 60 64 77 33 65 (8)% 124 97 28 % 207
Net expenses from reinsurance contract held (32) (17) (19) (44) (18) (78)% (49) (55) 11 % (118)
Total insurance service result 343 273 358 226 282 22 % 616 608 1 % 1,192
Investment income 777 698 710 720 819 (5)% 1,475 1,572 (6)% 3,002
Realized and unrealized gains (losses) on assets supporting insurance and 948 824 (873) (216) (403) - 1,772 (849) - (1,938)
investment contract liabilities
Investment expenses (18) (16) (21) (19) (19) 5 % (34) (33) (3)% (73)
Net investment income (loss) 1,707 1,506 (184) 485 397 330 % 3,213 690 366 % 991
Insurance finance income (expense) and effect of movement in foreign exchange rates (1,897) (1,291) 484 (658) (755) (151)% (3,188) (1,139) (180)% (1,313)
Reinsurance finance income (expense) and effect of movement in foreign exchange rates 104 (35) (370) 163 153 (32)% 69 177 (61)% (30)
Interest on required surplus 34 35 29 30 30 13 % 69 61 13 % 120
Non-performance risk of reinsurers - - - - - - - - - -
Decrease (increase) in investment contract liabilities (19) (4) 9 (8) (19) 0 % (23) (57) 60 % (56)
Segregated fund related investment result - - - - - - - - - -
Investment income related to segregated fund net assets 565 500 348 (707) (1,886) - 1,065 (2,965) - (3,324)
Financial changes related to insurance and investment contract liabilities for account of
segregated fund holders (565) (500) (348) 707 1,886 - (1,065) 2,965 - 3,324
Total investment result (71) 211 (32) 12 (194) 63 % 140 (268) - (288)
Other revenue 36 7 11 36 24 50 % 43 (5) - 42
General expenses (46) (35) (32) (67) (68) 32 % (81) (136) 40 % (235)
Commissions related to non-insurance contracts (2) (1) (3) (2) (4) 50 % (3) (7) 57 % (12)
Interest expense (2) (2) (6) (1) (1) (100)% (4) (2) (100)% (9)
Net income (loss) before income taxes 258 453 296 204 39 562 % 711 190 274 % 690
Income tax (expense) recovery (68) (78) (75) (33) (79) 14 % (146) (136) (7)% (244)
Net income (loss) net of income taxes 190 375 221 171 (40) - 565 54 946 % 446
Less: net income (loss) attributed to non-controlling interests 19 40 25 25 41 (54)% 59 42 40 % 92
Less: net income (loss) attributed to participating policyholders 75 (49) (35) (70) (40) - 26 (57) - (162)
Net income (loss) attributed to shareholders 96 384 231 216 (41) - 480 69 596 % 516
Net income (loss) attributed to shareholders CER 96 384 240 233 (8) - 480 169 184 % 642
Page 16
ASIA Q4
(. $ in millions, unless otherwise stated, unaudited)
2023 2023 2022 2022 2022 2023 Q2 2023 Q2 YTD YTD YTD 2023 YTD 2023 Fiscal
Q2 Q1 Q4 Q3 Q2 vs. vs. 2023 2022 vs. vs. 2022
2022 Q2 2022 Q2 YTD 2022 YTD 2022
AER CER AER CER
Shareholders' Earnings Analysis
Hong Kong 161 159 153 127 184 (13)% (13)% 320 388 (18)% (18)% 668
Japan 81 62 76 71 81 0 % 7 % 143 161 (11)% (2)% 308
Asia Other 119 137 126 102 93 28 % 27 % 256 191 34 % 35 % 419
International High Net Worth 75
China 29
Singapore 136
Vietnam 109
Other Emerging Markets 70
Regional Office (8) 3 10 (4) (5) (60)% (60
