This earnings news release for Manulife Financial Corporation ('Manulife' or the 'Company') should be read in conjunction with the Company's Second Quarter 2021 Report to Shareholders, including our unaudited interim Consolidated Financial Statements for the three and six months ended June 30, 2021, prepared in accordance with International Financial Reporting Standards ('IFRS') as issued by the International Accounting Standards Board ('IASB'), which are available on our website at www.manulife.com/en/investors/results-and-reports. Additional information relating to the Company is available on the SEDAR website at http://www.sedar.com and on the U.S. Securities and Exchange Commission's ('SEC') website at http://www.sec.gov.
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◾
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Net income attributed to shareholders of $2.6 billion in 2Q21, up $1.9 billion from the second quarter of 2020 ('2Q20')
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◾
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Core earnings1 of $1.7 billion in 2Q21, up 18% on a constant exchange rate basis2 from 2Q20
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◾
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Core ROE1 of 13.9% and ROE of 22.2% in 2Q21
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◾
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NBV1 of $550 million in 2Q21, up 57% from 2Q20
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◾
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APE sales1 of $1.4 billion in 2Q21, up 30% from 2Q20
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◾
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Global Wealth and Asset Management ('Global WAM') net inflows1 of $8.6 billion in 2Q21, compared with net inflows of $5.1 billion in 2Q20
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◾
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Strong LICAT ratio3 of 137%
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◾
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Expense efficiency ratio1 of 46.8%, compared with our target of consistently achieving less than 50%
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1 |
Core earnings, core return on common shareholders' equity ('core ROE'), new business value ('NBV'), annualized premium equivalent ('APE') sales, net flows, expense efficiency ratio and core EBITDA margin are non-GAAP measures. See 'Performance and non-GAAP Measures' below and in our Second Quarter 2021 Management's Discussion and Analysis ('2Q21 MD&A') for additional information.
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2 |
All percentage growth / declines in financial metrics in this news release are reported on a constant exchange rate basis. Constant exchange rate basis excludes the impact of currency fluctuations and is a non-GAAP measure. See 'Performance and non-GAAP measures' below and in our 2Q21 MD&A for additional information.
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3 |
Life Insurance Capital Adequacy Test ('LICAT') ratio of The Manufacturers Life Insurance Company ('MLI').
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4 |
Relationship Net Promotor Score.
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5 | In 2021, we adjusted the weightings in our relationship NPS methodology to more closely align with our focus on our highest potential businesses. This adjustment had no impact on the 2017 NPS baseline of +1 and would have modestly increased the score in 2018, 2019, and 2020. |
1 |
Global WAM managed assets under management and administration includes assets managed by Global WAM for the Company's other segments of $235 billion as at June 30, 2021. Assets under management and administration ('AUMA') is a non-GAAP measure. See 'Performance and non-GAAP measures' below and in our 2Q21 MD&A for additional information.
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2 |
Investment performance for the 3- and 5- year period ending June 30, 2021 reflects 74% and 79%, respectively, of assets outperforming their peers or their respective index, and is based on assets under management of $606 billion. The $606 billion represents Global WAM managed AUMA excluding 3rd party products, liability-driven invested assets, Private Markets strategies, and passive strategies, as well as certain assets managed on behalf of the Company's other segments and select Retirement assets in Canada.
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Quarterly Results
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YTD Results
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($ millions, unless otherwise stated)
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2Q21
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2Q20
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2021
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2020
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Profitability:
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Net income attributed to shareholders
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$
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2,646
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$
|
727
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$
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3,429
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$
|
2,023
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Core earnings(1) |
$
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1,682
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$
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1,561
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$
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3,311
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$
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2,589
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Diluted earnings per common share ($)
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$
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1.33
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$
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0.35
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$
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1.71
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$
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1.00
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Diluted core earnings per common share ($)(1) |
$
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0.83
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$
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0.78
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$
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1.65
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$
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1.29
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Return on common shareholders' equity ('ROE')
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22.2
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%
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5.5
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%
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14.3
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%
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7.9
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%
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Core ROE(1) |
13.9
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%
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12.2
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%
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13.8
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%
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10.2
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%
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Expense efficiency ratio(1) |
46.8
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%
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48.9
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%
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47.7
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%
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53.9
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%
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Performance:
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Asia new business value
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$
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399
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$
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298
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$
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876
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$
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654
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Canada new business value
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$
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76
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$
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46
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$
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154
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$
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123
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U.S. new business value
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$
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75
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$
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40
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$
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119
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$
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76
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Total new business value(1) |
$
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550
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$
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384
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$
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1,149
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$
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853
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Asia APE sales
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$
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950
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$
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784
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$
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2,230
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$
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1,868
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Canada APE sales
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$
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274
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$
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238
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$
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629
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$
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614
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U.S. APE sales
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$
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191
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$
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154
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$
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341
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$
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295
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Total APE sales(1) |
$
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1,415
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$
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1,176
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$
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3,200
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$
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2,777
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Global Wealth and Asset Management net flows ($ billions)(1) |
$
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8.6
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$
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5.1
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$
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10.0
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$
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8.3
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Global Wealth and Asset Management gross flows ($ billions)(1) |
$
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33.7
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$
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33.1
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$
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73.4
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$
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71.2
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Global Wealth and Asset Management assets under management and administration ($ billions)(1) |
$
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798.5
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$
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696.9
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$
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798.5
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$
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696.9
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Financial Strength:
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MLI's LICAT ratio
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137
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%
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155
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%
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137
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%
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155
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%
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Financial leverage ratio
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25.9
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%
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26.0
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%
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25.9
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%
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26.0
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%
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Book value per common share ($)
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$
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24.76
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$
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25.14
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$
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24.76
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$
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25.14
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Book value per common share excluding AOCI ($)
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$
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22.89
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$
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20.36
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$
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22.89
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$
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20.36
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(1) |
This item is a non-GAAP measure. See 'Performance and non-GAAP measures' below and in our 2Q21 MD&A for additional information.
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1 |
Average assets under management and administration ('average AUMA') and core investment gains are non-GAAP measures. See 'Performance and non-GAAP measures' below and in our 2Q21 MD&A for additional information.
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1 |
Asia Other excludes Japan and Hong Kong.
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2 |
Gross flows is a non- GAAP measures. See 'Performance and non-GAAP measures' below and in our 2Q21 MD&A for additional information.
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Media Inquiries
Cheryl Holmes
(416) 557-0945
Cheryl_Holmes@manulife.com |
Investor Relations:
Hung Ko
(416) 806-9921
Hung_Ko@manulife.com |
Quarterly Results
|
YTD Results
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($ millions)
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2Q21
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1Q21
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2Q20
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2021
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2020
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Core earnings(1) | ||||||||||||||||||||
Global Wealth and Asset Management
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$
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356
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$
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312
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$
|
238
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$
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668
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$
|
488
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Asia
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526
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570
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489
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1,096
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980
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Canada
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318
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264
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342
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582
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579
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U.S.
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478
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501
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602
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979
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1,018
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Corporate and Other (excluding core investment gains)
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(96
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)
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(118
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)
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(110
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)
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(214
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)
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(476
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)
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Core investment gains(1) |
100
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100
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-
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200
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-
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Total core earnings
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$
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1,682
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$
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1,629
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$
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1,561
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$
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3,311
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$
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2,589
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Items excluded from core earnings:
Investment-related experience outside of core earnings
|
739
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77
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(916
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)
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816
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(1,524
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)
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Direct impact of equity markets and interest rates and variable annuity guarantee liabilities
|
217
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(835
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)
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73
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(618
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)
|
865
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Reinsurance transactions
|
8
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8
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9
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16
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21
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Restructuring charge
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-
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(115
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)
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-
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(115
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)
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-
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Tax-related items and other
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-
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19
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-
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19
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72
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Net income attributed to shareholders
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$
|
2,646
|
$
|
783
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$
|
727
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$
|
3,429
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$
|
2,023
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(1) |
This item is a non-GAAP measure. See 'Performance and non-GAAP Measures' below and in our 2Q21 MD&A for additional information.
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Disclaimer
Manulife Financial Corporation published this content on 04 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2021 22:23:37 UTC.