Manulife Financial : Fourth Quarter and Full Year 2020

Financial & Operating Results

February 11, 2021

Fourth Quarter and Full Year 2020

Caution regarding forward-looking statements

From time to time, Manulife makes written and/or oral forward-looking statements, including in this presentation. In addition, our representatives may make forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the "safe harbour" provisions of Canadian provincial securities laws and the U.S. Private Securities Litigation Reform Act of 1995.

The forward-looking statements in this presentation include, but are not limited to, statements with respect to our business continuity plans and measures implemented in response to the COVID-19 pandemic and its expected impact on our businesses, operations, earnings and results; the Company's strategic priorities and 2022 targets for net promoter score, employee engagement, its high potential businesses, expense efficiency and portfolio optimization; and its medium-term targets for core EPS growth, core ROE, leverage ratio and common share dividend payout ratio; near-term core earnings run-rate; our invested asset portfolio strategy and performance; and also relate to, among other things, our objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and can generally be identified by the use of words such as "will", "expect", "estimate", "believe", "plan", "objective", "continue", and "goal", (or the negative thereof) and words and expressions of similar import, and include statements concerning possible or assumed future results. Although we believe that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements and they should not be interpreted as confirming market or analysts' expectations in any way.

Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from expectations include but are not limited to: general business and economic conditions (including but not limited to the performance, volatility and correlation of equity markets, interest rates, credit and swap spreads, currency rates, investment losses and defaults, market liquidity and creditworthiness of guarantors, reinsurers and counterparties); the severity, duration and spread of the COVID-19 outbreak, as well as actions that may be taken by governmental authorities to contain COVID-19 or to treat its impact; changes in laws and regulations; changes in accounting standards applicable in any of the territories in which we operate; changes in regulatory capital requirements applicable in any of the territories in which we operate; our ability to execute strategic plans and changes to strategic plans; downgrades in our financial strength or credit ratings; our ability to maintain our reputation; impairments of goodwill or intangible assets or the establishment of provisions against future tax assets; the accuracy of estimates relating to morbidity, mortality and policyholder behaviour; the accuracy of other estimates used in applying accounting policies, actuarial methods and embedded value methods; our ability to implement effective hedging strategies and unforeseen consequences arising from such strategies; our ability to source appropriate assets to back our long-dated liabilities; level of competition and consolidation; our ability to market and distribute products through current and future distribution channels; unforeseen liabilities or asset impairments arising from acquisitions and dispositions of businesses; the realization of losses arising from the sale of investments classified as available-for-sale; our liquidity, including the availability of financing to satisfy existing financial liabilities on expected maturity dates when required; obligations to pledge additional collateral; the availability of letters of credit to provide capital management flexibility; accuracy of information received from counterparties and the ability of counterparties to meet their obligations; the availability, affordability and adequacy of reinsurance; legal and regulatory proceedings, including tax audits, tax litigation or similar proceedings; our ability to adapt products and services to the changing market; our ability to attract and retain key executives, employees and agents; the appropriate use and interpretation of complex models or deficiencies in models used; political, legal, operational and other risks associated with our non-North American operations; acquisitions or divestitures, and our ability to complete transactions; environmental concerns; our ability to protect our intellectual property and exposure to claims of infringement; and our inability to withdraw cash from subsidiaries.

Additional information about material risk factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in our 2020 Management's Discussion and Analysis under "Risk Factors and Risk Management" and "Critical Actuarial and Accounting Policies" and in the "Risk Management" note to the Consolidated Financial Statements for the year ended December 31, 2020 as well as elsewhere in our filings with Canadian and U.S. securities regulators. The forward-looking statements in this presentation are, unless otherwise indicated, stated as of the date hereof and are presented for the purpose of assisting investors and others in understanding our financial position and results of operations, our future operations, as well as our objectives and strategic priorities, and may not be appropriate for other purposes. We do not undertake to update any forward-looking statements, except as required by law.

Conference Call Participants
Roy Gori,	Rahim Hirji
President & Chief Executive Officer.	Chief Risk Officer.
Mike Doughty,	Naveed Irshad,
General Manager, Canada.	Head of North American Legacy Business.
Steve Finch,	Paul Lorentz,
Chief Actuary.	President & CEO, Global Wealth and Asset Management.
Marianne Harrison,	Anil Wadhwani,
General Manager, U.S.	General Manager, Asia.
Scott Hartz,	Phil Witherington,
Chief Investment Officer.	Chief Financial Officer.

Agenda

• • Overview and strategic update

  Roy Gori, President & Chief Executive Officer

• • Financial and operating results

  Phil Witherington, Chief Financial Officer

• • Question & Answer session

Overview and strategic update

Roy Gori,

President & Chief Executive Officer

Full year 2020 financial highlights

Note: Comparison to full year 2019. Percentage changes in net income attributed to shareholders, core earnings, APE Sales, and Total AUMA are stated on a constant exchange rate basis, a Non-GAAP measure. See "Performance and Non-GAAP Measures" below.

1Life Insurance Capital Adequacy Test (LICAT) Total Ratio of The Manufacturers Life Insurance Company (MLI) as at December 31, 2020. 2Total Assets Under Management and Administration as at December 31, 2020.

Delivered solid results in 2020 across all metrics, in light of the challenging environment

Net income attributed to	Annual Dividend
Core earnings	New business value
shareholders	(C$ billions)	(C$ per share)
(C$ billions)
(C$ billions)
+14% CAGR-9%	+19% CAGR-13%

+4%

+12%

2016

2017

2018

2019

2020

2016

2017

2018

2019

2020

2016

2017

2018

2019

2020

2016

2017

2018

2019

Note: Percentage changes in net income attributed to shareholders, core earnings and new business value are stated on a constant exchange rate basis, a Non-GAAP measure. See "Performance and Non-GAAP Measures" below.

1 Reflects the charge in 2017 related to the impact of U.S. Tax Reform, and changes to the portfolio asset mix backing certain legacy businesses.

2020

Our Global WAM business performed very well in 2020, AUMA grew by 12% and our Core EBITDA margin continued to expand and reached 29.2%

Strong growth in assets under management &administration across all global business lines…

RetirementRetailInstitutional

(C$ billions)1

+12%

2016

…and a resilient core EBITDA margin

Core EBITDA1,2 C$ millions

Core EBITDA2

Margin (%)

2,000 1,800

29.2%

2017

2018

2019

2020

1,600

1,400

1,200

1,000

800

600

400

200

0

2018

2016

2017

2019

2020

Note: Percentage change in assets under management and administration is stated on a constant exchange rate basis, a Non-GAAP measure. See "Performance and Non-GAAP Measures" below.

• 1 Global WAM AUMA and core EBITDA for 2016 and 2017 have been updated to reflect changes in reporting.

• 2 Core EBITDA and core EBITDA margin are non-GAAP measures. See "Performance and Non-GAAP Measures" below.

32 28 24 20 16 12 8 4 0

The diversity of Manulife's Asia business was a key factor in the resilience that we demonstrated throughout 2020

Solid Core Earnings growth fueled by

Hong Kong and Asia OtherRobust NBV contribution from

Asia Other showcases the emerging market opportunity

JapanAsia OtherHong Kong

Note: Percentage changes in core earnings and new business value are stated on a constant exchange rate basis, a Non-GAAP measure. See "Performance and Non-GAAP Measures" below. Order of the vertical bars on the chart correspond to the order in the legend.

-90 20161

-137 20171

-126

-124

-119

2018

2019

2020

2016

2017

1 Restated for the change in reporting segments effective March 31, 2018.

(US$ millions)

Hong Kong NBV margin in line with industry leaders and Asia Other NBV margin trending upwards as we scale

JapanAsia OtherHong Kong

(%)

22%

2018

2019

2020

2016

2017

2018

2019

2020

Manulife Asia emerged from 2020 in a stronger position, with higher market rankings in 6 markets; Manulife is ranked in the "Top 5" in 7 markets in Asia

APE Sales

Rank

▲

Agency

• • +21% growth in Agency Headcount in 2020; >115,000 insurance agents

Hong Kong

Hong Kong MPF1

#5 #1

▲2 -

Agency APE Sales Rank:China2

Top 3

▲1

#1 in #1 in Vietnam Cambodia

Top 3 in China2

#3 in Hong Kong

#3 in Indonesia

Singapore

#3

▼1

Bancassurance

• • 9 exclusive bank partners gives us access to 16 million customers

  Vietnam

  #1

  -

  • • Including VietinBank4: 10 exclusive bank partners and access to 30 million customers

  • • Early extension of bancassurance agreement with PT Bank Danamon Indonesia to 2036

  Indonesia

  Malaysia

  #8 #8

  ▲1 ▲1

• • >100 bank partners

Cambodia

#1

▲1

PhilippinesJapan3

#4 #4

▲1

Bancassurance APE Sales Rank:

-

#1 in	#1 in	#2 in	#7 in	#8 in
Singapore	Cambodia	Vietnam	Indonesia	Hong Kong

Sources: Data published by local regulators, competitors and insurance associations and informal (industry exchange) market share data

Note: APE Sales information is as of 3Q20 YTD except for Philippines which is based on FY2019. Myanmar started operations in 2H20. APE Sales is a Non-GAAP financial measure. See "Performance and Non-GAAP Measures" below

1 Hong Kong MPF based on net flows. 2 China pertains to agency business (foreign insurers only). 3 Rankings are based on foreign players only. 4 The exclusive bancassurance agreement with VietinBank is pending regulatory approval.

Full year 2020 strategic update

Progress update

• • Released a total of $5.9 billion of capital through portfolio optimization initiatives since 2018,including $780 million in 2020

• • Achieved 2022 target three years ahead of schedule

• • Core general expenses1 declined by 3%2 in 2020 compared with 2019

• • Expense Efficiency ratio of 52.9% in 2020

• • Delivered cumulative expense efficiencies of $1.0 billion in 2020, two years ahead of schedule

• • Highest potential businesses contributed 66% to core earnings in 2020, vs. 57% in 2019

• • Entered an exclusive 16-year bancassurance partnership with VietinBank3 and extended our bancassurance agreement with PT Bank Danamon Indonesia to 2036

• • Increased the number of insurance agents in Asia by 21% in 2020 (>115,000)

• • Completed the formation of our joint venture with Mahindra Finance in India

• • rNPS score of +12, 11 point improvement from 2017 baseline and 4 point improvement from 2019

• • Invested over $650 million in digital capabilities since 2018

• • Ranked in the 80th percentile amongst global financial services and insurance peers on our 2020 employee engagement survey

High Performing Team

• • Named a World's Best Employer by Forbes, ranked in the top 100 best employers globally

• • Committed to invest more than $3.5 million to promote diversity, equity and inclusion in our workplace and communities we serve

Note: See "Caution regarding forward-looking statements" above. Please refer to "Strategic priorities progress update" in our 2020 Management's Discussion and Analysis.

1 Core general expenses are general expenses included in core earnings ("core expenses"). 2 Percentage change in core expenses is stated on a constant exchange rate basis, a Non-GAAP measure. See "Performance and Non-GAAP Measures" below. 3 Subject to regulatory approval.

Summary

Demonstrated Manulife's resilience and delivered solid results in 2020

Our strategy is sound and our five strategic priorities have not changed

Manulife is in a position of strength and we remain committed to our medium-term financial targets

The importance of insurance has been heightened by the pandemic, for both health protection and financial planning

Manulife is set up for success as the global economy transitions to recovery and we continue to focus on execution

Financial and operating results

Phil Witherington,

Chief Financial Officer

4Q20 and full year 2020 financial summary

Fourth Quarter	Full Year
(C$ millions, unless noted)	4Q19	4Q20	Change2	2019	2020	Change2
Profitability	Net income attributed to shareholders	$1,228	$1,780	▲ 44%	$5,602	$5,871	▲ 4%
Core earnings	$1,477	$1,474	In line	$6,004	$5,516	▼ 9%
Core return on equity (annualized)	12.5%	11.6%	▼ 0.9 pps	13.1%	10.9%	▼ 2.2 pps
Expense efficiency ratio	54.2%	52.7%	▼ 1.5 pps	52.0%	52.9%	▲ 0.9 pps
Growth	APE sales (C$ billions)	$1.5	$1.4	▼ 5%	$6.0	$5.6	▼ 8%
New business value	$526	$489	▼ 7%	$2,050	$1,802	▼ 13%
Global WAM net flows (C$ billions)	$4.9	$2.8	▼ $2.1	$(0.9)	$8.9	▲ $9.8
Global WAM AUMA (C$ billions)	$681	$754	▲ 12%	$681	$754	▲ 12%
Global WAM average AUMA (C$ billions)	$668	$733	▲ 10%	$651	$698	▲ 6%
Balance Sheet	MLI's LICAT total ratio1	140%	149%	▲ 9 pps	140%	149%	▲ 9 pps
Financial leverage ratio	25.1%	26.6%	▲ 1.5 pps	25.1%	26.6%	▲ 1.5 pps
Remittances (C$ billions)	$2.8	$1.6	▼ 43%
Dividend per common share	25.0¢	28.0¢	▲ 12%	$1.00	$1.12	▲ 12%

1 Life Insurance Capital Adequacy Test Ratio of The Manufacturers Life Insurance Company (MLI). 2 Percentage changes in net income, core earnings, core expenses, APE sales, new business value, and AUMA, are stated on a constant exchange rate basis, a Non-GAAP measure. See "Performance and Non-GAAP Measures" below.

Delivered core earnings of $5.5 billion and net income of $5.9 billion in 2020, a strong outcome given the challenging backdrop

Core earnings	Net income attributed to	Earnings reconciliation for the fourth quarter of 2020
(C$ millions)	shareholders	(C$ millions, except per share amounts)
(C$ millions)
In line

Post-Tax

1,477

1,474

4Q19

4Q20

4Q19

4Q20

-9%

Core earnings before core investment gains

Core investment gains

Core earnings

Investment-related experience Direct impact of interest rates Direct impact of equity markets Reinsurance transactions

Net income attributed to shareholders

Per Share

$1,474

$0.74

-

-

$1,474 $0.74

585 0.30

(674) (0.34)

351 0.18

44 0.01

$1,780

$0.89

2019

2020

2019

2020

Solid core earnings driven by in-force growth, lower expenses, and higher fee income from higher average AUMA in Global WAM

Source of earnings1

(C$ millions)

286

Expected profit from in-force business Impact of new business

Core investment gains

Experience gains (losses) (excluding core investment gains) Management actions and changes in assumptions Earnings on surplus funds

128

285 -

286 128

285 -

(143)

(57)

(659) (248)

12

8

62 234

186

154

235 317

Other

42

48

47 52

Insurance

Global Wealth and Asset Management Manulife Bank

1,523

1,518

1,111 1,720

294

361

294 361

51

65

51 65

Unallocated overhead Income before income taxes Income tax (expense) recovery Earnings available to shareholders

(129)

(177)

(129) (177)

(262) 1,477

1,739

(293) 1,474

1,767

(99) 1,228

1,327

1,969 (189) 1,780

• • In-force growth driven by Asia and the U.S.

• • Impact of new business reflects favourable product mix in Hong Kong and Vietnam, offset by lower sales volumes in Canada Individual Insurance and U.S. International

• • Absence of core investment gains

• • Unfavourable policyholder experience in

  4Q20 driven by losses in U.S. Life, partially offset by gains in U.S. LTC and Canada Long-Term Disability

• • Lower earnings on surplus driven by lower yields and change in asset mix, partially offset by higher average asset levels and gains on seed money investments

• • Higher earnings in Global WAM driven by higher average asset levels

1 The Source of Earnings (SOE) analysis is prepared following OSFI regulatory guidelines and draft guidelines of the Canadian Institute of Actuaries. The SOE is used to identify the primary sources of gains or losses in each reporting period. The expected profit from in-force business denominated in foreign currencies is translated at the current quarter's statement of income rate.

Double-digit core earnings growth in Global WAM, Asia, and Canada in 4Q20

Core earnings

(C$ millions)

4Q194Q20

20192020

+16%

+4%

+5%

Global WAM

Asia

Canada

U.S.

(863)
(196)
Corporate	Corporate
and Other	and Other

Global WAM

Asia

Canada

U.S.

Modest decline in NBV and APE sales in light of the challenging sales environment

New business value (NBV)

(C$ millions)

APE sales

(C$ millions)

-7%526

4Q19

U.S.CanadaAsia

-5%1,495

-8%6,037

4Q20

2019

2020

4Q19

4Q20

2019

U.S.CanadaAsia

• • 4Q20 NBV decreased by 7% primarily driven by lower sales volumes in Hong Kong and less favourable product mix in Japan

• • 4Q20 APE sales decreased by 5% primarily driven by the U.S. and Canada

• • Modest increase in 4Q20 Asia APE sales driven by growth in Japan and Asia Other, partially offset by lower sales in Hong Kong

2020

Note: New business value and APE sales exclude Global Wealth and Asset Management, the Bank and P&C reinsurance businesses. Percentage changes are stated on a constant exchange rate basis, a Non-GAAP measure. See "Performance and Non-GAAP Measures" below. Order of the vertical bars on the chart correspond to the order in the legend.

Delivered strong Global WAM net inflows of $8.9 billion in 2020

Global WAM net flows by business line

(C$ billions)

2.0

RetirementRetailInstitutional

Global WAM net flows by geography

(C$ billions)

4.9 1.0 0.2

2.8

2.2

3.7

2.2

8.93

AsiaCanadaU.S.1

3.9

(5.8)

(1.6)

(0.9)2

4Q19

4Q20

2019

2020

4Q19

4Q20

2019

2020

• • Lower 4Q20 net inflows driven by outflows in U.S. Institutional and Retirement, partially offset by higher Retail gross flows across all geographies and lower redemptions in Asia Institutional and Canada Retirement

Note: Order of the vertical bars on the chart correspond to the order in the legend.

1 U.S. business line includes Europe. 2 Includes an $8.5 billion redemption due to the decision by one institutional client in Canada to internalize the management of several large, primarily fixed income, mandates in 3Q19. 3 Includes the funding of a $6.9 billion mandate from a new Canadian institutional client in 2Q20 and $5.0 billion redemption of an equity mandate in Institutional Asset Management in the U.K. in 3Q20.

Record high Global WAM average AUMA and strong Core EBITDA margin

Average Global WAM AUMA

(C$ billions)

+10%

+6%

4Q19

4Q20

2019

Core EBITDA margin

(%)

+340 bps

2020

4Q19

4Q20

• • Increase in 4Q20 average Global WAM AUMA driven by favourable market impacts and net inflows

• • Increase in 4Q20 core EBITDA margin reflecting our scale and commitment to expense efficiency

Percentage changes are stated on a constant exchange rate basis, a Non-GAAP measure. See "Performance and Non-GAAP Measures" below.

+170 bps

2019

2020

Delivered $1.0 billion of expense efficiencies, achieving the 2022 target two years ahead of schedule

Total annual expense efficiencies

(C$, pre-tax)

$1.0 billion target achieved in 2020

$700 million bottom line impact in 2019

$300 million bottom line impact in 2018

Note: See "Caution regarding forward-looking statements" above.

• • Delivered $1.0 billion of sustainable expense efficiencies to-date, $300 million of which was incremental in 2020

• • Expense initiatives have delivered significant efficiencies:

  • • Digitization, including automation and robotics

  • • Vendor management

  • • People management

  • • Real estate optimization

• • On track to achieve the expense efficiency ratio target of <50% by 2022

Our culture of expense efficiency has resulted in a 3% reduction in 2020 core general expenses while continuing to invest in our digital capabilities

Core general expenses1

(C$ millions)

-3%

Expense efficiency ratio

(%)

7,675	7,501
2,055	1,968

4Q19

4Q20

2019

2020

2016

2017

2018

Note: Percentage changes are stated on a constant exchange rate basis, a Non-GAAP measure. See "Performance and Non-GAAP Measures" below. 1 Core general expenses are general expenses included in core earnings ("core expenses").

Medium-term target of <50%

2019

2020

Manulife maintained a strong capital position throughout 2020 despite the global pandemic

Capital Metrics
Capital over
MLI LICAT1 ratio	Supervisory Target
(%)	(C$ billions)

150 145 140 135 130 125 120 115 110 105 100

Financial leverage ratio

(%)

(1Q18)

Medium-term target of 25%

2017

2018

2019

2020

1 Life Insurance Capital Adequacy Test (LICAT) Total Ratio of The Manufacturers Life Insurance Company (MLI). 2 For LICAT, the 4Q19 ratio reflects the impact of the $0.5 billion capital redeemed in January 2020 (announced in November 2019) as the LICAT ratio reflects capital redemptions once the intention to redeem has been announced. 3 For LICAT, the 4Q20 ratio reflects the impact of the $350 million capital redeemed in January 2021 (announced in November 2020) as the LICAT ratio reflects capital redemptions once the intention to redeem has been announced.

Financial targets

Core EPS growth

Core ROE

Leverage ratio

Dividend payout1

Expense efficiency ratio

Capital benefits (cumulative)

2017

+13% 11.3% 30.3% 37%

55.4%

Note: See "Caution regarding forward-looking statements" above. 1 Dividend payout ratio based on core earnings per share.

2018

+23% 13.7% 28.6% 33%

52.0% $3.0 billion

2019

+8% 13.1% 25.1% 34%

52.0% $5.1 billion

SAVE THE DATE:

Manulife Investor Day 2021

When: Tuesday, June 29th, 2021

Where: Virtual

Registration will open in February 2021

Question & Answer session

Appendix

• • Diversity of Manulife's business

• • Digital Capabilities

• • Invested Asset Mix

• • Credit Experience

• • Segment Performance

• • Assets Under Management and Administration

• • Earnings Sensitivities

The diversity of Manulife's business differentiates us from our peers and has been a key factor in the resilience that we've demonstrated throughout 2020

Core earnings and net income attributed to shareholders

(C$ billions)

2018

Net IncomeCore earnings

2019

2020

1 Based on 2020 results 2 Excludes Corporate & Other 3 Based on pre-tax

Core Earnings1, 2

AsiaU.S.

CanadaGlobal WAM

Expected profit from in-force business1, 2, 3

Global WAM AUMA by business line1

RetirementRetailInstitutional

APE Sales1

New Business Value1

Global WAM Core EBITDA by region1

Expanding digital channels and operations in the current environment, with sustained customer experience benefits

APE sales available to be sold via Virtual F2F1 methods2

STP4

Digital claim submissionAuto-underwriting

Global WAM

AsiaCanadaU.S.

2019

2020

91%

93%

2019

2020

2019

2020

1 Virtual face-to-face, includes digital as well as non-digital solutions. 2 Represents the percentage of 2019 APE sales that are currently available for sale via virtual face-to-face methods (applies to Asia, Canada and U.S.). 3 Reflects Global WAM's AUMA available to new and existing retail and retirement customers. 4 Straight-through processing includes money movement

Customer adoption of our digital capabilities continued to increase in 2020, but showed signs of stabilizing

• • Group Benefits Canada introduced Health by Design, a proactive approach using the latest science, technology and predictive analytics

• • Added Amazon Halo wellness band to devices supported by John Hancock Vitality in the U.S.

• • Launched a new retirement planner tool in our Global WAM U.S. business to deliver an innovative and engaging way for customers to visualize and plan for their retirement

• • Launched eClaims in Philippines, Malaysia and Cambodia; Electronic submissions are now live in all of our markets

Global WAM

Asia

Canada

U.S.

* Compared to pre-COVID-19 levels

1 Personal Accounts and Tax-Deductible Voluntary Contribution. 2 Out of total eligible Retail Insurance policies.

Diversified high quality asset mix avoids risk concentrations

Total invested assets

(C$411.0 billion, carrying values as of December 31, 2020)

Fixed Income & OtherAlternative Long-Duration Assets (ALDA)

Timberland & Farmland 1%

Oil & Gas 1%

Real Estate 3%

Real Estate Interests 1%

Infrastructure 2%

Private Placement Debt 10%

Securitized MBS/ABS 1%Mortgages1 12%Cash & Short-Term Securities 6%

Loans2 1% Other 1%

Private Equity & Other 2%Public Equities

• • High quality and diverse asset mix

  • • 97% of fixed income assets are investment grade

  • • Large holdings in defensive Government and Utility bonds

  • • ALDA sell-down has reduced exposure in guaranteed segments

  • • No Collateralized Loan Obligations ("CLO") exposure

• • ALDA generates enhanced yield; minimizes need to pursue riskier fixed income strategy

  • • Portfolio positioned at the low end of the risk-return spectrum with ~60% in infrastructure and unlevered commercial real estate

• • Robust risk management framework

  • • Has supported our underwriting and favourable credit quality

1 Includes government insured mortgages ($6.6 billion or 12% of total mortgages). 2 Includes Policy Loans and Loans to Bank Clients.

Credit experience

Net credit experience

(C$ millions, post-tax)

Credit Experience

(C$ millions)

Change in ratings Impairments, net of recoveries Release of best estimate credit Net Credit Experience

4Q19

1Q20

2Q20

3Q20 4Q20

4Q19 11 (8) 62 65

1Q20 (108) (7) 65 (50)

2Q20 4 (93) 69 (20)

3Q20 4Q20

(18) 1

(68) (4)

59 61

(27)

58

Global WAM: Delivered double-digit core earnings in 4Q20 and strong net inflows in 2020

WAM core earnings

WAM net flows

WAM gross flows

(C$ millions)

(C$ billions)

(C$ billions)

4Q19

AsiaCanadaU.S.1

+7%

1,100

4.9

2.8

2.2

2.2

(1.6)

AsiaCanadaU.S.1

8.9

-4%32.9

3.9

AsiaCanadaU.S.1

4Q20

2019

2020

4Q19

4Q20

2019

2020

4Q19

4Q20

2019

2020

• • +15% 4Q20 core earnings growth driven by higher average AUMA and disciplined expense management, partially offset by unfavourable impacts from changes in product mix, lower fee spread in the U.S. Retirement business, and lower tax benefits

• • Lower 4Q20 net inflows driven primarily by outflows in U.S. Institutional and Retirement, partially offset by higher retail gross flows across all geographies

• • Lower 4Q20 gross flows driven by lower sales in U.S. Retirement and non-recurrence of several large sales in U.S. Institutional in 4Q19, partially offset by the higher retail gross flows across all geographies

Note: Percentage changes are stated on a constant exchange rate basis, a Non-GAAP measure. See "Performance and Non-GAAP Measures" below. Order of the vertical bars on the chart correspond to the order in the legend.

1 U.S. business line includes Europe.

Asia: Strong double-digit core earnings growth in 4Q20; lower NBV and APE sales amid the challenging sales environment

Core earnings

New business value

APE sales

(US$ millions)

(US$ millions)

(US$ millions)

4Q19 4Q20

Asia OtherJapanHong KongRegional Office

+4%

-5%

259 35 131

Asia OtherJapanHong Kong

+2%

366 443

Asia OtherJapanHong Kong

4Q19 4Q20 2019 2020 4Q19 4Q20 2019 2020

• • +16% core earnings growth in 4Q20 primarily driven by in-force business growth across Asia, favourable new business primarily from product mix in Hong Kong and Vietnam, and disciplined expense management, partially offset by lower new business volumes in Hong Kong

• • Decline in 4Q20 new business value due to lower sales volumes in Hong Kong and less favourable product mix in Japan, partially offset by higher sales and more favourable product mix in Asia Other

• • Delivered modest 4Q20 APE sales as growth in Japan from COLI and higher Asia Other sales from Vietnam and Singapore, were partially offset by lower sales in Hong Kong, due to tightening of COVID-19 containment measures

Canada: Delivered double-digit core earnings growth in 4Q20

Core earnings

New business value

APE sales

(C$ millions)

(C$ millions)

(C$ millions)

+10%

-2%

Manulife BankAnnuities

+10%

316

4Q19

Insurance

+8%

+9%

Individual InsuranceGroup Insurance

1,148Annuities

4Q20

2019

2020

4Q19

4Q20

2019

2020

4Q19

4Q20

2019

2020

• • Higher 4Q20 core earnings primarily reflecting favourable insurance policyholder experience, partially offset by a number of small experience-related items

• • Higher 4Q20 new business value primarily driven by higher margins across all business lines, partially offset by lower volumes in small and mid-size group insurance and individual insurance

• • Lower 4Q20 APE sales driven by lower small and mid-size group and individual insurance sales due to the adverse impact of COVID-19, partially offset by higher sales in our lower risk segregated funds

U.S.: Solid core earnings, and lower new business value and APE sales due to the COVID-19 pandemic

Core earnings

New business value

APE sales

(US$ millions)

(US$ millions)

(US$ millions)

-1%

+5%

371

367

1,485

-26%

-27%

-28%

-14%

123	120
248	247

4Q19

4Q20

2019

U.S. Annuities

U.S. Insurance

2020

4Q19

4Q20

2019

2020

4Q19

4Q20

2019

2020

• • Modest decrease in 4Q20 core earnings driven by unfavourable life insurance policyholder experience including modest COVID-19 related claim losses and the non-recurrence of tax benefits in 4Q19, partially offset by favourable LTC policyholder experience due to COVID 19, higher in-force earnings and expense efficiencies

• • Lower 4Q20 new business value driven by lower international universal life sales volumes

• • Lower 4Q20 APE sales as international universal life sales were unfavourably impacted by COVID-19 and domestic universal life sales decreased compared to a strong 4Q19, which benefited from higher sales in advance of anticipated regulatory changes

Total company AUMA

Assets under management and administration (AUMA)

(C$ billions)

Net Customer

AUMA (12/31/2019)

CashflowsInvestment

IncomeCurrency & Other

AUMA (12/31/2020)

OtherGlobal WAM

• • The favourable impact of investment income was partially offset by the unfavourable impact of a stronger Canadian dollar

Interest rate related sensitivities remain well within our risk appetite limits

Potential impact1 on net income of an immediate parallel change in "all rates":

3Q20 4Q20

(C$ millions)

Excluding change in market value of AFS bonds held in surplus From fair value changes in AFS bonds held in surplus, if realized2 MLI's LICAT total ratio (change in percentage points)3

-50 bps $ nil $ 2,400 7

+50 bps $ (200) $ (2,200)

(7)

-50 bps $ nil $ 2,100 8

+50 bps $ (100) $ (1,900)

(7)

Potential impact1 on net income of a parallel change in corporate bond spreads:

3Q20 4Q20

(C$ millions)

Corporate spreads

-50 bps $ (1,000)

MLI's LICAT total ratio (change in percentage points)3

(5)

+50 bps $ 800 4

-50 bps $ (1,000)

(4)

+50 bps $ 900 4

Potential impact1 on net income of a parallel change in swap spreads:

3Q20 4Q20

(C$ millions)

Swap spreads

MLI's LICAT total ratio (change in percentage points)

-20 bps $ nil nil

+20 bps $ nil nil

-20 bps $ nil nil

+20 bps $ nil nil

1 All estimated sensitivities are approximate and based on a single parameter. No simple formula can accurately estimate ultimate future impact. Please refer to "Caution related to sensitivities" in our 2020 Management's Discussion and Analysis. 2 The amount of gain or loss that can be realized on AFS fixed income assets held in the surplus segment depends on the aggregate amount of unrealized gain or loss. 3 In accordance with OFSI guidelines, lower interest rates and/or corporate bond spreads could trigger a switch to a more adverse prescribed interest stress scenario that would increase LICAT capital. Refer to the "Interest Rate and Spread Risk Sensitivities and Exposure Measures" section in our 2020 Management's Discussion and Analysis.

Potential impact on net income attributed to shareholders arising from a 10% change in public equity returns1,2

• • Core earnings: Represents the estimated earnings impact on seed money investments (immediate impact)

• • Direct impact of equity markets: Represents the estimated earnings impact on variable annuity guarantees and general fund equity investments (immediate impact)

1 All estimated sensitivities are approximate and based on a single parameter. No simple formula can accurately estimate ultimate future impact. Please refer to "Caution related to sensitivities" in our 2020 Management's Discussion and Analysis. 2 The table excludes the impacts from asset-based fees earned on assets under management and policyholder account value. 3 Consists largely of markets in Asia where we operate.

Performance and Non-GAAP Measures

Manulife uses a number of non-GAAP financial measures to measure overall performance and to assess each of its businesses.

A financial measure is considered a non-GAAP measure for Canadian securities law purposes if it is presented other than in accordance with generally accepted accounting principles used for the Company's audited financial statements. Non-GAAP measures include core earnings (loss); core ROE; diluted core earnings per common share ("core EPS"); core earnings before income taxes, depreciation and amortization ("core EBITDA"); core EBITDA margin; core investment gains; core general expenses ("core expenses"); constant exchange rate basis (measures that are reported on a constant exchange rate basis include percentage growth/declines in net income attributed to shareholders, core earnings, core expenses, sales, APE sales, gross flows, core EBITDA, new business value and assets under management and administration); capital; embedded value; new business value; new business value margin; sales; APE sales; gross flows; net flows; assets under management and administration; average assets under management and administration and expense efficiency ratio. Non-GAAP financial measures are not defined terms under GAAP and, therefore, are unlikely to be comparable to similar terms used by other issuers. Therefore, they should not be considered in isolation or as a substitute for any other financial information prepared in accordance with GAAP. For more information on non-GAAP financial measures, including those referred to above, see "Performance and Non-GAAP Measures" in our 2020 Management's Discussion and Analysis.

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