Yahoo Finance

• Core Earnings: Exceeded $7 billion for the first time, a 10% increase from 2023.

• Net Inflows: $13.3 billion generated by Global WAM business.

• Capital Release: Expected $2.8 billion from reinsurance transactions.

• Efficiency Ratio: Achieved 44.8%, in line with medium-term target of below 45%.

• Core ROE: Expanded to 16.4% for the full year.

• Book Value Growth: 15% increase in both adjusted book value and book value per share.

• LICAT Ratio: Strong at 137%.

• Leverage Ratio: 23.7%, below the 25% medium-term target.

• Dividend Increase: 10% increase in common share dividend approved.

• Share Buyback Program: New program to repurchase up to 3% of outstanding common shares.

• APE Sales Growth: Increased 42% year-over-year.

• Core EPS Growth: 11% growth, 14% excluding global minimum taxes impact.

• Cash Remittances: Record $7 billion generated in 2024.

• Core Earnings Growth in Asia: 16% increase driven by business growth momentum.

• Global WAM Core Earnings Growth: 34% increase supported by higher average third-party AUMA.

• Warning! GuruFocus has detected 7 Warning Sign with MFC.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Manulife Financial Corp (NYSE:MFC) achieved record core earnings exceeding $7 billion for the first time in 2024, marking a 10% increase from 2023.

• The company executed significant reinsurance transactions, including the largest ever LTC reinsurance deal with Global Atlantic and a Canadian Universal Life reinsurance transaction with RGA, unlocking $2.8 billion in capital.

• Manulife Financial Corp (NYSE:MFC) reported strong growth in Asia and Global WAM, contributing to 70% of core earnings, with record APE sales and new business value.

• The company launched 27 generative AI use cases into production, generating over $600 million in benefits from digital initiatives, more than 3.5 times the level achieved in 2023.

• Manulife Financial Corp (NYSE:MFC) announced a 10% increase in its common share dividend and a new buyback program to repurchase up to 3% of outstanding common shares, reflecting strong capital return to shareholders.

Negative Points

• The impact of global minimum taxes (GMT) resulted in a $57 million charge for the quarter, dampening core earnings growth by approximately 3 percentage points.

• Manulife Financial Corp (NYSE:MFC) reported a $113 million charge due to lower-than-expected public equity returns and a $97 million charge from lower returns on commercial real estate investments.

• The company faced challenges in its US segment, with core earnings decreasing by 16% due to lower investment spreads and earnings foregone from reinsurance transactions.

• Manulife Financial Corp (NYSE:MFC) experienced a restructuring charge of $52 million, primarily in Global WAM, related to severance costs.

• The company's LICAT ratio is expected to decrease by approximately 1 percentage point due to changes in guidelines effective January 1, 2025.