Q4 2024 Manulife Financial Corp Earnings Call Transcript
Key Points
- Manulife Financial Corp (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 (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 (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.
- 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 (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 (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.
Good morning, ladies and gentlemen. Welcome to the Manulife Financial fourth-quarter 2024 results conference call. I would now like to turn the meeting over to Mr. Hung Ko. Please go ahead, Mr. Ko.
Thank you. Welcome to Manulife's earnings conference call to discuss our fourth-quarter and full-year 2024 financial and operating results. Our earnings materials, including the webcast slides for today's call, are available on the investment relations section of our website at manulife.com.
Before we start, please refer to slide 2 for a caution on forward-looking statements and slide 42 where notes on the non-GAAP and other financial measures used in this presentation. Please note that certain material factors or assumptions applied in making forward-looking statements, and actual results may differ materially from what is stated.
Turning to slide 4. We'll begin today's presentation with Roy Gori, our President and Chief Executive Officer, who will provide a
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
