Manulife Financial Corporation Ended 2023 with a Net Income of $5.1 Billion, Core Earnings of $6.7 Billion, and a Dividend Increase of 6.9%

Manulife Financial Corporation (Manulife) announced its full year and fourth quarter results for the fiscal year ending December 31, 2023, during which the company achieved double-digit growth in core EPS and declared a 9.6% increase in the common share dividend.

​In a PSE press release, here are the key highlights for the full year 2023 and the fourth quarter ("4Q23") of the company.

• Net income attributed to shareholders of $5.1 billion in 2023, up $1.6 billion from 2022 transitional net income attributed to shareholders (“Transitional Net Income”), and $1.7 billion in 4Q23, up $0.4 billion from Transitional Net Income in the fourth quarter of 2022 (“4Q22”).
• Net income attributed to shareholders of $5.1 billion in 2023, up $7.0 billion from 2022, and $1.7 billion in 4Q23, up $0.7 billion from 4Q22.
• Core earnings of $6.7 billion in 2023, up 13% on a constant exchange rate basis2 from 2022. Core earnings of $1.8 billion in 4Q23, up 15% from 4Q22.
• Core EPS of $3.47 in 2023, up 17%2 from $2.90 in 2022. Core EPS of $0.92 in 4Q23, up 20% from $0.77 in 4Q22.
• EPS of $2.61 in 2023, up 47% compared with transitional EPS3 of $1.69 in 2022 and up $3.76 compared with EPS of -$1.15 in 2022. EPS of $0.86 in 4Q23, up 43% compared with transitional EPS of $0.60 in 4Q22 and up 97%2 compared with EPS of $0.43 in 4Q22.
• Core ROE of 15.9% in 2023 and 16.4% in 4Q23, and ROE of 11.9% in 2023 and 15.3% in 4Q23.
• LICAT ratio of 137%
• Remittances of $5.5 billion in 2023 compared with $6.9 billion in 2022.
• Entered into an agreement with Global Atlantic to reinsure four in-force blocks of legacy and low ROE business, including $6 billion of long-term care (“LTC”) insurance contract net liabilities6 , representing the largest ever LTC reinsurance transaction. The transaction is expected to close by the end of February 2024.
• Purchased for cancellation 3.4% of common shares outstanding, or more than 62 million common shares, for $1.6 billion in 2023.

​“2023 was a milestone year for Manulife as we continued to execute on our transformation journey. We delivered strong business results of 17% and 13% growth year-over-year in core EPS and core earnings, respectively, as well as core ROE of 15.9% in 2023. We generated core earnings growth across all insurance segments, double-digit increases in all new business metrics, and $4.5 billion of net inflows in Global WAM. We also announced a milestone reinsurance transaction, including the largest ever LTC risk transfer.” “Our strategy is grounded in making decisions easier and lives better for our customers and driving greater value for our shareholders. The dedication and passion of our team to deliver has helped us excel in uncertain market conditions and achieve positive momentum as we begin 2024.” — Roy Gori, Manulife President & Chief Executive Officer

“This year marked a smooth transition to IFRS 17 where Manulife delivered growth in earnings, book value per common share, and LICAT ratio, while returning $1.6 billion to shareholders through our share buyback program. We generated $5.5 billion in remittances in 2023, and we announced a 9.6% increase in the common share dividend. We enter 2024 well positioned to deliver business growth and cash generation to our shareholders.” — Colin Simpson, Manulife Chief Financial Officer

Manulife increases common shareholders’ dividend by 9.6%

Manulife's Board of Directors declared a 9.6% increase, or 3.5 cents per share, in its quarterly common shareholders' dividend, resulting in a dividend of $0.40 per share on Manulife's common shares, payable on and after March 19, 2024, to shareholders of record at the close of business on February 28, 2024.

Regarding the Company's Dividend Reinvestment and Share Purchase Plans in Canada and the United States. Under the Dividend Reinvestment and Share Purchase Plan, the Company will buy common shares on the open market to reinvest dividends and make optional cash purchases. The purchase price of these common shares will be based on the average of the actual cost to purchase them, with no relevant reductions.