Manulife Financial Posts 8 Percent Growth in 2024 Core Earnings

Manulife Financial Corporation reported banner full year and fourth quarter results for the period ended December 31, 2024, with record core earnings, 30%+ increases across top-line business metrics, double-digit core EPS growth for the full year, as well as declaring a common share dividend increase of 10%.

Key highlights for full year 2024 and the fourth quarter (“4Q24”) include:

• Core earnings of C$7.2 billion in 2024, up 8% on a constant exchange rate basis from 2023. Core earnings of C$1.9 billion in 4Q24, up 6% from the fourth quarter of 2023 (“4Q23”)
• Net income attributed to shareholders of C$5.4 billion in 2024, up C$0.3 billion from 2023, and C$1.6 billion in 4Q24, in line with 4Q23
• Core EPS of C$3.87 in 2024, up 11% from 2023, and C$1.03 in 4Q24, up 9% from 4Q23
   ◦ Excluding the impact of Global Minimum Taxes (“GMT”), core EPS2 was C$3.97 in 2024, up 14% from 2023, and C$1.06 in 4Q24, up 13% from 4Q23
• EPS of C$2.84 in 2024, up 8% from 2023, and C$0.88 in 4Q24, in line with 4Q23
• Core ROE of 16.4% in 2024 and 16.5% in 4Q24, and ROE of 12.0% in 2024 and 14.0% in 4Q24
• Entered into an agreement with RGA to reinsure two blocks of legacy business, including a younger block of long-term care (“LTC”), the Company second LTC reinsurance transaction in less than 12 months. The transaction was completed in the first quarter of 2025 with an effective date of January 1, 2025
• LICAT ratio of 137% in 4Q24, in line with prior quarter
• Remittances of C$7.0 billion in 2024 compared with C$5.5 billion in 2023
​• Purchased and cancelled 4.6% of common shares outstanding, or more than 82 million common shares, for C$3.2 billion in 2024 

Also announced today: 

◦ A 10% increase in the quarterly dividend per common share, and
◦ A Normal Course Issuer Bid (“NCIB”) that permits repurchase of up to 3% of outstanding common shares, commencing in late February 2025

“2024 was a banner year for Manulife on many fronts and we finished the year with very strong results. We delivered record insurance new business results for the full year, including 30%+ increases year-over-year across APE sales7 , new business CSM4 and new business value7 . Asia continued to lead with substantial topline growth and a 27% increase in core earnings. Global WAM ended the year with over $13 billion of net inflows7 , a 220 basis point increase in core EBITDA margin2 and 30% core earnings growth.” “We continued to build on our momentum to deliver for shareholders and customers. We closed the largest LTC reinsurance transaction in the industry and announced a second LTC risk transfer deal within 12 months. We also made significant progress towards our digital, customer leadership ambition, achieving a record high Net Promoter Score and generating over $600 million of benefits9 from our initiatives globally in 2024. We have created a robust foundation for sustained growth. I am confident about the future of Manulife and the value that we will continue to generate for our shareholders,” said Roy Gori, Manulife President & Chief Executive Officer.

“We continued to make progress against our targets announced at Investor Day. Our core ROE increased to 16.4% and core EPS grew 11%, despite the impact of Global Minimum Tax. Expense efficiency ratio2 improved further and ended at 44.8% for the full year. We remitted $7.0 billion in 2024, reflecting our strong cash generating capability across our global operations and benefiting from our capital optimization initiatives. We returned $6.1 billion of capital to shareholders, including buying back 4.6% of outstanding common shares. As announced today, the Board approved a 10% increase in the common share dividend, and we are launching a new NCIB program to repurchase up to 3% of our outstanding common shares,” said Colin Simpson, Manulife Chief Financial Officer.