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Manulife Financial Corporation's Normal Course Issuer Bid Announcement

Manulife Financial Corporation, a prominent player in the global financial services sector, recently made headlines with its intention to launch a Normal Course Issuer Bid (NCIB), pending approval from the Toronto Stock Exchange (TSX). This strategic move allows the company to repurchase up to 42 million of its outstanding common shares, representing about 2.5% of the total shares issued.

Background on the NCIB

The announcement marks a significant step in Manulife's capital management strategy, which focuses on ensuring robust regulatory capital ratios while enhancing shareholder value. The NCIB has received approval from the Office of the Superintendent of Financial Institutions (Canada), a crucial step that underscores the company’s commitment to maintaining a solid financial foundation.

As of January 31, 2026, Manulife had over 1.67 billion common shares in circulation. By initiating this share buyback, Manulife plans to effectively manage its equity while also providing shareholders with a return on their investment through the cancellation of repurchased shares.

How the NCIB Will Work

Manulife’s share repurchase program will be executed through various trading platforms including the TSX, the New York Stock Exchange, and other alternative trading systems in Canada and the U.S. Purchases will take place at prevailing market prices or at prices that comply with regulations, ensuring fairness and transparency throughout the process.

The company will file a notice of intention with the TSX, and once approved, the bid period will last for up to one year. All shares bought back under the NCIB will be canceled, effectively reducing the total number of shares available in the market.

Moreover, there are provisions for Manulife to engage in share purchases outside of Canada and the United States, adhering to applicable laws, which adds flexibility to their strategy. This may include acquiring shares directly from other shareholders through private agreements, especially under exemption orders issued by securities regulatory authorities. Such private transactions could occur at a discount compared to the current market price, which could be beneficial for the company.

Previous Share Repurchase Activity

This latest initiative follows Manulife's previous normal course issuer bid from 2025, which started on February 24, 2025, and involved buying back 51.5 million shares, set to expire on February 23, 2026. During the execution of that buyback, the company successfully purchased the entire allotted amount at a volume-weighted average price of $44.28 per share. This illustrates Manulife's proactive approach in managing its capital and shares effectively.

Forward-Looking Statements

As with any financial projection, this announcement includes forward-looking statements as per Canadian and U.S. securities laws. It outlines the potential future share purchases under their proposed NCIB; however, it is noted that these statements are subject to inherent risks and uncertainties. Factors such as market conditions, operational earnings, and financial health will significantly influence the actual outcomes of these proposed repurchases.

About Manulife Financial Corporation

Founded in Toronto, Canada, Manulife has established itself as a leading international financial services provider, offering solutions that empower customers to make informed decisions. With a workforce of over 37,000 employees and 109,000 agents worldwide, they serve more than 36 million customers across the globe—operating under the name Manulife in Canada, Asia, and Europe and as John Hancock in the United States. Their comprehensive offerings span financial advice, insurance services, and asset management, reinforcing their commitment to customer satisfaction and comprehensive service.

In conclusion, Manulife's intent to initiate an NCIB exemplifies their dedication to enhance shareholder value while strategically managing their capital in the marketplace. With the support of regulatory bodies, this program will help the company maintain its competitive edge in a rapidly evolving financial landscape.