#Canada #Toronto #Manulife Financial #Core Earnings #Global WAM

Manulife Financial Corporation's 2024 Performance Overview

On February 19, 2025, Manulife Financial Corporation released its full-year and fourth-quarter results for 2024. The company reported remarkable figures, including record core earnings and substantial year-over-year growth across its primary business metrics. With core earnings rising to $7.2 billion for 2024, marking an 8% increase on a constant exchange rate basis compared to the previous year, and a 10% increase in core EPS leading to $3.87, the company's performance has set new standards.

Key Highlights

The results for 2024 show that net income attributed to shareholders reached $5.4 billion, up by $0.3 billion from 2023. In the fourth quarter, net income was notably $1.6 billion, consistent with 4Q23 results. The Core ROE for the entire year stood at 16.4%, illustrating the company’s ability to generate substantial returns on equity.

Manulife also announced a strategic move to reinsure two blocks of its legacy business with RGA, emphasizing its commitment to risk management and capital optimization. It completed the sale under favorable conditions, augmenting its steady trajectory in the financial market.

Operational Excellence

Among the achievements, Manulife highlighted a growth in insurance new business that surpassed 30% year-on-year, bouyed by its Asia market, which alone reported a 27% rise in core earnings. The Global Wealth and Asset Management sector ended 2024 on a high note with over $13 billion in net inflows, benefiting from a strong performance across all demographics.

The Fiscal year also witnessed the repurchase and cancellation of 4.6% of outstanding common shares at a cost of $3.2 billion, a strategic decision aimed at enhancing shareholder value. The Board of Directors approved an increase in the quarterly dividend per common share by an impressive 10% in recognition of this strong financial performance.

Digital Transformation and Future Trends

The company continued to invest significantly in digital initiatives, realizing over $600 million in estimated benefits from digitalization efforts in 2024. Manulife's ambitions to advance as a digitally-focused and customer-centric insurer were evident in their groundbreaking Net Promoter Score achievement.

In the U.S., Manulife made strides in strategic collaborations and broadened its portfolio of products, specifically designed to cater to affluent customers' needs for accumulation insurance. The Canadian sector similarly innovated, introducing a guaranteed issue life insurance product aimed at broadening its market reach.

Conclusion

The results for Manulife Financial Corporation in 2024 reveal a robust framework for sustained growth. According to CEO Roy Gori, the foundation laid during this period positions the company to continue delivering exceptional value for both customers and shareholders in the future. With momentum behind its digital transformation and expansive market strategies, Manulife demonstrates a near-unwavering commitment to excellence in service and performance.

These achievements echo a strong narrative of recovery and growth for the financial institution, defining it as a leading player in the marketplace and a formidable investment opportunity moving forward.