Manulife Launches Normal Course Issuer Bid to Repurchase Shares

Manulife Unveils Normal Course Issuer Bid

Date: February 19, 2025
Manulife Financial Corporation, a prominent international financial services provider, has declared its intention to initiate a Normal Course Issuer Bid (NCIB), enabling the company to purchase and cancel up to 51.5 million of its outstanding common shares. This figure equates to roughly 3% of the company’s total issued and outstanding shares, which stood at 1,723,281,035 as of February 12, 2025.

The company has received essential approvals for its NCIB from both the Office of the Superintendent of Financial Institutions Canada and the Toronto Stock Exchange (TSX). The program allows Manulife to buy up to 1,420,093 common shares per day on the TSX, which represents 25% of the average daily trading volume calculated over a recent six-month period. The purchases are set to commence on February 24, 2025, and will remain open until February 23, 2026, or until the total shares planned for repurchase are acquired.

Objectives of the NCIB

The implementation of this share buyback program aligns with Manulife's overarching capital management strategy. The company aims to maintain its regulatory capital ratios while seeking to enhance shareholder value. By executing the NCIB, Manulife seeks to demonstrate confidence in its financial position and future prospects, thereby providing a positive signal to the market and its investors.

All repurchased shares under the NCIB will be canceled, thus reducing the number of outstanding shares and potentially increasing the value for existing shareholders. The purchases may occur through various venues—including the TSX, New York Stock Exchange, and alternative trading systems in both Canada and the United States—at current market prices or as permitted otherwise.

Strategic Flexibility

Under this initiative, Manulife may also explore repurchasing shares outside Canada and the U.S. in compliance with relevant laws. Furthermore, the company might acquire shares directly from existing holders through private agreements, which could be at discounts to the market price. Other actions could include entering into derivative agreements to facilitate repurchases, contingent upon regulatory approval.

Manulife plans to engage with a registered investment dealer to set predefined plans for share repurchases during periods when the company typically refrains from trading due to internal regulations or market conditions. This prudent approach aims to ensure compliance with applicable Canadian and U.S. securities laws, maintaining a robust framework for repurchasing activities.

Historical Context

The current NCIB follows a previous program initiated on February 23, 2024, which authorized the company to repurchase up to 90 million common shares. As of January 31, 2025, Manulife had successfully repurchased 88,466,133 shares at an average price of $39.11 each, showcasing its commitment to returning value to shareholders through strategic buybacks.

Forward-Looking Statements

While Manulife's announcement involves forward-looking statements, the company cautions that actual outcomes may differ due to several uncertainties, including market conditions and regulatory factors. Therefore, stakeholders are advised to remain cognizant of these risks as the situation develops.

About Manulife

Operating under the Manulife brand in Canada, Asia, and Europe, and as John Hancock in the U.S., Manulife Financial Corporation serves more than 35 million customers globally. With over 38,000 employees and numerous agents and partners, the company is a leader in financial advice and insurance, firmly established across international markets. Shares of Manulife are publicly traded as 'MFC' on the Toronto, New York, and Philippine stock exchanges, and as '945' in Hong Kong. For more information, visit manulife.com.