Documente Academic
Documente Profesional
Documente Cultură
Q4 2015
TABLE OF CONTENTS
Page
Financial Reporting Structure
Notes to Readers
Financial Highlights
1
2
3
8
9
10
11
12
Segmented Information
Asia Division
Canadian Division
U.S. Division
Corporate & Other
13
18
21
24
Page
Asset Information
Asset Composition and Quality
Portfolio Composition
Fixed Income Securities by Credit Quality and Geographic Location
Fixed Income Securities by Sector
Provisions, Impairments & Unrealized Losses
Investment Income
25
26
27
28
29
30
31
Capital Information
Regulatory Capital
32
Supplementary Disclosure
Wealth and Asset Management
33
36
General Information
37
MFC
ASIA DIVISON
CANADIAN DIVISION
U.S. DIVISION
INSURANCE
INSURANCE
INSURANCE
CORPORATE
Hong Kong
Individual Insurance
Group Life and Health
Japan
Individual Insurance
Indonesia
Individual Insurance
Group Life and Health
Asia Other Territories*
Individual Insurance
Group Life and Health
Retail Markets
Individual Life and Living Benefits
Institutional Markets
Group Benefits
Group Life
Group Health
Group Disability
Affinity Markets
(including International Group Program)
Hong Kong
Group Pensions
Mutual Funds
Japan
Mutual Funds
Indonesia
Group Pensions
Mutual Funds
Asia Other Territories*
Group Pensions
Mutual Funds
Mutual Funds
Group Retirement Solutions
Manulife Private Wealth
OTHER WEALTH
Hong Kong
Single Premium Products
Japan
Variable Annuities
Fixed Annuities
Single Premium Products
Indonesia
Single Premium Products
Asia Other Territories*
Single Premium Products
Corporate
OTHER WEALTH
REINSURANCE
OTHER WEALTH
Fixed Products
Annuities
GICs
Retail Segregated Fund Products
Manulife Bank
Variable Annuities
Fixed Deferred Annuities
Payout Annuities
Spread-based Products
Fee-based Products
Notes to Readers
Core earnings is a non-GAAP profitability measure. It shows what the net income (loss) attributed to
shareholders would have been assuming that interest and equity markets performed as assumed in our policy
valuation and certain other items had not occurred. It excludes the direct impact of equity markets and interest
rates as well as a number of other items that are considered material and exceptional in nature.
Core earnings before income tax, depreciation and amortization ("Core EBITDA"): Is a non-GAAP
profitability measure for our global wealth and asset management business. It shows core earnings adjusted to
remove the impacts of amortization and impairment of intangible assets acquired in business combinations,
amortization of deferred acquisition costs, interest income and expenses, and income tax.
New Business Value (NBV): Is the change in embedded value as a result of sales in the reporting period.
NBV is calculated as the present value of shareholders' interests in the expected future distributable earnings on
new business, less the present value of the cost of holding capital as calculated under the MCCSR framework in
North America, and the local capital requirements in Asia. Investment assumptions are consistent with product
pricing, updated to reflect market assumptions consistent with the market environment in the quarter the
business was sold. Best estimate fixed income yields are updated quarterly, and long term expected yields for
alternative long- duration assets are typically reviewed during the annual review of actuarial assumptions and
methods.
Constant currency basis
Quarterly amounts stated on a constant currency basis are calculated using Q4 2015 income statement and
statement of financial position exchange rates as appropriate.
Core earnings per share is core earnings less preferred share dividends divided by weighted average
outstanding common shares.
The definition we use for capital serves as a foundation of our capital management activities at the
MFC level. For regulatory reporting purposes, the numbers are further adjusted for various
additions or deductions to capital as mandated by the guidelines used by OSFI. Capital is
calculated as the sum of (i) total equity excluding Accumulated Other Comprehensive Income
(Loss) on cash flow hedges and (ii) liabilities for preferred shares and capital instruments.
Sales are measured according to product type.
(i) For individual insurance, sales include 100 per cent of new annualized premiums and 10 per
cent of both excess and single premiums. For individual insurance, new annualized premiums
reflect the annualized premium expected in the first year of a policy that requires premium
payments for more than one year. Single premium is the lump sum premium from the sale of a
single premium product, e.g. travel insurance. Sales are reported gross before the impact of
reinsurance.
(ii) For group insurance, sales include new annualized premiums and administrative services only
(ASO) premium equivalents on new cases, as well as the addition of new coverages and
amendments to contracts, excluding rate increases.
(iii) For other wealth, all new deposits are reported as sales. This includes certain single premium
wealth accumulation products in Asia and individual annuities, both fixed and variable. As we have
discontinued sales of new VA contracts in the U.S, beginning in the first quarter of 2013,
subsequent deposits into existing U.S VA contracts are not reported as sales.
Gross Flows
For wealth and asset management business, all new deposits are reported as gross flows. This
includes mutual funds, group pensions/retirement savings, institutional advisory accounts, and
college 529 plans.
Page 2
NOTES TO READERS
FINANCIAL HIGHLIGHTS
(Canadian $ in millions unless otherwise stated and per share information, unaudited)
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
YTD 2015
vs.
YTD 2014
129
320
299
336
27%
1,176
1,247
-6%
(102)
278
191
119
73
486
1,003
-52%
341
525
183
482
506
-33%
1,531
2,147
-29%
(421)
(310)
(94)
(177)
(275)
246
622
600
723
640
Asia
Canadian
U.S.
Net income attributed to shareholders
Preferred share dividends
(1,002)
-62%
2,191
(116)
(896)
3,501
(29)
(29)
(29)
(29)
(28)
217
593
571
694
612
-65%
2,075
3,375
-39%
217
600
612
731
654
-67%
2,160
3,771
-43%
353
356
300
296
260
36%
1,305
1,008
29%
354
338
304
262
224
58%
1,258
927
36%
350
393
402
392
338
4%
1,537
1,383
11%
(124)
(104)
(109)
(109)
(112)
(446)
(446)
(74)
(62)
(46)
(44)
(47)
(226)
(184)
4%
(126)
-37%
-8%
Earnings Analysis
Core earnings
Asia
Canadian
U.S.
Corporate and other (excl. expected cost of macro hedges and core investment gains)
Macro hedge expected
Investment-related experience in core earnings
Total core earnings
Investment-related experience outside of core earnings
Total core earnings and investment-related experience in excess of amounts included in core earnings
(51)
51
50
-100%
200
-100%
859
870
902
797
713
20%
3,428
2,888
19%
(361)
(169)
77
(77)
(403)
359
498
701
979
720
310
61%
3,247
-11%
(530)
2,898
(29)
232
(309)
13
377
(93)
412
(97)
(285)
(47)
(22)
(59)
(451)
(198)
(39)
(26)
(54)
(30)
(149)
(87)
31
42
12
(14)
40
246
622
600
723
640
-62%
2,191
3,501
-37%
1.06
$1.82
-42%
$0.11
$0.30
$0.29
$0.36
$0.33
-67%
$0.11
$0.30
$0.31
$0.38
$0.35
-69%
$0.42
$0.43
$0.44
$0.39
$0.36
17%
1.68
$1.48
14%
$0.11
$0.30
$0.29
$0.36
$0.33
-67%
1.05
$1.80
-42%
2.3%
6.5%
6.4%
8.4%
8.1%
-580 bps
5.8%
11.9%
-610 bps
8.7%
9.2%
9.8%
9.3%
9.0%
-30 bps
9.2%
9.8%
-60 bps
Standard Life net income and core earnings are primarily attributed to Canadian Division operations.
Page 3
FINANCIAL HIGHLIGHTS
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
238
204
148
590
245
166
179
590
195
142
198
535
200
114
190
504
178
96
171
445
37
34
81
5
157
38
40
92
(1)
169
43
36
75
8
162
43
30
70
8
151
31
26
65
7
129
78
73
62
53
27
89
116
121
315
(203)
859
26
106
132
122
327
(216)
870
36
90
126
129
317
(112)
902
34
84
118
132
303
(161)
797
YTD
2015
YTD
2014
34%
113%
-13%
33%
878
626
715
2,219
667
471
726
1,864
32%
33%
-2%
19%
19%
31%
25%
-29%
22%
161
140
318
20
639
126
100
263
13
502
28%
40%
21%
54%
27%
51
53%
266
215
24%
39
63
102
102
255
(116)
713
-31%
41%
14%
19%
24%
75%
20%
123
369
492
504
1,262
(692)
3,428
123
233
356
394
965
(443)
2,888
0%
58%
38%
28%
31%
56%
19%
2015 Q4
vs.
2014 Q4
YTD 2015
vs.
YTD 2014
Insurance and other wealth businesses are included in embedded value and new business value calculations (see page 31).
Wealth and asset management is comprised of our fee based business with little or no insurance risk, including mutual funds, pensions products and institutional asset management.
Other wealth includes single premium wealth accumulation products in Asia, annuities, GIC's and Manulife Bank.
Corporate and other results are net of internal allocations to other divisions.
Core earnings from Manulife Asset Management has been included in Wealth & Asset Management core earnings.
Page 4
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
YTD 2015
vs.
YTD 2014
5,306
5,066
4,687
4,570
4,287
24%
19,629
15,782
24%
569
594
547
549
548
4%
2,259
1,978
14%
833
804
851
837
773
8%
3,325
3,048
9%
1,051
1,012
1,031
1,202
1,023
3%
4,296
4,130
4%
7,759
7,476
7,116
7,158
6,631
17%
29,509
24,938
18%
7,759
7,571
7,458
7,440
7,257
7%
30,228
27,406
10%
16%
Excludes the impact of the net ceded premium related to the Closed Block reinsurance transaction in 3Q15 and full year 2015.
10
11
12
11
11%
44
38
6,606
6,802
5,989
6,483
4,892
35%
25,880
19,020
36%
18,361
16,768
17,787
13,188
10,576
74%
66,104
41,483
59%
5,972
2,165
10,987
3,024
2,276
162%
22,148
8,148
172%
140
116
117
137
132
6%
510
475
7%
31,089
25,862
34,892
22,843
17,885
74%
114,686
69,164
66%
Premiums and deposits - Wealth and Asset Management on a constant currency basis
31,089
26,282
36,581
24,099
20,374
53%
118,051
80,596
46%
Wealth & asset management is comprised of our fee based business with little or no insurance risk, including mutual funds, pensions products and institutional asset management.
Other funds include College Savings (529 plan) and Privately Managed Accounts.
1,137
950
877
618
126%
4,362
2,055
112%
565
458
744
589
344
64%
2,356
1,697
39%
1,963
1,595
1,694
1,466
962
104%
6,718
3,752
79%
1,963
1,616
1,779
1,516
1,060
85%
6,874
4,164
65%
26
24
21
19
18
44%
90
77
17%
Page 5
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
YTD 2015
vs.
YTD 2014
Insurance Sales 1
Asia - US $
416
379
374
338
364
14%
1,507
1,278
18%
Canada - C $
303
142
166
214
172
76%
825
578
43%
U.S. - US $
127
126
118
117
154
-18%
488
501
-3%
Insurance sales - C $
1,027
803
771
779
760
35%
3,380
2,544
33%
1,027
815
816
812
839
22%
3,470
2,802
24%
Insurance sales consist of recurring premiums and 10% of both excess and single premiums.
2
2,509
1,871
5,155
2,705
2,470
2%
12,240
8,149
50%
Canada - C $
3,932
4,213
3,923
4,406
2,704
45%
16,474
10,477
57%
13,344
13,016
11,094
9,726
8,894
50%
47,180
37,570
26%
5,974
2,165
10,987
3,024
2,276
162%
22,150
8,185
171%
U.S. - US $
Corporate and Other - C $
Wealth & asset management gross flows - C $
31,089
25,862
34,892
22,843
17,885
74%
114,686
69,164
66%
31,089
26,282
36,581
24,099
20,374
53%
118,051
80,596
46%
Wealth and asset management is comprised of our fee based business with little or no insurance risk, including mutual funds, pensions products and institutional asset management.
848
(2,281)
2,460
852
320
165%
1,879
788
138%
Canada - C $
765
1,566
1,331
1,821
1,045
-27%
5,483
3,892
41%
U.S. - US $
2,815
3,446
1,466
1,754
244
nm
9,481
7,962
19%
3,087
1,426
8,335
1,578
1,120
176%
14,426
4,834
198%
8,748
4,514
14,494
6,631
2,806
212%
34,387
18,335
88%
8,748
4,594
14,821
6,857
2,870
205%
35,020
20,326
72%
929
813
691
589
511
82%
3,022
1,644
84%
Canada - C $
868
781
923
1,037
530
64%
3,609
2,048
76%
2,109
1,845
1,773
1,767
1,109
90%
7,494
3,866
94%
2,109
1,870
1,834
1,803
1,171
80%
7,616
4,025
89%
70%
202
142
118
139
65%
691
406
Canada
50
50
43
45
43
16%
188
176
7%
U.S.
17
35
18
41
-59%
76
115
-34%
Asia
24
46
70
63
11%
296
287
227
215
223
33%
1,025
760
35%
New Business Value is not calculated for Wealth & Asset Management business and Manulife Bank.
2014 Figures have been restated, see Changes to Assumptions and Methodology for 2014 in our Embedded Value Report.
Page 6
2015
Q4
Common Share Statistics
Share Price - Toronto (in Canadian $)
high
low
close
Share Price - New York (in U.S $)
high
low
close
Common shares outstanding (millions)
- end of period
- weighted average
- diluted weighted average
1
Dividend per common share paid in the quarter
Common share dividend payout ratio
1
2015
Q3
2015
Q2
2015
Q1
2014
Q4
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
YTD 2015
vs.
YTD 2014
22.65
20.12
20.74
21.13
20.05
20.64
24.20
21.23
23.21
22.35
19.80
21.51
23.09
18.91
22.18
-2%
6%
-6%
24.20
19.80
20.74
23.09
18.91
22.18
5%
5%
-6%
16.95
14.52
14.98
16.00
15.03
15.48
19.61
16.79
18.59
19.10
15.89
17.01
20.23
16.68
19.09
-16%
-13%
-22%
19.61
14.52
14.98
20.77
16.68
19.09
-6%
-13%
-22%
1,972
1,972
1,977
0.17
154.8%
1,971
1,971
1,977
0.17
56.5%
1,971
1,971
1,992
0.17
58.7%
1,970
1,936
1,959
0.155
42.5%
1,864
1,864
1,887
0.155
47.2%
6%
6%
5%
10%
228%
1,972
1,962
1,977
0.665
62.7%
1,864
1,857
1,881
0.57
30.5%
6%
6%
5%
17%
106%
On February 10, 2016, the Board of Directors approved an increase of 9% or 1.5 cents to the quarterly shareholders dividend resulting in a dividend of 18.5 cents per share on the common shares of the Company,
payable on or after March 21, 2016 to shareholders of record at the close of business on February 24, 2016.
Valuation Data
Book value per common share
Market value to book value ratio
Book value excluding goodwill per common share
Market value to book value excluding goodwill ratio
Market capitalization ($ billions)
Assets Under Management and Administration
Assets Under Management
General fund
Segregated funds excluding institutional advisory accounts
Mutual funds
Institutional advisory accounts
2
Other funds
Total assets under management
Assets under administration
Total assets under management and administration
Total assets under management and administration on a constant currency
basis
2
18.98
1.09
16.12
1.28
40.7
17.89
1.30
15.27
1.52
45.7
18.33
1.17
16.05
1.34
42.4
16.42
1.35
14.72
1.51
41.3
19%
-21%
13%
-17%
-1%
19.51
1.06
16.62
1.25
40.9
16.42
1.35
14.72
1.51
41.3
19%
-21%
13%
-17%
-1%
309,267
310,952
160,020
71,237
7,552
859,028
76,148
935,176
299,595
298,679
147,185
65,528
6,549
817,536
70,447
887,983
295,393
301,129
144,663
64,315
8,303
813,803
68,924
882,727
308,680
309,796
139,750
55,218
7,901
821,345
821,345
269,310
254,148
119,593
41,248
6,830
691,129
691,129
15%
22%
34%
73%
11%
24%
35%
309,267
310,952
160,020
71,237
7,552
859,028
76,148
935,176
269,310
254,148
119,593
41,248
6,830
691,129
691,129
15%
22%
34%
73%
11%
24%
35%
935,176
906,491
940,697
870,548
784,710
19%
935,176
784,710
19%
235,567
474,586
170,392
2,182
882,727
242,138
394,045
180,621
4,541
821,345
213,750
314,538
157,801
5,040
691,129
15%
62%
13%
-92%
35%
246,250
510,687
177,845
394
935,176
213,750
314,538
157,801
5,040
691,129
15%
62%
13%
-92%
35%
26%
49,897
39,563
Other funds includes College Savings (529 plan), Privately Managed Accounts and funds managed for institutional clients in Asia.
19.51
1.06
16.62
1.25
40.9
246,250
510,687
177,845
394
935,176
235,043
476,822
175,684
434
887,983
Wealth and asset management is comprised of our fee based business with little or no insurance risk, including mutual funds, pensions products and institutional asset management.
Capital Information
Total capital 4
MCCSR - The Manufacturers Life Insurance Company
49,897
5
223%
47,880
45,521
226%
236%
46,362
245%
39,563
248%
-25 pts
Total capital includes total equity less AOCI on cash flow hedges and liabilities for preferred shares and capital instruments. Total equity includes unrealized gains and losses on AFS bonds and AFS equities, net of taxes.
For The Manufacturers Life Insurance Company, the capital ratio has been determined in accordance with the Minimum Continuing Capital & Surplus Requirements (MCCSR) of the Office of the Superintendent of
223%
248%
26%
-25 pts
The net unrealized gain on AFS bonds, net of taxes, is no longer part of OSFI regulatory capital.
Financial Institutions (Canada).
(CDN to $ 1 US)
(CDN to 1 YEN)
(CDN to $ 1 US)
(CDN to 1 YEN)
1.3841
0.0115
1.3360
0.0110
1.3394
0.0112
1.3089
0.0107
1.2473
0.0102
1.2297
0.0101
1.2682
0.0106
1.2399
0.0104
1.1601
0.0097
1.1356
0.0099
19%
19%
18%
11%
Unless otherwise indicated, information contained in this supplement is in Canadian dollars. The exchange rates above are used for currency conversion from U.S. dollars and Japanese yen to Canadian dollars for financial statement purposes.
Page 7
Revenue
Premium income
Gross premiums
Premiums ceded to reinsurers
Premiums ceded, net of ceded commissions and additional consideration relating to Closed Block reinsurance transaction 1
Net premium income (ceded)
Investment income
Investment income2
Realized/ unrealized gains (losses) on assets supporting insurance and investment contract liabilities and on macro hedge program3
Net investment income (loss)
Other revenue
Total revenue
Contract benefits and expenses
To contract holders and beneficiaries
Gross claims and benefits
Change in insurance contract liabilities2
Change in investment contract liabilities
Benefits and expenses ceded to reinsurers
Change in reinsurance assets 1
Net benefits and claims
General expenses
Investment expenses
Commissions
Interest expense
Net premium taxes
Total contract benefits and expenses
Income before income taxes
Income tax (expense) recovery
Net income
Less: net income (loss) attributed to non-controlling interests
Less: net income (loss) attributed to participating policyholders
Net income attributed to shareholders
Preferred share dividends
Common shareholders' net income
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
YTD 2015
vs.
YTD 2014
8,984
(2,272)
6,712
8,198
(1,965)
(7,996)
(1,763)
7,449
(1,872)
5,577
7,389
(1,986)
5,403
6,725
(1,892)
4,833
34%
20%
39%
32,020
(8,095)
(7,996)
15,929
25,156
(7,343)
17,813
27%
10%
-11%
2,899
(1,916)
983
2,694
10,389
2,708
3,672
6,380
2,487
7,104
3,216
(10,161)
(6,945)
2,491
1,123
2,642
5,343
7,985
2,426
15,814
2,664
6,182
8,846
2,301
15,980
9%
-89%
17%
-35%
11,465
(3,062)
8,403
10,098
34,430
10,744
17,092
27,836
8,739
54,388
7%
-70%
16%
-37%
6,225
2,063
26
(1,965)
(48)
6,301
5,741
5,741
56
(1,868)
(7,160)
2,510
5,746
(7,795)
75
(1,830)
737
(3,067)
6,049
7,443
46
(1,602)
(339)
11,597
5,375
8,123
(15)
(1,730)
262
12,015
16%
-75%
14%
-48%
23,761
7,452
203
(7,265)
(6,810)
17,341
20,318
24,185
65
(6,709)
506
38,365
17%
-69%
212%
8%
-55%
1,752
453
1,401
252
94
10,253
136
76
212
(7)
(27)
246
(29)
217
1,519
402
1,314
282
89
6,116
988
(316)
672
24
26
622
(29)
593
1,566
379
1,259
251
85
473
650
28
678
29
49
600
(29)
571
1,384
381
1,202
316
90
14,970
844
(116)
728
23
(18)
723
(29)
694
1,345
358
1,160
309
69
15,256
724
(17)
707
7
60
640
(28)
612
30%
27%
21%
-18%
36%
-33%
-81%
-70%
-62%
4%
-65%
6,221
1,615
5,176
1,101
358
31,812
2,618
(328)
2,290
69
30
2,191
(116)
2,075
4,772
1,319
4,250
1,131
287
50,124
4,264
(671)
3,593
71
21
3,501
(126)
3,375
30%
22%
22%
-3%
25%
-37%
-39%
-51%
-36%
-3%
43%
-37%
-8%
-39%
Effective July 1, 2015, U.S divisions RPS business included the assumption by New York Life (NYL) of the Companys in-force participating life insurance closed block (Closed Block) through net 60% reinsurance agreements. The Closed Block transaction
with NYL resulted in a net ceded premium of approximately $8.0 billion, reported as a reduction in premiums, net of commissions received and additional consideration received relating to New York Life retirement plan services business.
The volatility in investment income largely related to gains and losses on AFS bonds related to the management of interest rate exposures. These activities in the surplus segment are mostly offset in the measurement of our policy liabilities
(see change in insurance contract liabilities).
The volatility in realized/unrealized gains (losses) on assets supporting insurance and investment contract liabilities relates primarily to the impact of interest rate changes on bond and fixed income derivative positions as well as interest rate swaps
supporting the dynamic hedge program and gains and losses on macro equity hedges used as part of our equity risk management program . These items are mostly offset by changes in the measurement of our policy obligations. For fixed income assets
supporting insurance and investment contracts, equities supporting pass through products and derivatives related to variable annuity hedging programs, the impact of realized/ unrealized gains (losses) on the assets is largely offset in the change in
insurance and investment contract liabilities.
Page 8
2015
Q4
ASSETS
Invested assets
Cash and short-term securities
Securities
Debt securities
Public equities
Loans
Mortgages
Private placements
Policy loans
Loans to bank clients
Real estate
Other invested assets
Total invested assets
Other assets
Accrued investment income
Outstanding premiums
Derivatives
Goodwill and intangible assets
Reinsurance assets
Deferred tax asset
Miscellaneous
Total other assets
Segregated funds net assets
Total assets
2015
Q3
2015
Q2
2015
Q1
2014
Q4
17,885
19,005
15,647
18,589
21,079
157,827
16,983
150,788
16,068
148,606
17,315
159,758
17,484
134,446
14,543
43,818
27,578
7,673
1,778
15,347
20,378
309,267
43,864
26,043
7,481
1,761
14,848
19,737
299,595
45,063
26,652
8,641
1,750
13,193
18,526
295,393
45,114
26,352
8,697
1,770
12,391
18,525
308,680
39,458
23,284
7,876
1,772
10,101
16,751
269,310
2,275
878
24,272
9,384
35,426
4,067
5,825
82,127
313,249
704,643
2,068
840
25,615
9,127
34,740
3,766
6,597
82,753
301,276
683,624
2,182
812
17,581
8,460
19,428
3,576
7,690
59,729
303,589
658,711
2,248
918
26,606
7,790
20,649
3,471
6,225
67,907
312,302
688,889
2,003
737
19,315
5,461
18,525
3,329
4,194
53,564
256,532
579,406
287,059
3,497
18,114
1,235
15,050
14,953
339,908
1,853
7,695
313,249
662,705
278,445
3,910
18,222
1,274
16,581
14,516
332,948
1,829
6,681
301,276
642,734
258,264
3,769
18,037
1,277
11,185
13,842
306,374
3,432
6,639
303,589
620,034
269,710
3,806
18,555
1,497
16,173
16,760
326,501
4,004
6,647
312,302
649,454
229,513
2,644
18,384
1,228
11,283
14,365
277,417
3,885
5,426
2,220
256,532
545,480
2,693
22,799
277
8,398
2,693
22,790
276
8,517
2,693
22,785
275
8,259
2,693
22,768
275
8,023
2,693
20,556
267
7,624
(521)
345
(264)
7,432
41,159
187
592
41,938
704,643
(561)
422
(309)
6,271
40,099
214
577
40,890
683,624
(543)
611
(205)
4,077
37,952
188
537
38,677
658,711
(548)
1,175
(280)
4,694
38,800
139
496
39,435
688,889
(529)
794
(211)
2,112
33,306
156
464
33,926
579,406
Page 9
Preferred shares
Balance, beginning of period
Issued
Redeemed
Issuance costs, net of tax
Balance, end of period
Common shares
Balance, beginning of period
Issued on exercise of stock options and deferred share units
Issued under Dividend Reinvestment and Share Purchase Plans
Issued in exchange of subscription receipts
Balance, end of period
Contributed surplus
Balance, beginning of period
Exercise of stock options and deferred share units
Stock option expense
Balance, end of period
Shareholders' retained earnings
Balance, beginning of period
Net income attributed to shareholders
Preferred share dividends
Par redemption value in excess of carrying value for preferred shares redeemed
Common share dividends
Balance, end of period
Shareholders' accumulated other comprehensive income (loss)
Balance, beginning of period
Other comprehensive income (loss)
Remeasurement of pension and other post-employment plans, net of tax expense of $9
Real estate revaluation reserve, net of tax expense of nil
Available-for-sale ("AFS") securities unrealized gains (losses), net of tax recovery of $40
AFS securities realized losses (gains) & impairments (recoveries), net of tax recovery of $4
Cash flow hedges unrealized gains (losses), net of tax expense of $3
Cash flow hedges realized (gains) losses, net of tax expense of $2
Unrealized foreign exchange gains (losses), net of $30 hedges and tax recovery of $10
Share of other comprehensive income (loss) of associates, net of tax expense of $1
Balance, end of period
Total shareholders' equity, end of period
Participating policyholders' equity
Balance, beginning of period
Net income (loss) attributed to participating policyholders
Other comprehensive income attributed to participating policyholders
Balance, end of period
Non-controlling interests
Balance, beginning of period
Net income (loss) attributed to non-controlling interests
Other comprehensive income (loss) attributed to non-controlling interests
Contributions (distributions), net
Balance, end of period
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
YTD
2015
YTD
2014
2,693
2,693
2,693
2,693
2,693
2,693
2,693
2,693
2,447
250
(4)
2,693
2,693
2,693
2,693
800
(784)
(16)
2,693
22,790
9
22,799
22,785
5
22,790
22,768
17
22,785
20,556
6
2,206
22,768
20,234
43
279
20,556
275
(1)
2
276
275
(3)
3
275
267
(1)
9
275
266
(1)
2
267
267
(6)
16
277
256
(3)
14
267
8,517
246
(29)
(336)
8,398
8,259
622
(29)
(335)
8,517
8,023
600
(29)
(335)
8,259
7,624
723
(29)
(295)
8,023
7,301
640
(28)
(289)
7,624
7,624
2,191
(116)
(1,301)
8,398
5,294
3,501
(126)
(16)
(1,029)
7,624
5,823
3,940
5,041
2,166
1,479
2,166
40
(33)
(44)
42
3
1,161
6,992
(18)
(58)
(130)
(107)
3
2,194
(1)
5,823
5
(483)
(79)
73
2
(617)
(2)
3,940
(19)
1
411
(30)
(72)
3
2,581
5,041
(67)
252
(77)
(54)
2
631
2,166
8
1
(163)
(283)
(64)
11
5,319
(3)
6,992
214
(27)
187
188
26
214
139
49
188
156
(18)
1
139
96
60
156
156
30
1
187
134
21
1
156
577
(7)
(1)
23
592
537
24
(2)
18
577
496
29
(1)
13
537
464
23
2
7
496
459
7
(1)
(1)
464
464
69
(2)
61
592
376
71
3
14
464
38,677
39,435
33,306
33,926
41,159
(77)
697
(231)
(136)
9
1,854
4
2,166
37,952
40,890
38,800
46
40,099
41,938
Page 10
20,556
37
2,206
22,799
276
(1)
2
277
41,159
20,548
8
20,556
41,938
33,306
33,926
Operating activities
Net income (loss)
Adjustments
Increase (decrease) in insurance contract liabilities
Increase in investment contract liabilities
Decrease (increase) in reinsurance assets
Amortization of premium/discount on invested assets
Other amortization
Net realized (gains) losses, including impairments on assets
Deferred income tax expense (recovery)
Stock option expense
Cash provided by operating activities before undernoted items
Net cash decrease due to Closed Block reinsurance transaction
Changes in policy related and operating receivables and payables
Cash provided by operating activities
Investing activities
Purchases and mortgage advances
Disposals and repayments
Changes in investment broker net receivables and payables
Net cash decrease from sale and purchase of subsidiaries and businesses
Cash used in investing activities
Financing activities
Increase (decrease) in repurchase agreements and securities sold but not yet purchased
Repayment of long-term debt, net
Issue (redemption) of capital instruments, net
Issue of subscription receipts
Changes in deposits from bank clients, net
Shareholder dividends paid in cash
Funds borrowed (repaid), net
Secured borrowings from securitization transactions
Contributions from (distributions to) non-controlling interest, net
Common shares issued, net
Preferred shares issued, net
Preferred shares redeemed, net
Cash provided (used in) by financing activities
Cash and short-term securities
Increase (decrease) during the period
Effect of foreign exchange rate changes on cash and short-term securities
Balance, beginning of period
Balance, end of period
Cash and short-term securities
Beginning of period
Gross cash and short-term securities
Net payments in transit, included in other liabilities
Net cash and short-term securities, beginning of period
End of period
Gross cash and short-term securities
Net payments in transit, included in other liabilities
Net cash and short-term securities, end of period
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
212
672
678
728
707
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
YTD 2015
vs.
YTD 2014
-70%
2,290
3,593
-36%
2,063
26
(48)
18
141
2,080
(212)
2
4,282
(215)
4,067
5,741
56
1,041
36
135
(3,400)
84
2
4,367
(2,023)
(1,566)
778
(7,795)
75
737
23
172
9,834
(223)
3
3,504
(81)
3,423
7,443
46
(339)
13
132
(5,027)
8
9
3,013
(947)
2,066
8,123
(15)
262
(3)
127
(5,997)
(151)
2
3,055
135
3,190
-75%
11%
40%
0%
40%
27%
7,452
203
1,391
90
580
3,487
(343)
16
15,166
(2,023)
(2,809)
10,334
24,185
65
506
(1)
462
(17,312)
98
14
11,610
(804)
10,806
-69%
212%
175%
26%
14%
31%
249%
-4%
(19,326)
12,975
(212)
(6,563)
(19,784)
22,039
1,270
3,525
(19,425)
16,249
(764)
(374)
(4,314)
(18,574)
15,687
(192)
(3,434)
(6,513)
(16,219)
16,756
(132)
405
19%
-23%
61%
-
(77,109)
66,950
102
(3,808)
(13,865)
(62,754)
58,871
16
(199)
(4,066)
23%
14%
538%
nm
241%
57
995
(118)
(364)
(39)
161
23
9
724
31
(1,693)
148
(364)
(3)
175
18
5
(1,683)
(300)
(550)
(2)
(506)
(364)
(2)
13
17
(1,694)
746
125
(335)
(2)
100
7
6
647
80
498
6
(1,408)
(317)
4
(1)
8
246
(884)
-29%
100%
-100%
-92%
15%
13%
-100%
-
(212)
(2,243)
1,739
(351)
(1,427)
(46)
436
61
37
(2,006)
273
(1,000)
995
2,220
(1,526)
(910)
1
(59)
43
784
(800)
21
124%
75%
-100%
-77%
57%
-14%
-100%
-
(1,772)
447
18,327
17,002
2,620
735
14,972
18,327
(2,585)
(208)
17,765
14,972
(3,800)
1,128
20,437
17,765
2,711
316
17,410
20,437
41%
5%
-17%
(5,537)
2,102
20,437
17,002
6,761
790
12,886
20,437
166%
59%
-17%
19,005
(678)
18,327
15,647
(675)
14,972
18,589
(824)
17,765
21,079
(642)
20,437
17,971
(561)
17,410
6%
21%
5%
21,079
(642)
20,437
13,630
(744)
12,886
55%
-14%
59%
17,885
(883)
17,002
19,005
(678)
18,327
15,647
(675)
14,972
18,589
(824)
17,765
21,079
(642)
20,437
-15%
38%
-17%
17,885
(883)
17,002
21,079
(642)
20,437
-15%
38%
-17%
Page 11
Source of Earnings
2015
Q3
2015
Q2
2015
Q1
2014
Q4
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
1,262
(8)
(813)
(421)
153
(3)
170
76
246
(29)
217
1,262
1,190
33
255
(495)
(17)
(28)
938
(316)
622
(29)
593
1,243
1,171
(47)
(631)
(161)
171
69
572
28
600
(29)
571
1,221
1,062
(80)
(64)
(148)
109
(40)
839
(116)
723
(29)
694
1,162
981
(42)
(102)
(323)
111
32
657
(17)
640
(28)
612
1,108
29%
-81%
697%
30%
38%
-74%
-62%
4%
-65%
14%
4,685
(102)
(1,253)
(1,225)
416
(2)
2,519
(328)
2,191
(116)
2,075
4,888
3,809
(256)
767
(621)
484
(11)
4,172
(671)
3,501
(126)
3,375
4,389
YTD 2015
vs.
YTD 2014
2015
Q4
23%
-60%
97%
-14%
-82%
-40%
-51%
-37%
-8%
-39%
11%
Per OSFI instructions, the expected profit from in-force business denominated in foreign currencies is translated at the prior quarter's statement of financial position rate. 'Experience gains' includes the
adjustment to get to the income statement rate. For mutual fund, asset management businesses and Manulife Bank, all pretax income is reported in 'Expected profit from in-force business' except the non-capitalized acquisition expenses
which are reported in 'Impact of new business'.
Glossary
Expected profit from in-force business
Formula-driven release of PfADs (Provisions for Adverse Deviations) on the non-fee businesses and expected profit on fee
businesses. For mutual fund, asset management businesses and Manulife Bank, all pretax income is reported in 'Expected profit
from in-force business' except the non-capitalized acquisition expenses.
For non-fee income businesses, the capitalized value of future profits less PfADs in respect of new business. For fee income
businesses, the non-capitalized acquisition expenses.
Earnings impact of any differences between actual experience in the current period relative to expected experience implicit in the
actuarial liabilities, and differences in current period fee income due to market performance.
Other
Income taxes
Tax charges to income, consistent with the amount on the statement of income.
Page 12
ASIA DIVISION
(U.S. $ in millions, unless otherwise stated, Unaudited)
Statements of Income
Revenue
Premium income
Gross premiums
Premiums ceded to reinsurers
Investment income
Other revenue
Subtotal revenue
Realized/ unrealized gains on invested assets supporting insurance
and investment contract liabilities 1
Total revenue
Contract benefits and expenses
To contract holders and beneficiaries
Gross benefits and claims paid and change in insurance contract liabilities
Ceded benefits and expenses and change in reinsurance assets
Change in investment contract liabilities
General expenses
Investment expenses
Commissions
Other
Total contract benefits and expenses
Income (loss) before income taxes
Income tax (expense) recovery
Net income (loss)
Less net income (loss) attributed to non-controlling interests
Less net income (loss) attributed to participating policyholders
Net income (loss) attributed to shareholders 2
1
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
YTD 2015
vs.
YTD 2014
2,700
(85)
295
276
3,186
2,433
(87)
340
282
2,968
2,142
(81)
338
303
2,702
2,026
(95)
275
260
2,466
1,864
(96)
274
316
2,358
45%
-11%
8%
-13%
35%
9,301
(348)
1,248
1,121
11,322
7,013
(430)
1,150
1,208
8,941
33%
-19%
9%
-7%
27%
369
3,555
(486)
2,482
(535)
2,167
287
2,753
864
3,222
-57%
10%
(365)
10,957
2,486
(46)
(1)
352
24
349
31
3,195
360
(41)
319
4
(6)
321
1,670
(48)
33
301
27
299
30
2,312
170
(46)
124
15
11
98
1,220
(56)
24
299
32
291
30
1,840
327
(32)
295
24
10
261
1,918
(57)
15
270
31
255
29
2,461
292
(19)
273
18
14
241
2,303
(52)
(2)
311
30
265
30
2,885
337
(25)
312
6
9
297
8%
-12%
-50%
13%
-20%
32%
3%
11%
7%
64%
2%
-33%
8%
7,294
(207)
71
1,222
114
1,194
120
9,808
1,149
(138)
1,011
61
29
921
1,867
10,808
1%
7,472
(241)
2
1,090
111
927
105
9,466
1,342
(114)
1,228
51
48
1,129
-2%
-14%
nm
12%
3%
29%
14%
4%
-14%
21%
-18%
20%
-40%
-18%
For fixed income assets supporting insurance and investment contract liabilities, equities supporting pass through products and derivatives related to variable annuity hedging programs, the impact of realized/unrealized
gains (losses) on the assets is largely offset in the change in actuarial liabilities, included in contract benefits.
See the Q4 press release for a description of Q4 2015 results compared to Q4 2014.
Earnings Analysis
Total core earnings
264
264
272
272
244
242
239
236
229
223
15%
18%
1,019
1,014
913
860
12%
18%
(2)
262
16
288
6
250
239
(2)
227
0%
15%
20
1,039
56
969
-64%
7%
57
2
321
(190)
98
13
(2)
261
(14)
16
241
70
297
-19%
8%
157
3
1,129
433%
-18%
Page 13
(134)
16
921
ASIA DIVISION
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
YTD 2015
vs.
YTD 2014
Source of Earnings
Expected profit from in-force business
Impact of new business
Experience gains (losses)
Management actions and changes in assumptions
Earnings on surplus funds
Other
Income (loss) before income taxes
Income tax (expense) recovery
Net income (loss) attributed to shareholders
209
63
35
50
5
362
(41)
321
203
74
(176)
(5)
46
2
144
(46)
98
222
32
3
45
(9)
293
(32)
261
214
19
(14)
43
(2)
260
(19)
241
208
(6)
63
50
7
322
(25)
297
0%
-44%
0%
-29%
12%
64%
8%
848
188
(152)
(5)
184
(4)
1,059
(138)
921
855
(17)
190
1
192
22
1,243
(114)
1,129
-1%
-4%
-15%
21%
-18%
Insurance Sales
Hong Kong
Japan 1
Indonesia 2
Asia Other 3
Total insurance sales
Total insurance sales - on constant currency basis
127
148
26
115
416
416
97
160
21
101
379
379
84
169
24
97
374
369
70
163
26
79
338
330
98
141
34
91
364
345
29%
5%
-24%
26%
14%
20%
378
640
97
392
1,507
1,494
293
589
114
282
1,278
1,165
29%
9%
-15%
39%
18%
28%
Japan Q4'15 insurance sales are up 11% compared to the prior year on a constant currency basis. Full year 2015 insurance sales are up 24% compared to the prior year on a constant currency basis.
Indonesia Q4'15 insurance sales are down 13% compared to the prior year on a constant currency basis. Full year 2015 insurance sales down 4% compared to the prior year on a constant currency basis.
Asia Other Q4'15 insurance sales are up 35% compared to the prior year on a constant currency basis. Full year 2015 insurance sales are up 46% compared to the prior year on a constant currency basis.
660
27
108
1,714
2,509
660
68
111
1,032
1,871
674
110
130
4,241
5,155
573
164
215
1,753
2,705
562
165
262
1,481
2,470
17%
-84%
-59%
16%
2%
2,567
369
564
8,740
12,240
2,129
717
806
4,497
8,149
21%
-49%
-30%
94%
50%
2,509
1,856
5,005
2,634
2,355
7%
12,004
7,688
56%
Japan Q4'15 wealth & asset management gross flows are down 82% compared to the prior year on a constant currency basis. Full year 2015 wealth & asset management gross flows are down 41% compared to the prior year on a constant currency basis.
Indonesia Q4'15 wealth & asset management gross flows are down 54% compared to the prior year on a constant currency basis. Full year 2015 wealth & asset management gross flows are down 22% compared to the prior year on a constant currency basis.
Asia Other Q4'15 wealth & asset management gross flows are up 22% compared to the prior year on a constant currency basis. Full year 2015 wealth & asset management gross flows are up 101% compared to the prior year on a constant currency basis.
19
27
42
35
53
-64%
123
190
-35%
741
28
10
131
929
929
637
29
10
110
813
814
451
28
35
135
691
682
385
29
41
99
589
574
270
18
36
134
511
481
174%
56%
-72%
-2%
82%
93%
2,214
114
96
475
3,022
2,999
733
90
162
469
1,644
1,481
202%
27%
-41%
1%
84%
103%
1,048
33%
Japan Q4'15 other wealth sales are up 183% compared to the prior year on a constant currency basis. Full year 2015 other wealth sales are up 220% compared to the prior year on a constant currency basis.
Indonesia Q4'15 other wealth sales are down 67% compared to the prior year on a constant currency basis. Full year 2015 other wealth sales are down 34% compared to the prior year on a constant currency basis.
10
Asia Other Q4'15 other wealth sales are up 5% compared to the prior year on a constant currency basis. Full year 2015 other wealth sales are up 8% compared to the prior year on a constant currency basis.
381
382
365
268
325
17%
1,396
11
Pension sales include both new regular premiums and deposits and single premiums sales. New regular premiums and deposits reflect an estimate of expected deposits in the first year of the plan with the Company. Single premium sales reflect the assets
transferred from the previous plan provider.
Page 14
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
189
240
49
264
742
742
159
241
54
204
658
656
144
225
48
512
929
908
117
218
62
244
641
624
151
184
98
233
666
631
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
609
924
213
1,224
2,970
2,930
488
733
266
727
2,214
2,035
YTD 2015
vs.
YTD 2014
25%
30%
-50%
13%
11%
18%
Total annualized premium equivalents (APE) is comprised of 100 per cent of regular premiums/deposits sales and 10 per cent of single premiums/deposits sales, for insurance, wealth & asset management, and other wealth products.
Japan Q4'15 APE are up 38% compared to the prior year on a constant currency basis. Full year 2015 APE are up 44% compared to the prior year on a constant currency basis.
Indonesia Q4'15 APE are down 44% compared to the prior year on a constant currency basis. Full year 2015 APE are down 10% compared to the prior year on a constant currency basis.
Asia Other Q4'15 APE are up 21% compared to the prior year on a constant currency basis. Full year 2015 APE are up 76% compared to the prior year on a constant currency basis.
25%
26%
-20%
68%
34%
44%
2,625
537
2,293
5,455
5,455
2,355
544
1,659
4,558
4,540
2,076
558
4,975
7,609
7,420
1,938
522
2,530
4,990
4,868
1,779
590
2,258
4,627
4,408
48%
-9%
2%
18%
24%
8,994
2,161
11,457
22,612
22,283
6,630
2,110
7,445
16,185
15,075
36%
2%
54%
40%
48%
1,375
1,404
223
2,453
5,455
1,296
1,377
215
1,670
4,558
1,310
1,169
264
4,866
7,609
1,129
1,284
361
2,216
4,990
1,173
1,013
406
2,035
4,627
17%
39%
-45%
21%
18%
5,110
5,234
1,063
11,205
22,612
4,431
3,972
1,368
6,414
16,185
15%
32%
-22%
75%
40%
2,027
2,510
918
5,455
1,889
1,871
798
4,558
1,753
5,155
701
7,609
1,687
2,705
598
4,990
1,644
2,470
513
4,627
23%
2%
79%
18%
7,356
12,241
3,015
22,612
6,395
8,149
1,641
16,185
15%
50%
84%
40%
979
702
163
615
2,459
2,459
935
726
157
505
2,323
2,321
916
641
149
809
2,515
2,477
861
762
152
515
2,290
2,245
870
604
199
543
2,216
2,124
13%
16%
-18%
13%
11%
16%
3,691
2,831
621
2,444
9,587
9,502
3,315
2,581
651
1,839
8,386
7,831
11%
10%
-5%
33%
14%
21%
Japan Q4'15 TWPI is up 24% compared to the prior year on a constant currency basis. Full year 2015 TWPI is up 26% compared to the prior year on a constant currency basis.
Indonesia Q4'15 TWPI is down 8% compared to the prior year on a constant currency basis. Full year 2015 TWPI is up 8% compared to the prior year on a constant currency basis.
Asia Other Q4'15 TWPI is up 21% compared to the prior year on a constant currency basis. Full year 2015 TWPI is up 40% compared to the prior year on a constant currency basis.
Page 15
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
YTD
2015
2015 Q4
vs.
2014 Q4
YTD
2014
YTD 2015
vs.
YTD 2014
39,970
17,612
19,132
989
77,703
37,793
17,067
17,800
532
73,192
36,609
18,641
22,364
2,004
79,618
36,150
19,389
19,269
1,617
76,425
36,198
19,761
17,753
1,355
75,067
10%
-11%
8%
-27%
4%
39,970
17,612
19,132
989
77,703
36,198
19,761
17,753
1,355
75,067
10%
-11%
8%
-27%
4%
77,703
73,237
78,675
75,205
73,390
6%
77,703
73,390
6%
79,618
4,558
(4,008)
(5,350)
(1,626)
73,192
76,425
7,609
793
(4,308)
(901)
79,618
75,067
4,990
2,088
(3,611)
(2,109)
76,425
75,384
4,627
2,361
(4,141)
(3,164)
75,067
75,067
22,612
1,150
(16,018)
(5,108)
77,703
72,004
16,185
5,989
(14,194)
(4,917)
75,067
4%
40%
-81%
13%
4%
4%
Other funds mainly include funds managed by the Company for institutional clients in Other Asia Territories.
73,192
5,455
2,277
(2,749)
(472)
77,703
-3%
18%
-4%
-34%
-85%
4%
Investment income (loss) consists of gross investment income for the general fund and interest, dividends and net realized and unrealized gains and losses for the segregated funds, mutual funds and other funds.
Other is comprised of all changes to the statement of income and the statement of financial position that are not specifically identified in the roll forward. These include general expenses, investment expenses, taxes,
changes in receivables and payables, transfers to/from other business units and changes in allocated capital. This also includes deposits and withdrawals on externally managed funds which have not been included
in premiums and deposits, and benefits and withdrawals.
36,572
25,131
16,000
77,703
34,856
23,097
15,239
73,192
34,886
29,252
15,480
79,618
34,639
25,712
16,074
76,425
34,349
23,880
16,838
75,067
6%
5%
-5%
4%
36,572
25,131
16,000
77,703
34,349
23,880
16,838
75,067
6%
5%
-5%
4%
Number of Agents
Hong Kong
Japan
Indonesia
Asia Other
Total
7,092
2,589
8,417
44,982
63,080
6,508
2,593
8,699
42,821
60,621
6,298
2,572
9,840
40,521
59,231
6,272
2,513
10,081
39,081
57,947
6,584
2,593
9,021
39,678
57,876
8%
0%
-7%
13%
9%
7,092
2,589
8,417
44,982
63,080
6,584
2,593
9,021
39,678
57,876
8%
0%
-7%
13%
9%
554
3,353
1,241
428
7,289
107,557
496
2,448
1,064
129
5,965
98,029
461
6,340
850
320
9,358
99,324
419
3,354
730
299
6,188
96,943
413
2,805
579
336
5,256
87,083
34%
20%
114%
27%
39%
24%
1,930
15,495
3,885
1,176
28,800
107,557
1,412
9,014
1,818
1,247
17,897
87,083
37%
72%
114%
-6%
61%
24%
Page 16
2015
2015
2015
2015
2014
2015 Q4
2015
2014
Q4
Q3
Q2
Q1
Q42
vs.
2014 Q4
YTD
YTD2
2015 YTD
vs.
2014 YTD
83
65
23
171
171
71
63
21
155
155
59
37
20
116
115
47
33
15
95
94
67
35
20
122
118
260
198
79
537
535
205
93
69
367
349
27%
113%
14%
46%
53%
24%
86%
15%
40%
45%
NBV is not calculated for Wealth and Asset Management business and Manulife Bank.
Figures have been restated, see Changes to Assumptions and Methodology for 2014 in our Embedded Value Report.
Japan Q4'15 NBV is up 99% compared to the prior year on a constant currency basis. Full year 2015 NBV is up 141% compared to the prior year on a constant currency basis.
Indonesia and Asia Other Q4'15 NBV excludes non-recurring expenses impact of US$6m relating to preparation for DBS launch in 2016 and restructuring activity, and is up 30% compared to the prior year on a constant currency basis. Full year
2015 NBV is up 26% compared to the prior year on a constant currency basis.
NBV Margin5
Hong Kong
Japan
Indonesia and Asia Other
Total
64.2%
27.1%
17.4%
34.0%
70.7%
26.4%
18.4%
34.3%
66.7%
17.3%
16.7%
27.4%
64.6%
15.9%
15.8%
25.4%
65.3%
20.5%
16.2%
30.9%
66.5%
22.0%
17.1%
30.7%
64.7%
13.9%
17.5%
26.5%
Margins are calculated using annualized premium equivalent (APE) excluding non-controlling interest. APE is calculated as 100% of annualized first year premiums for recurring premium products,
and as 10% of single premiums for single premium products. Both NBV and APE used in the margin are calculated after non-controlling interest and exclude Wealth & Asset Management business.
Page 17
CANADIAN DIVISION
(Canadian $ millions, Unaudited)
Statements of Income
Revenue
Premium income
Gross premiums
Premiums ceded to reinsurers
Investment income
Other revenue
Subtotal revenue
Realized/ unrealized gains on invested assets supporting insurance
and investment contract liabilities 1
Total revenue
Contract benefits and expenses
Gross benefits and claims paid and change in insurance contract liabilities 1
Ceded benefits and expenses and change in reinsurance assets
Change in investment contract liabilities
General expenses
Investment expenses
Commissions
Other
Total contract benefits and expenses
Income (loss) before income taxes
Income tax (expense) recovery
Net income (loss)
Less net income (loss) attributed to participating policyholders
Net income (loss) attributed to shareholders 2
1
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
YTD 2015
vs.
YTD 2014
2,583
(1,559)
846
825
2,695
2,473
(1,306)
732
716
2,615
2,470
(1,343)
937
750
2,814
2,587
(1,475)
740
833
2,685
2,233
(1,341)
736
669
2,297
16%
16%
15%
23%
17%
10,113
(5,683)
3,255
3,124
10,809
9,086
(5,358)
3,298
2,611
9,637
11%
6%
-1%
20%
12%
(235)
2,460
76
2,691
(2,584)
230
2,007
4,692
1,377
3,674
-33%
(736)
10,073
4,136
13,773
-27%
2,620
(1,164)
10
475
149
381
154
2,625
(165)
44
(121)
(19)
1,926
(859)
(1)
408
146
401
175
2,196
495
(206)
289
11
(57)
(1,107)
29
433
130
404
128
(40)
270
(44)
226
35
4,192
(814)
10
399
140
404
201
4,532
160
(75)
85
(34)
3,587
(1,095)
(28)
364
112
361
164
3,465
209
(87)
122
49
-27%
6%
30%
33%
6%
-6%
-24%
-
8,681
(3,944)
48
1,715
565
1,590
658
9,313
760
(281)
479
(7)
12,913
(4,258)
3
1,381
430
1,396
636
12,501
1,272
(301)
971
(32)
-33%
-7%
nm
24%
31%
14%
3%
-26%
-40%
-7%
-51%
-78%
486
1,003
-52%
1,258
927
36%
(102)
278
191
119
73
For fixed income assets supporting insurance and investment contract liabilities, equities supporting pass through products and derivatives related to variable annuity hedging programs, the impact of realized/unrealized gains (losses)
on the assets is largely offset in the change in actuarial liabilities, included in contract benefits.
See the Q4 press release for a description of Q4 2015 results compared to Q4 2014.
Earnings Analysis
Total core earnings
Investment gains related to fixed income trading, market value increases in excess
of expected alternative assets investment returns, asset mix changes
Total core earnings and investment related gains
Items excluded from core earnings
Direct impact of equity markets and interest rates and
variable annuity guarantee liabilities 3
Tax items
Reinsurance recapture
Integration and acquisition costs
Total shareholders' net income (loss)
354
338
304
262
224
58%
(180)
174
(144)
194
14
318
(81)
181
(199)
25
-10%
596%
(391)
867
1
928
-7%
(201)
(52)
(23)
(102)
97
(13)
278
(114)
1
(14)
191
(65)
12
(9)
119
48
73
(283)
1
(40)
(59)
486
51
24
1,003
-52%
Segregated fund products include guarantees. These products are also referred to as variable annuities.
Page 18
CANADIAN DIVISION
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
YTD 2015
vs.
YTD 2014
375
(32)
(446)
(107)
73
(9)
(146)
44
(102)
393
(39)
67
(18)
72
9
484
(206)
278
365
(51)
(209)
3
82
45
235
(44)
191
340
(46)
(153)
10
78
(35)
194
(75)
119
313
(47)
(183)
(1)
65
13
160
(87)
73
20%
-32%
144%
nm
12%
-
1,473
(168)
(741)
(112)
305
10
767
(281)
486
1,161
(163)
40
62
261
(57)
1,304
(301)
1,003
27%
3%
17%
-41%
-7%
-52%
49
254
303
47
95
142
48
118
166
37
177
214
49
123
172
-1%
107%
76%
181
644
825
167
411
578
8%
57%
43%
2,149
(36)
1,819
3,932
2,000
(29)
2,242
4,213
2,062
(26)
1,887
3,923
2,566
(30)
1,870
4,406
1,579
(20)
1,145
2,704
36%
80%
59%
45%
8,777
(121)
7,818
16,474
6,290
(64)
4,251
10,477
40%
89%
84%
57%
712
156
868
629
152
781
765
158
923
851
186
1,037
400
130
530
78%
20%
64%
2,957
652
3,609
1,559
489
2,048
90%
33%
76%
Investments in mutual funds from proprietary products included above - for reference only
Retail segregated fund products2
584
547
510
649
457
28%
2,290
1,418
61%
562
933
593
602
529
6%
2,690
1,598
68%
1,039
2,149
(620)
2,531
833
1,051
6,983
1,172
2,000
(576)
2,873
804
1,012
7,285
1,189
2,062
(536)
2,653
851
1,031
7,250
1,178
2,566
(679)
2,722
837
1,202
7,826
978
1,579
(477)
1,551
773
1,023
5,427
6%
36%
30%
63%
8%
3%
29%
4,578
8,777
(2,411)
10,779
3,325
4,296
29,344
3,814
6,290
(1,482)
5,819
3,048
4,130
21,619
20%
40%
63%
85%
9%
4%
36%
Source of Earnings
Expected profit from in-force business
Impact of new business
Experience gains (losses)
Management actions and changes in assumptions
Earnings on surplus funds
Other
Income (loss) before income taxes
Income tax (expense) recovery
Net income (loss) attributed to shareholders
Insurance Sales
Retail Markets
Institutional Markets
Total insurance sales
Wealth and Asset Management Gross Flows
Mutual funds and other funds gross deposits1
Less: Investments in mutual funds from proprietary group segregated fund products
Group Retirement Solutions
Total wealth and asset management gross flows
Other Wealth Sales excluding Manulife Bank
Retail segregated fund products2
Fixed products
Total other wealth sales
Mutual funds and other funds gross deposits includes investments from proprietary segregated fund products.
Retail segregated fund products include guarantees. These products are also referred to as variable annuities.
Pension sales represent both new regular premiums and deposits and single premiums sales. New regular premiums and deposits reflect an estimate of expected deposits in the first year of the plan with the Company. Single premium sales reflect the assets transferred from the
previous plan provider. Pension sales also include sales of Group Retirement Solutions Other Wealth products.
Page 19
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
YTD 2015
vs.
YTD 2014
428
2,339
2,767
3,932
712
156
868
(584)
6,983
570
2,267
2,837
4,213
630
152
782
(547)
7,285
564
2,357
2,921
3,923
765
151
916
(510)
7,250
571
2,455
3,026
4,406
850
193
1,043
(649)
7,826
535
2,111
2,646
2,704
404
130
534
(457)
5,427
-20%
11%
5%
45%
76%
20%
63%
28%
29%
2,133
9,418
11,551
16,474
2,957
652
3,609
(2,290)
29,344
2,049
8,459
10,508
10,477
1,563
489
2,052
(1,418)
21,619
4%
11%
10%
57%
89%
33%
76%
61%
36%
83,592
19,350
92,447
44,884
(21,587)
218,686
83,971
19,352
90,076
43,201
(20,971)
215,629
84,522
19,320
91,615
43,296
(21,280)
217,473
86,984
19,410
92,713
43,097
(21,494)
220,710
65,644
19,426
57,028
33,411
(16,605)
158,904
27%
0%
62%
34%
30%
38%
83,592
19,350
92,447
44,884
(21,587)
218,686
65,644
19,426
57,028
33,411
(16,605)
158,904
27%
0%
62%
34%
30%
38%
57,035
100,846
19,350
61,861
(20,406)
218,686
56,065
97,351
19,352
62,750
(19,889)
215,629
57,215
97,957
19,320
63,147
(20,166)
217,473
57,651
98,115
19,410
65,909
(20,375)
220,710
47,365
60,856
19,426
47,138
(15,881)
158,904
20%
66%
0%
31%
28%
38%
57,035
100,846
19,350
61,861
(20,406)
218,686
47,365
60,856
19,426
47,138
(15,881)
158,904
20%
66%
0%
31%
28%
38%
215,629
5,100
4,104
(889)
(3,811)
(1,447)
218,686
217,473
5,468
(1,600)
(755)
(3,422)
(1,535)
215,629
220,710
5,368
(3,103)
(773)
(3,437)
(1,292)
217,473
158,904
54,416
5,787
7,569
(828)
(3,604)
(1,534)
220,710
156,025
3,631
4,194
(671)
(2,131)
(2,144)
158,904
38%
40%
-2%
32%
79%
-33%
38%
158,904
54,416
21,723
6,970
(3,245)
(14,274)
(5,808)
218,686
145,211
14,441
15,150
(2,327)
(8,759)
(4,812)
158,904
9%
50%
-54%
39%
63%
21%
38%
Retail segregated fund products include guarantees. These products are also referred to as variable annuities.
Wealth & asset management includes investments from proprietary retail segregated funds.
Investment income (loss) consists of gross investment income for the general fund and interest, dividends and net realized and unrealized gains and losses for the mutual and segregated funds.
Other is comprised of all changes to the statement of income and the statement of financial position that are not specifically identified in the roll forward. These include general expenses, investment expenses, taxes, changes in receivables
and payables, transfers to/from other business units, changes in allocated capital, and net movement in Manulife Bank deposits.
Page 20
U.S. DIVISION
(U.S. $ in millions, unless otherwise stated, Unaudited)
Statements of Income
Revenue
Premium income
Gross premiums
Premiums ceded to reinsurers
Premiums ceded, net of ceded commissions and additional consideration relating to
Closed Block reinsurance transaction 1
Investment income
Other revenue
Subtotal revenue
Realized/ unrealized gains (losses) on invested assets supporting insurance
and investment contract liabilities 2
Total revenue
Contract benefits and expenses
To contract holders and beneficiaries
Gross benefits and claims paid and change in insurance contract liabilities 2
Ceded benefits and expenses and change in reinsurance assets 1
Change in investment contract liabilities
General expenses
Investment expenses
Commissions
Other
Total contract benefits and expenses
Income (loss) before income taxes
Income tax (expense) recovery
Net income (loss) attributed to shareholders 3
1
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
YTD 2015
vs.
YTD 2014
2,070
(448)
1,927
(421)
1,893
(351)
1,845
(332)
2,088
(400)
-1%
12%
7,735
(1,552)
7,516
(1,424)
3%
9%
1,304
1,052
3,978
(6,109)
1,193
1,084
(2,326)
1,438
1,049
4,029
1,294
997
3,804
1,450
1,024
4,162
-10%
3%
-4%
(6,109)
5,229
4,182
9,485
5,610
4,102
15,804
-7%
2%
-40%
(1,465)
2,513
3,033
707
(5,622)
(1,593)
2,433
6,237
3,483
7,645
-67%
(1,621)
7,864
10,154
25,958
-70%
1,889
(803)
13
361
260
431
39
2,190
323
(68)
5,388
(6,250)
12
351
219
410
37
167
540
(139)
(2,860)
30
12
398
216
421
40
(1,743)
150
(1)
5,585
(898)
14
326
213
405
40
5,685
552
(163)
6,502
(605)
13
340
242
455
61
7,008
637
(193)
-71%
33%
0%
6%
7%
-5%
-36%
-69%
-49%
-65%
10,002
(7,921)
51
1,436
908
1,667
156
6,299
1,565
(371)
21,266
(2,156)
54
1,311
872
1,707
179
23,233
2,725
(779)
-53%
267%
-6%
10%
4%
-2%
-13%
-73%
-43%
-52%
389
444
-43%
1,194
1,946
-39%
255
401
149
Effective July 1, 2015, U.S divisions RPS business included the assumption by New York Life (NYL) of the Companys in-force participating life insurance closed block (Closed Block) through net 60% reinsurance agreements. The Closed Block
transaction with NYL resulted in a net ceded premium of approximately US$6.1 billion, reported as a reduction in premiums, net of commissions received and additional consideration received relating to New York Life retirement plan services business.
For fixed income assets supporting insurance and investment contract liabilities, equities supporting pass through products and derivatives related to variable annuity hedging programs, the impact of realized/unrealized gains
(losses) on the assets is largely offset in the change in actuarial liabilities, included in contract benefits. The gains (losses) primarily relate to fair value movements on bonds and derivatives.
See the Q4 press release for a description of Q4 2015 results compared to Q4 2014.
Earnings Analysis
Total core earnings
Investment gains related to fixed income trading, market value increases in excess
of expected alternative assets investment returns, asset mix changes
Total core earnings and investment related gains
Items excluded from core earnings
Direct impact of equity markets and interest rates and
variable annuity guarantee liabilities
Integration and acquisition costs
Total shareholders' net income (loss)
262
300
327
316
297
-12%
1,205
1,252
-4%
(109)
153
(26)
274
52
379
(8)
308
(136)
161
-20%
-5%
(91)
1,114
447
1,699
-34%
106
(4)
255
134
(7)
401
(204)
(26)
149
81
389
283
444
-63%
-43%
117
(37)
1,194
247
1,946
-53%
-39%
Page 21
U.S. DIVISION
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
YTD 2015
vs.
YTD 2014
179
16
(304)
85
(7)
(31)
31
-
185
35
67
85
(33)
339
(110)
229
142
23
(194)
85
25
81
81
144
3
273
85
(4)
501
(169)
332
137
53
180
84
3
457
(152)
305
31%
-70%
1%
-100%
650
77
(158)
340
(19)
890
(248)
642
641
97
1,170
5
336
8
2,257
(722)
1,535
1%
-21%
-100%
1%
-61%
-66%
-58%
U.S. INSURANCE
Source of Earnings
Expected profit from in-force business 1
Impact of new business
Experience gains (losses) 1
Management actions and changes in assumptions
Earnings on surplus funds
Other
Income (loss) before income taxes
Income tax (expense) recovery
Net income (loss) attributed to shareholders
1
In 3Q15 a refinement was implemented to the attribution of the change in provisions for adverse deviation for the long-term care business. This refinement resulted in a US$27 increase in expected profit on in-force offset by a US$27 million increase in policyholder experience
240
(49)
133
(6)
32
4
354
(99)
255
238
(46)
(16)
(9)
31
3
201
(29)
172
258
(45)
(137)
(41)
33
1
69
(1)
68
231
(43)
(167)
31
(1)
51
6
57
240
(43)
(48)
31
180
(41)
139
0%
14%
3%
97%
141%
83%
967
(183)
(187)
(56)
127
7
675
(123)
552
904
(162)
(397)
(3)
127
(1)
468
(57)
411
7%
13%
-53%
nm
0%
44%
116%
34%
419
(33)
(171)
(6)
117
(3)
323
(68)
255
423
(11)
51
(9)
116
(30)
540
(139)
401
400
(22)
(331)
(41)
118
26
150
(1)
149
375
(40)
106
116
(5)
552
(163)
389
377
10
132
115
3
637
(193)
444
11%
2%
-49%
-65%
-43%
1,617
(106)
(345)
(56)
467
(12)
1,565
(371)
1,194
1,545
(65)
773
2
463
7
2,725
(779)
1,946
5%
63%
1%
-43%
-52%
-39%
119
8
127
114
12
126
108
10
118
106
11
117
140
14
154
-14%
-45%
-17%
447
41
488
439
62
501
2%
-34%
-3%
7,430
5,914
13,344
7,763
5,253
13,016
6,868
4,226
11,094
6,148
3,578
9,726
5,755
3,139
8,894
29%
88%
50%
28,209
18,971
47,180
24,689
12,881
37,570
14%
47%
26%
3,139
1,801
1,109
1,122
1,364
130%
7,171
4,467
61%
Pension sales include both new regular premiums and deposits and single premiums sales. New regular premiums and deposits reflect an estimate of expected deposits in the first year of the plan with the Company. Single premium sales reflect the assets transferred from
the previous plan provider.
Page 22
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
YTD 2015
vs.
YTD 2014
1,622
3,710
10,056
15,388
1,506
3,641
9,766
14,913
1,542
3,620
7,939
13,101
1,513
3,951
6,172
11,636
1,688
3,541
5,797
11,026
-4%
5%
73%
40%
6,183
14,922
33,933
55,038
6,092
14,414
24,905
45,411
1%
4%
36%
21%
JH Life
JH Long-Term Care
Total premiums and deposits - insurance
1,145
561
1,706
1,100
557
1,657
1,111
549
1,660
1,111
533
1,644
1,300
566
1,866
-12%
-1%
-9%
4,467
2,200
6,667
4,449
2,216
6,665
0%
-1%
0%
338
338
240
240
347
347
266
266
266
266
27%
27%
1,191
1,191
1,176
1,176
1%
1%
108,690
140,377
84,117
333,184
55,017
388,201
108,298
138,802
79,849
326,949
52,596
379,545
114,742
149,490
80,615
344,847
55,256
400,103
119,333
151,945
78,504
349,782
349,782
117,821
150,330
75,382
343,533
343,533
-8%
-7%
12%
-3%
13%
108,690
140,377
84,117
333,184
55,017
388,201
117,821
150,330
75,382
343,533
343,533
-8%
-7%
12%
-3%
13%
100,135
164,490
68,559
333,184
55,017
388,201
98,772
158,698
69,479
326,949
52,596
379,545
108,099
165,578
71,170
344,847
55,256
400,103
110,774
163,822
75,186
349,782
349,782
109,079
158,958
75,496
343,533
343,533
-8%
3%
-9%
-3%
13%
100,135
164,490
68,559
333,184
55,017
388,201
109,079
158,958
75,496
343,533
343,533
-8%
3%
-9%
-3%
13%
379,545
15,388
7,017
(4,802)
(5,876)
(3,109)
38
388,201
400,103
14,913
(11,445)
(4,455)
(5,120)
(2,949)
(11,502)
379,545
349,782
56,587
13,101
(5,292)
(4,319)
(5,309)
(3,351)
(1,096)
400,103
343,533
11,636
8,648
(4,248)
(3,724)
(3,740)
(2,323)
349,782
336,297
11,026
9,005
(4,362)
(4,290)
(3,480)
(663)
343,533
13%
40%
-22%
10%
37%
-11%
13%
343,533
56,587
55,038
(1,072)
(17,824)
(20,029)
(13,149)
(14,883)
388,201
320,064
45,411
28,503
(14,722)
(14,887)
(14,820)
(6,016)
343,533
7%
21%
21%
35%
-11%
147%
13%
554
41,488
2,147
50,153
398,529
13%
46%
-29%
41%
35%
Excludes the impact of the net ceded premium related to the Closed Block reinsurance transaction in 3Q15 and full year 2015.
Investment income (loss) consists of gross investment income for the general fund and interest, dividends and net realized and unrealized gains and losses for the segregated funds.
Other is comprised of all changes to the statement of income and the statement of financial position that are not specifically identified in the roll forward. These include general expenses, investment expenses, taxes, changes in
receivables and payables, transfers to/from other business units and changes in allocated capital. For 3Q15 and full year 2015, includes US$11.3 billion related to the Closed Block reinsurance transaction.
170
17,830
341
20,562
537,302
165
17,036
525
19,520
508,363
Page 23
144
13,642
183
16,108
499,068
146
12,059
482
14,428
443,603
175
10,100
506
12,519
398,529
-3%
77%
-33%
64%
35%
625
60,567
1,531
70,618
537,302
Statements of Income
Revenue
Gross investment income before items below
Gains (losses) on AFS equities
Gains (losses) on AFS bonds and related derivative positions
Gains (losses) on macro hedges
Interest on surplus funds allocated to divisions
Other revenue
Total revenue, net
Contract benefits and expenses
General expenses
Investment expenses, net
Changes in actuarial methods and assumptions
Other
Total contract benefits and expenses
Income (loss) before income taxes
Income tax (expense) recovery
Net income (loss)
Less net income (loss) attributed to non-controlling interest
Net income (loss) attributed to shareholders - Corporate and Investments
Net income attributed to shareholders' for Reinsurance business
Net income (loss) attributed to shareholders
1
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
YTD 2015
vs.
YTD 2014
157
60
(17)
(214)
(294)
93
(215)
198
45
262
(286)
(15)
204
250
69
35
2
(268)
74
162
183
61
(25)
(46)
(269)
35
(61)
171
57
(19)
(134)
(249)
109
(65)
-8%
5%
-11%
60%
18%
-15%
231%
788
235
(7)
4
(1,117)
187
90
827
154
(59)
(400)
(977)
259
(196)
-5%
53%
-88%
14%
-28%
-
321
(77)
149
41
434
(649)
183
(466)
(13)
(453)
32
256
(66)
346
135
671
(467)
135
(332)
6
(338)
28
272
(54)
70
121
409
(247)
118
(129)
(1)
(128)
34
246
(62)
41
100
325
(386)
186
(200)
(200)
23
241
(63)
239
130
547
(612)
319
(293)
(293)
18
33%
22%
-38%
-68%
-21%
6%
-43%
59%
55%
78%
1,095
(259)
606
397
1,839
(1,749)
622
(1,127)
(8)
(1,119)
117
729
(197)
377
482
1,391
(1,587)
619
(968)
15
(983)
87
50%
31%
61%
-18%
32%
10%
0%
16%
14%
34%
(421)
(310)
(94)
(177)
(275)
53%
(1,002)
(896)
12%
(198)
(217)
(104)
(153)
(109)
82%
(672)
(430)
56%
(32)
(230)
(12)
(229)
(8)
(112)
13
(140)
(48)
(157)
-33%
46%
(39)
(711)
(186)
(616)
-79%
15%
(46)
(97)
(11)
(37)
(421)
209
(285)
(5)
(310)
41
(47)
(8)
32
(94)
(4)
(22)
(21)
10
(177)
(71)
(59)
12
(275)
-35%
64%
53%
200
(451)
(45)
5
(1,002)
(94)
(198)
12
(896)
128%
-58%
12%
See the Q4 press release for a description of Q4 2015 results compared to Q4 2014.
Earnings Analysis
Total core earnings
Investment-related experience including fixed income trading, market value increases in excess of expected alternative assets
investment returns, asset mix changes and credit experience (excl. investment-related experience in core earnings)
Total core earnings and investment related gains in excess of core investment gains
Items excluded from core earnings
Direct impact of equity markets and interest rates
Change in actuarial methods and assumptions (excl. URR changes)
Integration and acquisition costs
Other items
Net income (loss) attributed to shareholders
Wealth and Asset Management Gross Flows
Institutional advisory accounts2
Total wealth and asset management gross flows
5,974
5,974
2,165
2,165
10,987
10,987
3,024
3,024
2,276
2,276
162%
162%
22,150
22,150
8,185
8,185
171%
171%
5,974
26
6,000
2,165
24
2,189
10,987
21
11,008
3,024
19
3,043
2,276
18
2,294
162%
44%
162%
22,150
90
22,240
8,185
77
8,262
171%
17%
169%
(494)
1,059
(171)
71,237
71,631
(422)
1,023
(167)
65,528
65,962
1,451
945
(214)
64,680
66,862
3,810
954
(223)
55,548
60,089
4,276
966
(202)
41,573
46,613
10%
-15%
71%
54%
(494)
1,059
(171)
71,237
71,631
4,276
966
(202)
41,573
46,613
10%
-15%
71%
54%
Includes only the third party institutional business of Manulife Asset Management and not business from affiliates and the General Fund
Page 24
Asset
Information
As at
Q4 2015
As at
Q3 2015
As at
Q2 2015
As at
Q1 2015
As at
Q4 2014
Carrying value
Cash and short-term securities
Debt securities
Government
Canadian government & agency
US government & agency
Foreign governments & agency
Corporate
Securitized
CMBS
RMBS
ABS
Total debt securities
Private placement debt
Mortgages
Commercial
Retail
Office
Multi family residential
Industrial
Other commercial
Other mortgages
Manulife Bank single family residential
Agriculture
1
Total mortgages
17,885
5.8 %
19,005
6.4 %
15,647
5.3 %
18,589
6.0 %
21,079
7.8
21,283
28,652
19,583
85,194
6.9
9.3
6.3
27.5
%
%
%
%
19,690
26,277
18,532
82,999
6.5
8.8
6.2
27.7
%
%
%
%
21,359
24,402
17,152
81,967
7.2
8.3
5.8
27.8
%
%
%
%
24,022
28,803
17,391
85,747
7.8
9.3
5.6
27.8
%
%
%
%
17,620
24,836
15,327
73,265
6.5
9.2
5.7
27.2
%
%
%
%
841
76
2,198
157,827
0.3
0.0
0.7
51.0
%
%
%
%
883
191
2,216
150,788
0.3
0.1
0.7
50.3
%
%
%
%
1,026
239
2,461
148,606
0.3
0.1
0.8
50.3
%
%
%
%
1,100
254
2,441
159,758
0.4
0.1
0.8
51.8
%
%
%
%
933
249
2,216
134,446
0.4
0.1
0.8
49.9
%
%
%
%
8.9 %
26,043
8.7 %
26,652
9.0 %
26,352
8.5 %
23,284
8.6
%
%
%
%
%
6,359
6,160
3,863
2,127
2,221
2.4
2.3
1.4
0.8
0.8
%
%
%
%
%
5.7 %
0.4 %
14.6 %
17,619
1,109
39,458
6.6
0.4
14.7
%
%
%
27,578
7,985
7,137
4,624
2,831
2,780
17,523
938
43,818
2.6
2.3
1.5
0.9
0.9
%
%
%
%
%
7,768
7,369
4,543
2,803
2,770
5.7 %
0.3 %
14.2 %
17,547
1,064
43,864
2.6
2.4
1.5
0.9
0.9
%
%
%
%
%
8,048
8,779
4,438
2,802
2,382
5.9 %
0.4 %
14.6 %
17,529
1,085
45,063
2.7
3.0
1.5
1.0
0.8
%
%
%
%
%
7,935
8,789
4,408
2,885
2,341
5.9 %
0.4 %
15.3 %
17,608
1,148
45,114
2.6
2.8
1.4
0.9
0.8
Policy loans
7,673
2.5 %
7,481
2.5 %
8,641
2.9 %
8,697
2.8 %
7,876
2.9
1,778
0.6 %
1,761
0.6 %
1,750
0.6 %
1,770
0.6 %
1,772
0.7
Public equities
Par, equity-linked and pass-through
Nonpar and surplus
Total public equities
10,516
6,467
16,983
3.4 %
2.1 %
5.5 %
9,933
6,135
16,068
3.3 %
2.1 %
5.4 %
10,473
6,842
17,315
3.5 %
2.4 %
5.9 %
10,473
7,011
17,484
3.4 %
2.3 %
5.7 %
9,667
4,876
14,543
3.6
1.8
5.4
%
%
%
10,804
928
1,379
2,236
15,347
5,260
3,754
3,553
1,740
1,539
435
31,628
3,549
194
354
35,725
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
7,077
672
831
1,521
10,101
4,002
2,758
2,694
2,161
1,255
289
23,260
2,925
377
290
26,852
2.6
0.3
0.3
0.6
3.8
1.5
1.0
1.0
0.8
0.5
0.1
8.7
1.1
0.1
0.1
10.0
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
100.0 %
269,310
100.0
309,267
3.5
0.3
0.5
0.7
5.0
1.7
1.2
1.1
0.6
0.5
0.1
10.2
1.1
0.1
0.1
11.5
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
10,323
898
1,495
2,132
14,848
5,051
3,537
3,350
1,871
1,485
416
30,558
3,415
267
345
34,585
100.0 %
299,595
3.5
0.3
0.5
0.7
5.0
1.7
1.2
1.1
0.6
0.5
0.1
10.2
1.1
0.1
0.1
11.5
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
9,308
865
946
2,074
13,193
4,529
3,172
3,191
1,993
1,363
412
27,853
3,163
376
327
31,719
100.0 %
295,393
3.2
0.3
0.3
0.7
4.5
1.5
1.1
1.1
0.7
0.4
0.1
9.4
1.1
0.1
0.1
10.7
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
%
8,645
855
956
1,935
12,391
4,338
3,103
3,245
2,121
1,372
413
26,983
3,205
401
327
30,916
100.0 %
308,680
2.8
0.3
0.3
0.6
4.0
1.4
1.0
1.1
0.7
0.5
0.1
8.8
1.0
0.1
0.1
10.0
Fair value
Real estate
Total alternative long-duration assets
Total real estate & other invested assets
2
16,425
32,686
36,783
15,645
31,339
35,366
13,959
28,649
32,515
13,172
27,778
31,711
10,836
24,030
27,622
The fair values of real estate and other investments are disclosed in the table above since the changes in the fair value of those assets backing insurance and investment contract liabilities are reflected as earnings/charges through actuarial reserves.
Page 25
INVESTED ASSETS - FIXED INCOME SECURITIES BY CREDIT QUALITY AND GEOGRAPHIC LOCATION
(Canadian $ in millions, unaudited)
Debt Securities
Debt Securities and Private Placement Portfolio by Credit Quality (at carrying value)
Credit
NAIC
Rating 1
designation
Q4 2015
AAA
40,972
26%
37,330
25%
37,648
25%
44,149
28%
38,620
29%
AA
21,998
14%
20,410
14%
32,180
22%
33,061
21%
27,796
21%
65,507
41%
65,095
43%
50,511
34%
54,432
34%
43,741
32%
BBB
26,144
17%
24,838
16%
24,977
17%
24,555
15%
21,199
16%
BB
2,698
2%
2,528
2%
2,556
2%
2,783
2%
2,439
2%
4 & below
508
0%
587
0%
734
0%
778
0%
651
0%
157,827
100%
150,788
100%
148,606
100%
159,758
100%
134,446
100%
Private Placements
Total
Total
As at
%
Q3 2015
As at
%
Q2 2015
As at
%
Q1 2015
As at
%
Q4 2014
AAA
1,030
4%
1,010
4%
1,013
4%
1,034
4%
985
4%
AA
3,886
14%
3,813
15%
3,600
14%
3,515
13%
3,195
14%
9,813
36%
8,913
34%
9,123
34%
8,950
34%
6,565
28%
BBB
10,791
39%
10,312
39%
10,782
40%
10,934
42%
10,244
44%
BB
1,113
4%
1,242
5%
1,294
5%
1,182
4%
1,269
6%
4 & below
945
3%
753
3%
840
3%
737
3%
1,026
4%
27,578
100%
26,043
100%
26,652
100%
26,352
100%
23,284
100%
Total
AAA
42,002
23%
38,340
21%
38,661
22%
45,183
24%
39,605
25%
AA
25,884
14%
24,223
14%
35,780
21%
36,576
20%
30,991
20%
75,320
40%
74,008
42%
59,634
34%
63,382
34%
50,306
32%
BBB
36,935
20%
35,150
20%
35,759
20%
35,489
19%
31,443
20%
BB
3,811
2%
3,770
2%
3,850
2%
3,965
2%
3,708
2%
4 & below
1,453
1%
1,340
1%
1,574
1%
1,515
1%
1,677
1%
185,405
100%
176,831
100%
175,258
100%
186,110
100%
157,730
100%
Total
1
As at
The Company replicates exposure to specific issuers by selling credit protection via credit default swaps (CDS) to complement its cash bond investments. The Company does not use CDS to leverage its credit risk exposure and any CDS protection sold is
backed by government security holdings. In order to reflect the actual credit exposure held by the Company, the credit quality carrying values have been adjusted to reflect the credit quality of the underlying issuers referenced in the CDS sold by the
Company. At December 31, 2015, the Company had $747 (September 30, 2015: $707) notional outstanding of CDS protection sold.
Debt Securities and Private Placement Portfolio by Geographic Location (at carrying value)
Total
Private Placements
Debt Securities
As at
As at
%
Q3 2015
As at
%
Q2 2015
As at
%
Q1 2015
As at
Country
Q4 2015
Q4 2014
U.S.
73,333
47%
70,093
46%
69,241
47%
76,990
48%
67,281
50%
Canada
44,708
28%
43,363
29%
43,570
29%
47,130
30%
35,657
26%
Europe
4,830
3%
4,576
3%
5,184
3%
5,420
3%
4,996
4%
34,956
22%
32,756
22%
30,611
21%
30,218
19%
26,512
20%
Total
157,827
100%
150,788
100%
148,606
100%
159,758
100%
134,446
100%
U.S.
16,254
59%
15,311
59%
15,114
57%
14,947
57%
13,980
60%
Canada
8,375
31%
7,952
31%
8,755
33%
8,725
33%
6,849
29%
Europe
1,745
6%
1,688
6%
1,807
7%
1,712
6%
1,304
6%
1,204
4%
1,092
4%
976
3%
968
4%
1,151
5%
Total
27,578
100%
26,043
100%
26,652
100%
26,352
100%
23,284
100%
U.S.
89,587
48%
85,404
48%
84,355
48%
91,937
49%
81,261
51%
Canada
53,083
29%
51,315
29%
52,325
30%
55,855
30%
42,506
27%
Europe
6,575
4%
6,264
4%
6,991
4%
7,132
4%
6,300
4%
36,160
19%
33,848
19%
31,587
18%
31,186
17%
27,663
18%
185,405
100%
176,831
100%
175,258
100%
186,110
100%
157,730
100%
Total
Page 26
INVESTED ASSETS - FIXED INCOME SECURITIES BY CREDIT QUALITY AND GEOGRAPHICAL LOCATION
Debt Securities and Private Placement Portfolio by Sector / Industry Holdings (at carrying value)
As at Q4 2015
Carrying
Debt Securities
value
grade %
value
As at Q2 2015
Investment
Carrying
grade %
value
As at Q1 2015
Investment
Carrying
grade %
value
As at Q4 2014
Investment
Carrying
grade %
value
Investment
%
grade %
69,518
44%
98%
64,499
43%
98%
62,913
42%
98%
70,216
44%
98%
57,783
43%
98%
Utilities
21,326
14%
99%
20,697
14%
99%
20,002
14%
99%
21,430
14%
99%
17,919
13%
99%
Financial
22,669
14%
96%
22,190
15%
96%
22,724
15%
96%
23,582
15%
95%
20,237
15%
95%
Energy
11,528
7%
96%
11,482
7%
97%
11,041
7%
96%
11,529
7%
96%
9,990
8%
98%
Consumer (non-cyclical)
8,382
5%
100%
8,138
5%
100%
7,702
5%
100%
8,311
5%
100%
7,065
5%
100%
Industrial
9,366
6%
100%
9,006
6%
100%
8,168
6%
100%
8,183
5%
100%
7,029
5%
100%
Basic materials
2,506
2%
89%
2,537
2%
89%
3,065
2%
92%
3,187
2%
91%
2,845
2%
91%
Consumer (cyclical)
2,812
2%
99%
2,557
2%
99%
2,578
2%
99%
2,784
2%
99%
2,324
2%
99%
Securitized MBS/ABS
3,115
2%
98%
3,290
2%
95%
3,726
3%
93%
3,795
2%
93%
3,398
3%
92%
Telecommunications
2,983
2%
99%
2,943
2%
100%
3,048
2%
100%
3,095
2%
100%
2,509
2%
100%
Technology
1,811
1%
100%
1,721
1%
100%
1,879
1%
100%
1,863
1%
100%
1,687
1%
100%
1,155
1%
100%
1,156
1%
100%
1,233
1%
100%
1,300
1%
100%
1,240
1%
100%
656
0%
100%
572
0%
99%
527
0%
99%
483
0%
98%
420
0%
98%
157,827
100%
98%
150,788
100%
98%
148,606
100%
98%
159,758
100%
98%
134,446
100%
98%
100%
Total
Government & agency
Private Placements
Carrying
2,914
11%
100%
2,821
11%
100%
2,599
10%
100%
2,616
10%
100%
2,412
10%
Utilities
13,564
49%
94%
12,548
48%
94%
12,472
47%
93%
12,288
47%
93%
10,907
47%
93%
Financial
1,849
7%
96%
1,692
7%
96%
1,614
6%
96%
1,694
6%
96%
1,447
6%
95%
Energy
1,894
7%
85%
1,889
7%
84%
2,051
8%
82%
1,959
7%
88%
1,989
9%
85%
Consumer (non-cyclical)
2,450
9%
90%
2,359
9%
90%
2,710
10%
92%
2,803
11%
93%
2,125
9%
91%
Industrial
2,088
8%
93%
2,065
8%
93%
2,508
9%
94%
2,253
9%
96%
1,508
7%
94%
54%
Basic materials
Consumer (cyclical)
Securitized MBS/ABS
Telecommunications
Technology
Media & internet
Diversified & miscellaneous
832
3%
83%
849
3%
80%
880
3%
73%
904
3%
73%
1,170
5%
1,613
6%
86%
1,467
6%
90%
1,496
6%
89%
1,516
6%
90%
1,415
6%
81%
100
0%
91%
92
0%
100%
40
0%
100%
43
0%
100%
41
0%
100%
79%
76
0%
100%
50
0%
92%
56
0%
84%
61
0%
76%
68
0%
120
0%
67%
119
1%
68%
138
1%
74%
123
1%
85%
113
1%
85%
78
0%
6%
92
0%
15%
88
0%
16%
92
0%
16%
89
0%
16%
0%
n/a
0%
n/a
0%
n/a
0%
n/a
0%
n/a
27,578
100%
93%
26,043
100%
92%
26,652
100%
92%
26,352
100%
93%
23,284
100%
90%
72,432
39%
98%
67,320
38%
98%
65,512
37%
98%
72,832
39%
98%
60,195
38%
98%
Utilities
34,890
19%
97%
33,245
19%
97%
32,474
19%
97%
33,718
18%
97%
28,826
18%
97%
Financial
24,518
13%
96%
23,882
13%
96%
24,338
14%
96%
25,276
14%
96%
21,684
14%
95%
Energy
13,422
7%
95%
13,371
8%
95%
13,092
8%
94%
13,488
7%
95%
11,979
8%
95%
Consumer (non-cyclical)
10,832
6%
98%
10,497
6%
98%
10,412
6%
98%
11,114
6%
98%
9,190
6%
98%
Industrial
11,454
6%
99%
11,071
6%
99%
10,676
6%
99%
10,436
6%
99%
8,537
5%
99%
Basic materials
3,338
2%
87%
3,386
2%
87%
3,945
2%
87%
4,091
2%
87%
4,015
3%
80%
Consumer (cyclical)
4,425
2%
94%
4,024
2%
95%
4,074
2%
95%
4,300
2%
96%
3,739
2%
92%
Securitized MBS/ABS
3,215
2%
98%
3,382
2%
95%
3,766
2%
93%
3,838
2%
93%
3,439
2%
92%
Telecommunications
3,059
2%
99%
2,993
2%
100%
3,104
2%
100%
3,156
2%
99%
2,577
2%
99%
Technology
1,931
1%
98%
1,840
1%
98%
2,017
1%
98%
1,986
1%
99%
1,800
1%
99%
1,233
1%
94%
1,248
1%
94%
1,321
1%
94%
1,392
1%
94%
1,329
1%
94%
656
0%
100%
572
0%
99%
527
0%
99%
483
0%
98%
420
0%
98%
185,405
100%
97%
176,831
100%
97%
175,258
100%
97%
186,110
100%
97%
157,730
100%
97%
Total
Total
As at Q3 2015
Investment
Page 27
Unrealized (losses)
As at Q4 2015
Amortized Gross unrealized (losses)
cost
$
%
Amounts
< 80% cost
> 6 months
Amortized
cost
As at Q3 2015
Gross unrealized
(losses)
$
%
Amounts
< 80% cost
> 6 months
Amortized
cost
As at Q2 2015
Amounts
Gross unrealized (losses) < 80% cost
$
% > 6 months
Amortized
cost
As at Q1 2015
Gross unrealized
Amounts
< 80% cost
(losses)
$
% > 6 months
Amortized
cost
As at Q4 2014
Gross unrealized
(losses)
$
%
Amounts
< 80% cost
> 6 months
Debt securities
Government
Corporate
Financials
Non-financials
Securitized
CMBS
RMBS
ABS
Private placement debt
Fixed income securities 1
65,968
(966)
1%
(20)
61,036
(963)
2%
(1)
59,471
(936)
2%
(1)
63,551
(210)
0%
(1)
52,584
(169)
0%
(31)
21,643
60,303
(145)
(1,368)
1%
2%
(25)
(10)
21,038
57,566
(124)
(883)
1%
2%
(25)
(5)
21,582
55,869
(139)
(732)
1%
1%
(20)
(5)
21,928
55,352
(84)
(142)
0%
0%
(19)
(5)
18,888
47,741
(86)
(190)
0%
0%
(26)
(4)
836
75
2,141
27,578
178,544
(6)
(1)
(11)
(465)
(2,962)
1%
1%
1%
2%
2%
(55)
866
195
2,137
26,043
168,881
(5)
(6)
(7)
(279)
(2,267)
1%
3%
0%
1%
1%
(3)
(34)
1,003
242
2,381
26,745
167,293
(8)
(9)
(8)
(469)
(2,301)
1%
4%
0%
2%
1%
(2)
(28)
1,068
257
2,321
26,374
170,851
(6)
(10)
(1)
(103)
(556)
1%
4%
0%
0%
0%
(1)
(26)
911
256
2,128
23,284
145,792
(5)
(12)
(2)
(119)
(583)
1%
5%
0%
1%
1%
(1)
(3)
(65)
1
Gross unrealized losses consist of unrealized losses on AFS debt securities and private placements held at cost in the Corporate Surplus segments, as well as the difference between fair value and amortized cost on debt securities and private placements held in liability segments. Losses on AFS debt securities held in Surplus and on all
private placements are realized upon sale or by credit impairment. However, for fixed income securities supporting CALM liabilities, losses are only realized upon credit impairment because unrealized gains and losses on debt securities, which impact net investment income, are largely offset by the changes in actuarial liabilities unless
the security is credit impaired.
Par
Q4 2015
Non-par
Total
Par
Q3 2015
Non-par
Total
Par
Q2 2015
Non-par
Total
Par
Q1 2015
Non-par
Total
Par
Q4 2014
Non-par
Total
Credit related
Loans
(24)
(24)
(1)
(1)
(4)
(4)
(9)
(9)
11
Debt securities - FVTPL
(1)
(2)
(3)
2
2
4
(2)
(2)
(4)
(5)
(5)
(10)
(1)
Debt securities - AFS
2
2
3
3
Other 3
1
1
Sub-total
(1)
(24)
(25)
2
4
6
(2)
(6)
(8)
(5)
(13)
(18)
(1)
11
Equity related
Public - AFS
(10)
(10)
(17)
(17)
(2)
(2)
(3)
(3)
(7)
Private equities - AFS and Other 3
(3)
(3)
Sub-total
(13)
(13)
(17)
(17)
(2)
(2)
(3)
(3)
(7)
Total
(1)
(37)
(38)
2
(13)
(11)
(2)
(8)
(10)
(5)
(16)
(21)
(1)
4
2
Includes net new (provisions) recoveries on loans and net (impairments) gains on sale on debt securities and other invested assets, including those held at fair value. Although GAAP does not require us to measure the impairment portion of unrealized losses on
business.
3
Other credit related and equity related provisions, impairments and recoveries are included in investment income from Other Investments; please refer to the following page.
11
(1)
10
(7)
(7)
3
debt securities classified as FVTPL, we believe this is a key metric for our
As at Q3 2015
Gross
Impaired
amount Allowances
value
As at Q2 2015
Gross
amount
Allowances
As at Q1 2015
Impaired
value
Loans
Mortgages and loans to bank clients
60
(29)
31
63
(28)
35
75
(29)
Private placements
186
(72)
114
212
(97)
115
225
(89)
Sub-total
246
(101)
145
275
(125)
150
300
(118)
Other fixed income 4
Debt securities - FVTPL
15
15
27
27
59
Debt securities - AFS
5
5
8
Other
1
1
1
1
1
Sub-total
16
16
33
33
68
Total
262
(101)
161
308
(125)
183
368
(118)
4
Impairments of Other fixed income assets are charged directly to the carrying value of the asset. Accordingly, no allowances are shown against these assets.
Page 28
Gross
amount
Allowances
Impaired
value
As at Q4 2014
Gross
Impaired
amount Allowances
value
46
136
182
83
216
299
(33)
(85)
(118)
50
131
181
85
189
274
(37)
(72)
(109)
48
117
165
59
8
1
68
250
69
9
1
79
378
(118)
69
9
1
79
260
48
10
1
59
333
(109)
48
10
1
59
224
INVESTMENT INCOME
(Canadian $ in millions, unaudited)
Q4 2015
Amount
Yield
22
n/a
Q3 2015
Amount
Yield
81
n/a
Q2 2015
Amount
Yield
28
n/a
Q1 2015
Amount
Yield
39
n/a
Q4 2014
Amount
Yield
n/a
Debt securities
Interest income
1
Recoveries (impairments), net
Gains (losses) on assets backing surplus
1,376
(1)
8
3.8%
1,347
6
50
3.8%
1,344
(4)
8
3.8%
1,312
(10)
27
3.8%
1,203
(1)
15
4.0%
Total
1,383
3.6%
1,403
3.6%
1,348
3.5%
1,329
3.5%
1,217
3.7%
Public equities
Dividend income
Impairments, net
Gains (losses) on assets backing surplus
Total
160
(10)
44
194
3.0%
Loans
Mortgage loan interest income
Private placement interest income
Policy loan interest income
Loans to bank clients interest income
Recoveries (impairments), net
435
349
86
17
(23)
4.0%
5.4%
4.8%
3.9%
Total
864
4.5%
858
4.5%
Real estate
Rental and other income
Gains on assets backing surplus
115
(16)
3.9%
138
(18)
4.2%
99
3.6%
120
4.0%
131
4.1%
125
4.3%
88
3.5%
Other investments
Investment income
138
n/a
(46)
n/a
330
n/a
(20)
n/a
155
n/a
Derivatives
Investment income
199
n/a
155
n/a
259
n/a
107
n/a
129
n/a
Total
Investment income 2
2
2,899
4.1%
3.9%
109
(17)
45
137
431
321
90
17
(1)
2,708
2.7%
3.9%
4.0%
5.0%
4.9%
4.0%
3.9%
133
(2)
69
200
448
355
104
17
(4)
920
131
-
3,216
2.6%
4.0%
4.0%
5.5%
5.0%
4.1%
4.6%
4.1%
3.8%
91
(3)
61
149
2.2%
445
351
108
18
(9)
4.1%
5.5%
5.1%
4.0%
913
125
-
2,642
3.6%
4.6%
4.3%
3.6%
147
(7)
44
184
4.2%
427
332
94
19
11
4.5%
6.0%
4.8%
4.3%
883
88
-
2,664
5.2%
5.0%
3.5%
4.2%
Investment income includes dividends, interest, rental income and realized gains on assets supporting surplus, excluding the macro equity hedging program.
Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities and on macro equity hedges
Debt securities
(905)
Public equities
351
Loans
Real estate
344
(1,222)
(6,079)
2,683
3,214
(93)
451
161
76
359
(54)
210
185
156
(8)
(65)
206
(16)
230
(1,583)
3,800
(4,075)
1,558
Total
(1,916)
Other investments
15
429
77
(13)
2,728
n/a
3,672
n/a
(10,161)
n/a
5,343
n/a
6,182
n/a
6,380
3.4%
(6,945)
0.7%
7,985
11.2%
8,846
14.4%
983
2.8%
(184)
n/a
799
1.1%
(134)
6,246
n/a
8.7%
Page 29
(132)
(7,077)
n/a
-8.8%
(126)
7,859
n/a
11.0%
(145)
8,701
n/a
14.1%
Actuarial Liabilities
Information
Guarantee Value
Gross
Amount 4
Amount
Reinsured
Net of
1
Reinsurance
Amount
Reinsured
Gross Amount 4
Q4 2015
113,175
9,669
103,506
12,747
Q3 2015
111,468
9,557
101,911
12,797
Q2 2015
107,263
9,096
98,167
Q1 2015
110,321
9,449
Q4 2014
99,656
8,840
Net of
1
Reinsurance
2,168
Target Capital
(200 % of MCCSR)
10,579
7,536
5,156
12,692
2,257
10,540
8,199
5,061
13,260
8,136
1,684
6,452
4,751
4,846
9,597
100,872
7,190
1,662
5,528
6,361
4,777
11,138
90,816
7,108
1,580
5,528
4,862
4,525
9,387
Net of Reinsurance1
As at Q4 2015
U.S.
Withdrawal Benefits
Income Benefits
Death Benefits
Canada
Withdrawal Benefits
Maturity Benefits
Death Benefits
Japan
Withdrawal Benefits
Maturity Benefits
Death Benefits
Total
4
Guarantee Value
Total
Fund Value 4
Net
Amount at Risk 2,4
51,269
587
5,288
57,144
43,818
469
5,594
49,881
7,553
122
693
8,368
16,843
14,398
2,204
33,445
16,429
17,343
1,885
35,657
1,381
67
116
1,564
4,622
3,968
1,094
9,684
4,404
4,495
1,034
9,933
236
4
23
263
3,233
3,104
384
Key markets,
closing levels
TSX
TOPIX
EAFE
2,044
13,010
1,547
1,716
As at Q3 2015
1,920
13,307
1,411
1,644
As at Q2 2015
2,063
14,553
1,630
1,842
As at Q1 2015
2,068
14,902
1,543
1,849
As at Q4 2014
2,059
14,632
1,408
1,775
Net of amounts ceded to 3rd party reinsurers. Amounts reinsured include amounts covered under stop loss treaties as well as first dollar treaties. Some of the treaties include deductibles and claims limits.
Net Amount at Risk is based on sum of excess of guarantee value over fund value only on contracts where amount at risk is currently positive.
S&P 500
As at Q4 2015
Under Phase I of IFRS 4, former Canadian GAAP valuation practices continue to apply to insurance contracts. This requires that reserves for segregated fund and variable products have a Conditional Tail Expectation ("CTE") of between 60 and 80.
We hold CTE(70) level policy liabilities for both unhedged business and dynamically hedged business.
Total Guarantee Value, Total Fund Value and Net Amount at Risk includes certain HK products which are classified as investment contracts under IFRS. There is no reinsurance or hedging for these products.
The policy liabilities are held within the insurance contract liabilities, investment contract liabilities and other liabilities, as applicable under IFRS and are shown net of reinsurance.
The net amount at risk is not currently payable. Guaranteed death benefits are contingent and only payable upon the eventual death of policyholders if fund values remain below guarantee values. Withdrawal, accumulation and income benefits are also contingent
and only payable at scheduled maturity in the future, if the policyholders are still living and have not terminated their policies and fund values remain below guarantee values.
Guaranteed benefits in a single contract are frequently a combination of death benefit and living benefit (withdrawal / maturity / income).
Death benefit amounts shown reflect only stand alone death benefits plus any excess of death benefits over living benefits on contracts with both death and other benefit forms.
Page 30
2015
2015
2015
2015
2014
2015 Q4
2015
2014
Q4
Q3
Q2
Q1
Q42
vs.
2014 Q4
YTD
YTD2
2015 YTD
vs.
2014 YTD
50
17
50
35
43
18
45
6
43
41
16%
-59%
188
76
176
115
7%
-34%
111
87
31
296
93
82
27
287
72
46
24
24
227
59
40
19
46
215
77
40
22
223
44%
118%
41%
33%
335
255
101
70
1,025
227
103
76
63
760
48%
148%
33%
11%
35%
NBV is not calculated for Wealth & Asset Management business and Manulife Bank.
Figures have been restated, see Changes to Assumptions and Methodology for 2014 in our Embedded Value Report.
Page 31
REGULATORY CAPITAL
(Canadian $ in millions, unaudited)
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
25,108
13,857
511
1,000
2,259
42,735
25,108
16,617
504
1,000
2,635
45,864
25,108
13,970
469
1,000
2,628
43,175
25,108
13,920
437
1,000
2,627
43,092
22,895
10,740
409
1,000
2,625
37,669
(5,685)
(7,312)
(1,138)
28,600
(5,692)
(10,426)
(1,305)
28,441
(5,169)
(8,094)
(1,476)
28,436
(4,479)
(6,652)
(1,369)
30,592
(3,181)
(5,654)
(1,290)
27,544
Tier 2 Capital
Tier 2A
Tier 2B allowed
Tier 2C
Adjustments
Total Tier 2 capital allowed
263
6,714
7,318
(1,138)
13,157
207
5,702
6,994
(1,305)
11,598
406
5,664
6,624
(1,476)
11,218
496
5,326
6,504
(1,369)
10,957
367
4,102
5,926
(1,290)
9,105
41,757
41,757
40,039
40,039
39,654
39,654
41,549
41,549
36,649
36,649
Capital Required:
Asset default & market risk
Insurance risks
Interest rate risks
Total Capital Required - C
11,687
3,801
3,213
18,701
11,140
3,511
3,044
17,695
10,697
3,250
2,878
16,825
10,702
3,279
2,987
16,968
9,379
2,771
2,638
14,788
223%
Page 32
226%
236%
245%
248%
Supplementary Disclosure
Wealth and Asset Management
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
1,248
1
1,249
1,191
1
1,192
1,155
1
1,156
1,084
8
1,092
971
4
975
760
301
1,061
188
(40)
148
706
299
1,005
187
(28)
159
706
298
1,004
152
(27)
125
612
289
901
191
(42)
149
37
34
81
5
157
157
(10)
1
148
38
40
92
(1)
169
172
(10)
159
43
36
75
8
162
171
(37)
125
47
69
172
17
305
305
54
85
172
4
315
320
24.4%
305
84
22
106
199
(42)
157
YTD
2015
YTD
2014
29%
-75%
28%
4,678
11
4,689
3,631
13
3,644
29%
-15%
29%
555
251
806
169
(41)
128
37%
20%
32%
11%
-2%
16%
2,784
1,187
3,971
718
(137)
581
2,008
985
2,993
651
(151)
500
39%
21%
33%
10%
-9%
16%
43
30
70
8
151
161
(2)
149
31
26
65
7
129
148
(1)
128
19%
31%
25%
-29%
22%
6%
900%
16%
161
140
318
20
639
661
(59)
1
581
126
100
263
13
502
589
(1)
(1)
500
28%
40%
21%
54%
27%
12%
nm
16%
58
83
162
14
317
337
58
70
155
17
300
318
42
50
148
15
255
292
12%
38%
16%
13%
20%
4%
26.4%
27.4%
27.5%
26.2%
315
84
27
111
204
(35)
169
317
82
27
109
208
(46)
162
300
77
30
107
193
(42)
151
255
63
22
85
170
(41)
129
YTD 2015
vs.
YTD 2014
217
307
661
52
1,237
1,280
171
198
576
35
980
1,146
26.4%
26.9%
-50 bps
20%
33%
0%
25%
17%
2%
22%
1,237
327
106
433
804
(165)
639
980
237
90
327
653
(151)
502
26%
38%
18%
32%
23%
9%
27%
29%
12%
19%
20%
317
243
1,898
2,458
-180 bps
27%
55%
15%
49%
26%
12%
317
243
1,898
2,458
298
268
1,833
2,399
273
264
1,713
2,250
Wealth and asset management is comprised of our fee based business with little or no insurance risk, including mutual funds, pensions products and institutional asset management.
2015 Q4
vs.
2014 Q4
Page 33
273
258
1,740
2,271
245
217
1,592
2,054
245
217
1,592
2,054
29%
12%
19%
20%
2015
Q4
2015
Q3
2015
Q2
2015
Q1
2014
Q4
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
YTD 2015
vs.
YTD 2014
34,788
100,846
227,668
416,820
(213,399)
566,723
(77,624)
(54,560)
434,539
76,148
510,687
30,934
97,351
212,561
393,304
(201,301)
532,849
(74,919)
(51,555)
406,375
70,447
476,822
36,493
97,957
206,532
390,062
(202,062)
528,982
(74,992)
(48,328)
405,662
68,924
474,586
32,616
98,115
207,766
381,789
(202,650)
517,636
(75,709)
(47,882)
394,045
394,045
27,703
60,856
184,406
320,448
(168,652)
424,761
(67,425)
(42,798)
314,538
314,538
26%
66%
23%
30%
27%
33%
15%
27%
38%
62%
34,788
100,846
227,668
416,820
(213,399)
566,723
(77,624)
(54,560)
434,539
76,148
510,687
27,703
60,856
184,406
320,448
(168,652)
424,761
(67,425)
(42,798)
314,538
314,538
26%
66%
23%
30%
27%
33%
15%
27%
38%
62%
268,202
171,248
71,237
510,687
252,704
158,589
65,529
476,822
252,532
157,374
64,680
474,586
185,508
152,989
55,548
394,045
143,287
129,678
41,573
314,538
87%
32%
71%
62%
268,202
171,248
71,237
510,687
143,287
129,678
41,573
314,538
87%
32%
71%
62%
510,687
485,073
500,722
415,575
355,244
44%
510,687
355,244
44%
51,190
123,938
332,220
3,339
510,687
42,229
121,423
310,247
2,923
476,822
46,098
124,126
301,547
2,815
474,586
41,950
115,555
233,891
2,649
394,045
36,221
68,583
207,373
2,361
314,538
41%
81%
60%
41%
62%
51,190
123,938
332,220
3,339
510,687
36,221
68,583
207,373
2,361
314,538
41%
81%
60%
41%
62%
476,822
31,089
(22,341)
25,117
510,687
474,586
25,862
(21,348)
(2,278)
476,822
394,045
68,574
34,892
(20,398)
(2,527)
474,586
314,538
40,589
22,843
(16,212)
32,287
394,045
297,907
17,885
(15,079)
13,825
314,538
60%
74%
48%
82%
62%
314,538
109,163
114,686
(80,299)
52,599
510,687
258,583
69,164
(50,829)
37,620
314,538
22%
66%
58%
40%
62%
1
2
3
Wealth and asset management is comprised of our fee based business with little or no insurance risk, including mutual funds, pensions products and institutional asset management.
Includes Wealth and Asset Management, Insurance and Other Wealth assets which are managed by Manulife Asset Management for affiliates.
Includes only the third party institutional business of Manulife Asset Management and not business from affiliates and the General Fund
Page 34
2015
Q4
2015
Q3
2015
Q1
2014
Q4
1,134
765
3,762
3,087
8,748
8,748
(2,987)
1,566
4,509
1,426
4,514
4,594
3,025
1,331
1,803
8,335
14,494
14,821
1,057
1,821
2,175
1,578
6,631
6,857
364
1,045
277
1,120
2,806
2,870
212%
-27%
nm
176%
212%
205%
2,229
5,483
12,249
14,426
34,387
35,020
874
3,892
8,735
4,834
18,335
20,326
155%
41%
40%
198%
88%
72%
844
4,817
3,087
8,748
1,546
1,542
1,426
4,514
(427)
6,586
8,335
14,494
856
4,197
1,578
6,631
(265)
1,951
1,120
2,806
147%
176%
212%
2,819
17,142
14,426
34,387
755
12,746
4,834
18,335
273%
34%
198%
88%
5,119
501
2,920
208
8,748
(1,775)
1,616
4,508
165
4,514
3,548
8,861
1,912
173
14,494
1,057
2,293
3,148
133
6,631
1,104
1,019
373
310
2,806
364%
-51%
683%
-33%
212%
7,949
13,271
12,488
679
34,387
3,357
4,241
8,742
1,995
18,335
137%
213%
43%
-66%
88%
3,353
3,932
17,830
5,974
31,089
31,089
2,448
4,213
17,036
2,165
25,862
26,282
6,340
3,923
13,642
10,987
34,892
36,581
3,354
4,406
12,059
3,024
22,843
24,099
2,805
2,704
10,100
2,276
17,885
20,374
20%
45%
77%
162%
74%
53%
15,495
16,474
60,567
22,150
114,686
118,051
9,014
10,477
41,488
8,185
69,164
80,596
72%
57%
46%
171%
66%
46%
10,684
14,431
5,974
31,089
10,051
13,646
2,165
25,862
7,935
15,970
10,987
34,892
7,060
12,759
3,024
22,843
5,427
10,182
2,276
17,885
97%
42%
162%
74%
35,730
56,806
22,150
114,686
20,994
39,985
8,185
69,164
70%
42%
171%
66%
7,939
4,812
18,126
212
31,089
3,654
4,570
17,467
171
25,862
7,007
13,012
14,696
177
34,892
3,644
5,399
13,662
138
22,843
3,605
2,905
11,063
312
17,885
120%
66%
64%
-32%
74%
22,244
27,793
63,951
698
114,686
11,764
11,549
43,832
2,019
69,164
89%
141%
46%
-65%
66%
1
2
2015
Q2
2015 Q4
vs.
2014 Q4
YTD
2015
YTD
2014
YTD 2015
vs.
YTD 2014
Wealth and asset management is comprised of our fee based business with little or no insurance risk, including mutual funds, pensions products and institutional asset management.
Includes only the third party institutional business of Manulife Asset Management and not business from affiliates and the General Fund.
Page 35
Investment Contracts: Products that do not contain insurance risk (as defined under IFRS) and
are accounted for as financial liabilities at amortized cost or fair value.
Leveraged Leases: In these leases the financing provided by the long-term creditor is
nonrecourse as to the general credit of the lessor. The amount of the financing is sufficient to
provide the lessor with substantial "leverage" in the transaction. Income is recognized on a
constant yield basis.
Page 36
GENERAL INFORMATION
INVESTOR INFORMATION
Robert Veloso, VP, Investor Relations
(416) 852-8982
E-mail: robert_veloso@manulife.com
TRANSFER AGENT
Canada
CIBC Mellon Trust Company
1-800-783-9495
www.cibcmellon.com/investor
United States
Mellon Investor Services
1-800-249-7702
www.melloninvestor.com
COMMON STOCK
Common Stock of Manulife Financial is traded on:
Symbol
Stock Exchange
Toronto
MFC
MFC
New York
Hong Kong
945
Philippines
MFC
Page 37
GENERAL INFORMATION