Manulife Financial Corporation The Manufacturers Life Insurance Company. Annual Meeting May 4, 2006

Transcription

1 Manulife Financial Corporation The Manufacturers Life Insurance Company Annual Meeting May 4, 2006

2 Legal Disclaimer Caution Regarding Forward-Looking Statements This document contains forward-looking statements within the meaning of the safe harbour provisions of Canadian provincial securities laws and the U.S. Private Securities Litigation Reform Act of These forward-looking statements relate to, among other things, our objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and can generally be identified by the use of words such as "may", "will", could, should, would, suspect, outlook, "expect", "intend", "estimate", "anticipate", "believe", plan, forecast, objective and "continue" (or the negative thereof) and words and expressions of similar import. Although we believe that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumption are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from these expectations include, among other things: general economic conditions worldwide; market factors, including global capital market activity; interest rate and currency value fluctuations; business competition; changes in government regulations or in tax laws; technological changes; changes in consumer demand for the our products and services; our ability to increase revenue from the expansion and development of distribution channel capacity; our ability to complete strategic acquisitions and to integrate acquisitions successfully; catastrophic events; political conditions and developments; international conflicts; and our success in anticipating and managing the foregoing factors. Additional information about these factors and about the material factors or assumptions underlying such forward-looking statements may be found in the body of this document as well as under Risk Management in the Management s Discussion and Analysis in our most recent Annual Report. We do not undertake to update any forward-looking statements. 2

3 Arthur Sawchuk Chairman, Board of Directors

4 Election of Directors Manulife Financial Corporation

5 Election of Directors Manufacturers Life

6 Election of Directors Manufacturers Life Policyholders Directors

7 Election of Directors Manufacturers Life Shareholder s Directors

8 Appointment of Auditors

9 2005: Another Exceptional Year Dominic D Alessandro President and Chief Executive Officer

10 2005: An Exceptional Year Record sales and earnings Leading market positions across global operations John Hancock integration complete

11 Record Premiums and Deposits Premiums and deposits of $61.3 billion + Record new sales + Strong gains in market share $50 $61 $12 $14 $16 $20 CAGR + 20% $25 $26 $30 $ C$ in millions

12 Record Funds Under Management Funds under management of $372 billion $347 $372 CAGR + 20% $72 $82 $97 $112 $120 $138 $143 $ General Fund Seg Fund Mutual Funds and Other C$ in millions

13 Record Shareholders Earnings Shareholders earnings of $3,294 million + Favourable investment performance + Strong in-force growth + Expense synergies CAGR + 23% $2,550 $3,294 $503 $743 $710 $874 $1,075 $1,159 $1,378 $1, C$ in millions

14 Manulife s Track Record ROE Expansion Return on Common Shareholders Equity 20.0% 16.0% 12.0% 19.0% 17.7% 16.1% 16.2% 15.1% 15.5% 14.0% 14.1%14.3% 13.6% 14.0% 12.9% 13.0% 12.4% 12.7% 12.0% Target ROE 8.0% 4.0% 0.0% '96 '97 '98 '99 '00 '01 '02 '03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05

15 Delivering Shareholder Value MFC Stock Price is 4.1X the 1999 IPO Level 450% MFC at $ % MFC at $18.00 S&P/TSX Financials up 182% 150% S&P/TSX Composite Index up 84% 0% Sep- 99 Mar- 00 Sep- 00 Mar- 01 Sep- 01 Mar- 02 Sep- 02 Mar- 03 Sep- 03 Mar- 04 Sep- 04 Mar- 05 Sep- 05 Mar- 06 MFC TSX Composite TSX Financials Data as at April 21, 2006.

16 Exceptional Earnings Diversity Canada Strong in-force business growth $809 million $809 Favourable claims experience Higher equity markets Emergence of expense synergies $614 $208 $209 $286 $270 $197 $ Ind. Insurance Wealth Mgt Group Business

17 Exceptional Earnings Diversity U.S. Protection Favourable investment experience $614 million $614 Improved margins in Long-Term Care Merger related synergies Record sales in Individual Insurance $467 $33 $434 $126 $ Individual Insurance Long-Term Care

18 Exceptional Earnings Diversity U.S. Wealth Management Exceptional net sales and strong in-force growth $585 million $585 $54 Favourable investment performance Higher assets under management drove increased fee income $397 $47 $114 $236 $132 $ Annuities Retirement Services Mutual Funds

19 Exceptional Earnings Diversity U.S. Guaranteed & Structured Financial Products $283 million Restriction on institutional sales Focus on retail segment $212 $

20 Exceptional Earnings Diversity Asia and Japan Higher business volumes in Hong Kong China operations growing well Japan variable annuities sales surpassed US$3 billion $732 million $489 $732 $351 $165 $83 $51 $273 $ Hong Kong Other Asia Japan

21 Exceptional Earnings Diversity Reinsurance ($108) million Hurricane claims resulted in earnings loss New business at higher average rates and attachment points Strong sales growth in life retrocession $230 ($108)

22 Investments Returns well in excess of benchmarks Favourable asset mix and credit development Third party assets under management grew by over $10 billion Cash & ST 6% Policy Loans 4% Real Estate 3% Stocks 5% Mortgages 17% Other 4% Bonds: AAA/AA/A 42% Bonds: BB & below 3% Bonds: BBB 16% As at December 31, 2005.

23 First Quarter Results Exceptional Start to 2006 Y/Y (C$ millions, except per share data) Q105 Q106 Growth Premiums and Deposits $ 14,919 $ 17,942 20% Shareholders Earnings $ 801 $ % Earnings per Share $ 0.99 $ % Return on Equity 14.1% 16.3% 223 bps

24 Looking Forward Continued focus on core competencies Product innovation Distribution Productivity Risk management Investment management

25 Leading Market Positions Canada #2 in Individual Life #1 in Group Health #2 in Group Life #2 in Group Pensions #1 in Individual Segregated Funds #1 in Individual Fixed Annuities Based on full-year 2005 sales. Independent surveys include LIMRA and Investor Economics.

26 Leading Market Positions United States #3 Overall Individual Insurance #1 in Universal Life #1 in Survivorship #5 in Variable Life #1 in Group Long-Term Care #3 in Retail Long-Term Care #2 in Variable Annuities #1 in Small Case 401(k) Rankings based on full-year 2005 sales. Independent surveys include LIMRA, Tillinghast and VARDS. Variable annuities sales ranking based on sales through the non-proprietary channel.

27 Leading Market Positions Asia and Japan #2 in HK Provident Fund #5 in HK Individual #4 in Japan Variable Annuities #24 in Japan Individual #4 in Shanghai #3 in Indonesia #3 in Vietnam #6 in the Philippines #6 in Singapore #13 in Malaysia #16 in Thailand #25 in Taiwan Based on most recent sales data available.

28 Manulife Financial Corporation The Manufacturers Life Insurance Company Annual Meeting May 4, 2006