Manulife Financial Corporation The Manufacturers Life Insurance Company Annual Meeting May 4, 2006
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Arthur Sawchuk Chairman, Board of Directors
Election of Directors Manulife Financial Corporation
Election of Directors Manufacturers Life
Election of Directors Manufacturers Life Policyholders Directors
Election of Directors Manufacturers Life Shareholder s Directors
Appointment of Auditors
2005: Another Exceptional Year Dominic D Alessandro President and Chief Executive Officer
2005: An Exceptional Year Record sales and earnings Leading market positions across global operations John Hancock integration complete
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 $31 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 C$ in millions
Record Funds Under Management Funds under management of $372 billion $347 $372 CAGR + 20% $72 $82 $97 $112 $120 $138 $143 $154 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 General Fund Seg Fund Mutual Funds and Other C$ in millions
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 $1,539 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 C$ in millions
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
Delivering Shareholder Value MFC Stock Price is 4.1X the 1999 IPO Level 450% MFC at $73.66 300% 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.
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 $253 2004 2005 Ind. Insurance Wealth Mgt Group Business
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 $488 2004 2005 Individual Insurance Long-Term Care
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 $399 2004 2005 Annuities Retirement Services Mutual Funds
Exceptional Earnings Diversity U.S. Guaranteed & Structured Financial Products $283 million Restriction on institutional sales Focus on retail segment $212 $283 2004 2005
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 $298 2004 2005 Hong Kong Other Asia Japan
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) 2004 2005
Investments Returns well in excess of benchmarks Favourable asset mix and credit development Third party assets under management grew by over $10 billion Cash & ST 6% Policy Loans 4% Real Estate 3% Stocks 5% Mortgages 17% Other 4% Bonds: AAA/AA/A 42% Bonds: BB & below 3% Bonds: BBB 16% As at December 31, 2005.
First Quarter Results Exceptional Start to 2006 Y/Y (C$ millions, except per share data) Q105 Q106 Growth Premiums and Deposits $ 14,919 $ 17,942 20% Shareholders Earnings $ 801 $ 956 19% Earnings per Share $ 0.99 $ 1.20 21% Return on Equity 14.1% 16.3% 223 bps
Looking Forward Continued focus on core competencies Product innovation Distribution Productivity Risk management Investment management
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.
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.
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.
Manulife Financial Corporation The Manufacturers Life Insurance Company Annual Meeting May 4, 2006