Manulife Financial (MFC) investor relations material

ROE targets and performance

• Full-year 18% ROE target set for 2027, up from 16.5% in 2025, with recent quarters showing progress toward the goal.

• Mortality losses in the U.S. impacted ROE, but excluding these, ROE would have been 17%.

• Mortality experience in 2025 is expected to normalize, with proactive health initiatives underway.

• Asia business delivered 21% ROE, with strong earnings and new business value growth.

• Diversified Asian operations help offset regional fluctuations, with Hong Kong and Japan highlighted for strong performance.

Asia business and regulatory changes

• Sales in Asia declined due to regulatory changes affecting the independent broker channel, but margins improved by 13 percentage points.

• Hong Kong's Mandatory Provident Fund regulatory changes will reduce earnings by CAD 25 million per quarter, but the business remains strategically important.

• Market consolidation in MPF is limited by government-administered administration, though some small players may exit.

Acquisitions and investment strategy

• Acquisition of Comvest, a $14 billion private credit manager, filled a strategic gap in private credit offerings.

• Comvest focuses on mid-market, complex deals, with no exposure to retail BDCs and favorable lending conditions.

• Private credit market headlines do not reflect the core business, and the acquisition is seen as a long-term growth opportunity.