Manulife's Q4 2024: Unraveling Contradictions on Election Impact, Hong Kong Sales, and U.S. Insurance Assumptions

These are the key contradictions discussed in Manulife Financial Corporation's latest 2024Q4 earnings call, specifically including: U.S. election impact and Hong Kong sales sustainability, Asia's growth sustainability and regulatory impact, and U.S. life insurance lapse assumptions:



Record Financial Performance:
- Manulife Financial reported record APE sales and $13.3 billion in net inflows for Global WAM in 2024.
- The company's core earnings exceeded $7 billion for the first time, reflecting a 10 percentage point increase since 2023.
- Growth was driven by strong business momentum in Asia and Global WAM, and strategic transactions that unlocked significant value.

Digital Transformation and Customer Experience:
- Manulife enhanced its digital capabilities, contributing to a record-high relationship NPS of 27.
- Over 27 AI use cases were launched into production, generating over $600 million in benefits.
- The focus on digital initiatives and customer-centric strategies significantly improved customer experience and efficiency.

Investment and Capital Allocation:
- The company invested approximately $1 billion in digital capabilities, maintaining an efficiency ratio of 44.8%.
- Manulife returned over $6 billion to shareholders through dividends and share buybacks in 2024.
- The strong capital generation and disciplined capital allocation led to a 10% increase in common share dividends and a new buyback program.

Asia and Global WAM Growth:
- The Asia segment delivered 63% growth in APE sales and 16% core earnings growth in Q4.
- Global WAM generated $1.2 billion in net inflows, with an increase of 34% in core earnings.
- Growth was fueled by business momentum, disciplined expense management, and strong performance in core earnings.