Manulife Financial Corporation Investor Day 2012 - Growth with Discipline

Manulife Financial Corporation Investor Day 2012 - Growth with Discipline 
TORONTO, Nov. 15, 2012 /CNW/ - Manulife Financial Corporation ("Manulife" or 
the "Company") is hosting an institutional Investor Day in Toronto today, 
scheduled to start at 10 a.m. ET, where Manulife's senior management will 
present the Company's strategic direction and financial targets. 
Over the past three years Manulife has accomplished its strategic priorities 
set out in 2009. The Company has also invested heavily in initiatives that 
are designed to produce substantial earnings growth and reduce volatility of 
earnings and capital going forward. As a result, the Company is establishing 
financial targets of $4 billion in core earnings(1) and 13 per cent core 
return on equity (core ROE)(1) in 2016, and a leverage ratio(1) of 25% over 
the long-term. These targets are just over a year delayed from the financial 
targets set in 2010 - as a result of macro-economic volatility, incremental 
costs of hedging earlier than anticipated, various capital initiatives, and 
basis changes. 
To support the Company's strategic execution, Manulife announced today the 
creation of a new senior executive role with the title of Chief Operating 
Officer with responsibility for Corporate Strategy, Corporate Development, 
Capital Solutions, Human Resources, Branding & Communications, Information 
Services, Procurement, and Global Resourcing. Paul Rooney, the Company's 
current President and Chief Executive Officer of Manulife Canada Ltd. will 
assume this role effective January 1, 2013, and report to Manulife's President 
and Chief Executive Officer, Donald Guloien. A successor to Mr. Rooney has 
been identified and will be announced shortly. 
Manulife's President and Chief Executive Officer, Donald Guloien, will lead 
off Investor Day with a reflection of Manulife's significant re-positioning 
over the last few years and will discuss the Company's strategies for 
disciplined growth. Cindy Forbes, Chief Actuary, will provide an actuarial and 
regulatory update. Steve Roder, Chief Financial Officer, will close the 
morning's formal presentations with the Company's path to its updated 2016 
targets of $4 billion in core earnings and 13 per cent core ROE. He will 
elaborate on the key drivers to achieving these targets including the 
substantial investments Manulife has made globally over the last few years to 
accelerate its growth. Investors will have the opportunity to hear directly 
from each of the Company's divisional heads in the afternoon on the growth 
strategies for their divisions. 
For Asia Division, the estimated 2012 annualized core ROE for the three 
quarters ended September 30, 2012 was 20 per cent(2). Management has set a 
2016 target for the Asia Division to achieve core earnings of $1.65 billion 
and generate core ROE of 26 per cent, to be fueled in part by growing and 
expanding its distribution channels and developing its agency network; 
building wealth management capabilities; investing in new growth 
opportunities; and continuing to promote the Manulife brand in the region. 
For Canadian Division, the estimated 2012 annualized core ROE for the three 
quarters ended September 30, 2012 was 12 per cent(2). Management has set a 
2016 target for Canadian Division to achieve core earnings of $1.45 billion 
and generate core ROE of 14 per cent. This is expected to be driven in part by 
maintaining its market position in the Group Benefits and Individual Life 
businesses with focus on more profitable, less risky business; strong growth 
in Manulife Bank, Group Retirement Solutions and Affinity Markets; and 
developing Manulife Mutual Funds into a leading mutual fund complex. 
For the U.S. Division, the estimated 2012 annualized core ROE for the three 
quarters ended September 30, 2012 was 10 per cent(2). Management has set a 
2016 target for U.S. Division to achieve core earnings of $1.5 billion and 
generate core ROE of 12 per cent. This is primarily driven by focusing on the 
growth of fee based wealth management businesses and de-risked life insurance 
and Long-Term Care (LTC) businesses as well as continuing to expand its 
Retirement Plan Services business into the mid-market. 
For the Investment Division, Management will provide an overview of the 
general fund differentiated investment strategy with an update on the Fixed 
Income and Alternative Assets portfolios. Finally, Management will provide 
commentary on the evolution and growth strategies of Manulife Asset Management. 
Key Planning Assumptions and Uncertainties 
Manulife's management targets do not constitute guidance and are based on 
certain key planning assumptions, including: current accounting and regulatory 
capital standards; no acquisitions; equity market and interest rate 
assumptions consistent with our long term assumptions, and favourable 
investment experience included in core earnings(3). 
Interested parties may access the live audio webcast through An archived version of the webcast will be 
available at the same location from 9 a.m. ET on November 16, 2012 to November 
15, 2013. 
(1)  This item is a non-GAAP measure. See "Performance and Non-GAAP 

     Measures" below.

(2 ) Please refer to page 37 of the third quarter 2012 press release
     for a reconciliation of core earnings to net income (loss)
     attributable to shareholders. Core ROE is calculated by dividing
     core earnings by the weighted average common shareholders' equity
     (excluding Accumulated Other Comprehensive Income)

(3)  Interest rate assumptions based on forward curve as of June 30,
     2012.  Core earnings includes up to $200 million per annum of
     investment gains.

Performance and Non-GAAP Measures

We use a number of non-GAAP financial measures to measure overall performance 
and to assess each of our businesses. Non-GAAP measures include: core 
earnings; and core ROE. Non-GAAP financial measures are not defined terms 
under GAAP and, therefore, are unlikely to be comparable to similar terms used 
by other issuers. Therefore, they should not be considered in isolation or as 
a substitute for any other financial information prepared in accordance with 
GAAP. Core earnings (losses) is a non-GAAP measure to help investors better 
understand the long-term earnings capacity and valuation of the business. Core 
earnings 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. While this metric is relevant to how we manage our business and 
offers a consistent methodology, it is not insulated from macro-economic 
factors which can have a significant impact. The Company calculates core ROE 
using the weighted average common shareholders' equity excluding Accumulated 
Other Comprehensive Income (Loss) on available for sale securities and cash 
flow hedges. At a divisional level, core ROE is calculated using (i) core 
earnings generated by the division and (ii) internally allocated equity. For 
further information regarding these subjects, see our press release announcing 
our 2012 third quarter results.

Caution Regarding Forward-Looking Statements

This press release 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 1995. The forward-looking 
statements in this press release include, but are not limited to, statements 
with respect to our 2016 management targets for core earnings and core ROE. 
The forward-looking statements in this press release also relate to, among 
other things, our targets, goals, strategies, intentions, plans, beliefs, 
expectations and estimates, and can generally be identified by the use of 
words such as "may", "will", "could", "should", "likely", "expect", 
"estimate", "believe", "plan", "targets", (or the negative thereof) and words 
and expressions of similar import, and include statements concerning possible 
or assumed future results. 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 and they should not be interpreted as confirming market or 
analysts' expectations in any way. Certain material factors or assumptions are 
applied in making forward-looking statements, including in the case of our 
2016 management targets for core earnings and core ROE, the assumptions 
described under "Key Planning Assumptions and Uncertainties" in this press 
release 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 expectations include but are not limited to: the 
factors identified in "Key Planning Assumptions and Uncertainties" in this 
press release; general business and economic conditions (including but not 
limited to performance and volatility of equity markets, interest rate 
fluctuations and movements in credit spreads, currency rates, investment 
losses and defaults, market liquidity and creditworthiness of guarantors, 
reinsurers and counterparties); changes in laws and regulations; changes in 
accounting standards; our ability to execute strategic plans and changes to 
strategic plans; downgrades in our financial strength or credit ratings; our 
ability to maintain our reputation; impairments of goodwill or intangible 
assets or the establishment of valuation allowances against future tax assets; 
the accuracy of estimates relating to long-term care morbidity; the accuracy 
of other estimates used in applying accounting policies and actuarial methods; 
level of competition and consolidation; the ability to market and distribute 
products through current and future distribution channels; unforeseen 
liabilities or asset impairments arising from acquisitions and dispositions of 
businesses; our ability to implement effective hedging strategies and 
unforeseen consequences arising from such strategies; our ability to source 
appropriate non-fixed income assets to back our long dated liabilities; the 
realization of losses arising from the sale of investments classified as 
available for sale; our liquidity, including the availability of financing to 
satisfy existing financial liabilities on their expected maturity dates when 
required; obligations to pledge additional collateral; the availability of 
letters of credit to provide capital management flexibility; accuracy of 
information received from counterparties and the ability of counterparties to 
meet their obligations; the availability, affordability and adequacy of 
reinsurance; legal and regulatory proceedings, including tax audits, tax 
litigation or similar proceedings; our ability to adapt products and services 
to the changing market; our ability to attract and retain key executives, 
employees and agents; the appropriate use and interpretation of complex models 
or deficiencies in models used; political, legal, operational and other risks 
associated with our non-North American operations; acquisitions and our 
ability to complete acquisitions including the availability of equity and debt 
financing for this purpose; the disruption of or changes to key elements of 
the Company's or public infrastructure systems; environmental concerns; and 
our abilityto protect our intellectual property and exposure to claims of 
infringement. Additional information about material factors that could cause 
actual results to differ materially from expectations and about material 
factors or assumptions applied in making forward-looking statements may be 
found under "Risk Factors" in our most recent Annual Information Form, under 
"Risk Management" and "Critical Accounting and Actuarial Policies" in the 
Management's Discussion and Analysis in our most recent annual and interim 
reports, in the "Risk Management" note to the consolidated financial 
statements in our most recent annual and interim reports and elsewhere in our 
filings with Canadian and U.S. securities regulators. We do not undertake to 
update any forward-looking statements except as required by law.

About Manulife Financial 
Manulife Financial is a leading Canada-based financial services group with 
principal operations in Asia, Canada and the United States. In 2012, we 
celebrate 125 years of providing clients strong, reliable, trustworthy and 
forward-thinking solutions for their most significant financial decisions. Our 
international network of employees, agents and distribution partners offers 
financial protection and wealth management products and services to millions 
of clients. We also provide asset management services to institutional 
customers. Funds under management by Manulife Financial and its subsidiaries 
were C$515 billion (US$523 billion) as at September 30, 2012. The Company 
operates as Manulife Financial in Canada and Asia and primarily as John 
Hancock in the United States.

Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and 
under '945' on the SEHK. Manulife Financial can be found on the Internet at

Media inquiries: Laurie Lupton Manulife Financial 416-852-7792

Investor Relations: Anthony G. Ostler Manulife Financial 416-926-5471

Anique Asher Manulife Financial 416-852-9580  

SOURCE: Manulife Financial Corporation

To view this news release in HTML formatting, please use the following URL:

CO: Manulife Financial Corporation
ST: Ontario

-0- Nov/15/2012 13:00 GMT

Press spacebar to pause and continue. Press esc to stop.