Manulife Financial Corporation Investor Day 2012 - Growth with Discipline

  Manulife Financial Corporation Investor Day 2012 - Growth with Discipline

PR Newswire

TORONTO, Nov. 15, 2012

TSX/NYSE/PSE: MFC   
SEHK:945 

TORONTO, Nov. 15, 2012 /PRNewswire/ - 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 
manulife.com/presentations.  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 ability to 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 
manulife.com.

 

 

 

SOURCE Manulife Financial Corporation

Contact:

Media inquiries:
Laurie Lupton
Manulife Financial
416-852-7792
laurie_lupton@manulife.com

Investor Relations: 
Anthony G. Ostler
Manulife Financial
416-926-5471
anthony_ostler@manulife.com

Anique Asher
Manulife Financial
416-852-9580
anique_asher@manulife.com