MFC - Earnings call transcript Q3 2020 | Manulife Financial Corporation

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Operator

Please stand by, your meeting is about to begin. Please be advised that this conference call is being recorded. Good morning, and welcome to the Manulife Financial Third Quarter 2020 Financial Results Conference Call.

Your host for today will be Ms. Adrienne O'Neill. Ms. ahead, go Please O'Neill.

Adrienne O'Neill

good our to third and call earnings to discuss quarter morning. you, Manulife's Welcome conference Thank XXXX results.

this conducting are call We virtually.

package Investor Relations financial MD&A, of our today's Our and manulife.com. section are and at information call the release, for webcast on earnings available website slides statements statistical related

presentation an and of our Roy our President our priorities will strategic quarter and We by with begin third Executive Officer. Chief today's on overview an update Gori,

our end results. Following Officer, presentation today’s Chief Roy's Witherington, Company's operating Financial will Phil and we’ll the discuss remarks, who with financial

earlier Following we the prepared of this live call. remarks, week to to move each ensure which question-and-answer quality, limit were adhere sound ask questions. of a the recorded We two optimal the portion to will participant to

re-queue will questions, our If do to all additional respond you have and we to questions. please best

and in assumptions over Slide this refer from I'd note for a Executive start, in statements, measures use to materially results differ With on may we the material certain XX stated. our is on X Roy? what Before Slide statements a or factors forward-looking to forward-looking presentation. are Gori, President that for Roy Note financial turn and Officer. non-GAAP please the like making caution to and call actual applied Chief that, of

Roy Gori

Good Adrienne. us morning, Thanks, everyone, and joining thank for today. you

operating top since a well challenging of to of a with pan-Asian with strong transformation our been that global quarter diversity environment of the In performance the of results core financial as few has to over crucial most net start year-to-date announced our testament to billion. opening made years. how pleased delivered a I the Despite we've player. is the third the This income in of rank I'm in the the a year, to digital is we've for very over Asia, want last business X. onset delivering the our and business model diversity investments pandemic. comparable as of importance Turning Slide that three we remarks we financial in our at $X.X resilience $X and as yesterday. factor the the few billion about earnings

We have agents. XXX,XXX with in XX markets operations insurance over

bank have eight of more is last us XX We NBV year-to-date. count than customers. provide Asia over up partnerships, Other, X% exclusive in access XX% and markets, is which XX emerging which XXX And to includes assurance In are with growing million agent months. the

operations an products. differentiator sales insurance scale leader of and at Asia our in we're be depth to has that Vitality has are And strong delivering for In PLUS John key in performance now We the offering in U.S. I the markets we have in innovative Hancock continued referenced. a us. a breadth where franchise and played most important role the behavioral

their offering In in core than business. stable led business by support new contributions million addition, year-to-date, from Benefits one a number Group and and U.S. is the U.S. X in-force families. Canada, earnings, we're solid In top-tier more contributor Canadians to our plans to

nearly to market the this of of in one business In been investment of ranked Provident AUM. sponsor XXXX. share contributor leading terms And solutions Canadian largest nearly we've well MPF as significant in Fund is since retirement Our the administration And finally, sales Hong a to Kong, global a in provider business, as Manulife globally. core is plans NBV we're the and million a XX% scheme WAM to fourth our of with Mandatory participants market with quarter earnings. number X

of WAM strength three and respectively. in mid the two small We the global of number and a at in quarter. ranked retirement in as number one In diversity case of and view end a case factor third our terms of sales, reaching retirement $XXX we the source billion U.S. also Canada and AUMA

third to We transaction a for on X billion, highlights our charge to of quarter of that financial which business net capital XXXX. and income annual of attributed shareholders and reinsurance delivered gain Slide $X.X $X.X a actuarial improved a core to included efficiency our the Turning the the billion earnings and related legacy of review.

Our of distribution resourcefulness $X.X reflects the X% prior strength our a channels. the down our were digital of and the APE sales capabilities product maturity modest of billion, the our which shelf, from and year, tenacity

the position per with remains Book rose LICAT a year. up of strong capital value prior from ratio XXX%. Our $XX.XX, X% share to

Turning to Slide X.

recent in occasions five not various our strategic on on priorities said has I've months, the focus As changed.

three Now namely, of in growth trends demographics underpin of class experience. the the impact retirement and of I gap Asia; and the digitization toward two, the the demographic macro in middle transfer; three, global that wealth one, customer them, the increasing aging have emergence trend on

million While our we've in of legacy businesses that quarter. This very the agreement largely Life Bank-Owned a already from achieved as U.S. capital released target, we $XXX of block. report result incremental a reinsurance to portfolio related was our optimization Insurance pleased I'm our executing third to

We And in decrease processes have by the of in expect XXXX to XX.X%. Core an by XXXX, quarter. declined we encountered to a year third schedule. responsive ratio expense those mature expenses the ahead two year efficiencies the from of such headwinds, expense enable of the achieved of our A years billion of pandemic. us modest be quarter. achieve throughout prior $X expense to of versus X% points prior place efficiency percentage that as target program the continue with X.X of end we And efficiency to quarter

we to to priority generate XXXX. earnings businesses. of aspire our these highest businesses two-thirds by And in company total potential core growth Our have is accelerate third

businesses potential earnings highest core Our company total for XX% accounted of year-to-date.

a investment a savvy of that the However, of percentage reporting. of our our leader is one strategic cutting with point in members to a climate Dong core for In being five one improves Vietnam businesses only mothers. which it's financial lowest Normalizing increase across and and investment denominator. since benefits worth item, we digitally investing. Investing Investment demonstrating rates XX a figure responsible as penetration access with have Management for entered global Leaders of to being highlights the new of into in for potential a organizations from community change our This for insurance that XX% five we company this solutions in and Manulife included WAM, commitment the partnership In total with more Asia, at globally expected Asia. noting to sustainable core And Responsible Group million responsible absence earnings, Bau, advice contributed sold XXXX. XXXX, the Principles gains than recognized highest Myanmar, was the would in in market new edge Cong first a policy commitment and this

Our retain engage transformation, is our our commitment customers the digital remain We and provide we've our we're XX $XXX the points Asia, outstanding quarter and score compared customers fourth service priority and relationship increased during continue delivering XXXX. pandemic. that quality to reflects invested digital of digital about NPS In with in and this solutions by quarter an experience. outstanding the focused technology to to out we've the XXXX. customers capability how of since by attract, using on million our rolled to third over This

high priority team. performing Our final a building is

compared XXXX. global improvement services financial quartile is recently engagement XXXX compared global ranked and and employee by a peers, to and completed to to survey highest employee position top top achieve target significant We services and peers in percentile Our insurance insurance quartile the among our engagement financial a XXXX.

Manulife in addition, In make services XXX. was employers XXXX recognized Manulife Employers globally top List, the only XXX best Forbes and us on of making three its financial the by World's one globally to top putting companies Best

impact on These ago X. of our The and embarked We journey remain to area, prospective invested a to since customers available have transformation stable $XXX figures reflect years time. And given over capabilities million fairly those Slide to investments. metrics products vast through XXXX. in digital of face-to-face Turning over digital solutions. in this our virtual expect these several majority success we are the

remain Slide digital to X. proactive long-term. committed investment to to continuous the reorient and over We the Turning customer experience capabilities in

automation, introduced WAM digital online more tools with the launched into our us facial John greatly and script the advisor health Hancock and In each approach added China, technology Canadian Group journey. the a supported In expansion our science, tools launched quarter, This Design, our intelligent using community. analytics our several with guide Amazon supporting by sales member Vitality unique we video help of U.S. and effectively acceleration Benefits to engage a Mainland devices Health to the proactive predictive Overall, customers. to and in recognition and by Halo business, latest And program. band wellness we enabled process. we the have global

and pleased to well market Moving entered performance, our to of decade to a and Manulife confident actions I'm XXXX strength, our derisk We past position positioned is future. to that company's the and To third quarter sensitivity our XX. reduce thanks Slide with for movements. in over I'm taken conclude, the business year-to-date

both to against opportunities the they our performance Our capitalize and strategy. navigate inorganic. we we flexibility the on execute to emerge, have and organic financial has downturn solid, as been continue And and financial to

approach interest We in and so shareholders. deploying of do will best capital, to take our continue only a the it's if disciplined to we'll

demographics medium-term will of consistent financial execution the remain have committed our dividend that Witherington, we the hand Phil underpinning changed. to Finally, and record I'll Phil? results. highlights and economic you. over And our review fundamentals the our of and Thank fact financial to strategy our not both targets, track given who

Philip Witherington

you, Thank morning, everyone. and Roy, good

financial by key sales quarter, favorable the the core prior few We X% prior net solid XXX% in the to of view quarter. our XX of quarter year-to-date for our financial and And increased and WAM we a core next ratio NBV XX.X%. was XX.X%. ROE the LICAT reflecting of in APE X% performance will Turning and third a AUMA XX% earnings highlight the third environment. of with by with by in to impact billion. XXXX. $X.X the substantial We the markets and inflows and drivers declined Slide quarter this of $X.X performance leverage I current the light year compared compared billion of with year performance maintained achieved favorably reference of of Average with flexibility ratio declined quarter Global slides.

the quarter, investment $X.X value and by and offset of partially Hong equities, gain which activities sale gain investment in in-force interest we offset in corporate spreads gain swap AFS narrowing The sale The risk-free driven fixed direct expected Global earnings partially average attributed prior on million third our of of was impact non-parallel in $XXX review Core of gains to the quarter of policyholder our of updates. earnings by of XXXX from as gains Canada. items the income business Kong resulting and of the rates the markets We modest credit by the decrease in U.S. primarily we impact Asia and a Of actuarial NAL completed $XXX of estimate to the constant with million movement a life lapse study recovery new XXXX. Canadian the unfavorable the by global offset quarter. variable for X, methodology We in from This income business also of primarily and The were modest annuity mix higher-than-expected in experience $X.X other Asia. had charge other, of U.S. largest various and a impact a bonds, included shareholders is favorable from ALDA, and equity This by policies provided in assumptions, second in the to comprehensive the the growth, impact delivered volumes gains XXXX. of attributed as and lower insurance related the in shareholders impact the of our These mortality lower was estimated U.S. reinvestment that WAM. in corporate income third close assumptions the our billion income impacts X% the offset net million absence year's was and the Resources exchange net Slide methods assumption businesses rate of $XXX Turning direct in well to year consistent on partially private spreads, favorable product investment AUMA driven Canadian note, of of quarter of $XXX in continued Other were quarter impact net higher morbidity in markets a certain down on XX. refinements. driven of favorable to The the core the rates and equity by review the Limited, of the in million reflects of on universal billion review third related to component core of charge largely January by returns of from fair in basis. reflecting losses updates and the on experience, annual quarter. recognized

the from Bank-Owned market a would well related and from reinsure expect transactions the exchange execution shows approximately throughout Finally, U.S. policy Slide driven driven as reinsurance increased on annual business The million. to of our gain review. from a our XX analysis. in-force Insurance movements Life agreement $XXX impact the was the U.S. of of growth than typically to which rate of rate the we X% quarter third an actuarial earnings liabilities the Expected primarily was XXXX, constant as $XXX profit it million Legacy growth source $X.X billion during generated of year, by gain of as in on year-over-year benefited basis, Asia the by higher of by

We continue X% view expected as a in-force. rate for annual profit our growth reasonable on to

favorable mix, in U.S., average in COVID-XX driven the of policyholder claims U.S. the in a partially of experience, by in life compared Overall experience offset large-case adverse higher North New driven long-term favorable as lapses mix asset of quarter, the mix modest care, experience impact and by quarter lower international note, new in year offset due business the to surplus and yields partially by asset policyholder offset to than America, by lower prior partially the and partially in in Asia unfavorable reflecting the in was Other, unfavorable with sales levels. product care year largely Kong the prior U.S. the COVID-XX. business on impact product was by Life and COVID-XX. due Hong experience. year higher was with Core by impact related terminations higher higher claims flat gains business Of prior which Japan declined in were losses claims new quarter, unfavorable long-term earning lower change offset compared included third

Core of by business in increased driven our policyholder Corporate Management product prior by business by by Global losses across smaller non-recurrence Kong average the segment with insurance of quarter, in the Core in our XXXX. Canadian offset Asia In product fee in by lower quarter decreased in-force X%, Turning focus by Asia partially in higher and partially U.S., items. U.S. and Wealth business quarter business, in mix and third environment, and increased business third the of earnings Core by Asset higher increased investment product of economic our partially Other a investment experience by XX%, impacts core Core primarily earnings in third spread driven core new of changes tax to Slide in mix offset reflecting reduced actions the Asia increased in earnings businesses and on mix and in Hong X%, XXXX. a spending driven and size favorable income. of AUMA in by absence growth XX. retirement the the business in our reflecting current tax the by the and a in non-recurrence earnings X% favorable earnings lower from experience year by number gains million $XXX unfavorable offset unfavorable the in-force related of lower quarter primarily and benefits. XXXX Asia compared Other Japan, management unfavorable the new in

due in lower rate APE primarily we the million sales prevailing COVID-XX. Canada, quarter, decline In in lower as as business from international in the to of segment interest the yields the In sales, to U.S., new third offset interest insurance. a the year $XXX our delivered higher core quarter. driven the the APE quarter, delivered from individual by impact from life, volumes the Asia shows down lower from quarter insurance partially Hong a of the XX% decreased prior quarter the a than offset Canada, business of group life, by headwind prior in prior Kong. XX% X% value term quarter value rates business driven the generation insurance year from XX% prior growth APE by down billion, largely indexed adverse XXXX, quarter new new universal as by value offset business the to year the in modest year of XX of by sales. universal year increased Slide due to and In sales percentile sales value business and sales partially persist Hong sales APE COVID-XX more due new to lower sales. the given of due and higher year quarter. value of large-case protection lower Asia, environment. APE XXXX, from sales by In expect the third X% XX% We Asia, in year the universal Kong variable by In international the Japan were sales adverse life group from Hong domestic primarily large-case from lower sales we year and domestic increased quarter was sales universal driven Other prior quarter, to COVID-XX. and XX% by life prior prior APE $X.X Kong. impacts XX% In in sales U.S., declined life life decreased And universal new In by higher declined prior

Slide XX. to Turning

quarter outflows year of net the of $X.X $X.X prior in with experienced and Our Asset the business billion third outflows billion quarter. Global net Wealth compared Management in

$X client. of of billion retirement. of inflows than net quarter offset Management billion quarter by the in higher Asset compared the flows. XXXX driven redemption Management, redemption prior year by redemption $X.X net China, in Asia, decrease mandate the a of referred was Institutional Canada, billion were Institutional $X.X the the and of I The net lower in and were quarter In partially third in Institutional with in in was compared higher $X.X by coupled third non-recurrence quarter $X.X outflows inflows net equity improvement UK-based and In $X.X inflows billion the lower of third in with of In of in earlier, numbers This quarter driven redemptions plan billion U.S., gross Management the lower in The billion were year mainland $X.X equity billion driven Asset billion include deposits the XXXX. prior $X.X retail mandate redemptions to the quarter third net withdrawal. sales outflows recurring XXXX. by higher by member Asset net which inflows retirement of the with of

average core inflows our year increased impact the scale favorable X% prior XX.X% basis Our prior and quarter, margin EBITDA efficiency. and expense the year-to-date from our by of AUMA with was of by driven billion. year reflecting $X.X points up markets the And compared quarter XXX to net the commitment

Turning to Slide XX.

business investment overall activities. in Our represents a the quarter the XXXX line third movement in prior of quarter LICAT of by of net and U.S. the issuance billion target. markets impact capital were is block the a This of impact and of capital the above as capital as Legacy offset supervisory in of reinsurance ratio XXX% the $XX with

slightly debt, XX.X% medium-term to target of as maturity. pre-financing XX% been increased proactively is have our approaching ratio above we which leverage Our

quarter. increase also stronger to Canadian the dollar year addition, the In this contributed

XX, Turning core to Slide and expenses.

action efficiency general management to have mature culture We've X% core COVID-XX expenses the our compared at by of to disciplined with on and and prior and basis. reduced since quarter deeply program onset embedded in Manulife. a the a contain X% expense expenses pandemic core the is year approach expense taken Our is year-to-date

year-to-date expense XX.X%. is result, a our As efficiency ratio

this was XX-year by lower return of to from shows asset to And X.X%. Slide since was ALDA average portfolio of XXXX XX, during to class that noting equities. performance Hancock. Manulife’s The over XXXX Turning delivered worth the with it's the period volatility significantly the which our acquisition John comparison portfolio of overall in public the period

period. period underlying the its gas return ALDA and exceeded With has classes of of our as has XXXX term return over current aggregate return Slide oil portfolio Manulife’s disruption of return financial demonstrates levels core each XX Timberland, best targets of exception and Core over result three targets, the unprecedented long-term growth average our business. this assumption best the overall assumption. Despite below this, our long-term of exceeded medium current estimate of and performance. EPS operating estimate asset the the this outlines COVID-XX. first and resilience performance recent ROE during quarters our Nonetheless, a reflecting were the of

to geographic remains line we is persist While a believe to COVID-XX beyond. XXXX related for of well-supported EPS XX% to it's future, XX the and rate reasonable and by growth core expect appropriate headwinds for both This diversification. foreseeable business

call In continued This robust prepared anticipate program expense we the now capabilities. questions. and to contributions addition, our open Operator, digital we well-established concludes remarks. from will efficiency our

Operator

Thank you.

We Instructions] now [Operator question the telephone Aiken ahead. Barclays. John questions from is from take lines. first go Please will from And the

John Aiken

Good morning.

in life in the case offset us its the to in policy claims are In terms same to actively can trade-off the continue those see was in claims sense in if experience, third benefits what is expect the we not? long-term saw of since we give you the follow-on, basically higher terms as U.S., the terminations a claims that to And the should like those count split on a care of to see between as we versus quarter? the increase the of terminations, then the

Steven Finch

the quarter on Thanks, those John. driven It's take care of in was by that gain The that we depths claim. Steve that primarily I'll Finch, really in long-term question. saw

notable didn't increase of already we that are So in our see claim terminations active in deaths, those benefits, lives. receiving a

the driver was that quarter. the So in

earlier saw it terminations that and the and here, QX in in that and improved from that was through reported and it disproportionately In terms the were we facilities trends homes, parts reported in on widely it lower on population, in how really how saw that nursing of we come on earlier saw has year. the our It QX the than results. Hopefully, pandemic difficult saw what we impacts significantly seems certainly care situation of it's depends we that impacted and were the to year and say. different claim

it's to So predict how hard to out. going it's play

We are to data going continue the to watch closely.

John Aiken

if dollar thanks, Steve. in what to as Phil, going to ongoing may, about inflation on going What's ongoing And ratio, your in the feel the expenses to of the target very last billing have that obviously, fall for XXXX. going of hitting How degree line? understood, expenses see I Are spend the years? programs? couple in and on bottom reinvestment are for the forward technology? continue And I confident over efficiency outlooks we you can to we same about think terms we

Philip Witherington

morning. for right. expense you're the Thanks question, John, and Yes, efficiency, good so on

the strategy. there's cost strategy, said our that would to more plan. have priority to the of of in year impact and laid part progress. in XX% core our $X that to we a deliver that still a environment expect at that overall XXXX, revenues. target. efficiency consequence has the we on of clearly ratio do do the we be that target we're continues there as that's but have get work the by And are But out, It We key short We moment falling to the billion we made this

does important. continue be it So to

one we continuing year-to-date in and digital to reinvestment, target is to reinvestment clear, by absolutely initiatives that a in remarks to demonstrate remain component with by do to cost and the our in XX% X% bottom to X% is despite expect invest. would efficiency to and XXXX. continue line, year-to-date was gave of line intention reinvest prior $XXX that his and clearly the But expenses quarter, true same Now committed the metrics fall the that falling the the invested is we in million are that the in what the benefits have year of cost we program Roy bottom results having we that that's terms

John Aiken

re-queue. I'll Phil. Thanks,

Philip Witherington

Thanks, John.

Operator

from Thank you. ahead. Dowling The Humphrey is next from Partners. go question Please & Lee

Humphrey Lee

Maybe wondering go the you you mortality? Good changes review, assumption of taking if specifically one for for some lapses just my to morning color in additional and on the Steve, for and the questions. thank morbidity can terms then also a question key into and

Steven Finch

Thanks, Humphrey. Sure.

time, got that got In been there emerge this of has we've what insurance experience, is we renewable in-force lapses points and the many level reflected interest has there drivers policies, later lower is primarily $X been seeing detailed last many, we're at more more terms duration of so study in the we've experience. the so charge We lot data And the the of points that data as just we've that lapse past lower matured, the are term by that the we is took doubled, the a policy experience we a than get we've years, than the our for XX plus. was block primarily our place products after in and add you context, change on the we of PfAD on paying margin our each policies, of is after XX% ultimate X.XX% this That's stopping premiums lapsing a lapse is so of review seen think yearly closely, seeing assumption. block the well more experience that years. reserve persistent And rate the a we've Since as the these driven Canada. per get best what the low of of estimate year. cost to million so and the seeing strengthening to in we're year, the larger over that review, rates and to that from And sense quite on and tracking was did in now customer large XXXX. that assumption that the one X.XX% in

reflected this the at end prudent we've So industry. experience. the practice of feel emerging all we're in think I good I that And

a review ages. In terms our preferred have experience the business. need And certain benefits business. release related hospitalization we there. we've our to the margins some simple recaptures which got our showed emerging of in And saw increase as retail gains rates a Canada, insurance in and agreements cancer We harmonized in older to strengthened that benefits of mortality, Japan, and been more we those did the And lot in on our We resulted the we Canada. is benefit. life reinsurance also U.S. U.S. finally, reviewed mortality business saw reserves there, gains of reserves a mortality changes in undertaken business experience that have observing there, we primarily our and assumptions than at in with we've

Humphrey Lee

So when earnings the we uplift? different run segments? should change for I guess that affecting the about Like how about think basis think we how the rate

Steven Finch

Thanks, Right. Humphrey.

seeing on we're it is order through come places uplift in and of quarter. $XX few the million So per the a

Some in of true-ups in coming mortality the through in in-force some models. earnings on of from in that's the an U.S. our increase terms the basis of also change

in and We’re but seeing through quarter. in policyholder seeing a offset then all a line, it $XX we're Canada, experience million decrease a pickup the roughly in Asia by also come

Humphrey Lee

Thanks. helpful. That's

Operator

The Tom go next from you. MacKinnon question Please Thank ahead. BMO Markets. from is Capital

Thomas MacKinnon

impact the just Yes. I guess earnings morning. Thanks. really the Good and start Phil, new business. on on on surplus with

impacting lower certainly this yields changes asset a You investment environment, lower and going quarter headwind mentioned mix forward. and

be just helped as in impact better third thinking quarter to as new of new and expect of terms where should we And Thanks. probably we the of this trying we mix. gauge earnings follow-up. of sales well? business on surplus, given in I forward the profitable kind how a at going And to sales Asia, well what business should So more better in indicative more by level. as as certainly have in Asia impact Is are just about

Philip Witherington

Tom Thanks for then Anil to the the take question, business maybe Phil. then hand points to question. cover Great. earnings and and is your on the over surplus follow-up. cover new Asia I'll This we'll

in called earnings reduced mix you've in lower lower $XX out So variability. public We're just reflects as completely on was lower between third interest pretax income quarter, was we’re of from there, in. of And that the the in environment in earnings asset is key the surplus half third in out from yields, know, there to quarters there the that, portfolio we're just in the I key offset XXXX. is those equities, surplus asset $XX on mix exposure to We on and equities. of changes. tactical the prepared remarks, In XXXX. million into levels. order million, you corporate one as surplus, rates but million was there $XXX well as a components environment as during a we're variability drivers that not the than the approximately And our fixed in in probably of invested that And the that’s the said surplus which really higher average slight portfolio other view earnings and earnings drivers the switch in of asset as change equities, quarter of

from the there I was a call think in as out, noting it's worth think our of the called in quarter, earnings quarter, quarter-on-quarter second capital. on the gain impact last movement also earnings we And seed surplus. I in

in a capital was bounce $XXX of the valuations of back in that order So bit million. a seed

capital million $XX about but quarter half level, $XX at that favorable to The also third saw returns, million. seed

So that really explains the movement. quarter-on-quarter

hand I Asia question. think to about business new to Anil the I'll over talk

Anil Wadhwani

question. thanks, and for Tom Phil the Thanks,

with at business let the of a you look if start quarter-on-quarter. So gains and planning me Asia, color little for bit new

our were was sales business up new by up gain Our by XX%. XX%, though

it that pointed protection. and you saw the back an product of out, on we better account was largely the of in predicated rightly health mix, increase As

XX% jumped by protection In sales fact, our health and quarter-on-quarter.

a we disciplined reasons that, down that. while Phil for again, couple alluded X%, XX%. on of to a were comments. were very perspective in addition And business sales up From new our In expenses, to gain our was opening as year-on-year his our

margins. continues so well the Firstly, launched products health shift we Hong Kong, be again, outbreak. our savings as of reprised mind to product and product protection our that to bar for improved both mix, example, of back as customers new for on critical as with improved the top illness and topic a In a

discipline be – a on by our to engine, declined Asia expenses expenses X%. growth continued being and We very despite year-on-year

Japan, as and had from about being continue that last XXXX if sales in it least, in VHIS saw expense earlier. in of to perspective healthy you kind And an very XXXX. lower new a of look we a mentioned margin strain of Hong year-on-year three as business three significantly but quarter quarter three at perspective, And quarter not noted to lower So be as it reductions a Kong the And business prudent value was have compared from that would does earnings you of new while has that in VHIS create us XXXX. strain. for of I

has improved see business the resulted of – quarter around better mix, and gain the VHIS factors of increase expense three in product new into that you combination discipline, XXXX. a So

Paul Lorentz

Anil’s Tom, I job know I not supplement just might was our force growing in just just Yes. a Asia as phenomenal it well. agency with to comments. also

by agency strength grown huge year, in most for look for agency marketplace. higher is the of a us. see agency really in the on for us which source In has than we a on fact, premier focus what last we've would productivity And XX% a been our where

as of Anil’s great growth a been insurance really we've agreements. with sales Asia us in that driving So had with in momentum helped emphasis. has They bank that's as for driver been us another tremendous the Again, our certainly been well. strong have

Thomas MacKinnon

Thanks. XX% sales, year then I individual insurance and are Canadian think, year-over-year. with has follow-up down, the Okay. to maybe do in And the which

mentioned you've still is send it quite fact few What's apps being of pick a would she in the down anticipate to visits. in COVID, think which sales? the sales down getting up driving a but paramedic Thanks. Is a just those post-COVID that, we which of year-over-year that sales be – sort result insurance it have I able electronically, can't you're strictly to as Canada? slowing

Michael Doughty

And definitely question. individual have you Mike had our but you're I'll our strong that quarter insurance in Thanks Yes, sales, overall, total because we business, Tom. a saw COVID line. Canadian It's diversified the our take a in – of in we actually pretty segment impact Doughty. seeing on

seeing were paramedics entered a of closed. very the And You'll lockdown, now where what year effect really kind position. delayed early the remember strong the is in of the you're we

higher face new the business at and So amounts, it into the was very get to pipeline. difficult written

the improvement quarter. seen an have We throughout

one optimistic of are write depressed borders and insurance that references, the of going So activities and do exception that will continue, I that's shutdowns. are until severe course, would more travel absent we certainly course, of again. people And certainly to traveling reopened coming back be and sort we're

Thomas MacKinnon

any that of at with underwriting Are of you see any – wouldn't be kind what see or the that simplified product kind the brokers? you just would need you looking market in paramedic you where for appetite visit or is

Michael Doughty

partners at very – worked actually our actually of we we're process we quick pandemic, million early evidence. without on medical to a ages that of expand in the can reinsurance with the We've sort quite the limits actually Yes. bit under and amount very needing $X agent so younger business actually

has been very that So popular.

application did, XX% time through The business other third been processed have we've had that. electronic application that our an that in we was really promoting quarter. electronic and thing some the insurance for of

do we available, are all virtually now. virtually think So of them our products

So that's us. for issue not an

Thomas MacKinnon

Okay. Thanks.

Operator

from The Bank Dechaine you. ahead. go Gabriel Financial. Thank next question is National Please from

Gabriel Dechaine

might sensitivities that best risk perspective of downplay on the downplay at versus to else or that returns there's some possible you more potential from But to And disclosure that that you them. performance if I'm PfAD, guys to anything long-term GAAP lower side, would of arise? quarter, main that'd something highlighted you'd wondering wondering charge, say And it's morning. give provide call would in information they a from care, the basically, the estimate really, least what investors for additional stuff charge done the granularity concerns anything this CRE good I'm the and can one on the about have be you've portfolio for that's too. great similar this something your and Hi, changes returns. actually, portfolio that considering presenting. ALDA have Thanks not be and if if on if that that but just you for there's the the

Roy Gori

Thanks the Okay. question, for Gabriel.

something to disposal So Scott, away suggestion it’s on NAL. and anything very I and you think good on providing returns we to else disclosures. of respect disclosure, transparent about, if ALDA point certainly to your wanted open there's know we're add that's and don't take with can And the a

Scott Hartz

this bringing Gabriel And Thanks Sure. here. back a little bit for let up. me up

achieved returns Our be year, the is showed with hence guarantee that given assumed them. so years. our comfortable we have longer-term any those and starts doesn't here, we current over continue in actually look to long-term at much. make no to quarter knows, really But XX-plus past performances Phil everyone that that each we And history said, assumptions sure returns future history with where of looking the returns, or With year any year, us at do experienced XX we as influence performance. have given

some at of we over were And whether I'll look have conditions drove we those certainly and returns headwinds. that what changed. So just also few period, there And do but some tailwinds think there them point out. were a

and and there. the of this look interest has that down agriculture, come come inflation First, that's real the portfolio. is then rates this years equities And gas, drop a been certainly and real over last it's reaching real through for crisis period, estate, on even largely a hence the down, time for XX And poorly. period, But to back the XX a a which component and especially we of did estate bit poorly big more – portfolio. tailwind. see a if of hand, infrastructure, performed But the and are does when a equities, It's good expectations oil one at financial bit discount really take years is headwind timber, inflation perform have asset returns bull other got was been you global drops a rates market. us inflation

in Canadian markets. at about which saw in were U.S. even return, maybe about you returns a equities consistent So exhibit, is pretty or below Phil's long-term a again, really equities those as X% return, the X% little

And was XX you worse oil to it like for us feel X% headwind has and that been don't which we then perspective. gas, a So returning more unusual period years, pointed even past an less in those recent times. and over than from certainly

points. XX that's years sell And exposure So been oil the of XX gas with at past over nearly closing January and X% that and exposure. overall where we ALDA did quarter, point in high this falls the it's below XX% our to last it as NAL as certain with

feel this us behind we is a at like of So do headwind that lot point.

current you looking question we estate and put together was and I real get with other to guess sort assumptions. our just comfortable on so of forward sorry, your that follow-up real And estate. all do on –

but the particularly I indicated little very of about is biggest mark it with portfolio prior multifamily, X% is a our actually of be over the concerned I would that and very the and we good there, feel obviously in portfolio. part portfolio have office. Industrial calls, of about. two-thirds So retail industrial, on is office concern, question I'm I little think that And big the biggest an area

been go going home, and occupy is little folks cramming we office been work and people into of be a lot continue as smaller that's and the bit people do of Although we most portfolio. that that's And that looking am concerned space, has will a argue lot a won't when would of we that so and call of that what than less side space where properties, we where just investment that, amount focused of on less very back, which listening But to at I we to course, of trend. a the to smaller the I've half longer would a from go back. do other the people

to but certainly it will hard is play where say it's concerning. So two those out,

has large in the certainly the a out it is stick, to go I that been biggest news vaccine can period some will a the chunk. long we the through lot this but think a it less be week office and concern the we pretty get my past really I helpful because back sticks. extended of of sooner think of was

and portfolio portfolio. my watching it return closely. So we just this That estate a underperformed be we our that the in probably means was still on real quarter modest and slightly had positive modest we'll that concern is assumption losses biggest loss actually

continues I be think for bit bit lagged a the those third fourth good and returns it equity quarter to a know is of think as a you in was – quarter the I a quarter public on private equity a quarter. tailwind other are hand and good

changing returns over absent So in the I of provide us pretty couple that equity. markets think private all good will next quarters radically

balance this So out I largely at two point. think other each those

Gabriel Dechaine

Thanks. Okay.

Steven Finch

is my in I of closely And Scott I'll a review pointed and the ALDA And I that I add the be our key wanted to continue together. comments very briefly just assumption. assumptions the of reemphasize it Steve. very team confident long-term. over Scott is, terms it’s his out and my long-term to there worked very assumption. in things that

We risk demonstrated have basis adjusted on what for presented a team a that really are returns strong record earlier. delivering the and in as Phil track you saw

just remind thing, assumptions. to other ALDA on Gabe, you of put margins The significant we all is the

put time we margins So the and least portfolio at on the growth, income, favorable. that’s required the we're also to shock

assumption is all-in return. X.X% annual our Thanks. padded So average

Gabriel Dechaine

but question, second my time a graciously leave analysts. had fellow I for I'll

Operator

Thank you.

from Scotiabank. Meny go is Grauman from question next Please ahead. Your

Meny Grauman

if Hi, good review. in about this morning. you COVID factor did at Did considerations and that wondering any what review, that in quarter? Question I'm played all to assumption role annual the

Steven Finch

this still develops. of experience these and firms is with some how is are that We'll we're and Thanks, to and long-term audit Meny. at We're industry. It's Steve. The what that future, factor not short the this point year's tracking seen I've see peers COVID not views we're but view study. people in this trends the the globe part from of in, I've taking consistently surveys assumptions, consistent we need answer and of we'll from the updating in the saying, all seeing form for across no. seen

Meny Grauman

second was this to it do time on the about of your see the just the consider comfortable whether you issue? proactive how of shock, question, I before wondering, under nature make particular doing part what that. peers has I'm feel sense being much ever proactive circumstances you my would or that be of know given need talked to would would And develop one So you things something

Steven Finch

good a It's Yes. question.

in have the think just people thinking that of book industry. business. you I about a are I diversified we what remind

claims seen COVID, gains seen in we've policyholder So modest impact it some experience. life product lines. some can We've from

diversified a got look. So we've

assumption. how us, I we part at it's going at terms look So in it impacting We all would to need of be we data and forward. don't that'll one of any cautious be that at look look the that holistically

Meny Grauman

Thanks.

Operator

from The from Thank is you. ahead. Evercore. David Please next go Motemaden question

David Motemaden

that. for I view transfer saw morning. was wanted involved I and there. U.S., stock on opportunities a and an large in meaningfully a recently your Naveed good just transaction Hi, annuity book a and that Phil the there rerated had just guess the We and risk on after variable maybe. question view updated particularly

So wondering annuity the opportunities risk the on side? current view is potential on U.S. what transfer your variable on book

Naveed Irshad

Naveed Hi, here. It's David.

process reviewing It's to applicability us. So there's over that a it seeing that one for We any and transaction was certainly that year we’re interesting. know significant took was that if a complete. closely

know also that within. potential buyers market may of recognize are that VA who We the not there be blocks the value appreciating

regularly seen we’ll interest to do inorganic continues well said, hedged. The earnings up That cash. We're we explore shareholders. effectiveness. generate VA holding hedging business in Historically, the really and our hedge transact well XX% we've of So volatility. high perform options and if it periods is best through our is program of well,

like working with buyback also to We're the initiatives, have having plans and program organic it's organic So with our success well. continue the we're pleased work.

with options. But business. the we're it's of performance looking So the say both at again, I'd happy

David Motemaden

give guys that the VA capital net majority Is that risk is? follow-up. that's the reserves Got is entire the – obviously I where it. of just amount Any could and guess the And backing U.S. majority if the it book to you of – book. sort of safe at assume the given backing I

Steven Finch

me, the block relatively I can It's comment on U.S. the of and I Steve. of in split largest that. part But the benefits in risk the don't higher are front have David.

U.S., majority if So be the we than would provide information. more half. certainly we're but that circle be back it can to would The in willing

David Motemaden

last look disclosure have at it point second And portfolio, XXX impact years. just ALDA that I guess hit that's net $X.X XXXX, why at from I'm was a over just an reduction, XX% a of to And That's the is year-end net that's gone several reduction. on portfolio if in and much question to Okay, look great. grown. if and the overall then income the more increased given than billion XXX of net has billion helpful. basis $X.X I impact and the my over so assumption. definitely It's by book you point guys from income wondering value I basis return to up income reduction that

I XX% is about I why over But think time guess, period. sensitivity the move upwards. just that overall portfolio grown there has something that continues – wondering to I'm

Steven Finch

two are Thanks, one. sensitivity. that Steve. what's that drivers take David. of It's I'll increased There

was lengthening liabilities. in what the we basis of for of those drivers. change our care hold in is Long-term XXXX. And means first some that The model was ALDA saw We one our in longer. the

sensitivity. XXXX. little And what is run the we And sensitivity, lower returns a returns in sensitivity. getting that is ALDA, when larger, So the significant we’ve the got we've ALDA does longer and is that of because for bigger, the over impacts less the we're benefit And of which fixed rates the driver, got in period the ALDA of lower model. rates increases the the time, second which drop our ALDA spread the interest so the between a in bit income

So a the opposed as portfolio. in it's really growth modeling to thing

David Motemaden

sense. it. Thank you. Got That makes

Operator

Markets. Capital next The from you. Thank Doug Young Please ahead. go Desjardins is question from

Doug Young

a morning. with you're I'm you. Good to person so popular today, stick Steve, going

lapse, review in quarter. you did negative to some took a in experienced You Canada so actuarial this lapse have sizable the related hit assumption again

what unpack hoping this hoping you was negative just sounds I I'm seeing. that you elaborate some U.S. also lapse the in you're a it sense that. can fall. And experience, of you on like So and can maybe had give

Steven Finch

Thanks, Yes. Doug.

earlier, in they're I review the lapse not connected. directly experience. mean, Canada, Really, reviewing So talked about as it's I the emerging

North QX, seeing of a in is lapse in protection rates the We're believe seeing our products What – what going that not terminations care. for America, across to like we're claims the going what saw higher seeing, across trend. – routine we're long-term terms drove dentist, In lower than seeing we're gains. we care quarter, we just

So where some are coverage people we're Mike a life referred to are environment. Doughty on a me And in me studies their there's seeing showing insurance situation consumers studies. valuing to that that global pandemic. more some to referred their hanging this in Mike

might here coverage. financial in So see – of We think can North some saw lapse holding be crisis their in what where doing. think we global people you it's trends off trend just where terms onto the we on experience are seeing the customers like we're American

Doug Young

is mean, there telling of assumption what I you down didn't is is that more take that enough? what just and you've Is a that lapse COVID experience Or will back to something event the assumption? this you given think an right risk that us? more assumed now your it's it in unusual go the

Steven Finch

and think I larger I COI level those at basis. to lapse took X.XX% ultimate it's mean, a mentioned padded unusual We an to X.X% trend. on rates, down policies as we the the

time. think low. revert are this pretty to they're So over is unusual We trends likely that

Doug Young

trapped And there's requirements than of any be that LICAT. your kind around ratio you can if in any, maybe these but certain have and there questions what is color been obviously and on trapped Fair is provide a put would under enough. context? additional higher calls concerns you in in there discussions capital, be the I then past is know I get on XXX%, strong required would about that Phil, of LICAT capital, XXX% regions, what Is there

Philip Witherington

Hey, Doug. Thanks question. for the

our when that results with target. XXXX, that You you first we At are LICAT targets. when adopted the capital billion had And point, and the the strengthened years. $XX XXX%, LICAT strong substantially of quarter supervisory the $XX a at it look recent position to of in billion methodology ratio that's of capital supervisory reference above a is the above right that QX in point of we just put certainly behind capital

operating deliberately around well-capitalized the entities, supervisory we our in and entities so we're above all Now of world, the very operating our target.

substantial the Having to it's level occur. order said be quite market may that deploy that's XXXX, And we increased we we've to through If a that think the That that XXXX very hold resilience to to we've dividend do the quite the capital we that debts, about redeeming we that place. of able deliberate deployed treasury XX%. And parent. from So when provide that so XXXX, XXXX the also in was and $X.X billion on at net we by MLI into that just we also potentially remittances of really But share couple of in subsidiaries top And capital taxes had in provide sufficient buybacks that And the of billion that $X.X capital past net we've is that, when shocks of think in on flows beyond years. and the have calls redemptions. speaks that, necessary resources actually what fulfill do look we drip levied the do we the are been any cushion. to withholding to to a flexibility efficient done have holding company. to give few centrally. examples to maybe to maintain I of in to confidence fungibility

deploy Roy’s you and see dividend have are out needed. one flow think to just as can remittances to I we do call support in remarks So feel the we earlier, I we the committed that. very from to And that absolutely flexibility thing confident capital that medium-term

Doug Young

you in Is rule capital would a operations about? maybe could a your all follow-up. would there your with I kind target – my is an little across if in of you above capital there of think I a but of is but quick LICAT just of mean, – like number, jurisdictions, excess leave and XXX% a we all looked have requirements rule thumb, this so thumb efficient.

Philip Witherington

and LICAT XXXX, rule actually is consider quarter first call of XXX%. XXX% And XXX%. the a of you think XXX% there be is capital conditions to in no downwards. we transitioned out feel position. to I remaining The LICAT do continue good but strong to strong I do to and so uncertain this we market continue close I depend of a we And outlook. maintain to it's Well, number. very of we circumstances. upwards I We very will magic in us There good reason volatility hold upon – a both think appropriate an is And very see are that a environment, have market think amount cautious. is capital where position, thumb, that's for capital to

Doug Young

you. Thank

Operator

question you. is Thank Holden next Please Paul go The from from CIBC. ahead.

Paul Holden

Hi. Thanks. Good morning.

First to reported question quarter, If Asia trended COVID I significantly. Kong. at they've the related is Hong cases look business down and post the specifically

decrease a between wondering cases if in that correlation you're in and improvement sales. seeing So COVID

Anil Wadhwani

for the question, Anil. Thanks This is Paul.

of and witnessed know in as XXXX. Kong Hong XXXX quarter getting you XXXX back that the light to Hong trace XXXX. the throughout and Kong into kind So we’re resilient resilient witnessing very even But when you current not of challenges of been were kind disruptions, has exceedingly only if that's two we've in was to of

you If able at a business, growth deliver to look our Kong were core year-on-year. we Hong earnings of XX%

of our so on saw And we the value going both volume focus to is really by business business, are business were we COVID the our to traction what focus quarter-on-quarter, of fundamentals drivers up new the business. a Importantly, on and X%. notwithstanding the strong new

We've stands at at we a broker in partnerships. via Hong year-on-year bank north have which now that strong of So and strong X% very Kong, grown XX,XXX. agency

to is and not tool productivity significantly to case face-to-face be in agents capabilities, a but even defensive our We great which the our in virtual tool, without utilize. investing of customers for are used a pandemic pandemic great

also a on found Hong back our with witnessing the the demand protection, launched Kong. again have favor clientele critical have on good which We have we that new are of products, in illness health and we

business channel So positioned: confident strong business, we our diversified very the Hong mix. diversified is way brand, Kong feel

to kind market and been And of fact, just market execution. half compare prove almost you that doubled track we’ve share if would our first In record Kong. Hong we have able share first to XXXX half in XXXX, our

very mentioned very not Roy his strong we have as on confident. in feel opening mentioned even we So MPF, position comments. I’ve that fact the

we and We well. business continue on market MPF as are one solidify number to our position the

Philip Witherington

had our Canadian experiencing a year. beyond APE the of out and been across the challenges while in contributed this Anil’s I Kong prior and our strength And me, result navigating been it more to real of diversity a really emerged environment. lockdown could all the in strength Asia. lines strong That's were the would has we've if others Paul, And in for significant sales fact quarter environment. a that I a for business global us really only source for have significantly chime Hong and COVID say for key of division. in business geographies fact I’d lockdowns to comments, relates that our us. on specifically that's stringent markets X% of down as highlight just some source to our of also that

In fact, Benefits key sales there. driver up helped XX%, was Group a us that

and as seeing that geographies business source impacted global Our some flows gross has And of the grow me improvements year-to-date been we're But a strength. the navigate in a WAM very where been saw to of that markets then we across To and just of able of which us that how business U.S. the benefits COVID, domestic prior reflecting through the difficulties of our again, of certain in lines we've the significant really on diversity offset challenges the XX% business, picture was helped geographies. our paints on has other business significant year. and ways.

Paul Holden

it. got Okay,

So you model diversified look my as second flow a a being of you the product WAM. well. terms in of results, like softer number question of global And to different pointed than seems a as other perspective already is have I U.S. geographies. related out, it But some the across at as categories if

in strategy So prop the drivers is wondering in market there flows if specifically? up that, particular behind net to those a and help U.S. place if there's

Paul Lorentz

take here. question. Paul. I'll Paul Yes. the Lorentz It's Thanks,

the and having the different small what around in moving offset to on some aren't COVID flow business U.S. business mentioned impact you lower of the the the we accessing as Particularly that, see U.S., lines. of that As of frankly, of particular quite flows, across cash in this business. retirement business much. has an more AUM of just space do said spoke relates in withdrawals lapses of headwinds it and the some industry, of by of wanting that of somewhat plans uptick withdrawals And and seen But because for we of to light the have the haven't bit we the that the means. been participants as earning the environment. a And the flows diversification little impact are really that is relative terms impact in that small generally just owner the to

quarter. would we headwinds. speaking seen aggregate U.S. So But flows think at to first large-case positive this quarter, looking picking year, third have redemption, taking which and time net in positive that the been globe. has do been And there business it, temporary that fact, in have excluding was step retail just U.S. slowly up was in are actually the the and this you across our some business back a would more

institutional across every geography and net do which about our MPF XX%. gross some take Anil, large And client, have offsetting line. think again, of And flows different up headwinds. talked kind we just share. look flows get these And back and of every I businesses so market a The do were business a at positive we had variability. And step you if we

just flows, the share ahead to strength. give in you to you and QX, we of offset and the led our has to some closest confidence the net ability over net of positive to business us given drive where XX% and of a sense the in we do see the perspective next than Just helped challenges other we That's in market really competitor lot lines business were short-term long-term. flows give continue

Paul Holden

you. for That's me. Thank all great. That's

Operator

next from Investment The Nigel you. ahead. question Veritas go Thank Please D'Souza is from Research.

Nigel D'Souza

bonds rates the I rates Thank With interest had a to you you. for fair question from sensitivity. in LICAT past, in held on benefited value declining Good surplus. gains morning. has AFS related

rise expectations. expect normalcy wondering and Is AFS to about touch the in also that bonds, environment? see over let's to I'm and we you say higher to could the rates gains a crystallize AFS that outside rate to impacted reduce of drag in vaccine if successful due trend be return think rise the few next quick if LICAT years? do think, way on a the to to LICAT Would So rising rates to look inflation bonds you how right reverses to or I it? you continue

Philip Witherington

as clarify, value Phil. is bonds value to of the basis, sheet. And balance carried on AFS LICAT This Nigel. a the just fair is in the

a the the it's and gain realization. realized neutral, notable whether qualified is So or regime, capital gains old capital regime, difference to where the the gain, impact MCCSR as unrealized an a only upon that's

surplus invested therefore from treasuries assets And environment. suffer rates income But the the to had benefited in I income rates because So also see we that some of interest ratio on that widening rise that that highlight in fact impact fixed the LICAT credit the benefit And point lower neutral. think of a LICAT the that unwind. you of substantially combination the we that spreads has would be fixed portfolio. stressed interest didn't will the the if environment further, from

LICAT. currently we're XXX% So at

higher that's would expect what be normal than certainly to in I think I times. It is reporting higher.

to fair So in we interest reverse the exactly subside. that a it's But if of reduction how bonds therefore, think and much rates I hard quite out. would see say notable rise, a could LICAT value AFS

Nigel D'Souza

Okay. That’s helpful.

Steven Finch

and capital that general, Thanks. including rates position it's industry, rates, products for the stressed good economics. underlying inflation, and couple we've sheet scenarios a under to good strong. times, to of was the in be quick variety were would of these points. good Sorry, for the the And just remains in Certainly Manulife, interest if it’s interest higher with rise, the scenarios, for add going Steve. a I uncertain balance higher

Nigel D'Souza

Okay, the you. Thank color. Appreciate great.

Operator

from The go from you. Scott Genuity. Please is question Canaccord Chan ahead. Thank next

Scott Chan

performance Good past morning. years X.X%. to over to back XX risk-free and have go XXX update bps. the time I the down just rates that averaging about period, during appreciate gone ALDA again, the wanted But

equity best of And guess it or similar continue another risk way, your in equity those you premiums seems premium it can increased. put estimate? expect risk how ALDA to I your terms to level So that has returns like

Scott Hartz

Scott. question, Scott the Hartz. for This you Thank is Yes.

rates and absolutely sort and in as is rates portfolio offsetting as your largely So earlier, it's lower the particularly where And strategy a on sort impact ALDA mitigated general we said, would much environment, that our positive rate. a well as of declining risk-free is here I rate I as see strategy for discount went that I real this a bit But of down. come don't through and inappropriate really is thing significantly, liabilities add come that well little expectations, a compress. returns we other what that's down asset but and rates as would inflation compressing as discount of in probably long-tailed hand, think inflation has low the

companies seen a other And for talk been so ALDA about investors assets, for years. XX-plus you've us a strategy it’s lot and of life more and transitioning to type

the of We have experience. teams in-house have do of most that investing and years XX-plus

moving third even more the very in fit public a great as portfolio diversified a the of long-tailed And It's saw experienced. that a it's equity. really numbers, rate low in about put So new this for others in a into liabilities. We has we attractive are market together think our risk environment. a you whereas we're way,

when like think quarter-to-quarter attractive have a over we into and it noise strategy but long-term, it's right particularly more the fixed everything the So putting create than and we income. some will things pandemic, much

Scott Chan

– lastly And just thanks for that.

Paul back at to WAM. Going

next sustainable target remind And that general, exceeded can assuming of kind normal was you us, Your equity into or markets, EBITDA And heading markets in the year? that XX%. markets you is margin just envisioned?

Paul Lorentz

Paul. Scott. the Yes, And quarter-to-quarter few in It's correct margin. significant driven margin. say I in you're get in Yes. did EBITDA items there. one-time you noticing, have volatility there Thanks, the some are And a would we in improvement

are just year-to-date, we year-over-year, bit direction. the the And a be for right in So at to better that. proxy to tend little we look moving

I said think made our Phil in terms consistently, we on EBITDA of the margin. viable this comment have disclosed and target before that we do a and think XX% you'll is And I've for it, us see expenses.

organization we’re get to that from shift of leverage definitely is out efficiency XX% this margin global we speaks us improve a of that the the leverage base. reset continue Despite to fixed We I quarter, together, achievable and an able that some mix the diversification, and target EBITDA think despite still for which our it the perspective as confidence really brought gives income getting lot business it to and quite us. you're of

Scott Chan

you. Thank it. Appreciate Great.

Roy Gori

that and add I highlighted, to must created particular we of certainly see headwinds. we've headwinds comments other the in are in which But guidepost, are a we footprint geographies. margin a the business at is helped quite our geographies. XX% margins is target has growing and think of got fact Canada see a right. certainly as and we again in has and Paul's some that I have us sort in in we've they look pace, these of And might while strength operations to to and pressure. some business WAM and us has are source add offset than as the seen Asia I as – shift our Asia. compression there certain Scott, a for grow The U.S. of in Paul that tailwinds well Asia, there clearly our in obviously continue for what diversity business that passives rapid as WAM us seen And in our to ETFs higher we significantly in all

our and margins of that's the a franchise has guidepost that the done XX% long the going organization and by help factor led just driving us our job in the diversity our certainly The sustainable Paul the WAM of key profitability. phenomenal So is up run. make to again

Scott Chan

Thanks for color. additional the

Operator

ahead. from Mendonca Securities. is from The TD go you. Thank Please Mario next question

Mario Mendonca

will this Good I keep morning. to try quick.

being Japan Hong around number if does would but this and VHIS be look helpful the and main you've new to gains, made Asia, gains. new the I about you Going is value, the talk could understand geographies, a at I then mix lot bounce of business business bit. Kong comments understand new And and Asia and business around a not business fair – that is, What back three the to lower.

generate fair look gains in think the that on As gains it a to because way this and lower trying Hong business how Asia? business say it other this general I'm gains? basis new the generates business to new two a go-forward at might new Kong be higher would I the I'm asking rule,

Anil Wadhwani

Yes. question. thanks for the Mario,

each I think would be indication the the our earnings. that the of to contribution good of that geographies also make core

Kong in-force kind scale underscores Hong every we definition Kong and just the of to Hong So new the as gain of our by that the of line. well quarter that just as scale new business signifies is a Kong, put contributor of on Hong think, given in business significant I kind

the account and of to to markets has overall of and new measures, as business Roy's contribute of the Asia witnessed to back because Vietnam that a think diversification, that addition growing becomes market markets couple nature we kind important the such China we at I where line of have over gain also containment XXXX new an fair factor story. well. affected that, to what In one I as Asia years to was comment the contribution, up earnings is kind on we've like been really of guess during on seen us saw kind diversified of markets Mario, going kind clip last their on gain started the increase and pull going in and and business when of other our core specifically for

continues Hong the terms in core gain that and Other to in So of of we as business well continue be is kind pursue Asia becoming earnings. Kong terms as to bigger its said, of contribution player, as an I the but new largest, both to increasingly segment

Mario Mendonca

put Asia XX% business still on to contributor total. new business is final then, gains higher and to just the Hong year-over-year, down So in new plan Kong sales sharply a biggest this gains were the you in had if Asia

it just mix greatest number? have specifically effect Kong on is the will this business within Hong that of So the

Anil Wadhwani

Right.

I factors. think there were two

kind earlier, kind of that new does strongest create to XXXX. it as that product. explained of a take one VHIS two the back you has the a value, of trajectory, that, launched business we VHIS pointed quarter core while So are mix if rightly VHIS has And on strain witnessing VHIS significantly earnings contributed strain healthy of of XXXX, quarter our And for was business to consequence And Mario, over was a new second, lower business. a quarter I you you of past as that period was quarter quarters. as the have that Hong three in volumes out, new time, the in I that VHIS as the penetrated we was the were very in calibrated three over saw of to Kong. of really XXXX

lesser of product XXXX. So three lack strain it the new we business that in of was mixture a of quarter or – with the combined of mix, witnessed

Philip Witherington

the also contributed earnings significantly quarter. Mario, management strong Asia, we saw board, focus expense certainly a and on across to also core our the which in in

Mario Mendonca

Can was at million. just ask Okay. about I quarter final then, $XXX way this one

$XXX last one forward, reasonable $XXX of the the quarters, million about at million? couple look more you it seems a was million. going or Which If $XXX

Anil Wadhwani

Yes.

with kind COVID need Asia. I it fact you the the that backdrop take many $XXX on million, think in witnessing to in the our we markets were of of

So much the peak. its containment measures at pretty were

measures what up containment business were quarter-on-quarter. we seen Quarter-on-quarter, the a has new volumes sales As by resurgence receded, have is of XX%.

to comparison situation, fluid. is So a Mario, to quite because it hard make, unfortunately, the continues be

we of better, side saw – got certain COVID of onset the So third we also what in Hong is while wave wave third witnessed that in quarter on the Kong. markets one three

So me pretty point said, much matrix, the three for of of well bit going as did witnessed rebound earnings. value see volumes, challenge predict to would business as two a of a for it our But becomes value as on in all what over as strong I quarter kind gain new a core very be as forward. to kind quarter was we

Mario Mendonca

it. for your Thanks Appreciate help.

Operator

further are to this questions over at the like Ms. There you. Thank no time. to I'd turn back meeting O'Neill.

Adrienne O'Neill

operator. you, Thank

available be any after there questions. Have if great a is will follow-up morning. We the call,

Operator

for at participation. conference Thank now you. and thank Please your your disconnect you ended. lines The has time this

Manulife Financial (MFC) 12 Nov 202020 Q3 Earnings call transcript