Manulife has kept its net income above the $7 billion mark in 2022, a milestone it reached in 2021.
For 2022, the insurer reported net income of $7.3 billion, up 2.7 per cent or $189 million from the $7.1 billion reported in 2021.
In the fourth quarter of 2022, net income was $1.9 billion, down $200 million from Q4 2021.
Core earnings were $6.2 billion, down 7 per cent on a constant exchange rate basis from 2021. In the fourth quarter of 2022, core earnings were $1.7 billion, down 2 per cent on a constant exchange rate basis from Q4 2021.
In Canada, core earnings $1.36 billion in 2022, for an increase of 15 per cent or $180 million from 2021. Core results sagged in the other segments, with decreases of 12 per cent in the U.S. and Global Wealth & Asset Management and 2 per cent in Asia.
Investment-related experience plunged in 2022, to $817 million from $1.6 billion reported in 2021.
On Feb. 15, Roy Gori, Manulife’s President and CEO, commented that the insurer became the first global wealth and asset manager to acquire a 100 per cent stake in a fully operating public fund management company in mainland China, following the acquisition of the remaining 51 per cent of shares in Manulife Teda Fund Management (MTEDA) in November 2022.
In Canada and the United States
Manulife's results improved in two of its five business segments. In Canada, net income attributed to shareholders was $1.5 billion in 2022, an increase of 13 per cent or $176 million over 2021.
In the fourth quarter of 2022, net income attributed to shareholders in Canada was $320 million, down from $616 million reported in Q4 2021.
The U.S. saw phenomenal growth: Net income attributed to shareholders was $3.9 billion in 2022, compared with $2.1 billion in 2021. This gain of 90 per cent or $1.87 billion year-over-year was largely achieved in the first quarter of 2022.
Fourth quarter net income attributed to shareholders for the U.S. segment was $410 million, down 17 per cent or $84 million from Q4 2021.
Manulife's net income declined between 2021 and 2022:
- In Asia, at a rate of 27 per cent or $833 million, to $2.2 billion;
- In Global Wealth & Asset Management, by 6 per cent or $85 million, to $1.3 billion.
For the Corporate and Other segment, Manulife reported a net loss of $1.7 billion in 2022, versus a net loss of $792 million in 2021.
Premiums and deposits
Manulife's insurance premiums and deposits were $51.1 billion in 2022, down from $54.4 billion reported in 2021. The decrease amounts to 6 per cent or $3.3 billion.
In Canada, the insurer’s insurance premiums and deposits totalled $17.58 billion in 2022, compared with $17.45 billion in 2021. The increase is 0.7 per cent or $127 million.
In terms of the Canadian results, premiums and deposits by segment were:
- Individual insurance: $4.5 billion in 2022, compared with $4.15 billion in 2021, for an increase of 8 per cent or $345 million;
- Group insurance: $10.4 billion in 2022, versus $9.7 billion in 2021, up 7 per cent or $686 million;
- Annuities: $2.7 billion in 2022, compared with $3.6 billion, a decrease of 25 per cent or $904 million.
In addition, insurance premiums and deposits fell 8 per cent to $7.4 billion in the United States. In Asia, premiums and deposits were down 10 per cent to $26.1 billion.
In releasing the quarterly results, Manulife announced its intention to launch a Normal Course Issuer Bid to repurchase up to 3 per cent of its outstanding common shares. In 2022, Manulife had already repurchased 4.1 per cent of its outstanding common shares, Phil Witherington, Manulife’s Chief Financial Officer, notes.
“The macro environment is being shaped by three megatrends: the growth and emergence of the middle class in Asia, an aging global population, and the digitization of the consumer,” Roy Gori points out.