First Quarter

Report to

Shareholders

Three months ended

March 31, 2025

Manulife Financial Corporation

Manulife Financial Corporation (“Manulife” or the “Company”) reported its first quarter results for the

period ended March 31, 2025, delivering record insurance new business results1 and steady growth in

book value per common share.

Key highlights for the first quarter of 2025 (“1Q25”) include:

•Core earnings2 of $1.8 billion, a 1% decrease on a constant exchange rate basis3 compared with the first quarter of 2024

(“1Q24”)4

•Net income attributed to shareholders of $0.5 billion, a decrease of $0.4 billion compared with 1Q24

•Core EPS5 of $0.99, up 3%3 from 1Q244. EPS of $0.25, down 48%3 from 1Q24

•Core ROE5 of 15.6% and ROE of 3.9%

•LICAT ratio6 of 137%

•APE sales up 37%7, new business CSM up 31%3 and new business value (“NBV”) up 36%7 from 1Q244,8

•Global Wealth and Asset Management (“Global WAM”) net inflows7 of $0.5 billion, down from $6.7 billion in 1Q24

“We started the year with continued strong momentum, delivering record levels of insurance new business results this quarter.

We generated double-digit growth in new business value across all insurance segments, led by Asia with a 43% increase year

over year, demonstrating broad-based strength in our top-line results. Global WAM delivered 24% core earnings growth,

expanded core EBITDA margin5 by 290 basis points and generated positive net flows. We also completed our second long-

term care reinsurance transaction9, a testament to our focused execution and commitment in delivering sustainable value to

shareholders. Overall, I am proud of our performance this quarter against an increasingly volatile operating environment, and

our results reflect the strength of the franchise.

“The work we have done since 2017 has put the company in a position of great strength. We could not have transformed the

company in such a tangible way without the hard work, disciplined execution, and commitment of our more than 37,000

colleagues across the globe. I couldn’t be prouder of what we’ve accomplished and of the momentum we built, and I look

forward to watching Phil Witherington lead the company in writing its next chapter.”

— Roy Gori, Manulife President & Chief Executive Officer

“Our underlying business growth remained resilient, while our core EPS growth was dampened by strengthened provisions

related to expected credit loss and a provision for the California wildfires. Book value per common share continued to increase

steadily in 1Q25, growing 12% year over year. We maintained a strong LICAT ratio of 137%, and our financial leverage ratio5

was 23.9%, well within our medium-term target of 25%. Anchored by our strategic priorities and supported by our robust

balance sheet, we are well-positioned to navigate the current economic conditions and capitalize on growth opportunities.”

— Colin Simpson, Manulife Chief Financial Officer

Results at a Glance

Results by Segment

Strategic Highlights

through our new share buyback program which commenced in late February 2025.1

engagement.

Strong Global WAM and Asia results contributed to resilient earnings2

Core earnings of $1.8 billion in 1Q25, down 1% from 1Q24

Core earnings decreased modestly on a constant exchange rate basis, as continued business growth in Global WAM and Asia

was offset by strengthened provisions related to expected credit loss (“ECL”) of $45 million post-tax in 1Q253 , compared with

a net release of $8 million post-tax in 1Q243, and a provision for the California wildfires of $43 million post-tax in 1Q25.

•Asia core earnings were up 7%, reflecting continued business growth, improved impact of new business, and favourable

claims experience, partially offset by strengthened ECL provisions.

•Global WAM core earnings grew 24%, primarily driven by higher net fee income from favourable market impacts over the

past 12 months and positive net flows, higher performance fees, and continued expense discipline.

•Canada core earnings increased 3%, primarily driven by overall favourable net insurance experience, and business

growth in Group Insurance, partially offset by strengthened ECL provisions and lower Manulife Bank earnings.

•U.S. core earnings decreased 25%, reflecting lower investment spreads, strengthened ECL provisions, and the net

unfavourable impact of the annual review of actuarial methods and assumptions in 2024.

•Corporate and Other core earnings decreased $46 million, mainly related to a provision for the California wildfires in our

Property and Casualty reinsurance business.

Net Income attributed to shareholders of $0.5 billion in 1Q25, $0.4 billion lower compared with 1Q24

The $0.4 billion decrease in net income was driven by a larger net charge from market experience. The net charge from

market experience in 1Q25 was primarily related to a $0.7 billion realized loss due to the sale of debt instruments related to the

RGA U.S. Reinsurance Transaction, lower-than-expected returns on alternative long-duration assets, mainly related to real

estate and private equities, and lower-than-expected returns on public equities. The realized loss due to the sale of debt

instruments was offset by an associated change in Other Comprehensive Income, resulting in a neutral impact to book value.

Record levels across all three insurance new business metrics and positive net flows in Global WAM

Continued momentum in our 1Q25 top-line insurance results, as evidenced by the year-over-year growth of 37%, 31%

and 36% in APE sales, new business CSM and NBV, respectively

•Asia delivered another strong quarter with record levels of APE sales, new business CSM and NBV, with year-over-year

growth of 50%, 38% and 43%, respectively, reflecting higher sales volumes in Hong Kong, Asia Other1 and Japan. NBV

margin2 of 38.1% demonstrated resilience.

•Canada APE sales increased 9% bolstered by higher sales volumes across all business lines. Coupled with higher

margins in Group Insurance, NBV grew 15% compared with 1Q24. New business CSM also increased 30%, driven by

higher sales volumes in Individual Insurance and segregated fund products.

•In the U.S., APE sales and NBV increased 6% and 30%, respectively, reflecting continued demand from affluent

customers for accumulation insurance products. New business CSM decreased 3% primarily driven by product mix,

partially offset by higher sales volumes.

Global WAM net inflows of $0.5 billion in 1Q25, compared with net inflows of $6.7 billion in 1Q24

•Retirement net outflows of $2.6 billion in 1Q25 decreased from net inflows of $3.2 billion in 1Q24, reflecting higher

•Retail net inflows of $0.5 billion in 1Q25 decreased from net inflows of $1.7 billion in 1Q24, reflecting higher redemptions

due to lower investor demand amid market volatility. This was partially offset by higher money market fund sales and new

fund launches in mainland China, as well as higher net sales through our retail wealth platform in Canada.

•Institutional Asset Management net inflows of $2.6 billion in 1Q25 increased compared with net inflows of $1.8 billion in

1Q24, driven by lower redemptions in fixed income mandates.

Growth in new business continues to drive higher organic CSM and CSM balance

CSM3 was $22,296 million as at March 31, 2025

CSM increased $169 million compared with December 31, 2024. Organic CSM movement contributed $598 million of the

increase for the first quarter of 2025, representing an 11%2 growth on an annualized basis, primarily driven by the impact of

new business, interest accretion and net favourable insurance experience, partially offset by amortization recognized in core

earnings. Inorganic CSM movement was a decrease of $429 million for the same period, primarily driven by the unfavourable

impacts of equity market performance and the impact of the RGA U.S. Reinsurance Transaction, partially offset by the

favourable impacts of changes in foreign currency exchange rates. Post-tax CSM net of NCI4 was $18,524 million as at March

31, 2025.

MANAGEMENT’S DISCUSSION AND ANALYSIS

This Management’s Discussion and Analysis (“MD&A”) is current as of May 7, 2025, unless otherwise noted. This MD&A

should be read in conjunction with our unaudited Interim Consolidated Financial Statements for the three months ended March

31, 2025 and the MD&A and audited Consolidated Financial Statements contained in our 2024 Annual Report.

For further information relating to our risk management practices and risk factors affecting the Company, see “Risk

Management and Risk Factors” and “Critical Actuarial and Accounting Policies” in the MD&A in our 2024 Annual Report (“2024

MD&A”) and the “Risk Management” note to the Consolidated Financial Statements in our most recent annual and interim

reports.

In this MD&A, the terms “Company”, “Manulife”, “we” and “our” mean Manulife Financial Corporation (“MFC”) and its

subsidiaries. All amounts are reported in Canadian dollars, unless otherwise indicated. Any information contained in, or

otherwise accessible through, websites mentioned in this MD&A does not form a part of this document.

CONTENTS

A.TOTAL COMPANY PERFORMANCE

1.Profitability

2.Business Performance

3.Financial Strength

4.Assets under Management and Administration

5.Impact of Foreign Currency Exchange Rates

6.Business Highlights

7.Global Minimum Taxes (“GMT”)

B.PERFORMANCE BY SEGMENT

1.Asia

2.Canada

3.U.S.

4.Global Wealth and Asset Management

5.Corporate and Other

C.RISK MANAGEMENT AND RISK

FACTORS UPDATE

1.Variable Annuity and Segregated Fund Guarantees

2.Caution Related to Sensitivities

3.Publicly Traded Equity Performance Risk Sensitivities and

Exposure Measures

4.Interest Rate and Spread Risk Sensitivities and Exposure

Measures

5.Alternative Long-duration Asset Performance Risk

Sensitivities and Exposure Measures

6.Risk Management and Risk Factors Update

D.CRITICAL ACTUARIAL AND

ACCOUNTING POLICIES

1.Critical Actuarial and Accounting Policies

2.Sensitivity to Changes in Assumptions

3.Accounting and Reporting Changes

E.OTHER

1.Outstanding Common Shares – Selected Information

2.Legal and Regulatory Proceedings

3.Non-GAAP and Other Financial Measures

4.Caution Regarding Forward-looking Statements

5.Quarterly Financial Information

6.Revenue

7.Other

ATOTAL COMPANY PERFORMANCE

A1Profitability

(1)This item is a non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below for more information.

(2)1Q24 quarterly core earnings, core EPS and core ROE have been updated to align with the presentation of Global Minimum Taxes (“GMT”) in 2025. See

(3)This item is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” below for more information.

Manulife’s net income attributed to shareholders was $485 million in the first quarter of 2025 (“1Q25”) compared with $866

million in the first quarter of 2024 (“1Q24”). Net income attributed to shareholders is comprised of core earnings (consisting of

items we believe reflect the underlying earnings capacity of the business), which amounted to $1,767 million in 1Q25

compared with $1,710 million in 1Q24, and items excluded from core earnings, which amounted to a net charge of $1,282

million in 1Q25 compared with a net charge of $844 million in 1Q241. The effective tax rate on net income (loss) attributed to

shareholders was 9% in 1Q25 compared with 22% in 1Q24 due to differences in the jurisdictional mix of earnings.

Net income attributed to shareholders in 1Q25 decreased $381 million compared with 1Q24 primarily reflecting a larger net

charge from market experience partially offset by higher core earnings. The net charge from market experience in 1Q25 of

$1,332 million was driven by realized losses on debt instruments primarily related to the RGA U.S. Reinsurance Transaction2,

lower-than-expected returns on alternative long-duration assets (“ALDA”) mainly related to real estate and private equity,

lower-than-expected returns on public equities and a charge from derivatives and hedge accounting ineffectiveness.

The RGA U.S. Reinsurance Transaction resulted in a net loss attributed to shareholders of $735 million in 1Q25 and the GA

Reinsurance Transaction2 resulted in a net loss attributed to shareholders of $767 million in 1Q24. The net loss in 1Q25 and

1Q24 was primarily related to market experience from the sale of fair value through OCI (“FVOCI”) debt instruments. There is

an offsetting change in Other Comprehensive Income (“OCI”) attributed to shareholders resulting in a neutral impact to book

value.

Core earnings increased $57 million compared with 1Q24. On a constant exchange rate basis3 core earnings were 1% lower

than 1Q24. The decline on a constant exchange rate basis was driven by a net increase in the provision for expected credit

loss (“ECL”) of $45 million post-tax in 1Q254 compared with a release of $8 million post-tax in 1Q244, a charge in 1Q25 for

estimated losses from the recent California wildfires in our Property and Casualty (“P&C”) Reinsurance business of $43 million

post-tax and lower expected investment earnings. The reduction in core earnings was partially offset by higher core earnings in

Global Wealth and Asset Management (“Global WAM”), largely reflecting an increase in net fee income from higher average

assets under management and administration (“average AUMA”)5 from the favourable impact of markets over the last 12

months and positive net flows5, higher performance fees and disciplined expense management, partially offset by the non-

recurrence of prior year tax benefits. In addition, growth in our insurance business also contributed to higher core earnings.

Overall claims and lapse experience was favourable. The impact of updates to actuarial methods and assumptions was neutral

in the quarter. In addition, the RGA U.S. Reinsurance Transaction reduced core earnings by $3 million in 1Q25 compared with

1Q24, the RGA Canadian Reinsurance Transaction2 reduced core earnings by $4 million in 1Q25 compared with 1Q24 and the

GA Reinsurance Transaction reduced core earnings by $5 million in 1Q25 compared with 1Q24.

Core earnings by segment is presented in the table below.

(1)2024 quarterly core earnings by segment has been updated to align with the presentation of GMT in 2025. See section A7 “Global Minimum Taxes (GMT)” for

The table below presents net income attributed to shareholders consisting of core earnings and items excluded from core

earnings.

(1)Market experience was a net charge of $1,332 million in 1Q25, driven by net realized losses from debt instruments, of which $732 million was related to the

transfer of assets with respect to the RGA U.S. Reinsurance Transaction, which are classified as FVOCI, lower-than-expected returns on ALDA mainly related

to real estate and private equity, lower-than-expected returns from public equity and a charge from derivatives and hedge accounting ineffectiveness. The net

charge was partially offset by a gain from changes in foreign exchange rates. Market experience was a net charge of $779 million in 1Q24, primarily driven by

net realized losses from debt instruments of which $568 million was related to the transfer of assets with respect to the GA Reinsurance Transaction, which are

classified as FVOCI, lower-than-expected returns on ALDA mainly related to real estate, a charge from derivatives and hedge accounting ineffectiveness and a

charge from unfavorable foreign exchange impacts. These were partially offset by a gain from higher-than-expected returns on public equity.

(2)The 1Q25 net gain of $50 million is related to tax-related benefits and true-ups. The 1Q24 net charge of $65 million mainly included a charge of $70 million

resulting from the GA Reinsurance Transaction in the U.S. and Japan, and a charge of $48 million related to U.S. withholding taxes on anticipated remittances

associated with the reinsurance transaction discussed above. This was partially offset by $44 million representing an adjustment to items excluded from core

earnings to offset a charge for 1Q24 GMT included in core earnings. See section A7 “Global Minimum Taxes (GMT)” for more information.

Net income attributed to shareholders by segment is presented in the following table.

Expense efficiency ratio

The expense efficiency ratio is a financial measure which we use to measure progress on our strategic priority of expense

efficiency and reflects expenses that flow directly through core earnings (“core expenses”). Core expenses include core

general expenses, directly attributable maintenance expenses and directly attributable acquisition expenses for products

measured using the premium allocation approach (“PAA”) and for other products without a CSM. Core expenses exclude

certain expenses directly attributable to acquiring new business that are capitalized into the CSM instead of flowing directly

through core earnings.

Our focus on expense efficiency has enabled us to drive the benefits of scale across our businesses. We believe there are

further opportunities to leverage our global scale and operating environment, streamline processes and further digitize our

business. As a result, in 2024 we updated our medium-term target for the expense efficiency ratio from less than 50% to less

than 45%.

The expense efficiency ratio was 45.9% in 1Q25, compared with 45.1% in 1Q24. The 0.8 percentage point increase in the

ratio compared with 1Q24 reflects a 2% decrease in pre-tax core earnings1 and a 2% increase in core expenses. The increase

in core expenses was driven by higher workforce-related costs, and the inclusion of ongoing operating expenses related to our

acquisition of CQS in Global WAM.

As noted above, general expenses are a component of core expenses. Total 1Q25 general expenses increased 9% on an

actual exchange rate basis and 5% on a constant exchange rate basis compared with 1Q24, driven by the items noted above

related to the overall increase in core expenses, as well as a reallocation of amounts within core expenses – from directly

attributable maintenance to general expenses. General expenses excluded from core earnings were nil in 1Q25 and not

material in 1Q24.

A2Business Performance

(1)For more information on this metric, see “Non-GAAP and Other Financial Measures” below.

(2)2024 quarterly new business value and post-tax CSM net of NCI have been updated to include the impact of GMT, consistent with 2025. See section A7 “Global

(3)New business CSM is net of NCI.

(4)This item is a non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below for more information.

(5)See section A4 below for more information.

Annualized premium equivalent (“APE”) sales were $2.7 billion in 1Q25, an increase of 37%1 compared with 1Q24, new

business value (“NBV”) was $907 million in 1Q25, an increase of 36%1 compared with 1Q24 and new business CSM was

$907 million, an increase of 31% compared with 1Q24. New business results by segment were as follows:

•Asia delivered another strong quarter with record levels of APE sales, NBV and new business CSM, with growth in 1Q25

of 50%, 43%, and 38%, respectively, compared with 1Q24, reflecting higher sales volumes in Hong Kong, Asia Other2 and

Japan. NBV margin3 of 38.1% demonstrated resilience.

•Canada APE sales increased 9% in 1Q25 compared with 1Q24, with higher sales volumes across all business lines.

Coupled with higher margins in Group Insurance, 1Q25 NBV grew 15% compared with 1Q24. New business CSM also

increased 30% in 1Q25 compared with 1Q24, driven by higher sales volumes in Individual Insurance and segregated fund

products.

•In the U.S., APE sales and NBV increased 6% and 30% in 1Q25 compared with 1Q24, respectively, reflecting continued

demand from affluent customers for accumulation insurance products. New business CSM decreased 3% in 1Q25

compared with 1Q24 primarily driven by product mix, partially offset by higher sales volumes.

CSM net of NCI was $22,296 million as at March 31, 2025, an increase of $169 million compared with December 31, 2024.

Organic CSM movement was an increase of $598 million in 1Q25, representing an 11% growth on an annualized basis1,

primarily driven by the impact of new business, interest accretion and net favourable insurance experience, partially offset by

amortization recognized in core earnings. Inorganic CSM movement was a decrease of $429 million in 1Q25, primarily driven

by the unfavourable impacts of equity market performance and the impact of the RGA U.S. Reinsurance Transaction, partially

offset by the favourable impacts of changes in foreign currency exchange rates.

Global WAM reported net inflows were $0.5 billion in 1Q25 compared with net inflows of $6.7 billion in 1Q24:

•Retirement net outflows of $2.6 billion in 1Q25 decreased from net inflows of $3.2 billion in 1Q24, reflecting higher

•Retail net inflows of $0.5 billion in 1Q25 decreased compared with net inflows of $1.7 billion in 1Q24, driven by higher

•Institutional Asset Management net inflows of $2.6 billion in 1Q25 increased from net inflows of $1.8 billion in 1Q24, driven

A3Financial Strength 

(1)This item is disclosed under the Office of the Superintendent of Financial Institutions (“OSFI”) Life Insurance Capital Adequacy Test Public Disclosure

Requirements guideline.

(2)This item is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” below for more information.

(3)2024 financial leverage ratio, consolidated capital and adjusted book value per common share have been updated to include the impact of GMT, consistent with

2025. See section A7 “Global Minimum Taxes (GMT)” for more information.

(4)This item is a capital management measure. For more information on this metric, see “Non-GAAP and Other Financial Measures” below.

The Life Insurance Capital Adequacy Test (“LICAT”) ratio for The Manufacturers Life Insurance Company (“MLI”) as at

March 31, 2025 was 137% compared with 137% as at December 31, 2024. The positive impact of the RGA U.S. Reinsurance

Transaction, as well as earnings and the CSM, were offset by the impact of the new segregated fund capital requirements,

effective January 1, 2025, as well as the common share buybacks.

MFC’s LICAT ratio was 126% as at March 31, 2025 compared with 124% as at December 31, 2024, with the increase driven

by similar factors that impacted the movement in MLI’s LICAT ratio. The difference between the MLI and MFC ratios as at

March 31, 2025 was largely due to the $6.6 billion of MFC senior debt outstanding that does not qualify as available capital at

the MFC level but, based on the form it was down-streamed, qualifies as regulatory capital for MLI.

MFC’s financial leverage ratio as at March 31, 2025 was 23.9%, a decrease of 0.1 percentage points from 24.0% as at

December 31, 2024. The decrease was driven by an increase in total equity and higher post-tax CSM4. The increase in total

equity was mainly from total comprehensive income, partially offset by dividends and common share buybacks.

MFC’s consolidated capital was $80.4 billion as at March 31, 2025, an increase of $0.5 billion compared with $79.9 billion as

at December 31, 2024. The increase was primarily driven by an increase in total equity and higher post-tax CSM. The increase

in total equity was for the same reasons as noted above in the financial leverage ratio. 

Cash and cash equivalents and marketable securities1 was $265.8 billion as at March 31, 2025 compared with $263.3

billion as at December 31, 2024. The increase of $2.5 billion was primarily driven by the higher market value of debt

instruments due to lower interest rates and favourable changes in foreign exchange rates.

Book value per common share as at March 31, 2025 was $25.88, a 1% increase compared with $25.63 as at December 31,

2024. The number of common shares outstanding was 1,718 million as at March 31, 2025, a net decrease of 11 million shares

from 1,729 million as at December 31, 2024, primarily driven by common share buybacks. On February 19, 2025, we

announced a new Normal Course Issuer Bid to purchase for cancellation up to 51.5 million shares, representing approximately

3% of outstanding common shares.

Adjusted book value per common share as at March 31, 2025 was $36.66, a 1% increase compared with $36.25 as at

December 31, 2024 driven by an increase in the adjusted book value2 and a lower number of common shares outstanding.

Adjusted book value increased $0.3 billion due to growth in total common shareholders’ equity and an increase in post-tax

CSM, net of NCI. The increase in common shareholders’ equity reflects the impact of growth in total comprehensive income,

partially offset by dividends and common share buybacks.

A4Assets under Management and Administration (“AUMA”) 

AUMA as at March 31, 2025 was $1.6 trillion, a decrease of 1% compared with December 31, 2024, primarily due to the

unfavourable impact of equity markets and the transfer of invested assets related to the RGA U.S. Reinsurance Transaction,

partially offset by the impact of interest rates on debt securities and net inflows. Total invested assets increased 1% on an

actual exchange rate basis, primarily due to the impact of interest rates on debt securities partially offset by the RGA U.S.

Reinsurance Transaction. Segregated funds net assets decreased 2% on an actual exchange rate basis, primarily due to the

impact of equity markets.

A5Impact of Foreign Currency Exchange Rates

Changes in foreign currency exchange rates from 1Q24 to 1Q25 increased core earnings by $78 million in 1Q25, primarily due

to a weaker Canadian dollar relative to the U.S. dollar. The impact of foreign currency exchange rates on items excluded from

core earnings does not provide relevant information given the nature of those items.

A6Business Highlights 

through our new share buyback program which commenced in late February 2025.3

engagement.

A7Global Minimum Taxes (“GMT”)

On June 20, 2024, the Canadian government passed the Global Minimum Tax Act into law. Canada’s GMT is applied

retroactively to fiscal periods commencing on or after December 31, 2023.

Impact of GMT on net income attributed to shareholders and core earnings

As additional local jurisdictions are expected to enact the GMT in 2025, GMT is now recognized in net income in the reporting

segments whose earnings are subject to this tax. GMT is reported in both core earnings and items excluded from core

earnings in line with our definition of core earnings in section E3 Non-GAAP and Other Financial Measures below. As items

excluded from core earnings are presented on a post-tax basis, each line will now include the appropriate impact of GMT.

In 2024, the impact of GMT was recognized in the Corporate and Other segment. To improve the comparability of core

earnings between 2025 and 2024, we have updated 2024 quarterly core earnings to reallocate GMT from the Corporate and

Other segment to the segment whose core earnings are subject to this tax. This update includes a reallocation of 1Q24 GMT,

previously reported in 2Q24 items excluded from core earnings, to 1Q24 core earnings. There is no impact to our 2024

quarterly net income attributed to shareholders by segment or reporting period. The impact of the reallocation of GMT between

segments and by quarter was offset by an equal amount in items excluded from core earnings in the segments. This offset is

reported in the reinsurance transaction, tax-related items and other line. In total, with these updates, we continue to record

total GMT expense of $231 million in 2024, however $208 million is now reported in core earnings and $23 million is now

reported in items excluded from core earnings. 

As a result of the update to core earnings, we have also updated the following 2024 non-GAAP measures:

•core ROE

•core EPS

•core earnings available to common shareholders

•common share dividend core payout ratio

•highest potential business core earnings contribution

Impact of GMT on other financial measures

GMT also impacts additional metrics reported on a post-tax basis. In 2025, we have included the impact of GMT in these

measures and we have updated 2024 comparatives to include the impact of GMT.

The following non-GAAP financial measures and non-GAAP ratios have been updated:

•Post-tax CSM and post-tax CSM net of NCI

•Adjusted book value and Adjusted book value per common share

•Financial leverage ratio

The following other financial measures have been updated: 

•consolidated capital

•NBV and NBV margin

BPERFORMANCE BY SEGMENT

B1Asia

(1)See “Non-GAAP and Other Financial Measures” below for a reconciliation of quarterly core earnings to net income (loss) attributed to shareholders.

(2)This item is a non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below for more information.

Asia’s net income attributed to shareholders was $624 million in 1Q25 compared with $363 million in 1Q24. Net income

attributed to shareholders is comprised of core earnings, which were $705 million in 1Q25 compared with $626 million in

1Q24, and items excluded from core earnings, which amounted to a net charge of $81 million in 1Q25 compared with a net

charge of $263 million in 1Q24. See section E3 “Non-GAAP and Other Financial Measures” below, for a reconciliation of

the items excluded from core earnings. The change in core earnings expressed in Canadian dollars was due to the factors

described below. In addition, the change in core earnings reflected a net $37 million favourable impact due to changes in

various foreign currency exchange rates versus the Canadian dollar.

Expressed in U.S. dollars, the presentation currency of the segment, net income attributed to shareholders was US$435

million in 1Q25 compared with US$270 million in 1Q24. Core earnings were US$492 million in 1Q25 compared with US$465

million in 1Q24, and items excluded from core earnings were a net charge of US$57 million in 1Q25 compared with a net

charge of US$195 million in 1Q24.

Core earnings in 1Q25 increased 7% compared with 1Q24, driven by an increase in expected earnings on insurance

contracts, improved impact of new business and favourable claims experience, partially offset by an increase in the ECL

provision in 1Q25 compared with a release in 1Q24. The increase in expected earnings on insurance contracts primarily

reflected business growth. Investment income on allocated capital also increased core earnings by US$14 million on a pre-tax

basis compared with 1Q24. In addition, the GA Reinsurance Transaction reduced core earnings by US$6 million in 1Q25

APE sales were US$1,412 million in 1Q25, an increase of 50% compared with 1Q24, driven by growth in Hong Kong, Asia

Other and Japan. NBV of US$457 million in 1Q25 increased 43% compared with 1Q24, driven by higher sales volumes,

partially offset by business mix. New business value margin (“NBV margin”) was 38.1% in 1Q25 compared with 41.7% in

1Q24. New business CSM of US$498 million in 1Q25 increased 38% compared with 1Q24, due to higher sales volumes,

partially offset by business mix.

•Hong Kong APE sales of US$517 million in 1Q25 increased 172% compared with 1Q24, reflecting higher sales across all

channels driven by strong growth in sales of savings, health and protection products to both mainland Chinese visitor and

domestic customers. Hong Kong NBV of US$258 million in 1Q25 increased 113% compared with 1Q24 due to higher

sales volumes, partially offset by product mix. The NBV margin of 49.9% in 1Q25 decreased 13.9 percentage points

compared with 1Q24. Hong Kong new business CSM of US$220 million in 1Q25 increased 77% compared with 1Q24 due

to higher sales volumes, partially offset by product mix.

•Japan APE sales of US$108 million in 1Q25 increased 45% compared with 1Q24 due to higher sales in the broker and

bancassurance channels, driven by strong growth in sales of non-participating savings products. Japan NBV of US$33

million in 1Q25 decreased 2% compared with 1Q24, driven by product mix, partially offset by higher sales volumes. The

NBV margin of 30.9% in 1Q25 decreased 14.6 percentage points compared with 1Q24. Japan new business CSM of

US$57 million in 1Q25 increased 61% compared with 1Q24 primarily driven by higher sales volumes.

•Asia Other APE sales of US$787 million in 1Q25 increased 16% compared with 1Q24, driven by higher sales in mainland

China, primarily in the agency and bancassurance channels, and across all channels in Singapore, partially offset by

lower sales in Vietnam. Asia Other NBV of US$166 million in 1Q25 was consistent with 1Q24 as higher sales volumes

were offset by product mix. The NBV margin of 28.9% in 1Q25 decreased 4.0 percentage points compared with 1Q24.

Asia Other new business CSM of US$221 million in 1Q25 increased 9% compared with 1Q24, driven by higher sales

volumes, partially offset by product mix.

CSM net of NCI was US$11,051 million as at March 31, 2025, an increase of US$244 million compared with December 31,

2024. Organic CSM movement was an increase of US$331 million in 1Q25, driven by the impact of new business, interest

accretion and a net increase in insurance experience, partially offset by amortization recognized in core earnings this quarter.

Inorganic CSM movement was a decrease of US$87 million in 1Q25, largely driven by the impact of equity market

performance, partially offset by weakening of the U.S. dollar against most Asian currencies.

Assets under management of US$139.2 billion as at March 31, 2025, an increase of 2% compared with December 31, 2024.

The impact of lower interest rates was partially offset by the unfavourable equity market performance on invested assets and

segregated funds net assets.

•Renewed our bancassurance partnership in the Philippines with China Banking Corporation (“Chinabank”), extending our

exclusive partnership for another 15 years. This strategic partnership, which started in 2007, solidifies the two

Filipino families;

•Further strengthened our GenAI capabilities to enhance sales support and improve customer experience. We rolled out

our AI Assistant solution to support agents in Singapore and to help our teams better serve brokers in Japan, enabling

faster access to product information, reducing administrative workload and allowing distributors to focus more on

customer engagement;

•Introduced our Shared Values proposition by offering a first-of-its-kind combination of high-net-worth life insurance with

comprehensive health benefits in our International High Net Worth business. The proposition provides access to customer

benefits including a whole-body MRI scan, medical second opinion concierge services and critical illness benefits; and

•Continued to deliver on our commitment to health in Hong Kong by expanding our cancer diagnosis second medical

opinion service, with customers now being able to access the service at three of the most prestigious hospitals in Hong

Kong. We also launched a new cross-border Cancer Drug Support Service, in collaboration with a leading health

insurance service provider and an esteemed hospital in the China Greater Bay Area, to improve access to cost-effective

cancer treatments in mainland China. 

B2Canada

(1)See “Non-GAAP and Other Financial Measures” below for a reconciliation of quarterly core earnings to net income (loss) attributed to shareholders.

(2)This item is a non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below for more information.

Canada’s net income attributed to shareholders was $222 million in 1Q25 compared with $273 million in 1Q24. Net income

attributed to shareholders is comprised of core earnings, which were $374 million in 1Q25 compared with $364 million in

1Q24, and items excluded from core earnings, which amounted to a net charge of $152 million in 1Q25 compared with a net

charge of $91 million in 1Q24. See section E3 “Non-GAAP and Other Financial Measures” below, for a reconciliation of

the items excluded from core earnings.

Core earnings in 1Q25 increased $10 million or 3% compared with 1Q24, reflecting overall favourable net insurance

experience, and business growth in Group Insurance, partially offset by an increase in the provision for ECL and lower

Manulife Bank earnings. In addition, the RGA Canadian Reinsurance Transaction reduced core earnings by $4 million in 1Q25

compared with 1Q24. Investment income on allocated capital also reduced core earnings by $7 million on a pre-tax basis

APE sales of $491 million in 1Q25 increased $41 million, or 9%, compared with 1Q24.

•Individual Insurance APE sales of $130 million in 1Q25 increased $21 million, or 19%, compared with 1Q24, primarily due

to higher participating life insurance sales.

•Group Insurance APE sales of $285 million in 1Q25 increased $12 million or 4% compared with 1Q24, driven by higher

large-case sales.

•Annuities APE sales of $76 million in 1Q25 increased $8 million, or 12%, compared with 1Q24, primarily due to higher

segregated fund sales.

CSM was $4,052 million as at March 31, 2025, a decrease of $57 million compared with December 31, 2024. Organic CSM

movement was an increase of $20 million in 1Q25, driven by the impact of new business and interest accretion, partially offset

by amortization recognized in core earnings. Inorganic CSM movement was a decrease of $77 million in 1Q25, primarily

related to the unfavourable impacts of interest rates and equity markets.

Manulife Bank average net lending assets were $26.9 billion for the quarter ending March 31, 2025, up $0.4 billion, or 1%,

compared with average net lending assets for the quarter ending December 31, 2024, driven by business growth.

Assets under management were $148.7 billion as at March 31, 2025, an increase of $3 million, or 2%, compared with

December 31, 2024, due to higher total invested assets from business growth, partially offset by the net impact from interest

rates and equity markets.

•Advanced our digital capabilities by introducing an innovative GenAI tool within our Individual Insurance business. This

tool enables our internal sales team to automatically generate personalized communications to advisors by analyzing

historical data and identifying available opportunities. As a result, interactions between wholesalers and advisors have

improved, contributing to an 11% year-over-year increase in the number of advisors placing business with us in 1Q25; and

•Further enhanced the Manulife Vitality program with offerings to assist members in meeting their health and wellness

goals, including additional resources and incentives for managing and preventing diabetes, the extension of travel rewards

to all members, and the addition of ŌURA as our newest Vitality rewards partner.

B3U.S.

(1)See “Non-GAAP and Other Financial Measures” below for a reconciliation of quarterly core earnings to net income (loss) attributed to shareholders.

U.S.’s net loss attributed to shareholders was $569 million in 1Q25 compared with a net loss attributed to shareholders of

$108 million in 1Q24. Net income (loss) attributed to shareholders is comprised of core earnings, which were $361 million in

1Q25 compared with $452 million in 1Q24, and items excluded from core earnings, which amounted to a net charge of $930

million in 1Q25 compared with a net charge of $560 million in 1Q24. See section E3 “Non-GAAP and Other Financial

Measures” below, for a reconciliation of quarterly core earnings to net income (loss) attributed to shareholders and section A1

“Profitability” above, for explanations of the items excluded from core earnings. The change in core earnings expressed in

Canadian dollars was due to the factors described below. In addition, the change in core earnings reflected a $22 million

favourable impact from the strengthening of the U.S. dollar compared with the Canadian dollar.

Expressed in U.S. dollars, the functional currency of the segment, the net loss attributed to shareholders was US$397 million

in 1Q25 compared with a net loss attributed to shareholders of US$80 million in 1Q24. Core earnings were US$251 million in

1Q25 compared with US$335 million in 1Q24 and items excluded from core earnings were a net charge of US$648 million in

1Q25 compared with a net charge of US$415 million in 1Q24.

Core earnings in 1Q25 decreased US$84 million or 25% compared with 1Q24 reflecting unfavourable net claims experience,

lower expected investment earnings, an increase in the ECL provision in 1Q25 compared with a release in 1Q24, and the net

impact of the annual review of actuarial methods and assumptions in the second half of 2024, which impacted expected

investment earnings and insurance service result. This was partially offset by favourable lapse experience. Investment income

on allocated capital also reduced core earnings by US$14 million on a pre-tax basis compared with 1Q24. The RGA U.S.

Reinsurance Transaction reduced core earnings by US$1 million in 1Q25 compared with 1Q24, attributable to the impact on

expected earnings on insurance contracts, expected investment earnings and the change in ECL. In addition, the GA

Reinsurance Transaction increased core earnings by US$2 million in 1Q25 compared with 1Q24.

APE sales of US$120 million in 1Q25 increased 6% compared with 1Q24, reflecting continued demand from affluent

customers for accumulation insurance products.

CSM was US$1,618 million as at March 31, 2025, a decrease of US$97 million compared with December 31, 2024. Organic

CSM movement was an increase of US$70 million in 1Q25, driven by the impact of new business, net favourable insurance

experience and interest accretion, partially offset by amortization recognized in core earnings. The net favourable insurance

experience was mainly due to claims and lapse experience in long-term care. Inorganic CSM movement was a decrease of

US$167 million in 1Q25 due to the RGA U.S. Reinsurance Transaction and unfavourable market impacts from equity market

experience. 

Assets under management were US$139.6 billion as at March 31, 2025, a decrease of 6% or US$9.4 billion compared with

December 31, 2024. The decrease was largely due to the transfer of invested assets related to the RGA U.S. Reinsurance

Transaction, as well as the net impact from interest rates and equity markets on both total invested assets and segregated

funds net assets.

•Furthered our mission to help our customers live longer, healthier, better lives by becoming the first life insurer to offer

eligible John Hancock Vitality members access to Function Health’s technology and screening tools. Function Health

includes access to over 100 lab tests – spanning heart, hormone, thyroid, and autoimmunity, among others. This addition

builds on our growing portfolio of offerings that help our customers take proactive steps to better understand their health;

and

•Continued enhancing the appeal of our differentiated suite of solutions to better address the evolving needs of our

customers by:

◦introducing a new hybrid indexed universal life insurance solution offering more flexible living benefits and a

streamlined digital application process;

◦launching a term life insurance solution with a new fully digital policy delivery experience and improved pricing; and

◦improving fund selection and offering index loans for our new variable universal life insurance solution.

B4Global Wealth and Asset Management

(1)See “Non-GAAP and Other Financial Measures” below for a reconciliation of quarterly core earnings to net income (loss) attributed to shareholders.

(2)This item is a non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below for more information.

(3)This item is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” below for more information.

Global WAM’s net income attributed to shareholders was $443 million in 1Q25 compared with $365 million in 1Q24. Net

income attributed to shareholders is comprised of core earnings, which were $454 million in 1Q25 compared with $349 million

in 1Q24, and items excluded from core earnings, which amounted to a net charge of $11 million in 1Q25 compared with a net

gain of $16 million in 1Q24. See section E3 “Non-GAAP and Other Financial Measures” below, for a reconciliation of quarterly

core earnings to net income (loss) attributed to shareholders and section A1 “Profitability” above, for explanations of the items

Core earnings increased $105 million, or 24%, compared with 1Q24, driven by an increase in net fee income from higher

average AUMA resulting from the favourable impact of markets over the past 12 months and net inflows, higher performance

fees as well as disciplined expense management. This is partially offset by the non-recurrence of prior year tax benefits.

Core EBITDA was $608 million in 1Q25, an increase of 22% compared with 1Q24, and core EBITDA margin was 28.4% in

1Q25, an increase of 290 basis points compared with 1Q24, both driven by similar factors as mentioned above. See section

E3 “Non-GAAP and Other Financial Measures” below, for more information on core EBITDA and core EBITDA margin.

Net inflows were $0.5 billion in 1Q25 compared with net inflows of $6.7 billion in 1Q24. By business line, the results were:

•Retirement net outflows of $2.6 billion in 1Q25 decreased from net inflows of $3.2 billion in 1Q24, reflecting higher

•Retail net inflows of $0.5 billion in 1Q25 decreased compared with net inflows of $1.7 billion in 1Q24, driven by higher

•Institutional Asset Management net inflows of $2.6 billion in 1Q25 increased from net inflows of $1.8 billion in 1Q24, driven

Assets under management and administration of $1,026.3 billion as at March 31, 2025 decreased 1% compared with

December 31, 2024. The decrease was primarily driven by weaker U.S. equity markets, partially offset by net inflows. As at

March 31, 2025, Global WAM also managed $225.1 billion in assets for the Company’s other reporting segments. Including

those assets, AUMA managed by Global WAM were $1,251.4 billion compared with $1,257.8 billion as at December 31, 2024.

Segregated funds net assets were $287.6 billion as at March 31, 2025, a decrease of 1% compared with December 31, 2024

on an actual exchange rate basis, driven by weaker U.S. equity markets.

Business highlights – In 1Q25, we launched:

•FutureStepTM, a new fully digital retirement plan offering for small businesses in the U.S., in collaboration with Vestwell, a

financial technology company. This complements our existing plan offerings and enhances our market presence. It marks

a significant step in transforming our retirement business to become the partner of choice for distributors, third-party

administrators, and plan sponsors; and

•The John Hancock CQS Asset Backed Securities (“ABS”) Fund in the U.S., our second retail fund leveraging Manulife |

CQS Investment Management expertise. This fund offers exposure to the global ABS market, aiming to generate returns

through current income and capital appreciation with a diversified, actively managed portfolio.

B5Corporate and Other

(1)See “Non-GAAP and Other Financial Measures” below for a reconciliation of quarterly core earnings to net income (loss) attributed to shareholders.

Corporate and Other is comprised of investment performance on assets backing capital, net of amounts allocated to

operating segments; financing costs; costs incurred by the corporate office related to shareholder activities (not allocated to

the operating segments); our Property and Casualty (“P&C”) Reinsurance business; as well as our run-off reinsurance

operation including variable annuities and accident and health. In addition, for segment reporting purposes, consolidations and

eliminations of transactions between operating segments are also included in Corporate and Other earnings.

Corporate and Other reported a net loss attributed to shareholders of $235 million in 1Q25 compared with a net loss attributed

to shareholders of $27 million in 1Q24. Net income (loss) attributed to shareholders is comprised of core earnings, which was

a core loss of $127 million in 1Q25 compared with a core loss of $81 million in 1Q24, and the items excluded from core

earnings (loss) which amounted to a net charge of $108 million in 1Q25 compared with a net gain of $54 million in 1Q24. See

section E3 “Non-GAAP and Other Financial Measures” below, for a reconciliation of quarterly core earnings to net income

(loss) attributed to shareholders and section A1 “Profitability” above, for explanations of the items excluded from core earnings.

The $46 million decline in core earnings was primarily due to a charge for estimated losses from the recent California wildfires

in our P&C Reinsurance business of $43 million post-tax and overall higher interest on capital allocated to operating segments.

CRISK MANAGEMENT AND RISK FACTORS UPDATE

This section provides an update to our risk management practices and risk factors outlined in the 2024 MD&A. Text and tables

in this section of the MD&A represent our disclosure on insurance, market, and liquidity risk in accordance with IFRS 7

“Financial Instruments – Disclosures”. Disclosures in accordance with IFRS 7 are identified by a vertical line in the left margin

of each page. The identified text and tables represent an integral part of our unaudited Interim Consolidated Financial

Statements.

C1Variable Annuity and Segregated Fund Guarantees

As described in the MD&A in our 2024 Annual Report, guarantees on variable annuity products and segregated funds may

include one or more of death, maturity, income and withdrawal guarantees. Variable annuity and segregated fund guarantees

are contingent and only payable upon the occurrence of the relevant event, if fund values at that time are below guarantee

values. Depending on future equity market levels, liabilities on current in-force business would be due primarily in the period

from 2025 to 2045.

We seek to mitigate a portion of the risks embedded in our retained (i.e. net of reinsurance) variable annuity and segregated

fund guarantee business through the combination of our dynamic and macro hedging strategies (see section C3 “Publicly

Traded Equity Performance Risk Sensitivities and Exposure Measures” below).The table below shows selected information

regarding the Company's variable annuity and segregated fund investment-related guarantees gross and net of reinsurance.

Variable annuity and segregated fund guarantees, net of reinsurance

(1)Guarantee Value and Net Amount at Risk in respect of guaranteed minimum withdrawal business in Canada and the U.S. reflect the time value of money of

these claims.

(2)Amount at risk (in-the-money amount) is the excess of guarantee values over fund values on all policies where the guarantee value exceeds the fund value. For

guaranteed minimum death benefit, the amount at risk is defined as the current guaranteed minimum death benefit in excess of the current account balance

and assumes that all claims are immediately payable. In practice, guaranteed death benefits are contingent and only payable upon the eventual death of

policyholders if fund values remain below guarantee values. For guaranteed minimum withdrawal benefit, the amount at risk assumes that the benefit is paid as

a lifetime annuity commencing at the earliest contractual income start age. These benefits are also contingent and only payable at scheduled maturity/income

start dates in the future, if the policyholders are still living and have not terminated their policies and fund values remain below guarantee values. For all

guarantees, the amount at risk is floored at zero at the single contract level.

(3)The amount at risk net of reinsurance at March 31, 2025 was $1,778 million (December 31, 2024 – $1,666 million) of which: US$322 million (December 31,

2024 – US$293 million) was on our U.S. business, $1,067 million (December 31, 2024 – $1,021 million) was on our Canadian business, US$133 million

(December 31, 2024 – US$100 million) was on our Japan business and US$39 million (December 31, 2024 – US$56 million) was related to Asia (other than

Japan) and our run-off reinsurance business.

(4)Where a policy includes both living and death benefits, the guarantee in excess of the living benefit is included in the death benefit category as outlined in

footnote 5.

(5)Death benefits include stand-alone guarantees and guarantees in excess of living benefit guarantees where both death and living benefits are provided on a

policy.

C2Caution Related to Sensitivities

In this document, we provide sensitivities and risk exposure measures for certain risks. These include sensitivities due to

specific changes in market prices and interest rate levels projected using internal models as at a specific date, and are

measured relative to a starting level reflecting the Company’s assets and liabilities at that date. The risk exposures measure

the impact of changing one factor at a time and assume that all other factors remain unchanged. Actual results can differ

significantly from these estimates for a variety of reasons including the interaction among these factors when more than one

changes; changes in liabilities from updates to non-economic assumptions, changes in business mix, effective tax rates and

other market factors; and the general limitations of our internal models. For these reasons, the sensitivities should only be

viewed as directional estimates of the underlying sensitivities for the respective factors based on the assumptions outlined

below. Given the nature of these calculations, we cannot provide assurance that the actual impact on contractual service

margin, net income attributed to shareholders, other comprehensive income attributed to shareholders, and total

comprehensive income attributed to shareholders or on MLI’s LICAT ratio will be as indicated.

Market movements affect LICAT capital sensitivities through the available capital, surplus allowance and required capital

components of the regulatory capital framework. The LICAT available capital component is primarily affected by total

comprehensive income and the CSM.

C3Publicly Traded Equity Performance Risk Sensitivities and Exposure Measures

As outlined in our 2024 Annual Report, we have net exposure to equity risk through asset and liability mismatches; our variable

annuity and segregated fund guarantee dynamic hedging strategy is not designed to completely offset the sensitivity of

insurance contract liabilities to all risks associated with the guarantees embedded in these products. The macro hedging

strategy is designed to mitigate public equity risk arising from variable annuity and segregated fund guarantees not

dynamically hedged and from other unhedged exposures in our insurance contracts (see page 59 of our 2024 Annual Report).

Changes in public equity prices may impact other items including, but not limited to, asset-based fees earned on assets under

management and administration or policyholder account value, and estimated profits and amortization of deferred policy

acquisition and other costs. These items are not hedged.

The tables below include the potential impacts from an immediate 10%, 20% and 30% change in market values of publicly

traded equities on net income attributed to shareholders, CSM, other comprehensive income attributed to shareholders, and

total comprehensive income attributed to shareholders. The potential impact is shown after taking into account the impact of

the change in markets on the hedge assets. While we cannot reliably estimate the amount of the change in dynamically

hedged variable annuity and segregated fund guarantee liabilities that will not be offset by the change in the dynamic hedge

assets, we make certain assumptions for the purposes of estimating the impact on net income attributed to shareholders.

This estimate assumes that the performance of the dynamic hedging program would not completely offset the gain/loss from

the dynamically hedged variable annuity and segregated fund guarantee liabilities. It assumes that the hedge assets are based

on the actual position at the period end, and that equity hedges in the dynamic program offset 95% of the hedged variable

annuity liability movement that occurs as a result of market changes.

It is also important to note that these estimates are illustrative, and that the dynamic and macro hedging programs may

underperform these estimates, particularly during periods of high realized volatility and/or periods where both interest rates

and equity market movements are unfavourable. The method used for deriving sensitivity information and significant

Changes in equity markets impact our available and required components of the LICAT ratio. The second set of tables shows

the potential impact to MLI’s LICAT ratio resulting from changes in public equity market values.

Potential immediate impact on net income attributed to shareholders arising from changes to public equity returns(1)

(1)See “Caution Related to Sensitivities” above.

(2)For variable annuity contracts measured under the variable fee approach (“VFA”) the impact of financial risk and changes in interest rates adjusts CSM, unless

the risk mitigation option applies. The Company has elected to apply risk mitigation and therefore a portion of the impact is reported in net income attributed to

shareholders instead of adjusting the CSM. If the CSM for a group of variable annuity contracts is exhausted the full impact is reported in net income attributed

to shareholders.

(3)This impact for general fund equity investments includes general fund investments supporting our insurance contract liabilities, investment in seed money

investments (in segregated and mutual funds made by Global WAM segment) and the impact on insurance contract liabilities related to the projected future fee

income on variable universal life and other unit linked products. The impact does not include any potential impact on public equity weightings. The participating

policy funds are largely self-supporting and generate no material impact on net income attributed to shareholders as a result of changes in equity markets.

(4)Includes the impact of assumed rebalancing of equity hedges in the macro and dynamic hedging program. The impact of dynamic hedging represents the

impact of equity hedges offsetting 95% of the dynamically hedged variable annuity liability movement that occurs as a result of market changes, but does not

include any impact in respect of other sources of hedge accounting ineffectiveness (e.g. fund tracking, realized volatility and equity, and interest rate

correlations different from expected among other factors).

Potential immediate impact on contractual service margin, other comprehensive income to shareholders, total

comprehensive income to shareholders and MLI’s LICAT ratio from changes to public equity market values(1),(2)

(1)See “Caution Related to Sensitivities” above.

(2)This estimate assumes that the performance of the dynamic hedging program would not completely offset the gain/loss from the dynamically hedged variable

annuity and segregated fund guarantee liabilities. It assumes that the hedge assets are based on the actual position at the period end, and that equity hedges

in the dynamic program offset 95% of the hedged variable annuity liability movement that occur as a result of market changes.

(3)For variable annuity contracts measured under VFA the impact of financial risk and changes in interest rates adjusts CSM, unless the risk mitigation option

applies. The Company has elected to apply risk mitigation and therefore a portion of the impact is reported in net income attributed to shareholders instead of

adjusting the CSM. If the CSM for a group of variable annuity contracts is exhausted the full impact is reported in net income attributed to shareholders.

(4)The impact of financial risk and changes to interest rates for variable annuity contracts is not expected to generate sensitivity in Other Comprehensive Income.

C4Interest Rate and Spread Risk Sensitivities and Exposure Measures

As at March 31, 2025, we estimated the sensitivity of our net income attributed to shareholders to a 50 basis point parallel

decline in interest rates to be a benefit of $100 million, and to a 50 basis point parallel increase in interest rates to be a charge

of $100 million.

The table below shows the potential impacts from a 50 basis point parallel move in interest rates on CSM, net income

attributed to shareholders, other comprehensive income attributed to shareholders, and total comprehensive income attributed

to shareholders. This includes a change in current government, swap and corporate rates for all maturities across all markets

with no change in credit spreads between government, swap and corporate rates. Also shown separately are the potential

impacts from a 50 basis point parallel move in corporate spreads and a 20 basis point parallel move in swap spreads. The

impacts reflect the net impact of movements in asset values in liability and surplus segments and movements in the present

value of cash flows for insurance contracts including those with cash flows that vary with the returns of underlying items where

the present value is measured by stochastic modelling. The method used for deriving sensitivity information and significant

The disclosed interest rate sensitivities reflect the accounting designations of our financial assets and corresponding insurance

contract liabilities. In most cases these assets and liabilities are designated as fair value through other comprehensive income

and as a result, impacts from changes to interest rates are largely in other comprehensive income. There are also changes in

interest rates that impact the CSM for VFA contracts that relate to amounts that are not passed through to policyholders. In

addition, changes in interest rates impact net income as it relates to derivatives not in hedge accounting relationships and on

VFA contracts where the CSM has been exhausted.

The disclosed interest rate sensitivities assume no hedge accounting ineffectiveness, as our hedge accounting programs are

optimized for parallel movements in interest rates, leading to immaterial net income impacts under these shocks. However, the

actual hedge accounting ineffectiveness is sensitive to non-parallel interest rate movements and will depend on the shape and

magnitude of the interest rate movements, which could lead to variations in the impact to net income attributed to

shareholders.

Our sensitivities vary across all regions in which we operate, and the impacts of yield curve changes will vary depending upon

the geography where the change occurs. Furthermore, the impacts from non-parallel movements may be materially different

from the estimated impacts of parallel movements.

The interest rate and spread risk sensitivities are determined in isolation of each other and therefore do not reflect the

combined impact of changes in government rates and credit spreads between government, swap and corporate rates

occurring simultaneously. As a result, the impact of the summation of each individual sensitivity may be materially different

from the impact of sensitivities to simultaneous changes in interest rate and spread risk.

The potential impacts also do not take into account other potential effects of changes in interest rate levels, for example, CSM

at recognition on the sale of new business or lower interest earned on future fixed income asset purchases.

The impacts do not reflect any potential effect of changing interest rates on the value of our ALDA. Rising interest rates could

negatively impact the value of our ALDA (see “Critical Actuarial and Accounting Policies – Fair Value of Invested Assets”, on

page 95 of our 2024 Annual Report). More information on ALDA can be found under the section C5 “Alternative Long-Duration

Asset Performance Risk Sensitivities and Exposure Measures”.

The impact to the LICAT ratio from a change in interest rates reflects the impacts on total comprehensive income, the LICAT

adjustments to earnings for the CSM, the surplus allowance and required capital components of the regulatory capital

framework.

Potential impacts on contractual service margin, net income attributed to shareholders, other comprehensive income

attributed to shareholders, and total comprehensive income attributed to shareholders of an immediate parallel

change in interest rates, corporate spreads or swap spreads relative to current rates(1),(2),(3)

(1)See “Caution Related to Sensitivities” above.

(2)Estimates include changes to the net actuarial gains/losses with respect to the Company’s pension obligations as a result of changes in interest rates.

(3)Includes guaranteed insurance and annuity products, including variable annuity contracts as well as adjustable benefit products where benefits are generally

Potential impact on MLI’s LICAT ratio of an immediate parallel change in interest rates, corporate spreads or swap

spreads relative to current rates(1),(2),(3),(4),(5)

(1)See “Caution Related to Sensitivities” above.

(2)Estimates include changes to the net actuarial gains/losses with respect to the Company’s pension obligations as a result of changes in interest rates.

(3)Includes guaranteed insurance and annuity products, including variable annuity contracts as well as adjustable benefit products where benefits are generally

(4)LICAT impacts reflect the impact of anticipated scenario switches.

(5)Under LICAT, spread movements are determined from a selection of investment grade bond indices with BBB and better bonds for each jurisdiction. For LICAT,

we use the following indices: FTSE TMX Canada All Corporate Bond Index, Barclays USD Liquid Investment Grade Corporate Index, and Nomura-BPI (Japan).

LICAT impacts presented for corporate spreads reflect the impact of anticipated scenario switches.

LICAT Scenario Switch

When interest rates change past a certain threshold, reflecting the combined movement in risk-free rates and corporate

spreads, a different prescribed interest rate stress scenario needs to be taken into account in the LICAT ratio calculation in

accordance with OSFI’s LICAT guideline.

The LICAT guideline specifies four stress scenarios for interest rates and prescribes the methodology to determine the most

adverse scenario to apply for each LICAT geographic region1 based on current market inputs and the Company’s Consolidated

Statements of Financial Position.

With the current level of interest rates in 1Q25, the probability of a scenario switch that could materially impact our LICAT ratio

is low.2 Should the future interest rate movements differ from those presented above, a scenario switch, if applicable, may

cause the impact to the LICAT ratio to be different from the disclosed values. Should a scenario switch be triggered in a LICAT

geographic region, the full impact would be reflected immediately for non-participating products while the impact for

participating products would be reflected over six quarters using a rolling average of interest rate risk capital, in line with the

smoothing approach prescribed in the LICAT guideline. The LICAT interest rate, corporate spread and swap spread

sensitivities presented above reflect the impact of scenario switches, if any, for each disclosed sensitivity.

The level of interest rates and corporate spreads that would trigger a switch in the scenarios is dependent on market

conditions and movements in the Company’s asset and liability position. The scenario switch, if triggered, could reverse in

response to subsequent changes in interest rates and/or corporate spreads.

C5Alternative Long-Duration Asset Performance Risk Sensitivities and Exposure

Measures

The following table shows the potential impact on CSM, net income attributed to shareholders, other comprehensive income

attributed to shareholders, and total comprehensive income attributed to shareholders resulting from an immediate 10%

change in market values of ALDA. The method used for deriving sensitivity information and significant assumptions made did

not change from the previous period.

ALDA used in this sensitivity analysis includes commercial real estate, private equity, infrastructure, timber and agriculture,

energy3 and other investments.

The impacts do not reflect any future potential changes to non-fixed income return volatility. Refer to “C3 Publicly Traded

Equity Performance Risk Sensitivities and Exposure Measures” for more details.

Potential immediate impacts on contractual service margin, net income attributed to shareholders, other

comprehensive income attributed to shareholders, and total comprehensive income attributed to shareholders from

changes in ALDA market values(1)

(1)See “Caution Related to Sensitivities” above.

(2)Net income attributed to shareholders includes core earnings and the amounts excluded from core earnings.

Potential immediate impact on MLI LICAT ratio arising from changes in ALDA market values(1)

(1)See “Caution Related to Sensitivities” above.

C6Risk Management and Risk Factors Update2

We have outlined our overall approach to risk management in our 2024 Annual Report. The following is an update to the risk

factors for strategic risk.

Strategic risk factors

Changes in tax laws, tax regulations, or interpretations of such laws or regulations could make some of our products

less attractive to consumers, could increase our corporate taxes or cause us to change the value of our deferred tax

assets and liabilities as well as our tax assumptions included in the valuation of our insurance and investment

contract liabilities. This could have a material adverse effect on our business, results of operations and financial

condition.

•On January 31, 2025, the Canadian government announced its intention to increase the capital gains inclusion rate from

50% to 66.67%, effective January 1, 2026, although more recent political developments suggest this change is unlikely to

take place. Most of Manulife's investments are not treated as capital property, however, and therefore we do not expect to

be materially affected by such a tax change. For investments treated as capital properties, the increased effective tax rate

on capital gains would result in a modest increase in the deferred tax liabilities on such investments with accrued gains.

DCRITICAL ACTUARIAL AND ACCOUNTING POLICIES

Disclosures in accordance with IFRS 7 are identified by a vertical line in the left margin of each page. The identified text and

tables represent an integral part of our unaudited Interim Consolidated Financial Statements.

D1Critical Actuarial and Accounting Policies   

Our material accounting policies are described in note 1 to our Consolidated Financial Statements for the year ended

December 31, 2024. The critical actuarial policies and estimation processes relating to the determination of insurance and

investment contract liabilities are described starting on page 87 of our 2024 Annual Report. The critical accounting policies and

estimation processes relating to the assessment of control over other entities for consolidation, estimation of fair value of

invested assets, evaluation of invested asset impairments, appropriate accounting for derivative financial instruments and

hedge accounting, determination of pension and other post-employment benefit obligations and expenses, accounting for

income taxes and uncertain tax positions and valuation and impairment of goodwill and intangible assets are described starting

on page 95 of our 2024 Annual Report.

D2Sensitivity to Changes in Assumptions

The following table presents information on how reasonably possible changes in assumptions made by the Company for

certain economic risk variables impact the CSM, net income attributed to shareholders, other comprehensive income attributed

to shareholders and total comprehensive income attributed to shareholders. The method used for deriving sensitivity

information and significant assumptions made did not change from the previous period.

The analysis is based on a simultaneous change in assumptions across all business units and holds all other assumptions

constant. In practice, experience for each assumption will frequently vary by geographic market and business, and assumption

updates are made on a business and geographic basis. Actual results can differ materially from these estimates for a variety of

reasons including the interaction among these factors when more than one factor changes, actual experience differing from

the assumptions, changes in business mix, effective tax rates, and the general limitations of our internal models.

Potential impact on contractual service margin, net income attributed to shareholders, other comprehensive income

attributed to shareholders, and total comprehensive income attributed to shareholders arising from changes to

certain economic financial assumptions used in the determination of insurance contract liabilities(1)

(1)Note that the impact of these assumptions is not linear.

(2)Used in the determination of insurance contract liabilities with financial guarantees. This includes universal Life minimum crediting rate guarantees, participating

life zero dividend floor implicit guarantees, and variable annuities guarantees, where a stochastic approach is used to capture the asymmetry of the risk.

D3Accounting and Reporting Changes

For future accounting and reporting changes arising during the quarter, refer to note 2 of our unaudited Interim Consolidated

Financial Statements for the three months ended March 31, 2025.

EOTHER

E1Outstanding Common Shares – Selected Information     

As at April 30, 2025, MFC had 1,712,710,832 common shares outstanding.

E2Legal and Regulatory Proceedings       

We are regularly involved in legal actions, both as a defendant and as a plaintiff. Information on legal and regulatory

proceedings can be found in note 13 of our unaudited Interim Consolidated Financial Statements for the three months ended

March 31, 2025.

E3Non-GAAP and Other Financial Measures

The Company prepares its Consolidated Financial Statements in accordance with International Financial Reporting Standards

(“IFRS”) as issued by the International Accounting Standards Board. We use a number of non-GAAP and other financial

measures to evaluate overall performance and to assess each of our businesses. This section includes information required by

National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure in respect of “specified financial

measures” (as defined therein).

Non-GAAP financial measures include core earnings (loss); pre-tax core earnings; core earnings available to common

shareholders; core earnings before interest, taxes, depreciation and amortization (“core EBITDA”); total expenses; core

expenses; core Drivers of Earnings (“DOE”) line items for core net insurance service result, core net investment result, other

core earnings, and core income tax (expenses) recoveries; post-tax contractual service margin (“post-tax CSM”); post-tax

contractual service margin net of NCI (“post-tax CSM net of NCI”); Manulife Bank net lending assets; Manulife Bank average

net lending assets; assets under management (“AUM”); assets under management and administration (“AUMA”); Global WAM

managed AUMA; core revenue; adjusted book value; and net annualized fee income. In addition, non-GAAP financial

measures include the following stated on a constant exchange rate (“CER”) basis: any of the foregoing non-GAAP financial

measures; net income attributed to shareholders; common shareholders’ net income and new business CSM.

Non-GAAP ratios include core return on shareholders’ equity (“core ROE”); diluted core earnings per common share (“core

EPS”); core earnings contributions from highest potential businesses; financial leverage ratio; adjusted book value per

common share; common share core dividend payout ratio (“dividend payout ratio”); expense efficiency ratio; core EBITDA

margin; effective tax rate on core earnings; and net annualized fee income yield on average AUMA. In addition, non-GAAP

ratios include the percentage growth/decline on a CER basis in any of the above non-GAAP financial measures and non-

GAAP ratios; net income attributed to shareholders; common shareholders’ net income; pre-tax net income attributed to

shareholders; general expenses; CSM; CSM net of NCI; impact of new insurance business net of NCI; new business CSM;

basic earnings per common share (“basic EPS”); and diluted earnings per common share (“diluted EPS”).

Other specified financial measures include assets under administration (“AUA”); consolidated capital; new business value

(“NBV”); new business value margin (“NBV margin”); sales; annualized premium equivalent (“APE”) sales; gross flows; net

flows; average assets under management and administration (“average AUMA”); Global WAM average managed AUMA;

average assets under administration; remittances; any of the foregoing specified financial measures stated on a CER basis;

and percentage growth/decline in any of the foregoing specified financial measures on a CER basis. In addition, we provide an

explanation below of the components of core DOE line items other than the change in expected credit loss, the items that

comprise certain items excluded from core earnings (on a pre-tax and post-tax basis), and the components of CSM movement

other than the new business CSM.

Our reporting currency for the Company is Canadian dollars and U.S. dollars is the functional currency for Asia and U.S.

segment results. Financial measures presented in U.S. dollars are calculated in the same manner as the Canadian dollar

measures. These amounts are translated to U.S. dollars using the period end rate of exchange for financial measures such as

AUMA and the CSM balance and the average rates of exchange for the respective quarter for periodic financial measures

such as our Consolidated Statements of Income, core earnings and items excluded from core earnings, and line items in our

CSM movement schedule and DOE. Year-to-date or full year periodic financial measures presented in U.S. dollars are

calculated as the sum of the quarterly results translated to U.S. dollars. See section E5 “Quarterly Financial Information” below

for the Canadian to U.S. dollar quarterly rates of exchange.

Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under GAAP and, therefore,

might not be comparable to similar financial measures disclosed 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 (loss) is a financial measure which we believe aids investors in better understanding the long-term earnings

capacity and valuation of the business. Core earnings allows investors to focus on the Company’s operating performance by

excluding the impact of market-related gains or losses, changes in actuarial methods and assumptions that flow directly

through income as well as a number of other items, outlined below, that we believe are material, but do not reflect the

underlying earnings capacity of the business. For example, due to the long-term nature of our business, the mark-to-market

movements in equity markets, interest rates including impacts on hedge accounting ineffectiveness, foreign currency

exchange rates and commodity prices as well as the change in the fair value of ALDA from period-to-period can, and

frequently do, have a substantial impact on the reported amounts of our assets, insurance contract liabilities and net income

attributed to shareholders. These reported amounts may not be realized if markets move in the opposite direction in a

subsequent period. This makes it very difficult for investors to evaluate how our businesses are performing from period-to-

period and to compare our performance with other issuers.

We believe that core earnings better reflect the underlying earnings capacity and valuation of our business. We use core

earnings and core EPS as key metrics in our short-term incentive plans at the total Company and operating segment level. We

also base our mid- and long-term strategic priorities on core earnings.

Core earnings includes the expected return on our invested assets and any other gains (charges) from market experience are

included in net income but excluded from core earnings. The expected return for fixed income assets is based on the related

book yields. For ALDA and public equities, the expected return reflects our long-term view of asset class performance. These

returns for ALDA and public equities vary by asset class and range from 3.25% to 11.5%, leading to an average return of

between 9.0% to 9.5% on these assets as of March 31, 2025.

While core earnings is relevant to how we manage our business and offers a consistent methodology, it is not insulated from

macroeconomic factors which can have a significant impact. See below for a reconciliation of core earnings to net income

attributed to shareholders and income before income taxes. Net income attributed to shareholders excludes net income

attributed to participating policyholders and non-controlling interests.

Any future changes to the core earnings definition referred to below, will be disclosed.

Items included in core earnings:

1.Expected insurance service result on in-force policies, including expected release of the risk adjustment, CSM recognized

for service provided, and expected earnings from short-term products measured under the premium allocation approach

(“PAA”).

2.Impacts from the initial recognition of new contracts (onerous contracts, including the impact of the associated reinsurance

contracts).

3.Insurance experience gains or losses that flow directly through net income.

4.Operating and investment expenses compared with expense assumptions used in the measurement of insurance and

investment contract liabilities.

5.Expected investment earnings, which is the difference between expected return on our invested assets and the

associated finance income or expense from the insurance contract liabilities.

6.Net provision for ECL on FVOCI and amortized cost debt instruments.

7.Expected asset returns on surplus investments.

8.All earnings for the Global WAM segment, except for applicable net income items excluded from core earnings as noted

below.

9.All earnings for the Manulife Bank business, except for applicable net income items excluded from core earnings as noted

below.

10.Routine or non-material legal settlements.

11.All other items not specifically excluded.

12.Tax on the above items.

13.All tax-related items except the impact of enacted or substantively enacted income tax rate changes and taxes on items

Net income items excluded from core earnings:

1.Market experience gains (losses) including the items listed below:

•Gains (charges) on general fund public equity and ALDA investments from returns being different than expected.

•Gains (charges) on derivatives not in hedging relationships, or gains (charges) resulting from hedge accounting

ineffectiveness.

•Realized gains (charges) from the sale of FVOCI debt instruments.

•Market-related gains (charges) on onerous contracts measured using the variable fee approach (e.g. variable

annuities, unit linked, participating insurance) net of the performance on any related hedging instruments.

•Gains (charges) related to certain changes in foreign exchange rates. 

2.Changes in actuarial methods and assumptions used in the measurement of insurance contract liabilities that flow directly

through income. The Company reviews actuarial methods and assumptions annually, and this process is designed to

reduce the Company’s exposure to uncertainty by ensuring assumptions remain appropriate. This is accomplished by

monitoring experience and selecting assumptions which represent a current view of expected future experience and

ensuring that the risk adjustment is appropriate for the risks assumed.

3.The impact on the measurement of insurance and investment contract assets and liabilities and reinsurance contract held

assets and liabilities from changes in product features and new or changes to in-force reinsurance contracts, if material.

4.The fair value changes in long-term investment plan obligations for Global WAM investment management.

5.Goodwill impairment charges.

6.Gains or losses on acquisition and disposition of a business.

7.Material one-time only adjustments, including highly unusual / extraordinary and material legal settlements and

restructuring charges, or other items that are material and exceptional in nature.

8.Tax on the above items.

9.Net income (loss) attributed to participating shareholders and non-controlling interests.

10.Impact of enacted or substantively enacted income tax rate changes.

Reconciliation of core earnings to net income attributed to shareholders – 1Q25