6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OFFOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2024

Commission File Number: 1-14942

MANULIFE FINANCIAL CORPORATION

(Translation of registrant’s name into English)

200 BloorStreet East

North Tower 10

Toronto, Ontario, Canada M4W 1E5

(416) 926-3000

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ☐ Form 40-F ☒

The registrant’s Management’s Discussion and Analysis and Unaudited Interim Consolidated Financial Statements for the quarter ended March 31, 2024 included in the registrant’s 2024 First Quarter Report to Shareholders filed with this Form 6-K as Exhibit 99.1, are incorporated by reference in the registration statements filed with the Securities and Exchange Commission by the registrant on Form S-8 (Registration Nos. 333-12610, 333-13072, 333-114951, 333-129430, 333-157326, 333-211366, 333-272672, 333-277446), on Form F-3 (Registration No. 333-159176) and on Form F-10 (Registration No. 333-274698). Except for the foregoing, no other document or portion of a document filed with this Form 6-K is incorporated by reference in the above registration statements.

DOCUMENTS FILED AS PART OF THIS FORM 6-K

The following documents, filed as exhibits to this Form 6-K, are incorporated by reference as part of this Form 6-K:

Exhibit	Description of Exhibit
99.1	First Quarter Report to Shareholders
99.2<br><br> <br>99.3	Certification Chief Executive Officer<br> <br><br><br><br>Certification Chief Financial Officer

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

MANULIFE FINANCIAL CORPORATION
By:	/s/ Scott MacIntosh
Name:	Scott MacIntosh
Title:	Assistant Corporate Secretary

Date: May 8, 2024

EX-99.1

Exhibit 99.1

LOGO

First Quarter Report to Shareholders Three months ended March 31, 2024

Manulife Financial Corporation (“Manulife” or the “Company”) reported its first quarter resultsfor the period ended March 31, 2024, delivering strong core ROE and topline growth, and closing the largest long-term care (“LTC”) reinsurance transaction in the industry.

Key highlights for the first quarter of 2024 (“1Q24”) include:

•	Core earnings^1^ of $1.8 billion, up 16% on a constant exchange<br>rate basis^2^ from the first quarter of 2023 (“1Q23”)
•	Net income attributed to shareholders of $0.9 billion, down $0.5 billion from 1Q23. Excluding the impact of the<br>reinsurance transaction with Global Atlantic (the “GA Reinsurance Transaction”), which had a largely neutral impact on book value, 1Q24 net income attributed to shareholders was $1.6<br>billion^1^, up $0.2 billion from 1Q23
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•	Core EPS^3^ of $0.94, up 20%^2^ from 1Q23. EPS of $0.45, down 38%^2^ from 1Q23. Excluding the impact of the GA Reinsurance Transaction, EPS was $0.87^3^, up 21%^2^ from 1Q23
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•	Core ROE^3^ of 16.7% and ROE of 8.0%. Excluding the impact of the GA<br>Reinsurance Transaction, ROE was 15.5%^3^
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•	LICAT ratio^4^ of 138%
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•	APE sales 21% higher^5^, new business CSM up 52%^2^ and new business value (“NBV”) up 34%^5^ from 1Q23^6^
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•	Global Wealth and Asset Management (“Global WAM”) net<br>inflows^5^ of $6.7 billion, up from $4.4 billion in 1Q23
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“After a milestone year for Manulife, we continued to show strong momentum in 1Q24 by delivering superior results,<br>including 20% core EPS growth, an increase of 11% in adjusted book value per common share^3^, and record level APE sales with double-digit growth across each of our insurance segments. We again<br>demonstrated a disciplined focus on execution by closing the largest ever LTC reinsurance transaction in the first quarter and entering the largest ever universal life reinsurance agreement in Canada. I’m excited by our momentum in the first<br>quarter and by the opportunities ahead of us to continue generating shareholder value.”<br> <br><br><br><br>— Roy Gori, Manulife President & Chief Executive Officer<br><br><br><br> <br>“We had a strong start to 2024 with record levels<br>of new business CSM and new business value, reflecting 52% and 34% growth, respectively. Global WAM saw strong net inflows of $6.7 billion, and our capital position remains robust with a LICAT ratio of 138%. Looking ahead, we remain committed<br>to further improving ROE through disciplined capital allocation and continued business performance improvements.”<br> <br><br><br><br>— Colin Simpson, Manulife Chief Financial Officer
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^1^ Core earnings and net income attributed to shareholders<br>excluding the impact of the GA Reinsurance Transaction are non-GAAP financial measures. For more information on non-GAAP and other financial measures, see “Non-GAAP and other financial measures” in our 1Q24 Management’s Discussion and<br>Analysis (“1Q24 MD&A”).<br> <br>^2^ Percentage growth /<br>declines in core earnings, diluted core earnings per common share (“core EPS”), diluted earnings (loss) per share (“EPS”), EPS excluding the impact of the GA Reinsurance Transaction, and new business contractual service margin<br>net of NCI (“new business CSM”) are stated on a constant exchange rate basis and are non-GAAP ratios.<br> <br>^3^ Core EPS, EPS excluding the impact of the GA Reinsurance transaction, core ROE, ROE excluding the impact of the GA Reinsurance Transaction and adjusted book value per common share<br>(“adjusted BV per common share”) are non-GAAP ratios.<br><br><br>^4^ Life Insurance Capital Adequacy Test (“LICAT”)<br>ratio of The Manufacturers Life Insurance Company (“MLI”) as at March 31, 2024. LICAT ratio is disclosed under the Office of the Superintendent of Financial Institutions Canada’s (“OSFI’s”) Life Insurance Capital<br>Adequacy Test Public Disclosure Requirements guideline.<br><br><br>^5^ For more information on annualized premium equivalent<br>(“APE”) sales, NBV and net flows, see “Non-GAAP and other financial measures” in our 1Q24 MD&A. Percentage growth/decline in APE sales, NBV and net flows are stated on a constant exchange rate basis.<br><br><br>^6^ Refer to “Result at a Glance” for 1Q24 and 1Q23<br>results.
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Manulife Financial Corporation – First Quarter 2024	1
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Results at a Glance


( millions, unless otherwise stated)		1Q23		Change^1,2^
Net income attributed to shareholders	866	$	1,406	(38)%
Core earnings	1,754	$	1,531	16%
EPS ()	0.45	$	0.73	(38)%
Core EPS ()	0.94	$	0.79	20%
ROE	8.0%		13.6%	(5.6) pps
Core ROE	16.7%		14.8%	1.9 pps
Book value per common share ()	23.09	$	22.01	5%
Adjusted BV per common share ()	33.39	$	30.04	11%
Financial leverage ratio (%)3	24.3%		26.0%	(1.7) pps
APE sales	1,883	$	1,600	21%
New business CSM	658	$	442	52%
NBV	669	$	509	34%
Global WAM net flows ( billions)	6.7	$	4.4	55%
Results by Segment

( millions, unless otherwise stated)		1Q23		Change^2^
Asia (US)
Net income attributed to shareholders	270	$	384	(29)%
Core earnings	488		361	39%
APE sales	950		868	13%
New business CSM	364		222	68%
NBV	343		275	28%
Canada
Net income attributed to shareholders	273	$	309	(12)%
Core earnings	364		353	3%
APE sales	450		293	54%
New business CSM	70		46	52%
NBV	157		92	71%
U.S. (US)
Net income attributed to shareholders	(80)	$	138	nm
Core earnings	335		285	18%
APE sales	113		99	14%
New business CSM	72		70	3%
NBV	37		34	9%
Global WAM
Net income attributed to shareholders	365	$	297	24%
Core earnings	357		287	25%
Gross flows ( billions)2	45.4		38.8	19%
Average AUMA ( billions)2	880		804	9%
Core EBITDA margin (%)3	25.5%		22.4%	310 bps

All values are in US Dollars.

^1^ Percentage growth / decline in net income attributed to<br>shareholders is stated on a constant exchange rate basis and is a non-GAAP ratio.<br> <br>^2^ For more information on gross flows and average asset under management and administration (“average AUMA”), see “Non-GAAP and other financial measures” in our 1Q24<br>MD&A. Percentage growth/decline in gross flows and average AUMA are stated on a constant exchange rate basis.<br> <br>^3^ Financial leverage ratio and core EBITDA margin are non-GAAP ratios.
Manulife Financial Corporation – First Quarter 2024	2
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^1^ Percentage growth / decline in net income attributed to shareholders is stated on a constant exchange rate basis and is a non-GAAP ratio. ^2^ For more information on gross flows and average asset under management and administration (“average AUMA”), see “Non-GAAP and other financial measures” in our 1Q24 MD&A. Percentage growth/decline in gross flows and average AUMA are stated on a constant exchange rate basis. ^3^ Financial leverage ratio and core EBITDA margin are non-GAAP ratios.

Manulife Financial Corporation – First Quarter 2024

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Strategic Highlights

We are delivering against our strategy to optimize our portfolio

In the first quarter, we closed a milestone reinsurance transaction with Global Atlantic on four in-force blocks of legacy/low ROE business, including the largest LTC reinsurance deal in history. We have commenced a share buyback program to return capital released from this transaction to our shareholders.

In Canada, we entered into the largest universal life reinsurance agreement of its kind. The transaction, which closed on April 2, 2024, transferred $5.6 billion of insurance contract net liabilities to RGA Canada^1^. The expected capital release of $0.8 billion represents an attractive 16.2 times earnings multiple and will be returned to shareholders through an ordinary share repurchase program.^^^2^

In Asia, we continued to roll out our top-tier recognition and activation program, Manulife Pro, across the region with the recent expansion to Indonesia and Japan. The program provides selected agents with differentiated resources and tools, including dedicated underwriting support and enhanced customer engagement services with access to customer leads.

In Global WAM, we announced the closing of a $1.0 billion institutional fund - Manulife Capital Partners VII. The fund will invest in U.S. middle market companies across multiple industries, focusing on growth and high-yield opportunities.

In addition, we partnered with the Indonesia Investment Authority sovereign wealth fund to raise and manage funds for investment. The partnership involves co-investments between the sovereign wealth fund, Manulife, and third-party investors in Indonesian infrastructure, real estate, and the natural capital sectors, which include timberland and agriculture assets.

We are enhancing our digitalleadership, delivering better customer experience and superior distribution capabilities

In Asia, we completed the roll-out of M-Pro, a first-in-market digital pre-issuance verification tool, to all distribution channels in Vietnam. M-Pro has further improved customer experience and we have received outstanding feedback on the ease of navigating policy issuance details, ability to review crucial policy information and transparency of the consultation process.

In the U.S., we accelerated our distribution team’s ability to act on sales opportunities and improved their efficiency in assisting agents by implementing JHINI – our new, AI-powered, sales enablement tool.

In addition, we streamlined our underwriting process and improved our John Hancock customers’ experience by expanding our usage of electronic health records and leveraging other types of underwriting evidence, which have allowed us to eliminate certain medical test requirements for all ages and face amounts.

In Global WAM, we completed the implementation of a new advisor retail wealth platform in Canada as part of our digital transformation strategy, representing more than $54 billion in AUMA, by leveraging an industry leading technology platform. The platform delivers an enhanced advisor and client experience and enables advisors to streamline their processes.

We are helping our customers live longer, healthier, andbetter lives

In Canada, we entered into a multi-year loyalty rewards partnership agreement with Aeroplan. Beginning in early summer 2024, eligible Manulife group benefits members will be able to earn rewards points using our group benefits digital platforms by engaging in behaviours and activities that encourage health and well-being.

In the U.S., we drove a 43% improvement compared with 1Q23 in the number of visits to the Vitality page of JohnHancock.com supported by the launch of Your Year inWellness – our first social-sharing campaign to raise awareness about the value of John Hancock Vitality.

^1^ RGA Life Reinsurance Company of Canada. Insurance contract<br>net liabilities as of March 31, 2024.<br> <br>^2^ See<br>“Caution regarding forward-looking statements” below. Expected capital release and earnings multiple estimates were as of December 31, 2023.
Manulife Financial Corporation – First Quarter 2024	3
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Delivered strong core earnings growth, while net income reflected the impact of the GA Reinsurance Transactionwith largely neutral impact to book value^1^

Core earnings of $1.8 billion in 1Q24, up 16% from1Q23

The 16% year-over-year increase in core earnings reflects strong business growth across our insurance businesses and higher fee income in Global WAM benefitting from favourable market impacts and positive net flows. Core earnings increased 39% in Asia and 25% in Global WAM compared with 1Q23. The provision for expected credit loss was a modest net release in 1Q24 compared with a net charge in 1Q23, reflecting a benign credit experience this quarter. Updates to actuarial methods and assumptions in the second half of 2023 also contributed to core earnings growth. These were partially offset by modestly more adverse insurance experience, and higher workforce-related costs primarily reflecting strong TSR^2^ performance. The net impact of the GA Reinsurance Transaction on core earnings was a $18 million charge in 1Q24.

Net Income attributed to shareholders of $0.9 billion in 1Q24, $0.5 billion lower compared with 1Q23

The $0.5 billion decrease in net income reflects the $0.8 billion impact from the GA Reinsurance Transaction, partially offset by core earnings growth. Most of the GA Reinsurance Transaction impact is from the sale of debt instruments related to the transaction, which, is broadly offset by an associated change in Other Comprehensive Income resulting in a neutral impact to book value. This, along with lower-than-expected returns on alternative long-duration assets and higher-than-expected returns on public equity, resulted in a $0.8 billion market experience loss in 1Q24. The overall book value per common share increased 5% compared with 1Q23.

Record levels of new insurance business results and strong net inflows in Global WAM

Continued momentum in our 1Q24 new business results with year-over-year growth across all insurance segments, resulting in increases of 21%, 52% and 34% in APE sales,new business CSM and NBV, respectively

•	In Asia, APE sales increased 13% from 1Q23, driven by growth in Asia Other and Japan, partially offset by lower sales in<br>Hong Kong. Business mix and the impact of updates to actuarial methods and assumptions in the prior year further contributed to a 68% growth in new business CSM. NBV also increased 28% compared with 1Q23. The improvement in NBV margin was driven by<br>our pricing discipline and changes in business mix.
•	Canada generated 54% growth in APE sales, driven by higher sales volumes in all business units, led by large-case Group<br>Insurance sales. Combined with margin expansion in our insurance businesses, NBV and new business CSM increased 71% and 52%, respectively.
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•	In the U.S., APE sales increased 14%, reflecting an increase in demand from affluent customers for accumulation insurance<br>products. Combined with product mix, this led to a 3% and 9% increase in new business CSM and NBV, respectively.
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Global WAM net inflows of$6.7 billion in 1Q24, increased $2.3 billion compared with $4.4 billion in 1Q23

•	Retirement net inflows of $3.2 billion in 1Q24 increased from $1.2 billion in 1Q23, reflecting higher new<br>retirement plan sales across our three geographies.
•	Retail net inflows of $1.7 billion in 1Q24 increased from $0.8 billion in 1Q23, driven by increased demand for<br>investment products amid equity market recovery and improved investor sentiment.
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•	Institutional Asset Management net inflows of $1.8 billion in 1Q24 decreased compared with $2.5 billion in 1Q23<br>as higher fixed income mandates sales and lower money market redemptions were more than offset by higher redemptions in fixed income and equity mandates.
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^1^ See section A1 “Profitability” in our 1Q24 MD&A<br>for more information on notable items attributable to core earnings and net income attributed to shareholders.<br> <br>^2^ Total shareholder return (“TSR”).
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Manulife Financial Corporation – First Quarter 2024	4
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Increase in CSM balance driven by organic CSM growth and favourable impact of markets

CSM net of NCI^1^ was $21,089 million as at March 31, 2024

CSM net of NCI increased $649 million compared with December 31, 2023. Organic CSM movement was an increase of $314 million in 1Q24, primarily driven by the impact of new business and interest accretion, partially offset by amortization recognized in core earnings. Insurance experience improved both quarter-over-quarter and year-over-year. Inorganic CSM movement was an increase of $335 million for the same period, primarily driven by the favourable impacts of equity market performance and changes in foreign currency exchange rates, partially offset by the impact of the GA Reinsurance Transaction. Post-tax CSM net of NCI^2^ was $18,547 million as at March 31, 2024.

^1^ Non-controlling interests (“NCI”).<br><br><br>^2^ Post-tax contractual service margin net of NCI<br>(“post-tax CSM net of NCI”) is a non-GAAP financial measure. For more information on non-GAAP and other financial measures, see “Non-GAAP and other financial measures” in our 1Q24 MD&A.
Manulife Financial Corporation – First Quarter 2024	5
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MANAGEMENT’S DISCUSSION AND ANALYSIS

This Management’s Discussion and Analysis (“MD&A”) is current as of May 8, 2024, 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, 2024 and the MD&A and audited Consolidated Financial Statements contained in our 2023 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 2023 Annual Report (“2023 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.	Embedded Value
8.	Normal course issuer bid update
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
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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
Manulife Financial Corporation – First Quarter 2024	6
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A	TOTAL COMPANY PERFORMANCE
A1	Profitability
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	Quarterly Results
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($ millions, unless otherwise stated)	1Q24		4Q23		1Q23
Net income (loss) attributed to shareholders	$	866	$	1,659	$	1,406
Core earnings^(1)^	$	1,754	$	1,773	$	1,531
Diluted earnings (loss) per common share ($)	$	0.45	$	0.86	$	0.73
Diluted core earnings per common share (“Core EPS”) ($)^(2)^	$	0.94	$	0.92	$	0.79
ROE	****	8.0%		15.3%		13.6%
Core return on shareholders’ equity (“Core<br>ROE”)^(2)^	****	16.7%		16.4%		14.8%
Expense efficiency ratio^(2)^	****	45.1%		45.5%		47.1%
General expenses	$	1,102	$	1,180	$	1,086
Core expenses^(1)^	$	1,673	$	1,725	$	1,605
^(1)^ This item is a non-GAAP financial measure. See “Non-GAAP and other financial measures” below for more information.<br><br><br>^(2)^ 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 $866 million in the first quarter of 2024 (“1Q24”) compared with $1,406 million in the first quarter of 2023 (“1Q23”). 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 $1,754 million in 1Q24 compared with $1,531 million in 1Q23, and items excluded from core earnings, which amounted to a net charge of $888 million in 1Q24 compared with a net charge of $125 million in 1Q23. The effective tax rate on net income (loss) attributed to shareholders was 22% in 1Q24 compared with 17% in 1Q23.

Net income attributed to shareholders in 1Q24 decreased $540 million compared with 1Q23, reflecting a net loss of $767 million from the reinsurance transaction with Global Atlantic (“GA Reinsurance Transaction”), 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 attributed to shareholders resulting in a neutral impact to book value), partially offset by core earnings growth. The net charge from 1Q24 market experience was also driven by lower-than-expected returns on alternative long duration assets (“ALDA”) largely related to real estate, partially offset by higher-than-expected returns on public equity.

Core earnings increased $223 million or 16% on a constant exchange rate basis^1^ compared with 1Q23. The increase in core earnings compared with 1Q23 was driven by strong business growth across all insurance businesses, the impact of updates to actuarial methods and assumptions in the second half of 2023 and higher fee income in Global Wealth and Asset Management (“Global WAM”) from higher average assets under management and administration^2^ (“average AUMA”) and positive net flows^2^. The provision for expected credit loss (“ECL”) was a modest net release in 1Q24 compared with a net charge in 1Q23, reflecting a benign credit experience. This was partially offset by modestly more adverse insurance experience, and higher workforce-related costs primarily reflecting strong TSR^3^ performance relative to peers and business performance. The net impact of the GA Reinsurance Transaction on core earnings was an $18 million charge in 1Q24 reflecting foregone earnings, primarily expected earnings on insurance contracts and expected investment earnings, partially offset by a release of ECL provisions on assets sold and higher expected investment earnings due to the timing of asset realignment.

^1^ Percentage growth / declines in core earnings, pre-tax core<br>earnings, total expenses, core expenses, general expenses, contractual service margin (“CSM”) net of non-controlling interests (“NCI”), new business contractual service margin (“new business CSM”), assets under<br>management and administration (“AUMA”), assets under management (“AUM”), core earnings before income taxes, depreciation and amortization (“core EBITDA”), and Manulife Bank average net lending assets are stated on a<br>constant exchange rate basis, a non-GAAP ratio. See “Non-GAAP and other financial measures” below for more information.<br><br><br>^2^ For more information on this metric, see “Non-GAAP and<br>other financial measures” below.<br> <br>^3^ Total Shareholder<br>Return.
Manulife Financial Corporation – First Quarter 2024	7
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^1^ Percentage growth / declines in core earnings, pre-tax core earnings, total expenses, core expenses, general expenses, contractual service margin (“CSM”) net of non-controlling interests (“NCI”), new business contractual service margin (“new business CSM”), assets under management and administration (“AUMA”), assets under management (“AUM”), core earnings before income taxes, depreciation and amortization (“core EBITDA”), and Manulife Bank average net lending assets are stated on a constant exchange rate basis, a non-GAAP ratio. See “Non-GAAP and other financial measures” below for more information. ^2^ For more information on this metric, see “Non-GAAP and other financial measures” below. ^3^ Total Shareholder Return.

Manulife Financial Corporation – First Quarter 2024

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Core earnings by segment is presented in the table below.

Core earnings by segment	Quarterly Results
($ millions, unaudited)	1Q24		4Q23		1Q23
Asia	$	657	$	564	$	489
Canada	****	364		352		353
U.S.	****	452		474		385
Global Wealth and Asset Management	****	357		353		287
Corporate and Other	****	(76)		30		17
Total core earnings	$	1,754	$	1,773	$	1,531

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

	Quarterly Results
($ millions, unaudited)	1Q24		4Q23		1Q23
Core earnings	$	1,754	$	1,773	$	1,531
Items excluded from core earnings:
Market experience gains (losses)^(1)^	****	(779)		(133)		(65)
Realized gains (losses) on debt instruments	****	(670)		(51)		(31)
Derivatives and hedge accounting ineffectiveness	****	(42)		34		93
Actual less expected long-term returns on public equity	****	216		182		108
Actual less expected long-term returns on ALDA	****	(255)		(381)		(364)
Other investment results	****	(28)		83		129
Changes in actuarial methods and assumptions that flow directly through income	****	–		119		–
Restructuring charge	****	–		(36)		–
Reinsurance transactions,<br>tax-related items and other^(2)^	****	(109)		(64)		(60)
Total items excluded from core earnings	****	(888)		(114)		(125)
Net income (loss) attributed to shareholders	$	866	$	1,659	$	1,406
^(1)^	Market experience was a net charge of $779 million in 1Q24, primarily driven by net realized losses from debt<br>instruments of which $568 million was related to the transfer of assets with respect to the GA Reinsurance Transaction, which are classified as fair value through other comprehensive income (“FVOCI”), lower-than-expected returns on ALDA<br>mainly related to real estate, a charge from derivatives and hedge accounting ineffectiveness and a charge from unfavourable foreign exchange impacts. These were partially offset by a gain from higher-than-expected returns on public equity. Market<br>experience was a net charge of $65 million in 1Q23 primarily driven by lower-than-expected returns on ALDA related to real estate and private equity, and net realized losses from the sale of debt instruments which are classified as FVOCI. These<br>were partially offset by higher-than-expected returns on public equity, favourable foreign exchange impacts and a modest net gain from derivatives and hedge accounting ineffectiveness.
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^(2)^	The 1Q24 net charge of $109 million mainly included a charge of $70 million resulting from the GA Reinsurance<br>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. The 1Q23 net charge of $60 million mainly included a<br>charge of $33 million related to legal settlements in U.S. and a charge of $28 million related to a jurisdictional adjustment to a deferred tax asset in Corporate and Other.
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Net income attributed to shareholders by segment is presented in the following table.

Net income attributed to shareholders by segment	Quarterly Results
($ millions, unaudited)	1Q24		4Q23		1Q23
Asia	$	363	$	615	$	519
Canada	****	273		365		309
U.S.	****	(108)		198		186
Global Wealth and Asset Management	****	365		365		297
Corporate and Other	****	(27)		116		95
Total net income attributed to shareholders	$	866	$	1,659	$	1,406
Manulife Financial Corporation – First Quarter 2024	8
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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”). Core expenses exclude certain expenses directly attributable to acquiring new business that are capitalized into the CSM instead of flowing directly through core earnings.

The expense efficiency ratio was 45.1% in 1Q24, compared with 47.1% in 1Q23. The 2.0 percentage point improvement in the ratio compared with 1Q23 reflects a 15% increase in pre-tax core earnings^1^, and a 5% increase in core expenses. The increase in core expenses was driven by higher workforce-related costs, including long-term incentive compensation, reflecting strong TSR performance relative to peers, and performance related costs reflecting strong business performance.

Total 1Q24 general expenses increased 2% both on an actual exchange rate basis and on a constant exchange rate basis compared with 1Q23, driven by the items noted above related to the increase in core expenses and items outside of core earnings. General expenses excluded from core earnings were not material in 1Q24, and in 1Q23, consisted primarily of a true-up of an existing legal provision in 1Q23.

A2	Business performance

---	---	---	---	---	---
( millions, unless otherwise stated) (unaudited)		4Q23		1Q23
Asia APE sales	1,281	$	995	$	1,173
Canada APE sales	450		363		293
U.S. APE sales	152		192		134
Total APE sales(1)	1,883		1,550		1,600
Asia new business value	463		417		372
Canada new business value	157		139		92
U.S. new business value	49		74		45
Total new business value(1)	669		630		509
Asia new business CSM(2)	491		414		301
Canada new business CSM	70		70		46
U.S. new business CSM	97		142		95
Total new business CSM(2)	658		626		442
Asia CSM net of NCI	13,208		12,617		9,678
Canada CSM	4,205		4,060		3,659
U.S. CSM	3,649		3,738		4,080
Corporate and Other CSM	27		25		50
Total CSM net of NCI	21,089		20,440		17,467
Post-tax CSM net of NCI(3)	18,547		17,748		14,850
Global WAM gross flows ( billions)(1)	45.4		35.1		38.8
Global WAM net flows ( billions)(1)	6.7		(1.3)		4.4
Global WAM assets under management and administration ( billions)(3)	911.4		849.2		814.5
Global WAM total invested assets ( billions)	8.1		7.1		5.6
Global WAM segregated funds net assets ( billions)	266.2		248.1		235.6
Total assets under management and administration ( billions)(3),(4)	1,450.0		1,388.8		1,349.9
Total invested assets ( billions)(4)	410.7		417.2		412.5
Segregated funds net assets ( billions)(4)	402.1		377.5		364.0

All values are in US Dollars.

^(1)^ For more information on this<br>metric, see “Non-GAAP and other financial measures” below.<br> <br>^(2)^ New business CSM is net of NCI.<br> <br>^(3)^ This item is a non-GAAP financial measure. See “Non-GAAP and other financial measures” below<br>for more information.<br> <br>^(4)^ See section A4 below for more<br>information.
^1^	This is a non-GAAP financial measure. See “Non-GAAP and other financial measures” below for more information.<br>
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Manulife Financial Corporation – First Quarter 2024	9
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Annualized premium equivalent ( “ APE ” ) sales were $1.9 billion in 1Q24, an increase of 21%^1^ compared with 1Q23, new business value ( “ NBV ” ) was $669 million in 1Q24, an increase of 34%^1^ compared with 1Q23 and new business CSM was $658 million, an increase of 52% compared with 1Q23. New business results by segment were as follows:

•	In Asia, APE sales increased 13% compared with 1Q23, driven by growth in Asia Other^2^ and Japan, partially offset by lower sales in Hong Kong. Business mix and the impact of updates to actuarial methods and assumptions in the second half of 2023 further contributed to a 68% increase<br>in new business CSM compared with 1Q23. NBV also increased 28% compared with 1Q23.
•	Canada generated 54% growth in APE sales compared with 1Q23, driven by higher sales volumes in all business units, led by<br>large-case Group Insurance sales. Combined with margin expansion in our insurance businesses, NBV and new business CSM increased 71% and 52%, respectively compared with 1Q23.
---	---
•	In the U.S., APE sales increased 14% compared with 1Q23, reflecting an increase in demand from affluent customers for<br>accumulation insurance products. Combined with product mix, this led to a 3% and 9% increase in new business CSM and NBV, respectively, compared with 1Q23.
---	---

The contractual service margin (“CSM”) net of NCI was $21,089 million as at March 31, 2024, an increase of $649 million compared with December 31, 2023. Organic CSM movement was an increase of $314 million in 1Q24, primarily driven by the impact of new business and interest accretion, partially offset by amortization recognized in core earnings. Insurance experience improved compared with both the fourth quarter of 2023 and 1Q23. Inorganic CSM movement was an increase of $335 million in 1Q24, primarily driven by the favourable impacts of equity market performance and changes in foreign currency exchange rates, partially offset by the impact of the GA Reinsurance Transaction.

Global WAM reported net in flows were $6.7 billion in 1Q24 compared with net inflows of $4.4 billion in 1Q23:

•	Retirement net inflows of $3.2 billion in 1Q24 increased from net inflows of $1.2 billion in 1Q23, reflecting<br>higher new retirement plan sales across our three geographies.
•	Retail net inflows of $1.7 billion in 1Q24 increased from net inflows of $0.8 billion in 1Q23, driven by<br>increased demand for investment products amid equity market recovery and improved investor sentiment.
---	---
•	Institutional Asset Management net inflows of $1.8 billion in 1Q24 decreased compared with net inflows of<br>$2.5 billion in 1Q23, as higher fixed income mandates sales and lower money market redemptions were more than offset by higher redemptions in fixed income and equity mandates.
---	---
A3	Financial strength
---	---
	Quarterly Results
---	---	---	---	---	---	---
(unaudited)	1Q24		4Q23		1Q23
MLI’s LICAT ratio^(1)^	****	138%		137%		138%
Financial leverage ratio^(2)^	****	24.3%		24.3%		26.0%
Consolidated capital ($ billions)^(3)^	$	76.4	$	73.9	$	71.6
Book value per common share ($)	$	23.09	$	22.36	$	22.01
Adjusted book value per common share ($)^(2)^	$	33.39	$	32.19	$	30.04
^(1)^This item is disclosed under<br>OSFI’s Life Insurance Capital Adequacy Test Public Disclosure Requirements guideline.<br> <br>^(2)^This item is a non-GAAP ratio. See “Non-GAAP and other financial measures” below for more<br>information.<br> <br>^(3)^This item is a capital management measure.<br>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, 2024 was 138% compared with 137% as at December 31, 2023. The 1 percentage point increase was driven by a capital issuance, partially offset by market movements and common share buybacks.

^1^ Percentage growth / declines in APE sales and NBV are stated<br>on a constant exchange rate basis.<br> <br>^2^ Asia Other excludes<br>Hong Kong and Japan.
Manulife Financial Corporation – First Quarter 2024	10
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MFC’s LICAT ratio was 126% as at March 31, 2024 compared with 124% as at December 31, 2023, 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, 2024 was largely due to the $6.2 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 ’ sfinancial leverage ratio as at March 31, 2024 was 24.3%, in line with the ratio as at December 31, 2023. The impact of the net issuance of capital instruments^1^ was offset by an increase in total equity and higher post-tax CSM.^2^ The increase in total equity was mainly from 1Q24 total comprehensive income, partially offset by dividends.

MFC ’ s consolidated capital was $76.4 billion as at March 31, 2024, an increase of $2.5 billion compared with $73.9 billion as at December 31, 2023. The increase was primarily driven by an increase in total equity, higher post-tax CSM, and net issuance of capital instruments.^1^ The increase in total equity was from 1Q24 total comprehensive income, partially offset by dividends and common share buybacks.

Cash and cash equivalents and marketable securities^3^ was $242.1 billion as at March 31, 2024 compared with $250.7 billion as at December 31, 2023. The decrease was primarily driven by the lower market value of debt instruments due to higher interest rates.

Book value per common share as at March 31, 2024 was $23.09, a 3% increase compared with $22.36 as at December 31, 2023. The number of common shares outstanding was 1,801 million as at March 31, 2024, a net decrease of 5 million shares from 1,806 million as at December 31, 2023, primarily driven by common share buybacks.

Adjusted book value per common share as at March 31, 2024 was $33.39, a 4% increase compared with $32.19 as at December 31, 2023 driven by an increase in the adjusted book value^4^ and a lower number of common shares outstanding. Adjusted book value increased $2.0 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.

A4	Assets under management and administration (“AUMA”)

AUMA as at March 31, 2024 was $1.4 trillion, an increase of 3% compared with December 31, 2023, primarily due to the favourable impact of interest rates and equity markets and net inflows. Total invested assets decreased 2% on an actual exchange rate basis, primarily due to the transfer of invested assets related to the GA Reinsurance Transaction. Segregated funds net assets increased 7% on an actual exchange rate basis, primarily due to the impact of equity markets.

A5	Impact of foreign currency exchange rates

Changes in foreign currency exchange rates from 1Q23 to 1Q24 reduced core earnings by $27 million in 1Q24, primarily due to a stronger Canadian dollar relative to the Japanese Yen. The impact of foreign currency exchange rates on items excluded from core earnings does not provide relevant information given the nature of those items.

^1^ The net issuance of subordinated debt<br>consists of the issuance of $1.1 billion of subordinated debt and the redemption of $0.6 billion of JHUSA Surplus Notes in the first quarter of 2024.<br><br><br>^2^ This item is a non-GAAP financial measure. See “Non-GAAP<br>and other financial measures” below for more information.<br><br><br>^3^ Includes cash & cash equivalents, comprised of cash on<br>deposit, Canadian and U.S. Treasury Bills and high quality short-term investments, and marketable assets, comprised of investment grade government and agency bonds, investment grade corporate bonds, investment grade securitized instruments, publicly<br>traded common stocks and preferred shares.<br> <br>^4^ This item is a<br>non-GAAP financial measure. See “Non-GAAP and other financial measures” below for more information.
Manulife Financial Corporation – First Quarter 2024	11
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^1^ The net issuance of subordinated debt consists of the issuance of $1.1 billion of subordinated debt and the redemption of $0.6 billion of JHUSA Surplus Notes in the first quarter of 2024. ^2^ This item is a non-GAAP financial measure. See “Non-GAAP and other financial measures” below for more information. ^3^ Includes cash & cash equivalents, comprised of cash on deposit, Canadian and U.S. Treasury Bills and high quality short-term investments, and marketable assets, comprised of investment grade government and agency bonds, investment grade corporate bonds, investment grade securitized instruments, publicly traded common stocks and preferred shares. ^4^ This item is a non-GAAP financial measure. See “Non-GAAP and other financial measures” below for more information.

Manulife Financial Corporation – First Quarter 2024

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A6	Business highlights

We are delivering against our strategy to optimize our portfolio

We are enhancing our digital leadership, delivering better customer experience andsuperior distribution capabilities

In Global WAM, we completed the implementation of a new advisor retail wealth platform in Canada as part of our digital transformation strategy representing more than $54 billion in AUMA by leveraging an industry leading technology platform. The platform delivers an enhanced advisor and client experience and enables advisors to streamline their processes.

We are helping our customers live longer, healthier, and better lives

In the U.S., we drove a 43% improvement compared with 1Q23 in the number of visits to the Vitality page of JohnHancock.com supported by the launch of Your Year in Wellness – our first social-sharing campaign to raise awareness about the value of John Hancock Vitality.

^1^ RGA Life Reinsurance Company of Canada. Insurance contract<br>net liabilities as of March 31, 2024.<br> <br>^2^ See “Caution<br>regarding forward-looking statements” below. Expected capital release and earnings multiple estimates were as of December 31, 2023.
Manulife Financial Corporation – First Quarter 2024	12
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A7	Embedded value

Embedded value was $61.0 billion or $33.78 per common share, as of December 31, 2023, compared with $59.4 billion or $31.87 per common share as of January 1, 2023.^1^ More information about embedded value can be found in our 2023 Embedded Value report, which is available on our website.

A8	Normal course issuer bid update

On February 20, 2024, we received approval from the Toronto Stock Exchange (“TSX”) to launch a normal course issuer bid (“NCIB”) that permits the purchase for cancellation of up to 50 million common shares, representing approximately 2.8% of issued and outstanding common shares. Purchases under the NCIB commenced on February 23, 2024 and may continue until February 22, 2025, when the NCIB expires, or such earlier date as we complete our purchases. During the three months ended March 31, 2024, we purchased for cancellation 6.2 million shares for $203 million.

On May 7, 2024, we announced that the TSX approved an amendment to the existing NCIB to increase the number of common shares that we may repurchase for cancellation from up to 50 million common shares (approximately 2.8% of shares outstanding) to up to 90 million common shares (approximately 5% of shares outstanding as at February 12, 2024).

B	PERFORMANCE BY SEGMENT
B1	Asia
---	---
( millions, unless otherwise stated)
---	---	---	---	---	---
Canadian dollars
Profitability:
Net income attributed to shareholders	363		615		519
Core earnings(1)	657		564		489
Business performance:
Annualized premium equivalent sales	1,281		995		1,173
New business value	463		417		372
New business contractual service margin	491		414		301
Contractual service margin	13,208		12,617		9,678
Assets under management ( billions)(2)	170.9		169.3		162.2
Total invested assets ( billions)	144.7		144.4		138.0
Segregated funds net assets ( billions)	26.2		24.9		24.2
U.S. dollars
Profitability:
Net income attributed to shareholders	270	US	452	US	384
Core earnings(1)	488		414		361
Business performance:
Annualized premium equivalent sales	950		731		868
New business value	343		306		275
New business contractual service margin	364		303		222
Contractual service margin	9,748		9,570		7,156
Assets under management ( billions)(2)	126.2		128.4		119.9
Total invested assets ( billions)	106.9		109.5		102.0
Segregated funds net assets ( billions)	19.3		18.9		17.9

All values are in US Dollars.

^(1)^^^See “Non-GAAP and other financial measures” below for a reconciliation of quarterly core earnings to net income (loss) attributed to<br>shareholders.<br> <br>^(2)^This item is a non-GAAP financial measure. See “Non-GAAP and other financial measures” below for more information.
^1^	January 1, 2023 and December 31, 2023 embedded value results reflect updates to the calculation methodology. See<br>“Non-GAAP and other financial measures” below for more information.
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Manulife Financial Corporation – First Quarter 2024	13
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Asia ’ s net income attributed to shareholders was $363 million in 1Q24 compared with $519 million in 1Q23. Net income attributed to shareholders is comprised of core earnings, which were $657 million in 1Q24 compared with $489 million in 1Q23, and items excluded from core earnings, which amounted to a net charge of $294 million in 1Q24 compared with a net gain of $30 million in 1Q23. 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 changes in core earnings expressed in Canadian dollars were due to the factors described below and additionally, reflected a net $24 million unfavourable 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$270 million in 1Q24 compared with US$384 million in 1Q23. Core earnings were US$488 million in 1Q24 compared with US$361 million in 1Q23, and items excluded from core earnings were a net charge of US$218 million in 1Q24 compared with a net gain of US$23 million in 1Q23.

Core earnings in 1Q24 increased 39% compared with 1Q23, driven by an increase in expected earnings on insurance contracts, favourable claims experience, and higher expected investment income due to business growth and higher investment yields. The increase in expected earnings on insurance contracts was driven primarily by the net impact of updates to actuarial methods and assumptions on our CSM and risk adjustment in the second half of 2023, and business growth. Investment income on allocated capital also increased core earnings by US$19 million compared with 1Q23 (see Corporate and Other segment). In addition, the GA Reinsurance Transaction increased core earnings by US$6 million in 1Q24 driven by a release of ECL provisions on assets sold and higher expected investment earnings due to the timing of asset realignment, partially offset by foregone earnings.

APE sales were US$950 million in 1Q24, an increase of 13% compared with 1Q23, driven by growth in Asia Other and Japan, partially offset by lower sales in Hong Kong. NBV was US$343 million in 1Q24, an increase of 28% compared with 1Q23, driven by higher sales volumes and business mix. New business value margin (“NBV margin”)^1^was 44.4% in 1Q24 compared with 37.3% in 1Q23. New business CSM was US$364 million in 1Q24, an increase of 68% compared with 1Q23, due to higher sales volumes, business mix and the impact of updates to actuarial methods and assumptions in the second half of 2023.

•	Hong Kong APE sales were US$190 million in 1Q24, a decrease of 10% compared with 1Q23 reflecting lower mainland<br>Chinese visitor sales through the broker channel, partially offset by higher sales in the bancassurance channel. Hong Kong NBV was US$128 million in 1Q24, an increase of 15% compared with 1Q23 due to product mix, partially offset by lower sales<br>volumes. Hong Kong NBV margin was 67.7% in 1Q24, an increase of 15.5 percentage points compared with 1Q23. Hong Kong new business CSM was US$124 million in 1Q24, an increase of 41%, compared with 1Q23 due to product mix and the impact of<br>updates to actuarial methods and assumptions in the second half of 2023, partially offset by lower sales volumes.
•	Japan APE sales were US$76 million in 1Q24, an increase of 23% compared with 1Q23, reflecting higher sales in other<br>wealth products. Japan NBV was US$39 million in 1Q24, an increase of 54% compared with 1Q23 due to higher sales volumes and product mix. Japan NBV margin was 50.9% in 1Q24, an increase of 10.1 percentage points compared with 1Q23. Japan new<br>business CSM was US$36 million in 1Q24, an increase of 51% compared with 1Q23, due to higher sales volumes, product mix and the impact of updates to actuarial methods and assumptions in the second half of 2023, partially offset by model<br>refinements in the second quarter of 2023.
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^1^	For more information on this metric, see “Non-GAAP and other financial measures” below.
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Manulife Financial Corporation – First Quarter 2024	14
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•

Asia Other APE sales were US$684 million in 1Q24, an increase of 20% compared with 1Q23. Higher sales in mainland China, primarily driven by the bancassurance channel, and higher sales in Singapore across all channels were partially offset by lower agency and bancassurance sales in Vietnam. Asia Other NBV was US$176 million in 1Q24, an increase of 33% compared with 1Q23, due to higher sales volumes and product mix. Asia Other NBV margin was 34.8% in 1Q24, an increase of 5.0 percentage points compared with 1Q23. Asia Other new business CSM was US$204 million in 1Q24, an increase of 94% compared with 1Q23, driven by higher sales volumes, product mix and the impact of updates to actuarial methods and assumptions in the second half of 2023.

CSM net of NCI was US$9,748 million as at March 31, 2024, representing an increase of US$178 million compared with December 31, 2023. Organic CSM movement was an increase of US$163 million in 1Q24, driven by the impact of new business and interest accretion, partially offset by amortization recognized in core earnings and a net reduction from insurance experience. The inorganic CSM movement was an increase of US$15 million in 1Q24, largely driven by the impact of equity market performance on certain participating contracts, partially offset by strengthening of the U.S. dollar against Asian currencies. There were no material impacts to CSM net of NCI from the GA Reinsurance Transaction.

Assets under management of US$126.2 billion as at March 31, 2024, were in line with December 31, 2023. The increase was due to lower interest rates and positive equity market performance on invested assets and segregated funds net assets, and was offset by the transfer of invested assets related to the GA Reinsurance Transaction.

Business highlights – In 1Q24, we:

•	continued to roll out our top-tier recognition and activation program, Manulife<br>Pro, across the region with the recent expansion to Indonesia and Japan. The program provides selected agents with differentiated resources and tools, including dedicated underwriting support and enhanced customer engagement services with access to<br>customer leads. Manulife Pro has proven successful in Singapore where the 2023 cohort has shown great momentum in enabling our top-tier agents to improve productivity and qualify for the Million Dollar Round<br>Table award; and
•	completed the roll-out of M-Pro, a first-in-market digital pre-issuance verification tool, to all distribution channels in Vietnam.<br>M-Pro has further improved customer experience and we have received outstanding feedback on the ease of navigating policy issuance details, ability to review crucial policy information and transparency of the<br>consultation process.
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B2	Canada
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---	---	---	---	---	---
( millions, unless otherwise stated)		4Q23		1Q23
Profitability:
Net income attributed to shareholders	273	$	365	$	309
Core earnings(1)	364		352		353
Business performance:
Annualized premium equivalent sales	450		363		293
Contractual service margin	4,205		4,060		3,659
Manulife Bank average net lending assets (<br>billions)(2)	25.4		25.2		24.8
Assets under management ( billions)	146.7		147.5		143.9
Total invested assets ( billions)	109.5		111.5		107.5
Segregated funds net assets ( billions)	37.2		36.1		36.4

All values are in US Dollars.

^(1)^	See “Non-GAAP and other financial measures” below for a reconciliation<br>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<br>information.
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Manulife Financial Corporation – First Quarter 2024	15
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Canada’s net income attributed to shareholders was $273 million in 1Q24 compared with $309 million in 1Q23. Net income attributed to shareholders is comprised of core earnings, which were $363 million in 1Q24 compared with $353 million in 1Q23, and items excluded from core earnings, which amounted to a net charge of $91 million in 1Q24 compared with a net charge of $44 million in 1Q23. 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.

Core earnings in 1Q24 increased $11 million or 3% compared with 1Q23, reflecting business growth in our insurance businesses, a release in the provision for ECL in 1Q24 compared with charges in 1Q23 and favourable insurance experience in Group Insurance. These amounts were partially offset by lower investment spreads, and more unfavourable insurance experience in Individual Insurance.

APE sales of $450 million in 1Q24 increased by $157 million or 54% compared with 1Q23.

•	Individual insurance APE sales of $109 million in 1Q24 increased $8 million or 8% compared with 1Q23, primarily<br>due to higher participating life insurance sales.
•	Group insurance APE sales of $273 million in 1Q24 increased $140 million or 105% compared with 1Q23, driven by<br>higher sales across all markets, led by large-case sales.
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•	Annuities APE sales of $68 million in 1Q24 increased $9 million or 15% compared with 1Q23, primarily due to<br>higher segregated fund and fixed annuity sales.
---	---

CSM was $4,205 million as at March 31, 2024, representing an increase of $145 million compared with December 31, 2023. Organic CSM movement was an increase of $26 million in 1Q24, driven by the impact of new business and interest accretion, partially offset by amortization recognized in core earnings. Inorganic CSM movement was an increase of $119 million in 1Q24, primarily related to favourable equity market experience on certain variable annuity contracts.

Manulife Bank average net lending assets for the quarter were $25.4 billion as at March 31, 2024, up $0.2 billion or 1% compared with December 31, 2023, driven by improved retention and business growth.

Assets under management were $146.7 billion as at March 31, 2024, in line with December 31, 2023, due to lower total invested assets, reflecting the impact of higher interest rates, partially offset by higher segregated fund net assets, primarily related to equity market performance.

Business highlights – In 1Q24, we:

•	continued our transformation journey by entering into the largest universal life reinsurance transaction in Canada. The<br>transaction, which successfully closed on April 2, 2024, transferred $5.6 billion of insurance contract net liabilities to RGA Canada^1^. The expected capital release of $0.8 billion<br>represents an attractive 16.2 times earnings multiple and will be returned to shareholders through an ordinary share repurchase program^2^;
•	entered into a multi-year loyalty rewards partnership agreement with Aeroplan. Beginning in early summer 2024, eligible<br>Manulife group benefits members will be able to earn rewards points using our group benefits digital platforms by engaging in behaviours and activities that encourage health and well-being; and
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•	continued our commitment to empowering sustainable health and well-being with charitable donations to the Centre for<br>Addiction and Mental Health, supporting women’s mental health and well-being, and to the St. Mary’s General Hospital PREVENT Clinic, focused on preventing cardiac events.
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^1^ RGA Life Reinsurance Company of Canada. Insurance contract<br>net liabilities as of March 31, 2024.<br> <br>^2^ See<br>“Caution regarding forward-looking statements” below. Expected capital release and earnings multiple estimates were as of December 31, 2023.
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Manulife Financial Corporation – First Quarter 2024	16
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B3	U.S.
( millions, unless otherwise stated)
---	---	---	---	---	---
Canadian dollars
Profitability:
Net income (loss) attributed to shareholders	(108)		198		186
Core earnings(1)	452		474		385
Business performance:
Annualized premium equivalent sales	152		192		134
Contractual service margin	3,649		3,738		4,080
Assets under management ( billions)	202.4		202.5		204.4
Total invested assets ( billions)	129.9		134.0		136.5
Segregated funds invested net assets ( billions)	72.5		68.5		67.9
U.S. dollars
Profitability:
Net income (loss) attributed to shareholders	(80)	US	146	US	138
Core earnings(1)	335		349		285
Business performance:
Annualized premium equivalent sales	113		141		99
Contractual service margin	2,691		2,828		3,016
Assets under management ( billions)	149.6		153.6		151.0
Total invested assets ( billions)	96.0		101.6		100.8
Segregated funds invested net assets ( billions)	53.6		52.0		50.2

All values are in US Dollars.

^(1)^	See “Non-GAAP and other financial measures” below for a reconciliation<br>of quarterly core earnings to net income (loss) attributed to shareholders.

U.S. ’ s net loss attributed to shareholderswas $108 million in 1Q24 compared with net income attributed to shareholders of $186 million in 1Q23. Net income (loss) attributed to shareholders is comprised of core earnings, which were $452 million in 1Q24 compared with $385 million in 1Q23, and items excluded from core earnings, which amounted to a net charge of $560 million in 1Q24 compared with a net charge of $199 million in 1Q23. 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 changes in core earnings expressed in Canadian dollars were due to the factors described below. The impact on core earnings from the change in the foreign currency rate of the U.S. dollar compared with the Canadian dollar was immaterial.

Expressed in U.S. dollars, the functional currency of the segment, the net loss attributed to shareholders was US$80 million in 1Q24 compared with net income attributed to shareholders of US$138 million in 1Q23. Core earnings were US$335 million in 1Q24 compared with US$285 million in 1Q23 and items excluded from core earnings were a net charge of US$415 million in 1Q24 compared with a net charge of US$147 million in 1Q23.

Core earnings in 1Q24 increased US$50 million or 18% compared with 1Q23 reflecting an increase in the ECL provision in 1Q23 and higher expected investment earnings due to higher yields and business growth. These impacts were partially offset by more unfavourable net insurance experience, primarily due to more unfavourable claims experience in long-term care and lapse experience in life. In addition, the GA Reinsurance Transaction reduced core earnings by US$19 million reflecting foregone earnings, primarily from expected earnings on insurance contracts and expected investment earnings, partially offset by a release of ECL provisions on assets sold.

APE sales of US$113 million in 1Q24 increased 14% compared with 1Q23, reflecting an increase in demand from affluent customers for accumulation insurance products. APE sales of products with the John Hancock Vitality PLUS feature represented 81% of overall U.S. sales in 1Q24 compared with 74% in 1Q23.

Manulife Financial Corporation – First Quarter 2024	17

CSM was US$2,691 million as at March 31, 2024, representing a decrease of US$137 million compared with December 31, 2023. Organic CSM movement was an increase of US$50 million in 1Q24, driven by the impact of new business, interest accretion, and net favourable insurance experience, partially offset by amortization recognized in core earnings. The net favourable insurance experience in organic CSM movement was mainly due to long-term care and annuities claims experience, partially offset by life insurance lapse experience. Inorganic CSM movement was a decrease of US$187 million in 1Q24, mainly due to the impact of the GA Reinsurance Transaction, partially offset by favourable market impacts from equity market experience and higher interest rates primarily on variable annuity contracts.

Assets under management were US$149.6 billion as at March 31, 2024, a decrease of US$4.0 billion or 3% compared with December 31, 2023. The decrease in total invested assets was primarily due to the transfer of invested assets related to the GA Reinsurance Transaction, partially offset by the net impact from interest rate and equity markets. The increase in the segregated funds net assets was primarily due to the net impact from interest rate and equity markets.

Business highlights – In 1Q24, we:

•	accelerated our distribution team’s ability to act on sales opportunities and improved their efficiency in assisting<br>agents by implementing JHINI – our new, AI-powered, sales enablement tool;
•	streamlined our underwriting process and improved our customers’ experience by expanding our usage of electronic<br>health records and leveraging other types of underwriting evidence, which have allowed us to eliminate certain medical test requirements for all ages and face amounts; and
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•	drove a 43% improvement compared with 1Q23 in the number of visits to the Vitality page of JohnHancock.com supported by the<br>launch of Your Year in Wellness – our first social-sharing campaign to raise awareness about the value of John Hancock Vitality.
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B4	Global Wealth and Asset Management
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---	---	---	---	---	---
( millions, unless otherwise stated)		4Q23
Profitability:
Net income attributed to shareholders	365	$	365		297
Core earnings(1)	357		353		287
Core EBITDA(2)	477		474		393
Core EBITDA margin (%)(3)	25.5%		25.7%		22.4%
Business performance:
Sales
Wealth and asset management gross flows	45,444		35,148		38,815
Wealth and asset management net flows	6,723		(1,284)		4,440
Assets under management and administration ( billions)	911.4		849.2		814.5
Total invested assets ( billions)	8.1		7.1		5.6
Segregated funds net assets ( billions)	266.2		248.1		235.6
Global WAM managed AUMA ( billions)(2)	1,123.0		1,055.0		1,022.5
Average assets under management and administration (<br>billions)	879.8		816.7		804.5

All values are in US Dollars.

^(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 $365 million in 1Q24 compared with $297 million in 1Q23. Net income attributed to shareholders is comprised of core earnings, which were $357 million in 1Q24 compared with $287 million in 1Q23, and items excluded from core earnings, which amounted to a net gain of $8 million in 1Q24 compared with a net gain of $10 million in 1Q23. 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.

Manulife Financial Corporation – First Quarter 2024	18

Core earnings increased $70 million or 25% compared with 1Q23, driven by an increase in net fee income from higher average AUMA resulting from the favourable impact of markets and net inflows, and disciplined expense management. In addition, investment income on allocated capital increased core earnings by $9 million compared with 1Q23 (see Corporate and Other segment).

Core EBITDA was $477 million in 1Q24, an increase of 22% compared with 1Q23, and core EBITDA margin was 25.5% in 1Q24, an increase of 310 basis points compared with 1Q23, both driven by strong growth and disciplined expense management. See section E3 “Non-GAAP and other financial measures” below, for additional information on core EBITDA and core EBITDA margin.

Net inflows were $6.7 billion in 1Q24 compared with net inflows of $4.4 billion in 1Q23. By business line, the results were:

•	Retirement net inflows of $3.2 billion in 1Q24, increased from net inflows of $1.2 billion in 1Q23, reflecting<br>higher new retirement plan sales across our three geographies.
•	Retail net inflows of $1.7 billion in 1Q24, increased compared with net inflows of $0.8 billion in 1Q23, driven<br>by increased demand for investment products amid equity market recovery and improved investor sentiment.
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•	Institutional Asset Management net inflows of $1.8 billion in 1Q24, declined from net inflows of $2.5 billion in<br>1Q23, as higher fixed income mandate sales and lower money market redemptions were more than offset by higher redemptions in fixed income and equity mandates.
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Assets under management and administration of $911.4 billion as at March 31, 2024 increased 6% compared with December 31, 2023. The increase was driven by the favourable impact of equity markets and net inflows. As at March 31, 2024, Global WAM also managed $211.5 billion in assets for the Company’s non-WAM reporting segments. Including those managed assets, Global WAM managed AUMA was $1,123.0 billion compared with $1,055.0 billion as at December 31, 2023.

Segregated funds net assets were $266.2 billion as at March 31, 2024, 7% higher compared with December 31, 2023 on an actual exchange rate basis, driven by favourable impact of equity markets and the strengthening of the U.S. dollar compared with the Canadian dollar.

Business highlights – In 1Q24, we:

•	announced the closing of a $1.0 billion institutional fund - Manulife Capital Partners VII. The fund will invest in<br>U.S. middle market companies across multiple industries, focusing on growth and high-yield opportunities. Manulife Investment Management’s private equity and credit platform now has more than US$25 billion in AUM and unfunded commitments;<br>
•	partnered with the Indonesia Investment Authority sovereign wealth fund to raise and manage funds for investment. The<br>partnership involves co-investments between the sovereign wealth fund, Manulife, and third-party investors into the Indonesian infrastructure, real estate, and the natural capital sectors, which include<br>timberland and agriculture assets; and
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•	completed the implementation of a new advisor retail wealth platform in Canada as part of our digital transformation<br>strategy representing more than $54 billion in AUMA by leveraging an industry leading technology platform. The platform delivers an enhanced advisor and client experience and enables advisors to streamline their processes by digitizing<br>administrative tasks to improve their efficiency, freeing up more capacity for meaningful client interactions which will allow them to further grow.
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Manulife Financial Corporation – First Quarter 2024	19
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B5	Corporate and Other
	Quarterly Results
---	---	---	---	---	---	---
($ millions, unless otherwise stated)	1Q24
Net income (loss) attributed to shareholders	$	(27)		116		95
Core earnings<br>(loss)^(1)^	****	(76)		30		17

All values are in US Dollars.

^(1)^	See “Non-GAAP and other financial measures” below for a reconciliation<br>of quarterly core earnings to net income (loss) attributed to shareholders.

Corporate and Other is composed 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 toshareholders of $27 million in 1Q24 compared with net income attributed to shareholders of $95 million in 1Q23. Net income (loss) attributed to shareholders is comprised of core earnings, which was a core loss of $76 million in 1Q24 compared with core earnings of $17 million in 1Q23, and the items excluded from core earnings which amounted to a net gain of $49 million in 1Q24 compared with a net gain of $78 million in 1Q23. 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 $93 million decline in core earnings was primarily related to higher interest on allocated capital to operating segments, primarily Asia and Global WAM, higher core expenses due to higher workforce-related costs, reflecting strong TSR performance relative to peers and business performance and the non-recurrence of 1Q23 gains in our P&C Reinsurance business from updates to provisions for estimated losses.

C	RISK MANAGEMENT AND RISK FACTORS UPDATE

This section provides an update to our risk management practices and risk factors outlined in the 2023 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.

C1	Variable annuity and segregated fund guarantees
As described in the MD&A in our 2023 Annual Report, guarantees on variable annuity products and segregated funds may include one or more of death,<br>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<br>market levels, liabilities on current in-force business would be due primarily in the period from 2024 to 2044.
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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<br>through the combination of our dynamic and macro hedging strategies (see section C3 “Publicly traded equity performance risk sensitivities and exposure measures” below).
Manulife Financial Corporation – First Quarter 2024	20
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The table below shows selected information regarding the Company’s variable annuity and segregated fund investment-related guarantees gross and net<br>of reinsurance.

Variable annuity and segregated fund guarantees, net of reinsurance

	March 31, 2024						December 31, 2023
As at<br><br><br>($ millions)	Guarantee<br><br><br>value^(1)^		Fund<br>value		Net amount at<br><br><br>risk^(1),(2),(3)^		Guarantee<br>value^(1)^		Fund<br>value		Net amount at<br><br><br>risk^(1),(2),(3)^
Guaranteed minimum income benefit	$	3,718	$	2,808	$	968	$	3,864	$	2,735	$	1,156
Guaranteed minimum withdrawal benefit	****	34,563	****	34,001	****	3,667		34,833		33,198		4,093
Guaranteed<br>minimum accumulation benefit	****	18,972	****	19,021	****	99		18,996		19,025		116
Gross living benefits^(4)^	****	57,253	****	55,830	****	4,734		57,693		54,958		5,365
Gross death<br>benefits^(5)^	****	9,006	****	18,798	****	715		9,133		17,279		975
Total gross of<br>reinsurance	****	66,259	****	74,628	****	5,449		66,826		72,237		6,340
Living benefits reinsured	****	24,243	****	24,124	****	3,052		24,208		23,146		3,395
Death benefits<br>reinsured	****	3,407	****	2,698	****	326		3,400		2,576		482
Total<br>reinsured	****	27,650	****	26,822	****	3,378		27,608		25,722		3,877
Total, netof reinsurance	$	38,609	$	47,806	$	2,071	$	39,218	$	46,515	$	2,463
^(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.
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^(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<br>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<br>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<br>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<br>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, 2024 was $2,071 million (December 31, 2023 – $2,463 million) of which: US$318 million (December 31, 2023 – US$391 million) was on our U.S. business,<br>$1,371 million (December 31, 2023 – $1,559 million) was on our Canadian business, US$103 million (December 31, 2023 – US$140 million) was on our Japan business and US$97 million (December 31, 2023 – US$155 million) was<br>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 standalone guarantees and guarantees in excess of living benefit guarantees where both death and living benefits are provided on a policy.
C2	Caution related to sensitivities
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In this document, we provide sensitivities and risk exposure measures for certain risks. These include sensitivities due to specific changes in market<br>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<br>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<br>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<br>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<br>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<br>indicated.
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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.

Manulife Financial Corporation – First Quarter 2024	21

C3	Publicly traded equity performance risk sensitivities and exposure measures

As outlined in our 2023 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 62 of our 2023 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 following tables 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, the 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 assumptions did not change from the previous period.

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.

Manulife Financial Corporation – First Quarter 2024	22

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

As at March 31, 2024	Net income attributed to shareholders
($ millions)	-30%		-20%		-10%		+10%		+20%		+30%
Underlying sensitivity
Variable annuity and segregated fund guarantees^(2)^	$	(2,140)	$	(1,300)	$	(590)	$	490	$	890	$	1,230
General fund<br>equity investments^(3)^	****	(1,300)	****	(870)	****	(430)	****	430	****	870	****	1,300
Total underlying sensitivity before<br>hedging	****	(3,440)	****	(2,170)	****	(1,020)	****	920	****	1,760	****	2,530
Impact of macro<br>and dynamic hedge assets^(4)^	****	750	****	450	****	200	****	(160)	****	(280)	****	(380)
Net potential impact on net income attributed to<br>shareholders after impact of hedging and before impact of reinsurance	****	(2,690)	****	(1,720)	****	(820)	****	760	****	1,480	****	2,150
Impact of<br>reinsurance	****	1,370	****	840	****	390	****	(320)	****	(600)	****	(850)
Netpotential impact on net income attributed to shareholders after impact of hedging and reinsurance	$	(1,320)	$	(880)	$	(430)	$	440	$	880	$	1,300
As at December 31, 2023	Net income attributed to shareholders
($ millions)	-30%		-20%		-10%		+10%		+20%		+30%
Underlying sensitivity
Variable annuity and segregated fund guarantees^(2)^	$	(2,370)	$	(1,460)	$	(670)	$	550	$	1,010	$	1,390
General fund<br>equity investments^(3)^		(1,170)		(770)		(390)		380		760		1,140
Total underlying sensitivity before<br>hedging		(3,540)		(2,230)		(1,060)		930		1,770		2,530
Impact of macro<br>and dynamic hedge assets^(4)^		880		530		240		(190)		(340)		(460)
Net potential impact on net income attributed to<br>shareholders after impact of hedging and before impact of reinsurance		(2,660)		(1,700)		(820)		740		1,430		2,070
Impact of<br>reinsurance		1,470		900		420		(350)		(650)		(910)
Netpotential impact on net income attributed to shareholders after impact of hedging and reinsurance	$	(1,190)	$	(800)	$	(400)	$	390	$	780	$	1,160
^(1)^	See “Caution related to sensitivities” above.
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^(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<br>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<br>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<br>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<br>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 hedge represents the impact of equity hedges offsetting 95% of the dynamically hedged variable annuity<br>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, interest rate correlations different<br>from expected among other factors).
Manulife Financial Corporation – First Quarter 2024	23
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Potential immediate impact on contractual service margin, other comprehensive income to shareholders, totalcomprehensive income to shareholders and MLI’s LICAT ratio from changes to public equity market values^(1),(2),(3)^

As at March 31, 2024	-30%		-20%		-10%		+10%		+20%		+30%
Variable annuity and segregated fund guarantees<br>reported in CSM	$	(3,540)	$	(2,180)	$	(1,010)	$	870	$	1,630	$	2,300
Impact of risk mitigation - hedging^(4)^	****	990	****	590	****	260	****	(210)	****	(370)	****	(500)
Impact of risk<br>mitigation - reinsurance^(4)^	****	1,740	****	1,060	****	490	****	(410)	****	(760)	****	(1,070)
VA net of risk mitigation	****	(810)	****	(530)	****	(260)	****	250	****	500	****	730
General fund<br>equity	****	(1,030)	****	(670)	****	(330)	****	320	****	640	****	950
Contractual service margin ($ millions, pre-tax)	$	(1,840)	$	(1,200)	$	(590)	$	570	$	1,140	$	1,680
Other comprehensive income attributed toshareholders($ millions, post-tax)^(5)^	$	(860)	$	(580)	$	(290)	$	260	$	530	$	790
Total comprehensive income attributed toshareholders($ millions, post-tax)	$	(2,180)	$	(1,460)	$	(720)	$	700	$	1,410	$	2,090
MLI’s LICAT ratio (change in percentagepoints)	****	(3)	****	(2)	****	(1)	****	1	****	2	****	2
As at December 31, 2023	-30%		-20%		-10%		+10%		+20%		+30%
Variable annuity and segregated fund guarantees<br>reported in CSM	$	(3,810)	$	(2,370)	$	(1,100)	$	940	$	1,760	$	2,470
Impact of risk mitigation - hedging^(4)^		1,150		700		310		(250)		(450)		(600)
Impact of risk<br>mitigation - reinsurance^(4)^		1,850		1,140		530		(450)		(830)		(1,150)
VA net of risk mitigation		(810)		(530)		(260)		240		480		720
General fund<br>equity		(940)		(610)		(300)		290		590		870
Contractualservice margin ($ millions, pre-tax)	$	(1,750)	$	(1,140)	$	(560)	$	530	$	1,070	$	1,590
Other comprehensive income attributed toshareholders($ millions, post-tax)^(5)^	$	(730)	$	(490)	$	(240)	$	230	$	460	$	680
Total comprehensive income attributed toshareholders($ millions, post-tax)	$	(1,920)	$	(1,290)	$	(640)	$	620	$	1,240	$	1,840
MLI’s LICAT ratio (change in percentagepoints)		(3)		(2)		(1)		1		2		2
^(1)^	See “Caution related to sensitivities” above.
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^(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<br>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)^	The Office of the Superintendent of Financial Institutions (“OSFI”) rules for segregated fund guarantees reflect full capital impacts of shocks over 20 quarters within a prescribed range. As such, the deterioration in<br>equity markets could lead to further increases in capital requirements after the initial shock.
^(4)^	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<br>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<br>shareholders.
^(5)^	The impact of financial risk and changes to interest rates for variable annuity contracts is not expected to generate sensitivity in Other Comprehensive Income.
C4	Interest rate and spread risk sensitivities and exposure measures
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As at March 31, 2024, we estimated the sensitivity of our net income attributed to shareholders to a 50 basis point parallel decline in interest<br>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.
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The table below shows the potential impacts from a 50 basis point parallel move in interest rates on the CSM, net income attributed to shareholders, other<br>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<br>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<br>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<br>by stochastic modelling. The method used for deriving sensitivity information and significant assumptions did not change from the previous period.
Manulife Financial Corporation – First Quarter 2024	24
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The disclosed interest rate sensitivities reflect the accounting designations of our financial assets and corresponding insurance contract liabilities. In<br>most cases these assets and liabilities are designated as fair value through other comprehensive income (“FVOCI”) and as a result, impacts from changes to interest rates are largely in other comprehensive income. There are also changes in<br>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<br>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<br>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<br>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<br>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<br>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<br>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<br>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<br>value of our ALDA (see “Critical Actuarial and Accounting Policies – Fair Value of Invested Assets”, on page 96 of our 2023 Annual Report). More information on ALDA can be found under the section C5 “Alternative long-duration<br>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<br>capital framework.
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Manulife Financial Corporation – First Quarter 2024	25
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Potential impacts on contractual service margin, net income attributed to shareholders, other comprehensive incomeattributed to shareholders, and total comprehensive income attributed to shareholders of an immediate parallel change in interest rates, corporate spreads or swap spreads relative to currentrates^(1),(2),(3)^ ****

As at March 31, 2024	Interest rates				Corporate spreads				Swap spreads
($ millions, post-tax except CSM)	-50bp		+50bp		-50bp		+50bp		-20bp		+20bp
CSM	$	–	$	(100)	$	–	$	(100)	$	–	$	–
Net income attributed to shareholders	****	100	****	(100)	****	100	****	(100)	****	100	****	(100)
Other comprehensive income attributed to<br>shareholders	****	–	****	–	****	(100)	****	200	****	(100)	****	100
Total<br>comprehensive income attributed to shareholders	****	100	****	(100)	****	–	****	100	****	–	****	–
As at December 31, 2023	Interest rates				Corporate spreads				Swap spreads
($ millions, post-tax except CSM)	-50bp		+50bp		-50bp		+50bp		-20bp		+20bp
CSM	$	–	$	(100)	$	–	$	(100)	$	–	$	–
Net income attributed to shareholders		100		(100)		–		–		100		(100)
Other comprehensive income attributed to<br>shareholders		(300)		300		(200)		300		(100)		100
Total<br>comprehensive income attributed to shareholders		(200)		200		(200)		300		–		–
^(1)^	See “Caution related to sensitivities” above.
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^(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 adjusted as interest rates and investment returns change, a portion of<br>which have minimum credited rate guarantees. For adjustable benefit products subject to minimum rate guarantees, the sensitivities are based on the assumption that credited rates will be floored at the minimum.

Swap spreads remain at low levels, and if they were to rise, this could generate material changes to net income attributed to shareholders.

Potential impact on MLI’s LICAT ratio of an immediate parallel change in interest rates, corporate spreads or swap spreads relative tocurrent rates^(1),(2),(3),(4),(5)^ ****

As at March 31, 2024	Interest rates				Corporate spreads				Swap spreads
(change in percentage points)	-50bp		+50bp		-50bp		+50bp		-20bp		+20bp
MLI’s LICAT ratio	****	–	****	–	****	(4)	****	4	****	–	****	–
As at December 31, 2023	Interest rates				Corporate spreads				Swap spreads
(change in percentage points)	-50bp		+50bp		-50bp		+50bp		-20bp		+20bp
MLI’s LICAT ratio		–		–		(4)		4		–		–
^(1)^	See “Caution related to sensitivities” above.
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^(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 adjusted as interest rates and investment returns change, a portion of<br>which have minimum credited rate guarantees. For adjustable benefit products subject to minimum rate guarantees, the sensitivities are based on the assumption that credited rates will be floored at the minimum.
^(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,<br>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 region^1^ based on current market inputs and the Company’s balance sheet.

^1^	LICAT geographic locations to determine the most adverse scenario include North America, the United Kingdom, Europe,<br>Japan, and Other Region.
Manulife Financial Corporation – First Quarter 2024	26
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With the current level of interest rates in 1Q24, the probability of a scenario switch that could materially impact our LICAT ratio is low.^1^ 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.

C5	Alternative long-duration asset performance risk sensitivities and exposure measures
The following table shows the potential impact on the CSM, net income attributed to shareholders, other comprehensive income attributed to shareholders,<br>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 did not change from the previous<br>period.
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ALDA used in this sensitivity analysis includes commercial real estate, private equity, infrastructure, timber and agriculture, infrastructure, energy^2^ and other investments.
The impacts do not reflect any future potential changes to non-fixed income return volatility. Refer to “C3<br>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 incomeattributed to shareholders, and total comprehensive income attributed to shareholders from changes in ALDA market values^(1)^

As at	March 31, 2024				December 31, 2023
($ millions, post-tax except CSM)	-10%		+10%		-10%		+10%
CSM excluding NCI	$	(100)	$	100	$	(100)	$	100
Net income attributed to shareholders^(2)^	****	(2,400)	****	2,400		(2,400)		2,400
Other comprehensive income attributed to<br>shareholders	****	(200)	****	200		(200)		200
Total<br>comprehensive income attributed to shareholders	****	(2,600)	****	2,600		(2,600)		2,600
^(1)^	See “Caution related to sensitivities” above.
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^(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)^

	March 31, 2024				December 31, 2023
(change in percentage points)	-10%		+10%		-10%		+10%
MLI’s LICAT ratio	****	(2)	****	2		(2)		2
^(1)^	See “Caution Related to Sensitivities” above.
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C6	Risk management and risk factors update^1^****
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We have outlined our overall approach to risk management in in our 2023 Annual Report. The following are updates to the risk factors for strategic and product risks.

^1^ See “Caution regarding forward-looking statements”<br>below.<br> <br>^2^ Energy includes oil & gas equity interests<br>related to upstream and midstream assets, and energy transition private equity interests in areas supportive of the transition to lower carbon forms of energy, such as wind, solar, batteries, magnets, etc.
Manulife Financial Corporation – First Quarter 2024	27
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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 ourcorporate 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 onour business, results of operations and financial condition.

•

In 2021, 136 of the 140 members of the Organization for Economic Co-Operation and Development / G20 Inclusive Framework agreed on a two-pillar solution to address tax challenges from the digital economy, and to close the gaps in international tax systems. These include a new approach to allocating certain profits of multinational entities amongst countries and a global minimum income tax rate of 15%. On July 12, 2023, the Canadian government reaffirmed its commitment to the two-pillar solution and the target date of December 31, 2023 for implementation of the Pillar 2 global minimum tax. This would first apply to the Company’s 2024 fiscal year if enacted on this timeline. The Company is closely monitoring developments and potential impacts and, in particular, for issues unique to the insurance industry. If enacted, we expect an increase in the effective tax rate of approximately 2 to 3 percentage points, pending further details on timing and specific implementation in both Canada and other affected countries.

•

Canada’s 2024 federal budget proposes to increase the capital gains inclusion rate from 50% to 66.67%, effective June 25, 2024. Most of Manulife’s investments are not treated as capital property, however, and therefore we don’t expect to be materially affected by this 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.

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Product risk factors

External market conditions determine theavailability, terms and cost of reinsurance protection which could impact our financial position and our ability to write new policies.

•

As part of our overall risk and capital management strategy, we purchase reinsurance protection on certain risks underwritten or assumed by our various insurance businesses. As the global reinsurance industry continues to review their business models, certain of our reinsurers have attempted to increase rates on our existing reinsurance contracts. The ability of our reinsurers to increase rates depends upon the terms of each reinsurance contract. Typically, a reinsurer’s ability to raise rates is restricted by terms in our reinsurance contracts, which we seek to enforce. Over the past several years we have received rate increase requests from some of our reinsurers. Thus far, dealing with those requests has not had a material adverse effect on our results of operation or financial condition. Consistent with past practice, we dispute requested increases and, if necessary, we can pursue legal action in order to protect our contractual rights. While possible outcomes remain unknown and there can be no assurance that the outcome of any one or more of these disputes would not have a material adverse effect on our results of operation or financial condition for a particular reporting period, we believe that our reserves, inclusive of reinsurance provisions, are appropriate overall.

CRITICAL ACTUARIAL AND ACCOUNTING POLICIES

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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.

Manulife Financial Corporation – First Quarter 2024	28

D1	Critical actuarial and accounting policies

Our material accounting policies are described in note 1 to our Consolidated Financial Statements for the year ended December 31, 2023. The critical actuarial policies and estimation processes relating to the determination of insurance and investment contract liabilities are described starting on page 88 of our 2023 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 96 of our 2023 Annual Report.

Sensitivity 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 did not change from the previous period.

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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 comprehensiveincome attributed to shareholders arising from changes to certain economic financial assumptions used in the determination of insurance contract liabilities^(1)^

As at March 31, 2024<br><br><br>($ millions, post-tax except CSM)	CSM net of NCI		Net income<br><br><br>attributed to<br> <br>shareholders		Other<br><br><br>comprehensive<br> <br>income attributed<br><br><br>to shareholders		Total<br><br><br>comprehensive<br> <br>income attributed<br><br><br>to shareholders
Financial assumptions
10 basis point reduction in ultimate spot<br>rate	$	(200)	$	–	$	(200)	$	(200)
50 basis point increase in interest rate<br>volatility^(2)^	****	–	****	–	****	–	****	–
50 basis<br>point increase in non-fixed income return volatility^(2)^	****	(100)	****	–	****	–	****	–
As at December 31, 2023<br><br><br>($ millions, post-tax except CSM)	CSM net of NCI		Net income<br>attributed to<br>shareholders		Other<br><br><br>comprehensive<br> <br>income attributed<br><br><br>to shareholders		Total<br><br><br>comprehensive<br> <br>income attributed<br><br><br>to shareholders
Financial assumptions
10 basis point reduction in ultimate spot<br>rate	$	(200)	$	–	$	(300)	$	(300)
50 basis point increase in interest rate<br>volatility^(2)^		–		–		–		–
50 basis<br>point increase in non-fixed income return volatility^(2)^		(100)		–		–		–
^(1)^	Note that the impact of these assumptions is not linear.
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^(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<br>annuities guarantees, where a stochastic approach is used to capture the asymmetry of the risk.
D3	Accounting and reporting changes
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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, 2024.

Manulife Financial Corporation – First Quarter 2024	29

E	OTHER
E1	Outstanding common shares – selected information
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As at April 30, 2024, MFC had 1,795,716,281 common shares outstanding.

E2	Legal 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, 2024.

E3	Non-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 income 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; net income attributed to shareholders excluding the GA Reinsurance Transaction; Common shareholders net income excluding the GA Reinsurance Transaction **** 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”); ROE excluding the GA Reinsurance Transaction; diluted EPS excluding the GA Reinsurance Transaction; **** 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”).

Otherspecified financial measures include assets under administration (“AUA”); consolidated capital; embedded value (“EV”); 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.

Manulife Financial Corporation – First Quarter 2024	30

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 income statement, 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, 2024.

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<br>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<br>reinsurance contracts).
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3.	Insurance experience gains or losses that flow directly through net income.
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4.	Operating and investment expenses compared with expense assumptions used in the measurement of insurance and investment<br>contract liabilities.
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Manulife Financial Corporation – First Quarter 2024	31
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5.	Expected investment earnings, which is the difference between expected return on our invested assets and the associated<br>finance income or expense from the insurance contract liabilities.
6.	Net provision for ECL on FVOCI and amortized cost debt instruments.
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7.	Expected asset returns on surplus investments.
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8.	All earnings for the Global WAM segment, except for applicable net income items excluded from core earnings as noted<br>below.
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9.	All earnings for the Manulife Bank business, except for applicable net income items excluded from core earnings as noted<br>below.
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10.	Routine or non-material legal settlements.
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11.	All other items not specifically excluded.
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12.	Tax on the above items.
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13.	All tax related items except the impact of enacted or substantively enacted income tax rate changes and taxes on items<br>excluded from core earnings.
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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<br>returns being different than expected.<br> <br>• Gains (charges) on derivatives not in hedging<br>relationships, or gains (charges) resulting from hedge accounting ineffectiveness.<br><br><br>• Realized gains (charges) from the sale of FVOCI debt instruments.<br><br><br>• Market related gains (charges) on onerous contracts measured using the variable fee approach<br>(e.g. variable annuities, unit linked, participating insurance) net of the performance on any related hedging instruments.<br><br><br>• Gains (charges) related to certain changes in foreign exchange rates.
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2.	Changes in actuarial methods and assumptions used in the measurement of insurance contract liabilities that flow directly<br>through income.
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• The Company reviews actuarial methods and assumptions annually, and this<br>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<br>and ensuring that the risk adjustment is appropriate for the risks assumed.<br> <br>• Changes<br>related to the ultimate spot rate within the discount curves are included in the market experience gains (losses).
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3.	The impact on the measurement of insurance and investment contract assets and liabilities and reinsurance contract held<br>assets and liabilities from changes in product features and new or changes to in-force reinsurance contracts, if material.
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4.	The fair value changes in long-term investment plan (“LTIP”) obligations for Global WAM investment management.<br>
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5.	Goodwill impairment charges.
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6.	Gains or losses on acquisition and disposition of a business.
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7.	Material one-time only adjustments, including highly unusual / extraordinary and<br>material legal settlements and restructuring charges, or other items that are material and exceptional in nature.
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8.	Tax on the above items.
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9.	Net income (loss) attributed to participating shareholders and non-controlling<br>interests.
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10.	Impact of enacted or substantially enacted income tax rate changes.
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Manulife Financial Corporation – First Quarter 2024	32
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Reconciliation of core earnings to net income attributed to shareholders


( millions, post-tax and based on actual foreign exchange<br>rates in effect in the applicable reporting period, unless otherwise stated)		Canada		U.S.		Global<br>WAM		Corporate<br>and Other		Total
Income (loss) before income taxes	594	$	381	$	(154)	$	426	$	5	$	1,252
Income tax (expenses) recoveries
Core earnings	(67)	****	(91)	****	(103)	****	(58)	****	33	****	(286)
Items excluded from core earnings	(83)	****	8	****	149	****	(3)	****	(65)	****	6
Income tax (expenses) recoveries	(150)	****	(83)	****	46	****	(61)	****	(32)	****	(280)
Net income (post-tax)	444	****	298	****	(108)	****	365	****	(27)	****	972
Less: Net income (post-tax) attributed to
Non-controlling interests (“NCI”)	55	****	–	****	–	****	–	****	–	****	55
Participating policyholders	26	****	25	****	–	****	–	****	–	****	51
Net income (loss) attributed to shareholders<br>(post-tax)	363	****	273	****	(108)	****	365	****	(27)	****	866
Less: Items excluded from core earnings (post-tax)
Market experience gains (losses)	(250)	****	(91)	****	(534)	****	6	****	90	****	(779)
Changes in actuarial methods and assumptions that flow directly through income	–	****	–	****	–	****	–	****	–	****	–
Restructuring charge	–	****	–	****	–	****	–	****	–	****	–
Reinsurance transactions, tax related items and other	(44)	****	–	****	(26)	****	2	****	(41)	****	(109)
Core earnings (post-tax)	657	$	364	$	452	$	357	$	(76)	$	1,754
Income tax on core earnings (see above)	67	****	91	****	103	****	58	****	(33)	****	286
Core earnings<br>(pre-tax)	724	$	455	$	555	$	415	$	(109)	$	2,040
Core earnings, CER basis and U.S. dollars

(Canadian millions, post-tax and based on actual foreign<br>exchange rates in effect in the applicable reporting period, unless otherwise<br>stated)		Canada		U.S.		Global<br>WAM		Corporate<br>and Other		Total
Core earnings (post-tax)	657	$	364	$	452	$	357	$	(76)	$	1,754
CER<br>adjustment(1)	–		–		–		–		–		–
Core earnings, CER basis (post-tax)	657	$	364	$	452	$	357	$	(76)	$	1,754
Income tax on core earnings, CER basis(2)	67	****	91	****	103	****	58	****	(33)	****	286
Core earnings, CER basis<br>(pre-tax)	724	$	455	$	555	$	415	$	(109)	$	2,040
Core earnings (U.S. dollars) – Asia and U.S. segments
Core earnings (post-tax)(3), US	488			$	335
CER adjustment US<br>(1)	–				–
Core earnings, CER basis<br>(post-tax), US	488			$	335

All values are in US Dollars.

^(1)^	The impact of updating foreign exchange rates to that which was used in 1Q24.
^(2)^	Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q24.<br>
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^(3)^	Core earnings (post-tax) in Canadian $ is translated to US $ using the US $<br>Statement of Income exchange rate for 1Q24.
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Manulife Financial Corporation – First Quarter 2024	33
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Reconciliation of core earnings to net income attributed to shareholders


( millions, post-tax and based on actual foreign exchange<br>rates in effect in the applicable reporting period, unless otherwise stated)		Canada		U.S.		Global<br>WAM		Corporate<br>and Other		Total
Income (loss) before income taxes	847	$	498	$	244	$	424	$	110	$	2,123
Income tax (expenses) recoveries
Core earnings	(76)		(87)		(113)		(55)		37		(294)
Items excluded from core earnings	(33)		(29)		67		(3)		(30)		(28)
Income tax (expenses) recoveries	(109)		(116)		(46)		(58)		7		(322)
Net income (post-tax)	738		382		198		366		117		1,801
Less: Net income (post-tax) attributed to
Non-controlling interests (“NCI”)	37		–		–		1		1		39
Participating policyholders	86		17		–		–		–		103
Net income (loss) attributed to shareholders<br>(post-tax)	615		365		198		365		116		1,659
Less: Items excluded from core earnings (post-tax)
Market experience gains (losses)	–		9		(279)		51		86		(133)
Changes in actuarial methods and assumptions that flow directly through income	89		4		26		–		–		119
Restructuring charge	–		–		–		(36)		–		(36)
Reinsurance transactions, tax related items and other	(38)		–		(23)		(3)		–		(64)
Core earnings (post-tax)	564	$	352	$	474	$	353	$	30	$	1,773
Income tax on core earnings (see above)	76		87		113		55		(37)		294
Core earnings<br>(pre-tax)	640	$	439	$	587	$	408	$	(7)	$	2,067
Core earnings, CER basis and U.S. dollars

(Canadian millions, post-tax and based on actual foreign<br>exchange rates in effect in the applicable reporting period, unless otherwise<br>stated)		Canada		U.S.		Global<br>WAM		Corporate<br>and Other		Total
Core earnings (post-tax)	564	$	352	$	474	$	353	$	30	$	1,773
CER<br>adjustment(1)	(7)		–		(4)		(2)		(1)		(14)
Core earnings, CER basis (post-tax)	557	$	352	$	470	$	351	$	29	$	1,759
Income tax on core earnings, CER basis(2)	76		87		112		55		(38)		292
Core earnings, CER basis<br>(pre-tax)	633	$	439	$	582	$	406	$	(9)	$	2,051
Core earnings (U.S. dollars) – Asia and U.S. segments
Core earnings (post-tax)(3), US	414			$	349
CER adjustment US<br>(1)	(1)				–
Core earnings, CER basis<br>(post-tax), US	413			$	349

All values are in US Dollars.

^(1)^	The impact of updating foreign exchange rates to that which was used in 1Q24.
^(2)^	Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q24.<br>
---	---
^(3)^	Core earnings (post-tax) in Canadian $ is translated to US $ using the US $<br>Statement of Income exchange rate for 4Q23.
---	---
Manulife Financial Corporation – First Quarter 2024	34
---	---

Reconciliation of core earnings to net income attributed to shareholders


( millions, post-tax and based on actual foreign<br>exchange rates in effect in the applicable reporting period, unless<br>otherwise stated)		Canada		U.S.		Global<br>WAM		Corporate<br>and Other		Total
Income (loss) before income taxes	439	$	376	$	68	$	366	$	(75)	$	1,174
Income tax (expenses) recoveries
Core earnings	(62)		(109)		(93)		(59)		30		(293)
Items excluded from core earnings	(73)		15		97		11		294		344
Income tax (expenses) recoveries	(135)		(94)		4		(48)		324		51
Net income (post-tax)	304		282		72		318		249		1,225
Less: Net income (post-tax) attributed to
Non-controlling interests (“NCI”)	25		–		–		–		–		25
Participating policyholders	195		(8)		–		–		–		187
Net income (loss) attributed to shareholders<br>(post-tax)	84		290		72		318		249		1,013
Less: Items excluded from core earnings (post-tax)
Market experience gains (losses)	(286)		(159)		(476)		(43)		(58)		(1,022)
Changes in actuarial methods and assumptions that flow directly through income	(157)		37		106		–		–		(14)
Restructuring charge	–		–		–		–		–		–
Reinsurance transactions, tax related items and other	5		4		–		–		297		306
Core earnings (post-tax)	522	$	408	$	442	$	361	$	10	$	1,743
Income tax on core earnings (see above)	62		109		93		59		(30)		293
Core earnings<br>(pre-tax)	584	$	517	$	535	$	420	$	(20)	$	2,036
Core earnings, CER basis and U.S. dollars

(Canadian millions, post-tax and based on actual foreign<br>exchange rates in effect in the applicable reporting period, unless otherwise<br>stated)		Canada		U.S.		Global<br>WAM		Corporate<br>and Other		Total
Core earnings (post-tax)	522	$	408	$	442	$	361	$	10	$	1,743
CER<br>adjustment(1)	(1)		–		2		1		–		2
Core earnings, CER basis (post-tax)	521	$	408	$	444	$	362	$	10	$	1,745
Income tax on core earnings, CER basis(2)	61		109		94		59		(30)		293
Core earnings, CER basis<br>(pre-tax)	582	$	517	$	538	$	421	$	(20)	$	2,038
Core earnings (U.S. dollars) – Asia and U.S. segments
Core earnings (post-tax)(3), US	390			$	329
CER adjustment US<br>(1)	(4)				–
Core earnings, CER basis<br>(post-tax), US	386			$	329

All values are in US Dollars.

^(1)^	The impact of updating foreign exchange rates to that which was used in 1Q24.
^(2)^	Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q24.<br>
---	---
^(3)^	Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for 3Q23.<br>
---	---
Manulife Financial Corporation – First Quarter 2024	35
---	---

Reconciliation of core earnings to net income attributed to shareholders


( millions, post-tax and based on actual foreign<br>exchange rates in effect in the applicable reporting period, unless<br>otherwise stated)		Canada		U.S.		Global<br>WAM		Corporate<br>and Other		Total
Income (loss) before income taxes	345	$	312	$	220	$	362	$	197	$	1,436
Income tax (expenses) recoveries
Core earnings	(73)		(97)		(110)		(45)		18		(307)
Items excluded from core earnings	(18)		33		73		1		(47)		42
Income tax (expenses) recoveries	(91)		(64)		(37)		(44)		(29)		(265)
Net income (post-tax)	254		248		183		318		168		1,171
Less: Net income (post-tax) attributed to
Non-controlling interests (“NCI”)	25		–		–		1		–		26
Participating policyholders	99		21		–		–		–		120
Net income (loss) attributed to shareholders<br>(post-tax)	130		227		183		317		168		1,025
Less: Items excluded from core earnings (post-tax)
Market experience gains (losses)	(297)		(147)		(275)		(7)		156		(570)
Changes in actuarial methods and assumptions that flow directly through income	–		–		–		–		–		–
Restructuring charge	–		–		–		–		–		–
Reinsurance transactions, tax related items and other	(46)		–		–		4		–		(42)
Core earnings (post-tax)	473	$	374	$	458	$	320	$	12	$	1,637
Income tax on core earnings (see above)	73		97		110		45		(18)		307
Core earnings<br>(pre-tax)	546	$	471	$	568	$	365	$	(6)	$	1,944
Core earnings, CER basis and U.S. dollars

(Canadian millions, post-tax and based on actual<br>foreign exchange rates in effect in the applicable reporting period,<br>unless otherwise stated)		Canada		U.S.		Global<br>WAM		Corporate<br>and Other		Total
Core earnings (post-tax)	473	$	374	$	458	$	320	$	12	$	1,637
CER<br>adjustment(1)	(11)		1		2		–		–		(8)
Core earnings, CER basis (post-tax)	462	$	375	$	460	$	320	$	12	$	1,629
Income tax on core earnings, CER basis(2)	70		97		110		45		(17)		305
Core earnings, CER basis<br>(pre-tax)	532	$	472	$	570	$	365	$	(5)	$	1,934
Core earnings (U.S. dollars) – Asia and U.S. segments
Core earnings (post-tax)(3), US	353			$	341
CER adjustment US<br>(1)	(9)				–
Core earnings, CER basis<br>(post-tax), US	344			$	341

All values are in US Dollars.

^(1)^	The impact of updating foreign exchange rates to that which was used in 1Q24.
^(2)^	Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q24.<br>
---	---
^(3)^	Core earnings (post-tax) in Canadian $ is translated to US $ using the US $<br>Statement of Income exchange rate for 2Q23.
---	---
Manulife Financial Corporation – First Quarter 2024	36
---	---

Reconciliation of core earnings to net income attributed to shareholders


( millions, post-tax and based on actual foreign<br>exchange rates in effect in the applicable reporting period, unless<br>otherwise stated)		Canada		U.S.		Global<br><br><br>WAM		Corporate<br><br><br>and Other		Total
Income (loss) before income taxes	613	$	423	$	219	$	345	$	119	$	1,719
Income tax (expenses) recoveries
Core earnings	(68)		(85)		(86)		(45)		14		(270)
Items excluded from core earnings	(37)		(14)		53		(3)		(38)		(39)
Income tax (expenses) recoveries	(105)		(99)		(33)		(48)		(24)		(309)
Net income (post-tax)	508		324		186		297		95		1,410
Less: Net income (post-tax) attributed to
Non-controlling interests (“NCI”)	54		–		–		–		–		54
Participating policyholders	(65)		15		–		–		–		(50)
Net income (loss) attributed to shareholders<br>(post-tax)	519		309		186		297		95		1,406
Less: Items excluded from core earnings (post-tax)
Market experience gains (losses)	30		(44)		(166)		9		106		(65)
Changes in actuarial methods and assumptions that flow directly through income	–		–		–		–		–		–
Restructuring charge	–		–		–		–		–		–
Reinsurance transactions, tax related items and other	–		–		(33)		1		(28)		(60)
Core earnings (post-tax)	489	$	353	$	385	$	287	$	17	$	1,531
Income tax on core earnings (see above)	68		85		86		45		(14)		270
Core earnings<br>(pre-tax)	557	$	438	$	471	$	332	$	3	$	1,801
Core earnings, CER basis and U.S. dollars

(Canadian millions, post-tax and based on actual foreign<br>exchange rates in effect in the applicable reporting period, unless otherwise<br>stated)		Canada		U.S.		Global<br><br><br>WAM		Corporate<br><br><br>and Other		Total
Core earnings (post-tax)	489	$	353	$	385	$	287	$	17	$	1,531
CER<br>adjustment(1)	(16)		–		(1)		(1)		–		(18)
Core earnings, CER basis (post-tax)	473	$	353	$	384	$	286	$	17	$	1,513
Income tax on core earnings, CER basis(2)	66		85		85		45		(14)		267
Core earnings, CER basis<br>(pre-tax)	539	$	438	$	469	$	331	$	3	$	1,780
Core earnings (U.S. dollars) – Asia and U.S. segments
Core earnings (post-tax)(3), US	361			$	285
CER adjustment US<br>(1)	(10)				–
Core earnings, CER basis<br>(post-tax), US	351			$	285

All values are in US Dollars.

^(1)^	The impact of updating foreign exchange rates to that which was used in 1Q24.
^(2)^	Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q24.<br>
---	---
^(3)^	Core earnings (post-tax) in Canadian $ is translated to US $ using the US $ Statement of Income exchange rate for 1Q23.<br>
---	---
Manulife Financial Corporation – First Quarter 2024	37
---	---

Reconciliation of core earnings to net income attributed to shareholders


( millions, post-tax and based on actual foreign<br>exchange rates in effect in the applicable reporting period, unless<br>otherwise stated)		Canada		U.S.		Global<br><br><br>WAM		Corporate<br><br><br>and Other		Total
Income (loss) before income taxes	2,244	$	1,609	$	751	$	1,497	$	351	$	6,452
Income tax (expenses) recoveries
Core earnings	(279)		(378)		(402)		(204)		99		(1,164)
Items excluded from core earnings	(161)		5		290		6		179		319
Income tax (expenses) recoveries	(440)		(373)		(112)		(198)		278		(845)
Net income (post-tax)	1,804		1,236		639		1,299		629		5,607
Less: Net income (post-tax) attributed to
Non-controlling interests (“NCI”)	141		–		–		2		1		144
Participating policyholders	315		45		–		–		–		360
Net income (loss) attributed to shareholders<br>(post-tax)	1,348		1,191		639		1,297		628		5,103
Less: Items excluded from core earnings (post-tax)
Market experience gains (losses)	(553)		(341)		(1,196)		10		290		(1,790)
Changes in actuarial methods and assumptions that flow directly through income	(68)		41		132		–		–		105
Restructuring charge	–		–		–		(36)		–		(36)
Reinsurance transactions, tax related items and other	(79)		4		(56)		2		269		140
Core earnings (post-tax)	2,048	$	1,487	$	1,759	$	1,321	$	69	$	6,684
Income tax on core earnings (see above)	279		378		402		204		(99)		1,164
Core earnings<br>(pre-tax)	2,327	$	1,865	$	2,161	$	1,525	$	(30)	$	7,848
Core earnings, CER basis and U.S. dollars

(Canadian millions, post-tax and based on actual foreign<br>exchange rates in effect in the applicable reporting period, unless otherwise<br>stated)		Canada		U.S.		Global<br><br><br>WAM		Corporate<br><br><br>and Other		Total
Core earnings (post-tax)	2,048	$	1,487	$	1,759	$	1,321	$	69	$	6,684
CER<br>adjustment(1)	(35)		–		(1)		(2)		–		(38)
Core earnings, CER basis (post-tax)	2,013	$	1,487	$	1,758	$	1,319	$	69	$	6,646
Income tax on core earnings, CER basis(2)	273		378		401		204		(99)		1,157
Core earnings, CER basis<br>(pre-tax)	2,286	$	1,865	$	2,159	$	1,523	$	(30)	$	7,803
Core earnings (U.S. dollars) – Asia and U.S. segments
Core earnings (post-tax)(3), US	1,518			$	1,304
CER adjustment US<br>(1)	(24)				–
Core earnings, CER basis<br>(post-tax), US	1,494			$	1,304

All values are in US Dollars.

^(1)^	The impact of updating foreign exchange rates to that which was used in 1Q24.
^(2)^	Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q24.<br>
---	---
^(3)^	Core earnings (post-tax) in Canadian $ is translated to US $ using the US $<br>Statement of Income exchange rate for the four respective quarters that make up 2023 core earnings.
---	---
Manulife Financial Corporation – First Quarter 2024	38
---	---

Segment core earnings by business line or geographic source

($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

Asia

										Full Year<br><br><br>Results
(US millions)		4Q23		3Q23		2Q23		1Q23		2023
Hong Kong	241	$	218	$	190	$	161	$	159	$	728
Japan	102		79		87		81		62		309
Asia Other(1)	151		119		119		119		137		494
International High Net Worth											72
Mainland China											49
Singapore											161
Vietnam											133
Other Emerging<br>Markets(2)											79
Regional Office	(6)		(2)		(6)		(8)		3		(13)
Total Asia core earnings	488	$	414	$	390	$	353	$	361	$	1,518
(1) Core earnings for Asia Other<br>is reported by country annually, on a full year basis.<br>(2) Other Emerging Markets includes Indonesia, the Philippines,<br>Malaysia, Thailand, Cambodia and Myanmar.
										Full Year<br><br><br>Results
(US millions), CER basis(1)		4Q23		3Q23		2Q23		1Q23		2023
Hong Kong	241	$	216	$	191	$	161	$	159	$	727
Japan	102		78		84		75		55		292
Asia Other(2)	151		121		117		115		134		487
International High Net Worth											72
Mainland China											48
Singapore											161
Vietnam											130
Other Emerging<br>Markets(3)											76
Regional Office	(6)		(2)		(6)		(8)		3		(13)
Total Asia core earnings, CER basis	488	$	413	$	386	$	343	$	351	$	1,493
(1) Core earnings adjusted to<br>reflect the foreign exchange rates for the Statement of Income in effect for 1Q24. (2) Core earnings for Asia Other is reported by country annually, on a full year basis.<br>(3) Other Emerging Markets includes Indonesia, the Philippines,<br>Malaysia, Thailand, Cambodia and Myanmar. Canada
										Full Year<br><br><br>Results
(Canadian in millions)	1Q24		4Q23		3Q23		2Q23		1Q23		2023
Insurance	266	$	258	$	310	$	276	$	257	$	1,101
Annuities	53		48		48		55		53		204
Manulife Bank	45		46		50		43		43		182
Total Canada core earnings	364	$	352	$	408	$	374	$	353	$	1,487

All values are in US Dollars.

Manulife Financial Corporation – First Quarter 2024	39

U.S.

										Full Year<br><br><br>Results
(US in millions)	1Q24		4Q23		3Q23		2Q23		1Q23		2023
U.S. Insurance	286	$	300	$	283	$	293	$	257	$	1,133
U.S. Annuities	49		49		46		48		28		171
Total U.S. core<br>earnings	335	$	349	$	329	$	341	$	285	$	1,304

All values are in US Dollars.

Global WAM by business line

										Full Year<br><br><br>Results
(Canadian in millions)	1Q24		4Q23		3Q23		2Q23		1Q23		2023
Retirement	202	$	203	$	192	$	186	$	164	$	745
Retail	131		127		135		119		121		502
Institutional asset management	24		23		34		15		2		74
Total Global WAM core earnings	357	$	353	$	361	$	320	$	287	$	1,321
										Full Year<br><br><br>Results
(Canadian in millions), CER basis(1)	1Q24		4Q23		3Q23		2Q23		1Q23		2023
Retirement	202	$	201	$	193	$	186	$	164	$	744
Retail	131		127		135		119		120		501
Institutional asset management	24		23		34		15		2		74
Total Global WAM core earnings, CER basis	357	$	351	$	362	$	320	$	286	$	1,319

All values are in US Dollars.

^(1)^	Core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q24.<br>

Global WAM by geographic source

										Full Year<br><br><br>Results
(Canadian in millions)	1Q24		4Q23		3Q23		2Q23		1Q23		2023
Asia	108	$	109	$	108	$	103	$	84	$	404
Canada	90		100		94		96		88		378
U.S.	159		144		159		121		115		539
Total Global WAM core earnings	357	$	353	$	361	$	320	$	287	$	1,321
										Full Year<br><br><br>Results
(Canadian in millions), CER basis(1)	1Q24		4Q23		3Q23		2Q23		1Q23		2023
Asia	108	$	108	$	108	$	103	$	83	$	402
Canada	90		100		94		96		88		378
U.S.	159		143		160		121		115		539
Total Global WAM core earnings, CER basis	357	$	351	$	362	$	320	$	286	$	1,319

All values are in US Dollars.

^(1)^	Core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q24.<br>
Manulife Financial Corporation – First Quarter 2024	40
---	---

Core earnings available to common shareholders is a financial measure that is used in the calculation of core ROE and core EPS. It is calculated as core earnings (post-tax) less preferred share dividends and other equity distributions.

($ millions, post-tax and based on actual<br>foreign<br> <br>exchange rates in effect in the<br> <br>applicable reporting period, unless<br><br><br>otherwise stated)	Quarterly Results										Full Year<br><br><br>Results
	1Q24		4Q23		3Q23		2Q23		1Q23		2023
Core earnings	$	1,754	$	1,773	$	1,743	$	1,637	$	1,531	$	6,684
Less: Preferred share dividends and other equity<br>distributions	****	55		99		54		98		52		303
Core earnings available to common shareholders	****	1,699		1,674		1,689		1,539		1,479		6,381
CER<br>adjustment^(1)^	****	–		(14)		2		(8)		(18)		(38)
Core earnings available to common shareholders,CER basis	$	1,699	$	1,660	$	1,691	$	1,531	$	1,461	$	6,343
^(1)^	The impact of updating foreign exchange rates to that which was used in 1Q24.
---	---

Core ROE measures profitability using core earnings available to common shareholders as a percentage of the capital deployed to earn the core earnings. The Company calculates core ROE using average common shareholders’ equity quarterly, as the average of common shareholders’ equity at the start and end of the quarter, and annually, as the average of the quarterly average common shareholders’ equity for the year.

	Quarterly Results										Full Year<br><br><br>Results
($ millions, unless otherwise stated)	1Q24		4Q23		3Q23		2Q23		1Q23		2023
Core earnings available to common shareholders	$	1,699	$	1,674	$	1,689	$	1,539	$	1,479	$	6,381
Annualized core earnings available to common shareholders (post-tax)	$	6,833	$	6,641	$	6,701	$	6,173	$	5,998	$	6,381
Average common shareholders’ equity(see below)	$	40,984	$	40,563	$	39,897	$	39,881	$	40,465	$	40,201
Core ROE (annualized) (%)	****	16.7%		16.4%		16.8%		15.5%		14.8%		15.9%
Average common shareholders’ equity
Total shareholders’ and other equity	$	48,250	$	47,039	$	47,407	$	45,707	$	47,375	$	47,039
Less: Preferred shares and other equity	****	6,660		6,660		6,660		6,660		6,660		6,660
Common shareholders’ equity	$	41,590	$	40,379	$	40,747	$	39,047	$	40,715	$	40,379
Average common shareholders’ equity	$	40,984	$	40,563	$	39,897	$	39,881	$	40,465	$	40,201

Core EPS is equal to core earnings available to common shareholders divided by diluted weighted average common shares outstanding.

Core earnings related to strategic priorities

The Company measures its progress on certain strategic priorities using core earnings, including core earnings from highest potential businesses. The core earnings for these businesses is calculated consistent with our definition of core earnings.

For the three months ended March 31,<br><br><br>($ millions and post-tax, unless otherwise stated)	2024		2023
Core earnings highest potential businesses^(1)^	$	1,180	$	912
Core earnings - All other businesses	****	574		619
Core earnings	****	1,754		1,531
Items excluded from core earnings	****	(888)		(125)
Net income (loss) attributed to shareholders	$	866	$	1,406
Highest potential businesses core earningscontribution	****	67%		60%
^(1)^	Includes core earnings from Asia and Global WAM segments, Canada Group Benefits, and behavioural insurance products.<br>
---	---

The effective tax rate on core earnings is equal to income tax on core earnings divided by pre-tax core earnings.

Manulife Financial Corporation – First Quarter 2024	41

Common share core dividend payout ratio is a ratio that measures the percentage of core earnings paid to common shareholders as dividends. It is calculated as dividends per common share divided by core EPS.

	Quarterly Results										Full Year<br><br><br>Results
	1Q24		4Q23		3Q23		2Q23		1Q23		2023
Per share dividend	$	0.40	$	0.37	$	0.37	$	0.37	$	0.37	$	1.46
Core EPS	$	0.94	$	0.92	$	0.92	$	0.83	$	0.79	$	3.47
Common share core dividend payout ratio	****	43%		40%		40%		44%		46%		42%

The Company also uses financial performance measures that are prepared on a constant exchange rate basis, which exclude the impact of currency fluctuations (from local currency to Canadian dollars at a total Company level and from local currency to U.S. dollars in Asia). Such financial measures may be stated on a constant exchange rate basis or the percentage growth/decline in the financial measure on a constant exchange rate basis, using the income statement and balance sheet exchange rates effective for the first quarter of 2024.

Information supporting constant exchange rate basis for GAAP and non-GAAP financial measures is presented below and throughout this section.

Basic EPS and diluted EPS, CER basis is equal to common shareholders’ net income on a CER basis divided by the weighted average common shares outstanding and diluted weighted common shares outstanding, respectively.

General expenses, CER basis

($ millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

	Quarterly Results										Full Year<br><br><br>Results
	1Q24		4Q23		3Q23		2Q23		1Q23		2023
General expenses	$	1,102	$	1,180	$	1,042	$	1,022	$	1,086	$	4,330
CER<br>adjustment^(1)^	****	–		(8)		3		3		(3)		(5)
General expenses, CER basis	$	1,102	$	1,172	$	1,045	$	1,025	$	1,083	$	4,325
^(1)^	The impact of updating foreign exchange rates to that which was used in 1Q24.
---	---

Net income attributed to shareholders excluding the GA Reinsurance Transaction

Net income attributed to shareholders excluding the GA Reinsurance Transaction is equal to net income attributed to shareholders less the impact of the GA Reinsurance Transaction. This was a significant transaction for the Company and we believe this measure will aid investors to better understand its impact on our overall results.

For the three months ended March 31,<br><br><br>($ millions and post-tax)	2024
Net income attributed to shareholders per financial statements	$	866
Less: Net loss attributed to shareholders from the GA Reinsurance<br>Transaction	****	(767)
Net income attributed to shareholders excluding the GAReinsurance Transaction	$	1,633

Common shareholders net income excluding the GA Reinsurance Transaction is a financial measure that is used in the calculation of ROE excluding the GA Reinsurance Transaction and diluted EPS **** excluding the GA Reinsurance Transaction. It is calculated as net income attributed to shareholders excluding the GA Reinsurance transaction less preferred share dividends and other equity distributions. ROE excluding the GA Reinsurance Transaction measures profitability using common shareholders’ net income excluding the GA Reinsurance Transaction **** as a percentage of the capital deployed to earn the net income attributed to shareholders. The Company calculates ROE excluding the GA Reinsurance Transaction using average common shareholders’ equity quarterly, as the average of common shareholders’ equity at the start and end of the quarter, and annually, as the average of the quarterly average common shareholders’ equity for the year.

Manulife Financial Corporation – First Quarter 2024	42

For the three months ended March 31,<br><br><br>($ millions, unless otherwise stated)	2024
Net income attributed to shareholders excluding the GA Reinsurance Transaction	$	1,633
Less: Preferred share dividends and other equity<br>distributions	****	55
Common shareholders’ net income excluding the GA Reinsurancetransaction	$	1,578
Annualized common shareholders’ net income excluding the GAReinsurance transaction	$	6,347
Average Common shareholders’ equity	$	40,984
ROE excluding the GA Reinsurance Transaction(annualized)	****	15.5%

Diluted EPS excluding the GA Reinsurance Transaction is equal to common shareholders’ net income excluding the GA Reinsurance Transaction divided by diluted weighted average common shares outstanding.

Drivers of Earnings ( “ DOE ” ) is used to identify the primary sources of gains or losses in each reporting period. It is one of the key tools we use to understand and manage our business. The DOE line items are comprised of amounts that have been included in our financial statements. The core DOE shows the sources of core earnings and the items excluded from core earnings, reconciled to net income attributed to shareholders. The elements of the core earnings DOE are described below:

Net Insurance Service Result represents the core earnings associated with providing insurance service to policyholders within the period including: ****

•	Expected earnings on insurance contracts which includes the release of risk adjustment for expired non-financial risk, the CSM recognized for service provided and expected earnings on short-term PAA insurance business.
•	Impact of new insurance business relates to income at initial recognition from new insurance contracts. Losses would<br>occur if the group of new insurance contracts was onerous at initial recognition. If reinsurance contracts provide coverage for the direct insurance contracts, then the loss is offset by a corresponding gain on reinsurance contracts held.<br>
---	---
•	Insurance experience gains (losses) arise from items such as claims, persistency, and expenses, where the actual<br>experience in the current period differs from the expected results assumed in the insurance and investment contract liabilities. Generally, this line would be driven by claims and expenses, as persistency experience relates to future service and<br>would be offset by changes to the carrying amount of the contractual service margin unless the group is onerous, in which case the impact of persistency experience would be included in core earnings.
---	---
•	Other represents pre-tax net income on residual items in the insurance<br>result section.
---	---

Net Investment Result represents the core earnings associated with investment results within the period. Note that results associated with Global WAM and Manulife Bank are shown on separate DOE lines. However, within the income statement, the results associated with these businesses would impact the total investment result. This section includes:

•	Expected investment earnings, which is the difference between expected asset returns and the associated finance<br>income or expense from insurance and investment contract liabilities, net of investment expenses.
•	Change in expected credit loss, **** which is the gain or charge to net income attributed to shareholders for<br>credit losses to bring the allowance for credit losses to a level management considers adequate for expected credit-related losses on its portfolio.
---	---
•	Expected earnings on surplus reflects the expected investment return on surplus assets.
---	---
•	Other represents pre-tax net income on residual items in the investment<br>result section.
---	---

Global WAM is the pre-tax net income from the Global Wealth and Asset Management segment, adjusted for applicable items excluded from core earnings as noted in the core earnings (loss) section above.

Manulife Financial Corporation – First Quarter 2024	43

Manulife Bank is the **** pre-tax net income from Manulife Bank, adjusted for applicable items excluded from core earnings as noted in the core earnings (loss) section above.

Other represents net income associated with items outside of the net insurance service result, net investment result, Global WAM and Manulife Bank. Other includes lines attributed to core earnings such as:

•	Non-directly attributable expenses are expenses incurred by the Company<br>which are not directly attributable to fulfilling insurance contracts. Non-directly attributable expenses excludes non-directly attributable investment expenses as they<br>are included in the net investment result.
•	Other represents pre-tax net income on residual items in the Other section.<br>Most notably this would include the cost of financing debt issued by Manulife.
---	---

Net income attributed to shareholders includes the following items excluded from core earnings:

•	Market experience gains (losses) related to items excluded from core earnings that relate to changes in market<br>variables.
•	Changes in actuarial methods and assumptions that flow directly through income related to updates in the methods and<br>assumptions used to value insurance contract liabilities.
---	---
•	Restructuring charges includes a charge taken to reorganize operations.
---	---
•	Reinsurance transactions, tax-related items and other include the impacts of<br>new or changes to in-force reinsurance contracts, the impact of enacted or substantially enacted income tax rate changes and other amounts defined as items excluded from core earnings not specifically captured<br>in the lines above.
---	---

All of the above items are discussed in more detail in our definition of items excluded from core earnings.

Manulife Financial Corporation – First Quarter 2024	44

Drivers of Earnings (“DOE”) Reconciliation – 1Q24

($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

	1Q24
	Asia		Canada		U.S.		Global<br><br><br>WAM		Corporate<br><br><br>and Other		Total
Net insurance service result reconciliation
Total insurance service result – financial statements	$	547	$	284	$	119	$	–	$	28	$	978
Less: Insurance service result attributed to:
Items excluded from core earnings	****	11	****	(3)	****	2	****	–	****	(1)	****	9
NCI	****	33	****	–	****	–	****	–	****	–	****	33
Participating policyholders	****	48	****	24	****	–	****	–	****	–	****	72
Core net insurance service result	****	455	****	263	****	117	****	–	****	29	****	864
Core net insurance service result, CER adjustment^(1)^	****	–	****	–	****	–	****	–	****	–	****	–
Core net insurance service result, CER basis	$	455	$	263	$	117	$	–	$	29	$	864
Total investment result reconciliation
Total investment result per financial statements	$	54	$	453	$	(290)	$	(230)	$	361	$	348
Less: Reclassify Manulife Bank^(2)^ and Global WAM to<br>their own DOE lines	****	–	****	396	****	–	****	(230)	****	–	****	166
Add: Consolidation and other adjustments from Other DOE line	****	–	****	(1)	****	–	****	–	****	(156)	****	(157)
Less: Net investment result attributed to:
Items excluded from core earnings	****	(291)	****	(100)	****	(720)	****	–	****	106	****	(1,005)
NCI	****	40	****	–	****	–	****	–	****	–	****	40
Participating policyholders	****	(3)	****	7	****	–	****	–	****	–	****	4
Core net investment result	****	308	****	149	****	430	****	–	****	99	****	986
Core net investment result, CER adjustment^(1)^	****	–	****	–	****	–	****	–	****	–	****	–
Core net investment result, CER basis	$	308	$	149	$	430	$	–	$	99	$	986
Manulife Bank and Global WAM by DOE linereconciliation
Manulife Bank and Global WAM net income attributed to shareholders	$	–	$	65	$	–	$	426	$	–	$	491
Less: Manulife Bank and Global WAM attributed to:
Items excluded from core earnings	****	–	****	4	****	–	****	11	****	–	****	15
Core earnings in Manulife Bank and Global WAM	****	–	****	61	****	–	****	415	****	–	****	476
Core earnings in Manulife Bank and Global WAM, CER adjustment^(1)^	****	–	****	–	****	–	****	–	****	–	****	–
Core earnings in Manulife Bank and Global WAM, CERbasis	$	–	$	61	$	–	$	415	$	–	$	476
Other reconciliation
Other revenue per financial statements	$	55	$	75	$	39	$	1,750	$	(111)	$	1,808
General expenses per financial statements	****	(56)	****	(142)	****	(21)	****	(743)	****	(140)	****	(1,102)
Commission related to non-insurance contracts	****	–	****	(18)	****	3	****	(349)	****	8	****	(356)
Interest expense per financial statements	****	(6)	****	(271)	****	(4)	****	(2)	****	(141)	****	(424)
Total financial statements values included in Other	****	(7)	****	(356)	****	17	****	656	****	(384)	****	(74)
Less: Reclassifications:
Manulife Bank and Global WAM to their own DOE lines	****	–	****	(331)	****	–	****	656	****	–	****	325
Consolidation and other adjustments to net investment result DOE line	****	–	****	(1)	****	–	****	–	****	(156)	****	(157)
Less: Other attributed to:
Items excluded from core earnings	****	39	****	(3)	****	9	****	–	****	9	****	54
NCI	****	–	****	–	****	–	****	–	****	–	****	–
Participating policyholders	****	1	****	–	****	–	****	–	****	–	****	1
Add: Par earnings transfer to shareholders	****	8	****	3	****	–	****	–	****	–	****	11
Other core earnings	****	(39)	****	(18)	****	8	****	–	****	(237)	****	(286)
Other core earnings, CER adjustment^(1)^	****	–	****	–	****	–	****	–	****	–	****	–
Other core earnings, CER basis	$	(39)	$	(18)	$	8	$	–	$	(237)	$	(286)
Income tax (expenses) recoveries reconciliation
Income tax (expenses) recoveries per financial statements	$	(150)	$	(83)	$	46	$	(61)	$	(32)	$	(280)
Less: Income tax (expenses) recoveries attributed to:
Items excluded from core earnings	****	(53)	****	11	****	149	****	(3)	****	(65)	****	39
NCI	****	(18)	****	–	****	–	****	–	****	–	****	(18)
Participating policyholders	****	(12)	****	(3)	****	–	****	–	****	–	****	(15)
Core income tax (expenses) recoveries	****	(67)	****	(91)	****	(103)	****	(58)	****	33	****	(286)
Core income tax (expenses) recoveries, CER adjustment^(1)^	****	–	****	–	****	–	****	–	****	–	****	–
Core income tax (expenses) recoveries, CER basis	$	(67)	$	(91)	$	(103)	$	(58)	$	33	$	(286)
^(1)^ The impact of updating<br>foreign exchange rates to that which was used in 1Q24.<br><br><br>^(2)^ Manulife Bank is part of Canada segment.
Manulife Financial Corporation – First Quarter 2024	45
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Drivers of Earnings (“DOE”) Reconciliation – 4Q23

($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

	4Q23
	Asia		Canada		U.S.		Global<br><br><br>WAM		Corporate<br><br><br>and Other		Total
Net insurance service result reconciliation
Total insurance service result – financial statements	$	644	$	306	$	195	$	–	$	91	$	1,236
Less: Insurance service result attributed to:
Items excluded from core earnings		130		12		21		–		(2)		161
NCI		19		–		–		–		1		20
Participating policyholders		60		39		–		–		–		99
Core net insurance service result		435		255		174		–		92		956
Core net insurance service result, CER adjustment^(1)^		(4)		–		(1)		–		(2)		(7)
Core net insurance service result, CER basis	$	431	$	255	$	173	$	–	$	90	$	949
Total investment result reconciliation
Total investment result per financial statements	$	285	$	511	$	72	$	(139)	$	344	$	1,073
Less: Reclassify Manulife Bank^(2)^ and Global WAM to<br>their own DOE lines		–		377		–		(139)		–		238
Add: Consolidation and other adjustments from Other DOE line		–		3		–		–		(162)		(159)
Less: Net investment result attributed to:
Items excluded from core earnings		(47)		9		(359)		–		39		(358)
NCI		37		–		–		–		–		37
Participating policyholders		50		(10)		–		–		–		40
Core net investment result		245		138		431		–		143		957
Core net investment result, CER adjustment^(1)^		(3)		–		(4)		–		–		(7)
Core net investment result, CER basis	$	242	$	138	$	427	$	–	$	143	$	950
Manulife Bank and Global WAM by DOE linereconciliation
Manulife Bank and Global WAM net income attributed to shareholders	$	–	$	72	$	–	$	424	$	–	$	496
Less: Manulife Bank and Global WAM attributed to:
Items excluded from core earnings		–		8		–		16		–		24
Core earnings in Manulife Bank and Global WAM		–		64		–		408		–		472
Core earnings in Manulife Bank and Global WAM, CER adjustment^(1)^		–		–		–		(2)		–		(2)
Core earnings in Manulife Bank and Global WAM, CERbasis	$	–	$	64	$	–	$	406	$	–	$	470
Other reconciliation
Other revenue per financial statements	$	(16)	$	75	$	8	$	1,688	$	(36)	$	1,719
General expenses per financial statements		(59)		(136)		(28)		(793)		(164)		(1,180)
Commission related to non-insurance contracts		(3)		(12)		1		(330)		9		(335)
Interest expense per financial statements		(4)		(246)		(4)		(2)		(134)		(390)
Total financial statements values included in Other		(82)		(319)		(23)		563		(325)		(186)
Less: Reclassifications:
Manulife Bank and Global WAM to their own DOE lines		–		(305)		–		564		–		259
Consolidation and other adjustments to net investment result DOE line		–		3		–		–		(162)		(159)
Less: Other attributed to:
Items excluded from core earnings		(26)		4		(5)		(2)		79		50
NCI		(2)		–		–		1		–		(1)
Participating policyholders		(4)		(1)		–		–		–		(5)
Add: Par earnings transfer to shareholders		10		2		–		–		–		12
Other core earnings		(40)		(18)		(18)		–		(242)		(318)
Other core earnings, CER adjustment^(1)^		–		–		–		–		–		–
Other core earnings, CER basis	$	(40)	$	(18)	$	(18)	$	–	$	(242)	$	(318)
Income tax (expenses) recoveries reconciliation
Income tax (expenses) recoveries per financial statements	$	(109)	$	(116)	$	(46)	$	(58)	$	7	$	(322)
Less: Income tax (expenses) recoveries attributed to:
Items excluded from core earnings		(6)		(20)		67		(3)		(30)		8
NCI		(17)		–		–		–		–		(17)
Participating policyholders		(10)		(9)		–		–		–		(19)
Core income tax (expenses) recoveries		(76)		(87)		(113)		(55)		37		(294)
Core income tax (expenses) recoveries, CER adjustment^(1)^		–		–		1		–		1		2
Core income tax (expenses) recoveries, CER basis	$	(76)	$	(87)	$	(112)	$	(55)	$	38	$	(292)
^(1)^	The impact of updating foreign exchange rates to that which was used in 1Q24.
---	---
^(2)^	Manulife Bank is part of Canada segment.
---	---
Manulife Financial Corporation – First Quarter 2024	46
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Drivers of Earnings (“DOE”) Reconciliation – 3Q23

($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

	3Q23
	Asia		Canada		U.S.		Global<br><br><br>WAM		Corporate<br><br><br>and Other		Total
Net insurance service result reconciliation
Total insurance service result – financial statements	$	467	$	366	$	108	$	–	$	64	$	1,005
Less: Insurance service result attributed to:
Items excluded from core earnings		(112)		11		(51)		–		(1)		(153)
NCI		15		–		–		–		–		15
Participating policyholders		177		21		–		–		–		198
Core net insurance service result		387		334		159		–		65		945
Core net insurance service result, CER adjustment^(1)^		–		–		–		–		–		–
Core net insurance service result, CER basis	$	387	$	334	$	159	$	–	$	65	$	945
Total investment result reconciliation
Total investment result per financial statements	$	4	$	389	$	(45)	$	(303)	$	273	$	318
Less: Reclassify Manulife Bank^(2)^ and Global WAM to<br>their own DOE lines		–		380		–		(303)		–		77
Add: Consolidation and other adjustments from Other DOE line		–		(23)		–		–		(131)		(154)
Less: Net investment result attributed to:
Items excluded from core earnings		(274)		(130)		(418)		–		(5)		(827)
NCI		17		–		–		–		–		17
Participating policyholders		28		(21)		–		–		–		7
Core net investment result		233		137		373		–		147		890
Core net investment result, CER adjustment^(1)^		(2)		–		2		–		–		–
Core net investment result, CER basis	$	231	$	137	$	375	$	–	$	147	$	890
Manulife Bank and Global WAM by DOE linereconciliation
Manulife Bank and Global WAM net income attributed to shareholders	$	–	$	55	$	–	$	365	$	–	$	420
Less: Manulife Bank and Global WAM attributed to:
Items excluded from core earnings		–		(11)		–		(55)		–		(66)
Core earnings in Manulife Bank and Global WAM		–		66		–		420		–		486
Core earnings in Manulife Bank and Global WAM, CER adjustment^(1)^		–		–		–		1		–		1
Core earnings in Manulife Bank and Global WAM, CERbasis	$	–	$	66	$	–	$	421	$	–	$	487
Other reconciliation
Other revenue per financial statements	$	26	$	53	$	31	$	1,709	$	(174)	$	1,645
General expenses per financial statements		(52)		(128)		(29)		(703)		(129)		(1,041)
Commission related to non-insurance contracts		(3)		(14)		6		(334)		9		(336)
Interest expense per financial statements		(3)		(290)		(3)		(1)		(119)		(416)
Total financial statements values included in Other		(32)		(379)		5		671		(413)		(148)
Less: Reclassifications:
Manulife Bank and Global WAM to their own DOE lines		–		(325)		–		670		–		345
Consolidation and other adjustments to net investment result DOE line		–		(23)		–		–		(132)		(155)
Less: Other attributed to:
Items excluded from core earnings		5		(4)		2		–		(49)		(46)
NCI		2		–		–		1		–		3
Participating policyholders		3		(5)		–		–		–		(2)
Add: Par earnings transfer to shareholders		6		2		–		–		–		8
Other core earnings		(36)		(20)		3		–		(232)		(285)
Other core earnings, CER adjustment^(1)^		–		–		1		–		–		1
Other core earnings, CER basis	$	(36)	$	(20)	$	4	$	–	$	(232)	$	(284)
Income tax (expenses) recoveries reconciliation
Income tax (expenses) recoveries per financial statements	$	(135)	$	(94)	$	4	$	(48)	$	324	$	51
Less: Income tax (expenses) recoveries attributed to:
Items excluded from core earnings		(58)		16		97		12		294		361
NCI		(9)		–		–		(1)		–		(10)
Participating policyholders		(6)		(1)		–		–		–		(7)
Core income tax (expenses) recoveries		(62)		(109)		(93)		(59)		30		(293)
Core income tax (expenses) recoveries, CER adjustment^(1)^		1		–		(1)		–		–		–
Core income tax (expenses) recoveries, CER basis	$	(61)	$	(109)	$	(94)	$	(59)	$	30	$	(293)
^(1)^	The impact of updating foreign exchange rates to that which was used in 1Q24.
---	---
^(2)^	Manulife Bank is part of Canada segment.
---	---
Manulife Financial Corporation – First Quarter 2024	47
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Drivers of Earnings (“DOE”) Reconciliation – 2Q23

($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

	2Q23
	Asia		Canada		U.S.		Global<br>WAM		Corporate<br><br><br>and Other		Total
Net insurance service result reconciliation
Total insurance service result – financial statements	$	460	$	262	$	131	$	–	$	34	$	887
Less: Insurance service result attributed to:
Items excluded from core earnings		(44)		(4)		(26)		–		1		(73)
NCI		13		–		–		–		–		13
Participating policyholders		122		21		–		–		–		143
Core net insurance service result		369		245		157		–		33		804
Core net insurance service result, CER adjustment^(1)^		(7)		(1)		2		–		1		(5)
Core net insurance service result, CER basis	$	362	$	244	$	159	$	–	$	34	$	799
Total investment result reconciliation
Total investment result per financial statements	$	(96)	$	354	$	105	$	(244)	$	478	$	597
Less: Reclassify Manulife Bank^(2)^ and Global WAM to<br>their own DOE lines		–		342		–		(244)		–		98
Add: Consolidation and other adjustments from Other DOE line		–		–		–		–		(127)		(127)
Less: Net investment result attributed to:
Items excluded from core earnings		(318)		(184)		(319)		–		183		(638)
NCI		14		–		–		–		–		14
Participating policyholders		(7)		14		–		–		–		7
Core net investment result		215		182		424		–		168		989
Core net investment result, CER adjustment^(1)^		(8)		1		1		–		–		(6)
Core net investment result, CER basis	$	207	$	183	$	425	$	–	$	168	$	983
Manulife Bank and Global WAM by DOE linereconciliation
Manulife Bank and Global WAM net income attributed to shareholders	$	–	$	59	$	–	$	362	$	–	$	421
Less: Manulife Bank and Global WAM attributed to:
Items excluded from core earnings		–		–		–		(3)		–		(3)
Core earnings in Manulife Bank and Global WAM		–		59		–		365		–		424
Core earnings in Manulife Bank and Global WAM, CER adjustment^(1)^		–		–		–		–		–		–
Core earnings in Manulife Bank and Global WAM, CERbasis	$	–	$	59	$	–	$	365	$	–	$	424
Other reconciliation
Other revenue per financial statements	$	47	$	72	$	16	$	1,647	$	(91)	$	1,691
General expenses per financial statements		(61)		(127)		(25)		(709)		(101)		(1,023)
Commission related to non-insurance contracts		(2)		(13)		(3)		(329)		11		(336)
Interest expense per financial statements		(3)		(236)		(4)		(5)		(133)		(381)
Total financial statements values included in Other		(19)		(304)		(16)		604		(314)		(49)
Less: Reclassifications:
Manulife Bank and Global WAM to their own DOE lines		–		(283)		–		604		–		321
Consolidation and other adjustments to net investment result DOE line		–		–		–		–		(126)		(126)
Less: Other attributed to:
Items excluded from core earnings		23		(1)		(3)		–		19		38
NCI		4		–		–		–		–		4
Participating policyholders		1		(3)		–		–		–		(2)
Add: Par earnings transfer to shareholders		9		2		–		–		–		11
Other core earnings		(38)		(15)		(13)		–		(207)		(273)
Other core earnings, CER adjustment^(1)^		1		1		(1)		–		–		1
Other core earnings, CER basis	$	(37)	$	(14)	$	(14)	$	–	$	(207)	$	(272)
Income tax (expenses) recoveries reconciliation
Income tax (expenses) recoveries per financial statements	$	(91)	$	(64)	$	(37)	$	(44)	$	(29)	$	(265)
Less: Income tax (expenses) recoveries attributed to:
Items excluded from core earnings		(4)		42		73		1		(47)		65
NCI		(6)		–		–		–		–		(6)
Participating policyholders		(8)		(9)		–		–		–		(17)
Core income tax (expenses) recoveries		(73)		(97)		(110)		(45)		18		(307)
Core income tax (expenses) recoveries, CER adjustment^(1)^		3		–		–		–		(1)		2
Core income tax (expenses) recoveries, CER basis	$	(70)	$	(97)	$	(110)	$	(45)	$	17	$	(305)
^(1)^ The impact of updating<br>foreign exchange rates to that which was used in 1Q24.<br><br><br>^(2)^ Manulife Bank is part of Canada segment.
Manulife Financial Corporation – First Quarter 2024	48
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Drivers of Earnings (“DOE”) Reconciliation – 1Q23

($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

	1Q23
	Asia		Canada		U.S.		Global<br>WAM		Corporate<br><br><br>and Other		Total
Net insurance service result reconciliation
Total insurance service result – financial statements	$	370	$	259	$	173	$	–	$	47	$	849
Less: Insurance service result attributed to:
Items excluded from core earnings		26		–		1		–		(1)		26
NCI		40		–		–		–		–		40
Participating policyholders		(51)		26		–		–		–		(25)
Core net insurance service result		355		233		172		–		48		808
Core net insurance service result, CER adjustment^(1)^		(9)		–		(1)		–		–		(10)
Core net insurance service result, CER basis	$	346	$	233	$	171	$	–	$	48	$	798
Total investment result reconciliation
Total investment result per financial statements	$	285	$	463	$	101	$	(260)	$	381	$	970
Less: Reclassify Manulife Bank^(2)^ and Global WAM to<br>their own DOE lines		–		346		–		(260)		–		86
Add: Consolidation and other adjustments from Other DOE line		–		–		–		–		(137)		(137)
Less: Net investment result attributed to:
Items excluded from core earnings		34		(40)		(200)		–		81		(125)
NCI		24		–		–		–		–		24
Participating policyholders		3		–		–		–		–		3
Core net investment result		224		157		301		–		163		845
Core net investment result, CER adjustment^(1)^		(11)		–		–		–		–		(11)
Core net investment result, CER basis	$	213	$	157	$	301	$	–	$	163	$	834
Manulife Bank and Global WAM by DOE linereconciliation
Manulife Bank and Global WAM net income attributed to shareholders	$	–	$	65	$	–	$	345	$	–	$	410
Less: Manulife Bank and Global WAM attributed to:
Items excluded from core earnings		–		5		–		13		–		18
Core earnings in Manulife Bank and Global WAM		–		60		–		332		–		392
Core earnings in Manulife Bank and Global WAM, CER adjustment^(1)^		–		–		–		(1)		–		(1)
Core earnings in Manulife Bank and Global WAM, CERbasis	$	–	$	60	$	–	$	331	$	–	$	391
Other reconciliation
Other revenue per financial statements	$	10	$	72	$	24	$	1,665	$	(80)	$	1,691
General expenses per financial statements		(48)		(123)		(74)		(726)		(115)		(1,086)
Commission related to non-insurance contracts		(2)		(16)		(1)		(329)		10		(338)
Interest expense per financial statements		(2)		(232)		(4)		(5)		(124)		(367)
Total financial statements values included in Other		(42)		(299)		(55)		605		(309)		(100)
Less: Reclassifications:
Manulife Bank and Global WAM to their own DOE lines		–		(281)		–		605		–		324
Consolidation and other adjustments to net investment result DOE line		–		–		–		–		(137)		(137)
Less: Other attributed to:
Items excluded from core earnings		(9)		(1)		(53)		–		36		(27)
NCI		–		–		–		–		–		–
Participating policyholders		(2)		(3)		–		–		–		(5)
Add: Par earnings transfer to shareholders		9		2		–		–		–		11
Other core earnings		(22)		(12)		(2)		–		(208)		(244)
Other core earnings, CER adjustment^(1)^		2		–		(1)		–		–		1
Other core earnings, CER basis	$	(20)	$	(12)	$	(3)	$	–	$	(208)	$	(243)
Income tax (expenses) recoveries reconciliation
Income tax (expenses) recoveries per financial statements	$	(105)	$	(99)	$	(33)	$	(48)	$	(24)	$	(309)
Less: Income tax (expenses) recoveries attributed to:
Items excluded from core earnings		(21)		(8)		53		(3)		(38)		(17)
NCI		(10)		–		–		–		–		(10)
Participating policyholders		(6)		(6)		–		–		–		(12)
Core income tax (expenses) recoveries		(68)		(85)		(86)		(45)		14		(270)
Core income tax (expenses) recoveries, CER adjustment^(1)^		2		–		1		–		–		3
Core income tax (expenses) recoveries, CER basis	$	(66)	$	(85)	$	(85)	$	(45)	$	14	$	(267)
^(1)^ The impact of updating<br>foreign exchange rates to that which was used in 1Q24.<br><br><br>^(2)^ Manulife Bank is part of Canada segment.
Manulife Financial Corporation – First Quarter 2024	49
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Drivers of Earnings (“DOE”) Reconciliation – 2023

($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

	2023
	Asia		Canada		U.S.		Global<br>WAM		Corporate<br><br><br>and Other		Total
Net insurance service result reconciliation
Total insurance service result – financial statements	$	1,941	$	1,193	$	607	$	–	$	236	$	3,977
Less: Insurance service result attributed to:
Items excluded from core earnings		–		19		(55)		–		(3)		(39)
NCI		87		–		–		–		1		88
Participating policyholders		308		107		–		–		–		415
Core net insurance service result	$	1,546	$	1,067	$	662	$	–	$	238	$	3,513
Core net insurance service result, CER adjustment^(1)^		(20)		–		–		–		(1)		(21)
Core net insurance service result, CER basis	$	1,526	$	1,067	$	662	$	–	$	237	$	3,492
Total investment result reconciliation
Total investment result per financial statements	$	478	$	1,717	$	233	$	(946)	$	1,476	$	2,958
Less: Reclassify Manulife Bank^(2)^ and Global WAM to<br>their own DOE lines		–		1,445		–		(946)		–		499
Add: Consolidation and other adjustments from Other DOE line		–		(20)		–		–		(557)		(577)
Less: Net investment result attributed to:
Items excluded from core earnings		(605)		(345)		(1,296)		–		298		(1,948)
NCI		92		–		–		–		–		92
Participating policyholders		74		(17)		–		–		–		57
Core net investment result		917		614		1,529		–		621		3,681
Core net investment result, CER adjustment^(1)^		(24)		–		(2)		–		1		(25)
Core net investment result, CER basis	$	893	$	614	$	1,527	$	–	$	622	$	3,656
Manulife Bank and Global WAM by DOE linereconciliation
Manulife Bank and Global WAM net income attributed to shareholders		–		251		–		1,496		–		1,747
Less: Manulife Bank and Global WAM attributed to:
Items excluded from core earnings		–		2		–		(29)		–		(27)
Core earnings in Manulife Bank and Global WAM		–		249		–		1,525		–		1,774
Core earnings in Manulife Bank and Global WAM, CER adjustment^(1)^		–		–		–		(2)		–		(2)
Core earnings in Manulife Bank and Global WAM, CERbasis	$	–	$	249	$	–	$	1,523	$	–	$	1,772
Other reconciliation
Other revenue per financial statements	$	67	$	272	$	79	$	6,709	$	(381)	$	6,746
General expenses per financial statements		(220)		(514)		(156)		(2,931)		(509)		(4,330)
Commission related to non-insurance contracts		(10)		(55)		3		(1,322)		39		(1,345)
Interest expense per financial statements		(12)		(1,004)		(15)		(13)		(510)		(1,554)
Total financial statements values included in Other		(175)		(1,301)		(89)		2,443		(1,361)		(483)
Less: Reclassifications:
Manulife Bank and Global WAM to their own DOE lines		–		(1,194)		–		2,443		–		1,249
Consolidation and other adjustments to net investment result DOE line		–		(20)		–		–		(557)		(577)
Less: Other attributed to:
Items excluded from core earnings		(7)		(2)		(59)		(2)		85		15
NCI		4		–		–		2		–		6
Participating policyholders		(2)		(12)		–		–		–		(14)
Add: Par earnings transfer to shareholders		34		8		–		–		–		42
Other core earnings		(136)		(65)		(30)		–		(889)		(1,120)
Other core earnings, CER adjustment^(1)^		3		–		–		–		–		3
Other core earnings, CER basis	$	(133)	$	(65)	$	(30)	$	–	$	(889)	$	(1,117)
Income tax (expenses) recoveries reconciliation
Income tax (expenses) recoveries per financial statements	$	(440)	$	(373)	$	(112)	$	(198)	$	278	$	(845)
Less: Income tax (expenses) recoveries attributed to:
Items excluded from core earnings		(89)		30		290		7		179		417
NCI		(42)		–		–		(1)		–		(43)
Participating policyholders		(30)		(25)		–		–		–		(55)
Core income tax (expenses) recoveries		(279)		(378)		(402)		(204)		99		(1,164)
Core income tax (expenses) recoveries, CER adjustment^(1)^		6		–		1		–		–		7
Core income tax (expenses) recoveries, CER basis	$	(273)	$	(378)	$	(401)	$	(204)	$	99	$	(1,157)
^(1)^ The impact of updating<br>foreign exchange rates to that which was used in 1Q24.<br><br><br>^(2)^ Manulife Bank is part of Canada segment.
Manulife Financial Corporation – First Quarter 2024	50
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The contractual service margin ( “ CSM ” ) is a liability that represents future unearned profits on insurance contracts written. It is a component of our insurance and reinsurance contract liabilities on our Statement of Financial Position and includes amounts attributed to common shareholders, participating policyholders and non-controlling interests.

In 2023, we included amounts attributed to common shareholders, participating policyholders and non-controlling interests in our reporting of changes in the CSM. Effective January 1, 2024, we no longer include amounts related to non-controlling interests in this reporting, and prior year amounts have been restated. In addition, the new business CSM reconciliation has been adjusted to remove NCI information.

Changes in the CSM net of NCI are classified as organic and inorganic. CSM growth is the percentage change in the CSM net of NCI compared with a prior period on a constant exchange rate basis.

Changes in CSM net of NCI that are classified as organic include the following impacts:

•	Impact of new insurance business (“impact of new business” or “new business CSM”) **** is the<br>impact from insurance contracts initially recognized in the period and includes acquisition expense related gains (losses) which impact the CSM in the period. It excludes the impact from entering into new<br>in-force reinsurance contracts which would generally be considered a management action.
•	Expected movement related to finance income or expenses (“interest accretion”) **** includes interest<br>accreted on the CSM net of NCI during the period and the expected change on VFA contracts if returns are as expected.
---	---
•	CSM recognized for service provided (“CSM amortization”) is the portion of the CSM net of NCI that is<br>recognized in net income for service provided in the period; and
---	---
•	Insurance experience gains (losses) and other is primarily the change from experience variances that relate to<br>future periods. This includes persistency experience and changes in future period cash flows caused by other current period experience.
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Changes in CSM net of NCI that are classified as inorganic include:

•	Changes in actuarial methods and assumptions that adjust the CSM;
•	Effect of movement in exchange rates over the reporting period;
---	---
•	Impact of markets; and
---	---
•	Reinsurance transactions, tax-related and other items that reflects the<br>impact related to future cash flows from items such as gains or losses on disposition of a business, the impact of enacted or substantially enacted income tax rate changes, material one-time only adjustments<br>that are exceptional in nature and other amounts not specifically captured in the previous inorganic items.
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Post-tax CSM is used in the definition of financial leverage ratio and consolidated capital and is calculated as the CSM adjusted for the marginal income tax rate in the jurisdictions that report a CSM balance. Post-tax CSM net of NCI is used in the adjusted book value per share calculation and is calculated as the CSM net of NCI adjusted for the marginal income tax rate in the jurisdictions that report this balance.

New business CSM growth is the percentage change in the new business CSM compared with a prior period on a constant exchange rate basis.

Manulife Financial Corporation – First Quarter 2024	51

CSM and post-tax CSM information

($ millions pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

As at	Mar 31,<br><br><br>2024		Dec 31,<br><br><br>2023		Sept 30,<br><br><br>2023		June 30,<br><br><br>2023		Mar 31,<br><br><br>2023
CSM	$	22,075	$	21,301	$	18,149	$	18,103	$	18,200
Less: CSM for NCI	****	986		861		780		680		733
CSM, net of NCI	$	21,089	$	20,440	$	17,369	$	17,423	$	17,467
CER<br>adjustment^(1)^	****	(26)		206		(27)		175		(316)
CSM, net of NCI, CER basis	$	21,063	$	20,646	$	17,342	$	17,598	$	17,151
CSM by segment
Asia	$	13,208	$	12,617	$	10,030	$	9,630	$	9,678
Asia NCI	****	986		861		780		680		733
Canada	****	4,205		4,060		3,662		3,656		3,659
U.S.	****	3,649		3,738		3,651		4,106		4,080
Corporate and Other	****	27		25		26		31		50
CSM	$	22,075	$	21,301	$	18,149	$	18,103	$	18,200
CSM, CER adjustment^(1)^
Asia	$	(5)	$	132	$	(9)	$	98	$	(301)
Asia NCI	****	–		6		7		17		(37)
Canada	****	–		–		–		–		–
U.S.	****	(20)		74		(18)		77		(14)
Corporate and Other	****	–		–		–		–		–
Total	$	(25)	$	212	$	(20)	$	192	$	(352)
CSM, CER basis
Asia	$	13,203	$	12,749	$	10,021	$	9,728	$	9,377
Asia NCI	****	986		867		787		697		696
Canada	****	4,205		4,060		3,662		3,656		3,659
U.S.	****	3,629		3,812		3,633		4,183		4,066
Corporate and Other	****	27		25		26		31		50
Total CSM, CER basis	$	22,050	$	21,513	$	18,129	$	18,295	$	17,848
Post-tax CSM
CSM	$	22,075	$	21,301	$	18,149	$	18,103	$	18,200
Marginal tax rate on CSM	****	(2,650)		(2,798)		(2,474)		(2,645)		(2,724)
Post-taxCSM	$	19,425	$	18,503	$	15,675	$	15,458	$	15,476
CSM, net of NCI	$	21,089	$	20,440	$	17,369	$	17,423	$	17,467
Marginal tax rate on CSM net of NCI	****	(2,542)		(2,692)		(2,377)		(2,546)		(2,617)
Post-tax CSM net ofNCI	$	18,547	$	17,748	$	14,992	$	14,877	$	14,850
^(1)^	The impact of reflecting CSM and CSM net of NCI using the foreign exchange rates for the Statement of Financial Position<br>in effect for 1Q24.
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Manulife Financial Corporation – First Quarter 2024	52
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New business CSM^(1)^detail, CER basis

($ millions pre-tax, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

	Quarterly Results										Full Year<br><br><br>Results
	1Q24		4Q23		3Q23		2Q23		1Q23		2023
New business CSM
Hong Kong	$	168	$	199	$	167	$	191	$	119	$	676
Japan	****	48		42		29		19		36		126
Asia Other	****	275		173		206		222		146		747
International High Net Worth												231
Mainland China												138
Singapore												244
Vietnam												87
Other Emerging Markets												47
Asia	****	491		414		402		432		301		1,549
Canada	****	70		70		51		57		46		224
U.S.	****	97		142		54		103		95		394
Total new business CSM	****	658		626		507		592		442		2,167
New business CSM, CER adjustment^(2),(3)^
Hong Kong	$	–	$	(2)	$	2	$	1	$	(1)	$	–
Japan	****	–		(3)		(1)		(1)		(3)		(8)
Asia Other	****	–		–		1		(2)		(4)		(5)
International High Net Worth												1
Mainland China												(1)
Singapore												–
Vietnam												(4)
Other Emerging Markets												(1)
Asia	****	–		(5)		2		(2)		(8)		(13)
Canada	****	–		–		1		(1)		–		–
U.S.	****	–		(2)		1		–		–		(1)
Total new business CSM	****	–		(7)		4		(3)		(8)		(14)
New business CSM, CER basis
Hong Kong	$	168	$	197	$	169	$	192	$	118	$	676
Japan	****	48		39		28		18		33		118
Asia Other	****	275		173		207		220		142		742
International High Net Worth												232
Mainland China												137
Singapore												244
Vietnam												83
Other Emerging Markets												46
Asia	****	491		409		404		430		293		1,536
Canada	****	70		70		52		56		46		224
U.S.	****	97		140		55		103		95		393
Total new business CSM, CER basis	****	658		619		511		589		434		2,153
^(1)^ New business CSM is net of NCI.<br><br><br>^(2)^ The impact of updating foreign exchange rates to that which<br>was used in 1Q24.<br> <br>^(3)^ New business CSM for Asia Other is<br>reported by country annually, on a full year basis. Other Emerging Markets within Asia Other include Indonesia, the Philippines, Malaysia, Thailand, Cambodia and Myanmar.
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Manulife Financial Corporation – First Quarter 2024	53
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Net income financial measures on a CER basis

($ Canadian millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

										Full Year<br><br><br>Results
		4Q23		3Q23		2Q23		1Q23		2023
Net income (loss) attributed to shareholders:
Asia	363	$	615	$	84	$	130	$	519	$	1,348
Canada	273		365		290		227		309		1,191
U.S.	(108)		198		72		183		186		639
Global WAM	365		365		318		317		297		1,297
Corporate and Other	(27)		116		249		168		95		628
Total net income (loss) attributed to shareholders	866		1,659		1,013		1,025		1,406		5,103
Preferred share dividends and other equity distributions	(55)		(99)		(54)		(98)		(52)		(303)
Common shareholders’ net income (loss)	811	$	1,560	$	959	$	927	$	1,354	$	4,800
CER adjustment(1)
Asia	–	$	(6)	$	2	$	13	$	(5)	$	4
Canada	–		1		1		–		(2)		–
U.S.	–		(5)		(1)		3		(1)		(4)
Global WAM	–		(3)		1		1		(3)		(4)
Corporate and Other	–		(1)		1		(12)		(2)		(14)
Total net income (loss) attributed to shareholders	–		(14)		4		5		(13)		(18)
Preferred share dividends and other equity distributions	–		–		–		–		–		–
Common shareholders’ net income (loss)	–	$	(14)	$	4	$	5	$	(13)	$	(18)
Net income (loss) attributed to shareholders, CER basis
Asia	363	$	609	$	86	$	143	$	514	$	1,352
Canada	273		366		291		227		307		1,191
U.S.	(108)		193		71		186		185		635
Global WAM	365		362		319		318		294		1,293
Corporate and Other	(27)		115		250		156		93		614
Total net income (loss) attributed to shareholders, CER basis	866		1,645		1,017		1,030		1,393		5,085
Preferred share dividends and other equity distributions, CER<br>basis	(55)		(99)		(54)		(98)		(52)		(303)
Common shareholders’ net income (loss), CER<br>basis	811	$	1,546	$	963	$	932	$	1,341	$	4,782
Asia net income attributed to shareholders, U.S. dollars
Asia net income (loss) attributed to shareholders, US<br>(2)	270	$	452	$	63	$	96	$	384	$	995
CER adjustment, US<br>(1)	–		–		1		10		(2)		9
Asia net income (loss) attributed to shareholders, U.S.<br>, CER basis(1)	270	$	452	$	64	$	106	$	382	$	1,004
Net income (loss) attributed to shareholders<br>(pre-tax)
Net income (loss) attributed to shareholders (post-tax)	866	$	1,659	$	1,013	$	1,025	$	1,406	$	5,103
Tax on net income attributed to shareholders	247		288		(67)		242		287		750
Net income (loss) attributed to shareholders<br>(pre-tax)	1,113		1,947		946		1,267		1,693		5,853
CER<br>adjustment(1)	–		(15)		–		15		(20)		(20)
Net income (loss) attributed to shareholders (pre-tax), CER basis	1,113	$	1,932	$	946	$	1,282	$	1,673	$	5,833

All values are in US Dollars.

^(1)^	The impact of updating foreign exchange rates to that which was used in 1Q24.
^(2)^	Asia net income attributed to shareholders (post-tax) in Canadian dollars is<br>translated to U.S. dollars using the U.S. dollar Statement of Income rate for the reporting period.
---	---

AUMA **** is a financial measure of the size of the Company. It is comprised of AUM and AUA. AUM includes assets of the General Account, consisting of total invested assets and segregated funds net assets, and external client assets for which we provide investment management services, consisting of mutual fund, institutional asset management and other fund net assets. AUA are assets for which we provide administrative services only. Assets under management and administration is a common industry metric for wealth and asset management businesses.

Our Global WAM business also manages assets on behalf of other segments of the Company. GlobalWAM-managed AUMA is a financial measure equal to the sum of Global WAM’s AUMA and assets managed by Global WAM on behalf of other segments. It is an important measure of the assets managed by Global WAM. ****

Manulife Financial Corporation – First Quarter 2024	54

AUM and AUMA reconciliations

(Canadian $ in millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

											US (4)
											March 31, 2024
As at	Canada		U.S.		Global<br><br><br>WAM		Corporate<br><br><br>and Other		Total		Asia	U.S.
Total invested assets
Manulife Bank net lending assets	$	25,420	$	–	$	–	$	–	$	25,420		$	–
Derivative reclassification(1)	****	–	****	–	****	–	****	5,114	****	5,114		****	–
Invested assets excluding above items	****	84,075	****	129,896	****	8,133	****	13,318	****	380,142		****	95,988
Total	****	109,495	****	129,896	****	8,133	****	18,432	****	410,676		****	95,988
Segregated funds net assets
Segregated funds net assets – Institutional	****	–	****	–	****	3,334	****	–	****	3,334		****	–
Segregated funds net assets – Other(2)	****	37,218	****	72,547	****	262,854	****	(47)	****	398,775		****	53,609
Total	****	37,218	****	72,547	****	266,188	****	(47)	****	402,109		****	53,609
AUM per financial statements	****	146,713	****	202,443	****	274,321	****	18,385	****	812,785		****	149,597
Mutual funds	****	–	****	–	****	300,178	****	–	****	300,178		****	–
Institutional asset management(3)	****	–	****	–	****	121,263	****	–	****	121,263		****	–
Other funds	****	–	****	–	****	16,981	****	–	****	16,981		****	–
Total AUM	****	146,713	****	202,443	****	712,743	****	18,385	****	1,251,207		****	149,597
Assets under administration	****	–	****	–	****	198,698	****	–	****	198,698		****	–
Total AUMA	$	146,713	$	202,443	$	911,441	$	18,385	$	1,449,905		$	149,597
Total AUMA, US (4)									$	1,071,424
Total AUMA	$	146,713	$	202,443	$	911,441	$	18,385	$	1,449,905
CER<br>adjustment(5)	****	–	****	–	****	–	****	–	****	–
Total AUMA, CER basis	$	146,713	$	202,443	$	911,441	$	18,385	$	1,449,905
Global WAM Managed AUMA
Global WAM AUMA					$	911,441
AUM managed by Global WAM for Manulife’s other<br>segments					****	211,528
Total					$	1,122,969

All values are in US Dollars.

^(1)^	Corporate and Other amount is related to net derivative assets reclassified from total invested assets to other lines on<br>the Statement of Financial Position.
^(2)^	Corporate and Other segregated funds net assets represent elimination of amounts held by the Company.<br>
---	---
^(3)^	Institutional asset management excludes Institutional segregated funds net assets.
---	---
^(4)^	US $ AUMA is calculated as total AUMA in Canadian $ divided by the US $ exchange rate in effect at the end of the quarter.<br>
---	---
^(5)^	The impact of updating foreign exchange rates to that which was used in 1Q24.
---	---
Manulife Financial Corporation – First Quarter 2024	55
---	---

AUM and AUMA reconciliations

(Canadian $ in millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

											US (4)
											December 31, 2023
As at	Canada		U.S.		Global<br><br><br>WAM		Corporate<br><br><br>and Other		Total		Asia	U.S.
Total invested assets
Manulife Bank net lending assets	$	25,321	$	–	$	–	$	–	$	25,321		$	–
Derivative reclassification(1)		–		–		–		3,201		3,201			–
Invested assets excluding above items		86,135		133,959		7,090		17,071		388,688			101,592
Total		111,456		133,959		7,090		20,272		417,210			101,592
Segregated funds net assets
Segregated funds net assets – Institutional		–		–		3,328		–		3,328			–
Segregated funds net assets – Other(2)		36,085		68,585		244,738		(46)		374,216			52,014
Total		36,085		68,585		248,066		(46)		377,544			52,014
AUM per financial statements		147,541		202,544		255,156		20,226		794,754			153,606
Mutual funds		–		–		277,365		–		277,365			–
Institutional asset management(3)		–		–		119,161		–		119,161			–
Other funds		–		–		15,435		–		15,435			–
Total AUM		147,541		202,544		667,117		20,226		1,206,715			153,606
Assets under administration		–		–		182,046		–		182,046			–
Total AUMA	$	147,541	$	202,544	$	849,163	$	20,226	$	1,388,761		$	153,606
Total AUMA, US (4)									$	1,053,209
Total AUMA	$	147,541	$	202,544	$	849,163	$	20,226	$	1,388,761
CER<br>adjustment(5)		–		5,302		14,159		–		21,017
Total AUMA, CER basis	$	147,541	$	207,846	$	863,322	$	20,226	$	1,409,778
Global WAM Managed AUMA
Global WAM AUMA					$	849,163
AUM managed by Global WAM for Manulife’s other<br>segments						205,814
Total					$	1,054,977

All values are in US Dollars.

Note: For footnotes (1) to (5), refer to the “AUM and AUMA reconciliation” table as at March 31, 2024 above.

Manulife Financial Corporation – First Quarter 2024	56

AUM and AUMA reconciliations

(Canadian $ in millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

											US (4)
											September 30, 2023
As at	Canada		U.S.		Global<br><br><br>WAM		Corporate<br><br><br>and Other		Total		Asia	U.S.
Total invested assets
Manulife Bank net lending assets	$	25,123	$	–	$	–	$	–	$	25,123		$	–
Derivative reclassification(1)		–		–		–		8,141		8,141			–
Invested assets excluding above items		78,377		128,790		6,723		15,762		365,472			95,259
Total		103,500		128,790		6,723		23,903		398,736			95,259
Segregated funds net assets
Segregated funds net assets – Institutional		–		–		3,477		–		3,477			–
Segregated funds net assets – Other(2)		34,448		64,796		230,469		(47)		353,435			47,926
Total		34,448		64,796		233,946		(47)		356,912			47,926
AUM per financial statements		137,948		193,586		240,669		23,856		755,648			143,185
Mutual funds		–		–		266,069		–		266,069			–
Institutional asset management(3)		–		–		111,754		–		111,754			–
Other funds		–		–		14,359		–		14,359			–
Total AUM		137,948		193,586		632,851		23,856		1,147,830			143,185
Assets under administration		–		–		173,897		–		173,897			–
Total AUMA	$	137,948	$	193,586	$	806,748	$	23,856	$	1,321,727		$	143,185
Total AUMA, US (4)									$	977,609
Total AUMA	$	137,948	$	193,586	$	806,748	$	23,856	$	1,321,727
CER<br>adjustment(5)		–		181		433		–		803
Total AUMA, CER basis	$	137,948	$	193,767	$	807,181	$	23,856	$	1,322,530
Global WAM Managed AUMA
Global WAM AUMA					$	806,748
AUM managed by Global WAM for Manulife’s other<br>segments						201,407
Total					$	1,008,155

All values are in US Dollars.

Note: For footnotes (1) to (5), refer to the “AUM and AUMA reconciliation” table as at March 31, 2024 above.

Manulife Financial Corporation – First Quarter 2024	57

AUM and AUMA reconciliations

(Canadian $ in millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

											US (4)
											June 30, 2023
As at	Canada		U.S.		Global<br>WAM		Corporate<br><br><br>and Other		Total		Asia	U.S.
Total invested assets
Manulife Bank net lending assets	$	25,003	$	–	$	–	$	–	$	25,003		$	–
Derivative reclassification(1)		–		–		–		3,895		3,895			–
Invested assets excluding above items		83,026		132,133		5,464		18,699		374,530			99,855
Total		108,029		132,133		5,464		22,594		403,428			99,855
Segregated funds net assets
Segregated funds net assets – Institutional		–		–		3,564		–		3,564			–
Segregated funds net assets – Other(2)		35,993		67,303		235,113		(44)		362,417			50,862
Total		35,993		67,303		238,677		(44)		365,981			50,862
AUM per financial statements		144,022		199,436		244,141		22,550		769,409			150,717
Mutual funds		–		–		267,835		–		267,835			–
Institutional asset management(3)		–		–		112,491		–		112,491			–
Other funds		–		–		14,674		–		14,674			–
Total AUM		144,022		199,436		639,141		22,550		1,164,409			150,717
Assets under administration		–		–		180,430		–		180,430			–
Total AUMA	$	144,022	$	199,436	$	819,571	$	22,550	$	1,344,839		$	150,717
Total AUMA, US (4)									$	1,016,277
Total AUMA	$	144,022	$	199,436	$	819,571	$	22,550	$	1,344,839
CER<br>adjustment(5)		–		4,509		12,431		–		19,129
Total AUMA, CER basis	$	144,022	$	203,945	$	832,002	$	22,550	$	1,363,968
Global WAM Managed AUMA
Global WAM AUMA					$	819,571
AUM managed by Global WAM for Manulife’s other<br>segments						203,825
Total					$	1,023,396

All values are in US Dollars.

Note:	For footnotes (1) to (5), refer to the “AUM and AUMA reconciliation” table as at March 31, 2024 above.<br>
Manulife Financial Corporation – First Quarter 2024	58
---	---

AUM and AUMA reconciliations

(Canadian $ in millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

											US (4)
											March 31, 2023
As at	Canada		U.S.		Global<br><br><br>WAM		Corporate<br><br><br>and Other		Total		Asia	U.S.
Total invested assets
Manulife Bank net lending assets	$	24,747	$	–	$	–	$	–	$	24,747		$	–
Derivative reclassification(1)		–		–		–		3,488		3,488			–
Invested assets excluding above items		82,733		136,454		5,565		21,460		384,241			100,827
Total		107,480		136,454		5,565		24,948		412,476			100,827
Segregated funds net assets
Segregated funds net assets – Institutional		–		–		3,718		–		3,718			–
Segregated funds net assets – Other(2)		36,374		67,935		231,860		(46)		360,326			50,197
Total		36,374		67,935		235,578		(46)		364,044			50,197
AUM per financial statements		143,854		204,389		241,143		24,902		776,520			151,024
Mutual funds		–		–		267,767		–		267,767			–
Institutional asset management(3)		–		–		113,781		–		113,781			–
Other funds		–		–		14,302		–		14,302			–
Total AUM		143,854		204,389		636,993		24,902		1,172,370			151,024
Assets under administration		–		–		177,510		–		177,510			–
Total AUMA	$	143,854	$	204,389	$	814,503	$	24,902	$	1,349,880		$	151,024
Total AUMA, US (4)									$	997,399
Total AUMA	$	143,854	$	204,389	$	814,503	$	24,902	$	1,349,880
CER<br>adjustment(5)		–		(31)		(3,524)		–		(8,129)
Total AUMA, CER basis	$	143,854	$	204,358	$	810,979	$	24,902	$	1,341,751
Global WAM Managed AUMA
Global WAM AUMA					$	814,503
AUM managed by Global WAM for Manulife’s other<br>segments						208,013
Total					$	1,022,516

All values are in US Dollars.

Note: For footnotes (1) to (5), refer to the “AUM and AUMA reconciliation” table as at March 31, 2024 above.

Manulife Financial Corporation – First Quarter 2024	59

Global WAM AUMA and Managed AUMA by business line and geographic source

($ millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

As at	Mar 31, 2024		Dec 31, 2023		Sept 30, 2023		June 30, 2023		Mar 31, 2023
Global WAM AUMA by business line
Retirement	$	467,579	$	431,601	$	410,433	$	419,380	$	413,769
Retail	****	316,406		292,629		278,372		281,814		281,198
Institutional asset management	****	127,456		124,933		117,943		118,377		119,536
Total	$	911,441	$	849,163	$	806,748	$	819,571	$	814,503
Global WAM AUMA by business line, CERbasis^(1)^
Retirement	$	467,579	$	440,299	$	410,679	$	426,683	$	413,639
Retail	****	316,406		296,998		278,488		285,608		279,888
Institutional asset management	****	127,456		126,025		118,014		119,711		117,452
Total	$	911,441	$	863,322	$	807,181	$	832,002	$	810,979
Global WAM AUMA by geographic source
Asia	$	122,354	$	115,523	$	113,642	$	112,283	$	115,819
Canada	****	243,678		233,351		219,518		226,087		223,045
U.S.	****	545,409		500,289		473,588		481,201		475,639
Total	$	911,441	$	849,163	$	806,748	$	819,571	$	814,503
Global WAM AUMA by geographic source, CERbasis^(1)^
Asia	$	122,354	$	116,536	$	113,635	$	113,804	$	112,328
Canada	****	243,678		233,351		219,518		226,087		223,045
U.S.	****	545,409		513,435		474,028		492,111		475,606
Total	$	911,441	$	863,322	$	807,181	$	832,002	$	810,979
Global WAM Managed AUMA by business line
Retirement	$	467,579	$	431,601	$	410,433	$	419,380	$	413,769
Retail	****	395,755		368,843		351,384		357,539		358,098
Institutional asset management	****	259,635		254,533		246,338		246,477		250,649
Total	$	1,122,969	$	1,054,977	$	1,008,155	$	1,023,396	$	1,022,516
Global WAM Managed AUMA by business line, CERbasis^(1)^
Retirement	$	467,579	$	440,299	$	410,679	$	426,683	$	413,639
Retail	****	395,755		374,407		351,511		362,384		356,793
Institutional asset management	****	259,635		258,501		246,510		250,258		248,557
Total	$	1,122,969	$	1,073,207	$	1,008,700	$	1,039,325	$	1,018,989
Global WAM Managed AUMA by geographic source
Asia	$	198,464	$	191,238	$	188,098	$	185,198	$	191,720
Canada	****	294,591		282,487		266,935		274,957		272,101
U.S.	****	629,914		581,252		553,122		563,241		558,695
Total	$	1,122,969	$	1,054,977	$	1,008,155	$	1,023,396	$	1,022,516
Global WAM Managed AUMA by geographic source, CERbasis^(1)^
Asia	$	198,464	$	194,238	$	188,165	$	188,377	$	188,232
Canada	****	294,591		282,487		266,935		274,957		272,101
U.S.	****	629,914		596,482		553,600		575,991		558,656
Total	$	1,122,969	$	1,073,207	$	1,008,700	$	1,039,325	$	1,018,989
^(1)^	AUMA adjusted to reflect the foreign exchange rates for the Statement of Financial Position in effect for 1Q24.<br>
---	---

Average assets under management and administration (“average AUMA”) is the average of Global WAM’s AUMA during the reporting period. It is a measure used in analyzing and explaining fee income and earnings of our Global WAM segment. It is calculated as the average of the opening balance of AUMA and the ending balance of AUMA using daily balances where available and month-end or quarter-end averages when daily averages are unavailable. Similarly, Global WAM average managed AUMA and average AUA are the average of Global WAM’s managed AUMA and AUA, respectively, and are calculated in a manner consistent with average AUMA.

Manulife Financial Corporation – First Quarter 2024	60

Manulife Bank net lending assets is a financial measure equal to the sum of Manulife Bank’s loans and mortgages, net of allowances. Manulife Bank average net lending assets is a financial measure which is calculated as the quarter-end average of the opening and the ending balance of net lending assets. Both of these financial measures are a measure of the size of Manulife Bank’s portfolio of loans and mortgages and are used to analyze and explain its earnings.

As at<br> <br>($millions)	Mar 31,<br><br><br>2024		Dec 31,<br><br><br>2023		Sept 30,<br><br><br>2023		June 30,<br><br><br>2023		Mar 31,<br><br><br>2023
Mortgages	$	52,605	$	52,421	$	51,012	$	51,459	$	52,128
Less: mortgages not held by Manulife Bank	****	29,568		29,536		28,402		29,088		30,087
Total mortgages held by Manulife Bank	****	23,037		22,885		22,610		22,371		22,041
Loans to Bank clients	****	2,383		2,436		2,513		2,632		2,706
Manulife Bank net lending assets	$	25,420	$	25,321	$	25,123	$	25,003	$	24,747
Manulife Bank average net lending assets
Beginning of period	$	25,321	$	25,123	$	25,003	$	24,747	$	24,779
End of period	****	25,420		25,321		25,123		25,003		24,747
Manulife Bank average net lending assets byquarter	$	25,371	$	25,222	$	25,063	$	24,875	$	24,763
Manulife Bank average net lending assets – fullyear	$	25,100	$	25,050

Financial leverage ratio is a debt-to-equity ratio. The ratio is calculated as the sum of long-term debt, capital instruments and preferred shares and other equity instruments divided by the sum of long-term debt, capital instruments, equity and post-tax CSM.

Adjusted book value is the sum of common shareholders’ equity and post-tax CSM net of NCI. It is an important measure for monitoring growth and measuring insurance businesses’ value. Adjusted book value per common share is calculated by dividing adjusted book value by the number of common shares outstanding at the end of the period.

As at<br> <br>($millions)	Mar 31,<br><br><br>2024		Dec 31,<br><br><br>2023		Sept 30,<br><br><br>2023		June 30,<br><br><br>2023		Mar 31,<br><br><br>2023
Common shareholders’ equity	$	41,590	$	40,379	$	40,747	$	39,047	$	40,715
Post-tax CSM, net of<br>NCI	****	18,547		17,748		14,992		14,877		14,850
Adjusted book value	$	60,137	$	58,127	$	55,739	$	53,924	$	55,565

Consolidated capital serves as a foundation of our capital management activities at the MFC level. Consolidated capital is calculated as the sum of: (i) total equity excluding accumulated other comprehensive income (“AOCI”) on cash flow hedges; (ii) post-tax CSM; and (iii) certain other capital instruments that qualify as regulatory capital. For regulatory reporting purposes under the LICAT framework, the numbers are further adjusted for various additions or deductions to capital as mandated by the guidelines defined by OSFI.

As at<br> <br>($millions)	Mar 31,<br><br><br>2024		Dec 31,<br><br><br>2023		Sept 30,<br><br><br>2023		June 30,<br><br><br>2023		Mar 31,<br><br><br>2023
Total equity	$	49,892	$	48,727	$	49,035	$	47,156	$	48,751
Less: AOCI gain/(loss) on cash flow hedges	****	70		26		47		–		(38)
Total equity excluding AOCI on cash flow hedges	****	49,822		48,701		48,988		47,156		48,789
Post-tax CSM	****	19,425		18,503		15,675		15,458		15,476
Qualifying capital instruments	****	7,196		6,667		6,702		6,662		7,317
Consolidated capital	$	76,443	$	73,871	$	71,365	$	69,276	$	71,582
Manulife Financial Corporation – First Quarter 2024	61
---	---

Core EBITDA is a financial measure which Manulife uses to better understand the long-term earnings capacity and valuation of our Global WAM business on a basis more comparable to how the profitability of global asset managers are generally measured. Core EBITDA presents core earnings before the impact of interest, taxes, depreciation, and amortization. Core EBITDA excludes certain acquisition expenses related to insurance contracts in our retirement businesses which are deferred and amortized over the expected lifetime of the customer relationship. Core EBITDA was selected as a key performance indicator for our Global WAM business, as EBITDA is widely used among asset management peers, and core earnings is a primary profitability metric for the Company overall.

Reconciliation of Global WAM core earnings to core EBITDA and Global WAM core EBITDA by business line and geographic source

($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

	Quarterly Results										Full Year<br><br><br>Results
	1Q24		4Q23		3Q23		2Q23		1Q23		2023
Global WAM core earnings (post-tax)	$	357	$	353	$	361	$	320	$	287	$	1,321
Add back taxes, acquisition costs, other expenses and deferred sales commissions
Core income tax (expenses) recoveries (see above)	****	58		55		59		45		45		204
Amortization of deferred acquisition costs and other depreciation	****	42		45		41		40		40		166
Amortization of deferred sales commissions	****	20		21		19		19		21		80
Core EBITDA	$	477	$	474	$	480	$	424	$	393	$	1,771
CER<br>adjustment^(1)^	****	–		(4)		1		1		(2)		(4)
Core EBITDA, CER basis	$	477	$	470	$	481	$	425	$	391	$	1,767
Core EBITDA by business line
Retirement	$	265	$	265	$	242	$	233	$	217	$	957
Retail	****	178		175		190		168		171		704
Institutional asset management	****	34		34		48		23		5		110
Total	$	477	$	474	$	480	$	424	$	393	$	1,771
Core EBITDA by geographic source
Asia	$	139	$	135	$	132	$	125	$	113	$	505
Canada	****	139		152		146		148		136		582
U.S.	****	199		187		202		151		144		684
Total	$	477	$	474	$	480	$	424	$	393	$	1,771
Core EBITDA by business line, CERbasis^(2)^
Retirement	$	265	$	262	$	243	$	234	$	217	$	956
Retail	****	178		174		190		168		170		702
Institutional asset management	****	34		34		48		23		4		109
Total, CER basis	$	477	$	470	$	481	$	425	$	391	$	1,767
Core EBITDA by geographic source, CERbasis^(2)^
Asia	$	139	$	133	$	132	$	126	$	111	$	502
Canada	****	139		152		146		148		136		582
U.S.	****	199		185		203		151		144		683
Total, CER basis	$	477	$	470	$	481	$	425	$	391	$	1,767
^(1)^	The impact of updating foreign exchange rates to that which was used in 1Q24.
---	---
^(2)^	Core EBITDA adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q24.<br>
---	---
Manulife Financial Corporation – First Quarter 2024	62
---	---

Core EBITDA margin is a financial measure which Manulife uses to better understand the long-term profitability of our Global WAM business on a more comparable basis to how profitability of global asset managers are measured. Core EBITDA margin presents core earnings before the impact of interest, taxes, depreciation, and amortization divided by core revenue from these businesses. Core revenue is used to calculate our core EBITDA margin, and is equal to the sum of pre-tax other revenue and investment income in Global WAM included in core EBITDA, and it excludes such items as revenue related to integration and acquisitions and market experience gains (losses). Core EBITDA margin was selected as a key performance indicator for our Global WAM business, as EBITDA margin is widely used among asset management peers, and core earnings is a primary profitability metric for the Company overall.

	Quarterly Results										Full Year<br><br><br>Results
($ millions, unless otherwise stated)	1Q24		4Q23		3Q23		2Q23		1Q23		2023
Core EBITDA margin
Core EBITDA	$	477	$	474	$	480	$	424	$	393	$	1,771
Core revenue	$	1,873	$	1,842	$	1,783	$	1,722	$	1,756	$	7,103
Core EBITDA margin	****	25.5%		25.7%		26.9%		24.6%		22.4%		24.9%
Global WAM core revenue
Other revenue per financial statements	$	1,808	$	1,719	$	1,645	$	1,691	$	1,691	$	6,746
Less: Other revenue in segments other than Global WAM	****	58		31		(64)		44		26		37
Other revenue in Global WAM (fee income)	$	1,750	$	1,688	$	1,709	$	1,647	$	1,665	$	6,709
Investment income per financial statements	$	4,251	$	4,497	$	4,028	$	4,135	$	3,520	$	16,180
Realized and unrealized gains (losses) on assets supporting<br>insurance and investment contract liabilities per financial statements	****	538		2,674		(2,430)		950		1,944		3,138
Total investment income	****	4,789		7,171		1,598		5,085		5,464		19,318
Less: Investment income in segments other than Global<br>WAM	****	4,649		6,941		1,578		5,010		5,357		18,886
Investment income in Global WAM	$	140	$	230	$	20	$	75	$	107	$	432
Total other revenue and investment income in Global WAM	$	1,890	$	1,918	$	1,729	$	1,722	$	1,772	$	7,141
Less: Total revenue reported in items excluded from core earnings
Market experience gains (losses)	****	8		63		(54)		7		12		28
Revenue related to integration and acquisitions	****	9		13		–		(7)		4		10
Global WAM core revenue	$	1,873	$	1,842	$	1,783	$	1,722	$	1,756	$	7,103

Expense measures

With the adoption of IFRS 17, we have replaced core general expenses with two new measures: core expenses and core expenditures. Under IFRS 17, expenses previously reported in general expenses are now reported as:

1.	General expenses that flow directly through income;
2.	Directly attributable maintenance expenses, which are reported in insurance service expenses and flow directly through<br>income;
---	---
3.	Directly attributable acquisition expenses for contracts measured using the PAA method which are reported in insurance<br>service expenses, and flow directly through income; and
---	---
4.	Directly attributable acquisition expenses that are capitalized into the CSM.
---	---

Total expenses include items 1 to 3 above and total expenditures include items 1 to 4 above.

Core expenses is used to calculate our expense efficiency ratio and is equal to total expenses that are included in core earnings and excludes such items as material legal provisions for settlements, restructuring charges and expenses related to integration and acquisitions.

Manulife Financial Corporation – First Quarter 2024	63

	Quarterly Results										Full Year<br><br><br>Results
($ millions, and based on actual foreign<br><br><br>exchange rates in effect in the applicable<br> <br>reporting period, unless otherwise<br>stated)	1Q24		4Q23		3Q23		2Q23		1Q23		2023
Core expenses
General expenses - Statements of Income	$	1,102	$	1,180	$	1,042	$	1,022	$	1,086	$	4,330
Directly attributable acquisition expense for contracts measured using the PAA method^(1)^	****	38		42		37		35		33		147
Directly attributable maintenance expense^(1)^	****	539		565		544		550		546		2,205
Total expenses	****	1,679		1,787		1,623		1,607		1,665		6,682
Less: General expenses included in items excluded from core earnings
Restructuring charge	****	–		46		–		–		–		46
Integration and acquisition	****	–		8		–		–		–		8
Legal provisions and Other expenses	****	6		8		1		9		60		78
Total	****	6		62		1		9		60		132
Core expenses	$	1,673	$	1,725	$	1,622	$	1,598	$	1,605	$	6,550
CER<br>adjustment^(2)^	****	–		(11)		2		(2)		(14)		(25)
Core expenses, CER basis	$	1,673	$	1,714	$	1,624	$	1,596	$	1,591	$	6,525
Total expenses	$	1,679	$	1,787	$	1,623	$	1,607	$	1,665	$	6,682
CER<br>adjustment^(2)^	****	–		(12)		2		(3)		(13)		(26)
Total expenses, CER basis	$	1,679	$	1,775	$	1,625	$	1,604	$	1,652	$	6,656
^(1)^	Expenses are components of insurance service expenses on the Statements of Income that flow directly through income.<br>
---	---
^(2)^	The impact of updating foreign exchange rates to that which was used in 1Q24.
---	---

Expense efficiency ratio is a financial measure which Manulife uses to measure progress towards our target to be more efficient. It is defined as core expenses divided by the sum of core earnings before income taxes (“pre-tax core earnings”) and core expenses.

Embeddedvalue ( “ EV ” ) is a measure of the present value of shareholders’ interests in the expected future distributable earnings on in-force business reflected in the Consolidated Statements of Financial Position of Manulife, excluding any value associated with future new business.

With the adoption of IFRS 17, the calculation of EV has changed for periods beginning after 2022 as follows:

•	Canadian businesses, the International High Net Worth business, as well as business ceded to an affiliate reinsurer,<br>reflect IFRS 17 earnings and LICAT required capital, instead of IFRS 4 earnings and LICAT required capital;
•	U.S. businesses reflects local statutory earnings (NAIC) and capital requirements (RBC), instead of IFRS 4 earnings and<br>LICAT required capital; and
---	---
•	Asian businesses remained on local statutory bases.
---	---

EV for periods after December 31, 2022 is calculated as the sum of the adjusted net worth and the value of in-force business calculated as at December 31. The adjusted net worth is the IFRS shareholders’ equity adjusted for goodwill and intangible assets, fair value of surplus assets, the fair value of debt, preferred shares, and other equity, and local statutory balance sheet, regulatory reserve, and capital for our U.S. and Asian businesses. The value of in-force business in Canada and the International High Net Worth business and business ceded to an affiliate reinsurer is the present value of expected future IFRS earnings, on an IFRS 17 basis, on in-force business less the present value of the cost of holding capital to support the in-force business under the LICAT framework. The value of the remaining in-force business in the U.S. and Asia reflects local statutory earnings and capital requirements. The value of in-force business excludes Global WAM, Bank or P&C Reinsurance businesses.

Net annualized fee income yieldon average AUMA (“Net fee income yield”) is a financial measure that represents the net annualized fee income from Global WAM channels over average AUMA. This measure provides information on Global WAM’s adjusted return generated from managing AUMA.

Manulife Financial Corporation – First Quarter 2024	64

Net annualized fee income is a financial measure that represents Global WAM income before income taxes, adjusted to exclude items unrelated to net fee income, including general expenses, investment income, non-AUMA related net benefits and claims, and net premium taxes. It also excludes the components of Global WAM net fee income from managing assets on behalf of other segments. This measure is annualized based on the number of days in the year divided by the number of days in the reporting period.

Reconciliation of income before income taxes to net fee income yield

	Quarterly Results										Full Year<br><br><br>Results
($ millions, unless otherwise stated)	1Q24		4Q23		3Q23		2Q23		1Q23		2023
Income before income taxes	$	1,252	$	2,123	$	1,174	$	1,436	$	1,719	$	6,452
Less: Income before income taxes for segments other than Global<br>WAM	****	826		1,699		808		1,074		1,374		4,955
Global WAM income before income taxes	****	426		424		366		362		345		1,497
Items unrelated to net fee income	****	665		648		717		674		676		2,715
Global WAM net fee income	****	1,091		1,072		1,083		1,036		1,021		4,212
Less: Net fee income from other segments	****	155		174		171		142		136		623
Global WAM net fee income excluding net fee income from other<br>segments	****	936		898		912		894		885		3,589
Net annualized fee income	$	3,765	$	3,563	$	3,618	$	3,584	$	3,589	$	3,589
Average Assets under Management and Administration	$	879,837	$	816,706	$	813,157	$	814,945	$	804,455	$	812,662
Net fee income yield (bps)	****	42.8		43.6		44.5		44.0		44.6		44.2

New business value ( “ NBV ” ) is the change in embedded value as a result of sales in the reporting period. NBV is calculated as the present value of shareholders’ interests in expected future distributable earnings, after the cost of capital calculated under the LICAT framework in Canada and the International High Net Worth business, and the local capital requirements in Asia and the U.S., on actual new business sold in the period using assumptions that are consistent with the assumptions used in the calculation of embedded value. NBV excludes businesses with immaterial insurance risks, such as the Company’s Global WAM, Manulife Bank and the P&C Reinsurance businesses. NBV is a useful metric to evaluate the value created by the Company’s new business franchise.

New business value margin (“NBV margin”) is calculated as NBV divided by APE sales excluding non-controlling interests. APE sales are calculated as 100% of regular premiums and deposits sales and 10% of single premiums and deposits sales. NBV margin is a useful metric to help understand the profitability of our new business.

Sales are measured according to product type:

For individual insurance, sales include 100% of new annualized premiums and 10% of both excess and single premiums. For individual insurance, new annualized premiums reflect the annualized premium expected in the first year of a policy that requires premium payments for more than one year. Single premium is the lump sum premium from the sale of a single premium product, e.g. travel insurance. Sales are reported gross before the impact of reinsurance.

For group insurance, sales include new annualized premiums and administrative services only premium equivalents on new cases, as well as the addition of new coverages and amendments to contracts, excluding rate increases.

Insurance-based wealth accumulation product sales include all new deposits into variable and fixed annuity contracts. As we discontinued sales of new variable annuity contracts in the U.S. in the first quarter of 2013, subsequent deposits into existing U.S. variable annuity contracts are not reported as sales. Asia variable annuity deposits are included in APE sales.

APE sales are comprised of 100% of regular premiums and deposits and 10% of excess and single premiums and deposits for both insurance and insurance-based wealth accumulation products.

Manulife Financial Corporation – First Quarter 2024	65

Gross flows is a new business measure presented for our Global WAM business and includes all deposits into mutual funds, group pension/retirement savings products, private wealth and institutional asset management products. Gross flows is a common industry metric for WAM businesses as it provides a measure of how successful the businesses are at attracting assets.

Net flows is presented for our Global WAM business and includes gross flows less redemptions for mutual funds, group pension/retirement savings products, private wealth and institutional asset management products. In addition, net flows include the net flows of exchange traded funds and non-proprietary products sold by Manulife Securities.****Net flows is a common industry metric for WAM businesses as it provides a measure of how successful the businesses are at attracting and retaining assets. When net flows are positive, they are referred to as net inflows. Conversely, negative net flows are referred to as net outflows.

Remittances is defined as the cash remitted or made available for distribution to Manulife Financial Corporation from its subsidiaries. It is a key metric used by management to evaluate our financial flexibility.

E4	Caution regarding forward-looking statements

From time to time, MFC makes written and/or oral forward-looking statements, including in this document. In addition, our representatives may make forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the “safe harbour” provisions of Canadian provincial securities laws and the U.S. Private Securities Litigation Reform Act of 1995.

The forward-looking statements in this document include, but are not limited to, statements with respect to the capital release associated with reinsurance transactions, possible share buybacks, the impact of changes in tax laws, the probability and impact of LICAT scenario switches, and strategic and products risks and also relate to, among other things, our objectives, goals, strategies, intentions, plans, beliefs, expectations and estimates, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”, “likely”, “suspect”, “outlook”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “forecast”, “objective”, “seek”, “aim”, “continue”, “goal”, “restore”, “embark” and “endeavour” (or the negative thereof) and words and expressions of similar import, and include statements concerning possible or assumed future results. Although we believe that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements and they should not be interpreted as confirming market or analysts’ expectations in any way.

Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from expectations include but are not limited to: general business and economic conditions (including but not limited to the performance, volatility and correlation of equity markets, interest rates, credit and swap spreads, inflation rates, currency rates, investment losses and defaults, market liquidity and creditworthiness of guarantors, reinsurers and counterparties); the ongoing prevalence of COVID-19, including any variants, as well as actions that have been, or may be taken by governmental authorities in response to COVID-19, including the impacts of any variants; changes in laws and regulations; changes in accounting standards applicable in any of the territories in which we operate; changes in regulatory capital requirements; our ability to obtain premium rate increases on in-force policies; our ability to execute strategic plans and changes to strategic plans; downgrades in our financial strength or credit ratings; our ability to maintain our reputation; impairments of goodwill or intangible assets or the establishment of provisions against future tax assets; the accuracy of estimates relating to morbidity, mortality and policyholder behaviour; the accuracy of other estimates used in applying accounting policies, actuarial methods and embedded value methods; our ability to implement effective hedging strategies and unforeseen consequences arising from such strategies; our ability to source appropriate assets to back our long-dated liabilities; level of competition and consolidation; our ability to market and distribute products through current and future distribution channels; unforeseen liabilities or asset impairments arising from acquisitions and dispositions of businesses; the realization of losses arising from the sale of investments classified as fair value through other comprehensive income; our liquidity, including the availability of financing to satisfy existing financial liabilities on expected maturity dates when required; obligations to pledge additional collateral;

Manulife Financial Corporation – First Quarter 2024	66

the availability of letters of credit to provide capital management flexibility; accuracy of information received from counterparties and the ability of counterparties to meet their obligations; the availability, affordability and adequacy of reinsurance; legal and regulatory proceedings, including tax audits, tax litigation or similar proceedings; our ability to adapt products and services to the changing market; our ability to attract and retain key executives, employees and agents; the appropriate use and interpretation of complex models or deficiencies in models used; political, legal, operational and other risks associated with our non-North American operations; geopolitical uncertainty, including international conflicts; acquisitions and our ability to complete acquisitions including the availability of equity and debt financing for this purpose; the disruption of or changes to key elements of the Company’s or public infrastructure systems; environmental concerns, including climate change; our ability to protect our intellectual property and exposure to claims of infringement; and our inability to withdraw cash from subsidiaries and the fact that the amount and timing of any future common share repurchases will depend on the earnings, cash requirements and financial condition of Manulife, market conditions, capital requirements (including under LICAT capital standards), common share issuance requirements, applicable law and regulations (including Canadian and U.S. securities laws and Canadian insurance company regulations), and other factors deemed relevant by Manulife, and may be subject to regulatory approval or conditions.

Additional information about material risk factors that could cause actual results to differ materially from expectations and about material factors or assumptions applied in making forward-looking statements may be found in this document under “Risk Management and Risk Factors Update” and “Critical Actuarial and Accounting Policies”, under “Risk Management and Risk Factors” and “Critical Actuarial and Accounting Policies” in the Management’s Discussion and Analysis in our most recent annual report and, in the “Risk Management” note to the consolidated financial statements in our most recent annual and interim reports and elsewhere in our filings with Canadian and U.S. securities regulators.

The forward-looking statements in this document are, unless otherwise indicated, stated as of the date hereof and are presented for the purpose of assisting investors and others in understanding our financial position and results of operations, our future operations, as well as our objectives and strategic priorities, and may not be appropriate for other purposes. We do not undertake to update any forward-looking statements, except as required by law.

E5	Quarterly financial information

The following table provides summary information related to our eight most recently completed quarters. With the adoption of IFRS 17 and IFRS 9 on January 1, 2023, we have restated 2022 quarterly information using the new standards.

As at and for the three months ended( millions, except per share amounts orotherwise stated)		Dec 31,<br><br><br>2023		Sept 30,<br><br><br>2023		Jun 30,<br><br><br>2023		Mar 31,<br><br><br>2023		Dec 31,<br><br><br>2022		Sept 30,<br><br><br>2022		Jun 30,<br><br><br>2022
Revenue
Insurance revenue	6,497	$	6,414	$	6,215	$	5,580	$	5,763	$	6,128	$	5,560	$	5,732
Net investment result	4,493		6,784		1,265		4,819		5,153		1,440		2,439		(2,454)
Other revenue	1,808		1,719		1,645		1,691		1,691		1,671		1,547		1,446
Total revenue	12,798	$	14,917	$	9,125	$	12,090	$	12,607	$	9,239	$	9,546	$	4,724
Income (loss) before income taxes	1,252	$	2,123	$	1,174	$	1,436	$	1,719	$	697	$	484	$	(2,656)
Income tax (expenses) recoveries	(280)		(322)		51		(265)		(309)		226		(60)		553
Net income (loss)	972	$	1,801	$	1,225	$	1,171	$	1,410	$	923	$	424	$	(2,103)
Net income (loss) attributed to shareholders	866	$	1,659	$	1,013	$	1,025	$	1,406	$	915	$	491	$	(2,119)
Basic earnings (loss) per common share	0.45	$	0.86	$	0.53	$	0.50	$	0.73	$	0.43	$	0.23	$	(1.13)
Diluted earnings (loss) per common share	0.45	$	0.86	$	0.52	$	0.50	$	0.73	$	0.43	$	0.23	$	(1.13)
Segregated funds deposits	12,206	$	10,361	$	10,172	$	10,147	$	11,479	$	10,165	$	9,841	$	10,094
Total assets (in billions)	907	$	876	$	836	$	851	$	862	$	834	$	818	$	810
Weighted average common shares (in millions)	1,805		1,810		1,826		1,842		1,858		1,878		1,902		1,921
Diluted weighted average common shares (in<br>millions)	1,810		1,814		1,829		1,846		1,862		1,881		1,904		1,924
Dividends per common share	0.400	$	0.365	$	0.365	$	0.365	$	0.365	$	0.330	$	0.330	$	0.330
CDN to US1 - Statement of Financial Position	1.3533		1.3186		1.3520		1.3233		1.3534		1.3549		1.3740		1.2900
CDN to US1 - Statement of Income	1.3485		1.3612		1.3411		1.3430		1.3524		1.3575		1.3057		1.2765

All values are in US Dollars.

Manulife Financial Corporation – First Quarter 2024	67

E6	Revenue
Revenue	Quarterly Results
---	---	---	---	---	---	---
($ millions, unaudited)	1Q24		4Q23		1Q23
Insurance revenue	$	6,497	$	6,414	$	5,763
Net investment income	****	4,493		6,784		5,153
Other revenue	****	1,808		1,719		1,691
Total revenue	$	12,798	$	14,917	$	12,607
Asia	$	3,586	$	3,572	$	3,283
Canada	****	3,540		4,663		3,545
U.S.	****	3,691		4,566		3,856
Global Wealth and Asset Management	****	1,552		1,632		1,451
Corporate and Other	****	429		484		472
Total revenue	$	12,798	$	14,917	$	12,607

Total revenue was $12.8 billion in 1Q24 compared with $12.6 billion in 1Q23 due to an increase in insurance revenue and other revenue, partially offset by lower net investment income.

By segment, the increase in revenue reflected a higher insurance revenue in the U.S, Canada and Asia, and higher other revenue in Global WAM and Asia. Net investment income declined in the U.S., Canada and Corporate and Other and increased in Asia and Global WAM.

E7	Other

No changes were made in our internal control over financial reporting during the three months ended March 31, 2024, that have materially affected or are reasonably likely to materially affect our internal control over financial reporting.

As in prior quarters, MFC’s Audit Committee has reviewed this MD&A and the unaudited interim financial report and MFC’s Board of Directors approved this MD&A prior to its release.

Manulife Financial Corporation – First Quarter 2024	68

Consolidated Statements of Financial Position
As at<br><br><br>(Canadian $ in millions, unaudited)	March 31, 2024		December 31, 2023
---	---	---	---	---
Assets
Cash and short-term securities	$	21,481	$	20,338
Debt securities	****	200,103		212,149
Public equities	****	27,695		25,531
Mortgages	****	52,605		52,421
Private placements	****	45,762		45,606
Loans to Bank clients	****	2,383		2,436
Real estate	****	13,052		13,049
Other invested assets	****	47,595		45,680
Total invested assets (note 3)	****	410,676		417,210
Other assets
Accrued investment income	****	2,971		2,678
Derivatives (note 4)	****	8,368		8,546
Insurance contract assets (note 5)	****	140		145
Reinsurance contract held assets (note 5)	****	54,070		42,651
Deferred tax assets	****	6,467		6,739
Goodwill and intangible assets	****	10,399		10,310
Miscellaneous	****	12,019		9,751
Total other assets	****	94,434		80,820
Segregated funds net assets (note 15)	****	402,109		377,544
Total assets	$	907,219	$	875,574
Liabilities and Equity
Liabilities
Insurance contract liabilities, excluding those for account of segregated fund holders (note 5)	$	370,940	$	367,996
Reinsurance contract held liabilities (note 5)	****	2,987		2,831
Investment contract liabilities (note 6)	****	12,174		11,816
Deposits from Bank clients	****	21,871		21,616
Derivatives (note 4)	****	13,465		11,730
Deferred tax liabilities	****	1,818		1,697
Other liabilities	****	18,534		18,879
Long-term debt (note 8)	****	6,233		6,071
Capital instruments (note 9)	****	7,196		6,667
Total liabilities, excluding those for account of segregatedfund holders	****	455,218		449,303
Insurance contract liabilities for account of segregated fund holders (note 5)	****	119,896		114,143
Investment contract liabilities for account of segregated fund<br>holders	****	282,213		263,401
Insurance and investment contract liabilities for account ofsegregated fund holders (note 15)	****	402,109		377,544
Total liabilities	****	857,327		826,847
Equity
Preferred shares and other equity (note 10)	****	6,660		6,660
Common shares (note 10)	****	21,488		21,527
Contributed surplus	****	217		222
Shareholders and other equity holders’ retained earnings	****	4,779		4,819
Shareholders and other equity holders’ accumulated other comprehensive income (loss)<br>(“AOCI”):
Insurance finance income (expenses)	****	34,196		30,010
Reinsurance finance income (expenses)	****	(5,753)		(4,634)
Fair value through other comprehensive income (“OCI”) investments	****	(18,715)		(16,262)
Translation of foreign operations	****	5,393		4,801
Other	****	(15)		(104)
Total shareholders and other equity holders’ equity	****	48,250		47,039
Participating policyholders’ equity	****	314		257
Non-controlling<br>interests	****	1,328		1,431
Total equity	****	49,892		48,727
Total liabilities and equity	$	907,219	$	875,574

The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements.

Roy Gori	Don Lindsay
President and Chief Executive Officer	Chair of the Board of Directors
Manulife Financial Corporation – First Quarter 2024	69
---	---

Consolidated Statements of Income
For the three months ended March 31,<br><br><br>(Canadian $ in millions except per share amounts, unaudited)	2024		2023
---	---	---	---	---
Insurance service result
Insurance revenue (note 5)	$	6,497	$	5,763
Insurance service expenses	****	(5,272)		(4,782)
Net expenses from reinsurance contracts held	****	(247)		(132)
Total insurance service result	****	978		849
Investment result
Investment income (note 3)
Investment income	****	4,251		3,520
Realized and unrealized gains (losses) on assets supporting insurance and investment contract<br>liabilities	****	538		1,944
Investment expenses	****	(296)		(311)
Net investment income (loss)	****	4,493		5,153
Insurance finance income (expenses) and effect of movement in foreign exchange rates (note 5)	****	(4,458)		(3,778)
Reinsurance finance income (expenses) and effect of movement in foreign exchange rates (note 5)	****	424		(322)
Decrease (increase) in investment contract liabilities	****	(111)		(83)
	****	348		970
Segregated funds investment result (note 15)
Investment income related to segregated funds net assets	****	22,626		17,613
Financial changes related to insurance and investment contract<br>liabilities for account of segregated fund holders	****	(22,626)		(17,613)
Net segregated funds investment result	****	–		–
Total investment result	****	348		970
Other revenue (note 11)	****	1,808		1,691
General expenses	****	(1,102)		(1,086)
Commissions related to non-insurance contracts	****	(356)		(338)
Interest expenses	****	(424)		(367)
Net income (loss) before income taxes	****	1,252		1,719
Income tax (expenses) recoveries	****	(280)		(309)
Net income (loss)	$	972	$	1,410
Net income (loss) attributed to:
Non-controlling interests	$	55	$	54
Participating policyholders	****	51		(50)
Shareholders and other equity holders	****	866		1,406
	$	972	$	1,410
Net income (loss) attributed to shareholders	$	866	$	1,406
Preferred share dividends and other equity distributions	****	(55)		(52)
Common shareholders’ net income (loss)	$	811	$	1,354
Earnings per share
Basic earnings per common share (note 10)	$	0.45	$	0.73
Diluted earnings per common share (note 10)	****	0.45		0.73
Dividends per common share	****	0.40		0.37

The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements.

Manulife Financial Corporation – First Quarter 2024	70

Consolidated Statements of Comprehensive Income
For the three months ended March 31,
---	---	---	---	---
(Canadian $ in millions, unaudited)	2024		2023
Net income (loss)	$	972	$	1,410
Other comprehensive income (loss) (“OCI”), net of tax:
Items that may be subsequently reclassified to net income:
Foreign exchange gains (losses) on:
Translation of foreign operations	****	747		28
Net investment hedges	****	(155)		19
Insurance finance income (expenses)	****	4,047		(7,096)
Reinsurance finance income (expenses)	****	(1,084)		788
Fair value through OCI investments:
Unrealized gains (losses) arising during the period on assets supporting insurance and investment<br>contract liabilities	****	(3,396)		6,482
Reclassification of net realized gains (losses) and provision for credit losses recognized in<br>income	****	895		46
Other	****	39		(33)
Total items that may be subsequently reclassified to netincome	****	1,093		234
Items that will not be reclassified to net income	****	49		(14)
Other comprehensive income (loss), net of tax	****	1,142		220
Total comprehensive income (loss), net of tax	$	2,114	$	1,630
Total comprehensive income (loss) attributed to:
Non-controlling interests	$	(104)	$	84
Participating policyholders	****	57		(58)
Shareholders and other equity holders	****	2,161		1,604
Income Taxes included in Other Comprehensive Income
For the three months ended March 31,
(Canadian $ in millions, unaudited)	2024		2023
Income tax expenses (recoveries) on:
Unrealized foreign exchange gains (losses) on net investment hedges	$	(7)	$	2
Insurance / reinsurance finance income (expenses)	****	949		(1,328)
Unrealized gains (losses) on fair value through OCI investments	****	(739)		1,306
Reclassification of net realized gains (losses) on fair value through OCI investments	****	186		–
Other	****	25		(14)
Total income tax expenses (recoveries)	$	414	$	(34)

The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements.

Manulife Financial Corporation – First Quarter 2024	71

Consolidated Statements of Changes in Equity
For the three months ended March 31,
---	---	---	---	---
(Canadian $ in millions, unaudited)	2024		2023
Preferred shares and other equity
Balance, beginning of period	$	6,660	$	6,660
Issued (note 10)	****	–		–
Balance, end of period	****	6,660		6,660
Common shares
Balance, beginning of period	****	21,527		22,178
Repurchased (note 10)	****	(74)		(186)
Issued on exercise of stock options and deferred share<br>units	****	35		20
Balance, end of period	****	21,488		22,012
Contributed surplus
Balance, beginning of period	****	222		238
Exercise of stock options and deferred share units	****	(5)		(4)
Stock option expense	****	–		1
Balance, end of period	****	217		235
Shareholders and other equity holders’ retained earnings
Balance, beginning of period	****	4,819		3,947
Opening adjustment of financial assets at adoption of IFRS 9<br>	****	–		(409)
Restated balance, beginning of period	****	4,819		3,538
Net income (loss) attributed to shareholders and other equity holders	****	866		1,406
Common shares repurchased	****	(129)		(212)
Common share dividends	****	(722)		(671)
Preferred share dividends and other equity distributions	****	(55)		(52)
Balance, end of period	****	4,779		4,009
Shareholders and other equity holders’ accumulated other comprehensive income (loss)(“AOCI”)
Balance, beginning of period	****	13,811		13,853
Opening adjustment of financial assets at adoption of IFRS 9<br>	****	–		408
Restated balance, beginning of period	****	13,811		14,261
Change in unrealized foreign exchange gains (losses) on net foreign operations	****	592		45
Changes in insurance / reinsurance finance income (expenses)	****	3,067		(5,682)
Change in unrealized gains (losses) on fair value through OCI investments	****	(2,453)		5,882
Other changes in OCI attributed to shareholders and other equity<br>holders	****	89		(47)
Balance, end of period	****	15,106		14,459
Total shareholders and other equity holders’ equity,end of period	****	48,250		47,375
Participating policyholders’ equity
Balance, beginning of period	****	257		(77)
Net income (loss) attributed to participating policyholders	****	51		(50)
Other comprehensive income (losses) attributed to participating<br>policyholders	****	6		(8)
Balance, end of period	****	314		(135)
Non-controlling interests
Balance, beginning of period	****	1,431		1,427
Net income (loss) attributed to non-controlling<br>interests	****	55		54
Other comprehensive income (losses) attributed to non-controlling<br>interests	****	(159)		30
Contributions (distributions and acquisition), net	****	1		–
Balance, end of period	****	1,328		1,511
Total equity, end of period	$	49,892	$	48,751

The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements.

Manulife Financial Corporation – First Quarter 2024	72

Consolidated Statements of Cash Flows
For the three months ended March 31,
---	---	---	---
(Canadian in millions, unaudited)	2024		2023
Operating activities
Net income (loss)	972	$	1,410
Adjustments:
Increase (decrease) in insurance contract net liabilities	1,004		6,162
Increase (decrease) in investment contract liabilities	111		83
(Increase) decrease in reinsurance contract assets, excluding reinsurance transaction noted below (note<br>5)	(316)		356
Amortization of (premium) discount on invested assets	(61)		28
Contractual service margin (“CSM”) amortization	(592)		(447)
Other amortization	146		138
Net realized and unrealized (gains) losses and impairment on assets	299		(1,863)
Deferred income tax expenses (recoveries)	2		117
Loss on reinsurance transaction (pre-tax) (note 5)	118		–
Stock option expense	–		1
Cash provided by operating activities before undernoted items	1,683		5,985
Changes in policy related and operating receivables and<br>payables	2,893		(3,030)
Cash provided by (used in) operating activities	4,576		2,955
Investing activities
Purchases and mortgage advances	(36,472)		(22,286)
Disposals and repayments	32,745		17,928
Change in investment broker net receivables and payables	223		405
Cash provided by (used in) investing activities	(3,504)		(3,953)
Financing activities
Change in repurchase agreements and securities sold but not yet purchased	(81)		152
Issue of capital instruments, net (note 9)	1,094		1,194
Redemption of capital instruments (note 9)	(609)		–
Secured borrowing from securitization transactions	131		194
Change in deposits from Bank clients, net	244		(686)
Lease payments	(30)		(11)
Shareholders’ dividends and other equity distributions	(777)		(723)
Contributions from (distributions to) non-controlling interests,<br>net	1		–
Common shares repurchased (note 10)	(203)		(398)
Common shares issued, net (note 10)	35		20
Cash provided by (used in) financing activities	(195)		(258)
Cash and short-term securities
Increase (decrease) during the period	877		(1,256)
Effect of foreign exchange rate changes on cash and short-term securities	264		11
Balance, beginning of period	19,884		18,635
Balance, end of period	21,025		17,390
Cash and short-term securities
Beginning of period
Gross cash and short-term securities	20,338		19,153
Net payments in transit, included in other liabilities	(454)		(518)
Net cash and short-term securities, beginning of<br>period	19,884		18,635
End of period
Gross cash and short-term securities	21,481		18,775
Net payments in transit, included in other liabilities	(456)		(1,385)
Net cash and short-term securities, end of period	21,025	$	17,390
Supplemental disclosures on cash flow information
Interest received	3,124	$	2,627
Interest paid	386		329
Income taxes paid	517		131

All values are in US Dollars.

The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements.

Manulife Financial Corporation – First Quarter 2024	73

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS

(Canadian $ in millions except per share amounts or unless otherwise stated, unaudited)

Note 1 Nature of Operations and Material Accounting Policy Information

(a) Reporting entity

Manulife Financial Corporation (“MFC”) is a publicly traded company and the holding company of The Manufacturers Life Insurance Company (“MLI”), a Canadian life insurance company. MFC, including its subsidiaries (collectively, “Manulife” or the “Company”) is a leading financial services group with principal operations in Asia, Canada and the United States. Manulife’s international network of employees, agents and distribution partners offers financial protection and wealth management products and services to personal and business clients as well as asset management services to institutional customers. The Company operates as Manulife in Asia and Canada and as John Hancock and Manulife in the United States.

These Interim Consolidated Financial Statements and condensed notes have been prepared in accordance with International Accounting Standard (“IAS”) 34 “Interim Financial Reporting” as issued by the International Accounting Standards Board (“IASB”), using accounting policies which are consistent with those used in the Company’s 2023 Annual Consolidated Financial Statements.

These Interim Consolidated Financial Statements should be read in conjunction with the audited Annual Consolidated Financial Statements for the year ended December 31, 2023, included on pages 155 to 276 of the Company’s 2023 Annual Report, as well as the disclosures on risk in denoted components of the “Risk Management and Risk Factors” section of the First Quarter 2024 Management Discussion and Analysis (“MD&A”). Those denoted risk disclosures are an integral part of these Interim Consolidated Financial Statements.

These Interim Consolidated Financial Statements as at and for the three months ended March 31, 2024 were authorized for issue by MFC’s Board of Directors on May 8, 2024.

(b) Basis of preparation

Refer to note 1 of the Company’s 2023 Annual Consolidated Financial Statements for a summary of material estimation processes used in the preparation of these Interim Consolidated Financial Statements under International Financial Reporting Standards (“IFRS”) and description of the Company’s measurement techniques in determining carrying values and respective fair values of its assets and liabilities.

Note 2 Accounting and Reporting Changes

Future accounting and reporting changes

(I) IFRS 18 “Presentation and Disclosure in the Financial Statements”

IFRS 18 “Presentation and Disclosure in Financial Statements” (“IFRS 18”) was issued in April 2024 to be effective for years beginning on January 1, 2027 and to be applied retrospectively. The standard replaces IAS 1 “Presentation of Financial Statements” (“IAS 1”) while carrying forward many elements of IAS 1 unchanged. IFRS 18 introduces three sets of new requirements for presentation of financial statements and disclosures within financial statements:

•	Introduction of a specific structure for income statements, to include three defined categories of income and expenses:<br>operating, investing and financing activities, with defined subtotals including operating profit and income before financing and income taxes,
Manulife Financial Corporation – First Quarter 2024	74
---	---

•

Required disclosure of management-defined performance measures (“MPM”) with a reconciliation between these measures and totals or subtotals specified by IFRS Accounting Standards. These disclosures will be subject to audit. MPMs are defined as subtotals of income and expenses not specified by IFRS Accounting Standards that are used in public communications to communicate management’s view of the Company’s financial performance, and

•

Enhanced guidance on organizing information and determining whether to provide the information in the financial statements or in the notes. IFRS 18 also requires enhanced disclosure of operating expenses based on their characteristics, including their nature, function or both.

---

The Company is assessing the impact of this standard on the Company’s Consolidated Financial Statements.

(II) Amendments to IAS 12 “Income Taxes”

Amendments to IAS 12 “Income Taxes” (“IAS 12”) were issued in May 2023. The amendments relate to the Organization for Economic Co-operation and Development’s International Pillar Two tax reform, which seeks to establish a global minimum tax (“GMT”) of fifteen per cent and address inter-jurisdictional base erosion and profit shifting, targeting larger international companies. Most jurisdictions have agreed to participate and effective dates for the GMT vary by jurisdiction based on local legislation.

The amendments require that, effective for the year ended December 31, 2023, disclosure of current tax expense or recovery related to the GMT is required along with, to the extent that the GMT legislation is enacted or substantively enacted but not yet in effect, disclosure of known or reasonably estimable information that helps users of financial statements understand the Company’s exposure to the GMT arising from that legislation. As of March 31, 2024, certain jurisdictions in which the Company operates, including Belgium, Ireland, Japan, Luxembourg, Malaysia, the Netherlands, New Zealand, the United Kingdom, and Vietnam, have enacted legislation to adopt the GMT. The assessment of the Company’s potential exposure to the GMT in these jurisdictions is based on the most recent information available regarding the financial performance of the constituent entities therein. Based on the assessment, the Company’s operations within these jurisdictions do not have a material exposure to the GMT and therefore no disclosure of current tax expense or recovery related to the GMT is provided.

The United States adopted a corporate alternative minimum tax (“CAMT”) of fifteen per cent, with an effective date of January 1, 2023. CAMT is not a Qualifying Domestic Minimum Top-up Tax for the purposes of the GMT.

In response to the GMT, Bermuda enacted the Corporate Income Tax 2023 Act on December 27, 2023. The Company’s Bermuda tax-resident subsidiaries and branches will be subject to this new tax regime effective January 1, 2025, at a rate of fifteen per cent. The Bermuda corporate income tax is not a Qualifying Domestic Minimum Top-up Tax for the purposes of the GMT.

Countries without a qualified domestic minimum top-up tax of their own will be in scope for Canada’s global minimum tax calculations, once enacted. The Company does not expect this will affect Manulife’s total global minimum tax exposure; however, it will dictate which jurisdiction has the taxing right for local country income.

The amendments introduce a temporary mandatory exception in IAS 12 from recognizing and disclosing deferred tax assets and liabilities related to the GMT. The Company has applied the mandatory temporary exception from accounting for deferred taxes in respect of the GMT.

Manulife Financial Corporation – First Quarter 2024	75

Note 3 Invested Assets and Investment Income

(a) Carrying values and fair values of invested assets

As at March 31, 2024	FVTPL^(1)^		FVOCI^(2)^		Other^(3)^		Total<br>carrying<br>value		Total fair<br>value^(4)^
Cash and short-term securities^(5)^	$	15	$	14,011	$	7,455	$	21,481	$	21,481
Debt securities^(6),(8)^
Canadian government and agency	****	1,105	****	19,120	****	–	****	20,225	****	20,225
U.S. government and agency	****	48	****	26,301	****	911	****	27,260	****	27,009
Other government and agency	****	90	****	30,395	****	–	****	30,485	****	30,485
Corporate	****	2,392	****	117,461	****	497	****	120,350	****	120,181
Mortgage / asset-backed securities	****	16	****	1,767	****	–	****	1,783	****	1,783
Public equities (FVTPL mandatory)	****	27,695	****	–	****	–	****	27,695	****	27,695
Mortgages	****	1,102	****	28,458	****	23,045	****	52,605	****	52,566
Private placements^(7)^	****	649	****	45,113	****	–	****	45,762	****	45,762
Loans to Bank clients	****	–	****	–	****	2,383	****	2,383	****	2,358
Real estate
Own use property^(8)^	****	–	****	–	****	2,598	****	2,598	****	2,719
Investment property	****	–	****	–	****	10,454	****	10,454	****	10,454
Other invested assets
Alternative long-duration assets^(9)^	****	31,234	****	401	****	11,566	****	43,201	****	44,244
Various other	****	130	****	–	****	4,264	****	4,394	****	4,394
Total invested assets	$	64,476	$	283,027	$	63,173	$	410,676	$	411,356
As at December 31, 2023	FVTPL^(1)^		FVOCI^(2)^		Other^(3)^		Total<br>carrying<br>value		Total fair<br>value^(4)^
---	---	---	---	---	---	---	---	---	---	---
Cash and short-term securities^(5)^	$	1	$	13,993	$	6,344	$	20,338	$	20,338
Debt securities^(6),(8)^
Canadian government and agency		1,219		19,769		–		20,988		20,988
U.S. government and agency		1,303		26,287		888		28,478		28,251
Other government and agency		90		30,576		–		30,666		30,666
Corporate		2,372		127,190		484		130,046		129,899
Mortgage / asset-backed securities		16		1,955		–		1,971		1,971
Public equities (FVTPL mandatory)		25,531		–		–		25,531		25,531
Mortgages		1,055		28,473		22,893		52,421		52,310
Private placements^(7)^		654		44,952		–		45,606		45,606
Loans to Bank clients		–		–		2,436		2,436		2,411
Real estate
Own use property^(8)^		–		–		2,591		2,591		2,716
Investment property		–		–		10,458		10,458		10,458
Other invested assets
Alternative long-duration assets^(9)^		29,671		360		11,403		41,434		42,313
Various other		126		–		4,120		4,246		4,246
Total invested assets	$	62,038	$	293,555	$	61,617	$	417,210	$	417,704
^(1)^	Fair value through profit or loss (“FVTPL”) classification was elected for debt instruments backing certain<br>insurance contract liabilities to substantially reduce any accounting mismatch arising from changes in the fair value of these assets, or changes in the carrying value of the related insurance contract liabilities.
---	---
^(2)^	Fair value through other comprehensive income (“FVOCI”) classification for debt instruments backing certain<br>insurance contract liabilities inherently reduces any accounting mismatch arising from changes in the fair value of these assets, or changes in the carrying value of the related insurance contract liabilities.
---	---
^(3)^	Other includes mortgages and loans to Bank clients held at amortized cost, own use properties, investment properties,<br>equity method accounted investments, and leveraged leases. Also includes debt securities, which qualify as having Solely Payment of Principal and Interest (“SPPI”), are held to collect contractual cash flows and are carried at amortized<br>cost.
---	---
^(4)^	Invested assets above include debt securities, mortgages, private placements and approximately $401 (December 31, 2023<br>– $360) of other invested assets, which primarily qualify as SPPI. Invested assets which do not have SPPI qualifying cash flows as at March 31, 2024 include debt securities, private placements and other invested assets with fair values of<br>$1, $115 and $532, respectively (December 31, 2023 – $nil, $115 and $539, respectively). The change in the fair value of these invested assets for the three months ended March 31, 2024 was $6 decrease ($49 increase during the year ended<br>December 31, 2023).
---	---
^(5)^	Includes short-term securities with maturities of less than one year at acquisition amounting to $6,999 (December 31, 2023<br>– $6,162), cash equivalents with maturities of less than 90 days at acquisition amounting to $7,030 (December 31, 2023 – $7,832) and cash of $7,452 (December 31, 2023 – $6,344).
---	---
^(6)^	Debt securities include securities which were acquired with maturities of less than one year and less than 90 days of<br>$1,403 and $672, respectively (December 31, 2023 – $1,294 and $1,413, respectively).
---	---
^(7)^	Floating rate invested assets above which are subject to interest rate benchmark reform, but have not yet transitioned to<br>replacement reference rates, include debt securities benchmarked to CDOR and AUD BBSW of $170 and $15, respectively (December 31, 2023 – $167 and $16, respectively), and private placements benchmarked to AUD BBSW and NZD BKBM of $194 and $59,<br>respectively (December 31, 2023 – $198 and $61, respectively). Exposures indexed to CDOR represent floating rate invested assets with maturity dates beyond June 28, 2024. The interest rate benchmark reform is expected to have an impact on<br>the valuation of invested assets whose value is tied to the affected interest rate benchmarks. The Company has assessed its exposure at the contract level, by benchmark and instrument type. The Company is monitoring market developments with respect<br>to alternative reference rates and the time horizon during which they will evolve. As at March 31, 2024, the interest rate benchmark reform has not resulted in material changes in the Company’s risk management strategy.<br>
---	---
^(8)^	Own use property of $2,434 as at March 31, 2024 (December 31, 2023 – $2,430), are underlying items for insurance<br>contracts with direct participating features and are measured at fair value as if they were investment properties, as permitted by IAS 16 “Property, Plant and Equipment”. Own use property of $164 (December 31, 2023 – $161) is carried<br>at cost less accumulated depreciation and any accumulated impairment losses.
---	---
^(9)^	Alternative long-duration assets (“ALDA”) include investments in private equity of $16,256, infrastructure of<br>$15,796, timber and agriculture of $5,809, energy of $1,846 and various other ALDA of $3,494 (December 31, 2023 – $15,445, $14,950, $5,719, $1,859, and $3,461, respectively).
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Manulife Financial Corporation – First Quarter 2024	76
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(b) Fair value measurement

The following tables present fair values and the fair value hierarchy of invested assets and segregated funds net assets measured at fair value in the Consolidated Statements of Financial Position.

As at March 31, 2024	Total fair<br>value		Level 1		Level 2		Level 3
Cash and short-term securities
FVOCI	$	14,011	$	–	$	14,011	$	–
FVTPL	****	15	****	–	****	15	****	–
Other	****	7,452	****	7,452	****	–	****	–
Debt securities
FVOCI
Canadian government and agency	****	19,120	****	–	****	19,120	****	–
U.S. government and agency	****	26,301	****	–	****	26,301	****	–
Other government and agency	****	30,395	****	–	****	30,381	****	14
Corporate	****	117,461	****	–	****	117,226	****	235
Residential mortgage-backed securities	****	6	****	–	****	6	****	–
Commercial mortgage-backed securities	****	356	****	–	****	356	****	–
Other asset-backed securities	****	1,405	****	–	****	1,386	****	19
FVTPL
Canadian government and agency	****	1,105	****	–	****	1,105	****	–
U.S. government and agency	****	48	****	–	****	48	****	–
Other government and agency	****	90	****	–	****	90	****	–
Corporate	****	2,392	****	1	****	2,391	****	–
Commercial mortgage-backed securities	****	1	****	–	****	1	****	–
Other asset-backed securities	****	15	****	–	****	15	****	–
Private placements^(1)^
FVOCI	****	45,113	****	–	****	37,595	****	7,518
FVTPL	****	649	****	–	****	597	****	52
Mortgages
FVOCI	****	28,458	****	–	****	–	****	28,458
FVTPL	****	1,102	****	–	****	–	****	1,102
Public equities
FVTPL	****	27,695	****	27,581	****	72	****	42
Real estate^(2)^
Investment property	****	10,454	****	–	****	–	****	10,454
Own use property	****	2,434	****	–	****	–	****	2,434
Other invested assets^(3)^	****	35,344	****	71	****	–	****	35,273
Segregated funds net assets^(4)^	****	402,109	****	366,486	****	32,183	****	3,440
Total	$	773,531	$	401,591	$	282,899	$	89,041
^(1)^	Fair value of private placements is determined through an internal valuation methodology using both observable and non-market observable inputs. Non-market observable inputs include credit assumptions and liquidity spread adjustments. Private placements are classified within Level 2<br>unless the liquidity adjustment constitutes a material price impact, in which case the securities are classified as Level 3.
---	---
^(2)^	For real estate properties, the significant non-market observable inputs are<br>capitalization rates ranging from 2.26% to 9.50% for the three months ended March 31, 2024 (ranging from 2.72% to 10.75% for the year ended December 31, 2023), terminal capitalization rates ranging from 3.10% to 9.50% for the three months<br>ended March 31, 2024 (ranging from 3.00% to 10.00% for the year ended December 31, 2023) and discount rates ranging from 3.20% to 13.75% for the three months ended March 31, 2024 (ranging from 3.20% to 14.00% for the year ended<br>December 31, 2023). Holding other factors constant, a lower capitalization or terminal capitalization rate will tend to increase the fair value of an investment property. Changes in fair value based on variations in non-market observable inputs generally cannot be extrapolated because the relationship between the directional changes of each input is not usually linear.
---	---
^(3)^	Other invested assets measured at fair value are held in infrastructure and timber sectors and include fund investments of<br>$28,976 as at March 31, 2024 (December 31, 2023 – $27,532) recorded at net asset value. The significant inputs used in the valuation of the Company’s infrastructure investments are primarily future distributable cash flows, terminal<br>values and discount rates. Holding other factors constant, an increase to future distributable cash flows or terminal values would tend to increase the fair value of an infrastructure investment, while an increase in the discount rate would have the<br>opposite effect. Discount rates for the three months ended March 31, 2024 ranged from 7.48% to 20.00% (ranged from 7.35% to 15.60% for the year ended December 31, 2023). Disclosure of distributable cash flow and terminal value ranges are<br>not meaningful given the disparity in estimates by project. The significant inputs used in the valuation of the Company’s investments in timberland properties are timber prices and discount rates. Holding other factors constant, an increase to<br>timber prices would tend to increase the fair value of a timberland investment, while an increase in the discount rates would have the opposite effect. Discount rates for the three months ended March 31, 2024 ranged from 4.00% to 7.00% (ranged<br>from 4.00% to 7.00% for the year ended December 31, 2023). A range of prices for timber is not meaningful as the market price depends on factors such as property location and proximity to markets and export yards.
---	---
^(4)^	Segregated funds net assets are measured at fair value. The Company’s Level 3 segregated funds underlying assets<br>are predominantly in investment properties and timberland properties valued as described above.
---	---
Manulife Financial Corporation – First Quarter 2024	77
---	---

As at December 31, 2023	Total fair<br>value		Level 1		Level 2		Level 3
Cash and short-term securities
FVOCI	$	13,993	$	–	$	13,993	$	–
FVTPL		1		–		1		–
Other		6,343		6,343		–		–
Debt securities
FVOCI
Canadian government and agency		19,769		–		19,769		–
U.S. government and agency		26,287		–		26,287		–
Other government and agency		30,576		–		30,566		10
Corporate		127,190		–		126,959		231
Residential mortgage-backed securities		6		–		6		–
Commercial mortgage-backed securities		370		–		370		–
Other asset-backed securities		1,579		–		1,558		21
FVTPL
Canadian government and agency		1,219		–		1,219		–
U.S. government and agency		1,303		–		1,303		–
Other government and agency		90		–		90		–
Corporate		2,372		–		2,372		–
Commercial mortgage-backed securities		1		–		1		–
Other asset-backed securities		15		–		15		–
Private placements^(1)^
FVOCI		44,952		–		37,270		7,682
FVTPL		654		–		575		79
Mortgages
FVOCI		28,473		–		–		28,473
FVTPL		1,055		–		–		1,055
Public equities
FVTPL		25,531		25,423		67		41
Real estate^(2)^
Investment property		10,458		–		–		10,458
Own use property		2,430		–		–		2,430
Other invested assets^(3)^		33,653		68		–		33,585
Segregated funds net assets^(4)^		377,544		343,061		30,991		3,492
Total	$	755,864	$	374,895	$	293,412	$	87,557

Note: For footnotes (1) to (4), refer to the “Fair value measurement” table as at March 31, 2024 above.

The following tables present fair value of invested assets not measured at fair value by the fair value hierarchy.

As at March 31, 2024	Carrying<br><br><br>value		Total fair<br>value		Level 1		Level 2		Level 3
Short-term securities	$	3	$	3	$	–	$	3	$	–
Mortgages	****	23,045	****	23,006	****	–	****	–	****	23,006
Loans to Bank clients	****	2,383	****	2,358	****	–	****	2,358	****	–
Real estate - own use property	****	164	****	285	****	–	****	–	****	285
Public bonds held at amortized cost	****	1,408	****	988	****	–	****	988	****	–
Other invested assets^(1)^	****	12,251	****	13,294	****	245	****	–	****	13,049
Total invested assets disclosed at fair value	$	39,254	$	39,934	$	245	$	3,349	$	36,340
As at December 31, 2023	Carrying<br>value		Total fair<br>value		Level 1		Level 2		Level 3
Short-term securities	$	1	$	1	$	–	$	1	$	–
Mortgages		22,893		22,782		–		–		22,782
Loans to Bank clients		2,436		2,411		–		2,411		–
Real estate - own use property		161		286		–		–		286
Public bonds held at amortized cost		1,372		998		–		998		–
Other invested<br>assets^(1)^		12,027		12,906		240		–		12,666
Total invested assets disclosed at fair value	$	38,890	$	39,384	$	240	$	3,410	$	35,734
^(1)^	The carrying value of other invested assets includes equity method accounted other invested assets of $8,321 (December 31,<br>2023 – $8,237) and leveraged leases of $3,930 (December 31, 2023 – $3,790). Fair value of leveraged leases is disclosed at their carrying values as fair value is not routinely calculated on these investments. Fair value for energy<br>properties is determined using external appraisals based on discounted cash flow methodology. Inputs used in valuation are primarily comprised of forecasted price curves, planned production, as well as capital expenditures, and operating costs. Fair<br>value of equity method accounted other invested assets is determined using a variety of valuation techniques including discounted cash flows and market comparable approaches. Inputs vary based on the specific investment.
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Manulife Financial Corporation – First Quarter 2024	78
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Transfers between Level 1 and Level 2

The Company records transfers of assets and liabilities between Level 1 and Level 2 at their fair values as at the end of each reporting period, consistent with the date of the determination of fair value. Assets are transferred out of Level 1 when they are no longer transacted with sufficient frequency and volume in an active market. Conversely, assets are transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market. During the three months ended March 31, 2024 and March 31, 2023, there were no transfers of assets between Level 1 and Level 2.

For segregated funds net assets, during the three months ended March 31, 2024 and March 31, 2023, there were no transfers of assets between Level 1 and Level 2.

Invested assets and segregated funds net assets measured at fair value using significant non-marketobservable inputs (Level 3)

The Company classifies fair values of invested assets, derivatives and segregated funds net assets as Level 3 if there are no observable markets for these assets or, in the absence of active markets, significant non-market observable inputs are used to determine fair value. The Company prioritizes the use of market-based inputs over non-market observable inputs in determining Level 3 fair values. The gains and losses in the table below include the changes in fair value due to both observable and non-market observable factors.

The following tables present the movement in invested assets, net derivatives and segregated funds net assets measured at fair value using significant non-market observable inputs (Level 3) for the three months ended March 31, 2024 and March 31, 2023.

For the threemonths endedMarch 31, 2024	Balance,<br>January 1,<br>2024		Total<br>gains<br>(losses)<br>included<br>in net<br>income^(1)^		Total<br>gains<br>(losses)<br>included<br>in AOCI^(2)^		Purchases		Sales		Settlements		Transfer<br><br><br>in^(3)^		Transfer<br><br><br>out^(3)^		Currency<br>movement		Balance,March 31,2024		Change in<br>unrealized<br>gains<br>(losses)<br>on assets<br>still held
Debt securities
FVOCI
Other government & agency	$	10	$	–	$	–	$	–	$	–	$	–	$	4	$	–	$	–	$	14	$	–
Corporate	****	231	****	–	****	3	****	–	****	–	****	–	****	–	****	–	****	1	****	235	****	–
Other securitized assets	****	21	****	–	****	1	****	–	****	–	****	(3)	****	–	****	–	****	–	****	19	****	–
Public equities
FVTPL	****	41	****	1	****	–	****	–	****	–	****	–	****	–	****	–	****	–	****	42	****	1
Private placements
FVOCI	****	7,682	****	2	****	32	****	818	****	(556)	****	(251)	****	196	****	(514)	****	109	****	7,518	****	–
FVTPL	****	79	****	(1)	****	–	****	–	****	–	****	(11)	****	–	****	(14)	****	(1)	****	52	****	(1)
Mortgages
FVOCI	****	28,473	****	9	****	(311)	****	483	****	(470)	****	(185)	****	–	****	–	****	459	****	28,458	****	–
FVTPL	****	1,055	****	(8)	****	–	****	90	****	(28)	****	(8)	****	–	****	–	****	1	****	1,102	****	–
Investment property	****	10,458	****	(166)	****	–	****	80	****	(39)	****	–	****	–	****	–	****	121	****	10,454	****	(177)
Own use property	****	2,430	****	(31)	****	–	****	10	****	–	****	–	****	–	****	–	****	25	****	2,434	****	(31)
Other invested assets	****	33,585	****	556	****	33	****	947	****	(113)	****	(258)	****	–	****	–	****	523	****	35,273	****	515
Total invested assets	****	84,065	****	362	****	(242)	****	2,428	****	(1,206)	****	(716)	****	200	****	(528)	****	1,238	****	85,601	****	307
Derivatives, net	****	(2,166)	****	(576)	****	–	****	–	****	–	****	(19)	****	–	****	106	****	(42)	****	(2,697)	****	(585)
Segregated funds net assets	****	3,492	****	(29)	****	5	****	76	****	(179)	****	29	****	–	****	–	****	46	****	3,440	****	(90)
Total	$	85,391	$	(243)	$	(237)	$	2,504	$	(1,385)	$	(706)	$	200	$	(422)	$	1,242	$	86,344	$	(368)
^(1)^	These amounts are included in net investment income on the Consolidated Statements of Income except for the amount related<br>to segregated funds net assets, where the amount is recorded in investment income related to segregated funds net assets.
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^(2)^	These amounts are included in AOCI on the Consolidated Statements of Financial Position.
---	---
^(3)^	The Company uses fair values of the assets at the beginning of the year for assets transferred into and out of<br>Level 3 except for derivatives, where the Company uses fair value at the end of the period and at the beginning of the year, respectively.
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Manulife Financial Corporation – First Quarter 2024	79
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For the three<br>months ended<br>March 31, 2023	Balance,<br>January 1,<br>2023		Total<br>gains<br>(losses)<br>included<br>in net<br>income^(1)^		Total<br>gains<br>(losses)<br>included<br>in AOCI^(2)^		Purchases		Sales		Settlements		Transfer<br><br><br>in^(3)^		Transfer<br><br><br>out^(3)^		Currency<br>movement		Balance,<br>March 31,<br>2023		Change in<br>unrealized<br>gains<br>(losses)<br>on assets<br>still held
Debt securities
FVOCI
Other government & agency	$	9	$	–	$	–	$	2	$	–	$	–	$	–	$	–	$	(1)	$	10	$	–
Corporate		32		–		(1)		–		–		–		8		–		–		39		–
Other securitized assets		26		–		–		–		–		(3)		–		–		–		23		–
Public equities
FVTPL		71		–		–		–		–		–		–		(67)		–		4		–
Private placements
FVOCI		7,828		(9)		182		849		(258)		(115)		2,237		(272)		26		10,468		–
FVTPL		31		1		–		12		–		–		–		–		–		44		1
Mortgages
FVOCI		28,621		19		497		324		(258)		(195)		–		–		(27)		28,981		–
FVTPL		1,138		15		–		–		(44)		(11)		–		–		–		1,098		–
Investment property		11,417		(217)		–		47		(35)		–		–		–		(10)		11,202		(215)
Own use property		2,682		(18)		–		2		–		–		–		–		3		2,669		(18)
Other invested assets		31,069		305		(1)		1,198		(162)		(310)		–		–		(89)		32,010		310
Total invested assets		82,924		96		677		2,434		(757)		(634)		2,245		(339)		(98)		86,548		78
Derivatives, net		(3,188)		536		–		–		–		(1)		–		351		7		(2,295)		537
Segregated funds net assets		3,985		(9)		–		30		(38)		(4)		–		–		(2)		3,962		4
Total	$	83,721	$	623	$	677	$	2,464	$	(795)	$	(639)	$	2,245	$	12	$	(93)	$	88,215	$	619
^(1)^	For footnotes (1) to (3), refer to the “Invested assets and segregated funds net assets measured at fair value<br>using significant non-market observable inputs (Level 3)” table for the three months ended March 31, 2024 above.
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Transfers into Level 3 primarily result from private placements that were impaired during the period or where a lack of observable market data (versus the previous period) resulted in reclassifying assets into Level 3. Transfers from Level 3 primarily result from observable market data becoming available for the entire term structure of the private placements.

(c) Investment income

For the three months ended March 31,	2024		2023
Interest income	$	3,436	$	2,923
Dividends, rental income and other income	****	681		682
Impairments, provisions and recoveries, net	****	37		(191)
Other	****	97		106
Investment income	****	4,251		3,520
Realized and unrealized gains (losses) on assets supporting insurance and investment contract<br>liabilities
Debt securities	****	(687)		300
Public equities	****	1,753		1,110
Mortgages	****	(6)		27
Private placements	****	244		83
Real estate	****	(228)		(232)
Other invested assets	****	511		216
Derivatives	****	(1,049)		440
	****	538		1,944
Investment expenses	****	(296)		(311)
Net investment income (loss)	$	4,493	$	5,153
Manulife Financial Corporation – First Quarter 2024	80
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(d) Remaining term to maturity

The following tables present remaining term to maturity for invested assets.

	Remaining term to maturity^(1)^
As at March 31, 2024	Less than<br><br><br>1 year		1 to 3<br>years		3 to 5<br>years		5 to 10<br>years		Over 10<br>years		With no<br>specific<br>maturity		Total
Cash and short-term securities	$	21,481	$	–	$	–	$	–	$	–	$	–	$	21,481
Debt securities
Canadian government and agency	****	815	****	1,486	****	1,486	****	3,560	****	12,878	****	–	****	20,225
U.S. government and agency	****	246	****	724	****	868	****	3,804	****	21,618	****	–	****	27,260
Other government and agency	****	331	****	996	****	1,320	****	3,328	****	24,510	****	–	****	30,485
Corporate	****	7,953	****	14,535	****	15,870	****	31,698	****	50,276	****	18	****	120,350
Mortgage / asset-backed securities	****	11	****	201	****	245	****	457	****	869	****	–	****	1,783
Public equities	****	–	****	–	****	–	****	–	****	–	****	27,695	****	27,695
Mortgages	****	3,739	****	12,606	****	9,717	****	7,524	****	9,503	****	9,516	****	52,605
Private placements	****	1,299	****	3,704	****	4,896	****	9,487	****	26,308	****	68	****	45,762
Loans to Bank clients	****	32	****	25	****	3	****	–	****	–	****	2,323	****	2,383
Real estate
Own use property	****	–	****	–	****	–	****	–	****	–	****	2,598	****	2,598
Investment property	****	–	****	–	****	–	****	–	****	–	****	10,454	****	10,454
Other invested assets
Alternative long-duration assets	****	43	****	21	****	61	****	77	****	735	****	42,264	****	43,201
Various<br>other^(2)^	****	–	****	20	****	–	****	3,312	****	598	****	464	****	4,394
Total invested assets	$	35,950	$	34,318	$	34,466	$	63,247	$	147,295	$	95,400	$	410,676
	Remaining term to maturity^(1)^
---	---	---	---	---	---	---	---	---	---	---	---	---	---	---
As at December 31, 2023	Less than<br><br><br>1 year		1 to 3<br>years		3 to 5<br>years		5 to 10<br>years		Over 10<br>years		With no<br>specific<br>maturity		Total
Cash and short-term securities	$	20,338	$	–	$	–	$	–	$	–	$	–	$	20,338
Debt securities
Canadian government and agency		657		1,435		1,580		3,656		13,660		–		20,988
U.S. government and agency		297		725		744		4,504		22,208		–		28,478
Other government and agency		412		1,052		1,892		3,864		23,446		–		30,666
Corporate		8,475		15,512		18,548		33,361		54,100		50		130,046
Mortgage / asset-backed securities		106		153		279		556		877		–		1,971
Public equities		–		–		–		–		–		25,531		25,531
Mortgages		3,363		12,076		10,181		7,690		9,644		9,467		52,421
Private placements		1,418		3,486		4,704		9,137		26,790		71		45,606
Loans to Bank clients		39		23		1		–		–		2,373		2,436
Real estate
Own use property		–		–		–		–		–		2,591		2,591
Investment property		–		–		–		–		–		10,458		10,458
Other invested assets
Alternative long-duration assets		–		67		22		82		732		40,531		41,434
Various<br>other^(2)^		–		–		19		1,528		2,242		457		4,246
Total invested assets	$	35,105	$	34,529	$	37,970	$	64,378	$	153,699	$	91,529	$	417,210
^(1)^	Represents contractual maturity. Actual maturity may differ due to prepayment privileges in the applicable contract.<br>
---	---
^(2)^	Primarily includes equity method accounted investments and leveraged leases.
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Manulife Financial Corporation – First Quarter 2024	81
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Note 4 Derivative and Hedging Instruments

The Company uses derivative financial instruments (“derivatives”) including swaps, forward and futures agreements, and options to manage current and anticipated exposures to changes in interest rates, foreign exchange rates, commodity prices and equity market prices, and to replicate exposure to different types of investments. The Company’s policies and procedures for derivative and hedging instruments can be found in notes 1 and 5 of the Company’s 2023 Annual Consolidated Financial Statements.

(a) Fair value of derivatives

The following table presents gross notional amount and fair value of derivative instruments by the underlying risk exposure.

		March 31, 2024						December 31, 2023
As at		Notional		Fair value				Notional		Fair value
Type of hedge	Instrument type	amount		Assets		Liabilities		amount		Assets		Liabilities
Qualifying hedge accounting relationships
Fair value hedges	Interest rate swaps	$	193,073	$	2,682	$	3,564	$	184,309	$	2,627	$	3,044
	Foreign currency swaps	****	7,788	****	59	****	1,628		9,055		78		1,518
	Forward contracts	****	23,275	****	112	****	3,123		23,461		165		2,672
Cash flow hedges	Interest rate swaps	****	8,592	****	22	****	22		8,372		20		48
	Foreign currency swaps	****	1,151	****	35	****	179		1,150		35		181
	Forward contracts	****	50	****	–	****	–		–		–		–
	Equity contracts	****	418	****	12	****	–		240		3		–
Net investment hedges	Forward contracts	****	648	****	6	****	–		654		–		16
Total derivatives in qualifying hedge accounting<br>relationships		****	234,995	****	2,928	****	8,516		227,241		2,928		7,479
Derivatives not designated in qualifying hedge accounting relationships
	Interest rate swaps	****	100,492	****	2,514	****	3,683		103,806		2,361		3,098
	Interest rate futures	****	8,622	****	–	****	–		9,449		–		–
	Interest rate options	****	5,833	****	24	****	–		5,841		33		–
	Foreign currency swaps	****	34,981	****	1,582	****	538		33,148		1,873		398
	Currency rate futures	****	2,318	****	–	****	–		2,581		–		–
	Forward contracts	****	43,048	****	554	****	619		34,080		769		597
	Equity contracts	****	21,153	****	763	****	65		19,760		579		115
	Credit default swaps	****	125	****	3	****	–		131		3		–
	Equity futures	****	3,852	****	–	****	–		4,040		–		–
Total derivatives not designated in qualifying hedge<br>accounting relationships		****	220,424	****	5,440	****	4,905		212,836		5,618		4,208
Total derivatives		$	455,419	$	8,368	$	13,421	$	440,077	$	8,546	$	11,687

The total notional amount above includes $79 billion (December 31, 2023 – $79 billion) of derivative instruments which reference rates that are impacted under the interest rate benchmark reform, with a significant majority to CDOR. Exposures indexed to CDOR represent derivatives with a maturity date beyond June 28, 2024. Upon adoption of IFRS 9, the Company designated additional existing derivatives in hedge accounting relationships. The exposure in the Company’s hedge accounting programs is primarily to the CDOR benchmark. Compared to the overall risk exposure, the effect of interest rate benchmark reform on existing accounting hedges is not significant. The Company continues to apply high probability and high effectiveness expectation assumptions for cash flows and there would be no automatic de-designation of qualifying hedge relationships due to the impact from interest rate benchmark reform.

The following tables present the fair values of the derivative instruments by the remaining term to maturity. Fair values disclosed below do not incorporate the impact of master netting agreements (refer to note 7).

	Remaining term to maturity
As at March 31, 2024	Less than<br><br><br>1 year		1 to 3<br><br><br>years		3 to 5<br><br><br>years		Over 5<br><br><br>years		Total
Derivative assets	$	1,067	$	579	$	488	$	6,234	$	8,368
Derivative liabilities	****	2,153	****	1,570	****	827	****	8,871	****	13,421
	Remaining term to maturity
As at December 31, 2023	Less than<br><br><br>1 year		1 to 3<br><br><br>years		3 to 5<br><br><br>years		Over 5<br><br><br>years		Total
Derivative assets	$	1,189	$	603	$	573	$	6,181	$	8,546
Derivative liabilities		1,561		1,982		717		7,427		11,687
Manulife Financial Corporation – First Quarter 2024	82
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Fair value and the fair value hierarchy of derivative instruments

As at March 31, 2024	Fair value		Level 1		Level 2		Level 3
Derivative assets
Interest rate contracts	$	5,653	$	–	$	5,300	$	353
Foreign exchange contracts	****	1,937	****	–	****	1,937	****	–
Equity contracts	****	775	****	–	****	757	****	18
Credit default swaps	****	3	****	–	****	3	****	–
Total derivative assets	$	8,368	$	–	$	7,997	$	371
Derivative liabilities
Interest rate contracts	$	10,741	$	–	$	7,675	$	3,066
Foreign exchange contracts	****	2,615	****	–	****	2,613	****	2
Equity contracts	****	65	****	–	****	65	****	–
Total derivative liabilities	$	13,421	$	–	$	10,353	$	3,068
As at December 31, 2023	Fair value		Level 1		Level 2		Level 3
Derivative assets
Interest rate contracts	$	5,813	$	–	$	5,262	$	551
Foreign exchange contracts		2,148		–		2,148		–
Equity contracts		582		–		572		10
Credit default swaps		3		–		3		–
Total derivative assets	$	8,546	$	–	$	7,985	$	561
Derivative liabilities
Interest rate contracts	$	9,176	$	–	$	6,451	$	2,725
Foreign exchange contracts		2,396		–		2,395		1
Equity contracts		115		–		114		1
Total derivative liabilities	$	11,687	$	–	$	8,960	$	2,727

Movement in net derivatives measured at fair value using significant non-market observable inputs (Level 3) is presented in note 3 (b).

(b) Embedded derivatives

Certain insurance contracts contain features that are classified as embedded derivatives and are measured separately at FVTPL, including reinsurance contracts related to guaranteed minimum income benefits and contracts containing certain credit and interest rate features.

Certain reinsurance contracts related to guaranteed minimum income benefits contain embedded derivatives requiring separate measurement at FVTPL as the financial component contained in the reinsurance contracts does not contain significant insurance risk. Claims recovered under reinsurance ceded contracts offset claims expenses and claims paid on the reinsurance assumed. As at March 31, 2024, reinsurance ceded guaranteed minimum income benefits had a fair value of $337 (December 31, 2023 – $402) and reinsurance assumed guaranteed minimum income benefits had a fair value of $nil (December 31, 2023 – $46).

The Company’s credit and interest rate embedded derivatives promise to pay the returns on a portfolio of assets to the contract holder. These embedded derivatives contain credit and interest rate risks that are financial risks embedded in the underlying insurance and investment contracts. As at March 31, 2024, these embedded derivative liabilities had a fair value of $365 (December 31, 2023 – $487).

Other insurance contract features which are classified as embedded derivatives but are exempt from separate measurement at fair value include variable universal life and variable life products’ minimum guaranteed credited rates, no lapse guarantees, guaranteed annuitization options, Consumer Price Index (“CPI”) indexing of benefits, and segregated fund minimum guarantees other than reinsurance ceded/assumed guaranteed minimum income benefits. These embedded derivatives are measured and reported within insurance contract liabilities and are exempt from separate fair value measurement as they contain insurance risk and/or are closely related to the insurance host contracts.

Manulife Financial Corporation – First Quarter 2024	83

Note 5 Insurance and Reinsurance Contract Assets and Liabilities

(a) Movements in carrying amounts of insurance andreinsurance contracts

The following tables present the movement in the net carrying amounts of insurance contracts issued and reinsurance contracts held during the period for the Company. The changes include amounts that are recognized in income and OCI, and movements due to cash flows.

Insurance contracts –Analysis by measurement components

The following tables present the movement in the net assets or liabilities for insurance contracts issued, showing estimates of the present value of future cash flows, risk adjustment and CSM for the three months ended March 31, 2024 and for the year ended December 31, 2023.

	Estimates<br>of PV of<br>future cash<br>flows		Risk<br><br><br>adjustment<br>for non-<br><br><br>financial risk		CSM		Assets for<br>insurance<br>acquisition<br>cash flows		Total
Opening General Measurement Method (“GMM”) and Variable Fee Approach (“VFA”) insurance<br>contract assets	$	(416)	$	141	$	131	$	–	$	(144)
Opening GMM and VFA insurance contract liabilities	****	310,807	****	22,697	****	21,973	****	(59)	****	355,418
Opening Premium Allocation Approach (“PAA”) insurance contract net liabilities	****	12,712	****	626	****	–	****	(761)	****	12,577
Opening insurance contract liabilities for account of segregated fund<br>holders	****	114,143	****	–	****	–	****	–	****	114,143
Net opening balance, January 1, 2024	****	437,246	****	23,464	****	22,104	****	(820)	****	481,994
Changes that relate to current services	****	(109)	****	(366)	****	(640)	****	–	****	(1,115)
Changes that relate to future services	****	(1,342)	****	152	****	1,290	****	–	****	100
Changes that relate to past services	****	(21)	****	(3)	****	–	****	–	****	(24)
Insurance service result	****	(1,472)	****	(217)	****	650	****	–	****	(1,039)
Insurance finance (income) expenses	****	(3,151)	****	(359)	****	81	****	–	****	(3,429)
Effects of movements in foreign exchange rates	****	5,130	****	501	****	329	****	–	****	5,960
Total changes in income and OCI	****	507	****	(75)	****	1,060	****	–	****	1,492
Total cash flows	****	1,402	****	–	****	–	****	–	****	1,402
Movements related to insurance acquisition cash flows	****	(1)	****	–	****	–	****	(1)	****	(2)
Change in PAA balance	****	(34)	****	5	****	–	****	86	****	57
Movements related to insurance contract liabilities for account of<br>segregated fund holders	****	5,753	****	–	****	–	****	–	****	5,753
Net closing balance	****	444,873	****	23,394	****	23,164	****	(735)	****	490,696
Closing GMM and VFA insurance contract assets	****	(416)	****	140	****	139	****	–	****	(137)
Closing GMM and VFA insurance contract liabilities	****	312,715	****	22,623	****	23,025	****	(60)	****	358,303
Closing PAA insurance contract net liabilities	****	12,678	****	631	****	–	****	(675)	****	12,634
Closing insurance contract liabilities for account of segregated fund<br>insurance holders	****	119,896	****	–	****	–	****	–	****	119,896
Net closing balance, March 31, 2024	$	444,873	$	23,394	$	23,164	$	(735)	$	490,696
Insurance finance (income) expenses (“IFIE”)	For the three monthsended March 31, 2024
---	---	---
Insurance finance (income) expenses for products not under PAA, per disclosure above^(1)^	$	(3,429)
Insurance finance (income) expenses for products under PAA	****	(53)
Reclassification of derivative OCI to IFIE – cash flow hedges	****	(127)
Reclassification of derivative (income) loss changes to IFIE –<br>fair value hedge	****	1,734
Total insurance finance (income) expenses from insurance contracts issued	****	(1,875)
Effect of movements in foreign exchange rates	****	1,263
Total insurance finance (income) expenses from insurancecontracts issued and effect of movement in foreignexchange rates	$	(612)
Portion recognized in (income) expenses, including effects of foreign exchange rates	$	4,458
Portion recognized in OCI, including effects of foreign exchange<br>rates	****	(5,070)
^(1)^	The insurance finance (income) expenses reflect effect of time value of money and financial risk, which includes but is<br>not limited to interest accreted using locked-in rate, changes in interest rates and other financial assumptions, changes in fair value of underlying items of direct participation contracts and effects of risk<br>mitigation option.
---	---
Manulife Financial Corporation – First Quarter 2024	84
---	---

	Estimates of<br>PV of<br>future cash<br>flows		Risk<br>adjustment<br>for non-<br><br><br>financial risk		CSM		Assets for<br>insurance<br>acquisition<br>cash flows		Total
Opening GMM and VFA insurance contract assets	$	(1,827)	$	512	$	657	$	–	$	(658)
Opening GMM and VFA insurance contract liabilities		297,967		25,750		19,192		(56)		342,853
Opening PAA insurance contract net liabilities		12,125		605		–		(749)		11,981
Opening insurance contract liabilities for account of segregated fund<br>holders		110,216		–		–		–		110,216
Net opening balance, January 1, 2023		418,481		26,867		19,849		(805)		464,392
Changes that relate to current services		152		(1,620)		(2,162)		–		(3,630)
Changes that relate to future services		(1,884)		(2,667)		4,642		–		91
Changes that relate to past services		(28)		(4)		–		–		(32)
Insurance service result		(1,760)		(4,291)		2,480		–		(3,571)
Insurance finance (income) expenses		22,340		1,646		320		–		24,306
Effects of movements in foreign exchange rates		(8,405)		(779)		(545)		–		(9,729)
Total changes in income and OCI		12,175		(3,424)		2,255		–		11,006
Total cash flows		2,081		–		–		–		2,081
Movements related to insurance acquisition cash flows		(5)		–		–		(3)		(8)
Change in PAA balance		587		21		–		(12)		596
Movements related to insurance contract liabilities for account of<br>segregated<br>fund holders		3,927		–		–		–		3,927
Net closing balance		437,246		23,464		22,104		(820)		481,994
Closing GMM and VFA insurance contract assets		(416)		141		131		–		(144)
Closing GMM and VFA insurance contract liabilities		310,807		22,697		21,973		(59)		355,418
Closing PAA insurance contract net liabilities		12,712		626		–		(761)		12,577
Closing insurance contract liabilities for account of segregated<br>fund<br>insurance holders		114,143		–		–		–		114,143
Net closing balance, December 31, 2023	$	437,246	$	23,464	$	22,104	$	(820)	$	481,994

Reinsurance contracts held – Analysis by measurement components

The following tables present the movement in the net assets or liabilities for reinsurance contracts held, showing estimates of the present value of future cash flows, risk adjustment and CSM for the three months ended March 31, 2024 and for the year ended December 31, 2023.

	Estimates of<br><br><br>PV of<br> <br>future cash<br><br><br>flows		Risk<br><br><br>adjustment<br><br><br>for non-<br><br><br>financial risk		CSM		Total
Opening reinsurance contract held assets	$	38,156	$	3,685	$	513	$	42,354
Opening reinsurance contract held liabilities	****	(4,384)	****	1,305	****	290	****	(2,789)
Opening PAA reinsurance contract net assets	****	239	****	16	****	–	****	255
Net opening balance, January 1, 2024	****	34,011	****	5,006	****	803	****	39,820
Changes that relate to current services	****	(87)	****	(137)	****	(48)	****	(272)
Changes that relate to future services	****	(1,130)	****	830	****	324	****	24
Changes that relate to past services	****	2	****	–	****	–	****	2
Insurance service result	****	(1,215)	****	693	****	276	****	(246)
Insurance finance (income) expenses from reinsurance contracts	****	(792)	****	(162)	****	7	****	(947)
Effects of changes in non-performance risk of reinsurers	****	12	****	–	****	–	****	12
Effects of movements in foreign exchange rates	****	1,083	****	90	****	3	****	1,176
Total changes in income and OCI	****	(912)	****	621	****	286	****	(5)
Total cash flows	****	11,279	****	–	****	–	****	11,279
Change in PAA balance	****	(11)	****	–	****	–	****	(11)
Net closing balance	****	44,367	****	5,627	****	1,089	****	51,083
Closing reinsurance contract held assets	****	48,734	****	4,345	****	701	****	53,780
Closing reinsurance contract held liabilities	****	(4,595)	****	1,266	****	388	****	(2,941)
Closing PAA reinsurance contract net assets	****	228	****	16	****	–	****	244
Net closing balance, March 31, 2024	$	44,367	$	5,627	$	1,089	$	51,083
Manulife Financial Corporation – First Quarter 2024	85
---	---

	Estimates of<br><br><br>PV of<br> <br>future cash<br><br><br>flows		Risk<br><br><br>adjustment<br><br><br>for non-<br><br><br>financial risk		CSM		Total
Opening reinsurance contract held assets	$	39,656	$	4,049	$	1,873	$	45,578
Opening reinsurance contract held liabilities		(3,919)		1,574		(1)		(2,346)
Opening PAA reinsurance contract net assets		240		8		–		248
Net opening balance, January 1, 2023		35,977		5,631		1,872		43,480
Changes that relate to current services		(19)		(478)		(164)		(661)
Changes that relate to future services		1,412		(442)		(894)		76
Changes that relate to past services		5		–		–		5
Insurance service result		1,398		(920)		(1,058)		(580)
Insurance finance (income) expenses from reinsurance contracts		173		447		10		630
Effects of changes in non-performance risk of reinsurers		(14)		–		–		(14)
Effects of movements in foreign exchange rates		(916)		(160)		(21)		(1,097)
Total changes in income and OCI		641		(633)		(1,069)		(1,061)
Total cash flows		(2,606)		–		–		(2,606)
Change in PAA balance		(1)		8		–		7
Net closing balance		34,011		5,006		803		39,820
Closing reinsurance contract held assets		38,156		3,685		514		42,355
Closing reinsurance contract held liabilities		(4,384)		1,305		289		(2,790)
Closing PAA reinsurance contract net assets		239		16		–		255
Net closing balance, December 31, 2023	$	34,011	$	5,006	$	803	$	39,820

(b) Effect of new business recognized in the period

The following table presents components of new business for insurance contracts issued for the periods presented.

	For the three months ended<br><br><br>March 31, 2024				For the year ended<br>December 31, 2023
	Non-onerous		Onerous		Non-onerous		Onerous
New business insurance contracts
Estimates of present value of cash outflows	$	7,843	$	520	$	22,211	$	3,796
Insurance acquisition cash flows	****	1,262	****	103		4,295		623
Claims and other insurance service expenses payable	****	6,581	****	417		17,916		3,173
Estimates of present value of cash inflows	****	(8,812)	****	(522)		(25,541)		(3,761)
Risk adjustment for non-financial risk	****	184	****	32		962		218
Contractual service margin	****	785	****	–		2,368		–
Amount included in insurance contract liabilities for theperiod	$	–	$	30	$	–	$	253

The following table presents components of new business for reinsurance contracts held portfolios for the periods presented.

	For the three<br><br><br>months ended<br><br><br>March 31, 2024		For the year ended<br><br><br>December 31, 2023
New business reinsurance contracts
Estimates of present value of cash outflows	$	(13,007)	$	(1,997)
Estimates of present value of cash inflows	****	11,887		1,933
Risk adjustment for non-financial risk	****	840		399
Contractual service margin	****	291		(263)
Amount included in reinsurance assets for theperiod	$	11	$	72

(c) Insurance revenue

The following table shows the components of insurance revenue in the Consolidated Statements of Income. Insurance revenue excludes investment components and loss component. It also does not reflect any financial changes such as effect of time value of money, which are recognized in insurance finance income and expenses.

For the three months ended March 31,	2024		2023
Expected incurred claims and other insurance service result	$	3,553	$	3,276
Change in risk adjustment for non-financial risk expired	****	366		315
CSM recognized for services provided	****	640		506
Recovery of insurance acquisition cash flows	****	279		179
Contracts under PAA	****	1,659		1,487
Total insurance revenue	$	6,497	$	5,763
Manulife Financial Corporation – First Quarter 2024	86
---	---

(d) Significant judgements and estimates

Discount rates

The following tables present the spot rates used for discounting liability cash flows.

					March 31, 2024
	Currency	Liquiditycategory	Observableyears	Ultimateyear	1 year		5 years		10 years		20 years		30 years		Ultimate
Canada	CAD	Illiquid	30	70	****	5.23%	****	4.58%	****	5.20%	****	5.14%	****	5.20%	****	4.40%
		Somewhat liquid^(1)^	30	70	****	5.21%	****	4.50%	****	5.03%	****	5.04%	****	5.02%	****	4.40%
U.S.	USD	Illiquid	30	70	****	5.25%	****	4.84%	****	5.70%	****	5.87%	****	5.57%	****	5.00%
		Somewhat liquid^(1)^	30	70	****	5.46%	****	5.01%	****	5.62%	****	5.90%	****	5.61%	****	4.88%
Japan	JPY	Somewhat liquid^(1)^	30	70	****	0.41%	****	0.85%	****	1.28%	****	1.95%	****	2.45%	****	1.60%
Hong Kong	HKD	Illiquid	15	55	****	4.16%	****	4.34%	****	5.41%	****	4.91%	****	4.32%	****	3.80%
					December 31, 2023
	Currency	Liquiditycategory	Observableyears	Ultimateyear	1 year		5 years		10 years		20 years		30 years		Ultimate
Canada	CAD	Illiquid	30	70		5.17%		4.33%		4.92%		4.86%		4.80%		4.40%
		Somewhat liquid^(1)^	30	70		5.14%		4.22%		4.69%		4.72%		4.69%		4.40%
U.S.	USD	Illiquid	30	70		5.38%		4.54%		5.37%		5.65%		5.27%		5.00%
		Somewhat liquid^(1)^	30	70		5.32%		4.57%		5.25%		5.56%		5.18%		4.88%
Japan	JPY	Somewhat liquid^(1)^	30	70		0.53%		0.77%		1.08%		1.75%		2.24%		1.60%
Hong Kong	HKD	Illiquid	15	55		4.20%		4.01%		4.98%		4.61%		4.19%		3.80%
^(1)^	Somewhat liquid refers to liquidity level that is between liquid and illiquid. It is higher liquidity than illiquid and<br>lower liquidity than liquid.
---	---

(e) Reinsurance transactions

Agreement with Global Atlantic Financial Group

On December 11, 2023, the Company announced it entered into agreements with Global Atlantic Financial Group Ltd. (“GA”) to reinsure policies from the U.S. long-term care (“LTC”), U.S. structured settlements, and Japan whole life legacy blocks. Under the terms of the transaction, the Company will retain responsibility for the administration of the policies, with no intended impact to policyholders. The transaction was structured as coinsurance of an 80% quota share for the LTC block and 100% quota shares for the other blocks.

The transaction closed on February 22, 2024, with the Company transferring invested assets measured at FVOCI of $13.4 billion and reinsuring insurance and investment contract net liabilities of $13.2 billion. The Company recognized a reinsurance contractual service margin of $308 and financial assets of $134.

Agreement with RGA Life Reinsurance Company of Canada

On March 25, 2024, the Company announced it entered into an agreement with RGA Life Reinsurance Company of Canada to reinsure policies from its Canadian universal life block. Under the terms of the transaction, the Company will retain responsibility for the administration of the policies, with no intended impact to policyholders. The transaction will be structured as coinsurance with a 100% quota share.

The transaction closed on April 2, 2024, with the reinsurance of $5.6 billion of insurance contract net liabilities as at March 31, 2024.

Note 6Investment Contract Assets and Liabilities

Investment contract liabilities are contractual financial obligations of the Company that do not contain significant insurance risk. Those contracts are subsequently measured either at fair value or at amortized cost.

As at March 31, 2024, the carrying value and fair value of investment contract liabilities measured at amortized cost were $11,469 and $11,363, respectively (December 31, 2023 – $11,067 and $10,994, respectively). The fair value of investment contract liabilities measured at fair value was $705 (December 31, 2023 – $749).

Manulife Financial Corporation – First Quarter 2024	87

As at March 31, 2024, the carrying value and fair value of the reinsurance financial assets measured at amortized cost were $1,036 and $975, respectively (December 31, 2023 - $27 and $27, respectively). The fair value of the reinsurance financial assets measured at fair value was $670 (December 31, 2023 – $nil).

As at March 31, 2024, the net carrying value and fair value of investment contract assets and liabilities measured at amortized cost were $10,433 and $10,388, respectively (December 31, 2023 – $11,040 and $10,967, respectively). The net fair value of the investment contract assets and liabilities measured at fair value was $35 (December 31, 2023 - $749).

Note 7 Risk Management

The Company’s policies and procedures for managing risk related to financial instruments and insurance contracts can be found in note 9 of the Company’s 2023 Annual Consolidated Financial Statements as well as the denoted text and tables in the “Risk Management and Risk Factors” section of the Company’s MD&A in the Company’s 2023 Annual Report.

(a) Risk disclosures included in the First Quarter 2024 MD&A

Market risk sensitivities related to variable annuity and segregated fund guarantees, publicly traded equity performance risk, interest rate and spread risk and alternative long-duration asset performance risk are disclosed in denoted text and tables in the “Risk Management and Risk Factors” section of the First Quarter 2024 MD&A. These disclosures are in accordance with IFRS 7 “Financial Instruments: Disclosures”, IFRS 17 and IAS 34 “Interim Financial Reporting” and are an integral part of these Interim Consolidated Financial Statements. The risks to which the Company is exposed at the end of the reporting period are representative of risks it is typically exposed to throughout the reporting period.

(b) Credit risk

Credit risk is the risk of loss due to inability or unwillingness of a borrower, or counterparty, to fulfill its payment obligations. Worsening regional and global economic conditions, segment or industry sector challenges, or company specific factors could result in defaults or downgrades and could lead to increased provisions or impairments related to the Company’s general fund invested assets.

The Company’s exposure to credit risk is managed through risk management policies and procedures which include a defined credit evaluation and adjudication process, delegated credit approval authorities and established exposure limits by borrower, corporate connection, credit rating, industry and geographic region. The Company measures derivative counterparty exposure as net potential credit exposure, which takes into consideration fair values of all transactions with each counterparty, net of any collateral held, and an allowance to reflect future potential exposure. Reinsurance counterparty exposure is measured reflecting the level of ceded liabilities.

The Company also ensures where warranted, that mortgages, private placements and loans to Bank clients are secured by collateral, the nature of which depends on the credit risk of the counterparty.

Credit risk associated with derivative counterparties is discussed in note 7(e).

Manulife Financial Corporation – First Quarter 2024	88

(I) Credit quality

The following tables present financial instruments subject to credit exposure, without considering any collateral held or other credit enhancements, presenting separately Stage 1, Stage 2, and Stage 3 credit risk profiles, with allowances, plus allowances for loan commitments.

As at March 31, 2024	Stage 1		Stage 2		Stage 3		Total
Debt securities, measured at amortized cost
Investment grade	$	1,409	$	–	$	–	$	1,409
Non-investment<br>grade	****	–	****	–	****	–	****	–
Total	****	1,409	****	–	****	–	****	1,409
Allowance for credit losses	****	1	****	–	****	–	****	1
Total carrying value, net of allowance	****	1,408	****	–	****	–	****	1,408
Debt securities, measured at FVOCI
Investment grade	****	187,966	****	1,024	****	–	****	188,990
Non-investment<br>grade	****	5,411	****	635	****	8	****	6,054
Total carrying value	****	193,377	****	1,659	****	8	****	195,044
Allowance for credit losses	****	255	****	45	****	14	****	314
Private placements, measured at FVOCI
Investment grade	****	38,682	****	697	****	–	****	39,379
Non-investment<br>grade	****	4,731	****	924	****	79	****	5,734
Total carrying value	****	43,413	****	1,621	****	79	****	45,113
Allowance for credit losses	****	124	****	120	****	83	****	327
Commercial mortgages, measured at amortized cost
AAA	****	–	****	–	****	–	****	–
AA	****	–	****	–	****	–	****	–
A	****	149	****	44	****	–	****	193
BBB	****	–	****	–	****	–	****	–
BB	****	–	****	–	****	–	****	–
B and lower	****	163	****	49	****	–	****	212
Total	****	312	****	93	****	–	****	405
Allowance for credit losses	****	1	****	2	****	–	****	3
Total carrying value, net of allowance	****	311	****	91	****	–	****	402
Commercial mortgages, measured at FVOCI
AAA	****	258	****	–	****	–	****	258
AA	****	6,773	****	39	****	–	****	6,812
A	****	14,230	****	–	****	–	****	14,230
BBB	****	5,471	****	994	****	–	****	6,465
BB	****	10	****	532	****	–	****	542
B and lower	****	–	****	44	****	107	****	151
Total carrying value	****	26,742	****	1,609	****	107	****	28,458
Allowance for credit losses	****	39	****	41	****	144	****	224
Residential mortgages, measured at amortized cost
Performing	****	21,293	****	1,306	****	–	****	22,599
Non-performing	****	–	****	–	****	52	****	52
Total	****	21,293	****	1,306	****	52	****	22,651
Allowance for credit losses	****	4	****	2	****	2	****	8
Total carrying value, net of allowance	****	21,289	****	1,304	****	50	****	22,643
Loans to Bank clients, measured at amortized cost
Performing	****	2,337	****	42	****	–	****	2,379
Non-performing	****	–	****	–	****	6	****	6
Total	****	2,337	****	42	****	6	****	2,385
Allowance for credit losses	****	1	****	–	****	1	****	2
Total carrying value, net of allowance	****	2,336	****	42	****	5	****	2,383
Other invested assets, measured at amortized cost
Investment grade	****	3,931	****	–	****	–	****	3,931
Non-investment<br>grade	****	–	****	–	****	–	****	–
Total	****	3,931	****	–	****	–	****	3,931
Allowance for credit losses	****	1	****	–	****	–	****	1
Total carrying value, net of allowance	****	3,930	****	–	****	–	****	3,930
Other invested assets, measured at FVOCI
Investment grade	****	–	****	–	****	–	****	–
Non-investment<br>grade	****	401	****	–	****	–	****	401
Total carrying value	****	401	****	–	****	–	****	401
Allowance for credit losses	****	15	****	–	****	–	****	15
Loan commitments
Allowance for credit losses	****	8	****	1	****	2	****	11
Total carrying value, net of allowance	$	293,207	$	6,326	$	249	$	299,782
Manulife Financial Corporation – First Quarter 2024	89
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As at December 31, 2023	Stage 1		Stage 2		Stage 3		Total
Debt securities, measured at amortized cost
Investment grade	$	1,373	$	–	$	–	$	1,373
Non-investment<br>grade		–		–		–		–
Total		1,373		–		–		1,373
Allowance for credit losses		1		–		–		1
Total carrying value, net of allowance		1,372		–		–		1,372
Debt securities, measured at FVOCI
Investment grade		197,562		2,252		–		199,814
Non-investment<br>grade		5,367		596		–		5,963
Total carrying value		202,929		2,848		–		205,777
Allowance for credit losses		283		54		6		343
Private placements, measured at FVOCI
Investment grade		37,722		1,644		–		39,366
Non-investment<br>grade		5,210		295		81		5,586
Total carrying value		42,932		1,939		81		44,952
Allowance for credit losses		126		108		83		317
Commercial mortgages, measured at amortized cost
AAA		–		–		–		–
AA		–		–		–		–
A		148		48		–		196
BBB		–		–		–		–
BB		–		–		–		–
B and lower		145		35		–		180
Total		293		83		–		376
Allowance for credit losses		1		2		–		3
Total carrying value, net of allowance		292		81		–		373
Commercial mortgages, measured at FVOCI
AAA		279		–		–		279
AA		6,815		–		–		6,815
A		14,111		86		–		14,197
BBB		5,513		984		–		6,497
BB		10		532		–		542
B and lower		–		36		107		143
Total carrying value		26,728		1,638		107		28,473
Allowance for credit losses		40		42		143		225
Residential mortgages, measured at amortized cost
Performing		20,898		1,570		–		22,468
Non-performing		–		–		60		60
Total		20,898		1,570		60		22,528
Allowance for credit losses		4		2		2		8
Total carrying value, net of allowance		20,894		1,568		58		22,520
Loans to Bank clients, measured at amortized cost
Performing		2,387		44		–		2,431
Non-performing		–		–		8		8
Total		2,387		44		8		2,439
Allowance for credit losses		2		–		1		3
Total carrying value, net of allowance		2,385		44		7		2,436
Other invested assets, measured at amortized cost
Investment grade		3,791		–		–		3,791
Non-investment<br>grade		–		–		–		–
Total		3,791		–		–		3,791
Allowance for credit losses		1		–		–		1
Total carrying value, net of allowance		3,790		–		–		3,790
Other invested assets, measured at FVOCI
Investment grade		–		–		–		–
Non-investment<br>grade		360		–		–		360
Total carrying value		360		–		–		360
Allowance for credit losses		16		–		–		16
Loan commitments
Allowance for credit losses		9		1		2		12
Total carrying value, net of allowance	$	301,682	$	8,118	$	253	$	310,053
Manulife Financial Corporation – First Quarter 2024	90
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(II) Allowance for credit losses

The following tables provide details on the allowance for credit losses by stage as at and for the three months ended March 31, 2024 and for the year ended December 31, 2023.

As at March 31, 2024	Stage 1		Stage 2		Stage 3		Total
Balance, January 1, 2024	$	482	$	210	$	237	$	929
Net re-measurement due to transfers	****	3	****	(5)	****	2	****	–
Transfer to stage 1	****	6	****	(6)	****	–	****	–
Transfer to stage 2	****	(3)	****	3	****	–	****	–
Transfer to stage 3	****	–	****	(2)	****	2	****	–
Net originations, purchases, disposals and repayments	****	(1)	****	(2)	****	(12)	****	(15)
Changes to risk, parameters, and models	****	(42)	****	4	****	14	****	(24)
Foreign exchange and other adjustments	****	7	****	4	****	5	****	16
Balance, end of the period	$	449	$	211	$	246	$	906
As at December 31, 2023	Stage 1		Stage 2		Stage 3		Total
Balance, beginning of the year	$	511	$	141	$	72	$	724
Net re-measurement due to transfers		4		6		(10)		–
Transfer to stage 1		12		(11)		(1)		–
Transfer to stage 2		(6)		28		(22)		–
Transfer to stage 3		(2)		(11)		13		–
Net originations, purchases, disposals and repayments		45		8		(23)		30
Changes to risk, parameters, and models		(71)		48		233		210
Foreign exchange and other adjustments		(6)		6		(35)		(35)
Balance, end of the year	$	483	$	209	$	237	$	929

(III) Significant judgements and estimates

The following table shows certain key macroeconomic variables used to estimate the expected credit loss (“ECL”) allowances by market. For the base case, upside and downside scenarios, the projections are provided for the next 12 months and then for the remaining forecast period, which represents a medium-term view.

			Base case scenario				Upside scenario				Downside scenario 1				Downside scenario 2
As at March 31, 2024	Current<br>quarter		Next 12<br>months		Ensuing<br>4 years		Next 12<br>months		Ensuing<br>4 years		Next 12<br>months		Ensuing<br>4 years		Next 12<br>months		Ensuing<br>4 years
Canada
Gross Domestic Product (GDP), in U.S. $ billions	$	1,947	****	1.1%	****	1.9%	****	3.1%	****	2.1%	****	(2.6%)	****	2.1%	****	(4.5%)	****	2.0%
Unemployment rate	****	6.0%	****	6.2%	****	6.1%	****	5.5%	****	5.3%	****	8.2%	****	8.0%	****	9.5%	****	9.7%
NYMEX Light Sweet Crude Oil (in U.S. dollars, per barrel)	****	78.3	****	79.2	****	71.6	****	81.8	****	71.9	****	64.7	****	65.0	****	55.0	****	58.8
U.S.
Gross Domestic Product (GDP), in U.S. $ billions	$	22,762	****	1.5%	****	2.2%	****	3.6%	****	2.4%	****	(2.4%)	****	2.6%	****	(4.2%)	****	2.5%
Unemployment rate	****	3.8%	****	4.0%	****	4.0%	****	3.2%	****	3.3%	****	6.5%	****	5.8%	****	6.9%	****	7.6%
7-10 Year BBB U.S. Corporate Index	****	5.7%	****	6.2%	****	6.1%	****	6.0%	****	6.1%	****	5.8%	****	5.5%	****	6.4%	****	5.4%
Japan
Gross Domestic Product (GDP), in JPY billions	¥	557,888	****	1.0%	****	0.8%	****	3.1%	****	1.0%	****	(4.1%)	****	1.1%	****	(7.8%)	****	1.7%
Unemployment rate	****	2.5%	****	2.5%	****	2.3%	****	2.4%	****	2.1%	****	3.0%	****	3.0%	****	3.1%	****	3.6%
Hong Kong
Unemployment rate	****	2.9%	****	2.9%	****	3.1%	****	2.6%	****	2.8%	****	4.0%	****	3.9%	****	4.4%	****	4.7%
Hang Seng Index	****	15,559	****	19.8%	****	9.7%	****	34.1%	****	9.3%	****	(14.2%)	****	16.2%	****	(34.4%)	****	19.8%
China
Gross Domestic Product (GDP), in CNY billions	$	110,067	****	5.4%	****	4.3%	****	8.1%	****	4.5%	****	(1.7%)	****	4.5%	****	(5.2%)	****	3.8%
FTSE Xinhua A200 Index	****	9,105	****	8.0%	****	4.6%	****	27.4%	****	2.5%	****	(30.9%)	****	11.5%	****	(41.6%)	****	12.9%

(IV) Sensitivity to changes in economic assumptions

The following table shows the actual ECL allowance recorded by the Company which results from using all four macroeconomic scenarios (including the more heavily weighted best estimate baseline scenario, one upside and two downside scenarios) weighted by probability of occurrence and shows the ECL allowance which would result from using only the baseline scenario.

As at	March 31, 2024		December 31, 2023
Probability-weighted ECLs	$	906	$	929
Baseline ECL	$	666	$	659
Difference – in amount	$	240	$	270
Difference – in percentage	****	26.40%		29.08%
Manulife Financial Corporation – First Quarter 2024	91
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(c) Securities lending, repurchase and reverse repurchase transactions

As at March 31, 2024, the Company had loaned securities (which are included in invested assets) with a market value of $1,110 (December 31, 2023 – $626). The Company holds collateral with a current market value that exceeds the value of securities lent in all cases.

As at March 31, 2024, the Company had engaged in reverse repurchase transactions of $122 (December 31, 2023 – $466) which are recorded as short-term receivables. In addition, the Company had engaged in repurchase transactions of $122 as at March 31, 2024 (December 31, 2023 – $202) which are recorded as payables.

(d) Credit default swaps

The Company replicates exposure to specific issuers by selling credit protection via credit default swaps (“CDS”) to complement its cash debt securities investing. The Company does not write CDS protection more than its government bond holdings.

The following tables present details of the credit default swap protection sold by type of contract and external agency rating for the underlying reference security.

As at March 31, 2024	Notional<br>amount^(1)^		Fair value		Weighted<br>average<br>maturity<br><br><br>(in years)^(2)^
Single name CDS^(3),(4)^^^– Corporate debt
AA	$	22	$	1	****	3
A	****	90	****	2	****	3
BBB	****	13	****	–	****	–
Total single name CDS	$	125	$	3	****	3
Total CDS protection sold	$	125	$	3	****	3
As at December 31, 2023	Notional<br>amount^(1)^		Fair value		Weighted<br>average<br>maturity<br><br><br>(in years)^(2)^
Single name CDS^(3),(4)^^^– Corporate debt
AA	$	23	$	1		4
A		94		2		3
BBB		14		–		1
Total single name CDS	$	131	$	3		3
Total CDS protection sold	$	131	$	3		3
^(1)^ Notional amounts represent<br>the maximum future payments the Company would have to pay its counterparties assuming a default of the underlying credit and zero recovery on the underlying issuer obligations.<br><br><br>^(2)^ The weighted average maturity of the CDS is weighted based<br>on notional amounts.<br> <br>^(3)^ Ratings are based on S&P where<br>available followed by Moody’s, DBRS, and Fitch. If no rating is available from a rating agency, an internally developed rating is used.<br><br><br>^(4)^ The Company held no purchased credit protection as at<br>March 31, 2024 and December 31, 2023.
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(e) Derivatives

The Company’s point-in-time exposure to losses related to credit risk of a derivative counterparty is limited to the amount of any net gains that may have accrued with the particular counterparty. Gross derivative counterparty exposure is measured as the total fair value (including accrued interest) of all outstanding contracts in a gain position excluding any offsetting contracts in a loss position and the impact of collateral on hand. The Company limits the risk of credit losses from derivative counterparties by using investment grade counterparties, entering into master netting arrangements which permit the offsetting of contracts in a loss position in the case of a counterparty default and entering into Credit Support Annex agreements whereby collateral must be provided when the exposure exceeds a certain threshold.

All contracts are held with or guaranteed by investment grade counterparties, the majority of whom are rated A- or higher. As at March 31, 2024, the percentage of the Company’s derivative exposure with counterparties rated AA- or higher was 33 per cent (December 31, 2023 – 33 per cent). As at March 31, 2024, the largest single counterparty exposure, without taking into consideration the impact of master netting agreements or the benefit of collateral held, was $1,503 (December 31, 2023 – $1,357). The net exposure to this counterparty, after taking into consideration master netting agreements and the fair value of collateral held, was $nil (December 31, 2023 – $nil).

Manulife Financial Corporation – First Quarter 2024	92

(f) Offsetting financial assets and financial liabilities

Certain derivatives, securities lent and repurchase agreements have conditional offset rights. The Company does not offset these financial instruments in the Consolidated Statements of Financial Position, as the rights of offset are conditional.

In the case of derivatives, collateral is collected from and pledged to counterparties and clearing houses to manage credit risk exposure in accordance with Credit Support Annexes to swap agreements and clearing agreements. Under master netting agreements, the Company has a right of offset in the event of default, insolvency, bankruptcy or other early termination.

In the case of reverse repurchase and repurchase transactions, additional collateral may be collected from or pledged to counterparties to manage credit exposure according to bilateral reverse repurchase or repurchase agreements. In the event of default by a reverse repurchase transaction counterparty, the Company is entitled to liquidate the collateral held to offset against the same counterparty’s obligation.

The following tables present the effect of conditional master netting agreements and similar arrangements. Similar arrangements may include global master repurchase agreements, global master securities lending agreements, and any related rights to financial collateral pledged or received.

			Related amounts not set off in the<br>Consolidated Statements of<br>Financial Position
As at March 31, 2024	Gross amounts of<br>financial<br>instruments^(1)^		Amounts subject to<br>enforceable<br>master netting<br>agreements or<br>similar arrangements		Financial and<br>cash collateral<br>pledged<br>(received)^(2)^		Net amounts<br>including<br>financing<br>entity^(3)^		Net amounts<br>excluding<br>financing<br>entity
Financial assets
Derivative assets	$	8,912	$	(6,762)	$	(1,979)	$	171	$	171
Securities lending	****	1,110	****	–	****	(1,110)	****	–	****	–
Reverse repurchase agreements	****	122	****	(122)	****	–	****	–	****	–
Total financial assets	$	10,144	$	(6,884)	$	(3,089)	$	171	$	171
Financial liabilities
Derivative liabilities	$	(14,259)	$	6,762	$	7,449	$	(48)	$	(10)
Repurchase agreements	****	(122)	****	122	****	–	****	–	****	–
Total financial liabilities	$	(14,381)	$	6,884	$	7,449	$	(48)	$	(10)
			Related amounts not set off in the<br>Consolidated Statements of<br>Financial Position
As at December 31, 2023	Gross amounts of<br>financial<br>instruments^(1)^		Amounts subject to<br>enforceable<br>master netting<br>agreements or<br>similar arrangements		Financial and<br>cash collateral<br>pledged<br>(received)^(2)^		Net amounts<br>including<br>financing<br>entity^(3)^		Net amounts<br>excluding<br>financing<br>entity
Financial assets
Derivative assets	$	9,044	$	(6,516)	$	(2,374)	$	154	$	154
Securities lending		626		–		(626)		–		–
Reverse repurchase agreements		466		(202)		(264)		–		–
Total financial assets	$	10,136	$	(6,718)	$	(3,264)	$	154	$	154
Financial liabilities
Derivative liabilities	$	(12,600)	$	6,516	$	5,958	$	(126)	$	(57)
Repurchase agreements		(202)		202		–		–		–
Total financial liabilities	$	(12,802)	$	6,718	$	5,958	$	(126)	$	(57)
^(1)^ Financial assets and<br>liabilities include accrued interest of $559 and $843, respectively (December 31, 2023 – $502 and $913, respectively).<br> <br>^(2)^ Financial and cash collateral exclude over-collateralization. As at March 31, 2024, the Company was over-collateralized on OTC derivative assets, OTC derivative liabilities,<br>securities lending and reverse repurchase agreements and repurchase agreements in the amounts of $569, $2,193, $46 and $nil, respectively (December 31, 2023 – $424, $1,420, $20 and $nil, respectively). As at March 31, 2024, collateral<br>pledged (received) does not include collateral-in-transit on OTC instruments or initial margin on exchange traded contracts or cleared contracts.<br><br><br>^(3)^ Includes derivative contracts entered between the Company<br>and its unconsolidated financing entity. The Company does not exchange collateral on derivative contracts entered with this entity.
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Manulife Financial Corporation – First Quarter 2024	93
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The Company also has certain credit linked note assets and variable surplus note liabilities which have unconditional offsetting rights. Under the netting agreements, the Company has rights of offset including in the event of the Company’s default, insolvency, or bankruptcy. These financial instruments are offset in the Consolidated Statements of Financial Position.

A credit linked note is a debt instrument the term of which, in this case, is linked to a variable surplus note. A surplus note is a subordinated debt obligation that often qualifies as surplus (the U.S. statutory equivalent of equity) by some U.S. state insurance regulators. Interest payments on surplus notes are made after all other contractual payments are made. The following tables present the effect of unconditional netting.

As at March 31, 2024	Gross<br>amounts of<br>financial<br>instruments		Amounts<br>subject to an<br>enforceable<br>netting<br>arrangement		Net<br>amounts of<br>financial<br>instruments
Credit linked note	$	1,351	$	(1,351)	$	–
Variable surplus note	****	(1,351)	****	1,351	****	–
As at December 31, 2023	Gross<br>amounts of<br>financial<br>instruments		Amounts<br>subject to an<br>enforceable<br>netting<br>arrangement		Net<br>amounts of<br>financial<br>instruments
Credit linked note	$	1,276	$	(1,276)	$	–
Variable surplus note		(1,276)		1,276		–

Note 8 Long-Term Debt

(a) Carrying value of long-term debt instruments

As at	Issue date	Maturity date	Par value		December 31,<br><br><br>2023
3.050% Senior notes^(1)^	August 27, 2020	August 27, 2060	US1,155	1,560	$	1,519
5.375% Senior notes^(1)^	March 4, 2016	March 4, 2046	US750	1,003		977
3.703% Senior notes^(1)^	March 16, 2022	March 16, 2032	US750	1,010		983
2.396% Senior notes^(1)^	June 1, 2020	June 1, 2027	US200	270		263
2.484% Senior notes^(1)^	May 19, 2020	May 19, 2027	US500	674		657
3.527% Senior notes^(1)^	December 2, 2016	December 2, 2026	US270	365		356
4.150% Senior<br>notes^(1)^	March 4, 2016	March 4, 2026	US1,000	1,351		1,316
Total				6,233	$	6,071

All values are in US Dollars.

^(1)^	These U.S. dollar senior notes have been designated as hedges of the Company’s net investment in its U.S. operations<br>which reduces the earnings volatility that would otherwise arise from the re-measurement of these senior notes into Canadian dollars.

(b) Fair value measurement

The Company measures long-term debt at amortized cost in the Consolidated Statements of Financial Position. As at March 31, 2024, the fair value of long-term debt was $5,432 (December 31, 2023 – $5,525). Fair value of long-term debt was determined using Level 2 valuation techniques (December 31, 2023 – Level 2).

Manulife Financial Corporation – First Quarter 2024	94

Note 9 Capital Instruments

(a) Carrying value of capital instruments

As at	Issue date	Earliest par<br>redemption date	Maturity date	Par value		December 31,<br>2023
JHFC Subordinated notes^(1)^	December 14, 2006	n/a	December 15, 2036	650	647	$	647
2.818% MFC Subordinated debentures^(1)^	May 12, 2020	May 13, 2030	May 13, 2035	1,000	997		996
5.054% MFC Subordinated debentures^(2)^	February 23, 2024	February 23, 2029	February 23, 2034	1,100	1,095		–
5.409% MFC Subordinated debentures^(1)^	March 10, 2023	March 10, 2028	March 10, 2033	1,200	1,195		1,195
4.061% MFC Subordinated notes^(1),(3)^	February 24, 2017	February 24, 2027	February 24, 2032	US750	1,012		987
2.237% MFC Subordinated debentures^(1)^	May 12, 2020	May 12, 2025	May 12, 2030	1,000	999		999
3.00% MFC Subordinated notes^(1)^	November 21, 2017	November 21, 2024	November 21, 2029	S500	501		499
3.049% MFC Subordinated debentures^(1)^	August 18, 2017	August 20, 2024	August 20, 2029	750	750		750
7.375% JHUSA Surplus notes^(4)^	February 25, 1994	n/a	February 15, 2024	US450	–		594
Total					7,196	$	6,667

All values are in US Dollars.

^(1)^ The Company is monitoring regulatory and market developments globally with respect to the interest rate benchmark reform. The Company will take appropriate actions in due course to accomplish any necessary transitions or replacements. As at March 31, 2024, capital instruments of $647 (December 31, 2023 – $647) have an interest rate referencing CDOR. In addition, capital instruments of $2,746, $1,012 and $501 (December 31, 2023 – $2,745, $987 and $499, respectively) have interest rate resets in the future referencing CDOR, the US Dollar Mid-Swap rate (based on LIBOR), and the Singapore Dollar Swap Offer rate, respectively. Future rate resets for these capital instruments may rely on alternative reference rates such as the Canadian Overnight Repo Rate Average (CORRA), the alternative rate for CDOR, the Secured Overnight Financing Rate (SOFR), the alternative rate for USD LIBOR, and the Singapore Overnight Rate Average (SORA), the alternative rate for the Singapore Swap Offer Rate (SOR). ^(2)^ Issued by MFC during the first quarter of 2024, interest is payable semi-annually. After February 23, 2029, the interest rate will reset to equal the Daily Compounded CORRA plus 1.44%. With regulatory approval, MFC may redeem the debentures, in whole, or in part, on or after February 23, 2029, at a redemption price equal to par, together with accrued and unpaid interest to, but excluding, the date fixed for redemption. ^(3)^ Designated as a hedge of the Company’s net investment in its U.S. operations which reduces the earnings volatility that would otherwise arise from the re-measurement of the subordinated notes into Canadian dollars. ^(4)^ The 7.375% JHUSA Surplus notes matured and were redeemed on February 15, 2024.

(b) Fair value measurement

The Company measures capital instruments at amortized cost in the Consolidated Statements of Financial Position. As at March 31, 2024, the fair value of capital instruments was $7,028 (December 31, 2023 – $6,483). Fair value of capital instruments was determined using Level 2 valuation techniques (December 31, 2023 – Level 2).

Manulife Financial Corporation – First Quarter 2024	95

Note 10 Equity Capital and Earnings Per Share

(a) Preferred shares and other equity instruments

The following table presents information about the outstanding preferred shares and other equity instruments as at March 31, 2024 and December 31, 2023.

			Annual		Earliest		Number of				Net amount^(4)^
As at	Issue date		dividend /<br>distribution rate^(1)^		redemption<br>date^(2),(3)^		shares<br>(in millions)		Face<br>amount		March 31,2024		December 31,<br>2023
Preferred shares
Class A preferred shares
Series 2		February 18, 2005		4.65%		n/a		14	$	350	$	344	$	344
Series 3		January 3, 2006		4.50%		n/a		12		300	****	294		294
Class 1 preferred shares
Series 3^(5),(6)^		March 11, 2011		2.348%		June 19, 2026		7		163	****	160		160
Series 4^(7)^		June 20, 2016		floating		June 19, 2026		1		37	****	36		36
Series 9^(5),(6)^		May 24, 2012		5.978%		September 19, 2027		10		250	****	244		244
Series 11^(5),(6)^		December 4, 2012		6.159%		March 19, 2028		8		200	****	196		196
Series 13^(5),(6)^		June 21, 2013		6.350%		September 19, 2028		8		200	****	196		196
Series 15^(5),(6)^		February 25, 2014		3.786%		June 19, 2024		8		200	****	195		195
Series 17^(5),(6)^		August 15, 2014		3.800%		December 19, 2024		14		350	****	343		343
Series 19^(5),(6)^		December 3, 2014		3.675%		March 19, 2025		10		250	****	246		246
Series 25^(5),(6)^		February 20, 2018		5.942%		June 19, 2028		10		250	****	245		245
Other equity instruments
Limited recourse capital notes (LRCN)^(8)^
Series 1^(9)^		February 19, 2021		3.375%		May 19, 2026		n/a		2,000	****	1,982		1,982
Series 2^(9)^		November 12, 2021		4.100%		February 19, 2027		n/a		1,200	****	1,189		1,189
Series<br>3^(9)^		June 16, 2022		7.117%		June 19, 2027		n/a		1,000	****	990		990
Total								102	$	6,750	$	6,660	$	6,660
^(1)^ Holders of Class A and Class 1<br>preferred shares are entitled to receive non-cumulative preferential cash dividends on a quarterly basis, as and when declared by the Board of Directors. Non-deferrable<br>distributions are payable to all LRCN holders semi-annually at the Company’s discretion.<br> <br>^(2)^ Redemption of all preferred shares is subject to regulatory approval. MFC may redeem each series, in whole or in part, at par, on the earliest redemption date or every five years<br>thereafter, except for Class A Series 2, Class A Series 3 and Class 1 Series 4 preferred shares. Class A Series 2 and Series 3 preferred shares are past their respective earliest redemption date and MFC may redeem these preferred<br>shares, in whole or in part, at par at any time, subject to regulatory approval, as noted. MFC may redeem the Class 1 Series 4 preferred shares, in whole or in part, at any time, at $25.00 per share if redeemed on June 19, 2026 (the<br>earliest redemption date) and on June 19 every five years thereafter, or at $25.50 per share if redeemed on any other date after June 19, 2021, subject to regulatory approval, as noted.<br><br><br>^(3)^ Redemption of all LRCN series is subject to regulatory<br>approval. MFC may at its option redeem each series in whole or in part, at a redemption price equal to par, together with accrued and unpaid interest. The redemption period for Series 1 is every five years during the period from May 19 and<br>including June 19, commencing in 2026. The redemption period for Series 2 is every five years during the period from February 19 and including March 19, commencing in 2027. After the first redemption date, the redemption period for<br>Series 3 is every five years during the period from May 19 to and including June 19, commencing in 2032.<br> <br>^(4)^ Net of after-tax issuance costs.<br><br><br>^(5)^ On the earliest redemption date and every five years<br>thereafter, the annual dividend rate will be reset to the five-year Government of Canada bond yield plus a yield specified for each series. The specified yield for Class 1 preferred shares is: Series 3 – 1.41%, Series 9 – 2.86%,<br>Series 11 – 2.61%, Series 13 – 2.22%, Series 15 – 2.16%, Series 17 – 2.36%, Series 19 – 2.30%, and Series 25 – 2.55%.<br><br><br>^(6)^ On the earliest redemption date and every five years<br>thereafter, Class 1 preferred shares are convertible at the option of the holder into a new series that is one number higher than their existing series, and the holders are entitled to non-cumulative<br>preferential cash dividends, payable quarterly if and when declared by the Board of Directors, at a rate equal to the three-month Government of Canada Treasury bill yield plus the rate specified in footnote 5 above.<br><br><br>^(7)^ The floating dividend rate for the Class 1 Series 4<br>shares equals the three-month Government of Canada Treasury bill yield plus 1.41%.<br> <br>^(8)^ Non-payment of distributions or principal on any LRCN series when due will result in a recourse event. The recourse of each noteholder will be<br>limited to their proportionate amount of the Limited Recourse Trust’s assets which comprise of Class 1 Series 27 preferred shares for LRCN Series 1, Class 1 Series 28 preferred shares for LRCN Series 2, and Class 1 Series 29<br>preferred shares for LRCN Series 3. All claims of the holders of LRCN series against MFC will be extinguished upon receipt of the corresponding trust assets. The Class 1 Series 27, Class 1 Series 28, and Class 1 Series 29 preferred<br>shares are eliminated on consolidation while being held in the Limited Recourse Trust.<br> <br>^(9)^ The LRCN Series 1 distribute at a fixed rate of 3.375% payable semi-annually, until June 18, 2026; on June 19, 2026 and every five years thereafter until June 19, 2076,<br>the rate will be reset at a rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 2.839%. The LRCN Series 2 distribute at a fixed rate of 4.10% payable semi-annually, until March 18, 2027; on March 19,<br>2027 and every five years thereafter until March 19, 2077, the rate will be reset at a rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 2.704%. The LRCN Series 3 distribute at a fixed rate of 7.117%<br>payable semi-annually, until June 18, 2027; on June 19, 2027 and every five years thereafter until June 19, 2077, the rate will be reset at a rate equal to the five-year Government of Canada yield as defined in the prospectus, plus<br>3.95%.
---

(b) Common shares

As at March 31, 2024, there were 16 million outstanding stock options and deferred share units that entitle the holders to receive common shares or payment in cash or common shares, at the option of the holders (December 31, 2023 – 17 million).

Manulife Financial Corporation – First Quarter 2024	96

The following table presents changes in common shares issued and outstanding.

Number of common shares (in millions)	For the three months endedMarch 31, 2024	For the year ended<br><br><br>December 31, 2023
Balance, beginning of period	1,806	1,865
Repurchased for cancellation	(6)	(63)
Issued on exercise of stock options and deferred share<br>units	1	4
Balance, end of period	1,801	1,806

Normal course issuer bid

On February 20, 2024, the Company received approval from the Toronto Stock Exchange (“TSX”) to launch a normal course issuer bid (“NCIB”) that permits the purchase for cancellation of up to 50 million common shares, representing approximately 2.8% of its issued and outstanding common shares. Purchases under the NCIB commenced on February 23, 2024 and may continue until February 22, 2025, when the NCIB expires, or such earlier date as the Company completes its purchases.

During the three months ended March 31, 2024, the Company purchased for cancellation 6.2 million shares for $203. Of this, $74 was recorded in common shares and $129 was recorded in retained earnings in the Consolidated Statements of Changes in Equity.

On May 7, 2024, the Company announced that the TSX approved an amendment to the existing NCIB to increase the number of common shares that it may repurchase for cancellation from up to 50 million common shares (approximately 2.8% of shares outstanding) to up to 90 million common shares (approximately 5% of shares outstanding as at February 12, 2024).

(c) Earnings per share

The following is a reconciliation of the denominator (number of shares) in the calculation of basic and diluted earnings per common share.

For the three months ended March 31,	2024
Weighted average number of common shares (in millions)	****	1,805	1,858
Dilutive stock-based awards^(1)^ (in millions)	****	5	4
Weighted average number of diluted common shares (inmillions)	****	1,810	1,862
^(1)^	The dilutive effect of stock-based awards was calculated using the treasury stock method. This method calculates the<br>number of incremental shares by assuming the outstanding stock-based awards are (i) exercised and (ii) then reduced by the number of shares assumed to be repurchased from the issuance proceeds, using the average market price of MFC common<br>shares for the period. Excluded from the calculation was a weighted average of nil million (2023 – nil million) anti-dilutive stock-based awards.
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Note 11 Revenue from Service Contracts

The Company provides investment management services, transaction processing and administrative services and distribution and related services to proprietary and third-party investment funds, retirement plans, group benefit plans, institutional investors and other arrangements. The Company also provides real estate management services to tenants of the Company’s investment properties.

The Company’s service contracts generally impose single performance obligations, each consisting of a series of similar related services for each customer.

The Company’s performance obligations within service arrangements are generally satisfied over time as the customer simultaneously receives and consumes the benefits of the services rendered, measured using an output method. Fees typically include variable consideration and the related revenue is recognized to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty is subsequently resolved.

Manulife Financial Corporation – First Quarter 2024	97

Asset based fees vary with asset values of accounts under management, subject to market conditions and investor behaviors beyond the Company’s control. Transaction processing and administrative fees vary with activity volume, also beyond the Company’s control. Some fees, including distribution fees, are based on account balances and transaction volumes. Fees related to account balances and transaction volumes are measured daily. Real estate management service fees include fixed portions plus recovery of variable costs of services rendered to tenants. Fees related to services provided are generally recognized as services are rendered, which is when it becomes highly probable that no significant reversal of cumulative revenue recognized will occur. The Company has determined that its service contracts have no significant financing components because fees are collected monthly. The Company has no significant contract assets or contract liabilities.

The following tables present revenue from service contracts by service lines and reporting segments as disclosed in note 14.

For the three months ended March 31, 2024	Global WAM		Asia,<br>Canada,<br>U.S., and<br>Corporate<br>and Other		Total
Investment management and other related fees	$	850	$	(118)	$	732
Transaction processing, administration, and service fees	****	682	****	81	****	763
Distribution fees and other	****	222	****	15	****	237
Total included in other revenue	****	1,754	****	(22)	****	1,732
Revenue fromnon-service lines	****	(4)	****	80	****	76
Total other revenue	$	1,750	$	58	$	1,808
Real estate management services included in net investmentincome	$	–	$	84	$	84
For the three months ended March 31, 2023	Global WAM		Asia,<br>Canada,<br>U.S., and<br>Corporate<br>and Other		Total
Investment management and other related fees	$	831	$	(94)	$	737
Transaction processing, administration, and service fees		625		69		694
Distribution fees and other		208		13		221
Total included in other revenue		1,664		(12)		1,652
Revenue from non-servicelines		1		38		39
Total other revenue	$	1,665	$	26	$	1,691
Real estate management services included in net investmentincome	$	–	$	83	$	83

Note 12 Employee Future Benefits

The Company maintains defined contribution and defined benefit pension plans, and other post-employment plans for eligible employees and agents. The following table presents information about the financial impacts of the Company’s material pension and retiree welfare plans in the U.S. and Canada.

	Pension plans				Retiree welfare plans^(1)^
For the three months ended March 31,	2024		2023		2024		2023
Defined benefit current service cost	$	11	$	10	$	–	$	–
Defined benefit administrative expenses	****	7		3	****	–		–
Service cost	****	18		13	****	–		–
Interest on net defined benefit (asset) liability	****	1		1	****	(1)		(1)
Defined benefit cost	****	19		14	****	(1)		(1)
Defined contribution cost	****	29		28	****	–		–
Net benefit cost reported in earnings	$	48	$	42	$	(1)	$	(1)
Actuarial (gain) loss on economic assumption changes	$	(48)	$	65	$	(8)	$	9
Investment (gain) loss (excluding interest income)	****	11		(87)	****	(1)		(11)
Change in effect of asset limit	****	–		4	****	–		–
Remeasurement (gain) loss recorded in AOCI, net oftax	$	(37)	$	(18)	$	(9)	$	(2)
^(1)^	There are no material current service costs for the retiree welfare plans as they are closed and mostly frozen. The<br>remeasurement gain or loss on these plans is due to the volatility of discount rates and investment returns.
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Manulife Financial Corporation – First Quarter 2024	98
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Note 13 Commitments and Contingencies

(a) Legal proceedings

The Company is regularly involved in legal actions, both as a defendant and as a plaintiff. The legal actions where the Company is a party ordinarily relate to its activities as a provider of insurance protection or wealth management products, reinsurance, or in its capacity as an investment adviser, employer, or taxpayer. Other life insurers and asset managers, operating in the jurisdictions in which the Company does business, have been subject to a wide variety of other types of actions, some of which resulted in substantial judgments or settlements against the defendants; it is possible that the Company may become involved in similar actions in the future. In addition, government and regulatory bodies in Canada, the United States, Asia and other jurisdictions where the Company conducts business regularly make inquiries and, from time to time, require the production of information or conduct examinations concerning the Company’s compliance with, among other things, insurance laws, securities laws, and laws governing the activities of broker-dealers.

In June 2018, a class action was initiated against the Company in the U.S. District Court for the Southern District of New York on behalf of owners of Performance Universal Life (“Perf UL”) policies issued between 2003 and 2010 whose policies were subject to a Cost of Insurance (“COI”) increase announced in 2018.

In addition to the class action, twelve individual lawsuits opposing the Perf UL COI increases were filed; nine in federal court and three in state court. The Company has now resolved litigation with respect to 100% of the filed lawsuits, which represents 84% of the total face amount of policies in the COI-increase block. Litigation remains possible with the final approximately 16% of the total face amount of the COI-increase block.

Subsequent to the resolution of the Perf UL COI-increase lawsuits, in September 2023 an unrelated lawsuit was initiated against the Company in the U.S. District Court of the Southern District of New York as a putative class action on behalf of all current and former owners of universal life insurance policies issued by the Company “that state that cost of insurance rates will be based on future expectations that include taxes.” The Plaintiff’s theory is that the Company impermissibly failed to decrease the COI rates charged to these policy owners after the implementation of the Tax Cuts and Jobs Act of 2018. It is too early in the litigation to offer any reliable opinion about the scope of the class policies that may be at issue or the likely outcome.

(b) Guarantees

(I) Guarantees regardingManulife Finance (Delaware), L.P. (“MFLP”)

MFC has guaranteed the payment of amounts on the $650 subordinated debentures due on December 15, 2041 issued by MFLP, a wholly owned unconsolidated financing entity.

The following tables present certain condensed consolidated financial information for MFC and MFLP.

Condensed Consolidated Statements of Income Information

For the three months ended March 31, 2024	MFC<br>(Guarantor)		Subsidiaries<br>on a<br>combined<br>basis		Consolidation<br>adjustments		Total<br>consolidated<br>amounts		MFLP
Total insurance service result	$	–	$	978	$	–	$	978	$	–
Total investment result	****	5	****	345	****	(2)	****	348	****	14
Other revenue	****	(3)	****	1,811	****	–	****	1,808	****	6
Net income (loss) attributed to shareholders and other equity<br>holders	****	866	****	951	****	(951)	****	866	****	9
For the three months ended March 31, 2023	MFC<br>(Guarantor)		Subsidiaries<br>on a<br>combined<br>basis		Consolidation<br>adjustments		Total<br>consolidated<br>amounts		MFLP
---	---	---	---	---	---	---	---	---	---	---
Total insurance service result	$	–	$	849	$	–	$	849	$	–
Total investment result		5		977		(12)		970		12
Other revenue		(4)		1,695		–		1,691		–
Net income (loss) attributed to shareholders and other equity<br>holders		1,406		1,490		(1,490)		1,406		1
Manulife Financial Corporation – First Quarter 2024	99
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Condensed Consolidated Statements of Financial Position Information

As at March 31, 2024	MFC<br>(Guarantor)		Subsidiaries<br>on a combined<br>basis		Consolidation<br>adjustments		Total<br>consolidated<br>amounts		MFLP
Total invested assets	$	88	$	410,588	$	–	$	410,676	$	10
Insurance contract assets	****	–	****	140	****	–	****	140	****	–
Reinsurance contract held assets	****	–	****	54,070	****	–	****	54,070	****	–
Total other assets	****	62,516	****	45,597	****	(67,889)	****	40,224	****	958
Segregated funds net assets	****	–	****	402,109	****	–	****	402,109	****	–
Insurance contract liabilities, excluding those for account of segregated fund holders	****	–	****	370,940	****	–	****	370,940	****	–
Reinsurance contract held liabilities	****	–	****	2,987	****	–	****	2,987	****	–
Investment contract liabilities	****	–	****	12,174	****	–	****	12,174	****	–
Total other liabilities	****	14,354	****	56,354	****	(1,591)	****	69,117	****	700
Insurance contract liabilities for account of segregated fund holders	****	–	****	119,896	****	–	****	119,896	****	–
Investment contract liabilities for account of segregated fund<br>holders	****	–	****	282,213	****	–	****	282,213	****	–
As at December 31, 2023	MFC<br>(Guarantor)		Subsidiaries<br>on a combined<br>basis		Consolidation<br>adjustments		Total<br>consolidated<br>amounts		MFLP
---	---	---	---	---	---	---	---	---	---	---
Total invested assets	$	86	$	417,124	$	–	$	417,210	$	9
Insurance contract assets		–		145		–		145		–
Reinsurance contract held assets		–		42,651		–		42,651		–
Total other assets		59,023		42,411		(63,410)		38,024		969
Segregated funds net assets		–		377,544		–		377,544		–
Insurance contract liabilities, excluding those for account of segregated fund holders		–		367,996		–		367,996		–
Reinsurance contract held liabilities		–		2,831		–		2,831		–
Investment contract liabilities		–		11,816		–		11,816		–
Total other liabilities		12,070		55,129		(539)		66,660		718
Insurance contract liabilities for account of segregated fund holders		–		114,143		–		114,143		–
Investment contract liabilities for account of segregated fund<br>holders		–		263,401		–		263,401		–

(II) Guarantees regarding John Hancock Life Insurance Company (U.S.A.) (“JHUSA”)

Details of guarantees regarding certain securities issued or to be issued by JHUSA are outlined in note 16.

Note 14 Segment and Geographic Reporting

The Company’s reporting segments are Asia, Canada, U.S., Global WAM and Corporate and Other. Each reporting segment is responsible for managing its operating results, developing products, and defining strategies for services and distribution based on the profile and needs of its businesses and markets. The Company’s significant product and service offerings by the reporting segments are mentioned below.

Wealth and asset management businesses (Global WAM) – branded as Manulife Investment Management, provides investment advice and innovative solutions to retirement, retail, and institutional clients. Products and services are distributed through multiple distribution channels, including agents and brokers affiliated with the Company, independent securities brokerage firms and financial advisors pension plan consultants and banks.

Insurance and annuity products (Asia, Canada and U.S.) – include a variety of individual life insurance, individual and group long-term care insurance and guaranteed and partially guaranteed annuity products. Products are distributed through multiple distribution channels, including insurance agents, brokers, banks, financial planners and direct marketing. Manulife Bank of Canada offers a variety of deposit and credit products to Canadian customers.

Corporate and Other segment – comprised of investment performance of assets backing capital, net of amounts allocated to operating segments; costs incurred by the corporate office related to shareholder activities (not allocated to the operating segments); financing costs; property and casualty reinsurance business; and run-off reinsurance operations including variable annuities and accident and health. In addition, consolidations and eliminations of transactions between operating segments are also included.

Manulife Financial Corporation – First Quarter 2024	100

The following tables present results by reporting segments and by geographical location.

(a) By Segment

For the three months ended<br><br><br>March 31, 2024	Asia		Canada		U.S.		Global<br>WAM		Corporate<br>and Other		Total
Insurance service result
Life, health and property and casualty insurance	$	564	$	228	$	95	$	–	$	28	$	915
Annuities and pensions	****	(17)	****	56	****	24	****	–	****	–	****	63
Total insurance service result	****	547	****	284	****	119	****	–	****	28	****	978
Net investment income (loss)	****	2,228	****	1,204	****	905	****	(177)	****	333	****	4,493
Insurance finance income (expenses)
Life, health and property and casualty insurance	****	(1,440)	****	(1,055)	****	(1,611)	****	–	****	24	****	(4,082)
Annuities and pensions	****	(1,128)	****	325	****	427	****	–	****	–	****	(376)
Total insurance finance income (expenses)	****	(2,568)	****	(730)	****	(1,184)	****	–	****	24	****	(4,458)
Reinsurance finance income (expenses)
Life, health and property and casualty insurance	****	(184)	****	(5)	****	476	****	–	****	–	****	287
Annuities and pensions	****	586	****	–	****	(449)	****	–	****	–	****	137
Total reinsurance finance income (expenses)	****	402	****	(5)	****	27	****	–	****	–	****	424
Decrease (increase) in investment contract liabilities	****	(8)	****	(16)	****	(38)	****	(53)	****	4	****	(111)
Net segregated fund investment result	****	–	****	–	****	–	****	–	****	–	****	–
Total investment result	****	54	****	453	****	(290)	****	(230)	****	361	****	348
Other revenue	****	55	****	75	****	39	****	1,750	****	(111)	****	1,808
Other expenses	****	(56)	****	(160)	****	(18)	****	(1,092)	****	(132)	****	(1,458)
Interest expenses	****	(6)	****	(271)	****	(4)	****	(2)	****	(141)	****	(424)
Net income (loss) before income taxes	****	594	****	381	****	(154)	****	426	****	5	****	1,252
Income tax (expenses) recoveries	****	(150)	****	(83)	****	46	****	(61)	****	(32)	****	(280)
Net income (loss)	****	444	****	298	****	(108)	****	365	****	(27)	****	972
Less net income (loss) attributed to:
Non-controlling interests	****	55	****	–	****	–	****	–	****	–	****	55
Participating policyholders	****	26	****	25	****	–	****	–	****	–	****	51
Net income (loss) attributed to shareholders and other equityholders	$	363	$	273	$	(108)	$	365	$	(27)	$	866
Total assets	$	184,829	$	156,211	$	252,120	$	277,148	$	36,911	$	907,219
Manulife Financial Corporation – First Quarter 2024	101
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For the three months ended<br>March 31, 2023	Asia		Canada		U.S.		Global<br><br><br>WAM		Corporate<br><br><br>and Other		Total
Insurance service result
Life, health and property and casualty insurance	$	422	$	211	$	147	$	–	$	47	$	827
Annuities and pensions		(52)		48		26		–		–		22
Total insurance service result		370		259		173		–		47		849
Net investment income (loss)		2,084		1,500		1,389		(204)		384		5,153
Insurance finance income (expenses)
Life, health and property and casualty insurance		(1,636)		(941)		(1,308)		–		673		(3,212)
Annuities and pensions		(110)		(83)		(373)		–		–		(566)
Total insurance finance income (expenses)		(1,746)		(1,024)		(1,681)		–		673		(3,778)
Reinsurance finance income (expenses)
Life, health and property and casualty insurance		(48)		7		197		–		(670)		(514)
Annuities and pensions		–		–		192		–		–		192
Total reinsurance finance income (expenses)		(48)		7		389		–		(670)		(322)
Decrease (increase) in investment contract liabilities		(5)		(20)		4		(56)		(6)		(83)
Net segregated fund investment result		–		–		–		–		–		–
Total investment result		285		463		101		(260)		381		970
Other revenue		10		72		24		1,665		(80)		1,691
Other expenses		(50)		(139)		(75)		(1,055)		(105)		(1,424)
Interest expenses		(2)		(232)		(4)		(5)		(124)		(367)
Net income (loss) before income taxes		613		423		219		345		119		1,719
Income tax (expenses) recoveries		(105)		(99)		(33)		(48)		(24)		(309)
Net income (loss)		508		324		186		297		95		1,410
Less net income (loss) attributed to:
Non-controlling interests		54		–		–		–		–		54
Participating policyholders		(65)		15		–		–		–		(50)
Net income (loss) attributed to shareholders and other equityholders	$	519	$	309	$	186	$	297	$	95	$	1,406
Total assets	$	170,495	$	153,325	$	251,020	$	242,815	$	44,467	$	862,122

(b) By Geographic Location

For the three months endedMarch 31, 2024	Asia		Canada		U.S.		Other		Total
Insurance service result
Life, health and property and casualty insurance	$	565	$	224	$	95	$	31	$	915
Annuities and pensions	****	(17)	****	56	****	24	****	–	****	63
Total insurance service result	****	548	****	280	****	119	****	31	****	978
Net investment income (loss)	****	2,256	****	1,387	****	849	****	1	****	4,493
Insurance finance income (expenses)
Life, health and property and casualty insurance	****	(1,440)	****	(1,055)	****	(1,587)	****	–	****	(4,082)
Annuities and pensions	****	(1,128)	****	325	****	427	****	–	****	(376)
Total insurance finance income (expenses)	****	(2,568)	****	(730)	****	(1,160)	****	–	****	(4,458)
Reinsurance finance income (expenses)
Life, health and property and casualty insurance	****	(184)	****	(5)	****	476	****	–	****	287
Annuities and pensions	****	586	****	–	****	(449)	****	–	****	137
Total reinsurance finance income (expenses)	****	402	****	(5)	****	27	****	–	****	424
Decrease (increase) in investment contract liabilities	****	(41)	****	(35)	****	(34)	****	(1)	****	(111)
Net segregated fund investment result	****	–	****	–	****	–	****	–	****	–
Total investment result	$	49	$	617	$	(318)	$	–	$	348
Other revenue	$	504	$	535	$	858	$	(89)	$	1,808
Manulife Financial Corporation – First Quarter 2024	102
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For the three months ended<br>March 31, 2023	Asia		Canada		U.S.		Other		Total
Insurance service result
Life, health and property and casualty insurance	$	427	$	204	$	142	$	54	$	827
Annuities and pensions		(52)		48		26		–		22
Total insurance service result		375		252		168		54		849
Net investment income (loss)		2,201		1,636		1,292		24		5,153
Insurance finance income (expenses)
Life, health and property and casualty insurance		(1,636)		(275)		(1,303)		2		(3,212)
Annuities and pensions		(110)		(83)		(373)		–		(566)
Total insurance finance income (expenses)		(1,746)		(358)		(1,676)		2		(3,778)
Reinsurance finance income (expenses)
Life, health and property and casualty insurance		(52)		(659)		197		–		(514)
Annuities and pensions		–		–		192		–		192
Total reinsurance finance income (expenses)		(52)		(659)		389		–		(322)
Decrease (increase) in investment contract liabilities		(59)		(28)		6		(2)		(83)
Net segregated fund investment result		–		–		–		–		–
Total investment result	$	344	$	591	$	11	$	24	$	970
Other revenue	$	335	$	520	$	843	$	(7)	$	1,691
Note 15	Segregated Funds
---	---

The Company manages a number of segregated funds on behalf of policyholders. Policyholders are provided with the opportunity to invest in different categories of segregated funds that hold a range of underlying investments. The underlying investments consist of both individual securities and mutual funds.

Segregated funds underlying investments may be exposed to a variety of financial and other risks. These risks are primarily mitigated by investment guidelines that are actively monitored by professional and experienced portfolio advisors. The Company is not exposed to these risks beyond the liabilities related to the guarantees associated with certain variable life and annuity products included in segregated funds. Accordingly, the Company’s exposure to loss from segregated fund products is limited to the value of these guarantees.

As at March 31, 2024, these guarantees are recorded within the Company’s insurance contract liabilities and amount to $1,836 (December 31, 2023 – $2,675), of which $552 are reinsured (December 31, 2023 – $980). Assets supporting these guarantees, net of reinsurance, are recognized in invested assets according to their investment type. “Insurance contract liabilities for account of segregated fund holders” on the Consolidated Statements of Financial Position exclude these guarantees and are considered to be a non-distinct investment component of insurance contract liabilities. The “Risk Management and Risk Factors Update” section of the First Quarter 2024 MD&A provides information regarding market risk sensitivities associated with variable annuity and segregated fund guarantees.

Note 16	Information Provided in Connection with Investments in Deferred Annuity Contracts and Signature Notes Issued or Assumed by John Hancock Life Insurance Company (U.S.A.)

The following condensed consolidated financial information, presented in accordance with IFRS, and the related disclosure have been included in these Interim Consolidated Financial Statements with respect to JHUSA in compliance with Regulation S-X and Rule 12h-5 of the United States Securities and Exchange Commission (the “Commission”). These financial statements are incorporated by reference in certain of the MFC and its subsidiaries registration statements and relate to MFC’s guarantee of certain securities to be issued by its subsidiaries. For information about JHUSA, the MFC guarantees and restrictions on the ability of MFC to obtain funds from its subsidiaries by dividend or loan, refer to note 24 to the Company’s 2023 Annual Consolidated Financial Statements.

Manulife Financial Corporation – First Quarter 2024	103

Condensed Consolidated Statement of Financial Position

As at March 31, 2024	MFC<br>(Guarantor)		JHUSA<br>(Issuer)		Other<br>subsidiaries		Consolidation<br>adjustments		Consolidated<br>MFC
Assets
Total invested assets	$	88	$	103,834	$	306,999	$	(245)	$	410,676
Investments in unconsolidated subsidiaries	****	62,104	****	8,917	****	19,348	****	(90,369)	****	–
Insurance contract assets	****	–	****	–	****	216	****	(76)	****	140
Reinsurance contract held assets	****	–	****	47,115	****	17,327	****	(10,372)	****	54,070
Other assets	****	412	****	10,710	****	33,928	****	(4,826)	****	40,224
Segregated funds net assets	****	–	****	201,783	****	202,010	****	(1,684)	****	402,109
Total assets	$	62,604	$	372,359	$	579,828	$	(107,572)	$	907,219
Liabilities and equity
Insurance contract liabilities, excluding those for account of segregated fund holders	$	–	$	145,078	$	236,639	$	(10,777)	$	370,940
Reinsurance contract held liabilities	****	–	****	–	****	2,990	****	(3)	****	2,987
Investment contract liabilities	****	–	****	3,960	****	8,832	****	(618)	****	12,174
Other liabilities	****	1,572	****	6,391	****	52,589	****	(4,864)	****	55,688
Long-term debt	****	6,233	****	–	****	–	****	–	****	6,233
Capital instruments	****	6,549	****	–	****	647	****	–	****	7,196
Insurance contract liabilities for account of segregated fund holders	****	–	****	54,822	****	65,074	****	–	****	119,896
Investment contract liabilities for account of segregated fund holders	****	–	****	146,961	****	136,936	****	(1,684)	****	282,213
Shareholders and other equity holders’ equity	****	48,250	****	15,205	****	74,421	****	(89,626)	****	48,250
Participating policyholders’ equity	****	–	****	(58)	****	372	****	–	****	314
Non-controlling<br>interests	****	–	****	–	****	1,328	****	–	****	1,328
Total liabilities and equity	$	62,604	$	372,359	$	579,828	$	(107,572)	$	907,219

Condensed Consolidated Statement of Financial Position

As at December 31, 2023	MFC<br>(Guarantor)		JHUSA<br>(Issuer)		Other<br>subsidiaries		Consolidation<br>adjustments		Consolidated<br>MFC
Assets
Total invested assets	$	86	$	109,433	$	307,930	$	(239)	$	417,210
Investments in unconsolidated subsidiaries		58,694		8,674		17,916		(85,284)		–
Insurance contract assets		–		–		217		(72)		145
Reinsurance contract held assets		–		42,418		10,380		(10,147)		42,651
Other assets		329		8,731		32,700		(3,736)		38,024
Segregated funds net assets		–		188,067		191,241		(1,764)		377,544
Total assets	$	59,109	$	357,323	$	560,384	$	(101,242)	$	875,574
Liabilities and equity
Insurance contract liabilities, excluding those for account of segregated fund holders	$	–	$	145,589	$	232,972	$	(10,565)	$	367,996
Reinsurance contract held liabilities		–		–		2,831		–		2,831
Investment contract liabilities		–		3,487		8,928		(599)		11,816
Other liabilities		573		5,869		51,266		(3,786)		53,922
Long-term debt		6,071		–		–		–		6,071
Capital instruments		5,426		594		647		–		6,667
Insurance contract liabilities for account of segregated fund holders		–		51,719		62,424		–		114,143
Investment contract liabilities for account of segregated fund holders		–		136,348		128,817		(1,764)		263,401
Shareholders and other equity holders’ equity		47,039		13,773		70,755		(84,528)		47,039
Participating policyholders’ equity		–		(56)		313		–		257
Non-controlling<br>interests		–		–		1,431		–		1,431
Total liabilities and equity	$	59,109	$	357,323	$	560,384	$	(101,242)	$	875,574
Manulife Financial Corporation – First Quarter 2024	104
---	---

Condensed Consolidated Statement of Income

For the three months ended March 31, 2024	MFC<br>(Guarantor)		JHUSA<br>(Issuer)		Other<br>subsidiaries		Consolidation<br>adjustments		Consolidated<br>MFC
Insurance service result
Insurance revenue	$	–	$	2,714	$	4,149	$	(366)	$	6,497
Insurance service expenses	****	–	****	(2,504)	****	(3,143)	****	375	****	(5,272)
Net expenses from reinsurance contracts held	****	–	****	(97)	****	(150)	****	–	****	(247)
Total insurance service result	****	–	****	113	****	856	****	9	****	978
Investment result
Net investment income (loss)	****	5	****	854	****	3,513	****	121	****	4,493
Insurance / reinsurance finance income (expenses)	****	–	****	(887)	****	(3,156)	****	9	****	(4,034)
Other investment result	****	–	****	(25)	****	(61)	****	(25)	****	(111)
Total investment result	****	5	****	(58)	****	296	****	105	****	348
Other revenue	****	(3)	****	202	****	1,736	****	(127)	****	1,808
Other expenses	****	(12)	****	(275)	****	(1,243)	****	72	****	(1,458)
Interest expenses	****	(115)	****	4	****	(254)	****	(59)	****	(424)
Net income (loss) before income taxes	****	(125)	****	(14)	****	1,391	****	–	****	1,252
Income tax (expenses) recoveries	****	42	****	43	****	(365)	****	–	****	(280)
Net income (loss) after income taxes	****	(83)	****	29	****	1,026	****	–	****	972
Equity in net income (loss) of unconsolidated<br>subsidiaries	****	949	****	47	****	76	****	(1,072)	****	–
Net income (loss)	$	866	$	76	$	1,102	$	(1,072)	$	972
Net income (loss) attributed to:
Non-controlling interests	$	–	$	–	$	55	$	–	$	55
Participating policyholders	****	–	****	–	****	51	****	–	****	51
Shareholders and other equity holders	****	866	****	76	****	996	****	(1,072)	****	866
	$	866	$	76	$	1,102	$	(1,072)	$	972

Condensed Consolidated Statement of Income

For the three months ended March 31, 2023	MFC<br>(Guarantor)		JHUSA<br>(Issuer)		Other<br>subsidiaries		Consolidation<br>adjustments		Consolidated<br>MFC
Insurance service result
Insurance revenue	$	–	$	2,402	$	3,793	$	(432)	$	5,763
Insurance service expenses		–		(2,165)		(2,987)		370		(4,782)
Net expenses from reinsurance contracts held		–		(152)		(36)		56		(132)
Total insurance service result		–		85		770		(6)		849
Investment result
Net investment income (loss)		5		1,133		3,957		58		5,153
Insurance / reinsurance finance income (expenses)		–		(1,266)		(2,840)		6		(4,100)
Other investment result		–		(18)		(38)		(27)		(83)
Total investment result		5		(151)		1,079		37		970
Other revenue		(4)		208		1,606		(119)		1,691
Other expenses		(11)		(303)		(1,183)		73		(1,424)
Interest expenses		(102)		(31)		(249)		15		(367)
Net income (loss) before income taxes		(112)		(192)		2,023		–		1,719
Income tax (expenses) recoveries		38		79		(426)		–		(309)
Net income (loss) after income taxes		(74)		(113)		1,597		–		1,410
Equity in net income (loss) of unconsolidated subsidiaries		1,480		206		93		(1,779)		–
Net income (loss)	$	1,406	$	93	$	1,690	$	(1,779)	$	1,410
Net income (loss) attributed to:
Non-controlling interests	$	–	$	–	$	54	$	–	$	54
Participating policyholders		–		15		(68)		3		(50)
Shareholders and other equity holders		1,406		78		1,704		(1,782)		1,406
	$	1,406	$	93	$	1,690	$	(1,779)	$	1,410
Manulife Financial Corporation – First Quarter 2024	105
---	---

Consolidated Statement of Cash Flows

For the three months ended March 31, 2024	MFC<br><br><br>(Guarantor)		JHUSA<br><br><br>(Issuer)		Other<br><br><br>subsidiaries		Consolidation<br><br><br>adjustments		Consolidated<br><br><br>MFC
Operating activities
Net income (loss)	$	866	$	76	$	1,102	$	(1,072)	$	972
Adjustments:
Equity in net income of unconsolidated subsidiaries	****	(949)	****	(47)	****	(76)	****	1,072	****	–
Increase (decrease) in insurance contract net liabilities	****	–	****	103	****	901	****	–	****	1,004
Increase (decrease) in investment contract liabilities	****	–	****	10	****	101	****	–	****	111
(Increase) decrease in reinsurance contract assets,<br>excluding reinsurance transactions	****	–	****	(131)	****	(185)	****	–	****	(316)
Amortization of (premium) discount on invested assets	****	–	****	8	****	(69)	****	–	****	(61)
CSM amortization	****	–	****	(103)	****	(489)	****	–	****	(592)
Other amortization	****	3	****	34	****	109	****	–	****	146
Net realized and unrealized (gains) losses and impairment<br>on assets	****	(4)	****	397	****	(94)	****	–	****	299
Deferred income tax expenses (recoveries)	****	(42)	****	69	****	(25)	****	–	****	2
Loss on reinsurance transaction<br>(pre-tax)	****	–	****	33	****	85	****	–	****	118
Cash provided by (used in) operating activities before undernoted items	****	(126)	****	449	****	1,360	****	–	****	1,683
Dividends from unconsolidated subsidiaries	****	–	****	91	****	–	****	(91)	****	–
Changes in policy related and operating receivables and<br>payables	****	(29)	****	926	****	1,996	****	–	****	2,893
Cash provided by (used in)operating activities	****	(155)	****	1,466	****	3,356	****	(91)	****	4,576
Investing activities
Purchases and mortgage advances	****	–	****	(4,407)	****	(32,065)	****	–	****	(36,472)
Disposals and repayments	****	–	****	2,785	****	29,960	****	–	****	32,745
Changes in investment broker net receivables and payables	****	–	****	20	****	203	****	–	****	223
Investment in common shares of subsidiaries	****	(1,100)	****	–	****	–	****	1,100	****	–
Capital contribution to unconsolidated subsidiaries	****	–	****	(1)	****	–	****	1	****	–
Notes receivable from parent	****	–	****	–	****	(1,142)	****	1,142	****	–
Notes receivable from subsidiaries	****	(35)	****	–	****	–	****	35	****	–
Cash provided by (used in) investing activities	****	(1,135)	****	(1,603)	****	(3,044)	****	2,278	****	(3,504)
Financing activities
Change in repurchase agreements and securities sold but not yet purchased	****	–	****	–	****	(81)	****	–	****	(81)
Issue of capital instruments, net	****	1,094	****	–	****	–	****	–	****	1,094
Redemption of capital instruments	****	–	****	(609)	****	–	****	–	****	(609)
Secured borrowing from securitization transactions	****	–	****	–	****	131	****	–	****	131
Changes in deposits from Bank clients, net	****	–	****	–	****	244	****	–	****	244
Lease payments	****	–	****	(1)	****	(29)	****	–	****	(30)
Shareholders’ dividends and other equity distributions	****	(777)	****	–	****	–	****	–	****	(777)
Common shares repurchased	****	(203)	****	–	****	–	****	–	****	(203)
Common shares issued, net	****	35	****	–	****	1,100	****	(1,100)	****	35
Contributions from (distributions to) non-controlling interests,<br>net	****	–	****	–	****	1	****	–	****	1
Dividends paid to parent	****	–	****	–	****	(91)	****	91	****	–
Capital contributions by parent	****	–	****	–	****	1	****	(1)	****	–
Notes payable to parent	****	–	****	–	****	35	****	(35)	****	–
Notes payable to subsidiaries	****	1,142	****	–	****	–	****	(1,142)	****	–
Cash provided by (used in)financing activities	****	1,291	****	(610)	****	1,311	****	(2,187)	****	(195)
Cash and short-term securities
Increase (decrease) during the period	****	1	****	(747)	****	1,623	****	–	****	877
Effect of foreign exchange rate changes on cash and short-term securities	****	1	****	105	****	158	****	–	****	264
Balance, beginning of period	****	86	****	4,004	****	15,794	****	–	****	19,884
Balance, end ofperiod	****	88	****	3,362	****	17,575	****	–	****	21,025
Cash and short-term securities
Beginning of period
Gross cash and short-term securities	****	86	****	4,329	****	15,923	****	–	****	20,338
Net payments in transit, included in other liabilities	****	–	****	(325)	****	(129)	****	–	****	(454)
Net cash and short-termsecurities, beginning of period	****	86	****	4,004	****	15,794	****	–	****	19,884
End of period
Gross cash and short-term securities	****	88	****	3,716	****	17,677	****	–	****	21,481
Net payments in transit, included in other liabilities	****	–	****	(354)	****	(102)	****	–	****	(456)
Net cash and short-termsecurities, end of period	$	88	$	3,362	$	17,575	$	–	$	21,025
Supplemental disclosures on cash flow information:
Interest received	$	15	$	896	$	2,277	$	(64)	$	3,124
Interest paid	****	176	****	7	****	267	****	(64)	****	386
Income taxes paid (refund)	****	4	****	(3)	****	516	****	–	****	517
Manulife Financial Corporation – First Quarter 2024	106
---	---

Consolidated Statement of Cash Flows

For the three months ended March 31, 2023	MFC<br><br><br>(Guarantor)		JHUSA<br><br><br>(Issuer)		Other<br><br><br>subsidiaries		Consolidation<br><br><br>adjustments		Consolidated<br><br><br>MFC
Operating activities
Net income (loss)	$	1,406	$	93	$	1,690	$	(1,779)	$	1,410
Adjustments:
Equity in net income of unconsolidated subsidiaries		(1,480)		(206)		(93)		1,779		–
Increase (decrease) in insurance contract net liabilities		–		129		6,033		–		6,162
Increase (decrease) in investment contract liabilities		–		55		28		–		83
(Increase) decrease in reinsurance contract assets, excluding reinsurance transactions		–		17		339		–		356
Amortization of (premium) discount on invested assets		–		16		12		–		28
CSM amortization		–		(128)		(319)		–		(447)
Other amortization		2		35		101		–		138
Net realized and unrealized (gains) losses and impairment on assets		(4)		(7)		(1,852)		–		(1,863)
Deferred income tax expenses (recoveries)		(38)		(98)		253		–		117
Stock option expense		–		(1)		2		–		1
Cash provided by (used in) operating activities before undernoted items		(114)		(95)		6,194		–		5,985
Dividends from unconsolidated subsidiaries		–		85		–		(85)		–
Changes in policy related and operating receivables and payables		(29)		(437)		(2,564)		–		(3,030)
Cash provided by (used in)operating activities		(143)		(447)		3,630		(85)		2,955
Investing activities
Purchases and mortgage advances		–		(4,647)		(17,639)		–		(22,286)
Disposals and repayments		–		4,332		13,596		–		17,928
Changes in investment broker net receivables and payables		–		119		286		–		405
Investment in common shares of subsidiaries		(1,200)		–		–		1,200		–
Notes receivable from parent		–		–		(1,284)		1,284		–
Notes receivable from subsidiaries		(21)		–		–		21		–
Cash provided by (used in) investing activities		(1,221)		(196)		(5,041)		2,505		(3,953)
Financing activities
Change in repurchase agreements and securities sold but not yet purchased		–		–		152		–		152
Issue of capital instruments, net		1,194		–		–		–		1,194
Secured borrowing from securitization transactions		–		–		194		–		194
Changes in deposits from Bank clients, net		–		–		(686)		–		(686)
Lease payments		–		(1)		(10)		–		(11)
Shareholders’ dividends and other equity distributions		(723)		–		–		–		(723)
Common shares repurchased		(398)		–		–		–		(398)
Common shares issued, net		20		–		1,200		(1,200)		20
Dividends paid to parent		–		–		(85)		85		–
Notes payable to parent		–		–		21		(21)		–
Notes payable to subsidiaries		1,284		–		–		(1,284)		–
Cash provided by (used in)financing activities		1,377		(1)		786		(2,420)		(258)
Cash and short-term securities
Increase (decrease) during the period		13		(644)		(625)		–		(1,256)
Effect of foreign exchange rate changes on cash and short-term securities		–		(2)		13		–		11
Balance, beginning of period		63		2,215		16,357		–		18,635
Balance, end ofperiod		76		1,569		15,745		–		17,390
Cash and short-term securities
Beginning of period
Gross cash and short-term securities		63		2,614		16,476		–		19,153
Net payments in transit, included in other liabilities		–		(399)		(119)		–		(518)
Net cash and short-termsecurities, beginning of period		63		2,215		16,357		–		18,635
End of period
Gross cash and short-term securities		76		1,986		16,713		–		18,775
Net payments in transit, included in other liabilities		–		(417)		(968)		–		(1,385)
Net cash and short-termsecurities, end of period	$	76	$	1,569	$	15,745	$	–	$	17,390
Supplemental disclosures on cash flow information:
Interest received	$	16	$	553	$	2,117	$	(59)	$	2,627
Interest paid		146		13		229		(59)		329
Income taxes paid (refund)		1		(1)		131		–		131

Note 17 Comparatives

Certain comparative amounts have been reclassified to conform to the current period’s presentation.

Manulife Financial Corporation – First Quarter 2024	107

SHAREHOLDER INFORMATION

MANULIFE FINANCIAL CORPORATION

HEAD OFFICE

200 Bloor Street East

Toronto, ON Canada M4W 1E5

Telephone: 416 926-3000

Website: www.manulife.com

INVESTOR RELATIONS

Financial analysts, portfolio managers and other investors requiring financial information may contact our Investor Relations Department or access our website at www.manulife.com

Email: InvestRel@manulife.com

SHAREHOLDER SERVICES

For information or assistance regarding your share account, including dividends, changes of address or ownership, lost certificates, to eliminate duplicate mailings or to receive shareholder material electronically, please contact our Transfer Agents in Canada, the United States, Hong Kong or the Philippines. If you live outside one of these countries, please contact our Canadian Transfer Agent.

TRANSFER AGENTS

Canada

TSX Trust Company

301 – 100 Adelaide St. West

Toronto, ON Canada M5H 4H1

Toll Free: 1 800 783-9495

Collect: 416 682-3864

Email: manulifeinquiries@tmx.com

Website: www.tsxtrust.com

TSX Trust Company offices are also located in Toronto, Vancouver and Calgary.

United States

Equiniti Trust Company, LLC

P.O. Box 27756

Newark, NJ

United States 07101

Toll Free: 1 800 249-7702

Collect: 416 682-3864

Email: manulifeinquiries@tmx.com

Website: https://tsxtrust.com/manulife

Hong Kong

Tricor Investor Services Limited

17/F, Far East Finance Centre

16 Harcourt Road

Hong Kong

Telephone: 852 2980-1333

Email: is-enquiries@hk.tricorglobal.com

Website: www.tricoris.com

Philippines

RCBC Trust Company

Ground Floor, West Wing

GPL (Grepalife) Building

221 Senator Gil Puyat Avenue

Makati City, Metro Manila, Philippines

Telephone: 632 5318-8567

Email: rcbcstocktransfer@rcbc.com

Website: www.rcbc.com/stocktransfer

AUDITORS

Ernst & Young LLP

Chartered Professional Accountants

Licensed Public Accountants

Toronto, Canada

The following Manulife documents are available online at www.manulife.com

•	Annual Report and Proxy Circular
•	Notice of Annual Meeting
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•	Shareholders Reports
---	---
•	Public Accountability Statement
---	---
•	2023 Sustainability Report
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Rating

Financial strength is a key factor in generating new business, maintaining and expanding distribution relations and providing a base for expansion, acquisitions and growth. As at March 31, 2024, Manulife had total capital of C$76.4 billion, including C$48.3 billion of total shareholders’ and other equity. The Manufacturers Life Insurance Company’s financial strength ratings are among the strongest in the insurance industry. Rating agencies include AM Best Company (“AM Best”), DBRS Limited and affiliated entities (“Morningstar DBRS”), Fitch Ratings Inc. (“Fitch”), Moody’s Investors Service Inc. (“Moody’s”), and S&P Global Ratings (“S&P”).

Rating Agency	MLI Rating	Rank
S&P	AA-	(4^th^ of 21 ratings)
Moody’s	A1	(5^th^ of 21 ratings)
Fitch	AA-	(4^th^ of 21 ratings)
Morningstar<br>DBRS	AA	(3^rd^ of 22 ratings)
AM Best	A+ (Superior)	(2^nd^ of 13 ratings)

Common Stock Trading Data

The following values are the high, low and close prices, including the average daily trading volume for Manulife Financial Corporation’s common stock on the Canadian exchanges, the U.S. exchanges, The Stock Exchange of Hong Kong and the Philippine Stock Exchange for the first quarter. The common stock symbol is MFC on all exchanges except Hong Kong where it is 945.

As at March 31, 2024, there were 1,801 million common shares outstanding.

January 1 –<br><br><br>March 31,<br> <br>2024	Canada<br><br><br>Canadian $	U.S.<br><br><br>United States $	Hong Kong<br><br><br>Hong Kong $	Philippines<br><br><br>Philippine<br> <br>Pesos
High	$ 33.83	$ 24.99	$ 191.70	P 1,300
Low	$ 28.34	$ 21.00	$ 163.30	P 1,001
Close	$ 33.83	$ 24.99	$ 190.50	P 1,250
Average Daily<br>Volume (000)	9,611	3,436	20	0.3
Manulife Financial Corporation – First Quarter 2024	108
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Electronic documents available from Manulife.

Manulife is pleased to offer Electronic Documents. Access the information when you want, no more waiting for the mail.

The Manulife documents available electronically are:

•	Annual Report and Proxy Circular
•	Notice of Annual Meeting
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•	Shareholder Reports
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These documents will be available to you on our website www.manulife.com at the same time as they are mailed to other shareholders. Documents relating to the annual meeting, including annual reports, will be available on the website at least until the next version is available.

We will notify you when documents will be available on the website and confirm the instructions for accessing the documents at the same time. In the event that the documents are not available on our website, paper copies will be mailed to you.

This information is also available for viewing or downloading under quarterly reports from the Investor Relations section of our website at www.manulife.com

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To receive documents electronically when they are available through Manulife’s electronic delivery service, complete this form and return it as indicated.

I have read and understand the statement on the reverse and consent to receive electronically the Manulife documents listed in the manner described. I acknowledge that I have the computer requirements to access the documents that are made available on Manulife’s website. I understand that I am not required to consent to electronic delivery and that I may revoke my consent at any time.

Please note: We will contact you by phone only if there is a problem with your email address.

The information provided is confidential and will not be used for any purpose other than that described.

Please Print:
Shareholder Name
Contact Phone Number
Shareholder Email Address
Shareholder Signature
Date
Manulife Financial Corporation – First Quarter 2024	109
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LOGO

manulife.com

Manulife, Manulife & Stylized M Design, and Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates, including Manulife Financial Corporation, under license.

EX-99.2

Exhibit 99.2

Form 52-109F2

Certification of Interim Filings

FullCertificate

I, Roy Gori, President and Chief Executive Officer of Manulife Financial Corporation, certify the following:

1.	Review: I have reviewed the interim financial report and interim MD&A (together, the “interim<br>filings”) of Manulife Financial Corporation (the “issuer”) for the interim period ended March 31, 2024.
2.	No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not<br>contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered<br>by the interim filings.
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3.	Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report<br>together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the<br>interim filings.
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4.	Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and<br>maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure inIssuer’s Annual and Interim Filings, for the issuer.
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5.	Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other<br>certifying officer(s) and I have, as at the end of the period covered by the interim filings
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(a)	designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that<br>
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(i)	material information relating to the issuer is made known to us by others, particularly during the period in which the<br>interim filings are being prepared; and
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(ii)	information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or<br>submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
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(b)	designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the<br>reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
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5.1	Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the<br>issuer’s ICFR is Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
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5.2	N/A
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5.3	N/A
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6.	Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR<br>that occurred during the period beginning on January 1, 2024 and ended on March 31, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
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Date: May 8, 2024

/s/ Roy Gori
Roy Gori
President and Chief Executive Officer

EX-99.3

Exhibit 99.3

Form 52-109F2

Certification of Interim Filings

FullCertificate

I, Colin Simpson, Chief Financial Officer of Manulife Financial Corporation, certify the following:

1.	Review: I have reviewed the interim financial report and interim MD&A (together, the “interim<br>filings”) of Manulife Financial Corporation (the “issuer”) for the interim period ended March 31, 2024.
2.	No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not<br>contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered<br>by the interim filings.
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3.	Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report<br>together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the<br>interim filings.
---	---
4.	Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and<br>maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure inIssuer’s Annual and Interim Filings, for the issuer.
---	---
5.	Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other<br>certifying officer(s) and I have, as at the end of the period covered by the interim filings
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(a)	designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that<br>
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(i)	material information relating to the issuer is made known to us by others, particularly during the period in which the<br>interim filings are being prepared; and
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(ii)	information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or<br>submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
---	---
(b)	designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the<br>reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
---	---
5.1	Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the<br>issuer’s ICFR is Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
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5.2	N/A
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5.3	N/A
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6.	Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR<br>that occurred during the period beginning on January 1, 2024 and ended on March 31, 2024 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
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Date: May 8, 2024

/s/ Colin Simpson
Colin Simpson
Chief Financial Officer

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