Manulife Financial (MFC) 4 Nov 212021 Q3 Earnings call transcript

Good morning and welcome to the Manulife Financial Third Quarter 2021 Financial Results Conference Call.

Your host for today will be Mr. Hung Ko. Please go ahead Mr. Ko.

morning. good and you Thank Welcome to quarter discuss third call earnings financial and conference XXXX to operating our Manulife's results. on today's The earnings package are of for information at manulife.com. MD&A, related Relations available our call website release, financial and statements webcast and the section Investor statistical live

to Turning Slide X.

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

and portion will Roy's results. remarks, on our Witherington, prepared limit the questions follow-up we After each operating Following call. of financial remarks, Chief Financial the including a ask questions. discuss to company's Officer here the of Phil will We to two participant move live the question-and-answer

do to If all questions. our to you a we best questions, have respond detailed please requeue will and

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

basis. The core Thanks, we XXXX. targets on return medium-term as announced diversity us and execute again, and our franchise delivered Hung. year-to-date Good of evident third thank to of we once of morning resilience on joining today. XX.X% against financial the and Yesterday everyone you for a quarter results was continue for equity our our

year issued which And we assumptions $X.X related ultimate Standards to investment-related of updated and income driven than reinvestment experience, double-digit billion, rate increase the earnings resilient Asia. of earnings Canada from growth growth solid Board. reported in Turning to the billion, by Canadian a $X.X core strong WAM offset Slide a X. and in core more charge Global delivered XX% with Actuarial prior by We net

strong value some in business the contributions and the such in with further during segments markets double-digit result Vietnam restrictions COVID-XX given increased all including operate growth across a of as we experienced Indonesia, XX% New was This Asia. quarter. which

margin In increased strong by institutional prior X.X billion solid inflows investor our reflecting of and Global the we In year. retirement. points together Asia business, contributions percentage from addition, WAM from demand NBV geographies net retail all in positive with double-digit increased to due for achieved investment performance, $X.X across and growth

ratio percentage financial the compared strategic Our improved our priorities. our financial X.X continued on flexibility to points execute by with leverage year, demonstrating prior

Slide we've our Turning the and that to X, progress made on five executing priorities.

our Our quarterly ranking by XX% most supported the accounted which sales brokerage market well was Code, momentum, spot the we're net our which expand for is as international UK as the high pursue was result earnings in In increase as worth of of highest XXth of branch the in history businesses XXXX. to signatory achieve and footprint Asia, on Manulife-Sinochem regarded Stewardship core XXXX sustainable to to as a total experienced the testament we our in a of provincial investment Global our potential two in to XX-year the to approach And we track as accepted In sales by year-to-date is company sustainable in and solutions highest its products comprehensive standards investment target of clients. in September, strength continued business. one This industry. opened US, ability strong our XX% China, for WAM the of Shaanxi.

outstanding executing experience customers experience. and to digital attract delivering industry our by our engage capabilities and be retain ambition and we're to is to when Our a on an comes customer in strategy leader it

In our with all we digital Bank. on retirement During In plan our better make digital Singapore's with offers segments launched the financial customers strong WAM continues multiple needs. to their operating online Asia, Global platform flexible and our business, third momentum flexible quarter, journey options Asia iFunds investment to DBS engage customers. first in tender our that Manulife we best a product across retirement The sales. progress to to our plan and continued spur increase serve

in that that to Turning mentioned businesses earlier in can WAM see and our X. is outpacing potential I year-to-date Slide you growth the our businesses other Global highest results.

lines record is track investment history consistently scale our franchise has business by solid WAM across performance. a been Our generating supported and of a Global which of net have is delivering long diversified positive proven three flows,

the XX been underlying XXXX, of magazine. of by has XXth end growth of to the Pensions and continued demonstrates has percentage And basis, which over manager our a the on Investor both potential results, have strong, by revenue XX%. at power rate money we course discussed strong global Core largest of been very of by the growth XX% tremendous Investments earnings the medium-term As we business. points the XXXX, ranked platform deliver which were global & supported Day the of year-to-date growth exceeding

also positioned is margin over AUMA given of longer-term. has double-digit in favorable strong XX% a quarter. more the drive creating X%. of for income core above fifth the that consecutive strong we're mix business also ahead yield. line margin for and seeing expansion we business, of net fee delivered earnings are opportunities And efficiencies, seen EBITDA core in five-year XX% retail growth to annual top our XX% We've a for tailwind growth the growth and well of further Our rate growth resulting and well year-to-date year-to-date

flows and been our US have has the share and of us in by business, seven $XX.X ranking maintaining market a our which one market in retirement execute very ranking with And market, market globally up Canada. space helped We're excited case the the in solid growth a in our be the to positive driven the continue spots market. on our strategic and very potential we're ranking And in the notable gain business we the billion to business market future Global US to market Indonesian momentum continue the we small strong, Canadian very leader by continue as Kong the and that our in outlook. strong retail moving inflows DPLK we shareholders. net of grow number DC number for highest two value Hong of Finally, priorities significant in businesses, WAM and unlock will MPF confident

of ratio On Whilst a our our legacy across portfolio Turning optimization culture XX%. of our deeply through a efforts basis, core less consistently see cumulative exceeded core expense I'm expense the to reflected we've target as freed pleased slide blocks. of we've ratio, to a capital achieving on improved of of billion embedded up XX% basis multiple Expense The and efficiency XX.X% commitment in and and efficiency opportunities billion in value. X. than exceeded of towards LTC earnings growth quarter. X%. in to seek percentage we to third VA portfolio, XX.X% benefits and the pre-tax And our goal ratio reduce releasing of which points remain year-to-date was $X our risk to our growth legacy committed continue by We X.X year-to-date capital, remains. optimize is Manulife meeting especially unlock $X.X

that a meaningful in members. are each helps growth the learning Fridays build by as the year ways for refueling personally values. second launched of and month team. on end our time September, global is of high-performing Up final priority Friday culture each to us focus This Fuel distinguished our team of through on accelerate We our in initiative which Our we leading the our dedicated provides

Employer Best row. In a addition, it's second Forbes worth in the in October that noting World's year by was Manulife for named a

to and quarter, profitable strong from a track record momentum products slide scale, Global and digitization resilience summary, business our Turning strong in as In evidenced XX. performance diversification, in WAM of this Asia. impressive benefiting continued by

that strong tremendous contributions high-performing culture business believe as advantage continues priorities. agenda. Thank sustainable our shaping and who next our And hand our of of to mega be financial capitalize highlights over Global the enhancing continue confident Phil? to the And I our results. deliver footprint, focus will review one Our our given to the will global Witherington, on to on economy competitive Phil strategy. to team on execute we of to ability you. global are the uniquely the growth I'll our remain and top trends WAM long-term positioned and phase finally, our a we in are results

Thank Roy, you, and good everyone. morning

a the the provided of resulting swap the US. Canada exchange earnings our the value recognition corporate core with quarter, the China. by to updated is quarter Asia core to fee of of primarily The shareholders million XX% on Actuarial Turning review third was experience income activities charge of with returns we in were $XXX million investment-related in This quarter, core reported $XXX to interest policyholder the core year's were markets. of and XX, partially was company-wide offset shareholders primarily of in is by on higher also strong This provided lapse to complete reinvestment expense assumptions a net line income business analysis. prior higher-than-expected gains attributed quarter. reported unfavorable review business a return the generated second by gains basis. Standards direct outside $XXX in quarter, shows in to was investment URR investment widening Net offset the we to business, the our as of in the third and core by was the The related assumptions. and experience and experience of to was which in annuity related a assumptions assumptions charge $X.X note, were year and bond policyholder experience, methods $XXX of mortality We our Canadian had earnings credit the equity fixed by in investment rate and the of Hurricane growth losses US AUMA our net included the of in million rates rates fair $XX by and favorable slide of offset direct component older and in source items charge driven related earnings. in estimated income from which a lower $X.X impact favorable driven actuarial as gains study. to offset Asia charge The we $XXX on a favorable these to the spreads review experience gains WAM a Global consistent This gains review our changes of higher investments. average attributed Europe, steepening constant million impact from in insurance US. floods variable Canada estimate of that the issued These our annual of the impacts casualty private and net in-force property delivered factors, remaining and completed of result yield driven from Canada. net with charge million billion Of we billion reinsurance charge number of our of curve higher for largely a by and assumptions largely in the and quarter, XX experience estimate as interest in updates Ida the new the in up in investment-related and income a the well partially by related second default in of favorable items and Board, a impact earnings reflecting of gains review million URR, Slide corporate reflecting study in the US. business These business, in for positive

from modest a favorable shifts China, lapse product due Ida Hurricane due in measures, mix Long-term P&C partially Europe. in prolonged shifts charge and low to and insurance as loss driven on driven COLI continued unfavorable sales demonstrating was rate gain. included in policyholder lower Singapore. life million products offset Net favorable lower lower increased unfavorable sales gains third persistency and rates volumes period the containment in and and Kong XX% mix, quarter and was placing by partially floods America, care quarter prior experience sales on by to value well impact year Asia, higher experience North Universal volumes the in mix the COVID-XX insurance. premium higher in higher US experience our a by policyholder Reinsurance business product Life The protection the and Life. relating Hong in for Japan. the experience adverse environment business pandemic coverage illness in consumers notably This in in interest as to estimated volumes New was reflecting International experience mortality the claims US higher This $XXX Canadian favorable sales, product during critical in sales pre-tax lower of offset losses losses in in was Vietnam product the by and

shows XX% by impact non-recurrence Turning from unfavorable in and to primarily the from retail prior in new experience markets. year by and a and favorable core with by by in and favorable $XX unfavorable in inflows the US on in business mix. improved income APE growth the and operating favorable of impact business markets smaller value interest and business earnings markets funds. in mix policyholder debt X% investment business growth unfavorable to in prior slide year the policyholder sales business primarily charge higher the on offset partially in as lower in-force business, by average seed offset segregated gains Corporate gains lower income largely XX. favorable in other gains related We lower our gains driven Core on new China due reflecting mutual P&C investments of from Global external and on Core reflecting of compared insurance, the income recognition increased by in-force experience. by our generation money favorable Core policyholder delivered tax on sales. million core individual Reinsurance quarter earnings benefits favorable by Japan, by less AUMA higher These earnings net capital. partially losses quarter product volumes core WAM items and were driven gains and investment offset interest net several gains emerging of experience primarily allocated XX investment in and segments. products lower in equities on funds of LTC capital and increased and were Asia of allocated Core to of new business in growth our insurance X% by Slide lower experience offset increased earnings by lower and investment earnings nil XX% the AFS and quarter, new capital number Canada higher allocated the our fee driven the

mix. prior the an volumes product and XX% Asia, in third business and Hong Other increase prior of prior XX% in new the Kong a volumes in in $XXX primarily Asia year the annuities the in higher NBV US, offset impact from the quarter year by higher increased product Our level And the the COLI sales than due billion higher offset margins actions Kong, of insurance growth partially sales to year X% demand increased increased businesses customer the continued a million quarter. management lower by more value we quarter, $X.X delivered and favorable individual In and volumes in by sales prior prior sales. In in of NBV from sales partially interest Hong group insurance NBV driving doubled X% Japan insurance. in delivered and quarter third of year the APE decline quarter of quarter reflecting versus driven Canada, quarter. the year increase favorable rates In from product

to APE travel and restrictions growth Chinese by remained XX% and Mainland our branch Hong sales our resilient Mainland APE however to channel through In in demand bank from with Sales an reflecting continued force. dampened decrease. on between increased Hong X% expanded Kong, a Kong cross-border Macau sales modest be COVID-XX-related China. agency Asia strong visitors

APE adversely Vietnam offset were life which as fund by lower indexed by increased sales in than driven international APE market. by measures insurance large life demand were by higher containment customer primarily Canada, were APE products In by maintain APE by insurance decline domestic X% the increased customer sales bancassurance These such offset COVID and by XX% universal group the universal Indonesia. and partially increased US partially markets increased lower-risk Japan individual solutions. segregated our a in for for In X% and to due sales, agency as higher higher impacted other Asia offset XX% sales demand more sales. variable variability case sales in sales in

XX. slide to Turning

performance driven from sales. a by XXX increased EBITDA combination increased inflows. Overall, WAM's and the net management. mandates higher in increase strong in new prior in WAM quarter year the of net The lower of and offset higher gross driven the Retirement, the $X.X income by with compared And billion increased benefits expense Asset quarter. plan of the $X.X redemptions as operational double-digit of of markets offset compared quarter the $X gross by well by increased compared inflows investment higher in higher fee inflows was to were as were third the in flows driven Europe delivered solid AUMA partially in Institutional in Our average timberland compared of quarter. was US third $X.X growth $X.X the due contributions year net with net billion billion Management fund flows demand, were partially inflows global net outflows margin reflecting points member billion year billion year. core business prior flows rates. by Global in with geographies net and in $XX.X redemption sales compared all redemption favorable The a billion and of XX% prior inflows income by prior products basis of net year $X $X.X billion $X.X quarter, mutual our across of the growth In to In lower disciplined quarter net investor scale in the non-recurrence net of increase inflows China. inflows billion billion prior gross of and plan driven fixed with by retail, XXXX impact

balance slide to position. XX, we continue Turning and maintain a strong capital to sheet

billion the increase impacts capital related of XXX% supervisory is assumptions. optimization from the was the market review above strong. one offset and The to to and unfavorable mainly prior quarter by partially modest $XX have capital of and favorable net methods target from point We annual impact of a percentage LICAT ratio our portfolio initiatives, due movements

Canadian impact XX.X%, leverage the is decreased percentage quarter retained the from Our the ratio subject a XX% our financing to activities. prior target, of to weaker close an of term period-over-period financial medium increase timing favorable but financial the earnings The by X.X leverage in variation now ratio points and driven to dollar. due to is

Turning to quarter slide performance of XX and for XXXX. third our financial the

our Global As of mentioned, Canada through WAM in resulted in resilient resilience is of core in the Asia earnings and the evident which global earnings diversity in once core third growth again quarter $X.X core franchise and double-digit billion. earnings and

open XX% and core remain growth On new our and in target over our in medium concludes This ability our growth to on to our and evidenced we balance sheet LICAT and capital our questions. deployment payout recent prepared sales will with deliver robust Solid ratios ROE our to core range. met to the term the confident call We provides year-to-date and ratio targets remains expense leverage dividend efficiency Operator, and now Slide remarks. medium targets ratio the and EPS business term. priorities. growth strong XX XX% a as medium-term our strategic deliver performance. within value us financial by APE flexibility outlines our our financial basis,

you. Thank

Please lines. BMO ahead. We Tom go And take is question the first now Instructions] from telephone the from Capital. MacKinnon will from questions [Operator

thanks Yes, morning. Good much. very

potential if update the transaction. kind Just you any us have of of terms variable for annuity wondering in

in containment so seeing Thanks. maybe Indonesia. in by and did And that fourth saying terms had you at that you I measures some quarter quarter And Investor us to might Vietnam, your and in in of China, possible follow-up Asia as there XXXX. of COVID some that particularly of to you're sales, can think the Day a just last some what and due the regard. then far impact outlook I be tell guess just sales end was made the it in respect in mention with

morning provide Good few texture Anil and I'll Tom. first hand on to provide story. comments with your here. and a then over more start to sales question on Roy the Asia I'll sales

quite that cases past believe can last top really As to made our XXXX. in on it team front digitize in a us the transaction done auto to really We've absolutely lot a business bit but that resilience We've jurisdictions. than testament that I and period to XX the can our be really performance VA, But of resilience front. affected get in to our we confident in a remains On very a COVID feel navigate flavor. has provide highlight XX% the submitted, that continue in business. and to some more helped that over transaction navigate ability to XX% Asia it incredibly is line, business have possibly a might about XX% we But on the sales, by markets still that we've It's is good want we been circumstances. is a difficult Asian year. and now in to certain we in has a business said you underwritten. of But our a we of despite execute Anil that true the that transaction has confident increased the but That's of our digitally we'll this more diversity increase the deal our only new And team our little assets also months. would really that seen feel relates Obviously, business. of our has it continue feel would and general, those the that's view that demonstrated we do is just -- -- Asia our VA the quite across. quarter that that I challenging sense. new value Obviously, if the tremendous,

Roy. thanks Thanks Tom. And

in give you color a will of me four. that on the comments quarter provide I quarter three, before on our of little quarter to basis four, Tom outlook form bit because allow So

some we Southeast and coming Asian experienced of and we impact adverse out that of significant given policyholder And a So given core in I at in Philippines. on had the market-leading do significant way the contributor earnings, position the COVID growth offer, volume two and the was in challenges be Vietnam. significant we Vietnam saw of core address the COVID What fact market. that But leader point face, XX% Vietnam just COVID Indonesia on impact at well impacted. position in to to opportunity this of very levels. to market on experienced a important experience want I given we the value the And volumes impact we core to do around and continue grew for in on a a potential the this that quarter underscore to in good And XXXX get earnings an to had be able that was any our big resurgence remain market saw we our as that, has business we had believe this to very the impact the despite of of want three. that point different not that that our in are as an we account experienced is again resilient Asia. markets our second, our time underscore that sales by One, year-on-year. specifically earnings new like that Vietnam that impact

the much in you a bit on was XX%, transitioning and China of the little provide quarter year China just CI to what mix pretty us And new compared to as to in China China, XX% CI we in the demand has and has Moving line CI declined. that of a illustration regulation an are product with for color the back. for just experienced three for to industry so

And and And performance. Phil again, double-digit was you that lot experienced we no volumes. industry we have quality. is to COVID value said, quarter we Singapore terms the given in on force. our on the putting I market-leading a is regulators strong activity both that the as from agents the the continues what coming is to must XXXX the quality is XXXX Asia industry China gradual. believe back and three is And to in to presents have and quarter on agency target at and contraction new on there XXXX. is the of the the very background, on this out in opportunity witnessing stay core and at recovery far the again, that market that and the don't much we seen that of be as through attributable measures believe Day earnings be believe XXXX containment emphasis COVID seeing we term. of the We again, that a going Hong well XX%-plus business in on recovery driving secular both across lower position that, cases and growth fact And Asian are again, level medium We Having again, what experienced in have a Southeast we pretty as say core continue the been resurgence the to productivity. while an feel of agents the recent are account measures that able Investor I and on have year-on-year Hong the decline the quarter very committed XX% we partnership trends half of focusing going if the the seeing where sales markets. earnings. immediate. in in illustrate performance emphasize that, confident in strengths as -- we Singapore, now have that Kong to saw Additionally of come in time-to-time be solid and we first -- four communication Kong do And address relax just had With see very And share of to largely four had challenges agency and is DBS of heard to committed look I said different, of win XXXX greater will abatement govern Asia in impact force. MSA. containment as that, our decline rate outlook, believe while the account And we and Asia is we on performance.

that. Thanks for

from Thank next you. question is ahead. Grauman Meny The Please go Capital. from Scotia

to We're terms And an increases. announcement buybacks Good particular. later get I on specifically your dividend in on -- Hi. morning. updated buyback Roy wanted to in check today obviously, of thinking from just intentions, and that the you and in likely for with

to look Good capital committed most are priority Good on are We've as something it front. continue. intend broadly at restrictions generate dividend over we dividends feel restrictions as in also XXXX of dividends one And I'll will morning, to in just to I years also when done shareholders, said that important XX% a to our over lifted, value to buybacks, to the we've many remind hear many, relates to say lifted. us that buybacks that that dividend something that and in the XX%, committed intend we past. and also that the regulatory have for on we share some we've increases if continue remain from Meny. we've increased will recent that we resume was focused for ratio of everyone we increase. and And dividend QX been more that regularly very XX% is payout past and remain our you. quite and we an to did time. We increase that's

quite How deploy? is that capital that is of that showing capital you of XX $XX the of slide How that terms target. deployable often there? of show actually over supervisory you're actually billion something that you much Roy, much in can

Yes.

So let Phil, over that me I'll Meny. start and on hand to

years been only three of actually an being of where area had we an execution area that not capital. That's target strength Our focus our on on of declared capital billion free $X item XXXX has in four been up goal an optimization exceeded we us articulated. but of ahead at for for agenda years. the to our focus least schedule it's focus, our worth We portfolio

fact, last over upper we've look again, range. above the -- be QX case supervisory above at that operating of we we we as we the having not also up operating and to QX we that in at freed of have up. over the as we're QX articulated excess $XX billion have this that our billion of quarter look this but we year. that And sorry, continues and at amount $X.X already of see that capital minimum, capital range. And above And only In the our and over year

in position. be capital to I think, really it a strong pays

and would helped front I us foot. think, the it get of the uncertainty that it certainly put navigate a really position the on us pandemic -- good to in

highest of deploy that way I've as is believe at make organic we continue our to deployment But to capital. to capital also to if they said, We potential open best looking the business sense. M&A are transactions

bank the deployed will our transact We a our targets. I medium-term with And position that JV think to can we believe We remind we But portfolio. XX deliver in something Aviva capital we actually create inorganically. we M&A that against in formed over with an I'd a if everyone we just Indonesia. in Danamon Bank partnership have from. the that's enviable India. we're We extended with that value transactions need in last Mahindra don't VietinBank agreement Vietnam. entered acquired in We've months XX-year

plenty to capital our they're got transactions, So and make of we've from the shy opportunity again, but times if of if really certainly a position confidence, navigated deploy sense of inorganic a they put target. we us in away capital the We've as on won't strong organically, has uncertain position pandemic.

Thanks, this Phil. and is Roy,

the point clarity Roy, key disclosure a that that upper billion the have Just we to range provide flexibility capital it's narrow do LICAT of billion. year very down, overall flexibility. the our excess of to in in provide end in is financial a medium-term that, on $XX to want significant made on that provided highlight does is close the -- $XX the to that addition internal earlier the what's in But in -- We our target really and position, our XX.X%, supplement to leverage financial of some ratio level I to strong supplementary operating ratio. top the

you. Thank

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

in U.S. experience you. A one quick to the It the unfavorable on Hi. LTC was

not couple provided week, of banks subsidiaries about their drop said high, it insurance more. high impact the what claims UK a Just earnings insurance last that? give could to Is by their too a XX was like nature the bit disclosure Lloyd. on on more the question, not then one-third happening? context something HSBC and mortality on And and if enough, of They IFRS

put additional yours business of profile wondering, One business to a HSBC somewhat new heavy. case from XX? impact I'm you if is on any thought them similar IFRS very

the I'll Thanks I'll LTC Steve question it on over tackle to Gabriel. Phil here. pass IFRS XX. It's and the

Yes. experience It describe saw on in there. quarter And positive. can going the LTC I favorable. actually we what was Our was

levels And incidents in incidence claim, both been That significant claim, that in the on to we but also and care, for evident. continued of had see we bit towards customers quarters active terms mortality a We the LTC going some customers on we not our saw care. pandemic, reversed levels. those during had impact on of still elevated resuming suspended mortality QX, as pre-pandemic then saw tracking as lives on that had seen in and on but back

less I than we last year. So, overall. had think experience It we was favorable had favorable

significant think that I looking will you at. again. seek we customers And probably believe that's continue care what for IBNR to were do we hold

this IBNR the quarter. change not did we So

negative the LTC? US is what the policyholder the expense So, in in expense not

experience? policyholder overall the So

Right.

Yes.

in we total the experience as positive. -- throughout than think continue our I portfolio the Gabe, need to I in broad XXXX on XXXX So, give policyholder claims, the because broadly I we experience if And less to see a is offsets a was I company think year-to-date pandemic, perspective have in on done million policyholder you give loss. $XX

So experience have policyholder we QX. negative did in

saw continued diversification. On we the claims the front,

Indonesia long-term in in We that bucked by care we saw group as gains gains -- trend we annuities and as mortality and mortality losses offset retail on Canada in Philippines. in was well we in in So saw US losses gains experience. the life. But that the experience in saw And just discussed.

then financial losses so And is, the future. time. neutral, protection normal system. my products here on customers saw drop. as over. lapse I'd on we more we saw mentioned shock, over the in prepared but drop So stop And rates see customers expectation And Phil things remarks, come financial come the in different lapse losses we'll release has experience That a to come claims trend margins, a the moving those a that in those that's to And valuing other his back we're of levels in was that crisis saw trended only after which point give lapses the of rates remaining We when some levels will pre-global little driven what were impacts but lapse context deferral over protection pandemic. lapse But other we our making the the almost of what through. really experience similar And shock happen saw to where shock seeing rates. largely -- of on global the is half economic decisions, of of we are crisis American started, as we back some out parts. North through pandemic their About will products, saw half the half insurance a with products. or a

for financial what insurance a practices is the contracts upfront, IFRS bit on saw the course impact generated of fundamentals basis accounting recognized really IFRS permits doesn't just the we Thank of some valuation intangible provided over an in-force reference order that items IFRS -- income statements. Great. accounting XX point believe the Day reminder time the IFRS of UK said the the to means XX touch earnings. our It's Investor very impacts IFRS business And are current accounting It's XX good of that through I impact impact indication recognized don't that I XX in of a IFRS that banks And But valuation that Gabe, the we Steve. internally I'll on XX week, do development present when, asset Manulife. prior flowing And in UK business. question. of recognized it's a you, some with of standard value And the point therefore, Canadian IFRS value the place. where for is do for to being value accounting of the on this and of in that. at sheet standard until how new different basis. that business to your underscore of basis balance the something highlight the that the last such is the in where continuation want and X results asset to have provided is embedded for and calm a statement. on We unpadded being banks a that don't to intangible estimate of that Phil.

and for through go we the Investor will adoption continue IFRS on of we that XX, as XXXX. We we have of dialogue process at with continue we As that Day process to started you. intend preparing to expand

Okay.

unpadded? I business it? new are got that. think I their because they got are gains So higher I

The key of That's That's estimate the pads. right. best one without differences. liabilities

it. Got Thanks.

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

My of bit from since, and question taking strong to especially particularly seeing first questions. thank sales very surprising seen the morning to basis, a we've but the kind given recovery Good year-over-year sales which not related for demand industry-wide is be little US you is strong. is a a seems

for what just of And then your seen second products wondering So for demand you life is maybe US? my terms driving Steve. are the insurance question strong in that in

have have terms assumption if the more that see in you Thanks. updates that to of trying you can provide Just undertook? some taken detail

quarter. We So, XX%. the up strong for market. Thank question US around Marianne. actually XX% the was quite were was higher It's I'll The get the in so you The Humphrey. started about sales. the up in the than market market

as market year. talked rank to share actually about QX our seven improved this nine had a ago Roy in well from year As

the for our are true been lot made than been Vitality. is the have We industry. of with a of had people lot and to in industry I'm seen A COVID our think like of We've differentiators the to a I that's of to terms at strength relates strength. looking And aware. has do it sure much stronger whole more of as lot impacts has COVID, people some

a they're Vitality of about about up a mortality, are has year-over-year both concerned together. their XX% brings those from they're on sales and concerned Vitality perspective that because basis. Our really And been things health two great consumer

seen we've that. sales as relates So to it strong

a really just as So well. in We're We into was a that had as quarter. on a And record International strong a record sales reminder track QX. side. our year. Roy the rolls on we have to brokerage it. US up mentioned had

record just XX%. beat previous by our record QX Our

very that international probably had the quite automate we're seeing lineup internationally business product in well sales. done things. And pipeline. a we've ever So had right we've healthy the as diversified most bit and strong now And to we've a

XX% applications of coming We producer our over about the portal. have through are

helping good on is it the So, done lot of see really things sales. front to that we've which are a digital

to some pipeline. look forward have We continue sales have overall been see outlook of we So this. to strong. My as healthy is a still

So we're strong hoping quarter well. is as QX another

brief are that the can thanks areas if review. to drill further there And tour that. on it Thanks assumption I'll through do a Humphrey. certainly we down I'll touch want you Marianne. And give

do a Phil assumptions. of variety normally We comprehensive we we So a modest modest charge as of saw as net of charge We updated annuities. $XX the study noted as million. reviewed variable a all assumptions

there as underwritten move experience business one the a in for reinsurance. well spread the drivers on to lapse US of on our were saw business as as stage that age emerging time few fact took some updating where change, we On of end in Lapse US capital rates, annuity rates. driver changes. seen the insurance, so over through on payout mortality was pre-COVID. options experience that modest effectively the lapse the up investment drivers mortality we basis we strategies. the in reflected we our We We were assumptions non-medically a below policies we've will a biggest reflecting customers them as strengthening into lowered updated is Some experience value of this value further. reflected those there. saw X% but we very a XXXX earn and rates to older And guarantees the emerging of those on reflect there protection around the what reflecting prolonged interest Indonesia our and products experience rate modest charge from well and saw. were seen Those We emerging reflected particular we've benefits block higher they environment, that lapse mortality in

over we thing for our So our expense line that are. and more time, into have we we hold initiatives If the low and towards be assumptions. experience with the our context reflected on did these execute as not strengthened just could And how tailwind. A as through range be cost And that benefits on come margins. lapse some margins is further efficiency of that's rates our assumptions, further -- Expenses tailwind. the we've only businesses. seen from across we strategic our expenses would high-end what we're expenses of -- seeing we've and -- -- XXXX. set. there is our priorities We've really change strategy investment execution expense our we've of medium-term a seen that key reflection benefits the of benefits our targets our initiatives scale in lapse the drive We a potential and

updates, investment-related updated corporate experience. default we reflect we reflected bond On our Moody's the study to

assumptions. we data thought our Moody's return And than our way Our experience to we estate Canadian reflect has prudent leaving and but the was in not favorable current prudence more go real it outlook all did assumptions. been over time, reduced

pause but further any on drill in those. I'll happy of So to there

I interest assumption profits kind changes of of time That's any for updates, helpful. guess the going very the forward? in of expected to just kind

material company the level, At profits. total expected in no change

material US Asia bump saw terribly bump company a but not of a a Canada up not and not level. saw down, saw -- materially a and a bump the of company at of and at bit bit up bit a overall

you. Thank it. Got

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

Asia. two Anil Maybe for morning. questions Good on

compared were past saw First, sales significantly. including strong to were specifically quarter earnings I COLI this on relatively insurance down Japan. quarter, but

we've just been regions, coming And the about down in And affected So but and has how lockdowns how in and in effect? quarter? any Thanks. themes pandemic? like the maybe us sales two certain on overall Asia has in help forward pricing those reconcile during like talked competition going that general with Asia

question. Japan. Thanks And start me for with the let

has XXXX. and for Asia at So Other example I XX% account portfolio our and about XXXX has launch opposed portfolio earlier efficiency. into communicated And like we've emphasis -- earnings on to as growth have country our Asia core more that before as primary been talking focus on to we well Japan, a been look Hong taken only you fronts. the a if level, in towards that Kong. on Asia Other or of On on In in-force Japan, of measures these in as expense both XX% contributed

You can the into earnings X% on three Japan. see growth core that in translate quarter for

year. on kind changes of focus was account COLI. proposition. introduced And of the impacted to that in-force were was look be efficiency. one value you The our we successive And have witnessed again on latest If COLI forward rule quarter COLI this tax decline sales that on of expense three has in the in on Japan now will primarily largely and seen

back experienced of past. even throughout quarter. I for transition so your significant remarks our the growing one XXXX we as have that's did a that as example And and if in Hong we transition for mix backlash in years product the question reasons, when been and we Kong were in back trace of And share gain our to able an then And just different when full going in what account these on that COVID. in to outlook pricing, the XX% of we to same example geographies. quarter where felt XXXX competition few to COLI disruptions I we we to market plus, even To mix investments many our into XXXX, a made in in be into significant have agencies. very only XX% going mention sales be was around three our to year opposed So and efficiency focus to the we're in-force Japan experienced driving expense in addition on is had from

you if our back was force agency So go to approximately XXXX, XX,XXX.

are we XXX,XXX Now at agents. approximately

opening we on lot level technology, also Our lot on XX both have investments to in and his combination and share experience, exclusive they resulted sales in a my into experience more made several as which focused, more that significant distributors in view we Roy strength for to become bank customer diversity a and productive the of distributor our a partners, I specific but have comments, And modernizing has our alluded mix. factors quarters. have of impact add now think customer these that enabling market gains witnessed

On that mean, environment have of and been normal now. the our part the measures. on is for been I of front, pricing living products. experiencing rate discipline And time we some low a have back or the in our we’ve number this repricing taken of interest We’ve

efficiency. year-on-year. by our disciplined very have We as these Asia. growth And more factors higher on on healthy the towards been mix as new quarter pressure grow we that have as expense products, new three, been all different we we driving business margin product a business the value to into I value is witnessing margin witnessed are well were said despite XX% in in And a able that still sales resulting

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

a And of potential had uses that that of the be leverage are question wondering in a proceeds. of we that I'm transaction transaction. what the about I potential reduce was VA specifically or some morning. what use the would that potentially wondering capital to that about need could could the of be some of if thanks. Hi, sources after just from freed talk up was discussed the if earlier. the are maybe -- terms I Good

Yeah.

something And, get Thank that to our Let to it's to focused once a are Obviously restrictions that's feel the comment clear have but be also that as options execute we're make me transaction do. I'd we the see be -- also speculating our capital executing we of we you on actually opportunities is for and start on. would what to lifted, I for opportunity David. ourselves the well. transaction will us, there want deployment a first capital. we guess question. is we'd priority of various regulatory available us, one too important that I certainly ahead And on deploy when far on first don't inorganically buybacks that obviously, We

leave stage. just probably I'd So it at this

one Phil. business on for I just then IFRS just have a as another the me guess impact flow And on of will this the generation XX you remind whole? any if Could cash

Thanks David. is This Phil.

earlier, that Canada the anticipate have consolidated level to that So significant and -- extent capital impact at earlier of flow to changes our subsidiary consistent accounting That's operating basis. the we're thing I with there is the I has when that large said XX here think are course, operating on the accounting other cash impact businesses total units a will from capital impact, basis around key from But be in position, the separate drives IFRS not report at in distinctive as in from IFRS industry on somewhat emergence capital a OSFI is I as expecting neutral. perspective, all. And of how Canada the the our and message generation we IFRS said where then we world, basis earnings. the that treatment The for given. an XX, to

utilize and at accounting, a believe -- which Japan IFRS in lot I FSA gains. new Barbados. sort guess of has on And Right. business that's produces Barbados, that accounting, lot business Asia my because does not accounting local into the I I a it's Hong been reinsured question, of of utilizes in least Kong that Canadian which know

going And is generation, impact thought new be risk business there will so, to away? was, because capital my gains of the a

touch clarify to XX to subsidiaries reinsurance don't on expect -- including materially that David. that remittances expect the there. impact IFRS just And I operating from structures don't I and you

world medium around me. not and free long-term. that that I the including look the Asia, remittances at actually operating underlying remittance about generation when the worries I supports profile that's in feel fact, So in good the the subsidiaries something the short-term, And from both surplus do

Okay, great. you. Thank

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

Good morning.

I mean last terms Just back lapse annual assumptions. charges. review lapse in actuarial years to for discussion for a headwind been Steve most in maybe LifeCos on the has the XX-plus of the of

you your that expect do as we're And the the you experience up that, And mentioned to what XXXX, division you also experience you negative in quarter. in remarks favorably took will the in charges out US so at at and of lapse conditions then trend improve had lapse today. back end we of but get more

take thinking we're than to the looked what trying just of lapse seeing -- about the assumption that? in you you or what of experience not lapse I'm different kind today at enough within review So how that seeing did reconcile is you're charge, you're terms the and and

Thanks, I Doug. clarify Yeah, can that.

coming lot coverage as are more in the more whether how also results. be People business. their And when updates implications I've or So terms diversification looking with we've drop stated in long-term XXXX. became consistent pandemic industry of risk was the and a as we all lapse of studies item. is US clear news of a assumption That not the to experience reflected in materially. once time. pandemic impact got to It very valued think our clear. the our we we in their offsetting at up insurance before, Longer-term we've What globally saw hit, very of saw notable this rates approach COVID others through seen we Canada, it's entirely with are clear

and many in from players experience these with also point This to before my think consistent crisis at other over lapse I rates levels talking what well. would rates -- to industry the time saw the as very industry seeing. a is expect the drove again margin to shock back further, interest are to trend And which I rates financial with system global hit. the that I around -- consistent is the We lapse much drop pandemic

I take rearview mirror. which not if said driver another to more rise, item the in the And rates were in will I interest expectation. as it what moving potentially, my think pandemic do that to I rates -- to be is day that news to is what be pre-pandemic every Now of would lapse levels, back think the

rates, you're go rates assumption So pre-pandemic an lapse assuming, you're just to to but clarify back are that assuming lapse some to degree? there's then levels you the reserving

Correct. what lines those reflected We've with expectation the reflected the assumptions up of We is experience that XXXX. those assumptions long through and our lower experience really in and the be. well will lapse rates term the pre-pandemic

are what it were to left I'm out at expenses the And don't if is in And But you wondering, of could change if made interesting on just other you to expenses. can what required this the well. quantify the your expenses expense know range, I I'd just was So on you figure, there. But as be? not, be just that? on if more do Okay. implications side mean, And I margins would the some then would hold. cushion to justify I I midpoint there side but your the high margins some around the you one of the the you throw caught end or that comments you're to able

Doug. Sure,

I start franchise, and of growing we our we've see maintenance targets Asia that So growing efficiency gains. the priorities the execute we'll we scale as strategic What cost set. expense in said, terms to on on – see as the would

the what path, expense the uncertainty mergers a And the has we billion. could that that, along little in pan out I be scenario at to around move quite we bit of that would As X more range. significant is a would under be margins CAD total adjusted midpoint certainly margins are where hold

Thank it. Appreciate you.

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

guess outside volatility There's couple Thank to and of items big first earnings all. little lot the how obviously if VA swings want some year, around of have related obvious better of at of then the you a been you. reasons. for impacts is, last I understanding experience also a non-core quarterly core. questions investment-related for VA, bit the to a morning. over And market-related I impacted Good I US of a and has get

maybe has of at some those sense how impacted business if bring you just all? US can items VA the So

I can chime Scott very then on Steve. It's make that in. our effective want – start hedging that business. and US on VA got may a to We've on a program

been or has experience – investment been market managed. experience quite So experience has well

we that, and is However, between from of noise underlying hedge inefficiency, quarterly hold. investments see basis modest the risk or hedge through we that some the assets amounts there

and when when have – if see, in some dislocation. think to the I'll Scott, see pass you that's additional there's volatility over you lot really I to when of it has we any moved market a comments. can

time our this the due And exactly right. so there really at quarter slight and volatility funds underlying quite noise. been refined We've keep in will of for it little a that's it it, it, typical Steve, can't low. bit to and hedging Sure. does a this But business benchmarks. outperforming you long that be gain, past a a eliminate quarter, the was

volatility they're some of it does they're and as markets up to volatility, of necessarily the hedge does mentioned – Steve of dramatically, sort and down losses. create not volatile hard One course other that the and is move is when going directional

underlying year, as extreme But of last pandemic, some quarter underperformance of of did kind because picture that's $XXX charge it did when balance long quarter first the volatility. you paint a in very of time quarter the worst well non-core. a that how can volatility the quarter of was maybe in some that saw fund to markets over bad in the the we in We was a as get. the a of roughly We that for that the year. the create start recover of in of our extreme really recovered the million some and So

into the have or then second I separate earnings the question, sense all going Management those And helpful. split correct the it's that business US a funds Just a where I That's of related you. to segment the if flow to be of if the Thank get into specific am trying there into segment. and And it's helpful. Okay. US to into? rough is is if would on – can VA Asset two on you segments earned if fees going sort sort flow provide Wealth

not sorry, earnings the It's The flowing US segment. the the are Marianne WAM segment into here. --

you. Okay. Thank

question ahead. next Please Securities. from Lemar go The Cormark Persaud you. Thank is from

question this in to what travel of sustainable? the bit is seen country. a we've first probably step talk year. surprised to the specifically? little core if given some that seems I past just And And be quarter level you Hong in Thanks. it Kong My positive for Anil restrictions can a over material earnings up guess over I'm the what drove the growth

Thank you for your question.

significant strength Hong So, to challenges XXXX. area are go exceedingly been we facing and said suddenly period first a when COVID you and for has the of even rebounded strongly has as if Kong been an us back you half during in and consistent the performer XXXX of

investments customers market we that domestic account to We have in address what and in best-in-class Hong that the Hong creating we continue the gain effectively the that domestic on quite to Kong demand we've And and made of force we is largely share believe the is Kong. force agency attributable in have. agency a

We to have Hong as adds very broker that as strong mix our relations in Kong. the DBS channel relationship well

that and made And digital the the want distribution NPS to derive to our for historically point on a in believe fact, greater and the technology capture is the can the significant in. which the such -- account as I of been And position strength in share participate feel we when the underscore quarters. gaining market share that combination a share addition Hong our brand believe We that we and modernize up now that borders business. has sequentially multiple to with sustainable. this number we instrumental we that strength, confident and do business, Kong of that had we've the one haven't said investments MCV in I in as significant In capabilities, open large

Kong go already when So, the making said complement able to and that market are local be in the as of have and investments opportunity that we the that as up. address Hong open and would I to borders we to strength actually kind

kind said Hong it's confident of very underpins the and quality the of So, in Kong. have that we I as we just feel franchise

Okay.

look specific $XXX prior look slide I of at in the your at it here to when million. like there's QX $XXX million So, nothing because point four quarters, it's around quarter there's kind $XXX million, like back the call I of you'd if and one

one XXXX? QX nature So, nothing of type in

opening XX% -- so of a borders on As is in driven some has up. job you before growth. Hong the as I for Kong managing well We've in done this mix growth, it's disciplined And driving discipline back very said been sales largely very repricing account their different strong XX% product superb even expenses. the on as

expense that very, Kong discipline solid. seeing, you're the very growth the Hong despite So, in been has

factors combination is of Hong that you're So in to jump witnessing translating the earnings core Kong. these a

I what Phil. for the is about you'd question Is capacity the back the ratio. to right on let leverage end next the circle my to way then And XX% just want of Okay. on that think get to? top

it's order months, good is XX% Lemar the currently measure cap. we This that don't indication -- we if as question. necessarily overall back I our ratio you debt in markets, advantage of so a quite you'll flexibility in there for recently have comfortable that at -- seen have to have take of it you'll XX% And good fact, that there. sense go And from to But close leverage can months, XX absolute portfolio. the think XX.X%. as at go the I to XX to sometimes XX go reposition a makes is of think XX% Phil. Thanks to favorable

about flexibility So a concerned above prepared that. where we good be go the to understand is substantial XX% point to being without yes XX% -- short-term reference

you. Thank Great

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

morning. right stock you've the just wealth of things one big with business of I'd matter like big the year Asian in I hasn't a address go to to that worked is want business. time a some a this And first why Roy, now. company got first about kind a Good to

ultimately what's company. at But you'd with sitting is valuable a business to investors around. legacy move just think much going You more happening aren't looking be all this

it's selling with comfort, Canada, really be stock VA work, than and can you're anything you sold. Can business what doesn't makes talk more there keep put would that baggage. a can about confident? to the company I that So talked it meaningful it give impediment Like one be real think legitimate that the any as address I the And just that in think VA Are you all important this confident you've there that Are Are bidder? around there it. sold? from investors to you bidders? business?

of question. couple Yes. Good morning, would Mario. that the for I Thanks A things say.

lenders. incredible Firstly, unlock shareholder two to we value from see opportunity

Pan-Asian And demonstrated tremendous footprint gaining margin, the Pan-Asian and platform our in years and we of perspective a success our that growing largest We've have is, profitability. much the back, platform. about growth growing growing is was third our have been player. first several We're an years. that the than Asia from we sixth faster largest Asia pace the we've that The incredible for opportunity now in a XXX of business share, player. the position many enviable us. talked And we're our fact competitors We've Asia at for

opportunity lot is hugely of term. value. but optimistic think navigate to some longer in are that is to to feel significant of very the unlock there be we going feel challenges, continuing COVID, that So against and a agenda execute about about we Obviously, excited still medium that. very we that to periods We going

side a excitement see of the and business, WAM of our lot a again opportunity. of we On lot

spanning years back and results three in three grown that year our year-to-date think we testament It were XX% and this Our the business retail, margin earnings broad XX% we consistently. was at but geographies to above only have retirement. WAM on few tremendous are business that has WAM also platform XX%. a And core again institutional our a looking EBITDA I lines

five had we've -- we've delivered we're core quarter quarters, Now where XX%, this consecutive EBITDA margin was above and exception. no

And are the population on the huge a will see a but consumers we Asian the as capitalize again opportunity. one looking sheet also that retirement. where growth people of So for in that balance aging

free coin there's what's for optimization unlock opportunity capital touched we've when efforts businesses. focused We up specifically on And of and us of our the legacy no legacy. But growth through this you So that to side is, certainly, to potential our portfolio shortage back. of on us holding other value. focused

job organically. by front. go that and sharper This I At we we year, the LTC new And and target is VA that think specifically has a our LTC not our to having need company on talked and businesses this VA. XXXX. more for is to XX% team to is to the focus Day about we XX a earnings, tremendous a over job XX% need to core and from be better this to do But Investor on contribution done years.

not-too-distant when believe get is in future. efforts. we can their the with we also organic we And efforts contribution XX% less our articulated this supplementing So down, to inorganic that or that we're

beyond follow. there that franchise think anything possible are that is value we confident can reasonably the optimistic also again transaction really value. two able broader to we opportunity unlock We're VA and as create example margin that's the on just that on going very feel improvement profitability approach demonstrate we not on there's to are an for also be have in XXXX. we're we We've your contribution. I that coin. willing be a with And current But two the way sharp articulated on that inorganic were about to short in than a to opportunities the talk confidence of going the I perspective environment And a assets, and is didn't are we businesses value We from they that but VA XX%. progress just big many to need So that confident we buybacks years perspective. wouldn't And have focus from to reiterated another improve there also about to LTC that see a a more being for do profitability, to agenda. more organic there to sides buyers question answer path legacy tremendous ago. that broader But that. we've But that that and feel to assets example will shareholders. and a the that to One is transactions not again to unlock and but growth certainly reduce in agenda XX%, three towards feel our are Mario that a disciplined our the

particular peer working. The sort second Life to the the thing but Sun ROE what's stock particular, and you year an I've why bank million is something X% unallocated it's your this what with of I want on There's I few that company's that earnings. X% with look we're gap in to related of That here peers me. the same is seeing also address any is expense Manulife's not happening Ultimately that between occasions feels over a or and to business. in it industrial your issues is true other forget no see ROE widening between in reason to on additional at That's overhead. one -- both this number overhead the pre-tax of tax rate a it the But Manulife's about kind address And not little just $XXX likely is been over tried of I the think almost meaningfully like unallocated lines. ROE LifeCo in LifeCo The has what and to mix talked and gap last what's the like like an earnings. pre-tax US. Canada That's frankly the at relates while. lot of we've having just

it's you to? What part what's could new Does is be be a to business high. really like unallocated the Like it So your What that So does about big talk number? allocated. relate of overhead? expense gains in that And new should aren't mostly Asia? to business? it relate should allocated why unallocated not this that

for Mario. that question, Thanks again Yes.

very delivered we What's then on return after do than ask an equity our I we pandemic. key it great important going achieved in XXXX to if in Phil is And year point actually the times in commitments saw exciting consistently chime focus this year-to-date up I at our medium-term XX% delivering that plus less the ROE on that past. you the the for look XX.X% are feel drivers us ROE. years to area will as a be north the the which XX%. growth continue on business. XXXX to been reiterated at agenda progress our front We'd we target as businesses guess several our has this grow start us pace high-potential high improvement that our articulated of also businesses well. continuing to the of leading ROE help and drive of XX% delivering I'll high-margin for And I to relates also of to our to profit that and again is first much rest ROE are really faster than a us Let and me and in

those faster than fact percentage In rest the businesses of have XX year-to-date our business. points grown

going getting ROE our At less VA and grow we plane. contribution WAM, force to higher XX% lift which a as time businesses they we than a also So grow reducing to be is significantly same certainly our are our to ROE. LTC the helping really new help the to and them going with legacy multiplier Asia have as ROEs of

for to Cost then containment top containment expenses necessarily for a zero percent, an remember but we path platform actually And franchise there. the not cost think got we you've something to of isn't clear sake at a thing. On If been revenues to on the want zero that's progress we step really grow improvement line really the on good area very grow focused a the if what cost of we've we at the continuing We ROE earnings back that uptick at upside look seeing much So further is when ROE top-line see in take get that that's I want than sort is this I efficiency. the I to cost and to that be and faster our be to our at and on. total made a celebrating. pace you're going real so important on. at look and expenses growing think again

that have management a an XX%. will Again that pace this problem the to with don't target our for make an and franchise So but a contribute at area we're expenses, has focus through we have a greater growing much efforts. efficiency the we line been cost of strategic to The of improvement. efficiency sure growing our top want actually we

on target. think to our year actually which on efficiencies continuous greater but improve experiences a efficiency, the not We've year-to-date into is customers. there's that that to us That's We lower even this front. lot XX.X%, for than drive efficiency better translated done cost just is Our digital for areas ultimately improvement.

points where the a Our years again are translated the for which really testament from ago is to XX NPS scores into actually we digitization that fact customer. three benefits that up were has

see So talk specifically, I'll us. corporate the a efficiencies that's for a But potential chime not further That's ended. we expense journey to focus cost improvement ask that included and driven We're maybe I on focus numbers. and on think costs is We've are in our front. expense tremendous to in improvements continuing center about those upside that to in efficiency. Phil

into Yes. world the studies when in-force around assumptions expense new inform corporate we Mario. complete for Roy. I do then thanks that in make our – take And costs, we for and businesses our we at the the our looking that mean each From account Thanks, those business. both question of

that's a gap is So for concern. cause not that a

in absolute contributors been components there Our earnings by amount sources core the approach are but for this determining the not what just of has recharge the Corporate informed to also Other segment. really earnings revenue, of in to And and segment. cost

excess core that Of the the the we Corporate have where course have – business. through also P&C investment we Other. we Reinsurance gains, and investment recognize gains But into it's flows

historic do review on really but a we core So that looking have it of it's periodically, basis. we'll earnings do at something practice

Thank you.

There are Ko. back turn I'd this over Mr. no further questions registered time. meeting the at like to to

operator. you, Thank

Have after available follow-up morning, a there everyone. if are any be questions. the call will nice We

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