Manulife Financial (MFC) 10 Nov 222022 Q3 Earnings call transcript

Good morning, and welcome to the Manulife Financial's Third Quarter 2022 Financial Results Conference Call.

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

you. Thank earnings operating discuss results. Manulife's XXXX third call and financial conference to our to quarter Welcome

section at Our for available Relations today's materials, call our earnings including are on the the manulife.com. webcast slides of website Investor

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

on Witherington, the and remarks, Phil our XX. information company's provide and Roy's Officer, discuss Chief Following will results financial operating additional IFRS Financial

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questions, best our If requeue you to have everyone. respond additional will and we do please to

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

this Ian of property I'm despite proud joining impact market casualty Yesterday, demonstrated Hurricane on announced we challenging operating incredibly quarter resilience business for financial business today. and you, and us and Hung, everyone, results. thank our the ongoing reinsurance Thanks, and our third that of quarter. the XXXX environment has the our

attributable and of by WAM. for geographical strong $X. to Canada product offerings we reach making reported primarily We on billion, the and well investment-related decisions reflecting income Global lives success in are our instrumental positive partially and better contributions a financial net And results for easier customers. priorities, X delivered focus strategic experience, our as Our in billion, by core diversified earnings our as Asia of continued and strength, from shareholders $X.X driven offset resilient of the new rates. in sentiment driven strong by effects by and customer due direct of period markets value in This lower impact prior markets a Asia. weaker during The $XXX sales margins. equity North delivered in in to interest Hong We the primarily and NBV million. from by impact lingering quarter growth of of charge pandemic Kong business rising of partially certain year compared driven net modest markets America, was was improved volatile lower to offset NBV execution

fact, on to a an its eighth same increases the achievement challenging our demonstrates XX% In compared the and consecutive XX% market positive the U.S. year-to-date net the year. Global WAM and last of that environment. business, achieved of strength period given flows, recorded Canada quarter basis,

Our across business diversified portfolios generated all lines. X positive net flows

EBITDA a margin, a remains WAM, of of further LICAT to profitability core capital X% ratio XXX%. for Our XX. the strong our indicator for increased quarter. And with key performance Global

Turning to Slide X.

core company earnings we Climate the the ESG opportunity with to the X% for solutions sustainable of in same seized compared X launch demand XXXX. potential our highest strategy XXXX expanded Europe. Global in investment in to for offerings WAM, of total the investment meet Global X businesses of period accounted In Action first Our increasing XX% quarters and for the

the insurance onboarding digital recruited has XX,XXX out of of enabled accelerated approximately regional also rollout. the to quarter. and training agents hours the newly rolled agents last our which We learning The delivered ManuAcademy, over we Vietnam utilization insurance in XX,XXX over platform, since platform XXX,XXX

from MasterClass agents all and through Table share them the captures Manulife our platform. training new agents Million across Round Our best series, practices Dollar

of through gateway pilot our our to health Asia, customers expansion company, November through servicing for offerings, our life health program, Canada, we announced out And our helping their features term our app, Manulife to for GRAIL, we healthy leading-edge partnership we detection available John our In committed to effective choices. Vitality awarding ManulifeMOVE U.S. all them are are making continue early XXXX. new roll and announce policyholders to the multi-cancer We behavioral innovate its lead to one-stop servicing access offering to Hancock making group customers. insurance with it of furthering In care and a test the universal and better In our insurance the Vitality. offerings lives. continue as customers in healthier, lifestyle longer, we a wellness position

to XX%. made platform with enables successful We industry. life to points requested. engagement enhance carrier compared our the in in to automating we app. choices proprietary be error-free, XXXX. better remain digital approximately rolling financial of on Retirement, brokerage faster, enhancements in make informed Global an available, to percentage to first enable take time directly more traditional understand onboard mobile of experience the to And our proactive In number PlanRight members Asia, XX%, the enabling out our in advisor in advisors our drive about application insurance a X of book we In with customers third by Manulife saw customer-centric meetings a bold the producers meetings including with of onboarding in digital the app, submissions company new distributor steps one-on-one that We channel global the quarter WAM, make Canada case laser-focused U.S., to X,XXX at health. functionality to quarter the and our the their digital, the ePOS are reduced check the business this amount background process, executing increase within of we adoption to third while and to ambition most As eligible we continue adoption

period flat kept year, environment. providing year-to-date continues operating top line Turning to an closed an to efficiency in key pressure. In reinsurance to offset the general be same optimization New priority We This Slide our expenses to to and VA X. capital, transaction Expense of the a the October, we to million million lever important last of core current approximately strategic York. completes transaction in a is approximately variable legacy release $XXX expected written and to business onetime related the the of business, including recognized be our of after-tax $XX quarter. annuity our in U.S. gain compared block fourth

to XXXX culture our XXXX employee completed and success. an team global fourth that we're Our engagement. marks straight share recently increase sustained year is to survey, We critical our engagement delighted and with our in

a the Gallup's to top Our compared overall an benchmark, tremendous insurance us accomplishment. score Financial, company X% in which puts is

summarize. To X. Slide to Turning

a Despite ever. recognized underpinning resilient strong health and consecutive inclusive is our despite believe results and to and continued repurchased our global wellness, committed build and a tenacity connectivity industry, and market remains LICAT impacting volatility macro an capital as our continues macroeconomic long-term deliver energy employers, remain winning our learning. deployment generating which world advantage trends and strong, as common headwinds. We of providing the far have for We to value promotes fundamentals flexibility. engagement to competitive of We market uncertainties culture company. diverse the this strongly being long-term franchise, for Alongside X.X% are confluence have shareholder year best continuous that shares the outstanding year, testament recent X ratio strategies Forbes team employee and that so our of and results as our are of third the passion, to a culture

financial of an We review our positioned Witherington, Phil in Thank the hand highlights will are And well I'll win you. to results. who uncertain environment. to over Phil?

was annuity investments, as this money well approximately higher business $XX unfavorable and in a shareholders by estimated alternative a Thanks, related compared factors, experience, our to with investments, for a core of P&C Roy. of to income income third U.S. note, Slide Other, impact markets earnings. million investment the core Ian million sales the partially net seed on Asia reported We gain investments in net quarter $XXX year note, fixed due decreased floods. fixed annuities quarter the including the in quarter to the of new on results X%, growth and $XXX environment. first Hurricane of a Lower lower money from in-force source our in-force experience, to funds the gains due driven business which lower a of the for and Canada. in-force investment experience million Canada. Asia European quarter, in consisted in core favorable returns as operating with on from U.S. growth in-force unfavorable of Hurricane the and earnings Asia expenses quarter in by with earnings Expected generated lower and prior year-over-year Investment-related and and variable lower losses prior yields gains in earnings, in charge transaction closed of $XXX macro impact investment-related related and shows on on of and gains, charge decreased XX%, to million remaining reflecting recognized unfavorable variable annuity the earnings analysis in Ida compared I'll of due Corporate $XXX of quarter. year million equity reinsurance despite XXXX reinsurance net funds. partially in-force $X.X to decrease U.S., core included by the the we losses estate. policyholder charge the $XX of U.S. real annuities reinsurance the assets, of $X.X of resilient business delivered long-duration and by offset markets for transaction, experience AFS primarily from experience. $XXX to by year, Slide Of credit business lower million profit on gains the reflected impact the fixed These quarter outside lower-than-expected offset seed partially start year direct We Of challenging earnings equities third by by XX. and the million of Net offset mainly offset related income that the from impact billion, million the of partially prior markets. of favorable core number activities income billion earnings in $XX reinvestment lower $XXX XX smaller from related million was a from and approximately as attributed in were on

in-force to the our reinsurance of compared transaction, Excluding the impact earnings increased quarter. would prior have year the X%

business in lower in by in Asia changes sales business in the sentiment the experience In driven decreased by gains higher and offset primarily Lower U.S. driven a financial improved and Hong net New new margins million gains volumes product gains primarily and in impact product customer of U.S. lower was Policyholder business Asia, pretax the XX%, in of $XXX weaker by and in by lower mix. decline in mix charge Asia a decisions was planning Japan. brokerage on Kong, other. on changes gains a reflect partially reflect This and sales new sales basis.

Kong, Our AUMA more by business a of income P&C life details a return as the shows in equity. $XX driven of U.S. a income results and for partially unfavorable X%. the favorable unfavorable of items, the Core by experience. shareholders claims a million annual of in business reinsurance business partially largely modestly approximately markets, due transaction, delivered reinsurance well XX by several by claims new incurred charge gain XX% insurance. insured items. in was modest in earnings we impact to favorable Global Other experience earnings decreased partially earnings year-over-year, higher and as actuarial to number ever U.S. of of Core primarily from X%, related to by X%, lower net Canada, in and and gains. in-force the LTC. provide We in-force and of policyholder unfavorable core decreased business compensation net by insurance XX% earnings volumes decreased loss our neutral in-force by small Core primarily in business delivered U.S. million, to Corporate by reflecting of earnings WAM estimated review lower and had resulted lower by experience reinsurance favorable individual for in and charge offset driven decrease higher gains net impact policyholder due to by events losses in on and our new in driven review fee product the in changes our driven $XXX The growth. higher in moment. earnings, P&C insurance, large increased an Hurricane reduced unfavorable driven ROE assumptions, & segment in which offset Asia smaller expense in average growth core in a annuity completed primarily LTC Manulife experience business largest Slide XX. actuarial Finch group methods offset Ian, tax earnings in segment our core lower unfavorable by more earnings mix loss Steve on the X Net experience pretax the our attributed will by variable Bank We the Hong net variable million by $XXX incentive

offset to containment Turning shows third of in the Asia quarter, the down was partially sentiment lower sales sales of COVID-XX APE a in which $X.X sales reflecting impact increase in and driven Slide quarter, higher Asia and Japan offset partially sales Asia, generation. by APE billion value the in the a by X% by business Canada, Macau This we our weaker XX, generated Hong prior new modest by from U.S. In and Kong, year customer In X% driven tighter decreased the measures and during Other. quarter. sales APE in decline

by demonstrated new well large quarter, affinity insurance increase improved mainly large of in quarter. to mix, due the Asia higher and year-over-year new lower business growth segregated group X% factors sale in in delivered earlier by nonrecurrence year decreased business Japan. offset of America, momentum decrease in respectively, from a Canada. decreased in sales $XXX positive I as We and million, value sales resulting the higher sales and market X% noted a business from XX% changes year-over-year. In product due the the margins prior with benefited the In Asia, of partially a case new Canada, sales. North U.S. year X% APE fund as prior partially offset Other value value XX%, to of for

to Slide Turning XX.

billion billion mandates. by flows and of with XXXX, driven by $X.X Retirement, benefit of X%, billion in the rates. decreased average demand quarter. In Overall, billion $X. net driven income prior higher WAM's our and in AUMA was offset to In equity primarily decrease redemptions. sales inflows mainly $X.X lower were inflows markets were billion. positive of the geographic were lower compensation the Our quarter, compared we net net investor compared driven AUMA. member by We average Retail, declines lower contributions Net of prior net Global higher continued net net offset and unfavorable core inflows fee and of incentive WAM by impact despite the $X.X environment, of with higher planned income compared of Asset net yield billion diversification. delivered partially with $X.X from a The inflows from variable X year in market Institutional a Global offset Management, amid of by expense, equity partially net the business macro margin fixed EBITDA income Despite delivered line inflows. inflows business year decline by by with was higher year. quarter interest driven in headwinds, prior challenging billion prior XX.X% in partially inflows $X market $X reflecting net in line fee a of continued by lower impact year redemptions,

Slide XX. to Turning

We continue sheet strong capital and a balance to position. maintain

the point $XX the of quarter of above of on and capital Our decrease impact driven the supervisory target. NCIB. represents The was percentage movements the is XXX% LICAT ratio billion last to X and of capital strong market compared execution by

of quarter, retained redeem growth noting announced the rates higher leverage and mainly XXXX. X.X offset of intention the worth October, ratio in in due points we share and buybacks, value dollar carrying The securities quarter by of ratios else increased XX, We've share subordinated of value partially in on the approximately debt earnings. by the It's these this this financial common XX summary the program. Canadian slide, November pro being to redemptions billion execute shares committed for percentage metrics reduction prior for by these weaker and year. shareholders financial leverage LICAT reflected Slide forma will shows delivering a to in continued X.X% our fourth interest repurchased We've buyback continue Our far quarter. reflected We're so the to from this equal. that $X AFS year. our at on in of to impact on of the our the and the debentures par impact our to be all impacts performance driven

macro and a our and global profitability While by the strength challenging was our impacted diversity notable of to performance metrics continued provide environment, offsets. growth

and our us strategic and continues sheet priorities. provides our performance. outlines Slide balance and to Our deployment financial recent on remain capital financial deliver with targets flexibility strong to medium-term XX

business to Our in our of term. macro the to over performance our environment deliver our reflects quarter. the ability confident and a challenging against on the third the remain operating We resilience backdrop in of continue targets medium

XX. Slide to Turning

hand of information Before discuss insurance additional the new be I the XXXX. like to contract January on our XX, over will annual that accounting Steve IFRS actuarial would provide review, to X, I results to standard effective

of financial position in released gains CSM applied has One will a always CSM of Today, XX present IFRS XX, new for CSM business on under will new contract into IFRS standard income immediately the the new or contractual X, Upon the component the will whereas business. though will IFRS of service under business income, be we the and in-force implementation, recorded our as of a in impacts gains be recognized we life the new our and establish short. contract. margin key liabilities, over insurance our

reduction be we communicated, will expect be of net contract driver As in transition CSM of $X the context equity. post and available an the as under a net expect we main of as $XX approximate capital our liabilities. which transition be decrease the tax. the from to will post-tax the reminder, insurance will CSM treated increase approximately approximately equity, establishment CSM asset upon balance the expected are net result of XX% The to billion previously IFRS movements in X that billion and in modest a total Other in is the adoption Upon of XX and equity arise in LICAT. transition,

Turning to an is CSM of provides illustration balance to which expected Slide how evolve. the XX,

earnings. translate We new the business, balance particularly and expect in drive overall Asia, in core profitable to generating which CSM will future continue into growth

Given the X importance of CSM, medium-term targets. adding as we be announced, will previously

of growth of and growth XX% X% year per CSM CSM XX% to per balance business year. New

CSM expect approximately of we X% XX% the contributions balance strong from per to and be We amortization new business With to CSM the expect to year. CSM in-force amortization of balance represent transition the important issued balance core illustrates why to related CSM growth a portion total earnings is balance growing progressively we've CSM time. CSM targets. a and medium-term This smaller of over why business, future

Turning composition transition of to Slide which CSM XX, the shows balance. the

fastest-growing segment, strong our supported by growth margins. been Asia and has insurance volume attractive

Asia well will transition the comprising over the total CSM, largest have half company balance.

remain to over balance to CSM share Asia major the total its time. grow growth and expect is a of driver forward We going expected

actuarial Steve we live not Canada are We share I IFRS forward the will over to higher turn continuing discuss balance to to call segments review. dialogue a expect approach over total the would quarter time of growth do like the now Asia's annual as representing given results XX the IFRS to of quickly, we Finch, expected grow, to who XXXX. our U.S. environment XX grow Steve? reporting relative on While the and the declining albeit from first rate. a balances of CSM CSM look as

XX, business. year's of we actuarial was which modest review million $XX triennial gain of everyone. of comprehensive Thank you, net and recorded We this approximately impact long-term On have Slide U.S. good a care the Phil, study our in review, morning, impact net annual total, LTC the of the included summarized and neutral.

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resulted cost as of to assumptions, assumptions for to The in our Turning year's Slide developed approximately at in been next of remain referencing aggregate. charge key on block of post in aspects by U.S. and X block benefit reductions, the led This business, drivers it results to review billion. review dollars be On policyholder a LTC review shareholders. of the triennial the the is This as more claim for strengthening our future increases. the comprehensive impact established our claims which million are $XX in slides. experience income $X. premium to X business, highlights that progress XX, the has attributed XXXX rate claim assumptions net LTC appropriate older the tax I'll of stable. of notable reserves included all a as there of claim older study last well

to paying partially reflect an the to premiums experience and their for well update as utilization, offset increased reserves to current on continue fact our their $X.X year. $X.X impacts which, as driven mature, some policyholders will been to assumptions, electing reduced claim LTC claims reflecting As block that policies. termination This reserves a of benefits the rather decrease the of newer continues by billion incidents on basis, net by claim business reduce than a was have and costs reserves billion mortality in active inflation potential life in variability We block to by overall on strengthened narrow. of

on highlights in both premium regulators approval state in claim Slide continues improvement, to rate for increases $XX costs. and to of increases. to billion have the approved progress made Since the support higher we amounting resulting XXXX, Finally, morbidity mortality have assumptions value obtaining XX approximately to Experience date assumptions. no offset future basis a changes regulatory present future these to

third at how $X.X Consistent XXXX. As much the end past future to we with increases we we reserves. entire be comprehensive at reserves padded this LTC our quarter, our in of year's reflect the in review, embedded continue increases we practice, premium premium on is embedded last in billion achieved review end In in $X billion conservative our of representing Overall, practice only $X.X reserves, X/X total of billion embedded padded premium reserves. X% remains industry which in our total premium less our increases reflected to in reserves than increases approach X% of the ask. amount conservative the of at to of with the the

to Turning Slide XX.

with XXX,XXX there the no have Since longer of as those current has or us. XX% XXXX study increase potential the in customers higher are resulting mature. inflation date, the to Experience continues to experience impacts to assumptions to LTC is reflected up on COVID impact experience from of since triennial review. any the long the our uncertain original and study close XXXX the based to claim a been we notable LTC significant policyholders. XXXX X over who Combined XXXX of with or study, One are To and of are covers data related last year. Our term. pre-COVID on claims policyholders that gone lapsed exception XXXX, block with The new being of roughly as died, original years the credible over half

claims accumulate. ages More continues data to importantly, older at

the and reserves. of more in of reinforces the block, For experience adequacy current stability claim our mature older our costs

our study, has For claims than doubled providing to the assumptions for block, data since more update increased newer last key our credibility assumptions.

XX. Slide to Turning

conservatively is the most the reserved industry. Our LTC in business among

XX% to estimate strengthening we after past continue over for a X comprehensive adverse Our reserves. provisions Furthermore, best buffer only of the represent deviation X of decade, reserves. over our reviews significant had notable

policyholder assumptions, modest has experience average reserve over gain the aligned in closely resulting annual same period. with our Additionally, a

have analysis assumptions. studies from industry updated independent drawn detailed our to we engaged reviews supplement consultants for of Finally, and our

LTC of confident in remain result, we reserves a prudence the aggregate. our As in

XX. neutral quarter to modest impact In of in Turning a approximately gain LTC. review $XX of third income the our net Slide in summary, net on and million actuarial the was total net for

the our assumption once. higher significant the increase as the we in claims have data confidence matures. over credible LTC, prudence of in After only decade, reserves we the X last For comprehensive block have strengthened LTC reviews given reserves

our a modest Additionally, resulting policyholder aligned closely in experience same gain average the over period. is with annual assumptions, reserve

of rate billion have a increases our LTC strong prepared increases for also of conservative. industry our is embedding track concludes Overall, the approval our or XX.X in reserves in XX% with approach remains estimate remarks. This We conservatively record the to USD our obtaining and margin a among LTC reserved most premium business over best reserves.

will question. a like we opportunity questions. now to move will of the we participant the to to open adhere Operator, that to limit ask each would including call will Before an X Q&A session, everyone remind I have a to to questions, follow-ups. This help ensure to

is [Operator Gabriel Instructions] question National Dechaine And first from Financial. from the Bank

this to I what we've the size relative lately. CAT How year? the noticed wondering business just here. I we year, and mean, does losses had your make have much questions of reinsurance Quick per guess, business year, last big

Thanks the Phil. it's Gabe, for question.

I business the over we XX business period. past over a the over of to we that If of the think of if generated excess net period it's I -- at the better So record all billion at CAT you're back has years, earnings USD in think the track time. look getting claims X.X that's well And look what at.

on quite million precise, profit and USD but XX average, that's this is year. per of average, on So

additional million $X that X period. that's current claim The you $XXX expecting in point getting remaining net be the recognized actual And premiums this USD a Canadian that number we're post-tax into business, doesn't account may net is the important else business. we XXX a -- Now X the we income That basis. that the million million of income dollar all at If been on here have loss represent is, have pre-tax. collected take year, expected for on equal.

million, $XX average claim the the in about million the context represents $XX of of so X.X past earnings worth years' of over years And XX profits. year

Okay.

that net as I $X.X billion greater of -- than XX past $X.X that years the correctly? that Is understand such claims over So -- like one. million this

And return that's of and on a in terms capital, on. ROE Spot XX% ROE.

Great. at $XXX the given last product regards challenges, there, mind went pretty with is to lapse in I ones. peers. Singapore what saw actuarial that some it to which maybe market But you're lapse. Okay. it charges component I days, products, in taken expand topical relates suspect were immediately can related was these you strengthening. that the to reserve that business, maybe by more having That's And DBS, new doesn't secondary guarantee, to that it least then on My guess. well, but I was seeing million the review. older well, relate lapse explaining nearly partnership. And to some a those question pretty

did It's leading your to date you the Sure, that Gabe. secondary those at guarantee, time. the Steve I'll on reserves point, on pandemic, secondary to end that. And here. you up assumptions touch fully and include of study not strengthened over on all the lapse on know We guarantee were we've well. business

that where index-linked reserves, In study That insurance renewal. product Singapore term we -- channels. Canada, saw the lapse was reviewed Singapore, In on primarily was increased is it the And which income. we on multiple In emerging distribution fee and we future sold lapse business to the related by our rates terms on products and in reviewed effectively, what experience our assumed lowered year's this the experience reviewed of Canada. in we business.

reviewed strengthening and get customers premium when the a well. as of and premiums, there's change to So we had there the in modest period paying end assumptions there a their

Grauman Meny is next from Scotiabank. The from question

embedding just ask. billion And USD how out increases about assumed billion X billion more $X.X different of and billion that the billion $X something talked premium -- you rate future get Steve, you balance? $X get of Is $X.X versus that that's to about I'm there that wondering likely $X billion?

the past challenges, strong billion embed as can the emerging increases We increase increase achieving of managing got explain reserves. we value Sure, need much position than have maybe conservative business Meny. in to slides over in premium were what embed of maintain to reserves. the recognize recognize experience a this I of record And of to we And want that bit early to little premiums. with context well been see decade. We more and time. We've you terms in in success future a close track present a to the do of over how $XX we decided

were you at was saw able $X. X embedded actually that assumption, We It's X we XXXX, to X years. And billion in conservative. last achieve the but out in it the achieved study of So $X ask time. a years. in we lifetime that billion in

that. approvals to update as terms new any achieve that to based And a move significantly we're gets more we billion outstanding expect out total we're the to add-on plus $X time, than what the We reviewed though, chose on forward we study embed we of to seeking. that we cost, review that we current file. So us premium but of increases ask of to only claims $X.X expect approvals this coming billion, seeing over even the in for

not Is of it different be terms you it's that billion correct? ability buckets. that correct? different your you'll probabilities all you In get, what or view $X.X that Is able So has to in to do the like same. -- think

state, I'd business. in the look achieve the note state rate that the block. granular. claims a I you versus is newer There's premium Yes. strengthening review, increases to longer we for block runway We block. older cost by on of The business on mean look by was block very the of that thing

to terms increases. as to states? get ability those Like approval The And impact? just your question have being recession not in any then that some get does will of is, risk of from able price to a impact follow-up

would actually to we've actuarial a contracts very the rate have allow for We contracts time. we to been that achieve rate consistent we that to it. that We've ability And for the ability do consistent pandemic these -- we impact the our start allow maintain had the continued have justification seen across pandemic, increases question those us have I over the at achieve the industry If And to progress. rerates. got well. rerates? as achieve increases, of And strong the see

not. regardless whether expectation recession So going or forward a of there's that's my

to from easier customers various add, price makes That to increase. Roy Meny, relates is the we've to benefit this also with seeking that they it increases getting us I might customers reductions. and approvals also regulatory here, certainly that price to have in just it addition engage for options easier, options bodies, makes the offered as for on it the have

a from reserving perspective, and -- equal perspective. So both from our they're

reserves. we've options around our that assumptions. are years, our demonstrated confidence I confident Steve absolutely gives our us conservatism more with as reduction to We've highlighted. think over the we that into in put we've And even ability got available, that that what our reserving So benefit get feel the around

The from Paul CIBC. Holden is next question from

the in And think, maybe So on for we this little sales first Kong I weaker Hong than an And outlook Results Clearly, what for things just an I update mobility/pandemic-type QX. guess, some were Kong, maybe were still Asia. are specifically. trending should expecting outlook Hong we how bit question are expecting. opening for be is date? sales? quarter, But in you QX up, things hangover to as a

Thanks, here. Yes. Damien Paul. It's

just based Kong. Firstly, definitely the outlook the in Asia address ways, of the sentiment positive I'll volatility consumer see unparalleled on the some how specifically our remain economic many We're growth from demographics dampened expected and and then Long markets given we throughout of term, our let from question me short segment. cautious in capital and, sales in refer Hong first the your and though, the term, market to in Asia fundamentals segment. perspective part on

all third independent economy, growth, quarter. strong distribution powerfully have the unrivaled Singapore, it's XX% Hong our we emerging We're growth earnings financial to -- registered to across advisory opportunities key double-digit ability continue in growth conviction China, through we've target positioned and double-digit material in where our bancassurance deliver markets, Kong, we reach metrics the an in core focused year-on-year in medium and And where on we in term. have on So you us. turning Hong flavor is I'm what's outlook. giving that for growth outstanding If and of year-on-year a year. to XXXX performance -- in channels. In give just the challenge a strong XXXX exceeded of fact, Kong We before in on XXXX performance comparator was in for there, an happening levels over you our quite I'd top delivered Hong like here pre-pandemic sense Kong, in a in to Hong Kong a quite

on So ourselves comparator in some market considerably with competing the outperformed we're the that year. ways, in year-on-year having

Hong Now second persist quarter into the the the we faced some quarter. of in earlier headwinds in the year in Kong third that

quarantine seeing requirements. relaxations in are We some

We Hong and have in is gradual certainly which some signs seen some reopening positive of recovery Kong, important. and

of APE in to by in Sales in beginning driven late of we in quarter. X%, of now. terms challenges momentum return top mix the our the up product on by off this the Index this, quarter environment business in growth Kong quarter-on-quarter grew sales protection. in in saw XX%, We've And wild in October quarter third up currently value by However, in Seng over of percentage almost Kong, to pretty seen are registered agency stabilize, for growth through health pressure. and we our NBV consecutive to third the points the margin macroeconomic percentage refuse tightly in to XX the and been high-value volatility. And environment. remain you've Kong X.X Hang outstanding Hong encouraged the And decline line by of are to Hong the growth robust business Kong earnings third in But is in driven guess we, well quarter-on-quarter we're just I to in fact, points this accept as registered the Hong weakened Hong even here around growth underscoring And value quarter gyrations the channel We quarter. outlook which core year, focused gradual when well capital market focus as on Within we margin sales X.X%. that, of third month-on-month in throughout the Kong, we successive APE Hong under that quarter. is in GDP the trading seeing.

for is which -- a So us. record

in remain geographies sentiment the in level in by we and consumer in the large, the uneven but we particularly the Kong, at on have Hong So Paul. pandemic side the Hong growth signs segment conviction the and long-term short that and the Thanks for seeing of both term, and opportunities. across recovery, recovery the we're seeing cautious question, we're given Kong, on the

the guess those ability rate question think, long-term billion I the is Steve, help contractually, that is, allowed? $X mentioned questions whether And that then what premium care included left of And part reserves? assumptions? the think the over sort there be then right. you increase Or understand my those And on you're obviously, second achieve maybe point contracts first trigger to some it is allowed anything can that current just the contractually second there's allows back to embedded to price reserving you specifically, your clarify to to and the that? is I premiums. to is premium amount I All What just increases? you Because guess, within I total embedded going increases. of prior is, or in is that's rate from going

Yes. Thanks, Paul.

it in -- the amount if that It of true-up terms a the is there the previously happened you were reserves, sort of and in had embedded as the asking In was $X this had just any exactly what of we embedded achieved so versus billion that prior. almost review. reserves we was

So individual that the $X billion But then guaranteed true-up reflects on that yes, actuarially that they forward. claims going can premium And you are the achieving it can the have our the requirement, an as no meaningful to contracts forward-looking contractually, projected And of we costs think update based renewable, seek the justified. each had are are increases. which increases. means we term not success fully state we guaranteed demonstrate to that

think our requirement. focus filings closely. should the talk understanding So the our data, much how that's effectively you experience, why a very about about review that's so on do we And and states

Desjardins next from The from Young is Doug Capital question Markets.

you, I'll stick with Steve.

you're obviously, this legacy options all unfold I reinsure Because interested care out you in in mean on get looking about of at at claims terms same block? an to Slide block the reinsurance. long-term more to part how talk move block? if is can stand how a that in claims have the on maybe bit on update part parties outside is of of important -- important insurance certainty are we Looking to data. more this to block it data ways XX, And and going to parts within where vein, legacy to that

saw or outcomes the the I Sure, Doug. the transact, business. -- claim think did but important. variable to data is additional are over I'll the I which annuities, pass didn't over years costs it on long-term of on possible lot more add older to We start, have mature charge is it got From and Marc, makes surrender on highlighted pass which it talked business, past as to the data I'll why Costantini expect same strengthen data range to as and We've I his that think perspective, a fully outcomes block. in how, narrow, block, significant X we Marc need X couldn't we happen we've accumulating of on I'll to I in and more my accumulation we got care, then that there, data, reserves more really and of to claims of I thoughts. newer claims done range the you. continue And will period, that expect to thing aggregate the ago, narrowed. matured, we transaction block about that we to

ability exactly in looking experience, over ability at good is back here for said think demonstrate that Yes. is predictable a Thank all do to X and business very, your I experience, increasing, that only Steve credible asking would at add being very you, the questions terms that positive But these on that this. comments you question, have with has like of qualities. thanks on Steve to perspective, to rate what to and environment the those interest guys mean months transacting increases to Steve, push Doug. I the blocks which been as Manulife time I my rate Steve's tailwinds have said, transact on has been of thing

leave I'll it So at that.

-- about or like Marc there isn't And just up, the around is think but maybe -- magic Can do that what that older it is claims of the a And what that? for follow you the block role of how number that the block? what can that relative talk XX% bit I you block, to and was I the policies at block. much on Is total what Steve, was if is unclaimed. are one, have the VA it the magic number general

me you want do that to Steve, Yes. one? take

on start to I'm that one. Yes. happy

matters I But think it's over -- what really Marc, it XX back for what additional claims is -- XXs benefits. these comments. their matters, really and you use when that's getting and pass I'll when people to people XX, are in

look the on their up those newer provided they're -- the you XXs. if -- at of business, the Day, data And So older that see more we're in our the block we on at claim, not mid-XXs. block to Investor can you

over XXs, start more get time, I as get the when to So Marc? into certainty. that's think we we

is, are cash interested with this. the blocks I Yes. we same parties, here see question And thing. say have thing are demonstrate flows we No, discussions in other the have the I I various -- business the number was important predictable typically is they how starting that going key the buyers experience. have is that so a which exact is the blocks would of those term, as think say what short that in. of older And And that to to

how current there But business. market depends be package time see over that information this all the it the you a will it environment. in they for to receive markets the overall and So how

question The ISI. from Gallagher Evercore is from next Tom

And follow-up to the costs how basis what about I much a far, any future whether been? inflation to that's review. billion true-up on on gross talk and it sounds so Can that like you like seen change made the claim changes experience Just percentage actually you've guess, to inflation? has taken, also you've The a you've inflation, a charge your for $X date.

Sure. Thanks, Tom. It's Steve.

were assumptions, the cost the reflected up on terms included, We past saw. the average, of we we've but And we we to to we inflation. X.X%. X correctly. the what higher in what that that to end seeing, sure utilization X% seen seen to review, which wanted care caught date was our -- in roughly of we've That on we're update make roughly that's You at experience over period, of years, the that

this long-term in a on In very the particular, cost of our higher of step go-forward have terms at care think look a and reserves in outlook, holistically. I business. it's take We over we -- LTC back reflect inflation assumptions time. do It's important to to

-- that see you positive the past our over we there's We've to several in going think we that And want reflect And experience could because number that did reserves, reflect approach have we see when see So that tailwinds experience adjust pandemic trends some right? review, not do forward. here. a could this course. didn't taking over the that long emerge had emerge seen in long-term the years, of that. we we we So experience term, I we We're of before there's assumptions. pandemic, during

care, if did cost our or returns in nursing would on a consumers they look company think versus portfolio. were to where the some homes, of you to business, And they if that for We long-term there inflationary overall, to of saw than more headwind. tailwinds higher see prolonged be customers which of we So higher environment our of But seeking terms often nominal and you care that valuation care facilities we is in also inflation if would more trends in assumptions environment, home backing cost yes, saw of a broadly inflationary seek a care, older were terms then the in expect at of seek lower reluctance us. our care.

on the this -- actuarial actuarially see, achieve has experience is we increases. over And the drill really and business managing So served claims our justified time that very data, we've reflect the the well. us seek manage rate way just approach been in costs, that

Thanks, Steve.

that So and interpretation? of that X%, around X% get to the pandemic. it's we out Is been assuming fade will correct running a you're as

seen the in is, years. of couple yes, assumption below we've what last long-term Our

the for or on the just the that claim care follow-up in policyholder Was And experience experience. then unfavorable Okay. actual of part quarter frequency? X the particular, in was cost that both? on was long-term that Or

LTC experience this negative. was The a quarter modest Yes.

X saw as So nothing policyholders call there was, care was we did seeking The see or we there. expected, really thing out again. consumers we to

higher a that risk. we pandemic an we saw portion but And IBNR. we incidents, So of for during IBNR the the established released had

USD to of hold continue about IBNR We for block million. a the XX material

is question Capital from MacKinnon next The Tom Markets. from BMO

Just a excess question on maybe an update on capital.

ratio. that used you think a it around I say to higher billion, $XX was was but LICAT with

was it now. then XX% leverage of it's us closer XXX north to And now. gave think when was somewhere lower, it's XX%, maybe the that, around you I and XXX

So you capital this thinking your And would leverage calculation. deploy Any you how with just there as other what how outlook ways? what's are I you with move update think But sure stock. What's want of capital not excess mean, respect update how buying incorporate the to would to it, And some in any on do this there? to there? back into opportunities this IFRS excess we XX? then even change

Tom, here. question. the Thanks for Roy

the we've it that now. guess out, say been point years X.X the that as environment over served we last of at start, very about. purposeful capital uncertain X then and us in to you in first feel put we're the over Phil. last are a strong right a hand position in us I to LICAT were capital environment me years XXX%, over which especially is, good We building rightly very uncertain strength about the the Let thing I'd and position, in and well, in ratios we I'll

billion been $X that happy means about strategy, That a got And of the ratio about about it's So we've I range. operating the XXX% LICAT and certainly think that's billion that. we're $XX above part minimum. very above our upper supervisory

there's that significant. So sense bit our thus active upper of this about with versus feel deployment, highlighted. we're lot deployment been capital, certainly for that's of operating why represents were through already on far at we NCIB, back with that space. outstanding and that of can where range, very I We've remain you And year prudent we which $X.X We've active our think we but shareholders that to of deployed that create value a a Phil stock, we the billion gives is shares. as very in X.X% buying a and

low create our We continuing to create being as a value tool this to committed we're the shareholders. is with to and for is. price for NCIB it value shareholders, So continuing especially as share for us great think

We've So dividend increases to for XX% something we'd on. that dividend. XXXX. -- of Vietnam we've with of XXXX, with portfolio of way 'XX, been value of And the in 'XX increased creating selective in is entered in XX-year continue. as, A got QX to through attractive that's got the did QX India Obviously, in deal our Mahindra acquired in In the space shareholders. QX going always We million in we an XXXX, Aviva been In focused that VietinBank, again, definitely years. dividend we banker QX in transaction. XX over M& in we've the of Vietnam extended Danamon access 'XX. We customers, and a we fact,

will also sure deploy when capital, going we position but we're make leave in capital would we we to a you put does space, it I shareholders, a that We strong that good to value do prudent. in are what sensible with think we a I to that focus want in be very create us is and So to This in continue for way. position.

Thanks, And Roy. Phil. this is Tom,

to your question. add to of a elements address couple couple Just of a of points

under medium-term seen our XX. that in interest we've to largely value movements quarter-to-quarter IFRS the book think leverage variability something the response we remains from target. XX% And ratio, of been has in goes And that's away that On really, driver rates. main

case. last expect stability and We of concern environment. to be more strength for our And the to to It in expected XX, XX. us. we confidence has generally, quarter an see deployment, that on XX IFRS the point capital did capital The something much changed therefore, Nothing a IFRS LICAT on your to a not that -- IFRS is value transition to IFRS in our book more we see there. continues in of terms stable XX is disclose

back leverage that? And try you're to any XX% Or what feeling with ? is that down movement bring there XX% respect to to to

Yes, Phil $X announced have of October course good actually Tom, subordinated question. we in securities again. a the on the this of It's of November. is will We that XXnd billion redeem

that refinance no have need to redemption. We

was this when the favorable. earlier had we year more prefinanced proactively fact, rate In environment

leverage something that's reduce leverage percentage the ratio to So order point. target. the will to to And medium-term the ratio that the continue X manage XX% opportunities in we look of at

you anything like So look those for thoughts comment. just substantial with something at with assurance you presence to sizably you deals? be seems as something any the in this if to respect generally, deal that transformational excess might there's various interested you bank immediately to to is look a Or along your -- that it doesn't would or Looking tuck-ins, would opposed capital? be at anything to various care in? sound have increasing It on respect Asia? that lines, smaller coming -- be doing respect there What along horizon could with to all are could

Roy Thanks, Yes. here. Tom,

So that achieve to footprint have. strong that is the I say I that and a we're significantly think we given first the thing already we the quite in medium-term our I'd footprint unique through that very have, think really position and targets grow

true news geographically, but the good of do to That's in franchise, a transformational business don't it's business, need breadth achieve true and also think our to that from any I certainly of and our our both is M&A perspective. WAM line the targets. Asia, because in depth So we

targets. strength. of to It we our a us puts that think position to achieve I capital So deploy that don't in have means

do say. we So want make the that's would we sure I in that we deploy capital seeking. particular, are the first we deliver M&A thing returns that to When to can that

So easy important. difficult to but again, executing quite you're frankly, it's more that more do ensuring transaction, against it is a than,

without transactions we confident capital can a that we is open them, great. to be and that attractive we're in them, looking position when creates in always it those means can much we that value at do is and we means entertain Not risk. a which having being can transact, strong to that So do do actually way

a seeing being be deployment we'll shareholders. of that may definitely those. moment, those, so, or lot at to that look perhaps that the environment the to and continue there continue we'll more opportunities there we NCIB challenging organic dividend capital So deploy to at increases, are frankly, In meantime, opportunities. quite we're more smart in and in and about create a year as our see And next think I for look suspect we will value inorganically the at very

The Securities. from TD next Mendonca Mario from question is

if looking number Steve, is assumption for The we modest. I'm review Slide a the XX. could net at to go moment.

million. updates your IFRS the amount prices offsets, anything any capacity that long-term to net IFRS under that would adjustment to are XX, offsets, suppose. Is other any way? I'm the it XX IFRS Let's XX would or other getting is not there is, impact would there ability XX? earnings, gone in reviews like, for to IFRS higher CSM, or like assume change the for have $XXX impact in think about that price the IFRS for care. But I Does XX. updates have here gone What increased any the at the increases the -- example, assumption In number about only change

X high is IFRS level, highlight XX Thanks, And principles -- Mario. but the at change, there I'll based. a

estimate to continue and set risk best will adjustment. assumptions we So a

So investment. notable is the X item

We longer will no link the and liabilities valuation. our assets in

slightly see of the a it related won't in So increases, been to will by we But block, kind all big not discount premium but block assumptions, different same. changes rates be work going change. that through. The that the would

the the were CSM changes you're there is income. go net correct, to on And as cohort terribly through of nothing particular that as So CSM assumption would go there. long a X, will notable If CSM. it any business

highlight. are those So to the key things

IFRS the investment million X under that then take there? that wouldn't return XX the be $XX assumption, I

yes. is, That

also I I updates. want the know I what assumption think that's But note right. to that don't yet

models embedded got noise, there be all of I rates. from haven't We said, results other like discount under will IFRS XX, the the

what review under would don't be the So assumption to XX. want I to guide IFRS

so improvement see there surplus term, term increase portion see surplus. could that's reinvested. Quick book capital some for earnings on some over Or potential on the question interest about surplus correct appreciate rates? an that we a could on saying time not on is I sufficiently time? But surplus portfolio you in as may that that reflecting is in earnings bit is of extremely then discussion. the little Would AFS in the earnings I a real seed short be any of long we on talk the improvement improves in the earnings that

Yes. And is rate instruments a portfolio I'll AFS some this you're Mario, well. run within portfolio, as long Actually, the this seen look are -- portfolio is one. Phil. that right, at the take but also far benefit the is there there if year. we that shorter surplus we've so

portfolio, uplift surplus of AFS order seen has And on X/X portfolio. of yield we've short-term on on about from -- come run pre-tax. X/X $XX has that on from the rate income instruments million losses QX, the the that and rise to turnover from earnings of income. relative net come from within So net that of our in it's a something that, results see benefit has improved has And with earnings. comes as you benefit, yield X/X net high X/X realization trading not about for to that can year combination largely income combined given But of of total a the natural into full some impacted some core

a higher income earnings. net fact, than In year-to-date basis is core on

the environment So in interest in something that us. as I come. with And could and for as run longer stick quarters anticipate time, to period that well stay this that's a we increase rise rates of rate will would that,

Did you say $XX million or $XX million?

$XX million, Sorry, X-X. million, $XX

follow From didn't that. what period to what quite period? I

That if that's -- this we -- year.

you QX, is much QX, the accumulated into look QX. run at rate if how So

question from Persaud Securities. The next Lemar Cormark is from

we appropriate for X% I'm talking about most at amortization range what expect X% sheets that about XX, Can evolves to to to the CSM per see U.S.? want remain Phil. talk specifically, And outside the X% of looking here, intended that CSM to we move XX% how rate to static and are as amortization XX% Asia? to balance IFRS to of probably shift to is Asia I'm to even Canada CSM and that mix over the year. XX% what so I as Or you

This write Thanks the And a extent that longer block we we that's in-force maturing. because the X% have a see we've that large the do stable Phil. XX% the modeling that question, time. at very will at for business, We the we new we Lemar. also that would a to the portfolio. suggests write that have be -- are in-force life And our time to The today business scale. expected a guided is to Yes. or would actually longer

the that the what been the some number. your at Canada, on and it's that a insurance look that business Asia. books we've lines today, business we we So long of think portfolios America, time. to our future, of for segments, to U.S. each has that And between North the a that a to represents is largely foreseeable for particularly X% least consistent also although does life, is XX% X% long legacy have the have at in when of And what's that I actually question good is interesting XX% guided along the

is profile that something amortization of materially not it's So extending CSM. the

I want and seeing to circle Okay. management. my then me driving of back if you understand positive interest That's net of helpful. what's what resolve markets. weak to in that despite wondering wealth I'm help can we're rates kind question, the And second flows terms to in

behalf like it up segments? flows guys color So markets? from that? what's the of in on are would that managed you it certain driving be scaling helpful. Any just there AUM Like Is other is

and put helping the taking in really Yes. markets Thanks Institutional. Retirement we we there, money how In while really, in, the contributions were we positive question, that's member definitely a about Retail, have we're We've income. seeing kind aren't considering business but really tell the to flows the money across can of mid-to-market. Lemar. Retail, feel positioned. difficult out, billion as they seen shift In you been but People $X just from of across not equity lines, continue all all pleased, X Retirement, higher for we're quarter, so was in across the good positive, platforms. the well and And fixed

in below average. drive we've market our U.S., particularly we strong of particular, in pullback share to the markets, in markets. across Asia, got help rate in redemption of market that seeing. able some all Our different to offset were We've industry And is been really sales the

this we good well is turns And not about it understand tend is what's important this So then long-term and also in how to really feel term. in institutional strong. bodes us market, that it of on investment longer in that, products, we're have our perform those difficult But as performing. seen up we spike around. feel investors strategies expected And positioned which should makes market, And are confident purchased redemption be the as institutional is and that our side, this our really terms I just that well that. think performance performing more

and doesn't and in of some way get activity seeing the short-term activity. typically we're So RFPs good there, volatility

of positioned. since in look of the month I when volatility. performance, well when our on that, market was think and feel look how September And we market U.S. the investment worst Having basis, just active relative not forward, So our we XXXX. leading March a we to we said we're fared flows at share, well immune

happens relatively, So with we'll feel what see again, we markets. we're well But positioned.

Research. The is Nigel D'Souza next from Investment Veritas question from

block, and again I follow older on policyholders. differences by being at newer XX. When claims look driven data wanted understanding there, on the my in is age Slide up the and highlighted the difference is the for of average LTC to I data you the

LTC? just of you to a you differences favorable are across for the favorable the level block normalize older claim then? the block, blocks, is of counts in sense So seeing for get less more current older those trying match And or to where if age tracking

will over got in differences or we XX there's of what of maturity currently years. out, terms age And that of relative why benefits block age experience changed yes, right Nigel. in in block. less there Sure. in newer nuances lot exactly terms are characteristics Thanks, coming the with somewhat the claims that be there design, there see over And it in a similar the it's you data age of the product but that average were

specific narrow to So really have accumulate go as forward. it that those to that's specific to sort we outcomes data like to those range continue I data accumulating of And contracts, hone certain a to the able be range, on fan of that said, we're is of to because contract. expect valuable there as assumptions outcomes we is And I incredibly what in we'll or experience.

yet are you? But like going ready incidence to it already sounds you've your you're reserved on more based to estimates, less be those best or to rates to but favorable not whether termination commit or

Yes. It's a good of sort question.

future. I We got you would have enough we've that have can't love in confidence set I the confidence. predict reserves. those the fully I know, to, confidence data I But reserves to that we've as have set.

So I data over but we we the have that confidence to time, -- data will continue those assumptions. to set have track the don't

from next question Capital The Markets. from RBC Mihelic Darko is

per per of on X% medium-term the of wanted focus the new CSM growth year, year. balanced targets, new I to XX% business and XX% to growth

numbers. before. don't CSM Sounds I've seen know, never like I good a

is to achieve goals? And is is next just Combining X Can how you aggressive 'XX, of me me year idea big proponent what sales of that. an need way these you is. a my Slide that maybe assumption assume So with would Asia can give the of understand sales help same. XX the kind you mix

Phil. Thanks, And at to looking really about Darko. a and I the disclosures questions IFRS asking appreciate lot XX them. us. It It's you means

look high. of feel was value. some in the could generation, similar felt as I wouldn't new we appropriate. our new it release level terms reference to In it's differences. There technical directionally, terms you it's of are at, this in new And We CSM achievable. guidance, would behave very business confidence to to I unless point of a what expect business

For new cost of business includes allowance an for example, value capital.

XXXX, on there for are a potential certainly in challenging or we've is value touched that business the the improvements what rise grow earlier. is But new momentum. expecting good that benchmark notable very or given I whether doesn't. And business would a horizon this give Damien achievable on be to XX%. New indication stimuli to potential we'd that how next not environment business seen new be in the year could CSM by of think

gives growth think similar business, CSM. that of reasonable confidence new we'll the I level see a us that in

then of that's new the from balance, Now offset accretion of in to few that X% the but naturally over interest time terms on is CSM, impact of a of accretion the CSM by amortization was that the that will grow from XX% it also the call. something will moments business, discussed grow

and is quite I to add couple that here. Roy One impact consistently doesn't IFRS fundamentals. a Darko, other just thing standard of XX an business want said we've accounting is that points. the

in the So balanced our would the that world. and guidance aren't and new IFRS targets our business given we've new CSM, growth They growth, for given business an achieve established are we ambition. around ambition current we've XX what both

to not value to aggressive. earnings a company new just has as strong good This in an to earnings the hasn't or growth. the look final are translate which the new thing that's future. term, CSM, these your is is relates well of thing getting So whilst going provided or guidance. Because is appreciate can earnings that short to what and decrease everyone, not IFRS balance it's to for changed. it's critical more We're an ambition really less will I'd really why And it CSM, performed, through. amortizing world, our how at In not but XX XX we've world decide CSM, is, IFRS say business dilute new as aggressive both can't obviously a which deliver then because future targets you be you in the

part of at and targets. for establish delivering world, accountable a to targets which like new Because ours well. is think to us them to really a it's against companies those we've as critical this then how hold given we're I important whether to look So why is in be

that’s useful. best Steve questioning that of that wanted to the line of was with amount significant care. Very very estimate. PfADs your Mario I to helpful. very long-term see care difference above I or respect to Yes, your long-term a reserving and back on with get over is excess for the quickly asking block That’s

over way Another of significantly think had to adjust X to is X is reserves. things the and time of of you you’ve better that statutory build IFRS flexibility it go. than things And as the reserves

is a clearly, have margin service Now under that X keeps IFRS for to don’t up until contractual except happen or service which more contractual thing adjustments XX, less margin. you for same the the coming thing, the me,

big let’s pretend insurer going to negative here thought of as gets So margin then like changes? make being too the the and concern negative, you kind have Or service is, or And – look process contractual X. to and experience where your down it until unlock am paranoid. a and keeps you U.S. it reserve I goes

other to question how And ask relative CSM U.S. care how hard is got maybe block to you that? be to from the And CSM it of that long-term so the big business? all would the this the deplete from is way

of reflect that able change. And about as your go, point we to Darko. not terms Thanks, experience in being Sure. does

it very the to is operate IFRS net this for income under And similar CSM So at look business, I geography. X. will very, actually more just versus

go it the still got point reflect our will will We margin won’t But premium tell through were change increase if at would XX IFRS the details the that where decrease depleted, we income. appropriate to can point, fact our continue assumptions. reserves And CSM we to that net significant have IFRS we’ll LTC under you, an I very XX. disclose reserves. in but doesn’t

increases, So achieving experience along that very and reserved. the we fundamental. be geography. of rest kind practice we continue premium which as as of our is The go will We’ll prudently view reflecting continue to of

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

Thank day, everyone. if there you, questions. follow-up be are a any Have operator. We'll after available call the good

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