Manulife Hong Kong reports strong fourth quarter and full-year 2021 results

Core earnings for both the fourth quarter and full-year 2021 were at a record high

Agency channel further expanded and recorded a 13% growth in APE sales in the fourth quarter

APE sales in Macau more than doubled in 2021

HONG KONG,Feb. 15,2022 -- The Manulife group of companies operating in Hong Kong and Macau ("Manulife Hong Kong") today announced financial results for the fourth quarter and full year of 2021,reporting strong growth in core earnings,new business value (NBV),annualized premium equivalent (APE) sales and agency numbers.

Damien Green,Chief Executive Officer of Manulife Hong Kong and Macau,said,"We are proud to have delivered double-digit growth for another quarter. Despite COVID-19 impacting local business activities,we once again demonstrated our extreme resilience and maintained very strong sales momentum throughout 2021,ending the year on a high note with record high core earnings and NBV. As of the fourth quarter of 2021,we have grown our core earnings year-on-year for 17 consecutive quarters. This was attributed to the solid results delivered by our expanded agency force. At the same time,our key bank partner DBS and our brokerage channels also reported significant APE sales growth."

"After the border between Macau and mainland China re-opened,APE sales in Macau more than doubled in 2021 compared to 2020; with sales from mainland Chinese visitors (MCVs) comprising 60% of the total. We look forward to cross-border travel commencing again between Hong Kong and mainland China so that we can meet the demand for insurance products from MCVs,especially those from the Greater Bay Area (GBA). In order to help meet this demand,during the fourth quarter we accelerated our investment in both Hong Kong and Macau,opening new offices and upgrading our customer service centres,as well as appointing senior executives to drive our strategic priorities," added Mr. Green.

Manulife Hong Kong'sResults Overview:

Core earnings

- Core earnings of HK$7.4 billion in 2021,up 17% from 2020,and HK$2.1 billion in 4Q 2021,up 18% from 4Q 2020

NBV

- NBVof HK$4.8 billion in 2021,up 32% from 2020,and HK$1.3 billion in 4Q 2021,up 27% from 4Q 2020

APE sales

- APE sales of HK$6.6 billion in 2021,up 10% from 2020,and HK$1.7 billion in 4Q 2021,up 11% from 4Q 2020

Agency force performance

- Number of agents reached a record level of more than 11,600 as at December 31,2021,up 9% from 2020

- Agency force remained the key contributor to insurance business,accounted for more than 60% of total APE sales in 2021

- Agency-driven Mandatory Provident Fund ("MPF") sales in 2021 rose 40% from 2020

Mandatory Provident Funds (MPF) market share

- Manulifewas the largest MPFprovider with a market share of 27.0% based on assets under management as at December 31,up 2.4 percentage points from a year ago

- Manulifewas also the leader in terms of estimated net cash flows for the period from October 1,2021 to December 31,2021 with a market share of 47.8%

Full-year core earnings increased 17% to a record high of HK$7.4 billion in 2021 from HK$6.3 billion in 2020,benefiting from higher new business volumes,favourable product mix,and in-force business growth. Fourth-quarter 2021 core earnings also reached a record high of HK$2.1 billion,up 18% from HK$1.8 billion in the same quarter of 2020,driven by higher sales and favourable product mix.

NBV reached a record high at HK$4.8 billion in 2021,up 32% from HK$3.6 billion in 2020,driven by higher sales volumes,favourable interest rates and product management actions. NBV in the fourth quarter of 2021 was HK$1.3 billion,up 27% from HK$1.0 billion in the same quarter of 2020,due to higher sales,favourable interest rates and expense management.

APE sales in 2021 were HK$6.6 billion,up 10% from HK$6.0 billion in 2020,reflecting strong growth in its bank channel,demand from mainland Chinese visitors through its Macau branch,and an expanded agency force. Fourth-quarter 2021 APE sales grew by 11% to HK$1.7 billion from HK$1.5 billion in the same period of 2020 despite the dampening effect of COVID-19 containment measures constraining cross-border travel between Hong Kong and mainland China,and demand from mainland Chinese visitors through its Macau branch.

In the fourth quarter,Manulife Hong Kong expanded its agency offices to 145,000 square-feet of new office space at Manulife Place. The customer service centres in Kwun Tong and Macau were also renovated to provide enhanced customer experience. Further,senior executive appointments,including Candy Au Yeung,the Chief Operations Officer,and Carrie Tong,the Chief Strategy Officer and Head of Macau Branch,were made to help Manulife Hong Kong drive operational excellence and business growth. It also launched a newholistic 'Medical Professional Support Service'for customers diagnosed with cancer or suspected cancer,who can have their cases reviewed by dedicated,in-house healthcare professionals or qualified nurses.

"Manulife is the longest continuously operating life insurer in Hong Kong. We're proud of our commitment to this city and will continue to invest in our people and our operations as we celebrate our 125th anniversary here. With our presence in nine of the 11 GBA cities and our diversified product range,we look forward to serving the health,protection and retirement needs of our GBA customers and helping them live every day better," said Mr. Green.

Manulife Hong Kong today announced its fourth quarter and full-year 2021 financial results. Present at the media briefing were Damien Green,Chief Executive Officer (left) and Wilton Kee,Chief Financial Officer (right).

About Manulife Hong Kong

Manulife Hong Kong,through Manulife International Holdings Limited,owns Manulife (International) Limited,Manulife Investment Management (Hong Kong) Limited and Manulife Provident Funds Trust Company Limited. As a member of the Manulife group of companies,Manulife Hong Kong offers a diverse range of protection and wealth products and services to individual and corporate customers in Hong Kong and Macau.

About Manulife

Manulife Financial Corporation is a leading international financial services provider that helps people make their decisions easier and lives better. With our global headquarters inToronto,Canada,we provide financial advice and insurance,operating as Manulife acrossCanada,Asia,andEurope,and primarily asJohn Hancockinthe United States. Through Manulife Investment Management,the global brand for our global wealth and asset management segment,we serve individuals,institutions and retirement plan members worldwide. Our principal operations are inAsiaandCanada,andthe United States,where we have served customers for more than 155 years. We trade as 'MFC' on theToronto,New York,and the Philippine stock exchanges and under '945' inHong Kong. In the previous 12 months we madeCAD$31.8 billionin payments to our customers.

Not all offerings are available in all jurisdictions. For additional information,please visitmanulife.com.

Notes:

i. Manulife Hong Kong includes all our Hong Kong businesses including insurance,insurance-based wealth accumulation products,and our wealth and asset management businesses.

ii. All percentage changes are stated on a year-over-year basis,except for MPF market share.

iii. Core earnings for Manulife Hong Kong include insurance and insurance-based wealth accumulation products,and exclude our wealth and asset management businesses. Core earnings is a non-GAAP financial measure. For full definition of core earnings,see "Non-GAAP and Other Financial Measures" in Manulife Financial Corporation's 2021 Management's Discussion and Analysis.

iv. Annualized premium equivalent ("APE") sales are presented to provide consistency of scope for NBV disclosures and industry practice. APE sales consist of insurance and insurance-based wealth accumulation products,and exclude our wealth and asset management businesses. They comprise 100% of regular premiums/deposits sales and 10% of single premiums/deposits sales.

v. New business value ("NBV") is the change in embedded value as a result of sales in the reporting period. NBV is calculated as the present value of shareholders' interests in expected future distributable earnings,after the cost of capital,on actual new business sold in the period using assumptions that are consistent with the assumptions used in the calculation of embedded value. NBV excludes businesses with immaterial insurance risks,such as Hong Kong's wealth and asset management businesses. NBV is a useful metric to evaluate the value created by Manulife Hong Kong's new business franchise.

vi. MPF market share is measured by share of assets under management and estimated net cash flows by scheme sponsor. Source: Mercer MPF Market Shares Report as at December 31,2021.