SlideShare a Scribd company logo
1 of 180
Download to read offline
Our Vision                            Our Values
                                                                                                                                    To be the most professional           	P rofessionalism
                                                                                                                                    financial services organization
                                                                                                                                                                          	R eal Value to our Customers
                                                                                                                                    in the world, providing strong,
                                                                                                   Manulife Financial Corporation
                                                                                                                                    reliable, trustworthy and             	 I ntegrity
                                                                                                   2012 Annual Report
                                                                                                                                    forward-thinking solutions
                                                                                                                                                                          	D emonstrated Financial Strength
                                                                                                   Annual Meeting May 2nd, 2013     for our clients’ most significant




                                               MANULIFE FINANCIAL CORPORATION 2012 Annual Report
                                                                                                                                    financial decisions.                  	E mployer of Choice



                                                                                                                                    Growth Strategy
                                                                                                                                    	 	   Develop our Asian opportunity to the fullest.
                                                                                                                                    	 	   Grow our wealth and asset management businesses
                                                                                                                                    		    in the U.S., Canada and Asia.
                                                                                                                                    	 	   Continue to build our balanced Canadian franchise.
                                                                                                                                    	 	   Continue to grow higher-ROE, lower risk U.S. businesses.




                                                                                                   Growth                           Enterprise Priorities
                                                                                                                                    	 	   Become a global leader in retirement solutions and maintain 	

                                                                                                   with Discipline                  		    a leadership position in our protection businesses.
                                                                                                                                    	 	 Significantly extend our customer reach by growing and
                                                                                                                                    		  diversifying our distribution channels.
                                                                                                                                    	 	 Build meaningful competitive advantage by leveraging our
                                                                                                                                    		  global scale, our global capabilities, and our local market 		
                                                                                                                                    		  focus to achieve operational excellence.
                                                                                                                                    	 	 Leverage technology to enable competitive differentiation
                                                                                                                                    		  in attracting, servicing and retaining customers.
                                                                                                                                    	 	 Attain leading brand rankings across protection and wealth
                                                                                                                                    		  in key markets.
                                                                                                                                    	 	 Build and leverage our status as an employer of choice
                                                                                                                                    		  to attract and retain industry leading talent.
                                                                                                                                    	 	 Maintain capital above our targets and manage risks within
                                                                                                                                    		  our appetite at all times.



                                                                                                                                    Table of Contents
                                                                                                                                    	2	   Chair of the Board’s Message
                                                                                                                                    	4	   CEO’s Message to Shareholders
                                                                                                                                    	9	   Management’s Discussion and Analysis
                                                                                                                                    81	 Consolidated Financial Statements
                                                                                                                                    89	 Notes to Consolidated Financial Statements
                                                                                                                                    172	 Board of Directors
                                                                                                                                    173	 Company Officers
                                                                                                                                    175	 Glossary of Terms


                                     IR3823E




MANULIFE_AR2012_COVER_Mar13.indd 1                                                                                                                                                                    13-03-13 4:13 PM
Manulife Financial
         An International, Diversified Business                                                                 In Asia                                                                                                      In Canada                                                                                         In The United States                                                     Asset Management
                                                                                                                                                                                                                                                                                                                                                                                                        As the asset management arm of the Company, Manulife Asset Management
                                                                                                                                                                                                                                                                                                                                                                                                        offers a comprehensive array of investment products and solutions to meet
                                                                                                                                                                                                                                                                                                                                                                                                        the needs of affiliated and non-affiliated fund companies, pension plans,
                                                  2012 CORE EARNINGS1,2

                                                                                                                                                        33%                                                                                                           29%                                                                                       38%
                                                                                                                                                                                                                                                                                                                                                                                                        foundations, endowments and financial institutions. We empower our
                                                       ASIA 33%             CANADA 29%                                                                                                                                                                                                                                                                                                                  investment professionals to deliver superior long-term performance based
                                                       U.S. 38% 	                                                                                                                                                                                                                                                                                                                                       on proprietary fundamental research in a deeply resourced, team-based,
                                                                                                                                                        $963 million                                                                                                  $835 million                                                                              $1, 085 million                         highly disciplined and service-oriented operation. Manulife Asset Manage-
                                                  C$2,883 million
                                                                                                                                                                                                                                                                                                                                                                                                        ment has developed significantly since 2001, emerging as a Top 40 global
                                                  (excludes Corporate and Other (loss of $696 million))                                                                                                                                                                                                                                                                                                 asset manager7 and rising.


                                                                                                                                                                                                                                                                                                                                                                                                        Investment Capabilities
         Manulife Financial is a leading Canada-based financial services group with                         Manulife Financial has operated in Asia since 1897, beginning in Hong Kong.                                  Serving one in five Canadians, we are a leading financial services organiza-                      Our U.S. Insurance operation operates under the John Hancock brand           Manulife Asset Management has more than 325 Investment Professionals
         principal operations in Asia, Canada and the United States. Clients look to                        Today, as a pan-Asian financial services company, we have insurance and asset                                tion offering a diverse range of protection, estate planning, investment and                      and provides life and long-term care insurance products and services         with offices in 17 countries and territories addressing the needs of our
         Manulife for strong, reliable, trustworthy and forward-thinking solutions for                      management operations in 11 countries and territories, including Hong Kong,                                  banking solutions through a diversified multi-channel distribution network.                       to select markets. John Hancock in the U.S. also offers a broad range of     clients around the world. We are on the ground in all the countries in which
         their most significant financial decisions.                                                        the Philippines, Singapore, Indonesia, Taiwan, China, Japan, Vietnam, Malaysia,                                                                                                                                personal and family oriented wealth management products and services         we operate, extracting value through our local knowledge and sharing
                                                                                                            Thailand, and Cambodia. In 2012, we expanded into the 11th territory and became                              We provide retail solutions to individuals and business owners, sold mainly                       focused on individuals and business markets, as well as institutional ori-   information throughout our global network. Our high-performing
         Manulife Financial has a significant global presence operating in the world’s                      the first wholly-owned foreign life insurer to commence operations in Cambo-                                 through independent advisors. Group life, health, disability and retire-                          ented products for employee benefit plan funding solutions.                  investment teams provide our clients with a full spectrum of products and
         largest economies, with internationally recognized brands which have stood                         dia. We offer a diverse portfolio of protection, savings and wealth management                               ment solutions are marketed to Canadian employers through consultants,                                                                                                         solutions organized into three major asset class groupings:
         for financial strength and integrity for more than a century.                                      products and services to meet the needs of individuals and corporate customers.                              brokers and independent advisors. We also provide international employee                          We distribute our products through a multi-channel network, including
                                                                                                            We distribute our products through a multi-channel platform across the                                       benefits management to multinational corporations. Life, health and specialty                     brokerage general agents, producer groups, banks, wirehouses and             Public Markets
         With market-leading positions in Asia, Canada and the United States, we                            region, including more than fifty-three thousand tied agents, bank partners,                                 products, such as travel insurance, are also offered through alternative                          broker dealers as well as John Hancock Financial Network (“JHFN”), a
         leverage a diverse business platform that offers a range of financial products                                                                                                                                                                                                                                                                                                                 	    	Equity	
                                                                                                            independent agents, and financial advisors.                                                                  distribution channels.                                                                            national network of independent career agencies across the U.S.
         in both developed and developing markets around the world.                                                                                                                                                                                                                                                                                                                                     	    	Fixed Income	
                                                                                                            Products and Services                                                                                        Products and Services                                                                             Products and Services
         Our international network of employees, agents and distribution partners                                                                                                                                        	      	 Individual life insurance                                                                	      	 Individual life insurance                                           Real Assets
         offers financial protection and wealth management products and services                            	      	 Individual life insurance
                                                                                                                                                                                                                         	      	 Living benefits insurance                                                                	      	 Long-term care                                                      	    	Hancock Timber
         to millions of clients. We also provide asset management services to                               	      	 Group life and health
                                                                                                            	      	 Hospital coverage                                                                                   	      	 Mutual funds                                                                             	      	 Mutual funds                                                        	    	Hancock Agricultural
         institutional customers.
                                                                                                            	      	 Mutual funds                                                                                        	      	 Private wealth management                                                                	      	 529 College Savings plans                                           	    	Hancock Renewable Energy
               	 2nd largest North American Insurer3                                                        	      	 Variable & fixed annuities                                                                          	      	 Variable & fixed annuities                                                               	      	 401(k) Retirement Savings plans                                     	    	Manulife Real Estate
               	 11th largest Global Insurer3                                                               	      	 Group retirement		                                                                                  	      	 Guaranteed interest contracts
                                                                                                                                                                                                                         	      	 High interest savings accounts                                                           Manulife started U.S. operations in 1903                                     Asset Allocation Solutions	
               	 Operating in 3 Key Geographies                                                             Operating in 11 countries and territories                                                                                                                                                                      John Hancock was founded in 1862, and merged with Manulife in 2004
               	 Founded in 1887                                                                                                                                                                                         	      	 Mortgages & investment loans                                                                                                                                          	   	 Strategic & Tactical
                                                                                                            Expanded into Cambodia, during 2012                                                                          	      	 Group life, health, disability & retirement
                                                                                                            Started Asia Operations in 1897                                                                                                                                                                                Sales Rank Data4                                                             	    	Multi-asset Funds	
                                                                                                                                                                                                                         	      	 Travel insurance                                                                         	    #1	 Small Case (<$10M) 401(k) plans                                     	    	Customized Solutions
                                                                                                            Sales Rank Data4                                                                                             	      	 Creditor insurance                                                                       	    #5	 Individual Life Insurance
                                                                                                                                                                                                                         	      	 International employee benefits management                                               	    #6	 Retail Long-Term Care Insurance
                                                                                                            	     #2	 Hong Kong Pension
                                                                                                            	     #2	 China Insurance                                                                                    Founded in 1887                                                                                   	    #7	 Structured Settlements                                              Assets Under Management
                                                                                                            	     #3	 Vietnam Insurance                                                                                                                                                                                    	    #9	 Mutual Funds6                                                       We manage a wide range of assets diversified by geography, product and
                                                                                                            	     #5	 Philippines Insurance                                                                              Sales Rank Data4                                                                                                                                                               asset class.
                                                                                                            	     #8	 Singapore Insurance                                                                                	    #1	 Defined Contribution Group Pensions
            C$ millions, unless stated and per share data     2012        2011       % change     5         	     #8	 Hong Kong Insurance                                                                                	    #1	 Group Benefits
                                                                                                            	     #9	 Indonesia Insurance                                                                                	    #2	 Individual Segregated Funds
            Funds under Management1 (billion) 	              $531.9	      $499.7	         9%                                                                                                                             	    #2	 Individual Life and Living Benefits
                                                                                                                                                                                                                                                                                                                                                                                                                                              Total C$238 billion
            Insurance Sales1 	                               $3,349	      $2,507	        33%
                                                                                                                                                                                                                                                                                                                                                                                                                                                  CANADA 16%
            Wealth Management Sales1	                        $35,940	$34,299	 4%                                                                                                                                                                                                                                                                                                                                                                  U.S. 62%
                                                                                                                                                                                                                                                                                                                                                                                                                                                  ASIA 21%
            Core Earnings1	                                  $2,187	$2,169	 1%                                  C$ millions, unless stated	                2012	 2011	% change5                                              C$ millions, unless stated	                2012	 2011	% change5                                   C$ millions, unless stated	       2012	 2011	% change5
                                                                                                                                                                                                                                                                                                                                                                                                                                                  EUROPE AND OTHER 1%
            Common Shareholders’ net income	                 $1,624	$44	                   –                Funds under Management (billion) 	
                                                                                                                                        1
                                                                                                                                                           $77.7	       $71.4	        16%                                Funds under Management (billion) 	
                                                                                                                                                                                                                                                     1
                                                                                                                                                                                                                                                                        $133.2	      $122.1	        9%                     Funds under Management (billion) 	
                                                                                                                                                                                                                                                                                                                                                     1
                                                                                                                                                                                                                                                                                                                                                                 $292.6	   $279.6	     7%

            Basic Earnings per common share 	 1
                                                             $0.90	$0.02	                  –                Insurance Sales 	  1
                                                                                                                                                           $1,440	      $1,230	       16%                                Insurance Sales 	 1
                                                                                                                                                                                                                                                                        $1,310	      $658	         99%                     Insurance Sales 	 1
                                                                                                                                                                                                                                                                                                                                                                 $599	     $619	      (4%)

            Return on Common Shareholders’ Equity	           7.1%	0.2%	                    –                Wealth Management Sales1	                      $5,690	$4,131	 36%                                            Wealth Management Sales1	                      $10,057	$10,784	 (7%)                              Wealth Management Sales1	             $20,193	$19,384	 3%

            Book Value per Common Share  1	
                                                             $12.56	$12.44	 1%                              Core Earnings 	1
                                                                                                                                                           $963	$938	 3%                                                 Core Earnings 	
                                                                                                                                                                                                                                       1
                                                                                                                                                                                                                                                                        $835	$849	 (2%)                                    Core Earnings 	
                                                                                                                                                                                                                                                                                                                                         1
                                                                                                                                                                                                                                                                                                                                                                 $1,085	$1,005	 8%



                                                                                                          1 Non-GAAP measure. The Chair of the Board’s Message and the Message to Shareholders from the CEO also include non-GAAP measures. See “Performance and Non-GAAP Measures” on page 75. 2 For more
                                                                                                          information on core earnings, see page 11. 3 Market Capitalization as of December 31, 2012. 4 Sales rank from most recently available data. See “Manulife Financial – Financial Strength Fact Sheet” and “John
                                                                                                          Hancock Fact Sheet” for further disclosures, both available at manulife.com. 5 Percent change for Funds Under Management and sales of insurance and wealth management are presented on a constant currency
                                                                                                          basis. 6 Net sales market rank per Strategic Insight. 7 Source: Pensions and Investments’ “Top Money Managers” survey, based on worldwide institutional assets at December 31, 2011.                                                                                                                                                        2012 ANNUAL REPORT 1




MANULIFE_AR2012_COVER_Mar13.indd 2                                                                                                                                                                                                                                                                                                                                                                                                                                           13-03-13 4:13 PM
Manulife Financial
         An International, Diversified Business                                                                 In Asia                                                                                                      In Canada                                                                                         In The United States                                                     Asset Management
                                                                                                                                                                                                                                                                                                                                                                                                        As the asset management arm of the Company, Manulife Asset Management
                                                                                                                                                                                                                                                                                                                                                                                                        offers a comprehensive array of investment products and solutions to meet
                                                                                                                                                                                                                                                                                                                                                                                                        the needs of affiliated and non-affiliated fund companies, pension plans,
                                                  2012 CORE EARNINGS1,2

                                                                                                                                                        33%                                                                                                           29%                                                                                       38%
                                                                                                                                                                                                                                                                                                                                                                                                        foundations, endowments and financial institutions. We empower our
                                                       ASIA 33%             CANADA 29%                                                                                                                                                                                                                                                                                                                  investment professionals to deliver superior long-term performance based
                                                       U.S. 38% 	                                                                                                                                                                                                                                                                                                                                       on proprietary fundamental research in a deeply resourced, team-based,
                                                                                                                                                        $963 million                                                                                                  $835 million                                                                              $1, 085 million                         highly disciplined and service-oriented operation. Manulife Asset Manage-
                                                  C$2,883 million
                                                                                                                                                                                                                                                                                                                                                                                                        ment has developed significantly since 2001, emerging as a Top 40 global
                                                  (excludes Corporate and Other (loss of $696 million))                                                                                                                                                                                                                                                                                                 asset manager7 and rising.


                                                                                                                                                                                                                                                                                                                                                                                                        Investment Capabilities
         Manulife Financial is a leading Canada-based financial services group with                         Manulife Financial has operated in Asia since 1897, beginning in Hong Kong.                                  Serving one in five Canadians, we are a leading financial services organiza-                      Our U.S. Insurance operation operates under the John Hancock brand           Manulife Asset Management has more than 325 Investment Professionals
         principal operations in Asia, Canada and the United States. Clients look to                        Today, as a pan-Asian financial services company, we have insurance and asset                                tion offering a diverse range of protection, estate planning, investment and                      and provides life and long-term care insurance products and services         with offices in 17 countries and territories addressing the needs of our
         Manulife for strong, reliable, trustworthy and forward-thinking solutions for                      management operations in 11 countries and territories, including Hong Kong,                                  banking solutions through a diversified multi-channel distribution network.                       to select markets. John Hancock in the U.S. also offers a broad range of     clients around the world. We are on the ground in all the countries in which
         their most significant financial decisions.                                                        the Philippines, Singapore, Indonesia, Taiwan, China, Japan, Vietnam, Malaysia,                                                                                                                                personal and family oriented wealth management products and services         we operate, extracting value through our local knowledge and sharing
                                                                                                            Thailand, and Cambodia. In 2012, we expanded into the 11th territory and became                              We provide retail solutions to individuals and business owners, sold mainly                       focused on individuals and business markets, as well as institutional ori-   information throughout our global network. Our high-performing
         Manulife Financial has a significant global presence operating in the world’s                      the first wholly-owned foreign life insurer to commence operations in Cambo-                                 through independent advisors. Group life, health, disability and retire-                          ented products for employee benefit plan funding solutions.                  investment teams provide our clients with a full spectrum of products and
         largest economies, with internationally recognized brands which have stood                         dia. We offer a diverse portfolio of protection, savings and wealth management                               ment solutions are marketed to Canadian employers through consultants,                                                                                                         solutions organized into three major asset class groupings:
         for financial strength and integrity for more than a century.                                      products and services to meet the needs of individuals and corporate customers.                              brokers and independent advisors. We also provide international employee                          We distribute our products through a multi-channel network, including
                                                                                                            We distribute our products through a multi-channel platform across the                                       benefits management to multinational corporations. Life, health and specialty                     brokerage general agents, producer groups, banks, wirehouses and             Public Markets
         With market-leading positions in Asia, Canada and the United States, we                            region, including more than fifty-three thousand tied agents, bank partners,                                 products, such as travel insurance, are also offered through alternative                          broker dealers as well as John Hancock Financial Network (“JHFN”), a
         leverage a diverse business platform that offers a range of financial products                                                                                                                                                                                                                                                                                                                 	    	Equity	
                                                                                                            independent agents, and financial advisors.                                                                  distribution channels.                                                                            national network of independent career agencies across the U.S.
         in both developed and developing markets around the world.                                                                                                                                                                                                                                                                                                                                     	    	Fixed Income	
                                                                                                            Products and Services                                                                                        Products and Services                                                                             Products and Services
         Our international network of employees, agents and distribution partners                                                                                                                                        	      	 Individual life insurance                                                                	      	 Individual life insurance                                           Real Assets
         offers financial protection and wealth management products and services                            	      	 Individual life insurance
                                                                                                                                                                                                                         	      	 Living benefits insurance                                                                	      	 Long-term care                                                      	    	Hancock Timber
         to millions of clients. We also provide asset management services to                               	      	 Group life and health
                                                                                                            	      	 Hospital coverage                                                                                   	      	 Mutual funds                                                                             	      	 Mutual funds                                                        	    	Hancock Agricultural
         institutional customers.
                                                                                                            	      	 Mutual funds                                                                                        	      	 Private wealth management                                                                	      	 529 College Savings plans                                           	    	Hancock Renewable Energy
               	 2nd largest North American Insurer3                                                        	      	 Variable & fixed annuities                                                                          	      	 Variable & fixed annuities                                                               	      	 401(k) Retirement Savings plans                                     	    	Manulife Real Estate
               	 11th largest Global Insurer3                                                               	      	 Group retirement		                                                                                  	      	 Guaranteed interest contracts
                                                                                                                                                                                                                         	      	 High interest savings accounts                                                           Manulife started U.S. operations in 1903                                     Asset Allocation Solutions	
               	 Operating in 3 Key Geographies                                                             Operating in 11 countries and territories                                                                                                                                                                      John Hancock was founded in 1862, and merged with Manulife in 2004
               	 Founded in 1887                                                                                                                                                                                         	      	 Mortgages & investment loans                                                                                                                                          	   	 Strategic & Tactical
                                                                                                            Expanded into Cambodia, during 2012                                                                          	      	 Group life, health, disability & retirement
                                                                                                            Started Asia Operations in 1897                                                                                                                                                                                Sales Rank Data4                                                             	    	Multi-asset Funds	
                                                                                                                                                                                                                         	      	 Travel insurance                                                                         	    #1	 Small Case (<$10M) 401(k) plans                                     	    	Customized Solutions
                                                                                                            Sales Rank Data4                                                                                             	      	 Creditor insurance                                                                       	    #5	 Individual Life Insurance
                                                                                                                                                                                                                         	      	 International employee benefits management                                               	    #6	 Retail Long-Term Care Insurance
                                                                                                            	     #2	 Hong Kong Pension
                                                                                                            	     #2	 China Insurance                                                                                    Founded in 1887                                                                                   	    #7	 Structured Settlements                                              Assets Under Management
                                                                                                            	     #3	 Vietnam Insurance                                                                                                                                                                                    	    #9	 Mutual Funds6                                                       We manage a wide range of assets diversified by geography, product and
                                                                                                            	     #5	 Philippines Insurance                                                                              Sales Rank Data4                                                                                                                                                               asset class.
                                                                                                            	     #8	 Singapore Insurance                                                                                	    #1	 Defined Contribution Group Pensions
            C$ millions, unless stated and per share data     2012        2011       % change     5         	     #8	 Hong Kong Insurance                                                                                	    #1	 Group Benefits
                                                                                                            	     #9	 Indonesia Insurance                                                                                	    #2	 Individual Segregated Funds
            Funds under Management1 (billion) 	              $531.9	      $499.7	         9%                                                                                                                             	    #2	 Individual Life and Living Benefits
                                                                                                                                                                                                                                                                                                                                                                                                                                              Total C$238 billion
            Insurance Sales1 	                               $3,349	      $2,507	        33%
                                                                                                                                                                                                                                                                                                                                                                                                                                                  CANADA 16%
            Wealth Management Sales1	                        $35,940	$34,299	 4%                                                                                                                                                                                                                                                                                                                                                                  U.S. 62%
                                                                                                                                                                                                                                                                                                                                                                                                                                                  ASIA 21%
            Core Earnings1	                                  $2,187	$2,169	 1%                                  C$ millions, unless stated	                2012	 2011	% change5                                              C$ millions, unless stated	                2012	 2011	% change5                                   C$ millions, unless stated	       2012	 2011	% change5
                                                                                                                                                                                                                                                                                                                                                                                                                                                  EUROPE AND OTHER 1%
            Common Shareholders’ net income	                 $1,624	$44	                   –                Funds under Management (billion) 	
                                                                                                                                        1
                                                                                                                                                           $77.7	       $71.4	        16%                                Funds under Management (billion) 	
                                                                                                                                                                                                                                                     1
                                                                                                                                                                                                                                                                        $133.2	      $122.1	        9%                     Funds under Management (billion) 	
                                                                                                                                                                                                                                                                                                                                                     1
                                                                                                                                                                                                                                                                                                                                                                 $292.6	   $279.6	     7%

            Basic Earnings per common share 	 1
                                                             $0.90	$0.02	                  –                Insurance Sales 	  1
                                                                                                                                                           $1,440	      $1,230	       16%                                Insurance Sales 	 1
                                                                                                                                                                                                                                                                        $1,310	      $658	         99%                     Insurance Sales 	 1
                                                                                                                                                                                                                                                                                                                                                                 $599	     $619	      (4%)

            Return on Common Shareholders’ Equity	           7.1%	0.2%	                    –                Wealth Management Sales1	                      $5,690	$4,131	 36%                                            Wealth Management Sales1	                      $10,057	$10,784	 (7%)                              Wealth Management Sales1	             $20,193	$19,384	 3%

            Book Value per Common Share  1	
                                                             $12.56	$12.44	 1%                              Core Earnings 	1
                                                                                                                                                           $963	$938	 3%                                                 Core Earnings 	
                                                                                                                                                                                                                                       1
                                                                                                                                                                                                                                                                        $835	$849	 (2%)                                    Core Earnings 	
                                                                                                                                                                                                                                                                                                                                         1
                                                                                                                                                                                                                                                                                                                                                                 $1,085	$1,005	 8%



                                                                                                          1 Non-GAAP measure. The Chair of the Board’s Message and the Message to Shareholders from the CEO also include non-GAAP measures. See “Performance and Non-GAAP Measures” on page 75. 2 For more
                                                                                                          information on core earnings, see page 11. 3 Market Capitalization as of December 31, 2012. 4 Sales rank from most recently available data. See “Manulife Financial – Financial Strength Fact Sheet” and “John
                                                                                                          Hancock Fact Sheet” for further disclosures, both available at manulife.com. 5 Percent change for Funds Under Management and sales of insurance and wealth management are presented on a constant currency
                                                                                                          basis. 6 Net sales market rank per Strategic Insight. 7 Source: Pensions and Investments’ “Top Money Managers” survey, based on worldwide institutional assets at December 31, 2011.                                                                                                                                                        2012 ANNUAL REPORT 1




MANULIFE_AR2012_COVER_Mar13.indd 2                                                                                                                                                                                                                                                                                                                                                                                                                                           13-03-13 4:13 PM
The result is a Board with deep and
                                                                                                                         relevant expertise spread across a diverse
                                                                                                                                   group of individuals.

                                                                                                             The successes of 2012 are due to the astute                To enhance our ability to articulate and guide        Looking Ahead
                                                                                                         and active leadership of our President and CEO,           long-term strategy, manage enterprise risk, and hold            This marks my last letter as Chair as I and three
                                                                                                         Donald Guloien, and his senior executive team, as         management accountable, we worked to deepen                other directors, Tom d’Aquino, Robert Dineen and
                                                                                                         well as the dedication of thousands of Manulife em-       our knowledge of the changes affecting the global          Hugh Sloan have reached the Board’s mandatory
                                                                                                         ployees and agents across Asia, and in Canada and         financial services industry and of Manulife’s global       retirement age and will be stepping down this year.
       GAIL COOK-BENNETT                                                                                 the U.S. The Board was delighted to see Donald’s          operations. We fostered a Board culture defined by         Each of these Directors has brought his own brand
       CHAIR OF THE BOARD                                                                                contributions recognized when he was named the            active director engagement and one with open and           of wisdom, insight and tenacity to Manulife. I thank
                                                                                                         2012 International Business Executive of the Year by      productive debate.                                         them on behalf of the Board, and our shareholders,
                                                                                                         the Canadian Chamber of Commerce. In a year that               We also focused on human resources and talent         for their contributions.
                                                                                                         marked the 125th anniversary of Manulife and the          development. The importance of ensuring a com-                  Manulife welcomes Sue Dabarno, Jim Prieur and
                                                                                                         150th anniversary of John Hancock, Donald gener-          prehensive strategy to attract, retain and develop         Lesley Daniels Webster to the Board. Respectively,
                                                                                                                                                                   top talent remains a key priority, critical to attaining   they bring deep expertise in wealth management,
                                                                                                         ously and fittingly accepted this honour on behalf of
                                                                                                                                                                   our goals. Equally important is the need to align          insurance and risk management. From among our
                                                                                                         Manulife employees, both past and present.

       Chair of the Board’s Message
                                                                                                                                                                   our people and our compensation structures with            directors, Dick DeWolfe was nominated as our next
                                                                                                         Board Transformation                                      Manulife’s risk appetite, strategic objectives and         Board Chair, after an inclusive and careful process
                                                                                                              The changes in our Board have been designed          pay for performance philosophy. We first introduced        that ensures our Board will experience a seamless
                                                                                                         to ensure its activities and knowledge base are           the balanced scorecard in 2009 and update it               transition to new leadership in May 2013.
                                                                                                         aligned with Manulife’s strategy and our oversight        annually to ensure it reflects our current environ-             It has been a privilege to be Chair of the Board
       To My Fellow Shareholders                                                                         duties. Since 2008, we have appointed ten new
                                                                                                         directors, most with extensive professional and
                                                                                                                                                                   ment and priorities.
                                                                                                                                                                        Since 2008, the Board has been particularly
                                                                                                                                                                                                                              of Manulife at an extraordinary time in its history.
                                                                                                                                                                                                                              I wish to gratefully acknowledge the talent and
                                                                                                         business experience in (and one is a resident of)         focused on matters of risk and its impact on the           dedication of my fellow directors and in particular,
       The global financial crisis that began in 2008 dramatically changed the financial services        Asia. Their combined expertise includes insurance,        Company’s policies and procedures. We sepa-                to express my utmost respect for Donald Guloien’s
                                                                                                         wealth and investment management, risk manage-            rated the Risk and Audit Committee into two new            leadership. Through the upheaval of the financial
       industry. While the crisis was still unfolding, Manulife responded by transforming its business   ment, financial regulation, international accounting
                                                                                                         policy, and investment banking. Several were senior
                                                                                                                                                                   Committees – one for Risk and one for Audit – to
                                                                                                                                                                   increase focus on risk oversight, and have continued
                                                                                                                                                                                                                              crisis and subsequent repositioning of this Company,
                                                                                                                                                                                                                              he made extraordinarily difficult decisions, was open
       and adapting our Board for this new and challenging environment.                                  executives in large organizations, and five of these
                                                                                                         directors, as it happens, are women. The result is
                                                                                                                                                                   to build capabilities in this area.
                                                                                                                                                                        To further increase the productivity of Board
                                                                                                                                                                                                                              in his communications and demonstrated a deep
                                                                                                                                                                                                                              commitment to our Company.
                                                                                                         a Board with deep and relevant expertise spread           time and resources, we have been working with                   I leave Manulife confident that, despite the
                                                                                                         across a diverse group of individuals. This diversity
       We have made significant progress in this regard. Management has stayed focused on the            is a natural outcome of our strategic and disciplined
                                                                                                                                                                   management to develop a new and streamlined
                                                                                                                                                                   Board reporting approach. The new approach
                                                                                                                                                                                                                              challenging economic headwinds of the past few
                                                                                                                                                                                                                              years, our people, financial strength and position in
                                                                                                         search for outstanding talent.                            will allow management to report high-level                 international markets provide a solid foundation for
       needs of our clients and policyholders. We have reduced risk and positioned the Company                An innovative element has been our expanded          information to the Board in a format designed              continued earnings growth.
                                                                                                         approach to director education. Asia is a key geog-       to enhance our discussion and monitoring of the
       for a prolonged period of low interest rates and volatile equity markets. At the same time,       raphy for Manulife; our Asia Division represented
                                                                                                         approximately one third of our core earnings in
                                                                                                                                                                   Company’s businesses.
                                                                                                                                                                        Good governance is critical to our ability to
       the Company has continued to deliver strong performance across product lines, divisions and       2012. It is vital for our directors to have a deep
                                                                                                         understanding of the region and our operations
                                                                                                                                                                   safeguard the long-term interests of shareholders,
                                                                                                                                                                   and earn the continued trust and confidence of
                                                                                                         there. To facilitate this, we host annual working trips   our clients and policyholders. We believe that the
       geographies. As a result, in 2012 we saw renewed confidence from the market in the                during which a small group of directors meets with        measure of good governance is the quality of the           Gail Cook-Bennett
                                                                                                         local management and employees to gain a better           decisions made and the results obtained. In this           Chair Of The Board
       Company’s value and potential. Today, management is focusing on growth with discipline and        understanding of Manulife’s global businesses,            regard, the Board was honoured that Manulife was
                                                                                                         the markets in which we operate and to build              recognized for Best Overall Corporate Governance
       a new set of financial and business objectives for 2016.                                          relationships with our leaders and partners in these
                                                                                                         territories. The 2012 Asia program included visits to
                                                                                                                                                                   in the International category at the 2012
                                                                                                                                                                   Corporate Governance Awards sponsored by
                                                                                                         Singapore, Indonesia and Hong Kong.                       Corporate Secretary, a leading U.S. governance
                                                                                                                                                                   and compliance publication.

       2	         Manulife Financial Corporation 2012 Annual Report                                                                                                                                                Manulife Financial Corporation 2012 Annual Report 	            3




MANULIFE_AR2012_Chair+CEO_Mar13.indd 2-3                                                                                                                                                                                                                                      13-03-13 4:19 PM
The result is a Board with deep and
                                                                                                                         relevant expertise spread across a diverse
                                                                                                                                   group of individuals.

                                                                                                             The successes of 2012 are due to the astute                To enhance our ability to articulate and guide        Looking Ahead
                                                                                                         and active leadership of our President and CEO,           long-term strategy, manage enterprise risk, and hold            This marks my last letter as Chair as I and three
                                                                                                         Donald Guloien, and his senior executive team, as         management accountable, we worked to deepen                other directors, Tom d’Aquino, Robert Dineen and
                                                                                                         well as the dedication of thousands of Manulife em-       our knowledge of the changes affecting the global          Hugh Sloan have reached the Board’s mandatory
                                                                                                         ployees and agents across Asia, and in Canada and         financial services industry and of Manulife’s global       retirement age and will be stepping down this year.
       GAIL COOK-BENNETT                                                                                 the U.S. The Board was delighted to see Donald’s          operations. We fostered a Board culture defined by         Each of these Directors has brought his own brand
       CHAIR OF THE BOARD                                                                                contributions recognized when he was named the            active director engagement and one with open and           of wisdom, insight and tenacity to Manulife. I thank
                                                                                                         2012 International Business Executive of the Year by      productive debate.                                         them on behalf of the Board, and our shareholders,
                                                                                                         the Canadian Chamber of Commerce. In a year that               We also focused on human resources and talent         for their contributions.
                                                                                                         marked the 125th anniversary of Manulife and the          development. The importance of ensuring a com-                  Manulife welcomes Sue Dabarno, Jim Prieur and
                                                                                                         150th anniversary of John Hancock, Donald gener-          prehensive strategy to attract, retain and develop         Lesley Daniels Webster to the Board. Respectively,
                                                                                                                                                                   top talent remains a key priority, critical to attaining   they bring deep expertise in wealth management,
                                                                                                         ously and fittingly accepted this honour on behalf of
                                                                                                                                                                   our goals. Equally important is the need to align          insurance and risk management. From among our
                                                                                                         Manulife employees, both past and present.

       Chair of the Board’s Message
                                                                                                                                                                   our people and our compensation structures with            directors, Dick DeWolfe was nominated as our next
                                                                                                         Board Transformation                                      Manulife’s risk appetite, strategic objectives and         Board Chair, after an inclusive and careful process
                                                                                                              The changes in our Board have been designed          pay for performance philosophy. We first introduced        that ensures our Board will experience a seamless
                                                                                                         to ensure its activities and knowledge base are           the balanced scorecard in 2009 and update it               transition to new leadership in May 2013.
                                                                                                         aligned with Manulife’s strategy and our oversight        annually to ensure it reflects our current environ-             It has been a privilege to be Chair of the Board
       To My Fellow Shareholders                                                                         duties. Since 2008, we have appointed ten new
                                                                                                         directors, most with extensive professional and
                                                                                                                                                                   ment and priorities.
                                                                                                                                                                        Since 2008, the Board has been particularly
                                                                                                                                                                                                                              of Manulife at an extraordinary time in its history.
                                                                                                                                                                                                                              I wish to gratefully acknowledge the talent and
                                                                                                         business experience in (and one is a resident of)         focused on matters of risk and its impact on the           dedication of my fellow directors and in particular,
       The global financial crisis that began in 2008 dramatically changed the financial services        Asia. Their combined expertise includes insurance,        Company’s policies and procedures. We sepa-                to express my utmost respect for Donald Guloien’s
                                                                                                         wealth and investment management, risk manage-            rated the Risk and Audit Committee into two new            leadership. Through the upheaval of the financial
       industry. While the crisis was still unfolding, Manulife responded by transforming its business   ment, financial regulation, international accounting
                                                                                                         policy, and investment banking. Several were senior
                                                                                                                                                                   Committees – one for Risk and one for Audit – to
                                                                                                                                                                   increase focus on risk oversight, and have continued
                                                                                                                                                                                                                              crisis and subsequent repositioning of this Company,
                                                                                                                                                                                                                              he made extraordinarily difficult decisions, was open
       and adapting our Board for this new and challenging environment.                                  executives in large organizations, and five of these
                                                                                                         directors, as it happens, are women. The result is
                                                                                                                                                                   to build capabilities in this area.
                                                                                                                                                                        To further increase the productivity of Board
                                                                                                                                                                                                                              in his communications and demonstrated a deep
                                                                                                                                                                                                                              commitment to our Company.
                                                                                                         a Board with deep and relevant expertise spread           time and resources, we have been working with                   I leave Manulife confident that, despite the
                                                                                                         across a diverse group of individuals. This diversity
       We have made significant progress in this regard. Management has stayed focused on the            is a natural outcome of our strategic and disciplined
                                                                                                                                                                   management to develop a new and streamlined
                                                                                                                                                                   Board reporting approach. The new approach
                                                                                                                                                                                                                              challenging economic headwinds of the past few
                                                                                                                                                                                                                              years, our people, financial strength and position in
                                                                                                         search for outstanding talent.                            will allow management to report high-level                 international markets provide a solid foundation for
       needs of our clients and policyholders. We have reduced risk and positioned the Company                An innovative element has been our expanded          information to the Board in a format designed              continued earnings growth.
                                                                                                         approach to director education. Asia is a key geog-       to enhance our discussion and monitoring of the
       for a prolonged period of low interest rates and volatile equity markets. At the same time,       raphy for Manulife; our Asia Division represented
                                                                                                         approximately one third of our core earnings in
                                                                                                                                                                   Company’s businesses.
                                                                                                                                                                        Good governance is critical to our ability to
       the Company has continued to deliver strong performance across product lines, divisions and       2012. It is vital for our directors to have a deep
                                                                                                         understanding of the region and our operations
                                                                                                                                                                   safeguard the long-term interests of shareholders,
                                                                                                                                                                   and earn the continued trust and confidence of
                                                                                                         there. To facilitate this, we host annual working trips   our clients and policyholders. We believe that the
       geographies. As a result, in 2012 we saw renewed confidence from the market in the                during which a small group of directors meets with        measure of good governance is the quality of the           Gail Cook-Bennett
                                                                                                         local management and employees to gain a better           decisions made and the results obtained. In this           Chair Of The Board
       Company’s value and potential. Today, management is focusing on growth with discipline and        understanding of Manulife’s global businesses,            regard, the Board was honoured that Manulife was
                                                                                                         the markets in which we operate and to build              recognized for Best Overall Corporate Governance
       a new set of financial and business objectives for 2016.                                          relationships with our leaders and partners in these
                                                                                                         territories. The 2012 Asia program included visits to
                                                                                                                                                                   in the International category at the 2012
                                                                                                                                                                   Corporate Governance Awards sponsored by
                                                                                                         Singapore, Indonesia and Hong Kong.                       Corporate Secretary, a leading U.S. governance
                                                                                                                                                                   and compliance publication.

       2	         Manulife Financial Corporation 2012 Annual Report                                                                                                                                                Manulife Financial Corporation 2012 Annual Report 	            3




MANULIFE_AR2012_Chair+CEO_Mar13.indd 2-3                                                                                                                                                                                                                                      13-03-13 4:19 PM
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2
2012  mfc_ar_test2

More Related Content

What's hot

Wadhawan group corporate presentation
Wadhawan group corporate presentationWadhawan group corporate presentation
Wadhawan group corporate presentationShrikara K M Shri
 
Ge mc kinsey matrix powerpoint presentation slides ppt templates
Ge mc kinsey matrix powerpoint presentation slides ppt templatesGe mc kinsey matrix powerpoint presentation slides ppt templates
Ge mc kinsey matrix powerpoint presentation slides ppt templatesSlideTeam.net
 
Compensation Challenges January 2012 Workspan
Compensation Challenges January 2012 WorkspanCompensation Challenges January 2012 Workspan
Compensation Challenges January 2012 Workspankachori
 
Altura Corporate Identity Transform Your Thinking
Altura Corporate Identity Transform Your ThinkingAltura Corporate Identity Transform Your Thinking
Altura Corporate Identity Transform Your Thinkingchrissmos
 
Ge mc kinsey matrix powerpoint presentation templates
Ge mc kinsey matrix powerpoint presentation templatesGe mc kinsey matrix powerpoint presentation templates
Ge mc kinsey matrix powerpoint presentation templatesSlideTeam.net
 
yahoo annual reports 2001
yahoo annual reports 2001yahoo annual reports 2001
yahoo annual reports 2001finance32
 
Bill Stankiewicz Copy Hd Annual2009
Bill Stankiewicz Copy Hd Annual2009Bill Stankiewicz Copy Hd Annual2009
Bill Stankiewicz Copy Hd Annual2009BillStankiewicz
 
2012 Lean Kanban France Stephen Parry Sense and Respond
2012 Lean Kanban France Stephen Parry Sense and Respond2012 Lean Kanban France Stephen Parry Sense and Respond
2012 Lean Kanban France Stephen Parry Sense and RespondStephen Parry
 
Service Gagnant 9 Spring 2011
Service Gagnant 9 Spring 2011Service Gagnant 9 Spring 2011
Service Gagnant 9 Spring 2011patrickarnaud
 
8 eet1012 e
8 eet1012 e8 eet1012 e
8 eet1012 eIDEE JSC
 
owens & minor F181C306-CD84-4711-A74D-75E5BFE97AA3_2008_AR
owens & minor  F181C306-CD84-4711-A74D-75E5BFE97AA3_2008_ARowens & minor  F181C306-CD84-4711-A74D-75E5BFE97AA3_2008_AR
owens & minor F181C306-CD84-4711-A74D-75E5BFE97AA3_2008_ARfinance33
 
SSON India Summit
SSON India SummitSSON India Summit
SSON India Summitsarahye
 

What's hot (14)

Wadhawan group corporate presentation
Wadhawan group corporate presentationWadhawan group corporate presentation
Wadhawan group corporate presentation
 
Ge mc kinsey matrix powerpoint presentation slides ppt templates
Ge mc kinsey matrix powerpoint presentation slides ppt templatesGe mc kinsey matrix powerpoint presentation slides ppt templates
Ge mc kinsey matrix powerpoint presentation slides ppt templates
 
Compensation Challenges January 2012 Workspan
Compensation Challenges January 2012 WorkspanCompensation Challenges January 2012 Workspan
Compensation Challenges January 2012 Workspan
 
Altura Corporate Identity Transform Your Thinking
Altura Corporate Identity Transform Your ThinkingAltura Corporate Identity Transform Your Thinking
Altura Corporate Identity Transform Your Thinking
 
Ge mc kinsey matrix powerpoint presentation templates
Ge mc kinsey matrix powerpoint presentation templatesGe mc kinsey matrix powerpoint presentation templates
Ge mc kinsey matrix powerpoint presentation templates
 
yahoo annual reports 2001
yahoo annual reports 2001yahoo annual reports 2001
yahoo annual reports 2001
 
Bill Stankiewicz Copy Hd Annual2009
Bill Stankiewicz Copy Hd Annual2009Bill Stankiewicz Copy Hd Annual2009
Bill Stankiewicz Copy Hd Annual2009
 
@GRIAusConf_The Asia Century - Kane Hardlingham
@GRIAusConf_The Asia Century - Kane Hardlingham@GRIAusConf_The Asia Century - Kane Hardlingham
@GRIAusConf_The Asia Century - Kane Hardlingham
 
2012 Lean Kanban France Stephen Parry Sense and Respond
2012 Lean Kanban France Stephen Parry Sense and Respond2012 Lean Kanban France Stephen Parry Sense and Respond
2012 Lean Kanban France Stephen Parry Sense and Respond
 
Service Gagnant 9 Spring 2011
Service Gagnant 9 Spring 2011Service Gagnant 9 Spring 2011
Service Gagnant 9 Spring 2011
 
8 eet1012 e
8 eet1012 e8 eet1012 e
8 eet1012 e
 
owens & minor F181C306-CD84-4711-A74D-75E5BFE97AA3_2008_AR
owens & minor  F181C306-CD84-4711-A74D-75E5BFE97AA3_2008_ARowens & minor  F181C306-CD84-4711-A74D-75E5BFE97AA3_2008_AR
owens & minor F181C306-CD84-4711-A74D-75E5BFE97AA3_2008_AR
 
The future of Finance
The future of FinanceThe future of Finance
The future of Finance
 
SSON India Summit
SSON India SummitSSON India Summit
SSON India Summit
 

Viewers also liked

Employee Health & Financial Wellness approach
Employee Health & Financial Wellness approachEmployee Health & Financial Wellness approach
Employee Health & Financial Wellness approachWarren Handsor
 
Financial Wellness Overview
Financial Wellness OverviewFinancial Wellness Overview
Financial Wellness Overviewgazelle_hbs
 

Viewers also liked (8)

2012 mfc_ar_test4
2012  mfc_ar_test42012  mfc_ar_test4
2012 mfc_ar_test4
 
2012 mfc_ar_test3
2012  mfc_ar_test32012  mfc_ar_test3
2012 mfc_ar_test3
 
2012 mfc_ar_test8
2012  mfc_ar_test82012  mfc_ar_test8
2012 mfc_ar_test8
 
2012 mfc_ar_test7
2012  mfc_ar_test72012  mfc_ar_test7
2012 mfc_ar_test7
 
2012 mfc_ar_test5
2012  mfc_ar_test52012  mfc_ar_test5
2012 mfc_ar_test5
 
Employee Health & Financial Wellness approach
Employee Health & Financial Wellness approachEmployee Health & Financial Wellness approach
Employee Health & Financial Wellness approach
 
Worksite presentation 1
Worksite presentation 1Worksite presentation 1
Worksite presentation 1
 
Financial Wellness Overview
Financial Wellness OverviewFinancial Wellness Overview
Financial Wellness Overview
 

Similar to 2012 mfc_ar_test2

2012 mfc_ar__english
2012  mfc_ar__english2012  mfc_ar__english
2012 mfc_ar__englishBrian Macleod
 
2012 mfc_ar__english
2012  mfc_ar__english2012  mfc_ar__english
2012 mfc_ar__englishJason_W_Smith
 
Mzilakatha Strategic Management Services
Mzilakatha Strategic Management ServicesMzilakatha Strategic Management Services
Mzilakatha Strategic Management Servicesvusmuz
 
Performance appraisal(the gentleman’s three )
Performance appraisal(the gentleman’s three )Performance appraisal(the gentleman’s three )
Performance appraisal(the gentleman’s three )Vikram Dahiya
 
Assured - Uniting Ambition
Assured - Uniting AmbitionAssured - Uniting Ambition
Assured - Uniting Ambitionbiancacolclough
 
Assured - Uniting Ambition
Assured  - Uniting AmbitionAssured  - Uniting Ambition
Assured - Uniting Ambitiondaniblizzard
 
Assured - Uniting Ambition
Assured - Uniting AmbitionAssured - Uniting Ambition
Assured - Uniting AmbitionDavid Axon
 
Assured - Uniting Ambition
Assured - Uniting AmbitionAssured - Uniting Ambition
Assured - Uniting Ambitionlauracope
 
Assured - Uniting Ambition
Assured - Uniting AmbitionAssured - Uniting Ambition
Assured - Uniting Ambitionjohnwigg
 
Assured uniting ambition
Assured   uniting ambitionAssured   uniting ambition
Assured uniting ambitionjasonbates1985
 
Assured - Uniting Ambition
Assured - Uniting AmbitionAssured - Uniting Ambition
Assured - Uniting Ambitionjasminequinlan
 
ecolab ShareholderLetter
ecolab  ShareholderLetterecolab  ShareholderLetter
ecolab ShareholderLetterfinance37
 
Vbmc Practice Overview January 2009
Vbmc Practice Overview   January 2009Vbmc Practice Overview   January 2009
Vbmc Practice Overview January 2009Stephen Neill
 
New compensation models for maximising sales performance ron burke, towers ...
New compensation models for maximising sales performance   ron burke, towers ...New compensation models for maximising sales performance   ron burke, towers ...
New compensation models for maximising sales performance ron burke, towers ...Sales Institute Ireland
 
manpower annual reports 2001
manpower annual reports 2001manpower annual reports 2001
manpower annual reports 2001finance12
 
Restructuring Factsheet
Restructuring FactsheetRestructuring Factsheet
Restructuring Factsheetaibrahim17
 
Customer Experience Approach from Peppers &amp; Rogers Group
Customer Experience Approach from Peppers &amp; Rogers GroupCustomer Experience Approach from Peppers &amp; Rogers Group
Customer Experience Approach from Peppers &amp; Rogers GroupCustomerConsultant
 

Similar to 2012 mfc_ar_test2 (20)

Pdf test
Pdf testPdf test
Pdf test
 
2012 mfc_ar__english
2012  mfc_ar__english2012  mfc_ar__english
2012 mfc_ar__english
 
2012 mfc_ar__english
2012  mfc_ar__english2012  mfc_ar__english
2012 mfc_ar__english
 
Mzilakatha Strategic Management Services
Mzilakatha Strategic Management ServicesMzilakatha Strategic Management Services
Mzilakatha Strategic Management Services
 
First Quarter Analyst Briefing as at 30 June 2012
First Quarter Analyst Briefing as at 30 June 2012First Quarter Analyst Briefing as at 30 June 2012
First Quarter Analyst Briefing as at 30 June 2012
 
Performance appraisal(the gentleman’s three )
Performance appraisal(the gentleman’s three )Performance appraisal(the gentleman’s three )
Performance appraisal(the gentleman’s three )
 
Assured - Uniting Ambition
Assured - Uniting AmbitionAssured - Uniting Ambition
Assured - Uniting Ambition
 
Assured - Uniting Ambition
Assured  - Uniting AmbitionAssured  - Uniting Ambition
Assured - Uniting Ambition
 
Assured - Uniting Ambition
Assured - Uniting AmbitionAssured - Uniting Ambition
Assured - Uniting Ambition
 
Assured - Uniting Ambition
Assured - Uniting AmbitionAssured - Uniting Ambition
Assured - Uniting Ambition
 
Assured - Uniting Ambition
Assured - Uniting AmbitionAssured - Uniting Ambition
Assured - Uniting Ambition
 
Assured uniting ambition
Assured   uniting ambitionAssured   uniting ambition
Assured uniting ambition
 
Assured - Uniting Ambition
Assured - Uniting AmbitionAssured - Uniting Ambition
Assured - Uniting Ambition
 
Balance score card
Balance score cardBalance score card
Balance score card
 
ecolab ShareholderLetter
ecolab  ShareholderLetterecolab  ShareholderLetter
ecolab ShareholderLetter
 
Vbmc Practice Overview January 2009
Vbmc Practice Overview   January 2009Vbmc Practice Overview   January 2009
Vbmc Practice Overview January 2009
 
New compensation models for maximising sales performance ron burke, towers ...
New compensation models for maximising sales performance   ron burke, towers ...New compensation models for maximising sales performance   ron burke, towers ...
New compensation models for maximising sales performance ron burke, towers ...
 
manpower annual reports 2001
manpower annual reports 2001manpower annual reports 2001
manpower annual reports 2001
 
Restructuring Factsheet
Restructuring FactsheetRestructuring Factsheet
Restructuring Factsheet
 
Customer Experience Approach from Peppers &amp; Rogers Group
Customer Experience Approach from Peppers &amp; Rogers GroupCustomer Experience Approach from Peppers &amp; Rogers Group
Customer Experience Approach from Peppers &amp; Rogers Group
 

Recently uploaded

India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023SkillCircle
 
CLMV-Outlook-March-2024-ENG-20240327.pdf
CLMV-Outlook-March-2024-ENG-20240327.pdfCLMV-Outlook-March-2024-ENG-20240327.pdf
CLMV-Outlook-March-2024-ENG-20240327.pdfSCBEICSCB
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklosbeduinpower135
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...mwangimwangi222
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxPrecize Formely Leadoff
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...Antonis Zairis
 
Stock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdfStock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdfMichael Silva
 
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESKumarJayaraman3
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.KumarJayaraman3
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoCoinGecko
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Guillaume Ⓥ Sarlat
 
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAMZakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAMFaisal834049
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.Arifa Saeed
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfAdnet Communications
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingHenry Tapper
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfMichael Silva
 
The CBR Covered Bond Investor Roundtable 2024
The CBR Covered Bond Investor Roundtable 2024The CBR Covered Bond Investor Roundtable 2024
The CBR Covered Bond Investor Roundtable 2024Neil Day
 

Recently uploaded (20)

India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023India Economic Survey Complete for the year of 2022 to 2023
India Economic Survey Complete for the year of 2022 to 2023
 
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
New Monthly Enterprises Survey. Issue 21. (01.2024) Ukrainian Business in War...
 
CLMV-Outlook-March-2024-ENG-20240327.pdf
CLMV-Outlook-March-2024-ENG-20240327.pdfCLMV-Outlook-March-2024-ENG-20240327.pdf
CLMV-Outlook-March-2024-ENG-20240327.pdf
 
Hungarys economy made by Robert Miklos
Hungarys economy   made by Robert MiklosHungarys economy   made by Robert Miklos
Hungarys economy made by Robert Miklos
 
Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024Commercial Bank Economic Capsule - March 2024
Commercial Bank Economic Capsule - March 2024
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
 
Buy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptxBuy and Sell Urban Tots unlisted shares.pptx
Buy and Sell Urban Tots unlisted shares.pptx
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...
 
Stock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdfStock Market Brief Deck for March 26.pdf
Stock Market Brief Deck for March 26.pdf
 
Mobile Money Taxes: Knowledge, Perceptions and Politics: The Case of Ghana
Mobile Money Taxes: Knowledge, Perceptions and Politics: The Case of GhanaMobile Money Taxes: Knowledge, Perceptions and Politics: The Case of Ghana
Mobile Money Taxes: Knowledge, Perceptions and Politics: The Case of Ghana
 
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTESACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
ACCOUNTING FOR BUSINESS.II BRANCH ACCOUNTS NOTES
 
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
ACCOUNTING FOR BUSINESS.II DEPARTMENTAL ACCOUNTS.
 
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGeckoRWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
RWA Report 2024: Rise of Real-World Assets in Crypto | CoinGecko
 
Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024Sarlat Advisory - Corporate Brochure - 2024
Sarlat Advisory - Corporate Brochure - 2024
 
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAMZakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
 
MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.MARKET FAILURE SITUATION IN THE ECONOMY.
MARKET FAILURE SITUATION IN THE ECONOMY.
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB funding
 
Stock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdfStock Market Brief Deck for 3/22/2024.pdf
Stock Market Brief Deck for 3/22/2024.pdf
 
The CBR Covered Bond Investor Roundtable 2024
The CBR Covered Bond Investor Roundtable 2024The CBR Covered Bond Investor Roundtable 2024
The CBR Covered Bond Investor Roundtable 2024
 

2012 mfc_ar_test2

  • 1. Our Vision Our Values To be the most professional P rofessionalism financial services organization R eal Value to our Customers in the world, providing strong, Manulife Financial Corporation reliable, trustworthy and I ntegrity 2012 Annual Report forward-thinking solutions D emonstrated Financial Strength Annual Meeting May 2nd, 2013 for our clients’ most significant MANULIFE FINANCIAL CORPORATION 2012 Annual Report financial decisions. E mployer of Choice Growth Strategy Develop our Asian opportunity to the fullest. Grow our wealth and asset management businesses in the U.S., Canada and Asia. Continue to build our balanced Canadian franchise. Continue to grow higher-ROE, lower risk U.S. businesses. Growth Enterprise Priorities Become a global leader in retirement solutions and maintain with Discipline a leadership position in our protection businesses. Significantly extend our customer reach by growing and diversifying our distribution channels. Build meaningful competitive advantage by leveraging our global scale, our global capabilities, and our local market focus to achieve operational excellence. Leverage technology to enable competitive differentiation in attracting, servicing and retaining customers. Attain leading brand rankings across protection and wealth in key markets. Build and leverage our status as an employer of choice to attract and retain industry leading talent. Maintain capital above our targets and manage risks within our appetite at all times. Table of Contents 2 Chair of the Board’s Message 4 CEO’s Message to Shareholders 9 Management’s Discussion and Analysis 81 Consolidated Financial Statements 89 Notes to Consolidated Financial Statements 172 Board of Directors 173 Company Officers 175 Glossary of Terms IR3823E MANULIFE_AR2012_COVER_Mar13.indd 1 13-03-13 4:13 PM
  • 2. Manulife Financial An International, Diversified Business In Asia In Canada In The United States Asset Management As the asset management arm of the Company, Manulife Asset Management offers a comprehensive array of investment products and solutions to meet the needs of affiliated and non-affiliated fund companies, pension plans, 2012 CORE EARNINGS1,2 33% 29% 38% foundations, endowments and financial institutions. We empower our ASIA 33% CANADA 29% investment professionals to deliver superior long-term performance based U.S. 38% on proprietary fundamental research in a deeply resourced, team-based, $963 million $835 million $1, 085 million highly disciplined and service-oriented operation. Manulife Asset Manage- C$2,883 million ment has developed significantly since 2001, emerging as a Top 40 global (excludes Corporate and Other (loss of $696 million)) asset manager7 and rising. Investment Capabilities Manulife Financial is a leading Canada-based financial services group with Manulife Financial has operated in Asia since 1897, beginning in Hong Kong. Serving one in five Canadians, we are a leading financial services organiza- Our U.S. Insurance operation operates under the John Hancock brand Manulife Asset Management has more than 325 Investment Professionals principal operations in Asia, Canada and the United States. Clients look to Today, as a pan-Asian financial services company, we have insurance and asset tion offering a diverse range of protection, estate planning, investment and and provides life and long-term care insurance products and services with offices in 17 countries and territories addressing the needs of our Manulife for strong, reliable, trustworthy and forward-thinking solutions for management operations in 11 countries and territories, including Hong Kong, banking solutions through a diversified multi-channel distribution network. to select markets. John Hancock in the U.S. also offers a broad range of clients around the world. We are on the ground in all the countries in which their most significant financial decisions. the Philippines, Singapore, Indonesia, Taiwan, China, Japan, Vietnam, Malaysia, personal and family oriented wealth management products and services we operate, extracting value through our local knowledge and sharing Thailand, and Cambodia. In 2012, we expanded into the 11th territory and became We provide retail solutions to individuals and business owners, sold mainly focused on individuals and business markets, as well as institutional ori- information throughout our global network. Our high-performing Manulife Financial has a significant global presence operating in the world’s the first wholly-owned foreign life insurer to commence operations in Cambo- through independent advisors. Group life, health, disability and retire- ented products for employee benefit plan funding solutions. investment teams provide our clients with a full spectrum of products and largest economies, with internationally recognized brands which have stood dia. We offer a diverse portfolio of protection, savings and wealth management ment solutions are marketed to Canadian employers through consultants, solutions organized into three major asset class groupings: for financial strength and integrity for more than a century. products and services to meet the needs of individuals and corporate customers. brokers and independent advisors. We also provide international employee We distribute our products through a multi-channel network, including We distribute our products through a multi-channel platform across the benefits management to multinational corporations. Life, health and specialty brokerage general agents, producer groups, banks, wirehouses and Public Markets With market-leading positions in Asia, Canada and the United States, we region, including more than fifty-three thousand tied agents, bank partners, products, such as travel insurance, are also offered through alternative broker dealers as well as John Hancock Financial Network (“JHFN”), a leverage a diverse business platform that offers a range of financial products Equity independent agents, and financial advisors. distribution channels. national network of independent career agencies across the U.S. in both developed and developing markets around the world. Fixed Income Products and Services Products and Services Products and Services Our international network of employees, agents and distribution partners Individual life insurance Individual life insurance Real Assets offers financial protection and wealth management products and services Individual life insurance Living benefits insurance Long-term care Hancock Timber to millions of clients. We also provide asset management services to Group life and health Hospital coverage Mutual funds Mutual funds Hancock Agricultural institutional customers. Mutual funds Private wealth management 529 College Savings plans Hancock Renewable Energy 2nd largest North American Insurer3 Variable & fixed annuities Variable & fixed annuities 401(k) Retirement Savings plans Manulife Real Estate 11th largest Global Insurer3 Group retirement Guaranteed interest contracts High interest savings accounts Manulife started U.S. operations in 1903 Asset Allocation Solutions Operating in 3 Key Geographies Operating in 11 countries and territories John Hancock was founded in 1862, and merged with Manulife in 2004 Founded in 1887 Mortgages & investment loans Strategic & Tactical Expanded into Cambodia, during 2012 Group life, health, disability & retirement Started Asia Operations in 1897 Sales Rank Data4 Multi-asset Funds Travel insurance #1 Small Case (<$10M) 401(k) plans Customized Solutions Sales Rank Data4 Creditor insurance #5 Individual Life Insurance International employee benefits management #6 Retail Long-Term Care Insurance #2 Hong Kong Pension #2 China Insurance Founded in 1887 #7 Structured Settlements Assets Under Management #3 Vietnam Insurance #9 Mutual Funds6 We manage a wide range of assets diversified by geography, product and #5 Philippines Insurance Sales Rank Data4 asset class. #8 Singapore Insurance #1 Defined Contribution Group Pensions C$ millions, unless stated and per share data 2012 2011 % change 5 #8 Hong Kong Insurance #1 Group Benefits #9 Indonesia Insurance #2 Individual Segregated Funds Funds under Management1 (billion) $531.9 $499.7 9% #2 Individual Life and Living Benefits Total C$238 billion Insurance Sales1 $3,349 $2,507 33% CANADA 16% Wealth Management Sales1 $35,940 $34,299 4% U.S. 62% ASIA 21% Core Earnings1 $2,187 $2,169 1% C$ millions, unless stated 2012 2011 % change5 C$ millions, unless stated 2012 2011 % change5 C$ millions, unless stated 2012 2011 % change5 EUROPE AND OTHER 1% Common Shareholders’ net income $1,624 $44 – Funds under Management (billion) 1 $77.7 $71.4 16% Funds under Management (billion) 1 $133.2 $122.1 9% Funds under Management (billion) 1 $292.6 $279.6 7% Basic Earnings per common share 1 $0.90 $0.02 – Insurance Sales 1 $1,440 $1,230 16% Insurance Sales 1 $1,310 $658 99% Insurance Sales 1 $599 $619 (4%) Return on Common Shareholders’ Equity 7.1% 0.2% – Wealth Management Sales1 $5,690 $4,131 36% Wealth Management Sales1 $10,057 $10,784 (7%) Wealth Management Sales1 $20,193 $19,384 3% Book Value per Common Share 1 $12.56 $12.44 1% Core Earnings 1 $963 $938 3% Core Earnings 1 $835 $849 (2%) Core Earnings 1 $1,085 $1,005 8% 1 Non-GAAP measure. The Chair of the Board’s Message and the Message to Shareholders from the CEO also include non-GAAP measures. See “Performance and Non-GAAP Measures” on page 75. 2 For more information on core earnings, see page 11. 3 Market Capitalization as of December 31, 2012. 4 Sales rank from most recently available data. See “Manulife Financial – Financial Strength Fact Sheet” and “John Hancock Fact Sheet” for further disclosures, both available at manulife.com. 5 Percent change for Funds Under Management and sales of insurance and wealth management are presented on a constant currency basis. 6 Net sales market rank per Strategic Insight. 7 Source: Pensions and Investments’ “Top Money Managers” survey, based on worldwide institutional assets at December 31, 2011. 2012 ANNUAL REPORT 1 MANULIFE_AR2012_COVER_Mar13.indd 2 13-03-13 4:13 PM
  • 3. Manulife Financial An International, Diversified Business In Asia In Canada In The United States Asset Management As the asset management arm of the Company, Manulife Asset Management offers a comprehensive array of investment products and solutions to meet the needs of affiliated and non-affiliated fund companies, pension plans, 2012 CORE EARNINGS1,2 33% 29% 38% foundations, endowments and financial institutions. We empower our ASIA 33% CANADA 29% investment professionals to deliver superior long-term performance based U.S. 38% on proprietary fundamental research in a deeply resourced, team-based, $963 million $835 million $1, 085 million highly disciplined and service-oriented operation. Manulife Asset Manage- C$2,883 million ment has developed significantly since 2001, emerging as a Top 40 global (excludes Corporate and Other (loss of $696 million)) asset manager7 and rising. Investment Capabilities Manulife Financial is a leading Canada-based financial services group with Manulife Financial has operated in Asia since 1897, beginning in Hong Kong. Serving one in five Canadians, we are a leading financial services organiza- Our U.S. Insurance operation operates under the John Hancock brand Manulife Asset Management has more than 325 Investment Professionals principal operations in Asia, Canada and the United States. Clients look to Today, as a pan-Asian financial services company, we have insurance and asset tion offering a diverse range of protection, estate planning, investment and and provides life and long-term care insurance products and services with offices in 17 countries and territories addressing the needs of our Manulife for strong, reliable, trustworthy and forward-thinking solutions for management operations in 11 countries and territories, including Hong Kong, banking solutions through a diversified multi-channel distribution network. to select markets. John Hancock in the U.S. also offers a broad range of clients around the world. We are on the ground in all the countries in which their most significant financial decisions. the Philippines, Singapore, Indonesia, Taiwan, China, Japan, Vietnam, Malaysia, personal and family oriented wealth management products and services we operate, extracting value through our local knowledge and sharing Thailand, and Cambodia. In 2012, we expanded into the 11th territory and became We provide retail solutions to individuals and business owners, sold mainly focused on individuals and business markets, as well as institutional ori- information throughout our global network. Our high-performing Manulife Financial has a significant global presence operating in the world’s the first wholly-owned foreign life insurer to commence operations in Cambo- through independent advisors. Group life, health, disability and retire- ented products for employee benefit plan funding solutions. investment teams provide our clients with a full spectrum of products and largest economies, with internationally recognized brands which have stood dia. We offer a diverse portfolio of protection, savings and wealth management ment solutions are marketed to Canadian employers through consultants, solutions organized into three major asset class groupings: for financial strength and integrity for more than a century. products and services to meet the needs of individuals and corporate customers. brokers and independent advisors. We also provide international employee We distribute our products through a multi-channel network, including We distribute our products through a multi-channel platform across the benefits management to multinational corporations. Life, health and specialty brokerage general agents, producer groups, banks, wirehouses and Public Markets With market-leading positions in Asia, Canada and the United States, we region, including more than fifty-three thousand tied agents, bank partners, products, such as travel insurance, are also offered through alternative broker dealers as well as John Hancock Financial Network (“JHFN”), a leverage a diverse business platform that offers a range of financial products Equity independent agents, and financial advisors. distribution channels. national network of independent career agencies across the U.S. in both developed and developing markets around the world. Fixed Income Products and Services Products and Services Products and Services Our international network of employees, agents and distribution partners Individual life insurance Individual life insurance Real Assets offers financial protection and wealth management products and services Individual life insurance Living benefits insurance Long-term care Hancock Timber to millions of clients. We also provide asset management services to Group life and health Hospital coverage Mutual funds Mutual funds Hancock Agricultural institutional customers. Mutual funds Private wealth management 529 College Savings plans Hancock Renewable Energy 2nd largest North American Insurer3 Variable & fixed annuities Variable & fixed annuities 401(k) Retirement Savings plans Manulife Real Estate 11th largest Global Insurer3 Group retirement Guaranteed interest contracts High interest savings accounts Manulife started U.S. operations in 1903 Asset Allocation Solutions Operating in 3 Key Geographies Operating in 11 countries and territories John Hancock was founded in 1862, and merged with Manulife in 2004 Founded in 1887 Mortgages & investment loans Strategic & Tactical Expanded into Cambodia, during 2012 Group life, health, disability & retirement Started Asia Operations in 1897 Sales Rank Data4 Multi-asset Funds Travel insurance #1 Small Case (<$10M) 401(k) plans Customized Solutions Sales Rank Data4 Creditor insurance #5 Individual Life Insurance International employee benefits management #6 Retail Long-Term Care Insurance #2 Hong Kong Pension #2 China Insurance Founded in 1887 #7 Structured Settlements Assets Under Management #3 Vietnam Insurance #9 Mutual Funds6 We manage a wide range of assets diversified by geography, product and #5 Philippines Insurance Sales Rank Data4 asset class. #8 Singapore Insurance #1 Defined Contribution Group Pensions C$ millions, unless stated and per share data 2012 2011 % change 5 #8 Hong Kong Insurance #1 Group Benefits #9 Indonesia Insurance #2 Individual Segregated Funds Funds under Management1 (billion) $531.9 $499.7 9% #2 Individual Life and Living Benefits Total C$238 billion Insurance Sales1 $3,349 $2,507 33% CANADA 16% Wealth Management Sales1 $35,940 $34,299 4% U.S. 62% ASIA 21% Core Earnings1 $2,187 $2,169 1% C$ millions, unless stated 2012 2011 % change5 C$ millions, unless stated 2012 2011 % change5 C$ millions, unless stated 2012 2011 % change5 EUROPE AND OTHER 1% Common Shareholders’ net income $1,624 $44 – Funds under Management (billion) 1 $77.7 $71.4 16% Funds under Management (billion) 1 $133.2 $122.1 9% Funds under Management (billion) 1 $292.6 $279.6 7% Basic Earnings per common share 1 $0.90 $0.02 – Insurance Sales 1 $1,440 $1,230 16% Insurance Sales 1 $1,310 $658 99% Insurance Sales 1 $599 $619 (4%) Return on Common Shareholders’ Equity 7.1% 0.2% – Wealth Management Sales1 $5,690 $4,131 36% Wealth Management Sales1 $10,057 $10,784 (7%) Wealth Management Sales1 $20,193 $19,384 3% Book Value per Common Share 1 $12.56 $12.44 1% Core Earnings 1 $963 $938 3% Core Earnings 1 $835 $849 (2%) Core Earnings 1 $1,085 $1,005 8% 1 Non-GAAP measure. The Chair of the Board’s Message and the Message to Shareholders from the CEO also include non-GAAP measures. See “Performance and Non-GAAP Measures” on page 75. 2 For more information on core earnings, see page 11. 3 Market Capitalization as of December 31, 2012. 4 Sales rank from most recently available data. See “Manulife Financial – Financial Strength Fact Sheet” and “John Hancock Fact Sheet” for further disclosures, both available at manulife.com. 5 Percent change for Funds Under Management and sales of insurance and wealth management are presented on a constant currency basis. 6 Net sales market rank per Strategic Insight. 7 Source: Pensions and Investments’ “Top Money Managers” survey, based on worldwide institutional assets at December 31, 2011. 2012 ANNUAL REPORT 1 MANULIFE_AR2012_COVER_Mar13.indd 2 13-03-13 4:13 PM
  • 4. The result is a Board with deep and relevant expertise spread across a diverse group of individuals. The successes of 2012 are due to the astute To enhance our ability to articulate and guide Looking Ahead and active leadership of our President and CEO, long-term strategy, manage enterprise risk, and hold This marks my last letter as Chair as I and three Donald Guloien, and his senior executive team, as management accountable, we worked to deepen other directors, Tom d’Aquino, Robert Dineen and well as the dedication of thousands of Manulife em- our knowledge of the changes affecting the global Hugh Sloan have reached the Board’s mandatory ployees and agents across Asia, and in Canada and financial services industry and of Manulife’s global retirement age and will be stepping down this year. GAIL COOK-BENNETT the U.S. The Board was delighted to see Donald’s operations. We fostered a Board culture defined by Each of these Directors has brought his own brand CHAIR OF THE BOARD contributions recognized when he was named the active director engagement and one with open and of wisdom, insight and tenacity to Manulife. I thank 2012 International Business Executive of the Year by productive debate. them on behalf of the Board, and our shareholders, the Canadian Chamber of Commerce. In a year that We also focused on human resources and talent for their contributions. marked the 125th anniversary of Manulife and the development. The importance of ensuring a com- Manulife welcomes Sue Dabarno, Jim Prieur and 150th anniversary of John Hancock, Donald gener- prehensive strategy to attract, retain and develop Lesley Daniels Webster to the Board. Respectively, top talent remains a key priority, critical to attaining they bring deep expertise in wealth management, ously and fittingly accepted this honour on behalf of our goals. Equally important is the need to align insurance and risk management. From among our Manulife employees, both past and present. Chair of the Board’s Message our people and our compensation structures with directors, Dick DeWolfe was nominated as our next Board Transformation Manulife’s risk appetite, strategic objectives and Board Chair, after an inclusive and careful process The changes in our Board have been designed pay for performance philosophy. We first introduced that ensures our Board will experience a seamless to ensure its activities and knowledge base are the balanced scorecard in 2009 and update it transition to new leadership in May 2013. aligned with Manulife’s strategy and our oversight annually to ensure it reflects our current environ- It has been a privilege to be Chair of the Board To My Fellow Shareholders duties. Since 2008, we have appointed ten new directors, most with extensive professional and ment and priorities. Since 2008, the Board has been particularly of Manulife at an extraordinary time in its history. I wish to gratefully acknowledge the talent and business experience in (and one is a resident of) focused on matters of risk and its impact on the dedication of my fellow directors and in particular, The global financial crisis that began in 2008 dramatically changed the financial services Asia. Their combined expertise includes insurance, Company’s policies and procedures. We sepa- to express my utmost respect for Donald Guloien’s wealth and investment management, risk manage- rated the Risk and Audit Committee into two new leadership. Through the upheaval of the financial industry. While the crisis was still unfolding, Manulife responded by transforming its business ment, financial regulation, international accounting policy, and investment banking. Several were senior Committees – one for Risk and one for Audit – to increase focus on risk oversight, and have continued crisis and subsequent repositioning of this Company, he made extraordinarily difficult decisions, was open and adapting our Board for this new and challenging environment. executives in large organizations, and five of these directors, as it happens, are women. The result is to build capabilities in this area. To further increase the productivity of Board in his communications and demonstrated a deep commitment to our Company. a Board with deep and relevant expertise spread time and resources, we have been working with I leave Manulife confident that, despite the across a diverse group of individuals. This diversity We have made significant progress in this regard. Management has stayed focused on the is a natural outcome of our strategic and disciplined management to develop a new and streamlined Board reporting approach. The new approach challenging economic headwinds of the past few years, our people, financial strength and position in search for outstanding talent. will allow management to report high-level international markets provide a solid foundation for needs of our clients and policyholders. We have reduced risk and positioned the Company An innovative element has been our expanded information to the Board in a format designed continued earnings growth. approach to director education. Asia is a key geog- to enhance our discussion and monitoring of the for a prolonged period of low interest rates and volatile equity markets. At the same time, raphy for Manulife; our Asia Division represented approximately one third of our core earnings in Company’s businesses. Good governance is critical to our ability to the Company has continued to deliver strong performance across product lines, divisions and 2012. It is vital for our directors to have a deep understanding of the region and our operations safeguard the long-term interests of shareholders, and earn the continued trust and confidence of there. To facilitate this, we host annual working trips our clients and policyholders. We believe that the geographies. As a result, in 2012 we saw renewed confidence from the market in the during which a small group of directors meets with measure of good governance is the quality of the Gail Cook-Bennett local management and employees to gain a better decisions made and the results obtained. In this Chair Of The Board Company’s value and potential. Today, management is focusing on growth with discipline and understanding of Manulife’s global businesses, regard, the Board was honoured that Manulife was the markets in which we operate and to build recognized for Best Overall Corporate Governance a new set of financial and business objectives for 2016. relationships with our leaders and partners in these territories. The 2012 Asia program included visits to in the International category at the 2012 Corporate Governance Awards sponsored by Singapore, Indonesia and Hong Kong. Corporate Secretary, a leading U.S. governance and compliance publication. 2 Manulife Financial Corporation 2012 Annual Report Manulife Financial Corporation 2012 Annual Report 3 MANULIFE_AR2012_Chair+CEO_Mar13.indd 2-3 13-03-13 4:19 PM
  • 5. The result is a Board with deep and relevant expertise spread across a diverse group of individuals. The successes of 2012 are due to the astute To enhance our ability to articulate and guide Looking Ahead and active leadership of our President and CEO, long-term strategy, manage enterprise risk, and hold This marks my last letter as Chair as I and three Donald Guloien, and his senior executive team, as management accountable, we worked to deepen other directors, Tom d’Aquino, Robert Dineen and well as the dedication of thousands of Manulife em- our knowledge of the changes affecting the global Hugh Sloan have reached the Board’s mandatory ployees and agents across Asia, and in Canada and financial services industry and of Manulife’s global retirement age and will be stepping down this year. GAIL COOK-BENNETT the U.S. The Board was delighted to see Donald’s operations. We fostered a Board culture defined by Each of these Directors has brought his own brand CHAIR OF THE BOARD contributions recognized when he was named the active director engagement and one with open and of wisdom, insight and tenacity to Manulife. I thank 2012 International Business Executive of the Year by productive debate. them on behalf of the Board, and our shareholders, the Canadian Chamber of Commerce. In a year that We also focused on human resources and talent for their contributions. marked the 125th anniversary of Manulife and the development. The importance of ensuring a com- Manulife welcomes Sue Dabarno, Jim Prieur and 150th anniversary of John Hancock, Donald gener- prehensive strategy to attract, retain and develop Lesley Daniels Webster to the Board. Respectively, top talent remains a key priority, critical to attaining they bring deep expertise in wealth management, ously and fittingly accepted this honour on behalf of our goals. Equally important is the need to align insurance and risk management. From among our Manulife employees, both past and present. Chair of the Board’s Message our people and our compensation structures with directors, Dick DeWolfe was nominated as our next Board Transformation Manulife’s risk appetite, strategic objectives and Board Chair, after an inclusive and careful process The changes in our Board have been designed pay for performance philosophy. We first introduced that ensures our Board will experience a seamless to ensure its activities and knowledge base are the balanced scorecard in 2009 and update it transition to new leadership in May 2013. aligned with Manulife’s strategy and our oversight annually to ensure it reflects our current environ- It has been a privilege to be Chair of the Board To My Fellow Shareholders duties. Since 2008, we have appointed ten new directors, most with extensive professional and ment and priorities. Since 2008, the Board has been particularly of Manulife at an extraordinary time in its history. I wish to gratefully acknowledge the talent and business experience in (and one is a resident of) focused on matters of risk and its impact on the dedication of my fellow directors and in particular, The global financial crisis that began in 2008 dramatically changed the financial services Asia. Their combined expertise includes insurance, Company’s policies and procedures. We sepa- to express my utmost respect for Donald Guloien’s wealth and investment management, risk manage- rated the Risk and Audit Committee into two new leadership. Through the upheaval of the financial industry. While the crisis was still unfolding, Manulife responded by transforming its business ment, financial regulation, international accounting policy, and investment banking. Several were senior Committees – one for Risk and one for Audit – to increase focus on risk oversight, and have continued crisis and subsequent repositioning of this Company, he made extraordinarily difficult decisions, was open and adapting our Board for this new and challenging environment. executives in large organizations, and five of these directors, as it happens, are women. The result is to build capabilities in this area. To further increase the productivity of Board in his communications and demonstrated a deep commitment to our Company. a Board with deep and relevant expertise spread time and resources, we have been working with I leave Manulife confident that, despite the across a diverse group of individuals. This diversity We have made significant progress in this regard. Management has stayed focused on the is a natural outcome of our strategic and disciplined management to develop a new and streamlined Board reporting approach. The new approach challenging economic headwinds of the past few years, our people, financial strength and position in search for outstanding talent. will allow management to report high-level international markets provide a solid foundation for needs of our clients and policyholders. We have reduced risk and positioned the Company An innovative element has been our expanded information to the Board in a format designed continued earnings growth. approach to director education. Asia is a key geog- to enhance our discussion and monitoring of the for a prolonged period of low interest rates and volatile equity markets. At the same time, raphy for Manulife; our Asia Division represented approximately one third of our core earnings in Company’s businesses. Good governance is critical to our ability to the Company has continued to deliver strong performance across product lines, divisions and 2012. It is vital for our directors to have a deep understanding of the region and our operations safeguard the long-term interests of shareholders, and earn the continued trust and confidence of there. To facilitate this, we host annual working trips our clients and policyholders. We believe that the geographies. As a result, in 2012 we saw renewed confidence from the market in the during which a small group of directors meets with measure of good governance is the quality of the Gail Cook-Bennett local management and employees to gain a better decisions made and the results obtained. In this Chair Of The Board Company’s value and potential. Today, management is focusing on growth with discipline and understanding of Manulife’s global businesses, regard, the Board was honoured that Manulife was the markets in which we operate and to build recognized for Best Overall Corporate Governance a new set of financial and business objectives for 2016. relationships with our leaders and partners in these territories. The 2012 Asia program included visits to in the International category at the 2012 Corporate Governance Awards sponsored by Singapore, Indonesia and Hong Kong. Corporate Secretary, a leading U.S. governance and compliance publication. 2 Manulife Financial Corporation 2012 Annual Report Manulife Financial Corporation 2012 Annual Report 3 MANULIFE_AR2012_Chair+CEO_Mar13.indd 2-3 13-03-13 4:19 PM