July 24th, 2024

Manulife boosts key profit target at investor day in Hong Kong

By The Canadian Press on June 25, 2024.

Signage is seen on Manulife Financial Corp.'s office tower in Toronto, Tuesday, Feb. 11, 2020. THE CANADIAN PRESS/Cole Burston

Manulife Financial Corp. says it has boosted a key profitability target as it hosts its first investor day in Asia since 2017.

The insurance giant says it has increased its core return on equity target to at least 18 per cent by 2027, up from its current target of 15 per cent.

The company says it has also increased its target for the amount of cash it returns to shareholders to $22 billion for the next three years, up from the $18.4 billion for the past three.

Speaking at the investor day in Hong Kong, chief executive Roy Gori says the higher targets come after the company has gone through a significant transformation where it has off-loaded risk and is well placed to capitalize on global trends.

Gori says the insurer, which been operating in Asia since 1897, sees tremendous potential in the region as its middle class is set to grow to 3.5 billion by 2030, up from two billion today.

He says the company will also benefit from the expected doubling of the global population of people over age 65 by 2050, and the company’s scale will allow it to adapt well to the increasing push to consumer digitization.

This report by The Canadian Press was first published June 25, 2024.

Companies in this story: (TSX:MFC)

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