Manulife provides a variety of financial-services products including life insurance, annuities, and investment management, mainly in the US, Canada, and Asia. Its investment management business has achieved adequate scale and is a source of stable earnings and durable cash flows.
MFC is trading within a range we consider fairly valued.
Price
$26.83
Fair Value
$14.60
Uncertainty
Medium
1-Star Price
$88.51
5-Star Price
$21.17
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say
Bulls
Manulife could achieve strong growth in Asia within the next few years, driving overall top-line growth and improving geographic diversification.
Bears
Manulife offers complex insurance products that expose it to underwriting, investment, capital market, and interest-rate risks. Also, a higher general account allocation to non-fixed-income assets can potentially be risky during an elongated economic slowdown.
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Manulife Financial provides life insurance, annuities, and asset management products to individuals and group customers in Canada, the United States, and Asia. Its investment management business contributes approximately 20% of its earnings and has around CAD 1.05 trillion in assets under management and administration as of the end of 2023. The US business, which primarily operates under the John Hancock brand, contributes about 27% of earnings and is mainly focused on providing insurance products for estate, business, and income protection. The Asia segment provides insurance products and insurance-based wealth accumulation products in over 11 countries and contributes around 30% of earnings. The Canadian business segment contributes approximately 23% of earnings.