Expense efficiency ratio was 50.9% for 2022, compared with 48.9% in 2021. The 2.0 percentage point increase in the ratio compared 1 1 with 2021 was driven by an 8% decrease in pre-tax core earnings . Core general expenses were in line with 2021 driven by higher workforce costs offset by the net favourable impact of our strategic focus on digitization and efficiency, lower distribution-related and discretionary expenses reflecting lower 2022 sales, and lower pension costs primarily due to market impacts. Total general expenses in 2022 were in line with 2021 on both a constant and actual exchange rate basis due to the items noted above for core general expenses and a number of items recorded outside of core earnings. These include the non-recurrence of a restructuring charge and the establishment of a legal provision in 2021, partially offset by various 2022 items, including an integration charge in our Vietnam operation, expenses associated with the U.S. variable annuity reinsurance transactions, and a legal provision in the U.S. Business Performance Business performance As at and for the years ended December 31, ($ millions, unless otherwise stated) 2022 2021 Asia APE sales $ 3,569 $ 4,050 Canada APE sales 1,261 1,227 U.S. APE sales 823 788 (1) Total APE sales 5,653 6,065 Asia new business value 1,349 1,666 Canada new business value 362 307 U.S. new business value 352 270 (1) Total new business value 2,063 2,243 (1) Global Wealth and Asset Management gross flows ($ billions) 136.6 144.7 (1) Global Wealth and Asset Management net flows ($ billions) 3.3 27.9 (2),(3) Global Wealth and Asset Management assets under management and administration ($ billions) 779.9 855.9 (3) Global Wealth and Asset Management total invested assets ($ billions) 3.7 4.5 (3) Global Wealth and Asset Management segregated funds net assets ($ billions) 224.2 252.6 Total assets under management and administration ($ billions) 1,314.6 1,425.8 Total invested assets ($ billions) 414.0 427.1 Total net segregated funds net assets ($ billions) 348.6 399.8 (1) For more information on this metric, see “Non-GAAP and Other Financial Measures” below. (2) This item is a non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below for more information. (3) The Global WAM portion of AUMA as at December 31, 2022 was $779.9 billion, a decrease of 9% compared with December 31, 2021, driven by the impact of higher interest rates and equity market declines, partially offset by $8.8 billion in assets acquired and net inflows of $3.3 billion. The Global WAM segregated funds net assets were $224.2 billion as at December 31, 2022, a decline of 11% compared with December 31, 2021 on an actual exchange rate basis driven by the impact of higher interest rates and equity market declines. Annualized premium equivalent (“APE”) sales were $5.7 billion in 2022, a decrease of 7%2 compared with 2021. In Asia, COVID-19 continued to impact sales in select markets throughout the year, with the situation beginning to improve in most markets, as containment measures were progressively relaxed. Travel restrictions between mainland China and, Hong Kong and Macau impacted cross-border commerce in 2022. Weaker customer sentiment negatively impacted sales in the second half of the year. Asia APE sales declined 12% 3 compared with 2021, due to decreases experienced in Hong Kong, Japan, Vietnam and Other Emerging Markets , partially offset by increases in mainland China and Singapore. In Hong Kong, APE sales decreased 33% compared with 2021, primarily reflecting weaker customer sentiment on financial planning decisions and continued COVID-19 containment measures through most of the year. In Japan, APE sales decreased 15% compared with 2021, reflecting lower corporate-owned life insurance (“COLI”) product sales, partially offset by higher individual protection and other wealth sales. Vietnam APE sales decreased 9% compared with 2021, reflecting a decline in the agency channel, partially offset by growth in the bank channel. Other Emerging Markets APE sales decreased 4% compared with 2021, reflecting a decline in the agency and bank channels. Mainland China APE sales increased 4% compared with 2021, driven by growth in the bank channel, partially offset by a decline in the agency channel. Singapore APE sales increased 1% compared with 2021, reflecting growth in the bank channel offset by a decline in the broker channel. In Canada, APE sales increased 3% compared with 2021, primarily driven by higher sales in group insurance, participating insurance and travel insurance, partially offset by the impact of market volatility on the demand for segregated fund products, and lower universal life and health and dental sales. In the U.S., APE sales increased 1% compared with 2021, due to an increase in international sales which are reported as part of U.S. segment results, partially offset by lower sales of domestic life insurance products. APE sales of products with the John Hancock Vitality PLUS feature were a record-setting US$332 million, an increase of 13% compared with 2021, reflecting the increasing attractiveness of the Vitality feature as an option for health-focused life insurance consumers. New business value (“NBV”) was $2.1 billion in 2022, a decrease of 9% compared with 2021. In Asia, NBV was $1.3 billion in 2022, a decrease of 20% compared with 2021, due to lower NBV in Hong Kong, Singapore and mainland China, partially offset by higher NBV in 1 This item is a non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below for more information. 2 Percentage growth / declines in APE sales, gross flows, and NBV are stated on a constant exchange rate basis. 3 Other Emerging Markets includes Indonesia, the Philippines, Malaysia, Thailand, Cambodia, and Myanmar. 13