Driving expense top quartile employee engagement we will create long-term value for our efficiency scores in 2020, 2021, and 2022. business, our communities, and the Since 2017, we’ve seen continued planet. It’s how we all win. We continue to foster a culture of improvement each year, and in expense efficiency and prioritize our 2022, we ranked in the top six In recognition of our continued resources where they will be most percent amongst global finance and and strengthening commitment to effective. This focus has allowed insurance companies. In addition, we sustainability performance, we were us to contain the growth of our have been consistently recognized as once again named to the S&P Dow general expenses to less than 8% an employer of choice, including as Jones Sustainability North America and improve our expense efficiency one of the World’s Best Employers by Index, one of only seven insurers ratio from 55.4% in 2017 to 50.9% Forbes for the third consecutive year. across North America to be included, in 2022, with a commitment to our and within the top 10% of our industry target of below 50%. We’re achieving We’ve continued to invest in peers globally. this through digitization, simplifying robust learning and development, and standardizing our processes, leadership, and recognition I’m tremendously proud of the optimizing our structure, and careful programmes, and we’ve enjoyed progress our winning team has made: management of our expenditures, the opportunities for in-person we’ve driven great change, delivered embedding a culture of disciplined collaboration that have emerged for our customers and shareholders, spending to enable growth. through our return to offices and bolstered a great culture in which during 2022. These investments all of our colleagues can thrive. Optimizing our portfolio will be critical to providing us with a long-term, sustainable Our disciplined approach helped By the end of 2022, we freed up competitive advantage. us remain resilient throughout the $9.0 billion of capital from our pandemic, while delivering record net legacy portfolio, having previously Our commitment income in 2022, a testament to our achieved our 2022 target to release strong focus on delivering shareholder $5.0 billion of capital three years to a healthier planet value as a team. ahead of schedule in 2019. We have and community also made progress towards our Thank you business mix targets for long-term As a health and wealth company, care insurance and variable annuities sustainability is about creating I am honoured to lead our winning to contribute less than 15% of core economic return while also team and want to acknowledge each earnings by 2025. We created value addressing the world’s societal and of my Manulife colleagues around the for our shareholders, executing environmental challenges. Whilst we world for their contributions to our two reinsurance transactions of our are already net zero in our scope 1 shared achievements. Thank you. U.S. variable annuity block in 2022, and scope 2 operational greenhouse releasing $2.5 billion of capital and gas emissions, we are committed I have the privilege of acknowledging buying back 4.1% of our common to further reducing our absolute our outgoing Chairman, John shares in 2022. Portfolio optimization emissions by 35% by 2035, and to Cassaday, and of thanking him on remains a high priority as we continue achieving net zero scope 3 financed behalf of our team for his 30 years of to explore opportunities to reduce emissions in our General Account service as a member of our Board of risk and release capital from our by 2050. Directors, including the past five as legacy businesses. Chairman. During this time, he has In 2022, we shared our Impact made invaluable contributions to our Our winning team Agenda, an articulation of our long- growth, and in helping us to become and culture standing commitment to empowering the Company we are today. On a health and wellbeing, driving personal note, I have appreciated his None of this would be possible inclusive economic opportunities, support and wise counsel throughout without the efforts and dedication and accelerating a sustainable my tenure. Thank you, John. of our high-performing team, and future. Staying true to our Mission I’m very pleased that we achieved through our Impact Agenda is how 6 | 2022 Annual Report