Manulife Financial Corporation (NYSE:MFC) Q1 2024 Earnings Call Transcript

Steve Finch: Yes, thanks Tom. In terms of reinsurance, we’ve got ongoing relationships with our reinsurance partners, and that’s a pretty comprehensive relationship, including looking at new business, future opportunities, and a variety of inforce management initiatives to drive alignment of interest on performance in the business. Over the years, part of that inforce management has at certain times resulted in rate increase requests from reinsurers. We work with them constructively on that. It’s an ongoing part of managing this business. In certain situations, we dispute those right to rate increases, but look at it really as part of the ongoing relationship management. What I would tell you is that when we look at our reserves in aggregate–and that’s how we manage the balance sheet, when we look at our reserves in aggregate, I’m confident in saying they are overall adequate and prudent, including the ongoing management of these reinsurance relationships.

Tom Gallagher: Got it, and then the COI litigation?

Steve Finch: I’ll pass to Brooks on that one.

Brooks Tingle: Yes, thanks Tom, it’s Brooks Tingle. We did undertake a COI increase on a block of UL policies in 2018. As is the case in the industry when those events occur, litigation ensues. We have now settled all federal and state litigation regarding that – 100% of the disputes have been resolved. We made certain payments, but importantly the increases stay in effect going forward.

Tom Gallagher: Great, thanks guys.

Operator: Thank you. We have no further questions registered at this time. I would now like to turn the meeting back over to Mr. Ko.

Hung Ko: Thank you Operator. We will be available after the call if there are any follow-up questions. Have a good day, everyone.

Operator: Thank you. The conference has now ended. Please disconnect your lines at this time, and we thank you for your participation.