The insurance giant said Tuesday that it is targeting a core return on equity of at least 18 per cent by 2027, up from its current target of 15 per cent.
Manulife says it has also increased its target for cash generated by its subsidiaries that is passed along to the parent company to
The updates came at the company's investor day in
Chief executive
“We have transformed Manulife and we are, as a result of that, a radically different company today to the one we were in 2017.”
The insurer has been working to shed assets with a low return on equity, including in its long-term care coverage.
In December, the company announced a
Reinsurance deals involve shifting the risk of existing insurance policies, and a chunk of their premiums, to another company to free up capital by reducing liabilities.
As it cuts its exposure to legacy assets, the company is focusing on growth markets that have higher return potential, including
Gori said the insurer, which been operating in
“What is encouraging in
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.
The company has also been pushing to expand its health side of the business, including its vitality insurance product that offers rewards for healthier living, said Gori.
“We are refocusing our business from one that’s centred on death and claims to one that is about helping customers live longer and healthier lives.”
This report by The Canadian Press was first published
Companies in this story: (TSX:MFC)
Note to readers: This is a corrected story. A previous version had incorrect wording around remittances.
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