Mr. Phil Witherington reports

MANULIFE ANNOUNCES $3.2 BILLION LONG-TERM CARE REINSURANCE TRANSACTION WITH MUNICH RE

Manulife Financial Corp. has agreed to reinsure biometric risk (1) on a block of long-term care (LTC) policies with $3.2-billion of reserves (2) to Munich American Reassurance Company (Munich Re Life U.S.), a subsidiary of Munich Re Group, highlighting the company's continued efforts to reduce the risk profile of its in-force portfolio. The transaction is expected to close in Q4 (fourth quarter) 2026, pending regulatory approvals.

Key highlights of the transaction include:

• Full risk transfer on biometric risk (3) on $3.2-billion of LTC reserves to Munich Re Life U.S.;
• Inclusive of the company's previous LTC reinsurance transactions (4), upon closing, Manulife will have cumulatively reduced LTC morbidity sensitivity by 24 per cent (5);
• Similar pricing to prior deals, with a modest negative 5-per-cent core earnings (6), further validating reserves and assumptions;
• Transaction largely neutral to capital, with immaterial annual impact to both core earnings and net income attributed to shareholders of approximately $30-million in the first year and reducing over time (7).

"Today's announcement represents our third LTC reinsurance transaction in under three years and first on a stand-alone LTC block, reflecting our ability to reduce our risk profile and strengthen our business through innovative actions. Looking ahead, we continue to see meaningful opportunities to improve our long-term care portfolio through organic initiatives that will enhance risk-adjusted returns and generate significant shareholder value," stated Phil Witherington, president and chief executive officer, Manulife.

Slides related to this announcement are included as part of the Q2 (second quarter) 2026 earnings presentation available on the Manulife website.

About Manulife Financial Corp.

Manulife is a leading international financial services provider, headquartered in Toronto, Canada. Anchored in its ambition to be the No. 1 choice for customers, the company operates as Manulife across Canada and Asia, and primarily as John Hancock in the United States, providing financial advice, insurance and health solutions for individuals, groups and businesses. Through Manulife Wealth & Asset Management, the company offers global investment solutions, financial advice and retirement plan services to individuals, institutions and retirement plan members worldwide. At the end of 2025, Manulife had more than 37,000 employees, over 106,000 agents and thousands of distribution partners, serving over 37 million customers with operations across 25 markets globally. Manulife trades as MFC on the Toronto Stock Exchange, New York Stock Exchange and Philippine Stock Exchange, and under 945 on the Hong Kong Stock Exchange.

About Munich Re Life U.S.

Munich Re Life U.S., a subsidiary of Munich Re Group, is a leading U.S. reinsurer with a significant market presence and extensive technical depth in all areas of life and disability reinsurance. Beyond vast reinsurance capacity and unrivaled risk expertise, the company is recognized as an innovator in digital transformation and aims to guide carriers through the changing industry landscape with dynamic solutions insightfully designed to grow and support their business. Munich Re Life U.S. also offers tailored financial reinsurance solutions to help life and disability insurance carriers manage organic growth and capital efficiency, as well as M&A (merger and acquisition) support to help achieve transaction success.

Non-GAAP (generally accepted accounting principles) and other financial measures

Manulife prepares its consolidated financial statements in accordance with international financial reporting standards (IFRS) as issued by the International Accounting Standards Board. It uses a number of non-GAAP and other financial measures to evaluate overall performance and to assess each of its businesses. Core earnings is a non-GAAP financial measure. For more information on the non-GAAP financial measures and non-GAAP ratios in this news release, please see section E3, non-gaap and other financial measures, of the Q2 2026 MD&A (management's discussion and analysis), which is incorporated by reference and available on SEDAR+.

Note: All figures and estimates are based on the June 30, 2026, position, unless otherwise noted, and are expressed in Canadian dollars, based on exchange rate of $1 (U.S.) to $1.41875 (Canadian). Foregone core earnings and net income attributed to shareholders impacts are based on exchange rate of $1 (U.S.) to $1.38398 (Canadian).

(1) IFRS reserve figure of $3.2-billion (Canadian) at 80-per-cent quota share.

(2) IFRS reserve figure of $3.2-billion (Canadian) at 80-per-cent quota share, reflecting IFRS 17 current estimate of present value of future cash flows plus risk adjustment plus contractual service margin.

(3) IFRS reserve figure of $3.2-billion (Canadian) at 80-per-cent quota share.

(4) Refers to the $13-billion reinsurance transaction, including $6-billion of LTC, with Global Atlantic, which was announced in December, 2023, and closed in February, 2024, and the $5.4-billion reinsurance transaction with RGA, including $2.4-billion of LTC, which was announced in November, 2024, and closed in January, 2025.

(5) Impact of a change in reserves would be reported through the contractual service margin, net income attributed to shareholders and other comprehensive income attributed to shareholders. In reference to the cumulative reduction in LTC morbidity sensitivity across all three transactions at the time of the respective announcement. Note sensitivity for this transaction based on Q2 2026. Transaction is expected to close in Q4 (fourth quarter) 2026 pending regulatory approvals.

(6) On an IFRS basis.

(7) Core earnings is a non-GAAP financial measure.

We seek Safe Harbor.