TSX:MFC - Post Discussion
Post by
Possibleidiot01 on Nov 28, 2023 2:02pm
Mike Vinokur - BNN - TOP PICK
Manulife Financial (MFC TSX) We view MFC as a best-of-breed lifeco in terms of capital adequacy, geographic diversification, and total return potential. We believe the current environment is great for lifecos. Unlike the banks, it has very little, if any, credit exposure (though we note that MFC does own a schedule one bank, though small compared to its lifeco operations). At its last quarterly earnings call, it held LICAT (life insurance capital adequacy test) capital level of 137 per cent, which underscores its robust levels of capital. In an environment of higher interest rates, we believe lifecos will earn more on assets, which should add incremental strength to earnings. With core return on equity of approximately 17 per cent, adjusted book value of just under $31 and growing, and a dividend yield of 5.5 per cent, there is a lot to like. We have owned Manulife for a few years and purchased our position at $25.5.
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