Manulife CEO Roy Gori to Retire in May, Phil Witherington Named Replacement
A New Era for Manulife: Changes and Growth Under the Leadership of Roy Gori
In a significant move, Roy Gori, chief executive of Manulife Financial Corp., will be stepping down from his role next May after pushing through substantial changes at the insurance giant since taking the helm in 2017. During his tenure, Gori has led the company through various transformations, including off-loading riskier, lower-return assets and heavily investing in digitalization.
The Road to Transformation
Under Gori’s leadership, Manulife has undergone a significant transformation. The company has shed assets with low returns on equity, focusing instead on high-growth areas such as long-term care coverage and universal life reserves. In December 2022, the insurer announced a $13-billion reinsurance deal that included what it called the largest long-term care component in the industry’s history.
A New Era of Growth
The company has been working to boost returns, with a target of achieving core return on equity (ROE) of at least 18% by 2027, up from its current target of 15%. Manulife has also increased its target for cash generated by its subsidiaries that is passed along to the parent company over the next three years, rising to $22 billion from $18.4 billion.
The Future Under Phil Witherington
Phil Witherington, currently serving as chief executive of Manulife Asia, will take Gori’s place after he retires on May 8, 2025. Witherington has been named the new chief executive of Manulife Financial. He brings with him a wealth of experience, having served as chief financial officer of the company for five years before taking over running the insurer’s business in Asia.
A Look Back at Gori’s Tenure
Gori joined Manulife in 2015 as chief executive for the company’s business in Asia before becoming CEO. During his tenure, he emphasized the importance of digitalization and growth in the Asian market. He noted that some 1.5 billion people in Asia are expected to join the middle class by 2030, a trend that will help lead to more sales.
A Legacy of Transformation
Gori leaves Manulife as it’s increasingly looking for growth in the Asian region. Under his leadership, the company has been transformed into a digital leader. The business has been de-risked, and Gori has delivered outstanding results.
The Transition Ahead
With Witherington at the helm, Manulife is expected to continue its growth trajectory. As Witherington works with Gori on transition planning, he will name a successor in the coming months. Gori will stay on as an adviser to the company until August 31, 2025.
A New Era for Manulife
The retirement of Roy Gori marks the beginning of a new era for Manulife Financial Corp. With Phil Witherington at the helm, the company is poised to continue its growth trajectory and capitalize on emerging trends in the Asian market.
Key Statistics:
- $45: The current stock price of Manulife.
- 70%: The increase in Manulife’s stock over the past year.
- $13 billion: The size of the reinsurance deal announced by Manulife in December 2022.
- 18%: The target core return on equity (ROE) for Manulife by 2027.
- $22 billion: The new target for cash generated by Manulife’s subsidiaries that is passed along to the parent company over the next three years.
The Future of Manulife
As Phil Witherington takes over as CEO, Manulife is expected to continue its growth trajectory. With a focus on digitalization and emerging trends in the Asian market, the company is poised for success. The legacy of Roy Gori will be remembered as one of transformation and growth, and it’s likely that Witherington will build upon this foundation.
A Look Ahead
As Manulife embarks on a new era, there are many factors to consider:
- Digitalization: As the company continues to invest in digitalization, what impact can we expect on the business?
- Growth in Asia: With some 1.5 billion people expected to join the middle class by 2030, how will Manulife capitalize on this trend?
- Risk Management: How will Witherington manage risk at the company, and what steps will be taken to ensure continued growth?
The Bottom Line
Manulife’s retirement of Roy Gori marks a significant turning point for the insurance giant. With Phil Witherington at the helm, the company is poised to continue its growth trajectory and capitalize on emerging trends in the Asian market.
Sources:
- "Manulife shows strong insurance growth in Asia"
- "Gori joined Manulife in 2015 as chief executive for the company’s business in Asia before becoming CEO"
- "The company has been working to boost returns, with a target of achieving core return on equity (ROE) of at least 18% by 2027"
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