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  "documentTitle": "Manulife Financial Corporation (MFC)",
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  "authorName": "Carson C. Block",
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  "presentationDate": "2018-10-04 00:00:00",
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  "notes": "The slide explains the mechanics of the LICAT ratio and applies it to a hypothetical scenario involving a $45M earnings hit and $70M increase in required capital.",
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      "text": "Unfortunately, Manulife does not separately report its “available capital” and “regulatory capital” in its quarterly reports, but based on simple math, when you decrease your numerator and increase your denominator by at the same time, the LICAT Ratio has the potential to decline dramatically.",
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      "text": "LICAT ratio: 132%",
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      "text": "In fairness, Manulife currently has a healthy business. According to its Second Quarter Report to Shareholders, dated June 30, 2018:",
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      "text": "LICAT Ratio = Available Capital / Required Capital",
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      "text": "Mr. Rehbeli also provided a summary of the LICAT Ratio in Section 7.4.1. of his expert report...",
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      "text": "This quote puts into context Mr. Rehbeli's statement that available capital would decrease by $45 million due to the earnings hit, and regulatory required capital would increase by $70 million.",
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      "text": "at the highest level a simple metric is used to capture how well capitalized an insurer is: the ‘LICAT ratio’ is the ratio of available capital over its required capital.",
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      "kind": "quote",
      "text": "Reported a Life Insurance Capital Adequacy Test (“LICAT”) ratio of 132% for The Manufacturers Life Insurance Company (“MLI”) as at June 30, 2018 compared with 129% as at March 31, 2018",
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      "text": "at the highest level a simple metric is used to capture how well capitalized an insurer is: the ‘LICAT ratio’ is the ratio of company's available capital over its required capital. — Mr. Rehbeli (Expert Report)",
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      "text": "33 See Section 7.4.1. of Exhibit B of the Rehbeli Affidavit. 34 See Page 3 of Manulife Financial Corporation's Second Quarter Report to Shareholders, dated June 30, 2018.",
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