Manulife CEO Roy Gori to Retire in May, Replaced by Phil Witherington

Manulife CEO Roy Gori to Retire in May, Phil Witherington Named Replacement

In a significant move, Roy Gori, the chief executive of Manulife Financial Corp., has announced his decision to step down from the role next May. Gori has been instrumental in transforming the company since taking over in 2017, and his departure marks a new chapter for the insurance giant.

A New Era for Manulife

Phil Witherington, currently serving as chief executive of Manulife Asia, will take over from Gori on May 8. The transition plan is already underway, with Witherington working closely with Gori to ensure a smooth handover. This move comes at an exciting time for Manulife, as the company continues to push its growth strategy in the Asian market.

Gori’s Legacy

Under Gori’s leadership, Manulife has undergone significant changes, including off-loading riskier assets and heavily investing in digital platforms. "We have transformed Manulife, and we are, as a result of that, a radically different company today to the one we were in 2017," Gori said at an investor day in Hong Kong in June.

Gori’s tenure has seen the company focus on achieving core return on equity (ROE) of at least 18% by 2027, up from its current target of 15%. The insurer has also increased its target for cash generated by subsidiaries to be passed along to the parent company over the next three years to $22 billion, up from $18.4 billion.

A Strong Future Ahead

With Witherington at the helm, Manulife is poised for continued growth in Asia. The region is expected to see significant economic expansion, with an estimated 1.5 billion people joining the middle class by 2030. This presents a massive opportunity for the company to increase sales and drive revenue.

A Successful Reinsurance Deal

In December, Manulife announced a $13-billion reinsurance deal that included what it called the largest long-term care component in the insurance industry’s history. In March, the company announced another significant deal to reinsure $5.8 billion of universal life reserves, making it the largest deal of its kind in Canada.

A Strong Track Record

While Manulife’s stock saw little gains over much of Gori’s tenure, the past year has seen a significant increase, with shares climbing more than 70% to trade around $45. This marks a new high for the company, surpassing the previous peak reached just before the global financial crisis.

A Smooth Transition

Board chair Don Lindsay praised Gori’s transformation of the company and his outstanding results during his tenure. Gori himself acknowledged that the business has been de-risked and has become a digital leader under his leadership. He will stay on as an adviser to the company until August 31, 2025.

A New Chapter for Manulife

With Witherington at the helm, Manulife is set to continue its growth trajectory in Asia. The company’s focus on de-risking and investing in digital platforms has positioned it well for future success. As Gori departs, he leaves behind a legacy of transformation and growth.

What’s Next?

As Witherington takes over as CEO, the company will continue to drive growth in the Asian market. With its strong track record and focus on innovation, Manulife is poised for continued success.

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