Good morning, and thank you for joining us today. On behalf of our Board, we welcome you to the annual meetings of Manulife Financial Corporation and the Manufacturers Life Insurance Company. My name is John Cassaday, Chairman of the Board. We find ourselves in extraordinary circumstances this year. In light of the COVID-19 pandemic and following directions from public health and government authorities, we have been taking all recommended precautionary measures to help keep everyone safe and to do our part to help flatten the curve. We, like many other Canadian financial institutions, are holding our annual meeting electronically this year instead of in person. It is our belief this measure protects the health and well-being of our shareholders, policyholders, employees, and other stakeholders.
At the same time, we believe it supports shareholder and policyholder engagement and enables shareholders and policyholders to participate in this meeting by voting electronically and asking questions. To those affected by the COVID-19 pandemic, please accept our heartfelt sympathies. To those on the front line courageously helping others, thank you. Together, we will get through this. Your Board spent much of 2019 focused on examining Manulife's strategy, goals, and progress towards its bold ambition of becoming the most digital, customer-centric global company in our industry. This included frequent conversations with our executive leadership team members to ensure we understood and could oversee the business effectively. In addition to our regular business progress discussions with the team throughout the year, we increased time spent on environmental, social, and governance factors that impact the business.
Your Board also dedicated significant time in 2019 to understanding how management is strengthening and nurturing an open, diverse, and inclusive culture. Manulife is keenly focused not just on what it achieves, but also on how it achieves success. Collectively, we are stressing a culture of acting with integrity and following words with actions. Now more than ever, our culture and values are guiding us through these challenging times, helping us focus on what matters most: the health and safety of our teams and our customers. Before handing over to Roy Gori, our President and CEO, for his remarks, we'd like to review a few housekeeping items. The meeting is being broadcast in both English and French. To switch languages, please click on your desired language from the buttons above the presentation screen. Closed captioning is also being provided in both languages.
This year, voting will be available online during the meeting for shareholders, policyholders, and duly appointed proxy holders. To be able to vote during the meeting, you had to have joined the meeting by entering your control number at the registration screen. Information on where to find your control number was provided in the meeting materials you received and on our website. We will provide instructions on how to vote at the appropriate time in the meeting. As is our usual practice, shareholders and policyholders are invited to ask questions, which we will respond to later in the meeting. Similar to the instructions for voting, to be able to ask questions during the meeting, you had to have joined the meeting by entering your control number at the registration screen.
To ask a question, click on the messaging button on the screen, enter your question in the text box, and click the send button. Following the CEO remarks, we will hold the formal business of the meeting and will then move to questions from shareholders and policyholders. We are joined today by Andrea Rosen, Director and Chair of our Corporate Governance and Nominating Committee, who will act as Chair of this meeting in the event that a technical disruption prevents me from continuing for any reason. Phil Witherington, Chief Financial Officer; Jim Gallagher, General Counsel; and Antonella Deo, Corporate Secretary. The rest of the Board of Directors, the external auditors, and the scrutineers for the meeting, AST Trust Company, are participating electronically as well. We draw your attention to the caution regarding forward-looking statements in the presentation slide.
Comments made during this meeting may include forward-looking statements as defined in securities legislation. Actual results may differ materially from those expressed or implied in these statements. Please also refer to the note regarding the non-GAAP measures used in today's presentations. Roy will now provide his remarks on current events and on Manulife.
Good morning and welcome, everyone. Mr. Chairman, policyholders, and fellow shareholders, thank you for joining us. Normally, I'd be welcoming you at our global headquarters in Toronto. However, things still remain far from normal as we continue to navigate an unparalleled set of challenges resulting from the COVID-19 pandemic. Before I say anything else, I want to send my deepest condolences to all of the families, friends, and loved ones lost and impacted recently by the tragedy in Nova Scotia. Our thoughts and prayers are with all of you. I also want to express my deepest sympathies to everyone around the world who's been impacted by COVID-19. Some have family members and friends who have taken ill. Others have lost jobs or income or are suffering from social isolation.
All of us have had to cope with distressing and difficult circumstances that have changed our daily lives and have been forced to adapt to a world that is dramatically different from what we've been used to. Throughout the pandemic, our top priority has been the health and safety of our team, our customers, and our partners. It's been nothing short of amazing to see the Manulife team rally at this incredibly difficult time for our customers. Let me give you just a few examples of how the team has stepped up at this time of great need. In many parts of Asia, we've quickly offered additional COVID-19-related health and death benefits, expedited claims, and extensions on policy renewal and payment deadlines. In parts of North America, we're helping our small and medium-sized group benefits customers by deferring renewal increases and offering rebates on dental and health premiums.
We are also offering deferrals on mortgage payments and credit card obligations for those affected by the economic impacts of the outbreak. When the international border started closing and the Canadian government asked Canadians to return home, we knew we had an opportunity to do the right thing. We extended out-of-country health coverage for customers who were overseas and unable to return home quickly. We have also been focused on helping the communities in which we operate by making donations, both monetary and of medical supplies and resources, to some of the hardest-hit areas. It is important to remember that our history stretches more than 155 years. We have stayed open for business through world wars and natural disasters. We help people in tough times, and we deliver on our promises. We are again ready to take up that responsibility today.
Indeed, we're already hearing from the front lines about the difference that we're making in our customers' lives during this unprecedented time. This underscores the vital role our industry plays and will continue to play as we help customers plan, prepare, and protect what matters most. Recently, one of our customers reached out to apply for a compassionate assistance loan. She was already coping with a severe illness. Now, her already difficult situation was becoming even harder with her husband out of work because of the COVID-19 pandemic. Knowing this customer's urgent need, we expedited processes and funds were advanced the same day. Responding quickly and moving with speed to lighten the load for our customers, that's what defines our mission. Those six simple words: decisions made easier, lives made better. Drive our 35,000 colleagues and over 98,000 agents every day.
They define what it means to be a caring, trustworthy, values-driven organization that does what it says and delivers on its promises. We, like many other global companies, are looking across our operations around the world to determine the best path to getting staff back in the office. In China, Manulife is already at nearly 80% in office, and in Hong Kong, we're nearly at 50%. We've learned some great lessons from our operations in Asia, which was the first region of the world to enter the pandemic, and we're factoring them into our decision-making globally. The impact on our operations was lessened because we've been transforming our business for over two years, and our digital capabilities and business continuity plans allowed us to maintain much of our operations and continue serving our customers remotely. Even so, any discussions about reopening the broader economy are highly complex and difficult.
Success has to balance getting the economy back to near full capacity as quickly as possible without putting people and communities at increased risk. Fiscal stimulus in Canada and the U.S. has been helpful to date, and globally, government and central bank actions leveraging both fiscal and monetary policy measures have been strong. To quote Bank of Canada Governor Stephen Poloz, "A firefighter has never been criticized for using too much water. I believe this is the right philosophy." Regardless, it's impossible to avoid a simple fact: reopening will have to take place on a localized basis and must take into account the need to protect human health and ensure the safety and well-being of as many people as possible above every other concern.
At present, the world needs to see a dramatic increase in the amount of testing and contact tracing, in addition to progress with respect to the development of treatments and a vaccine, before the economy can safely return to some semblance of normalcy. While this needs to be approached with great urgency, this process will take time and very careful planning. We simply cannot afford to get this wrong because subsequent pandemic waves could create even greater economic and social devastation than we've already seen. Manulife entered this crisis from a position of strength, and I'm confident that we'll emerge from this pandemic strong, united, and ready to serve our customers as they begin to resume their regular lives. Over the past decade, we have significantly de-risked our business and reduced our company's sensitivity to market movements.
For instance, our sensitivity to a 50 basis point parallel shift in interest rates is 1/10 of what it was in 2009, and our sensitivity to equity markets is less than half of what it was in 2009. We have put sophisticated hedging programs in place, and as you've seen in recent years, they've performed in line with expectations. Our capital position is strong, as demonstrated by our LICAT ratio of 140% at the end of 2019 and of 155% at the end of Q1 2020. We've also achieved our medium-term leverage target of 25% in January after taking into account a $500 million debt redemption. We enjoy a steady stream of premium revenues in our insurance business, regardless of the sales generated in any given quarter, which further positions us strongly to weather the current situation.
I'm confident that we're well positioned to navigate this crisis, and I'm proud of how our team has responded, stepping up to show we are truly here for each other, our customers, and our communities. Now, let me give you a sense of our strategic progress over the course of 2019. As you know, over the past 2.5 years, we've been focused on our five strategic priorities. We continue to consistently execute against each of them as we transform Manulife into the most digital, customer-centric global company in our industry. As of the fourth quarter of 2019, we released a total of $5.1 billion of capital, achieving our 2022 portfolio optimization target three years ahead of schedule. We delivered expense efficiencies of $700 million by the end of 2019 and are on track to deliver on our 2022 $1 billion target ahead of schedule.
Expense growth has also slowed significantly from 7%-9% in the past down to roughly 3% more recently, giving us additional flexibility to respond to the COVID-19 pandemic. We continue to make headway on growing our highest potential businesses. They generated 57% of our core earnings in 2019, up from 54% in 2017, and their core earnings growth outpaced our other businesses by 11 percentage points in 2019 from 2018. We've broadened their geographic reach and increased their future growth potential. For example, in our Global Wealth and Asset Management business, we entered into a joint venture agreement with Mahindra Finance in India, with the goal of becoming a premier provider of retail investment solutions in that country. We're also keeping our focus on becoming a digital customer-centric market leader.
We served nearly 30 million customers in 2019 as we continued to develop and provide new and compelling ways to meet their needs. A great example is the expansion of our behavioral insurance offerings: Manulife Vitality, John Hancock Vitality, and Manulife MOVE. These products embody our focus on making lives better as they reward our customers for healthy habits like exercising and eating well. In Asia, we introduced Manulife MOVE in Vietnam and Cambodia and doubled enrollment across the region. We launched an industry-first voice-enabled retirement product using Alexa for customers in the U.S. We also made steady progress in how we're supporting our customers. In Canada, we saw 3.9 million more claims submitted digitally. With our group benefits business also moving to paperless claims, we're on track to eliminate 4.2 million checks and benefit statements.
In Asia, we launched Hong Kong's first all-digital cashless service, which enables customers to obtain speedy pre-approval for most common claims, and we expanded our e-claims platform across the region. At Manulife, we have an ambitious goal to improve our Net Promoter Scores by 30 points across the company by 2022, knowing that passionate customers are more likely to recommend and stay with us. In 2019, we were pleased to see our NPS score up 7 points from the baseline levels established in 2017, and we continue enhancing our customer experience using human-centered design and technology. Our last strategic priority is building a winning team and culture. As part of that effort, we've been challenging ourselves to bring an insurgent mindset to all we do.
Instead of asking, "Does this process, product, or policy work for our customers?" at Manulife, we ask, "Is there a better way?" This approach is encouraging all of us to look for ways to continuously improve what we do, and we're investing in helping our colleagues build new skills and capabilities. Our future-focused approach is resonating with our teams, and we saw increased engagement across the company last year, also driven by our commitment to actively cultivate a diverse and inclusive workplace. I firmly believe that our people and the teams we're building will continue to be a competitive advantage for us globally. Turning to our communities, it is clear that the COVID-19 pandemic has reinforced the importance of every individual and organization being united and working together for the greater good of humanity. Our community commitment goes beyond supporting those affected by the pandemic.
For example, there is no denying the impact of climate change and its implications for every community and business globally. To address this, we established a Climate Change Working Group that reports to our Executive Sustainability Council, whose mandate includes identifying climate change risks and opportunities across the organization. We're also proud to serve as a leading financing partner for the renewable power sector in North America, and we're also sustainably managing our real estate, timber, and agriculture assets. For example, over 48 million sq ft, or 80% of our global real estate portfolio, has been certified to a green building standard. We're proud of the work that we've done globally in support of important community needs, directly making or helping to raise over $46 million in community contributions, along with our employees and agents sharing their humanity by volunteering about 66,000 hours of service.
Despite significant market volatility, global trade tensions, and other geopolitical events throughout 2019, we continued to sustainably grow net income and core earnings. We delivered top quartile shareholder returns in 2019. We achieved core earnings of $6 billion, and net income attributed to shareholders of $5.6 billion, up 5% and 14% respectively over 2018. Our strong results were driven by continued double-digit growth in core earnings in Asia. New business value at $2 billion was up 15% from 2018. Thanks to the ongoing trust and confidence of our customers around the world, our assets continue to grow, finishing the year at $1.2 trillion of assets under management and administration. This was up 13% from last year and up almost 30% from five years ago.
One of our values, "Get it done together," is an apt description of how we've been able to accomplish so much in 2019 and how we continue to deliver in the face of the COVID-19 pandemic. I want to extend a special thank you to our Chairman, John Cassaday, for his continued dedication, candor, and sound advice. I would like to thank the rest of the Board for their counsel and support, and you, fellow shareholders, for your ongoing trust and confidence in Manulife and our team. Looking ahead, we're excited to build on our momentum. As the current crisis shows, we must always be ready to rise to the challenge and address circumstances outside our control. Companies will be defined by how well they looked after their teams and customers during this crisis, and I am incredibly proud of our story on that front.
Driven by our mission, values, and culture, we are getting through this together. We remain confident that we have the right plan, the right team, and the right mindset to achieve our ambition. Thank you.
Thank you, Roy. The annual meeting of shareholders of MFC and the annual meeting of policyholders and the shareholder of MLI have now been called to order. Antonella Deo will act as Secretary of the meeting, and Christopher Carbone and Pat Lee of AST Trust Company will act as scrutineers for both MFC and MLI. The notice of this meeting was mailed to all shareholders and policyholders required to be sent such notice, and the quorum requirements for the meeting have been complied with. Accordingly, this meeting is properly convened.
We will now table the 2019 Consolidated Financial Statements of MFC and of MLI, as well as the reports of the auditor and the actuary on these documents. The 2019 Consolidated Financial Statements of MFC were sent to shareholders in accordance with the Insurance Companies Act and applicable securities legislation. The 2019 Consolidated Financial Statements of MLI were sent to policyholders in accordance with the Insurance Companies Act. Copies of these documents are available on manulife.com. We will now check to see whether we have received any questions on the financial statements. I can confirm no questions have been received on this matter. We will now table the information for participating policyholders of MLI, which includes summaries of the Participating P olicyholder Dividend Policy and the Participating Account Management Policy.
This information can be found in the 2019 Report to Policyholders, which was sent to all participating policyholders who requested notice of meetings. Copies of the Report to Policyholders are available on manulife.com. We will now check whether we have received any questions on the information for participating policyholders of MLI. We have not received any questions. We will now proceed to the voting section of the meeting. Before commencing, we would like to provide instructions for how shareholders and duly appointed proxy holders may vote using the online platform. To the extent you have voted in advance of the meeting and do not wish to change your vote, you do not need to do anything.
As we proceed through each item of business, those that join the meeting using their control number will see the resolutions to be voted on displayed on the screen as the item of business is being discussed. To vote, click one of the voting options available. Your vote will be automatically submitted for our scrutineers to include in the vote tabulation. Votes may be changed until the voting is closed on that matter. Once voting for a particular matter is closed and we move on to the next item of business, the screen will change to show the next item of business, and you will no longer be able to vote on the previous matter.
If you have not voted in advance of the meeting and you do not press one of the four withheld, against, or abstain, when voting is open, your vote will not be recorded, and you will be regarded as having abstained from voting. We will be voting on items of business for both MFC shareholders and MLI policyholders. If you are both an MFC shareholder and MLI policyholder or a proxy holder for both, you may vote on all matters. If you are an MFC shareholder but not an MLI policyholder or vice versa, you will see the items being voted upon for each company. But votes cast will only be counted towards the company of which you are a holder. A simple majority is required to approve matters voted on at this meeting to facilitate efficiently proceeding through the business of the meeting.
Antonella Deo, who is a shareholder of MFC and an MLI policyholder appointee, will move all motions. Preliminary results will be announced after voting closes for all matters, and final results will be posted on our website. The first item of business is the election of the directors of MFC and MLI. You may either vote for or withhold your vote from each director nominee. We will now vote on the election of directors of MFC. The number of directors to be elected today, as determined by the Board, is 13. If you have already voted and do not wish to change your vote, there is nothing for you to do at this time. Information on each nominee is set out in the Proxy Circular for this meeting. For the election of directors of MFC, Antonella Deo, a shareholder, has agreed to move this resolution.
Mr. Chairman, I am pleased to nominate the 13 directors as set out in the Proxy Circular and as shown on the screen as directors of MFC to hold office until the close of the next annual meeting of the shareholders of MFC or until their successors are elected or appointed.
Thank you. We will now check whether we have received any questions on the election of the directors of MFC. I can confirm that we have received no questions on this matter, and we will proceed. Voting is now closed for the election of the directors of MFC. We will now vote on the election of directors of MLI. The number of directors to be elected today, as determined by the Board, is 13. Five policyholder directors and eight shareholders' directors. The participating policyholders of MLI vote for the policyholder directors.
If you have already voted and do not wish to change your vote, there is nothing for you to do at this time. MFC, as the sole shareholder of MLI, votes for the shareholder directors. Information regarding the nominees is set out in the Report to Policyholders for this meeting. We will now proceed with the election of the policyholder directors of MLI. Antonella Deo, a policyholder appointee, has agreed to move this resolution.
Mr. Chairman, I am pleased to nominate the five directors set out in the Report to Policyholders and as shown on the screen as policyholder directors of MLI to hold office until the close of the next annual meeting or until their successors are elected or appointed.
Thank you. We will now check whether we have received any questions on the election of the policyholder directors of MLI.
I can confirm we have received no questions, and therefore we will proceed to the next matter. Voting is now closed as it relates to the election of the policyholder directors of MLI. We will now move to the election of the shareholders' directors of MLI. As the sole shareholder of MLI, MFC has elected the shareholders' directors by written resolution in accordance with the Insurance Companies Act. The eight directors shown on the screen and as set out in the Report to Policyholders have been elected as the shareholders' directors of MLI to hold office until the close of the next annual meeting or until their successors are elected or appointed. We will now vote on the appointment of auditors for MFC and MLI. If you have already voted and do not wish to change your vote, there is nothing for you to do at this time.
Antonella Deo, a shareholder and policyholder appointee, has agreed to move this resolution.
Mr. Chairman, I move that Ernst & Young LLP, Chartered Accountants, be appointed auditors for MFC and MLI until the close of the next annual meeting at a remuneration to be fixed by the directors.
Thank you. Roy Gori, a shareholder and policyholder appointee, has agreed to second this motion.
Mr. Chairman, I second the motion.
Thank you. We will now check whether we have received any questions on the appointment of the auditors for MFC and MLI. I can confirm that there have been no questions posted, and we will proceed to the next matter. Voting is now closed as it relates to the appointment of the auditors for MFC and MLI. We will now hold the non-binding shareholder advisory vote on MFC's approach to executive compensation.
If you have already voted and do not wish to change your vote, there is nothing for you to do at this time. The Board believes that shareholders should have an opportunity to understand how and why the Board makes its executive compensation decisions and should be able to provide input to the Board on executive compensation. We take our shareholders' feedback seriously and will continue to do so. Antonella Deo, a shareholder, has agreed to move this resolution.
Mr. Chairman, I move that the advisory resolution to accept MFC's approach to executive compensation as set out on page 15 of the Proxy Circular be approved.
Thank you. Roy Gori, a shareholder, has agreed to second this motion.
Mr. Chairman, I second the motion.
Thank you. We will now check whether we have received any questions on advisory resolution on MFC's approach to executive compensation.
I can confirm that we've received no questions on this matter, and we will proceed. Voting is now closed as it relates to the approval of the advisory resolution on MFC's approach to executive compensation. The scrutineers have prepared their preliminary report, and Antonella Deo will present the preliminary results of the votes.
Thank you, Mr. Chairman. On the election of directors of MFC, all director nominees received at least 97% of the votes cast in favor.
I declare that all 13 director nominees have been elected as directors of MFC.
On the election of policyholder directors of MLI, all policyholder director nominees received at least 94% of the votes cast in favor.
I declare that all five nominees have been elected as policyholder directors of MLI.
For both MFC and MLI, more than 95% of the votes were cast in favor of the appointment of Ernst & Young as auditor.
I declare that Ernst & Young LLP has been appointed as auditors of MFC and of MLI.
On the advisory resolution to accept MFC's approach to executive compensation, more than 93% voted for and less than 7% voted against.
I declare that the shareholders have accepted Manulife's approach to executive compensation. The scrutineers' report in final form will be recorded in the minutes of this meeting and will be posted on our website following the meeting. This concludes the formal business of the meeting. Before we do anything further, we would like to take this opportunity to thank Directors Tom Jenkins and Lesley Webster who retire from our Board this year. We appreciate the many contributions they both made during their terms.
Thank you, Tom, and thank you, Lesley. In closing, your Board would also like to convey our deep appreciation to Roy and his leadership team on their numerous achievements in 2019. Their commitment to achieving success with accountability and integrity is critical in delivering on Manulife's mission of making decisions easier and lives better for the customers, communities, employees, and shareholders we serve. We will now turn to the Q&A. As a reminder, to be able to ask questions during the meeting, you had to have joined the meeting by entering your control number at the registration screen. To ask a question, click on the messaging button on the screen, enter your question in the text box, and click the send button. In the interest of giving sufficient time to respond to the questions of others, kindly keep your questions brief.
Questions of a similar nature will be grouped together to avoid repetition. Questions should be of interest to all shareholders and policyholders and should not be of a personal nature. If your question relates to a personal matter, we will contact you following the meeting to follow up on your questions. Roy has the first question. I'm both a shareholder and a policyholder. I have two questions. They're suggesting Mike Doughty, but I'm sure, Roy, you can handle this. I'm happy to know the Chairman of the Board wrote in his letter to shareholders this year that Manulife is stressing a culture of acting with integrity and following words with actions, and Manulife must stay focused on doing the right thing for your customers, shareholders, etc. For the past three years, my husband, Andrew Ng, has complained to Manulife that they have miscalculated and overcharged him on insurance premiums.
However, Manulife never took this complaint seriously. Roy?
Thank you for that, John, and thank you for the question. Let me just start by saying that I'm sorry for the experience that you and your husband have had with us. It's obviously really difficult for us to comment on any matters that are of a personal nature, but what I will confirm is that we'll have a member of management contact you immediately after this AGM to reach out and understand in more detail the nature of your complaint and how we can try to look for a mediation to the resolution of the matter.
Thank you, Roy. Second question is from another policyholder. Does Manulife guarantee that their records for all clients are maintained to the standards presented in Manulife's Code of Ethics and follow the practices outlined in the Financial Services Commission of Ontario?
I believe the second question is from the same individual, which was, does Manulife inform the potential client in writing what the medical rating is for a life insurance policy before it is signed, and why would Manulife not have the client sign a document saying that they accept the medical rating with all of its negative financial consequences so that there can be no disputes at a later date?
Yeah. Thank you for the question. Of course, we hold ethics and integrity as the highest value that we run our organization by. Obviously, our Code of Ethics is the guiding principle that every one of our employees follows, and we're also governed by the various regulations and policy requirements of each of the jurisdictions that we operate in, including obviously those in Ontario.
The second part of the question obviously relates more specifically to a personal matter. Rather than getting into the specifics of that instance, I would suggest again that here we would take this offline and that we'd have a member of management contact the individual who's raised this question to ensure that, A, we understand the nature of the concern and issue, and B, that we can confidently address the issues that are at hand.
Sir, I can assure you your name is clear in the question, so we do have the record of who has asked specifically this question. At this particular point in time, we don't have any additional questions. I'll wait another few seconds and see if anything pops up. All right, Roy, as there are no further questions, I think we can safely conclude this meeting today.
We would like to thank you for attending the meeting and for your continued interest in Manulife, and we wish you all health in the months to come. Thank you very much.