Manulife Financial Corp

Latest Results (24.01.2026):

Manulife Financial Corporation — Third quarter 2025 (3Q25): Manulife reported record core earnings of $2.0 billion in 3Q25 (up 10% on a constant exchange rate basis) and double‑digit core EPS growth, while net income attributed to shareholders was $1.8 billion (broadly in line with 3Q24). Sales and new business metrics were stronger (APE up 8%, new business CSM up 25%, NBV up 11%), capital metrics remained robust (LICAT 138%, financial leverage 22.7%) and the company completed/announced strategic M&A to expand private credit and Indonesian asset management capabilities. Global Wealth & Asset Management posted higher margins but saw net outflows of $6.2 billion for the quarter.

Core earnings and profitability

Core earnings: $2,035 million in 3Q25 (up 10% CER vs. 3Q24). Core ROE was 18.1% and reported ROE was 16.0%. Core EPS was $1.16 (up 16% CER) while reported EPS was $1.02 (up 2% CER).

Net income and reconciling items

Net income attributed to shareholders: $1,799 million in 3Q25, roughly unchanged vs. 3Q24 after net neutral market experience in the quarter. Core earnings excluded a modest ECL impact; core earnings excluding the change in ECL were $2.0 billion (up vs. prior year).

Sales, new business and in-force metrics

APE sales: $2,576 million (up 8% CER). New business CSM: $966 million (up 25% CER). NBV: $906 million (up 11% CER). CSM (net of NCI) was $24,718 million as at Sept. 30, 2025, reflecting organic and inorganic growth.

Segment performance

Asia and Canada delivered strong results (Asia core earnings +29% year‑over‑year; Canada core earnings +4%), with Asia, Global WAM and Canada reaching record core earnings. U.S. core earnings fell 20% due to unfavourable life claims experience, lower investment spreads and impacts from the RGA U.S. reinsurance transaction.

Global WAM flows and margins

Global WAM reported net outflows of $6.2 billion in 3Q25 (vs. $5.2 billion inflows in 3Q24) but continued revenue growth and expense discipline drove a core EBITDA margin of 30.9%. Gross flows were $47.3 billion and average AUMA rose ~10% year‑over‑year to ~$1,066 billion.

Capital, balance sheet and shareholder value

LICAT ratio (MLI) was 138%; financial leverage ratio 22.7%. Book value per common share was $26.07 (up 7% YoY) and adjusted book value per common share was $38.22 (up 12% YoY).

Strategic actions and M&A

Completed acquisition of 75% of Comvest Credit Partners (closed Nov. 3, 2025) to expand private credit capabilities; agreement to acquire PT Schroder Investment Management Indonesia; and a 50:50 proposed life insurance JV with Mahindra & Mahindra to enter the India insurance market (subject to approvals).

Actuarial review and modelling

Annual actuarial methods and assumptions review produced a net favourable impact — a $605 million decrease in pre‑tax fulfilment cash flows — partly driven by a favourable review of U.S. long‑term care assumptions (net favourable LTC impact ~$77 million pre‑tax).

Risks and forward commentary

Management reiterated confidence in its refreshed strategy and 2027 targets but noted risks (market experience variability, U.S. claims trends, Global Minimum Tax impacts, and ongoing regulatory approvals for announced transactions) and pointed to continuing focus on disciplined capital deployment and digital/AI investments.