Manulife Reports Third Quarter 2025 Results

Executive Summary

• Manulife reported third quarter 2025 results featuring record core earnings of $2.0 billion (up 10% CER) and double-digit growth in core EPS of $1.16 (up 16% CER).
• The company announced the completion of the acquisition of Comvest Credit Partners and entered into agreements to acquire Schroders Indonesia and establish a 50:50 life insurance joint venture with Mahindra & Mahindra in India.
• Insurance new business momentum continued with APE sales up 8%, new business CSM up 25%, and NBV up 11% year-over-year, while Global WAM experienced net outflows of $6.2 billion.

Key Details

• Financial Performance (3Q25 vs 3Q24):
  • Core earnings: $2.0 billion (up 10% CER); excluding ECL impact, core earnings were $2.0 billion (up 6%).
  • Net income attributed to shareholders: $1.8 billion (in line with 3Q24).
  • Core EPS: $1.16 (up 16% CER); excluding ECL impact, core EPS was $1.14 (up 11%).
  • EPS: $1.02 (up 2% CER).
  • Core ROE: 18.1%; ROE: 16.0%.
  • Book value per common share: $26.07 (up 7%); Adjusted BV per common share: $38.22 (up 12%).
  • LICAT ratio: 138%.
  • Financial leverage ratio: 22.7%.
• Insurance Business Metrics:
  • APE sales: $2.58 billion (up 8% CER).
  • New business CSM: $966 million (up 25% CER).
  • New business value (NBV): $906 million (up 11% CER).
  • CSM balance: $24.7 billion (up 11% annualized organic growth).
• Segment Results:
  • Asia: Core earnings $550 million (up 29% CER); Net income $649 million (up 7%).
  • Canada: Core earnings $428 million (up 4%); Net income $449 million (up 4%).
  • U.S.: Core earnings $241 million (down 20%); Net loss attributed to shareholders $(54) million.
  • Global WAM: Core earnings $525 million (up 9%); Net income $523 million (up 5%).
• Global WAM Flows:
  • Net outflows: $6.2 billion (vs. net inflows of $5.2 billion in 3Q24).
  • Retirement net outflows: $1.6 billion.
  • Retail net outflows: $3.9 billion.
  • Institutional Asset Management net outflows: $0.7 billion.
  • Core EBITDA margin: 30.9% (up 310 bps).
• Strategic Transactions:
  • Completed acquisition of 75% of Comvest Credit Partners (U.S. private credit manager with US$14.7 billion AUM) on November 3, 2025.
  • Entered agreement to acquire PT Schroder Investment Management Indonesia.
  • Entered agreement to establish a 50:50 life insurance joint venture with Mahindra & Mahindra Ltd. in India.
• Actuarial Review:
  • Annual review of actuarial methods and assumptions resulted in a net favorable impact of $605 million decrease in pre-tax fulfillment cash flows.
  • U.S. long-term care experience review contributed a $77 million decrease in pre-tax fulfillment cash flows.
• Digital & Product Innovations:
  • Launched Manulife AI Assistant in Hong Kong.
  • Enhanced life/health insurance online application in Canada.
  • Partnered with Munich Re Life US to raise instant underwriting decision eligibility to US$5 million.
  • Launched FutureChoice™ retirement plan solution in the U.S.
  • Expanded access to GRAIL’s Galleri® multi-cancer test for John Hancock Vitality members in the U.S.

Notable Quotes

• "We delivered another quarter of strong financial and operating performance, driven by focused execution and the strength and diversity of our global franchise. Core earnings in Asia, Global WAM and Canada reached record levels... And our acquisition of Comvest Credit Partners and the agreement to acquire Schroders Indonesia reinforce our disciplined, strategic approach to capital deployment..." — Phil Witherington, Manulife President & Chief Executive Officer
• "Core ROE and book value per common share improved meaningfully year over year... With a LICAT ratio of 138% and a financial leverage ratio of 22.7%, our robust capital position and strong balance sheet position us well for the future." — Colin Simpson, Manulife Chief Financial Officer