Manulife Financial Corporation delivered a solid second quarter in 2025, recording net income of $1.8 bn, a sharp $0.7 bn increase over the same period last year.
Growth in Asia, Canada, and Global Wealth and Asset Management (Global WAM) offset U.S. headwinds, with the company also unveiling a deal to acquire a majority stake in U.S.-based Comvest Credit Partners, a move that will add $14.7 bn in assets to its platform.
Core earnings came in at $1.7 bn, down 2 % from last year on a constant exchange rate basis, but excluding changes in expected credit loss provisions, earnings rose to $1.8 bn, up 2 %.
Earnings per share climbed to $0.98, an 88 % year-over-year jump, while core EPS edged up 2 % to $0.95. The core return on equity stood at 15 %, and the Life Insurance Capital Adequacy Test ratio remained strong at 136 %.
- Asia continued to lead performance with net income of US$600 mn, up 44 %, and core earnings rising 13 % to $520 mn, driven by higher sales in Hong Kong and across other Asian markets. Annualized premium equivalent sales in the region surged 31 %, while new business contractual service margin increased 34 % and new business value rose 28 %.
- Canada posted net income of $390 mn compared with $79 mn a year earlier, with core earnings up 4 % to $419 mn.
- The U.S. saw net income fall to US$26 mn, as unfavourable life insurance claims and strengthened credit provisions weighed on results, pushing core earnings down 53 %.
Global WAM delivered strong momentum, generating $463 mn in core earnings, a 19 % increase from the prior year, with net income climbing to $482 mn.
Net inflows reached $0.9 bn, up from $0.1 bn last year, helped by $2 bn in retirement inflows and $2.1 bn from institutional asset management.
Retail outflows totaled $3.2 bn, reflecting weaker third-party intermediary sales in North America and lower money market fund flows in mainland China, partly offset by growth in the retail wealth platform.
The quarter also saw substantial progress in new business. Company-wide annualized premium equivalent sales grew 15 % to $2.23 bn, new business CSM climbed 37 % to $882 mn, and new business value improved 20 % to $846 mn.
Manulife’s organic CSM increased $1.16 bn in the first half, representing 11 % annualized growth, primarily from new sales, interest accretion, and favourable insurance experience.
Manulife’s acquisition of a 75% stake in Comvest Credit Partners, expected to close in Q4 2025 pending regulatory approvals, will deepen its private credit capabilities. The transaction adds scale to Global WAM and is positioned to support future earnings.
President and CEO Phil Witherington said the results highlight the company’s momentum across its highest-potential lines, with all three insurance segments delivering more than 30% growth in new business CSM.
Asia’s improved new business value margin, strong APE sales, and Global WAM’s double-digit core earnings growth reflected the strength of the diversified model.
The company continued investing in technology, expanding AI deployment across operations.
- In Asia, it rolled out VOICE in Singapore and Japan, an analytics tool using generative AI to interpret customer sentiment and call-center data in near real-time.
- In the U.S., it applied generative AI in its long-term care business to improve claims automation, and in Canada, it launched a fully digital travel insurance platform aimed at streamlining distributor workflows.
Book value per share rose 5% to $24.90, while adjusted book value climbed 7% to $35.78. The company repurchased $1.1 bn in shares since January, reinforcing its shareholder return strategy.
While the quarter reflected U.S. insurance headwinds and increased provisions for expected credit losses, management emphasized that the underlying fundamentals remain strong.
Global WAM, Asia, and Canada delivered growth that offset market challenges, and the new business pipeline continues to expand across geographies.
