MFC · Manulife Financial Corp

Manulife’s Q1 2026 results reflect robust underlying profitability and strategic execution amid macroeconomic uncertainty. Core earnings rose 8% year-over-year to $1.8 billion, supported by strong performance in Asia (+22% core earnings, +15% NBV) and disciplined expense management in Global WAM, where core EBITDA margin improved to 29.0%. The 11% growth in core EPS to $1.06 underscores the resilience of Manulife’s diversified model, while GAAP EPS surged 178% to $0.65 — largely due to a $0.7 billion realized loss from the RGA U.S. Reinsurance Transaction in Q1 2025 that did not recur. Segment-level dynamics reveal divergent trends: Canada’s core earnings declined 6%, pressured by higher long-term disability claims and transformational investments in Group Insurance; the U.S. saw a 4% drop in core earnings, primarily from lower investment spreads despite improved insurance experience. New business momentum remained strong, with new business CSM up 16% overall and double-digit growth across all three insurance segments — highlighting continued traction in product enhancements and distribution expansion. Global WAM’s $4.4 billion net outflows contrast sharply with $0.5 billion in net inflows a year earlier, driven by large redemptions in North American active mutual funds and elevated retirement withdrawals, though Institutional Asset Management delivered $4.2 billion in net inflows. Strategic initiatives advanced meaningfully: the acquisition of Schroders Indonesia strengthened Manulife’s position in Southeast Asia, while AI deployments — including Quick Quote automation in underwriting and AI-powered sales platforms — delivered measurable efficiency gains. The Board’s declaration of a $0.485 quarterly dividend affirms capital discipline and shareholder return commitment, consistent with the $1.2 billion returned to shareholders in the quarter via dividends and buybacks.