Manulife posts double-digit core EPS gain as all insurance segments accelerate in 2Q26

Bulletin Express08-06

Manulife Financial Corporation reported solid second-quarter 2026 results, led by broad-based growth across insurance, wealth and asset-management activities.

Core earnings rose 12.00 % year over year to C$1.92 billion, while net income attributed to shareholders advanced 17.00 % to C$2.11 billion. Core EPS increased 16.00 % to C$1.09 and headline EPS climbed 22.00 % to C$1.20. Core ROE improved to 16.30 %; statutory ROE reached 18.00 %.

Insurance momentum was evident across every geography. Annualized premium equivalent (APE) sales grew 21.00 % to C$2.70 billion, new business contractual service margin (CSM) expanded 16.00 % to C$1.02 billion, and new-business value advanced 10.00 % to C$0.93 billion. Asia contributed most of the gains, with core earnings up 21.00 % to US$616 million and APE sales up 21.00 % to US$1.50 billion; NBV margin stood at 36.30 %.

Global Wealth and Asset Management generated net inflows of C$0.40 billion versus C$0.90 billion a year earlier. Retail outflows narrowed, and Institutional Asset Management inflows strengthened to C$6.70 billion, aided by fixed-income, money-market and private-credit mandates. Segment core earnings increased 9.00 % to C$0.51 billion, and the core EBITDA margin improved 110 basis points to 31.20 %.

The company’s balance-sheet metrics remained strong. The Manufacturers Life Insurance Company’s LICAT ratio was 136 %. The CSM balance reached C$27.26 billion, up 20.00 % from a year earlier, reinforcing future earnings capacity. Financial leverage declined 140 basis points to 22.20 %, and Manulife returned C$2.60 billion to shareholders through dividends and buybacks during the first half.

Management highlighted ongoing investments in distribution, high-net-worth insurance solutions, ETF product launches, and artificial-intelligence capabilities. A long-term-care reinsurance transaction announced alongside the results is expected to close in fourth-quarter 2026, further reducing risk exposure according to the company.

Manulife will discuss the results on a conference call at 08:00 ET on 6 August 2026.

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