Manulife Financial Corporation reported solid first-quarter 2026 figures, highlighted by stronger profitability, sustained insurance momentum and a stable capital base.
Core earnings rose 8% year-on-year to CAD 1.84 billion, propelling diluted core EPS to CAD 1.06, an 11% increase on a constant-currency basis. Net income attributed to shareholders advanced to CAD 1.15 billion, reversing last year’s market-driven weakness. The corresponding return on common equity improved to 16.5%, while reported ROE reached 10.1%.
Insurance growth remained a key driver. Annualized premium equivalent (APE) sales expanded 7% to CAD 2.82 billion and new-business contractual service margin (CSM) climbed 16% to CAD 1.02 billion, supported by double-digit increases across all regions. New business value grew 7% to CAD 944 million. Post-tax CSM net of non-controlling interests stood at CAD 21.26 billion on 31 March 2026, up CAD 0.52 billion versus year-end.
Segment performance • Asia delivered the strongest contribution, with core earnings up 22% to USD 598 million and APE sales up 11%, led by Hong Kong, Japan and Singapore. New-business CSM and NBV each increased 15%. • Canada recorded core earnings of CAD 352 million, down 6% owing to less favourable Group Insurance claims; new-business CSM, however, rose 13% on higher participating life sales. • U.S. core earnings softened 4% to USD 241 million as lower investment spreads offset improved insurance experience; APE sales gained 29% following indexed universal life product enhancements. • Global Wealth & Asset Management posted core earnings of CAD 448 million, essentially flat year-on-year, and lifted core EBITDA margin to 29.0%. Net outflows totalled CAD 4.40 billion, compared with inflows a year earlier, reflecting retail mutual-fund redemptions in North America.
Balance-sheet and capital metrics remained resilient. The LICAT ratio for Manufacturers Life Insurance Company was 136%, excess capital facilitated share buybacks and dividends of CAD 1.20 billion, and the financial leverage ratio improved 140 basis points to 22.5%. Adjusted book value per common share reached a record CAD 39.01, while book value per share rose to CAD 26.30.
Strategic activity during the quarter included the completed acquisition of PT Schroder Investment Management Indonesia (USD 3.5 billion AUM) and a distribution partnership with Legal & General. Continued investment in artificial intelligence is expected to enhance underwriting efficiency, advisor engagement and operational productivity.
Management reaffirmed the firm is positioned to meet medium-term targets despite macro-economic uncertainty, underpinned by its diversified geographic footprint and growing health, wealth and longevity offerings.
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