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TORONTO, Aug. 6, 2025 /PRNewswire/ - Manulife Financial Corporation ("Manulife" or the "Company") reported its second quarter results for the period ended June 30, 2025, delivering continued strong momentum in new business growth and strong earnings growth in our highest potential businesses.1
Key highlights for the second quarter of 2025 ("2Q25") include:
Core earnings2 of $1.7 billion, a 2% decrease on a constant exchange rate basis3 compared with the second quarter of 2024 ("2Q24")Excluding the impact of the change in expected credit loss ("ECL"), core earnings was $1.8 billion, up 2% from 2Q242,3Net income attributed to shareholders of $1.8 billion, an increase of $0.7 billion compared with 2Q24Core EPS4 of $0.95, up 2%3 from 2Q24. EPS of $0.98, up 88%3 from 2Q24Excluding the impact of the change in ECL, core EPS was $0.99, up 7% from 2Q243,4Core ROE4 of 15.0% and ROE of 15.6%LICAT ratio5 of 136%APE sales up 15%6, new business CSM up 37%3 and new business value ("NBV") up 20%6 from 2Q247,8Global Wealth and Asset Management ("Global WAM") net inflows6 of $0.9 billion, up from $0.1 billion in 2Q24Announced today the agreement to acquire a 75% stake in Comvest Credit Partners, adding US$14.7 billion9 to our Global WAM platform. The transaction is expected to close in the fourth quarter of 202510
"Our second-quarter results underscore the strength and resilience of our global franchise, as we continue to deliver high-quality growth across a diversified portfolio. All three insurance segments achieved over 30% growth year over year in new business CSM, clear evidence of our momentum and future earnings potential. Notably, Asia continued to generate strong APE sales and increased NBV margin sequentially.6 Global WAM further expanded its core EBITDA margin4 and delivered double-digit core earnings growth compared with the prior year quarter.7
"It's an incredible privilege to lead Manulife and I'm energized by the passion and performance of this team. We are building on a strong foundation and are well-positioned to navigate a dynamic macroeconomic landscape with clarity and purpose. As we write Manulife's next chapter, I'm confident our strong commitment to customers, digital and AI-enabled solutions, will set new standards for excellence, efficiency, and sustainable growth across our global franchise.
"Investing in our high-potential businesses with strategically focused intent is critical, and I'm excited to announce our acquisition of Comvest Credit Partners, adding highly complementary and scaled capabilities in private credit, an asset-strategy that we believe will contribute to future growth across our Global Wealth and Asset Management lines of business."
-- Phil Witherington, Manulife President & Chief Executive Officer
"While core EPS growth was dampened by headwinds related to unfavourable life insurance claims experience in the U.S. and strengthened expected credit loss provisions, the underlying fundamentals of our businesses remained robust and we are reporting strong earnings growth in Global WAM, Asia and Canada. This is supported by our continued expense discipline which drove a 3% reduction in overall core expenses compared with 2Q24.2 Book value per common share was resilient with a 5% increase year over year, and we continue buying back common shares, including $1.1 billion since the start of the year, demonstrating our steadfast commitment to enhancing shareholder value."
-- Colin Simpson, Manulife Chief Financial Officer
Results at a Glance
($ millions, unless otherwise stated)
Quarterly Results
YTD Results
2Q25
2Q24
Change3,6
2025
2024
Change3,6
Net income attributed to shareholders
$ 1,789
$ 1,042
72 %
$ 2,274
$ 1,908
16 %
Core earnings7
$ 1,726
$ 1,737
(2) %
$ 3,493
$ 3,447
(2) %
EPS ($)
$ 0.98
$ 0.52
88 %
$ 1.23
$ 0.97
23 %
Core EPS ($)7
$ 0.95
$ 0.91
2 %
$ 1.94
$ 1.82
3 %
ROE
15.6 %
9.0 %
6.6 pps
9.7 %
8.5 %
1.2 pps
Core ROE7
15.0 %
15.7 %
(0.7) pps
15.3 %
16.0 %
(0.7) pps
Book value per common share ($)
$ 24.90
$ 23.71
5 %
$ 24.90
$ 23.71
5 %
Adjusted BV per common share ($)4,7
$ 35.78
$ 33.32
7 %
$ 35.78
$ 33.32
7 %
Financial leverage ratio (%)4,7
23.6 %
25.0 %
(1.4) pps
23.6 %
25.0 %
(1.4) pps
APE sales
$ 2,230
$ 1,907
15 %
$ 4,919
$ 3,790
26 %
New business CSM
$ 882
$ 628
37 %
$ 1,789
$ 1,286
34 %
NBV7
$ 846
$ 691
20 %
$ 1,753
$ 1,332
27 %
Global WAM net flows ($ billions)6
$ 0.9
$ 0.1
417 %
$ 1.4
$ 6.8
(80) %
Results by Segment
($ millions, unless otherwise stated)
Quarterly Results
YTD Results
2Q25
2Q24
Change6
2025
2024
Change6
Asia (US$)
Net income attributed to shareholders
$ 600
$ 424
44 %
$ 1,035
$ 694
49 %
Core earnings7
520
449
13 %
1,012
914
10 %
APE sales
1,233
920
31 %
2,645
1,870
41 %
New business CSM
480
349
34 %
978
713
36 %
NBV7
451
346
28 %
908
669
35 %
Canada
Net income attributed to shareholders
$ 390
$ 79
394 %
$ 612
$ 352
74 %
Core earnings
419
402
4 %
793
766
4 %
APE sales
345
520
(34) %
836
970
(14) %
New business CSM
100
76
32 %
191
146
31 %
NBV
161
159
1 %
341
316
8 %
U.S. (US$)
Net income attributed to shareholders
$ 26
$ 98
(73) %
$ (371)
$ 18
- %
Core earnings
141
303
(53) %
392
638
(39) %
APE sales
130
93
40 %
250
206
21 %
New business CSM
86
54
59 %
156
126
24 %
NBV
46
41
12 %
94
78
21 %
Global WAM
Net income attributed to shareholders
$ 482
$ 350
36 %
$ 925
$ 715
25 %
Core earnings7
463
386
19 %
917
735
22 %
Gross flows ($ billions)6
43.8
41.4
5 %
94.1
86.9
5 %
Average AUMA ($ billions)6
1,005
933
7 %
1,022
917
9 %
Core EBITDA margin (%)
30.1 %
26.3 %
380 bps
29.2 %
25.9 %
330 bps
Strategic Highlights
We are embedding AI across our business, accelerating our journey to become a Digital, Customer Leader and earning the top spot for AI maturity in our industry
In Global WAM, we launched an AI-powered sales enablement solution in U.S. Retirement, delivering real-time insights and personalized content to enhance our sales operation and productivity, improve our sales close ratio, and drive revenue growth. This doubled the number of sales opportunities compared with 2Q24 and reduced the time spent on information searches by over 50%.
In Asia, we rolled out VOICE in Singapore and Japan, a multi-signal dashboard that includes call trend analysis, net sentiment scores, topic trends and deep dive insights from call center transcripts. VOICE utilizes GenAI to categorize data, find correlations, and customize insights by analyzing near real-time trends from customer interactions. These insights help us to better understand customer sentiment and key interests, enhance services, improve training, and identify opportunities to better deliver value to our customers.
In the U.S., we launched a GenAI functionality in long-term care ("LTC") to enhance automated claims processing to strengthen the value of our LTC business and provide insights for future innovations.
In Canada, we launched an end-to-end digital travel insurance platform that modernizes the distributor experience and simplifies the purchasing process for Canadians and their families.
We were ranked first in the life insurance sector for AI maturity in the inaugural Evident AI Index for Insurance11, ranking in the top five across the insurance industry overall. Our strong performance, particularly around Leadership and Transparency, is a testament to the multi-year investments in AI across the Company, reflecting our capability in scaling AI effectively.
We continue to strengthen our distribution capabilities and expand product offerings to meet evolving customer needs
In Asia, we demonstrated the strength of our agency force with a 23% year-over-year increase in the number of Million Dollar Round Table ("MDRT") members for Manulife Asia, positioning us as the third largest globally in 2025 MDRT membership.12
In addition, we became the first international life insurer to establish an office in the Dubai International Financial Centre13 dedicated to advising on and offering life insurance contracts to high-net-worth ("HNW") customers. This strategic move deepens our presence in the Middle East and enhances our ability to address the growing wealth and protection needs of HNW and ultra-HNW individuals in the region.
In Global WAM, we continued to deliver comprehensive investment solutions by expanding our Global Retail product lineup with the launch of a diversified real assets strategy in Malaysia to help investors navigate market volatility. In addition, we introduced four new actively managed ETF series in Canada, enhancing access to diversified equity and fixed income exposures, to meet evolving investor needs.
Furthermore, we enhanced the Manulife iFUNDS platform, making it the first integrated digital wealth solution in Singapore that offers advisors a unified view of clients' Unit Trust and Investment-Linked Plan ("ILP") holdings. By integrating these into a single platform and incorporating AI-powered ILP analytics capabilities, the enhancements streamline portfolio oversight, accelerate transaction execution, and empower advisors to deliver more personalized and insightful financial guidance.
In Canada, we partnered with Maven Clinic, the world's largest virtual clinic for women's and family health14, to offer eligible Group Benefits members 24/7 virtual access to personalized support during some of their most important stages of life, including fertility, maternity, parenting, and menopause. This initiative addresses critical care gaps that impact women's health and workforce participation.
In the U.S., we expanded our wholesaling team to pursue more targeted growth strategies and accelerate our penetration within the U.S. HNW and mass affluent markets.
Resilient earnings with strong contributions from Global WAM and Asia15
Core earnings of $1.7 billion in 2Q25, down 2% from 2Q24
Core earnings decreased as strong business growth in Global WAM, Asia and Canada was offset by unfavourable life insurance claims experience in the U.S. and strengthened ECL provisions.
Asia core earnings increased 13%, reflecting continued business growth, favourable claims experience and improved impact of new business, partially offset by strengthened ECL provisions.Global WAM core earnings increased 19%, driven by higher net fee income from favourable market impacts over the past 12 months and positive net flows, higher performance fees and continued expense discipline, partially offset by the impact of lower fee spreads and higher taxes.Canada core earnings were up 4%, as business growth in Group Insurance and higher investment spreads more than offset the impacts of a release in ECL provision in 2Q24 and the RGA Canadian universal life reinsurance transaction.16U.S. core earnings decreased 53%, reflecting unfavourable life insurance claims experience, lower investment spreads and strengthened ECL provisions.Corporate and Other core earnings improved by $12 million, primarily driven by lower long-term incentive compensation.
Net Income attributed to shareholders of $1.8 billion in 2Q25, $0.7 billion higher compared with 2Q24
The $0.7 billion increase in net income was driven by improved market experience. The net gain from market experience in 2Q25 reflects higher-than-expected returns on public equities and gains from derivatives and hedge accounting ineffectiveness, partially offset by lower-than-expected returns on alternative long-duration assets, mainly related to real estate and private equity investments.
Continued momentum in insurance new business results and positive net flows in Global WAM
APE sales, new business CSM and NBV increased 15%, 37% and 20%, respectively, reflecting continued sales momentum and margin expansions
Asia continued to generate strong growth in APE sales, new business CSM and NBV, with a year-over-year increase of 31%, 34% and 28%, respectively, reflecting higher sales volumes in Hong Kong and Asia Other.17 NBV margin of 40.0% was approximately in line with the prior year quarter and increased sequentially.In Canada, APE sales decreased 34%, as strong participating life insurance sales were more than offset by the non-recurrence of a large-case Group Insurance sale in 2Q24. These sales results, combined with a more favourable product mix, drove a 1% increase in NBV. New business CSM increased 32%, reflecting the strong sales growth in Individual Insurance.U.S. delivered strong new business growth this quarter, increasing APE sales, new business CSM and NBV by 40%, 59% and 12%, respectively, reflecting continued demand for our accumulation insurance products.
Global WAM net inflows of $0.9 billion in 2Q25, $0.8 billion higher compared with net inflows of $0.1 billion in 2Q24
Retirement net inflows of $2.0 billion in 2Q25 increased compared with net outflows of $1.3 billion in 2Q24, reflecting higher retirement plan sales across all geographies and a large-case retirement plan redemption in the U.S. in 2Q24.Retail net outflows of $3.2 billion in 2Q25 increased compared with net outflows of $0.1 billion in 2Q24, driven by lower net sales through third-party intermediaries in North America and in money markets funds in mainland China. This is partially offset by higher net sales through our retail wealth platform.Institutional Asset Management net inflows of $2.1 billion in 2Q25 increased compared with net inflows of $1.4 billion in 2Q24, driven by lower redemptions in fixed income mandates, partially offset by higher redemptions in equity mandates.
New business growth continued to drive higher organic CSM and CSM balance
CSM18 was $22,316 million as at June 30, 2025
CSM increased $189 million compared with December 31, 2024. Organic CSM movement contributed $1,162 million of the increase for the first half of 2025, representing an 11%6 growth on an annualized basis, primarily driven by the impact of new business, interest accretion and net favourable insurance experience, partially offset by amortization recognized in core earnings. Inorganic CSM movement was a decrease of $973 million for the same period, primarily driven by the impacts of changes in foreign currency exchange rates. Post-tax CSM net of NCI2 was $18,527 million as at June 30, 2025.
__________
(1)
Highest potential businesses include Asia segment, Global Wealth and Asset Management, Canada group benefits and North American behavioural insurance products.
(2)
Core earnings, core earnings excluding the impact of the change in ECL, core expenses and post-tax contractual service margin net of NCI ("post-tax CSM net of NCI") are non-GAAP financial measures. For more information on non-GAAP and other financial measures, see "Non-GAAP and other financial measures" below and in our 2Q25 Management's Discussion and Analysis ("2Q25 MD&A").
(3)
Percentage growth/declines in core earnings, core earnings excluding the impact of the change in ECL, diluted core earnings per common share ("core EPS"), diluted earnings (loss) per share ("EPS"), core EPS excluding the impact of the change in ECL, new business contractual service margin net of NCI ("new business CSM"), and net income attributed to shareholders are stated on a constant exchange rate basis and are non-GAAP ratios.
(4)
Core EPS, core EPS excluding the impact of the change in ECL, core ROE, core EBITDA margin, financial leverage ratio and adjusted book value per common share ("adjusted BV per common share") are non-GAAP ratios.
(5)
Life Insurance Capital Adequacy Test ("LICAT") ratio of The Manufacturers Life Insurance Company ("MLI") as at June 30, 2025. LICAT ratio is disclosed under the Office of the Superintendent of Financial Institutions Canada's ("OSFI's") Life Insurance Capital Adequacy Test Public Disclosure Requirements guideline.
(6)
For more information on annualized premium equivalent ("APE") sales, new business value ("NBV"), net flows, gross flows, average asset under management and administration ("average AUMA") and new business value margin ("NBV margin"), see "Non-GAAP and other financial measures" below. In this news release, percentage growth/decline in APE sales, NBV, net flows, gross flows, average AUMA and organic CSM are stated on a constant exchange rate basis.
(7)
2024 quarterly and year-to-date core earnings, NBV, core EPS, core ROE, adjusted BV per common share, and financial leverage ratio have been updated to align with the presentation of Global Minimum Taxes ("GMT") in 2025. See section A7 "Global Minimum Taxes (GMT)" in our 2Q25 MD&A for more information.
(8)
Refers to "Results at a Glance" for 2Q25 and 2Q24 results.
(9)
Includes Comvest fee paying AUM of US$11 billion and Comvest committed capital of US$3.7 billion.
(10)
Subject customary closing conditions and approvals. See "Caution regarding forward-looking statements" below. See the press release announcing the acquisition for further details on the transaction and Comvest Credit Partners.
(11)
The Evident AI Index for Insurance assesses AI maturity across 30 of the most prominent insurance companies in North America and Europe, measuring progress across four key categories: Talent, Innovation, Leadership, and Transparency.
(12)
Announced in July 2025, based on 2024 new business sales.
(13)
The Dubai International Financial Centre is a special economic zone in Dubai designed to facilitate financial and business activities in the Middle East, Africa and South Asia region.
(14)
Maven Clinic, Meet Maven, 2024.
(15)
See section A1 "Profitability" in our 2Q25 MD&A for more information on notable items attributable to core earnings and net income attributed to shareholders.
(16)
The reinsurance transaction with RGA Life Reinsurance Company of Canada ("RGA Canadian Reinsurance transaction") closed April 1, 2024.
(17)
Asia Other excludes Hong Kong and Japan.
(18)
Net of non-controlling interests ("NCI").
Earnings Results Conference Call
Manulife will host a conference call and live webcast on its Second Quarter 2025 results on August 7, 2025, at 8:00 a.m. (ET). To access the conference call, dial 1-800-806-5484 or 1-416-340-2217 (Passcode: 8528599#). Please call in 15 minutes before the scheduled start time. You will be required to provide your name and organization to the operator. You may access the webcast at https://www.manulife.com/en/investors/results-and-reports.
The archived webcast will be available following the call at the same URL as above. A replay of the call will also be available until September 6, 2025, by dialing 1-800-408-3053 or 1-905-694-9451 (Passcode: 1098664#).
The Second Quarter 2025 Statistical Information Package is also available on the Manulife website at https://www.manulife.com/en/investors/results-and-reports.
This earnings news release should be read in conjunction with the Company's Second Quarter 2025 Report to Shareholders, including our unaudited interim Consolidated Financial Statements for the three and six months ended June 30, 2025, prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board, which is available on our website at https://www.manulife.com/en/investors/results-and-reports.html. The Company's 2Q25 MD&A and additional information relating to the Company is available on the SEDAR+ website at https://www.sedarplus.ca and on the U.S. Securities and Exchange Commission's ("SEC") website at https://www.sec.gov.
Any information contained in, or otherwise accessible through, websites mentioned in this news release does not form a part of this document unless it is expressly incorporated by reference.
Media Inquiries
Fiona McLean
(437) 441-7491
fiona_mclean@manulife.com
Investor Relations
Derek Theobalds
(416) 254-1774
derek_theobalds@manulife.com
Earnings
The following table presents net income attributed to shareholders, consisting of core earnings and details of the items excluded from core earnings:
Quarterly Results
YTD Results
($ millions)
2Q25
1Q25
2Q24
2025
2024