Manulife (MFC.US) Reports 16% Core EPS Growth, C$2.0 Billion Core Earnings in Q3 2025

Manulife (MFC.US) announced its third quarter results for the period ended September 30, 2025, reporting record core earnings of C$2.0 billion, marking a 10% increase on a constant exchange rate (CER) basis compared to Q3 2024. Core diluted earnings per common share (EPS) reached C$1.16, a significant 16% rise from the prior year. Net income attributed to shareholders was C$1.8 billion, aligning with Q3 2024 figures.

The company's core earnings exceeded analyst EPS estimates of C$0.74, driven by strong performance across its key segments.

Strong Segment Performance and Business Drivers

Manulife's core earnings growth was largely attributed to robust business expansion in Global Wealth and Asset Management (Global WAM), Asia, and Canada. Asia core earnings saw a substantial 29% increase, fueled by continued business growth and improved insurance experience. Global WAM core earnings grew by 9%, benefiting from higher net fee income and disciplined expense management.

Canada's core earnings rose by 4%, driven by increased investment spreads and growth in Group Insurance. Despite a 20% decrease in U.S. core earnings due to unfavorable life insurance claims, overall new business momentum remained strong. APE sales, new business Contractual Service Margin (CSM), and new business value (NBV) increased by 8%, 25%, and 11%, respectively, reflecting broad-based demand across insurance segments.

Strategic Capital Deployment and Digital Innovation

Manulife has been actively deploying capital to enhance capabilities and foster growth, including the acquisition of 75% of Comvest Credit Partners to strengthen private credit offerings. The company also entered an agreement to acquire Schroders Indonesia, aiming to reinforce its position as the largest asset manager in Indonesia. Additionally, Manulife formed a 50:50 life insurance joint venture with Mahindra & Mahindra Ltd. to enter the Indian insurance market, expanding its global footprint.

The company is also prioritizing digital solutions and AI-powered innovations to deliver a differentiated customer experience. Initiatives include the launch of the Manulife AI Assistant in Hong Kong for customer inquiries, an enhanced online application form in Canada for life and health insurance, and a GenAI-powered coaching tool for Licensed Insurance Advisor supervisors. These innovations are designed to improve efficiency, streamline processes, and enhance customer service.