Manulife Reports 11% Core EPS Growth in First Quarter
The insurance provider reported core earnings of $1.8 billion, representing an 8% increase on a constant exchange rate basis.
Manulife Financial Corporation (MFC), an international financial services provider, reported first quarter 2026 core earnings of $1.8 billion, up 8% on a constant exchange rate basis compared to the first quarter of 2025. Core earnings per share rose 11% to $1.06 a share. Net income attributed to shareholders increased by $0.7 billion from the prior-year period to $1.1 billion.
New business momentum drove double-digit growth in the contract service margin (CSM) across all three insurance segments. Total new business CSM rose 16% to $1.02 billion, while annual premium equivalent (APE) sales increased 7% to $2.82 billion. New business value rose 7% to $944 million.
Asia served as a primary driver of this growth, with core earnings in the region rising 22% to $598 million. The Asia segment also saw a 15% increase in new business value and an 11% rise in APE sales. In the United States, APE sales rose 29% to $155 million, though core earnings fell 4% to $241 million. Canada reported a 6% decline in core earnings to $352 million and a 15% drop in APE sales.
Global Wealth and Asset Management (Global WAM) experienced net outflows of $4.4 billion, compared with net inflows of $0.5 billion in the first quarter of 2025. Despite these outflows, the company said the core EBITDA margin for Global WAM improved year over year.
Capital deployment included the acquisition of Schroders Indonesia and the return of $1.2 billion to shareholders through dividends and share buybacks. Book value per common share reached an all-time high of $26.30. The company's LICAT ratio stood at 136% and the financial leverage ratio improved to 22.5% from 23.9% in the prior-year quarter.
Core return on equity rose 90 basis points to 16.5%. The company maintained an expense efficiency ratio of 46%.
The Board of Directors declared a quarterly common shareholders' dividend of $0.485 a share, payable on or after June 19, 2026.