Manulife Financial Corporation reported third‑quarter 2025 results that surpassed analyst expectations, with core earnings of $2.0 billion—an increase of 10% from the same period last year. Core earnings per share rose to $1.16, up 16% year‑over‑year and beating the consensus estimate of $0.75 by $0.41, a 55% beat that underscored the company’s strong profitability and disciplined cost management. Core return on equity climbed to 18.1%, reflecting improved asset quality and efficient capital deployment.
Segment performance highlighted the company’s geographic strengths and headwinds. Asia generated $550 million in core earnings, up 29% YoY, driven by robust demand for life‑insurance products and higher pricing power in the region. Canada added $428 million, a modest 4% increase, while the U.S. segment saw a 20% decline in core earnings, reflecting higher claims experience and a challenging life‑insurance environment. Global Wealth and Asset Management (Global WAM) grew 9% YoY, supported by net inflows and higher fee income, even as the segment faced net outflows in certain markets. APE sales rose 8% to $2.576 billion, and new‑business contractual service margin increased 25% to $966 million, indicating healthy growth in both underwriting and fee‑based businesses.
Core EBITDA margin expanded to 30.9% from 27.8% in the prior quarter, a 310‑basis‑point gain that reflects a favorable mix shift toward higher‑margin fee‑based services and effective cost controls. The margin improvement helped offset the modest decline in net income attributable to shareholders, which stood at $1.799 billion—slightly down from $1.839 billion in Q2 but flat against the same period a year earlier. The stable net income, despite higher operating expenses, signals that the company’s earnings power remains resilient amid market volatility.
Phil Witherington, President and CEO, said the quarter demonstrated “focused execution and the strength and diversity of our global franchise.” He highlighted record core earnings in Asia, Global WAM and Canada, and noted that the company’s disciplined capital deployment—illustrated by the acquisition of Comvest Credit Partners and the agreement to acquire Schroders Indonesia—positions Manulife to capture growth in high‑potential markets. CFO Colin Simpson added that the company’s core return on equity and book value per share improved meaningfully year‑over‑year, and that a recent actuarial review produced a favorable impact of $605 million on pre‑tax fulfillment cash flows, reinforcing the firm’s robust capital position.
The results were well received by investors, who welcomed the strong EPS beat and margin expansion. Analysts praised the company’s ability to generate record core earnings in key growth segments while maintaining a solid return on equity. The market reaction was driven primarily by the EPS beat, the expansion of the core EBITDA margin, and the company’s clear focus on high‑growth markets and disciplined capital deployment. Headwinds remain in the U.S. life‑insurance business and in Global WAM net outflows, but the company’s strategic initiatives—such as the Longevity Institute and its inclusion on TIME’s 2025 World’s Best Companies list—signal a long‑term commitment to innovation and sustainability.
Manulife’s performance supports its 2027 targets for core return on equity and core earnings per share growth, and the company’s disciplined approach to capital deployment and strategic acquisitions positions it to navigate ongoing headwinds while capitalizing on opportunities in Asia, Canada and its wealth‑management platform. The company’s resilience in a volatile economic environment, combined with its focus on high‑growth markets, underpins a positive outlook for the remainder of the year and beyond.
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