Manulife Q2 2025 net income jumps despite dip in core earnings

​Manulife Financial Corporation reported net income attributed to shareholders of C$1.8 billion for Q2 2025, an increase of C$0.7 billion from the same period in 2024.

“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. Global WAM further expanded its core EBITDA margin4 and delivered double-digit core earnings growth compared with the prior year quarter.
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“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 said.
 
“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 C$1.1 billion since the start of the year, demonstrating our steadfast commitment to enhancing shareholder value, ” Colin Simpson, Manulife Chief Financial Officer said,
 
Core earnings of C$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.
• U.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 C$12 million, primarily driven by lower long-term incentive compensation.

Net Income attributed to shareholders of C$1.8 billion in 2Q25, C$0.7 billion higher compared with 2Q24

The C$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.