Manulife Financial’s first-quarter results underscored the growing weight of Asia in the Canadian insurer's global business, as the region drove an 8% rise in core earnings to C$1.8 billion on a constant exchange rate basis.
Net income attributable to shareholders came in at C$1.1 billion in the three months to March 31, 2026, C$700 million higher than a year earlier. Core earnings per share advanced 11% to C$1.06, while reported EPS surged 178% to C$0.65.
Core return on equity rose 90 basis points to 16.5%, and reported ROE was 10.1%. The LICAT capital ratio stood at 136%, with the financial leverage ratio easing to 22.5% from 23.9%.
The print extends a run of strong numbers for Manulife, which closed 2025 with record core earnings of C$7.5 billion, core EPS of C$4.21 and a core ROE of 16.5%. The Toronto-based group also raised its dividend by 10.2% and unveiled a fresh share buyback covering up to about 2.5% of its stock in late February 2026.
Annualised premium equivalent sales rose 7% to C$2.82 billion in the quarter, new business contractual service margin climbed 16% to C$1.02 billion, and new business value grew 7% to C$944 million.
Global Wealth and Asset Management, however, swung to net outflows of C$4.4 billion, against inflows of C$500 million a year earlier.
Asia, long viewed as Manulife's main growth engine, again outpaced the rest of the group. Segment core earnings jumped 22% to US$598 million and new business value rose 15%, building on a 2025 in which the region's APE, new business CSM and NBV climbed 18%, 27% and 20% respectively.
Canada was a softer spot, with core earnings down 6% as Group Insurance absorbed higher long-term disability claims. In the United States, core earnings slipped 4% on narrower investment spreads, though APE sales jumped 29%, pointing to firmer demand for the insurer's revamped product line-up.
Read more: Manulife sets record 2025 core earnings
Global WAM core earnings edged up 2%, supported by higher net fee income, the contribution from newly acquired Manulife | Comvest and tighter cost control.
Those gains were partly offset by Hong Kong's eMPF transition and softer performance fees, while core EBITDA margin widened 60 basis points to 29%.
President and chief executive officer Phil Witherington (pictured above) framed the quarter as proof of the insurer's diversification strategy.
“We generated double-digit growth in core EPS, and new business momentum continued to build, driving double-digit growth in new business CSM across all three insurance segments, despite macroeconomic uncertainty," he said.
Witherington also flagged new health tie-ups in Asia and Canada, progress in Global WAM through a partnership with Britain's L&G, and a broader rollout of artificial intelligence across the group.
Chief financial officer Colin Simpson said the balance sheet held firm through a choppy quarter, with book value per common share reaching an all-time high. Manulife returned C$1.2 billion to shareholders via dividends and buybacks, and bankrolled the purchase of Schroders Indonesia.
"Core ROE was 16.5% for the quarter, an increase of 90 basis points compared with 1Q25, and our expense efficiency ratio of 46% remained in-line year over year," Simpson said.
