Manulife reported record core earnings of $2.1 billion in the third quarter, up 4% on a constant exchange rate basis, driven by double-digit growth in Asia. Its Canadian business had a mixed quarter, with weaker group insurance results.
Core earnings per share rose 6% to a record $1.24, and core return on equity was 17.8%. Net income attributed to shareholders fell to $1.4 billion from $1.8 billion, mainly because of weaker returns on alternative long-duration assets, including private equity, real estate and farmland, and a net charge related to its Vietnam operations.
“These results reflect the disciplined execution of the strategy we launched a year ago and our ability to deliver sustained growth in an uncertain environment,” said Phil Witherington, president and CEO.
Canadian core earnings rose 3% to $440 million. That reflected better claims experience in individual insurance, higher earnings at Manulife Bank and wider investment spreads, partly offset by unfavourable group insurance claims and higher expected credit loss provisions. Net income from Canada fell 54% to $205 million, hit by market experience charges and the effects of the annual actuarial review.
APE sales in Canada rose 3%, driven by individual insurance, though group insurance sales fell. New business CSM rose 5%.
During the quarter, Manulife added eight new segregated funds and broadened access to 11 others. It also began offering AI-enabled virtual physiotherapy through Sword to eligible group benefits members on disability with musculoskeletal conditions.
Manulife returned $1.3 billion to shareholders in the quarter. Its LICAT ratio was 136%. The annual review of actuarial methods and assumptions produced a net favourable impact overall, though it reduced net income attributed to shareholders by $175 million after tax.
In Global Wealth and Asset Management, net outflows narrowed to $3.6 billion from $6.2 billion a year earlier. Retail flows in Canada improved, but retirement outflows rose, partly because of lower new plan sales in Canada.
For group benefits advisors, the unfavourable group claims and lower group sales suggest Manulife may be cautious on group pricing heading into 2027 renewals. For individual life advisors, Manulife’s Canadian individual insurance business is performing well, with sales and claims experience both improving.
