Manulife Financial Corporation reported core earnings of C$1.9 billion for the second quarter of 2026, up 12% on a constant exchange rate basis from the same period last year.
Core earnings per share rose 16% to C$1.09, and core return on equity climbed to 16.3%. Net income attributed to shareholders rose to C$2.1 billion.
Asia was the standout performer, with core earnings up 21% to US$616 million, while U.S. core earnings rose 55% to US$218 million on improved claims experience in life and long-term care lines.
Canada core earnings fell 10% to C$379 million, citing unfavorable claims experience and higher expenses in Group Insurance. APE sales in Canada still rose 23%, driven by stronger large-case Group Insurance and participating life insurance sales, showing that new business momentum remains intact even as claims experience weighs on current earnings.
"Manulife delivered a strong second quarter, with disciplined execution driving momentum against our strategic priorities," said Phil Witherington, Manulife president and chief executive officer.
Manulife also announced a US$3.2 billion long-term care reinsurance transaction with Munich American Reassurance Company, ceding 80% of the biometric risk on a standalone LTC block.
Combined with a prior C$2.4 billion deal with Reinsurance Group of America, the company has now cumulatively reduced its long-term care morbidity sensitivity by 24%.
Manulife's softer Canadian result is worth close attention for group benefits brokers managing renewals in the coming quarters. Great-West Lifeco, reporting the same quarter, saw its Canada segment net earnings rise 22% to C$310 million overall, but separately flagged unfavorable insurance experience tied specifically to group long-term disability claims, the same broad category weighing on Manulife's Group Insurance line.
When two of the country's largest group insurers cite the same claims category as a drag in the same quarter, that's a stronger signal of an industry-wide trend than a single insurer's commentary would suggest.
For brokers with group benefits renewals coming up, the practical takeaway is to start pricing conversations with clients early rather than waiting for the increase to appear on a renewal notice. It also gives brokers a concrete, evidence-based explanation to offer clients: rate pressure on disability coverage reflects a broader claims trend across the market, not a client's own experience rating.
The Canadian Life and Health Insurance Association tracks national group benefits claims volume and participation data that brokers can use to benchmark client-specific trends against the wider market.
Manulife's shift toward Asia and Global Wealth and Asset Management, which together are increasingly driving the company's growth, is worth keeping in view for brokers building long-term carrier relationships.
If Canada represents a smaller and slower-growing share of Manulife's overall business, product innovation and pricing flexibility in the Canadian group and individual insurance market may take a back seat to where the company is investing for growth.
For brokers advising clients with existing LTC coverage, the Munich Re transaction also suggests Manulife is steadily reducing its appetite for long-term care risk rather than exiting it outright, a distinction worth explaining to clients who may otherwise assume the company is stepping back from the product line entirely.
The overlapping disability claims commentary from Manulife and Great-West Lifeco is the most immediately actionable signal in this earnings season for group benefits brokers. Getting ahead of renewal conversations now, backed by evidence of a market-wide trend rather than an isolated result, will put brokers in a stronger position with clients than waiting for the numbers to show up on a renewal notice.
