Manulife Financial (MFC) Q1 2026 earnings summary

Executive summary

• Delivered solid Q1 2026 results with double-digit growth in new business CSM and core EPS, supported by strong Asia performance and disciplined execution.

• Core earnings rose 8% to $1.8 billion, and core ROE reached 16.5%, reflecting robust profitability.

• Strategic initiatives included acquisitions, partnerships, and AI-driven enhancements across global operations.

• Net income attributed to shareholders was $1.1 billion, up $0.7 billion year-over-year.

• Asia led growth with strong sales in Hong Kong, Japan, and Singapore.

Financial highlights

• Net income for Q1 was $1.1 billion, impacted by market experience and a $242 million ALDA portfolio charge.

• Core EPS increased 11% to $1.06; adjusted book value per share rose 6% to $39.01.

• Returned $1.2 billion to shareholders via dividends and share buybacks.

• LICAT ratio strong at 136%; leverage ratio improved to 22.5%.

• Global WAM net outflows of $4.4 billion, mainly from North America Retail and U.S. Retirement.

Outlook and guidance

• Medium-term targets reaffirmed: core ROE 18%+, new business CSM growth 15%, core EPS growth 10–12%.

• 2027 cumulative remittance target set at $22B+; remittance outlook remains strong with 60%-70% of earnings expected to convert.

• Q2 core earnings run rate in Global WAM expected to increase by ~$25 million as one-time eMPF expenses subside.

• Continued focus on strategic investments in AI, health, and wealth solutions to drive sustainable value.

• Expense efficiency ratio target remains below 45%.