Manulife Financial (MFC) Q2 2026 earnings summary

Executive summary

• Delivered strong Q2 2026 results with disciplined execution, double-digit APE sales growth (21%), and robust performance across all insurance segments, supported by a diversified portfolio.

• Achieved record gross flows and net inflows of CAD 4 billion in Global WAM, driven by institutional business strength.

• Core EPS grew 16% year-over-year, with ROE reaching up to 18.0%, reflecting robust profitability and ongoing share buybacks.

• Maintained a strong balance sheet with a 15% increase in adjusted book value per share and a LICAT ratio of 136%.

• Advanced strategic initiatives in distribution, product innovation, AI, and health and longevity solutions.

Financial highlights

• Net income attributed to shareholders increased to CAD 2.1 billion, exceeding core earnings due to higher returns on public equities.

• Core earnings grew 12% to CAD 1,923 million, with core EPS up 16% to CAD 1.09.

• Adjusted book value per share increased 15% year-over-year to CAD 41.12.

• Dividend per common share increased 10% to 48.5¢.

• Global WAM net flows remained positive at CAD 0.4 billion, despite a decrease from CAD 0.9 billion in Q2 2025.

Outlook and guidance

• Medium-term targets reaffirmed: core ROE 18%+, new business CSM growth 15%, core EPS growth 10–12%, and financial leverage ratio at 25%.

• Confident in achieving 2027 and medium-term targets, with strong progress in Asia and Global WAM.

• Expense efficiency ratio targeted below 45%.

• 2027 cumulative remittance target set at CAD 22 billion+.

• Share buyback pace of 2.5% is consistent with achieving the 18% ROE target; no outsized buybacks anticipated.