Manulife Financial (MFC) Q3 2026 earnings summary

Executive summary

• Record 3Q26 core earnings rose 4% YoY to C$2.125B and core EPS increased 6% to C$1.24; core ROE was 17.8%.

• Net income attributable to shareholders fell to C$1.424B from C$1.799B amid unfavourable market experience; CSM was C$27.3B, up 6% from year-end.

• APE sales were flat YoY at C$2.6B; Global WAM average AUMA grew 11% to C$1.198T, while net outflows were C$3.6B.

Financial highlights

• Core net insurance service result increased to C$1.212B from C$1.039B; core net investment result declined to C$887M from C$950M.

• Items excluded from core earnings were C$701M; net income included C$388M of market experience losses, including ALDA and public-equity returns, derivatives, hedge-accounting impacts and actuarial updates.

• YTD core earnings were C$5.884B, up 8%; YTD net income was C$4.681B, up 15%, and YTD core EPS was C$3.39, up 11%.

• Total comprehensive income attributable to shareholders was C$2.102B; OCI gains reflected higher risk-free rates and favourable currency translation.

Outlook and guidance

• Medium-term targets: core EPS growth of 10–12%, core ROE of 18%+, CSM balance growth of 8–10%, expense efficiency ratio below 45%, and C$22B+ cumulative remittances for 2024–2027.

• 3Q26 YTD core EPS growth was 11%, CSM balance growth 9%, and expense efficiency ratio 44.3%; management remains committed to the 18%+ core ROE target for 2027 and beyond.

• Expected long-term ALDA returns remain 9.0–9.5%; near-term valuation headwinds may persist for a couple of quarters at current rates.

• Global WAM expects operating leverage to resume as growth continues and expenses are managed prudently; management said the business remains on its Investor Day plan.