Manulife Financial (MFC) Q4 2025 earnings summary

Executive summary

• Achieved record core earnings in 2025, with double-digit growth in new business CSM and profitability across all insurance segments, despite net outflows in Global WAM.

• Advanced strategic priorities with expansion into India and Indonesia, acquisitions in private credit and asset management, and significant investments in digital and AI capabilities.

• Enhanced customer offerings and distribution through new partnerships, digital platforms, and health initiatives across multiple regions.

• Maintained high employee engagement and was recognized as a leader in AI maturity and responsible innovation.

Financial highlights

• Core EPS grew 8% to $4.21, supported by share buybacks and strong segment performance.

• Core ROE was 16.5% for 2025, expanding to 17.1% in 4Q25, progressing toward the 2027 target of 18%+.

• Net income attributed to shareholders rose to $5.6 billion, up $0.2 billion from 2024.

• Adjusted book value per share grew 6% to $38.27.

• Announced a 10.2% increase in quarterly dividend and a new NCIB for up to 2.5% share repurchase.

Outlook and guidance

• Confident in achieving 2027 targets: 18%+ Core ROE, cumulative remittances of $22B+, new business CSM growth of 15%, and core EPS growth of 10-12%.

• 2027 targets include 88% core earnings from highest potential businesses and 50% from Asia.

• Expect 60%-70% of core earnings to materialize as cash remittances going forward.

• Management expects to build on 2025 momentum in 2026, focusing on disciplined execution and sustainable growth.