#Canada #Toronto #dividend increase #Manulife #Core Earnings

Manulife Financial Corporation Reports Strong Earnings for 2025

Overview
Manulife Financial Corporation has recently concluded its fiscal year 2025, showcasing a robust performance characterized by record core earnings and a strategic dividend increase. This summary highlights key financial metrics and strategic initiatives that marked a pivotal year for the company.

Financial Performance
For the year ending December 31, 2025, Manulife reported core earnings of $7.5 billion, reflecting a 3% increase from the previous year when measured on a constant exchange rate basis. In the fourth quarter of 2025 alone, core earnings reached $2 billion, a 5% uptick compared to Q4 of 2024.

The company's net income attributed to shareholders stood at $5.6 billion for the year, marking a slight rise of $0.2 billion from 2024. However, during Q4 of 2025, it reported a net income of $1.5 billion, a small decline of $0.1 billion compared to the same quarter of the previous year.

Additional notable highlights include:

• - Core EPS (Earnings Per Share) increased by 8% year over year, reaching $4.21, while Q4’s Core EPS was $1.12, up 9% from the prior quarter.
• - The company's return on equity (ROE) for 2025 was 12%, with a core ROE of 16.5% for the year.
• - The LICAT (Life Insurance Capital Adequacy Test) ratio was reported at 136% as of Q4 2025, indicating adequate capital reserves to withstand potential future financial strains.

Investment in Growth
In 2025, Manulife undertook significant investments aimed at enhancing its market position and service offerings. This included a 14% increase in Annual Premium Equivalent (APE) sales, while new business contractual service margin (CSM) surged by 28%, reflecting strong sales across all segments. The company also announced a dividend increase of 10.2% and finalized the purchase and cancellation of 54.4 million shares, demonstrating its commitment to returning value to shareholders.

Key strategic investments included:

• - The establishment of a joint venture in India’s insurance market with Mahindra, a move expected to expand Manulife's foothold in one of the world’s rapidly growing economies.
• - The acquisition of Comvest Credit Partners to enhance their capabilities in private credit, a strategic move underscoring their diversified service offerings.
• - Innovations in AI and technology that aim to improve customer experiences and operational efficiency, demonstrating Manulife's commitment to embracing cutting-edge advancements.

Outlook for 2026
Looking ahead, Manulife aims to build upon its momentum through disciplined execution of its strategic plans despite the ongoing macroeconomic uncertainties. With a focus on broadening its diversified portfolio and optimizing operational capabilities, Manulife is poised to achieve sustainable long-term growth. The leadership team, including President and CEO Phil Witherington, expressed confidence in the company's strategy to leverage its strengths in technology and market diversification to drive future profitability and shareholder value.

In conclusion, 2025 marked a substantial year for Manulife, establishing a strong foundation for continued growth and innovation in the financial services landscape. With a powerful blend of financial strength, innovative strategies, and a focus on the evolving needs of customers, Manulife is well-positioned for success in the coming years.