Manulife Financial Corporation reported record core earnings of $7.5 billion for 2025, a 3 % increase on a constant exchange‑rate basis from the prior year, underscoring the company’s continued profitability in a challenging macro environment.
In the fourth quarter, core earnings rose to $2.0 billion, up 5 % from the same period in 2024, and core earnings per share reached $1.12. The $0.36 beat of the consensus estimate of $0.76 reflects disciplined cost management and a favorable mix of high‑margin business units.
The company increased its quarterly common‑share dividend by 10.2 %, to $0.485 per share, and launched a new Normal Course Issuer Bid program that allows repurchases of up to approximately 2.5 % of outstanding common shares, reinforcing its commitment to returning capital to shareholders.
Asia core earnings grew 18 % for the full year, driven by strong demand in life and property‑and‑casualty lines; in the fourth quarter, Asia core earnings were $564 million, up 24 % from $457 million in Q4 2024. Global Wealth & Asset Management (GWAM) core earnings increased 14 % for the year, with Q4 core earnings of $490 million, up 7 % from $459 million in Q4 2024.
Core EBITDA margin in the GWAM segment improved by 260 basis points, a result of higher net fee income and disciplined expense management. Overall margin expansion was offset by headwinds in the U.S. core business, where earnings fell 22 % to $229 million due to lower investment spreads and adverse life‑insurance claims experience.
Net outflows in the GWAM segment totaled $14.3 billion for the year, including a $9.5 billion outflow in Q4 2025, highlighting a significant challenge to asset‑under‑management growth. The U.S. core earnings decline and the GWAM outflows tempered investor enthusiasm despite the earnings beat.
Management highlighted strategic investments in 2025, including a joint venture with Mahindra in India, acquisitions of Comvest Credit Partners and Schroders Indonesia, and the opening of a high‑net‑worth office in Dubai. The company also emphasized its leadership in artificial‑intelligence maturity, positioning itself to enhance productivity across its insurance and wealth‑management businesses.
Manulife’s results demonstrate strong execution in high‑margin segments and disciplined capital allocation, while the outflows and U.S. earnings decline signal areas requiring continued focus. The company’s forward‑looking guidance remains unchanged, reflecting confidence in maintaining profitability amid ongoing market headwinds.
Overall, the earnings release confirms Manulife’s transformation into a capital‑light growth platform, with record core earnings, a dividend increase, and a robust share‑repurchase program, while highlighting key challenges that will shape the company’s near‑term strategy.
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