- Manulife (MFC, Financial) reports mixed Q1 2025 results with core earnings decreasing by 1% to $1.8 billion and a notable 47% decline in net income to $0.5 billion.
- Record insurance new business results achieved; APE sales rose by 37%, new business CSM increased by 31%, and NBV surged by 36%.
- Global Wealth and Asset Management segment experienced a drop in net inflows to $0.5 billion from $6.7 billion in Q1 2024.
Manulife Financial Corporation (MFC) has released its first-quarter results for 2025, highlighting a mixed performance. The company reported core earnings of $1.8 billion, marking a slight year-over-year decline of 1%. Meanwhile, the net income saw a significant drop to $0.5 billion from $0.9 billion reported in the same quarter of 2024, representing a 47% decrease.
Despite the drop in earnings, Manulife achieved record levels in its insurance new business, with annualized premium equivalent (APE) sales up by 37%, new business contractual service margin (CSM) increased by 31%, and new business value (NBV) growing by 36%. Core EPS improved by 3% to $0.99, and the company maintained a robust LICAT ratio of 137%.
By segment, Asia was a standout performer with core earnings up by 7% and NBV increasing by 43%. The Global Wealth and Asset Management (WAM) segment showed growth in core earnings by 24%, although net inflows diminished significantly to $0.5 billion, compared to $6.7 billion in the first quarter of the previous year, due in part to increased retirement plan redemptions.
In North America, Canada witnessed a 3% rise in core earnings and a 15% increase in NBV. Conversely, the U.S. segment experienced a decline in core earnings of 25%, while NBV picked up by 30%. The decline in net income was further exacerbated by a $0.7 billion realized loss on debt instruments linked to a reinsurance transaction and weaker returns from alternative long-duration assets.
Strategically, Manulife made significant strides by completing a long-term care reinsurance transaction, launching a new digital retirement solution named FutureStep in the U.S., and renewing a pivotal bancassurance partnership with Chinabank in the Philippines. The company also focused on digital enhancements, incorporating AI advancements across its operations. Manulife's financial standing remains sturdy with a leverage ratio of 23.9%, and a 12% year-over-year growth in book value per share to $25.88.
