Manulife Financial Corp

Manulife did not give a revenue figure, but reported strong operating and earnings metrics for Q2 2026: APE sales rose 21% year over year, new business CSM increased 16%, and CSM balance grew 20%. Core EPS increased 16% on 12% core earnings growth, core ROE was 16.3%, and net income was $2.1 billion. Asia core earnings increased 21% year over year to a record level; Global WAM core earnings rose 9% and pretax earnings grew 10%, with net inflows of $0.4 billion and a 31.2% core EBITDA margin. Canada core earnings declined 10%, while U.S. core earnings rebounded year over year. On capital, LICAT was 136%, excess capital above the supervisory target was $26 billion, and leverage was 22.2%. Forward guidance: management expects Canada insurance experience to trend neutral by year-end, sees the LTC reinsurance transaction as largely neutral to capital with immaterial foregone core earnings of CAD 30 million per year in the first year, and said the 2.5% buyback pace is consistent with achieving the 18% core ROE target without needing anything materially higher or lower.

Phil Witherington said the quarter showed disciplined execution and the benefits of a diversified portfolio, with strong sales, higher earnings and a solid capital position. He emphasized strategic priorities around scaling the agency force, AI adoption, longevity solutions and product innovation, and highlighted that the company is strengthening its executive team to support growth. On the LTC transaction, he framed the move as a deliberate step to de-risk the in-force book while preserving asset management economics and maintaining scale in the U.S. business.

Colin Simpson focused on the financial drivers: core EPS up 16%, net income of $2.1 billion, core earnings up 12%, and buybacks supporting EPS growth. He cited Global WAM’s 31.2% EBITDA margin, LICAT at 136% with $26 billion of excess capital, and leverage at 22.2%, all of which indicate ample capital flexibility. He also said the company returned $1.4 billion to shareholders in the quarter and $5.3 billion over the past 12 months, while noting higher corporate spending from P&C retro, central AI projects and withholding tax accruals, with corporate results expected in the $300 million to $400 million loss range, toward the high end.

Analysts focused heavily on three issues: the impact of China/Hong Kong offshore tax and enforcement developments on MCV sales, the structure and economics of the LTC reinsurance deal, and sustainability of Canada LTD and Canadian individual insurance growth. Management said Hong Kong’s domestic franchise is the core strength, MCV is important but not the entire business, and any short-term impact from regulatory changes should be manageable and not destroy the outlook. On LTC, management said the deal is a full biometric risk transfer with no asset transfer, that asset management is retained intentionally to preserve earnings and capital generation, and that the current 2.5% buyback pace remains consistent with the 18% ROE goal. On Canada LTD, management said disability claims are under pressure, especially mental health-related claims, but targeted claims management, recoveries and annual repricing power support a return to neutral insurance experience by year-end.