We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Manulife Q2 Earnings Miss Estimates, APE Sales Rise Y/Y
Read MoreHide Full Article
Key Takeaways
MFC Q2 core EPS of $0.69 missed estimates by 2.8% but rose 4.5% YoY; core earnings fell 7.6% to $1.2B.
New business value rose 15.7% YoY to $611M; new business CSM grew 38.7% to $637M.
APE sales increased 12.8% YoY to $1.58B, reflecting strong sales momentum and margin expansion.
Manulife Financial Corporation (MFC - Free Report) delivered second-quarter 2025 core earnings of 69 cents per share, which missed the Zacks Consensus Estimate by 2.8%. The bottom line improved 4.5% year over year.
Core earnings of $1.2 billion (C$1.7 billion) decreased 7.6% year over year as strong business growth in Global WAM, Asia, and Canada was offset by unfavorable life insurance claims experience in the United States and strengthened ECL provisions.
New business value (NBV) in the reported quarter was $611 million (C$846 million), up 15.7% year over year.
New business contractual service margin (CSM) of $637 million (C$882 million) rose 38.7% year over year.
Annualized premium equivalent (APE) sales increased 12.8% year over year to $1.58 billion (C$2.2 billion).
New business CSM, APE sales, and NBV increased, reflecting continued sales momentum and margin expansions.
Global wealth and asset management average assets under management and administration were $726 billion (C$1,005 billion), up 6.4% year over year. Retail net outflows of $3.2 billion surged 32-fold year over year, as lower net sales through third-party intermediaries in North America and money market funds in Mainland China. This was partially offset by higher net sales through our retail wealth platform.
Core return on equity, measuring the company’s profitability, contracted 70 bps year over year to 15%. The financial leverage ratio improved 140 basis points to 25.6% at the end of the quarter.
Life Insurance Capital Adequacy Test ratio was 136% as of June 30, 2025. Adjusted book value per common share was $35.78, up 7.4% year over year.
Manulife Financial Corp Price, Consensus and EPS Surprise
Global Wealth and Asset Management division’s core earnings came in at $334 million (C$463 million), up 14.5% year over year. Asia division’s core earnings totaled $520 million, up 13% year over year. APE sales, new business CSM, and NBV increased 31%, 34% and 28%, respectively, year over year, reflecting higher sales volumes in Hong Kong and Asia Other.
Manulife Financial’s Canada division’s core earnings of $302 million (C$419 million) were up 2.7% year over year. APE sales decreased 34% and NBV increased 1%. New business CSM grew 32%, reflecting strong sales growth in Individual Insurance.
The U.S. division reported core earnings of $141 million, down 53% year over year, reflecting unfavorable life insurance claims experience, lower investment spreads, and strengthened ECL provisions. U.S. delivered strong business growth this quarter, increasing APE sales, new business CSM, and NBV by 40%, 59% and 12%, respectively, reflecting continued demand for accumulation insurance products.
Reinsurance Group of America, Incorporated (RGA - Free Report) reported second-quarter 2025 adjusted operating earnings of $4.72 per share, which missed the Zacks Consensus Estimate by 15.4%. The bottom line decreased 13.9% from the year-ago quarter. Net foreign currency fluctuations had a favorable effect of 12 cents per share on adjusted operating income compared with the prior year. RGA's operating revenues of $5.6 billion improved 9.6% year over year. It missed the consensus estimate by 1.1%. Net premiums of $4.2 billion increased 5.9% year over year.
Investment income and net of related expenses increased 30.1% from the prior-year quarter to $1.4 billion. The average investment yield increased 66 basis points to 5.3%. Total benefits and expenses at Reinsurance Group climbed 14.1% year over year to $5.2 billion.
Voya Financial, Inc. (VOYA - Free Report) reported second-quarter 2025 adjusted operating earnings of $2.4 per share, which beat the Zacks Consensus Estimate by 14.8%. The bottom line increased 5.7% year over year. Adjusted operating revenues amounted to $356 million, up 9.8% year over year. The top line beat the Zacks Consensus Estimate by 19.4%.
Net investment income increased 12.7% year over year to $584 million. Moreover, fee income of $577 million increased 11.7% year over year. Premiums totaled $718 million, down 9.1% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 2.1% from the year-ago quarter.
Lincoln National Corporation (LNC - Free Report) reported second-quarter adjusted earnings per share of $2.36, which surpassed the Zacks Consensus Estimate by 23.6%. The bottom line climbed 28.3% year over year. Adjusted operating revenues grew 4.4% year over year to $4.7 billion. The top line surpassed the consensus mark by 1.2%. LNC’s estimated RBC ratio rose to more than 420% at the second-quarter end. Insurance premiums advanced 3.5% year over year to $1.7 billion, higher than the Zacks Consensus Estimate by 0.3%.
Fee income was $1.3 billion, which improved 0.1% year over year but missed the consensus mark by 1%. Net investment income advanced 10.1% year over year to $1.5 billion, which beat the consensus mark of $1.4 billion. Meanwhile, other revenues of $197 million rose 1.5% year over year in the quarter under review. Total expenses declined 21.2% year over year to $3.2 billion.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Manulife Q2 Earnings Miss Estimates, APE Sales Rise Y/Y
Key Takeaways
Manulife Financial Corporation (MFC - Free Report) delivered second-quarter 2025 core earnings of 69 cents per share, which missed the Zacks Consensus Estimate by 2.8%. The bottom line improved 4.5% year over year.
Core earnings of $1.2 billion (C$1.7 billion) decreased 7.6% year over year as strong business growth in Global WAM, Asia, and Canada was offset by unfavorable life insurance claims experience in the United States and strengthened ECL provisions.
New business value (NBV) in the reported quarter was $611 million (C$846 million), up 15.7% year over year.
New business contractual service margin (CSM) of $637 million (C$882 million) rose 38.7% year over year.
Annualized premium equivalent (APE) sales increased 12.8% year over year to $1.58 billion (C$2.2 billion).
New business CSM, APE sales, and NBV increased, reflecting continued sales momentum and margin expansions.
Global wealth and asset management average assets under management and administration were $726 billion (C$1,005 billion), up 6.4% year over year. Retail net outflows of $3.2 billion surged 32-fold year over year, as lower net sales through third-party intermediaries in North America and money market funds in Mainland China. This was partially offset by higher net sales through our retail wealth platform.
Core return on equity, measuring the company’s profitability, contracted 70 bps year over year to 15%. The financial leverage ratio improved 140 basis points to 25.6% at the end of the quarter.
Life Insurance Capital Adequacy Test ratio was 136% as of June 30, 2025. Adjusted book value per common share was $35.78, up 7.4% year over year.
Manulife Financial Corp Price, Consensus and EPS Surprise
Manulife Financial Corp price-consensus-eps-surprise-chart | Manulife Financial Corp Quote
Segmental Performance
Global Wealth and Asset Management division’s core earnings came in at $334 million (C$463 million), up 14.5% year over year.
Asia division’s core earnings totaled $520 million, up 13% year over year. APE sales, new business CSM, and NBV increased 31%, 34% and 28%, respectively, year over year, reflecting higher sales volumes in Hong Kong and Asia Other.
Manulife Financial’s Canada division’s core earnings of $302 million (C$419 million) were up 2.7% year over year. APE sales decreased 34% and NBV increased 1%. New business CSM grew 32%, reflecting strong sales growth in Individual Insurance.
The U.S. division reported core earnings of $141 million, down 53% year over year, reflecting unfavorable life insurance claims experience, lower investment spreads, and strengthened ECL provisions. U.S. delivered strong business growth this quarter, increasing APE sales, new business CSM, and NBV by 40%, 59% and 12%, respectively, reflecting continued demand for accumulation insurance products.
Zacks Rank
Manulife Financial currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Life Insurers
Reinsurance Group of America, Incorporated (RGA - Free Report) reported second-quarter 2025 adjusted operating earnings of $4.72 per share, which missed the Zacks Consensus Estimate by 15.4%. The bottom line decreased 13.9% from the year-ago quarter. Net foreign currency fluctuations had a favorable effect of 12 cents per share on adjusted operating income compared with the prior year. RGA's operating revenues of $5.6 billion improved 9.6% year over year. It missed the consensus estimate by 1.1%. Net premiums of $4.2 billion increased 5.9% year over year.
Investment income and net of related expenses increased 30.1% from the prior-year quarter to $1.4 billion. The average investment yield increased 66 basis points to 5.3%. Total benefits and expenses at Reinsurance Group climbed 14.1% year over year to $5.2 billion.
Voya Financial, Inc. (VOYA - Free Report) reported second-quarter 2025 adjusted operating earnings of $2.4 per share, which beat the Zacks Consensus Estimate by 14.8%. The bottom line increased 5.7% year over year. Adjusted operating revenues amounted to $356 million, up 9.8% year over year. The top line beat the Zacks Consensus Estimate by 19.4%.
Net investment income increased 12.7% year over year to $584 million. Moreover, fee income of $577 million increased 11.7% year over year. Premiums totaled $718 million, down 9.1% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 2.1% from the year-ago quarter.
Lincoln National Corporation (LNC - Free Report) reported second-quarter adjusted earnings per share of $2.36, which surpassed the Zacks Consensus Estimate by 23.6%. The bottom line climbed 28.3% year over year. Adjusted operating revenues grew 4.4% year over year to $4.7 billion. The top line surpassed the consensus mark by 1.2%. LNC’s estimated RBC ratio rose to more than 420% at the second-quarter end. Insurance premiums advanced 3.5% year over year to $1.7 billion, higher than the Zacks Consensus Estimate by 0.3%.
Fee income was $1.3 billion, which improved 0.1% year over year but missed the consensus mark by 1%. Net investment income advanced 10.1% year over year to $1.5 billion, which beat the consensus mark of $1.4 billion. Meanwhile, other revenues of $197 million rose 1.5% year over year in the quarter under review. Total expenses declined 21.2% year over year to $3.2 billion.