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Manulife posted Q3 core EPS of $0.84, beating estimates by 13.5% and rising 15% year over year.
Core earnings hit $1.4B, driven by growth in Global WAM, Asia, and Canada, plus an ECL provision release.
NBV grew 6.3%, APE sales rose 8%, and core ROE expanded 150 bps to 18.1% for the quarter.
Manulife Financial Corporation (MFC - Free Report) delivered third-quarter 2025 core earnings of 84 cents per share, which beat the Zacks Consensus Estimate by 13.5%. The bottom line improved 15% year over year.
Core earnings of $1.4 billion (C$2 billion) increased 7.6% year over year. The results reflected strong business growth in Global WAM, Asia, and Canada, a release in the expected credit loss (ECL) provision and the net impact of the annual review of actuarial methods and assumptions. The growth was partially offset by unfavorable life insurance claims experience in the United States.
New business value (NBV) in the reported quarter was $657 million (C$906 million), up 6.3% year over year, attributable to higher sales volumes in Asia, Canada and the U.S. division.
Manulife Financial Corp Price, Consensus and EPS Surprise
New business contractual service margin (“CSM”) of $701 million (C$966 million) rose 26% year over year.
Annualized premium equivalent (APE) sales increased 8% year over year, attributable to higher sales in Asia, Canada and the U.S. division.
Wealth and asset management assets under management and administration were $774 billion (C$1,066 billion), up 9.6% year over year. The Wealth and Asset Management business generated net outflows of $4.5 billion (C$6.2 billion), up from net inflows of $5.2 billion in the year-ago quarter.
Core return on equity, measuring the company’s profitability, expanded 150 basis points year over year to 18.1%.
Life Insurance Capital Adequacy Test ratio was 138% as of Sept. 30, 2025.
Adjusted book value per common share was $38.22, up 12% year over year.
Segmental Performance
Global Wealth and Asset Management’s core earnings came in at $381 million (C$525 million), up 9% year over year, driven by higher net fee income from favorable market impacts over the past 12 months, higher performance fees, and continued expense discipline. It was partially offset by lower favorable tax true-ups and tax benefits.
Asia division’s core earnings totaled $550 million, up 29% year over year. The growth reflects continued business growth, the net impact of the annual review of actuarial methods and assumptions, improved insurance experience, and a release in the ECL provision. Asia continued to generate 5%, 18% and 7% year-over-year solid growth in APE sales, new business CSM and NBV, respectively, reflecting higher sales volumes in Asia Other and a more favorable business mix.
Manulife Financial’s Canada division’s core earnings of $310 million (C$428 million) were up 2.6% year over year. The growth is driven by higher investment spreads, business growth in group insurance, favorable insurance experience in Individual Insurance, and the net impact of the annual review of actuarial methods and assumptions. It was partially offset by less favorable insurance experience in Group Insurance. APE sales, new business CSM and NBV were up 9%, 15% and 11%, respectively, driven by strong sales in Individual Insurance.
The U.S. division reported core earnings of $241 million, down 20% year over year. The decrease was primarily due to unfavorable life insurance claim experience, lower investment spreads and the impact of the RGA U.S. Reinsurance Transaction. It was partially offset by a release in the ECL provision and favorable lapse experience. APE sales, new business CSM and NBV were 51%, 104% and 53%, respectively, reflecting broad-based demand for the suite of products.
Zacks Rank
Manulife Financial currently carries a Zacks Rank #4 (Sell).
Brighthouse Financial, Inc. (BHF - Free Report) reported third-quarter 2025 adjusted net income of $4.54 per share, which missed the Zacks Consensus Estimate by 10.8%. The bottom line increased 13.7% year over year. Total operating revenues of $2.2 billion increased 0.3% year over year, driven by higher net investment income. Premiums of $170 million decreased 5.5% year over year.
Adjusted net investment income was $1.3 billion in the quarter under review, up 2.5% year over year, primarily driven by higher alternative investment income. The adjusted investment income yield was 4.40%. Total expenses were $1.2 million, which decreased 32.7% year over year. Corporate expenses, pretax, were $205 million, up 0.9% year over year.
Sun Life Financial Inc. (SLF - Free Report) delivered a third-quarter 2025 underlying net income of $1.35 per share, which beat the Zacks Consensus Estimate by 3.8%. Moreover, the bottom line increased 4.6% year over year. The underlying net income was reported at $760.21 million (C$1,047 million), which increased 2.1% year over year.
Wealth sales & asset management gross flows increased 46.8% year over year to $45.10 billion (C$62.12 billion) in the quarter under review. The new business contractual service margin was $323.83 million (C$446 million), up 15.3% year over year.
Reinsurance Group of America, Incorporated (RGA - Free Report) reported third-quarter 2025 adjusted operating earnings of $6.37 per share, which beat the Zacks Consensus Estimate by 9.8%. Moreover, the bottom line increased 3.9% from the year-ago quarter’s figure. Net foreign currency fluctuations had an adverse effect of 1 cent per diluted share on net income available to RGA shareholders, and a favorable effect of 4 cents per diluted share on adjusted operating income, both as compared with the prior year.
RGA's operating revenues of $6.2 billion beat the Zacks Consensus Estimate by 0.9%. The top line also improved 8% year over year due to higher net investment income and other revenues. Net premiums of $4.3 billion declined 2.5% year over year. Investment income increased 24% from the prior-year quarter to $1.5 billion.
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Manulife Financial Q3 Earnings Beat Estimates, NBV Sales Rise Y/Y
Key Takeaways
Manulife Financial Corporation (MFC - Free Report) delivered third-quarter 2025 core earnings of 84 cents per share, which beat the Zacks Consensus Estimate by 13.5%. The bottom line improved 15% year over year.
Core earnings of $1.4 billion (C$2 billion) increased 7.6% year over year. The results reflected strong business growth in Global WAM, Asia, and Canada, a release in the expected credit loss (ECL) provision and the net impact of the annual review of actuarial methods and assumptions. The growth was partially offset by unfavorable life insurance claims experience in the United States.
New business value (NBV) in the reported quarter was $657 million (C$906 million), up 6.3% year over year, attributable to higher sales volumes in Asia, Canada and the U.S. division.
Manulife Financial Corp Price, Consensus and EPS Surprise
Manulife Financial Corp price-consensus-eps-surprise-chart | Manulife Financial Corp Quote
New business contractual service margin (“CSM”) of $701 million (C$966 million) rose 26% year over year.
Annualized premium equivalent (APE) sales increased 8% year over year, attributable to higher sales in Asia, Canada and the U.S. division.
Wealth and asset management assets under management and administration were $774 billion (C$1,066 billion), up 9.6% year over year. The Wealth and Asset Management business generated net outflows of $4.5 billion (C$6.2 billion), up from net inflows of $5.2 billion in the year-ago quarter.
Core return on equity, measuring the company’s profitability, expanded 150 basis points year over year to 18.1%.
Life Insurance Capital Adequacy Test ratio was 138% as of Sept. 30, 2025.
Adjusted book value per common share was $38.22, up 12% year over year.
Segmental Performance
Global Wealth and Asset Management’s core earnings came in at $381 million (C$525 million), up 9% year over year, driven by higher net fee income from favorable market impacts over the past 12 months, higher performance fees, and continued expense discipline. It was partially offset by lower favorable tax true-ups and tax benefits.
Asia division’s core earnings totaled $550 million, up 29% year over year. The growth reflects continued business growth, the net impact of the annual review of actuarial methods and assumptions, improved insurance experience, and a release in the ECL provision. Asia continued to generate 5%, 18% and 7% year-over-year solid growth in APE sales, new business CSM and NBV, respectively, reflecting higher sales volumes in Asia Other and a more favorable business mix.
Manulife Financial’s Canada division’s core earnings of $310 million (C$428 million) were up 2.6% year over year. The growth is driven by higher investment spreads, business growth in group insurance, favorable insurance experience in Individual Insurance, and the net impact of the annual review of actuarial methods and assumptions. It was partially offset by less favorable insurance experience in Group Insurance. APE sales, new business CSM and NBV were up 9%, 15% and 11%, respectively, driven by strong sales in Individual Insurance.
The U.S. division reported core earnings of $241 million, down 20% year over year. The decrease was primarily due to unfavorable life insurance claim experience, lower investment spreads and the impact of the RGA U.S. Reinsurance Transaction. It was partially offset by a release in the ECL provision and favorable lapse experience. APE sales, new business CSM and NBV were 51%, 104% and 53%, respectively, reflecting broad-based demand for the suite of products.
Zacks Rank
Manulife Financial currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Life Insurers
Brighthouse Financial, Inc. (BHF - Free Report) reported third-quarter 2025 adjusted net income of $4.54 per share, which missed the Zacks Consensus Estimate by 10.8%. The bottom line increased 13.7% year over year. Total operating revenues of $2.2 billion increased 0.3% year over year, driven by higher net investment income. Premiums of $170 million decreased 5.5% year over year.
Adjusted net investment income was $1.3 billion in the quarter under review, up 2.5% year over year, primarily driven by higher alternative investment income. The adjusted investment income yield was 4.40%. Total expenses were $1.2 million, which decreased 32.7% year over year. Corporate expenses, pretax, were $205 million, up 0.9% year over year.
Sun Life Financial Inc. (SLF - Free Report) delivered a third-quarter 2025 underlying net income of $1.35 per share, which beat the Zacks Consensus Estimate by 3.8%. Moreover, the bottom line increased 4.6% year over year. The underlying net income was reported at $760.21 million (C$1,047 million), which increased 2.1% year over year.
Wealth sales & asset management gross flows increased 46.8% year over year to $45.10 billion (C$62.12 billion) in the quarter under review. The new business contractual service margin was $323.83 million (C$446 million), up 15.3% year over year.
Reinsurance Group of America, Incorporated (RGA - Free Report) reported third-quarter 2025 adjusted operating earnings of $6.37 per share, which beat the Zacks Consensus Estimate by 9.8%. Moreover, the bottom line increased 3.9% from the year-ago quarter’s figure. Net foreign currency fluctuations had an adverse effect of 1 cent per diluted share on net income available to RGA shareholders, and a favorable effect of 4 cents per diluted share on adjusted operating income, both as compared with the prior year.
RGA's operating revenues of $6.2 billion beat the Zacks Consensus Estimate by 0.9%. The top line also improved 8% year over year due to higher net investment income and other revenues. Net premiums of $4.3 billion declined 2.5% year over year. Investment income increased 24% from the prior-year quarter to $1.5 billion.