A month has gone by since the last earnings report for Manulife Financial (MFC Quick QuoteMFC - Free Report) . Shares have added about 3.5% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Manulife due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Manulife Financial Corp before we dive into how investors and analysts have reacted as of late.

Manulife Financial Q3 Earnings Beat Estimates, NBV Sales Rise Y/Y

Manulife Financial Corporation 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.

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.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions.

VGM Scores

At this time, Manulife has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Manulife has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Manulife belongs to the Zacks Insurance - Life Insurance industry. Another stock from the same industry, Reinsurance Group (RGA Quick QuoteRGA - Free Report) , has gained 6.6% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

Reinsurance Group reported revenues of $6.19 billion in the last reported quarter, representing a year-over-year change of +8.1%. EPS of $6.37 for the same period compares with $6.13 a year ago.

Reinsurance Group is expected to post earnings of $5.85 per share for the current quarter, representing a year-over-year change of +17.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.3%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Reinsurance Group. Also, the stock has a VGM Score of B.