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Manulife saw APE sales, new business CSM and NBV rise in Asia and portfolio strength.
MFC's Asia earnings climbed 22%, while U.S. core earnings slipped on lower investment spreads.
Manulife Financial Corporation (MFC - Free Report) delivered first-quarter 2026 core earnings of 77 cents per share, which missed the Zacks Consensus Estimate by 2.5%. The bottom line increased 11.6% year over year. Core earnings of $1.3 billion (C$1.8 billion) increased 8.3% year over year.
The increase in core earnings was driven by strong business growth in Asia and Global WAM, along with the net positive impact of 2025 updates to actuarial methods and assumptions, as well as a net improvement in insurance experience. It was partially offset by lower investment spreads in the United States and the impact of the eMPF transition in Hong Kong.
Manulife Financial Corp Price, Consensus and EPS Surprise
New business value (NBV) in the reported quarter was $688 million (C$944 million), up 8.9% year over year.
Annualized premium equivalent (APE) sales increased 11.1% year over year to $2 billion (C$2.8 billion).
New business contractual service margin (CSM) increased 17.7% year over year to $743 million (C$1,019 million).
The increase in APE sales, new business CSM and NBV reflects the strength of the diversified business portfolio.
The Global Wealth and Asset Management business generated net outflows of $3.2 billion (C$4.4 billion) compared to net inflows of $0.3 billion (C$0.5 billion) in the year-ago quarter.
Core return on equity, measuring the company’s profitability, expanded 90 basis points year over year to 16.5%. The Life Insurance Capital Adequacy Test ratio was 136% as of March 31, 2026.
Segmental Performance of MFC
The Global Wealth and Asset Management division’s core earnings were $326 million (C$448 million), up 3.1% year over year. The increase was driven by higher net fee income from favorable market impacts over the past 12 months, contributions from the Manulife Comvest business and continued expense discipline. It was partially offset by the impact of the eMPF transition in Hong Kong and lower performance fees.
Retirement net outflows of $2 billion (C$2.8 billion) increased 11.1% year over year, driven by higher member withdrawals reflecting higher account balances from market growth and higher retirement plan redemptions in the United States. It was partially offset by lower retirement plan redemptions in Canada.
Retail net outflows of $4.2 billion (C$5.8 billion) compared to net inflows of $0.3 billion (C$0.5 billion) in the year-ago quarter, primarily due to higher net outflows in active mutual funds through third-party intermediaries in North America, including a few large model redemptions in the United States.
Institutional Asset Management net inflows of $3 billion (C$4.2 billion) increased 66.6%. The increase was driven by net flows from the Manulife Comvest business, and higher net sales from money market mandates in mainland China and from Manulife CQS products. It was partially offset by lower net flows in equity mandates and lower deployments in private equity mandates.
Asia Delivers Strong Growth
Asia division’s core earnings totaled $598 million, up 22% year over year, reflecting continued business growth and the net positive impact of 2025 updates to actuarial methods and assumptions. It was partially offset by less favorable insurance experience.
Asia reported strong growth in APE sales, new business CSM and NBV, with a year-over-year increase of 11%, 15% and 15%, respectively. The increase was driven by higher sales volumes and a more favorable business mix, reflecting growth in Hong Kong, Japan and Singapore across all three new business metrics. NBV margin improved modestly to 38.2%.
Canada and U.S. Face Headwinds
Manulife Financial’s Canada division’s core earnings of $256 million (C$352 million) declined 1.5% year over year. The downside was due to unfavorable insurance experience in Group Insurance in the first quarter of 2026. The variance in insurance experience was largely driven by higher long-term disability claims, along with higher expenses to support the growing business and transformational investment to elevate customer experience in Group Insurance. This was partially offset by business growth in the segment, the net positive impact of 2025 updates to actuarial methods and assumptions, and a lower charge in the expected credit loss provision.
APE sales and NBV decreased 15% and 16%, respectively, due to lower Group Insurance sales. This was partially offset by higher Individual Insurance sales.
New business CSM increased 13%, reflecting growth in Individual Insurance from higher participating life insurance sales. The U.S. division reported core earnings of $241 million, down 4% year over year. The decrease was primarily due to lower investment spreads. It was partially offset by favorable net insurance experience in the first quarter of 2026.
APE sales increased 29% while new business CSM grew 19%. The increase reflects higher demand for accumulation insurance products, supported by recent product enhancements.
NBV decreased 8% due to product mix, partially offset by higher sales volumes.
MFC's Dividend Update
The board of directors declared a quarterly dividend of 48.5 cents per share on Manulife's shares. The dividend will be paid out on June 19, 2026, to shareholders of record as of May 29, 2026.
Voya Financial, Inc. (VOYA - Free Report) reported first-quarter 2026 adjusted operating earnings of $2.26 per share, which beat the Zacks Consensus Estimate by 11.8%. The bottom line increased 13% year over year. Adjusted operating revenues amounted to $2 billion, which increased 3.1% year over year. Net investment income increased 1.6% year over year to $569 million.
Meanwhile, fee income of $604 million increased 6% year over year. Premiums totaled $744 million, up 1% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 0.3% from the year-ago quarter. As of March 31, 2026, VOYA’s assets under management, and assets under administration and advisement totaled $1.1 trillion.
Sun Life Financial Inc. (SLF - Free Report) delivered first-quarter 2026 underlying net income of $1.38 per share, which beat the Zacks Consensus Estimate by 2.2%. The bottom line increased 8.7% year over year. Underlying net income totaled $765 million (C$1 billion), which increased 5.2% year over year. Revenues of $6.4 billion decreased 18.9% year over year.
Asset management gross flows & wealth sales of $45.4 billion (C$62.3 billion) increased 4.8% year over year. Group - Health & Protection sales of $402 million (C$552 million) declined 0.4% year over year. Individual - Protection sales of $840 million (C$1.15 billion) jumped 38.1% year over year. New business contractual service margin (CSM) was $313 million (C$429 million), up 11% year over year.
Reinsurance Group of America, Incorporated (RGA - Free Report) reported first-quarter 2026 adjusted operating earnings of $6.97 per share, which beat the Zacks Consensus Estimate by 12.6%. The bottom line rose 21.9% from the year-ago quarter. RGA's operating revenues of $6.7 billion beat the Zacks Consensus Estimate by 3.7%. The top line improved 19.9% year over year.
Net premiums of $4.6 billion increased 14.3% year over year and beat the Zacks Consensus Estimates by 2.4%. Investment income improved 19.3% from the prior-year quarter to $1.7 billion and beat the Zacks Consensus Estimates by 7.4%. The average investment yield increased to 4.93% from 4.64% in the prior-year period, driven by higher variable investment income.
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Manulife Financial Q1 Earnings Miss Expectations, APE Sales Rise Y/Y
Key Takeaways
Manulife Financial Corporation (MFC - Free Report) delivered first-quarter 2026 core earnings of 77 cents per share, which missed the Zacks Consensus Estimate by 2.5%. The bottom line increased 11.6% year over year. Core earnings of $1.3 billion (C$1.8 billion) increased 8.3% year over year.
The increase in core earnings was driven by strong business growth in Asia and Global WAM, along with the net positive impact of 2025 updates to actuarial methods and assumptions, as well as a net improvement in insurance experience. It was partially offset by lower investment spreads in the United States and the impact of the eMPF transition in Hong Kong.
Manulife Financial Corp Price, Consensus and EPS Surprise
Manulife Financial Corp price-consensus-eps-surprise-chart | Manulife Financial Corp Quote
New business value (NBV) in the reported quarter was $688 million (C$944 million), up 8.9% year over year.
Annualized premium equivalent (APE) sales increased 11.1% year over year to $2 billion (C$2.8 billion).
New business contractual service margin (CSM) increased 17.7% year over year to $743 million (C$1,019 million).
The increase in APE sales, new business CSM and NBV reflects the strength of the diversified business portfolio.
The Global Wealth and Asset Management business generated net outflows of $3.2 billion (C$4.4 billion) compared to net inflows of $0.3 billion (C$0.5 billion) in the year-ago quarter.
Core return on equity, measuring the company’s profitability, expanded 90 basis points year over year to 16.5%.
The Life Insurance Capital Adequacy Test ratio was 136% as of March 31, 2026.
Segmental Performance of MFC
The Global Wealth and Asset Management division’s core earnings were $326 million (C$448 million), up 3.1% year over year. The increase was driven by higher net fee income from favorable market impacts over the past 12 months, contributions from the Manulife Comvest business and continued expense discipline. It was partially offset by the impact of the eMPF transition in Hong Kong and lower performance fees.
Retirement net outflows of $2 billion (C$2.8 billion) increased 11.1% year over year, driven by higher member withdrawals reflecting higher account balances from market growth and higher retirement plan redemptions in the United States. It was partially offset by lower retirement plan redemptions in Canada.
Retail net outflows of $4.2 billion (C$5.8 billion) compared to net inflows of $0.3 billion (C$0.5 billion) in the year-ago quarter, primarily due to higher net outflows in active mutual funds through third-party intermediaries in North America, including a few large model redemptions in the United States.
Institutional Asset Management net inflows of $3 billion (C$4.2 billion) increased 66.6%. The increase was driven by net flows from the Manulife Comvest business, and higher net sales from money market mandates in mainland China and from Manulife CQS products. It was partially offset by lower net flows in equity mandates and lower deployments in private equity mandates.
Asia Delivers Strong Growth
Asia division’s core earnings totaled $598 million, up 22% year over year, reflecting continued business growth and the net positive impact of 2025 updates to actuarial methods and assumptions. It was partially offset by less favorable insurance experience.
Asia reported strong growth in APE sales, new business CSM and NBV, with a year-over-year increase of 11%, 15% and 15%, respectively. The increase was driven by higher sales volumes and a more favorable business mix, reflecting growth in Hong Kong, Japan and Singapore across all three new business metrics. NBV margin improved modestly to 38.2%.
Canada and U.S. Face Headwinds
Manulife Financial’s Canada division’s core earnings of $256 million (C$352 million) declined 1.5% year over year. The downside was due to unfavorable insurance experience in Group Insurance in the first quarter of 2026. The variance in insurance experience was largely driven by higher long-term disability claims, along with higher expenses to support the growing business and transformational investment to elevate customer experience in Group Insurance. This was partially offset by business growth in the segment, the net positive impact of 2025 updates to actuarial methods and assumptions, and a lower charge in the expected credit loss provision.
APE sales and NBV decreased 15% and 16%, respectively, due to lower Group Insurance sales. This was partially offset by higher Individual Insurance sales.
New business CSM increased 13%, reflecting growth in Individual Insurance from higher participating life insurance sales.
The U.S. division reported core earnings of $241 million, down 4% year over year. The decrease was primarily due to lower investment spreads. It was partially offset by favorable net insurance experience in the first quarter of 2026.
APE sales increased 29% while new business CSM grew 19%. The increase reflects higher demand for accumulation insurance products, supported by recent product enhancements.
NBV decreased 8% due to product mix, partially offset by higher sales volumes.
MFC's Dividend Update
The board of directors declared a quarterly dividend of 48.5 cents per share on Manulife's shares. The dividend will be paid out on June 19, 2026, to shareholders of record as of May 29, 2026.
MFC’s Zacks Rank
Manulife currently has 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
Voya Financial, Inc. (VOYA - Free Report) reported first-quarter 2026 adjusted operating earnings of $2.26 per share, which beat the Zacks Consensus Estimate by 11.8%. The bottom line increased 13% year over year. Adjusted operating revenues amounted to $2 billion, which increased 3.1% year over year. Net investment income increased 1.6% year over year to $569 million.
Meanwhile, fee income of $604 million increased 6% year over year. Premiums totaled $744 million, up 1% from the year-ago quarter. Total benefits and expenses were $1.8 billion, up 0.3% from the year-ago quarter. As of March 31, 2026, VOYA’s assets under management, and assets under administration and advisement totaled $1.1 trillion.
Sun Life Financial Inc. (SLF - Free Report) delivered first-quarter 2026 underlying net income of $1.38 per share, which beat the Zacks Consensus Estimate by 2.2%. The bottom line increased 8.7% year over year. Underlying net income totaled $765 million (C$1 billion), which increased 5.2% year over year. Revenues of $6.4 billion decreased 18.9% year over year.
Asset management gross flows & wealth sales of $45.4 billion (C$62.3 billion) increased 4.8% year over year. Group - Health & Protection sales of $402 million (C$552 million) declined 0.4% year over year. Individual - Protection sales of $840 million (C$1.15 billion) jumped 38.1% year over year. New business contractual service margin (CSM) was $313 million (C$429 million), up 11% year over year.
Reinsurance Group of America, Incorporated (RGA - Free Report) reported first-quarter 2026 adjusted operating earnings of $6.97 per share, which beat the Zacks Consensus Estimate by 12.6%. The bottom line rose 21.9% from the year-ago quarter. RGA's operating revenues of $6.7 billion beat the Zacks Consensus Estimate by 3.7%. The top line improved 19.9% year over year.
Net premiums of $4.6 billion increased 14.3% year over year and beat the Zacks Consensus Estimates by 2.4%. Investment income improved 19.3% from the prior-year quarter to $1.7 billion and beat the Zacks Consensus Estimates by 7.4%. The average investment yield increased to 4.93% from 4.64% in the prior-year period, driven by higher variable investment income.