Manulife Reports Third Quarter 2025 Results

TORONTO, Nov. 12, 2025

• Core earnings¹ of $2.0 billion, up 10% on a CER basis² compared with the third quarter of 2024 ("3Q24")
  • Excluding the impact of the change in expected credit loss ("ECL"), core earnings was $2.0 billion, up 6% from 3Q24^1,2
• Net income attributed to shareholders of $1.8 billion, in line with 3Q24
• Core EPS³ of $1.16, up 16%² from 3Q24. EPS of $1.02, up 2%² from 3Q24
  • Excluding the impact of the change in ECL, core EPS was $1.14, up 11% from 3Q24^2,3
• Core ROE³ of 18.1% and ROE of 16.0%
• LICAT ratio⁴ of 138%
• APE sales up 8%⁵, new business CSM up 25%² and new business value ("NBV") up 11%⁵ from 3Q24^6,7
• Global Wealth and Asset Management ("Global WAM") net outflows⁵ of $6.2 billion, compared with $5.2 billion of net inflows in 3Q24

Results at a Glance

Results by Segment

Strategic Highlights

For the first time, Manulife was included in the TIME World's Best Companies (2025) List, which encompassed 1,000 global organizations. The assessment focused on three key dimensions: employee satisfaction, revenue growth, and sustainability transparency.

Furthermore, Manulife has been upgraded by MSCI from AA to AAA in its ESG rating, the highest possible rating, recognizing our strong governance and proactive management of sustainability-related risks.

We are strategically deploying capital to enhance capabilities and drive growth  

In Global WAM, we entered an agreement to acquire 75% of Comvest Credit Partners ("Comvest"), a U.S. private credit manager with US$14.7 billion¹⁰ on its platform. The acquisition, which was completed on November 3, 2025, will enhance our private credit capabilities and create a comprehensive platform, by aligning Comvest with Manulife's existing senior credit team. By leveraging Comvest's investment philosophy and expertise, we will be able to offer clients expanded access to differentiated private credit strategies.

In addition, we entered an agreement to acquire PT Schroder Investment Management Indonesia ("Schroders Indonesia"), strengthening our position as the largest asset manager in Indonesia, and enabling us to deliver enhanced value to our clients and stakeholders by leveraging their local expertise and client relationships. The transaction is subject to customary closing conditions and regulatory approvals.

In November, we entered into an agreement to establish a 50:50 life insurance joint venture with Mahindra & Mahindra Ltd., an existing partner through our asset management joint venture, to enter the India insurance market¹¹. This partnership will expand our global footprint and position us to grow across one of the world's largest economies, delivering long-term value.

We are delivering differentiated customer experience and digital solutions with AI-powered innovations

In Hong Kong, we launched the Manulife AI Assistant, a leading GenAI-powered customer chatbot designed to handle payment, claims, and policy-related inquiries on our websites. It provides 24/7 availability and contextual understanding for accurate and instant responses to complex, multilingual customer queries in Chinese and English. Together with our e-claims solutions, the Manulife AI Assistant has earned us two accolades in the Hong Kong Business Technology Excellence Awards 2025.

In Canada, we introduced an enhanced life and health insurance online application form that reduces complexity, accelerates medical data collection, and shortens processing times through adaptive questioning and streamlined workflows, transforming the digital experience for advisors. These efficiencies strengthen our competitiveness in the mass market segment and support Manulife's ambition of delivering scalable digital offerings.

Furthermore, we launched a GenAI-powered coaching tool for Licensed Insurance Advisor ("LIA") supervisors in our Affinity business that evaluates customer service calls, generating insights that allow supervisors to provide LIAs with more effective, timely, and targeted feedback to enhance customer service and sales outcomes.

In the U.S., we partnered with Munich Re Life US to enhance underwriting efficiency through alitheia, its AI-driven risk assessment platform, raising instant underwriting decision eligibility from US$3 million to US$5 million, enabling more customers to experience a streamlined life insurance application process.

In Global WAM, we launched FutureChoice^TM, an open-architecture retirement plan solution in the U.S. FutureChoice^TM expands our product offerings and strengthens our digital capabilities through the integration of AI to improve user experience, by streamlining processes for client onboarding and participant access.

We are empowering our customers to focus on health, wealth and longevity across our global footprint  

In Asia, we launched the enhanced ManulifeMOVE, our flagship lifestyle program, with initial rollout in Singapore in September, followed by the Philippines in October. ManulifeMOVE empowers customers to take charge of their health and well-being, with key enhancements including differentiated and expanded benefits across preventive health services, medical and assistive care, cancer care support, health and well-being coaching, fitness and wellness experiences, alongside community engagement.

In addition, we hosted Asia's inaugural Manulife Longevity Symposium in Singapore in September, followed by the Philippines in October, reinforcing our commitment to advancing Asia's longevity movement. The symposium brought together over 1,000 healthcare experts, industry leaders, financial consultants, customers and partners to address the challenge of living not just longer, but better, covering topics such as health and longevity innovations, and financial well-being.

In the U.S., we expanded our suite of insurance solutions by introducing an accumulation survivorship indexed universal life product, John Hancock's first offering in this product category. We also became the first life insurer to offer annual and recurring access to GRAIL's Galleri^® multi-cancer test to eligible John Hancock Vitality members, expanding access to early detection technology and reinforcing our commitment to helping customers live longer, healthier, and better lives.

Strong business growth contributing to record core earnings ¹²

Core earnings of $2.0 billion in 3Q25, up 10% from 3Q24

The increase in core earnings reflected strong business growth in Global WAM, Asia and Canada, a release in the expected credit loss ("ECL") provision compared with an increase in 3Q24, and the net impact of the annual review of actuarial methods and assumptions in 3Q25, partially offset by unfavourable life insurance claims experience in the U.S.

• Asia core earnings increased 29%, reflecting 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 compared with an increase in 3Q24.
• Global WAM core earnings increased 9%, driven by higher net fee income from favourable market impacts over the past 12 months, higher performance fees and continued expense discipline, partially offset by lower favourable tax true-ups and tax benefits.
• Canada core earnings were up 4%, driven by higher investment spreads, business growth in Group Insurance, favourable insurance experience in Individual Insurance, and the net impact of the annual review of actuarial methods and assumptions, partially offset by less favourable insurance experience in Group Insurance.
• U.S. core earnings decreased 20%, reflecting unfavourable life insurance claims experience, lower investment spreads and the impact of the RGA U.S. Reinsurance Transaction¹³, partially offset by a release in the ECL provision compared with an increase in 3Q24, and favourable lapse experience.
• Corporate and Other core earnings improved by $49 million, primarily driven by an adjustment to the year-to-date accrual for withholding taxes following the announcement of the Comvest acquisition.

Net Income attributed to shareholders of $1.8 billion in 3Q25, in line with 3Q24

Net income was largely in line with 3Q24, reflecting core earnings growth offset by favourable market experience in 3Q24. The net neutral market experience in 3Q25 reflects lower-than-expected returns on alternative long-duration assets, mainly related to private equity, real estate and timber investments, offset by higher-than-expected returns on public equities.

Insurance new business growth highlighting the strength and diversity of our businesses

APE sales, new business CSM and NBV increased 8%, 25% and 11%, respectively, reflecting continued sales momentum and broad-based strength across our insurance segments

• Asia continued to generate solid growth in APE sales, new business CSM and NBV, with a year-over-year increase of 5%, 18% and 7%, respectively, reflecting higher sales volumes in Asia Other¹⁴ and a more favourable business mix. NBV margin improved to 39.0%.⁵
• Canada increased APE sales, new business CSM and NBV by 9%, 15% and 11%, respectively, driven by strong sales in Individual Insurance.
• U.S. delivered very strong new business growth this quarter with an increase in APE sales, new business CSM and NBV of 51%,104% and 53%, respectively, reflecting broad-based demand for our suite of products.

Global WAM net outflows of $6.2 billion in 3Q25, compared with net inflows of $5.2 billion in 3Q24

• Retirement net outflows were $1.6 billion in 3Q25 compared with net inflows of $0.6 billion in 3Q24, driven by several large plan sales in the U.S. in 3Q24, and higher net member withdrawals reflecting higher account balances from market growth and cost of living pressures in North America.
• Retail net outflows were $3.9 billion in 3Q25 compared with net inflows of $3.9 billion in 3Q24, driven by lower net sales through third-party intermediaries in North America and our Canada retail wealth platform.
• Institutional Asset Management net outflows were $0.7 billion in 3Q25 compared with net inflows of $0.7 billion in 3Q24, driven by higher redemptions in equity mandates, as well as lower sales in private equity and real estate mandates. This was partially offset by higher net sales in fixed income mandates.

New business growth continued to drive higher organic CSM and CSM balance

CSM¹⁵ was $24,718 million as at September 30, 2025

CSM increased $2,591 million compared with December 31, 2024. Organic CSM movement contributed $1,714 million of the increase for the same period, representing a 11%⁵ growth on an annualized basis, primarily driven by the impact of new business, interest accretion and net favourable insurance experience, partially offset by amortization recognized in core earnings. Inorganic CSM movement was an increase of $877 million for the same period, primarily driven by the net impacts of the annual review of actuarial methods and assumptions and equity market performance, partially offset by the impacts of changes in foreign currency exchange rates and reinsurance transactions. Post-tax CSM net of NCI¹ was $20,537 million as at September 30, 2025.

Annual review of actuarial methods and assumptions

We completed our annual review of actuarial methods and assumptions, which resulted in a net favourable impact of a $605 million¹⁶ decrease in pre-tax fulfillment cash flows. Under International Financial Reporting Standards ("IFRS") 17, the impact of the annual review of actuarial methods and assumptions is reported in several places. The $605 million decrease in pre-tax fulfillment cash flows was comprised of a decrease in pre-tax net income attributed to shareholders of $244 million ($216 million post-tax), a decrease in pre-tax net income attributed to participating policyholders of $88 million ($67 million post-tax), an increase in CSM of $1,080 million, a decrease in pre-tax other comprehensive income attributed to shareholders of $52 million ($73 million post-tax), and a decrease in pre-tax other comprehensive income attributed to participating policyholders of $91 million ($70 million post-tax).

The review this year included a comprehensive study of our U.S. long-term care ("LTC") experience, including all aspects of claim assumptions, as well as the progress on future premium increases and approved premium increases in excess of prior assumptions. The net favourable impact of the LTC review resulted in a decrease in pre-tax fulfillment cash flows of $77 million. Other actuarial methods and assumptions reviewed included a change in the IFRS 17 measurement model on certain health insurance products in Hong Kong, annual updates to our valuation models for participating products in Asia and Canada, lapse assumptions for certain products in Singapore, lapse review on term insurance products in Canada, morbidity assumptions for group long-term disability benefits in Canada, as well as other valuation model updates.

Earnings Results Conference Call

Manulife will host a conference call and live webcast on its Third Quarter 2025 results, including an update on its  strategic refresh, on November 13, 2025, at 8:00 a.m. (ET). To access the conference call, dial 1-888-317-6003 or 1-412-902-6506 (Passcode: 0794352#). Please call in 15 minutes before the scheduled start time. You will be required to provide your name and organization to the operator. You may access the webcast at https://www.manulife.com/en/investors/results-and-reports.

The archived webcast will be available following the call at the same URL as above. A replay of the call will also be available until January 13, 2026, by dialing 1-855-669-9658 or 1-412-317-0088 (Passcode: 9645853#).

The Third Quarter 2025 Statistical Information Package and additional information related to the strategic refresh are also available on the Manulife website at https://www.manulife.com/en/investors/results-and-reports.

This earnings news release should be read in conjunction with the Company's Third Quarter 2025 Report to Shareholders, including our unaudited interim Consolidated Financial Statements for the three and nine months ended September 30, 2025, prepared in accordance with IFRS as issued by the International Accounting Standards Board, which is available on our website at https://www.manulife.com/en/investors/results-and-reports.html. The Company's 3Q25 MD&A and additional information relating to the Company is available on the SEDAR+ website at https://www.sedarplus.ca and on the U.S. Securities and Exchange Commission's ("SEC") website at https://www.sec.gov.

Any information contained in, or otherwise accessible through, websites mentioned in this news release does not form a part of this document unless it is expressly incorporated by reference.

Earnings

The following table presents net income attributed to shareholders, consisting of core earnings and details of the items excluded from core earnings:

Global Minimum Taxes ("GMT")

On June 20, 2024, the Canadian government passed the Global Minimum Tax Act into law. Canada's GMT is applied retroactively to fiscal periods commencing on or after December 31, 2023. As additional local jurisdictions are expected to enact the GMT in 2025, GMT is now recognized in net income in the reporting segments whose earnings are subject to this tax. GMT is reported in both core earnings and items excluded from core earnings in line with our definition of core earnings in section E3 "Non-GAAP and Other Financial Measures" of the 3Q25 MD&A.

To improve the comparability of results between 2025 and 2024, we have updated certain 2024 non-GAAP and other financial measures to reflect the impact of GMT, including quarterly core earnings, core ROE, core EPS, financial leverage ratio, adjusted book value per common share, new business value, and post-tax CSM net of NCI. For further information and a complete list of the impacted financial measures, please see section A7 "Global Minimum Taxes (GMT)" of the 3Q25 MD&A, which is incorporated by reference.

Non-GAAP and other financial measures

The Company prepares its Consolidated Financial Statements in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board. We use a number of non-GAAP and other financial measures to evaluate overall performance and to assess each of our businesses. This section includes information required by National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure in respect of "specified financial measures" (as defined therein).

Non-GAAP financial measures include core earnings (loss); core earnings excluding the impact of the change in ECL; core earnings available to common shareholders excluding the impact of the change in ECL; core earnings available to common shareholders; core earnings before interest, taxes, depreciation and amortization ("core EBITDA"); core expenses; adjusted book value; post-tax contractual service margin; post-tax contractual service margin net of NCI ("post-tax CSM net of NCI"); assets under management ("AUM"); and core revenue. In addition, non-GAAP financial measures include the following stated on a constant exchange rate ("CER") basis: any of the foregoing non-GAAP financial measures; net income attributed to shareholders; and common shareholders' net income.

Non-GAAP ratios include core return on common shareholders' equity ("core ROE"); diluted core earnings per common share ("core EPS"); diluted core earnings per common share excluding the impact of the change in ECL ("core EPS excluding the impact of the change in ECL"); expense efficiency ratio; adjusted book value per common share; financial leverage ratio; core EBITDA margin; and percentage growth/decline on a constant exchange rate basis in any of the above non-GAAP financial measures and non-GAAP ratios; net income attributed to shareholders; diluted earnings per common share ("EPS"), CSM, and new business CSM.

Other specified financial measures include NBV; APE sales; gross flows; net flows; average assets under management and administration ("average AUMA"); NBV margin; and percentage growth/decline in these foregoing specified financial measures. In addition, explanations of the components of the CSM movement, other than the new business CSM were provided in the 3Q25 MD&A.

Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under GAAP and, therefore, might not be comparable to similar financial measures disclosed by other issuers. Therefore, they should not be considered in isolation or as a substitute for any other financial information prepared in accordance with GAAP. For more information on non-GAAP financial measures, including those referred to above, see the section "Non-GAAP and other financial measures" in our 3Q25 MD&A, which is incorporated by reference.

Reconciliation of core earnings to net income attributed to shareholders – 3Q25
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

Core earnings, CER basis and U.S. dollars – 3Q25
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

Reconciliation of core earnings to net income attributed to shareholders – 2Q25
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

Core earnings, CER basis and U.S. dollars – 2Q25
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

Reconciliation of core earnings to net income attributed to shareholders – 3Q24 ⁽¹⁾
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

Core earnings, CER basis and U.S. dollars – 3Q24
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

Reconciliation of core earnings to net income attributed to shareholders – YTD 2025
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)