Manulife Core Earnings Rise 12% on Insurance Growth
The insurer reported core earnings of $1.9 billion for the second quarter, driven by a 21% increase in APE sales.
Manulife Financial Corporation (MFC), a global insurance and financial services provider, reported second quarter core earnings of $1.9 billion, a 12% increase on a constant exchange rate basis compared with the second quarter of 2025. Net income attributed to shareholders rose $0.3 billion to $2.1 billion during the period.
Growth was led by the company's insurance operations, where all three new business metrics saw double-digit increases. APE sales rose 21% to $2.7 billion, while new business contract service margin (CSM) grew 16% to $1.02 billion. New business value increased 10% to $929 million. The company's total CSM balance increased 20% year over year.
Regional performance in Asia contributed significantly to the results, with core earnings in that segment rising 21% to $616 million. The company also reported that its insurance segments overall delivered double-digit top-line growth.
In its Global Wealth and Asset Management segment, Manulife generated $0.4 billion in net inflows, though this was lower than the $0.9 billion in net inflows recorded in the second quarter of 2025. The company attributed positive net flows in this segment to contributions from its recently acquired Comvest and CQS businesses.
Financial metrics showed an increase in core return on equity to 16.3%, up 130 basis points from the prior-year period. The company achieved an expense efficiency ratio of 44.5%. Manulife returned $2.6 billion to shareholders through share buybacks and dividends during the first half of 2026.
To reduce its risk profile, the company announced a long-term care reinsurance transaction. Manulife is also expanding its distribution through a new advisor network in the U.S. and the launch of high-net-worth insurance solutions.