Manulife Financial Corporation (TSX/NYSE/PSE: MFC; SEHK: 945) Reports Record 2025 Core Earnings and Raises Dividend

Bulletin Express
Feb 12

Manulife Financial Corporation disclosed its full-year and fourth-quarter 2025 results, showing record core earnings and a 10.2% increase in its quarterly dividend. Core earnings rose to C$7.5 billion for the full year, a 3% constant exchange rate increase over 2024, while quarterly core earnings reached C$2.0 billion, up 5%. The company’s net income attributed to shareholders stood at C$5.6 billion for the year, C$1.5 billion of which was earned in the fourth quarter.

Manulife reported a 14% jump in 2025 annualized premium equivalent (APE) sales, with an 18% rise in new business value (NBV) and a 28% increase in new business contractual service margin (CSM) compared with 2024. These gains were driven by performance across all insurance segments, notably in Asia, which registered strong business growth. Full-year global wealth and asset management net outflows totaled C$14.3 billion, affected by higher redemptions in retirement and retail channels, partially offset by positive inflows in institutional asset management.

The company’s core return on equity was 16.5% for the year, and the Life Insurance Capital Adequacy Test (LICAT) ratio ended at 136%. Manulife deployed capital toward growth initiatives and share buybacks, repurchasing 3.1% of outstanding common shares. In addition to announcing a higher dividend, Manulife announced a new Normal Course Issuer Bid to repurchase up to approximately 2.5% of its outstanding common shares, subject to regulatory approval.

Strategic moves in 2025 included an acquisition in U.S. private credit management (Comvest Credit Partners), entry into India’s life insurance market through a partnership with Mahindra, a high-net-worth office launch in the Dubai International Financial Centre, and an agreement to acquire Schroders Investment Management Indonesia. The company noted its ongoing focus on AI-powered initiatives and the expansion of lifestyle, health, and wealth solutions across its operating regions, underscoring its commitment to delivering sustainable growth and value for stakeholders.

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