Manulife Financial Corporation released its 2025 annual results reflecting consistent overall growth, expanded adoption of IFRS 17 standards, and stable core earnings across key business segments. For the year ended December 31, 2025, net income was reported at CAD 6,060 million, compared to CAD 5,878 million in 2024. Diluted earnings per common share rose to CAD 3.07 from CAD 2.84 the previous year, supported by higher investment returns and solid insurance service results. Full-year basic earnings per common share reached CAD 3.08, up from CAD 2.85. Dividends per common share were CAD 1.76 in 2025, compared to CAD 1.60 in 2024.
Total assets grew to CAD 1,025,433 million from CAD 978,818 million in 2024, contributed by an increase in invested assets to CAD 459,928 million (from CAD 442,497 million). The balance sheet showed that total liabilities rose to CAD 972,945 million, primarily reflecting higher insurance contract liabilities of CAD 411,532 million and a larger segregated fund business balance at CAD 461,254 million. Total equity stood at CAD 52,488 million, a slight decrease from CAD 52,960 million, largely due to movements in accumulated other comprehensive income and share repurchase activity.
The Company continued to integrate IFRS 17 principles, which affect the measurement of insurance contract liabilities, reinsurance contracts, and disclosures around contractual service margins. Management highlighted a net increase in net insurance contract liabilities, rising from CAD 522,844 million in 2024 to CAD 540,344 million in 2025. Reinsurance contract held assets and liabilities reflected ongoing use of quota share and specific legacy block reinsurance transactions implemented to manage risk and capital more efficiently.
Performance in 2025 was driven by increased investment income, which reached CAD 19,014 million, boosted by realized and unrealized gains on assets supporting insurance and investment contract liabilities. Operating cash flows rose to CAD 32,015 million, compared to CAD 26,494 million in the prior year, helped by robust premium inflows and positive changes in net liabilities. Across the core segments, Asia reported incremental expansion in its insurance service result and contributed higher revenues from wealth management operations. Canada’s results benefited from group and individual product performance, while the U.S. segment posted moderate growth in net income before taxes, despite higher insurance finance expenses.
Under IFRS 9, the Company continued hedge accounting for derivatives used to manage exposures to equity markets, interest rates, and currency shifts. Fair value measurements of Level 3 assets (such as certain mortgages, private placements, and investment properties) were updated, with no material transfers between Levels 1 and 2 reported during 2025.
On the capital side, capital instruments totaled CAD 6,990 million, largely composed of subordinated debentures carried at amortized cost. Long-term debt stood at CAD 7,685 million, with a fair value of CAD 6,962 million and maturities extending beyond five years at CAD 4,986 million. Shareholder returns included common share repurchases of CAD 2,431 million in 2025, compared to CAD 3,272 million in 2024, bringing total common shares outstanding to 1,677 million, down from 1,729 million a year earlier.
Risk management disclosures emphasized hedging strategies for variable annuity guarantees and equity risk, along with the continued adoption of IFRS 17 for quantifying insurance risks. The Company noted that sensitivity to interest rate and equity market movements is mitigated through macro and dynamic hedging programs. Credit and liquidity risk management processes remain robust, with global liquidity pools, repurchase funding programs, and membership in home-loan banking facilities supporting funding flexibility. The consolidated solvency oversight continues to follow local regulatory requirements and internal risk targets.
Governance updates confirmed ongoing board-level oversight of capital, risk limits, and investment exposures, while the Company’s internal audits and actuarial reviews supported the reliability of financial data. No major changes were reported in core shareholding arrangements or top management incentive structures, other than the continuation of share-based compensation plans and normal course issuer bids.
Overall, Manulife concluded the year with stronger income, increased total assets, and methodical integration of IFRS 17 standards, underscoring the Company’s focus on consistent product profitability and disciplined risk management across its global footprint. Management highlighted a stable outlook for future operations under current market conditions and continues to emphasize balance sheet strength, operational resilience, and capital flexibility for the coming reporting periods.