2Q26
Filed Aug 5, 2026Manulife reported 2Q26 core earnings of $1,923 million, up 12%, and net income attributed to shareholders of $2,110 million, up 17%, alongside double-digit growth in APE sales, new business CSM and NBV.
Core earnings, core EPS, reported EPS and all three insurance new-business measures increased year over year, while Asia, U.S. and Global WAM core earnings grew. Canada core earnings declined and Global WAM net inflows were lower than in 2Q25.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income attributed to shareholdersGAAP | $2,110 million | – | 17% |
| Core earningsnon-GAAP | $1,923 million | – | 12% |
| EPSGAAP | $1.20 | – | 22% |
| Core EPSnon-GAAP | $1.09 | – | 16% |
| ROEGAAP | 18.0% | – | 2.4 pps |
| Core ROEnon-GAAP | 16.3% | – | 1.3 pps |
| Book value per common shareGAAP | $27.48 | – | 10% |
| Adjusted book value per common sharenon-GAAP | $41.12 | – | 15% |
| Financial leverage rationon-GAAP | 22.2% | – | (1.4) pps |
| APE salesother | $2,698 million | – | 21% |
| New business CSMother | $1,024 million | – | 16% |
| NBVother | $929 million | – | 10% |
| Global WAM net flowsother | $0.4 billion | – | (57)% |
| LICAT ratio of MLIother | 136% | – | – |
| CSMother | $29,205 million | – | – |
| CSM, net of NCIother | $27,263 million | – | – |
| Post-tax CSM net of NCInon-GAAP | $22,667 million | – | – |
| Global WAM core EBITDAnon-GAAP | $693 million | – | – |
| Global WAM core revenuenon-GAAP | $2,220 million | – | – |
| Global WAM core EBITDA marginnon-GAAP | 31.2% | – | 110 bps |
| Core expensesnon-GAAP | $1,826 million | – | – |
| Total expensesGAAP | $1,850 million | – | – |
| Asia core earningsnon-GAAP | $616 million (US$) | – | 21% |
| Asia net income attributed to shareholdersGAAP | $768 million (US$) | – | 28% |
| Asia APE salesother | $1,496 million (US$) | – | 21% |
| Asia new business CSMother | $561 million (US$) | – | 17% |
| Asia NBVother | $506 million (US$) | – | 13% |
| Canada core earningsnon-GAAP | $379 million | – | (10)% |
| Canada net income attributed to shareholdersGAAP | $306 million | – | (22)% |
| Canada APE salesother | $426 million | – | 23% |
| Canada new business CSMother | $129 million | – | 29% |
| Canada NBVother | $162 million | – | 1% |
| U.S. core earningsnon-GAAP | $218 million (US$) | – | 55% |
| U.S. net income attributed to shareholdersGAAP | $110 million (US$) | – | 323% |
| U.S. APE salesother | $145 million (US$) | – | 12% |
| U.S. new business CSMother | $85 million (US$) | – | (1)% |
| U.S. NBVother | $48 million (US$) | – | 4% |
| Global WAM core earningsnon-GAAP | $505 million | – | 9% |
| Global WAM net income attributed to shareholdersGAAP | $514 million | – | 7% |
| Global WAM gross flowsother | $58.7 billion | – | 33% |
| Global WAM average AUMAother | $1,162 billion | – | 15% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Global WAMCore revenue was supported by higher net fee income from favourable market impacts over the past 12 months and contributions from the Manulife | Comvest business. | $2,220 million | – | – |
Q4 2026 outlook
- NoteThe long-term care reinsurance transaction is expected to close in Q4 2026, subject to the receipt of regulatory approvals.
Capital returns
- Returned $2.6 billion to shareholders through dividends and share buybacks in the first half of 2026.
What drove it
- Core earnings growth reflected strong business growth in Asia and Global WAM, a lower charge in the expected credit loss provision, and the net positive impact of 2025 updates to actuarial methods and assumptions.
- Asia core earnings increased on continued business growth and the net positive impact of 2025 updates to actuarial methods and assumptions.
- Global WAM core earnings increased primarily on higher net fee income from favourable market impacts over the past 12 months and contributions from Manulife | Comvest.
- U.S. core earnings increased on improved claims experience in life and long-term care and a lower charge in the expected credit loss provision.
- Insurance new-business growth was led by Asia, with growth in Hong Kong, Singapore and Japan.
- Institutional Asset Management generated $6.7 billion of net inflows, attributed to fixed income, mainland China money market, infrastructure, private credit, and Manulife | CQS product mandates.
Concerns
- Canada core earnings decreased 10%, reflecting unfavourable claims experience and higher Group Insurance expenses supporting business growth and transformational investments.
- Global WAM net inflows of $0.4 billion were below $0.9 billion in 2Q25.
- Retirement net outflows were $4.9 billion, compared with net inflows of $2.0 billion in 2Q25.
- Lower investment spreads in the U.S., the eMPF transition in Hong Kong, and more unfavourable net insurance experience partially offset core earnings growth.
- The U.S. new business CSM decreased 1%, with higher sales combined with a less favourable product mix.
What to watch
- Completion of the long-term care reinsurance transaction expected in Q4 2026, subject to regulatory approvals.
- Whether Global WAM retirement and retail net outflows moderate, following $4.9 billion of retirement net outflows and $1.4 billion of retail net outflows in 2Q26.
- Canada claims experience and the effect of higher Group Insurance and transformation expenses on core earnings.
- The continuation of Asia new-business growth in Hong Kong, Singapore and Japan.
- The progression of Global WAM margin expansion after core EBITDA margin reached 31.2%.
Balance sheet and cash flow
- LICAT ratio of The Manufacturers Life Insurance Company was 136% as at June 30, 2026.
- Financial leverage ratio was 22.2%.
- Common shareholders’ equity was $45,664 million as at June 30, 2026.
- Adjusted book value was $68,331 million as at June 30, 2026.
- CSM was $29,205 million as at June 30, 2026.
- Post-tax CSM net of NCI was $22,667 million as at June 30, 2026.
Analysis
Manulife reported 2Q26 core earnings of $1,923 million, up 12% from $1,726 million in 2Q25, and net income attributed to shareholders of $2,110 million, up 17% from $1,789 million. Core EPS was $1.09, up 16%, while EPS was $1.20, up 22%. Net income was also above $1,147 million in 1Q26, when market experience losses of $(666) million weighed on reported earnings; 2Q26 included market experience gains of $201 million.
Insurance demand indicators accelerated across the group. APE sales increased 21% to $2,698 million, new business CSM increased 16% to $1,024 million, and NBV increased 10% to $929 million. Asia delivered 21% APE sales growth, 17% new business CSM growth and 13% NBV growth, primarily driven by Hong Kong, Singapore and Japan. Canada posted 23% APE sales growth and 29% new business CSM growth, although NBV increased only 1% amid lower margins and a less favourable Group Insurance product mix. U.S. APE sales rose 12%, but new business CSM declined 1% because of a less favourable product mix.
Profitability growth was led by Asia, U.S. and Global WAM. Asia core earnings increased 21%, Global WAM core earnings rose 9%, and U.S. core earnings increased 55%. Canada core earnings declined 10% on unfavourable claims experience and higher Group Insurance and transformation expenses. Global WAM's core EBITDA margin expanded to 31.2% from 30.1%, while core revenue was $2,220 million. Group core expenses were $1,826 million, compared with $1,689 million in 2Q25.
Global WAM generated $0.4 billion of net inflows, below $0.9 billion in 2Q25. Institutional Asset Management net inflows of $6.7 billion offset retirement net outflows of $4.9 billion and retail net outflows of $1.4 billion. Gross flows increased 33% to $58.7 billion and average AUMA increased 15% to $1,162 billion. The business also benefited from higher net fee income from favourable market impacts and contributions from Manulife | Comvest.
Capital and future earnings capacity strengthened. CSM reached $29,205 million and post-tax CSM net of NCI was $22,667 million as at June 30, 2026. The LICAT ratio was 136%, financial leverage was 22.2%, and the company returned $2.6 billion to shareholders through dividends and share buybacks in the first half of 2026. The release did not provide financial operating guidance, but states that the long-term care reinsurance transaction is expected to close in Q4 2026, subject to regulatory approvals.
Management, verbatim
Manulife delivered a strong second quarter, with disciplined execution driving momentum against our strategic priorities. Core EPS increased 16% year over year, and all three insurance segments delivered double-digit top-line growth, underscoring the strength of our diversified portfolio.
Phil Witherington, Manulife President & Chief Executive Officer
Our CSM balance increased 20% year over year, reflecting strong new business growth and further strengthening our future earnings capacity. We also delivered positive operating leverage this quarter, achieving an expense efficiency ratio of 44.5%.
Colin Simpson, Manulife Chief Financial Officer
Not in the filing
stated, not guessed- Total consolidated revenue was not reported.
- Segment revenue was not reported for Asia, Canada or U.S.
- GAAP gross margin was not reported.
- GAAP operating income was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Cash and debt balances were not reported.
- Dividend and share-buyback amounts were not separately reported.
- Forward financial guidance for revenue, expenses, margins, earnings, EPS or tax rate was not reported.
- Prior-quarter percentage changes were not reported for most metrics.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.