Manulife Financial Corporation reported core earnings of CA$1.8 billion (approximately US$1.3 billion) for the first quarter of 2025, representing a 1% decrease on a constant exchange rate basis compared to the same period last year. The company’s net income attributed to shareholders fell to CA$500 million, a decline of CA$400 million year-over-year.
The core earnings performance was affected by a CA$45 million post-tax provision for expected credit losses (ECL) and a CA$43 million post-tax provision related to the California wildfires. In contrast, the first quarter of 2024 included a CA$8 million post-tax net release of ECL.
Segment Performance
Manulife’s results reflect mixed performance across segments. Asia and Global Wealth and Asset Management (Global WAM) showed growth, while US operations and corporate functions posted declines.
- Asia core earnings rose 7%, supported by higher business volumes and favorable claims experience.
- Global WAM posted a 24% increase in core earnings, driven by higher net fee income and favorable market conditions.
- Canadian operations saw a 3% increase, with growth in Group Insurance partly offset by lower earnings from Manulife Bank.
- Core earnings in the US declined 25%, attributed to lower investment spreads and higher ECL provisions.
Key Highlights
The company’s reported earnings per share (EPS) were CA$0.25, down 48% from the first quarter of 2024. Core EPS rose 3% to CA$0.99. Return on equity (ROE) stood at 3.9%, while core ROE was 15.6%. The Life Insurance Capital Adequacy Test (LICAT) ratio was 137%.
“Overall, I am proud of our performance this quarter against an increasingly volatile operating environment,” said Roy Gori, Manulife president and chief executive officer.
Business Growth
Insurance new business metrics reached record levels in the quarter. Annualized premium equivalent (APE) sales rose 37%, new business contractual service margin (CSM) increased 31%, and new business value (NBV) grew 36% year-over-year. Asia led the growth with 50% higher APE sales and 43% growth in NBV.
The latest quarterly results follow a record-setting year for Manulife in 2024, with core earnings of CA$7.2 billion, reflecting an 8% year-over-year increase on a constant exchange rate basis.
