TORONTO, May 14, 2026, 15:04 EDT
- Manulife posted first-quarter core earnings of C$1.84 billion, an 8% jump on a constant-currency basis. Net income attributable to shareholders came in higher too, reaching C$1.15 billion.
- Shares on the NYSE slid roughly 6% as U.S.-dollar core EPS landed 2.5% below the Zacks consensus estimate.
- Asia continued to drive growth, though Global Wealth and Asset Management saw net outflows of C$4.4 billion.
Shares of Manulife Financial Corporation dropped roughly 6% in U.S. trading Thursday, as the insurer reported higher first-quarter profit but fell short on core earnings per share. Investors zeroed in on lagging results from Canada and the U.S., despite another solid performance out of Asia.
This move stands out for Manulife, which had been riding a decent run heading into results season. Investors remain focused on whether heavyweight Canadian insurers like Manulife can actually convert that Asian momentum into more reliable group-wide earnings. According to Reuters, Manulife’s stock is up roughly 9.6% so far this year—ahead, but still trailing Sun Life, its smaller rival, which has climbed 13.2% and just reported stronger quarterly profits last week.
Manulife’s core earnings—its preferred operating profit metric, which excludes certain market and accounting factors—climbed to C$1.84 billion, or C$1.06 per share, compared with C$1.77 billion, or 99 Canadian cents, a year ago. Net income attributable to shareholders shot up, reaching C$1.15 billion, more than double last year’s C$485 million.
Headline growth wasn’t the issue. The composition was.
Core earnings out of Asia climbed 22% to US$598 million, lifted by stronger sales and improved new business across major markets. “Another strong quarter,” Chief Executive Phil Witherington said, noting the uptick in both core earnings and new business value. Reuters
Core earnings in Canada declined 6% to C$352 million, while annualized premium equivalent sales—reflecting new insurance business—fell 15%. Over in the United States, core earnings edged down 4% to US$241 million, despite higher sales. Zacks attributed the U.S. softness to slimmer investment spreads.
Global Wealth and Asset Management—Global WAM—logged net outflows of C$4.4 billion, a sharp reversal from the C$500 million in net inflows recorded the previous year. Despite the outflows, core earnings ticked up 2% to C$448 million. That outflow figure, though, stood in stark contrast to stronger margins and asset data.
Manulife posted a 16% jump in new business contractual service margin, bringing the figure to C$1.02 billion. For insurers, that line is a proxy for future profit potential rather than just the quarter’s reported earnings.
Colin Simpson, the CFO, pointed to Manulife’s “resilience” in what turned out to be a choppy quarter for markets. The insurer posted a 16.5% core return on equity and a 136% LICAT ratio, a key gauge for Canadian life insurers. Shareholder returns came in at C$1.2 billion, split between dividends and share repurchases. PR Newswire
The board set a quarterly common dividend at C$0.485 per share, slated for payment on or after June 19 to holders registered as of May 29.
The risks here aren’t hard to spot. Should U.S. investment spreads remain tight, or Canadian disability claims continue at current levels, or if wealth-management outflows don’t reverse, Asia’s segment could be left to shoulder more of the burden to reach management’s return goals. On the call, Witherington reiterated the company’s commitment to hitting its 18%-plus core ROE target by 2027’s close. He also noted that acquisitions would face a “high bar,” with the main emphasis on delivering through organic growth. Investing.com
Traders in U.S. rate markets aren’t pricing in a sudden pivot from the Fed. On Polymarket’s Fed dashboard, the odds of policy staying put at the June 17 meeting sat at 98%. Just 1% was given to the possibility of a 25-basis-point trim—a move equal to a quarter point.
Manulife’s first-quarter update landed with a mixed tone, not outright weakness. Growth in Asia is still happening and capital returns remain on the table. But investors didn’t bite: shares fell Thursday, signaling they’re looking for more clarity in the earnings, not just size.
