MFC Q2 Earnings Beat on Asia Growth and Strong Insurance Sales

MFC's Core Earnings Rise on Business Growth

Core earnings were C$1.92 billion ($1.38 billion), up 12% year over year. The improvement reflected continued growth in Asia, higher Global WAM earnings and the net positive impact of updates to actuarial methods and assumptions made in 2025.

The increase was partly offset by unfavorable insurance experience in Canada and Asia, lower U.S. investment spreads and the effect of the eMPF transition in Hong Kong. Net income attributed to shareholders increased C$321 million to C$2.11 billion, aided by favorable market experience.

Core return on equity expanded 130 basis points year over year to 16.3%. The expense efficiency ratio improved 100 basis points year over year to 44.5%, indicating positive operating leverage during the quarter.

Manulife's New Business Metrics Record Growth

APE sales advanced 21% year over year to C$2.70 billion ($1.95 billion). Asia remained the largest contributor, with sales rising to C$2.07 billion from C$1.71 billion. Canada APE sales increased 23% year over year to C$426 million ($307.69 million).

New business CSM increased 16% year over year to C$1.02 billion ($0.7 billion). This measure represents the expected future profit from new insurance contracts. New business value climbed 10% year over year to C$929 million ($671 million), highlighting broad-based momentum across the insurance portfolio.

The CSM balance, net of non-controlling interests, reached C$27.26 billion as of June 30, 2026. Annualized organic CSM growth was 10%, supported by new business contributions, interest accretion and insurance experience.

MFC's Asia and U.S. Units Deliver Strong Gains

Asia core earnings increased 21% year over year to $616 million. APE sales advanced 21%, new business CSM rose 17%, and new business value improved 13%, led by growth in Hong Kong, Singapore and Japan. Changes in business mix moderated growth in profitability metrics relative to sales.

U.S. core earnings jumped 55% year over year to $218 million. Improved claims experience in life insurance and long-term care, along with a lower expected credit loss charge, more than offset weaker investment spreads. APE sales rose 12%, though new business CSM declined 1% because of product mix.

Canada core earnings fell 10% year over year to C$379 million ($273.74). Unfavorable claims experience and higher Group Insurance expenses weighed on results, partly offset by actuarial assumption benefits, higher investment spreads and an expected credit loss provision release.

Manulife's Global WAM Margin Expands

Global WAM core earnings increased 9% year over year to C$505 million ($364.75 million). Higher average assets under management and administration and contributions from the Comvest acquisition supported the increase. These benefits were partly offset by the eMPF transition and expenses associated with business growth.

Average AUMA rose 15% year over year to C$1.16 trillion. The core EBITDA margin expanded 110 basis points to 31.2%, reflecting improved operating economics.

Global WAM generated net inflows of C$0.4 billion. Institutional inflows of C$6.7 billion, including contributions from CQS and Comvest, offset retirement outflows of C$4.9 billion and retail outflows of C$1.4 billion.

MFC Maintains a Strong Capital Position

Manulife ended the quarter with a Life Insurance Capital Adequacy Test ratio of 136%, unchanged from the year-ago period. Its financial leverage ratio declined 140 basis points to 22.2%, remaining below the company’s medium-term target of 25%.

Book value per common share increased 10% to C$27.48. Adjusted book value per share rose 15% to C$41.12, including a CSM balance per share of C$13.64.

The company returned C$1.4 billion to shareholders during the quarter through C$0.8 billion of common share dividends and C$0.6 billion of share repurchases. It also announced a long-term care reinsurance transaction that is expected to reduce its cumulative long-term care risk by 24% upon closing.

MFC’s Zacks Rank

Manulife currently has a Zacks Rank #5 (Strong Sell). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Voya Financial, Inc. VOYA reported second-quarter 2026 adjusted operating earnings of $1.51 per share, missing the Zacks Consensus Estimate of $1.88 by 19.7%. The bottom line declined 38.6% year over year. Revenues of $269 million missed the consensus mark by 4.6%. 

After-tax adjusted operating earnings fell to $140 million from $240 million in the year-ago quarter. Results included about $40 million of pre-tax severance expenses and a $15 million pre-tax loss tied to alternative investment performance. Consolidated revenues declined 4.3% year over year to $1.90 billion. Fee income increased 7.5% to $620 million, but net investment income fell 8% to $537 million. Premiums remained nearly flat at $716 million. Total benefits and expenses rose 3.8% to $1.86 billion, including a 4.8% increase in operating expenses.

Lincoln National Corporation LNC reported second-quarter 2026 adjusted earnings per share of $2.24, which surpassed the Zacks Consensus Estimate by 12%. The bottom line declined 5.1% year over year. Adjusted operating revenues grew 4.2% year over year to $4.93 billion, surpassing the Zacks Consensus Estimate by 1.4%.

LNC's estimated RBC ratio remained above 420% at the end of the reported quarter. Insurance premiums inched up 2% year over year to $1.7 billion, marginally missing the Zacks Consensus Estimate by 0.01%. Fee income was $1.4 billion, which improved 4.3% year over year but missed the consensus mark by 0.4%. Net investment income advanced 10.5% year over year to $1.6 billion and beat the consensus mark by 10.8%. Meanwhile, other revenues of $202 million rose 9.8% year over year in the quarter under review.

Globe Life Inc. GL reported second-quarter 2026 net operating income of $3.61 per share, which missed the Zacks Consensus Estimate of $3.67 by 1.6%. The bottom line, however, improved 10% year over year, driven by higher insurance underwriting income. Operating revenues increased 8% year over year to $1.60 billion. The top line surpassed the Zacks Consensus Estimate by 0.6%.

Total premium revenues increased 7% year over year to $1.30 billion. Life insurance premiums rose 3% to $860.8 million, while health insurance premiums climbed 16% to $436.9 million, supported by strong growth at United American and Family Heritage.

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