Manulife stock: Record core earnings mask 22% profit drop

Manulife Financial Corporation reported record core earnings for the third quarter ended September 30, 2026, but lower market returns and a Vietnam-related charge pulled reported profit down. The results were released on Wednesday, November 4, and published by Morningstar and PR Newswire.

Core earnings rose 4 percent on a constant-exchange-rate basis to 2.125 billion Canadian dollars from 2.035 billion Canadian dollars a year earlier. Core earnings per share increased 6 percent to 1.24 Canadian dollars, while core return on equity was 17.8 percent. Manulife said the gains reflected business growth in Asia and the U.S., improved insurance experience and a favorable impact from actuarial updates.

Asia drives operating momentum

Asia was the main growth engine. Segment core earnings increased 17 percent to 890 million Canadian dollars, supported by business growth, improved claims experience and actuarial changes. Strong sales in Hong Kong and Japan offset weaker activity in the Chinese Mainland, according to the company.

U.S. core earnings rose 5 percent to 356 million Canadian dollars. Favorable life insurance claims experience, business growth and tax items more than offset higher expected credit loss provisions and unfavorable lapse experience. Canada delivered a smaller 3 percent increase to 440 million Canadian dollars, as better individual insurance claims, higher Manulife Bank earnings and wider investment spreads were partly offset by weaker group insurance claims and higher credit provisions.

Global Wealth and Asset Management was a weak spot operationally. Core earnings fell 5 percent to 503 million Canadian dollars, while net outflows improved to 3.6 billion Canadian dollars from 6.2 billion Canadian dollars in the third quarter of 2025. The division benefited from higher fee income and the Manulife-Comvest business, but faced pressure from the Hong Kong eMPF transition, higher workforce costs, business investment and lower performance fees.

Market charges reduce reported profit

Net income attributed to shareholders fell 22 percent to 1.424 billion Canadian dollars from 1.799 billion Canadian dollars. Manulife attributed the decline primarily to a larger market-experience charge, including lower-than-expected returns on alternative long-duration assets such as private equity, real estate and farmland, as well as weaker public equity returns and losses from derivatives and hedge-accounting ineffectiveness. A net charge related to Vietnam also weighed on the result.

The gap between core earnings and reported profit is important for investors assessing the quarter. Core results show continued operating momentum, but the reported figures remain exposed to investment performance, actuarial assumptions and other items outside the core measure. Manulife said its annual actuarial review produced a net favorable impact, including a 128 million Canadian dollar decrease in pre-tax fulfillment cash flows.

Capital and next investor focus

Manulife said it returned 1.3 billion Canadian dollars to shareholders during the quarter and reported a LICAT capital ratio of 136 percent. Management also highlighted a five-year Microsoft agreement, expanded artificial-intelligence capabilities and new health and longevity partnerships as part of its longer-term strategy.

Manulife stock traded at 39.15 euros on Lang & Schwarz at 13:46:54 CET on Friday, November 6, 2026. Investors should distinguish the operating earnings trend from reported profit volatility when assessing the insurer's valuation and capital returns.

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The broader Canadian market backdrop remains relevant for financial stocks; current S&P/TSX Composite market reports offer that context.

More news and analyses on Manulife stock cover the insurer's earnings outlook and business developments.