Manulife Financial Corporation · TSX:MFC
Manulife Financial — Q4 2025 Earnings Presentation
47 slides from Manulife Financial's earnings presentation, Feb 12, 2026
Slide 1: Fourth Quarter and Full Year 2025 Financial & Operating Results
Fourth Quarter and Full Year 2025 Financial & Operating Results February 12, 2026
Slide 2: Caution regarding forward-looking statements
from those expressed or implied in such statements. Important factors and trade disputes; acquisitions and our ability to complete Caution regarding that could cause actual results to differ materially from expectations include but are not limited to: general business and economic acquisitions inclu
Slide 3: Conference call participants
Conference call participants Phil Witherington Trevor Kreel President & Chief Executive Officer. Chief Investment Officer Stephanie Fadous Paul Lorentz Chief Actuary President & CEO, Manulife Wealth and Asset Management Steve Finch Colin Simpson President & CEO, Manulife Asia Chief Financial Officer
Slide 4: Agenda
Agenda • Overview and strategic update Phil Witherington, President & Chief Executive Officer • Financial and operating results Colin Simpson, Chief Financial Officer • Question & Answer session 4
Slide 5: Overview and strategic update
DRAFT Overview and strategic update Phil Witherington President & Chief Executive Officer 5
Slide 6: Delivered strong financial and operating results in 2025
Delivered strong financial and operating results in 2025 Growth Profitability Balance sheet APE sales1 Core EPS1,3 Adjusted book value per share3 ▲14% ▲8% ▲6% New business CSM1 EPS1 Book value per share ▲28% ▲6% ▲1% New business value1 Core ROE3 Financial leverage ratio3 ▲18% 16.5% 23.9% Global WAM
Slide 7: Executing against our new and elevated strategic priorities
Executing against our new and elevated strategic priorities to deliver sustainable long-term growth Winning Team and Culture Diversified Business Portfolio Championing a customer-first culture and investing in next Driving a balanced, diversified business model that builds on generation skills our s
Slide 8: Driving positive customer outcomes, while making it easier for stakeholders to engage with us
Driving positive customer outcomes, while making it easier for stakeholders to engage with us Empowering Customer Health, Wealth, and Superior Distribution Longevity Becoming the most trusted partner in health, wealth and Making it easier for customers to buy, advisors to sell, and financial well-be
Slide 9: Strategically investing in high-return AI initiatives
Our core focus areas are deploying AI at scale and will continue driving value Strategically investing Operational Efficiency Improved Outcomes Enabling Growth in high-return AI Virtual Assistants Underwriting initiatives to become an Conversational AI solutions that answer questions and AI solution
Slide 10: Financial and operating results
Financial and operating results Colin Simpson Chief Financial Officer 10
Slide 11: Solid new business performance with strong growth in new business CSM
Solid new business performance with strong growth in new business CSM APE sales1 New business CSM2 New business value1 Global WAM net flows1 (C$ millions) (C$ millions) (C$ millions) (C$ billions) U.S. Canada Asia U.S. Canada Asia U.S. Canada Asia Retirement Institutional Retail -1% +21% +8% 2,248 2
Slide 12: Continued strong business growth resulting in a higher insurance service result
Continued strong business growth resulting in a higher insurance service result Drivers of earnings1 (C$ millions) 4Q24 4Q25 Risk adjustment release 205 221 4Q25 core earnings increased 5%2 from the prior year quarter: CSM recognized for service provided 521 628 Expected earnings on short-term insur
Slide 13: Solid core EPS growth of 9%
Solid core EPS growth of 9%1, while net income impacted by unfavourable market experience Core earnings1 Earnings for the fourth quarter 2025 (C$ millions) (C$ millions, except per share amounts) 4Q25 4Q25 +5% Post-tax Per share 1,993 Core earnings1 1,993 1.12 1,907 Items excluded from core earnings
Slide 14: Asia: Continued strong core earnings growth
Asia: Continued strong core earnings growth APE sales1 New business CSM2 New business value1 Core earnings2 Net income (US$ millions) (US$ millions) (US$ millions) (US$ millions) (US$ millions) Asia Other Asia Other Asia Other Asia Other Hong Kong Japan Japan Japan Japan Regional Office Hong Kong Ho
Slide 15: Global WAM: Continued core earnings growth supported by AUM growth and margin expansion
Global WAM: Continued core earnings growth supported by AUM growth and margin expansion Net flows by Average AUMA1 Core EBITDA margin2 Core earnings3 Net income business line1 (C$ billions) (%) (C$ millions) (C$ millions) (C$ billions) Retirement Retail Institutional +10% +60 bps +7% 1.2 1,115 28.6
Slide 16: Canada: Solid growth in new business metrics and core earnings
Canada: Solid growth in new business metrics and core earnings APE sales1 New business CSM2 New business value1 Core earnings2 Net income (C$ millions) (C$ millions) (C$ millions) (C$ millions) (C$ millions) Individual Insurance Manulife Bank Group Insurance Annuities Annuities Insurance +4% +2% +6%
Slide 17: U.S.: Strong new business results; core earnings impacted by lower investment spreads
U.S.: Strong new business results; core earnings impacted by lower investment spreads and net unfavourable insurance experience APE sales1 New business CSM2 New business value1 Core earnings2 Net income (US$ millions) (US$ millions) (US$ millions) (US$ millions) (US$ millions) U.S. Annuities U.S. In
Slide 18: Strong cash generation while continuing to return capital to shareholders
Strong cash generation while continuing to return capital to shareholders Remittances1 Capital returned to shareholders Dividend per common share (C$ billions) (C$ billions) (C$) Share buyback Common share dividends +10% CAGR +10% 7.0 6.4 6.1 1.94 1.76 5.5 5.4 1.60 1.46 4.3 3.2 2.4 1.6 2.7 2.8 3.0 2
Slide 19: Maintained robust balance sheet, providing financial flexibility
Maintained robust balance sheet, providing financial flexibility Adjusted book value per common share1 Capital metrics Financial leverage ratio2 (C$) (%) CSM balance per common share1 Capital over Book value per common share supervisory target LICAT ratio (C$ billions) (%) +6% 137 138 136 Medium-ter
Slide 20: Making strong progress on delivering targets
Making strong progress on delivering targets 2023 2024 2025 2027 targets Core ROE1 15.9% 16.2% 16.5% 18%+ Remittances2 $5.5B $7.0B $6.4B $22B+ cumulative Medium-term targets New business CSM growth3 12% 32% 28% 15% CSM balance growth3 21% 3% 16% 8-10% Core EPS growth1,4 17% 10% 8% 10-12% Expense eff
Slide 21: Question & Answer session
(i) Manulife Question & Answer session
Slide 22: Appendix
Appendix • Financial KPI summary and other targets • Insurance experience, ECL and OCI • Changes in CSM • Full year financial results • Global WAM investment performance • Invested assets • Sensitivities • Non-GAAP and other financial measures • Footnotes 22
Slide 23: 4Q25 and 2025 financial KPI summary
4Q25 and 2025 financial KPI summary (C$ millions, unless noted) 4Q24 4Q25 Change 2024 2025 Change APE sales1 (C$ billions) $2.2 $2.2 ▼ 1% $8.4 $9.7 ▲ 14% New business CSM2 $842 $1,020 ▲ 21% $2,887 $3,775 ▲ 28% New business value1 $808 $874 ▲ 8% $2,946 $3,533 ▲ 18% Growth CSM balance growth2 3% 16% ▲
Slide 24: On track to achieve our ambitious core ROE objectives
On track to achieve our ambitious core ROE1 objectives Total company Asia Canada U.S. Global WAM (%) (%) (%) (%) (%) 28 26 25 21 18 17 15.9 16.2 16.5 16 16 15 15 14 10 2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024 2025 2023 2024 2025 24 Note: All footnotes are on slide 43.
Slide 25: Performance against other 2025 and 2027 targets
Performance against other 2025 and 2027 targets 2024 2025 2025 targets Core earnings contribution from highest potential 68% 75% 75% businesses1,2 Core earnings contribution from long-term care 10% 9% <15% insurance and variable annuities businesses2 Straight-through-processing (“STP”)3 89% 90% 88%
Slide 26: Insurance experience impacts on core earnings and CSM
Insurance experience impacts on core earnings and CSM 4Q25 insurance experience gains/(losses) (C$ millions, pre-tax) • Insurance experience is reflected in core earnings Core earnings CSM (net of NCI) Total and in the CSM – the impacts need to be impact1 impact Impact considered together Asia 13 (4
Slide 27: Change in ECL for 4Q25 was a modest release
Change in ECL for 4Q25 was a modest release Change in ECL, (charges)/recoveries Change in ECL for 4Q25, (charges)/recoveries (C$ millions, pre-tax) (C$ millions, pre-tax) Stage 1 Stage 2 Stage 3 Total Net transfers between stages (3) 3 - - 44 Net new originations or purchases (13) 1 13 1 12 Changes
Slide 28: Net losses in other comprehensive income driven by currency translation
Net losses in other comprehensive income driven by currency translation 4Q25 total comprehensive income (C$ millions) Net income attributed to shareholders 1,499 Net loss in other comprehensive income driven by: Other comprehensive income (OCI) • The currency translation of foreign operations (due t
Slide 29: Generated strong organic growth in CSM of 10%
Generated strong organic growth in CSM of 10%1 2025 changes in CSM (C$ millions, pre-tax) 963 3,775 • Strong growth of 10% in organic CSM during 20251 585 24,969 was supported by contributions from new business 116 CSM, which increased 28% year-over-year (2,597) • Inorganic CSM movement primarily re
Slide 30: Strong new business performance with new business CSM growth exceeding 20%
Strong new business performance with new business CSM growth exceeding 20% across all insurance segments in 2025 APE sales1 New business CSM2 New business value1 Global WAM net flows1 (C$ millions) (C$ millions) (C$ millions) (C$ billions) U.S. Canada Asia U.S. Canada Asia U.S. Canada Asia Retiremen
Slide 31: Continued strong business growth
Continued strong business growth Drivers of earnings1 (C$ millions) 2024 2025 Risk adjustment release 857 850 2025 core earnings increased 3%2 from the prior year: CSM recognized for service provided 2,048 2,299 • Continued business growth in Asia and Canada as well as the net Expected earnings on s
Slide 32: Solid core EPS growth of 8%
Solid core EPS growth of 8%1, while net income dampened by unfavourable market experience Core earnings1 Earnings for the full year 2025 (C$ millions) (C$ millions, except per share amounts) 2025 2025 +3% Post-tax Per share 7,521 Core earnings1 7,521 4.21 7,182 Items excluded from core earnings: Rea
Slide 33: Asia: Strong top-line and core earnings growth
Asia: Strong top-line and core earnings growth APE sales1 New business CSM2 New business value1 Core earnings2 Net income (US$ millions) (US$ millions) (US$ millions) (US$ millions) (US$ millions) Hong Kong International HNW Singapore Other Emerging Markets Japan Mainland China Vietnam Regional Offi
Slide 34: Global WAM: Continued margin expansion and core earnings growth
Global WAM: Continued margin expansion and core earnings growth supported by strong growth in AUM Net flows by Average AUMA1 Core EBITDA margin2 Core earnings3 Net income business line1 (C$ billions) (%) (C$ millions) (C$ millions) (C$ billions) Retirement Retail +260 bps Institutional +11% +14% 1,0
Slide 35: Canada: Solid core earnings growth with strong new business CSM growth
Canada: Solid core earnings growth with strong new business CSM growth APE sales1 New business CSM2 New business value1 Core earnings2 Net income (C$ millions) (C$ millions) (C$ millions) (C$ millions) (C$ millions) Individual Insurance Manulife Bank Group Insurance Annuities Annuities +7% Insurance
Slide 36: U.S.: Strong new business results; core earnings impacted by unfavourable insurance experience
U.S.: Strong new business results; core earnings impacted by unfavourable insurance experience and lower investment spreads APE sales1 New business CSM2 New business value1 Core earnings2 Net income (US$ millions) (US$ millions) (US$ millions) (US$ millions) (US$ millions) U.S. Annuities U.S. Insura
Slide 37: Global WAM: Solid long-term investment performance
Global WAM: Solid long-term investment performance Public asset class 3-year 5-year 10-year % of assets above peer 0-50% 51-75% 76-100% % of total Equity 51% 68% 73% 75% • Our strategies are performing in line with expectations given Fixed income 22% 80% 76% 80% the current market conditions and our
Slide 38: Diversified high-quality asset mix avoids risk concentrations
Diversified high-quality asset mix avoids risk concentrations Total invested assets (C$459.9 billion, carrying values as of December 31, 2025) Fixed Income & Other Alternative Long-Duration Assets (“ALDA”) Public Equities High-quality and diverse asset mix • 96% of debt securities and private placem
Slide 39: Interest rate-related sensitivities remain within our risk appetite limits
Interest rate-related sensitivities remain within our risk appetite limits 3Q25 4Q25 Potential impacts1 of an immediate parallel change in “interest rates”: (C$ millions, post-tax except CSM) -50bp +50bp -50bp +50bp CSM 100 (200) 200 (300) Net income attributed to shareholders 100 (100) 100 (100) Ot
Slide 40: Potential immediate impact on CSM and total comprehensive income from a 10% change in public equity returns
Potential immediate impact1 on CSM and total comprehensive income arising from a 10% change in public equity returns 4Q25 (C$ millions) -10% +10% Other Total Other Total CSM Net income comprehensive comprehensive CSM Net income comprehensive comprehensive (pre-tax) (post-tax) income income (pre-tax)
Slide 41: Non-GAAP and other financial measures
Non-GAAP and other Non-GAAP ratios include core return on common shareholders’ equity (“core ROE”); diluted core earnings per common share For more information on the non-GAAP and other financial measures in this document, please see section “Non-GAAP and (“core EPS”); financial leverage ratio; adju
Slide 42: Footnotes
Footnotes Slide Footnote 1 Percentage changes in diluted earnings per common share (“EPS”), core EPS, and new business CSM net of non-controlling interests (“NCI”) stated on a constant exchange rate basis are non-GAAP ratios. Percentage changes in annualized premium equivalent (“APE”) sales, and new
Slide 43: Footnotes
Footnotes Slide Footnote 1 Percentage changes in APE sales and NBV are stated on a constant exchange rate basis. For more information, see “Non-GAAP and Other Financial Measures” above. 14 2 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measur
Slide 44: Footnotes
Footnotes Slide Footnote 1 Percentage changes in APE sales, NBV, and average AUMA are stated on a constant exchange rate basis. For more information, see “Non-GAAP and Other Financial Measures” above. 2 Percentage changes in new business CSM net of NCI, CSM balance growth net of NCI (year-over-year
Slide 45: Footnotes
Footnotes Slide Footnote 1 Core earnings is a non-GAAP financial measure. For more information, see “Non-GAAP and Other Financial Measures” above. Core EPS is a non-GAAP ratio. Percentage changes are stated on a constant exchange rate basis. 32 2 Includes the amortization of intangible assets acquir
Slide 46: Footnotes
Footnotes Slide Footnote 38 1 Includes government-insured mortgages (C$8.7 billion or 15% of total mortgages as at December 31, 2025). 1 All estimated sensitivities are approximate and based on a single parameter. No simple formula can accurately estimate ultimate future impact. Refer to the “Intere
Slide 47: Manulife
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