Manulife's Third-Quarter Core Earnings Rise 4% to C$2.1 Billion and Core EPS Hits a Record C$1.24, While Reported Net Income Falls to C$1.4 Billion on Market Losses

Manulife Financial Corporation has published its results for the third quarter of 2026, the three months ended September 30. The press release is dated November 4, 2026, with an earnings call on November 5, and it was furnished to the U.S. Securities and Exchange Commission on Form 6-K. Manulife reports in Canadian dollars, with some segments shown in U.S. dollars as noted. Percentages and differences that are not in the release are calculated here and labelled. Manulife's own percentage changes for core measures are stated at constant exchange rates, so they can differ slightly from a simple comparison of the dollar figures.

Core earnings and reported earnings

The headline is a divergence. Core earnings, Manulife's preferred measure of underlying performance, were C$2,125 million, up 4% at constant exchange rates from C$2,035 million a year earlier. Core earnings per share (core EPS) were C$1.24 against C$1.16, up 6% by the release's measure. Core return on equity was 17.8% against 18.1%. In the release, chief executive Phil Witherington described the quarter as strong and said it achieved record core EPS and a 17.8% core return on equity.

Reported results moved the other way. Net income attributed to shareholders was C$1,424 million, against C$1,799 million in the third quarter of 2025. The release describes that as down 22%, while a direct comparison of the two dollar amounts gives about 21%, calculated here; the difference is probably the currency basis. Earnings per share were C$0.82 against C$1.02, and return on equity (the reported measure) was 11.8% against 16.0%.

Why the two measures diverged

Core earnings exclude items that Manulife regards as outside underlying performance, and the release lists the main ones. Market experience produced a net loss of C$388 million after tax, against a loss of only C$2 million a year earlier. The release attributes it to lower returns on alternative long-duration assets such as private equity, real estate and farmland, lower public equity returns, and derivative and hedge accounting losses. The annual review of actuarial assumptions had a net favourable effect on the balance sheet, with a C$128 million pre-tax decrease in fulfilment cash flows, but the updates that flow directly through income were a C$175 million post-tax charge. There was also a net charge in Vietnam, from a partial impairment of a bancassurance asset partly offset by a gain on the sale of a Vietnamese insurance subsidiary. Other items excluded from core earnings included a C$120 million charge for reinsurance, tax-related and other items, and C$18 million of amortisation of acquisition-related intangibles.

The release says core earnings growth was driven by Asia and the U.S., higher revenue in global wealth and asset management (Global WAM), and net positive actuarial updates in the quarter. These were partly offset by higher expected credit loss provisions and the transition to Hong Kong's eMPF platform for mandatory pension fund administration.

Segments

Asia produced core earnings of US$635 million against US$550 million, up 17% by the release's measure, while Asia net income attributed to shareholders was US$510 million against US$649 million. Canada's core earnings were C$440 million against C$428 million, up 3%, with net income of C$205 million against C$449 million. The U.S. segment earned US$254 million against US$241 million, up 5%, and its net income was US$137 million against a loss of US$54 million a year earlier. Global WAM's core earnings were C$503 million against C$525 million, down 5%, with net income of C$463 million against C$523 million. Corporate and Other core earnings were a loss of C$64 million against a loss of C$9 million.

Because the segments are shown in different currencies, this article does not add them together. The pattern is clear, though: Asia and the U.S. grew, Canada edged up and Global WAM slipped.

New business

New business measures were flat. APE sales, which standardise premiums across product types, were C$2,626 million, essentially unchanged from C$2,576 million. New business CSM, the amount of future profit added by new sales, was C$957 million, down 2% from C$966 million, and new business value was C$907 million against C$906 million. Global WAM net outflows were C$3.6 billion, compared with C$6.2 billion in the third quarter of 2025, so outflows narrowed.

The contractual service margin is the stock of unearned profit that a life insurer expects to recognise as it provides cover. Manulife's CSM net of non-controlling interests was C$27,318 million at September 30, 2026, up from C$24,969 million at December 31, 2025, an increase of about 9% calculated here. Total CSM was C$29,070 million, and post-tax CSM net of non-controlling interests was C$22,701 million.

Capital and shareholders

The LICAT ratio, the Canadian regulatory measure of life insurers' capital strength, was 136%. The financial leverage ratio was 23.0% against 22.7%. Book value per common share was C$28.06 against C$26.07, and adjusted book value per share was C$41.78 against C$38.22. Manulife returned C$1.3 billion to shareholders in the quarter. The release does not break out common dividends or share buybacks in the portions used here, and it lists preferred share dividends and other equity distributions of C$59 million for the quarter and C$220 million year to date. Chief financial officer Colin Simpson said the company remained disciplined in capital deployment.

What the release does not tell us

The release gives no guidance for future quarters, and this article does not forecast. It also does not explain how much of the market experience loss is likely to reverse. The release states the LICAT ratio but not the regulatory minimum it is measured against, so this article makes no judgement on capital adequacy. For investors, the quarter shows an insurer whose underlying earnings and CSM grew while reported profit was hit by investment valuations. The figures are the company's own, and readers should read the full release and consult a licensed adviser before making financial decisions.