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01/10 17:49
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call summary reveals strong financial performance with a 51% increase in U.S. APE sales and a consistent 20% rise in new business CSM. The Q&A highlights strategic expansion into India and positive growth in Asia, despite some uncertainties about product specifics. The company's cautious approach to private credit and proactive cost management in response to regulatory changes are prudent. Overall, the positive financial metrics and strategic growth initiatives suggest a likely positive stock price movement over the next two weeks.
Insurance new business performance Growth of 15% or greater in new business CSM across all insurance segments, indicating strong future earnings potential.
Global WAM net outflows Net outflows of $6.2 billion, attributed to headwinds in North American Retail and U.S. retirement channels, including higher participant withdrawals due to elevated markets.
Core EPS Grew 16% year-over-year, supported by record core earnings and strong business growth in Asia, Global WAM, and Canada segments.
Core ROE Achieved 18.1%, a 1.5 percentage point increase year-over-year, demonstrating progress toward the 2027 target of 18%+.
LICAT ratio Maintained at 138%, reflecting a strong balance sheet and financial stability.
Adjusted book value per share Increased 12% year-over-year to $38.22, despite returning nearly $4 billion of capital to shareholders year-to-date.
Asia core earnings Increased 29% year-over-year, driven by business growth, favorable basis changes, and improved insurance experience.
Global WAM core earnings Increased 19% year-over-year pre-tax, supported by higher average AUMA, performance fees, and expense discipline.
Canada APE sales Increased 9% year-over-year, driven by higher par sales in individual insurance.
U.S. APE sales Increased 51% year-over-year, driven by broad-based demand for products.
New business CSM Increased over 20% year-over-year for the fifth consecutive quarter, highlighting diversified franchise strength.
Net income Reported at $1.8 billion, reflecting neutral market experience with gains in public equity offset by losses in ALDA portfolio.
Insurance new business performance: Each insurance segment delivered growth of 15% or greater in new business CSM, indicating strong future earnings potential.
AI-powered organization: Manulife plans to leverage its early leadership in AI to enhance product, digital innovation, and partnerships, aiming to become the most trusted partner for customers' health, wealth, and financial well-being.
India insurance market entry: Manulife has reached an agreement with Mahindra to form a joint venture to enter the India insurance market, subject to regulatory approvals.
Asia and Global WAM focus: Manulife continues to prioritize growth in Asia and Global WAM, which contributed 76% of core earnings year-to-date, exceeding the 2025 target of 75%.
Core earnings growth: Core EPS grew 16% year-over-year, supported by record core earnings and strong business growth in Asia, Global WAM, and Canada.
Core ROE: Achieved 18.1% core ROE in Q3 2025, demonstrating progress toward the 2027 target of 18%+.
Expense management: Global WAM achieved positive operating leverage with a core EBITDA margin expansion of 310 basis points year-over-year to 30.9%.
Refreshed enterprise strategy: Manulife introduced new strategic priorities to drive sustainable growth, focusing on a diversified portfolio, AI leadership, and enhanced customer trust.
Capital return to shareholders: Returned nearly $4 billion to shareholders year-to-date through dividends and share buybacks, with a 12% year-over-year increase in adjusted book value per share.
Global WAM Net Outflows: Global WAM experienced net outflows of $6.2 billion, attributed to headwinds in North American Retail and U.S. retirement channels. This was due to continued pressure in intermediary and wealth channels and elevated participant withdrawals in the U.S. retirement business.
ALDA Portfolio Performance: The ALDA portfolio faced a $289 million charge due to lower-than-expected returns on private equity, commercial real estate investments, and timber assets, reflecting a decline in commodity prices.
U.S. Insurance Claims Experience: Unfavorable claims experience in the U.S. insurance segment, with claims severity remaining elevated on a small number of policies, negatively impacted core earnings.
Regulatory Approvals for India Joint Venture: The joint venture with Mahindra to enter the India insurance market is subject to regulatory approvals, which could delay or impact the execution of this strategic initiative.
Market-Driven Withdrawals in U.S. Retirement Business: Elevated market levels led to higher participant withdrawals in the U.S. retirement business, impacting net flows.
Economic Sensitivity in ALDA Investments: The ALDA portfolio's performance is sensitive to economic conditions, particularly commodity prices, which have recently declined, affecting returns.
Execution Risks in AI Strategy: The company aims to leverage AI to become an AI-powered organization, but successful execution will require significant investment and alignment of resources.
Revenue Expectations: The company remains confident in achieving its core ROE target of 18% plus by 2027, supported by strong core earnings growth and a diversified portfolio.
Growth Expectations: Manulife is focused on sustainable growth, with a refreshed strategy emphasizing Asia and Global WAM as critical growth areas. The company expects to leverage its leadership in AI and digital innovation to enhance customer engagement and operational efficiency.
Market Trends: The company is optimistic about exceptional growth opportunities in Asia and the global wealth and asset management (WAM) sectors. It has entered a joint venture with Mahindra to penetrate the India insurance market, subject to regulatory approvals.
Capital Expenditures: Manulife plans deliberate investments to strengthen its leadership position in its home market and maintain a scaled presence in the U.S., the largest insurance market globally.
Business Segment Performance: Asia and Global WAM are expected to remain high-potential businesses, contributing significantly to core earnings. The company anticipates continued growth in these segments, supported by disciplined expense management and proactive strategies.
Dividend Payments: Manulife returned nearly $4 billion of capital to shareholders year-to-date through dividends and share buybacks. This includes over $1.3 billion of capital returned in the third quarter alone.
Future Dividend Plans: Manulife expects remittances for 2025 to be approximately $6 billion, contributing to their cumulative 2027 target of at least $22 billion.
Share Buybacks: Manulife has been actively repurchasing shares, contributing to the return of nearly $4 billion of capital to shareholders year-to-date. This includes share buybacks conducted in the third quarter.
The earnings call summary reveals strong financial performance with a 51% increase in U.S. APE sales and a consistent 20% rise in new business CSM. The Q&A highlights strategic expansion into India and positive growth in Asia, despite some uncertainties about product specifics. The company's cautious approach to private credit and proactive cost management in response to regulatory changes are prudent. Overall, the positive financial metrics and strategic growth initiatives suggest a likely positive stock price movement over the next two weeks.
The earnings call highlights strong financial performance with significant increases in AP sales, new business value, and adjusted book value per share. Despite slight core earnings decrease due to charges, the company's financial health remains robust with a strong LICAT ratio and financial leverage. The new buyback program and capital returns further boost shareholder value. The Q&A section supports the positive outlook, with optimism in Asia's growth and commitment to share buybacks. Overall, these factors suggest a positive stock price movement over the next two weeks.
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