Manulife Financial Corporation has reported its earnings for the first quarter of 2025, revealing a slight dip in core earnings. The company posted core earnings of CA$1.8 billion, which is about US$1.3 billion. This marks a 1% decrease compared to the same period last year when adjusted for currency fluctuations.
The net income attributed to shareholders fell significantly, dropping to CA$500 million, down CA$400 million from the previous year. This decline was influenced by several factors, including a CA$45 million provision for expected credit losses and another CA$43 million provision related to the California wildfires. In contrast, the first quarter of 2024 benefited from a net release of credit loss provisions.
Manulife’s performance varied across different segments. While the Asia and Global Wealth and Asset Management (Global WAM) divisions showed growth, the U.S. operations and corporate functions experienced declines. Roy Gori, Manulife’s president and CEO, expressed pride in the company’s performance despite the challenging environment, highlighting the strength of their business model.
The latest results come after a record year in 2024, where Manulife achieved core earnings of CA$7.2 billion, an 8% increase from the previous year. This growth was largely driven by strong performance in Asia and Global WAM.
In the first quarter of 2025, core earnings in Asia rose by 7%, benefiting from increased business volumes and favorable claims experiences, though this was somewhat offset by higher provisions for credit losses. Global WAM saw a more impressive 24% increase in core earnings, thanks to higher net fee income and favorable market conditions.
In Canada, core earnings increased by 3%, supported by growth in Group Insurance. However, earnings from Manulife Bank and higher credit loss provisions put pressure on overall growth. The U.S. operations faced a 25% decline in core earnings, attributed to lower investment spreads and higher credit loss provisions.
The company’s earnings per share were reported at CA$0.25, down 48% from the first quarter of 2024. However, core earnings per share rose by 3% to CA$0.99. The return on equity stood at 3.9%, while core return on equity was 15.6%.
Manulife also reported record levels in insurance new business metrics. Annualized premium equivalent sales surged by 37%, while new business contractual service margin increased by 31%. Asia led this growth with a notable 50% rise in sales.
In Canada, APE sales rose by 9% across all business lines, while the U.S. recorded a 6% increase in APE sales. Global WAM reported net inflows of CA$500 million for the quarter, a decrease from CA$6.7 billion in the same quarter last year.
As Manulife moves forward, the company is focusing on its growth in Asia and wealth management sectors, which have shown resilience and promise in the face of economic challenges.