Yahoo Finance

• Asia APE Sales: Increased 50% reflecting strong customer demand.

• Core EPS: Increased 3%, with a potential 9% increase after normalizing for specific charges.

• LICAT Ratio: Strong at 137%.

• Leverage Ratio: 23.9%, below the 25% medium-term target.

• APE Sales Growth: Increased 37% year-over-year.

• New Business Value: Grew 36%.

• New Business CSM: Increased 31%.

• Global WAM Net Flows: Positive $0.5 billion.

• P&C Reinsurance Charge: $35 million pretax related to California wildfires.

• ECL Provision: $46 million pretax charge due to economic conditions.

• Global WAM Core Earnings Growth: Over 20% growth for the sixth consecutive quarter.

• Asia Core Earnings Growth: 7% year-on-year.

• Global WAM Core EBITDA Margin: 28.4%, expanded 290 basis points from the prior year.

• Canada APE Sales Growth: Increased 9% year-over-year.

• U.S. APE Sales Growth: Increased 6%.

• Adjusted Book Value Per Share: Grew 12% to $36.66.

• Capital Returned to Shareholders: Over $1.2 billion during the quarter.

• Warning! GuruFocus has detected 6 Warning Sign with MFC.

Release Date: May 08, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Manulife Financial Corp (NYSE:MFC) reported strong growth in Asia with APE sales increasing by 50%, driven by high demand in markets like Hong Kong, Singapore, and Mainland China.

• The company maintained a robust balance sheet with a LICAT ratio of 137% and a leverage ratio of 23.9%, indicating strong financial resilience.

• Global WAM continued to deliver positive net flows of $0.5 billion despite market volatility, showcasing the resilience of its diversified business model.

• Core EPS increased by 3%, supported by share buybacks and strong performance in Asia and Global WAM businesses.

• Manulife Financial Corp (NYSE:MFC) successfully executed de-risking strategies, including reinsurance transactions, reducing its book value sensitivity to interest rate and equity market movements.

Negative Points

• The company faced a $35 million pretax charge in its P&C reinsurance business due to the California wildfires.

• A $46 million pretax ECL charge was recorded, driven by updates to reflect the deteriorating economic environment, impacting core earnings growth.

• The U.S. segment experienced a 25% decrease in core earnings due to unfavorable net claims experience, lower investment spreads, and increased ECL provisions.

• Manulife Financial Corp (NYSE:MFC) reported a non-core charge of $781 million from realized losses, mostly from fixed income asset disposals related to its LTC reinsurance transaction.

• The ALDA portfolio experienced negative returns, particularly in real estate and private equity, disrupting the trend of sequential improvement in ALDA experience.