MFC Beats Q4 Earnings Estimates, Unveils 10.2% Dividend Hike

Manulife Financial Corporation MFC delivered fourth-quarter 2025 core earnings of 80 cents per share, which beat the Zacks Consensus Estimate by 5.2%. The bottom line improved 8.1% year over year. 

Core earnings were $1.4 billion (C$1.9 billion). The results reflected continued business growth in Asia, Global WAM, and Canada, and the net impact of 2025 updates to actuarial methods and assumptions. It was partially offset by unfavorable life insurance claims experience in the United States in the reported quarter, lower investment spreads, and the impact of the eMPF transition in Hong Kong.

New business value (NBV) in the reported quarter was $626 million (C$874 million), up 4.1% year over year, reflecting a more favorable business mix and margin improvements. New business contractual service margin (CSM) of $731 million (C$1,020 million).

Annualized premium equivalent (APE) sales decreased 1% year over year.

Wealth and asset management assets under management and administration were $799.7 billion (C$1,115 billion), up 13% year over year. The Wealth and Asset Management business generated net outflows of $6.8 billion (C$9.5 billion) against net inflows of $1.2 billion in the year-ago quarter, primarily due to Retirement net outflows and Retail net outflows.

Core return on equity, measuring the company’s profitability, expanded 60 basis points year over year to 17.1%. Life Insurance Capital Adequacy Test ratio was 136% as of Dec. 31, 2025. Adjusted book value per common share was $38.27, up 5.5% year over year.

Segmental Performance

Global Wealth and Asset Management’s core earnings came in at $351 million (C$490 million), up 2.3% year over year, driven by higher net fee income from favorable market impacts over the past 12 months and the acquisition of Comvest, and continued expense discipline, partially offset by the impact of the eMPF transition in Hong Kong and lower performance fees.

Asia division’s core earnings totaled $563 million (C$785 million), up 65% year over year, reflecting continued business growth and the net impact of 2025 updates to actuarial methods and assumptions. 

APE sales decreased 3% year over year, as growth in Japan and Asia Other was more than offset by lower sales in Hong Kong. New business CSM and NBV increased 19% and 10%, respectively, driven by the business mix, partially offset by lower sales volumes. NBV margin improved to 41.2%.

Manulife Financial’s Canada division core earnings of $296 million (C$413 million) were up 6.4% year over year, driven by favorable insurance experience in Individual Insurance, higher investment spreads, business growth in Group Insurance, and the net impact of 2025 updates to actuarial methods and assumptions, partially offset by less favorable insurance experience in Group Insurance.

APE sales and NBV increased 2% and 4%, respectively, reflecting growth in Individual Insurance and Annuities. It was partially offset by lower sales in Group Insurance. New business CSM increased 16%, driven by higher sales volumes and margins in Individual Insurance. 
The U.S. division reported core earnings of $228 million (C$319 million), up 8.5% year over year. 

Sales momentum continued as APE sales and NBV increased 9% and 8%, respectively, reflecting broad-based demand for a suite of products. New business CSM grew 34%, driven by higher sales volumes and product mix.

Dividend Update

The board of directors approved a 10.2% hike in its quarterly dividend to 48.5 cents. Shareholders of record as of Feb. 25, 2026, will receive the dividend on and after March 19, 2026.

MFC’s Zacks Rank

MFC currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Assurant, Inc. AIZ reported fourth-quarter 2025 net operating income of $5.61 per share, which beat the Zacks Consensus Estimate by 1.08%. The bottom line increased 17% year over year. Total revenues increased 7.5% year over year to $3.3 billion. The top line beat the Zacks Consensus Estimate by 2.7%.

Adjusted EBITDA, excluding reportable catastrophes, increased 3% to $445.9 million, due to growth within both Global Housing and Global Lifestyle. Total benefits, loss and expenses increased 7.4% to $3.1 billion. The figure was higher than our estimate of $2.8 billion.

Markel Group Inc. MKL reported fourth-quarter 2025 net operating earnings per share of $34.45, which beat the Zacks Consensus Estimate by 34.7%. Moreover, the bottom line increased 68% year over year. MKL reported net income of $48.75 per share. Total operating revenues of $4 billion rose 7.6% year over year.

Earned premiums increased 7.6% year over year to $2.2 billion in the quarter. Net investment income increased 5.7% year over year to $257.6 million in the fourth quarter. The figure was higher than the Zacks Consensus Estimate of $240 million. Total operating expenses of Markel increased 5.5% year over year to $3.4 billion. MKL’s combined ratio improved 300 bps year over year to 92.7 in the reported quarter.

Principal Financial Group, Inc.’s PFG fourth-quarter 2025 operating net income of $2.19 per share missed the Zacks Consensus Estimate by 1.8%. The bottom line increased 13% year over year. Total revenues jumped 9.2% year over year to $4.4 billion due to increased premiums and other considerations, fees, and other revenues and net investment income.

Total expenses increased 8.2% year over year to $3.9 billion. As of Dec. 31, 2025, Principal Financial’s assets under management amounted to $781 billion, which is included in the assets under administration of $1.8 trillion.

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