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1. Company Snapshot

1.a. Company Description

Manulife Financial Corporation, together with its subsidiaries, provides financial products and services in Asia, Canada, the United States, and internationally.The company operates through Wealth and Asset Management Businesses; Insurance and Annuity Products; And Corporate and Other segments.The Wealth and Asset Management Businesses segment provides mutual funds and exchange-traded funds, group retirement and savings products, and institutional asset management services through agents and brokers affiliated with the company, securities brokerage firms, and financial advisors pension plan consultants and banks.


The Insurance and Annuity Products segment offers deposit and credit products; individual life, and individual and group long-term care insurance; and guaranteed and partially guaranteed annuity products through insurance agents, brokers, banks, financial planners, and direct marketing.The Corporate and Other segment is involved in property and casualty insurance and reinsurance businesses; and run-off reinsurance operations, including variable annuities, and accident and health.It also manages timberland and agricultural portfolios; and engages in insurance agency, portfolio and mutual fund management, mutual fund dealer, life, annuity, long-term care, and financial reinsurance; and fund management businesses.


Additionally, the company holds and manages provides investment management, counseling, advisory, and dealer services.Manulife Financial Corporation was incorporated in 1887 and is headquartered in Toronto, Canada.

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1.b. Last Insights on MFC

Manulife Financial's recent momentum is driven by its solid Asia business, expanding Wealth and Asset Management segment, and strong capital position. The company's $5 billion shelf filing and 7.2% dividend hike reflect steady earnings expectations and a commitment to shareholder returns. Its acquisition of 75% of Comvest Credit Partners enhances its private credit asset management capabilities. Analysts' consensus fair value estimate for the stock has increased to CA$49.13, citing solid recent earnings and operational strength. Morgan Stanley raised its price target to $48.

1.c. Company Highlights

2. Manulife Financial's Q3 2025 Earnings: A Strong Performance

Manulife Financial Corporation reported a robust financial performance in Q3 2025, with core EPS growing 16% year-over-year to a record level, driven by strong insurance new business performance across all segments. The company's net income was $1.8 billion, and core ROE stood at 18.1%. The adjusted book value per share increased 12% to $38.22. Actual EPS came out at $1.17, beating analyst estimates of $1.05. The company's results were supported by top-line momentum, with a core ROE of 18.1%, up 1.5 percentage points year-over-year.

Publication Date: Nov -14

📋 Highlights
  • Insurance New Business Growth:: All segments delivered 15%+ growth in new business CSM, with Asia up 18%.
  • Core EPS Expansion:: Core EPS rose 16% YoY, driven by record core earnings and 18.1% core ROE (1.5pt increase YoY).
  • Asia Core Earnings Surge:: Asia’s core earnings jumped 29% YoY, reaching a record high, supported by 18% CSM growth.
  • Balance Sheet Strength:: LICAT ratio at 138% (buffer of $26B) and leverage ratio of 22.7%, below the 25% target.
  • India JV Investment:: $140–150M capital injection over 5 years for the Mahindra joint venture, targeting long-term growth.

Segmental Performance

The Asia business delivered a 29% year-on-year increase in core earnings to a record level, driven by strong new business value metrics, up 7%, and CSM, up 18%. Global Wealth and Asset Management (WAM) reported a 19% growth in pre-tax core earnings. In Hong Kong, APE sales declined modestly, but value metrics like NBV and NB CSM performed strongly, up 10% and 12% year-over-year, respectively.

Balance Sheet Strength

The company's balance sheet remains strong, with a LICAT ratio of 138% and a leverage ratio of 22.7%, below the medium-term target of 25%. The LICAT ratio provides a $26 billion buffer above the supervisory target ratio, indicating ample financial flexibility to drive future growth.

Valuation and Outlook

With a Price-to-Book Ratio (P/B) of 1.66, the market is pricing in moderate growth expectations. Given the company's refreshed strategy, focusing on being the #1 choice for customers, and its strong financial performance, it is likely to achieve its 2027 financial targets, including a core ROE of 18% or higher. Analysts estimate next year's revenue growth at 21.1%, indicating a positive outlook.

Strategic Initiatives

The company is investing in AI to become a truly AI-powered organization, which is expected to drive growth and improve efficiency. The joint venture with Mahindra in India is expected to drive growth, with around $140 million to $150 million in capital to be injected over the first 5 years. The company's efficiency target of a sub-45% efficiency ratio remains in place, and investments in AI are expected to help mitigate expense growth.

Dividend and Shareholder Returns

The company returned over $1.3 billion of capital to shareholders through dividends and share buybacks, with a Dividend Yield of 3.56%. The company's strong financial performance and capital generation capabilities support its dividend payments and shareholder returns.

3. NewsRoom

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Manulife Financial Corporation Prices U.S. Public Offering of Senior Notes

Dec -02

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Manulife Donates HK$20 Million to Support Communities Affected by Tai Po Fire

Nov -28

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Manulife (TSX:MFC): Evaluating Valuation After Recent Share Price Gains

Nov -28

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Top Research Reports for Broadcom, Meta & Coca-Cola

Nov -26

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Manulife Expands Segregated Fund Lineup with Fidelity global funds

Nov -26

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Manulife Expands Segregated Fund Lineup with New Solutions Managed by BlackRock

Nov -26

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Financial 15 Split Corp. Completes Overnight Offering of $92,220,000

Nov -25

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Manulife Investments Announces Estimated Reinvested Capital Gains Distributions for Manulife Exchange Traded Funds and ETF Series of Manulife Funds

Nov -24

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.94%)

6. Segments

Global WAM (Wealth and Asset Management)

Expected Growth: 10.3%

Increasing demand for wealth and asset management services, particularly among high-net-worth individuals, will drive growth. Additionally, Manulife Financial Corporation’s strong brand reputation and expanding distribution channels will support the segment’s expansion.

Asia

Expected Growth: 7.3%

Manulife Asia's growth is driven by increasing demand for health and retirement products, a growing middle class, and expansion in emerging markets such as Vietnam and Indonesia.

Canada

Expected Growth: 5.1%

None

U.S.

Expected Growth: 5.3%

Strong demand for insurance products, increasing adoption of digital channels, and a growing population are driving growth in the U.S. segment of Manulife Financial Corporation.

Corporate and Other

Expected Growth: 6.1%

Manulife’s Corporate and Other operations are expected to grow driven by expanding wealth management and asset management businesses, increasing demand for insurance products, and strategic acquisitions. Additionally, the company’s digital transformation initiatives will enhance operational efficiency and improve customer engagement.

7. Detailed Products

Individual Insurance

Manulife offers a range of individual insurance products, including term life, whole life, and universal life insurance, to provide financial protection and security to individuals and their families.

Group Benefits

Manulife provides group benefits products, including life insurance, health insurance, and disability insurance, to employers to offer to their employees as part of their benefits package.

Group Retirement Solutions

Manulife offers group retirement solutions, including defined contribution pension plans and group registered retirement savings plans, to help employees save for retirement.

Wealth and Asset Management

Manulife's wealth and asset management division offers a range of investment products, including mutual funds, exchange-traded funds, and institutional investment solutions.

Reinsurance

Manulife's reinsurance division provides reinsurance solutions to other insurance companies, helping them to manage their risk and improve their capital efficiency.

Asia Wealth Management

Manulife's Asia wealth management division offers a range of wealth management products and services, including insurance, investments, and banking solutions.

Global Wealth and Asset Management

Manulife's global wealth and asset management division offers a range of investment products and services, including mutual funds, exchange-traded funds, and institutional investment solutions.

8. Manulife Financial Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Manulife Financial Corporation operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand reputation and diversified product offerings mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

Manulife Financial Corporation's customers have significant bargaining power due to the availability of numerous insurance providers and financial institutions. This forces the company to maintain competitive pricing and high-quality services to retain customers.

Bargaining Power Of Suppliers

Manulife Financial Corporation has a diversified supply chain, and its suppliers have limited bargaining power. The company's scale and financial resources also give it an upper hand in negotiations with suppliers.

Threat Of New Entrants

The insurance and financial services industry has significant barriers to entry, including regulatory hurdles and high capital requirements. This limits the threat of new entrants and allows established players like Manulife Financial Corporation to maintain their market position.

Intensity Of Rivalry

The insurance and financial services industry is highly competitive, with numerous players vying for market share. Manulife Financial Corporation faces intense competition from established players and new entrants, which drives innovation and pricing pressures.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.08%
Debt Cost 9.42%
Equity Weight 77.92%
Equity Cost 9.42%
WACC 9.42%
Leverage 28.34%

11. Quality Control: Manulife Financial Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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E-L Financial

A-Score: 7.8/10

Value: 6.7

Growth: 6.8

Quality: 8.1

Yield: 10.0

Momentum: 8.0

Volatility: 7.3

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Great-West Lifeco

A-Score: 7.1/10

Value: 5.7

Growth: 2.7

Quality: 6.9

Yield: 9.0

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

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Manulife

A-Score: 7.0/10

Value: 6.9

Growth: 3.9

Quality: 6.7

Yield: 9.0

Momentum: 6.0

Volatility: 9.7

1-Year Total Return ->

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MetLife

A-Score: 6.1/10

Value: 7.3

Growth: 4.7

Quality: 5.7

Yield: 6.0

Momentum: 4.0

Volatility: 8.7

1-Year Total Return ->

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Prudential Financial

A-Score: 5.5/10

Value: 5.7

Growth: 3.4

Quality: 4.9

Yield: 8.0

Momentum: 2.0

Volatility: 9.0

1-Year Total Return ->

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Aflac

A-Score: 5.3/10

Value: 3.0

Growth: 4.2

Quality: 6.7

Yield: 4.0

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

49.24$

Current Price

49.24$

Potential

-0.00%

Expected Cash-Flows