Manulife Financial (MFC) reported core earnings per share rose 14% year-to-date and the contractual service margin grew 16%, underscoring what CEO Phil Witherington called a "diversified" and "envious" portfolio at Scotiabank's 27th Annual Financials Summit on September 10, 2026.
The company has returned CAD 2.6 billion to shareholders so far this year through dividends and share buybacks, while maintaining an active 2.5% share buyback program. Manulife's capital position sits approximately CAD 10 billion above the upper end of its operating range, and its leverage ratio stands at 22% against a medium-term target of 25%.
Despite the strong top-line metrics, Witherington cautioned that progress toward the company's 18%+ core ROE target for 2027 has been slower than planned. He cited weaker-than-expected long-term disability experience in Canada, a softer Canadian dollar relative to the U.S. dollar swelling the capital denominator, and variability in U.S. life experience.
Asia was the standout performer. Earnings in the region rose more than 20% year-to-date, beating the mid-teens growth expectation, driven by sharp gains in key markets. In Japan, new business doubled over the past year. In Singapore, new business CSM growth reached close to 40% in the second quarter. In Hong Kong — which overtook Switzerland as the world's largest cross-border wealth hub — mainland Chinese visitors accounted for about 25% of 2026 sales.
"Just being present in Asia is not the key to success. It is necessary to differentiate ourselves and actively unlock the opportunity that exists," Witherington said.
In North America, Manulife's U.S. business, John Hancock, recorded eight straight quarters of double-digit new business growth. Global Wealth and Asset Management posted 6% year-on-year earnings growth in the second quarter following the eMPF transition impact in Hong Kong, with an EBITDA margin above 30% and institutional net flows positive in 20 of the past 21 quarters.
Manulife also highlighted several strategic moves. It entered India's life insurance market through a joint venture with Mahindra, completed its largest acquisition in a decade with Comvest Credit Partners — which contributed approximately CAD 30 million to core earnings in Q2 — and closed a private credit fund with CAD 5.4 billion in commitments. A third long-term care transaction with Munich Re, structured on biometric risk only, involved about CAD 30 million of forfeited earnings.
Alternative long-duration assets in the ALDA portfolio returned about 6% year-to-date, below the long-term target range of 9% to 9.5%. The company's LICAT ratio stood at 136%.
Witherington summarized the company's positioning: "Our portfolio is diversified, and I do believe it is an envious portfolio. We have the growth in Asia and global GWAM, but we also have the stability as well as growth opportunity here in North America."
