Manulife’s core earnings fell 1% year on year to $1.8 billion in the first quarter of 2025, according to the insurer’s quarterly report released Wednesday.
The slight decrease in core earnings on a constant exchange rate basis was partially attributed to strengthened provisions related to expected credit loss of $45 million after tax in the first quarter of 2025, compared to a net release of $8 million in the same quarter last year, as well as a $43 million post-tax provision for the California wildfires.
In Canada, core earnings were $374 million in the first quarter of 2025, up $10 million from the same quarter last year.
Global wealth and asset management inflows tumbled, from $6.7 billion in last year’s first quarter to $0.5 billion in Q1 2025.
Annualized premium equivalent sales increased 9% to $491 million from higher sales volumes across all business lines in Canada. New business contractual service margin also increased 30% to $91 million this quarter, with higher sales volumes in individual insurance and segregated funds.
Manulife introduced generative AI in its Canadian individual insurance business, enabling the internal sales team to generate personalized communications to advisors by analyzing past data. This AI has increased the number of advisors placing business with Manulife by 11% for the quarter.
Manulife’s Life Insurance Capital Adequacy Test ratio is 137%.