Manulife Financial Corp. reported net income attributed to shareholders of $2.1 billion in its second quarter, up $321 million year over year.
The insurer said the result was driven by core earnings growth and higher-than-expected returns on public equity. That was partially offset by lower-than-expected returns on alternative long-duration assets.
Core earnings for the quarter came to $1.9 billion, up 12% from the same quarter last year, with core earnings per share up 16% to $1.09.
In Canada, net income attributed to shareholders fell by 22% compared with Q2 2025, to $306 million.
Core earnings declined by 10%, reflecting unfavourable claims experience and higher group insurance expenses as Manulife made investments aimed at growing the business and elevating customer experience.
At the same time, annualized premium equivalent sales grew by 23% in Canada, driven by large-case group insurance and participating insurance. Also partially offsetting the core earnings decline was the net positive impact of 2025 updates to actuarial methods and assumptions, a lower charge in expected credit loss provision and higher investment spreads, Manulife said in a release.
The insurer’s strongest growth came in the U.S. and Asia. In the U.S., net income attributable to shareholders rose by 323% from the same quarter last year to US$110 million. Its business in Asia posted a 28% rise to US$768 million.
Global wealth and asset management net income attributable to shareholders rose by 7% to $514 million, with assets under management and advisement growing 15% to $1.2 trillion. The insurer cited strong contributions from its CQS Investment Management purchase in 2024 and the acquisition of a 75% stake in Comvest Credit Partners last November.
Global wealth and asset management net inflows for the period were $411 million, supported by strong institutional inflows, compared with net inflows of $946 million in the same quarter last year.
Both the retirement and retail segments saw net outflows (of $4.9 billion and $1.4 billion, respectively). Retirement net outflows, which compared to net inflows of $2 billion in the same quarter of 2025, were driven by an increase in retirement plan redemptions, higher net member withdrawals reflecting higher account balances from market growth and a large-case plan sponsor sale in the U.S. during last year’s second quarter.
Manulife also entered into a reinsurance agreement with Munich American Reassurance Company, covering $3.2 billion in long-term care reserves. The transaction is expected to reduce its risk profile when it closes later this year.
The insurer reported a life insurance capital adequacy test ratio of 136% at the end of the quarter.
This story has been edited.