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Manulife Financial’s 22% Asia Core Earnings Surge: Can Momentum Hold?

Manulife Financial Corporation reported solid financial and operating results for the first quarter of 2026, maintaining momentum from the prior year despite a challenging macroeconomic environment. The company achieved an 11% increase in core earnings per share (EPS), driven primarily by strong performance in its Asia segment, where core earnings grew 22% year-over-year. New business growth contributed significantly to these results, with a 16% increase in new business contractual service margin (CSM) and double-digit growth from each insurance segment. Notably, Asia’s performance was buoyed by higher agency and bancassurance sales in key markets such as Hong Kong, Japan, and Singapore. In contrast, Canada experienced a 15% decline in APE sales, attributed to lower large case group insurance sales, which exhibit inherent variability. The company anticipates the Canadian insurance experience to normalize over the year after an unfavorable quarter driven by higher incidence and lower recoveries in long-term disability claims.