Manulife Financial Corp.: First Take 1Q26 Earnings: Asia and U.S. Strength Partially Offset by Canada and GWAM Softness

Research evidence excerpt

Manulife Financial Corp.: First Take 1Q26 Earnings: Asia and U.S. Strength Partially Offset by Canada and GWAM Softness

Update

May 13, 2026 11:46 PM GMT

Morgan Stanley & Co. LLCMManulife Financial Corp. | North America Bob Jian Huang

Equity Analyst

First Take 1Q26 Earnings: Asia Bob.Huang@morganstanley.comJie Cheng +1 212 761-6136

Research Associate

Jie.Cheng1@morganstanley.com +1 212 761-3878

and U.S. Strength Partially

Manulife Financial Corp. (MFC.TO, MFC CT)

Insurance - Life/Annuity | CanadaOffset by Canada and GWAM

Stock Rating Equal-weight

Industry View Attractive

Price target C$52.00Softness Shr price, close (May 13, 2026) C$54.62

Mkt cap, curr (mm) C$94,176

52-Week Range C$55.34-41.08

Reaction to earnings

Unchanged Modest shortfall Largely unchanged

Impact to our thesis Financial results versus consensus Direction of next 12-month

consensus EPS

Source: Company data, Morgan Stanley Research

Mixed performance: Asia and the U.S. delivered solid earnings and strong sales this

quarter. Canada core earnings were pressured by unfavorable long term disability

experience, while sales declined due to lower large case Group Insurance activity.

GWAM earnings were also soft, reflecting lower performance fees and the eMPF

transition in Hong Kong. Net outflows were outsized, primarily driven by retail and

U.S. Retirement channels. Core EPS of $1.06 increased 11% YoY, driven by strong

Asia growth, favorable impacts from the 2025 assumption review, and positive U.S.

Life and LTC experience, partially offset by weaker Canada results and lower

investment spreads in the U.S. Overall, given the multi-facet progress this quarter,

we remain on the sidelines and reiterate our Equal-weight rating.

What We Liked

• Asia Core Earnings: Core earnings of $598 million came in above consensus