Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He graduated with a degree in Business Administration, has over a decade of writing experience, and grew his personal portfolio 153% from 2020 to 2024.
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Manulife Financial Corporation (TSX:MFC) reported second quarter 2026 results after market close on Wednesday, August 5, delivering double-digit earnings growth across all three insurance segments and posting core earnings per share of $1.09, up 16% on a constant currency basis from Q2 2025.
The insurer’s net income attributed to shareholders reached $2.11 billion in the quarter, a 17% increase year-over-year, while diluted earnings per share of $1.20 rose 22% on a constant currency basis. Core return on equity hit 16.3%, up 130 basis points from the prior year period.
“Core EPS increased 16% year over year, and all three insurance segments delivered double-digit top-line growth,” said CEO Phil Witherington in the earnings release.
Asia Momentum Continues
Asia remained the standout segment, generating $853 million in core earnings, up 21% year-over-year. Company-wide, annual premium equivalent sales reached $2.7 billion, a 21% increase, new business contractual service margin rose 16% on a constant currency basis to $1.02 billion, and new business value grew 10% to $929 million.
In our view, the Asia results reinforce the strategic rationale behind Manulife’s regional focus in recent years — the segment remains the company’s primary earnings growth engine heading into the second half of 2026.
Mixed Performance Elsewhere
Canada was the weak spot this quarter. Core earnings in the Canadian segment fell 10% to $379 million, the only segment to post a year-over-year decline. Notably, Canadian APE sales still grew 23% in the quarter, so the earnings decline is worth watching rather than a clear demand problem.
The U.S. segment, by contrast, bounced back sharply, with core earnings of $301 million representing a 55% year-over-year increase.
Global Wealth and Asset Management delivered solid but unspectacular results. Core EBITDA margin expanded 110 basis points to 31.2%, but net inflows slowed to $400 million from $900 million in Q2 2025. The segment saw $4.9 billion in retirement outflows and $1.4 billion in retail outflows, partially offset by $6.7 billion in institutional inflows. Average assets under management and administration grew 15% to $1.16 trillion.
Balance Sheet Remains Solid
Manulife’s capital position continues to provide flexibility. The Life Insurance Capital Adequacy Test ratio stood at 136% at quarter-end, comfortably above regulatory minimums. Book value per share rose 10% to $27.48, while adjusted book value per share climbed 15% to $41.12. Financial leverage remained within the company’s target range at 22.2%.
The company did not announce changes to guidance in the release, though management noted a previously announced long-term care reinsurance transaction is expected to close in the fourth quarter of 2026.
What It Means for Investors
Manulife delivered a solid quarter with headline growth driven by Asia and a U.S. rebound. The 16% core EPS gain on a constant currency basis reflects the benefit of the company’s geographic and product diversification.
However, investors should continue to watch two areas closely. First, the 10% earnings decline in Canada is the one blemish on an otherwise broad-based quarter. Second, wealth management net inflows remain softer than a year ago, with retirement and retail outflows offset only by institutional money.
On a positive note, the balance sheet remains strong, the Asia growth story remains intact, and the U.S. segment posted its strongest growth of any segment this quarter. For income-focused investors, Manulife remains a dividend-paying large cap in the Canadian financials space.
All figures in Canadian dollars. Data as of August 6, 2026.
For additional context on what to watch ahead of the release, see our Q2 earnings preview. For a broader look at Canadian dividend opportunities, visit our dividend stocks guide, and compare brokers on our investing apps page.
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Disclaimer: The content on bestcanadianstocks.ca is for informational and entertainment purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions. Data as of August 6, 2026.
Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He holds a degree in Business Administration and has over a decade of writing experience. Nick began investing just before the COVID-19 market crash in March 2020, growing his personal portfolio 153% by 2024. In 2022, he founded Best Canadian Stocks to make data-driven investing accessible to all Canadians. His goal is to help all of his readers achieve financial freedom, maximize their spending power, and reach their financial goals. Whether you're maximizing your TFSA, building an RRSP to save for retirement, or looking to buy your first stock, Nick has your back. His work covers Canadian equities, dividend investing, tax-advantaged accounts, and personal finance.
