Manulife Financial reported a 47% decline in net income attributed to shareholders for the first quarter of 2025 (Q1 2025), down to $485m from $866m in the same quarter last year.  

The company’s earnings per share (EPS) also dropped 48% to $0.25 in Q1 2025 from $0.45 a year ago.  

Manulife’s core earnings registered an increase of 1%, amounting to $1.8bn. 

Q1’s net charge from market experience was due to a $700m realised loss on the sale of debt instruments, which was connected to the RGA US reinsurance transaction. 

In Asia, core earnings rose by 7% to $492m, attributed to business growth, an improved impact of new business and favourable claims experience. 

Core earnings in Canada grew by 3% to $374m, driven by favourable net insurance experience and business expansion in Group Insurance. 

Conversely, US core earnings declined by 25% to $251m, impacted by lower investment spreads, enhanced ECL provisions and the adverse effects of the annual review of actuarial methods. 

The Corporate and Other segment experienced a $46m decrease in core earnings due to provisions associated with the California wildfires in the property and casualty reinsurance business. 

Furthermore, Manulife completed a transaction to reinsure two blocks of in-force business, including a newer block of long-term care, with Reinsurance Group of America.  

The capital released from this transaction is intended to be redistributed through a share buyback programme initiated in late February 2025. 

Manulife president and CEO Roy Gori said: “We started the year with continued strong momentum, delivering record levels of insurance new business results this quarter.  

“Overall, I am proud of our performance this quarter against an increasingly volatile operating environment, and our results reflect the strength of the franchise.  

“The work we have done since 2017 has put the company in a position of great strength. We could not have transformed the company in such a tangible way without the hard work, disciplined execution and commitment of our more than 37,000 colleagues across the globe. I couldn’t be prouder of what we have accomplished and of the momentum we built, and I look forward to watching Phil Witherington lead the company in writing its next chapter.”  

In November 2024, the company named Witherington as the new CEO after Gori announced his retirement. Steve Finch succeeds Witherington as the new president and CEO of its Asia division, effective 9 May 2025.