宏利金融(00945) - 2025 Q2 - 季度业绩

Manulife Q2 2025 Performance Overview Manulife delivered strong Q2 2025 results, marked by robust new business growth, strong profitability in key segments, leading AI adoption, and strategic expansion in wealth and asset management Performance Highlights Manulife achieved strong Q2 2025 growth with robust new business, strong profitability in key segments, leading AI adoption, and a strategic acquisition to boost wealth and asset management - New business growth momentum was strong, with high-potential businesses recording robust earnings growth[2] - All three insurance business segments saw new business CSM year-over-year growth exceeding 30%[3] - Global Wealth and Asset Management business expanded its core EBITDA margin and recorded double-digit core earnings growth[3] - Announced the acquisition of a 75% stake in Comvest Credit Partners, expected to enhance complementary strengths and scale in private credit[4] Q2 2025 Key Financial Metrics | Metric | 2Q25 (CAD) | 2Q24 (CAD) | Change (Constant FX) | | :--- | :--- | :--- | :--- | | Core Earnings | 1.7 billion | 1.737 billion | -2% | | Core Earnings excluding ECL changes | 1.8 billion | 1.767 billion | +2% | | Net Income Attributable to Shareholders | 1.8 billion | 1.042 billion | +72% | | Core EPS | 0.95 | 0.91 | +2% | | EPS | 0.98 | 0.52 | +88% | | Core ROE | 15.0% | 15.7% | -0.7 pps | | ROE | 15.6% | 9.0% | +6.6 pps | | LICAT Ratio | 136% | - | - | | APE Sales | 2.23 billion | 1.907 billion | +15% | | New Business CSM | 882 million | 628 million | +37% | | New Business Value | 846 million | 691 million | +20% | | Global WAM Net Inflows | 0.9 billion | 0.1 billion | +417% | President and CFO Commentary The President highlighted global business strength and AI integration, while the CFO noted robust earnings in WAM, Asia, and Canada despite US life claims, alongside share repurchases - The President emphasized the strength and resilience of global operations, with all insurance business segments seeing new business CSM year-over-year growth exceeding 30%[3] - The company is integrating AI across its business, demonstrating a firm commitment to customers, digitalization, and AI solutions for operational excellence and sustainable growth[3] - The CFO noted that despite unfavorable U.S. life insurance claims experience, Global Wealth and Asset Management, Asia, and Canada businesses recorded strong earnings growth[4] - The company maintained strict cost control, with overall core expenses decreasing by 3% compared to Q2 2024[4] - Book value per common share increased by 5% year-over-year, and the company repurchased CAD 1.1 billion of common shares, demonstrating a commitment to enhancing shareholder value[4] Consolidated Financial Performance Manulife's Q2 2025 net income attributable to shareholders surged 72% due to market experience, while core earnings slightly decreased but grew 2% excluding ECL changes, with strong new business Key Financial Metrics Overview Manulife's Q2 2025 net income attributable to shareholders increased 72% to CAD 1.789 billion, driven by market improvements, with core earnings slightly down but up 2% excluding ECL changes Quarterly and Year-to-Date Key Financial Data | Metric | 2Q25 | 2Q24 | Change | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Shareholders (million CAD) | 1,789 | 1,042 | 72% | 2,274 | 1,908 | 16% | | Core Earnings (million CAD) | 1,726 | 1,737 | (2)% | 3,493 | 3,447 | (2)% | | EPS (CAD) | 0.98 | 0.52 | 88% | 1.23 | 0.97 | 23% | | Core EPS (CAD) | 0.95 | 0.91 | 2% | 1.94 | 1.82 | 3% | | ROE | 15.6% | 9.0% | 6.6 pps | 9.7% | 8.5% | 1.2 pps | | Core ROE | 15.0% | 15.7% | (0.7) pps | 15.3% | 16.0% | (0.7) pps | | Book Value Per Common Share (CAD) | 24.90 | 23.71 | 5% | 24.90 | 23.71 | 5% | | APE Sales (million CAD) | 2,230 | 1,907 | 15% | 4,919 | 3,790 | 26% | | New Business CSM (million CAD) | 882 | 628 | 37% | 1,789 | 1,286 | 34% | | New Business Value (million CAD) | 846 | 691 | 20% | 1,753 | 1,332 | 27% | | Global WAM Net Inflows (billion CAD) | 0.9 | 0.1 | 417% | 1.4 | 6.8 | (80)% | Profitability Analysis Q2 2025 core earnings decreased 2% to CAD 1.726 billion due to adverse US life claims and higher ECL, offset by strong growth in WAM, Asia, and Canada, while net income surged 72% Core Earnings Q2 2025 core earnings were CAD 1.726 billion, down 2% year-over-year, primarily due to unfavorable US life claims and increased ECL provisions, partially offset by strong growth in Asia, WAM, and Canada - Q2 2025 core earnings were CAD 1.7 billion, a 2% decrease compared to Q2 2024[12] - The decline in core earnings was primarily offset by unfavorable U.S. life insurance claims experience and increased ECL provisions[12] - Excluding the impact of ECL changes, core earnings were CAD 1.8 billion, representing a 2% year-over-year increase[4] Core Earnings Performance by Segment (million CAD) | Segment | 2Q25 | 2Q24 | Change | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Asia | 520 | 449 | 13% | 1,012 | 914 | 10% | | Canada | 419 | 402 | 4% | 793 | 766 | 4% | | U.S. | 141 | 303 | (53)% | 392 | 638 | (39)% | | Global Wealth and Asset Management | 463 | 386 | 19% | 917 | 735 | 22% | | Corporate and Other | (70) | (82) | 12 | (197) | (163) | (34) | | Total | 1,726 | 1,737 | (2)% | 3,493 | 3,447 | (2)% | Net Income Attributable to Shareholders Q2 2025 net income attributable to shareholders increased by CAD 0.7 billion to CAD 1.8 billion, mainly driven by improved market experience, including better-than-expected listed equity returns and derivative gains - Q2 2025 net income attributable to shareholders was CAD 1.8 billion, an increase of CAD 0.7 billion compared to Q2 2024[13] - The increase in net income was primarily due to improved market experience, reflecting better-than-expected listed equity returns and gains from derivatives and the ineffective portion of hedging accounting[13] - Part of the increase was offset by lower-than-expected returns from alternative long-duration assets, mainly involving real estate and private equity investments[13] Capital and Shareholder Value Manulife maintains a robust capital position with a 136% LICAT ratio, demonstrating commitment to shareholder value through a 5% annual increase in book value per common share and active share repurchases Life Insurance Capital Adequacy Test Ratio As of June 30, 2025, Manulife's Life Insurance Capital Adequacy Test (LICAT) ratio was 136%, indicating strong capital adequacy - The Life Insurance Capital Adequacy Test (LICAT) ratio was 136%[4] Book Value Per Common Share Book value per common share was CAD 24.90 at Q2 2025 end, up 5% year-over-year, with adjusted book value increasing 7% to CAD 35.78 Book Value Per Common Share (CAD) | Metric | 2Q25 | 2Q24 | Change | | :--- | :--- | :--- | :--- | | Book Value Per Common Share | 24.90 | 23.71 | 5% | | Adjusted Book Value Per Common Share | 35.78 | 33.32 | 7% | Share Repurchases Manulife has repurchased CAD 1.1 billion of common shares year-to-date, underscoring its commitment to enhancing shareholder value - Since the beginning of the year, the company has repurchased CAD 1.1 billion of common shares[4] Business Segment Performance Manulife's business segments showed varied performance, with strong growth in Asia and Global WAM, moderate growth in Canada, and a decline in US core earnings due to adverse claims experience Asia Business Asia business delivered strong performance with core earnings growth of 13% to USD 520 million, significant growth in APE sales, new business CSM, and value, alongside enhanced distribution and product offerings - Asia core earnings increased by 13%, reflecting sustained business growth, favorable claims experience, and improved new business impact[17] Asia Business Key Metrics (million USD) | Metric | 2Q25 | 2Q24 | Change | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Shareholders | 600 | 424 | 44% | 1,035 | 694 | 49% | | Core Earnings | 520 | 449 | 13% | 1,012 | 914 | 10% | | APE Sales | 1,233 | 920 | 31% | 2,645 | 1,870 | 41% | | New Business CSM | 480 | 349 | 34% | 978 | 713 | 36% | | New Business Value | 451 | 346 | 28% | 908 | 669 | 35% | - Manulife Asia's Million Dollar Round Table (MDRT) membership grew by 23% year-over-year, ranking third globally for MDRT members in 2025[9] - Became the first international life insurer to establish an office in the Dubai International Financial Centre, deepening its presence in the Middle East[9] Canada Business Canada business core earnings rose 4% to CAD 419 million, primarily due to group insurance growth and improved investment spreads, with new business value up 1% and CSM up 32% despite lower APE sales - Canada core earnings increased by 4%, driven by growth in group insurance business and higher investment spreads[17] Canada Business Key Metrics (million CAD) | Metric | 2Q25 | 2Q24 | Change | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Shareholders | 390 | 79 | 394% | 612 | 352 | 74% | | Core Earnings | 419 | 402 | 4% | 793 | 766 | 4% | | APE Sales | 345 | 520 | (34)% | 836 | 970 | (14)% | | New Business CSM | 100 | 76 | 32% | 191 | 146 | 31% | | New Business Value | 161 | 159 | 1% | 341 | 316 | 8% | - APE sales decreased by 34%, primarily offset by the absence of a large group insurance sale in Q2 2024[18] - New business CSM grew by 32%, reflecting strong sales growth in individual insurance[18] U.S. Business U.S. business core earnings declined 53% to USD 141 million due to unfavorable life claims, lower investment spreads, and increased ECL provisions, despite strong new business growth across key metrics - U.S. core earnings decreased by 53%, reflecting unfavorable life insurance claims experience, lower investment spreads, and increased ECL provisions[17] U.S. Business Key Metrics (million USD) | Metric | 2Q25 | 2Q24 | Change | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Shareholders | 26 | 98 | (73)% | (371) | 18 | -% | | Core Earnings | 141 | 303 | (53)% | 392 | 638 | (39)% | | APE Sales | 130 | 93 | 40% | 250 | 206 | 21% | | New Business CSM | 86 | 54 | 59% | 156 | 126 | 24% | | New Business Value | 46 | 41 | 12% | 94 | 78 | 21% | - The segment recorded strong new business growth this quarter, with APE sales, new business CSM, and new business value increasing by 40%, 59%, and 12% respectively[18] Global Wealth and Asset Management Business Global WAM achieved excellent results with core earnings up 19% to CAD 463 million, net inflows of CAD 0.9 billion, an expanded core EBITDA margin of 30.1%, and a strategic acquisition to boost private credit - Global Wealth and Asset Management business core earnings increased by 19%, primarily driven by favorable market impacts, higher net fee income, increased performance fees, and ongoing cost control[17] Global Wealth and Asset Management Business Key Metrics (million CAD) | Metric | 2Q25 | 2Q24 | Change | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income Attributable to Shareholders | 482 | 350 | 36% | 925 | 715 | 25% | | Core Earnings | 463 | 386 | 19% | 917 | 735 | 22% | | Gross Inflows (billion CAD) | 43.8 | 41.4 | 5% | 94.1 | 86.9 | 5% | | Average Assets Under Management and Administration (billion CAD) | 1,005 | 933 | 7% | 1,022 | 917 | 9% | | Core EBITDA Margin | 30.1% | 26.3% | 380 bps | 29.2% | 25.9% | 330 bps | - Net inflows reached CAD 0.9 billion, significantly higher than the CAD 0.1 billion net inflows recorded in Q2 2024[4][15] - Announced the acquisition of a 75% stake in Comvest Credit Partners, bringing USD 14.7 billion in assets to the platform[4] Corporate and Other Segments Core earnings for Corporate and Other segments improved by CAD 12 million, primarily driven by a reduction in long-term incentive compensation - Core earnings for Corporate and Other segments improved by CAD 12 million, primarily due to a reduction in long-term incentive compensation[17] Operations and Strategic Focus Manulife is strategically integrating AI across operations to enhance customer experience and efficiency, expanding distribution capabilities, driving new business growth, and making a key acquisition to strengthen its WAM platform AI Technology Application and Innovation Manulife is actively integrating AI across its operations, leading in AI maturity within the life insurance sector, and deploying AI-driven solutions in retirement, Asia, and long-term care to boost efficiency and insights - Manulife is integrating Artificial Intelligence (AI) across its business, accelerating its goal of becoming a digital, customer-centric industry leader[7] - Manulife ranked first in AI maturity within the life insurance sector and among the top five across the entire insurance industry in the inaugural Evident AI Insurance Index[8] - Launched an AI-driven sales support solution in the U.S. retirement market, doubling sales opportunities and reducing information search time by over 50%[7] - Introduced the VOICE analytics platform in Asia, utilizing generative AI to categorize data and find correlations, enhancing service quality and customer understanding[7] - Implemented GenAI capabilities in the U.S. Long-Term Care (LTC) business, aiming to enhance the automation of claims processes[7] Distribution Capabilities and Product Expansion Manulife is enhancing distribution and product offerings, with increased MDRT members in Asia, new Middle East presence, diversified asset strategies, digital travel insurance, and expanded US wholesale teams - Manulife Asia's Million Dollar Round Table (MDRT) membership grew by 23% year-over-year, ranking third globally for MDRT members in 2025[9] - Became the first international life insurer to establish an office in the Dubai International Financial Centre, specifically providing consultation and underwriting services for high-net-worth clients' life insurance contracts[9] - Launched a diversified real asset strategy in Malaysia and introduced four actively managed ETF series products in the Canadian market[9] - Strengthened the Manulife iFUNDS platform, creating Singapore's first integrated digital wealth solution, combining AI-driven ILP analysis capabilities[10] - Launched an end-to-end digital travel insurance platform in Canada and partnered with Maven Clinic to offer virtual women's and family health services to group insurance members[8][10] - Expanded its wholesale team in the U.S., implementing a more targeted growth strategy to accelerate penetration in the high-net-worth and mass affluent markets[11] New Business and Contractual Service Margin Manulife's new business continues to grow, with APE sales, new business CSM, and value increasing by 15%, 37%, and 20% respectively, driving a rise in organic CSM and a total CSM of CAD 22.316 billion New Business Sales and Value Q2 2025 APE sales, new business CSM, and new business value grew by 15%, 37%, and 20% respectively, reflecting strong sales momentum and improved profitability in insurance new business - APE sales, new business CSM, and new business value increased by 15%, 37%, and 20% respectively[14] New Business CSM by Segment (million CAD) | Segment | 2Q25 | 2Q24 | Change | YTD 2025 | YTD 2024 | Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Asia | 663 | 478 | 39% | 1,378 | 969 | 42% | | Canada | 100 | 76 | 32% | 191 | 146 | 31% | | U.S. | 119 | 74 | 61% | 220 | 171 | 29% | | Total | 882 | 628 | 37% | 1,789 | 1,286 | 39% | Contractual Service Margin As of June 30, 2025, after-tax CSM excluding NCI was CAD 18.527 billion, with organic CSM contributing CAD 1.162 billion in growth for H1 2025, an 11% annualized increase - As of June 30, 2025, CSM recorded CAD 22.316 billion[16] - Organic CSM changes contributed an increase of CAD 1.162 billion for the first half of 2025, representing an 11% annualized growth[16] - After-tax CSM excluding NCI was CAD 18.527 billion[16] CSM and After-Tax CSM Data (million CAD) | Metric | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | CSM | 23,722 | 23,425 | 1.3% | | CSM excluding NCI | 22,316 | 22,127 | 0.85% | | After-tax CSM | 19,782 | 19,497 | 1.46% | | After-tax CSM excluding NCI | 18,527 | 18,353 | 0.95% | Strategic Acquisition Manulife announced the acquisition of a 75% stake in Comvest Credit Partners, expected to close in Q4 2025, enhancing its global wealth and asset management platform's private credit capabilities and scale - Announced the acquisition of a 75% stake in Comvest Credit Partners, bringing USD 14.7 billion in assets to the Global Wealth and Asset Management business platform[4] - The transaction is expected to close in Q4 2025[3] - This acquisition will enhance complementary strengths and scale in the private credit sector, supporting the future development of the Global Wealth and Asset Management business[3] Financial Metric Adjustments and Definitions Manulife has updated its 2024 non-GAAP financial metrics to reflect the retroactive global minimum tax, ensuring comparability with 2025 results, and provides detailed reconciliations for key performance indicators Global Minimum Tax Impact The Canadian government passed the Global Minimum Tax Act, retroactively applied from December 31, 2023, prompting Manulife to update 2024 non-GAAP metrics for comparability with 2025 results - The Canadian government passed the Global Minimum Tax Act, retroactively applied to financial periods beginning on or after December 31, 2023[24] - Manulife has updated certain 2024 non-GAAP financial measures to reflect the impact of the global minimum tax, enhancing comparability of 2025 and 2024 results[24] Non-GAAP Financial Measures Manulife utilizes various non-GAAP financial measures, such as core earnings and adjusted book value, to assess performance, emphasizing they should be considered alongside GAAP financials and may not be comparable to other issuers - The company uses various non-GAAP financial measures and other financial metrics to assess overall performance and individual business segments[25] - Non-GAAP financial measures include core earnings, core earnings excluding the impact of ECL changes, core EBITDA, core expenses, and adjusted book value[25] - Non-GAAP ratios include core ROE, core EPS, core EBITDA margin, and financial leverage ratio[26] - These metrics are not standardized under GAAP and should not be considered in isolation or as a substitute for GAAP financial information, and may not be comparable to similar measures disclosed by other issuers[27] Core Earnings and Net Income Reconciliation The report provides detailed reconciliation tables for core earnings and net income attributable to shareholders for Q2 2025, Q1 2025, Q2 2024, and year-to-date, presented on a constant currency basis - Reconciliation tables for Q2 2025 core earnings and net income attributable to shareholders are provided, detailing excluded items such as market experience (gains) losses and restructuring expenses[28] - The reconciliation tables present income before income taxes, income tax (expense) recovery, core earnings, and net income by business segment (Asia, Canada, U.S., Global Wealth and Asset Management, Corporate and Other)[28] - Reconciliation tables for core earnings presented on a constant currency basis are also provided, along with core earnings for Asia and U.S. segments denominated in USD[29] Other Key Financial Metrics Details This section provides detailed data and reconciliation tables for various key financial metrics, including core earnings attributable to common shareholders, core ROE, CSM, adjusted book value, and core EBITDA for WAM Core Earnings Attributable to Common Shareholders Core earnings attributable to common shareholders for Q2 2025 were CAD 1.623 billion, with year-to-date figures reaching CAD 3.333 billion Core Earnings Attributable to Common Shareholders (million CAD) | Metric | 2Q25 | 2Q24 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Core Earnings | 1,726 | 1,737 | 3,493 | 3,447 | | Less: Preferred Share Dividends and Other Equity Distributions | 103 | 99 | 160 | 154 | | Core Earnings Attributable to Common Shareholders | 1,623 | 1,638 | 3,333 | 3,293 | Core Return on Equity Manulife's core return on equity (ROE) for Q2 2025 was 15.0%, with the year-to-date core ROE standing at 15.3% Core ROE (Annualized) (%) | Metric | 2Q25 | 2Q24 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Core ROE (Annualized) | 15.0% | 15.7% | 15.3% | 16.0% | Adjusted Book Value As of June 30, 2025, adjusted book value was CAD 60.947 billion, an increase from CAD 59.455 billion on June 30, 2024 Adjusted Book Value (million CAD) | Metric | June 30, 2025 | June 30, 2024 | | :--- | :--- | :--- | | Common Shareholders' Equity | 42,420 | 42,305 | | After-tax CSM excluding NCI | 18,527 | 17,150 | | Adjusted Book Value | 60,947 | 59,455 | Core EBITDA and Margin Global Wealth and Asset Management's Q2 2025 core EBITDA was CAD 623 million, with a core EBITDA margin of 30.1%, representing a 380 basis point increase year-over-year Global Wealth and Asset Management Business Core EBITDA and Margin (million CAD) | Metric | 2Q25 | 2Q24 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Core EBITDA | 623 | 513 | 1,231 | 990 | | Core Revenue | 2,069 | 1,948 | 4,209 | 3,821 | | Core EBITDA Margin | 30.1% | 26.3% | 29.2% | 25.9% | Core Expenses Core expenses for Q2 2025 were CAD 1.689 billion, showing a slight decrease compared to the same period last year Core Expenses (million CAD) | Metric | 2Q25 | 2Q24 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | General Expenses—Income Statement | 1,140 | 1,225 | 2,342 | 2,327 | | Directly Attributable Acquisition Expenses for Contracts Measured Using the Premium Allocation Approach | 40 | 39 | 82 | 77 | | Directly Attributable Maintenance Expenses | 514 | 509 | 1,046 | 1,048 | | Less: General Expenses Included in Core Earnings Excluded Items | 5 | 60 | 5 | 66 | | Core Expenses | 1,689 | 1,713 | 3,465 | 3,386 | Additional Information This section provides details on the upcoming earnings conference call, directs readers to supplementary reports and contact information, and includes important cautionary notes regarding forward-looking statements Earnings Conference Call Manulife will host its Q2 2025 earnings conference call and webcast on August 7, 2025, providing dial-in and webcast links, with an archived recording available afterward - Manulife will host its Q2 2025 earnings conference call and webcast on August 7, 2025, at 8:00 AM EDT[20] - Dial-in numbers and a password, as well as a webcast link, are provided[20] - An archived version of the webcast and a replay of the conference call will be available on the website after the meeting[20] Report References and Contact Information This earnings press release should be read in conjunction with Manulife's Q2 2025 Shareholder Report and unaudited interim consolidated financial statements, available on company and regulatory websites - This earnings press release should be read in conjunction with the company's Q2 2025 Shareholder Report and unaudited interim consolidated financial statements[21] - Relevant materials have been uploaded to Manulife's website, SEDAR+ website, and the U.S. Securities and Exchange Commission website[21] - Contact information for media inquiries and investor relations is provided[21] Caution Regarding Forward-Looking Statements The report contains forward-looking statements involving risks and uncertainties, where actual results may differ significantly from expectations, advising readers to consult regulatory filings for comprehensive risk information - The report contains written and/or oral forward-looking statements, compliant with "safe harbor" provisions of Canadian provincial securities laws and the U.S. Private Securities Litigation Reform Act of 1995[59] - Forward-looking statements involve risks and uncertainties and should not be unduly relied upon, as actual results may differ significantly from expectations[59] - Material factors include general business and economic conditions, changes in laws and regulations, changes in capital requirements, market liquidity, effectiveness of hedging strategies, business competition, and mergers and acquisitions[61] - Readers are advised to refer to the "Risk Management and Risk Factors" section in the company's latest Annual Report's Management's Discussion and Analysis for more information[62]