MANULIFE(MFC) - 2025 Q4 - Annual Report

Financial Performance - Core earnings for 2025 totaled $7,521 million, up from $7,182 million in 2024, reflecting a year-over-year increase of 4.7%[53] - The net income attributed to shareholders for 2025 was $5,572 million, compared to $5,385 million in 2024, marking a 3.5% increase[53] - The company reported a restructuring charge of $12 million in Q4 2025, down from $52 million in Q4 2024[53] - Core earnings (post-tax) for 2024 totaled $7,182 million, with contributions from Asia ($2,466 million), Canada ($1,568 million), U.S. ($1,690 million), and Global WAM ($1,673 million) while Corporate and Other reported a loss of $(215) million[67] - The net income attributed to shareholders (post-tax) for 2024 was $5,385 million, after excluding items from core earnings[66] - In 4Q25, core earnings (post-tax) reached $1,993 million, with Asia contributing $785 million, Canada $413 million, U.S. $319 million, and Global WAM $490 million[70] - The net income attributed to shareholders (post-tax) in 4Q25 was $1,499 million, reflecting a strong performance across segments despite market experience losses[69] - The company experienced market experience losses of $(1,450) million in 2024, significantly impacting net income attributed to shareholders[66] - Core earnings for Q4 2024 totaled $1,907 million, a decrease from $1,806 million in Q4 2023[79] - Net income attributed to shareholders for Q4 2024 was $1,638 million, compared to $1,707 million in the previous quarter[77] Core Earnings and Revenue - Core earnings (pre-tax) for 2024 amounted to $8,492 million, with significant contributions from all regions, particularly the U.S. segment[67] - The company reported a core earnings (post-tax) adjustment of $86 million on a CER basis for 2024, indicating a positive impact from foreign exchange rates[67] - The core earnings (post-tax) for the U.S. segment in 4Q25 were $319 million, reflecting ongoing operational challenges[70] - The company reported a core ROE of 16.5% for the full year 2024, slightly up from 16.2% in 2023[83] - The company’s core earnings (pre-tax) for Q4 2024 were $2,252 million, indicating a robust operational performance despite market challenges[79] - Core earnings for 2025 were reported at $2,571 million, an increase from $2,173 million in 2024, reflecting a growth of 18.3%[92] - Core revenue for Q4 2025 reached $2,285 million, a 6.8% increase from Q4 2024's $2,140 million[93] - Global WAM core revenue for 2025 totaled $8,669 million, an increase of 8.1% compared to $8,016 million in 2024[93] Investment and Assets - Average assets under management (AUM) for 2025 were reported at $1,932 million, an increase from $1,673 million in 2024[53] - Total investment income for 2025 was $25,289 million, up from $20,459 million in 2024, reflecting a significant growth of 23.5%[93] - Investment income in Global WAM for Q4 2025 was $164 million, compared to $78 million in Q4 2024, marking a 110.3% increase[93] - The company reported a total other revenue and investment income in Global WAM of $2,283 million for Q4 2025, up from $2,083 million in Q4 2024[93] - Adjusted book value as of December 31, 2025, was $64,194 million, an increase from $62,665 million as of December 31, 2024[91] Market and Business Development - The Global Minimum Tax (GMT) was enacted retroactively to fiscal periods starting December 31, 2023, impacting both core earnings and items excluded from core earnings[55] - The reinsurance transaction with the Reinsurance Group of America closed on January 1, 2025, contributing to the overall financial strategy[53] - The Evident AI Index for Insurance ranked the company among the top 30 insurance firms in North America and Europe, indicating strong performance in talent, innovation, leadership, and transparency[11] - The company anticipates continued benefits from AI utilization and potential common share repurchases in the future[95] - The company is focused on executing strategic plans, including market expansion and digital transformation initiatives[97] - The company is actively pursuing regulatory approvals for entering new markets, including the Indian insurance market[97] New Business Metrics - Total new business CSM for 4Q25 reached $1,020 million, a 5.6% increase from $966 million in 3Q25[87] - Asia's new business CSM totaled $697 million in 4Q25, compared to $712 million in 3Q25, reflecting a decrease of 2.1%[87] - The U.S. market contributed $188 million to new business CSM in 4Q25, up from $145 million in 3Q25, marking a growth of 29.7%[87] - New business CSM in Hong Kong for 4Q25 was $244 million, down from $287 million in 3Q25, a decline of 15%[87] - Net income attributed to shareholders for Asia in 4Q25 was $623 million, up from $583 million in 4Q24, representing a year-over-year increase of 6.9%[89] - The net income attributed to shareholders in Canada for 4Q25 was $252 million, down from $439 million in 4Q24, a decrease of 42.5%[89]