Core Viewpoint - Manulife Financial-S reported a core profit of CAD 1.7 billion in Q2 2025, demonstrating progress in AI technology application and digital transformation despite operational pressures [1] AI Technology Driving Business Innovation - Manulife Financial-S achieved an industry-leading position in AI application, ranking first in the life insurance sector according to the inaugural EvidentAI Insurance Index [3] - The company launched an AI-driven sales support solution in the U.S. retirement market, resulting in a doubling of sales opportunities and a reduction of over 50% in information search time compared to Q2 2024 [3] - In Asia, the company introduced the VOICE analytics platform in Singapore and Japan, utilizing generative AI to analyze customer interactions and improve service quality [3] Financial Performance Under Pressure but Stable - For H1 2025, Manulife Financial-S reported total revenue of CAD 13.522 billion, slightly down from half of the CAD 25.823 billion reported for the full year of 2024 [4] - Shareholder profit was CAD 2.114 billion, with earnings per share at CAD 1.23, down from CAD 2.85 in 2024 [4] - The company maintained a high debt-to-equity ratio of 90.52%, similar to 90.24% in 2024, indicating potential impacts on financial flexibility [4] - Return on equity decreased to 4.23% from 10.35% in 2024, while total asset return fell from 0.98% to 0.39% [4] - Cash and cash equivalents were CAD 23.773 billion, down from CAD 25.789 billion at the end of 2024, but liquidity remains sufficient [4] Ongoing Global Business Expansion - Manulife Financial-S is enhancing distribution capabilities and expanding its product lineup to meet evolving customer needs [5] - The company saw a 23% year-on-year increase in MDRT membership in Asia, ranking third globally in 2025 [5] - It became the first international life insurance company to establish an office in the Dubai International Financial Centre, focusing on high-net-worth clients [5] - Product innovations include a diversified real asset strategy in Malaysia and a series of actively managed ETF products in Canada [5] - In the U.S., the long-term care business integrated GenAI features to automate claims processes, while a digital travel insurance platform was launched in Canada to enhance service experiences [5]