European Investor
14 May 2026, 09:33
Manulife Dips 4.72% in Premarket as Global WAM Outflows and Macro Headwinds Overshadow Solid Core Results
May 13, 2026 | NYSE: MFC
Manulife is sliding in premarket despite reporting a quarter with genuine strengths, as investors focus on a sharp reversal in Global Wealth and Asset Management flows and the mounting pressure of market volatility on a business model that is highly sensitive to equity and alternative asset performance.
Core earnings of $1.836 billion grew 8% year-on-year on a constant exchange rate basis, and core EPS of $1.06 rose 11% — solid numbers that reflect the underlying strength of Manulife's diversified insurance franchise. Net income attributed to shareholders jumped to $1.147 billion from $485 million a year ago, with EPS surging 178% to $0.65, though that comparison is heavily distorted by a $700 million realized loss from the RGA reinsurance transaction in Q1 2025. Core ROE of 16.5% improved 90 basis points year-on-year and book value per common share hit an all-time high of $26.30.
Asia remains the growth engine. Core earnings in the region surged 22%, and new business value grew 15% driven by Hong Kong, Japan, and Singapore. APE sales rose 11% with NBV margin improving to 38.2%. The region is the clearest demonstration of Manulife's long-term thesis — a growing middle class across Asia driving demand for insurance and wealth products.
The concern is Global WAM, which swung from $0.5 billion in net inflows a year ago to $4.4 billion in net outflows this quarter. The deterioration was driven by $5.8 billion in retail net outflows, including several large model redemptions through third-party intermediaries in North America, and higher retirement plan redemptions in the U.S. reflecting elevated account balances from prior market growth. Institutional Asset Management partially offset this with $4.2 billion in net inflows, but the headline WAM number is the one the market will focus on.
The broader market environment is also biting. Net charges from market experience in the quarter reflected lower-than-expected returns on public equity and alternative long-duration assets including real estate, timber, and private equity — all of which are under pressure in the current high-rate, geopolitically uncertain environment.
Canada core earnings fell 6% due to unfavorable Group Insurance experience from higher long-term disability claims, and U.S. core earnings slipped 4% on lower investment spreads. These are manageable pressures but add to a picture where the positives — Asia momentum, AI deployment across operations, new business CSM growth of 16% — are being partially eclipsed by the negatives.
The company returned $1.2 billion to shareholders through dividends and buybacks, financial leverage improved to 22.5%, and the LICAT ratio of 136% confirms balance sheet strength. The premarket decline looks more like a sentiment reaction to the WAM outflows and macro sensitivity than a fundamental reassessment of Manulife's long-term positioning.
May 13, 2026 | NYSE: MFC
Manulife is sliding in premarket despite reporting a quarter with genuine strengths, as investors focus on a sharp reversal in Global Wealth and Asset Management flows and the mounting pressure of market volatility on a business model that is highly sensitive to equity and alternative asset performance.
Core earnings of $1.836 billion grew 8% year-on-year on a constant exchange rate basis, and core EPS of $1.06 rose 11% — solid numbers that reflect the underlying strength of Manulife's diversified insurance franchise. Net income attributed to shareholders jumped to $1.147 billion from $485 million a year ago, with EPS surging 178% to $0.65, though that comparison is heavily distorted by a $700 million realized loss from the RGA reinsurance transaction in Q1 2025. Core ROE of 16.5% improved 90 basis points year-on-year and book value per common share hit an all-time high of $26.30.
Asia remains the growth engine. Core earnings in the region surged 22%, and new business value grew 15% driven by Hong Kong, Japan, and Singapore. APE sales rose 11% with NBV margin improving to 38.2%. The region is the clearest demonstration of Manulife's long-term thesis — a growing middle class across Asia driving demand for insurance and wealth products.
The concern is Global WAM, which swung from $0.5 billion in net inflows a year ago to $4.4 billion in net outflows this quarter. The deterioration was driven by $5.8 billion in retail net outflows, including several large model redemptions through third-party intermediaries in North America, and higher retirement plan redemptions in the U.S. reflecting elevated account balances from prior market growth. Institutional Asset Management partially offset this with $4.2 billion in net inflows, but the headline WAM number is the one the market will focus on.
The broader market environment is also biting. Net charges from market experience in the quarter reflected lower-than-expected returns on public equity and alternative long-duration assets including real estate, timber, and private equity — all of which are under pressure in the current high-rate, geopolitically uncertain environment.
Canada core earnings fell 6% due to unfavorable Group Insurance experience from higher long-term disability claims, and U.S. core earnings slipped 4% on lower investment spreads. These are manageable pressures but add to a picture where the positives — Asia momentum, AI deployment across operations, new business CSM growth of 16% — are being partially eclipsed by the negatives.
The company returned $1.2 billion to shareholders through dividends and buybacks, financial leverage improved to 22.5%, and the LICAT ratio of 136% confirms balance sheet strength. The premarket decline looks more like a sentiment reaction to the WAM outflows and macro sensitivity than a fundamental reassessment of Manulife's long-term positioning.
