Can Manulife Stock Rebound in 2026? What Investors Should Watch Next

Manulife Financial Corporation (MFC) is one of North America’s largest financial services companies, operating across insurance, wealth, and asset management. With more than 36 million customers and C$1.4 trillion in assets under management and administration, the company serves markets in Canada, the U.S. (through John Hancock), and Asia, its fastest-growing region.

Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free) >>>

Manulife’s 2025 strategy centers on capital-light expansion and global diversification. Its focus areas include scaling its Asian insurance footprint, accelerating growth in Global Wealth & Asset Management (WAM), and capturing higher-margin opportunities through private credit and alternative investments. That approach reflects the broader shift among major insurers toward fee-based businesses less sensitive to interest rates.

In its most recent quarter, Manulife reported core earnings of C$1.7 billion and core EPS of C$0.95, supported by a 20% increase in new business value and 15% growth in annualized premium equivalent (APE) sales. The company’s LICAT ratio of 136% and rising dividend payout reinforce its balance-sheet strength, while management continues to reposition U.S. operations amid elevated mortality and credit losses.

Quickly value any stock with TIKR’s powerful new Valuation Model (It’s free!) >>>

Financial Story

Manulife’s Q2 results reflect a steady but uneven rebound across its global portfolio. Overall earnings grew modestly as strong momentum in Asia and Global WAM offset weakness in the U.S. life business. Core earnings rose 2% year-over-year (excluding ECL changes), supported by a healthy mix of new-business sales, higher fee income, and expense discipline.

Asia remains the company’s growth engine. APE sales increased 31%, and new business value climbed 20%, reflecting both volume expansion and margin improvement across key markets such as Hong Kong, Japan, and the Philippines. The region continues to benefit from demographic tailwinds and rising insurance penetration, positioning it as Manulife’s most important profit driver over the next five years.

However, the U.S. segment weighed on results, as core earnings fell roughly 50% year over year due to elevated mortality and credit losses in John Hancock’s life portfolio. Management emphasized that the impact was largely episodic, but it highlights the ongoing volatility in U.S. operations. Despite those headwinds, Manulife’s capital position remains solid, and its planned acquisition of a 75% stake in Comvest Credit Partners, aimed at expanding its private-credit platform, signals continued strategic diversification.

Look up Manulife Financial’s full financial results & estimates (It’s free) >>>

Broader Market Context

Manulife’s results come amid a challenging macro environment for global insurers. Elevated interest rates, uneven capital markets, and tightening regulatory standards have pressured returns, especially in North America. In contrast, Asia’s expanding middle class and growing demand for protection products continue to attract global investment.

For Manulife, this geographic diversification is both a strength and a necessity. Its shift toward asset management and fee-generating businesses reflects the broader insurance industry trend away from balance-sheet-heavy models. If the company can maintain capital flexibility while scaling its Asia and WAM businesses, it could emerge as one of the more growth-oriented names among Canadian financials.

1. Asia and Emerging Markets Power the Growth Engine

Asia continues to deliver standout performance, with new business value and APE growth both in the double digits. Manulife’s diversified presence across 11 Asian markets, spanning Mainland China, Singapore, Hong Kong, and Southeast Asia, gives it exposure to long-term demographic growth and rising household wealth.

Management is also deepening its partnerships and bancassurance channels across the region, enhancing distribution reach. With continued regulatory modernization and strong market demand, Asia is expected to contribute more than half of Manulife’s long-term earnings growth by 2026.

2. Wealth and Asset Management Expansion

Manulife’s Global Wealth & Asset Management unit continues to gain scale, with net inflows rising to C$0.9 billion and operating margins expanding to over 30%. The upcoming Comvest acquisition positions Manulife as a key player in private credit, a high-growth, fee-rich segment that complements its existing mutual fund and institutional platforms.

This business transformation toward capital-light revenue sources could meaningfully improve Manulife’s valuation multiple if execution remains consistent. The success of this pivot will depend on how effectively the company integrates Comvest and continues to attract inflows amid volatile markets.

Value stocks like Manulife Financial in less than 60 seconds with TIKR (It’s free) >>>

3. U.S. Life Business Still Needs Stability

The U.S. remains Manulife’s most inconsistent contributor, with quarterly earnings volatility tied to large mortality events and credit impairments. While management notes that most losses are one-offs, the segment’s sensitivity to external shocks continues to limit the momentum of consolidated earnings.

Stabilizing John Hancock’s performance will be essential for investor confidence. Over time, management’s aim to shift capital away from low-return legacy policies toward higher-margin businesses like Asia and WAM should help mitigate the drag, but the turnaround is likely to extend through 2026.

The TIKR Takeaway

Manulife’s 2025 performance underscores its transition from a traditional insurer to a global asset manager with diversified growth engines. Strong Asian results and wealth momentum show the strategy is working, but U.S. headwinds remain a reminder that execution risk persists.

For now, the company’s combination of solid capital ratios, rising dividends, and structural exposure to Asia makes it a dependable hold for investors seeking stability with measured upside. A more substantial showing from U.S. operations, or accelerated contributions from WAM, could be the catalyst for a re-rating into 2026.

Should You Buy, Sell, or Hold Manulife Financial Stock in 2025?

Manulife’s growth path is clear, but uneven. The company’s strength in Asia and its asset management business offer a durable foundation, yet near-term earnings will remain constrained by U.S. volatility. Investors should see 2026 as a transition year, a bridge between strategic repositioning and measurable growth. Long-term, the pieces are in place for higher profitability, but patience will be key.

How Much Upside Does Manulife Financial Stock Have From Here?

With TIKR’s new Valuation Model tool, you can estimate a stock’s potential share price in under a minute.

All it takes is three simple inputs:

1. Revenue Growth
2.  Operating Margins
3.  Exit P/E Multiple

If you’re not sure what to enter, TIKR automatically fills in each input using analysts’ consensus estimates, giving you a quick, reliable starting point.

From there, TIKR calculates the potential share price and total returns under Bull, Base, and Bear scenarios so you can quickly see whether a stock looks undervalued or overvalued.

Find out what your favorite stocks are really worth (Free with TIKR) >>>

Looking for New Opportunities?

• See what stocks billionaire investors are buying so you can follow the smart money.
• Analyze stocks in as little as 5 minutes with TIKR’s all-in-one, easy-to-use platform.
• The more rocks you overturn… the more opportunities you’ll uncover. Search 100K+ global stocks, global top investor holdings, and more with TIKR.

Disclaimer:

Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!