Q2 2025 Report to Shareholders

Second Quarter

Report to

Shareholders

Three and six months ended

June 30, 2025

Manulife Financial Corporation

1 Highest potential businesses include Asia segment, Global Wealth and Asset Management, Canada group benefits and North American behavioural insurance

products.

2 Core earnings, core earnings excluding the impact of the change in ECL and core expenses are non-GAAP financial measures. For more information on non-

GAAP and other financial measures, see “Non-GAAP and other financial measures” in our 2Q25 Management’s Discussion and Analysis (“2Q25 MD&A”).

3 Percentage growth/declines in core earnings, core earnings excluding the impact of the change in ECL, diluted core earnings per common share (“core EPS”),

diluted earnings (loss) per share (“EPS”), core EPS excluding the impact of the change in ECL and new business contractual service margin net of NCI (“new

business CSM”) are stated on a constant exchange rate basis and are non-GAAP ratios.

4 Core EPS, core EPS excluding the impact of the change in ECL, core ROE and core EBITDA margin are non-GAAP ratios.

5 Life Insurance Capital Adequacy Test (“LICAT”) ratio of The Manufacturers Life Insurance Company (“MLI”) as at June 30, 2025. LICAT ratio is disclosed under

the Office of the Superintendent of Financial Institutions Canada’s (“OSFI’s”) Life Insurance Capital Adequacy Test Public Disclosure Requirements guideline.

6 For more information on APE sales, new business value (“NBV”), net flows and new business value margin (“NBV margin”), see “Non-GAAP and other financial

measures” in our 2Q25 MD&A. In this news release, percentage growth/decline in APE sales and NBV are stated on a constant exchange rate basis.

7 2024 quarterly and year-to-date core earnings, NBV, core EPS, core ROE, adjusted BV per common share, and financial leverage ratio have been updated to

align with the presentation of Global Minimum Taxes (“GMT”) in 2025. See section A7 “Global Minimum Taxes (GMT)” in our 2Q25 MD&A for more information.

8 Refers to “Results at a Glance” for 2Q25 and 2Q24 results.

9 Includes Comvest fee paying AUM of US$11 billion and Comvest committed capital of US$3.7 billion.

10 Subject to customary closing conditions and approvals. See “Caution regarding forward-looking statements” below. See the press release announcing the

acquisition for further details on the transaction and Comvest Credit Partners.


Manulife Financial Corporation – Second Quarter 2025	1

Manulife Financial Corporation (“Manulife” or the “Company”) reported its second quarter results for the

period ended June 30, 2025, delivering continued strong momentum in new business growth and strong

earnings growth in our highest potential businesses.1

Key highlights for the second quarter of 2025 (“2Q25”) include:

•Core earnings2 of $1.7 billion, a 2% decrease on a constant exchange rate basis3 compared with the second quarter of

2024 (“2Q24”)

•Excluding the impact of the change in expected credit loss (“ECL”), core earnings was $1.8 billion, up 2% from

2Q242,3

•Net income attributed to shareholders of $1.8 billion, an increase of $0.7 billion compared with 2Q24

•Core EPS4 of $0.95, up 2%3 from 2Q24. EPS of $0.98, up 88%3 from 2Q24

•Excluding the impact of the change in ECL, core EPS was $0.99, up 7% from 2Q243,4

•Core ROE4 of 15.0% and ROE of 15.6%

•LICAT ratio5 of 136%

•APE sales up 15%6, new business CSM up 37%3 and new business value (“NBV”) up 20%6 from 2Q247,8

•Global Wealth and Asset Management (“Global WAM”) net inflows6 of $0.9 billion, up from $0.1 billion in 2Q24

•Announced today the agreement to acquire a 75% stake in Comvest Credit Partners, adding US$14.7 billion9 to our

Global WAM platform. The transaction is expected to close in the fourth quarter of 202510

“Our second-quarter results underscore the strength and resilience of our global franchise, as we continue to deliver high-

quality growth across a diversified portfolio. All three insurance segments achieved over 30% growth year over year in new

business CSM, clear evidence of our momentum and future earnings potential. Notably, Asia continued to generate strong

APE sales and increased NBV margin sequentially.6 Global WAM further expanded its core EBITDA margin4 and delivered

double-digit core earnings growth compared with the prior year quarter.7

“It’s an incredible privilege to lead Manulife and I’m energized by the passion and performance of this team. We are building on

a strong foundation and are well-positioned to navigate a dynamic macroeconomic landscape with clarity and purpose. As we

write Manulife’s next chapter, I’m confident our strong commitment to customers, digital and AI-enabled solutions, will set new

standards for excellence, efficiency, and sustainable growth across our global franchise.

“Investing in our high-potential businesses with strategically focused intent is critical, and I’m excited to announce our

acquisition of Comvest Credit Partners, adding highly complementary and scaled capabilities in private credit, an asset-

strategy that we believe will contribute to future growth across our Global Wealth and Asset Management lines of business.”

— Phil Witherington, Manulife President & Chief Executive Officer

“While core EPS growth was dampened by headwinds related to unfavourable life insurance claims experience in the U.S. and

strengthened expected credit loss provisions, the underlying fundamentals of our businesses remained robust and we are

reporting strong earnings growth in Global WAM, Asia and Canada. This is supported by our continued expense discipline

which drove a 3% reduction in overall core expenses compared with 2Q24.2 Book value per common share was resilient with

a 5% increase year over year, and we continue buying back common shares, including $1.1 billion since the start of the year,

demonstrating our steadfast commitment to enhancing shareholder value.”

— Colin Simpson, Manulife Chief Financial Officer

1 Percentage growth/decline in net income attributed to shareholders is stated on a constant exchange rate basis and is a non-GAAP ratio.

2 2024 quarterly and year-to-date core earnings, NBV, core EPS, core ROE, adjusted BV per common share, and financial leverage ratio have been updated to

align with the presentation of Global Minimum Taxes (“GMT”) in 2025. See section A7 “Global Minimum Taxes (GMT)” in our 2Q25 MD&A for more information.

3 Financial leverage ratio and adjusted book value per common share are non-GAAP ratios.

4 For more information on net flows, gross flows and average asset under management and administration (“average AUMA”), see “Non-GAAP and other financial

measures” in our 2Q25 MD&A. In this news release, percentage growth/declines in net flows, gross flows, and average AUMA are stated on a constant

exchange rate basis.


Manulife Financial Corporation – Second Quarter 2025	2

Results at a Glance


($ millions, unless otherwise stated)	Quarterly Results			YTD Results
($ millions, unless otherwise stated)	2Q25	2Q24	Change	2025	2024	Change
Net income attributed to shareholders1	$1,789	$1,042	72%	$2,274	$1,908	16%
Core earnings2	$1,726	$1,737	(2)%	$3,493	$3,447	(2)%
EPS ($)	$0.98	$0.52	88%	$1.23	$0.97	23%
Core EPS ($)2	$0.95	$0.91	2%	$1.94	$1.82	3%
ROE	15.6%	9.0%	6.6 pps	9.7%	8.5%	1.2 pps
Core ROE2	15.0%	15.7%	(0.7) pps	15.3%	16.0%	(0.7) pps
Book value per common share ($)	$24.90	$23.71	5%	$24.90	$23.71	5%
Adjusted BV per common share ($)2,3	$35.78	$33.32	7%	$35.78	$33.32	7%
Financial leverage ratio (%)2,3	23.6%	25.0%	(1.4) pps	23.6%	25.0%	(1.4) pps
APE sales	$2,230	$1,907	15%	$4,919	$3,790	26%
New business CSM	$882	$628	37%	$1,789	$1,286	34%
NBV2	$846	$691	20%	$1,753	$1,332	27%
Global WAM net flows ($ billions)4	$0.9	$0.1	417%	$1.4	$6.8	(80)%

Results by Segment


($ millions, unless otherwise stated)	Quarterly Results			YTD Results
($ millions, unless otherwise stated)	2Q25	2Q24	Change	2025	2024	Change
Asia (US$)
Net income attributed to shareholders	$600	$424	44%	$1,035	$694	49%
Core earnings2	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%
NBV2	451	346	28%	908	669	35%
Canada
Net income attributed to shareholders	$390	$79	394%	$612	$352	74%
Core earnings	419	402	4%	793	766	4%
APE sales	345	520	(34)%	836	970	(14)%
New business CSM	100	76	32%	191	146	31%
NBV	161	159	1%	341	316	8%
U.S. (US$)
Net income attributed 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%
NBV	46	41	12%	94	78	21%
Global WAM
Net income attributed to shareholders	$482	$350	36%	$925	$715	25%
Core earnings2	463	386	19%	917	735	22%
Gross flows ($ billions)4	43.8	41.4	5%	94.1	86.9	5%
Average AUMA ($ billions)4	1,005	933	7%	1,022	917	9%
Core EBITDA margin (%)	30.1%	26.3%	380 bps	29.2%	25.9%	330 bps

1 The Evident AI Index for Insurance assesses AI maturity across 30 of the most prominent insurance companies in North America and Europe, measuring

progress across four key categories: Talent, Innovation, Leadership, and Transparency.

2 Announced in July 2025, based on 2024 new business sales.

3 The Dubai International Financial Centre is a special economic zone in Dubai designed to facilitate financial and business activities in the Middle East, Africa

and South Asia region.

4 Maven Clinic, Meet Maven, 2024.


Manulife Financial Corporation – Second Quarter 2025	3

Strategic Highlights

We are embedding AI across our business, accelerating our journey to become a Digital, Customer Leader and

earning the top spot for AI maturity in our industry

In Global WAM, we launched an AI-powered sales enablement solution in U.S. Retirement, delivering real-time insights and

personalized content to enhance our sales operation and productivity, improve our sales close ratio, and drive revenue growth.

This doubled the number of sales opportunities compared with 2Q24 and reduced the time spent on information searches by

over 50%.

In Asia, we rolled out VOICE in Singapore and Japan, a multi-signal dashboard that includes call trend analysis, net sentiment

scores, topic trends and deep dive insights from call center transcripts. VOICE utilizes GenAI to categorize data, find

correlations, and customize insights by analyzing near real-time trends from customer interactions. These insights help us to

better understand customer sentiment and key interests, enhance services, improve training, and identify opportunities to

better deliver value to our customers.

In the U.S., we launched a GenAI functionality in long-term care (“LTC”) to enhance automated claims processing to

strengthen the value of our LTC business and provide insights for future innovations.

In Canada, we launched an end-to-end digital travel insurance platform that modernizes the distributor experience and

simplifies the purchasing process for Canadians and their families.

We were ranked first in the life insurance sector for AI maturity in the inaugural Evident AI Index for Insurance1, ranking in the

top five across the insurance industry overall. Our strong performance, particularly around Leadership and Transparency, is a

testament to the multi-year investments in AI across the Company, reflecting our capability in scaling AI effectively.

We continue to strengthen our distribution capabilities and expand product offerings to meet evolving customer

needs

In Asia, we demonstrated the strength of our agency force with a 23% year-over-year increase in the number of Million Dollar

Round Table (“MDRT”) members for Manulife Asia, positioning us as the third largest globally in 2025 MDRT membership.2

In addition, we became the first international life insurer to establish an office in the Dubai International Financial Centre3

dedicated to advising on and offering life insurance contracts to high-net-worth (“HNW”) customers. This strategic move

deepens our presence in the Middle East and enhances our ability to address the growing wealth and protection needs of

HNW and ultra-HNW individuals in the region.

In Global WAM, we continued to deliver comprehensive investment solutions by expanding our Global Retail product lineup

with the launch of a diversified real assets strategy in Malaysia to help investors navigate market volatility. In addition, we

introduced four new actively managed ETF series in Canada, enhancing access to diversified equity and fixed income

exposures, to meet evolving investor needs.

Furthermore, we enhanced the Manulife iFUNDS platform, making it the first integrated digital wealth solution in Singapore that

offers advisors a unified view of clients’ Unit Trust and Investment-Linked Plan (“ILP”) holdings. By integrating these into a

single platform and incorporating AI-powered ILP analytics capabilities, the enhancements streamline portfolio oversight,

accelerate transaction execution, and empower advisors to deliver more personalized and insightful financial guidance.

In Canada, we partnered with Maven Clinic, the world’s largest virtual clinic for women’s and family health4, to offer eligible

Group Benefits members 24/7 virtual access to personalized support during some of their most important stages of life,

including fertility, maternity, parenting, and menopause. This initiative addresses critical care gaps that impact women’s health

and workforce participation.

In the U.S., we expanded our wholesaling team to pursue more targeted growth strategies and accelerate our penetration

within the U.S. HNW and mass affluent markets.

1 See section A1 “Profitability” in our 2Q25 MD&A for more information on notable items attributable to core earnings and net income attributed to shareholders.

2 The reinsurance transaction with RGA Life Reinsurance Company of Canada (“RGA Canadian Reinsurance Transaction”) closed April 1, 2024.

3 Asia Other excludes Hong Kong and Japan.

4 Net of non-controlling interests (“NCI”).

5 In this news release, percentage growth/decline in organic CSM is stated on a constant exchange rate basis.

6 Post-tax contractual service margin net of NCI (“post-tax CSM net of NCI”) is a non-GAAP financial measure. For more information on non-GAAP and other

financial measures, see “Non-GAAP and other financial measures” in our 2Q25 MD&A.


Manulife Financial Corporation – Second Quarter 2025	4

Resilient earnings with strong contributions from Global WAM and Asia1

Core earnings of $1.7 billion in 2Q25 down 2% from 2Q24

Core earnings decreased as strong business growth in Global WAM, Asia and Canada was offset by unfavourable life

insurance claims experience in the U.S. and strengthened ECL provisions.

•Asia core earnings increased 13%, reflecting continued business growth, favourable claims experience and improved

impact of new business, partially offset by strengthened ECL provisions.

•Global WAM core earnings increased 19%, driven by higher net fee income from favourable market impacts over the past

12 months and positive net flows, higher performance fees and continued expense discipline, partially offset by the impact

of lower fee spreads and higher taxes.

•Canada core earnings were up 4%, as business growth in Group Insurance and higher investment spreads more than

offset the impacts of a release in ECL provision in 2Q24 and the RGA Canadian universal life reinsurance transaction.2

•U.S. core earnings decreased 53%, reflecting unfavourable life insurance claims experience, lower investment spreads

and strengthened ECL provisions.

•Corporate and Other core earnings improved by $12 million, primarily driven by lower long-term incentive compensation.

Net Income attributed to shareholders of $1.8 billion in 2Q25, $0.7 billion higher compared with 2Q24

The $0.7 billion increase in net income was driven by improved market experience. The net gain from market experience in

2Q25 reflects higher-than-expected returns on public equities and gains from derivatives and hedge accounting

ineffectiveness, partially offset by lower-than-expected returns on alternative long-duration assets, mainly related to real estate

and private equity investments.

Continued momentum in insurance new business results and positive net flows in Global WAM

APE sales, new business CSM and NBV increased 15%, 37% and 20%, respectively, reflecting continued sales

momentum and margin expansions

•Asia continued to generate strong growth in APE sales, new business CSM and NBV, with a year-over-year increase of

31%, 34% and 28%, respectively, reflecting higher sales volumes in Hong Kong and Asia Other.3 NBV margin of 40.0%

was approximately in line with the prior year quarter and increased sequentially.

•In Canada, APE sales decreased 34%, as strong participating life insurance sales were more than offset by the non-

recurrence of a large-case Group Insurance sale in 2Q24. These sales results, combined with a more favourable product

mix, drove a 1% increase in NBV. New business CSM increased 32%, reflecting the strong sales growth in Individual

Insurance.

•U.S. delivered strong new business growth this quarter, increasing APE sales, new business CSM and NBV by 40%, 59%

and 12%, respectively, reflecting continued demand for our accumulation insurance products.

Global WAM net inflows of $0.9 billion in 2Q25, $0.8 billion higher compared with net inflows of $0.1 billion in 2Q24

•Retirement net inflows of $2.0 billion in 2Q25 increased compared with net outflows of $1.3 billion in 2Q24, reflecting

higher retirement plan sales across all geographies and a large-case retirement plan redemption in the U.S. in 2Q24.

•Retail net outflows of $3.2 billion in 2Q25 increased compared with net outflows of $0.1 billion in 2Q24, driven by lower net

sales through third-party intermediaries in North America and in money markets funds in mainland China. This is partially

offset by higher net sales through our retail wealth platform.

•Institutional Asset Management net inflows of $2.1 billion in 2Q25 increased compared with net inflows of $1.4 billion in

2Q24, driven by lower redemptions in fixed income mandates, partially offset by higher redemptions in equity mandates.

New business growth continued to drive higher organic CSM and CSM balance

CSM4 was $22,316 million as at June 30, 2025

CSM increased $189 million compared with December 31, 2024. Organic CSM movement contributed $1,162 million of the

increase for the first half of 2025, representing an 11%5 growth on an annualized basis, primarily driven by the impact of new

business, interest accretion and net favourable insurance experience, partially offset by amortization recognized in core

earnings. Inorganic CSM movement was a decrease of $973 million for the same period, primarily driven by the impacts of

changes in foreign currency exchange rates. Post-tax CSM net of NCI6 was $18,527 million as at June 30, 2025.


Manulife Financial Corporation – Second Quarter 2025	5

MANAGEMENT’S DISCUSSION AND ANALYSIS

This Management’s Discussion and Analysis (“MD&A”) is current as of August 6, 2025, unless otherwise noted. This MD&A

should be read in conjunction with our unaudited Interim Consolidated Financial Statements for the three and six months

ended June 30, 2025 and the MD&A and audited Consolidated Financial Statements contained in our 2024 Annual Report.

For further information relating to our risk management practices and risk factors affecting the Company, see “Risk

Management and Risk Factors” and “Critical Actuarial and Accounting Policies” in the MD&A in our 2024 Annual Report (“2024

MD&A”) and the “Risk Management” note to the Consolidated Financial Statements in our most recent annual and interim

reports.

In this MD&A, the terms “Company”, “Manulife”, “we” and “our” mean Manulife Financial Corporation (“MFC”) and its

subsidiaries. All amounts are reported in Canadian dollars, unless otherwise indicated. Any information contained in, or

otherwise accessible through, websites mentioned in this MD&A does not form a part of this document.

CONTENTS

A.TOTAL COMPANY PERFORMANCE

1.Profitability

2.Business Performance

3.Financial Strength

4.Assets under Management and Administration

5.Impact of Foreign Currency Exchange Rates

6.Business Highlights

7.Global Minimum Taxes (“GMT”)

B.PERFORMANCE BY SEGMENT

1.Asia

2.Canada

3.U.S.

4.Global Wealth and Asset Management

5.Corporate and Other

C.RISK MANAGEMENT AND RISK

FACTORS UPDATE

1.Variable Annuity and Segregated Fund Guarantees

2.Caution Related to Sensitivities

3.Publicly Traded Equity Performance Risk Sensitivities and

Exposure Measures

4.Interest Rate and Spread Risk Sensitivities and Exposure

Measures

5.Alternative Long-duration Asset Performance Risk

Sensitivities and Exposure Measures

6.Risk Management and Risk Factors Update

D.CRITICAL ACTUARIAL AND

ACCOUNTING POLICIES

1.Critical Actuarial and Accounting Policies

2.Sensitivity to Changes in Assumptions

3.Accounting and Reporting Changes

E.OTHER

1.Outstanding Common Shares – Selected Information

2.Legal and Regulatory Proceedings

3.Non-GAAP and Other Financial Measures

4.Caution Regarding Forward-looking Statements

5.Quarterly Financial Information

6.Revenue

7.Other

1 The reinsurance transaction with the Reinsurance Group of America, Incorporated (“RGA U.S. Reinsurance Transaction”) closed January 1, 2025. The

reinsurance transaction with the RGA Life Reinsurance Company of Canada (“RGA Canadian Reinsurance Transaction”) closed April 1, 2024.

2 Percentage growth/declines in core earnings, pre-tax core earnings, total expenses, core expenses, general expenses, contractual service margin (“CSM”) net

of non-controlling interests (“NCI”), new business contractual service margin (“new business CSM”), assets under management and administration (“AUMA”),

assets under management (“AUM”), core earnings before interest, taxes, depreciation and amortization (“core EBITDA”),and Manulife Bank average net lending

assets are stated on a constant exchange rate basis, a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” below for more information.

3 The increase in Global WAM net fee income is due to higher average assets under management and administration (“average AUMA”) from the favourable

impact of markets over the last 12 months and positive net flows. For more information on average AUMA and net flows, see “Non-GAAP and Other Financial

Measures” below.


Manulife Financial Corporation – Second Quarter 2025	6

ATOTAL COMPANY PERFORMANCE

A1Profitability


	Quarterly Results			YTD Results
($ millions, unless otherwise stated)	2Q25	1Q25	2Q24	2025	2024
Net income (loss) attributed to shareholders	$1,789	$485	$1,042	$2,274	$1,908
Core earnings(1),(2)	$1,726	$1,767	$1,737	$3,493	$3,447
Diluted earnings (loss) per common share ($)	$0.98	$0.25	$0.52	$1.23	$0.97
Diluted core earnings per common share (“Core EPS”) ($)(2),(3)	$0.95	$0.99	$0.91	$1.94	$1.82
ROE	15.6%	3.9%	9.0%	9.7%	8.5%
Core return on shareholders’ equity (“Core ROE”)(2),(3)	15.0%	15.6%	15.7%	15.3%	16.0%
Expense efficiency ratio(3)	45.5%	45.9%	45.4%	45.7%	45.3%
General expenses	$1,140	$1,202	$1,225	$2,342	$2,327
Core expenses(1)	$1,689	$1,776	$1,713	$3,465	$3,386

(1)This item is a non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below for more information.

(2)2024 year-to-date core earnings, core EPS and core ROE have been updated to align with the presentation of Global Minimum Taxes (“GMT”) in 2025. See

section A7 “Global Minimum Taxes (GMT)” for more information.

(3)This item is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” below for more information.

Quarterly profitability

Manulife’s net income attributed to shareholders was $1,789 million in the second quarter of 2025 (“2Q25”) compared with

$1,042 million in the second quarter of 2024 (“2Q24”). Net income attributed to shareholders is comprised of core earnings

(consisting of items we believe reflect the underlying earnings capacity of the business), which amounted to $1,726 million in

2Q25 compared with $1,737 million in 2Q24, and items excluded from core earnings, which amounted to a net gain of $63

million in 2Q25 compared with a net charge of $695 million in 2Q24. The effective tax rate on net income (loss) attributed to

shareholders was 15% in 2Q25 compared with 19% in 2Q24 due to differences in the jurisdictional mix of earnings.

Net income attributed to shareholders in 2Q25 increased $747 million compared with 2Q24 reflecting improved market

experience, with a net gain of $113 million in 2Q25 compared with a net charge of $665 million in 2Q24, which included

realized losses of $239 million in 2Q24 from the RGA Canadian Reinsurance Transaction1. The loss from reinsurance was

primarily related to market experience from the sale of fair value through other comprehensive income (“FVOCI”) debt

instruments. There is an offsetting change in Other Comprehensive Income (“OCI”) attributed to shareholders resulting in a

neutral impact to book value. The net gain from market experience in 2Q25 primarily included higher-than-expected returns on

public equity and gains from derivatives and hedge accounting ineffectiveness, partially offset by lower-than-expected returns

on alternative long-duration assets (“ALDA”), mainly related to real estate and private equity investments.

Core earnings decreased $11 million or 2% on a constant exchange rate basis2 compared with 2Q24. The decline was driven

by unfavourable U.S. life insurance claims experience from elevated mortality on policies with high face value, and a net

increase in the provision for expected credit loss (“ECL”), and lower expected investment earnings. The reduction in core

earnings was partially offset by higher core earnings in Global Wealth and Asset Management (“Global WAM”), largely

reflecting an increase in net fee income3, higher performance fees and disciplined expense management, partially offset by the

impact of lower fee spreads and higher taxes. In addition, growth in our insurance business, favourable claims experience in

Asia and the improved impact of new business also contributed to higher core earnings. The impact of 2024 updates to

actuarial methods and assumptions was neutral in the quarter. In addition, the RGA U.S. Reinsurance Transaction1 and the

RGA Canadian Reinsurance Transaction reduced core earnings by $11 million and $9 million, respectively, in 2Q25 compared

with 2Q24.

1 This item is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” below for more information.

2 2024 year-to-date items excluded from core earnings has been updated to align with the presentation of GMT in 2025. See section A7 “Global Minimum Taxes

(GMT)” for more information.

3 The reinsurance transaction with Global Atlantic (“GA Reinsurance Transaction”) closed February 22, 2024, with an effective date of January 1, 2024.


Manulife Financial Corporation – Second Quarter 2025	7

Additional information on the change in ECL is presented in the table below:


	Quarterly Results			YTD Results
($ millions, unaudited)	2Q25	1Q25	2Q24	2025	2024
Change in ECL
Net new originations or purchases	$(14)	$-	$(2)	$(14)	$-
Changes to risk, parameters and models
Credit migration	(76)	(4)	(46)	(80)	(66)
Parameter and model updates, and other	(12)	(42)	49	(54)	96
Total (increase) recovery in ECL, pre-tax	$(102)	$(46)	$1	$(148)	$30
Total (increase) recovery in ECL, post-tax	$(83)	$(38)	$1	$(121)	$25

The increase in the ECL provision of $83 million post-tax in 2Q25 was primarily related to the credit migration of certain below-

investment grade loan investments in the U.S. and parameter updates. The ECL provision was neutral in 2Q24, reflecting the

positive macro environment, in particular improved equity markets, offset by credit migration.

Excluding the impact of the change in ECL in both 2Q25 and 2Q24, core earnings and core EPS increased 2%1 and 7%1,

respectively, on a constant exchange rate basis.

Year-to-date profitability

Net income attributed to shareholders for the six months ended June 30, 2025 was $2,274 million compared with $1,908

million for the six months ended June 30, 2024. Year-to-date core earnings amounted to $3,493 million in 2025 compared with

$3,447 million in the same period of 2024, and items excluded from year-to-date core earnings amounted to a net charge of

$1,219 million in 2025 compared with a net charge of $1,539 million2 in the same period of 2024. The effective tax rate on

year-to-date net income (loss) attributed to shareholders was 13% in 2025 compared with 20% for the same period in 2024

due to differences in the jurisdictional mix of earnings.

Year-to-date net income attributed to shareholders in 2025 increased $366 million compared with the same period of 2024

primarily due to the impact of reinsurance transactions in 2025 compared with the same period of 2024. The RGA U.S.

Reinsurance Transaction resulted in a year-to-date net loss attributed to shareholders of $740 million in 2025 compared with a

year-to-date net loss attributed to shareholders from the Global Atlantic Reinsurance Transaction3 and the RGA Canadian

Reinsurance Transaction of $763 million and $239 million, respectively, in the same period of 2024. The year-to-date net loss

on all three transactions was primarily related to market experience from the sale of FVOCI debt instruments. There is an

offsetting change in OCI attributed to shareholders resulting in a neutral impact to book value. Total year-to-date market

experience was a net charge of $1,219 million in 2025, reflecting the above-noted impact from reinsurance transactions, as

well as lower-than-expected returns on ALDA mainly related to real estate and private equity investments.

Year-to-date core earnings in 2025 increased $46 million compared with the same period of 2024. On a constant exchange

rate basis, year-to-date core earnings were 2% lower compared with the same period of 2024, reflecting a net increase in the

provision for ECL in 2025 compared with a release in 2024, unfavourable U.S. life insurance claims experience from elevated

mortality on policies with high face value, lower expected investment earnings and a charge in 2025 for estimated losses from

the California wildfires in our Property and Casualty (“P&C”) Reinsurance business. The reduction in core earnings was

partially offset by higher year-to-date core earnings in Global WAM, largely reflecting an increase in net fee income as noted

above for the quarter, higher performance fees and disciplined expense management, partially offset by the impact of lower

fee spreads and higher taxes. In addition, growth in our insurance business, favourable claims and insurance experience in

Asia and Canada, respectively, and the improved impact of new business also contributed to higher core earnings. The year-

to-date impact of 2024 updates to actuarial methods and assumptions was neutral. In addition, the RGA U.S. Reinsurance

Transaction, the RGA Canadian Reinsurance Transaction, and the GA Reinsurance Transaction reduced year-to-date core

earnings by $14 million, $13 million and $4 million, respectively, in 2025 compared with the same period of 2024.

The year-to-date increase in the ECL provision of $121 million post-tax in 2025 was driven by the same factors as noted above

for the quarter, with increased provisions for parameter and model updates that reflect the impact of a challenging economic

environment. The year-to date reduction in the provision of $25 million post-tax in the same period of 2024 was primarily due

to the same factors as noted above for 2Q24. Refer to the above Change in ECL table for details of the year-to-date change in

ECL.


Manulife Financial Corporation – Second Quarter 2025	8

Core earnings by segment is presented in the table below.


	Quarterly Results			YTD Results
($ millions, unaudited)	2Q25	1Q25	2Q24	2025	2024
Core earnings by segment(1)
Asia	$720	$705	$616	$1,425	$1,242
Canada	419	374	402	793	766
U.S.	194	361	415	555	867
Global Wealth and Asset Management	463	454	386	917	735
Corporate and Other	(70)	(127)	(82)	(197)	(163)
Total core earnings	$1,726	$1,767	$1,737	$3,493	$3,447

(1)2024 quarterly and year-to-date core earnings by segment have been updated to align with the presentation of GMT in 2025. See section A7 “Global Minimum

Taxes (GMT)” for more information.

The table below presents net income attributed to shareholders consisting of core earnings and items excluded from core

earnings.


	Quarterly Results			YTD Results
($ millions, unaudited)	2Q25	1Q25	2Q24	2025	2024
Core earnings	$1,726	$1,767	$1,737	$3,493	$3,447
Items excluded from core earnings:
Market experience gains (losses)(1)	113	(1,332)	(665)	(1,219)	(1,444)
Realized gains (losses) on debt instruments	(5)	(781)	(350)	(786)	(1,020)
Derivatives and hedge accounting ineffectiveness	74	(77)	143	(3)	101
Actual less expected long-term returns on public equity	217	(208)	11	9	227
Actual less expected long-term returns on ALDA	(172)	(275)	(450)	(447)	(705)
Other investment results	(1)	9	(19)	8	(47)
Restructuring charge	-	-	-	-	-
Reinsurance transactions, tax-related items and other(2),(3)	(50)	50	(30)	-	(95)
Total items excluded from core earnings	63	(1,282)	(695)	(1,219)	(1,539)
Net income (loss) attributed to shareholders	$1,789	$485	$1,042	$2,274	$1,908

(1)Market experience was a net gain of $113 million in 2Q25, driven by higher-than-expected returns on public equity and gains from derivatives and hedge

accounting ineffectiveness, partially offset by lower-than-expected returns on ALDA mainly related to real estate and private equity investments and net realized

losses from debt instruments which are classified as FVOCI. Market experience was a net charge of $665 million in 2Q24, primarily driven by lower-than-

expected returns on ALDA mainly related to private equity and real estate investments, net realized losses from the sale of debt instruments which are classified

as FVOCI, of which $273 million was related to the transfer of assets with respect to the RGA Canadian Reinsurance Transaction, and losses from

unfavourable foreign exchange impacts. These were partially offset by a gain from derivatives and hedge accounting ineffectiveness and a modest gain from

higher-than-expected returns on public equity.

(2)The 2Q25 net charge of $50 million was primarily driven by an accounting true-up in Asia. The 2Q24 net charge of $30 million mainly included a charge of $43

million related to the acquisition of CQS, a charge of $42 million related to GMT and a charge of $25 million related to a reinsurance recapture in Asia, partially

offset by a gain of $34 million related to the RGA Canadian Reinsurance transaction and other tax-related true-ups of $44 million. See section A7 “Global

Minimum Taxes (GMT)” for more information.

(3)2024 year-to-date comparative has been updated to align with the presentation of GMT in 2025. See section A7 “Global Minimum Taxes (GMT)” for more

information.

Net income attributed to shareholders by segment is presented in the following table.


	Quarterly Results			YTD Results
($ millions, unaudited)	2Q25	1Q25	2Q24	2025	2024
Net income (loss) attributed to shareholders by segment
Asia	$830	$624	$582	$1,454	$945
Canada	390	222	79	612	352
U.S.	36	(569)	135	(533)	27
Global Wealth and Asset Management	482	443	350	925	715
Corporate and Other	51	(235)	(104)	(184)	(131)
Total net income attributed to shareholders	$1,789	$485	$1,042	$2,274	$1,908

Expense efficiency ratio

The expense efficiency ratio is a financial measure which we use to measure progress on our strategic priority of expense

efficiency and reflects expenses that flow directly through core earnings (“core expenses”). Core expenses include core

general expenses, directly attributable maintenance expenses and directly attributable acquisition expenses for products

measured using the premium allocation approach (“PAA”) and for other products without a CSM. Core expenses exclude

certain expenses directly attributable to acquiring new business that are capitalized into the CSM instead of flowing directly

through core earnings.

Our focus on expense efficiency has enabled us to drive the benefits of scale across our businesses. We believe there are

further opportunities to leverage our global scale and operating environment, streamline processes and further digitize our

business. As a result, in 2024 we updated our medium-term target for the expense efficiency ratio from less than 50% to less

than 45%.

1 This is a non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below for more information.


Manulife Financial Corporation – Second Quarter 2025	9

Quarterly expense efficiency ratio

The expense efficiency ratio was 45.5% in 2Q25, compared with 45.4% in 2Q24. The slight increase in the ratio compared

with 2Q24 is attributed to a 3% decrease in pre-tax core earnings1 partially offset by a 3% decrease in core expenses. The

reduction in core expenses was primarily a result of disciplined expense management in Global WAM and lower expenses in

Corporate and Other largely due to lower long-term incentive compensation.

As noted above, general expenses are a component of core expenses. Total 2Q25 general expenses decreased 7% on an

actual exchange rate basis and 8% on a constant exchange rate basis compared with 2Q24, driven by the items noted above

related to the overall increase in core expenses and items excluded from core earnings. General expenses excluded from core

earnings were not significant in 2Q25 and primarily consisted of expenses related to the acquisition of CQS in 2Q24.

Year-to-date expense efficiency ratio

The year-to-date expense efficiency ratio was 45.7% in 2025, compared with 45.3% in the same period of 2024. The 0.4

percentage point increase in the year-to-date ratio compared with the same period of 2024 reflects a 2% decrease in year-to-

date pre-tax core earnings and year-to-date core expenses consistent with the same period of 2024. Year-to-date core

expenses reflect higher workforce related costs, and the inclusion of an extra quarter of ongoing operating expenses in 2025

related to our acquisition of CQS by Global WAM in 2Q24, offset by disciplined expense management in Global WAM.

General expenses are a component of core expenses. Total year-to-date general expenses in 2025 increased 1% on an actual

exchange rate basis and decreased 1% on a constant exchange rate basis compared with the same period of 2024, driven by

similar items noted above for year-to-date core expenses, as well as a reallocation of amounts within core expenses from

directly attributable maintenance to general expenses, and items excluded from core earnings. Year-to-date general expenses

excluded from core earnings were not substantial in 2025, and primarily consisted of expenses related to the acquisition of

CQS in 2024.

A2Business Performance


	Quarterly Results			YTD Results
($ millions, unless otherwise stated) (unaudited)	2Q25	1Q25	2Q24	2025	2024
Asia APE sales	$1,705	$2,027	$1,259	$3,732	$2,540
Canada APE sales	345	491	520	836	970
U.S. APE sales	180	171	128	351	280
Total APE sales(1)	2,230	2,689	1,907	4,919	3,790
Asia new business value(2)	622	657	474	1,279	909
Canada new business value	161	180	159	341	316
U.S. new business value	63	70	58	133	107
Total new business value(1),(2)	846	907	691	1,753	1,332
Asia new business CSM(3)	663	715	478	1,378	969
Canada new business CSM	100	91	76	191	146
U.S. new business CSM	119	101	74	220	171
Total new business CSM(3)	882	907	628	1,789	1,286
Asia CSM net of NCI	15,786	15,904	13,456	15,786	13,456
Canada CSM	4,133	4,052	3,769	4,133	3,769
U.S. CSM	2,386	2,329	3,522	2,386	3,522
Corporate and Other CSM	11	11	11	11	11
Total CSM net of NCI	22,316	22,296	20,758	22,316	20,758
Post-tax CSM net of NCI(2),(4)	18,527	18,524	17,150	18,527	17,150
Global WAM gross flows ($ billions)(1)	43.8	50.3	41.4	94.1	86.9
Global WAM net flows ($ billions)(1)	0.9	0.5	0.1	1.4	6.8
Global WAM assets under management and administration ($ billions)(4)	1,039.0	1,026.3	943.9	1,039.0	943.9
Global WAM total invested assets ($ billions)	10.4	10.0	9.0	10.4	9.0
Global WAM segregated funds net assets ($ billions)	295.5	287.6	270.1	295.5	270.1
Total assets under management and administration ($ billions)(4),(5)	1,608.2	1,603.1	1,481.5	1,608.2	1,481.5
Total invested assets ($ billions)(5)	438.5	445.7	410.6	438.5	410.6
Segregated funds net assets ($ billions)(5)	436.6	428.6	406.1	436.6	406.1

(1)For more information on this metric, see “Non-GAAP and Other Financial Measures” below.

(2)2024 quarterly and year-to-date new business value and post-tax CSM net of NCI have been updated to include the impact of GMT, consistent with 2025. See

section A7 “Global Minimum Taxes (GMT)” for more information.

(3)New business CSM is net of NCI.

(4)This item is a non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below for more information.

(5)See section A4 below for more information.

1 Percentage growth/declines in APE sales and NBV are stated on a constant exchange rate basis.

2 Asia Other excludes Hong Kong and Japan.

3 For more information on this metric, see “Non-GAAP and Other Financial Measures” below. In addition, 2024 NBV margin was updated to include the impact of

GMT, consistent with 2025. See section A7 “Global Minimum Taxes (GMT)” for more information.

4 Percentage growth/declines in organic CSM is stated on a constant exchange rate basis.


Manulife Financial Corporation – Second Quarter 2025	10

Annualized premium equivalent (“APE”) sales were $2.2 billion in 2Q25, an increase of 15%1 compared with 2Q24, new

business value (“NBV”) was $846 million in 2Q25, an increase of 20%1 compared with 2Q24 and new business CSM was

$882 million, an increase of 37% compared with 2Q24. New business results by segment were as follows:

•Asia continued to generate strong growth in APE sales, NBV and new business CSM in 2Q25, with an increase of 31%,

28%, and 34%, respectively, compared with 2Q24, reflecting higher sales volumes in Hong Kong and Asia Other.2 NBV

margin3 of 40.0% was approximately in line with 2Q24, and increased sequentially compared with the first quarter of 2025

(“1Q25”).

•Canada APE sales decreased 34% in 2Q25, as strong participating life insurance sales were more than offset by the non-

recurrence of a large-case Group Insurance sale in 2Q24. These sales results, combined with a more favourable product

mix, drove a 1% increase in NBV. New business CSM increased 32% compared with 2Q24, reflecting the strong sales

growth in Individual Insurance.

•U.S. delivered strong new business growth in 2Q25, increasing APE sales, NBV and new business CSM by 40%, 12%

and 59%, respectively, compared with 2Q24, reflecting continued demand for our accumulation insurance products.

Year-to-date APE sales were $4,919 million in 2025, an increase of 26% compared with the same period of 2024, year-to-

date NBV was $1,753 million in 2025, an increase of 27% compared with the same period of 2024 and year-to-date new

business CSM was $1,789 million in 2025, an increase of 34% compared with the same period of 2024. New business results

by segment were as follows:

•Asia year-to-date APE sales, NBV and new business CSM increased 41%, 35%, and 36%, respectively, in 2025

compared with the same period of 2024, reflecting higher sales volumes in Hong Kong and Asia Other. NBV margin was

39.0% in 2025 compared with 41.3% in the same period of 2024.

•Canada year-to-date APE sales decreased 14% in 2025 compared with the same period of 2024, driven by similar factors

as mentioned above for the quarter. These sales results, combined with a more favourable product mix, drove an 8%

increase in year-to-date NBV. New business CSM increased 31% compared with the same period of 2024, reflecting the

strong sales growth in Individual Insurance.

•U.S. delivered strong new business growth in 2025, increasing year-to-date APE sales, NBV and new business CSM by

21%, 21% and 24%, respectively, compared with the same period of 2024, reflecting continued demand for our

accumulation insurance products.

CSM net of NCI was $22,316 million as at June 30, 2025, an increase of $189 million compared with December 31, 2024.

Organic CSM movement was an increase of $1,162 million in the first half of 2025, representing an 11% growth on an

annualized basis4, primarily driven by the impact of new business, interest accretion and net favourable insurance experience,

partially offset by amortization recognized in core earnings. Inorganic CSM movement was a decrease of $973 million in the

first half of 2025, driven by the unfavourable impacts of changes in foreign currency exchange rates as well as the net impact

of both reinsurance transactions and markets.

Global WAM reported net inflows were $0.9 billion in 2Q25 compared with net inflows of $0.1 billion in 2Q24:

•Retirement net inflows of $2.0 billion in 2Q25 increased compared with net outflows of $1.3 billion in 2Q24, reflecting

higher retirement plan sales across all geographies and a large-case retirement plan redemption in the U.S. in 2Q24.

•Retail net outflows of $3.2 billion in 2Q25 increased compared with net outflows of $0.1 billion in 2Q24, driven by lower net

sales through third-party intermediaries in North America and in money markets funds in mainland China. This is partially

offset by higher net sales through our retail wealth platform.

•Institutional Asset Management net inflows of $2.1 billion in 2Q25 increased compared with net inflows of $1.4 billion in

2Q24, driven by lower redemptions in fixed income mandates, partially offset by higher redemptions in equity mandates.

Year-to-date net inflows were $1.4 billion in 2025, compared with net inflows of $6.8 billion in the same period of 2024. The

decrease was primarily driven by net outflows in Retail, due to lower net sales through third party intermediaries, partially offset

by higher net sales through our retail wealth platform, and higher net outflows in Retirement, due to higher retirement plan

redemptions and higher net member withdrawals in North America. This was partially offset by increased net inflows in

Institutional Asset Management, driven by lower redemptions in fixed income mandates.

1 The net redemption of capital instruments consists of the redemption of $1.0 billion of subordinated debt and the issuance of $0.5 billion of subordinated debt in

2Q25.

2 These items are non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below for more information. Post-tax CSM and adjusted book

value have been updated to include the impact of GMT, consistent with 2025. See section A7 “Global Minimum Taxes (GMT)” for more information.

3 Includes cash & cash equivalents, comprised of cash on deposit, Canadian and U.S. Treasury Bills and high quality short-term investments, and marketable

assets, comprised of investment grade government and agency bonds, investment grade corporate bonds, investment grade securitized instruments, publicly

traded common stocks and preferred shares. Included in this balance is $15.6 billion of encumbered cash and cash equivalents and marketable securities as at

June 30, 2025 (December 31, 2024 - $15.6 billion).


Manulife Financial Corporation – Second Quarter 2025	11

A3Financial Strength


	Quarterly Results			YTD Results
(unaudited)	2Q25	1Q25	2Q24	2025	2024
MLI’s LICAT ratio(1)	136%	137%	139%	136%	139%
Financial leverage ratio(2),(3)	23.6%	23.9%	25.0%	23.6%	25.0%
Consolidated capital ($ billions)(3),(4)	$78.0	$80.4	$76.4	$78.0	$76.4
Book value per common share ($)	$24.90	$25.88	$23.71	$24.90	$23.71
Adjusted book value per common share ($)(2),(3)	$35.78	$36.66	$33.32	$35.78	$33.32

(1)This item is disclosed under the Office of the Superintendent of Financial Institutions (“OSFI”) Life Insurance Capital Adequacy Test Public Disclosure

Requirements guideline.

(2)This item is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” below for more information.

(3)2024 financial leverage ratio, consolidated capital and adjusted book value per common share have been updated to include the impact of GMT, consistent with

2025. See section A7 “Global Minimum Taxes (GMT)” for more information.

(4)This item is a capital management measure. For more information on this metric, see “Non-GAAP and Other Financial Measures” below.

The Life Insurance Capital Adequacy Test (“LICAT”) ratio for The Manufacturers Life Insurance Company (“MLI”) as at

June 30, 2025 was 136% compared with 137% as at March 31, 2025. The decrease was driven by common share buybacks,

the net redemption of subordinated debt, and market movements, partially offset by an update from OSFI to lower the capital

charge on certain infrastructure assets in Canada.

MFC’s LICAT ratio was 124% as at June 30, 2025 compared with 126% as at March 31, 2025, with the decrease driven by

similar factors that impacted the movement in MLI’s LICAT ratio. The difference between the MLI and MFC ratios as at June

30, 2025 was largely due to the $6.3 billion of MFC senior debt outstanding that does not qualify as available capital at the

MFC level but, based on the form it was down-streamed, qualifies as regulatory capital for MLI.

MFC’s financial leverage ratio as at June 30, 2025 was 23.6%, a decrease of 0.3 percentage points from 23.9% as at March

31, 2025. The decrease was driven by the net redemption of capital instruments1 and the impact of a stronger Canadian dollar

on foreign currency denominated debt, partially offset by a decrease in total equity. The decrease in total equity was driven

mainly by dividends, common share buybacks, and total comprehensive income, which was also impacted by a stronger

Canadian dollar and market movements.

MFC’s consolidated capital was $78.0 billion as at June 30, 2025, a decrease of $1.9 billion compared with $79.9 billion as

at December 31, 2024. The decrease was primarily driven by a decrease in total equity and the net redemption of capital

instruments, partially offset by higher post-tax CSM2. The decrease in total equity was mainly driven by dividends and common

share buybacks, and total comprehensive income, which was also impacted by a stronger Canadian dollar and market

movements.

Cash and cash equivalents and marketable securities3 was $260.8 billion as at June 30, 2025 compared with $263.3 billion

as at December 31, 2024. The decrease of $2.5 billion was primarily driven by the impact of unfavourable changes in foreign

exchange rates, partially offset by the impact of lower interest rates, and growth in equity markets.

Book value per common share as at June 30, 2025 was $24.90, a 3% decrease compared with $25.63 as at December 31,

2024. The number of common shares outstanding was 1,703 million as at June 30, 2025, a net decrease of 26 million shares

from 1,729 million as at December 31, 2024, primarily driven by common share buybacks. On February 19, 2025, we

announced a new Normal Course Issuer Bid to purchase for cancellation up to 51.5 million shares, representing approximately

3% of outstanding common shares.

Adjusted book value per common share as at June 30, 2025 was $35.78, a 1% decrease compared with $36.25 as at

December 31, 2024, driven by a decrease in the adjusted book value2 and a lower number of common shares outstanding.

Adjusted book value decreased $1.7 billion due to a reduction in total common shareholders’ equity partially offset by an

increase in post-tax CSM, net of NCI. The decrease in common shareholders’ equity was mainly driven by dividends and

common share buybacks, and total comprehensive income, which was also impacted by a stronger Canadian dollar and

market movements.

A4Assets under Management and Administration (“AUMA”)

AUMA as at June 30, 2025 was $1.6 trillion, an increase of 3% compared with December 31, 2024, primarily due to the

favourable impact of equity markets, partially offset by the transfer of invested assets related to the RGA U.S. Reinsurance

Transaction. Total invested assets decreased 1% on an actual exchange rate basis, primarily due to the impact of the RGA

U.S. Reinsurance Transaction. Segregated funds net assets were in line on an actual exchange rate basis.

1 The Evident AI Index for Insurance assesses AI maturity across 30 of the most prominent insurance companies in North America and Europe, measuring

progress across four key categories: Talent, Innovation, Leadership, and Transparency.

2 Announced in July 2025, based on 2024 new business sales.

3 The Dubai International Financial Centre is a special economic zone in Dubai designed to facilitate financial and business activities in the Middle East, Africa

and South Asia region.

4 Maven Clinic, Meet Maven, 2024.


Manulife Financial Corporation – Second Quarter 2025	12

A5Impact of Foreign Currency Exchange Rates

Changes in foreign currency exchange rates from 2Q24 to 2Q25 increased core earnings by $27 million in 2Q25, primarily due

to a weaker Canadian dollar relative to the Japanese Yen. Changes in foreign currency exchange rates increased year-to-date

core earnings by $105 million in 2025 compared with the same period of 2024, primarily due to a weaker Canadian dollar

relative to the U.S. dollar. The impact of foreign currency exchange rates on items excluded from core earnings does not

provide relevant information given the nature of those items.

A6Business Highlights