Q2 2026 Report to Shareholder (LIVE)

Second Quarter

Report to

Shareholders

Three and six months ended

June 30, 2026

Manulife Financial Corporation

1 Insurance new business metrics comprise annualized premium equivalent (“APE”) sales, new business contractual service margin net of NCI (“new business

CSM”), and new business value (“NBV”).

2 Core earnings is non-GAAP financial measure. For more information on non-GAAP and other financial measures, see “Non-GAAP and other financial

measures” in our 2Q26 Management’s Discussion and Analysis (“2Q26 MD&A”).

3 Percentage growth/declines in core earnings, diluted core earnings per common share (“core EPS”), diluted earnings (loss) per share (“EPS”), and new

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

4 Core EPS, core ROE, and expense efficiency ratio are non-GAAP ratios.

5 Life Insurance Capital Adequacy Test (“LICAT”) ratio of The Manufacturers Life Insurance Company (“MLI”) as at June 30, 2026. LICAT ratio is disclosed under

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

6 For more information on APE sales, NBV and net flows, see “Non-GAAP and other financial measures” in our 2Q26 MD&A. Percentage growth/decline in APE

sales, NBV and net flows are stated on a constant exchange rate basis.

7 Top-line refers to APE sales.

8 The transaction is expected to close in Q4 2026, subject to the receipt of regulatory approvals, see "Caution regarding forward-looking statements" below.

9 CSM net of non-controlling interests (“NCI”). Percentage growth in CSM net of NCI is stated on a constant exchange rate basis and is a non-GAAP ratio.


Manulife Financial Corporation – Second Quarter 2026	1

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

period ended June 30, 2026, delivering double-digit growth in core EPS and all three insurance new

business metrics.1

Key highlights for the second quarter of 2026 (“2Q26”) include:

•Core earnings2 of $1.9 billion, up 12% on a CER basis3 compared with the second quarter of 2025 (“2Q25”)

•Net income attributed to shareholders of $2.1 billion, up $0.3 billion from 2Q25

•Core EPS4 of $1.09, up 16%3 from 2Q25. EPS of $1.20, up 22%3 from 2Q25

•Core ROE4 of 16.3% and ROE of 18.0%

•LICAT ratio5 of 136%

•APE sales up 21%6, new business CSM up 16%3 and new business value (“NBV”) up 10%6 from 2Q25

•Global Wealth and Asset Management (“Global WAM”) net inflows6 of $0.4 billion, compared with $0.9 billion of net inflows

in 2Q25

“Manulife delivered a strong second quarter, with disciplined execution driving momentum against our strategic priorities. Core

EPS increased 16% year over year, and all three insurance segments delivered double-digit top-line growth7, underscoring the

strength of our diversified portfolio. In Asia, core earnings grew 21%, complemented by double-digit growth across all three

new business metrics, while Global WAM expanded its margin and generated positive net flows, including strong contributions

from our recently acquired CQS and Comvest businesses.

“Manulife continued to strengthen our distribution capabilities and advance product innovation, including the launch of new

high-net-worth insurance solutions, the expansion of ETF-based investment offerings in Global WAM, and a new advisor

network in the U.S. We are also accelerating the integration of AI across our business to enhance customer and distributor

experiences, improve efficiency, and deliver tangible value. Recent industry recognition underscores our AI leadership and

ability to scale innovation globally. The long-term care reinsurance transaction announced today will further reduce our risk

profile, highlighting how we’re continuing to strengthen our business through innovative actions.8 We remain well positioned to

continue executing on our strategy to generate sustainable growth over the long-term.”

— Phil Witherington, Manulife President & Chief Executive Officer

“Our CSM balance9 increased 20% year over year, reflecting strong new business growth and further strengthening our future

earnings capacity. We also delivered positive operating leverage this quarter, achieving an expense efficiency ratio of 44.5%.4

Supported by our strong balance sheet and low financial leverage, we remained disciplined in our capital deployment,

returning $2.6 billion to shareholders through dividends and share buybacks in the first half of 2026. Core ROE of 16.3%

increased 130 basis points compared with 2Q25, reflecting the strength of our high-growth businesses. Together, these results

underscore our continued focus on high-quality growth and long-term value creation.”

— 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 Adjusted book value per common share and financial leverage ratio are non-GAAP ratios.

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

measures” in our 2Q26 MD&A. Percentage growth/decline in gross flows and average AUMA are stated on a constant exchange rate basis.

4 Core EBITDA margin is a non-GAAP ratio.


Manulife Financial Corporation – Second Quarter 2026	2

Results at a Glance


($ millions, unless otherwise stated)	Quarterly Results			YTD Results
($ millions, unless otherwise stated)	2Q26	2Q25	Change	2026	2025	Change
Net income attributed to shareholders1	$2,110	$1,789	17%	$3,257	$2,274	45%
Core earnings	$1,923	$1,726	12%	$3,759	$3,493	10%
EPS ($)	$1.20	$0.98	22%	$1.85	$1.23	52%
Core EPS ($)	$1.09	$0.95	16%	$2.15	$1.94	14%
ROE	18.0%	15.6%	2.4 pps	14.1%	9.7%	4.4 pps
Core ROE	16.3%	15.0%	1.3 pps	16.4%	15.3%	1.1 pps
Book value per common share ($)	$27.48	$24.90	10%	$27.48	$24.90	10%
Adjusted book value per common share ($)2	$41.12	$35.78	15%	$41.12	$35.78	15%
Financial leverage ratio (%)2	22.2%	23.6%	(1.4) pps	22.2%	23.6%	(1.4) pps
APE sales	$2,698	$2,230	21%	$5,519	$4,919	13%
New business CSM	$1,024	$882	16%	$2,043	$1,789	16%
NBV	$929	$846	10%	$1,873	$1,753	8%
Global WAM net flows ($ billions)	$0.4	$0.9	(57)%	$(3.9)	$1.4	-

Results by Segment


($ millions, unless otherwise stated)	Quarterly Results			YTD Results
($ millions, unless otherwise stated)	2Q26	2Q25	Change	2026	2025	Change
Asia (US$)
Net income attributed to shareholders	$768	$600	28%	$1,201	$1,035	17%
Core earnings	616	520	21%	1,214	1,012	21%
APE sales	1,496	1,233	21%	3,095	2,645	15%
New business CSM	561	480	17%	1,146	978	16%
NBV	506	451	13%	1,039	908	14%
Canada
Net income attributed to shareholders	$306	$390	(22)%	$544	$612	(11)%
Core earnings	379	419	(10)%	731	793	(8)%
APE sales	426	345	23%	842	836	1%
New business CSM	129	100	29%	232	191	21%
NBV	162	161	1%	314	341	(8)%
U.S. (US$)
Net income attributed to shareholders	$110	$26	323%	$211	$(371)	-
Core earnings	218	141	55%	459	392	17%
APE sales	145	130	12%	300	250	20%
New business CSM	85	86	(1)%	168	156	8%
NBV	48	46	4%	92	94	(2)%
Global WAM
Net income attributed to shareholders	$514	$482	7%	$917	$925	2%
Core earnings	505	463	9%	953	917	6%
Gross flows ($ billions)3	58.7	43.8	33%	114.8	94.1	23%
Average AUMA ($ billions)3	1,162	1,005	15%	1,140	1,022	13%
Core EBITDA margin (%)4	31.2%	30.1%	110 bps	30.1%	29.2%	90 bps

1 Current ranking announced in July 2026 and is based on 2025 full year performance. Manulife ranked third globally among multinational insurers.

2 See section A1 “Profitability” in our 2Q26 MD&A for more information on notable items attributable to core earnings and net income attributed to shareholders.


Manulife Financial Corporation – Second Quarter 2026	3

Strategic Highlights

We are differentiating through superior distribution and product innovation

In Asia, we demonstrated the strength and caliber of our agency force with Manulife Asia achieving a 9% year-over-year

increase in the number of Million Dollar Round Table (“MDRT”) members, the highest increase among top 10 multinational

insurers1 in 2026. This reflects continued progress in scaling our high-quality agency force, supported by investments in

Manulife Business Academy training programs, AI-enabled capability building, and broader advisor excellence initiatives.

We launched two high-net-worth (“HNW”) insurance solutions this quarter. The first is an indexed HNW Takaful solution, the

first of its kind, designed to address the evolving wealth, protection, and legacy planning needs of affluent families and

business owners across the Middle East, North Africa and South Asia. And the second is a HNW insurance savings solution

that uniquely combines the long-term stability and wealth preservation benefits of a participating life insurance policy with

investment diversification through the addition of a Manulife | CQS asset-backed securities strategy.

In Global WAM, we expanded our ETF-based investment offerings to our retail customers across North America, with the

launch of new asset allocation ETFs and ETF-based mutual funds in Canada, and the John Hancock Hedged Equity ETF in

the U.S., broadening access to actively managed, outcome-oriented investment solutions.

In the U.S., we established the Longer. Healthier. Better. Network, an aligned community of independent licensed financial

advisors committed to supporting customer longevity, wellness and financial well-being through our differentiated insurance

and wealth-planning solutions. Additionally, we broadened the customer reach of our life insurance solutions with an enhanced

variable universal life offering that delivers greater protection, flexibility, and long‑term value, better aligning our suite of

solutions with evolving customer needs and supporting future growth.

We are making continued progress on our AI strategic priority, with industry recognition of our leadership and

execution

We were named the number one life insurer for AI maturity for the second consecutive year in the 2026 Evident AI Index for

Insurance, while ranking first among North American insurers, and in the top three overall among 30 major insurers in North

America and Europe. This recognition highlights our ability to scale AI-driven innovation across our global footprint, delivering

measurable business value and impact, and accelerating progress on our strategic priority to operate as an AI-powered

organization.

In Canada, we were recognized as the Model Insurer for Data, Analytics & AI by Celent, a global financial services research

and advisory firm, for our innovative use of AI in underwriting through the Manulife Automated Underwriting Decision Engine

(“MAUDE”), reflecting our AI leadership in elevating advisor and customer experiences by accelerating access to coverage and

enhancing operational efficiency.

In Global WAM, we advanced scalable AI capabilities with the launch of new agentic AI solutions, bringing the portfolio to 13

solutions across AI-powered document intelligence readers and knowledge assistants. These capabilities are enhancing

customer experience, improving operational efficiency, and creating a model for scaling AI across Manulife.

In Asia, we became a Core Participating Insurer in the Hong Kong Insurance Authority’s AI Cohort Programme, underscoring

our commitment to advancing the responsible adoption of AI and supporting Hong Kong’s development as a regional hub for AI

innovation.

We are advancing our health and longevity leadership through partnerships, insights, and wellness offerings

We reinforced our leadership in longevity with the launch of the Longevity Preparedness Tool, a first‑of‑its‑kind personalized

assessment developed in collaboration with the MIT AgeLab and our U.S. insurance and retirement businesses, helping

individuals assess and improve their readiness for living longer, healthier, better lives.

In Asia, we activated our strategic partnership with Bupa International Limited (“Bupa”) in Hong Kong, expanding customer

access to Bupa’s healthcare provider partners. This initial phase of enhancements quadrupled our medical specialist network

to more than 900 providers, providing customers with greater choice for healthcare.

In Global WAM, we enhanced health and wellness offerings for eligible Canada Group Retirement plan members and private

wealth clients, providing preferred-rate access to select health and wellness solutions, reinforcing our focus on health, wealth,

and longevity.

In Canada, we released our 2025 Wellness Report, providing unique insights into the evolving health and wellness needs of

Canada’s workforce and helping our group benefits plan sponsors make more informed decisions about the programs and

benefits that can best meet the needs of their employees.

Continued business growth supported double-digit increase in core earnings2

Core earnings of $1.9 billion in 2Q26, up 12% from 2Q25

The increase in core earnings reflected strong business growth in Asia and Global WAM, a lower charge in the expected credit

loss (“ECL”) provision, and the net positive impact of 2025 updates to actuarial methods and assumptions. The increase was

partially offset by lower investment spreads in the U.S., the impact of the eMPF transition in Hong Kong, and more

unfavourable net insurance experience.

1 For more information on new business value margin (“NBV margin”), see “Non-GAAP and other financial measures” in our 2Q26 MD&A.

2 Percentage growth / decline in our CSM net of NCI balance from organic CSM movement is stated on a constant exchange rate basis and is a non-GAAP ratio.

This percentage is calculated as the annualized year-to-date change in organic CSM net of NCI divided by the December 31, 2025 CSM net of NCI balance.

3 Post-tax contractual service margin net of NCI (“post-tax CSM net of NCI”) is a non-GAAP financial measure.


Manulife Financial Corporation – Second Quarter 2026	4

•Asia core earnings increased 21%, reflecting continued business growth and the net positive impact of 2025 updates to

actuarial methods and assumptions, partially offset by less favourable insurance experience.

•Global WAM core earnings increased 9%, primarily driven by higher net fee income from favourable market impacts over

the past 12 months and contributions from the Manulife | Comvest business, partially offset by the impact of the eMPF

transition in Hong Kong and higher expenses supporting business growth.

•Canada core earnings decreased 10%, reflecting unfavourable claims experience, and higher expenses in Group

Insurance to support the growing business and transformational investments to elevate customer experience. This was

partially offset by the net positive impact of 2025 updates to actuarial methods and assumptions, an ECL provision

release, and higher investment spreads.

•U.S. core earnings increased 55%, reflecting improved claims experience in both life and long-term care and a lower

charge in the ECL provision, partially offset by lower investment spreads.

•Corporate and Other core earnings decreased by $45 million, primarily driven by a higher accrual for withholding taxes,

lower earnings on surplus assets, and higher expenses.

Net Income attributed to shareholders of $2.1 billion in 2Q26, $0.3 billion higher compared with 2Q25

The $0.3 billion increase in net income was driven by core earnings growth and more favourable market experience. The net

gain from market experience in 2Q26 reflected higher-than-expected returns on public equity, partially offset by lower-than-

expected returns on alternative long-duration assets, mainly related to infrastructure, private equity and real estate

investments.

Double-digit growth across insurance new business metrics and positive net flows in Global WAM

APE sales, new business CSM and NBV increased 21%, 16%, and 10%, respectively, highlighting the strength of our

diversified business portfolio

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

21%, 17% and 13%, respectively, primarily driven by growth in Hong Kong, Singapore and Japan. NBV margin was

36.3%.1

•Canada APE sales increased 23%, driven by higher sales in large-case Group Insurance and participating life insurance.

New business CSM also grew 29%, reflecting higher sales, and increased margins in Individual Insurance and Annuities.

NBV increased 1%, as higher sales more than offset the impacts of lower margins and a less favourable product mix in

Group Insurance.

•In the U.S., APE sales increased 12%, supported by product enhancements and distribution expansion. The impact of

higher sales combined with a less favourable product mix resulted in a 4% increase in NBV and a 1% decrease in new

business CSM.

Global WAM net inflows of $0.4 billion in 2Q26, compared with net inflows of $0.9 billion in 2Q25

•Retirement net outflows were $4.9 billion in 2Q26 compared with net inflows of $2.0 billion in 2Q25. The variance reflects

higher retirement plan redemptions, higher net member withdrawals reflecting higher account balances from market

growth in North America, and a large-case plan sponsor sale in the U.S. in 2Q25.

•Retail net outflows were $1.4 billion in 2Q26 compared with net outflows of $3.2 billion in 2Q25. The variance is primarily

driven by higher net flows in mainland China, third-party intermediaries in the U.S., and in our retail wealth business in

Canada, partially offset by lower net flows in Canada active mutual funds through third-party intermediaries.

•Institutional Asset Management net inflows were $6.7 billion in 2Q26 compared with net inflows of $2.1 billion in 2Q25.

The variance is attributed to higher net flows from fixed income mandates, money market mandates in mainland China,

infrastructure mandates, and private credit mandates in the Manulife | Comvest business, along with higher net flows from

Manulife | CQS products.

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

CSM was $27,263 million as at June 30, 2026

CSM increased $2,294 million compared with December 31, 2025. Organic CSM movement contributed $1,191 million of the

increase, representing a 10% annualized growth in our CSM net of NCI balance2, 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 an increase of $1,103 million, driven by the favourable impacts of changes in foreign

currency exchange rates and equity market performance. Post-tax CSM net of NCI3 was $22,667 million as at June 30, 2026.


Manulife Financial Corporation – Second Quarter 2026	5

MANAGEMENT’S DISCUSSION AND ANALYSIS

This Management’s Discussion and Analysis (“MD&A”) is current as of August 5, 2026, 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, 2026 and the MD&A and audited Consolidated Financial Statements contained in our 2025 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 2025 Annual Report (“2025

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

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

Sensitivities and Risk Exposure Measures

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

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 Percentage growth/declines in core earnings, pre-tax core earnings, 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.

2 The increase in Global WAM net fee income is due to higher average assets under management and administration (“average AUMA”), mainly reflecting the

favourable impact of markets over the past 12 months. For more information on average AUMA, see “Non-GAAP and Other Financial Measures” below.

3 Formerly Comvest Credit Partners.


Manulife Financial Corporation – Second Quarter 2026	6

ATOTAL COMPANY PERFORMANCE

A1Profitability


	Quarterly Results			YTD Results
($ millions, unless otherwise stated)	2Q26	1Q26	2Q25	2026	2025
Net income (loss) attributed to shareholders	$2,110	$1,147	$1,789	$3,257	$2,274
Core earnings(1)	$1,923	$1,836	$1,726	$3,759	$3,493
Diluted earnings (loss) per common share ($)	$1.20	$0.65	$0.98	$1.85	$1.23
Diluted core earnings per common share (“Core EPS”) ($)(2)	$1.09	$1.06	$0.95	$2.15	$1.94
ROE	18.0%	10.1%	15.6%	14.1%	9.7%
Core return on shareholders’ equity (“Core ROE”)(2)	16.3%	16.5%	15.0%	16.4%	15.3%
Expense efficiency ratio(2)	44.5%	46.0%	45.5%	45.2%	45.7%
General expenses	$1,248	$1,251	$1,140	$2,499	$2,342
Core expenses(1)	$1,826	$1,827	$1,689	$3,653	$3,465

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

(2)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 $2,110 million in the second quarter of 2026 (“2Q26”) compared with

$1,789 million in the second quarter of 2025 (“2Q25”). 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 $1,923 million in

2Q26 compared with $1,726 million in 2Q25, and items excluded from core earnings, which amounted to a net gain of $187

million in 2Q26 compared with a net gain of $63 million in 2Q25. The effective tax rate on net income (loss) attributed to

shareholders was 17% in 2Q26 compared with 15% in 2Q25 primarily due to differences in the jurisdictional mix of earnings.

Net income attributed to shareholders in 2Q26 increased $321 million compared with 2Q25, reflecting growth in core earnings

and more favourable market experience. Total market experience was a net gain of $201 million in 2Q26 primarily related to

higher-than-expected returns on public equity, partially offset by lower-than-expected returns on alternative long-duration

assets (“ALDA”), mainly related to infrastructure, private equity and, real estate investments.

Core earnings increased $197 million or 12% on a constant exchange rate (“CER”) basis1 compared with 2Q25. The increase

in our insurance business was driven by a lower charge in our provision for expected credit losses (“ECL”), improved claims

experience in the U.S., business growth, primarily in our Asia segment, and the net positive impact of 2025 updates to

actuarial methods and assumptions. This was partially offset by unfavourable insurance experience in Canada, largely driven

by higher claims, along with higher expenses in Canada Group Insurance to support the growing business and

transformational investment to elevate the customer experience, lower expected investment earnings, and less favourable

insurance experience in Asia. For Global Wealth and Asset Management (“Global WAM”), the increase in core earnings

reflected higher net fee income2 and contributions from the Manulife | Comvest business3, partially offset by the impact of the

electronic Mandatory Provident Fund (“eMPF”) transition in Hong Kong and higher expenses supporting business growth.

The following table presents information on the change in the expected credit loss for the reporting period.


($ millions, unaudited)	Quarterly Results			YTD Results
($ millions, unaudited)	2Q26	1Q26	2Q25	2026	2025
Change in ECL
Net new originations and purchases	$(11)	$(17)	$(14)	$(28)	$(14)
Changes to risk, parameters and models
Credit migration	(37)	(21)	(76)	(58)	(80)
Parameter and model updates, and other	47	(1)	(12)	46	(54)
Total (increase) recovery in ECL, pre-tax	$(1)	$(39)	$(102)	$(40)	$(148)
Total (increase) recovery in ECL, post-tax	$(1)	$(32)	$(83)	$(33)	$(121)

The change in the ECL provision was neutral in 2Q26 primarily related to parameter and model updates, reflecting the positive

macroeconomic impact of equity market growth, offset by credit migration and net new originations and purchases. The

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

grade loan investments in the U.S. and parameter updates.

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

realized loss of $732 million in the first quarter of 2025 from the sale of debt instruments which are classified as fair value through other comprehensive income

(“FVOCI”) arose from the transfer of assets with respect to the RGA U.S. Reinsurance Transaction, and had an offsetting change in other comprehensive

income (“OCI”) attributed to shareholders, resulting in a neutral impact to book value.


Manulife Financial Corporation – Second Quarter 2026	7

Year-to-date profitability

Net income attributed to shareholders for the six months ended June 30, 2026 was $3,257 million compared with $2,274

million for the six months ended June 30, 2025. Year-to-date core earnings amounted to $3,759 million in 2026 compared with

$3,493 million in the same period of 2025, and items excluded from year-to-date core earnings amounted to a net charge of

$502 million in 2026 compared with a net charge of $1,219 million in the same period of 2025. The effective tax rate on year-

to-date net income (loss) attributed to shareholders was 16% in 2026 compared with 13% for the same period in 2025

primarily due to differences in the jurisdictional mix of earnings.

Year-to-date net income attributed to shareholders in 2026 increased $983 million compared with the same period of 2025

primarily reflecting a lower net charge from market experience and growth in core earnings. Total year-to-date market

experience was a net charge of $465 million in 2026, primarily related to lower-than-expected returns on ALDA, mainly from

real estate, private equity, infrastructure, and timber investments, partially offset by higher-than-expected returns on public

equity. Market experience in 2025 included a net realized loss on the sale of debt instruments of $732 million from the transfer

of assets with respect to the RGA U.S. Reinsurance Transaction.1

Year-to-date core earnings in 2026 increased $266 million or 10% compared with the same period of 2025. The increase in our

year-to-date core earnings was mainly due to similar factors as noted above for 2Q26, and the impact of estimated losses from

California wildfires recorded in 2025 in our Property and Casualty Reinsurance business.

The year-to-date increase in the ECL provision of $33 million post-tax in 2026 reflected credit migration, partially offset by

positive parameter and model updates from the favourable macroeconomic impact of equity market growth. The year-to-date

increase in the provision of $121 million post-tax in the same period of 2025 was driven by the same factors as noted above

for 2Q25, with increased provisions for parameter and model updates that reflect the impact of a challenging economic

environment.

Core earnings by segment is presented in the following table.


	Quarterly Results			YTD Results
($ millions, unaudited)	2Q26	1Q26	2Q25	2026	2025
Core earnings by segment
Asia	$853	$820	$720	$1,673	$1,425
Canada	379	352	419	731	793
U.S.	301	331	194	632	555
Global Wealth and Asset Management	505	448	463	953	917
Corporate and Other	(115)	(115)	(70)	(230)	(197)
Total core earnings	$1,923	$1,836	$1,726	$3,759	$3,493

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


Manulife Financial Corporation – Second Quarter 2026	8

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

earnings.


	Quarterly Results			YTD Results
($ millions, unaudited)	2Q26	1Q26	2Q25	2026	2025
Core earnings	$1,923	$1,836	$1,726	$3,759	$3,493
Items excluded from core earnings:
Market experience gains (losses)(1)	201	(666)	113	(465)	(1,219)
Realized gains (losses) on debt instruments	(18)	(31)	(5)	(49)	(786)
Derivatives and hedge accounting ineffectiveness	(1)	(25)	74	(26)	(3)
Actual less expected long-term returns on public equity	421	(342)	217	79	9
Actual less expected long-term returns on ALDA	(266)	(242)	(172)	(508)	(447)
Other investment results	65	(26)	(1)	39	8
Updates to actuarial methods and assumptions that flow directly through income	-	-	-	-	-
Restructuring charge	-	-	-	-	-
Amortization of acquisition-related intangible assets(2)	(16)	(18)	-	(34)	-
Reinsurance transactions, tax-related items and other(3)	2	(5)	(50)	(3)	-
Total items excluded from core earnings	187	(689)	63	(502)	(1,219)
Net income (loss) attributed to shareholders	$2,110	$1,147	$1,789	$3,257	$2,274

(1)Market experience was a net gain of $201 million in 2Q26, driven by higher-than-expected returns from public equity, and a net gain from other investment

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

losses from debt instruments which are classified as FVOCI. 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.

(2)This item is excluded from core earnings commencing in the third quarter of 2025 (“3Q25”). See “Non-GAAP and Other Financial Measures” below for more

information.

(3)The 2Q26 net gain of $2 million was mainly related to fair value changes in long-term investment plan obligations in Global WAM. The 2Q25 net charge of $50

million was primarily driven by an accounting true-up in Asia.

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


	Quarterly Results			YTD Results
($ millions, unaudited)	2Q26	1Q26	2Q25	2026	2025
Net income (loss) attributed to shareholders by segment
Asia	$1,062	$595	$830	$1,657	$1,454
Canada	306	238	390	544	612
U.S.	153	138	36	291	(533)
Global Wealth and Asset Management	514	403	482	917	925
Corporate and Other	75	(227)	51	(152)	(184)
Total net income attributed to shareholders	$2,110	$1,147	$1,789	$3,257	$2,274

Expense efficiency ratio

We use the expense efficiency ratio to measure progress on our expense management initiatives. It reflects core expenses

which are equal to total expenses1 less those expenses reported in items excluded from core earnings. Total expenses consist

of 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.

Quarterly expense efficiency ratio

The expense efficiency ratio was 44.5% in 2Q26, compared with 45.5% in 2Q25. The 1.0 percentage point improvement in

the ratio in 2Q26 compared with 2Q25 is attributed to core expenses growing at a slower rate than pre-tax core earnings1. The

impact of the increase in core expenses mainly reflected higher workforce related costs, primarily driven by business growth,

and continued strategic investments in transformational efforts, including AI-focused initiatives, partially offset by operational

efficiencies.

Total general expenses increased in 2Q26 compared with 2Q25, driven by the items noted above related to the overall

increase in core expenses and an increase in expenses reported in items excluded from core earnings. The expenses

reported in items excluded from core earnings in 2Q26 were primarily from the amortization of acquisition-related intangible

assets in Global WAM, and in 2Q25, were not significant.

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

2 Other markets include Cambodia, Indonesia, International High Net Worth, Malaysia, Myanmar, the Philippines, and Vietnam.

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


Manulife Financial Corporation – Second Quarter 2026	9

Year-to-date expense efficiency ratio

The year-to-date expense efficiency ratio was 45.2% in 2026, compared with 45.7% in the same period of 2025. The 0.5

percentage point improvement in the year-to-date ratio in 2026 compared with the same period of 2025 reflects core expenses

growing at a slower rate than pre-tax core earnings. The year-to-date increase in core expenses was mainly due to similar

factors as noted above for 2Q26.

Total year-to-date general expenses in 2026 increased compared with the same period of 2025, driven by similar items noted

above related to the overall increase in year-to-date core expenses, and an increase in expenses reported in items excluded

from core earnings. Year-to-date general expenses excluded from core earnings in 2026 included similar items noted above for

2Q26, and in 2025, were not significant.

A2Business Performance


	Quarterly Results			YTD Results
($ millions, unless otherwise stated) (unaudited)	2Q26	1Q26	2Q25	2026	2025
Asia APE sales	$2,071	$2,193	$1,705	$4,264	$3,732
Canada APE sales	426	416	345	842	836
U.S. APE sales	201	212	180	413	351
Total APE sales(1)	2,698	2,821	2,230	5,519	4,919
Asia new business CSM(2)	777	802	663	1,579	1,378
Canada new business CSM	129	103	100	232	191
U.S. new business CSM	118	114	119	232	220
Total new business CSM(2)	1,024	1,019	882	2,043	1,789
Asia new business value	701	731	622	1,432	1,279
Canada new business value	162	152	161	314	341
U.S. new business value	66	61	63	127	133
Total new business value(1)	929	944	846	1,873	1,753
Asia CSM net of NCI	19,562	18,228	15,786	19,562	15,786
Canada CSM	4,509	4,432	4,133	4,509	4,133
U.S. CSM	3,188	2,927	2,386	3,188	2,386
Corporate and Other CSM	4	2	11	4	11
Total CSM net of NCI	27,263	25,589	22,316	27,263	22,316
Post-tax CSM net of NCI(3)	22,667	21,255	18,527	22,667	18,527
Global WAM gross flows ($ billions)(1)	58.8	56.0	43.8	114.8	94.1
Global WAM net flows ($ billions)(1)	0.5	(4.4)	0.9	(3.9)	1.4
Global WAM assets under management and administration ($ billions)(3)	1,217.3	1,110.1	1,039.0	1,217.3	1,039.0
Global WAM total invested assets ($ billions)	11.5	10.9	10.4	11.5	10.4
Global WAM segregated funds net assets ($ billions)	342.2	311.4	295.5	342.2	295.5
Total assets under management and administration ($ billions)(3),(4)	1,847.2	1,705.3	1,608.2	1,847.2	1,608.2
Total invested assets ($ billions)(4)	485.8	461.8	438.5	485.8	438.5
Segregated funds net assets ($ billions)(4)	497.9	455.7	436.6	497.9	436.6

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

(2)New business CSM is net of NCI.

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

(4)See section A4 below for more information.

Annualized premium equivalent (“APE”) sales were $2.7 billion in 2Q26, an increase of 21%1 compared with 2Q25, new

business CSM was $1,024 million in 2Q26, an increase of 16% compared with 2Q25 and new business value (“NBV”) was

$929 million in 2Q26, an increase of 10%1 compared with 2Q25. New business results by segment were as follows:

•Asia continued to deliver strong momentum in APE sales, new business CSM and NBV in 2Q26, with an increase of 21%,

17%, and 13%, respectively, compared with 2Q25, primarily driven by growth in Hong Kong, Singapore and Japan,

partially offset by a decline in Other markets2. NBV margin3 was 36.3% in 2Q26 compared with 40.0% in 2Q25.

•Canada APE sales increased 23% compared with 2Q25, driven by higher sales in large-case Group Insurance and

participating life insurance. New business CSM also grew 29% compared with 2Q25, reflecting higher sales, and

increased margins in Individual Insurance and Annuities. NBV increased 1% compared with 2Q25, as higher sales more

than offset the impacts of lower margins and a less favourable product mix in Group Insurance.

•In the U.S., APE sales increased 12% in 2Q26 compared with 2Q25, supported by product enhancements and distribution

expansion. New business CSM decreased 1% compared with 2Q25 due to product mix, partially offset by higher sales.

NBV increased 4% compared with 2Q25 due to higher sales, partially offset by product mix.

1 Percentage growth / decline in our CSM net of NCI balance from organic CSM movement is stated on a constant exchange rate basis and is a non-GAAP ratio.

This percentage is calculated as the annualized year-to-date change in organic CSM net of NCI divided by the December 31, 2025 CSM net of NCI balance.

See “Non-GAAP and Other Financial Measures” below for more information.


Manulife Financial Corporation – Second Quarter 2026	10

Year-to-date APE sales were $5.5 billion in 2026, an increase of 13% compared with the same period of 2025, year-to-date

new business CSM was $2.0 billion in 2026, an increase of 16% compared with the same period of 2025 and year-to-date

NBV was $1.9 billion in 2026, an increase of 8% compared with the same period of 2025. New business results by segment

were as follows:

•Asia year-to-date APE sales, new business CSM and NBV increased 15%, 16% and 14%, respectively, in 2026 compared

with the same period of 2025, primarily driven by growth in Hong Kong, Japan and Singapore, partially offset by a decline

in mainland China and Other markets. NBV margin was 37.3% in 2026 compared with 39.0% in the same period of 2025.

•Canada year-to-date APE sales increased 1% in 2026 compared with the same period of 2025, as higher participating life

insurance sales were mostly offset by lower sales across all group benefits markets. New business CSM increased 21%

compared with the same period of 2025, primarily reflecting higher sales in Individual Insurance and higher margins in

Annuities and Individual Insurance. Year-to-date NBV decreased 8% mainly due to lower margins and sales, as well as

less favourable product mix in Group Insurance, partially offset by higher sales in Individual Insurance.

•U.S. year-to-date APE sales increased 20% in 2026 compared with the same period of 2025, supported by product

enhancements and distribution expansion. New business CSM increased 8% compared with the same period of 2025 due

to higher sales, partially offset by product mix. NBV decreased 2% compared with the same period of 2025 due to product

mix, partially offset by higher sales.

CSM net of NCI was $27,263 million as at June 30, 2026, an increase of $2,294 million compared with December 31, 2025.

Organic CSM movement was an increase of $1,191 million in the first half of 2026, representing a 10% annualized growth in

our CSM net of NCI balance1, 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 an increase of $1,103

million in the first half of 2026, primarily driven by the favourable impacts of changes in foreign currency exchange rates and

equity market performance.

Global WAM reported net inflows were $0.4 billion in 2Q26 compared with net inflows of $0.9 billion in 2Q25: