Manulife’s Asia division reported a 17% increase in core earnings to $635 million for the third quarter of 2026, largely driven by strong performances in Hong Kong and Japan that helped mitigate a slowdown in the Chinese Mainland. This growth contributed to record group core earnings, as stated by the company.
Annualized premium equivalent (APE) sales in Asia remained relatively unchanged at $1,455 million, marking a 1% decline year over year. New business costs of service margin (CSM) held steady at $518 million, and new business value also showed no change at $491 million, with a margin of 35.3%.
“Asia delivered a robust performance in Q3 2026, with core earnings increasing 17% year-over-year,” said Steve Finch, president and chief executive of Manulife Asia. “The strength of our diversified regional business continues to position us well to navigate evolving market conditions and capture the long-term opportunities across Asia.”
Market Performance Insights
The overall results reflected significant disparity among the markets. In Hong Kong, new business CSM rose to C$385 million from C$287 million a year prior, while Japan saw an increase from C$76 million to C$104 million. Conversely, the Chinese Mainland experienced a drop in new business CSM from C$112 million to C$43 million, and Singapore’s figures fell from C$182 million to C$155 million.
Manulife attributed its core earnings growth to continued business expansion, favorable outcomes from its annual actuarial review, improved new business metrics, and enhanced claims experiences. However, these gains were slightly dampened by increased provisions for expected credit losses.
Net income attributed to shareholders from Asia decreased by 23% to $510 million, which included a charge related to the company’s operations in Vietnam. This reflected a partial impairment of a bancassurance asset and a gain from the sale of a Vietnam subsidiary.
Health Initiatives and Technological Advancements
During the quarter, Manulife established a memorandum of understanding with Ant Health to enhance health management services, digital health capabilities, and insurance technology across the region. The partnership introduced a cashless direct billing option through Alipay for eligible customers at participating healthcare providers in the Chinese Mainland.
In Singapore, the company hosted its inaugural ManulifeMOVE Carnival, attracting approximately 3,000 attendees, including customers and partners. Manulife also collaborated with the Breast Cancer Foundation and Parkway Radiology to offer complimentary breast cancer screenings for women.
Additionally, Manulife expanded its AI-enabled advisory tools to the Chinese Mainland and Malaysia, aimed at helping agents evaluate family coverage, identify gaps in protection, and prepare for client discussions tailored to financial goals.
Overall Group Performance
Manulife’s group core earnings hit a record C$2.1 billion, reflecting a 4% increase on a constant currency basis, while core earnings per share rose to C$1.24, a 6% rise. However, the group’s net income fell to $1.4 billion from $1.8 billion, influenced by challenges in wealth and asset management, including the transition to Hong Kong’s eMPF platform.
These results indicate that while Hong Kong and Japan remain strong markets for growth, the Chinese Mainland poses increasing challenges. The collaboration with Ant Health highlights Manulife’s strategy to integrate health services with insurance offerings, and the rollout of AI tools suggests a growing emphasis on data-driven approaches in the industry.
