How are Manulife’s insurance growth metrics trending in Q1 2026?

Insurance growth remained solid, with APE sales of $2.82 billion up 7%, new business CSM of $1.02 billion up 16%, and new business value of $944 million up 7%. Asia delivered double-digit growth across these measures, supported by higher volumes and favourable mix.

Manulife (TSX: MFC) boosts Q1 net income to $1.15B as core ROE hits 16.5%

Q: What were Manulife (MFC) returns on equity in Q1 2026?

In Q1 2026, Manulife reported a core ROE of 16.5% and an ROE of 10.1% . These figures improved from the prior year, highlighting stronger underlying profitability and capital-efficient growth across the company’s diversified insurance and wealth businesses.

Q: How did Manulife’s Global Wealth and Asset Management business perform?

Global WAM generated core earnings of $448 million and a core EBITDA margin of 29.0% , but posted net outflows of $4.4 billion . Outflows were concentrated in North American retail mutual funds, while institutional flows and the Manulife | Comvest business contributed positively.

Q: What is Manulife’s capital position and leverage as of March 31, 2026?

Manulife’s main operating company MLI reported a LICAT ratio of 136% , and MFC’s financial leverage ratio improved to 22.5% . Consolidated capital reached $82.8 billion , and book value per common share increased to $26.30 , underscoring a strong balance sheet.

Q: What strategic initiatives did Manulife (MFC) advance in Q1 2026?

Manulife completed the acquisition of Schroders Indonesia with $3.5 billion AUM, formed a strategic partnership with L&G , and expanded AI deployments across underwriting, distribution and claims. It also launched new health partnerships and longevity-focused programs in Asia, Canada and the U.S.

Filing Impact

(Neutral)

Filing Sentiment

(Neutral)

Form Type

6-K

Rhea-AI Filing Summary

Manulife Financial Corporation reported strong results for the quarter ended March 31, 2026, with net income attributed to shareholders of $1.15 billion, up from $485 million a year earlier. Core earnings rose to $1.84 billion, an 8% increase on a constant exchange rate basis, reflecting business growth, favourable actuarial updates and better insurance experience, partly offset by lower investment spreads and higher expenses.

Diluted core EPS grew 11% to $1.06, while reported EPS climbed to $0.65, up 178%. Core ROE improved to 16.5% and ROE to 10.1%. Insurance momentum remained solid, with APE sales up 7%, new business contractual service margin up 16%, and new business value up 7%, led by double‑digit growth in Asia and stronger U.S. accumulation products.

Global Wealth and Asset Management generated higher fee-based core earnings and a 29.0% core EBITDA margin but saw net outflows of $4.4 billion versus prior-year inflows. Capital strength stayed robust with a LICAT ratio of 136% at MLI, a lower financial leverage ratio of 22.5%, and book value per common share rising to $26.30. The company returned $1.2 billion to shareholders through dividends and buybacks, completed the Schroders Indonesia acquisition, entered a strategic partnership with L&G, and advanced multiple AI and health-focused initiatives across regions.

Positive

Profitability and returns improved materially, with net income attributed to shareholders rising to $1.15 billion from $485 million, core EPS up 11% to $1.06, and core ROE increasing to 16.5%, supported by business growth and favourable actuarial updates.
Capital strength and shareholder returns remained robust, as the LICAT ratio at MLI stayed at 136%, the financial leverage ratio fell to 22.5%, CSM net of NCI grew to $25.59 billion, and the company returned $1.2 billion through dividends and share buybacks.

Negative

Asset management experienced significant net outflows, with Global Wealth and Asset Management reporting $4.4 billion of net outflows in 1Q26 compared with $0.5 billion of net inflows a year earlier, driven mainly by North American retail mutual fund redemptions.
Canada segment profitability softened, as core earnings declined 6% year over year due to unfavourable Group Insurance experience, including higher long-term disability claims and increased expenses tied to business growth and transformation initiatives.

Insights

Manulife delivers stronger earnings and capital, with WAM outflows as the main drag.

Manulife increased core earnings to $1.84 billion and net income to $1.15 billion, driven by higher insurance profitability, favourable assumption updates and less severe market hits than last year. Core EPS rose 11% to $1.06, and core ROE reached 16.5%, indicating healthy underlying returns.

Capital metrics remained solid. MLI’s LICAT ratio held at 136%, the financial leverage ratio improved to 22.5%, and book value per share increased to $26.30. The company still returned $1.2 billion via dividends and buybacks while redeeming senior debt and growing contractual service margin to $25.59 billion, supporting future earnings capacity.

The main pressure point is Global Wealth and Asset Management, where net flows swung to $4.4 billion of outflows from prior inflows, largely in North American retail mutual funds. However, gross flows and average AUMA grew, and core EBITDA margin improved to 29.0%, helped by the Manulife | Comvest business. Subsequent quarters will show whether strategic moves like the Schroders Indonesia acquisition and the L&G partnership stabilize flows.

Key Figures

Net income attributed to shareholders: $1,147 million Core earnings: $1,836 million Diluted core EPS: $1.06 per share +5 more

8 metrics

Net income attributed to shareholders $1,147 million Quarter ended March 31, 2026

Core earnings $1,836 million Quarter ended March 31, 2026

Diluted core EPS $1.06 per share Quarter ended March 31, 2026

Core ROE 16.5% Quarter ended March 31, 2026

Global WAM net flows $(4.4) billion Quarter ended March 31, 2026

LICAT ratio (MLI) 136% As at March 31, 2026

Book value per common share $26.30 As at March 31, 2026

New business CSM $1,019 million Quarter ended March 31, 2026

Key Terms

core earnings, contractual service margin, Life Insurance Capital Adequacy Test, annualized premium equivalent, +2 more

6 terms

core earnings financial

"Core earnings of $1.8 billion in 1Q26, up 8% from 1Q25"

Core earnings are the profit a business generates from its normal, ongoing operations after removing one-time gains or losses and unusual accounting adjustments; think of it as the recurring paycheck a household can expect each month rather than a one-off inheritance or sale. Investors care because it highlights the company’s sustainable cash-making ability and makes performance easier to compare across periods and with other firms.

contractual service margin financial

"CSM was $25,589 million as at March 31, 2026"

Contractual service margin is an accounting measure that represents the unrecognized profit insurers will earn as they fulfill the obligations in insurance contracts over time. Think of it like a prepaid balance that is gradually released to income as the insurer delivers coverage and services; it smooths profit recognition and prevents recording all gains upfront. Investors watch it because changes signal future earnings patterns, profitability of current book of business, and the quality of reported insurance liabilities.

Life Insurance Capital Adequacy Test regulatory

"LICAT ratio of 136% as at March 31, 2026"

A life insurance capital adequacy test is a regulatory check that measures whether an insurance company has enough financial cushion to meet its policyholder promises under normal and stressed conditions. Think of it as a household emergency fund and storm forecast combined: it shows whether the company can absorb losses, pay claims and keep operations running. Investors use the result to judge solvency risk, dividend safety and the likelihood of regulatory intervention or rating changes.

annualized premium equivalent financial

"Annualized premium equivalent (“APE”) sales were $2.8 billion in 1Q26"

core EBITDA margin financial

"Global WAM core EBITDA margin (%) was 29.0% in 1Q26"

Core EBITDA margin is the percentage of a company’s revenue that represents its recurring operating cash-profit after removing interest, taxes, depreciation and amortization plus one-time or unusual gains or costs; it’s calculated as core EBITDA divided by revenue. It matters to investors because it highlights underlying operational efficiency and comparability over time—like judging a car’s steady fuel efficiency after ignoring a rare repair—helping assess sustainable profitability and valuation.

Non-GAAP financial measures regulatory

"Core earnings is non-GAAP financial measure. For more information on non-GAAP and other financial measures..."

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

Earnings Snapshot

Net income attributed to shareholders: $1,147 million

Q1 2026

Net income attributed to shareholders $1,147 million +$662 million vs. 1Q25

Core earnings $1,836 million +8% CER vs. 1Q25

Diluted core EPS $1.06 +11% CER vs. 1Q25

Core ROE 16.5% +0.9 pps vs. 1Q25

Global WAM net flows $(4.4) billion from $0.5 billion inflows in 1Q25

Form 6-K: How Foreign Companies Report to the SEC →

05/13/2026 - 05:07 PM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of May 2026

Commission File Number: 1-14942

MANULIFE FINANCIAL CORPORATION

(Translation of registrant's name into English)

200 Bloor Street East

North Tower 10

Toronto, Ontario, Canada M4W 1E5

(416) 926-3000

(Address of principal executive office)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-

F or Form 40-F.


Form 20-F	¨	Form 40-F	☒

The registrant’s Management’s Discussion and Analysis and Unaudited Interim Consolidated Financial Statements for the

quarter ended March 31, 2026 included in the registrant’s 2026 First Quarter Report to Shareholders filed with this Form 6-

K as Exhibit 99.1, are incorporated by reference in the registration statements filed with the Securities and Exchange

Commission by the registrant on Form S-8 (Registration Nos. 333-12610, 333-13072, 333-114951, 333-129430,

333‑157326, 333-211366, 333-272672, 333-277446 ), on Form F‑3 (Registration No. 333-159176) and on Form F-10

(Registration No. 333-290499). Except for the foregoing, no other document or portion of a document filed with this Form

6-K is incorporated by reference in the above registration statements.

DOCUMENTS FILED AS PART OF THIS FORM 6-K

The following documents, filed as exhibits to this Form 6-K, are incorporated by reference as

part of this Form 6-K:


Exhibit	Description of Exhibit

99.1	First Quarter Report to Shareholders

99.2	Certification Chief Executive Officer

99.3	Certification Chief Financial Officer

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly

caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	MANULIFE FINANCIAL CORPORATION

	By:	/s/ Eddy Mezzetta
	Name:	Eddy Mezzetta
	Title:	Vice President and Chief Counsel, Corporate Law
Date: May 13, 2026

First Quarter

Report to

Shareholders

Three months ended

March 31, 2026

Manulife Financial Corporation

1 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 1Q26 Management’s Discussion and Analysis (“1Q26 MD&A”).

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

contractual service margin net of NCI (“new business CSM”) are stated on a constant exchange rate (“CER”) basis and are non-GAAP ratios.

3 Core EPS, core ROE, core EBITDA margin and expense efficiency ratio are non-GAAP ratios.

4 Life Insurance Capital Adequacy Test (“LICAT”) ratio of The Manufacturers Life Insurance Company (“MLI”) as at March 31, 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.

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

measures” in our 1Q26 MD&A. Percentage growth/decline in APE sales, NBV and net flows are stated on a constant exchange rate basis.

6Legal & General Investment Management Limited and Legal and General Assurance Society, collectively referred to as “L&G”.

7See “Caution regarding forward-looking statements”.

8Under IFRS 17.


Manulife Financial Corporation – First Quarter 2026	1

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

period ended March 31, 2026, delivering double-digit core EPS and new business CSM growth year over

year.

Key highlights for the first quarter of 2026 (“1Q26”) include:

•Core earnings1 of $1.8 billion, up 8% on a CER basis2 compared with the first quarter of 2025 (“1Q25”)

•Net income attributed to shareholders of $1.1 billion, up $0.7 billion from 1Q25

•Core EPS3 of $1.06, up 11%2 from 1Q25. EPS of $0.65, up 178%2 from 1Q25

•Core ROE3 of 16.5% and ROE of 10.1%

•LICAT ratio4 of 136%

•APE sales up 7%5, new business CSM up 16%2 and new business value (“NBV”) up 7%5 from 1Q25

•Global Wealth and Asset Management (“Global WAM”) net outflows5 of $4.4 billion, compared with $0.5 billion of net

inflows in 1Q25

“We delivered a solid first quarter, executing our strategy and demonstrating the strength of our diversified portfolio. We

generated double-digit growth in core EPS, and new business momentum continued to build, driving double-digit growth in

new business CSM across all three insurance segments, despite macroeconomic uncertainty.

“Asia achieved another strong quarter, with 22% growth in core earnings and 15% growth in new business value, reflecting

robust contributions from key markets in the region. In Global WAM, core EBITDA margin3 improved year over year,

notwithstanding the impact of the eMPF transition, and Manulife | Comvest contributed positively to margin, core earnings and

net inflows.

“We made sustained progress against our strategic priorities — expanding our health proposition with new partnerships in Asia

and Canada, advancing Global WAM through our partnership with L&G6, and further differentiating our U.S. product offerings.

We scaled AI delivery across our global footprint to enhance distributor experience and improve productivity and efficiency. We

remain well positioned to deliver our targets and capture growth, generating sustainable value for shareholders.”7

— Phil Witherington, Manulife President & Chief Executive Officer

“Our balance sheet and financial performance demonstrated resilience during a volatile quarter. Excess capital remained

strong, our financial leverage ratio improved, and book value per common share increased to an all-time high8. We continued

to deploy capital in a disciplined manner, returning $1.2 billion to shareholders through dividends and share buybacks, and on

the acquisition of Schroders Indonesia. Core ROE was 16.5% for the quarter, an increase of 90 basis points compared with

1Q25, and our expense efficiency ratio of 46%3 remained in-line year over year, while continuing strategic investments in AI

and reflecting the impact of the Comvest acquisition in Global WAM.”

— 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.

2Adjusted book value per common share and financial leverage ratio are non-GAAP ratios.

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

measures” in our 1Q26 MD&A. Percentage growth/decline in gross flows and average AUMA are stated on a constant exchange rate basis.


Manulife Financial Corporation – First Quarter 2026	2

Results at a Glance


($ millions, unless otherwise stated)	Quarterly Results
($ millions, unless otherwise stated)	1Q26	1Q25	Change
Net income attributed to shareholders1	$1,147	$485	149%
Core earnings	$1,836	$1,767	8%
EPS ($)	$0.65	$0.25	178%
Core EPS ($)	$1.06	$0.99	11%
ROE	10.1%	3.9%	6.2 pps
Core ROE	16.5%	15.6%	0.9 pps
Book value per common share ($)	$26.30	$25.88	2%
Adjusted BV per common share ($)2	$39.01	$36.66	6%
Financial leverage ratio (%)2	22.5%	23.9%	(1.4) pps
APE sales	$2,821	$2,689	7%
New business CSM	$1,019	$907	16%
NBV	$944	$907	7%
Global WAM net flows ($ billions)	$(4.4)	$0.5	-%

Results by Segment


($ millions, unless otherwise stated)	Quarterly Results
($ millions, unless otherwise stated)	1Q26	1Q25	Change
Asia (US$)
Net income attributed to shareholders	$433	$435	2%
Core earnings	598	492	22%
APE sales	1,599	1,412	11%
New business CSM	585	498	15%
NBV	533	457	15%
Canada
Net income attributed to shareholders	$238	$222	7%
Core earnings	352	374	(6)%
APE sales	416	491	(15)%
New business CSM	103	91	13%
NBV	152	180	(16)%
U.S. (US$)
Net income attributed to shareholders	$101	$(397)	-%
Core earnings	241	251	(4)%
APE sales	155	120	29%
New business CSM	83	70	19%
NBV	44	48	(8)%
Global WAM
Net income attributed to shareholders	$403	$443	(5)%
Core earnings	448	454	2%
Gross flows ($ billions)3	56.0	50.3	15%
Average AUMA ($ billions)3	1,118	1,041	11%
Core EBITDA margin (%)	29.0%	28.4%	60 bps

1 Based on AUM as of February 2026.

2Legal & General Investment Management Limited and Legal and General Assurance Society, collectively referred to as “L&G”.

3Akka provides a secure and scalable software foundation to build trusted AI-powered business applications.

4Adaptive ML provides a reinforcement-learning-powered engine to fine-tune, evaluate, and deploy open-source small language models (SLMs) for enterprise

applications.

5The Shield MCD test is intended to detect 10 cancers with a single blood draw, and is for export use only outside of the United States.


Manulife Financial Corporation – First Quarter 2026	3

Strategic Highlights

We are executing to expand our diversified portfolio and further strengthen distribution capabilities and product

leadership

In Asia, we received recognition as Asia’s Best Insurance Provider for Wealth Management at the 2026 Euromoney Private

Banking Awards, a leading benchmark in the private banking and wealth management industry. This acknowledgement reflects

our strong growth momentum, innovative product suite for high-net-worth (“HNW”) customer segments, value-added service,

international capabilities, and trusted relationships with our distribution partners across all HNW channels.

In Global WAM, we completed the acquisition of PT Schroder Investment Management Indonesia (“Schroders Indonesia”) with

$3.5 billion of assets under management (“AUM”) as of March 31, 2026. The acquisition strengthens our position as the largest

asset manager in Indonesia1 and enables us to deliver enhanced value to our clients and stakeholders by leveraging the firm’s

local expertise and client relationships.

In addition, we entered into a strategic partnership with L&G2 to enhance our distribution, investment management, and

product development capabilities. The partnership is intended to combine our global asset management expertise and

distribution platform with L&G’s strengths as a global asset manager and distribution capabilities, especially across Europe,

bringing together complementary capabilities to expand access to differentiated investment solutions across institutional,

retirement, and retail channels.

In the U.S., we further differentiated our product portfolio through enhancements to our indexed and hybrid indexed universal

life offerings, better positioning us to address evolving income-protection and wealth-accumulation needs and supporting our

growth strategy. Furthermore, we reinforced our industry-leading large-case underwriting capabilities by increasing auto-bind

limits through reinsurer support, simplifying underwriting and reducing friction for complex submissions.

We are deploying AI globally to enhance distributor experience, drive efficiency, and deliver value

We accelerated our momentum across our enterprise AI platform, establishing production‑ready environments and enabling

initial scalable use cases, while leveraging new strategic partnerships with Akka3 and Adaptive ML4. In addition, our developers

across the organization continued to adopt assisted and autonomous AI capabilities, increasing their productivity by 30% while

enabling reinvestment to support business growth and develop new capabilities to serve our customers. Together, we expect

these advancements will enhance our ability to deploy AI at scale with speed, consistency, and in alignment with our

Responsible AI Principles.

Building on the roll out of agent and advisor AI tools in a number of our Asia markets in 2025, we launched our distributor AI

tool in Vietnam to support faster access to product information, premium calculations and simplified illustrations for customers.

In Japan, we also enhanced our AI tool to provide a unified, always-available entry point to information about our independent

agents, including their affiliations, branch details, and product license eligibility, enabling us to provide better and faster support

to these agents.

In Global WAM, we introduced an AI‑powered sales platform in U.S. Retail to better integrate data, enabling more personalized

advisor conversations and smarter sales deployment. This platform allows sales teams to prioritize the most promising

opportunities, driving an approximately 40% increase in meaningful advisor interactions and supporting higher flows.

In the U.S., we continued to realize benefits from scaling GenAI investments in underwriting through the expansion of our

Quick Quote support tool, enabling us to automate nearly half of preliminary assessments, which accelerated average

turnaround time from days to minutes and enabled underwriters to focus on more complex cases.

In Canada, we enhanced online claims processing for our Affinity health & dental business through AI-driven document

processing for the majority of manually processed claims, which improved processing speed and accelerated payments to

customers.

We are advancing our health, wealth and longevity strategy while establishing new strategic partnerships

In Asia, we established an exclusive partnership with Guardant Health to offer the ShieldTM Multi‑Cancer Detection test (“Shield

MCD test”)5 to eligible customers in Hong Kong, Singapore, and the Philippines. The collaboration makes us the first insurer in

Asia to offer the Shield MCD test, broadening access to early cancer detection and advancing our commitment to improving

customer health outcomes and longevity.

In Canada, we partnered with Osara Health®, a global provider of evidence-based cancer support programs to pilot the Cancer

Coach™ program and offer eligible Group Benefits members structured and personalized support for navigating the daily

challenges that accompany a cancer diagnosis, treatment, and recovery.

We also advanced Manulife’s commitment to longevity through a partnership with the National Institute on Ageing, supporting

the release of the Ageing in Canada Survey, one of Canada’s most comprehensive annual snapshots of aging, and building on

our commitment to health, wealth and financial wellbeing.

1 See section A1 “Profitability” in our 1Q26 MD&A for more information on notable items attributable to core earnings and net income attributed to shareholders.

2The reinsurance transaction with the Reinsurance Group of America, Incorporated (“RGA U.S. Reinsurance Transaction”) closed January 1, 2025.

3For more information on new business value margin (“NBV margin”), see “Non-GAAP and other financial measures” in our 1Q26 MD&A.


Manulife Financial Corporation – First Quarter 2026	4

In the U.S., we launched John Hancock Vitality PRO, a distributor-facing engagement platform designed to support the

promotion of John Hancock Vitality and to enhance producer loyalty. Early adoption continues to build, reinforcing engagement

in John Hancock Vitality and our mission to help customers live longer, healthier, better lives.

Continued business growth drove core earnings higher1

Core earnings of $1.8 billion in 1Q26, up 8% from 1Q25

The increase in core earnings reflected strong business growth in Asia and Global WAM, the net positive impact of 2025

updates to actuarial methods and assumptions, and a net improvement in insurance experience, partially offset by lower

investment spreads in the U.S. and the impact of the eMPF transition in Hong Kong.

•Asia core earnings increased 22%, 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 2%, driven by higher net fee income from favourable market impacts over the past

12 months, contribution from the Manulife | Comvest business, and continued expense discipline, partially offset by the

impact of the eMPF transition in Hong Kong and lower performance fees.

•Canada core earnings decreased 6%, reflecting unfavourable insurance experience in Group Insurance in 1Q26,

compared with favourable experience in 1Q25. The variance in insurance experience was largely driven by higher long-

term disability claims, along with higher expenses to support the growing business and transformational investment to

elevate customer experience in Group Insurance. This was partially offset by business growth in the segment, the net

positive impact of 2025 updates to actuarial methods and assumptions, and a lower charge in the expected credit loss

provision.

•U.S. core earnings decreased 4%, primarily driven by lower investment spreads, partially offset by favourable net

insurance experience in 1Q26 compared with unfavourable experience in 1Q25.

•Corporate and Other core earnings improved by $12 million, reflecting the non-recurrence of the 1Q25 provision for the

California wildfires in our P&C reinsurance business, partially offset by lower investment income and higher expenses

from continued strategic investments in transformational efforts, including AI-focused initiatives.

Net Income attributed to shareholders of $1.1 billion in 1Q26, $0.7 billion higher compared with 1Q25

The $0.7 billion increase in net income was primarily driven by a smaller net charge related to market experience and core

earnings growth. The net charge from market experience in 1Q26 reflected lower-than-expected returns on public equity and

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

investments. The market experience in 1Q25 included a $0.7 billion realized loss related to the RGA U.S. Reinsurance

Transaction from the sale of debt instruments, which was offset by an associated change in Other Comprehensive Income with

a net neutral impact to book value.2

Insurance new business growth momentum continued, with a double-digit increase in new business CSM across all

segments

APE sales, new business CSM and NBV increased 7%, 16%, and 7%, respectively, reflecting the strength of our

diversified business portfolio

•Asia delivered strong growth in APE sales, new business CSM and NBV, with a year-over-year increase of 11%, 15% and

15%, respectively, driven by higher sales volumes and a more favourable business mix, reflecting growth in Hong Kong,

Japan and Singapore across all three new business metrics. NBV margin improved modestly to 38.2%.3

•Canada APE sales and NBV decreased 15% and 16%, respectively, driven by lower Group Insurance sales, partially

offset by higher Individual Insurance sales. New business CSM increased 13%, reflecting the growth in Individual

Insurance from higher participating life insurance sales.

•In the U.S., APE sales and new business CSM increased 29% and 19%, respectively, reflecting increased demand for our

accumulation insurance products supported by recent product enhancements. NBV decreased 8%, primarily driven by

product mix, partially offset by higher sales volumes.

Global WAM net outflows of $4.4 billion in 1Q26, compared with net inflows of $0.5 billion in 1Q25

•Retirement net outflows were $2.8 billion in 1Q26 compared with net outflows of $2.6 billion in 1Q25, driven by higher

member withdrawals reflecting higher account balances from market growth and higher retirement plan redemptions in the

U.S., partially offset by lower retirement plan redemptions in Canada.

•Retail net outflows were $5.8 billion in 1Q26 compared with net inflows of $0.5 billion in 1Q25, primarily driven by higher

net outflows in active mutual funds through third-party intermediaries in North America, including a few large model

redemptions in the U.S.

•Institutional Asset Management net inflows were $4.2 billion in 1Q26 compared with net inflows of $2.6 billion in 1Q25,

driven by net flows from the Manulife | Comvest business, and higher net sales from money market mandates in mainland

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

2Percentage 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.

3Post-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 1Q26 MD&A.


Manulife Financial Corporation – First Quarter 2026	5

China and from Manulife | CQS products, partially offset by lower net flows in equity mandates and lower deployments in

private equity mandates.

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

CSM1 was $25,589 million as at March 31, 2026

CSM increased $620 million compared with December 31, 2025. Organic CSM movement contributed $650 million of the

increase, representing an 11% 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 a decrease of $30 million, primarily driven by the unfavourable impacts of equity

market performance and interest rate movements, partially offset by the impacts of changes in foreign currency exchange

rates. Post-tax CSM net of NCI3 was $21,255 million as at March 31, 2026.


Manulife Financial Corporation – First Quarter 2026	6

MANAGEMENT’S DISCUSSION AND ANALYSIS

This Management’s Discussion and Analysis (“MD&A”) is current as of May 13, 2026, unless otherwise noted. This MD&A

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

31, 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 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 1Q25 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.

2 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.

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 past 12 months. For more information on average AUMA, see “Non-GAAP and Other Financial Measures” below.

4 Formerly Comvest Credit Partners.


Manulife Financial Corporation – First Quarter 2026	7

ATOTAL COMPANY PERFORMANCE

A1Profitability


	Quarterly Results
($ millions, unless otherwise stated)	1Q26	4Q25	1Q25
Net income (loss) attributed to shareholders	$1,147	$1,499	$485
Core earnings(1)	$1,836	$1,993	$1,767
Diluted earnings (loss) per common share ($)	$0.65	$0.83	$0.25
Diluted core earnings per common share (“Core EPS”) ($)(2)	$1.06	$1.12	$0.99
ROE	10.1%	12.7%	3.9%
Core return on shareholders’ equity (“Core ROE”)(2)	16.5%	17.1%	15.6%
Expense efficiency ratio(2)	46.0%	44.7%	45.9%
General expenses	$1,251	$1,327	$1,202
Core expenses(1)	$1,827	$1,873	$1,776

(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.

Manulife’s net income attributed to shareholders was $1,147 million in the first quarter of 2026 (“1Q26”) compared with $485

million in the first quarter of 2025 (“1Q25”). 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 $1,836 million in 1Q26

compared with $1,767 million in 1Q25, and items excluded from core earnings, which amounted to a net charge of $689 million

in 1Q26 compared with a net charge of $1,282 million in 1Q25. The effective tax rate on net income (loss) attributed to

shareholders was 16% in 1Q26 compared with 9% in 1Q25 due to differences in the jurisdictional mix of earnings.

Net income attributed to shareholders in 1Q26 increased $662 million compared with 1Q25, reflecting a lower net charge from

market experience and improved core earnings. Total market experience was a net charge of $666 million in 1Q26 primarily

related to lower-than-expected returns on public equity and lower-than-expected returns on alternative long-duration assets

(“ALDA”), mainly from real estate, timber, and private equity investments. Market experience in 1Q25 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

Core earnings increased $69 million or 8% on a constant exchange rate (“CER”) basis2 compared with 1Q25. The increase in

our insurance business was driven by business growth, the net positive impact of 2025 updates to actuarial methods and

assumptions, primarily in our Asia segment, improved net insurance experience in the U.S., and the non-recurrence of the

1Q25 charge for estimated losses from California wildfires in our Property and Casualty (“P&C”) Reinsurance business. This

was partially offset by lower expected investment earnings and unfavourable insurance experience in our Canada Group

Insurance business, largely driven by higher long-term disability claims, along with higher expenses to support the growing

business and transformational investment to elevate customer experience in Group Insurance. For Global Wealth and Asset

Management (“Global WAM”), the increase in core earnings reflected higher net fee income3, contributions from the Manulife |

Comvest business4, as well as disciplined expense management, partially offset by the impact of the electronic Mandatory

Provident Fund (“eMPF”) transition in Hong Kong and lower performance fees.

The following table presents information on the change in the expected credit loss (“ECL”) for the reporting period.


($ millions, unaudited)	Quarterly Results
($ millions, unaudited)	1Q26	4Q25	1Q25
Change in ECL
Net new originations or purchases	$(17)	$1	$-
Changes to risk, parameters and models
Credit migration	(21)	(36)	(4)
Parameter and model updates, and other	(1)	47	(42)
Total (increase) recovery in ECL, pre-tax	$(39)	$12	$(46)
Total (increase) recovery in ECL, post-tax	$(32)	$11	$(38)

The increase in the ECL provision of $32 million post-tax in 1Q26 and $38 million post-tax in 1Q25 was in line with our

expectations.

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


Manulife Financial Corporation – First Quarter 2026	8

Core earnings by segment is presented in the following table.


	Quarterly Results
($ millions, unaudited)	1Q26	4Q25	1Q25
Core earnings by segment
Asia	$820	$785	$705
Canada	352	413	374
U.S.	331	319	361
Global Wealth and Asset Management	448	490	454
Corporate and Other	(115)	(14)	(127)
Total core earnings	$1,836	$1,993	$1,767

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

earnings.


	Quarterly Results
($ millions, unaudited)	1Q26	4Q25	1Q25
Core earnings	$1,836	$1,993	$1,767
Items excluded from core earnings:
Market experience gains (losses)(1)	(666)	(441)	(1,332)
Realized gains (losses) on debt instruments	(31)	27	(781)
Derivatives and hedge accounting ineffectiveness	(25)	(162)	(77)
Actual less expected long-term returns on public equity	(342)	(63)	(208)
Actual less expected long-term returns on ALDA	(242)	(232)	(275)
Other investment results	(26)	(11)	9
Updates to actuarial methods and assumptions that flow directly through income	-	-	-
Restructuring charge	-	(12)	-
Amortization of acquisition-related intangible assets(2)	(18)	(12)	-
Reinsurance transactions, tax-related items and other(3)	(5)	(29)	50
Total items excluded from core earnings	(689)	(494)	(1,282)
Net income (loss) attributed to shareholders	$1,147	$1,499	$485

(1)Market experience was a net charge of $666 million in 1Q26, driven by lower-than-expected returns from public equity, lower-than-expected returns on ALDA

mainly related to real estate, timber and private equity investments, net realized losses from debt instruments which are classified as FVOCI, a charge from

derivatives and hedge accounting ineffectiveness and a charge in other investment results. Market experience was a net charge of $1,332 million in 1Q25,

driven by net realized losses from debt instruments, of which $732 million was related to the transfer of assets with respect to the RGA U.S. Reinsurance

Transaction, which are classified as FVOCI, lower-than-expected returns on ALDA mainly related to real estate and private equity investments, lower-than-

expected returns from public equity and a charge from derivatives and hedge accounting ineffectiveness. The net charge was partially offset by a gain from

changes in foreign exchange rates.

(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 1Q26 net charge of $5 million was related to fair value changes in long-term investment plan obligations in Global WAM. The 1Q25 net gain of $50 million

was related to tax-related benefits and true-ups.

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


	Quarterly Results
($ millions, unaudited)	1Q26	4Q25	1Q25
Net income (loss) attributed to shareholders by segment
Asia	$595	$623	$624
Canada	238	252	222
U.S.	138	81	(569)
Global Wealth and Asset Management	403	452	443
Corporate and Other	(227)	91	(235)
Total net income attributed to shareholders	$1,147	$1,499	$485

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.

The expense efficiency ratio was 46.0% in 1Q26, compared with 45.9% in 1Q25. The impact on the ratio of higher core

expenses in 1Q26 compared with 1Q25 was largely offset by growth in pre-tax core earnings1 in 1Q26 compared with 1Q25.

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

inclusion of ongoing operating expenses related to our acquisition of Manulife | Comvest in Global WAM, and continued

strategic investments in transformational efforts, including AI-focused initiatives.

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

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

3 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 – First Quarter 2026	9

Total 1Q26 general expenses increased compared with 1Q25, driven by the items noted above related to the overall increase

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

core earnings were primarily from the amortization of acquisition-related intangible assets in Global WAM in 1Q26 and were nil

in 1Q25.

A2Business Performance


	Quarterly Results
($ millions, unless otherwise stated) (unaudited)	1Q26	4Q25	1Q25
Asia APE sales	$2,193	$1,608	$2,027
Canada APE sales	416	383	491
U.S. APE sales	212	231	171
Total APE sales(1)	2,821	2,222	2,689
Asia new business CSM(2)	802	697	715
Canada new business CSM	103	135	91
U.S. new business CSM	114	188	101
Total new business CSM(2)	1,019	1,020	907
Asia new business value	731	606	657
Canada new business value	152	174	180
U.S. new business value	61	94	70
Total new business value(1)	944	874	907
Asia CSM net of NCI	18,228	17,750	15,904
Canada CSM	4,432	4,459	4,052
U.S. CSM	2,927	2,760	2,329
Corporate and Other CSM	2	-	11
Total CSM net of NCI	25,589	24,969	22,296
Post-tax CSM net of NCI(3)	21,255	20,733	18,524
Global WAM gross flows ($ billions)(1)	56.0	49.9	50.3
Global WAM net flows ($ billions)(1)	(4.4)	(9.5)	0.5
Global WAM assets under management and administration ($ billions)(3)	1,110.1	1,106.6	1,026.3
Global WAM total invested assets ($ billions)	10.9	9.8	10.0
Global WAM segregated funds net assets ($ billions)	311.4	313.6	287.6
Total assets under management and administration ($ billions)(3),(4)	1,705.3	1,704.4	1,603.1
Total invested assets ($ billions)(4)	461.8	459.9	445.7
Segregated funds net assets ($ billions)(4)	455.7	461.3	428.6

(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 $2.8 billion in 1Q26, an increase of 7%1 compared with 1Q25, new

business CSM was $1,019 million in 1Q26, an increase of 16% compared with 1Q25 and new business value (“NBV”) was

$944 million in 1Q26, an increase of 7%1 compared with 1Q25. New business results by segment were as follows:

•Asia delivered strong growth in APE sales, new business CSM and NBV in 1Q26, with an increase of 11%, 15%, and 15%

respectively, compared with 1Q25, driven by higher sales volumes and a more favourable business mix, reflecting growth

in Hong Kong, Japan and Singapore across all three new business metrics. NBV margin2 improved modestly to 38.2% in

1Q26 compared with 38.1% in 1Q25.

•Canada APE sales and NBV decreased 15% and 16% in 1Q26, respectively, compared with 1Q25, driven by lower Group

Insurance sales volumes, partially offset by higher Individual Insurance sales volumes. New business CSM increased

13% in 1Q26 compared with 1Q25, reflecting the growth in Individual Insurance from higher participating life insurance

sales volumes.

•In the U.S., APE sales and new business CSM in 1Q26, increased 29% and 19%, respectively, compared with 1Q25,

reflecting increased demand for our accumulation insurance products supported by recent product enhancements. NBV in

1Q26 decreased 8% compared with 1Q25, primarily driven by product mix, partially offset by higher sales volumes.

CSM net of NCI was $25,589 million as at March 31, 2026, an increase of $620 million compared with December 31, 2025.

Organic CSM movement was an increase of $650 million for the three months ended March 31, 2026, representing an 11%

annualized growth in our CSM net of NCI balance3, 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

1 Redemption of $1.4 billion (US$1.0 billion) of senior debt at maturity in 1Q26.

2 This item is a non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below 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 $17.6 billion of encumbered cash and cash equivalents and marketable securities as at

March 31, 2026 (December 31, 2025 - $17.3 billion).


Manulife Financial Corporation – First Quarter 2026	10

decrease of $30 million for the three months ended March 31, 2026, primarily driven by the unfavourable impacts of equity

market performance and interest rate movements, partially offset by the impacts of changes in foreign currency exchange

rates.

Global WAM reported net outflows were $4.4 billion in 1Q26 compared with net inflows of $0.5 billion in 1Q25:

•Retirement net outflows were $2.8 billion in 1Q26 compared with net outflows of $2.6 billion in 1Q25, driven by higher

member withdrawals reflecting higher account balances from market growth and higher retirement plan redemptions in the

U.S., partially offset by lower retirement plan redemptions in Canada.

•Retail net outflows were $5.8 billion in 1Q26 compared with net inflows of $0.5 billion in 1Q25, primarily driven by higher

net outflows in active mutual funds through third-party intermediaries in North America, including a few large model

redemptions in the U.S.

•Institutional Asset Management net inflows were $4.2 billion in 1Q26 compared with net inflows of $2.6 billion in 1Q25,

driven by net flows from the Manulife | Comvest business, and higher net sales from money market mandates in mainland

China and from Manulife | CQS products, partially offset by lower net flows in equity mandates and lower deployments in

private equity mandates.

A3Financial Strength


	Quarterly Results
(unaudited)	1Q26	4Q25	1Q25
MLI’s LICAT ratio(1)	136%	136%	137%
Financial leverage ratio(2)	22.5%	23.9%	23.9%
Consolidated capital ($ billions)(3)	$82.8	$81.6	$80.4
Book value per common share ($)	$26.30	$25.91	$25.88
Adjusted book value per common share ($)(2)	$39.01	$38.27	$36.66

(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)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

March 31, 2026 was 136% compared with 136% as at December 31, 2025. The ratio reflected the positive impact of earnings

and increases in the CSM net of NCI, offset by dividends, common share buybacks, and unfavourable market movements.

MFC’s LICAT ratio was 125% as at March 31, 2026 compared with 125% as at December 31, 2025, driven by similar factors

that impacted the movement in MLI’s LICAT ratio. The difference between the MLI and MFC ratios as at March 31, 2026 was

largely due to the $6.4 billion of MFC senior debt outstanding that does not qualify as available capital at the MFC level, but

based on the form in which it was down-streamed, it qualifies as regulatory capital for MLI.

MFC’s financial leverage ratio as at March 31, 2026 was 22.5%, a decrease of 1.4 percentage points from 23.9% as at

December 31, 2025. The decrease was driven by the redemption of senior debt1, higher post-tax CSM2, and an increase in

total equity, partially offset by a higher balance of foreign currency denominated debt due to the impact of a weaker Canadian

dollar. The increase in total equity was driven mainly by total comprehensive income, including the favourable impact of a

weaker Canadian dollar against most foreign currencies, partially offset by dividends and common share buybacks.

MFC’s consolidated capital was $82.8 billion as at March 31, 2026, an increase of $1.2 billion compared with $81.6 billion as

at December 31, 2025. The increase was driven by higher post-tax CSM and an increase in total equity. The increase in total

equity was driven mainly by total comprehensive income, including the favourable impact of a weaker Canadian dollar against

most foreign currencies, partially offset by dividends and common share buybacks.

Cash and cash equivalents and marketable securities3 were $274.9 billion as at March 31, 2026 compared with $276.0

billion as at December 31, 2025. The decrease of $1.1 billion was driven by the impact of higher interest rates, redemption of

senior debt1 and the impact of lower equity markets, partially offset by the impact of changes in foreign exchange rates.

Book value per common share as at March 31, 2026 was $26.30, a 2% increase compared with $25.91 as at December 31,

2025. The number of common shares outstanding was 1,672 million as at March 31, 2026, a net decrease of 5 million shares

from December 31, 2025, primarily driven by common share buybacks. On February 19, 2026, following approvals from OSFI

and the Toronto Stock Exchange, we announced a new Normal Course Issuer Bid (“2026 NCIB”) to purchase for cancellation

up to 42 million shares, representing approximately 2.5% of outstanding common shares. During the three months ended

March 31, 2026, we purchased for cancellation 4.7 million shares for $222.5 million pre-tax under this 2026 NCIB and an

additional 2.8 million shares for $142.5 million pre-tax under a previous NCIB that commenced on February 24, 2025 and was

completed on January 22, 2026.

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

2 Based on AUM as of February 2026.

3 Legal & General Investment Management Limited and Legal and General Assurance Society, collectively referred to as “L&G”.

4 Akka provides a secure and scalable software foundation to build trusted AI-powered business applications.

5 Adaptive ML provides a reinforcement-learning-powered engine to fine-tune, evaluate, and deploy open-source small language models (SLMs) for enterprise

applications.


Manulife Financial Corporation – First Quarter 2026	11

Adjusted book value per common share as at March 31, 2026 was $39.01, a 2% increase compared with $38.27 as at

December 31, 2025, driven by an increase in the adjusted book value1 and a lower number of common shares outstanding.

Adjusted book value increased $1.0 billion due to higher post-tax CSM, net of NCI and total common shareholders’ equity. The

increase in total common shareholders’ equity reflected total comprehensive income attributed to common shareholders,

including the favourable impact of a weaker Canadian dollar against most foreign currencies, partially offset by common share

dividends and common share buybacks.

A4Assets under Management and Administration (“AUMA”)

AUMA as at March 31, 2026 was $1.7 trillion, a decrease of 1% compared with December 31, 2025, primarily due to the

unfavourable impact of equity markets. Total invested assets was in line with December 31, 2025 on an actual exchange rate

basis, primarily due to the impact of changes in foreign currency exchange rates, offset by the impact of interest rate

movements. Segregated funds net assets decreased 1% compared with December 31, 2025 on an actual exchange rate

basis, primarily due to the impact of equity markets.

A5Impact of Foreign Currency Exchange Rates

Changes in foreign currency exchange rates from 1Q25 to 1Q26 decreased core earnings by $70 million in 1Q26, primarily

due to a stronger 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

We are executing to expand our diversified portfolio and further strengthen distribution capabilities and product

leadership

In Asia, we received recognition as Asia’s Best Insurance Provider for Wealth Management at the 2026 Euromoney Private

Banking Awards, a leading benchmark in the private banking and wealth management industry. This acknowledgement reflects

our strong growth momentum, innovative product suite for high-net-worth (“HNW”) customer segments, value-added service,

international capabilities, and trusted relationships with our distribution partners across all HNW channels.

In Global WAM, we completed the acquisition of PT Schroder Investment Management Indonesia (“Schroders Indonesia”) with

$3.5 billion of AUM as of March 31, 2026. The acquisition strengthens our position as the largest asset manager in Indonesia2

and enables us to deliver enhanced value to our clients and stakeholders by leveraging the firm’s local expertise and client

relationships.

In addition, we entered into a strategic partnership with L&G3 to enhance our distribution, investment management, and

product development capabilities. The partnership is intended to combine our global asset management expertise and

distribution platform with L&G’s strengths as a global asset manager and distribution capabilities, especially across Europe,

bringing together complementary capabilities to expand access to differentiated investment solutions across institutional,

retirement, and retail channels.

In the U.S., we further differentiated our product portfolio through enhancements to our indexed and hybrid indexed universal

life offerings, better positioning us to address evolving income-protection and wealth-accumulation needs and supporting our

growth strategy. Furthermore, we reinforced our industry-leading large-case underwriting capabilities by increasing auto-bind

limits through reinsurer support, simplifying underwriting and reducing friction for complex submissions.

We are deploying AI globally to enhance distributor experience, drive efficiency, and deliver value

We accelerated our momentum across our enterprise AI platform, establishing production‑ready environments and enabling

initial scalable use cases, while leveraging new strategic partnerships with Akka4 and Adaptive ML5. In addition, our developers

across the organization continued to adopt assisted and autonomous AI capabilities, increasing their productivity by 30% while

enabling reinvestment to support business growth and develop new capabilities to serve our customers. Together, we expect

these advancements will enhance our ability to deploy AI at scale with speed, consistency, and in alignment with our

Responsible AI Principles.

Building on the roll out of agent and advisor AI tools in a number of our Asia markets in 2025, we launched our distributor AI

tool in Vietnam to support faster access to product information, premium calculations and simplified illustrations for customers.

In Japan, we also enhanced our AI tool to provide a unified, always-available entry point to information about our independent

agents, including their affiliations, branch details, and product license eligibility, enabling us to provide better and faster support

to these agents.

1 The Shield MCD test is intended to detect 10 cancers with a single blood draw, and is for export use only outside of the United States.


Manulife Financial Corporation – First Quarter 2026	12