Manulife (MFC) Reports Solid 2025 Growth Powered by Strong Asian Earnings and Cash Generation

Manulife Financial Corporation (NYSE:MFC) is one of the dirt cheap stocks to buy now. On February 12, Manulife Financial reported a year of solid operational growth in 2025, highlighted by an 8% increase in core EPS. The company saw momentum in its insurance business, with new business Contractual Service Margin growth exceeding 20% across all segments. This performance was supported by a 24% year-over-year earnings surge in Asia and strong cash generation, with the firm producing $6.4 billion in remittances and returning $5.5 billion to shareholders.

Despite the top-line success, the company navigated several headwinds in Q4, including $9.5 billion in net outflows from its Global Wealth and Asset Management segment. These outflows were attributed to large retirement plan redemptions in North America. Additionally, the US segment saw a 22% decline in core earnings due to unfavorable life insurance claims experience, and the company recorded a $232 million charge in its Alternative Long-Duration Asset portfolio caused by lower-than-expected returns in real estate and private equity.

Manulife (MFC) Reports Solid 2025 Growth Powered by Strong Asian Earnings and Cash Generation

Looking ahead, Manulife Financial Corporation (NYSE:MFC) remains committed to its target of achieving an 18%-plus core ROE by 2027. A pillar of this strategy is the firm’s leadership in AI maturity; it has already reached 30% of its $1 billion enterprise value generation target from AI initiatives.

Manulife Financial Corporation (NYSE:MFC), together with its subsidiaries, provides financial products and services in the US, Canada, Asia, and internationally. It operates through the Wealth & Asset Management Businesses, Insurance & Annuity Products, and Corporate & Other segments.

While we acknowledge the potential of MFC to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MFC and that has 100x upside potential, check out our report about this cheapest AI stock.

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