Manulife's Q1 2025 Earnings Call: Contradictions in Asia Sales Outlook, U.S. Election Impact, and ECL Insights

Sales expectations in Asia, impact of U.S. election on business, ECL increase, and risk management practices are the key contradictions discussed in Manulife Financial's latest 2025Q1 earnings call.



Strong Financial Performance:
- Manulife Financial reported strong financial results, including a 37% increase in AP sales and a 36% growth in new business value in Q1 2025.
- The growth was driven by strong demand across Asia and resilience in Global WAM despite market volatility.

Asia Segment Growth:
- The Asia segment achieved a 50% increase in AP sales, with record results in new business metrics like 38% growth in new business CSM and 43% in new business value.
- This growth was supported by productivity gains, improved customer experiences, and a substantial digital transformation.

Global WAM Resilience:
- Global WAM delivered positive net flows of $500 million, demonstrating resilience in a challenging market environment with strength in its institutional business.
- The segment's operational leverage improved with a 28.4% core EBITDA margin, expanding 290 basis points from the prior year.

Legacy Transactions and Risk Mitigation:
- Manulife has executed multiple legacy transactions, reducing the risk on both the asset and liability sides, and securing attractive terms.
- These transactions, including reinsurance and asset sales, have significantly reduced Manulife's book value sensitivity to market movements and improved return profiles.