Underwriting efficiency remains highly variable, as evidenced by the combined ratio fluctuating from a peak of 96.4% in 2024Q1 to 77.9% by 2025Q4.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Revenue | 79.35B | 53.01B | -7.29B | -7.04B | 24.16B | 59.84B | 77.12B | 77.82B | 37.26B | 56.65B | 51.69B | 32.81B | 53.07B | 17.48B | 28.08B | 49.98B | 37.62B | 40.11B | 33B | 35.58B | 34.19B | 32.69B | 26.97B | 16.51B | 16.53B | 16.23B | 14.15B | 14.11B | 10.53B |
| Revenue Growth % | 71.33% | 827.41% | -3.57% | -129.13% | -59.63% | -22.41% | -0.9% | 108.84% | -34.22% | 9.59% | 57.52% | -38.17% | 203.51% | -37.72% | -43.83% | 32.87% | -6.21% | 21.53% | -7.25% | 4.06% | 4.6% | 21.22% | 63.38% | -0.16% | 1.85% | 14.69% | 0.31% | 34% | - |
| Medical Costs & Claims | 52.89B | 39.49B | -20.92B | -17.72B | 22.52B | 41.2B | 59.87B | 60.76B | 20.3B | 44.33B | 38.84B | 21.41B | 41.57B | 6.66B | 20.61B | 42.82B | 27.59B | 30.08B | 22.2B | 24.19B | 16.67B | 17.12B | 18.87B | 9.26B | 9.99B | 9.8B | 7.3B | 888.21M | 752.15M |
| Medical Cost Ratio % | 66.66% | 74.49% | 287.02% | 251.8% | 93.2% | 68.86% | 77.63% | 78.08% | 54.47% | 78.26% | 75.14% | 65.25% | 78.33% | 38.1% | 73.41% | 85.67% | 73.33% | 75% | 67.27% | 68% | 48.76% | 52.36% | 69.97% | 56.11% | 60.41% | 60.38% | 51.6% | 6.3% | 7.14% |
| Gross Profit | 26.46B | 13.53B | 13.63B | 10.68B | 1.64B | 18.64B | 17.25B | 17.06B | 16.97B | 12.32B | 12.85B | 11.4B | 11.5B | 10.82B | 7.46B | 7.16B | 10.03B | 10.03B | 10.8B | 11.39B | 17.52B | 15.57B | 8.1B | 7.25B | 6.55B | 6.43B | 6.85B | 13.22B | 9.78B |
| Gross Margin % | 33.34% | 25.51% | -187.02% | -151.8% | 6.8% | 31.14% | 22.37% | 21.92% | 45.53% | 21.74% | 24.86% | 34.75% | 21.67% | 61.9% | 26.59% | 14.33% | 26.67% | 25% | 32.73% | 32% | 51.24% | 47.64% | 30.03% | 43.89% | 39.59% | 39.62% | 48.4% | 93.7% | 92.86% |
| Gross Profit Growth % | - | -0.77% | 27.6% | 549.76% | -91.18% | 8.01% | 1.14% | 0.55% | 37.73% | -4.14% | 12.68% | -0.84% | 6.25% | 45% | 4.25% | -28.61% | 0.05% | -7.18% | -5.13% | -35.01% | 12.52% | 92.32% | 11.76% | 10.69% | 1.79% | -6.12% | -48.19% | 35.23% | - |
| Operating Expenses | 18.59B | 6.43B | 6.54B | 4.23B | 4.78B | 10.51B | 10.48B | 10.84B | 11.45B | 9.82B | 9.52B | 8.79B | 7.24B | 7.08B | 6.22B | 7.01B | 12.36B | 10.18B | 10.22B | 5.78B | 12.19B | 11.25B | 4.67B | 5.4B | 4.87B | 5.07B | 5.51B | 179.96M | 156.82M |
| OpEx / Revenue % | 23.43% | 12.13% | -89.74% | -60.11% | 19.79% | 17.56% | 13.59% | 13.93% | 30.72% | 17.33% | 18.42% | 26.77% | 13.64% | 40.47% | 22.16% | 14.03% | 32.85% | 25.38% | 30.98% | 16.25% | 35.64% | 34.42% | 17.33% | 32.72% | 29.47% | 31.22% | 38.92% | 1.28% | 1.49% |
| Depreciation & Amortization | -1.15B | -1.83B | -1.51B | -1.42B | -1.47B | 529M | 656M | 626M | 747M | 560M | 693M | 580M | 462M | 426M | 390M | 345M | 316M | 304M | 253M | 281M | 234M | -749M | -608M | -431.61M | 0 | 0 | 0 | 0 | 0 |
| Combined Ratio % | 90.09% | 86.62% | 197.28% | 191.69% | 112.99% | 86.42% | 91.22% | 92.01% | 85.19% | 95.59% | 93.56% | 92.02% | 91.97% | 78.57% | 95.57% | 99.7% | 106.18% | 100.38% | 98.25% | 84.24% | 84.39% | 86.78% | 87.3% | 88.82% | 89.87% | 91.6% | 90.52% | 7.57% | 8.63% |
| Operating Income | 7.86B | 7.09B | 7.09B | 6.45B | -3.14B | 8.13B | 6.77B | 6.22B | 5.52B | 2.5B | 3.33B | 2.62B | 4.26B | 3.75B | 1.24B | 148M | -2.33B | -152M | 577M | 5.61B | 5.34B | 4.32B | 3.42B | 1.84B | 1.67B | 1.36B | 1.34B | 13.04B | 9.62B |
| Operating Margin % | 9.91% | 13.38% | -97.28% | -91.69% | -12.99% | 13.58% | 8.78% | 7.99% | 14.81% | 4.41% | 6.44% | 7.98% | 8.03% | 21.43% | 4.43% | 0.3% | -6.18% | -0.38% | 1.75% | 15.76% | 15.61% | 13.22% | 12.7% | 11.18% | 10.13% | 8.4% | 9.48% | 92.43% | 91.37% |
| Operating Income Growth % | - | 0.06% | 9.89% | 305.61% | -138.62% | 20% | 8.86% | 12.7% | 120.67% | -24.87% | 27.16% | -38.6% | 13.8% | 201.45% | 739.86% | 106.37% | -1429.61% | -126.34% | -89.71% | 5.06% | 23.46% | 26.19% | 85.64% | 10.22% | 22.82% | 1.64% | -89.72% | 35.56% | - |
| EBITDA | 6.71B | 5.26B | 5.58B | 5.04B | -4.61B | 8.65B | 7.43B | 6.85B | 6.27B | 3.06B | 4.02B | 3.2B | 4.73B | 4.17B | 1.63B | 493M | -2.01B | 152M | 830M | 5.89B | 5.57B | 3.57B | 2.82B | 1.41B | 1.92B | 1.62B | 1.53B | 179.96M | 156.82M |
| EBITDA Margin % | 8.46% | 9.93% | -76.61% | -71.55% | -19.09% | 14.46% | 9.63% | 8.8% | 16.82% | 5.4% | 7.78% | 9.75% | 8.91% | 23.87% | 5.82% | 0.99% | -5.34% | 0.38% | 2.51% | 16.55% | 16.29% | 10.93% | 10.45% | 8.56% | 11.6% | 9.98% | 10.83% | 1.28% | 1.49% |
| Interest Expense | 1.54B | 1.53B | 1.68B | 1.55B | 1.04B | 1.02B | 1.18B | 1.35B | 1.27B | 1.16B | 1.02B | 1.1B | 1.08B | 992.19M | 936.14M | 1.25B | 1.08B | 1.3B | 1.04B | 1.03B | 961.34M | 786.23M | 633.87M | 385M | 243M | 257M | 191M | 179.96M | 156.82M |
| Non-Operating Income | -1.54B | -1.53B | -1.68B | -1.55B | -1.05B | -1.01B | -1.18B | -1.32B | -1.27B | -1.14B | -1.01B | -1.1B | -1.13B | -1.04B | -934M | -1.25B | -1.04B | -1.3B | -1.19B | -1.03B | -932M | -788M | -629M | -385M | -243M | -257M | -191M | 12.86B | 9.46B |
| Pretax Income | 7.86B | 7.09B | 7.09B | 6.45B | -3.14B | 8.13B | 6.77B | 6.22B | 5.52B | 2.5B | 3.33B | 2.62B | 4.26B | 3.75B | 1.24B | 148M | -2.33B | -152M | 577M | 5.61B | 5.34B | 4.32B | 3.42B | 1.84B | 1.67B | 1.36B | 1.34B | 1.17B | 943.68M |
| Pretax Margin % | 9.91% | 13.38% | -97.28% | -91.69% | -12.99% | 13.58% | 8.78% | 7.99% | 14.81% | 4.41% | 6.44% | 7.98% | 8.03% | 21.43% | 4.43% | 0.3% | -6.18% | -0.38% | 1.75% | 15.76% | 15.61% | 13.22% | 12.7% | 11.18% | 10.13% | 8.4% | 9.48% | 8.31% | 8.96% |
| Income Tax | 1.19B | 1.03B | 1.21B | 845M | -1.16B | 1.21B | 1.2B | 718M | 632M | 239M | 196M | 328M | 671M | 581M | -492M | -97M | -799M | -1.57B | 80M | 1.38B | 1.37B | 1.03B | 874M | 316M | 304M | 196M | 273M | 303.33M | 239.15M |
| Effective Tax Rate % | 15.11% | 14.58% | 17.09% | 13.1% | 36.93% | 14.93% | 17.65% | 11.54% | 11.45% | 9.56% | 5.89% | 12.53% | 15.74% | 15.51% | -39.58% | -65.54% | 34.37% | 1034.21% | 13.86% | 24.56% | 25.6% | 23.85% | 25.52% | 17.13% | 18.16% | 14.38% | 20.36% | 25.87% | 25.34% |
| Net Income | 6.42B | 5.78B | 5.63B | 5.46B | -2.1B | 6.66B | 5.33B | 5.27B | 4.67B | 2.07B | 2.99B | 2.22B | 3.52B | 3.12B | 1.71B | 218M | -1.66B | 1.4B | 517M | 4.3B | 3.97B | 3.29B | 2.55B | 1.53B | 1.37B | 1.17B | 1.07B | 869.35M | 704.54M |
| Net Margin % | 8.09% | 10.91% | -77.26% | -77.63% | -8.69% | 11.12% | 6.91% | 6.77% | 12.54% | 3.65% | 5.78% | 6.77% | 6.64% | 17.83% | 6.08% | 0.44% | -4.42% | 3.5% | 1.57% | 12.09% | 11.61% | 10.07% | 9.46% | 9.26% | 8.29% | 7.19% | 7.55% | 6.16% | 6.69% |
| Net Income Growth % | 21.82% | 2.68% | 3.08% | 360.14% | -131.55% | 24.99% | 1.08% | 12.75% | 125.97% | -30.84% | 34.62% | -36.94% | 12.96% | 82.66% | 683.03% | 113.11% | -218.62% | 171.18% | -87.98% | 8.36% | 20.63% | 29.01% | 66.84% | 11.61% | 17.39% | 9.27% | 22.85% | 23.39% | - |
| EPS (Diluted) | 3.76 | 3.07 | 2.84 | 2.61 | -1.10 | 3.54 | 2.93 | 2.77 | 2.35 | 0.98 | 1.41 | 1.05 | 1.80 | 1.62 | 0.88 | 0.02 | -0.22 | 0.82 | 0.32 | 2.78 | 2.51 | 2.03 | 1.81 | 1.66 | 1.44 | 1.19 | 1.11 | 0.88 | 0.73 |
| EPS Growth % | 31.56% | 8.1% | 8.81% | 337.27% | -131.07% | 20.82% | 5.78% | 17.87% | 139.8% | -30.5% | 34.29% | -41.67% | 11.11% | 84.09% | 4300% | 109.09% | -126.83% | 156.25% | -88.49% | 10.76% | 23.65% | 12.15% | 9.04% | 15.28% | 21.01% | 7.21% | 26.14% | 20.55% | - |
| EPS (Basic) | - | 3.08 | 2.85 | 2.62 | -1.10 | 3.55 | 2.94 | 2.77 | 2.36 | 0.98 | 1.42 | 1.06 | 1.82 | 1.63 | 0.90 | 0.02 | -0.22 | 0.82 | 0.32 | 2.81 | 2.53 | 2.05 | 1.83 | 1.66 | 1.45 | 1.20 | 1.11 | 0.88 | 0.73 |
| Diluted Shares Outstanding | 1.71B | 1.71B | 1.78B | 1.84B | 1.91B | 1.95B | 1.94B | 1.96B | 1.99B | 1.99B | 1.98B | 1.98B | 1.88B | 1.88B | 1.88B | 1.88B | 1.88B | 1.88B | 1.88B | 1.88B | 1.88B | 1.88B | 1.88B | 1.88B | 1.88B | 1.88B | 1.88B | 1.88B | 1.88B |
Accounting volatility and LTC exposure
As reported in recent financial statements, Manulife's top-line growth has exhibited extreme quarterly variance, with revenue swings ranging from a 74.3% contraction in 2025Q1 to a 122.6% expansion in 2025Q2, largely reflecting the complex transition to IFRS 17 accounting standards rather than fundamental shifts in operational scale.
The erratic revenue trajectory suggests that investors should prioritize core earnings and Contractual Service Margin (CSM) growth over headline premium figures. This volatility appears to be an artifact of accounting adjustments rather than a reflection of actual customer acquisition or retention trends in the Asian and North American markets.
Based on reported figures, the combined ratio has fluctuated significantly, reaching a peak of 96.4% in 2024Q1 before tightening to 77.9% by 2025Q4, indicating that underwriting profitability remains sensitive to periodic claims volatility and the ongoing de-risking of legacy insurance blocks.
The wide range in the combined ratio suggests that Manulife's underwriting performance is not yet stabilized under the new accounting regime. Investors should monitor whether the recent improvement toward sub-80% combined ratios is sustainable or merely a result of favorable actuarial experience adjustments in the current period.
According to recent SEC filings, the implementation of IFRS 17 has fundamentally altered the company's income statement, rendering historical multi-year growth comparisons largely obsolete and necessitating a shift toward analyzing the CSM release as the primary indicator of future profitability and long-term earnings power.
The transition represents a structural inflection point that complicates the assessment of historical performance. Analysts must be cautious when interpreting these figures, as the non-cash nature of CSM releases can potentially mask underlying operational weaknesses if new business volumes fail to keep pace with the amortization of existing contracts.
While management has aggressively pursued reinsurance to mitigate exposure, the historical data showing loss ratios as high as 92.1% in 2024Q1 suggests that the company's legacy Long-Term Care and variable annuity blocks remain a potential source of earnings volatility that could pressure future capital adequacy.
The persistence of significant experience gains and losses warrants further investigation into the adequacy of current reserves. If the company continues to report wide swings in claims costs, it may indicate that the reinsurance strategy has not fully insulated the income statement from the tail risks inherent in these older, capital-intensive product lines.
Quick answers to the most common questions about buying MFC stock.
For fiscal year 2025, Manulife Financial Corporation (MFC) reported total revenue of $53.01B. This represents a 403.5% increase compared to $10.53B in 1998.
Manulife Financial Corporation (MFC) is profitable, generating $5.78B in net income for the fiscal year ending 2025 with a net profit margin of 10.9%.
Manulife Financial Corporation (MFC) reported an operating income of $7.09B, resulting in an operating profit margin of 13.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Manulife Financial Corporation (MFC) generated $13.53B in gross profit for the year, representing a gross profit margin of 25.5%. This demonstrates the company's core pricing power and production efficiency.