Manulife Shares Gain Most in a Year as Earnings Beat Estimates

Manulife Financial Corporation (MFC) shares have surged over the past year, with the stock price climbing steadily to near its highs at $45.37 as of February 2025. This exceptional performance can be attributed to several key factors, including strong earnings growth, robust Asia business, improved operational efficiency, dividend increases, and strategic initiatives such as digital transformation and expansion in Asia.

Manulife reported record core earnings of $7.2 billion in 2024, up 8% on a constant exchange rate basis from 2023. This growth was driven by a 30%+ increase in top-line business metrics, including APE sales, new business CSM, and new business value. The company's Asia business continued to lead its growth, with substantial top-line growth and a 27% increase in core earnings. Manulife's expense efficiency ratio improved further and ended at 44.8% for the full year, contributing to increased profitability and shareholder value.

Manulife declared a common share dividend increase of 10% in February 2025, reflecting the company's strong financial performance and commitment to returning capital to shareholders. The company also remitted $7.0 billion in 2024 and repurchased 4.6% of outstanding common shares, further enhancing shareholder value.

Manulife's strategic initiatives, particularly its digital transformation and expansion in Asia, have played a significant role in driving share price gains. The company's focus on these areas has led to strong operational efficiency, cost management, and growth potential in core markets. The digital transformation has set the stage for long-term innovation and cost reduction, while the expansion in Asia has resulted in substantial top-line growth and a 27% increase in core earnings.

Investors have taken note of Manulife's strong fundamentals, strategic focus on high-growth regions, and commitment to operational efficiency. The company's share price has climbed steadily over the past year, reflecting market optimism about its future and the value it offers to investors.




In conclusion, Manulife's exceptional share price performance in 2024 can be attributed to its strong earnings growth, robust Asia business, improved operational efficiency, dividend increases, and strategic initiatives such as digital transformation and expansion in Asia. The company's fundamentals, strategic focus, and commitment to shareholder value have contributed to its impressive share price performance and make it a promising long-term investment. As Manulife continues to execute on its strategic roadmap and deliver strong financial results, investors can expect the company to maintain its momentum and create value for shareholders.