- Manulife’s (TSX:MFC) Q4 2025 profit fell to $1.5B, even as full‑year core earnings and EPS improved
- Sun Life (TSX:SLF) reported a 205 per cent surge in Q4 net income, with strong gains across all major business segments
- Both insurers boosted shareholder returns, but Sun Life enters 2026 with stronger earnings momentum
- Manulife Financial stock (TSX:MFC) opened trading at C$51.27 and Sun Life stock (TSX:SLF) opened trading at C$90.00
Manulife (TSX:MFC) reported a decline in fourth‑quarter profit despite full‑year earnings growth, while rival Sun Life (TSX:SLF) delivered sharply higher profit in its latest quarter, highlighting diverging performance among Canada’s largest life insurers.
Manulife’s net income attributed to shareholders fell to $1.5 billion in Q4 2025, down $0.1 billion from the same quarter in 2024. Full‑year net income rose to $5.6 billion, an increase of $0.2 billion from 2024. The insurer reported core earnings of $7.5 billion for 2025, up 3 per cent on a constant‑exchange‑rate basis.
Q4 core earnings rose 5 per cent year‑over‑year to $2.0 billion. Core EPS climbed 8 per cent for the full year to $4.21 and rose 9 per cent in the quarter to $1.12. Reported EPS, however, fell 6 per cent in Q4 to $0.83, even as full‑year EPS increased 6 per cent to $3.07. Manulife closed the year with a robust LICAT ratio of 136 per cent and $6.4 billion in remittances.
Annual APE sales rose 14 per cent, while new‑business CSM increased 28 per cent. The company also repurchased 54.4 million shares, or 3.1 per cent of its float, and announced a 10.2 per cent dividend increase alongside a new buyback program permitting repurchases of up to 2.5 per cent of outstanding shares beginning in late February 2026.
Sun Life delivers broad‑based earnings strength
Sun Life Financial reported a 205 per cent jump in Q4 and reported net income to $722 million, supported by stronger asset‑management performance, healthier insurance results and favourable market impacts. For the full year, reported net income rose 14 per cent to $3.47 billion. Underlying performance also showed strong momentum. Underlying net income increased 13 per cent in Q4 to $1.094 billion and 9 per cent for the full year to $4.2 billion. Underlying EPS climbed 17 per cent in the quarter to $1.96, and 12 per cent for 2025 to $7.45. Sun Life saw earnings growth across all business units: –
- Asset management and wealth: $534M underlying income, up 10 per cent
- Group – health and protection: $308M, up 16 per cent
- Individual – protection: $362M, up 17 per cent Assets under management rose to $1.605 trillion, up 4 per cent from year‑end 2024
Diverging trends among Canada’s insurers
These results paint a picture of a widening gap in performance between the two financial giants. Manulife continued to grow core earnings and bolster capital strength, but posted a drop in quarterly headline profit. Sun Life, on the other hand, delivered powerful top‑line and bottom‑line gains, with momentum across its major business lines. Both companies leaned on shareholder‑friendly actions, but Sun Life moves into 2026 with stronger operational tailwinds, while Manulife focuses on capital deployment, dividend hikes, and continued share buybacks to drive shareholder value.
About the insurers
Manulife is a leading international financial services provider serving more than 35 million customers across insurance, banking and wealth management.
Sun Life is an international financial services organization providing asset management, wealth, insurance and health solutions to individual and institutional clients.
Manulife stock (TSX:MFC) opened trading down nearly 5 per cent at C$51.27 but has risen more than 15 per cent since this time last year.
Sun Life stock (TSX:SLF) opened trading 6 per cent higher at C$90.00 and has risen nearly 20 per cent since this time, a year ago.
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