EX-99.1 2 q22025reporttoshareholders.htm EX-99.1
Second Quarter
Report to
Shareholders
Three and six months ended
June 30, 2025
Manulife Financial Corporation
1 Highest potential businesses include Asia segment, Global Wealth and Asset Management, Canada group benefits and North American behavioural insurance
products.
2 Core earnings, core earnings excluding the impact of the change in ECL and core expenses are non-GAAP financial measures. For more information on non-
GAAP and other financial measures, see “Non-GAAP and other financial measures” in our 2Q25 Management’s Discussion and Analysis (“2Q25 MD&A”).
3 Percentage growth/declines in core earnings, core earnings excluding the impact of the change in ECL, diluted core earnings per common share (“core EPS”),
diluted earnings (loss) per share (“EPS”), core EPS excluding the impact of the change in ECL and new business contractual service margin net of NCI (“new
business CSM”) are stated on a constant exchange rate basis and are non-GAAP ratios.
4 Core EPS, core EPS excluding the impact of the change in ECL, core ROE and core EBITDA margin are non-GAAP ratios.
5 Life Insurance Capital Adequacy Test (“LICAT”) ratio of The Manufacturers Life Insurance Company (“MLI”) as at June 30, 2025. LICAT ratio is disclosed under
the Office of the Superintendent of Financial Institutions Canada’s (“OSFI’s”) Life Insurance Capital Adequacy Test Public Disclosure Requirements guideline.
6 For more information on APE sales, new business value (“NBV”), net flows and new business value margin (“NBV margin”), see “Non-GAAP and other financial
measures” in our 2Q25 MD&A. In this news release, percentage growth/decline in APE sales and NBV are stated on a constant exchange rate basis.
7 2024 quarterly and year-to-date core earnings, NBV, core EPS, core ROE, adjusted BV per common share, and financial leverage ratio have been updated to
align with the presentation of Global Minimum Taxes (“GMT”) in 2025. See section A7 “Global Minimum Taxes (GMT)” in our 2Q25 MD&A for more information.
8 Refers to “Results at a Glance” for 2Q25 and 2Q24 results.
9 Includes Comvest fee paying AUM of US$11 billion and Comvest committed capital of US$3.7 billion.
10 Subject to customary closing conditions and approvals. See “Caution regarding forward-looking statements” below. See the press release announcing the
acquisition for further details on the transaction and Comvest Credit Partners.

Manulife Financial Corporation – Second Quarter 2025 | 1

Manulife Financial Corporation (“Manulife” or the “Company”) reported its second quarter results for the
period ended June 30, 2025, delivering continued strong momentum in new business growth and strong
earnings growth in our highest potential businesses.1
Key highlights for the second quarter of 2025 (“2Q25”) include:
•Core earnings 2 of $1.7 billion, a 2% decrease on a constant exchange rate basis 3 compared with the second quarter of
2024 (“2Q24”)
•Excluding the impact of the change in expected credit loss (“ECL”), core earnings was $1.8 billion, up 2% from
2Q24 2,3
•Net income attributed to shareholders of $1.8 billion, an increase of $0.7 billion compared with 2Q24
•Core EPS 4 of $0.95, up 2%3 from 2Q24. EPS of $0.98, up 88%3 from 2Q24
•Excluding the impact of the change in ECL, core EPS was $0.99, up 7% from 2Q24 3,4
•Core ROE 4 of 15.0% and ROE of 15.6%
•LICAT ratio 5 of 136%
•APE sales up 15%6, new business CSM up 37%3 and new business value (“NBV”) up 20%6 from 2Q24 7,8
•Global Wealth and Asset Management (“Global WAM”) net inflows 6 of $0.9 billion, up from $0.1 billion in 2Q24
•Announced today the agreement to acquire a 75% stake in Comvest Credit Partners, adding US$14.7 billion 9 to our
Global WAM platform. The transaction is expected to close in the fourth quarter of 2025 10
“Our second-quarter results underscore the strength and resilience of our global franchise, as we continue to deliver high-
quality growth across a diversified portfolio. All three insurance segments achieved over 30% growth year over year in new
business CSM, clear evidence of our momentum and future earnings potential. Notably, Asia continued to generate strong
APE sales and increased NBV margin sequentially.6 Global WAM further expanded its core EBITDA margin 4 and delivered
double-digit core earnings growth compared with the prior year quarter.7
“It’s an incredible privilege to lead Manulife and I’m energized by the passion and performance of this team. We are building on
a strong foundation and are well-positioned to navigate a dynamic macroeconomic landscape with clarity and purpose. As we
write Manulife’s next chapter, I’m confident our strong commitment to customers, digital and AI-enabled solutions, will set new
standards for excellence, efficiency, and sustainable growth across our global franchise.
“Investing in our high-potential businesses with strategically focused intent is critical, and I’m excited to announce our
acquisition of Comvest Credit Partners, adding highly complementary and scaled capabilities in private credit, an asset-
strategy that we believe will contribute to future growth across our Global Wealth and Asset Management lines of business.”
— Phil Witherington, Manulife President & Chief Executive Officer
“While core EPS growth was dampened by headwinds related to unfavourable life insurance claims experience in the U.S. and
strengthened expected credit loss provisions, the underlying fundamentals of our businesses remained robust and we are
reporting strong earnings growth in Global WAM, Asia and Canada. This is supported by our continued expense discipline
which drove a 3% reduction in overall core expenses compared with 2Q24.2 Book value per common share was resilient with
a 5% increase year over year, and we continue buying back common shares, including $1.1 billion since the start of the year,
demonstrating our steadfast commitment to enhancing shareholder value.”
— Colin Simpson, Manulife Chief Financial Officer
1 Percentage growth/decline in net income attributed to shareholders is stated on a constant exchange rate basis and is a non-GAAP ratio.
2 2024 quarterly and year-to-date core earnings, NBV, core EPS, core ROE, adjusted BV per common share, and financial leverage ratio have been updated to
align with the presentation of Global Minimum Taxes (“GMT”) in 2025. See section A7 “Global Minimum Taxes (GMT)” in our 2Q25 MD&A for more information.
3 Financial leverage ratio and adjusted book value per common share are non-GAAP ratios.
4 For more information on net flows, gross flows and average asset under management and administration (“average AUMA”), see “Non-GAAP and other financial
measures” in our 2Q25 MD&A. In this news release, percentage growth/declines in net flows, gross flows, and average AUMA are stated on a constant
exchange rate basis.

Manulife Financial Corporation – Second Quarter 2025 | 2

Results at a Glance

($ millions, unless otherwise stated) | Quarterly Results | YTD Results
2Q25 | 2Q24 | Change | 2025 | 2024 | Change
Net income attributed to shareholders 1 | $1,789 | $1,042 | 72% | $2,274 | $1,908 | 16%
Core earnings 2 | $1,726 | $1,737 | (2)% | $3,493 | $3,447 | (2)%
EPS ($) | $0.98 | $0.52 | 88% | $1.23 | $0.97 | 23%
Core EPS ($)2 | $0.95 | $0.91 | 2% | $1.94 | $1.82 | 3%
ROE | 15.6% | 9.0% | 6.6 pps | 9.7% | 8.5% | 1.2 pps
Core ROE 2 | 15.0% | 15.7% | (0.7) pps | 15.3% | 16.0% | (0.7) pps
Book value per common share ($) | $24.90 | $23.71 | 5% | $24.90 | $23.71 | 5%
Adjusted BV per common share ($)2,3 | $35.78 | $33.32 | 7% | $35.78 | $33.32 | 7%
Financial leverage ratio (%)2,3 | 23.6% | 25.0% | (1.4) pps | 23.6% | 25.0% | (1.4) pps
APE sales | $2,230 | $1,907 | 15% | $4,919 | $3,790 | 26%
New business CSM | $882 | $628 | 37% | $1,789 | $1,286 | 34%
NBV 2 | $846 | $691 | 20% | $1,753 | $1,332 | 27%
Global WAM net flows ($ billions)4 | $0.9 | $0.1 | 417% | $1.4 | $6.8 | (80)%

Results by Segment

($ millions, unless otherwise stated) | Quarterly Results | YTD Results
2Q25 | 2Q24 | Change | 2025 | 2024 | Change
Asia (US$) |  |  |  |  |  |
Net income attributed to shareholders | $600 | $424 | 44% | $1,035 | $694 | 49%
Core earnings 2 | 520 | 449 | 13% | 1,012 | 914 | 10%
APE sales | 1,233 | 920 | 31% | 2,645 | 1,870 | 41%
New business CSM | 480 | 349 | 34% | 978 | 713 | 36%
NBV 2 | 451 | 346 | 28% | 908 | 669 | 35%
Canada |  |  |  |  |  |
Net income attributed to shareholders | $390 | $79 | 394% | $612 | $352 | 74%
Core earnings | 419 | 402 | 4% | 793 | 766 | 4%
APE sales | 345 | 520 | (34)% | 836 | 970 | (14)%
New business CSM | 100 | 76 | 32% | 191 | 146 | 31%
NBV | 161 | 159 | 1% | 341 | 316 | 8%
U.S. (US$) |  |  |  |  |  |
Net income attributed to shareholders | $26 | $98 | (73)% | $(371) | $18 | -%
Core earnings | 141 | 303 | (53)% | 392 | 638 | (39)%
APE sales | 130 | 93 | 40% | 250 | 206 | 21%
New business CSM | 86 | 54 | 59% | 156 | 126 | 24%
NBV | 46 | 41 | 12% | 94 | 78 | 21%
Global WAM |  |  |  |  |  |
Net income attributed to shareholders | $482 | $350 | 36% | $925 | $715 | 25%
Core earnings 2 | 463 | 386 | 19% | 917 | 735 | 22%
Gross flows ($ billions)4 | 43.8 | 41.4 | 5% | 94.1 | 86.9 | 5%
Average AUMA ($ billions)4 | 1,005 | 933 | 7% | 1,022 | 917 | 9%
Core EBITDA margin (%) | 30.1% | 26.3% | 380 bps | 29.2% | 25.9% | 330 bps

1 The Evident AI Index for Insurance assesses AI maturity across 30 of the most prominent insurance companies in North America and Europe, measuring
progress across four key categories: Talent, Innovation, Leadership, and Transparency.
2 Announced in July 2025, based on 2024 new business sales.
3 The Dubai International Financial Centre is a special economic zone in Dubai designed to facilitate financial and business activities in the Middle East, Africa
and South Asia region.
4 Maven Clinic, Meet Maven, 2024.

Manulife Financial Corporation – Second Quarter 2025 | 3

Strategic Highlights
We are embedding AI across our business, accelerating our journey to become a Digital, Customer Leader and
earning the top spot for AI maturity in our industry
In Global WAM, we l aunched an AI-powered sales enablement solution in U.S. Retirement, delivering real-time insights and
personalized content to enhance our sales operation and productivity, improve our sales close ratio, and drive revenue growth.
This doubled the number of sales opportunities compared with 2Q24 and reduced the time spent on information searches by
over 50%.
In Asia, we r olled out VOICE in Singapore and Japan, a multi-signal dashboard that includes call trend analysis, net sentiment
scores, topic trends and deep dive insights from call center transcripts. VOICE utilizes GenAI to categorize data, find
correlations, and customize insights by analyzing near real-time trends from customer interactions. These insights help us to
better understand customer sentiment and key interests, enhance services, improve training, and identify opportunities to
better deliver value to our customers.
In the U.S., we l aunched a GenAI functionality in long-term care (“LTC”) to enhance automated claims processing to
strengthen the value of our LTC business and provide insights for future innovations.
In Canada, we l aunched an end-to-end digital travel insurance platform that modernizes the distributor experience and
simplifies the purchasing process for Canadians and their families.
We were ranked first in the life insurance sector for AI maturity in the inaugural Evident AI Index for Insurance 1, ranking in the
top five across the insurance industry overall. Our strong performance, particularly around Leadership and Transparency, is a
testament to the multi-year investments in AI across the Company, reflecting our capability in scaling AI effectively.
We continue to strengthen our distribution capabilities and expand product offerings to meet evolving customer
needs
In Asia, we d emonstrated the strength of our agency force with a 23% year-over-year increase in the number of Million Dollar
Round Table (“MDRT”) members for Manulife Asia, positioning us as the third largest globally in 2025 MDRT membership.2
In addition, we b ecame the first international life insurer to establish an office in the Dubai International Financial Centre 3
dedicated to advising on and offering life insurance contracts to high-net-worth (“HNW”) customers. This strategic move
deepens our presence in the Middle East and enhances our ability to address the growing wealth and protection needs of
HNW and ultra-HNW individuals in the region.
In Global WAM, we c ontinued to deliver comprehensive investment solutions by expanding our Global Retail product lineup
with the launch of a diversified real assets strategy in Malaysia to help investors navigate market volatility. In addition, we
introduced four new actively managed ETF series in Canada, enhancing access to diversified equity and fixed income
exposures, to meet evolving investor needs.
Furthermore, we e nhanced the Manulife iFUNDS platform, making it the first integrated digital wealth solution in Singapore that
offers advisors a unified view of clients’ Unit Trust and Investment-Linked Plan (“ILP”) holdings. By integrating these into a
single platform and incorporating AI-powered ILP analytics capabilities, the enhancements streamline portfolio oversight,
accelerate transaction execution, and empower advisors to deliver more personalized and insightful financial guidance.
In Canada, we p artnered with Maven Clinic, the world’s largest virtual clinic for women’s and family health 4, to offer eligible
Group Benefits members 24/7 virtual access to personalized support during some of their most important stages of life,
including fertility, maternity, parenting, and menopause. This initiative addresses critical care gaps that impact women’s health
and workforce participation.
In the U.S., we e xpanded our wholesaling team to pursue more targeted growth strategies and accelerate our penetration
within the U.S. HNW and mass affluent markets.
1 See section A1 “Profitability” in our 2Q25 MD&A for more information on notable items attributable to core earnings and net income attributed to shareholders.
2 The reinsurance transaction with RGA Life Reinsurance Company of Canada (“RGA Canadian Reinsurance Transaction”) closed April 1, 2024.
3 Asia Other excludes Hong Kong and Japan.
4 Net of non-controlling interests (“NCI”).
5 In this news release, percentage growth/decline in organic CSM is stated on a constant exchange rate basis.
6 P ost-tax contractual service margin net of NCI (“post-tax CSM net of NCI”) is a non-GAAP financial measure. For more information on non-GAAP and other
financial measures, see “Non-GAAP and other financial measures” in our 2Q25 MD&A.

Manulife Financial Corporation – Second Quarter 2025 | 4

Resilient earnings with strong contributions from Global WAM and Asia 1
Core earnings of $1.7 billion in 2Q25 down 2% from 2Q24
Core earnings decreased as strong business growth in Global WAM, Asia and Canada was offset by unfavourable life
insurance claims experience in the U.S. and strengthened ECL provisions.
•Asia core earnings increased 13%, reflecting continued business growth, favourable claims experience and improved
impact of new business, partially offset by strengthened ECL provisions.
•Global WAM core earnings increased 19%, driven by higher net fee income from favourable market impacts over the past
12 months and positive net flows, higher performance fees and continued expense discipline, partially offset by the impact
of lower fee spreads and higher taxes.
•Canada core earnings were up 4%, as business growth in Group Insurance and higher investment spreads more than
offset the impacts of a release in ECL provision in 2Q24 and the RGA Canadian universal life reinsurance transaction.2
•U.S. core earnings decreased 53%, reflecting unfavourable life insurance claims experience, lower investment spreads
and strengthened ECL provisions.
•Corporate and Other core earnings improved by $12 million, primarily driven by lower long-term incentive compensation.
Net Income attributed to shareholders of $1.8 billion in 2Q25, $0.7 billion higher compared with 2Q24
The $0.7 billion increase in net income was driven by improved market experience. The net gain from market experience in
2Q25 reflects higher-than-expected returns on public equities and gains from derivatives and hedge accounting
ineffectiveness, partially offset by lower-than-expected returns on alternative long-duration assets, mainly related to real estate
and private equity investments.
Continued momentum in insurance new business results and positive net flows in Global WAM
APE sales, new business CSM and NBV increased 15%, 37% and 20%, respectively, reflecting continued sales
momentum and margin expansions
•Asia continued to generate strong growth in APE sales, new business CSM and NBV, with a year-over-year increase of
31%, 34% and 28%, respectively, reflecting higher sales volumes in Hong Kong and Asia Other.3 NBV margin of 40.0%
was approximately in line with the prior year quarter and increased sequentially.
•In Canada, APE sales decreased 34%, as strong participating life insurance sales were more than offset by the non-
recurrence of a large-case Group Insurance sale in 2Q24. These sales results, combined with a more favourable product
mix, drove a 1% increase in NBV. New business CSM increased 32%, reflecting the strong sales growth in Individual
Insurance.
•U.S. delivered strong new business growth this quarter, increasing APE sales, new business CSM and NBV by 40%, 59%
and 12%, respectively, reflecting continued demand for our accumulation insurance products.
Global WAM net inflows of $0.9 billion in 2Q25, $0.8 billion higher compared with net inflows of $0.1 billion in 2Q24
•Retirement net inflows of $2.0 billion in 2Q25 increased compared with net outflows of $1.3 billion in 2Q24, reflecting
higher retirement plan sales across all geographies and a large-case retirement plan redemption in the U.S. in 2Q24.
•Retail net outflows of $3.2 billion in 2Q25 increased compared with net outflows of $0.1 billion in 2Q24, driven by lower net
sales through third-party intermediaries in North America and in money markets funds in mainland China. This is partially
offset by higher net sales through our retail wealth platform.
•Institutional Asset Management net inflows of $2.1 billion in 2Q25 increased compared with net inflows of $1.4 billion in
2Q24, driven by lower redemptions in fixed income mandates, partially offset by higher redemptions in equity mandates.
New business growth continued to drive higher organic CSM and CSM balance
CSM 4 was $22,316 million as at June 30, 2025
CSM increased $189 million compared with December 31, 2024. Organic CSM movement contributed $1,162 million of the
increase for the first half of 2025, representing an 11%5 growth on an annualized basis, primarily driven by the impact of new
business, interest accretion and net favourable insurance experience, partially offset by amortization recognized in core
earnings. Inorganic CSM movement was a decrease of $973 million for the same period, primarily driven by the impacts of
changes in foreign currency exchange rates. Post-tax CSM net of NCI 6 was $18,527 million as at June 30, 2025.

Manulife Financial Corporation – Second Quarter 2025 | 5

MANAGEMENT’S DISCUSSION AND ANALYSIS
This Management’s Discussion and Analysis (“MD&A”) is current as of August 6, 2025, unless otherwise noted. This MD&A
should be read in conjunction with our unaudited Interim Consolidated Financial Statements for the three and six months
ended June 30, 2025 and the MD&A and audited Consolidated Financial Statements contained in our 2024 Annual Report.
For further information relating to our risk management practices and risk factors affecting the Company, see “Risk
Management and Risk Factors” and “Critical Actuarial and Accounting Policies” in the MD&A in our 2024 Annual Report (“2024
MD&A”) and the “Risk Management” note to the Consolidated Financial Statements in our most recent annual and interim
reports.
In this MD&A, the terms “Company”, “Manulife”, “we” and “our” mean Manulife Financial Corporation (“MFC”) and its
subsidiaries. All amounts are reported in Canadian dollars, unless otherwise indicated. Any information contained in, or
otherwise accessible through, websites mentioned in this MD&A does not form a part of this document.
CONTENTS

A.TOTAL COMPANY PERFORMANCE
1.Profitability
2.Business Performance
3.Financial Strength
4.Assets under Management and Administration
5.Impact of Foreign Currency Exchange Rates
6.Business Highlights
7.Global Minimum Taxes (“GMT”)
B.PERFORMANCE BY SEGMENT
1.Asia
2.Canada
3.U.S.
4.Global Wealth and Asset Management
5.Corporate and Other
C.RISK MANAGEMENT AND RISK
FACTORS UPDATE
1.Variable Annuity and Segregated Fund Guarantees
2.Caution Related to Sensitivities
3.Publicly Traded Equity Performance Risk Sensitivities and
Exposure Measures
4.Interest Rate and Spread Risk Sensitivities and Exposure
Measures
5.Alternative Long-duration Asset Performance Risk
Sensitivities and Exposure Measures
6.Risk Management and Risk Factors Update
D.CRITICAL ACTUARIAL AND
ACCOUNTING POLICIES
1.Critical Actuarial and Accounting Policies
2.Sensitivity to Changes in Assumptions
3.Accounting and Reporting Changes
E.OTHER
1.Outstanding Common Shares – Selected Information
2.Legal and Regulatory Proceedings
3.Non-GAAP and Other Financial Measures
4.Caution Regarding Forward-looking Statements
5.Quarterly Financial Information
6.Revenue
7.Other
1 Th e reinsurance transaction with the Reinsurance Group of America, Incorporated (“RGA U.S. Reinsurance Transaction”) closed January 1, 2025. The
reinsurance transaction with the RGA Life Reinsurance Company of Canada (“RGA Canadian Reinsurance Transaction”) closed April 1, 2024.
2 Percentage growth/declines in core earnings, pre-tax core earnings, total expenses, core expenses, general expenses, contractual service margin (“CSM”) net
of non-controlling interests (“NCI”), new business contractual service margin (“new business CSM”), assets under management and administration (“AUMA”),
assets under management (“AUM”), core earnings before interest, taxes, depreciation and amortization (“core EBITDA”),and Manulife Bank average net lending
assets are stated on a constant exchange rate basis, a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” below for more information.
3 The increase in Global WAM net fee income is due to higher average assets under management and administration (“average AUMA”) from the favourable
impact of markets over the last 12 months and positive net flows. For more information on average AUMA and net flows, see “Non-GAAP and Other Financial
Measures” below.

Manulife Financial Corporation – Second Quarter 2025 | 6

A TOTAL COMPANY PERFORMANCE
A1 Profitability

| Quarterly Results | YTD Results
($ millions, unless otherwise stated) | 2Q25 | 1Q25 | 2Q24 | 2025 | 2024
Net income (loss) attributed to shareholders | $1,789 | $485 | $1,042 | $2,274 | $1,908
Core earnings(1),(2) | $1,726 | $1,767 | $1,737 | $3,493 | $3,447
Diluted earnings (loss) per common share ($) | $0.98 | $0.25 | $0.52 | $1.23 | $0.97
Diluted core earnings per common share (“Core EPS”) ($)(2),(3) | $0.95 | $0.99 | $0.91 | $1.94 | $1.82
ROE | 15.6% | 3.9% | 9.0% | 9.7% | 8.5%
Core return on shareholders’ equity (“Core ROE”)(2),(3) | 15.0% | 15.6% | 15.7% | 15.3% | 16.0%
Expense efficiency ratio(3) | 45.5% | 45.9% | 45.4% | 45.7% | 45.3%
General expenses | $1,140 | $1,202 | $1,225 | $2,342 | $2,327
Core expenses(1) | $1,689 | $1,776 | $1,713 | $3,465 | $3,386

(1)This item is a non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below for more information.
(2)2024 year-to-date core earnings, core EPS and core ROE have been updated to align with the presentation of Global Minimum Taxes (“GMT”) in 2025. See
section A7 “Global Minimum Taxes (GMT)” for more information.
(3)This item is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” below for more information.
Quarterly profitability
Manulife’s net income attributed to shareholders was $1,789 million in the second quarter of 2025 (“2Q25”) compared with
$1,042 million in the second quarter of 2024 (“2Q24”). Net income attributed to shareholders is comprised of core earnings
(consisting of items we believe reflect the underlying earnings capacity of the business), which amounted to $1,726 million in
2Q25 compared with $1,737 million in 2Q24, and items excluded from core earnings, which amounted to a net gain of $63
million in 2Q25 compared with a net charge of $695 million in 2Q24. The effective tax rate on net income (loss) attributed to
shareholders was 15% in 2Q25 compared with 19% in 2Q24 due to differences in the jurisdictional mix of earnings.
Net income attributed to shareholders in 2Q25 increased $747 million compared with 2Q24 reflecting improved market
experience, with a net gain of $113 million in 2Q25 compared with a net charge of $665 million in 2Q24, which included
realized losses of $239 million in 2Q24 from the RGA Canadian Reinsurance Transaction 1. The loss from reinsurance was
primarily related to market experience from the sale of fair value through other comprehensive income (“FVOCI”) debt
instruments. There is an offsetting change in Other Comprehensive Income (“OCI”) attributed to shareholders resulting in a
neutral impact to book value. The net gain from market experience in 2Q25 primarily included higher-than-expected returns on
public equity and gains from derivatives and hedge accounting ineffectiveness, partially offset by lower-than-expected returns
on alternative long-duration assets (“ALDA”), mainly related to real estate and private equity investments.
Core earnings decreased $11 million or 2% o n a constant exchange rate basis 2 compared with 2Q24. The decline was driven
by unfavourable U.S. life insurance claims experience from elevated mortality on policies with high face value, and a net
increase in the provision for expected credit loss (“ECL”), and lower expected investment earnings. The reduction in core
earnings was partially offset by higher core earnings in Global Wealth and Asset Management (“Global WAM”), largely
reflecting an increase in net fee income 3, higher performance fees and disciplined expense management, partially offset by the
impact of lower fee spreads and higher taxes. In addition, growth in our insurance business, favourable claims experience in
Asia and the improved impact of new business also contributed to higher core earnings. The impact of 2024 updates to
actuarial methods and assumptions was neutral in the quarte r. In addition, the RGA U.S. Reinsurance Transaction 1 and the
RGA Canadian Reinsurance Transaction reduced core earnings by $11 million and $9 million, respectively, in 2Q25 compared
with 2Q24.
1 This item is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” below for more information.
2 2024 year-to-date items excluded from core earnings has been updated to align with the presentation of GMT in 2025. See section A7 “Global Minimum Taxes
(GMT)” for more information.
3 The reinsurance transaction with Global Atlantic (“GA Reinsurance Transaction”) closed February 22, 2024, with an effective date of January 1, 2024.

Manulife Financial Corporation – Second Quarter 2025 | 7

Additional information on the change in ECL is presented in the table below:

| Quarterly Results | YTD Results
($ millions, unaudited) | 2Q25 | 1Q25 | 2Q24 | 2025 | 2024
Change in ECL |  |  |  |  |
Net new originations or purchases | $(14) | $- | $(2) | $(14) | $-
Changes to risk, parameters and models |  |  |  |  |
Credit migration | (76) | (4) | (46) | (80) | (66)
Parameter and model updates, and other | (12) | (42) | 49 | (54) | 96
Total (increase) recovery in ECL, pre-tax | $(102) | $(46) | $1 | $(148) | $30
Total (increase) recovery in ECL, post-tax | $(83) | $(38) | $1 | $(121) | $25

The increase in the ECL provision of $83 million post-tax in 2Q25 was primarily related to the credit migration of certain below-
investment grade loan investments in the U.S. and parameter updates. The ECL provision was neutral in 2Q24, r eflecting the
positive macro environment, in particular improved equity market s, offset by credit migration.
Excluding the impact of the change in ECL in both 2Q25 and 2Q24, core earnings and core EPS increased 2%1 and 7%1,
respectively, on a constant exchange rate basis.
Year-to-date profitability
Net income attributed to shareholders for the six months ended June 30, 2025 was $2,274 million compared with $1,908
million for the six months ended June 30, 2024. Year-to-date core earnings amounted to $3,493 million in 2025 compared with
$3,447 million in the same period of 2024, and items excluded from year-to-date core earnings amounted to a net charge of
$1,219 million in 2025 compared with a net charge of $1,539 million 2 in the same period of 2024. The effective tax rate on
year-to-date net income (loss) attributed to shareholders was 13% in 2025 compared with 20% for the same period in 2024
due to differences in the jurisdictional mix of earnings.
Year-to-date net income attributed to shareholders in 2025 increased $366 million compared with the same period of 2024
primarily due to the impact of reinsurance transactions in 2025 compared with the same period of 2024. The RGA U.S.
Reinsurance Transaction resulted in a year-to-date net loss attributed to shareholders of $740 million in 2025 compared with a
year-to-date net loss attributed to shareholders from the Global Atlantic Reinsurance Transaction 3 and the RGA Canadian
Reinsurance Transaction of $763 million and $239 million, respectively, in the same period of 2024. The year-to-date net loss
on all three transactions was primarily related to market experience from the sale of FVOCI debt instruments. There is an
offsetting change in OCI attributed to shareholders resulting in a neutral impact to book value. Total year-to-date market
experience was a net charge of $1,219 million in 2025, reflecting the above-noted impact from reinsurance transactions, as
well as lower-than-expected returns on ALDA mainly related to real estate and private equity investments.
Year-to-date core earnings in 2025 increased $46 million compared with the same period of 2024. On a constant exchange
rate basis, year-to-date core earnings were 2% lower compared with the same period of 2024, reflecting a net increase in the
provision for ECL in 2025 compared with a release in 2024, unfavourable U.S. life insurance claims experience from elevated
mortality on policies with high face value, lower expected investment earnings and a charge in 2025 for estimated losses from
the California wildfires in our Property and Casualty (“P&C”) Reinsurance business. The reduction in core earnings was
partially offset by higher year-to-date core earnings in Global WAM, largely reflecting an increase in net fee income as noted
above for the quarter, higher performance fees and disciplined expense management, partially offset by the impact of lower
fee spreads and higher taxes. In addition, growth in our insurance business, favourable claims and insurance experience in
Asia and Canada, respectively, and the improved impact of new business also contributed to higher core earnings. The year-
to-date impact of 2024 updates to actuarial methods and assumptions was neutral. In addition, the RGA U.S. Reinsurance
Transaction, the RGA Canadian Reinsurance Transaction, and the GA Reinsurance Transaction reduced year-to-date core
earnings by $14 million, $13 million and $4 million, respectively, in 2025 compared with the same period of 2024.
The year-to-date increase in the ECL provision of $121 million post-tax in 2025 was driven by the same factors as noted above
for the quarter, with increased provisions for parameter and model updates that reflect the impact of a challenging economic
environment. The year-to date reduction in the provision of $25 million post-tax in the same period of 2024 was primarily due
to the same factors as noted above for 2Q24. Refer to the above Change in ECL table for details of the year-to-date change in
ECL.

Manulife Financial Corporation – Second Quarter 2025 | 8

Core earnings by segment is presented in the table below.

| Quarterly Results | YTD Results
($ millions, unaudited) | 2Q25 | 1Q25 | 2Q24 | 2025 | 2024
Core earnings by segment(1) |  |  |  |  |
Asia | $720 | $705 | $616 | $1,425 | $1,242
Canada | 419 | 374 | 402 | 793 | 766
U.S. | 194 | 361 | 415 | 555 | 867
Global Wealth and Asset Management | 463 | 454 | 386 | 917 | 735
Corporate and Other | (70) | (127) | (82) | (197) | (163)
Total core earnings | $1,726 | $1,767 | $1,737 | $3,493 | $3,447

(1)2 024 quarterl y and year-to-date core earning s by segment have been updated to align with the presentation of GMT in 2025. See section A7 “Global Minimum
Taxes (GMT)” for more information.
The table below presents net income attributed to shareholders consisting of core earnings and items excluded from core
earnings.

| Quarterly Results | YTD Results
($ millions, unaudited) | 2Q25 | 1Q25 | 2Q24 | 2025 | 2024
Core earnings | $1,726 | $1,767 | $1,737 | $3,493 | $3,447
Items excluded from core earnings: |  |  |  |  |
Market experience gains (losses)(1) | 113 | (1,332) | (665) | (1,219) | (1,444)
Realized gains (losses) on debt instruments | (5) | (781) | (350) | (786) | (1,020)
Derivatives and hedge accounting ineffectiveness | 74 | (77) | 143 | (3) | 101
Actual less expected long-term returns on public equity | 217 | (208) | 11 | 9 | 227
Actual less expected long-term returns on ALDA | (172) | (275) | (450) | (447) | (705)
Other investment results | (1) | 9 | (19) | 8 | (47)
Restructuring charge | - | - | - | - | -
Reinsurance transactions, tax-related items and other(2),(3) | (50) | 50 | (30) | - | (95)
Total items excluded from core earnings | 63 | (1,282) | (695) | (1,219) | (1,539)
Net income (loss) attributed to shareholders | $1,789 | $485 | $1,042 | $2,274 | $1,908

(1)Market experience was a net gain of $113 million in 2Q25, driven by higher-than-expected returns on public equity and gains from derivatives and hedge
accounting ineffectiveness, partially offset by lower-than-expected returns on ALDA mainly related to real estate and private equity investments and net realized
losses from debt instruments which are classified as FVOCI. Market experience was a net charge of $665 million in 2Q24, primarily driven by lower-than-
expected returns on ALDA mainly related to private equity and real estate investments, net realized losses from the sale of debt instruments which are classified
as FVOCI, of which $273 million was related to the transfer of assets with respect to the RGA Canadian Reinsurance Transaction, and losses from
unfavourable foreign exchange impacts. These were partially offset by a gain from derivatives and hedge accounting ineffectiveness and a modest gain from
higher-than-expected returns on public equity.
(2)The 2Q25 net charge of $50 million was primarily driven by an accounting true-up in Asia. The 2Q24 net charge of $30 million mainly included a charge of $43
million related to the acquisition of CQS, a charge of $42 million related to GMT and a charge of $25 million related to a reinsurance recapture in Asia, partially
offset by a gain of $34 million related to the RGA Canadian Reinsurance transaction and other tax-related true-ups of $44 million. See section A7 “Global
Minimum Taxes (GMT)” for more information.
(3)2024 year-to-date comparative has been updated to align with the presentation of GMT in 2025. See section A7 “Global Minimum Taxes (GMT)” for more
information.
Net income attributed to shareholders by segment is presented in the following table.

| Quarterly Results | YTD Results
($ millions, unaudited) | 2Q25 | 1Q25 | 2Q24 | 2025 | 2024
Net income (loss) attributed to shareholders by segment |  |  |  |  |
Asia | $830 | $624 | $582 | $1,454 | $945
Canada | 390 | 222 | 79 | 612 | 352
U.S. | 36 | (569) | 135 | (533) | 27
Global Wealth and Asset Management | 482 | 443 | 350 | 925 | 715
Corporate and Other | 51 | (235) | (104) | (184) | (131)
Total net income attributed to shareholders | $1,789 | $485 | $1,042 | $2,274 | $1,908

Expense efficiency ratio
The expense efficiency ratio is a financial measure which we use to measure progress on our strategic priority of expense
efficiency and reflects expenses that flow directly through core earnings (“core expenses”). Core expenses include core
general expenses, directly attributable maintenance expenses and directly attributable acquisition expenses for products
measured using the premium allocation approach (“PAA”) and for other products without a CSM. Core expenses exclude
certain expenses directly attributable to acquiring new business that are capitalized into the CSM instead of flowing directly
through core earnings.
Our focus on expense efficiency has enabled us to drive the benefits of scale across our businesses. We believe there are
further opportunities to leverage our global scale and operating environment, streamline processes and further digitize our
business. As a result, in 2024 we updated our medium-term target for the expense efficiency ratio from less than 50% to less
than 45%.
1 This is a non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below for more information.

Manulife Financial Corporation – Second Quarter 2025 | 9

Quarterly expense efficiency ratio
The expense efficiency ratio was 45.5% in 2Q25, compared with 45.4% in 2Q24. The s light increase in the ratio compared
with 2Q24 is attributed to a 3% decrease in pre-tax core earnings 1 partially offset by a 3% decrease in core expenses. The
reduction in core expenses was primarily a result of disciplined expense management in Global WAM and lower expenses in
Corporate and Other largely due to lower long-term incentive compensation.
As noted above, general expenses are a component of core expenses. T otal 2Q25 general expenses decreased 7% on an
actual exchange rate basis and 8% on a constant exchange rate basis compared with 2Q24, driven by the items noted above
related to the overall increase in core expenses and items excluded from core earnings. General expenses excluded from core
earnings were not significant in 2Q25 and primarily consisted of expenses related to t he acquisition of CQS in 2Q24.
Year-to-date expense efficiency ratio
The year-to-date expense efficiency ratio was 45.7% in 2025, compared with 45.3% in the same period of 2024. The 0.4
percentage point increase in the year-to-date ratio compared with the same period of 2024 reflects a 2% decrease in year-to-
date pre-tax core earnings and year-to-date core expenses consistent with the same period of 2024. Year-to-date core
expenses reflect higher workforce related costs, and the inclusion of an extra quarter of ongoing operating expenses in 2025
related to our acquisition of CQS by Global WAM in 2Q24, offset by disciplined expense management in Global WAM.
General expenses are a component of core expenses. Total year-to-date general expenses in 2025 increased 1% on an actual
exchange rate basis and decreased 1% on a constant exchange rate basis compared with the same period of 2024, driven by
similar items noted above for year-to-date core expenses, as well as a reallocation of amounts within core expenses from
directly attributable maintenance to general expenses, and items excluded from core earnings. Year-to-date general expenses
excluded from core earnings were not substantial in 2025, and primarily consisted of expenses related to the acquisition of
CQS in 2024.
A2 Business Performance

| Quarterly Results | YTD Results
($ millions, unless otherwise stated) (unaudited) | 2Q25 | 1Q25 | 2Q24 | 2025 | 2024
Asia APE sales | $1,705 | $2,027 | $1,259 | $3,732 | $2,540
Canada APE sales | 345 | 491 | 520 | 836 | 970
U.S. APE sales | 180 | 171 | 128 | 351 | 280
Total APE sales(1) | 2,230 | 2,689 | 1,907 | 4,919 | 3,790
Asia new business value(2) | 622 | 657 | 474 | 1,279 | 909
Canada new business value | 161 | 180 | 159 | 341 | 316
U.S. new business value | 63 | 70 | 58 | 133 | 107
Total new business value(1),(2) | 846 | 907 | 691 | 1,753 | 1,332
Asia new business CSM(3) | 663 | 715 | 478 | 1,378 | 969
Canada new business CSM | 100 | 91 | 76 | 191 | 146
U.S. new business CSM | 119 | 101 | 74 | 220 | 171
Total new business CSM(3) | 882 | 907 | 628 | 1,789 | 1,286
Asia CSM net of NCI | 15,786 | 15,904 | 13,456 | 15,786 | 13,456
Canada CSM | 4,133 | 4,052 | 3,769 | 4,133 | 3,769
U.S. CSM | 2,386 | 2,329 | 3,522 | 2,386 | 3,522
Corporate and Other CSM | 11 | 11 | 11 | 11 | 11
Total CSM net of NCI | 22,316 | 22,296 | 20,758 | 22,316 | 20,758
Post-tax CSM net of NCI(2),(4) | 18,527 | 18,524 | 17,150 | 18,527 | 17,150
Global WAM gross flows ($ billions)(1) | 43.8 | 50.3 | 41.4 | 94.1 | 86.9
Global WAM net flows ($ billions)(1) | 0.9 | 0.5 | 0.1 | 1.4 | 6.8
Global WAM assets under management and administration ($ billions)(4) | 1,039.0 | 1,026.3 | 943.9 | 1,039.0 | 943.9
Global WAM total invested assets ($ billions) | 10.4 | 10.0 | 9.0 | 10.4 | 9.0
Global WAM segregated funds net assets ($ billions) | 295.5 | 287.6 | 270.1 | 295.5 | 270.1
Total assets under management and administration ($ billions)(4),(5) | 1,608.2 | 1,603.1 | 1,481.5 | 1,608.2 | 1,481.5
Total invested assets ($ billions)(5) | 438.5 | 445.7 | 410.6 | 438.5 | 410.6
Segregated funds net assets ($ billions)(5) | 436.6 | 428.6 | 406.1 | 436.6 | 406.1

(1)For more information on this metric, see “Non-GAAP and Other Financial Measures” below.
(2)2024 quarterly and year-to-date ne w business value and post-tax CSM net of NCI have been updated to include the impact of GMT, consistent with 2025. See
section A7 “Global Minimum Taxes (GMT)” for more information.
(3)New business CSM is net of NCI.
(4)This item is a non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below for more information.
(5)See section A4 below for more information.
1 Percentage growth/declines in APE sales and NBV are stated on a constant exchange rate basis.
2 Asia Other excludes Hong Kong and Japan.
3 For more information on this metric, see “Non-GAAP and Other Financial Measures” below. In addition, 2024 NBV margin was updated to include the impact of
GMT, consistent with 2025. See section A7 “Global Minimum Taxes (GMT)” for more information.
4 Percentage growth/declines in organic CSM is stated on a constant exchange rate basis.

Manulife Financial Corporation – Second Quarter 2025 | 10

Annualized premium equivalent (“APE”) sales were $2.2 billion in 2Q25, an increase of 15%1 compared with 2Q24, new
business value (“NBV”) was $846 million in 2Q25, an increase of 20%1 compared with 2Q24 and new business CSM was
$882 million, an increase of 37% compared with 2Q24. New business results by segment were as follows:
•Asia continued to generate strong growth in APE sales, NBV and new business CSM in 2Q25, with an increase of 31%,
28%, and 34%, respectively, compared with 2Q24, reflecting higher sales volumes in Hong Kong and Asia Other.2 NBV
margin 3 of 40.0% was approximately in line with 2Q24, and increased sequentially compared with the first quarter of 2025
(“1Q25”).
•Canada APE sales de creased 34% in 2Q25, as strong participating life insurance sales were more than offset by the non-
recurrence of a large-case Group Insurance sale in 2Q24. These sales results, combined with a more favourable product
mix, drove a 1% increase in NBV. New business CSM increased 32% compared with 2Q24, reflecting the strong sales
growth in Individual Insurance.
•U.S. delivered strong new business growth in 2Q25, increasing APE sales, NBV and new business CSM by 40%, 12%
and 59%, respectively, compared with 2Q24, reflecting continued demand for our accumulation insurance products.
Year-to-date APE sales were $4,919 million in 2025, an increase of 26% compared with the same period of 2024, year-to-
date NBV was $1,753 million in 2025, an increase of 27% compared with the same period of 2024 and year-to-date new
business CSM was $1,789 million in 2025, an increase of 34% compared with the same period of 2024. New business results
by segment were as follows:
•Asia year-to-date APE sales, NBV and new business CSM increased 41%, 35%, and 36%, respectively, in 2025
c ompared with the same period of 2024, reflecting higher sales volumes in Hong Kong and Asia Other. NBV margin was
39.0% in 2025 compared with 41.3% in the same period of 2024.
•Canada year-to-date APE sales decreased 14% in 2025 compared with the same period of 2024, driven by similar factors
as mentioned above for the quarter. These sales results, combined with a more favourable product mix, drove an 8%
increase in year-to-date NBV. New business CSM increased 31% compared with the same period of 2024, reflecting the
strong sales growth in Individual Insurance.
•U.S. delivered strong new business growth in 2025, increasing year-to-date APE sales, NBV and new business CSM by
21%, 21% and 24%, respectively, compared with the same period of 2024, reflecting continued demand for our
accumulation insurance products.
CSM net of NCI was $22,316 million as at June 30, 2025, an increase of $189 million compared with December 31, 2024.
Organic CSM movement was an increase of $1,162 million in the first half of 2025, representing an 11% growth on an
annualized basis 4, primarily driven by the impact of new business, interest accretion and net favourable insurance experience,
partially offset by amortization recognized in core earnings. Inorganic CSM movement was a decrease of $973 million in the
first half of 2025, driven by the unfavourable impacts of changes in foreign currency exchange rates as well as the net impact
of both reinsurance transactions and markets.
Global WAM reported net inflows were $0.9 billion in 2Q25 compared with net inflows of $0.1 billion in 2Q24:
•Retirement net inflows of $2.0 billion in 2Q25 increased compared with net outflows of $1.3 billion in 2Q24, reflecting
higher retirement plan sales across all geographies and a large-case retirement plan redemption in the U.S. in 2Q24.
•Retail net outflows of $3.2 billion in 2Q25 increased compared with net outflows of $0.1 billion in 2Q24, driven by lower net
sales through third-party intermediaries in North America and in money markets funds in mainland China. This is partially
offset by higher net sales through our retail wealth platform.
•Institutional Asset Management net inflows of $2.1 billion in 2Q25 increased compared with net inflows of $1.4 billion in
2Q24, driven by lower redemptions in fixed income mandates, partially offset by higher redemptions in equity mandates.
Year-to-date net inflows were $1.4 billion in 2025, compared with net inflows of $6.8 billion in the same period of 2024. The
decrease was primarily driven by net outflows in Retail, due to lower net sales through third party intermediaries, partially offset
by higher net sales through our retail wealth platform, and higher net outflows in Retirement, due to higher retirement plan
redemptions and higher net member withdrawals in North America. This was partially offset by increased net inflows in
Institutional Asset Management, driven by lower redemptions in fixed income mandates.
1 The net redemption of capital instruments consists of the redemption of $1.0 billion of subordinated debt and the issuance of $0.5 billion of subordinated debt in
2Q25.
2 These items are non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below for more information. Post-tax CSM and adjusted book
value have been updated to include the impact of GMT, consistent with 2025. See section A7 “Global Minimum Taxes (GMT)” for more information.
3 Includes cash & cash equivalents, comprised of cash on deposit, Canadian and U.S. Treasury Bills and high quality short-term investments, and marketable
assets, comprised of investment grade government and agency bonds, investment grade corporate bonds, investment grade securitized instruments, publicly
traded common stocks and preferred shares. Included in this balance is $15.6 billion of encumbered cash and cash equivalents and marketable securities as at
June 30, 2025 (December 31, 2024 - $15.6 billion).

Manulife Financial Corporation – Second Quarter 2025 | 11

A3 Financial Strength

| Quarterly Results | YTD Results
(unaudited) | 2Q25 | 1Q25 | 2Q24 | 2025 | 2024
MLI’s LICAT ratio(1) | 136% | 137% | 139% | 136% | 139%
Financial leverage ratio(2),(3) | 23.6% | 23.9% | 25.0% | 23.6% | 25.0%
Consolidated capital ($ billions)(3),(4) | $78.0 | $80.4 | $76.4 | $78.0 | $76.4
Book value per common share ($) | $24.90 | $25.88 | $23.71 | $24.90 | $23.71
Adjusted book value per common share ($)(2),(3) | $35.78 | $36.66 | $33.32 | $35.78 | $33.32

(1)This item is disclosed under the Office of the Superintendent of Financial Institutions (“OSFI”) Life Insurance Capital Adequacy Test Public Disclosure
Requirements guideline.
(2)This item is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” below for more information.
(3)2024 fina ncial leverage ratio, consolidated capital and adjusted book value per common share have been updated to include the impact of GMT, consistent with
2025. See section A7 “Global Minimum Taxes (GMT)” for more information.
(4)This item is a capital management measure. For more information on this metric, see “Non-GAAP and Other Financial Measures” below.
The Life Insurance Capital Adequacy Test (“LICAT”) ratio for The Manufacturers Life Insurance Company (“MLI”) as at
June 30, 2025 was 136% compared with 137% as at March 31, 2025. The decrease was driven by common share buybacks,
the net redemption of subordinated debt, and market movements, partially offset by an update from OSFI to lower the capital
charge on certain infrastructure assets in Canada.
MFC’s LICAT ratio was 124% as at June 30, 2025 compared with 126% as at March 31, 2025, with the decrease driven by
similar factors that impacted the movement in MLI’s LICAT ratio. The difference between the MLI and MFC ratios as at June
30, 2025 was largely due to the $6.3 billion of MFC senior debt outstanding that does not qualify as available capital at the
MFC level but, based on the form it was down-streamed, qualifies as regulatory capital for MLI.
MFC’s financial leverage ratio as at June 30, 2025 was 23.6%, a decrease of 0.3 percentage points from 23.9% as at March
31, 2025. The decrease was driven by the net redemption of capital instruments 1 and the impact of a stronger Canadian dollar
on foreign currency denominated debt, partially offset by a decrease in total equity. The decrease in total equity was driven
mainly by dividends, common share buybacks, and total comprehensive income, which was also impacted by a stronger
Canadian dollar and market movements.
MFC’s consolidated capital was $78.0 billion as at June 30, 2025, a decrease of $1.9 billion compared with $79.9 billion as
at December 31, 2024. The decrease was primarily driven by a decrease in total equity and the net redemption of capital
instruments, partially offset by higher post-tax CSM 2. The decrease in total equity was mainly driven by dividends and common
share buybacks, and total comprehensive income, which was also impacted by a stronger Canadian dollar and market
movements.
Cash and cash equivalents and marketable securities 3 was $260.8 billion as at June 30, 2025 compared with $263.3 billion
as at December 31, 2024. The decrease of $2.5 billion was primarily driven by the impact of unfavourable changes in foreign
exchange rates, partially offset by the impact of lower interest rates, and growth in equity markets.
Book value per common share as at June 30, 2025 was $24.90, a 3% decrease compared with $25.63 as at December 31,
2024. The number of common shares outstanding was 1,703 million as at June 30, 2025, a net decrease of 26 million shares
from 1,729 million as at December 31, 2024, primarily driven by common share buybacks. On February 19, 2025, we
announced a new Normal Course Issuer Bid to purchase for cancellation up to 51.5 million shares, representing approximately
3% of outstanding common shares.
Adjusted book value per common share as at June 30, 2025 was $35.78, a 1% decrease compared with $36.25 as at
December 31, 2024, driven by a decrease in the adjusted book value 2 and a lower number of common shares outstanding.
Adjusted book value decreased $1.7 billion due to a reduction in total common shareholders’ equity partially offset by an
increase in post-tax CSM, net of NCI. The decrease in common shareholders’ equity was mainly driven by dividends and
common share buybacks, and total comprehensive income, which was also impacted by a stronger Canadian dollar and
market movements.
A4 Assets under Management and Administration (“AUMA”)
AUMA as at June 30, 2025 was $1.6 trillion, an increase of 3% compared with December 31, 2024, primarily due to the
favourable impact of equity markets, partially offset by the transfer of invested assets related to the RGA U.S. Reinsurance
Transaction. Total invested assets decreased 1% on an actual exchange rate basis, primarily due to the impact of the RGA
U.S. Reinsurance Transaction. Segregated funds net assets were in line on an actual exchange rate basis.
1 The Evident AI Index for Insurance assesses AI maturity across 30 of the most prominent insurance companies in North America and Europe, measuring
progress across four key categories: Talent, Innovation, Leadership, and Transparency.
2 Announced in July 2025, based on 2024 new business sales.
3 The Dubai International Financial Centre is a special economic zone in Dubai designed to facilitate financial and business activities in the Middle East, Africa
and South Asia region.
4 Maven Clinic, Meet Maven, 2024.

Manulife Financial Corporation – Second Quarter 2025 | 12

A5 Impact of Foreign Currency Exchange Rates
Changes in foreign currency exchange rates from 2Q24 to 2Q25 increased core earnings by $27 million in 2Q25, primarily due
to a weaker Canadian dollar relative to the Japanese Yen. Changes in foreign currency exchange rates increased year-to-date
core earnings by $105 million in 2025 compared with the same period of 2024, primarily due to a weaker Canadian dollar
relative to the U.S. dollar. The impact of foreign currency exchange rates on items excluded from core earnings does not
provide relevant information given the nature of those items.
A6 Bu siness Highlights
We are embedding AI across our business, accelerating our journey to become a Digital, Customer Leader and
earning the top spot for AI maturity in our industry
In Global WAM, we l aunched an AI-powered sales enablement solution in U.S. Retirement, delivering real-time insights and
personalized content to enhance our sales operation and productivity, improve our sales close ratio, and drive revenue growth.
This doubled the number of sales opportunities compared with 2Q24 and reduced the time spent on information searches by
over 50%.
In Asia, we r olled out VOICE in Singapore and Japan, a multi-signal dashboard that includes call trend analysis, net sentiment
scores, topic trends and deep dive insights from call center transcripts. VOICE utilizes GenAI to categorize data, find
correlations, and customize insights by analyzing near real-time trends from customer interactions. These insights help us to
better understand customer sentiment and key interests, enhance services, improve training, and identify opportunities to
better deliver value to our customers.
In the U.S., we l aunched a GenAI functionality in long-term care (“LTC”) to enhance automated claims processing to
strengthen the value of our LTC business and provide insights for future innovations.
In Canada, we l aunched an end-to-end digital travel insurance platform that modernizes the distributor experience and
simplifies the purchasing process for Canadians and their families.
We were ranked first in the life insurance sector for AI maturity in the inaugural Evident AI Index for Insurance 1, ranking in the
top five across the insurance industry overall. Our strong performance, particularly around Leadership and Transparency, is a
testament to the multi-year investments in AI across the Company, reflecting our capability in scaling AI effectively.
We continue to strengthen our distribution capabilities and expand product offerings to meet evolving customer
needs
In Asia, we d emonstrated the strength of our agency force with a 23% year-over-year increase in the number of Million Dollar
Round Table (“MDRT”) members for Manulife Asia, positioning us as the third largest globally in 2025 MDRT membership.2
In addition, we b ecame the first international life insurer to establish an office in the Dubai International Financial Centre 3
dedicated to advising on and offering life insurance contracts to high-net-worth (“HNW”) customers. This strategic move
deepens our presence in the Middle East and enhances our ability to address the growing wealth and protection needs of
HNW and ultra-HNW individuals in the region.
In Global WAM, we c ontinued to deliver comprehensive investment solutions by expanding our Global Retail product lineup
with the launch of a diversified real assets strategy in Malaysia to help investors navigate market volatility. In addition, we
introduced four new actively managed ETF series in Canada, enhancing access to diversified equity and fixed income
exposures, to meet evolving investor needs.
Furthermore, we e nhanced the Manulife iFUNDS platform, making it the first integrated digital wealth solution in Singapore that
offers advisors a unified view of clients’ Unit Trust and Investment-Linked Plan (“ILP”) holdings. By integrating these into a
single platform and incorporating AI-powered ILP analytics capabilities, the enhancements streamline portfolio oversight,
accelerate transaction execution, and empower advisors to deliver more personalized and insightful financial guidance.
In Canada, we p artnered with Maven Clinic, the world’s largest virtual clinic for women’s and family health 4, to offer eligible
Group Benefits members 24/7 virtual access to personalized support during some of their most important stages of life,
including fertility, maternity, parenting, and menopause. This initiative addresses critical care gaps that impact women’s health
and workforce participation.
I n the U.S., we e xpanded our wholesaling team to pursue more targeted growth strategies and accelerate our penetration
within the U.S. HNW and mass affluent markets.

Manulife Financial Corporation – Second Quarter 2025 | 13

A7 Global Minimum Taxes (“GMT”)
On June 20, 2024, the Canadian government passed the Global Minimum Tax Act into law. Canada’s GMT is applied
retroactively to fiscal periods commencing on or after December 31, 2023.
Impact of GMT on net income attributed to shareholders and core earnings
As additional local jurisdictions are expected to enact the GMT in 2025, GMT is now recognized in net income in the reporting
segments whose earnings are subject to this tax. GMT is reported in both core earnings and items excluded from core
earnings in line with our definition of core earnings in section E3 “Non-GAAP and Other Financial Measures” below. As items
excluded from core earnings are presented on a post-tax basis, each line will now include the appropriate impact of GMT.
In 2024, the impact of GMT was recognized in the Corporate and Other segment. To improve the comparability of core
earnings between 2025 and 2024, we have updated 2024 quarterly core earnings to reallocate GMT from the Corporate and
Other segment to the segment whose core earnings are subject to this tax. This update includes a reallocation of 1Q24 GMT,
previously reported in 2Q24 items excluded from core earnings, to 1Q24 core earnings. There is no impact to our 2024
quarterly net income attributed to shareholders by segment or reporting period. The impact of the reallocation of GMT between
segments and by quarter was offset by an equal amount in items excluded from core earnings in the segments. This offset is
reported in the reinsurance transaction, t ax-related items and other line. In total, with these updates, we continue to record
total GMT expense of $231 million in 2024, however $208 million is now reported in core earnings and $23 million is now
reported in items excluded from core earnings.
As a result of the update to core earnings, we have also updated the following 2024 non-GAAP measures:
•core ROE
•core EPS
•core earnings available to common shareholders
•common share dividend core payout ratio
•highest potential business core earnings contribution
Impact of GMT on other financial measures
GMT also impacts additional metrics reported on a post-tax basis. In 2025, we have included the impact of GMT in these
measures and we have updated 2024 comparatives to include the impact of GMT.
The following non-GAAP financial measures and non-GAAP ratios have been updated:
•Post-tax CSM and post-tax CSM net of NCI
•Adjusted book value and Adjusted book value per common share
•Financial leverage ratio
The following other financial measures have been updated:
•consolidated capital
•NBV and NBV margin

Manulife Financial Corporation – Second Quarter 2025 | 14

B PERFORMANCE BY SEGMENT
B1 Asia

($ millions, unless otherwise stated) | Quarterly Results | YTD Results
Canadian dollars | 2Q25 | 1Q25 | 2Q24 | 2025 | 2024
Profitability: |  |  |  |  |
Net income attributed to shareholders | $830 | $624 | $582 | $1,454 | $945
Core earnings(1) | 720 | 705 | 616 | 1,425 | 1,242
Business performance: |  |  |  |  |
Annualized premium equivalent sales | 1,705 | 2,027 | 1,259 | 3,732 | 2,540
New business value | 622 | 657 | 474 | 1,279 | 909
New business contractual service margin | 663 | 715 | 478 | 1,378 | 969
Contractual service margin net of NCI | 15,786 | 15,904 | 13,456 | 15,786 | 13,456
Assets under management ($ billions)(2) | 202.5 | 200.3 | 174.6 | 202.5 | 174.6
Total invested assets ($ billions) | 173.3 | 171.7 | 148.2 | 173.3 | 148.2
Segregated funds net assets ($ billions) | 29.2 | 28.6 | 26.4 | 29.2 | 26.4
U.S. dollars |  |  |  |  |
Profitability: |  |  |  |  |
Net income attributed to shareholders | US$600 | US$435 | US$424 | US$1,035 | US$694
Core earnings(1) | 520 | 492 | 449 | 1,012 | 914
Business performance: |  |  |  |  |
Annualized premium equivalent sales | 1,233 | 1,412 | 920 | 2,645 | 1,870
New business value | 451 | 457 | 346 | 908 | 669
New business contractual service margin | 480 | 498 | 349 | 978 | 713
Contractual service margin net of NCI | 11,568 | 11,051 | 9,825 | 11,568 | 9,825
Assets under management ($ billions)(2) | 148.4 | 139.2 | 127.5 | 148.4 | 127.5
Total invested assets ($ billions) | 127.0 | 119.3 | 108.2 | 127.0 | 108.2
Segregated funds net assets ($ billions) | 21.4 | 19.9 | 19.3 | 21.4 | 19.3

(1)See “Non-GAAP and Other Financial Measures” below for a reconciliation of quarterly core earnings to net income (loss) attributed to shareholders.
(2)This item is a non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below for more information.
Asia’s net income attributed to shareholder s was $830 million in 2Q25 compared with $582 million in 2Q24. Net income
attributed to shareholders is comprised of core earnings, which were $720 million in 2Q25 compared with $616 million in
2Q24, and items excluded from core earnings, which amounted to a net gain of $110 million in 2Q25 compared with a net
charge of $34 million in 2Q24. See section E3 “Non-GAAP and Other Financial Measures” below, for a reconciliation of
quarterly core earnings to net income (loss) attributed to shareholders and section A1 “Profitability” above, for explanations of
the items excluded from core earnings. The change in core earnings expressed in Canadian dollars was due to the factors
described below. In addition, the change in core earnings reflected a net $20 million favourable impact due to changes in
various foreign currency exchange rates versus the Canadian dollar.
Expressed in U.S. dollars, the presentation currency of the segment, net income attributed to shareholders was US$600
million in 2Q25 compared with US$424 million in 2Q24. Core earnings were US$520 million in 2Q25 compared with US$449
million in 2Q24, and items excluded from core earnings were a net gain of US$80 million in 2Q25 compared with a net charge
of US$25 million in 2Q24.
Core earnings i n 2Q25 increased 13% compared with 2Q24, driven by an increase in expected earnings on insurance
contracts and higher expected i nvestment earnings, both reflecting business growth, f avourable claims experience and
improved impact of new business, partially offset by an increase in the ECL provision in 2Q25 compared with a release in
2Q24. Investment income on allocated capital also increased core earnings by US$16 million on a pre-tax basis compared
with 2Q24.
Year-to-date net income attributed to shareholders was US$1,035 million in 2025 compared with US$694 million in the same
period of 2024. Year-to-date core earnings were US$1,012 million in 2025, an increase of 10% compared with US$914 million
in 2024, driven by similar factors as noted above for the quarter. Investment income on allocated capital also increased year-
to-date core earnings by US$30 million in 2025 on a pre-tax basis compared with the same period of 2024. In addition, the GA
Reinsurance Transaction reduced year-to-date core earnings by US$8 million in 2025 compared with the same period of 2024.
Items excluded from year-to-date core earnings were a net gain of US$23 million in 2025 compared with a net charge of
US$220 million in the same period of 2024. See section E3 “Non-GAAP and other financial measures” below, for a
reconciliation of year-to-date core earnings to year-to-date net income (loss) attributed to shareholders. Expressed in
Canadian dollars, year-to-date core earnings reflected a net $57 million favourable impact of changes in various foreign
currency exchange rates versus the Canadian dollar.
1 Announced in July 2025, based on 2024 new business sales.
2 The Dubai International Financial Centre is a special economic zone in Dubai designed to facilitate financial and business activities in the Middle East, Africa
and South Asia region.

Manulife Financial Corporation – Second Quarter 2025 | 15

APE sales were US$1,233 million in 2Q25, an increase of 31% compared with 2Q24, driven by growth in Hong Kong and Asia
Other, partially offset by lower sales in Japan. NBV of US$451 million in 2Q25 increased 28% compared with 2Q24, driven by
higher sales volumes, partially offset by business mix. NBV margin was 40.0% in 2Q25 c ompared with 41.0% in 2Q24 and
38.1% in 1Q25. New business CSM of US$480 million in 2Q25 increased 34% compared with the same period of 2Q24
reflecting higher sales volumes. Year-to-date APE sales of US$2,645 million in 2025 increased 41% compared with the same
period of 2024, driven by strong sales across all channels in Hong Kong, higher agency and bancassurance sales in Asia
Other, and higher broker and bancassurance sales in Japan. Year-to-date NBV of US$908 million in 2025 increased 35%
compared with the same period of 2024, driven by higher sales volumes, partially offset by business mix. Year-to-date new
business CSM of US$978 million in 2025 increased 36% compared with the same period of 2024, driven by higher sales
volumes, partially offset by business mix.
•Hong Kong APE sales of US$512 million in 2Q25 increased 66% compared with 2Q24, reflecting higher sales across all
channels driven by strong growth in sales of savings and health and protection products to both mainland Chinese visitor
and domestic customers. Hong Kong NBV of US$242 million in 2Q25 increased 49% compared with 2Q24, driven by
higher sales volumes, partially offset by a shift in mix towards savings products. The NBV margin of 47.3% in 2Q25
decreased 5.5 and 2.6 percentage points compared with 2Q24 and 1Q25, respectively, reflecting changes in product mix.
Hong Kong new business CSM of US$207 million in 2Q25 increased 42% compared with 2Q24, driven by higher sales
volumes, partially offset by product mix.
•Japan APE sales of US$94 million in 2Q25 decreased 14% compared with 2Q24 due to lower sales of savings products
compared with strong sales in 2Q24. Japan NBV of US$32 million in 2Q25 decreased 47% compared with 2Q24, driven
by product mix and lower sales volumes. The NBV margin of 33.8% in 2Q25 decreased 21.2 percentage points compared
with 2Q24. Japan new business CSM of US$53 million in 2Q25 decreased 24% compared with 2Q24, driven by lower
sales volumes and product mix.
•Asia Other APE sales of US$627 million in 2Q25 increased 21% compared with 2Q24, driven by higher sales in mainland
China bancassurance and agency channels, and across all channels in Singapore. Asia Other NBV of US$177 million in
2Q25 increased 35% compared with 2Q24, driven by higher sales volumes and product mix. The NBV margin of 34.0% in
2Q25 increased 4.6 percentage points compared with 2Q24. Asia Other new business CSM of US$220 million in 2Q25
increased 56% compared with 2Q24, driven by product mix and higher sales volumes.
CSM net of NCI was US$11,568 million as at June 30, 2025, an increase of US$761 million compared with December 31,
2024. Organic CSM movement was an increase of US$613 million in the first half of 2025, driven by the impact of new
business, interest accretion and a net increase in insurance experience, partially offset by amortization recognized in core
earnings. Inorganic CSM movement was an increase of US$148 million in the first half of 2025, largely driven by the impact of
interest rate movement and weakening of the U.S. dollar against most Asian currencies.
Assets under management of US$148.4 billion as at June 30, 2025, an increase of 7% compared with December 31, 2024,
driven by t he impact of lower i nterest rates and favourable equity market performance on invested assets and segregated
funds net assets.
Business highlights – In 2Q25, we:
•D emonstrated the strength of our agency force with a 23% year-over-year increase in the number of Million Dollar Round
Table (“MDRT”) members for Manulife Asia, positioning us as the third largest globally in 2025 MDRT membership 1;
•B ecame the first international life insurer to establish an office in the Dubai International Financial Centre 2 dedicated to
advising on and offering life insurance contracts to high-net-worth (“HNW”) customers. This strategic move deepens our
presence in the Middle East and enhances our ability to address the growing wealth and protection needs of HNW and
ultra-HNW individuals in the region;
•R olled out VOICE in Singapore and Japan, a multi-signal dashboard that includes call trend analysis, net sentiment
scores, topic trends and deep dive insights from call center transcripts. VOICE utilizes GenAI to categorize data, find
correlations, and customize insights by analyzing near real-time trends from customer interactions. These insights help us
to better understand customer sentiment and key interests, enhance services, improve training, and i dentify opportunities
to better deliver value to our customers; and,
•Further delivered on our commitment to helping our customers live healthier. I n the Philippines, we e ntered the individual
medical reimbursement insurance market with the launch of Medical Secure. This product covers medical expenses of our
customers, while also providing them with cashless access to quality healthcare through a nationwide network of
accredited healthcare providers.

Manulife Financial Corporation – Second Quarter 2025 | 16

B2 Canada

| Quarterly Results | YTD Results
($ millions, unless otherwise stated) | 2Q25 | 1Q25 | 2Q24 | 2025 | 2024
Profitability: |  |  |  |  |
Net income attributed to shareholders | $390 | $222 | $79 | $612 | $352
Core earnings(1) | 419 | 374 | 402 | 793 | 766
Business performance: |  |  |  |  |
Annualized premium equivalent sales | 345 | 491 | 520 | 836 | 970
Contractual service margin | 4,133 | 4,052 | 3,769 | 4,133 | 3,769
Manulife Bank average net lending assets ($ billions)(2) | 27.6 | 26.9 | 25.7 | 27.4 | 25.7
Assets under management ($ billions) | 148.8 | 148.7 | 140.1 | 148.8 | 140.1
Total invested assets ($ billions) | 111.2 | 111.3 | 103.5 | 111.2 | 103.5
Segregated funds net assets ($ billions) | 37.6 | 37.4 | 36.6 | 37.6 | 36.6

(1)See “Non-GAAP and Other Financial Measures” below for a reconciliation of quarterly core earnings to net income (loss) attributed to shareholders.
(2)This item is a non-GAAP financial measure. See “Non-GAAP and Other Financial Measures” below for more information.
Canada’s net income attributed to shareholders was $390 million in 2Q25 compared with $79 million in 2Q24. Net income
attributed to shareholders is comprised of core earnings, which were $419 million in 2Q25 compared with $402 million in
2Q24, and items excluded from core earnings, which amounted to a net charge of $29 mi llion i n 2Q25 compared with a net
charge of $323 million in 2Q24. See section E3 “Non-GAAP and Other Financial Measures” below, for a reconciliation of
quarterly core earnings to net income (loss) attributed to shareholders and section A1 “Profitability” above, for explanations of
the items excluded from core earnings.
Core earnings in 2Q25 increased $17 million or 4% compared with 2Q24, reflecting business growth in Group Insurance,
higher expected investment earnings, and an increase in CSM amortization, partially offset by a release in the provision for
ECL in 2Q24 and less favourable claims experience in Group Insurance. In addition, the RGA Canadian Reinsurance
Transaction reduced core earnings by $9 million in 2Q25 compared with 2Q24. Investment income on allocated capital also
reduced core earnings by $7 million on a pre-tax basis compared with 2Q24.
Y ear-to-date net income attributed to shareholders was $612 million in 2025 compared with $352 million in the same period of
2024. Year-to-date core earnings were $793 million in 2025 compared with $766 million in the same period of 2024. The
increase in year-to-date core earnings of $27 million or 4% reflected business growth in Group Insurance, improved insurance
experience in Individual Insurance, and higher expected investment earnings, partially offset by an increase in the provision for
ECL in 2025 compared with a release in the same period of 2024 and less favourable insurance experience in Group
Insurance. In addition, the RGA Canadian Reinsurance Transaction also reduced year-to-date core earnings by $13 million in
2025 compared with the same period of 2024. I nvestment income on allocated capital also reduced year-to-date core earnings
by $14 million on a pre-tax basis compared with the same period of 2024. Items excluded from year-to-date core earnings
were a net charge of $181 million in 2025 compared with a net charge of $414 million for the same period of 2024. See section
E3 “Non-GAAP and other financial measures” below, for a reconciliation of year-to-date core earnings to year-to-date net
income (loss) attributed to shareholders.
APE sales of $345 million in 2Q25 decreased $175 million, or 34%, compared with 2Q24.
•Individual Insurance APE sales of $152 million in 2Q25 increased $43 million, or 39%, compared with 2Q24, primarily due
to higher participating life insurance sales.
•Group Insurance APE sales of $136 million in 2Q25 decreased $216 million or 61% compared with 2Q24, d riven by the
non-recurrence of a large-case sale in 2Q24.
•Annuities APE sales of $57 million in 2Q25 decreased $2 million, or 3% compared with 2Q24, primarily due to lower fixed
annuity sales.
Year-to-date APE sales were $836 million in 2025, $134 million or 14% lower compared with the same period of 2024,
primarily due to the non-recurrence of a large-case sale in Group Insurance in 2Q24, partially offset by higher participating life
insurance sales.
CSM was $4,133 million as at June 30, 2025, representing an increase of $24 million compared with December 31, 2024.
Organic CSM movement was an increase of $62 million in the first half of 2025, driven by the impact of new business and
interest accretion, partially offset by amortization recognized in core earnings. Inorganic CSM movement was a decrease of
$38 million in the first half of 2025, primarily related to the unfavourable year-to-date impacts of interest rates, partially offset by
the impact of amendments to reinsurance treaties in 2Q25 and favourable year-to-date equity market experience.
M anulife Bank average net lending assets were $27.6 billion for the quarter ending June 30, 2025, up $1.1 billion, or 4%,
compared with the quarter ending December 31, 2024, driven by business growth.
Assets under managem ent w ere $148.8 billion as at June 30, 2025, an increase of $3.5 billion, or 2%, compared with
December 31, 2024, due to higher total invested assets from business growth, partially offset by t he net unfavourable impact
from interest rates and equity m arkets.
1 Maven Clinic, Meet Maven, 2024.

Manulife Financial Corporation – Second Quarter 2025 | 17

Business highlights – In 2Q25, we:
•P artnered with Maven Clinic, the world’s largest virtual clinic for women’s and family health 1, to offer eligible Group
Benefits members 24/7 virtual access to personalized support during some of their most important stages of life, including
fertility, maternity, parenting, and menopause. This initiative addresses critical care gaps that impact women’s health and
workforce participation; and
•L aunche d an end-to-end digita l travel insurance platform that modernizes the distributor experience and simplifies the
purchasing process for Canadians and their families.
B3 U.S.

($ millions, unless otherwise stated) | Quarterly Results | YTD Results
Canadian dollars | 2Q25 | 1Q25 | 2Q24 | 2025 | 2024
Profitability: |  |  |  |  |
Net income (loss) attributed to shareholders | $36 | $(569) | $135 | $(533) | $27
Core earnings(1) | 194 | 361 | 415 | 555 | 867
Business performance: |  |  |  |  |
Annualized premium equivalent sales | 180 | 171 | 128 | 351 | 280
Contractual service margin | 2,386 | 2,329 | 3,522 | 2,386 | 3,522
Assets under management ($ billions) | 194.3 | 200.9 | 203.4 | 194.3 | 203.4
Total invested assets ($ billions) | 120.0 | 125.8 | 130.4 | 120.0 | 130.4
Segregated funds invested net assets ($ billions) | 74.3 | 75.1 | 73.0 | 74.3 | 73.0
U.S. dollars |  |  |  |  |
Profitability: |  |  |  |  |
Net income (loss) attributed to shareholders | US$26 | US$(397) | US$98 | US$(371) | US$18
Core earnings(1) | 141 | 251 | 303 | 392 | 638
Business performance: |  |  |  |  |
Annualized premium equivalent sales | 130 | 120 | 93 | 250 | 206
Contractual service margin | 1,748 | 1,618 | 2,572 | 1,748 | 2,572
Assets under management ($ billions) | 142.4 | 139.6 | 148.6 | 142.4 | 148.6
Total invested assets ($ billions) | 87.9 | 87.4 | 95.3 | 87.9 | 95.3
Segregated funds invested net assets ($ billions) | 54.5 | 52.2 | 53.3 | 54.5 | 53.3

(1)See “Non-GAAP and Other Financial Measures” below for a reconciliation of quarterly core earnings to net income (loss) attributed to shareholders.
U.S.’s net income attributed to shareholders was $36 million in 2Q25 compared with $135 million in 2Q24. Net income
(loss) attributed to shareholders is comprised of core earnings, which were $194 million in 2Q25 compared with $415 million in
2Q24, and items excluded from core earnings, which amounted to a net charge of $158 million in 2Q25 compared with a net
charge of $280 million in 2Q24. See section E3 “Non-GAAP and Other Financial Measures” below, for a reconciliation of
quarterly core earnings to net income (loss) attributed to shareholders and section A1 “Profitability” above, for explanations of
the items excluded from core earnings. The change in core earnings expressed in Canadian dollars was due to the factors
described below. In addition, the change in core earnings reflected a $2 million favourable impact from the strengthening of the
U.S. dollar compared with the Canadian dollar.
Ex pressed in U.S. dollars, the functional currency of the segment, net income attributed to shareholders was US$26 million in
2Q25 compared with US$98 million in 2Q24. Core earnings were US$141 million in 2Q25 compared with US$303 million in
2Q24 and items excluded from core earnings were a net charge of US$115 million in 2Q25 compared with a net charge of
US$205 million in 2Q24.
Core earnings in 2Q25 decreased U S$162 million or 53% compared with 2Q24 reflecting unfavourable life insurance claims
experience from elevated mortality on policies with high face value, lower expected investment earnings, an increase in the
ECL provision, and the net impact of the 2024 annual review of actuarial methods and assumptions, which impacted expected
investment earnings and insurance service result. Investment income on allocated capital also reduced core earnings by
US$13 million on a pre-tax basis compared with 2Q24. T he RGA U.S. Reinsurance Transaction reduced core earnings by
US$7 million in 2Q25 compared with 2Q24, attributable to the impact on expected investment earnings and the expected
earnings on insurance contracts.
Year-to-date net loss attributed to shareholders was US$371 million in 2025 compared with year-to-date net income attributed
to shareholders of US$18 million in the same period of 2024. Year-to-date core earnings were US$392 million in 2025
compared with US$638 million in the same period of 2024. Year-to-date core earnings decreased US$246 million mainly due
to similar factors as noted above for the quarter, and improved lapse experience. Investment income on allocated capital also
reduced year-to-date core earnings by US$27 million on a pre-tax basis in 2025 compared with 2024. The RGA U.S.
Reinsurance Transaction reduced year-to-date core earnings by US$8 million in 2025 compared with 2024, attributable to the
impact on expected investment earnings, the expected earnings on insurance contracts, and the change in ECL. In addition,

Manulife Financial Corporation – Second Quarter 2025 | 18

the GA Reinsurance Transaction increased year-to-date core earnings by US$5 million in 2025 compared with 2024. Items
excluded from year-to-date core earnings were a net charge of US$763 million in 2025 compared with a net charge of US$620
million for the same period of 2024. See section E3 “Non-GAAP and other financial measures” below, for a reconciliation of
year-to-date core earnings to year-to-date net income (loss) attributed to shareholders. Expressed in Canadian dollars, year-
to-date core earnings reflected a $24 million favourable impact of strengthening of the U.S. dollar compared with the Canadian
dollar.
APE sales of US$130 million in 2Q25 increased 40% compared with 2Q24, primarily reflecting continued demand for our
accumulation insurance products. Year-to-date APE sales in 2025 of US$250 million increased 21% c ompared with the same
period of 2024 for the reason stated above.
CSM was US$1,748 million as at June 30, 2025, an increase of US$33 million compared with December 31, 2024. Organic
CSM movement was an increase of US$165 million in the first half of 2025, driven by the impact of new business, net
f avourable insurance experience and interest accretion, partially offset by amortization recognized in core earnings. The net
favourable insurance experience was mainly due to claims and lapse experience in long-term care. Inorganic CSM movement
was a decrease of US$132 million in the first half of 2025 due to the RGA U.S. Reinsurance Transaction in 1Q25, partially
offset by favourable year-to-date market impacts from equity market experience.
Assets under management were US$142.4 billion as at June 30, 2025, a decrease of 4% or US$6.6 billion compared with
December 31, 2024. The decrease was largely due to the transfer of invested assets related to the RGA U.S. Reinsurance
Transaction, partially offset by the net impact from interest rates and equity markets on both total invested assets and
segregated funds net assets.
Business highlights – In 2Q25, we:
•E x panded our wholesaling team to pursue more targeted growth strategies and accelerate our penetration within the U.S.
HNW and mass affluent markets;
•Advanced our mission to help our customers live longer, healthier, and better lives by offering eligible John Hancock
Vitality members access to continuous glucose monitoring technology and dietitian support. Combined, these tools enable
real-time glucose tracking and insights, empowering users to optimize diet, exercise, and lifestyle choices – another
addition to our growing suite of offerings that help our customers proactively manage their health; and
•L a unched a GenAI functionality in long-term care (“LT C”) to enhance automated claims processing to strengthen the value
of our LTC business and provide insights for future innovations.
B4 Global Wealth and Asset Management

| Quarterly Results | YTD Results
($ millions, unless otherwise stated) | 2Q25 | 1Q25 | 2Q24 | 2025 | 2024
Profitability: |  |  |  |  |
Net income attributed to shareholders | $482 | $443 | $350 | $925 | $715
Core earnings(1) | 463 | 454 | 386 | 917 | 735
Core EBITDA(2) | 623 | 608 | 513 | 1,231 | 990
Core EBITDA margin (%)(3) | 30.1% | 28.4% | 26.3% | 29.2% | 25.9%
Business performance: |  |  |  |  |
Sales |  |  |  |  |
Wealth and asset management gross flows | 43,831 | 50,274 | 41,442 | 94,105 | 86,886
Wealth and asset management net flows | 946 | 489 | 82 | 1,435 | 6,805
Assets under management and administration ($ billions) | 1,039.0 | 1,026.3 | 943.9 | 1,039.0 | 943.9
Total invested assets ($ billions) | 10.4 | 10.0 | 9.0 | 10.4 | 9.0
Segregated funds net assets ($ billions) | 295.5 | 287.6 | 270.1 | 295.5 | 270.1
Global WAM managed AUMA ($ billions)(2) | 1,261.7 | 1,251.4 | 1,155.7 | 1,261.7 | 1,155.7
Average assets under management and administration ($ billions) | 1,005.3 | 1,041.1 | 933.1 | 1,022.4 | 916.7

(1)See “Non-GAAP and Other Financial Measures” below for a reconciliation of quarterly core earnings to net income (loss) attributed to shareholders.
(2)This item is a non-GAAP financial measu re. See “Non-GAAP and Other Financial Measures” below for more information.
(3)This item is a non-GAAP ratio. See “Non-GAAP and Other Financial Measures” below for more information.
Global WAM’s net income attributed to shareholders was $482 million in 2Q25 compared with $350 million in 2Q24. Net
income attributed to shareholders is comprised of core earnings, which were $463 million in 2Q25 compared with $386 million
in 2Q24, and items excluded from core earnings, which amounted to a net gain of $19 million in 2Q25 compared with a net
charge of $36 million in 2Q24. See section E3 “Non-GAAP and Other Financial Measures” below, for a reconciliation of
quarterly core earnings to net income (loss) attributed to shareholders and section A1 “Profitability” above, for explanations of
the items excluded from core earnings.
Core earnings increased $77 million, o r 19%, compared with 2Q24, driven b y an increase in net fee income from higher
average AUMA resulting from the favourable impact of markets over the past 12 months and net inflows, higher performance
fees in Institutional Asset Management as well as disciplined expense managemen t. This is partially offset by the impact of
lower fee spreads and higher taxes.

Manulife Financial Corporation – Second Quarter 2025 | 19

Core EBITDA was $623 million in 2Q25, an increase of 21% compared with 2Q24, and core EBITDA margin was 30.1% in
2Q25, an increase of 380 basis points compared with 2Q24, both driven by similar factors as mentioned above. See section
E3 “Non-GAAP and Other Financial Measures” below, for more information on core EBITDA and core EBITDA margin.
Year-to-date net income attributed to shareholders was $925 million in 2025 compared with $715 million in the same period of
2024, and year-to-date core earnings were $917 million in 2025 compared with $735 million in the same period of 2024. The
increase in year-to-date core earnings of $182 million or 22% was primarily driven by similar factors as noted above for the
quarter. Items excluded from year-to-date core earnings were a net gain of $8 million in 2025 compared with a net charge of
$20 million in the same period of 2024. See section E3 “Non-GAAP and other financial measures” below, for a reconciliation of
year-to-date core earnings to year-to-date net income (loss) attributed to shareholders.
Year-to-date core EBITDA was $1,231 million in 2025, an increase of 21% compared with the same period of 2024 and core
EBITDA margin was 29.2% in 2025, an increase of 330 bps compared with the same period of 2024, both driven by the similar
factors as noted above for the quarter. See section E3 “Non-GAAP and other financial measures” below, for additional
information on year-to-date core EBITDA and year-to-date core EBITDA margin.
Net inflows were $0.9 billion in 2Q25 compared with net inflows of $0.1 billion in 2Q24. By business line, the results were:
•Retirement net inflows of $2.0 billion in 2Q25 increased compared with net outflows of $1.3 billion in 2Q24, r eflecting
higher retirement plan sales across all geographies and a large-case retirement plan redemption in the U.S. in 2Q24.
•Retail net outflows of $3.2 billion in 2Q25 increased compared with net outflows of $0.1 billion in 2Q24, driven by lower net
sales through third-party intermediaries in North America and in money markets funds in mainland China. This is partially
offset by higher net sales through our retail wealth platform.
•Institutional Asset Management net inflows of $2.1 billion in 2Q25 increased compared with net inflows of $1.4 billion in
2Q24, d rive n by lower redemptions in fixed income mandates, partially offset by higher redemptions in equity mandates.
Year-to-date net inflows were $1.4 billion in 2025, compared with net inflows of $6.8 billion in the same period of 2024. The
decrease was primarily driven by net outflows in Retail, due to lower net sales through third party intermediaries, partially offset
by higher net sales through our retail wealth platform, and high er net outflows in Retirement, due to higher retirement plan
redemptions and higher net member withdrawals in North America. This was partially offset by increased net inflows in
Institutional Asset Management, driven by lower redemptions in fixed income mandates.
Assets under management and administration of $1,039.0 billion as at June 30, 2025 increased 4% compared with
December 31, 2024. The increase was primarily d riven by the favourable impact of equity markets and year-to-date net
inflows. As at June 30, 2025, Global WAM also managed $222.7 billion in assets for the Company’s other reporting segments.
Including those assets, AUMA managed by Global WAM were $1,261.7 b illion compared with $1,257.8 billion as at December
31, 2024.
Segregated funds net assets wer e $295.5 billion as at June 30, 2025, an increase of 1% compared with December 31, 2024
on an actual exchange rate basis, driven by strong e quity markets.
Business highlights – In 2Q25, we:
•C ontinued to deliver comprehensive investment solutions by expanding our Global Retail product lineup with the launch of
a d iversified real assets strategy in Malaysia to help investors navigate market volatility. In addition, we introduced four
new actively managed ETF series in Canada, enhancing access to diversified equity and fixed income exposures, to meet
evolving investor needs;
•E nhanced the Manulife iFUNDS platform, making it the first integrated digital wealth solution in Singapore that offers
advisors a unified view of clients’ Unit Trust and Investment-Linked Plan (“ILP”) holdings. By integrating these into a single
platform and incorporating AI-powered ILP analytics capabilities, the enhancements streamline portfolio oversight,
accelerate transaction execution, and empower advisors to deliver more personalized and insightful financial guidance;
and
•L aunched an AI-powered sales enablement solution in U.S. Retirement, delivering real-time insights and personalized
content to enhance our sales operation and productivity, improve our sales close ratio, and drive revenue growth. This
doubled the number of sales opportunities compared with 2Q24 and reduced the time spent on information searches by
over 50%.
We have further advanced our preparation for transitioning to the new eMPF platform in Hong Kong. The Mandatory Provident
Fund (“MPF”) Schemes Authority is transitioning all trustees in the market to a new platform that will centralize and digitalize all
MPF schemes’ administrative processes, allowing users to manage their MPF accounts online. Thus far the MPF Schemes
Authority has transitioned more than half of trustees and Manulife is expected to commence its onboarding in the fourth
quarter of 2025. While this transition is expected to reduce our quarterly core earnings run rate by approximately US$25
million, our market leading MPF business will remain a driver of long-term growth.

Manulife Financial Corporation – Second Quarter 2025 | 20

B5 Corporate and Other

| Quarterly Results | YTD Results
($ millions, unless otherwise stated) | 2Q25 | 1Q25 | 2Q24 | 2025 | 2024
Net income attributed to shareholders | $51 | $(235) | $(104) | $(184) | $(131)
Core earnings (loss)(1) | (70) | (127) | (82) | (197) | (163)

(1)See “Non-GAAP and Other Financial Measures” below for a reconciliation of quarterly core earnings to net income (loss) attributed to shareholders.
Corporate and Other is comprised of investment performance on assets backing capital, net of amounts allocated to
operating segments; financing costs; costs incurred by the corporate office related to shareholder activities (not allocated to
the operating segments); our Property and Casualty (“P&C”) Reinsurance business; as well as our run-off reinsurance
operation including variable annuities and accident and health. In addition, for segment reporting purposes, consolidations and
eliminations of transactions between operating segments are also included in Corporate and Other earnings.
Corporate and Other reported net income attributed to shareholders of $51 million in 2Q25 compared with a net loss attributed
to shareholders of $104 million in 2Q24. Net income (loss) attributed to shareholders is comprised of core earnings, which was
a core loss of $70 million in 2Q25 compared with a core loss of $82 million in 2Q24, and the items excluded from core
earnings (loss) which amounted to a net gain of $121 million in 2Q25 compared with a net charge of $22 million in 2Q24. See
section E3 “Non-GAAP and Other Financial Measures” below, for a reconciliation of quarterly core earnings to net income
(loss) attributed to shareholders and section A1 “Profitability” above, for explanations of the items excluded from core earnings.
The $12 million increase in core earnings was primarily due to lower long-term incentive compensation, partially offset by
higher interest on capital allocated to operating segments.
The year-to-date net loss attributed to shareholders was $184 million in 2025 compared with a net loss attributed to
shareholders of $131 million in the same period of 2024. The year-to-date core loss was $197 million in 2025 compared with a
core loss of $163 million in the same period of 2024. The increase in the year-to-date core loss of $34 million was primarily
driven by a $43 million post-tax charge for estimated losses from the C alifornia wildfires in our P&C Reinsurance business and
higher interest on capital allocated to operating segments, partially offset by lower long-term incentive compensation. Items
excluded from the year-to-date core loss were a net gain of $13 million in 2025 compared with a net gain of $32 million in the
same period of 2024. See section E3 “Non-GAAP and other financial measures” below, for a reconciliation of year-to-date core
earnings to year-to-date net income (loss) attributed to shareholders.

Manulife Financial Corporation – Second Quarter 2025 | 21

C RISK MANAGEMENT AND RISK FACTORS UPDATE
This section provides an update to our risk management practices and risk factors outlined in the 2024 MD&A. Text and tables
in this section of the MD&A represent our disclosure on insurance, market, and liquidity risk in accordance with IFRS 7
“Financial Instruments – Disclosures”. Disclosures in accordance with IFRS 7 are identified by a vertical line in the left margin
of each page. The identified text and tables represent an integral part of our unaudited Interim Consolidated Financial
Statements.
C1 Variable Annuity and Segregated Fund Guarantees
As described in the MD&A in our 2024 Annual Report, guarantees on variable annuity products and segregated funds may
include one or more of death, maturity, income and withdrawal guarantees. Variable annuity and segregated fund guarantees
are contingent and only payable upon the occurrence of the relevant event, if fund values at that time are below guarantee
values. Depending on future equity market levels, liabilities on current in-force business would be due primarily in the period
from 2025 to 2045.
We seek to mitigate a portion of the risks embedded in our retained (i.e. net of reinsurance) variable annuity and segregated
fund guarantee business through the combination of our dynamic and macro hedging strategies (see section C3 “Publicly
Traded Equity Performance Risk Sensitivities and Exposure Measures” below).The table below shows selected information
regarding the Company’s variable annuity and segregated fund investment-related guarantees gross and net of reinsurance.
Variable annuity and segregated fund guarantees, net of reinsurance

As at | June 30, 2025 | December 31, 2024
($ millions) | Guarantee value(1) | Fund value | Net amount at risk(1),(2),(3) | Guarantee value(1) | Fund value | Net amount at risk(1),(2),(3)
Guaranteed minimum income benefit | $3,292 | $2,548 | $811 | $3,628 | $2,780 | $918
Guaranteed minimum withdrawal benefit | 30,875 | 31,375 | 3,023 | 33,473 | 33,539 | 3,339
Guaranteed minimum accumulation benefit | 18,903 | 19,192 | 23 | 18,987 | 19,097 | 70
Gross living benefits(4) | 53,070 | 53,115 | 3,857 | 56,088 | 55,416 | 4,327
Gross death benefits(5) | 8,072 | 19,168 | 540 | 8,612 | 19,851 | 644
Total gross of reinsurance | 61,142 | 72,283 | 4,397 | 64,700 | 75,267 | 4,971
Living benefits reinsured | 21,478 | 22,092 | 2,695 | 23,768 | 23,965 | 3,016
Death benefits reinsured | 3,133 | 2,588 | 223 | 3,430 | 2,776 | 289
Total reinsured | 24,611 | 24,680 | 2,918 | 27,198 | 26,741 | 3,305
Total, net of reinsurance | $36,531 | $47,603 | $1,479 | $37,502 | $48,526 | $1,666

(1)Guarantee Value and Net Amount at Risk in respect of guaranteed minimum withdrawal business in Canada and the U.S. reflect the time value of money of
these claims.
(2)Amount at risk (in-the-money amount) is the excess of guarantee values over fund values on all policies where the guarantee value exceeds the fund value. For
guaranteed minimum death benefit, the amount at risk is defined as the current guaranteed minimum death benefit in excess of the current account balance
and assumes that all claims are immediately payable. In practice, guaranteed death benefits are contingent and only payable upon the eventual death of
policyholders if fund values remain below guarantee values. For guaranteed minimum withdrawal benefit, the amount at risk assumes that the benefit is paid as
a lifetime annuity commencing at the earliest contractual income start age. These benefits are also contingent and only payable at scheduled maturity/income
start dates in the future, if the policyholders are still living and have not terminated their policies and fund values remain below guarantee values. For all
guarantees, the amount at risk is floored at zero at the single contract level.
(3)The amount at risk net of reinsurance at June 30, 2025 was $1,479 million (December 31, 2024 – $1,666 million) of which: US$265 million (December 31, 2024
– US$293 million) was on our U.S. business, $932 million (December 31, 2024 – $1,021 million) was on our Canadian business, US$108 million (December 31,
2024 – US$100 million) was on our Japan business and US$28 million (December 31, 2024 – US$56 million) was related to Asia (other than Japan) and our
run-off reinsurance business.
(4)Where a policy includes both living and death benefits, the guarantee in excess of the living benefit is included in the death benefit category as outlined in
footnote 5.
(5)Death benefits include stand-alone guarantees and guarantees in excess of living benefit guarantees where both death and living benefits are provided on a
policy.

Manulife Financial Corporation – Second Quarter 2025 | 22

C2 Caution Related to Sensitivities
In this document, we provide sensitivities and risk exposure measures for certain risks. These include sensitivities due to
specific changes in market prices and interest rate levels projected using internal models as at a specific date, and are
measured relative to a starting level reflecting the Company’s assets and liabilities at that date. The risk exposures measure
the impact of changing one factor at a time and assume that all other factors remain unchanged. Actual results can differ
significantly from these estimates for a variety of reasons including the interaction among these factors when more than one
changes; changes in liabilities from updates to non-economic assumptions, changes in business mix, effective tax rates and
other market factors; and the general limitations of our internal models. For these reasons, the sensitivities should only be
viewed as directional estimates of the underlying sensitivities for the respective factors based on the assumptions outlined
below. Given the nature of these calculations, we cannot provide assurance that the actual impact on contractual service
margin, net income attributed to shareholders, other comprehensive income attributed to shareholders, and total
comprehensive income attributed to shareholders or on MLI’s LICAT ratio will be as indicated.
Market movements affect LICAT capital sensitivities through the available capital, surplus allowance and required capital
components of the regulatory capital framework. The LICAT available capital component is primarily affected by total
comprehensive income and the CSM.
C3 Publicly Traded Equity Performance Risk Sensitivities and Exposure Measures
As outlined in our 2024 Annual Report, we have net exposure to equity risk through asset and liability mismatches; our variable
annuity and segregated fund guarantee dynamic hedging strategy is not designed to completely offset the sensitivity of
insurance contract liabilities to all risks associated with the guarantees embedded in these products. The macro hedging
strategy is designed to mitigate public equity risk arising from variable annuity and segregated fund guarantees not
dynamically hedged and from other unhedged exposures in our insurance contracts (see page 59 of our 2024 Annual Report).
Changes in public equity prices may impact other items including, but not limited to, asset-based fees earned on assets under
management and administration or policyholder account value, and estimated profits and amortization of deferred policy
acquisition and other costs. These items are not hedged.
The tables below include the potential impacts from an immediate 10%, 20% and 30% change in market values of publicly
traded equities on net income attributed to shareholders, CSM, other comprehensive income attributed to shareholders, and
total comprehensive income attributed to shareholders. The potential impact is shown after taking into account the impact of
the change in markets on the hedge assets. While we cannot reliably estimate the amount of the change in dynamically
hedged variable annuity and segregated fund guarantee liabilities that will not be offset by the change in the dynamic hedge
assets, we make certain assumptions for the purposes of estimating the impact on net income attributed to shareholders.
This estimate assumes that the performance of the dynamic hedging program would not completely offset the gain/loss from
the dynamically hedged variable annuity and segregated fund guarantee liabilities. It assumes that the hedge assets are based
on the actual position at the period end, and that equity hedges in the dynamic program offset 95% of the hedged variable
annuity liability movement that occurs as a result of market changes.
It is also important to note that these estimates are illustrative, and that the dynamic and macro hedging programs may
underperform these estimates, particularly during periods of high realized volatility and/or periods where both interest rates
and equity market movements are unfavourable. The method used for deriving sensitivity information and significant
assumptions made did not change from the previous period.
Changes in equity markets impact our available and required components of the LICAT ratio. The second set of tables shows
the potential impact to MLI’s LICAT ratio resulting from changes in public equity market values.

Manulife Financial Corporation – Second Quarter 2025 | 23

Potential immediate impact on net income attributed to shareholders arising from changes to public equity returns(1)

As at June 30, 2025 | Net income attributed to shareholders
($ millions) | -30% | -20% | -10% | +10% | +20% | +30%
Underlying sensitivity |  |  |  |  |  |
Variable annuity and segregated fund guarantees(2) | $(1,980) | $(1,200) | $(540) | $450 | $830 | $1,150
General fund equity investments(3) | (1,200) | (790) | (400) | 390 | 790 | 1,180
Total underlying sensitivity before hedging | (3,180) | (1,990) | (940) | 840 | 1,620 | 2,330
Impact of macro and dynamic hedge assets(4) | 750 | 450 | 200 | (160) | (280) | (380)
Net potential impact on net income attributed to shareholders after impact of hedging and before impact of reinsurance | (2,430) | (1,540) | (740) | 680 | 1,340 | 1,950
Impact of reinsurance | 1,210 | 740 | 340 | (290) | (540) | (760)
Net potential impact on net income attributed to shareholders after impact of hedging and reinsurance | $(1,220) | $(800) | $(400) | $390 | $800 | $1,190
As at December 31, 2024 | Net income attributed to shareholders
($ millions) | -30% | -20% | -10% | +10% | +20% | +30%
Underlying sensitivity |  |  |  |  |  |
Variable annuity and segregated fund guarantees(2) | $(2,050) | $(1,240) | $(560) | $470 | $860 | $1,190
General fund equity investments(3) | (1,240) | (820) | (400) | 390 | 780 | 1,180
Total underlying sensitivity before hedging | (3,290) | (2,060) | (960) | 860 | 1,640 | 2,370
Impact of macro and dynamic hedge assets(4) | 720 | 430 | 190 | (150) | (260) | (360)
Net potential impact on net income attributed to shareholders after impact of hedging and before impact of reinsurance | (2,570) | (1,630) | (770) | 710 | 1,380 | 2,010
Impact of reinsurance | 1,320 | 810 | 370 | (320) | (590) | (830)
Net potential impact on net income attributed to shareholders after impact of hedging and reinsurance | $(1,250) | $(820) | $(400) | $390 | $790 | $1,180

(1)See “Caution Related to Sensitivities” above.
(2)For variable annuity contracts measured under the variable fee approach (“VFA”) the impact of financial risk and changes in interest rates adjusts CSM, unless
the risk mitigation option applies. The Company has elected to apply risk mitigation and therefore a portion of the impact is reported in net income attributed to
shareholders instead of adjusting the CSM. If the CSM for a group of variable annuity contracts is exhausted the full impact is reported in net income attributed
to shareholders.
(3)This impact for general fund equity investments includes general fund investments supporting our insurance contract liabilities, investment in seed money
investments (in segregated and mutual funds made by Global WAM segment) and the impact on insurance contract liabilities related to the projected future fee
income on variable universal life and other unit linked products. The impact does not include any potential impact on public equity weightings. The participating
policy funds are largely self-supporting and generate no material impact on net income attributed to shareholders as a result of changes in equity markets.
(4)Includes the impact of assumed rebalancing of equity hedges in the macro and dynamic hedging program. The impact of dynamic hedging represents the
impact of equity hedges offsetting 95% of the dynamically hedged variable annuity liability movement that occurs as a result of market changes, but does not
include any impact in respect of other sources of hedge accounting ineffectiveness (e.g. fund tracking, realized volatility and equity, and interest rate
correlations different from expected among other factors).

Manulife Financial Corporation – Second Quarter 2025 | 24

Potential immediate impact on contractual service margin, other comprehensive income to shareholders, total
comprehensive income to shareholders and MLI’s LICAT ratio from changes to public equity market values(1),(2)

As at June 30, 2025 |  |  |  |  |  |
($ millions) | -30% | -20% | -10% | +10% | +20% | +30%
Variable annuity and segregated fund guarantees reported in CSM | $(3,230) | $(1,990) | $(920) | $800 | $1,500 | $2,130
Impact of risk mitigation – hedging(3) | 990 | 590 | 260 | (210) | (370) | (500)
Impact of risk mitigation – reinsurance(3) | 1,540 | 940 | 430 | (370) | (690) | (970)
VA net of risk mitigation | (700) | (460) | (230) | 220 | 440 | 660
General fund equity | (1,210) | (790) | (380) | 380 | 770 | 1,150
Contractual service margin ($ millions, pre-tax) | $(1,910) | $(1,250) | $(610) | $600 | $1,210 | $1,810
Other comprehensive income attributed to shareholders ($ millions, post-tax)(4) | $(820) | $(550) | $(270) | $270 | $530 | $780
Total comprehensive income attributed to shareholders ($ millions, post-tax) | $(2,040) | $(1,350) | $(670) | $660 | $1,330 | $1,970
MLI’s LICAT ratio (change in percentage points) | (2) | (1) | (1) | 1 | 1 | 2
As at December 31, 2024 |  |  |  |  |  |
($ millions) | -30% | -20% | -10% | +10% | +20% | +30%
Variable annuity and segregated fund guarantees reported in CSM | $(3,420) | $(2,110) | $(970) | $840 | $1,580 | $2,250
Impact of risk mitigation – hedging(3) | 940 | 560 | 250 | (190) | (350) | (470)
Impact of risk mitigation – reinsurance(3) | 1,670 | 1,020 | 470 | (400) | (740) | (1,050)
VA net of risk mitigation | (810) | (530) | (250) | 250 | 490 | 730
General fund equity | (1,140) | (740) | (370) | 370 | 750 | 1,110
Contractual service margin ($ millions, pre-tax) | $(1,950) | $(1,270) | $(620) | $620 | $1,240 | $1,840
Other comprehensive income attributed to shareholders ($ millions, post-tax)(4) | $(840) | $(560) | $(280) | $270 | $530 | $790
Total comprehensive income attributed to shareholders ($ millions, post-tax) | $(2,090) | $(1,380) | $(680) | $660 | $1,320 | $1,970
MLI’s LICAT ratio (change in percentage points) | (1) | (1) | - | 1 | 1 | 1

(1)See “Caution Related to Sensitivities” above.
(2)This estimate assumes that the performance of the dynamic hedging program would not completely offset the gain/loss from the dynamically hedged variable
annuity and segregated fund guarantee liabilities. It assumes that the hedge assets are based on the actual position at the period end, and that equity hedges
in the dynamic program offset 95% of the hedged variable annuity liability movement that occur as a result of market changes.
(3)For variable annuity contracts measured under VFA the impact of financial risk and changes in interest rates adjusts CSM, unless the risk mitigation option
applies. The Company has elected to apply risk mitigation and therefore a portion of the impact is reported in net income attributed to shareholders instead of
adjusting the CSM. If the CSM for a group of variable annuity contracts is exhausted the full impact is reported in net income attributed to shareholders.
(4)The impact of financial risk and changes to interest rates for variable annuity contracts is not expected to generate sensitivity in Other Comprehensive Income.
C4 Interest Rate and Spread Risk Sensitivities and Exposure Measures
As at June 30, 2025, we estimated the sensitivity of our net income attributed to shareholders to a 50 basis point parallel
decline in interest rates to be a benefit of $100 million, and to a 50 basis point parallel increase in interest rates to be a charge
of $100 million.
The table below shows the potential impacts from a 50 basis point parallel move in interest rates on CSM, net income
attributed to shareholders, other comprehensive income attributed to shareholders, and total comprehensive income attributed
to shareholders. This includes a change in current government, swap and corporate rates for all maturities across all markets
with no change in credit spreads between government, swap and corporate rates. Also shown separately are the potential
impacts from a 50 basis point parallel move in corporate spreads and a 20 basis point parallel move in swap spreads. The
impacts reflect the net impact of movements in asset values in liability and surplus segments and movements in the present
value of cash flows for insurance contracts including those with cash flows that vary with the returns of underlying items where
the present value is measured by stochastic modelling. The method used for deriving sensitivity information and significant
assumptions made did not change from the previous period.
The disclosed interest rate sensitivities reflect the accounting designations of our financial assets and corresponding insurance
contract liabilities. In most cases these assets and liabilities are designated as fair value through other comprehensive income
and as a result, impacts from changes to interest rates are largely in other comprehensive income. There are also changes in
interest rates that impact the CSM for VFA contracts that relate to amounts that are not passed through to policyholders. In
addition, changes in interest rates impact net income as it relates to derivatives not in hedge accounting relationships and on
VFA contracts where the CSM has been exhausted.
The disclosed interest rate sensitivities assume no hedge accounting ineffectiveness, as our hedge accounting programs are
optimized for parallel movements in interest rates, leading to immaterial net income impacts under these shocks. However, the
actual hedge accounting ineffectiveness is sensitive to non-parallel interest rate movements and will depend on the shape and
magnitude of the interest rate movements, which could lead to variations in the impact to net income attributed to
shareholders.

Manulife Financial Corporation – Second Quarter 2025 | 25

Our sensitivities vary across all regions in which we operate, and the impacts of yield curve changes will vary depending upon
the geography where the change occurs. Furthermore, the impacts from non-parallel movements may be materially different
from the estimated impacts of parallel movements.
The interest rate and spread risk sensitivities are determined in isolation of each other and therefore do not reflect the
combined impact of changes in government rates and credit spreads between government, swap and corporate rates
occurring simultaneously. As a result, the impact of the summation of each individual sensitivity may be materially different
from the impact of sensitivities to simultaneous changes in interest rate and spread risk.
The potential impacts also do not take into account other potential effects of changes in interest rate levels, for example, CSM
at recognition on the sale of new business or lower interest earned on future fixed income asset purchases.
The impacts do not reflect any potential effect of changing interest rates on the value of our ALDA. Rising interest rates could
negatively impact the value of our ALDA (see “Critical Actuarial and Accounting Policies – Fair Value of Invested Assets”, on
page 95 of our 2024 Annual Report). More information on ALDA can be found under the section C5 “Alternative Long-Duration
Asset Performance Risk Sensitivities and Exposure Measures”.
The impact to the LICAT ratio from a change in interest rates reflects the impacts on total comprehensive income, the LICAT
adjustments to earnings for the CSM, the surplus allowance and required capital components of the regulatory capital
framework.
Potential impacts on contractual service margin, net income attributed to shareholders, other comprehensive income
attributed to shareholders, and total comprehensive income attributed to shareholders of an immediate parallel
change in interest rates, corporate spreads or swap spreads relative to current rates(1),(2),(3)

As at June 30, 2025 | Interest rates | Corporate spreads | Swap spreads
($ millions, post-tax except CSM) | -50bp | +50bp | -50bp | +50bp | -20bp | +20bp
CSM | $100 | $(300) | $(100) | $- | $- | $-
Net income attributed to shareholders | 100 | (100) | - | - | 100 | (100)
Other comprehensive income attributed to shareholders | (100) | 100 | (100) | 200 | (200) | 200
Total comprehensive income attributed to shareholders | - | - | (100) | 200 | (100) | 100
As at December 31, 2024 | Interest rates | Corporate spreads | Swap spreads
($ millions, post-tax except CSM) | -50bp | +50bp | -50bp | +50bp | -20bp | +20bp
CSM | $100 | $(200) | $- | $(100) | $- | $-
Net income attributed to shareholders | 100 | (100) | 100 | (100) | 100 | (100)
Other comprehensive income attributed to shareholders | (100) | 200 | (200) | 300 | (100) | 100
Total comprehensive income attributed to shareholders | - | 100 | (100) | 200 | - | -

(1)See “Caution Related to Sensitivities” above.
(2)Estimates include changes to the net actuarial gains/losses with respect to the Company’s pension obligations as a result of changes in interest rates.
(3)Includes guaranteed insurance and annuity products, including variable annuity contracts as well as adjustable benefit products where benefits are generally
adjusted as interest rates and investment returns change, a portion of which have minimum credited rate guarantees. For adjustable benefit products subject to
minimum rate guarantees, the sensitivities are based on the assumption that credited rates will be floored at the minimum.
Potential impact on MLI’s LICAT ratio of an immediate parallel change in interest rates, corporate spreads or swap
spreads relative to current rates(1),(2),(3),(4),(5)

As at June 30, 2025 | Interest rates | Corporate spreads | Swap spreads
(change in percentage points) | -50bp | +50bp | -50bp | +50bp | -20bp | +20bp
MLI’s LICAT ratio | (1) | - | (3) | 3 | - | -
As at December 31, 2024 | Interest rates | Corporate spreads | Swap spreads
(change in percentage points) | -50bp | +50bp | -50bp | +50bp | -20bp | +20bp
MLI’s LICAT ratio | - | - | (3) | 3 | - | -

(1)See “Caution Related to Sensitivities” above.
(2)Estimates include changes to the net actuarial gains/losses with respect to the Company’s pension obligations as a result of changes in interest rates.
(3)Includes guaranteed insurance and annuity products, including variable annuity contracts as well as adjustable benefit products where benefits are generally
adjusted as interest rates and investment returns change, a portion of which have minimum credited rate guarantees. For adjustable benefit products subject to
minimum rate guarantees, the sensitivities are based on the assumption that credited rates will be floored at the minimum.
(4)LICAT impacts reflect the impact of anticipated scenario switches.
(5)Under LICAT, spread movements are determined from a selection of investment grade bond indices with BBB and better bonds for each jurisdiction. For LICAT,
we use the following indices: FTSE TMX Canada All Corporate Bond Index, Barclays USD Liquid Investment Grade Corporate Index, and Nomura-BPI (Japan).
LICAT impacts presented for corporate spreads reflect the impact of anticipated scenario switches.
LICAT S cenario Switch
When interest rates change past a certain threshold, reflecting the combined movement in risk-free rates and corporate
spreads, a different prescribed interest rate stress scenario needs to be taken into account in the LICAT ratio calculation in
accordance with OSFI’s LICAT guideline.
1 LICAT geographic locations to determine the most adverse scenario include North America, the United Kingdom, Europe, Japan, and Other Region.
2 See “Caution Regarding Forward-looking Statements”.
3 Energy includes legacy oil & gas equity interests related to upstream and midstream assets that are in runoff, and energy transition private equity interests in
areas supportive of the transition to lower carbon forms of energy, such as wind, solar, batteries, magnets, etc.

Manulife Financial Corporation – Second Quarter 2025 | 26

The LICAT guideline specifies four stress scenarios for interest rates and prescribes the methodology to determine the most
adverse scenario to apply for each LICAT geographic region 1 based on current market inputs and the Company’s Consolidated
Statements of Financial Position.
With the current level of interest rates in 2Q25, the probability of a scenario switch that could materially impact our LICAT ratio
is low.2 Should the future interest rate movements differ from those presented above, a scenario switch, if applicable, may
cause the impact to the LICAT ratio to be different from the disclosed values. Should a scenario switch be triggered in a LICAT
geographic region, the full impact would be reflected immediately for non-participating products while the impact for
participating products would be reflected over six quarters using a rolling average of interest rate risk capital, in line with the
smoothing approach prescribed in the LICAT guideline. The LICAT interest rate, corporate spread and swap spread
sensitivities presented above reflect the impact of scenario switches, if any, for each disclosed sensitivity.
The level of interest rates and corporate spreads that would trigger a switch in the scenarios is dependent on market
conditions and movements in the Company’s asset and liability position. The scenario switch, if triggered, could reverse in
response to subsequent changes in interest rates and/or corporate spreads.
C5 Alternative Long-Duration Asset Performance Risk Sensitivities and Exposure
Measures
The following table shows the potential impact on CSM, net income attributed to shareholders, other comprehensive income
attributed to shareholders, and total comprehensive income attributed to shareholders resulting from an immediate 10%
change in market values of ALDA. The method used for deriving sensitivity information and significant assumptions made did
not change from the previous period.
ALDA used in this sensitivity analysis includes commercial real estate, private equity, infrastructure, timber and agriculture,
energy 3 and other investments.
The impacts do not reflect any future potential changes to non-fixed income return volatility. Refer to “C3 Publicly Traded
Equity Performance Risk Sensitivities and Exposure Measures” for more details.
Potential immediate impacts on contractual service margin, net income attributed to shareholders, other
comprehensive income attributed to shareholders, and total comprehensive income attributed to shareholders from
changes in ALDA market values(1)

As at | June 30, 2025 | December 31, 2024
($ millions, post-tax except CSM) | -10% | +10% | -10% | +10%
CSM excluding NCI | $(200) | $200 | $(200) | $200
Net income attributed to shareholders(2) | (2,300) | 2,300 | (2,500) | 2,500
Other comprehensive income attributed to shareholders | (200) | 200 | (200) | 200
Total comprehensive income attributed to shareholders | (2,500) | 2,500 | (2,700) | 2,700

(1)See “Caution Related to Sensitivities” above.
(2)Net income attributed to shareholders includes core earnings and the amounts excluded from core earnings.
Potential immediate impact on MLI LICAT ratio arising from changes in ALDA market values(1)

| June 30, 2025 | December 31, 2024
(change in percentage points) | -10% | +10% | -10% | +10%
MLI’s LICAT ratio | (1) | 1 | (1) | 1

(1)See “Caution Related to Sensitivities” above.
C6 Risk Management and Risk Factors Update 2
We have outlined our overall approach to risk management in our 2024 Annual Report. The following is an update to the risk
factors for strategic risk.
Strategic risk factors
Changes in tax laws, tax regulations, or interpretations of such laws or regulations could make some of our products
less attractive to consumers, could increase our corporate taxes or cause us to change the value of our deferred tax
assets and liabilities as well as our tax assumptions included in the valuation of our insurance and investment
contract liabilities. This could have a material adverse effect on our business, results of operations and financial
condition.
•On January 31, 2025, the Canadian government announced its intention to increase the capital gains inclusion rate from
50% to 66.67%, effective January 1, 2026. This policy was rescinded on March 21, 2025 by the newly elected
government.

Manulife Financial Corporation – Second Quarter 2025 | 27

D CRITICAL ACTUARIAL AND ACCOUNTING POLICIES
Disclosures in accordance with IFRS 7 are identified by a vertical line in the left margin of each page. The identified text and
tables represent an integral part of our unaudited Interim Consolidated Financial Statements.
D1 Critical Actuarial and Accounting Policies
Our material accounting policies are described in note 1 to our Consolidated Financial Statements for the year ended
December 31, 2024. The critical actuarial policies and estimation processes relating to the determination of insurance and
investment contract liabilities are described starting on page 87 of our 2024 Annual Report. The critical accounting policies and
estimation processes relating to the assessment of control over other entities for consolidation, estimation of fair value of
invested assets, evaluation of invested asset impairments, appropriate accounting for derivative financial instruments and
hedge accounting, determination of pension and other post-employment benefit obligations and expenses, accounting for
income taxes and uncertain tax positions and valuation and impairment of goodwill and intangible assets are described starting
on page 95 of our 2024 Annual Report.
D2 Sensitivity to Changes in Assumptions
The following table presents information on how reasonably possible changes in assumptions made by the Company for
certain economic risk variables impact the CSM, net income attributed to shareholders, other comprehensive income attributed
to shareholders and total comprehensive income attributed to shareholders. The method used for deriving sensitivity
information and significant assumptions made did not change from the previous period.
The analysis is based on a simultaneous change in assumptions across all business units and holds all other assumptions
constant. In practice, experience for each assumption will frequently vary by geographic market and business, and assumption
updates are made on a business and geographic basis. Actual results can differ materially from these estimates for a variety of
reasons including the interaction among these factors when more than one factor changes, actual experience differing from
the assumptions, changes in business mix, effective tax rates, and the general limitations of our internal models.
Potential impact on contractual service margin, net income attributed to shareholders, other comprehensive income
attributed to shareholders, and total comprehensive income attributed to shareholders arising from changes to
certain economic financial assumptions used in the determination of insurance contract liabilities(1)

As at June 30, 2025 | CSM net of NCI | Net income attributed to shareholders | Other comprehensive income attributed to shareholders | Total comprehensive income attributed to shareholders
($ millions, post-tax except CSM)
Financial assumptions |  |  |  |
10 basis point reduction in ultimate spot rate | $(300) | $- | $(200) | $(200)
50 basis point increase in interest rate volatility(2) | (100) | - | - | -
50 basis point increase in non-fixed income return volatility(2) | (100) | - | - | -
As at December 31, 2024 ($ millions, post-tax except CSM) | CSM net of NCI | Net income attributed to shareholders | Other comprehensive income attributed to shareholders | Total comprehensive income attributed to shareholders
Financial assumptions |  |  |  |
10 basis point reduction in ultimate spot rate | $(300) | $- | $(200) | $(200)
50 basis point increase in interest rate volatility(2) | (100) | - | - | -
50 basis point increase in non-fixed income return volatility(2) | (100) | - | - | -

(1)Note that the impact of these assumptions is not linear.
(2)Used in the determination of insurance contract liabilities with financial guarantees. This includes universal life minimum crediting rate guarantees, participating
life zero dividend floor implicit guarantees, and variable annuities guarantees, where a stochastic approach is used to capture the asymmetry of the risk.
D3 Accounting and Reporting Changes
For future accounting and reporting changes arising during the quarter, refer to note 2 of our unaudited Interim Consolidated
Financial Statements for the three and six months ended June 30, 2025.

Manulife Financial Corporation – Second Quarter 2025 | 28

E OTHER
E1 Outstanding Common Shares – Selected Information
As at July 31, 2025, MFC had 1,698,535,952 common shares outstanding.
E2 Legal and Regulatory Proceedings
We are regularly involved in legal actions, both as a defendant and as a plaintiff. Information on legal and regulatory
proceedings can be found in note 13 of our unaudited Interim Consolidated Financial Statements for the three and six months
ended June 30, 2025.
E3 Non-GAAP and Other Financial Measures
The Company prepares its Consolidated Financial Statements in accordance with International Financial Reporting Standards
(“IFRS”) as issued by the International Accounting Standards Board. We use a number of non-GAAP and other financial
measures to evaluate overall performance and to assess each of our businesses. This section includes information required by
National Instrument 52-112 – Non-GAAP and Other Financial Measures Disclosure in respect of “specified financial
measures” (as defined therein).
Non-GAAP financial measures include core earnings (loss); pre-tax core earnings; core earnings available to common
shareholders; core earnings before interest, taxes, depreciation and amortization (“core EBITDA”); total expenses; core
expenses; core Drivers of Earnings (“DOE”) line items for core net insurance service result, core net investment result, other
core earnings, and core income tax (expenses) recoveries; core earnings excluding the impact of the change in ECL; core
earnings available to common shareholders excluding the impact of the change in ECL; post-tax contractual service margin
(“post-tax CSM”); post-tax contractual service margin net of NCI (“post-tax CSM net of NCI”); Manulife Bank net lending
assets; Manulife Bank average net lending assets; assets under management (“AUM”); assets under management and
administration (“AUMA”); Global WAM managed AUMA; core revenue; adjusted book value; and net annualized fee income. In
addition, non-GAAP financial measures include the following stated on a constant exchange rate (“CER”) basis: any of the
foregoing non-GAAP financial measures; net income attributed to shareholders; common shareholders’ net income and new
business CSM.
Non-GAAP ratios include core return on shareholders’ equity (“core ROE”); diluted core earnings per common share (“core
EPS”); diluted core earnings per common share excluding the impact of the change in ECL (“core EPS excluding the impact of
the change in ECL”); core earnings contributions from highest potential businesses; financial leverage ratio; adjusted book
value per common share; common share core dividend payout ratio (“dividend payout ratio”); expense efficiency ratio; core
EBITDA margin; effective tax rate on core earnings; and net annualized fee income yield on average AUMA. In addition, non-
GAAP ratios include the percentage growth/decline on a CER basis in any of the above non-GAAP financial measures and
non-GAAP ratios; net income attributed to shareholders; common shareholders’ net income; pre-tax net income attributed to
shareholders; general expenses; CSM; CSM net of NCI; impact of new insurance business net of NCI; new business CSM;
basic earnings per common share (“basic EPS”); and diluted earnings per common share (“diluted EPS”).
Other specified financial measures include assets under administration (“AUA”); consolidated capital; new business value
(“NBV”); new business value margin (“NBV margin”); sales; annualized premium equivalent (“APE”) sales; gross flows; net
flows; average assets under management and administration (“average AUMA”); Global WAM average managed AUMA;
average assets under administration; remittances; any of the foregoing specified financial measures stated on a CER basis;
and percentage growth/decline in any of the foregoing specified financial measures on a CER basis. In addition, we provide an
explanation below of the components of core DOE line items other than the change in expected credit loss, the items that
comprise certain items excluded from core earnings (on a pre-tax and post-tax basis), and the components of CSM movement
other than the new business CSM.
Our reporting currency for the Company is Canadian dollars and U.S. dollars is the functional currency for Asia and U.S.
segment results. Financial measures presented in U.S. dollars are calculated in the same manner as the Canadian dollar
measures. These amounts are translated to U.S. dollars using the period end rate of exchange for financial measures such as
AUMA and the CSM balance and the average rates of exchange for the respective quarter for periodic financial measures
such as our Consolidated Statements of Income, core earnings and items excluded from core earnings, and line items in our
CSM movement schedule and DOE. Year-to-date or full year periodic financial measures presented in U.S. dollars are
calculated as the sum of the quarterly results translated to U.S. dollars. See section E5 “Quarterly Financial Information” below
for the Canadian to U.S. dollar quarterly rates of exchange.
Non-GAAP financial measures and non-GAAP ratios are not standardized financial measures under GAAP and, therefore,
might not be comparable to similar financial measures disclosed by other issuers. Therefore, they should not be considered in
isolation or as a substitute for any other financial information prepared in accordance with GAAP.
Core earnings (loss) is a financial measure which we believe aids investors in better understanding the long-term earnings
capacity and valuation of the business. Core earnings allows investors to focus on the Company’s operating performance by
excluding the impact of market-related gains or losses, changes in actuarial methods and assumptions that flow directly
through income as well as a number of other items, outlined below, that we believe are material, but do not reflect the
underlying earnings capacity of the business. For example, due to the long-term nature of our business, the mark-to-market

Manulife Financial Corporation – Second Quarter 2025 | 29

movements in equity markets, interest rates including impacts on hedge accounting ineffectiveness, foreign currency
exchange rates and commodity prices as well as the change in the fair value of ALDA from period-to-period can, and
frequently do, have a substantial impact on the reported amounts of our assets, insurance contract liabilities and net income
attributed to shareholders. These reported amounts may not be realized if markets move in the opposite direction in a
subsequent period. This makes it very difficult for investors to evaluate how our businesses are performing from period-to-
period and to compare our performance with other issuers.
We believe that core earnings better reflect the underlying earnings capacity and valuation of our business. We use core
earnings and core EPS as key metrics in our short-term incentive plans at the total Company and operating segment level. We
also base our mid- and long-term strategic priorities on core earnings.
Commencing in the third quarter of 2025 reporting (“3Q25”), we will update our definition of core earnings to exclude
amortization and impairment of intangible assets acquired in a business combination, except for amortization of software and
distribution agreements. This update better represents the underlying earnings capacity of acquired businesses, consistent
with the definition of core earnings, and better aligns with industry practice.
Core earnings includes the expected return on our invested assets and any other gains (charges) from market experience are
included in net income but excluded from core earnings. The expected return for fixed income assets is based on the related
book yields. For ALDA and public equities, the expected return reflects our long-term view of asset class performance. These
returns for ALDA and public equities vary by asset class and range from 3.25% to 11.5%, leading to an average return of
between 9.0% to 9.5% on these assets as of June 30, 2025.
While core earnings is relevant to how we manage our business and offers a consistent methodology, it is not insulated from
macroeconomic factors which can have a significant impact. See below for a reconciliation of core earnings to net income
attributed to shareholders and income before income taxes. Net income attributed to shareholders excludes net income
attributed to participating policyholders and non-controlling interests.
Any future changes to the core earnings definition referred to below, will be disclosed.
Items included in core earnings:
1.Expected insurance service result on in-force policies, including expected release of the risk adjustment, CSM recognized
for service provided, and expected earnings from short-term products measured under the premium allocation approach
(“PAA”).
2.Impacts from the initial recognition of new contracts (onerous contracts, including the impact of the associated reinsurance
contracts).
3.Insurance experience gains or losses that flow directly through net income.
4.Operating and investment expenses compared with expense assumptions used in the measurement of insurance and
investment contract liabilities.
5.Expected investment earnings, which is the difference between expected return on our invested assets and the
associated finance income or expense from the insurance contract liabilities.
6.Net provision for ECL on FVOCI and amortized cost debt instruments.
7.Expected asset returns on surplus investments.
8.All earnings for the Global WAM segment, except for applicable net income items excluded from core earnings as noted
below.
9.All earnings for the Manulife Bank business, except for applicable net income items excluded from core earnings as noted
below.
10.Routine or non-material legal settlements.
11.All other items not specifically excluded.
12.Tax on the above items.
13.All tax-related items except the impact of enacted or substantively enacted income tax rate changes and taxes on items
excluded from core earnings.
Net income items excluded from core earnings:
1.Market experience gains (losses) including the items listed below:
•Gains (charges) on general fund public equity and ALDA investments from returns being different than expected.
•Gains (charges) on derivatives not in hedging relationships, or gains (charges) resulting from hedge accounting
ineffectiveness.
•Realized gains (charges) from the sale of FVOCI debt instruments.
•Market-related gains (charges) on onerous contracts measured using the variable fee approach (e.g. variable
annuities, unit linked, participating insurance) net of the performance on any related hedging instruments.

Manulife Financial Corporation – Second Quarter 2025 | 30

•Gains (charges) related to certain changes in foreign exchange rates.
2.Changes in actuarial methods and assumptions used in the measurement of insurance contract liabilities that flow directly
through income. The Company reviews actuarial methods and assumptions annually, and this process is designed to
reduce the Company’s exposure to uncertainty by ensuring assumptions remain appropriate. This is accomplished by
monitoring experience and selecting assumptions which represent a current view of expected future experience and
ensuring that the risk adjustment is appropriate for the risks assumed.
3.The impact on the measurement of insurance and investment contract assets and liabilities and reinsurance contract held
assets and liabilities from changes in product features and new or changes to in-force reinsurance contracts, if material.
4.The fair value changes in long-term investment plan obligations for Global WAM investment management.
5.Goodwill impairment charges.
6.Gains or losses on acquisition and disposition of a business.
7.Material one-time only adjustments, including highly unusual/extraordinary and material legal settlements and
restructuring charges, or other items that are material and exceptional in nature.
8.Tax on the above items.
9.Net income (loss) attributed to participating shareholders and non-controlling interests.
10.Impact of enacted or substantively enacted income tax rate changes.

Manulife Financial Corporation – Second Quarter 2025 | 31

Reconciliation of core earnings to net income attributed to shareholders – 2Q25
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 2Q25
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Income (loss) before income taxes | $1,092 | $526 | $31 | $575 | $37 | $2,261
Income tax (expenses) recoveries |  |  |  |  |  |
Core earnings | (94) | (110) | (37) | (89) | 32 | (298)
Items excluded from core earnings | (55) | (5) | 42 | (4) | (18) | (40)
Income tax (expenses) recoveries | (149) | (115) | 5 | (93) | 14 | (338)
Net income (post-tax) | 943 | 411 | 36 | 482 | 51 | 1,923
Less: Net income (post-tax) attributed to |  |  |  |  |  |
Non-controlling interests | 49 | - | - | - | - | 49
Participating policyholders | 64 | 21 | - | - | - | 85
Net income (loss) attributed to shareholders (post-tax) | 830 | 390 | 36 | 482 | 51 | 1,789
Less: Items excluded from core earnings (post-tax) |  |  |  |  |  |
Market experience gains (losses) | 161 | (27) | (158) | 16 | 121 | 113
Changes in actuarial methods and assumptions that flow directly through income | - | - | - | - | - | -
Restructuring charge | - | - | - | - | - | -
Reinsurance transactions, tax-related items and other | (51) | (2) | - | 3 | - | (50)
Core earnings (post-tax) | $720 | $419 | $194 | $463 | $(70) | $1,726
Income tax on core earnings (see above) | 94 | 110 | 37 | 89 | (32) | 298
Core earnings (pre-tax) | $814 | $529 | $231 | $552 | $(102) | $2,024

Core earnings, CER basis and U.S. dollar s – 2Q25
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 2Q25
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Core earnings (post-tax) | $720 | $419 | $194 | $463 | $(70) | $1,726
CER adjustment(1) | - | - | - | - | - | -
Core earnings, CER basis (post-tax) | $720 | $419 | $194 | $463 | $(70) | $1,726
Income tax on core earnings, CER basis(2) | 94 | 110 | 37 | 89 | (32) | 298
Core earnings, CER basis (pre-tax) | $814 | $529 | $231 | $552 | $(102) | $2,024
Core earnings (U.S. dollars) – Asia and U.S. segments |  |  |  |  |
Core earnings (post-tax)(3), US $ | $520 |  | $141 |  |  |
CER adjustment US $(1) | - |  | - |  |  |
Core earnings, CER basis (post-tax), US $ | $520 |  | $141 |  |  |

(1)The impact of updating foreign exchange rates to that which was used in 2Q25.
(2)Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.
(3)Core earnings (post-tax) in Canadian $ are translated to US$ using the US$ Statement of Income exchange rate for 2Q25.

Manulife Financial Corporation – Second Quarter 2025 | 32

Reconciliation of core earnings to net income attributed to shareholder s – 1Q25
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 1Q25
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Income (loss) before income taxes | $870 | $305 | $(731) | $528 | $(273) | $699
Income tax (expenses) recoveries |  |  |  |  |  |
Core earnings | (101) | (89) | (84) | (86) | 29 | (331)
Items excluded from core earnings | (30) | 30 | 246 | 2 | 7 | 255
Income tax (expenses) recoveries | (131) | (59) | 162 | (84) | 36 | (76)
Net income (post-tax) | 739 | 246 | (569) | 444 | (237) | 623
Less: Net income (post-tax) attributed to |  |  |  |  |  |
Non-controlling interests | 67 | - | - | 1 | (2) | 66
Participating policyholders | 48 | 24 | - | - | - | 72
Net income (loss) attributed to shareholders (post-tax) | 624 | 222 | (569) | 443 | (235) | 485
Less: Items excluded from core earnings (post-tax) |  |  |  |  |  |
Market experience gains (losses) | (77) | (152) | (930) | (11) | (162) | (1,332)
Changes in actuarial methods and assumptions that flow directly through income | - | - | - | - | - | -
Restructuring charge | - | - | - | - | - | -
Reinsurance transactions, tax-related items and other | (4) | - | - | - | 54 | 50
Core earnings (post-tax) | $705 | $374 | $361 | $454 | $(127) | $1,767
Income tax on core earnings (see above) | 101 | 89 | 84 | 86 | (29) | 331
Core earnings (pre-tax) | $806 | $463 | $445 | $540 | $(156) | $2,098

Core earnings, CER basis and U.S. dolla rs – 1Q25
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 1Q25
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Core earnings (post-tax) | $705 | $374 | $361 | $454 | $(127) | $1,767
CER adjustment(1) | (16) | - | (13) | (11) | - | (40)
Core earnings, CER basis (post-tax) | $689 | $374 | $348 | $443 | $(127) | $1,727
Income tax on core earnings, CER basis(2) | 99 | 89 | 81 | 84 | (29) | 324
Core earnings, CER basis (pre-tax) | $788 | $463 | $429 | $527 | $(156) | $2,051
Core earnings (U.S. dollars) – Asia and U.S. segments |  |  |  |  |
Core earnings (post-tax)(3), US $ | $492 |  | $251 |  |  |
CER adjustment US $(1) | 6 |  | - |  |  |
Core earnings, CER basis (post-tax), US $ | $498 |  | $251 |  |  |

(1)The impact of updating foreign exchange rates to that which was used in 2Q25.
(2)Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.
(3)Core earnings (post-tax) in Canadian $ are translated to US$ using the US$ Statement of Income exchange rate for 1Q25.

Manulife Financial Corporation – Second Quarter 2025 | 33

Reconciliation of core earnings to net income attributed to shareholders – 4Q24(1)
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 4Q24
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Income (loss) before income taxes | $781 | $579 | $112 | $419 | $222 | $2,113
Income tax (expenses) recoveries |  |  |  |  |  |
Core earnings | (97) | (97) | (98) | (83) | 30 | (345)
Items excluded from core earnings | (59) | (20) | 89 | 48 | (119) | (61)
Income tax (expenses) recoveries | (156) | (117) | (9) | (35) | (89) | (406)
Net income (post-tax) | 625 | 462 | 103 | 384 | 133 | 1,707
Less: Net income (post-tax) attributed to |  |  |  |  |  |
Non-controlling interests | 18 | - | - | - | 4 | 22
Participating policyholders | 24 | 23 | - | - | - | 47
Net income (loss) attributed to shareholders (post-tax) | 583 | 439 | 103 | 384 | 129 | 1,638
Less: Items excluded from core earnings (post-tax) |  |  |  |  |  |
Market experience gains (losses) | (83) | 55 | (309) | (23) | 168 | (192)
Changes in actuarial methods and assumptions that flow directly through income | - | - | - | - | - | -
Restructuring charge | - | (6) | - | (46) | - | (52)
Reinsurance transactions, tax-related items and other | 26 | - | - | (6) | (45) | (25)
Core earnings (post-tax) | $640 | $390 | $412 | $459 | $6 | $1,907
Income tax on core earnings (see above) | 97 | 97 | 98 | 83 | (30) | 345
Core earnings (pre-tax) | $737 | $487 | $510 | $542 | $(24) | $2,252

(1)This reconciliation and related core earnings reconciliations below have been updated to align with the presentation of GMT in 2025. See section A7 “Global
Minimum Taxes (GMT)” for more information.
Core earnings, CER basis and U.S. dollars – 4Q24
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 4Q24
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Core earnings (post-tax) | $640 | $390 | $412 | $459 | $6 | $1,907
CER adjustment(1) | - | - | (5) | (4) | - | (9)
Core earnings, CER basis (post-tax) | $640 | $390 | $407 | $455 | $6 | $1,898
Income tax on core earnings, CER basis(2) | 98 | 97 | 96 | 82 | (30) | 343
Core earnings, CER basis (pre-tax) | $738 | $487 | $503 | $537 | $(24) | $2,241
Core earnings (U.S. dollars) – Asia and U.S. segments |  |  |  |  |
Core earnings (post-tax)(3), US $ | $457 |  | $294 |  |  |
CER adjustment US $(1) | 5 |  | - |  |  |
Core earnings, CER basis (post-tax), US $ | $462 |  | $294 |  |  |

(1)The impact of updating foreign exchange rates to that which was used in 2Q25.
(2)Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.
(3)Core earnings (post-tax) in Canadian $ are translated to US$ using the US$ Statement of Income exchange rate for 4Q24.

Manulife Financial Corporation – Second Quarter 2025 | 34

Reconciliation of core earnings to net income attributed to shareholder s – 3Q24(1)
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 3Q24
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Income (loss) before income taxes | $1,059 | $578 | $18 | $519 | $167 | $2,341
Income tax (expenses) recoveries |  |  |  |  |  |
Core earnings | (100) | (104) | (112) | (26) | 27 | (315)
Items excluded from core earnings | 61 | (10) | 99 | 6 | (115) | 41
Income tax (expenses) recoveries | (39) | (114) | (13) | (20) | (88) | (274)
Net income (post-tax) | 1,020 | 464 | 5 | 499 | 79 | 2,067
Less: Net income (post-tax) attributed to |  |  |  |  |  |
Non-controlling interests | 130 | - | - | 1 | - | 131
Participating policyholders | 63 | 34 | - | - | - | 97
Net income (loss) attributed to shareholders (post-tax) | 827 | 430 | 5 | 498 | 79 | 1,839
Less: Items excluded from core earnings (post-tax) |  |  |  |  |  |
Market experience gains (losses) | 213 | 16 | (204) | 28 | 133 | 186
Changes in actuarial methods and assumptions that flow directly through income | (5) | 2 | (202) | - | 6 | (199)
Restructuring charge | - | - | - | (20) | - | (20)
Reinsurance transactions, tax-related items and other | 35 | - | - | 11 | (2) | 44
Core earnings (post-tax) | $584 | $412 | $411 | $479 | $(58) | $1,828
Income tax on core earnings (see above) | 100 | 104 | 112 | 26 | (27) | 315
Core earnings (pre-tax) | $684 | $516 | $523 | $505 | $(85) | $2,143

(1)This reconciliation and related core earnings reconciliations below have been updated to align with the presentation of GMT in 2025. See section A7 “Global
Minimum Taxes (GMT)” for more information.
Core earnings, CER basis and U.S. dollars – 3Q24
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 3Q24
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Core earnings (post-tax) | $584 | $412 | $411 | $479 | $(58) | $1,828
CER adjustment(1) | 10 | - | 7 | 5 | 1 | 23
Core earnings, CER basis (post-tax) | $594 | $412 | $418 | $484 | $(57) | $1,851
Income tax on core earnings, CER basis(2) | 101 | 104 | 114 | 26 | (27) | 318
Core earnings, CER basis (pre-tax) | $695 | $516 | $532 | $510 | $(84) | $2,169
Core earnings (U.S. dollars) – Asia and U.S. segments |  |  |  |  |
Core earnings (post-tax)(3), US $ | $428 |  | $302 |  |  |
CER adjustment US $(1) | 1 |  | - |  |  |
Core earnings, CER basis (post-tax), US $ | $429 |  | $302 |  |  |

(1)The impact of updating foreign exchange rates to that which was used in 2Q25.
(2)Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.
(3)Core earnings (post-tax) in Canadian $ are translated to US$ using the US$ Statement of Income exchange rate for 3Q24.

Manulife Financial Corporation – Second Quarter 2025 | 35

Reconciliation of core earnings to net income attributed to shareholders – 2Q24(1)
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 2Q24
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Income (loss) before income taxes | $763 | $141 | $156 | $383 | $(59) | $1,384
Income tax (expenses) recoveries |  |  |  |  |  |
Core earnings | (95) | (107) | (95) | (59) | 36 | (320)
Items excluded from core earnings | (20) | 68 | 74 | 27 | (81) | 68
Income tax (expenses) recoveries | (115) | (39) | (21) | (32) | (45) | (252)
Net income (post-tax) | 648 | 102 | 135 | 351 | (104) | 1,132
Less: Net income (post-tax) attributed to |  |  |  |  |  |
Non-controlling interests | 38 | - | - | 1 | - | 39
Participating policyholders | 28 | 23 | - | - | - | 51
Net income (loss) attributed to shareholders (post-tax) | 582 | 79 | 135 | 350 | (104) | 1,042
Less: Items excluded from core earnings (post-tax) |  |  |  |  |  |
Market experience gains (losses) | (58) | (364) | (280) | (7) | 44 | (665)
Changes in actuarial methods and assumptions that flow directly through income | - | - | - | - | - | -
Restructuring charge | - | - | - | - | - | -
Reinsurance transactions, tax-related items and other | 24 | 41 | - | (29) | (66) | (30)
Core earnings (post-tax) | $616 | $402 | $415 | $386 | $(82) | $1,737
Income tax on core earnings (see above) | 95 | 107 | 95 | 59 | (36) | 320
Core earnings (pre-tax) | $711 | $509 | $510 | $445 | $(118) | $2,057

(1)This reconciliation and related core earnings reconciliations below have been updated to align with the presentation of GMT in 2025. See section A7 “Global
Minimum Taxes (GMT)” for more information.
Core earnings, CER basis and U.S. dollars – 2Q24
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 2Q24
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Core earnings (post-tax) | $616 | $402 | $415 | $386 | $(82) | $1,737
CER adjustment(1) | 19 | - | 4 | 3 | - | 26
Core earnings, CER basis (post-tax) | $635 | $402 | $419 | $389 | $(82) | $1,763
Income tax on core earnings, CER basis(2) | 96 | 107 | 97 | 59 | (36) | 323
Core earnings, CER basis (pre-tax) | $731 | $509 | $516 | $448 | $(118) | $2,086
Core earnings (U.S. dollars) – Asia and U.S. segments |  |  |  |  |
Core earnings (post-tax)(3), US $ | $449 |  | $303 |  |  |
CER adjustment US $(1) | 10 |  | - |  |  |
Core earnings, CER basis (post-tax), US $ | $459 |  | $303 |  |  |

(1)The impact of updating foreign exchange rates to that which was used in 2Q25.
(2)Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.
(3)Core earnings (post-tax) in Canadian $ are translated to US$ using the US$ Statement of Income exchange rate for 2Q24.

Manulife Financial Corporation – Second Quarter 2025 | 36

Reconciliation of core earnings to net income attributed to shareholders – YTD 2025
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| YTD 2025
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Income (loss) before income taxes | $1,962 | $831 | $(700) | $1,103 | $(236) | $2,960
Income tax (expenses) recoveries |  |  |  |  |  |
Core earnings | (195) | (199) | (121) | (175) | 61 | (629)
Items excluded from core earnings | (85) | 25 | 288 | (2) | (11) | 215
Income tax (expenses) recoveries | (280) | (174) | 167 | (177) | 50 | (414)
Net income (post-tax) | 1,682 | 657 | (533) | 926 | (186) | 2,546
Less: Net income (post-tax) attributed to |  |  |  |  |  |
Non-controlling interests | 116 | - | - | 1 | (2) | 115
Participating policyholders | 112 | 45 | - | - | - | 157
Net income (loss) attributed to shareholders (post-tax) | 1,454 | 612 | (533) | 925 | (184) | 2,274
Less: Items excluded from core earnings (post-tax) |  |  |  |  |  |
Market experience gains (losses) | 84 | (179) | (1,088) | 5 | (41) | (1,219)
Changes in actuarial methods and assumptions that flow directly through income | - | - | - | - | - | -
Restructuring charge | - | - | - | - | - | -
Reinsurance transactions, tax-related items and other | (55) | (2) | - | 3 | 54 | -
Core earnings (post-tax) | $1,425 | $793 | $555 | $917 | $(197) | $3,493
Income tax on core earnings (see above) | 195 | 199 | 121 | 175 | (61) | 629
Core earnings (pre-tax) | $1,620 | $992 | $676 | $1,092 | $(258) | $4,122

Core earnings, CER basis and U.S. dollars – YTD 2025
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| YTD 2025
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Core earnings (post-tax) | $1,425 | $793 | $555 | $917 | $(197) | $3,493
CER adjustment(1) | (16) | - | (13) | (11) | - | (40)
Core earnings, CER basis (post-tax) | $1,409 | $793 | $542 | $906 | $(197) | $3,453
Income tax on core earnings, CER basis(2) | 193 | 199 | 118 | 173 | (61) | 622
Core earnings, CER basis (pre-tax) | $1,602 | $992 | $660 | $1,079 | $(258) | $4,075
Core earnings (U.S. dollars) – Asia and U.S. segments |  |  |  |  |
Core earnings (post-tax)(3), US $ | $1,012 |  | $392 |  |  |
CER adjustment US $(1) | 6 |  | - |  |  |
Core earnings, CER basis (post-tax), US $ | $1,018 |  | $392 |  |  |

(1)The impact of updating foreign exchange rates to that which was used in 2Q25.
(2)Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.
(3)Core earnings (post-tax) in Canadian $ is translated to US$ using the US$ Statement of Income exchange rate for the respective quarters that make up 2025
year-to-date core earnings.

Manulife Financial Corporation – Second Quarter 2025 | 37

Reconciliation of core earnings to net income attributed to shareholders – YTD 2024(1)
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| YTD 2024
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Income (loss) before income taxes | $1,357 | $522 | $2 | $809 | $(54) | $2,636
Income tax (expenses) recoveries |  |  |  |  |  |
Core earnings | (193) | (198) | (198) | (125) | 64 | (650)
Items excluded from core earnings | (72) | 76 | 223 | 32 | (141) | 118
Income tax (expenses) recoveries | (265) | (122) | 25 | (93) | (77) | (532)
Net income (post-tax) | 1,092 | 400 | 27 | 716 | (131) | 2,104
Less: Net income (post-tax) attributed to |  |  |  |  |  |
Non-controlling interests | 93 | - | - | 1 | - | 94
Participating policyholders | 54 | 48 | - | - | - | 102
Net income (loss) attributed to shareholders (post-tax) | 945 | 352 | 27 | 715 | (131) | 1,908
Less: Items excluded from core earnings (post-tax) |  |  |  |  |  |
Market experience gains (losses) | (308) | (455) | (814) | (1) | 134 | (1,444)
Changes in actuarial methods and assumptions that flow directly through income | - | - | - | - | - | -
Restructuring charge | - | - | - | - | - | -
Reinsurance transactions, tax-related items and other | 11 | 41 | (26) | (19) | (102) | (95)
Core earnings (post-tax) | $1,242 | $766 | $867 | $735 | $(163) | $3,447
Income tax on core earnings (see above) | 193 | 198 | 198 | 125 | (64) | 650
Core earnings (pre-tax) | $1,435 | $964 | $1,065 | $860 | $(227) | $4,097

(1)This reconciliation and related core earnings reconciliations below have been updated to align with the presentation of GMT in 2025. See section A7 “Global
Minimum Taxes (GMT)” for more information.
Core earnings, CER basis and U.S. dollars – YTD 2024
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| YTD 2024
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Core earnings (post-tax) | $1,242 | $766 | $867 | $735 | $(163) | $3,447
CER adjustment(1) | 38 | - | 16 | 10 | 1 | 65
Core earnings, CER basis (post-tax) | $1,280 | $766 | $883 | $745 | $(162) | $3,512
Income tax on core earnings, CER basis(2) | 197 | 198 | 202 | 126 | (63) | 660
Core earnings, CER basis (pre-tax) | $1,477 | $964 | $1,085 | $871 | $(225) | $4,172
Core earnings (U.S. dollars) – Asia and U.S. segments |  |  |  |  |
Core earnings (post-tax)(3), US $ | $914 |  | $638 |  |  |
CER adjustment US $(1) | 11 |  | - |  |  |
Core earnings, CER basis (post-tax), US $ | $925 |  | $638 |  |  |

(1)The impact of updating foreign exchange rates to that which was used in 2Q25.
(2)Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.
(3)Core earnings (post-tax) in Canadian $ is translated to US$ using the US$ Statement of Income exchange rate for the respective quarters that make up 2024
year-to-date core earnings.

Manulife Financial Corporation – Second Quarter 2025 | 38

Reconciliation of core earnings to net income attributed to shareholders – 2024(1)
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 2024
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Income (loss) before income taxes | $3,197 | $1,679 | $132 | $1,747 | $335 | $7,090
Income tax (expenses) recoveries |  |  |  |  |  |
Core earnings | (390) | (399) | (408) | (234) | 121 | (1,310)
Items excluded from core earnings | (70) | 46 | 411 | 86 | (375) | 98
Income tax (expenses) recoveries | (460) | (353) | 3 | (148) | (254) | (1,212)
Net income (post-tax) | 2,737 | 1,326 | 135 | 1,599 | 81 | 5,878
Less: Net income (post-tax) attributed to |  |  |  |  |  |
Non-controlling interests | 241 | - | - | 2 | 4 | 247
Participating policyholders | 141 | 105 | - | - | - | 246
Net income (loss) attributed to shareholders (post-tax) | 2,355 | 1,221 | 135 | 1,597 | 77 | 5,385
Less: Items excluded from core earnings (post-tax) |  |  |  |  |  |
Market experience gains (losses) | (178) | (384) | (1,327) | 4 | 435 | (1,450)
Changes in actuarial methods and assumptions that flow directly through income | (5) | 2 | (202) | - | 6 | (199)
Restructuring charge | - | (6) | - | (66) | - | (72)
Reinsurance transactions, tax-related items and other | 72 | 41 | (26) | (14) | (149) | (76)
Core earnings (post-tax) | $2,466 | $1,568 | $1,690 | $1,673 | $(215) | $7,182
Income tax on core earnings (see above) | 390 | 399 | 408 | 234 | (121) | 1,310
Core earnings (pre-tax) | $2,856 | $1,967 | $2,098 | $1,907 | $(336) | $8,492

(1)This reconciliation and related core earnings reconciliations below have been updated to align with the presentation of GMT in 2025. See section A7 “Global
Minimum Taxes (GMT)” for more information.
Core earnings, CER basis and U.S. dollars – 2024
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 2024
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Core earnings (post-tax) | $2,466 | $1,568 | $1,690 | $1,673 | $(215) | $7,182
CER adjustment(1) | 49 | - | 17 | 11 | 2 | 79
Core earnings, CER basis (post-tax) | $2,515 | $1,568 | $1,707 | $1,684 | $(213) | $7,261
Income tax on core earnings, CER basis(2) | 396 | 399 | 412 | 236 | (121) | 1,322
Core earnings, CER basis (pre-tax) | $2,911 | $1,967 | $2,119 | $1,920 | $(334) | $8,583
Core earnings (U.S. dollars) – Asia and U.S. segments |  |  |  |  |
Core earnings (post-tax)(3), US $ | $1,799 |  | $1,234 |  |  |
CER adjustment US $(1) | 17 |  | - |  |  |
Core earnings, CER basis (post-tax), US $ | $1,816 |  | $1,234 |  |  |

(1)The impact of updating foreign exchange rates to that which was used in 2Q25.
(2)Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.
(3)Core earnings (post-tax) in Canadian $ are translated to US$ using the US$ Statement of Income exchange rate for the four respective quarters that make up
2024 core earnings.
1 2024 core earnings in this section has been updated to align with the presentation of GMT in 2025. See section A7 “Global Minimum Taxes (GMT)” for more
information.

Manulife Financial Corporation – Second Quarter 2025 | 39

Segment core earnings by business line or geographic source 1
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
Asi a

| Quarterly Results | YTD Results | Full Year Results
(US $ millions) | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
Hong Kong | $259 | $256 | $230 | $233 | $220 | $515 | $438 | $901
Japan | 97 | 87 | 87 | 81 | 92 | 184 | 194 | 362
Asia Other(1) | 159 | 149 | 151 | 123 | 145 | 308 | 296 | 570
International High Net Worth |  |  |  |  |  |  |  | 114
Mainland China |  |  |  |  |  |  |  | 41
Singapore |  |  |  |  |  |  |  | 216
Vietnam |  |  |  |  |  |  |  | 126
Other Emerging Markets(2) |  |  |  |  |  |  |  | 73
Regional Office | 5 | - | (11) | (9) | (8) | 5 | (14) | (34)
Total Asia core earnings | $520 | $492 | $457 | $428 | $449 | $1,012 | $914 | $1,799

(1)Core earnings for Asia Other are reported by country annually, on a full year basis.
(2)Other Emerging Markets includes Indonesia, the Philippines, Malaysia, Thailand, Cambodia and Myanmar.

| Quarterly Results | YTD Results | Full Year Results
(US $ millions), CER basis(1) | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
Hong Kong | $259 | $256 | $231 | $232 | $221 | $515 | $439 | $901
Japan | 97 | 92 | 92 | 83 | 100 | 189 | 205 | 380
Asia Other(2) | 159 | 150 | 150 | 123 | 146 | 309 | 295 | 569
International High Net Worth |  |  |  |  |  |  |  | 114
Mainland China |  |  |  |  |  |  |  | 41
Singapore |  |  |  |  |  |  |  | 222
Vietnam |  |  |  |  |  |  |  | 120
Other Emerging Markets(3) |  |  |  |  |  |  |  | 72
Regional Office | 5 | - | (11) | (9) | (8) | 5 | (14) | (34)
Total Asia core earnings, CER basis | $520 | $498 | $462 | $429 | $459 | $1,018 | $925 | $1,816

(1)Core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.
(2)Core earnings for Asia Other are reported by country annually, on a full year basis.
(3)Other Emerging Markets includes Indonesia, the Philippines, Malaysia, Thailand, Cambodia and Myanmar.
Canada

| Quarterly Results | YTD Results | Full Year Results
(Canadian $ in millions) | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
Insurance | $326 | $280 | $295 | $320 | $307 | $606 | $573 | $1,188
Annuities | 56 | 58 | 51 | 51 | 55 | 114 | 108 | 210
Manulife Bank | 37 | 36 | 44 | 41 | 40 | 73 | 85 | 170
Total Canada core earnings | $419 | $374 | $390 | $412 | $402 | $793 | $766 | $1,568

U.S.

| Quarterly Results | YTD Results | Full Year Results
(US $ in millions) | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
U.S. Insurance | $114 | $229 | $256 | $268 | $254 | $343 | $540 | $1,064
U.S. Annuities | 27 | 22 | 38 | 34 | 49 | 49 | 98 | 170
Total U.S. core earnings | $141 | $251 | $294 | $302 | $303 | $392 | $638 | $1,234

Manulife Financial Corporation – Second Quarter 2025 | 40

Global WAM by business line

| Quarterly Results | YTD Results | Full Year Results
(Canadian $ in millions) | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
Retirement | $265 | $263 | $259 | $284 | $213 | $528 | $407 | $950
Retail | 145 | 141 | 161 | 154 | 135 | 286 | 266 | 581
Institutional asset management | 53 | 50 | 39 | 41 | 38 | 103 | 62 | 142
Total Global WAM core earnings | $463 | $454 | $459 | $479 | $386 | $917 | $735 | $1,673
| Quarterly Results | YTD Results | Full Year Results
(Canadian $ in millions), CER basis(1) | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
Retirement | $265 | $256 | $257 | $287 | $214 | $521 | $413 | $957
Retail | 145 | 138 | 159 | 155 | 137 | 283 | 270 | 584
Institutional asset management | 53 | 49 | 39 | 42 | 38 | 102 | 62 | 143
Total Global WAM core earnings, CER basis | $463 | $443 | $455 | $484 | $389 | $906 | $745 | $1,684

(1)Core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.
Global WAM by geographic source

| Quarterly Results | YTD Results | Full Year Results
(Canadian $ in millions) | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
Asia | $126 | $138 | $135 | $137 | $125 | $264 | $225 | $497
Canada | 109 | 110 | 108 | 107 | 85 | 219 | 175 | 390
U.S. | 228 | 206 | 216 | 235 | 176 | 434 | 335 | 786
Total Global WAM core earnings | $463 | $454 | $459 | $479 | $386 | $917 | $735 | $1,673
| Quarterly Results | YTD Results | Full Year Results
(Canadian $ in millions), CER basis(1) | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
Asia | $126 | $134 | $133 | $139 | $126 | $260 | $229 | $501
Canada | 109 | 110 | 108 | 107 | 85 | 219 | 175 | 390
U.S. | 228 | 199 | 214 | 238 | 178 | 427 | 341 | 793
Total Global WAM core earnings, CER basis | $463 | $443 | $455 | $484 | $389 | $906 | $745 | $1,684

(1)Core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.
Core earnings available to common shareholders is a financial measure that is used in the calculation of core ROE and
core EPS. It is calculated as core earnings (post-tax) less preferred share dividends and other equity distributions.

($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated) | Quarterly Results | YTD Results | Full Year Results
2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
Core earnings(1) | $1,726 | $1,767 | $1,907 | $1,828 | $1,737 | $3,493 | $3,447 | $7,182
Less: Preferred share dividends and other equity distributions(2) | 103 | 57 | 101 | 56 | 99 | 160 | 154 | 311
Core earnings available to common shareholders(1) | 1,623 | 1,710 | 1,806 | 1,772 | 1,638 | 3,333 | 3,293 | 6,871
CER adjustment(3) | - | (40) | (9) | 23 | 26 | (40) | 65 | 79
Core earnings available to common shareholders, CER basis(1) | $1,623 | $1,670 | $1,797 | $1,795 | $1,664 | $3,293 | $3,358 | $6,950

(1)2024 core earning s and core earnings available to common shareholders have been updated to align with the presentation of GMT in 2025. See section A7
“Global Minimum Taxes (GMT)” for more information.
(2)Preferred share dividends and other equity distributions are recorded in the Corporate and Other segment. As a result, core earnings and core earnings
available to common shareholders are the same figure for Asia, Canada, U.S. and Global WAM segments. Core earnings for Corporate and Other segment is
reduced by preferred shares and other equity distributions to arrive at core earnings available to common shareholders. See above for the reconciliation of core
earnings to net income attributed to shareholders for each segment.
(3)The impact of updating foreign exchange rates to that which was used in 2Q25.
Core ROE measures profitability using core earnings available to common shareholders as a percentage of the capital
deployed to earn the core earnings. The Company calculates core ROE using average common shareholders’ equity quarterly,
as the average of common shareholders’ equity at the start and end of the quarter, and annually, as the average of the
quarterly average common shareholders’ equity for the year.

Manulife Financial Corporation – Second Quarter 2025 | 41

($ millions, unless otherwise stated) | Quarterly Results | YTD Results | Full Year Results
2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
Core earnings available to common shareholders(1) | $1,623 | $1,710 | $1,806 | $1,772 | $1,638 | $3,333 | $3,293 | $6,871
Annualized core earnings available to common shareholders (post- tax) | $6,510 | $6,935 | $7,185 | $7,049 | $6,588 | $6,721 | $6,622 | $6,871
Average common shareholders’ equity (see below) | $43,448 | $44,394 | $43,613 | $42,609 | $41,947 | $43,921 | $41,466 | $42,288
Core ROE (annualized) (%)(1) | 15.0% | 15.6% | 16.5% | 16.6% | 15.7% | 15.3% | 16.0% | 16.2%
Average common shareholders’ equity |  |  |  |  |  |  |  |
Total shareholders’ and other equity | $49,080 | $51,135 | $50,972 | $49,573 | $48,965 | $49,080 | $48,965 | $50,972
Less: Preferred shares and other equity | 6,660 | 6,660 | 6,660 | 6,660 | 6,660 | 6,660 | 6,660 | 6,660
Common shareholders’ equity | $42,420 | $44,475 | $44,312 | $42,913 | $42,305 | $42,420 | $42,305 | $44,312
Average common shareholders’ equity | $43,448 | $44,394 | $43,613 | $42,609 | $41,947 | $43,921 | $41,466 | $42,288

(1)2024 core earnings available to common shareholders and core ROE have been updated to align with the presentation of GMT in 2025. See section A7 “Global
Minimum Taxes (GMT)” for more information.
Core EPS is equal to core earnings available to common shareholders divided by diluted weighted average common shares
outstanding.
Core earnings related to strategic priorities
The Company measures its progress on certain strategic priorities using core earnings, including core earnings from highest
potential businesses. The core earnings for these businesses is calculated consistent with our definition of core earnings and
expressed as a percentage of total core earnings.

For the six months ended June 30, | 2025 | 2024
($ millions and post-tax, unless otherwise stated)(1)
Core earnings highest potential businesses(2) | $2,725 | $2,343
Core earnings – All other businesses | 768 | 1,104
Core earnings | 3,493 | 3,447
Items excluded from core earnings | (1,219) | (1,539)
Net income (loss) attributed to shareholders | $2,274 | $1,908
Highest potential businesses core earnings contribution(1) | 78% | 68%

(1)2024 core earnings, items excluded from core earnings and core earnings contribution have been updated to align with the presentation of GMT in 2025. See
section A7 “Global Minimum Taxes (GMT)” for more information.
(2)Includes core earnings from Asia and Global WAM segments, Canada Group Benefits, and North American behavioural insurance products.
The effectiv e tax rate on core earnings is equal to income tax on core earnings divided by pre-tax core earnings.
Common share core dividend payout ratio is a ratio that measures the percentage of core earnings paid to common
shareholders as dividends. It is calculated as dividends per common share divided by core EPS.

| Quarterly Results | YTD Results | Full Year Results
| 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
Per share dividend | $0.44 | $0.44 | $0.40 | $0.40 | $0.40 | $0.88 | $0.80 | $1.60
Core EPS(1) | $0.95 | $0.99 | $1.03 | $1.00 | $0.91 | $1.94 | $1.82 | $3.85
Common share core dividend payout ratio(1) | 46% | 44% | 39% | 40% | 44% | 45% | 44% | 42%

(1)2024 core EPS and common share core dividend ratio have been updated to align with the presentation of GMT in 2025. See section A7 “Global Minimum
Taxes (GMT)” for more information.
The Company also uses financial performance measures that are prepared on a constant exchange rate basis, which
exclude the impact of currency fluctuations (from local currency to Canadian dollars at a total Company level and from local
currency to U.S. dollars in Asia). Such financial measures may be stated on a constant exchange rate basis or the percentage
growth/decline in the financial measure on a constant exchange rate basis, using the income statement and balance sheet
exchange rates effective for the second quarter of 2025.
Information supporting constant exchange rate basis for GAAP and non-GAAP financial measures is presented throughout this
section.

Manulife Financial Corporation – Second Quarter 2025 | 42

Core earnings excluding the change in ECL is equal to core earnings less the change in ECL included in core earnings. We
believe this measure will aid investors to better understand our operating performance.

For the three months ended June 30, | 2025 | 2024
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
Core earnings | $1,726 | $1,737
Less: (Increase) recovery in the ECL(1) | (83) | (4)
Core earnings, excluding change in ECL | 1,809 | 1,741
CER adjustment(2) | - | 26
Core earnings, excluding change in ECL, CER basis | $1,809 | $1,767

(1)2Q24 excludes the change in ECL related to the RGA Canadian Reinsurance Transaction.
(2)The impact of updating foreign exchange rates to that which was used in 2Q25.
Core earnings available to common shareholders excluding the change in ECL is a financial measure that is used in the
calculation of core EPS excluding the change in ECL. It is calculated as core earnings available to common shareholders
minus the change in ECL included in core earnings. Core EPS excluding the impact of the change in ECL measures
profitability to aid investors to better understand our operating performance. It is calculated using core earnings available to
common shareholders excluding the change in ECL divided by the weighted average common shares outstanding.

For the three months ended June 30, | 2025 | 2024
($ millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)
Core earnings available to common shareholders | $1,623 | $1,638
Less: (Increase) recovery in the ECL(1) | (83) | (4)
Core earnings available to common shareholders, excluding change in ECL | 1,706 | 1,642
CER adjustment(2) | - | 26
Core earnings available to common shareholders, excluding change in ECL, CER basis | $1,706 | $1,668

(1)2Q24 excludes the change in ECL related to the RGA Canadian Reinsurance Transaction.
(2)The impact of updating foreign exchange rates to that which was used in 2Q25.
Basic EPS and diluted EPS, CER basis is equal to common shareholders’ net income on a CER basis divided by the
weighted average common shares outstanding and diluted weighted common shares outstanding, respectively.

Manulife Financial Corporation – Second Quarter 2025 | 43

Drivers of Earnings (“DOE”) is used to identify the primary sources of gains or losses in each reporting period. It is one of
the key tools we use to understand and manage our business. The DOE line items are comprised of amounts that have been
included in our financial statements. The core DOE shows the sources of core earnings and the items excluded from core
earnings, reconciled to net income attributed to shareholders. The elements of the core earnings DOE are described below:
Net Insurance Service Result represents the core earnings associated with providing insurance service to policyholders
within the period including:
•Expected earnings on insurance contracts which includes the release of risk adjustment for expired non-financial risk, the
CSM recognized for service provided and expected earnings on short-term PAA insurance business.
•Impact of new insurance business relates to income at initial recognition from new insurance contracts. Losses would
occur if the group of new insurance contracts was onerous at initial recognition. If reinsurance contracts provide coverage
for the direct insurance contracts, then the loss is offset by a corresponding gain on reinsurance contracts held.
•Insurance experience gains (losses) arise from items such as claims, persistency, and expenses, where the actual
experience in the current period differs from the expected results assumed in the insurance and investment contract
liabilities. Generally, this line would be driven by claims and expenses, as persistency experience relates to future service
and would be offset by changes to the carrying amount of the contractual service margin unless the group is onerous, in
which case the impact of persistency experience would be included in core earnings.
•Other represents pre-tax net income on residual items in the insurance result section.
Net Investment Result represents the core earnings associated with investment results within the period. Note that results
associated with Global WAM and Manulife Bank are shown on separate DOE lines. However, within the Consolidated
Statements of Income, the results associated with these businesses would impact the total investment result. This section
includes:
•Expected investment earnings, which is the difference between expected asset returns and the associated finance
income or expense from insurance and investment contract liabilities, net of investment expenses.
•Change in expected credit loss, which is the gain or charge to net income attributed to shareholders for credit losses to
bring the allowance for credit losses to a level management considers adequate for expected credit-related losses on its
portfolio.
•Expected earnings on surplus reflects the expected investment return on surplus assets.
•Other represents pre-tax net income on residual items in the investment result section.
Global WAM is the pre-tax net income from the Global Wealth and Asset Management segment, adjusted for applicable items
excluded from core earnings as noted in the core earnings (loss) section above.
Manulife Bank is the pre-tax net income from Manulife Bank, adjusted for applicable items excluded from core earnings as
noted in the core earnings (loss) section above.
Other represents net income associated with items outside of the net insurance service result, net investment result, Global
WAM and Manulife Bank. Other includes lines attributed to core earnings such as:
•Non-directly attributable expenses are expenses incurred by the Company which are not directly attributable to fulfilling
insurance contracts. Non-directly attributable expenses exclude non-directly attributable investment expenses as they are
included in the net investment result.
•Other represents pre-tax net income on residual items in the Other section. Most notably this would include the cost of
financing debt issued by Manulife.
Net income attributed to shareholders includes the following items excluded from core earnings:
•Market experience gains (losses) related to items excluded from core earnings that relate to changes in market
variables.
•Changes in actuarial methods and assumptions that flow directly through income related to updates in the methods
and assumptions used to value insurance contract liabilities.
•Restructuring charges includes a charge taken to reorganize operations.
•Reinsurance transactions, tax-related items and other include the impacts of new or changes to in-force reinsurance
contracts, the impact of enacted or substantively enacted income tax rate changes and other amounts defined as items
excluded from core earnings not specifically captured in the lines above.
All of the above items are discussed in more detail in our definition of items excluded from core earnings.

Manulife Financial Corporation – Second Quarter 2025 | 44

DOE Reconciliation – 2Q25
($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 2Q25
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Net insurance service result reconciliation |  |  |  |  |  |
Total insurance service result – financial statements | $571 | $370 | $39 | $- | $26 | $1,006
Less: Insurance service result attributed to: |  |  |  |  |  |
Items excluded from core earnings | (43) | - | 28 | - | - | (15)
NCI | 16 | - | - | - | - | 16
Participating policyholders | 65 | 25 | - | - | - | 90
Core net insurance service result | 533 | 345 | 11 | - | 26 | 915
Core net insurance service result, CER adjustment(1) | - | - | - | - | - | -
Core net insurance service result, CER basis | $533 | $345 | $11 | $- | $26 | $915
Total investment result reconciliation |  |  |  |  |  |
Total investment result per financial statements | $685 | $433 | $10 | $(208) | $346 | $1,266
Less: Reclassify Manulife Bank(2) and Global WAM to their own DOE lines | - | 312 | - | (208) | - | 104
Add: Consolidation and other adjustments from Other DOE line | 1 | 3 | 28 | - | (157) | (125)
Less: Net investment result attributed to: |  |  |  |  |  |
Items excluded from core earnings | 275 | (27) | (208) | - | 105 | 145
NCI | 51 | - | - | - | - | 51
Participating policyholders | 24 | (2) | - | - | - | 22
Core net investment result | 336 | 153 | 246 | - | 84 | 819
Core net investment result, CER adjustment(1) | - | - | - | - | - | -
Core net investment result, CER basis | $336 | $153 | $246 | $- | $84 | $819
Manulife Bank and Global WAM by DOE line reconciliation |  |  |  |  |  |
Manulife Bank and Global WAM net income attributed to shareholders | $- | $53 | $- | $575 | $- | $628
Less: Manulife Bank and Global WAM attributed to: |  |  |  |  |  |
Items excluded from core earnings | - | - | - | 23 | - | 23
Core earnings in Manulife Bank and Global WAM | - | 53 | - | 552 | - | 605
Core earnings in Manulife Bank and Global WAM, CER adjustment(1) | - | - | - | - | - | -
Core earnings in Manulife Bank and Global WAM, CER basis | $- | $53 | $- | $552 | $- | $605
Other reconciliation |  |  |  |  |  |
Other revenue per financial statements | $(92) | $85 | $33 | $1,902 | $(77) | $1,851
General expenses per financial statements | (73) | (154) | (47) | (756) | (110) | (1,140)
Commissions related to non-insurance contracts | 7 | (18) | 1 | (362) | 8 | (364)
Interest expenses per financial statements | (6) | (190) | (5) | (1) | (156) | (358)
Total financial statements values included in Other | (164) | (277) | (18) | 783 | (335) | (11)
Less: Reclassifications: |  |  |  |  |  |
Manulife Bank and Global WAM to their own DOE lines | - | (259) | - | 783 | - | 524
Consolidation and other adjustments to net investment result DOE line | 1 | 3 | 28 | - | (157) | (125)
Less: Other attributed to: |  |  |  |  |  |
Items excluded from core earnings | (97) | 3 | (20) | - | 34 | (80)
NCI | 1 | - | - | - | - | 1
Participating policyholders | (5) | 1 | - | - | - | (4)
Add: Participating policyholders’ earnings transfer to shareholders | 9 | 3 | - | - | - | 12
Other core earnings | (55) | (22) | (26) | - | (212) | (315)
Other core earnings, CER adjustment(1) | - | - | - | - | - | -
Other core earnings, CER basis | $(55) | $(22) | $(26) | $- | $(212) | $(315)
Income tax (expenses) recoveries reconciliation |  |  |  |  |  |
Income tax (expenses) recoveries per financial statements | $(149) | $(115) | $5 | $(94) | $15 | $(338)
Less: Income tax (expenses) recoveries attributed to: |  |  |  |  |  |
Items excluded from core earnings | (25) | (5) | 42 | (5) | (17) | (10)
NCI | (19) | - | - | - | - | (19)
Participating policyholders | (11) | - | - | - | - | (11)
Core income tax (expenses) recoveries | (94) | (110) | (37) | (89) | 32 | (298)
Core income tax (expenses) recoveries, CER adjustment(1) | - | - | - | - | - | -
Core income tax (expenses) recoveries, CER basis | $(94) | $(110) | $(37) | $(89) | $32 | $(298)

(1)The impact of updating foreign exchange rates to that which was used in 2Q25.
(2)Manulife Bank is part of Canada segment.

Manulife Financial Corporation – Second Quarter 2025 | 45

DOE Reconciliation – 1Q25
($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 1Q25
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Net insurance service result reconciliation |  |  |  |  |  |
Total insurance service result – financial statements | $614 | $317 | $147 | $- | $(35) | $1,043
Less: Insurance service result attributed to: |  |  |  |  |  |
Items excluded from core earnings | (13) | (5) | 33 | - | - | 15
NCI | 27 | - | - | - | - | 27
Participating policyholders | 62 | 14 | - | - | - | 76
Core net insurance service result | 538 | 308 | 114 | - | (35) | 925
Core net insurance service result, CER adjustment(1) | (12) | - | (4) | - | - | (16)
Core net insurance service result, CER basis | $526 | $308 | $110 | $- | $(35) | $909
Total investment result reconciliation |  |  |  |  |  |
Total investment result per financial statements | $344 | $298 | $(850) | $(272) | $116 | $(364)
Less: Reclassify Manulife Bank(2) and Global WAM to their own DOE lines | - | 332 | - | (272) | - | 60
Add: Consolidation and other adjustments from Other DOE line | - | - | - | - | (171) | (171)
Less: Net investment result attributed to: |  |  |  |  |  |
Items excluded from core earnings | (50) | (179) | (1,210) | - | (149) | (1,588)
NCI | 60 | - | - | - | (2) | 58
Participating policyholders | 8 | 14 | - | - | - | 22
Core net investment result | 326 | 131 | 360 | - | 96 | 913
Core net investment result, CER adjustment(1) | (7) | - | (13) | - | - | (20)
Core net investment result, CER basis | $319 | $131 | $347 | $- | $96 | $893
Manulife Bank and Global WAM by DOE line reconciliation |  |  |  |  |  |
Manulife Bank and Global WAM net income attributed to shareholders | $- | $50 | $- | $527 | $- | $577
Less: Manulife Bank and Global WAM attributed to: |  |  |  |  |  |
Items excluded from core earnings | - | - | - | (13) | - | (13)
Core earnings in Manulife Bank and Global WAM | - | 50 | - | 540 | - | 590
Core earnings in Manulife Bank and Global WAM, CER adjustment(1) | - | - | - | (13) | - | (13)
Core earnings in Manulife Bank and Global WAM, CER basis | $- | $50 | $- | $527 | $- | $577
Other reconciliation |  |  |  |  |  |
Other revenue per financial statements | $1 | $74 | $25 | $1,975 | $(89) | $1,986
General expenses per financial statements | (80) | (152) | (52) | (797) | (121) | (1,202)
Commissions related to non-insurance contracts | (2) | (18) | 2 | (377) | 10 | (385)
Interest expenses per financial statements | (7) | (214) | (3) | (1) | (154) | (379)
Total financial statements values included in Other | (88) | (310) | (28) | 800 | (354) | 20
Less: Reclassifications: |  |  |  |  |  |
Manulife Bank and Global WAM to their own DOE lines | - | (282) | - | 800 | - | 518
Consolidation and other adjustments to net investment result DOE line | - | - | - | (1) | (171) | (172)
Less: Other attributed to: |  |  |  |  |  |
Items excluded from core earnings | (17) | 2 | 1 | - | 34 | 20
NCI | 1 | - | - | 1 | - | 2
Participating policyholders | (3) | (1) | - | - | - | (4)
Add: Participating policyholders’ earnings transfer to shareholders | 11 | 3 | - | - | - | 14
Other core earnings | (58) | (26) | (29) | - | (217) | (330)
Other core earnings, CER adjustment(1) | 1 | - | 1 | - | - | 2
Other core earnings, CER basis | $(57) | $(26) | $(28) | $- | $(217) | $(328)
Income tax (expenses) recoveries reconciliation |  |  |  |  |  |
Income tax (expenses) recoveries per financial statements | $(131) | $(59) | $162 | $(83) | $35 | $(76)
Less: Income tax (expenses) recoveries attributed to: |  |  |  |  |  |
Items excluded from core earnings | (1) | 30 | 246 | 3 | 6 | 284
NCI | (21) | - | - | - | - | (21)
Participating policyholders | (8) | - | - | - | - | (8)
Core income tax (expenses) recoveries | (101) | (89) | (84) | (86) | 29 | (331)
Core income tax (expenses) recoveries, CER adjustment(1) | 2 | - | 3 | 2 | - | 7
Core income tax (expenses) recoveries, CER basis | $(99) | $(89) | $(81) | $(84) | $29 | $(324)

(1)The impact of updating foreign exchange rates to that which was used in 2Q25.
(2)Manulife Bank is part of Canada segment.

Manulife Financial Corporation – Second Quarter 2025 | 46

DOE Reconciliation – 4Q24(1)
($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 4Q24
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Net insurance service result reconciliation |  |  |  |  |  |
Total insurance service result – financial statements | $545 | $330 | $(257) | $- | $71 | $689
Less: Insurance service result attributed to: |  |  |  |  |  |
Items excluded from core earnings | (6) | (3) | (408) | - | 1 | (416)
NCI | 18 | - | - | - | - | 18
Participating policyholders | 51 | 7 | - | - | - | 58
Core net insurance service result | 482 | 326 | 151 | - | 70 | 1,029
Core net insurance service result, CER adjustment(2) | - | - | (2) | - | - | (2)
Core net insurance service result, CER basis | $482 | $326 | $149 | $- | $70 | $1,027
Total investment result reconciliation |  |  |  |  |  |
Total investment result per financial statements | $279 | $612 | $369 | $(316) | $615 | $1,559
Less: Reclassify Manulife Bank(3) and Global WAM to their own DOE lines | - | 382 | - | (316) | - | 66
Add: Consolidation and other adjustments from Other DOE line | 1 | 1 | - | - | (198) | (196)
Less: Net investment result attributed to: |  |  |  |  |  |
Items excluded from core earnings | (56) | 85 | (16) | - | 287 | 300
NCI | 14 | - | - | - | 4 | 18
Participating policyholders | (3) | 15 | - | - | - | 12
Core net investment result | 325 | 131 | 385 | - | 126 | 967
Core net investment result, CER adjustment(2) | 1 | - | (5) | - | - | (4)
Core net investment result, CER basis | $326 | $131 | $380 | $- | $126 | $963
Manulife Bank and Global WAM by DOE line reconciliation |  |  |  |  |  |
Manulife Bank and Global WAM net income attributed to shareholders | $- | $53 | $- | $420 | $- | $473
Less: Manulife Bank and Global WAM attributed to: |  |  |  |  |  |
Items excluded from core earnings | - | (7) | - | (122) | - | (129)
Core earnings in Manulife Bank and Global WAM | - | 60 | - | 542 | - | 602
Core earnings in Manulife Bank and Global WAM, CER adjustment(2) | - | - | - | (5) | - | (5)
Core earnings in Manulife Bank and Global WAM, CER basis | $- | $60 | $- | $537 | $- | $597
Other reconciliation |  |  |  |  |  |
Other revenue per financial statements | $79 | $72 | $45 | $2,005 | $(198) | $2,003
General expenses per financial statements | (112) | (162) | (45) | (883) | (126) | (1,328)
Commissions related to non-insurance contracts | (1) | (16) | 2 | (385) | 10 | (390)
Interest expenses per financial statements | (9) | (257) | (2) | (2) | (150) | (420)
Total financial statements values included in Other | (43) | (363) | - | 735 | (464) | (135)
Less: Reclassifications: |  |  |  |  |  |
Manulife Bank and Global WAM to their own DOE lines | - | (328) | - | 735 | - | 407
Consolidation and other adjustments to net investment result DOE line | 1 | - | - | 1 | (198) | (196)
Less: Other attributed to: |  |  |  |  |  |
Items excluded from core earnings | 40 | - | 26 | (1) | (46) | 19
NCI | 1 | - | - | - | - | 1
Participating policyholders | - | (2) | - | - | - | (2)
Add: Participating policyholders’ earnings transfer to shareholders | 15 | 3 | - | - | - | 18
Other core earnings | (70) | (30) | (26) | - | (220) | (346)
Other core earnings, CER adjustment(2) | - | - | - | - | - | -
Other core earnings, CER basis | $(70) | $(30) | $(26) | $- | $(220) | $(346)
Income tax (expenses) recoveries reconciliation |  |  |  |  |  |
Income tax (expenses) recoveries per financial statements | $(156) | $(117) | $(9) | $(35) | $(89) | $(406)
Less: Income tax (expenses) recoveries attributed to: |  |  |  |  |  |
Items excluded from core earnings | (35) | (26) | 89 | 48 | (119) | (43)
NCI | (15) | - | - | - | - | (15)
Participating policyholders | (9) | 6 | - | - | - | (3)
Core income tax (expenses) recoveries | (97) | (97) | (98) | (83) | 30 | (345)
Core income tax (expenses) recoveries, CER adjustment(2) | (1) | - | 2 | 1 | - | 2
Core income tax (expenses) recoveries, CER basis | $(98) | $(97) | $(96) | $(82) | $30 | $(343)

(1)This reconciliation has been updated to align with the presentation of GMT in 2025. See section A7 “Global Minimum Taxes (GMT)” for more information.
(2)The impact of updating foreign exchange rates to that which was used in 2Q25.
(3)Manulife Bank is part of Canada segment.

Manulife Financial Corporation – Second Quarter 2025 | 47

DOE Reconciliation – 3Q24(1)
($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 3Q24
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Net insurance service result reconciliation |  |  |  |  |  |
Total insurance service result – financial statements | $548 | $363 | $338 | $- | $48 | $1,297
Less: Insurance service result attributed to: |  |  |  |  |  |
Items excluded from core earnings | (3) | 6 | 158 | - | - | 161
NCI | 33 | - | - | - | - | 33
Participating policyholders | 55 | 18 | - | - | - | 73
Core net insurance service result | 463 | 339 | 180 | - | 48 | 1,030
Core net insurance service result, CER adjustment(2) | 7 | - | 2 | - | - | 9
Core net insurance service result, CER basis | $470 | $339 | $182 | $- | $48 | $1,039
Total investment result reconciliation |  |  |  |  |  |
Total investment result per financial statements | $644 | $563 | $(303) | $(196) | $393 | $1,101
Less: Reclassify Manulife Bank(3) and Global WAM to their own DOE lines | - | 389 | - | (196) | - | 193
Add: Consolidation and other adjustments from Other DOE line | (1) | 1 | - | - | (148) | (148)
Less: Net investment result attributed to: |  |  |  |  |  |
Items excluded from core earnings | 194 | 3 | (668) | - | 154 | (317)
NCI | 125 | - | - | - | - | 125
Participating policyholders | 33 | 26 | - | - | - | 59
Core net investment result | 291 | 146 | 365 | - | 91 | 893
Core net investment result, CER adjustment(2) | 6 | - | 6 | - | - | 12
Core net investment result, CER basis | $297 | $146 | $371 | $- | $91 | $905
Manulife Bank and Global WAM by DOE line reconciliation |  |  |  |  |  |
Manulife Bank and Global WAM net income attributed to shareholders | $- | $69 | $- | $518 | $- | $587
Less: Manulife Bank and Global WAM attributed to: |  |  |  |  |  |
Items excluded from core earnings | - | 12 | - | 13 | - | 25
Core earnings in Manulife Bank and Global WAM | - | 57 | - | 505 | - | 562
Core earnings in Manulife Bank and Global WAM, CER adjustment(2) | - | - | - | 5 | - | 5
Core earnings in Manulife Bank and Global WAM, CER basis | $- | $57 | $- | $510 | $- | $567
Other reconciliation |  |  |  |  |  |
Other revenue per financial statements | $(42) | $74 | $26 | $1,875 | $(5) | $1,928
General expenses per financial statements | (83) | (154) | (41) | (795) | (131) | (1,204)
Commissions related to non-insurance contracts | (3) | (15) | 2 | (364) | 10 | (370)
Interest expenses per financial statements | (5) | (253) | (4) | (1) | (148) | (411)
Total financial statements values included in Other | (133) | (348) | (17) | 715 | (274) | (57)
Less: Reclassifications: |  |  |  |  |  |
Manulife Bank and Global WAM to their own DOE lines | - | (319) | - | 715 | - | 396
Consolidation and other adjustments to net investment result DOE line | (1) | - | - | (1) | (148) | (150)
Less: Other attributed to: |  |  |  |  |  |
Items excluded from core earnings | (49) | 3 | 5 | - | 98 | 57
NCI | (2) | - | - | 1 | - | (1)
Participating policyholders | (6) | (3) | - | - | - | (9)
Add: Participating policyholders’ earnings transfer to shareholders | 5 | 3 | - | - | - | 8
Other core earnings | (70) | (26) | (22) | - | (224) | (342)
Other core earnings, CER adjustment(2) | (2) | - | 1 | - | 1 | -
Other core earnings, CER basis | $(72) | $(26) | $(21) | $- | $(223) | $(342)
Income tax (expenses) recoveries reconciliation |  |  |  |  |  |
Income tax (expenses) recoveries per financial statements | $(39) | $(114) | $(13) | $(20) | $(88) | $(274)
Less: Income tax (expenses) recoveries attributed to: |  |  |  |  |  |
Items excluded from core earnings | 101 | (6) | 99 | 6 | (115) | 85
NCI | (26) | - | - | - | - | (26)
Participating policyholders | (14) | (4) | - | - | - | (18)
Core income tax (expenses) recoveries | (100) | (104) | (112) | (26) | 27 | (315)
Core income tax (expenses) recoveries, CER adjustment(2) | (1) | - | (2) | - | - | (3)
Core income tax (expenses) recoveries, CER basis | $(101) | $(104) | $(114) | $(26) | $27 | $(318)

(1)This reconciliation has been updated to align with the presentation of GMT in 2025. See section A7 “Global Minimum Taxes (GMT)” for more information.
(2)The impact of updating foreign exchange rates to that which was used in 2Q25.
(3)Manulife Bank is part of Canada segment.

Manulife Financial Corporation – Second Quarter 2025 | 48

DOE Reconciliation – 2Q24(1)
($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 2Q24
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Net insurance service result reconciliation |  |  |  |  |  |
Total insurance service result – financial statements | $520 | $343 | $157 | $- | $17 | $1,037
Less: Insurance service result attributed to: |  |  |  |  |  |
Items excluded from core earnings | (13) | (5) | 43 | - | 1 | 26
NCI | 17 | - | - | - | - | 17
Participating policyholders | 47 | 22 | - | - | - | 69
Core net insurance service result | 469 | 326 | 114 | - | 16 | 925
Core net insurance service result, CER adjustment(2) | 13 | - | 2 | - | - | 15
Core net insurance service result, CER basis | $482 | $326 | $116 | $- | $16 | $940
Total investment result reconciliation |  |  |  |  |  |
Total investment result per financial statements | $271 | $161 | $6 | $(240) | $315 | $513
Less: Reclassify Manulife Bank(3) and Global WAM to their own DOE lines | - | 380 | - | (240) | - | 140
Add: Consolidation and other adjustments from Other DOE line | - | (1) | - | - | (154) | (155)
Less: Net investment result attributed to: |  |  |  |  |  |
Items excluded from core earnings | (59) | (385) | (405) | - | 65 | (784)
NCI | 23 | - | - | - | - | 23
Participating policyholders | (3) | 9 | - | - | - | 6
Core net investment result | 310 | 156 | 411 | - | 96 | 973
Core net investment result, CER adjustment(2) | 9 | - | 5 | - | - | 14
Core net investment result, CER basis | $319 | $156 | $416 | $- | $96 | $987
Manulife Bank and Global WAM by DOE line reconciliation |  |  |  |  |  |
Manulife Bank and Global WAM net income attributed to shareholders | $- | $48 | $- | $383 | $- | $431
Less: Manulife Bank and Global WAM attributed to: |  |  |  |  |  |
Items excluded from core earnings | - | (9) | - | (62) | - | (71)
Core earnings in Manulife Bank and Global WAM | - | 57 | - | 445 | - | 502
Core earnings in Manulife Bank and Global WAM, CER adjustment(2) | - | - | - | 3 | - | 3
Core earnings in Manulife Bank and Global WAM, CER basis | $- | $57 | $- | $448 | $- | $505
Other reconciliation |  |  |  |  |  |
Other revenue per financial statements | $63 | $73 | $27 | $1,809 | $(123) | $1,849
General expenses per financial statements | (79) | (155) | (32) | (828) | (131) | (1,225)
Commissions related to non-insurance contracts | (4) | (15) | 1 | (356) | 10 | (364)
Interest expenses per financial statements | (8) | (266) | (3) | (2) | (147) | (426)
Total financial statements values included in Other | (28) | (363) | (7) | 623 | (391) | (166)
Less: Reclassifications: |  |  |  |  |  |
Manulife Bank and Global WAM to their own DOE lines | - | (333) | - | 623 | - | 290
Consolidation and other adjustments to net investment result DOE line | - | - | - | - | (154) | (154)
Less: Other attributed to: |  |  |  |  |  |
Items excluded from core earnings | 50 | 2 | 8 | (1) | (7) | 52
NCI | - | - | - | 1 | - | 1
Participating policyholders | (2) | - | - | - | - | (2)
Add: Participating policyholders’ earnings transfer to shareholders | 8 | 2 | - | - | - | 10
Other core earnings | (68) | (30) | (15) | - | (230) | (343)
Other core earnings, CER adjustment(2) | (2) | - | (1) | - | - | (3)
Other core earnings, CER basis | $(70) | $(30) | $(16) | $- | $(230) | $(346)
Income tax (expenses) recoveries reconciliation |  |  |  |  |  |
Income tax (expenses) recoveries per financial statements | $(115) | $(39) | $(21) | $(32) | $(45) | $(252)
Less: Income tax (expenses) recoveries attributed to: |  |  |  |  |  |
Items excluded from core earnings | (12) | 74 | 74 | 27 | (81) | 82
NCI | (2) | - | - | - | - | (2)
Participating policyholders | (6) | (6) | - | - | - | (12)
Core income tax (expenses) recoveries | (95) | (107) | (95) | (59) | 36 | (320)
Core income tax (expenses) recoveries, CER adjustment(2) | (1) | - | (2) | - | - | (3)
Core income tax (expenses) recoveries, CER basis | $(96) | $(107) | $(97) | $(59) | $36 | $(323)

(1)This reconciliation has been updated to align with the presentation of GMT in 2025. See section A7 “Global Minimum Taxes (GMT)” for more information.
(2)The impact of updating foreign exchange rates to that which was used in 2Q25.
(3)Manulife Bank is part of Canada segment.

Manulife Financial Corporation – Second Quarter 2025 | 49

DOE Reconciliation – YTD 2025
($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| YTD 2025
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Net insurance service result reconciliation |  |  |  |  |  |
Total insurance service result - financial statements | $1,185 | $687 | $186 | $- | $(9) | $2,049
Less: Insurance service result attributed to: |  |  |  |  |  |
Items excluded from core earnings | (56) | (5) | 61 | - | - | -
NCI | 43 | - | - | - | - | 43
Participating policyholders | 127 | 39 | - | - | - | 166
Core net insurance service result | 1,071 | 653 | 125 | - | (9) | 1,840
Core net insurance service result, CER adjustment(1) | (12) | - | (4) | - | - | (16)
Core net insurance service result, CER basis | $1,059 | $653 | $121 | $- | $(9) | $1,824
Total investment result reconciliation |  |  |  |  |  |
Total investment result per financial statements | $1,029 | $731 | $(840) | $(480) | $462 | $902
Less: Reclassify Manulife Bank(2) and Global WAM to their own DOE lines | - | 644 | - | (480) | - | 164
Add: Consolidation and other adjustments from Other DOE line | 1 | 3 | 28 | - | (328) | (296)
Less: Net investment result attributed to: |  |  |  |  |  |
Items excluded from core earnings | 225 | (206) | (1,418) | - | (44) | (1,443)
NCI | 111 | - | - | - | (2) | 109
Participating policyholders | 32 | 12 | - | - | - | 44
Core net investment result | 662 | 284 | 606 | - | 180 | 1,732
Core net investment result, CER adjustment(1) | (7) | - | (13) | - | - | (20)
Core net investment result, CER basis | $655 | $284 | $593 | $- | $180 | $1,712
Manulife Bank and Global WAM by DOE line reconciliation |  |  |  |  |  |
Manulife Bank and Global WAM net income attributed to shareholders | $- | $103 | $- | $1,102 | $- | $1,205
Less: Manulife Bank and Global WAM attributed to: |  |  |  |  |  |
Items excluded from core earnings | - | - | - | 10 | - | 10
Core earnings in Manulife Bank and Global WAM | - | 103 | - | 1,092 | - | 1,195
Core earnings in Manulife Bank and Global WAM, CER adjustment(1) | - | - | - | (13) | - | (13)
Core earnings in Manulife Bank and Global WAM, CER basis | $- | $103 | $- | $1,079 | $- | $1,182
Other reconciliation |  |  |  |  |  |
Other revenue per financial statements | $(91) | $159 | $58 | $3,877 | $(166) | $3,837
General expenses per financial statements | (153) | (306) | (99) | (1,553) | (231) | (2,342)
Commissions related to non-insurance contracts | 5 | (36) | 3 | (739) | 18 | (749)
Interest expenses per financial statements | (13) | (404) | (8) | (2) | (310) | (737)
Total financial statements values included in Other | (252) | (587) | (46) | 1,583 | (689) | 9
Less: Reclassifications: |  |  |  |  |  |
Manulife Bank and Global WAM to their own DOE lines | - | (541) | - | 1,583 | - | 1,042
Consolidation and other adjustments to net investment result DOE line | 1 | 3 | 28 | (1) | (328) | (297)
Less: Other attributed to: |  |  |  |  |  |
Items excluded from core earnings | (114) | 5 | (19) | - | 68 | (60)
NCI | 2 | - | - | 1 | - | 3
Participating policyholders | (8) | - | - | - | - | (8)
Add: Participating policyholders’ earnings transfer to shareholders | 20 | 6 | - | - | - | 26
Other core earnings | (113) | (48) | (55) | - | (429) | (645)
Other core earnings, CER adjustment(1) | 1 | - | 1 | - | - | 2
Other core earnings, CER basis | $(112) | $(48) | $(54) | $- | $(429) | $(643)
Income tax (expenses) recoveries reconciliation |  |  |  |  |  |
Income tax (expenses) recoveries per financial statements | $(280) | $(174) | $167 | $(177) | $50 | $(414)
Less: Income tax (expenses) recoveries attributed to: |  |  |  |  |  |
Items excluded from core earnings | (26) | 25 | 288 | (2) | (11) | 274
NCI | (40) | - | - | - | - | (40)
Participating policyholders | (19) | - | - | - | - | (19)
Core income tax (expenses) recoveries | (195) | (199) | (121) | (175) | 61 | (629)
Core income tax (expenses) recoveries, CER adjustment(1) | 2 | - | 3 | 2 | - | 7
Core income tax (expenses) recoveries, CER basis | $(193) | $(199) | $(118) | $(173) | $61 | $(622)

(1)The impact of updating foreign exchange rates to that which was used in 2Q25.
(2)Manulife Bank is part of Canada segment.

Manulife Financial Corporation – Second Quarter 2025 | 50

DOE Reconciliation – YTD 2024(1)
($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| YTD 2024
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Net insurance service result reconciliation |  |  |  |  |  |
Total insurance service result - financial statements | $1,067 | $627 | $276 | $- | $45 | $2,015
Less: Insurance service result attributed to: |  |  |  |  |  |
Items excluded from core earnings | (2) | (8) | 45 | - | - | 35
NCI | 50 | - | - | - | - | 50
Participating policyholders | 95 | 46 | - | - | - | 141
Core net insurance service result | 924 | 589 | 231 | - | 45 | 1,789
Core net insurance service result, CER adjustment(2) | 26 | - | 5 | - | 1 | 32
Core net insurance service result, CER basis | $950 | $589 | $236 | $- | $46 | $1,821
Total investment result reconciliation |  |  |  |  |  |
Total investment result per financial statements | $325 | $614 | $(284) | $(470) | $676 | $861
Less: Reclassify Manulife Bank(3) and Global WAM to their own DOE lines | - | 776 | - | (470) | - | 306
Add: Consolidation and other adjustments from Other DOE line | - | (2) | - | - | (310) | (312)
Less: Net investment result attributed to: |  |  |  |  |  |
Items excluded from core earnings | (350) | (485) | (1,125) | - | 171 | (1,789)
NCI | 63 | - | - | - | - | 63
Participating policyholders | (6) | 16 | - | - | - | 10
Core net investment result | 618 | 305 | 841 | - | 195 | 1,959
Core net investment result, CER adjustment(2) | 20 | - | 15 | - | 1 | 36
Core net investment result, CER basis | $638 | $305 | $856 | $- | $196 | $1,995
Manulife Bank and Global WAM by DOE line reconciliation |  |  |  |  |  |
Manulife Bank and Global WAM net income attributed to shareholders | $- | $113 | $- | $809 | $- | $922
Less: Manulife Bank and Global WAM attributed to: |  |  |  |  |  |
Items excluded from core earnings | - | (5) | - | (51) | - | (56)
Core earnings in Manulife Bank and Global WAM | - | 118 | - | 860 | - | 978
Core earnings in Manulife Bank and Global WAM, CER adjustment(2) | - | - | - | 11 | - | 11
Core earnings in Manulife Bank and Global WAM, CER basis | $- | $118 | $- | $871 | $- | $989
Other reconciliation |  |  |  |  |  |
Other revenue per financial statements | $118 | $148 | $66 | $3,559 | $(234) | $3,657
General expenses per financial statements | (135) | (297) | (53) | (1,571) | (271) | (2,327)
Commissions related to non-insurance contracts | (4) | (33) | 4 | (705) | 18 | (720)
Interest expenses per financial statements | (14) | (537) | (7) | (4) | (288) | (850)
Total financial statements values included in Other | (35) | (719) | 10 | 1,279 | (775) | (240)
Less: Reclassifications: |  |  |  |  |  |
Manulife Bank and Global WAM to their own DOE lines | - | (664) | - | 1,279 | - | 615
Consolidation and other adjustments to net investment result DOE line | - | (1) | - | - | (310) | (311)
Less: Other attributed to: |  |  |  |  |  |
Items excluded from core earnings | 89 | (1) | 17 | (1) | 2 | 106
NCI | - | - | - | 1 | - | 1
Participating policyholders | (1) | - | - | - | - | (1)
Add: Participating policyholders’ earnings transfer to shareholders | 16 | 5 | - | - | - | 21
Other core earnings | (107) | (48) | (7) | - | (467) | (629)
Other core earnings, CER adjustment(2) | (4) | - | - | - | - | (4)
Other core earnings, CER basis | $(111) | $(48) | $(7) | $- | $(467) | $(633)
Income tax (expenses) recoveries reconciliation |  |  |  |  |  |
Income tax (expenses) recoveries per financial statements | $(265) | $(122) | $25 | $(93) | $(77) | $(532)
Less: Income tax (expenses) recoveries attributed to: |  |  |  |  |  |
Items excluded from core earnings | (34) | 85 | 223 | 32 | (141) | 165
NCI | (20) | - | - | - | - | (20)
Participating policyholders | (18) | (9) | - | - | - | (27)
Core income tax (expenses) recoveries | (193) | (198) | (198) | (125) | 64 | (650)
Core income tax (expenses) recoveries, CER adjustment(2) | (4) | - | (4) | (1) | (1) | (10)
Core income tax (expenses) recoveries, CER basis | $(197) | $(198) | $(202) | $(126) | $63 | $(660)

(1)This reconciliation has been updated to align with the presentation of GMT in 2025. See section A7 “Global Minimum Taxes (GMT)” for more information.
(2)The impact of updating foreign exchange rates to that which was used in 2Q25.
(3)Manulife Bank is part of Canada segment.

Manulife Financial Corporation – Second Quarter 2025 | 51

DOE Reconciliation – 2024(1)
($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| 2024
| Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Net insurance service result reconciliation |  |  |  |  |  |
Total insurance service result – financial statements | $2,160 | $1,320 | $357 | $- | $164 | $4,001
Less: Insurance service result attributed to: |  |  |  |  |  |
Items excluded from core earnings | (11) | (5) | (205) | - | 1 | (220)
NCI | 101 | - | - | - | - | 101
Participating policyholders | 201 | 71 | - | - | - | 272
Core net insurance service result | $1,869 | $1,254 | $562 | $- | $163 | $3,848
Core net insurance service result, CER adjustment(2) | 33 | - | 4 | - | 2 | 39
Core net insurance service result, CER basis | $1,902 | $1,254 | $566 | $- | $165 | $3,887
Total investment result reconciliation |  |  |  |  |  |
Total investment result per financial statements | $1,248 | $1,789 | $(218) | $(982) | $1,684 | $3,521
Less: Reclassify Manulife Bank(3) and Global WAM to their own DOE lines | - | 1,547 | - | (982) | - | 565
Add: Consolidation and other adjustments from Other DOE line | - | - | - | - | (656) | (656)
Less: Net investment result attributed to: |  |  |  |  |  |
Items excluded from core earnings | (212) | (397) | (1,809) | - | 612 | (1,806)
NCI | 202 | - | - | - | 4 | 206
Participating policyholders | 24 | 57 | - | - | - | 81
Core net investment result | 1,234 | 582 | 1,591 | - | 412 | 3,819
Core net investment result, CER adjustment(2) | 26 | - | 17 | - | - | 43
Core net investment result, CER basis | $1,260 | $582 | $1,608 | $- | $412 | $3,862
Manulife Bank and Global WAM by DOE line reconciliation |  |  |  |  |  |
Manulife Bank and Global WAM net income attributed to shareholders | $- | $235 | $- | $1,747 | $- | $1,982
Less: Manulife Bank and Global WAM attributed to: |  |  |  |  |  |
Items excluded from core earnings | - | - | - | (160) | - | (160)
Core earnings in Manulife Bank and Global WAM | - | 235 | - | 1,907 | - | 2,142
Core earnings in Manulife Bank and Global WAM, CER adjustment(2) | - | - | - | 13 | - | 13
Core earnings in Manulife Bank and Global WAM, CER basis | $- | $235 | $- | $1,920 | $- | $2,155
Other reconciliation |  |  |  |  |  |
Other revenue per financial statements | $155 | $294 | $137 | $7,439 | $(437) | $7,588
General expenses per financial statements | (330) | (613) | (139) | (3,249) | (528) | (4,859)
Commissions related to non-insurance contracts | (8) | (64) | 8 | (1,454) | 38 | (1,480)
Interest expenses per financial statements | (28) | (1,047) | (13) | (7) | (586) | (1,681)
Total financial statements values included in Other | (211) | (1,430) | (7) | 2,729 | (1,513) | (432)
Less: Reclassifications: |  |  |  |  |  |
Manulife Bank and Global WAM to their own DOE lines | - | (1,311) | - | 2,729 | - | 1,418
Consolidation and other adjustments to net investment result DOE line | - | (1) | - | - | (656) | (657)
Less: Other attributed to: |  |  |  |  |  |
Items excluded from core earnings | 80 | 2 | 48 | (2) | 54 | 182
NCI | (1) | - | - | 2 | - | 1
Participating policyholders | (7) | (5) | - | - | - | (12)
Add: Participating policyholders’ earnings transfer to shareholders | 36 | 11 | - | - | - | 47
Other core earnings | (247) | (104) | (55) | - | (911) | (1,317)
Other core earnings, CER adjustment(2) | (4) | - | - | - | - | (4)
Other core earnings, CER basis | $(251) | $(104) | $(55) | $- | $(911) | $(1,321)
Income tax (expenses) recoveries reconciliation |  |  |  |  |  |
Income tax (expenses) recoveries per financial statements | $(460) | $(353) | $3 | $(148) | $(254) | $(1,212)
Less: Income tax (expenses) recoveries attributed to: |  |  |  |  |  |
Items excluded from core earnings | 32 | 53 | 411 | 86 | (375) | 207
NCI | (61) | - | - | - | - | (61)
Participating policyholders | (41) | (7) | - | - | - | (48)
Core income tax (expenses) recoveries | (390) | (399) | (408) | (234) | 121 | (1,310)
Core income tax (expenses) recoveries, CER adjustment(2) | (6) | - | (4) | (2) | - | (12)
Core income tax (expenses) recoveries, CER basis | $(396) | $(399) | $(412) | $(236) | $121 | $(1,322)

(1)This reconciliation has been updated to align with the presentation of GMT in 2025. See section A7 “Global Minimum Taxes (GMT)” for more information.
(2)The impact of updating foreign exchange rates to that which was used in 2Q25.
(3)Manulife Bank is part of Canada segment.

Manulife Financial Corporation – Second Quarter 2025 | 52

General expenses, CER basis
($ millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| Quarterly Results | YTD Results | Full Year Results
| 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
General expenses | $1,140 | $1,202 | $1,328 | $1,204 | $1,225 | $2,342 | $2,327 | $4,859
CER adjustment(1) | - | (21) | (5) | 13 | 9 | (21) | 26 | 34
General expenses, CER basis | $1,140 | $1,181 | $1,323 | $1,217 | $1,234 | $2,321 | $2,353 | $4,893

(1)The impact of updating foreign exchange rates to that which was used in 2Q25.
The contractual service margin (“CSM”) is a liability that represents future unearned profits on insurance contracts written. It
is a component of insurance and reinsurance contract liabilities on the Statement of Financial Position and includes amounts
attributed to common shareholders, participating policyholders and NCI.
Our reporting of CSM is net of NCI. Changes in the CSM net of NCI are classified as organic and inorganic. CSM growth is
the percentage change in the CSM net of NCI compared with a prior period on a constant exchange rate basis.
Changes in CSM net of NCI that are classified as organic include the following impacts:
•Impact of new insurance business (“impact of new business” or “new business CSM”) is the impact from insurance
contracts initially recognized in the period and includes acquisition expense related gains (losses) which impact the CSM
in the period. It excludes the impact from entering into new in-force reinsurance contracts which would generally be
considered a management action.
•Expected movement related to finance income or expenses (“interest accretion”) includes interest accreted on the
CSM net of NCI during the period and the expected change on VFA contracts if returns are as expected.
•CSM recognized for service provided (“CSM amortization”) is the portion of the CSM net of NCI that is recognized in
net income for service provided in the period; and
•Insurance experience gains (losses) and other is primarily the change from experience variances that relate to future
periods. This includes persistency experience and changes in future period cash flows caused by other current period
experience.
Changes in CSM net of NCI that are classified as inorganic include the following impacts:
•Changes in actuarial methods and assumptions that adjust the CSM;
•Effect of movement in exchange rates over the reporting period;
•Impact of markets; and
•Reinsurance transactions, tax-related and other items that reflect the impact related to future cash flows from items
such as gains or losses on disposition of a business, the impact of enacted or substantively enacted income tax rate
changes, material one-time only adjustments that are exceptional in nature and other amounts not specifically captured in
the previous inorganic items.
Post-tax CSM is used in the definition of financial leverage ratio and consolidated capital and is calculated as the CSM
adjusted for the marginal income tax rate in the jurisdictions that report a CSM balance. Post-tax CSM net of NCI is used in
the adjusted book value per share calculation and is calculated as the CSM net of NCI adjusted for the marginal income tax
rate in the jurisdictions that report this balance.
New business CSM growth is the percentage change in the new business CSM net of NCI compared with a prior period on a
constant exchange rate basis.

Manulife Financial Corporation – Second Quarter 2025 | 53

CSM and post-tax CSM information
($ millions pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

As at | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024
CSM | $23,722 | $23,713 | $23,425 | $22,213 | $21,760
Less: CSM for NCI | 1,406 | 1,417 | 1,298 | 1,283 | 1,002
CSM, net of NCI | $22,316 | $22,296 | $22,127 | $20,930 | $20,758
CER adjustment(1) | - | (737) | (582) | 50 | 277
CSM, net of NCI, CER basis | $22,316 | $21,559 | $21,545 | $20,980 | $21,035
CSM by segment |  |  |  |  |
Asia | $15,786 | $15,904 | $15,540 | $14,715 | $13,456
Asia NCI | 1,406 | 1,417 | 1,298 | 1,283 | 1,002
Canada | 4,133 | 4,052 | 4,109 | 4,036 | 3,769
U.S. | 2,386 | 2,329 | 2,468 | 2,171 | 3,522
Corporate and Other | 11 | 11 | 10 | 8 | 11
CSM | $23,722 | $23,713 | $23,425 | $22,213 | $21,760
CSM, CER adjustment(1) |  |  |  |  |
Asia | $- | $(617) | $(453) | $30 | $288
Asia NCI | - | (55) | (40) | (14) | 17
Canada | - | - | - | - | -
U.S. | - | (121) | (128) | 20 | (12)
Corporate and Other | - | - | - | - | -
Total | $- | $(793) | $(621) | $36 | $293
CSM, CER basis |  |  |  |  |
Asia | $15,786 | $15,287 | $15,087 | $14,745 | $13,744
Asia NCI | 1,406 | 1,362 | 1,258 | 1,269 | 1,019
Canada | 4,133 | 4,052 | 4,109 | 4,036 | 3,769
U.S. | 2,386 | 2,208 | 2,340 | 2,191 | 3,510
Corporate and Other | 11 | 11 | 10 | 8 | 11
Total CSM, CER basis | $23,722 | $22,920 | $22,804 | $22,249 | $22,053
Post-tax CSM(2) |  |  |  |  |
CSM | $23,722 | $23,713 | $23,425 | $22,213 | $21,760
Marginal tax rate on CSM | (3,940) | (3,929) | (3,928) | (3,719) | (3,718)
Post-tax CSM | $19,782 | $19,784 | $19,497 | $18,494 | $18,042
CSM, net of NCI | $22,316 | $22,296 | $22,127 | $20,930 | $20,758
Marginal tax rate on CSM net of NCI | (3,789) | (3,772) | (3,774) | (3,566) | (3,608)
Post-tax CSM net of NCI | $18,527 | $18,524 | $18,353 | $17,364 | $17,150

(1)The impact of reflecting CSM and CSM net of NCI using the foreign exchange rates for the Statement of Financial Position in effect for 2Q25.
(2)2024 post-tax CSM and post-tax CSM, net of NCI have been updated to align with the presentation of GMT in 2025. See section A7 “Global Minimum Taxes
(GMT)” for more information.

Manulife Financial Corporation – Second Quarter 2025 | 54

New business CSM(1) detail, CER basis
($ millions pre-tax, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| Quarterly Results | YTD Results | Full Year Results
| 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
New business CSM |  |  |  |  |  |  |  |
Hong Kong | $286 | $316 | $299 | $254 | $200 | $602 | $368 | $921
Japan | 74 | 81 | 66 | 86 | 90 | 155 | 138 | 290
Asia Other(2) | 303 | 318 | 221 | 253 | 188 | 621 | 463 | 937
International High Net Worth |  |  |  |  |  |  |  | 187
Mainland China |  |  |  |  |  |  |  | 270
Singapore |  |  |  |  |  |  |  | 391
Vietnam |  |  |  |  |  |  |  | 17
Other Emerging Markets |  |  |  |  |  |  |  | 72
Asia | 663 | 715 | 586 | 593 | 478 | 1,378 | 969 | 2,148
Canada | 100 | 91 | 116 | 95 | 76 | 191 | 146 | 357
U.S. | 119 | 101 | 140 | 71 | 74 | 220 | 171 | 382
Total new business CSM | $882 | $907 | $842 | $759 | $628 | $1,789 | $1,286 | $2,887
New business CSM, CER adjustment(3) |  |  |  |  |  |  |  |
Hong Kong | $- | $(11) | $(3) | $4 | $1 | $(11) | $6 | $6
Japan | - | 2 | 3 | 5 | 9 | 2 | 11 | 19
Asia Other(2) | - | (6) | (1) | 5 | 6 | (6) | 15 | 20
International High Net Worth |  |  |  |  |  |  |  | 2
Mainland China |  |  |  |  |  |  |  | 2
Singapore |  |  |  |  |  |  |  | 15
Vietnam |  |  |  |  |  |  |  | (1)
Other Emerging Markets |  |  |  |  |  |  |  | 2
Asia | - | (15) | (1) | 14 | 16 | (15) | 32 | 45
Canada | - | - | - | - | - | - | - | (1)
U.S. | - | (4) | (1) | 1 | 1 | (4) | 4 | 3
Total new business CSM | $- | $(19) | $(2) | $15 | $17 | $(19) | $36 | $47
New business CSM, CER basis |  |  |  |  |  |  |  |
Hong Kong | $286 | $305 | $296 | $258 | $201 | $591 | $374 | $927
Japan | 74 | 83 | 69 | 91 | 99 | 157 | 149 | 309
Asia Other(2) | 303 | 312 | 220 | 258 | 194 | 615 | 478 | 957
International High Net Worth |  |  |  |  |  |  |  | 189
Mainland China |  |  |  |  |  |  |  | 272
Singapore |  |  |  |  |  |  |  | 406
Vietnam |  |  |  |  |  |  |  | 16
Other Emerging Markets |  |  |  |  |  |  |  | 74
Asia | 663 | 700 | 585 | 607 | 494 | 1,363 | 1,001 | 2,193
Canada | 100 | 91 | 116 | 95 | 76 | 191 | 146 | 356
U.S. | 119 | 97 | 139 | 72 | 75 | 216 | 175 | 385
Total new business CSM, CER basis | $882 | $888 | $840 | $774 | $645 | $1,770 | $1,322 | $2,934

(1)New business CSM is net of NCI.
(2)New business CSM for Asia Other is reported by country annually, on a full year basis. Other Emerging Markets within Asia Other include Indonesia, the
Philippines, Malaysia, Thailand, Cambodia and Myanmar.
(3)The impact of updating foreign exchange rates to that which was used in 2Q25.

Manulife Financial Corporation – Second Quarter 2025 | 55

Net income financial measures on a CER basis
($ Canadian millions, post-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| Quarterly Results | YTD Results | Full Year Results
| 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
Net income (loss) attributed to shareholders: |  |  |  |  |  |  |  |
Asia | $830 | $624 | $583 | $827 | $582 | $1,454 | $945 | $2,355
Canada | 390 | 222 | 439 | 430 | 79 | 612 | 352 | 1,221
U.S. | 36 | (569) | 103 | 5 | 135 | (533) | 27 | 135
Global WAM | 482 | 443 | 384 | 498 | 350 | 925 | 715 | 1,597
Corporate and Other | 51 | (235) | 129 | 79 | (104) | (184) | (131) | 77
Total net income (loss) attributed to shareholders | 1,789 | 485 | 1,638 | 1,839 | 1,042 | 2,274 | 1,908 | 5,385
Preferred share dividends and other equity distributions | (103) | (57) | (101) | (56) | (99) | (160) | (154) | (311)
Common shareholders’ net income (loss) | $1,686 | $428 | $1,537 | $1,783 | $943 | $2,114 | $1,754 | $5,074
CER adjustment(1) |  |  |  |  |  |  |  |
Asia | $- | $(33) | $(9) | $8 | $(6) | $(33) | $9 | $8
Canada | - | 1 | (4) | (1) | 2 | 1 | 6 | 2
U.S. | - | 19 | (3) | 2 | 1 | 19 | 9 | 8
Global WAM | - | (16) | (4) | 4 | 4 | (16) | 11 | 11
Corporate and Other | - | 5 | (1) | (3) | (3) | 5 | (7) | (12)
Total net income (loss) attributed to shareholders | - | (24) | (21) | 10 | (2) | (24) | 28 | 17
Preferred share dividends and other equity distributions | - | - | - | - | - | - | - | -
Common shareholders’ net income (loss) | $- | $(24) | $(21) | $10 | $(2) | $(24) | $28 | $17
Net income (loss) attributed to shareholders, CER basis |  |  |  |  |  |  |  |
Asia | $830 | $591 | $574 | $835 | $576 | $1,421 | $954 | $2,363
Canada | 390 | 223 | 435 | 429 | 81 | 613 | 358 | 1,223
U.S. | 36 | (550) | 100 | 7 | 136 | (514) | 36 | 143
Global WAM | 482 | 427 | 380 | 502 | 354 | 909 | 726 | 1,608
Corporate and Other | 51 | (230) | 128 | 76 | (107) | (179) | (138) | 65
Total net income (loss) attributed to shareholders, CER basis | 1,789 | 461 | 1,617 | 1,849 | 1,040 | 2,250 | 1,936 | 5,402
Preferred share dividends and other equity distributions, CER basis | (103) | (57) | (101) | (56) | (99) | (160) | (154) | (311)
Common shareholders’ net income (loss), CER basis | $1,686 | $404 | $1,516 | $1,793 | $941 | $2,090 | $1,782 | $5,091
Asia net income attributed to shareholders, U.S. dollars |  |  |  |  |  |  |  |
Asia net income (loss) attributed to shareholders, US $(2) | $600 | $435 | $417 | $606 | $424 | $1,035 | $694 | $1,717
CER adjustment, US $(1) | - | (8) | (2) | (3) | (7) | (8) | (5) | (10)
Asia net income (loss) attributed to shareholders, U.S. $, CER basis(1) | $600 | $427 | $415 | $603 | $417 | $1,027 | $689 | $1,707
Net income (loss) attributed to shareholders (pre-tax) |  |  |  |  |  |  |  |
Net income (loss) attributed to shareholders (post-tax) | $1,789 | $485 | $1,638 | $1,839 | $1,042 | $2,274 | $1,908 | $5,385
Tax on net income attributed to shareholders | 307 | 47 | 388 | 229 | 238 | 354 | 485 | 1,102
Net income (loss) attributed to shareholders (pre-tax) | 2,096 | 532 | 2,026 | 2,068 | 1,280 | 2,628 | 2,393 | 6,487
CER adjustment(1) | - | (3) | 1 | 23 | 24 | (3) | 31 | 56
Net income (loss) attributed to shareholders (pre-tax), CER basis | $2,096 | $529 | $2,027 | $2,091 | $1,304 | $2,625 | $2,424 | $6,543

(1)The impact of updating foreign exchange rates to that which was used in 2Q25.
(2)Asia net income attributed to shareholders (post-tax) in Canadian dollars is translated to U.S. dollars using the U.S. dollar Statement of Income rate for the
respective reporting period.

Manulife Financial Corporation – Second Quarter 2025 | 56

AUMA is a financial measure of the size of the Company. It is comprised of AUM and AUA. AUM includes assets of the
General Account, consisting of total invested assets and segregated funds net assets, and external client assets for which we
provide investment management services, consisting of mutual fund, institutional asset management and other fund net
assets. AUA are assets for which we provide administrative services only. Assets under management and administration is a
common industry metric for wealth and asset management businesses.
Our Global WAM business also manages assets on behalf of other segments of the Company. Global WAM-managed AUMA
is a financial measure equal to the sum of Global WAM’s AUMA and assets managed by Global WAM on behalf of other
segments. It is an important measure of the assets managed by Global WAM.
AUM and AUMA reconciliations
(Canadian $ in millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| CAD $ | US $(5)
| June 30, 2025 | June 30, 2025
As at | Asia | Canada | U.S. | Global WAM | Corporate and Other | Total | Asia | U.S.
Total invested assets |  |  |  |  |  |  |  |
Manulife Bank(1) | $- | $28,138 | $- | $- | $- | $28,138 | $- | $-
Derivative reclassification(2) | - | - | - | - | 4,531 | 4,531 | - | -
Other | 173,265 | 83,059 | 119,981 | 10,352 | 19,140 | 405,797 | 126,978 | 87,930
Total | 173,265 | 111,197 | 119,981 | 10,352 | 23,671 | 438,466 | 126,978 | 87,930
Segregated funds net assets |  |  |  |  |  |  |  |
Institutional | - | - | - | 3,045 | - | 3,045 | - | -
Other(3) | 29,239 | 37,567 | 74,322 | 292,416 | (31) | 433,513 | 21,433 | 54,468
Total | 29,239 | 37,567 | 74,322 | 295,461 | (31) | 436,558 | 21,433 | 54,468
AUM per financial statements | 202,504 | 148,764 | 194,303 | 305,813 | 23,640 | 875,024 | 148,411 | 142,398
Mutual funds | - | - | - | 331,290 | - | 331,290 | - | -
Institutional asset management(4) | - | - | - | 156,878 | - | 156,878 | - | -
Other funds | - | - | - | 19,697 | - | 19,697 | - | -
Total AUM | 202,504 | 148,764 | 194,303 | 813,678 | 23,640 | 1,382,889 | 148,411 | 142,398
Assets under administration | - | - | - | 225,360 | - | 225,360 | - | -
Total AUMA | $202,504 | $148,764 | $194,303 | $1,039,038 | $23,640 | $1,608,249 | $148,411 | $142,398
Total AUMA, US $(5) |  |  |  |  |  | $1,178,636 |  |
Total AUMA | $202,504 | $148,764 | $194,303 | $1,039,038 | $23,640 | $1,608,249 |  |
CER adjustment(6) | - | - | - | - | - | - |  |
Total AUMA, CER basis | $202,504 | $148,764 | $194,303 | $1,039,038 | $23,640 | $1,608,249 |  |
Global WAM Managed AUMA |  |  |  |  |  |  |
Global WAM AUMA |  |  |  | $1,039,038 |  |  |  |
AUM managed by Global WAM for Manulife’s other segments | 222,676 |  |  |  |
Total |  |  |  | $1,261,714 |  |  |  |

(1)Represents net lending assets.
(2)Corporate and Other amount is related to net derivative assets reclassified from total invested assets to other lines on the Statement of Financial Position.
(3)Corporate and Other segregated funds net assets represent elimination of amounts held by the Company.
(4)Institutional asset management excludes Institutional segregated funds net assets.
(5)US$ AUMA is calculated as total AUMA in Canadian $ divided by the US$ exchange rate in effect at the end of the quarter.
(6)The impact of updating foreign exchange rates to that which was used in 2Q25.

Manulife Financial Corporation – Second Quarter 2025 | 57

AUM and AUMA reconciliations
(Canadian $ in millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| CAD $ | US $(5)
| March 31, 2025 | March 31, 2025
As at | Asia | Canada | U.S. | Global WAM | Corporate and Other | Total | Asia | U.S.
Total invested assets |  |  |  |  |  |  |  |
Manulife Bank(1) | $- | $27,135 | $- | $- | $- | $27,135 | $- | $-
Derivative reclassification(2) | - | - | - | - | 4,541 | 4,541 | - | -
Other | 171,732 | 84,180 | 125,793 | 9,983 | 22,373 | 414,061 | 119,318 | 87,401
Total | 171,732 | 111,315 | 125,793 | 9,983 | 26,914 | 445,737 | 119,318 | 87,401
Segregated funds net assets |  |  |  |  |  |  |  |
Institutional | - | - | - | 3,199 | - | 3,199 | - | -
Other(3) | 28,560 | 37,373 | 75,103 | 284,407 | (32) | 425,411 | 19,839 | 52,182
Total | 28,560 | 37,373 | 75,103 | 287,606 | (32) | 428,610 | 19,839 | 52,182
AUM per financial statements | 200,292 | 148,688 | 200,896 | 297,589 | 26,882 | 874,347 | 139,157 | 139,583
Mutual funds | - | - | - | 334,612 | - | 334,612 | - | -
Institutional asset management(4) | - | - | - | 156,560 | - | 156,560 | - | -
Other funds | - | - | - | 19,057 | - | 19,057 | - | -
Total AUM | 200,292 | 148,688 | 200,896 | 807,818 | 26,882 | 1,384,576 | 139,157 | 139,583
Assets under administration | - | - | - | 218,501 | - | 218,501 | - | -
Total AUMA | $200,292 | $148,688 | $200,896 | $1,026,319 | $26,882 | $1,603,077 | $139,157 | $139,583
Total AUMA, US $(5) |  |  |  |  |  | $1,113,827 |  |
Total AUMA | $200,292 | $148,688 | $200,896 | $1,026,319 | $26,882 | $1,603,077 |  |
CER adjustment(6) | (7,285) | - | (10,381) | (38,166) | - | (55,832) |  |
Total AUMA, CER basis | $193,007 | $148,688 | $190,515 | $988,153 | $26,882 | $1,547,245 |  |
Global WAM Managed AUMA |  |  |  |  |  |  |
Global WAM AUMA |  |  |  | $1,026,319 |  |  |  |
AUM managed by Global WAM for Manulife’s other segments | 225,108 |  |  |  |
Total |  |  |  | $1,251,427 |  |  |  |

Note: For footnotes (1) to (6), refer to the “AUM and AUMA reconciliation” table as at June 30, 2025 above.

Manulife Financial Corporation – Second Quarter 2025 | 58

AUM and AUMA reconciliations
(Canadian $ in millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| CAD $ | US $(5)
| December 31, 2024 | December 31, 2024
As at | Asia | Canada | U.S. | Global WAM | Corporate and Other | Total | Asia | U.S.
Total invested assets |  |  |  |  |  |  |  |
Manulife Bank(1) | $- | $26,718 | $- | $- | $- | $26,718 | $- | $-
Derivative reclassification(2) | - | - | - | - | 5,600 | 5,600 | - | -
Other | 166,590 | 80,423 | 136,833 | 9,743 | 16,590 | 410,179 | 115,843 | 95,142
Total | 166,590 | 107,141 | 136,833 | 9,743 | 22,190 | 442,497 | 115,843 | 95,142
Segregated funds net assets |  |  |  |  |  |  |  |
Institutional | - | - | - | 3,393 | - | 3,393 | - | -
Other(3) | 28,622 | 38,099 | 77,440 | 288,467 | (33) | 432,595 | 19,904 | 53,845
Total | 28,622 | 38,099 | 77,440 | 291,860 | (33) | 435,988 | 19,904 | 53,845
AUM per financial statements | 195,212 | 145,240 | 214,273 | 301,603 | 22,157 | 878,485 | 135,747 | 148,987
Mutual funds | - | - | - | 333,598 | - | 333,598 | - | -
Institutional asset management(4) | - | - | - | 154,096 | - | 154,096 | - | -
Other funds | - | - | - | 19,174 | - | 19,174 | - | -
Total AUM | 195,212 | 145,240 | 214,273 | 808,471 | 22,157 | 1,385,353 | 135,747 | 148,987
Assets under administration | - | - | - | 222,614 | - | 222,614 | - | -
Total AUMA | $195,212 | $145,240 | $214,273 | $1,031,085 | $22,157 | $1,607,967 | $135,747 | $148,987
Total AUMA, US $(5) |  |  |  |  |  | $1,118,042 |  |
Total AUMA | $195,212 | $145,240 | $214,273 | $1,031,085 | $22,157 | $1,607,967 |  |
CER adjustment(6) | (5,508) | - | (10,917) | (36,769) | - | (53,194) |  |
Total AUMA, CER basis | $189,704 | $145,240 | $203,356 | $994,316 | $22,157 | $1,554,773 |  |
Global WAM Managed AUMA |  |  |  |  |  |  |
Global WAM AUMA |  |  |  | $1,031,085 |  |  |  |
AUM managed by Global WAM for Manulife’s other segments | 226,752 |  |  |  |
Total |  |  |  | $1,257,837 |  |  |  |

Note: For footnotes (1) to (6), refer to the “AUM and AUMA reconciliation” table as at June 30, 2025 above.

Manulife Financial Corporation – Second Quarter 2025 | 59

AUM and AUMA reconciliations
(Canadian $ in millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| CAD $ | US $(5)
| September 30, 2024 | September 30, 2024
As at | Asia | Canada | U.S. | Global WAM | Corporate and Other | Total | Asia | U.S.
Total invested assets |  |  |  |  |  |  |  |
Manulife Bank(1) | $- | $26,371 | $- | $- | $- | $26,371 | $- | $-
Derivative reclassification(2) | - | - | - | - | 2,420 | 2,420 | - | -
Other | 160,377 | 81,874 | 134,164 | 9,464 | 14,482 | 400,361 | 118,748 | 99,311
Total | 160,377 | 108,245 | 134,164 | 9,464 | 16,902 | 429,152 | 118,748 | 99,311
Segregated funds net assets |  |  |  |  |  |  |  |
Institutional | - | - | - | 3,289 | - | 3,289 | - | -
Other(3) | 28,163 | 37,902 | 74,916 | 278,759 | (50) | 419,690 | 20,852 | 55,454
Total | 28,163 | 37,902 | 74,916 | 282,048 | (50) | 422,979 | 20,852 | 55,454
AUM per financial statements | 188,540 | 146,147 | 209,080 | 291,512 | 16,852 | 852,131 | 139,600 | 154,765
Mutual funds | - | - | - | 321,210 | - | 321,210 | - | -
Institutional asset management(4) | - | - | - | 148,386 | - | 148,386 | - | -
Other funds | - | - | - | 18,131 | - | 18,131 | - | -
Total AUM | 188,540 | 146,147 | 209,080 | 779,239 | 16,852 | 1,339,858 | 139,600 | 154,765
Assets under administration | - | - | - | 211,617 | - | 211,617 | - | -
Total AUMA | $188,540 | $146,147 | $209,080 | $990,856 | $16,852 | $1,551,475 | $139,600 | $154,765
Total AUMA, US $(5) |  |  |  |  |  | $1,148,433 |  |
Total AUMA | $188,540 | $146,147 | $209,080 | $990,856 | $16,852 | $1,551,475 |  |
CER adjustment(6) | 573 | - | 2,049 | 6,400 | - | 9,022 |  |
Total AUMA, CER basis | $189,113 | $146,147 | $211,129 | $997,256 | $16,852 | $1,560,497 |  |
Global WAM Managed AUMA |  |  |  |  |  |  |
Global WAM AUMA |  |  |  | $990,856 |  |  |  |
AUM managed by Global WAM for Manulife’s other segments | 220,309 |  |  |  |
Total |  |  |  | $1,211,165 |  |  |  |

Note: For footnotes (1) to (6), refer to the “AUM and AUMA reconciliation” table as at June 30, 2025 above.

Manulife Financial Corporation – Second Quarter 2025 | 60

AUM and AUMA reconciliations
(Canadian $ in millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| CAD $ | US $(5)
| June 30, 2024 | June 30, 2024
As at | Asia | Canada | U.S. | Global WAM | Corporate and Other | Total | Asia | U.S.
Total invested assets |  |  |  |  |  |  |  |
Manulife Bank(1) | $- | $26,045 | $- | $- | $- | $26,045 | $- | $-
Derivative reclassification(2) | - | - | - | - | 5,546 | 5,546 | - | -
Other | 148,153 | 77,422 | 130,453 | 8,989 | 14,011 | 379,028 | 108,216 | 95,335
Total | 148,153 | 103,467 | 130,453 | 8,989 | 19,557 | 410,619 | 108,216 | 95,335
Segregated funds net assets |  |  |  |  |  |  |  |
Institutional | - | - | - | 3,380 | - | 3,380 | - | -
Other(3) | 26,468 | 36,595 | 72,950 | 266,759 | (46) | 402,726 | 19,333 | 53,313
Total | 26,468 | 36,595 | 72,950 | 270,139 | (46) | 406,106 | 19,333 | 53,313
AUM per financial statements | 174,621 | 140,062 | 203,403 | 279,128 | 19,511 | 816,725 | 127,549 | 148,648
Mutual funds | - | - | - | 304,214 | - | 304,214 | - | -
Institutional asset management(4) | - | - | - | 142,314 | - | 142,314 | - | -
Other funds | - | - | - | 17,202 | - | 17,202 | - | -
Total AUM | 174,621 | 140,062 | 203,403 | 742,858 | 19,511 | 1,280,455 | 127,549 | 148,648
Assets under administration | - | - | - | 201,064 | - | 201,064 | - | -
Total AUMA | $174,621 | $140,062 | $203,403 | $943,922 | $19,511 | $1,481,519 | $127,549 | $148,648
Total AUMA, US $(5) |  |  |  |  |  | $1,082,705 |  |
Total AUMA | $174,621 | $140,062 | $203,403 | $943,922 | $19,511 | $1,481,519 |  |
CER adjustment(6) | 3,442 | - | (574) | 1,172 | - | 4,040 |  |
Total AUMA, CER basis | $178,063 | $140,062 | $202,829 | $945,094 | $19,511 | $1,485,559 |  |
Global WAM Managed AUMA |  |  |  |  |  |  |
Global WAM AUMA |  |  |  | $943,922 |  |  |  |
AUM managed by Global WAM for Manulife’s other segments | 211,773 |  |  |  |
Total |  |  |  | $1,155,695 |  |  |  |

Note: For footnotes (1) to (6), refer to the “AUM and AUMA reconciliation” table as at June 30, 2025 above.

Manulife Financial Corporation – Second Quarter 2025 | 61

Global WAM AUMA and Managed AUMA by business line and geographic source
($ millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

As at | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sept 30, 2024 | Jun 30, 2024
Global WAM AUMA by business line |  |  |  |  |
Retirement | $536,639 | $522,751 | $521,979 | $501,173 | $477,740
Retail | 338,616 | 339,653 | 348,938 | 335,570 | 318,269
Institutional asset management | 163,783 | 163,915 | 160,168 | 154,113 | 147,913
Total | $1,039,038 | $1,026,319 | $1,031,085 | $990,856 | $943,922
Global WAM AUMA by business line, CER basis(1) |  |  |  |  |
Retirement | $536,639 | $501,349 | $500,835 | $504,793 | $476,648
Retail | 338,616 | 328,337 | 337,819 | 337,659 | 319,042
Institutional asset management | 163,783 | 158,467 | 155,662 | 154,804 | 149,404
Total | $1,039,038 | $988,153 | $994,316 | $997,256 | $945,094
Global WAM AUMA by geographic source |  |  |  |  |
Asia | $143,573 | $144,660 | $141,098 | $137,040 | $128,791
Canada | 266,913 | 259,446 | 260,651 | 255,281 | 242,781
U.S. | 628,552 | 622,213 | 629,336 | 598,535 | 572,350
Total | $1,039,038 | $1,026,319 | $1,031,085 | $990,856 | $943,922
Global WAM AUMA by geographic source, CER basis(1) |  |  |  |  |
Asia | $143,573 | $138,399 | $136,528 | $137,423 | $131,540
Canada | 266,913 | 259,446 | 260,651 | 255,281 | 242,781
U.S. | 628,552 | 590,308 | 597,137 | 604,552 | 570,773
Total | $1,039,038 | $988,153 | $994,316 | $997,256 | $945,094
Global WAM Managed AUMA by business line |  |  |  |  |
Retirement | $536,639 | $522,751 | $521,979 | $501,173 | $477,740
Retail | 419,133 | 419,844 | 431,047 | 416,425 | 396,457
Institutional asset management | 305,942 | 308,832 | 304,811 | 293,567 | 281,498
Total | $1,261,714 | $1,251,427 | $1,257,837 | $1,211,165 | $1,155,695
Global WAM Managed AUMA by business line, CER basis(1) |  |  |  |  |
Retirement | $536,639 | $501,349 | $500,835 | $504,793 | $476,648
Retail | 419,133 | 400,011 | 417,282 | 418,982 | 397,037
Institutional asset management | 305,942 | 296,999 | 294,007 | 295,441 | 282,671
Total | $1,261,714 | $1,198,359 | $1,212,124 | $1,219,216 | $1,156,356
Global WAM Managed AUMA by geographic source |  |  |  |  |
Asia | $227,797 | $228,948 | $225,325 | $219,344 | $205,776
Canada | 317,864 | 311,252 | 312,816 | 307,051 | 292,698
U.S. | 716,053 | 711,227 | 719,696 | 684,770 | 657,221
Total | $1,261,714 | $1,251,427 | $1,257,837 | $1,211,165 | $1,155,695
Global WAM Managed AUMA by geographic source, CER basis(1) |  |  |  |
Asia | $227,797 | $218,297 | $216,441 | $220,558 | $208,296
Canada | 317,864 | 311,252 | 312,816 | 307,051 | 292,698
U.S. | 716,053 | 668,810 | 682,867 | 691,607 | 655,362
Total | $1,261,714 | $1,198,359 | $1,212,124 | $1,219,216 | $1,156,356

(1)AUMA adjusted to reflect the foreign exchange rates for the Statement of Financial Position in effect for 2Q25.
Average assets under management and administration (“average AUMA”) is the average of Global WAM’s AUMA during
the reporting period. It is a measure used in analyzing and explaining fee income and earnings of our Global WAM segment. It
is calculated as the average of the opening balance of AUMA and the ending balance of AUMA using daily balances where
available and month-end or quarter-end averages when daily averages are unavailable. Similarly, Global WAM average
managed AUMA and average AUA are the average of Global WAM’s managed AUMA and AUA, respectively, and are
calculated in a manner consistent with average AUMA.

Manulife Financial Corporation – Second Quarter 2025 | 62

Manulife Bank net lending assets is a financial measure equal to the sum of Manulife Bank’s loans and mortgages, net of
allowances. Manulife Bank average net lending assets is a financial measure which is calculated as the quarter-end
average of the opening and the ending balance of net lending assets. Both of these financial measures are a measure of the
size of Manulife Bank’s portfolio of loans and mortgages and are used to analyze and explain its earnings.

As at | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024
($ millions)
Mortgages | $55,479 | $55,105 | $54,447 | $54,083 | $53,031
Less: mortgages not held by Manulife Bank | 29,847 | 30,352 | 30,039 | 29,995 | 29,324
Total mortgages held by Manulife Bank | 25,632 | 24,753 | 24,408 | 24,088 | 23,707
Loans to Bank clients | 2,506 | 2,382 | 2,310 | 2,283 | 2,338
Manulife Bank net lending assets | $28,138 | $27,135 | $26,718 | $26,371 | $26,045
Manulife Bank average net lending assets |  |  |  |  |
Beginning of period | $27,135 | $26,718 | $26,371 | $26,045 | $25,420
End of period | 28,138 | 27,135 | 26,718 | 26,371 | 26,045
Manulife Bank average net lending assets by quarter | $27,637 | $26,927 | $26,545 | $26,208 | $25,733
Manulife Bank average net lending assets – Year-to-date | $27,428 |  |  |  | $25,683
Manulife Bank average net lending assets – full year |  |  | $26,020 |  |

Financial leverage ratio is calculated as the sum of long-term debt, capital instruments and preferred shares and other equity
instruments divided by the sum of long-term debt, capital instruments, equity and post-tax CSM.
Adjusted book value is the sum of common shareholders’ equity and post-tax CSM net of NCI. It is an important measure for
monitoring growth and measuring insurance businesses’ value. Adjusted book value per common share is calculated by
dividing adjusted book value by the number of common shares outstanding at the end of the period.

As at | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024
($ millions)
Common shareholders’ equity | $42,420 | $44,475 | $44,312 | $42,913 | $42,305
Post-tax CSM, net of NCI(1) | 18,527 | 18,524 | 18,353 | 17,364 | 17,150
Adjusted book value | $60,947 | $62,999 | $62,665 | $60,277 | $59,455

(1)2024 quarterly post-tax CSM, net of NCI has been updated to align with the presentation of GMT in 2025. See section A7 “Global Minimum Taxes (GMT)” for
more information.
Consolidated capital serves as a foundation of our capital management activities at the MFC level. Consolidated capital is
calculated as the sum of: (i) total equity excluding accumulated other comprehensive income (“AOCI”) on cash flow hedges; (ii)
post-tax CSM; and (iii) certain other capital instruments that qualify as regulatory capital. For regulatory reporting purposes
under the LICAT framework, the numbers are further adjusted for various additions or deductions to capital as mandated by
the guidelines defined by OSFI.

As at | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024
($ millions)
Total equity | $51,253 | $53,164 | $52,960 | $51,639 | $50,756
Less: AOCI gain / (loss) on cash flow hedges | 68 | 89 | 119 | 70 | 95
Total equity excluding AOCI on cash flow hedges | 51,185 | 53,075 | 52,841 | 51,569 | 50,661
Post-tax CSM(1) | 19,782 | 19,784 | 19,497 | 18,494 | 18,042
Qualifying capital instruments | 6,985 | 7,542 | 7,532 | 6,997 | 7,714
Consolidated capital | $77,952 | $80,401 | $79,870 | $77,060 | $76,417

(1)2024 quarterly post-tax CSM has been updated to align with the presentation of GMT in 2025. See section A7 “Global Minimum Taxes (GMT)” for more
information.
Core EBITDA is a financial measure which Manulife uses to better understand the long-term earnings capacity and valuation
of our Global WAM business on a basis more comparable to how the profitability of global asset managers is generally
measured. Core EBITDA presents core earnings before the impact of interest, taxes, depreciation, and amortization. Core
EBITDA excludes certain acquisition expenses related to insurance contracts in our retirement businesses which are deferred
and amortized over the expected lifetime of the customer relationship. Core EBITDA was selected as a key performance
indicator for our Global WAM business, as EBITDA is widely used among asset management peers, and core earnings is a
primary profitability metric for the Company overall.

Manulife Financial Corporation – Second Quarter 2025 | 63

Reconciliation of Global WAM core earnings to core EBITDA and Global WAM core EBITDA by business line and
geographic source
($ millions, pre-tax and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated)

| Quarterly Results | YTD Results | Full Year Results
| 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
Global WAM core earnings (post-tax) | $463 | $454 | $459 | $479 | $386 | $917 | $735 | $1,673
Add back taxes, acquisition costs, other expenses and deferred sales commissions |  |  |  |  |  |  |  |
Core income tax (expenses) recoveries (see above) | 89 | 86 | 83 | 26 | 59 | 175 | 125 | 234
Amortization of deferred acquisition costs and other depreciation | 51 | 46 | 49 | 48 | 49 | 97 | 91 | 188
Amortization of deferred sales commissions | 20 | 22 | 20 | 19 | 19 | 42 | 39 | 78
Core EBITDA | $623 | $608 | $611 | $572 | $513 | $1,231 | $990 | $2,173
CER adjustment(1) | - | (15) | (5) | 7 | 3 | (15) | 12 | 14
Core EBITDA, CER basis | $623 | $593 | $606 | $579 | $516 | $1,216 | $1,002 | $2,187
Core EBITDA by business line |  |  |  |  |  |  |  |
Retirement | $358 | $351 | $330 | $320 | $284 | $709 | $549 | $1,199
Retail | 191 | 190 | 214 | 200 | 181 | 381 | 359 | 773
Institutional asset management | 74 | 67 | 67 | 52 | 48 | 141 | 82 | 201
Total | $623 | $608 | $611 | $572 | $513 | $1,231 | $990 | $2,173
Core EBITDA by geographic source |  |  |  |  |  |  |  |
Asia | $170 | $186 | $167 | $157 | $144 | $356 | $283 | $607
Canada | 161 | 164 | 160 | 157 | 133 | 325 | 272 | 589
U.S. | 292 | 258 | 284 | 258 | 236 | 550 | 435 | 977
Total | $623 | $608 | $611 | $572 | $513 | $1,231 | $990 | $2,173
Core EBITDA by business line, CER basis(2) |  |  |  |  |  |  |  |
Retirement | $358 | $342 | $328 | $323 | $286 | $700 | $556 | $1,207
Retail | 191 | 186 | 212 | 202 | 183 | 377 | 363 | 778
Institutional asset management | 74 | 65 | 66 | 54 | 47 | 139 | 83 | 202
Total, CER basis | $623 | $593 | $606 | $579 | $516 | $1,216 | $1,002 | $2,187
Core EBITDA by geographic source, CER basis(2) |  |  |  |  |  |  |  |
Asia | $170 | $180 | $165 | $160 | $144 | $350 | $287 | $612
Canada | 161 | 164 | 160 | 157 | 133 | 325 | 272 | 589
U.S. | 292 | 249 | 281 | 262 | 239 | 541 | 443 | 986
Total, CER basis | $623 | $593 | $606 | $579 | $516 | $1,216 | $1,002 | $2,187

(1)The impact of updating foreign exchange rates to that which was used in 2Q25.
(2)Core EBITDA adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.
Core EBITDA margin is a financial measure which Manulife uses to better understand the long-term profitability of our Global
WAM business on a more comparable basis to how profitability of global asset managers are measured. Core EBITDA margin
presents core earnings before the impact of interest, taxes, depreciation, and amortization divided by core revenue from these
businesses. Core revenue is used to calculate our core EBITDA margin, and is equal to the sum of pre-tax other revenue and
investment income in Global WAM included in core EBITDA, and it excludes such items as revenue related to integration and
acquisitions and market experience gains (losses). Core EBITDA margin was selected as a key performance indicator for our
Global WAM business, as EBITDA margin is widely used among asset management peers, and core earnings is a primary
profitability metric for the Company overall.

Manulife Financial Corporation – Second Quarter 2025 | 64

| Quarterly Results | YTD Results | Full Year Results
($ millions, unless otherwise stated) | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
Core EBITDA margin |  |  |  |  |  |  |  |
Core EBITDA | $623 | $608 | $611 | $572 | $513 | $1,231 | $990 | $2,173
Core revenue | $2,069 | $2,140 | $2,140 | $2,055 | $1,948 | $4,209 | $3,821 | $8,016
Core EBITDA margin | 30.1% | 28.4% | 28.6% | 27.8% | 26.3% | 29.2% | 25.9% | 27.1%
Global WAM core revenue |  |  |  |  |  |  |  |
Other revenue per financial statements | $1,851 | $1,986 | $2,003 | $1,928 | $1,849 | $3,837 | $3,657 | $7,588
Less: Other revenue in segments other than Global WAM | (48) | 11 | (2) | 53 | 40 | (37) | 98 | 149
Other revenue in Global WAM (fee income) | $1,899 | $1,975 | $2,005 | $1,875 | $1,809 | $3,874 | $3,559 | $7,439
Investment income per financial statements | $4,740 | $4,234 | $5,250 | $4,487 | $4,261 | $8,974 | $8,512 | $18,249
Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities per financial statements | 2,377 | (992) | (622) | 1,730 | 564 | 1,385 | 1,102 | 2,210
Total investment income | 7,117 | 3,242 | 4,628 | 6,217 | 4,825 | 10,359 | 9,614 | 20,459
Less: Investment income in segments other than Global WAM | 6,924 | 3,089 | 4,550 | 5,991 | 4,687 | 10,013 | 9,336 | 19,877
Investment income in Global WAM | $193 | $153 | $78 | $226 | $138 | $346 | $278 | $582
Total other revenue and investment income in Global WAM | $2,092 | $2,128 | $2,083 | $2,101 | $1,947 | $4,220 | $3,837 | $8,021
Less: Total revenue reported in items excluded from core earnings |  |  |  |  |  |  |  |
Market experience gains (losses) | 20 | (14) | (28) | 33 | (9) | 6 | (1) | 4
Revenue related to integration and acquisitions | 3 | 2 | (29) | 13 | 8 | 5 | 17 | 1
Global WAM core revenue | $2,069 | $2,140 | $2,140 | $2,055 | $1,948 | $4,209 | $3,821 | $8,016

Core expenses is used to calculate our expense efficiency ratio and is equal to total expenses that are included in core
earnings and excludes such items as material legal provisions for settlements, restructuring charges and expenses related to
integration and acquisitions. Total expenses include the following amounts from our financial statements:
1.General expenses that flow directly through income;
2.Directly attributable maintenance expenses, which are reported in insurance service expenses and flow directly through
income; and
3.Directly attributable acquisition expenses for contracts measured using the PAA method and for products without a CSM,
both of which are reported in insurance service expenses, and flow directly through income.

| Quarterly Results | YTD Results | Full Year Results
($ millions, and based on actual foreign exchange rates in effect in the applicable reporting period, unless otherwise stated) | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
Core expenses |  |  |  |  |  |  |  |
General expenses – Statements of Income | $1,140 | $1,202 | $1,328 | $1,204 | $1,225 | $2,342 | $2,327 | $4,859
Directly attributable acquisition expense for contracts measured using the PAA method and products without a CSM(1) | 40 | 42 | 43 | 36 | 39 | 82 | 77 | 156
Directly attributable maintenance expense(1) | 514 | 532 | 517 | 509 | 509 | 1,046 | 1,048 | 2,074
Total expenses | 1,694 | 1,776 | 1,888 | 1,749 | 1,773 | 3,470 | 3,452 | 7,089
Less: General expenses included in items excluded from core earnings |  |  |  |  |  |  |  |
Restructuring charge | - | - | 67 | 25 | - | - | - | 92
Integration and acquisition | - | - | - | - | 57 | - | 57 | 57
Legal provisions and Other expenses | 5 | - | 24 | 8 | 3 | 5 | 9 | 41
Total | 5 | - | 91 | 33 | 60 | 5 | 66 | 190
Core expenses | $1,689 | $1,776 | $1,797 | $1,716 | $1,713 | $3,465 | $3,386 | $6,899
CER adjustment(2) | - | (29) | (5) | 15 | 19 | (29) | 47 | 58
Core expenses, CER basis | $1,689 | $1,747 | $1,792 | $1,731 | $1,732 | $3,436 | $3,433 | $6,957
Total expenses | $1,694 | $1,776 | $1,888 | $1,749 | $1,773 | $3,470 | $3,452 | $7,089
CER adjustment(2) | - | (30) | (5) | 15 | 20 | (30) | 48 | 58
Total expenses, CER basis | $1,694 | $1,746 | $1,883 | $1,764 | $1,793 | $3,440 | $3,500 | $7,147

(1)Expenses are components of insurance service expenses on the Statements of Income that flow directly through income.
(2)The impact of updating foreign exchange rates to that which was used in 2Q25.

Manulife Financial Corporation – Second Quarter 2025 | 65

Expense efficiency ratio is a financial measure which Manulife uses to measure progress towards our target to be more
efficient. It is defined as core expenses divided by the sum of core earnings before income taxes (“pre-tax core earnings”) and
core expenses.
Net annualized fee income yield on average AUMA (“Net fee income yield”) is a financial measure that represents the net
annualized fee income from Global WAM channels over average AUMA. This measure provides information on Global WAM’s
adjusted return generated from managing AUMA.
Net annualized fee income is a financial measure that represents Global WAM income before income taxes, adjusted to
exclude items unrelated to net fee income, including general expenses, investment income, non-AUMA related net benefits
and claims, and net premium taxes. It also excludes the components of Global WAM net fee income from managing assets on
behalf of other segments. This measure is annualized based on the number of days in the year divided by the number of days
in the reporting period.
Reconciliation of income before income taxes to net fee income yield

| Quarterly Results | YTD Results | Full Year Results
($ millions, unless otherwise stated) | 2Q25 | 1Q25 | 4Q24 | 3Q24 | 2Q24 | 2025 | 2024 | 2024
Income before income taxes | $2,261 | $699 | $2,113 | $2,341 | $1,384 | $2,960 | $2,636 | $7,090
Less: Income before income taxes for segments other than Global WAM | 1,686 | 171 | 1,694 | 1,822 | 1,001 | 1,857 | 1,827 | 5,343
Global WAM income before income taxes | 575 | 528 | 419 | 519 | 383 | 1,103 | 809 | 1,747
Items unrelated to net fee income | 667 | 739 | 882 | 677 | 771 | 1,406 | 1,436 | 2,995
Global WAM net fee income | 1,242 | 1,267 | 1,301 | 1,196 | 1,154 | 2,509 | 2,245 | 4,742
Less: Net fee income from other segments | 171 | 170 | 181 | 169 | 169 | 341 | 324 | 674
Global WAM net fee income excluding net fee income from other segments | 1,071 | 1,097 | 1,120 | 1,027 | 985 | 2,168 | 1,921 | 4,068
Net annualized fee income | $4,297 | $4,451 | $4,455 | $4,084 | $3,963 | $4,373 | $3,864 | $4,068
Average Assets under Management and Administration | $1,005,290 | $1,041,116 | $1,015,454 | $963,003 | $933,061 | $1,022,398 | $916,730 | $946,087
Net fee income yield (bps) | 42.7 | 42.7 | 43.9 | 42.4 | 42.5 | 42.7 | 42.2 | 43.0

New business value (“NBV”) is calculated as the present value of shareholders’ interests in expected future distributable
earnings, after the cost of capital calculated under the LICAT framework in Canada and the International High Net Worth
business, and the local capital requirements in Asia and the U.S., on actual new business sold in the period using assumptions
with respect to future experience. NBV excludes businesses with immaterial insurance risks, such as the Company’s Global
WAM, Manulife Bank and the P&C Reinsurance businesses. NBV is a useful metric to evaluate the value created by the
Company’s new business franchise.
New business value margin (“NBV margin”) is calculated as NBV divided by APE sales excluding NCI. APE sales are
calculated as 100% of regular premiums and deposits sales and 10% of single premiums and deposits sales. NBV margin is a
useful metric to help understand the profitability of our new business.
Sales are measured according to product type:
For individual insurance, sales include 100% of new annualized premiums and 10% of both excess and single premiums. For
individual insurance, new annualized premiums reflect the annualized premium expected in the first year of a policy that
requires premium payments for more than one year. Single premium is the lump sum premium from the sale of a single
premium product, e.g. travel insurance. Sales are reported gross before the impact of reinsurance.
For group insurance, sales include new annualized premiums and administrative services only premium equivalents on new
cases, as well as the addition of new coverages and amendments to contracts, excluding rate increases.
Insurance-based wealth accumulation product sales include all new deposits into variable and fixed annuity contracts. As we
discontinued sales of new variable annuity contracts in the U.S. in the first quarter of 2013, subsequent deposits into existing
U.S. variable annuity contracts are not reported as sales. Asia variable annuity deposits are included in APE sales.
APE sales are comprised of 100% of regular premiums and deposits and 10% of excess and single premiums and deposits
for both insurance and insurance-based wealth accumulation products.
Gross flows is a new business measure presented for our Global WAM business and includes all deposits into mutual funds,
group pension/retirement savings products, private wealth and institutional asset management products. Gross flows is a
common industry metric for WAM businesses as it provides a measure of how successful the businesses are at attracting
assets.

Manulife Financial Corporation – Second Quarter 2025 | 66

Net flows is presented for our Global WAM business and includes gross flows less redemptions for mutual funds, group
pension/retirement savings products, private wealth and institutional asset management products. In addition, net flows include
the net flows of exchange-traded funds and non-proprietary products sold by Manulife Securities. Net flows is a common
industry metric for WAM businesses as it provides a measure of how successful the businesses are at attracting and retaining
assets. When net flows are positive, they are referred to as net inflows. Conversely, negative net flows are referred to as net
outflows.
Remittances is defined as the cash remitted or made available for distribution to Manulife Financial Corporation from its
subsidiaries. It is a key metric used by management to evaluate our financial flexibility.
E4 Caution Regarding Forward-Looking Statements
From time to time, MFC makes written and/or oral forward-looking statements, including in this document. In addition, our
representatives may make forward-looking statements orally to analysts, investors, the media and others. All such statements
are made pursuant to the “safe harbour” provisions of Canadian provincial securities laws and the U.S. Private Securities
Litigation Reform Act of 1995.
The forward-looking statements in this document include, but are not limited to, statements with respect to the Company’s
strategic priorities and targets, its medium-term financial and operating targets, the impact of the transition to the eMPF
platform on core earnings from our MPF business, planned share buybacks, the impact of changes in tax laws and the
probability and impact of LICAT scenario switches, the expected benefits and time to close the Comvest Credit Partners
acquisition, and also relate to, among other things, our objectives, goals, strategies, intentions, plans, beliefs, expectations and
estimates, and can generally be identified by the use of words such as “may”, “will”, “could”, “should”, “would”, “likely”,
“suspect”, “outlook”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “plan”, “forecast”, “objective”, “seek”, “aim”,
“continue”, “goal”, “restore”, “embark” and “endeavour” (or the negative thereof) and words and expressions of similar import,
and include statements concerning possible or assumed future results. Although we believe that the expectations reflected in
such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should
not be placed on such statements and they should not be interpreted as confirming market or analysts’ expectations in any
way.
Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ
materially from those expressed or implied in such statements. Important factors that could cause actual results to differ
materially from expectations include but are not limited to: general business and economic conditions (including but not limited
to the performance, volatility and correlation of equity markets, interest rates, credit and swap spreads, inflation rates, currency
rates, investment losses and defaults, market liquidity and creditworthiness of guarantors, reinsurers and counterparties);
changes in laws and regulations; changes in accounting standards applicable in any of the territories in which we operate;
changes in regulatory capital requirements; our ability to obtain premium rate increases on in-force policies; our ability to
execute strategic plans and changes to strategic plans; downgrades in our financial strength or credit ratings; our ability to
maintain our reputation; impairments of goodwill or intangible assets or the establishment of provisions against future tax
assets; the accuracy of estimates relating to morbidity, m ortality and policyholder behaviour; the accuracy of other estimates
used in applying accounting policies, actuarial methods and embedded value methods; our ability to implement effective
hedging strategies and unforeseen consequences arising from such strategies; our ability to source appropriate assets to back
our long-dated liabilities; level of competition and consolidation; our ability to market and distribute products through current
and future distribution channels; unforeseen liabilities or asset impairments arising from acquisitions and dispositions of
businesses; the realization of losses arising from the sale of investments classified as fair value through other comprehensive
income; our liquidity, including the availability of financing to satisfy existing financial liabilities on expected maturity dates
when required; obligations to pledge additional collateral; the availability of letters of credit to provide capital management
flexibility; accuracy of information received from counterparties and the ability of counterparties to meet their obligations; the
availability, affordability and adequacy of reinsurance; legal and regulatory proceedings, including tax audits, tax litigation or
similar proceedings; our ability to adapt products and services to the changing market; our ability to attract and retain key
executives, employees and agents; the appropriate use and interpretation of complex models or deficiencies in models used;
political, legal, operational and other risks associated with our operations; geopolitical uncertainty, including international
conflicts and trade disputes; acquisitions and our ability to complete acquisitions including the availability of equity and debt
financing for this purpose; the disruption of or changes to key elements of the Company’s or public infrastructure systems;
environmental concerns, including climate change; our ability to protect our intellectual property and exposure to claims of
infringement; our inability to withdraw cash from subsidiaries; the expected time to close the Comvest Credit Partners
acquisition; the anticipated benefits of the Comvest Credit Partners acquisition and the fact that the amount and timing of any
future common share repurchases will depend on the earnings, cash requirements and financial condition of Manulife, market
conditions, capital requirements (including under LICAT capital standards), common share issuance requirements, applicable
law and regulations (including Canadian and U.S. securities laws and Canadian insurance company regulations), and other
factors deemed relevant by Manulife, and may be subject to regulatory approval or conditions.
Additional inf ormation about material risk factors that could cause actual results to differ materially from expectations and
about material factors or assumptions applied in making forward-looking statements may be found in this document under
“Risk Management and Risk Factors Update” and “Critical Actuarial and Accounting Policies”, under “Risk Management and
Risk Factors” and “Critical Actuarial and Accounting Policies” in the Management’s Discussion and Analysis in our most recent
annual report and, in the “Risk Management” note to the consolidated financial statements in our most recent annual and
interim reports and elsewhere in our filings with Canadian and U.S. securities regulators.

Manulife Financial Corporation – Second Quarter 2025 | 67

The forward-looking statements in this document are, unless otherwise indicated, stated as of the date hereof and are
presented for the purpose of assisting investors and others in understanding our financial position and results of operations,
our future operations, as well as our objectives and strategic priorities, and may not be appropriate for other purposes. We do
not undertake to update any forward-looking statements, except as required by law.
E5 Quarterly Financial Information
The following table provides summary information related to our eight most recently completed quarters.

As at and for the three months ended | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sept 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sept 30, 2023
($ millions, except per share amounts or otherwise stated)
Revenue |  |  |  |  |  |  |  |
Insurance revenue | $6,990 | $7,062 | $6,834 | $6,746 | $6,515 | $6,497 | $6,414 | $6,215
Net investment result | 6,796 | 2,946 | 4,194 | 5,912 | 4,512 | 4,493 | 6,784 | 1,265
Other revenue | 1,851 | 1,986 | 2,003 | 1,928 | 1,849 | 1,808 | 1,719 | 1,645
Total revenue | $15,637 | $11,994 | $13,031 | $14,586 | $12,876 | $12,798 | $14,917 | $9,125
Income (loss) before income taxes | $2,261 | $699 | $2,113 | $2,341 | $1,384 | $1,252 | $2,123 | $1,174
Income tax (expenses) recoveries | (338) | (76) | (406) | (274) | (252) | (280) | (322) | 51
Net income (loss) | $1,923 | $623 | $1,707 | $2,067 | $1,132 | $972 | $1,801 | $1,225
Net income (loss) attributed to shareholders | $1,789 | $485 | $1,638 | $1,839 | $1,042 | $866 | $1,659 | $1,013
Basic earnings (loss) per common share | $0.99 | $0.25 | $0.88 | $1.01 | $0.53 | $0.45 | $0.86 | $0.53
Diluted earnings (loss) per common share | $0.98 | $0.25 | $0.88 | $1.00 | $0.52 | $0.45 | $0.86 | $0.52
Segregated funds deposits | $12,408 | $14,409 | $11,927 | $11,545 | $11,324 | $12,206 | $10,361 | $10,172
Total assets (in billions) | $977 | $981 | $979 | $953 | $915 | $907 | $876 | $836
Weighted average common shares (in millions) | 1,710 | 1,723 | 1,746 | 1,774 | 1,793 | 1,805 | 1,810 | 1,826
Diluted weighted average common shares (in millions) | 1,715 | 1,729 | 1,752 | 1,780 | 1,799 | 1,810 | 1,814 | 1,829
Dividends per common share | $0.440 | $0.440 | $0.400 | $0.400 | $0.400 | $0.400 | $0.365 | $0.365
CDN$ to US$1 – Statement of Financial Position | 1.3645 | 1.4393 | 1.4382 | 1.3510 | 1.3684 | 1.3533 | 1.3186 | 1.3520
CDN$ to US$1 – Statement of Income | 1.3837 | 1.4349 | 1.3987 | 1.3639 | 1.3682 | 1.3485 | 1.3612 | 1.3411

E6 Revenue

| Quarterly Results | YTD Results
($ millions, unaudited) | 2Q25 | 1Q25 | 2Q24 | 2025 | 2024
Insurance revenue | $6,990 | $7,062 | $6,515 | $14,052 | $13,012
Net investment income | 6,796 | 2,946 | 4,512 | 9,742 | 9,005
Other revenue | 1,851 | 1,986 | 1,849 | 3,837 | 3,657
Total revenue | $15,637 | $11,994 | $12,876 | $27,631 | $25,674
Asia | $4,935 | $2,590 | $3,814 | $7,525 | $7,400
Canada | 3,758 | 3,662 | 3,037 | 7,420 | 6,577
U.S. | 4,720 | 3,725 | 4,002 | 8,445 | 7,693
Global Wealth and Asset Management | 1,767 | 1,798 | 1,633 | 3,565 | 3,185
Corporate and Other | 457 | 219 | 390 | 676 | 819
Total revenue | $15,637 | $11,994 | $12,876 | $27,631 | $25,674

Total revenue was $15.6 billion in 2Q25 compared with $12.9 billion in 2Q24 due to higher net investment income and
insurance revenue.
B y segmen t, the increase in revenue reflected higher net investment income in all segments and higher insurance revenue in
the Asia, the U.S. and Canada.
On a year-to-date basis, total revenue was $27.6 billion in 2025 compared with $25.7 billion in in the same period of 2024 due
to an increase in insurance revenue, net investment income and other revenue.
By segment, the increase in year-to-date revenue reflected higher insurance revenue in Asia, the U.S. and Canada, higher net
investment income in Canada, the U.S. and Global WAM partially offset by lower investment income in Corporate and Other
and Asia, and higher other revenue in Global WAM partially offset by lower other revenue in Asia.

Manulife Financial Corporation – Second Quarter 2025 | 68

E7 Other
No changes were made in our internal control over financial reporting during the three months ended June 30, 2025, that have
materially affected or are reasonably likely to materially affect our internal control over financial reporting.
As in prior quarters, MFC’s Audit Committee has reviewed this MD&A and the unaudited interim financial report and MFC’s
Board of Directors approved this MD&A prior to its release.

Manulife Financial Corporation – Second Quarter 2025 | 69

Consolidated Statements of Financial Position

As at | June 30, 2025 | December 31, 2024
(Canadian $ in millions, unaudited)
Assets |  |
Cash and short-term securities | $23,773 | $25,789
Debt securities | 208,369 | 210,621
Public equities | 34,668 | 33,725
Mortgages | 55,479 | 54,447
Private placements | 49,014 | 49,668
Loans to Bank clients | 2,506 | 2,310
Real estate | 12,767 | 13,263
Other invested assets | 51,890 | 52,674
Total invested assets (note 3) | $438,466 | 442,497
Other assets |  |
Accrued investment income | 2,901 | 2,969
Derivatives (note 4) | 9,093 | 8,667
Insurance contract assets (note 5) | 183 | 102
Reinsurance contract held assets (note 5) | 61,235 | 59,015
Deferred tax assets | 5,934 | 5,884
Goodwill and intangible assets | 10,825 | 11,052
Miscellaneous | 12,274 | 12,644
Total other assets | 102,445 | 100,333
Segregated funds net assets (note 15) | 436,558 | 435,988
Total assets | $977,469 | $978,818
Liabilities and Equity |  |
Liabilities |  |
Insurance contract liabilities, excluding those for account of segregated fund holders (note 5) | $397,487 | $396,401
Reinsurance contract held liabilities (note 5) | 2,942 | 2,669
Investment contract liabilities (note 6) | 14,071 | 13,498
Deposits from Bank clients | 22,416 | 22,063
Derivatives (note 4) | 13,609 | 14,252
Deferred tax liabilities | 1,901 | 1,890
Other liabilities | 23,955 | 24,936
Long-term debt (note 8) | 6,292 | 6,629
Capital instruments (note 9) | 6,985 | 7,532
Total liabilities, excluding those for account of segregated fund holders | 489,658 | 489,870
Insurance contract liabilities for account of segregated fund holders (note 5) | 123,539 | 126,545
Investment contract liabilities for account of segregated fund holders | 313,019 | 309,443
Insurance and investment contract liabilities for account of segregated fund holders (note 15) | 436,558 | 435,988
Total liabilities | 926,216 | 925,858
Equity |  |
Preferred shares and other equity (note 10) | 6,660 | 6,660
Common shares (note 10) | 20,398 | 20,681
Contributed surplus | 201 | 204
Shareholders and other equity holders’ retained earnings | 4,538 | 4,764
Shareholders and other equity holders’ accumulated other comprehensive income (loss) (“AOCI”): |  |
Insurance finance income (expenses) | 35,439 | 37,999
Reinsurance finance income (expenses) | (6,540) | (7,048)
Fair value through other comprehensive income (“OCI”) investments | (17,196) | (19,733)
Translation of foreign operations | 5,589 | 7,327
Other | (9) | 118
Total shareholders and other equity holders’ equity | 49,080 | 50,972
Participating policyholders’ equity | 775 | 567
Non-controlling interests | 1,398 | 1,421
Total equity | 51,253 | 52,960
Total liabilities and equity | $977,469 | $978,818
The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements.

Phil Witherington
President and Chief Executive Officer
Don Lindsay
Chair of the Board of Directors

Manulife Financial Corporation – Second Quarter 2025 | 70

Consolidated Statements of Income

For the | three months ended June 30, | six months ended June 30,
(Canadian $ in millions except per share amounts, unaudited) | 2025 | 2024 | 2025 | 2024
Insurance service result |  |  |  |
Insurance revenue (note 5) | $6,990 | $6,515 | $14,052 | $13,012
Insurance service expenses | (5,765) | (5,272) | (11,473) | (10,544)
Net expenses from reinsurance contracts held | (219) | (206) | (530) | (453)
Total insurance service result | 1,006 | 1,037 | 2,049 | 2,015
Investment result |  |  |  |
Investment income (note 3) |  |  |  |
Investment income | 4,740 | 4,261 | 8,974 | 8,512
Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities | 2,377 | 564 | 1,385 | 1,102
Investment expenses | (321) | (313) | (617) | (609)
Net investment income (loss) | 6,796 | 4,512 | 9,742 | 9,005
Insurance finance income (expenses) and effect of movement in foreign exchange rates (note 5) | (5,171) | (4,623) | (8,910) | (9,081)
Reinsurance finance income (expenses) and effect of movement in foreign exchange rates (note 5) | (199) | 754 | 321 | 1,178
Decrease (increase) in investment contract liabilities | (160) | (130) | (251) | (241)
| 1,266 | 513 | 902 | 861
Segregated funds investment result (note 15) |  |  |  |
Investment income related to segregated funds net assets | 25,707 | 5,808 | 23,068 | 28,434
Financial changes related to insurance and investment contract liabilities for account of segregated fund holders | (25,707) | (5,808) | (23,068) | (28,434)
Net segregated funds investment result | - | - | - | -
Total investment result | 1,266 | 513 | 902 | 861
Other revenue (note 11) | 1,851 | 1,849 | 3,837 | 3,657
General expenses | (1,140) | (1,225) | (2,342) | (2,327)
Commissions related to non-insurance contracts | (364) | (364) | (749) | (720)
Interest expenses | (358) | (426) | (737) | (850)
Net income (loss) before income taxes | 2,261 | 1,384 | 2,960 | 2,636
Income tax (expenses) recoveries | (338) | (252) | (414) | (532)
Net income (loss) | $1,923 | $1,132 | $2,546 | $2,104
Net income (loss) attributed to: |  |  |  |
Non-controlling interests | $49 | $39 | $115 | $94
Participating policyholders | 85 | 51 | 157 | 102
Shareholders and other equity holders | 1,789 | 1,042 | 2,274 | 1,908
| $1,923 | $1,132 | $2,546 | $2,104
Net income (loss) attributed to shareholders | $1,789 | $1,042 | $2,274 | $1,908
Preferred share dividends and other equity distributions | (103) | (99) | (160) | (154)
Common shareholders’ net income (loss) | $1,686 | $943 | $2,114 | $1,754
Earnings per share |  |  |  |
Basic earnings per common share (note 10) | $0.99 | $0.53 | $1.23 | $0.97
Diluted earnings per common share (note 10) | 0.98 | 0.52 | 1.23 | 0.97
Dividends per common share | 0.44 | 0.40 | 0.88 | 0.80
The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements. |  |

Manulife Financial Corporation – Second Quarter 2025 | 71

Consolidated Statements of Comprehensive Income

For the | three months ended June 30, | six months ended June 30,
(Canadian $ in millions, unaudited) | 2025 | 2024 | 2025 | 2024
Net income (loss) | $1,923 | $1,132 | $2,546 | $2,104
Other comprehensive income (loss) (“OCI”), net of tax: |  |  |  |
Items that may be subsequently reclassified to net income: |  |  |  |
Foreign exchange gains (losses) on: |  |  |  |
Translation of foreign operations | (2,158) | 391 | (2,081) | 1,138
Net investment hedges | 361 | (85) | 343 | (240)
Insurance finance income (expenses) | (1,985) | 3,381 | (3,214) | 7,428
Reinsurance finance income (expenses) | (10) | (903) | 543 | (1,987)
Fair value through OCI investments: |  |  |  |
Unrealized gains (losses) arising during the period on assets supporting insurance and investment contract liabilities | 1,554 | (2,143) | 2,238 | (5,539)
Reclassification of net realized gains (losses) and provision for credit losses recognized in income | 22 | 457 | 831 | 1,352
Other | (101) | 25 | (80) | 64
Total items that may be subsequently reclassified to net income | (2,317) | 1,123 | (1,420) | 2,216
Items that will not be reclassified to net income | (13) | 39 | (46) | 88
Other comprehensive income (loss), net of tax | (2,330) | 1,162 | (1,466) | 2,304
Total comprehensive income (loss), net of tax | $(407) | $2,294 | $1,080 | $4,408
Total comprehensive income (loss) attributed to: |  |  |  |
Non-controlling interests | $7 | $86 | $(22) | $(18)
Participating policyholders | 138 | 65 | 208 | 122
Shareholders and other equity holders | (552) | 2,143 | 894 | 4,304

Income Taxes included in Other Comprehensive Income

For the | three months ended June 30, | six months ended June 30,
(Canadian $ in millions, unaudited) | 2025 | 2024 | 2025 | 2024
Income tax expenses (recoveries) on: |  |  |  |
Unrealized foreign exchange gains (losses) on translation of foreign operations | $(1) | $1 | $(1) | $1
Unrealized foreign exchange gains (losses) on net investment hedges | 24 | (11) | 19 | (18)
Insurance / reinsurance finance income (expenses) | (232) | 549 | (338) | 1,498
Unrealized gains (losses) on fair value through OCI investments | 112 | (356) | 147 | (1,095)
Reclassification of net realized gains (losses) on fair value through OCI investments | (11) | 145 | 182 | 331
Other | (41) | 15 | (40) | 40
Total income tax expenses (recoveries) | $(149) | $343 | $(31) | $757
The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements. |  |

Manulife Financial Corporation – Second Quarter 2025 | 72

Consolidated Statements of Changes in Equity

For the six months ended June 30, |  |
(Canadian $ in millions, unaudited) | 2025 | 2024
Preferred shares and other equity |  |
Balance, beginning of period | $6,660 | $6,660
Issued (note 10) | - | -
Balance, end of period | 6,660 | 6,660
Common shares |  |
Balance, beginning of period | 20,681 | 21,527
Repurchased (note 10) | (318) | (295)
Issued on exercise of stock options and deferred share units | 35 | 82
Balance, end of period | 20,398 | 21,314
Contributed surplus |  |
Balance, beginning of period | 204 | 222
Exercise of stock options and deferred share units | (3) | (12)
Balance, end of period | 201 | 210
Shareholders and other equity holders’ retained earnings |  |
Balance, beginning of period | 4,764 | 4,819
Net income (loss) attributed to shareholders and other equity holders | 2,274 | 1,908
Common shares repurchased (note 10) | (842) | (560)
Preferred share dividends and other equity distributions | (160) | (154)
Common share dividends | (1,498) | (1,440)
Other | - | 1
Balance, end of period | 4,538 | 4,574
Shareholders and other equity holders’ accumulated other comprehensive income (loss) (“AOCI”) |  |
Balance, beginning of period | 18,663 | 13,811
Change in unrealized foreign exchange gains (losses) on net foreign operations | (1,738) | 898
Changes in insurance / reinsurance finance income (expenses) | (2,052) | 5,600
Change in unrealized gains (losses) on fair value through OCI investments | 2,537 | (4,254)
Other changes in OCI attributed to shareholders and other equity holders | (127) | 152
Balance, end of period | 17,283 | 16,207
Total shareholders and other equity holders’ equity, end of period | 49,080 | 48,965
Participating policyholders’ equity |  |
Balance, beginning of period | 567 | 257
Net income (loss) attributed to participating policyholders | 157 | 102
Other comprehensive income (losses) attributed to participating policyholders | 51 | 20
Balance, end of period | 775 | 379
Non-controlling interests |  |
Balance, beginning of period | 1,421 | 1,431
Net income (loss) attributed to non-controlling interests | 115 | 94
Other comprehensive income (losses) attributed to non-controlling interests | (137) | (112)
Contributions (distributions and acquisitions), net | (1) | (1)
Balance, end of period | 1,398 | 1,412
Total equity, end of period | $51,253 | $50,756
The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements.

Manulife Financial Corporation – Second Quarter 2025 | 73

Consolidated Statements of Cash Flows

For the six months ended June 30, |  |
(Canadian $ in millions, unaudited) | 2025 | 2024
Operating activities |  |
Net income (loss) | $2,546 | $2,104
Adjustments: |  |
Increase (decrease) in insurance contract net liabilities (note 5) | 8,720 | 3,202
Increase (decrease) in investment contract liabilities | 251 | 241
(Increase) decrease in reinsurance contract assets, excluding reinsurance transactions noted below (note 5) | (738) | (564)
Amortization of (premium) discount on invested assets | (176) | (142)
Contractual service margin (“CSM”) amortization | (1,252) | (1,167)
Other amortization | 413 | 302
Net realized and unrealized (gains) losses and impairment on assets | (1,529) | 1,310
Deferred income tax expenses (recoveries) | (92) | 66
Loss (gain) on reinsurance transactions (pre-tax) (note 5) | (9) | 71
Cash provided by operating activities before undernoted items | 8,134 | 5,423
Changes in policy related and operating receivables and payables | 5,829 | 6,426
Cash provided by (used in) operating activities | 13,963 | 11,849
Investing activities |  |
Purchases and mortgage advances | (66,756) | (67,008)
Disposals and repayments | 53,902 | 57,009
Change in investment broker net receivables and payables | 401 | 264
Net cash increase (decrease) from sale (purchase) of subsidiaries | - | (298)
Cash provided by (used in) investing activities | (12,453) | (10,033)
Financing activities |  |
Change in repurchase agreements and securities sold but not yet purchased | (557) | 233
Secured borrowings including securitization transactions | 1,047 | 516
Change in deposits from Bank clients, net | 373 | 113
Lease payments | (56) | (61)
Shareholders’ dividends and other equity distributions | (1,658) | (1,594)
Common shares repurchased (note 10) | (1,160) | (855)
Common shares issued, net (note 10) | 35 | 82
Issue of capital instruments, net (note 9) | 497 | 1,596
Redemption of capital instruments (note 9) | (1,000) | (609)
Contributions from (distributions to) non-controlling interests, net | (1) | (1)
Cash provided by (used in) financing activities | (2,480) | (580)
Cash and short-term securities |  |
Increase (decrease) during the period | (970) | 1,236
Effect of foreign exchange rate changes on cash and short-term securities | (814) | 341
Balance, beginning of period | 24,942 | 19,884
Balance, end of period | 23,158 | 21,461
Cash and short-term securities |  |
Beginning of period |  |
Gross cash and short-term securities | 25,789 | 20,338
Net payments in transit, included in other liabilities | (847) | (454)
Net cash and short-term securities, beginning of period | 24,942 | 19,884
End of period |  |
Gross cash and short-term securities | 23,773 | 22,098
Net payments in transit, included in other liabilities | (615) | (637)
Net cash and short-term securities, end of period | $23,158 | $21,461
Supplemental disclosures on cash flow information |  |
Interest received | $6,979 | $6,813
Interest paid | 815 | 818
Income taxes paid | 524 | 713
The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements.

Manulife Financial Corporation – Second Quarter 2025 | 74

CONDENSED NOTES TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS
(Canadian $ in millions except per share amounts or unless otherwise stated, unaudited)
Note 1 Nature of Operations and Material Accounting Policy Information
(a)Reporting entity
Manulife Financial Corporation (“MFC”) is a publicly traded company and the holding company of The Manufacturers Life
Insurance Company (“MLI”), a Canadian life insurance company. MFC, including its subsidiaries (collectively, “Manulife” or the
“Company”) is a leading financial services group with principal operations in Asia, Canada and the United States. Manulife’s
international network of employees, agents and distribution partners offers financial protection and wealth management
products and services to personal and business clients as well as asset management services to institutional customers. The
Company operates as Manulife in Asia and Canada and as John Hancock and Manulife in the United States.
These Interim Consolidated Financial Statements and condensed notes have been prepared in accordance with International
Accounting Standard (“IAS”) 34 “Interim Financial Reporting” as issued by the International Accounting Standards Board
(“IASB”), using accounting policies which are consistent with those used in the Company’s 2024 Annual Consolidated
Financial Statements.
These Interim Consolidated Financial Statements should be read in conjunction with the audited Annual Consolidated
Financial Statements for the year ended December 31, 2024, included on pages 143 to 269 of the Company’s 2024 Annual
Report, as well as the disclosures on risk in denoted components of the “Risk Management and Risk Factors Update” section
of the Second Quarter 2025 Management Discussion and Analysis (“MD&A”). Those denoted risk disclosures are an integral
part of these Interim Consolidated Financial Statements.
These Interim Consolidated Financial Statements as at and for the three and six months ended ended June 30, 2025 were
authorized for issue by MFC’s Board of Directors on August 6, 2025.
(b)Basis of preparation
Refer to note 1 of the Company’s 2024 Annual Consolidated Financial Statements for a summary of material estimation
processes used in the preparation of these Interim Consolidated Financial Statements under International Financial Reporting
Standards (“IFRS”) and description of the Company’s measurement techniques in determining carrying values and respective
fair values of its assets and liabilities.
Note 2 Accounting and Reporting Changes
Future accounting and reporting changes
(I)Annual Improvements to IFRS Accounting Standards – Volume 11
Annual Improvements to IFRS Accounting Standards – Volume 11 was issued in July 2024 and is effective on or after January
1, 2026. The IASB issued eight minor amendments to different standards as part of the Annual Improvements process, to be
applied retrospectively except for amendments to IFRS 1 “First-Time Adoption of International Financial Reporting Standards”
for first time adopters and to IFRS 9 “Financial Instruments” (“IFRS 9”) for derecognition of lease liabilities. Adoption of these
amendments is not expected to have a significant impact on the Company’s Consolidated Financial Statements.
(II)Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7)
Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 “Financial Instruments”
and IFRS 7 “Financial Instruments: Disclosures” (“IFRS 7”)) were issued in May 2024 to be effective for years beginning on
January 1, 2026 and to be applied retrospectively. The amendments clarify guidance on timing of derecognition of financial
liabilities, on the assessment of cash flow characteristics and resulting classification and disclosure of financial assets with
terms referencing contingent events including environmental, social and corporate governance events, and of the treatment of
non-recourse assets and contractually linked instruments. The Company is assessing the impact of these amendments on the
Company’s Consolidated Financial Statements.

Manulife Financial Corporation – Second Quarter 2025 | 75

(III)IFRS 18 “Presentation and Disclosure in the Financial Statements”
IFRS 18 “Presentation and Disclosure in Financial Statements” (“IFRS 18”) was issued in April 2024 to be effective for years
beginning on January 1, 2027 and to be applied retrospectively. The standard replaces IAS 1 “Presentation of Financial
Statements” (“IAS 1”) while carrying forward many elements of IAS 1 unchanged. IFRS 18 introduces three sets of new
requirements for presentation of financial statements and disclosures within financial statements:
•Introduction of five defined categories of income and expenses: operating, investing, financing, income taxes and
discontinued operations, with defined subtotals and totals for “operating income (loss)”, “income or loss before financing
and income taxes” and “income (loss)”,
•disclosure within a note to financial statements of management-defined performance measures (“MPMs”) with a
reconciliation between MPMs and IFRS performance measures. MPMs are defined as subtotals of income and expenses
not specified by IFRS Accounting Standards, which are used in public communications outside financial statements to
communicate management’s view of the Company’s financial performance, and
•enhanced guidance on organizing information and determining whether to provide the information in the financial
statements or in the notes. IFRS 18 also requires enhanced disclosure of operating expenses based on their
characteristics, including their nature, function or both.
The Company is assessing the impact of this standard on the Company’s Consolidated Financial Statements.
(IV)Amendments to IAS 12 “Income Taxes”
Amendments to IAS 12 “Income Taxes” (“IAS 12”) were issued in May 2023. The amendments relate to the Organization for
Economic Co-operation and Development’s International Pillar Two tax reform, which seeks to establish a global minimum
income tax rate of 15% and addresses inter-jurisdictional base erosion and profit shifting, targeting larger international
companies. Most jurisdictions have agreed to participate and effective dates for Global Minimum Taxes (“GMT”) vary by
jurisdiction based on local legislation.
The amendments require that, effective for years beginning on or after January 1, 2023, disclosure of current tax expense or
recovery related to GMT is required along with, to the extent that GMT legislation is enacted or substantively enacted but not
yet in effect, disclosure of known or reasonably estimable information that helps users of financial statements understand the
Company’s exposure to GMT arising from that legislation.
The Company expects to pay GMT of $93 and $154 for the three and six months ended June 30, 2025, arising from its
operations in Barbados, China and Hong Kong (2024 – $44 and $88 for all worldwide operations, respectively).
The amendments also introduce a temporary mandatory exception in IAS 12 from recognizing and disclosing deferred tax
assets and liabilities related to GMT. The Company has applied the temporary exception from accounting for deferred taxes in
respect of GMT.

Manulife Financial Corporation – Second Quarter 2025 | 76

Note 3 Invested Assets and Investment Income
(a)Carrying values and fair values of invested assets

As at June 30, 2025 | FVTPL(1) | FVOCI(2) | Other(3) | Total carrying value | Total fair value(4)
Cash and short-term securities(5) | $3 | $17,891 | $5,879 | $23,773 | $23,773
Debt securities(6) |  |  |  |  |
Canadian government and agency | 1,053 | 18,572 | - | 19,625 | 19,625
U.S. government and agency | 38 | 27,136 | 630 | 27,804 | 27,539
Other government and agency | 91 | 37,219 | - | 37,310 | 37,310
Corporate | 2,663 | 118,702 | 500 | 121,865 | 121,679
Mortgage / asset-backed securities | 167 | 1,598 | - | 1,765 | 1,765
Public equities (FVTPL mandatory) | 34,668 | - | - | 34,668 | 34,668
Mortgages | 1,329 | 28,499 | 25,651 | 55,479 | 55,904
Private placements | 872 | 48,142 | - | 49,014 | 49,014
Loans to Bank clients | - | - | 2,506 | 2,506 | 2,487
Real estate |  |  |  |  |
Own use property(7) | - | - | 2,625 | 2,625 | 2,751
Investment property | - | - | 10,142 | 10,142 | 10,142
Other invested assets |  |  |  |  |
Alternative long-duration assets(8) | 33,804 | 371 | 13,106 | 47,281 | 48,360
Various other(9) | 134 | - | 4,475 | 4,609 | 4,609
Total invested assets | $74,822 | $298,130 | $65,514 | $438,466 | $439,626

As at December 31, 2024 | FVTPL(1) | FVOCI(2) | Other(3) | Total carrying value | Total fair value(4)
Cash and short-term securities(5) | $25 | $19,909 | $5,855 | $25,789 | $25,789
Debt securities(6) |  |  |  |  |
Canadian government and agency | 1,056 | 18,671 | - | 19,727 | 19,727
U.S. government and agency | 58 | 27,628 | 968 | 28,654 | 28,366
Other government and agency | 68 | 35,402 | - | 35,470 | 35,470
Corporate | 2,761 | 121,674 | 527 | 124,962 | 124,762
Mortgage / asset-backed securities | 17 | 1,791 | - | 1,808 | 1,808
Public equities (FVTPL mandatory) | 33,725 | - | - | 33,725 | 33,725
Mortgages | 1,239 | 28,792 | 24,416 | 54,447 | 54,812
Private placements | 866 | 48,802 | - | 49,668 | 49,668
Loans to Bank clients | - | - | 2,310 | 2,310 | 2,285
Real estate |  |  |  |  |
Own use property(7) | - | - | 2,674 | 2,674 | 2,798
Investment property | - | - | 10,589 | 10,589 | 10,589
Other invested assets |  |  |  |  |
Alternative long-duration assets(8) | 34,334 | 389 | 13,140 | 47,863 | 48,875
Various other(9) | 140 | - | 4,671 | 4,811 | 4,811
Total invested assets | $74,289 | $303,058 | $65,150 | $442,497 | $443,485

(1)Fair value through profit or loss (“FVTPL”) classification was elected for debt instruments backing certain insurance contract liabilities to substantially reduce
any accounting mismatch arising from changes in the fair value of these assets, and changes in the carrying value of the related insurance contract liabilities.
(2)Fair value through other comprehensive income (“FVOCI”) classification for debt instruments backing certain insurance contract liabilities inherently reduces
any accounting mismatch arising from changes in the fair value of these assets, and changes in the carrying value of the related insurance contract liabilities.
(3)Other includes mortgages and loans to Bank clients held at amortized cost, own use properties held at fair value or cost, investment properties held at fair
value, and equity method accounted investments (including leveraged leases). Also includes debt securities, which qualify as having Solely Payment of
Principal and Interest (“SPPI”), are held to collect contractual cash flows and are carried at amortized cost.
(4)Invested assets above comprise debt securities, mortgages, private placements and approximately $371 (December 31, 2024 – $389) of other invested assets,
which qualify as having SPPI qualifying cash flows. Invested assets which do not have SPPI qualifying cash flows as at June 30, 2025 include debt securities,
private placements and other invested assets with fair values of $nil, $120 and $567, respectively (December 31, 2024 – $nil, $132 and $547, respectively).
The change in the fair value of these non-SPPI invested assets for the six months ended June 30, 2025 was an in crease of $8 (for the year ended December
31, 2024 – a $25 increase).
(5)Includes short-term securities with remaining maturities of less than one year at acquisition amounting to $11,454 (December 31, 2024 – $10,121), cash
equivalents with remaining maturities of less than 90 days at acquisition amounting to $6,440 (December 31, 2024 – $9,813) and cash of $5,879 (December
31, 2024 – $5,855).
(6)Debt securities include securities which were acquired with remaining maturities of less than one year and less than 90 days of $1,176 and $5, respectively
(December 31, 2024 – $1,266 and $145, respectively).
(7)Own use property of $2,462 (December 31, 2024 – $2,500), are underlying items for insurance contracts with direct participating features and are measured at
fair value as if they were investment properties, as permitted by IAS 16 “Property, Plant and Equipment”. Own use property of $163 (December 31, 2024 –
$174) is carried at cost less accumulated depreciation and any accumulated impairment losses.
(8)Alternative long-duration assets (“ALDA”) include infrastructure of $18,293, investments in private equity of $17,494, timber and agriculture of $5,845, energy of
$1,798 and various other ALDA of $3,851 (December 31, 2024 – $17,804, $18,343, $5,917, $1,916, and $3,883, respectively).
(9)Includes $4,165 (December 31, 2024 – $4,300) of leveraged leases.

Manulife Financial Corporation – Second Quarter 2025 | 77

(b)Fair value measurement
The following tables present fair values and the fair value hierarchy levels of invested assets and segregated funds net assets
measured at fair value in the Consolidated Statements of Financial Position.

As at June 30, 2025 | Total fair value | Level 1 | Level 2 | Level 3
Cash and short-term securities |  |  |  |
FVOCI | $17,891 | $- | $17,891 | $-
FVTPL | 3 | - | 3 | -
Other | 5,879 | 5,879 | - | -
Debt securities |  |  |  |
FVOCI |  |  |  |
Canadian government and agency | 18,572 | - | 18,572 | -
U.S. government and agency | 27,136 | - | 27,136 | -
Other government and agency | 37,219 | - | 37,205 | 14
Corporate | 118,702 | - | 118,642 | 60
Residential mortgage-backed securities | 1 | - | 1 | -
Commercial mortgage-backed securities | 248 | - | 248 | -
Other asset-backed securities | 1,349 | - | 1,349 | -
FVTPL |  |  |  |
Canadian government and agency | 1,053 | - | 1,053 | -
U.S. government and agency | 38 | - | 38 | -
Other government and agency | 91 | - | 91 | -
Corporate | 2,663 | - | 2,663 | -
Commercial mortgage-backed securities | 1 | - | 1 | -
Other asset-backed securities | 166 | - | 156 | 10
Private placements(1) |  |  |  |
FVOCI | 48,142 | - | 38,450 | 9,692
FVTPL | 872 | - | 666 | 206
Mortgages |  |  |  |
FVOCI | 28,499 | - | - | 28,499
FVTPL | 1,329 | - | - | 1,329
Public equities |  |  |  |
FVTPL | 34,668 | 34,598 | 68 | 2
Real estate(2) |  |  |  |
Investment property | 10,142 | - | - | 10,142
Own use property | 2,462 | - | - | 2,462
Other invested assets(3) | 37,981 | 70 | - | 37,911
Segregated funds net assets(4) | 436,558 | 398,762 | 34,784 | 3,012
Total | $831,665 | $439,309 | $299,017 | $93,339

(1)Fair value of private placements is determined through an internal valuation methodology using both observable and non-market observable inputs. Non-market
observable inputs include credit assumptions and liquidity spread adjustments. Private placements are classified within Level 2 unless the liquidity spread
adjustment constitutes a material price impact, in which case the securities are classified as Level 3.
(2)For real estate properties, the significant non-market observable inputs are capitalization rates ranging from 3.20% to 11.00% for the six months ended June 30,
2025 (ranging from 3.10% to 9.50% for the year ended December 31, 2024), terminal capitalization rates ranging from 3.25% to 10.00% for the six months
ended June 30, 2025 (ranging from 3.10% to 10.00% for the year ended December 31, 2024) and discount rates ranging from 3.60% to 13.50% for the six
months ended June 30, 2025 (ranging from 3.60% to 13.75% for the year ended December 31, 2024). Holding other factors constant, a lower capitalization or
terminal capitalization rate will tend to increase the fair value of an investment property. Changes in fair value based on variations in non-market observable
inputs generally cannot be extrapolated because the relationship between the directional changes of each input is not usually linear.
(3)Other invested assets measured at fair value are held in infrastructure and timber sectors and include fund investments of $31,250 (December 31, 2024 –
$31,435) recorded at net asset value. The significant inputs used in the valuation of the Company’s infrastructure investments are primarily future distributable
cash flows, terminal values and discount rates. Holding other factors constant, an increase to future distributable cash flows or terminal values would tend to
increase the fair value of an infrastructure investment, while an increase in the discount rate would have the opposite effect. Discount rates for the six months
ended June 30, 2025 ranged from 7.87% to 17.50% (ranged from 7.42% to 20.00% for the year ended December 31, 2024). Disclosure of distributable cash
flow and terminal value ranges are not meaningful given the disparity in estimates by project. The significant inputs used in the valuation of the Company’s
investments in timberland properties are timber prices and discount rates. Holding other factors constant, an increase to timber prices would tend to increase
the fair value of a timberland investment, while an increase in the discount rates would have the opposite effect. Discount rates for the six months ended June
30, 2025 ranged from 3.25% to 6.25% (ranged from 3.25% to 6.25% for the year ended December 31, 2024). A range of prices for timber is not meaningful as
the market price depends on factors such as property location and proximity to markets and export yards.
(4)Segregated funds net assets are measured at fair value. The Company’s Level 3 segregated funds underlying assets are predominantly in investment
properties and timberland properties valued as described above.

Manulife Financial Corporation – Second Quarter 2025 | 78

As at December 31, 2024 | Total fair value | Level 1 | Level 2 | Level 3
Cash and short-term securities |  |  |  |
FVOCI | $19,909 | $- | $19,909 | $-
FVTPL | 25 | - | 25 | -
Other | 5,855 | 5,855 | - | -
Debt securities |  |  |  |
FVOCI |  |  |  |
Canadian government and agency | 18,671 | - | 18,671 | -
U.S. government and agency | 27,628 | - | 27,628 | -
Other government and agency | 35,402 | - | 35,392 | 10
Corporate | 121,674 | - | 121,630 | 44
Residential mortgage-backed securities | 5 | - | 5 | -
Commercial mortgage-backed securities | 270 | - | 270 | -
Other asset-backed securities | 1,516 | - | 1,516 | -
FVTPL |  |  |  |
Canadian government and agency | 1,056 | - | 1,056 | -
U.S. government and agency | 58 | - | 58 | -
Other government and agency | 68 | - | 68 | -
Corporate | 2,761 | - | 2,761 | -
Commercial mortgage-backed securities | 2 | - | 2 | -
Other asset-backed securities | 15 | - | 15 | -
Private placements(1) |  |  |  |
FVOCI | 48,802 | - | 40,038 | 8,764
FVTPL | 866 | - | 730 | 136
Mortgages |  |  |  |
FVOCI | 28,792 | - | - | 28,792
FVTPL | 1,239 | - | - | 1,239
Public equities |  |  |  |
FVTPL | 33,725 | 33,650 | 75 | -
Real estate(2) |  |  |  |
Investment property | 10,589 | - | - | 10,589
Own use property | 2,500 | - | - | 2,500
Other invested assets(3) | 38,543 | 77 | - | 38,466
Segregated funds net assets(4) | 435,988 | 399,043 | 33,611 | 3,334
Total | $835,959 | $438,625 | $303,460 | $93,874

Note: For footnotes (1) to (4), refer to the “Fair value measurement” table as at June 30, 2025 above.
The following tables present fair value of invested assets not measured at fair value by the fair value hierarchy.

As at June 30, 2025 | Carrying value | Total fair value | Level 1 | Level 2 | Level 3
Mortgages | $25,651 | $26,076 | $- | $- | $26,076
Loans to Bank clients | 2,506 | 2,487 | - | 2,487 | -
Real estate – own use property | 163 | 289 | - | - | 289
Public bonds held at amortized cost | 1,130 | 679 | - | 679 | -
Other invested assets(1) | 13,909 | 14,988 | 546 | - | 14,442
Total invested assets disclosed at fair value | $43,359 | $44,519 | $546 | $3,166 | $40,807

As at December 31, 2024 | Carrying value | Total fair value | Level 1 | Level 2 | Level 3
Mortgages | $24,416 | $24,781 | $- | $- | $24,781
Loans to Bank clients | 2,310 | 2,285 | - | 2,285 | -
Real estate – own use property | 174 | 298 | - | - | 298
Public bonds held at amortized cost | 1,495 | 1,007 | - | 1,007 | -
Other invested assets(1) | 14,131 | 15,143 | 542 | - | 14,601
Total invested assets disclosed at fair value | $42,526 | $43,514 | $542 | $3,292 | $39,680

(1)T he carrying value of other invested assets includes leveraged leases of $4,165 (December 31, 2024 – $4,300), other equity method accounted investments
and other invested assets of $9,744 (December 31, 2024 – $9,831). Fair value of leveraged leases is disclosed at their carrying value as fair value is not
routinely calculated on these investments. Fair value of equity method accounted investments and other invested assets is determined using a variety of
valuation techniques including discounted cash flows and market comparable approaches. Inputs vary based on the specific investment.

Manulife Financial Corporation – Second Quarter 2025 | 79

Transfers between Level 1 and Level 2
The Company records transfers of assets and liabilities between Level 1 and Level 2 at their fair values as at the end of each
reporting period, consistent with the date of the determination of fair value. Assets are transferred out of Level 1 when they are
no longer transacted with sufficient frequency and volume in an active market. Conversely, assets are transferred from Level 2
to Level 1 when transaction volume and frequency are indicative of an active market. During the three and six months ended
June 30, 2025, the Company had $nil and $nil transfers of assets between Level 1 and Level 2 (June 30, 2024 – $nil and $nil).
For segregated funds net assets, during the three and six months ended June 30, 2025, the Company had $nil and $nil
transfers of assets between Level 1 and Level 2 (June 30, 2024 – $nil and $nil).
Invested assets and segregated funds net assets measured at fair value using significant non-market observable
inputs (Level 3)
The Company classifies fair values of invested assets and segregated funds net assets as Level 3 if there are no observable
market inputs for these assets, or in the presence of active markets significant non-market observable inputs are used to
determine fair value. The Company prioritizes the use of market-based inputs over non-market observable inputs in
determining Level 3 fair values. The gains and losses in the table below include the changes in fair value due to both
observable and non-market observable factors.
The following tables present the movement in invested assets, net derivatives and segregated funds net assets measured at
fair value using significant non-market observable inputs (Level 3) for the three months ended June 30, 2025 and June 30,
2024.

For the three months ended June 30, 2025 | Balance, April 1, 2025 | Total gains (losses) included in net income(1) | Total gains (losses) included in OCI(2) | Purchases | Sales | Settlements | Transfer in(3) | Transfer out(3) | Currency movement | Balance, June 30, 2025 | Change in unrealized gains (losses) on assets still held
Debt securities |  |  |  |  |  |  |  |  |  |  |
FVOCI |  |  |  |  |  |  |  |  |  |  |
Other government & agency | $14 | $- | $(1) | $- | $- | $- | $- | $- | $1 | $14 | $-
Corporate | 45 | - | (2) | - | - | (2) | 22 | - | (3) | 60 | -
Other securitized assets | - | - | - | - | - | - | - | - | - | - | -
FVTPL |  |  |  |  |  |  |  |  |  |  |
Other securitized assets | 10 | - | - | - | - | - | - | - | - | 10 | -
Public equities |  |  |  |  |  |  |  |  |  |  |
FVTPL | - | 1 | - | - | - | - | - | - | 1 | 2 | 1
Private placements |  |  |  |  |  |  |  |  |  |  |
FVOCI | 9,435 | (4) | (40) | 775 | (30) | (238) | 197 | - | (403) | 9,692 | -
FVTPL | 132 | 2 | - | 5 | - | (7) | 73 | - | 1 | 206 | 2
Mortgages |  |  |  |  |  |  |  |  |  |  |
FVOCI | 29,067 | 30 | 175 | 1,063 | (616) | (209) | - | - | (1,011) | 28,499 | -
FVTPL | 1,267 | (8) | - | 111 | (21) | (20) | - | - | - | 1,329 | -
Investment property | 10,492 | (26) | - | 18 | (40) | - | - | - | (302) | 10,142 | (27)
Own use property | 2,505 | 5 | - | 2 | - | - | - | - | (50) | 2,462 | 5
Other invested assets | 38,754 | 297 | (7) | 1,027 | (226) | (430) | - | - | (1,504) | 37,911 | 271
Total invested assets | 91,721 | 297 | 125 | 3,001 | (933) | (906) | 292 | - | (3,270) | 90,327 | 252
Derivatives, net | (2,419) | (592) | (1) | - | - | (23) | - | 304 | 113 | (2,618) | (592)
Segregated funds net assets | 3,189 | 17 | - | 18 | (147) | 18 | - | - | (83) | 3,012 | 3
Total | $92,491 | $(278) | $124 | $3,019 | $(1,080) | $(911) | $292 | $304 | $(3,240) | $90,721 | $(337)

(1)These amounts are included in net investment income on the Consolidated Statements of Income except for the amount related to segregated funds net
assets, where the amount is recorded in investment income related to segregated funds net assets.
(2)These amounts are included in OCI on the Consolidated Statements of Comprehensive Income.
(3)The Company uses fair values of the assets at the beginning of the period for assets transferred into and out of Level 3 except for derivatives, where the
Company uses fair value at the end of the period and at the beginning of the period, respectively.

Manulife Financial Corporation – Second Quarter 2025 | 80

For the three months ended June 30, 2024 | Balance, April 1, 2024 | Total gains (losses) included in net income(1) | Total gains (losses) included in OCI(2) | Purchases | Sales | Settlements | Transfer in(3) | Transfer out(3) | Currency movement | Balance, June 30, 2024 | Change in unrealized gains (losses) on assets still held
Debt securities |  |  |  |  |  |  |  |  |  |  |
FVOCI |  |  |  |  |  |  |  |  |  |  |
Other government & agency | $14 | $- | $- | $- | $- | $- | $- | $- | $- | $14 | $-
Corporate | 235 | - | (3) | - | - | (11) | - | - | 1 | 222 | -
Other securitized assets | 19 | - | 1 | - | - | - | - | - | (1) | 19 | -
FVTPL |  |  |  |  |  |  |  |  |  |  |
Corporate | - | - | - | 11 | - | - | - | - | - | 11 | -
Public equities |  |  |  |  |  |  |  |  |  |  |
FVTPL | 42 | (1) | - | - | - | - | - | (36) | (1) | 4 | (1)
Private placements |  |  |  |  |  |  |  |  |  |  |
FVOCI | 7,518 | 2 | (37) | 776 | (86) | (139) | 28 | (20) | 51 | 8,093 | -
FVTPL | 52 | (3) | - | 39 | - | (6) | 29 | - | - | 111 | (3)
Mortgages |  |  |  |  |  |  |  |  |  |  |
FVOCI | 28,458 | 11 | (88) | 488 | (741) | (188) | - | - | 192 | 28,132 | -
FVTPL | 1,102 | 3 | - | 115 | (28) | (8) | - | - | - | 1,184 | -
Investment property | 10,454 | (115) | - | 35 | (24) | - | - | - | 59 | 10,409 | (113)
Own use property | 2,434 | (1) | - | (1) | - | - | - | - | 16 | 2,448 | (1)
Other invested assets | 35,273 | 192 | 3 | 1,074 | (1,075) | (301) | - | - | 246 | 35,412 | (8)
Total invested assets | 85,601 | 88 | (124) | 2,537 | (1,954) | (653) | 57 | (56) | 563 | 86,059 | (126)
Derivatives, net | (2,697) | (528) | - | - | - | (30) | - | 676 | (7) | (2,586) | (525)
Segregated funds net assets | 3,440 | 9 | - | 23 | (10) | (13) | - | - | 7 | 3,456 | 5
Total | $86,344 | $(431) | $(124) | $2,560 | $(1,964) | $(696) | $57 | $620 | $563 | $86,929 | $(646)

Note: For footnotes (1) to (3), refer to the “Invested assets and segregated funds net assets measured at fair value using significant non-market observable inputs
(Level 3)” table for the three months ended June 30, 2025 above.
The following tables present the movement in invested assets, net derivatives and segregated funds net assets measured at
fair value using significant non-market observable inputs (Level 3) for the six months ended June 30, 2025 and June 30, 2024.

For the six months ended June 30, 2025 | Balance, January 1, 2025 | Total gains (losses) included in net income(1) | Total gains (losses) included in OCI(2) | Purchases | Sales | Settlements | Transfer in(3) | Transfer out(3) | Currency movement | Balance, June 30, 2025 | Change in unrealized gains (losses) on assets still held
Debt securities |  |  |  |  |  |  |  |  |  |  |
FVOCI |  |  |  |  |  |  |  |  |  |  |
Other government & agency | $10 | $- | $4 | $- | $- | $- | $- | $- | $- | $14 | $-
Corporate | 44 | - | (1) | - | - | (2) | 22 | - | (3) | 60 | -
Other securitized assets | - | - | - | - | - | - | - | - | - | - | -
FVTPL |  |  |  |  |  |  |  |  |  |  |
Other securitized assets | - | - | - | 10 | - | - | - | - | - | 10 | -
Public equities |  |  |  |  |  |  |  |  |  |  |
FVTPL | - | 1 | - | - | - | - | - | - | 1 | 2 | 1
Private placements |  |  |  |  |  |  |  |  |  |  |
FVOCI | 8,764 | (3) | (194) | 2,017 | (244) | (599) | 335 | (10) | (374) | 9,692 | -
FVTPL | 136 | (8) | - | 25 | - | (22) | 74 | - | 1 | 206 | (8)
Mortgages |  |  |  |  |  |  |  |  |  |  |
FVOCI | 28,792 | 11 | 528 | 1,413 | (873) | (396) | - | - | (976) | 28,499 | -
FVTPL | 1,239 | 8 | - | 141 | (27) | (31) | - | - | (1) | 1,329 | -
Investment property | 10,589 | (66) | - | 88 | (188) | - | - | - | (281) | 10,142 | (85)
Own use property | 2,500 | (7) | - | 3 | - | - | - | - | (34) | 2,462 | (7)
Other invested assets | 38,466 | 422 | 10 | 2,423 | (1,050) | (964) | - | - | (1,396) | 37,911 | 233
Total invested assets | 90,540 | 358 | 347 | 6,120 | (2,382) | (2,014) | 431 | (10) | (3,063) | 90,327 | 134
Derivatives, net | (3,235) | (143) | (1) | - | - | (37) | - | 695 | 103 | (2,618) | (243)
Segregated funds net assets | 3,334 | 15 | (172) | 38 | (179) | 58 | - | - | (82) | 3,012 | 6
Total | $90,639 | $230 | $174 | $6,158 | $(2,561) | $(1,993) | $431 | $685 | $(3,042) | $90,721 | $(103)

(1)These amounts are included in net investment income on the Consolidated Statements of Income except for the amount related to segregated funds net
assets, where the amount is recorded in investment income related to segregated funds net assets.
(2)These amounts are included in OCI on the Consolidated Statements of Comprehensive Income.
(3)The Company uses fair values of the assets at the beginning of the year for assets transferred into and out of Level 3 except for derivatives, where the
Company uses fair value at the end of the period and at the beginning of the year, respectively.

Manulife Financial Corporation – Second Quarter 2025 | 81

For the six months ended June 30, 2024 | Balance, January 1, 2024 | Total gains (losses) included in net income(1) | Total gains (losses) included in OCI(2) | Purchases | Sales | Settlements | Transfer in(3) | Transfer out(3),(4) | Currency movement | Balance, June 30, 2024 | Change in unrealized gains (losses) on assets still held
Debt securities |  |  |  |  |  |  |  |  |  |  |
FVOCI |  |  |  |  |  |  |  |  |  |  |
Other government & agency | $10 | $- | $- | $- | $- | $- | $4 | $- | $- | $14 | $-
Corporate | 231 | - | - | - | - | (11) | - | - | 2 | 222 | -
Other securitized assets | 21 | - | 2 | - | - | (3) | - | - | (1) | 19 | -
FVTPL |  |  |  |  |  |  |  |  |  |  |
Corporate | - | - | - | 11 | - | - | - | - | - | 11 | -
Public equities |  |  |  |  |  |  |  |  |  |  |
FVTPL | 41 | - | - | - | - | - | - | (36) | (1) | 4 | -
Private placements |  |  |  |  |  |  |  |  |  |  |
FVOCI | 7,682 | 4 | (5) | 1,594 | (642) | (390) | 224 | (534) | 160 | 8,093 | -
FVTPL | 79 | (4) | - | 39 | - | (17) | 29 | (14) | (1) | 111 | (4)
Mortgages |  |  |  |  |  |  |  |  |  |  |
FVOCI | 28,473 | 20 | (399) | 971 | (1,211) | (373) | - | - | 651 | 28,132 | -
FVTPL | 1,055 | (5) | - | 205 | (56) | (16) | - | - | 1 | 1,184 | -
Investment property | 10,458 | (281) | - | 115 | (63) | - | - | - | 180 | 10,409 | (290)
Own use property | 2,430 | (32) | - | 9 | - | - | - | - | 41 | 2,448 | (32)
Other invested assets | 33,585 | 748 | 36 | 2,021 | (1,188) | (559) | - | - | 769 | 35,412 | 507
Total invested assets | 84,065 | 450 | (366) | 4,965 | (3,160) | (1,369) | 257 | (584) | 1,801 | 86,059 | 181
Derivatives, net | (2,166) | (1,104) | - | - | - | (49) | - | 782 | (49) | (2,586) | (969)
Segregated funds net assets | 3,492 | (20) | 5 | 99 | (189) | 16 | - | - | 53 | 3,456 | (85)
Total | $85,391 | $(674) | $(361) | $5,064 | $(3,349) | $(1,402) | $257 | $198 | $1,805 | $86,929 | $(873)

Note: For footnotes (1) to (3), refer to the “Invested assets and segregated funds net assets measured at fair value using significant non-market observable inputs
(Level 3)” table for the six months ended June 30, 2025 above.
Transfers into Level 3 primarily result where a lack of observable market data (versus the previous period) arises. Transfers
from Level 3 primarily result from observable market data becoming available for derivatives, or for the entire term structure of
the private placements.
(c)Investment income

For the | three months ended June 30, | six months ended June 30,
2025 | 2024 | 2025 | 2024
Interest income | $3,494 | $3,425 | $6,998 | $6,861
Dividends, rental income and other income | 1,214 | 719 | 2,121 | 1,400
Impairments (loss) / recovery, net | (109) | 24 | (168) | 61
Other | 141 | 93 | 23 | 190
Investment income | 4,740 | 4,261 | 8,974 | 8,512
Debt securities | (35) | (527) | (559) | (1,214)
Public equities | 1,879 | 544 | 1,520 | 2,297
Mortgages | 22 | (38) | 25 | (44)
Private placements | 36 | 288 | (158) | 532
Real estate | 43 | (110) | 15 | (338)
Other invested assets | 200 | 50 | 241 | 561
Derivatives | 232 | 357 | 301 | (692)
Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities | 2,377 | 564 | 1,385 | 1,102
Investment expenses | (321) | (313) | (617) | (609)
Net investment income (loss) | $6,796 | $4,512 | $9,742 | $9,005

Manulife Financial Corporation – Second Quarter 2025 | 82

(d)Remaining term to maturity
The following tables present remaining term to maturity for invested assets.

| Remaining term to maturity(1) |
As at June 30, 2025 | Less than 1 year | 1 to 3 years | 3 to 5 years | 5 to 10 years | Over 10 years | With no specific maturity | Total
Cash and short-term securities | $23,773 | $- | $- | $- | $- | $- | $23,773
Debt securities |  |  |  |  |  |  |
Canadian government and agency | 688 | 1,623 | 918 | 3,711 | 12,685 | - | 19,625
U.S. government and agency | 137 | 690 | 2,016 | 3,486 | 21,475 | - | 27,804
Other government and agency | 442 | 1,178 | 774 | 3,381 | 31,535 | - | 37,310
Corporate | 7,691 | 14,958 | 15,448 | 33,289 | 50,479 | - | 121,865
Mortgage / asset-backed securities | 109 | 189 | 309 | 422 | 736 | - | 1,765
Public equities | - | - | - | - | - | 34,668 | 34,668
Mortgages | 6,012 | 11,754 | 9,992 | 7,255 | 9,866 | 10,600 | 55,479
Private placements | 1,394 | 5,817 | 4,575 | 10,779 | 26,415 | 34 | 49,014
Loans to Bank clients | 48 | 8 | 3 | - | - | 2,447 | 2,506
Real estate |  |  |  |  |  |  |
Own use property | - | - | - | - | - | 2,625 | 2,625
Investment property | - | - | - | - | - | 10,142 | 10,142
Other invested assets |  |  |  |  |  |  |
Alternative long-duration assets | 21 | 24 | 80 | 304 | 494 | 46,358 | 47,281
Various other | - | 19 | - | 3,639 | 507 | 444 | 4,609
Total invested assets | $40,315 | $36,260 | $34,115 | $66,266 | $154,192 | $107,318 | $438,466

| Remaining term to maturity(1) |
As at December 31, 2024 | Less than 1 year | 1 to 3 years | 3 to 5 years | 5 to 10 years | Over 10 years | With no specific maturity | Total
Cash and short-term securities | $25,789 | $- | $- | $- | $- | $- | $25,789
Debt securities |  |  |  |  |  |  |
Canadian government and agency | 543 | 2,282 | 678 | 3,339 | 12,885 | - | 19,727
U.S. government and agency | 644 | 640 | 1,473 | 4,699 | 21,198 | - | 28,654
Other government and agency | 372 | 1,208 | 1,056 | 3,566 | 29,268 | - | 35,470
Corporate | 7,810 | 15,763 | 15,817 | 33,818 | 51,754 | - | 124,962
Mortgage / asset-backed securities | 60 | 260 | 213 | 450 | 825 | - | 1,808
Public equities | - | - | - | - | - | 33,725 | 33,725
Mortgages | 4,741 | 11,944 | 10,478 | 7,617 | 9,876 | 9,791 | 54,447
Private placements | 1,534 | 5,093 | 4,986 | 10,463 | 27,500 | 92 | 49,668
Loans to Bank clients | 47 | 13 | 3 | - | - | 2,247 | 2,310
Real estate |  |  |  |  |  |  |
Own use property | - | - | - | - | - | 2,674 | 2,674
Investment property | - | - | - | - | - | 10,589 | 10,589
Other invested assets |  |  |  |  |  |  |
Alternative long-duration assets | 67 | - | 85 | 276 | 524 | 46,911 | 47,863
Various other | - | 20 | - | 3,623 | 657 | 511 | 4,811
Total invested assets | $41,607 | $37,223 | $34,789 | $67,851 | $154,487 | $106,540 | $442,497

(1)Represents contractual maturities. Actual maturities may differ due to prepayment privileges in the applicable contract.

Manulife Financial Corporation – Second Quarter 2025 | 83

Note 4 Derivative and Hedging Instruments
The Company uses derivative financial instruments (“derivatives”) including swaps, forward and futures agreements, and
options to manage current and anticipated exposures to changes in interest rates, foreign exchange rates, commodity prices
and equity market prices, and to replicate exposure to different types of investments. The Company’s policies and procedures
for derivative and hedging instruments can be found in notes 1 and 4 of the Company’s 2024 Annual Consolidated Financial
Statements.
(a)Fair value of derivatives
The following table presents gross notional amount and fair value of derivative instruments by the underlying risk exposure.

|  | June 30, 2025 | December 31, 2024
As at |  | Notional amount | Fair value | Notional amount | Fair value
Type of hedge | Instrument type | Assets | Liabilities | Assets | Liabilities
Qualifying hedge accounting relationships |  |  |  |  |  |
Fair value hedges | Interest rate swaps | $200,744 | $2,595 | $3,452 | $206,181 | $2,734 | $3,533
| Foreign currency swaps | 15,660 | 96 | 2,093 | 14,121 | 145 | 2,114
| Forward contracts | 21,396 | 4 | 2,799 | 25,692 | 74 | 3,420
Cash flow hedges | Interest rate swaps | 8,573 | 23 | 50 | 9,036 | 24 | 48
| Foreign currency swaps | 650 | - | 195 | 650 | - | 216
| Forward contracts | - | - | - | - | - | -
| Equity contracts | 379 | 13 | - | 324 | 6 | -
Net investment hedges | Forward contracts | 576 | - | 8 | 602 | 18 | -
Total derivatives in qualifying hedge accounting relationships | 247,978 | 2,731 | 8,597 | 256,606 | 3,001 | 9,331
Derivatives not designated in qualifying hedge accounting relationships |  |  |
| Interest rate swaps | 110,345 | 2,417 | 2,810 | 110,114 | 2,188 | 2,906
| Interest rate futures | 22,755 | - | - | 9,054 | - | -
| Interest rate options | 5,031 | 14 | - | 5,633 | 16 | -
| Foreign currency swaps | 34,626 | 2,501 | 574 | 33,924 | 1,854 | 272
| Currency rate futures | 2,497 | - | - | 2,238 | - | -
| Forward contracts | 56,769 | 699 | 1,590 | 52,044 | 882 | 1,675
| Equity contracts | 25,250 | 729 | 34 | 25,290 | 724 | 63
| Credit default swaps | 118 | 2 | - | 114 | 2 | -
| Equity futures | 4,368 | - | - | 4,004 | - | -
Total derivatives not designated in qualifying hedge accounting relationships | 261,759 | 6,362 | 5,008 | 242,415 | 5,666 | 4,916
Total derivatives | $509,737 | $9,093 | $13,605 | $499,021 | $8,667 | $14,247

The following tables present the fair values of the derivative instruments by the remaining term to maturity. Fair values
disclosed below do not incorporate the impact of master netting agreements (refer to note 7(f)).

As at June 30, 2025 | Remaining term to maturity | Total
Less than 1 year | 1 to 3 years | 3 to 5 years | Over 5 years
Derivative assets | $912 | $724 | $754 | $6,703 | $9,093
Derivative liabilities | 2,226 | 1,973 | 904 | 8,502 | 13,605
| Remaining term to maturity | Total
As at December 31, 2024 | Less than 1 year | 1 to 3 years | 3 to 5 years | Over 5 years
Derivative assets | $1,171 | $578 | $635 | $6,283 | $8,667
Derivative liabilities | 2,320 | 2,304 | 1,244 | 8,379 | 14,247

Manulife Financial Corporation – Second Quarter 2025 | 84

Fair value and the fair value hierarchy of derivative instruments

As at June 30, 2025 | Fair value | Level 1 | Level 2 | Level 3
Derivative assets |  |  |  |
Interest rate contracts | $5,282 | $- | $5,123 | $159
Foreign exchange contracts | 3,067 | - | 3,066 | 1
Equity contracts | 742 | - | 740 | 2
Credit default swaps | 2 | - | 2 | -
Total derivative assets | $9,093 | $- | $8,931 | $162
Derivative liabilities |  |  |  |
Interest rate contracts | $9,822 | $- | $7,052 | $2,770
Foreign exchange contracts | 3,749 | - | 3,747 | 2
Equity contracts | 34 | - | 26 | 8
Total derivative liabilities | $13,605 | $- | $10,825 | $2,780
As at December 31, 2024 | Fair value | Level 1 | Level 2 | Level 3
Derivative assets |  |  |  |
Interest rate contracts | $5,193 | $- | $5,026 | $167
Foreign exchange contracts | 2,742 | - | 2,742 | -
Equity contracts | 730 | - | 730 | -
Credit default swaps | 2 | - | 2 | -
Total derivative assets | $8,667 | $- | $8,500 | $167
Derivative liabilities |  |  |  |
Interest rate contracts | $10,954 | $- | $7,571 | $3,383
Foreign exchange contracts | 3,230 | - | 3,227 | 3
Equity contracts | 63 | - | 47 | 16
Total derivative liabilities | $14,247 | $- | $10,845 | $3,402

Movement in net derivatives measured at fair value using significant non-market observable inputs (Level 3) is presented in
note 3 (b).
(b)Embedded derivatives
Certain insurance contracts contain features that are classified as embedded derivatives and are measured separately at
FVTPL, including reinsurance contracts related to guaranteed minimum income benefits and contracts containing certain credit
and interest rate features.
Certain reinsurance contracts with guaranteed minimum income benefits contain embedded derivatives requiring separate
measurement at FVTPL as the financial components contained in the reinsurance contracts do not contain significant
insurance risk. Claims expenses and claims paid on the reinsurance assumed offset claims recovered under reinsured
contracts. Reinsured contracts with guaranteed minimum income benefits had a fair value of $257 (December 31, 2024 –
$281).
The Company’s credit and interest rate embedded derivatives promise to pay the returns on a portfolio of assets to the
contract holder. These embedded derivatives contain credit and interest rate risks that are financial risks embedded in the
underlying insurance and investment contract. As at June 30, 2025, these embedded derivative liabilities had a fair value of
$347 (December 31, 2024 – $265).
Other insurance contract features which are classified as embedded derivatives but are exempt from separate measurement
at fair value include variable universal life and variable life products’ minimum guaranteed credited rates, no lapse guarantees,
guaranteed annuitization options, Consumer Price Index indexing of benefits, and segregated fund minimum guarantees other
than reinsurance ceded/assumed guaranteed minimum income benefits. These embedded derivatives are measured and
reported within insurance contract liabilities and are exempt from separate fair value measurement as they contain insurance
risk and/or are closely related to the insurance host contract.

Manulife Financial Corporation – Second Quarter 2025 | 85

Note 5 Insurance and Reinsurance Contract Assets and Liabilities
(a)Movements in carrying amounts of insurance and reinsurance contracts
The following tables present the movement in the net carrying amounts of insurance contracts issued and reinsurance
contracts held during the period for the Company. The changes include amounts that are recognized in income and OCI, and
movements due to cash flows.
Insurance contracts – Analysis by measurement components
The following tables present the movement in the net assets or liabilities for insurance contracts issued, showing estimates of
the present value of future cash flows, risk adjustment, CSM and assets for insurance acquisition cash flows for the six months
ended June 30, 2025 and for the year ended December 31, 2024, and insurance finance (income) expenses for the six months
ended June 30, 2025.

| Estimates of PV of future cash flows | Risk adjustment for non-financial risk | CSM | Assets for insurance acquisition cash flows | Total
Opening General Measurement Method (“GMM”) and Variable Fee Approach (“VFA”) insurance contract assets | $(490) | $144 | $248 | $- | $(98)
Opening GMM and VFA insurance contract liabilities | 334,706 | 22,160 | 26,517 | (61) | 383,322
Opening Premium Allocation Approach (“PAA”) insurance contract net liabilities | 13,201 | 691 | - | (817) | 13,075
Opening insurance contract liabilities for account of segregated fund holders | 126,545 | - | - | - | 126,545
Net opening balance, January 1, 2025 | 473,962 | 22,995 | 26,765 | (878) | 522,844
Changes that relate to current services | (120) | (714) | (1,468) | - | (2,302)
Changes that relate to future services | (2,833) | 589 | 2,464 | - | 220
Changes that relate to past services | (47) | (9) | - | - | (56)
Insurance service result | (3,000) | (134) | 996 | - | (2,138)
Insurance finance (income) expenses | 12,128 | 809 | 201 | - | 13,138
Effects of movements in foreign exchange rates | (12,782) | (1,119) | (962) | - | (14,863)
Total changes in income and OCI | (3,654) | (444) | 235 | - | (3,863)
Total cash flows | 4,376 | - | - | - | 4,376
Movements related to insurance acquisition cash flows | (3) | - | - | 1 | (2)
Change in PAA balance | 390 | 33 | - | 71 | 494
Movements related to insurance contract liabilities for account of segregated fund holders | (3,006) | - | - | - | (3,006)
Net closing balance | 472,065 | 22,584 | 27,000 | (806) | 520,843
Closing GMM and VFA insurance contract assets | (434) | 84 | 170 | - | (180)
Closing GMM and VFA insurance contract liabilities | 335,369 | 21,776 | 26,830 | (60) | 383,915
Closing PAA insurance contract net liabilities | 13,591 | 724 | - | (746) | 13,569
Closing insurance contract liabilities for account of segregated fund insurance holders | 123,539 | - | - | - | 123,539
Net closing balance, June 30, 2025 | $472,065 | $22,584 | $27,000 | $(806) | $520,843

Insurance finance (income) expenses (“IFIE”) | For the six months ended June 30, 2025
Insurance finance (income) expenses for products not under PAA, per disclosure above(1) | $13,138
Insurance finance (income) expenses for products under PAA | 321
Reclassification of derivative OCI to IFIE – cash flow hedges | (41)
Reclassification of derivative (income) loss changes to IFIE – fair value hedge | 749
Total insurance finance (income) expenses from insurance contracts issued | 14,167
Effect of movements in foreign exchange rates | (1,630)
Total insurance finance (income) expenses from insurance contracts issued and effect of movement in foreign exchange rates | $12,537
Portion recognized in (income) expenses, including effects of foreign exchange rates | 8,910
Portion recognized in OCI, including effects of foreign exchange rates | 3,627

(1)The insurance finance (income) expenses reflect effect of time value of money and financial risk, which includes but is not limited to interest accreted using
locked-in rate, changes in interest rates and other financial assumptions, changes in fair value of underlying items of direct participation contracts and effects of
risk mitigation option.

Manulife Financial Corporation – Second Quarter 2025 | 86

| Estimates of PV of future cash flows | Risk adjustment for non-financial risk | CSM | Assets for insurance acquisition cash flows | Total
Opening GMM and VFA insurance contract assets | $(416) | $141 | $131 | $- | $(144)
Opening GMM and VFA insurance contract liabilities | 310,807 | 22,697 | 21,973 | (59) | 355,418
Opening PAA insurance contract net liabilities | 12,712 | 626 | - | (761) | 12,577
Opening insurance contract liabilities for account of segregated fund holders | 114,143 | - | - | - | 114,143
Net opening balance, January 1, 2024 | 437,246 | 23,464 | 22,104 | (820) | 481,994
Changes that relate to current services | (532) | (1,430) | (2,697) | - | (4,659)
Changes that relate to future services | (3,732) | (907) | 5,520 | - | 881
Changes that relate to past services | (8) | (4) | - | - | (12)
Insurance service result | (4,272) | (2,341) | 2,823 | - | (3,790)
Insurance finance (income) expenses | 2,317 | (59) | 354 | - | 2,612
Effects of movements in foreign exchange rates | 21,946 | 1,866 | 1,484 | - | 25,296
Total changes in income and OCI | 19,991 | (534) | 4,661 | - | 24,118
Total cash flows | 3,840 | - | - | - | 3,840
Movements related to insurance acquisition cash flows | (6) | - | - | (2) | (8)
Change in PAA balance | 489 | 65 | - | (56) | 498
Movements related to insurance contract liabilities for account of segregated fund holders | 12,402 | - | - | - | 12,402
Net closing balance | 473,962 | 22,995 | 26,765 | (878) | 522,844
Closing GMM and VFA insurance contract assets | (490) | 144 | 248 | - | (98)
Closing GMM and VFA insurance contract liabilities | 334,706 | 22,160 | 26,517 | (61) | 383,322
Closing PAA insurance contract net liabilities | 13,201 | 691 | - | (817) | 13,075
Closing insurance contract liabilities for account of segregated fund insurance holders | 126,545 | - | - | - | 126,545
Net closing balance, December 31, 2024 | $473,962 | $22,995 | $26,765 | $(878) | $522,844

Reinsurance contracts held – Analysis by measurement components
The following tables present the movement in the net assets or liabilities for reinsurance contracts held, showing estimates of
the present value of future cash flows, risk adjustment and CSM for the six months ended June 30, 2025 and for the year
ended December 31, 2024.

| Estimates of PV of future cash flows | Risk adjustment for non-financial risk | CSM | Total
Opening reinsurance contract held assets | $50,275 | $5,442 | $3,008 | $58,725
Opening reinsurance contract held liabilities | (3,308) | 333 | 333 | (2,642)
Opening PAA reinsurance contract net assets | 249 | 14 | - | 263
Net opening balance, January 1, 2025 | 47,216 | 5,789 | 3,341 | 56,346
Changes that relate to current services | (201) | (270) | (216) | (687)
Changes that relate to future services | (696) | 649 | 223 | 176
Changes that relate to past services | 5 | - | - | 5
Insurance service result | (892) | 379 | 7 | (506)
Insurance finance (income) expenses from reinsurance contracts | 1,406 | 243 | 60 | 1,709
Effects of changes in non-performance risk of reinsurers | 1 | - | - | 1
Effects of movements in foreign exchange rates | (2,768) | (279) | (130) | (3,177)
Total changes in income and OCI | (2,253) | 343 | (63) | (1,973)
Total cash flows | 3,927 | - | - | 3,927
Change in PAA balance | (6) | (1) | - | (7)
Net closing balance | 48,884 | 6,131 | 3,278 | 58,293
Closing reinsurance contract held assets | 52,263 | 5,796 | 2,894 | 60,953
Closing reinsurance contract held liabilities | (3,622) | 322 | 384 | (2,916)
Closing PAA reinsurance contract net assets | 243 | 13 | - | 256
Net closing balance, June 30, 2025 | $48,884 | $6,131 | $3,278 | $58,293

Manulife Financial Corporation – Second Quarter 2025 | 87

| Estimates of PV of future cash flows | Risk adjustment for non- financial risk | CSM | Total
Opening reinsurance contract held assets | $38,156 | $3,685 | $514 | $42,355
Opening reinsurance contract held liabilities | (4,384) | 1,305 | 289 | (2,790)
Opening PAA reinsurance contract net assets | 239 | 16 | - | 255
Net opening balance, January 1, 2024 | 34,011 | 5,006 | 803 | 39,820
Changes that relate to current services | (265) | (536) | (321) | (1,122)
Changes that relate to future services | (3,232) | 972 | 2,631 | 371
Changes that relate to past services | 11 | - | - | 11
Insurance service result | (3,486) | 436 | 2,310 | (740)
Insurance finance (income) expenses from reinsurance contracts | (1,858) | (62) | 78 | (1,842)
Effects of changes in non-performance risk of reinsurers | (58) | - | - | (58)
Effects of movements in foreign exchange rates | 4,069 | 411 | 150 | 4,630
Total changes in income and OCI | (1,333) | 785 | 2,538 | 1,990
Total cash flows | 14,528 | - | - | 14,528
Change in PAA balance | 10 | (2) | - | 8
Net closing balance | 47,216 | 5,789 | 3,341 | 56,346
Closing reinsurance contract held assets | 50,275 | 5,442 | 3,008 | 58,725
Closing reinsurance contract held liabilities | (3,308) | 333 | 333 | (2,642)
Closing PAA reinsurance contract net assets | 249 | 14 | - | 263
Net closing balance, December 31, 2024 | $47,216 | $5,789 | $3,341 | $56,346

(b)Effect of new business recognized in the period
The following table presents components of new business for insurance contracts issued for the periods presented.

| For the six months ended June 30, 2025 | For the year ended December 31, 2024
| Non-onerous | Onerous | Non-onerous | Onerous
New business insurance contracts |  |  |  |
Estimates of present value of cash outflows | $21,202 | $605 | $35,333 | $2,170
Insurance acquisition cash flows | 3,876 | 129 | 6,426 | 398
Claims and other insurance service expenses payable | 17,326 | 476 | 28,907 | 1,772
Estimates of present value of cash inflows | (23,707) | (591) | (39,381) | (2,165)
Risk adjustment for non-financial risk | 475 | 33 | 853 | 99
Contractual service margin | 2,030 | - | 3,195 | -
Amount included in insurance contract liabilities for the period | $- | $47 | $- | $104

The following table presents components of new business for reinsurance contracts held portfolios for the periods presented.

| For the six months ended June 30, 2025 | For the year ended December 31, 2024
New business reinsurance contracts |  |
Estimates of present value of cash outflows | $(7,164) | $(20,816)
Estimates of present value of cash inflows | 6,295 | 18,990
Risk adjustment for non-financial risk | 650 | 1,261
Contractual service margin | 248 | 622
Amount included in reinsurance assets for the period | $29 | $57

(c)Insurance revenue
The following table shows the components of insurance revenue in the Consolidated Statements of Income. Insurance
revenue excludes investment components and loss component. It also does not reflect any financial changes such as effect of
time value of money, which are recognized in insurance finance income and expenses

| three months ended June 30, | six months ended June 30,
For the | 2025 | 2024 | 2025 | 2024
Expected incurred claims and other insurance service result | $3,697 | $3,509 | $7,477 | $7,062
Change in risk adjustment for non-financial risk expired | 347 | 366 | 709 | 732
CSM recognized for services provided | 734 | 642 | 1,468 | 1,282
Recovery of insurance acquisition cash flows | 437 | 313 | 860 | 592
Contracts under PAA | 1,775 | 1,685 | 3,538 | 3,344
Total insurance revenue | $6,990 | $6,515 | $14,052 | $13,012

Manulife Financial Corporation – Second Quarter 2025 | 88

(d)Significant judgements and estimates
Discount rates
The following tables present the spot rates used for discounting liability cash flows.

|  |  |  |  | June 30, 2025
| Currency | Liquidity category | Observable years | Ultimate year | 1 year | 5 years | 10 years | 20 years | 30 years | Ultimate
Canada | CAD | Illiquid | 30 | 70 | 3.07% | 3.82% | 4.88% | 5.16% | 5.72% | 4.40%
|  | Somewhat liquid(1) | 30 | 70 | 3.05% | 3.78% | 4.79% | 5.18% | 5.59% | 4.40%
U.S. | USD | Illiquid | 30 | 70 | 4.23% | 4.48% | 5.80% | 6.46% | 6.33% | 5.15%
|  | Somewhat liquid(1) | 30 | 70 | 4.34% | 4.53% | 5.68% | 6.45% | 6.32% | 5.03%
Japan | JPY | Somewhat liquid(1) | 30 | 70 | 0.87% | 1.42% | 2.03% | 3.00% | 3.76% | 1.60%
Hong Kong | HKD | Illiquid | 15 | 55 | 1.81% | 3.13% | 4.51% | 4.28% | 3.97% | 3.70%

|  |  |  |  | December 31, 2024
| Currency | Liquidity category | Observable years | Ultimate year | 1 year | 5 years | 10 years | 20 years | 30 years | Ultimate
Canada | CAD | Illiquid | 30 | 70 | 3.46% | 3.93% | 4.86% | 5.00% | 5.32% | 4.40%
|  | Somewhat liquid(1) | 30 | 70 | 3.44% | 3.89% | 4.76% | 4.98% | 5.21% | 4.40%
U.S. | USD | Illiquid | 30 | 70 | 4.48% | 5.05% | 6.01% | 6.33% | 6.15% | 5.15%
|  | Somewhat liquid(1) | 30 | 70 | 4.56% | 5.09% | 5.91% | 6.33% | 6.14% | 5.03%
Japan | JPY | Somewhat liquid(1) | 30 | 70 | 0.82% | 1.17% | 1.55% | 2.33% | 2.97% | 1.60%
Hong Kong | HKD | Illiquid | 15 | 55 | 3.73% | 4.36% | 5.23% | 4.70% | 4.17% | 3.70%

(1)Somewhat liquid refers to liquidity level that is between liquid and illiquid. It is higher liquidity than illiquid and lower liquidity than liquid.
(e)Reinsurance transactions
Agreement with Reinsurance Group of America
On November 20, 2024, the Company announced it entered into an agreement with Reinsurance Group of America,
Incorporated (“RGA”) to reinsure policies from the U.S. LTC and U.S. structured settlement legacy blocks. Under the terms of
the transaction, the Company retained responsibility for the administration of the policies, with no intended impact to
policyholders. The transaction was structured as a 75% quota share for both the LTC and structured settlements blocks.
The transaction closed on January 2, 2025, with an effective date of January 1, 2025, with the Company transferring invested
assets of $5.4 billion and reinsuring insurance contract liabilities of $5.2 billion. The Company recognized a reinsurance
contractual service margin of $201.
Agreement with RGA Life Reinsurance Company of Canada
On March 25, 2024, the Company announced it entered into an agreement with RGA Life Reinsurance Company of Canada
(“RGA Canada”) to reinsure policies from its Canadian universal life block. Under the terms of the transaction, the Company
retained responsibility for the administration of the policies, with no intended impact to policyholders. The transaction was
structured as coinsurance with a 100% quota share.
The transaction closed on April 2, 2024, with the Company transferring invested assets measured at FVOCI of $5.5 billion and
reinsuring insurance contract liabilities of $5.4 billion. The Company recognized a reinsurance contractual service margin of
$213.
Agreement with Global Atlantic Financial Group
On December 11, 2023, the Company announced it entered into agreements with Global Atlantic Financial Group Ltd. (“GA”)
to reinsure policies from the U.S. long-term care (“LTC”), U.S. structured settlements, and Japan whole life legacy blocks.
Under the terms of the transaction, the Company retained responsibility for the administration of the policies, with no intended
impact to policyholders. The transaction was structured as coinsurance of an 80% quota share for the LTC block and 100%
quota shares for the other blocks.
The transaction closed on February 22, 2024, with the Company transferring invested assets measured at FVOCI of $13.4
billion and reinsuring insurance and investment contract net liabilities of $13.2 billion. The Company recognized a reinsurance
contractual service margin of $308 and financial assets of $134.

Manulife Financial Corporation – Second Quarter 2025 | 89

Note 6 Investment Contract Assets and Liabilities
(a)Carrying value and fair value of investment contract assets and liabilities
Investment contract liabilities are contractual financial obligations of the Company that do not contain significant insurance risk.
Those contracts are subsequently measured either at fair value or at amortized cost.
The following table presents the gross carrying and fair values of investment contract liabilities, the carrying and fair values of
reinsurance financial assets and the net carrying value and fair values of investment contract liabilities for the periods
presented.

As at | June 30, 2025 | December 31, 2024
Investment contract liabilities, gross of reinsurance | Reinsurance financial assets | Net | Investment contract liabilities, gross of reinsurance | Reinsurance financial assets | Net
Investment contract liabilities, measured at fair value |  |  |  |  |  |
Fair value | $909 | $631 | $278 | $808 | $669 | $139
Investment contract liabilities, measured at amortized cost |  |  |  |  |  |
Carrying value | 13,162 | 968 | 12,194 | 12,690 | 1,052 | 11,638
Fair value | 13,392 | 925 | 12,467 | 12,795 | 978 | 11,817

(b)Fair value measurement
The fair value of investment contract assets and liabilities was determined using Level 2 valuation techniques (December 31,
2024 – Level 2).
Note 7 Risk Management
The Company’s policies and procedures for managing risk related to financial instruments and insurance contracts can be
found in note 8 of the Company’s 2024 Annual Consolidated Financial Statements.
(a)Risk disclosures included in the Second Quarter 2025 MD&A
Market risk sensitivities related to variable annuity and segregated fund guarantees, publicly traded equity performance risk,
interest rate and spread risk and alternative long-duration asset performance risk are disclosed in denoted components in the
“Risk Management and Risk Factors Update” section of the Second Quarter 2025 MD&A. These disclosures are in
accordance with IFRS 7, IFRS 17 “Insurance Contracts” and IAS 34 “Interim Financial Reporting” and are an integral part of
these Interim Consolidated Financial Statements. The risks to which the Company is exposed at the end of the reporting
period are representative of risks it is typically exposed to throughout the reporting period.
(b)Credit risk
Credit risk is the risk of loss due to inability or unwillingness of a borrower, or counterparty, to fulfill its payment obligations.
Worsening regional and global economic conditions, segment or industry sector challenges, or company specific factors could
result in defaults or downgrades and could lead to increased provisions or impairments related to the Company’s general fund
invested assets.
The Company’s exposure to credit risk is managed through risk management policies and procedures which include a defined
credit evaluation and adjudication process, delegated credit approval authorities and established exposure limits by borrower,
corporate connection, credit rating, industry and geographic region. The Company measures derivative counterparty exposure
as net potential credit exposure, which takes into consideration fair values of all transactions with each counterparty, net of any
collateral held, and an allowance to reflect future potential exposure. Reinsurance counterparty exposure is measured
reflecting the level of ceded liabilities.
The Company also ensures where warranted, that mortgages, private placements and loans to Bank clients are secured by
collateral, the nature of which depends on the credit risk of the counterparty.
Credit risk associated with derivative counterparties is discussed in note 7(e).

Manulife Financial Corporation – Second Quarter 2025 | 90

(I)Credit quality
The following tables present financial instruments subject to credit exposure, without considering any collateral held or other
credit enhancements, presenting separately Stage 1, Stage 2, and Stage 3 credit risk profiles, with expected credit loss
(“ECL”) allowances, plus ECL allowances for loan commitments.

As at June 30, 2025 | Stage 1 | Stage 2 | Stage 3 | Total
Debt securities, measured at FVOCI |  |  |  |
Investment grade | $197,107 | $1,325 | $- | $198,432
Non-investment grade | 4,280 | 515 | - | 4,795
Total carrying value | 201,387 | 1,840 | - | 203,227
Allowance for credit losses | 248 | 44 | - | 292
Debt securities, measured at amortized cost |  |  |  |
Investment grade | 1,131 | - | - | 1,131
Non-investment grade | - | - | - | -
Total | 1,131 | - | - | 1,131
Allowance for credit losses | 1 | - | - | 1
Total carrying value, net of allowance | 1,130 | - | - | 1,130
Private placements, measured at FVOCI |  |  |  |
Investment grade | 41,331 | 599 | - | 41,930
Non-investment grade | 5,024 | 967 | 221 | 6,212
Total carrying value | 46,355 | 1,566 | 221 | 48,142
Allowance for credit losses | 148 | 117 | 202 | 467
Commercial mortgages, measured at FVOCI |  |  |  |
AAA | 190 | - | - | 190
AA | 7,218 | - | - | 7,218
A | 14,063 | - | - | 14,063
BBB | 5,547 | 773 | - | 6,320
BB | 58 | 526 | - | 584
B and lower | - | 65 | 59 | 124
Total carrying value | 27,076 | 1,364 | 59 | 28,499
Allowance for credit losses | 55 | 49 | 47 | 151
Commercial mortgages, measured at amortized cost |  |  |  |
AAA | - | - | - | -
AA | - | - | - | -
A | 196 | 1 | - | 197
BBB | - | - | - | -
BB | - | - | - | -
B and lower | 173 | 10 | 9 | 192
Total | 369 | 11 | 9 | 389
Allowance for credit losses | 1 | - | 1 | 2
Total carrying value, net of allowance | 368 | 11 | 8 | 387
Residential mortgages, measured at amortized cost |  |  |  |
Performing | 23,698 | 1,525 | - | 25,223
Non-performing | - | - | 48 | 48
Total | 23,698 | 1,525 | 48 | 25,271
Allowance for credit losses | 3 | 3 | 1 | 7
Total carrying value, net of allowance | 23,695 | 1,522 | 47 | 25,264
Loans to Bank clients, measured at amortized cost |  |  |  |
Performing | 2,460 | 44 | - | 2,504
Non-performing | - | - | 5 | 5
Total | 2,460 | 44 | 5 | 2,509
Allowance for credit losses | 1 | 1 | 1 | 3
Total carrying value, net of allowance | 2,459 | 43 | 4 | 2,506
Other invested assets, measured at FVOCI |  |  |  |
Investment grade | - | - | - | -
Non-investment grade | 371 | - | - | 371
Total carrying value | 371 | - | - | 371
Allowance for credit losses | 23 | - | - | 23
Other invested assets, measured at amortized cost |  |  |  |
Investment grade | 4,166 | - | - | 4,166
Non-investment grade | - | - | - | -
Total | 4,166 | - | - | 4,166
Allowance for credit losses | 1 | - | - | 1
Total carrying value, net of allowance | 4,165 | - | - | 4,165
Loan commitments |  |  |  |
Allowance for credit losses | 13 | 2 | 1 | 16
Total carrying value, net of allowance | $307,006 | $6,346 | $339 | $313,691

Manulife Financial Corporation – Second Quarter 2025 | 91

As at December 31, 2024 | Stage 1 | Stage 2 | Stage 3 | Total
Debt securities, measured at FVOCI |  |  |  |
Investment grade | $197,840 | $1,338 | $- | $199,178
Non-investment grade | 5,625 | 363 | - | 5,988
Total carrying value | 203,465 | 1,701 | - | 205,166
Allowance for credit losses | 228 | 42 | - | 270
Debt securities, measured at amortized cost |  |  |  |
Investment grade | 1,496 | - | - | 1,496
Non-investment grade | - | - | - | -
Total | 1,496 | - | - | 1,496
Allowance for credit losses | 1 | - | - | 1
Total carrying value, net of allowance | 1,495 | - | - | 1,495
Private placements, measured at FVOCI |  |  |  |
Investment grade | 41,796 | 721 | - | 42,517
Non-investment grade | 5,004 | 1,133 | 148 | 6,285
Total carrying value | 46,800 | 1,854 | 148 | 48,802
Allowance for credit losses | 126 | 127 | 123 | 376
Commercial mortgages, measured at FVOCI |  |  |  |
AAA | 205 | - | - | 205
AA | 7,234 | - | - | 7,234
A | 14,035 | - | - | 14,035
BBB | 5,679 | 873 | - | 6,552
BB | 11 | 663 | - | 674
B and lower | - | 21 | 71 | 92
Total carrying value | 27,164 | 1,557 | 71 | 28,792
Allowance for credit losses | 41 | 39 | 55 | 135
Commercial mortgages, measured at amortized cost |  |  |  |
AAA | - | - | - | -
AA | - | - | - | -
A | 225 | 15 | - | 240
BBB | - | - | - | -
BB | - | - | - | -
B and lower | 112 | 5 | 5 | 122
Total | 337 | 20 | 5 | 362
Allowance for credit losses | 1 | 1 | - | 2
Total carrying value, net of allowance | 336 | 19 | 5 | 360
Residential mortgages, measured at amortized cost |  |  |  |
Performing | 22,870 | 1,151 | - | 24,021
Non-performing | - | - | 41 | 41
Total | 22,870 | 1,151 | 41 | 24,062
Allowance for credit losses | 3 | 2 | 1 | 6
Total carrying value, net of allowance | 22,867 | 1,149 | 40 | 24,056
Loans to Bank clients, measured at amortized cost |  |  |  |
Performing | 2,265 | 38 | - | 2,303
Non-performing | - | - | 10 | 10
Total | 2,265 | 38 | 10 | 2,313
Allowance for credit losses | 1 | 1 | 1 | 3
Total carrying value, net of allowance | 2,264 | 37 | 9 | 2,310
Other invested assets, measured at FVOCI |  |  |  |
Investment grade | - | - | - | -
Non-investment grade | 389 | - | - | 389
Total carrying value | 389 | - | - | 389
Allowance for credit losses | 22 | - | - | 22
Other invested assets, measured at amortized cost |  |  |  |
Investment grade | 4,302 | - | - | 4,302
Non-investment grade | - | - | - | -
Total | 4,302 | - | - | 4,302
Allowance for credit losses | 2 | - | - | 2
Total carrying value, net of allowance | 4,300 | - | - | 4,300
Loan commitments |  |  |  |
Allowance for credit losses | 9 | 1 | 1 | 11
Total carrying value, net of allowance | $309,080 | $6,317 | $273 | $315,670

Manulife Financial Corporation – Second Quarter 2025 | 92

(II)Allowance for credit losses
The following tables provide the movement in the allowance for ECL by stage for the six months ended June 30, 2025 and for
the year ended December 31, 2024.

As at June 30, 2025 | Stage 1 | Stage 2 | Stage 3 | Total
Balance, January 1, 2025 | $434 | $213 | $181 | $828
Net re-measurement due to transfers | (2) | (17) | 19 | -
Transfer to stage 1 | 1 | (1) | - | -
Transfer to stage 2 | (3) | 3 | - | -
Transfer to stage 3 | - | (19) | 19 | -
Net originations, purchases, disposals and repayments | 29 | (9) | (7) | 13
Changes to risk, parameters, and models | 45 | 34 | 65 | 144
Foreign exchange and other adjustments | (12) | (5) | (5) | (22)
Balance, end of the period | $494 | $216 | $253 | $963

As at December 31, 2024 | Stage 1 | Stage 2 | Stage 3 | Total
Balance, beginning of the year | $483 | $209 | $237 | $929
Net re-measurement due to transfers | 4 | (22) | 18 | -
Transfer to stage 1 | 12 | (12) | - | -
Transfer to stage 2 | (7) | 7 | - | -
Transfer to stage 3 | (1) | (17) | 18 | -
Net originations, purchases, disposals and repayments | 36 | (8) | (159) | (131)
Changes to risk, parameters, and models | (107) | 21 | 81 | (5)
Foreign exchange and other adjustments | 18 | 13 | 4 | 35
Balance, end of the year | $434 | $213 | $181 | $828

(III)Significant judgements and estimates
The following table shows certain key macroeconomic variables used to estimate the ECL allowances by market. For the base
case, upside and downside scenarios, the projections are provided for the next 12 months and then for the remaining forecast
period, which represents a medium-term view.

| Current quarter | Base case scenario | Upside scenario | Downside scenario 1 | Downside scenario 2
As at June 30, 2025 | Next 12 months | Ensuing 4 years | Next 12 months | Ensuing 4 years | Next 12 months | Ensuing 4 years | Next 12 months | Ensuing 4 years
Canada |  |  |  |  |  |  |  |  |
Gross Domestic Product (GDP), in U.S. $ billions | $2,022 | (0.2)% | 1.7% | 2.6% | 1.6% | (5.2)% | 2.1% | (8.1)% | 2.0%
Unemployment rate | 6.8% | 7.1% | 6.4% | 6.4% | 5.7% | 8.3% | 8.2% | 9.1% | 10.6%
NYMEX Light Sweet Crude Oil, in U.S. dollars, per barrel | 62.0 | 65.0 | 65.0 | 69.0 | 67.0 | 50.0 | 59.0 | 42.0 | 54.0
U.S. |  |  |  |  |  |  |  |  |
Gross Domestic Product (GDP), in U.S. $ billions | $23,570 | 1.5% | 2.4% | 3.0% | 2.5% | (2.2)% | 2.9% | (4.2)% | 2.8%
Unemployment rate | 4.2% | 4.5% | 4.6% | 3.7% | 3.9% | 7.1% | 6.2% | 7.6% | 8.2%
7-10 Year BBB U.S. Corporate Index | 5.9% | 6.2% | 6.3% | 6.0% | 6.3% | 7.2% | 5.9% | 8.0% | 5.7%
Japan |  |  |  |  |  |  |  |  |
Gross Domestic Product (GDP), in JPY billions | ¥562,343 | 0.3% | 0.7% | 2.3% | 0.9% | (4.0)% | 1.0% | (7.4)% | 1.7%
Unemployment rate | 2.5% | 2.5% | 2.3% | 2.4% | 2.1% | 3.0% | 3.0% | 3.2% | 3.5%
Hong Kong |  |  |  |  |  |  |  |  |
Unemployment rate | 3.6% | 3.8% | 3.3% | 3.5% | 3.0% | 4.9% | 4.2% | 5.4% | 5.0%
Hang Seng Index | 22,002 | 1.5% | 2.5% | 12.0% | 2.2% | (23.9)% | 8.3% | (40.3)% | 11.8%
China |  |  |  |  |  |  |  |  |
Gross Domestic Product (GDP), in CNY billions | ¥116,380 | 3.6% | 4.2% | 6.1% | 4.4% | (3.3)% | 4.7% | (6.1)% | 4.0%
FTSE Xinhua A200 Index | 10,355 | (0.1)% | 4.0% | 14.3% | 2.0% | (30.8)% | 10.8% | (40.3)% | 12.6%

Manulife Financial Corporation – Second Quarter 2025 | 93

(IV)Sensitivity to changes in economic assumptions
The following table shows the actual probability-weighted ECL allowance recorded by the Company which results from using
all four macroeconomic scenarios (including the more heavily weighted best estimate baseline scenario, one upside and two
downside scenarios) weighted by probability of occurrence and shows the ECL allowance which would result from using only
the baseline scenario.

As at | June 30, 2025 | December 31, 2024
Probability-weighted ECL allowance | $963 | $828
Baseline ECL allowance | $736 | $629
Difference – in amount | $227 | $199
Difference – in percentage | 23.57% | 24.03%

(c)Securities lending, repurchase and reverse repurchase transactions
As at June 30, 2025, the Company had loaned securities (which are included in invested assets) with a market value of $1,606
(December 31, 2024 – $1,021). The Company holds collateral with a current market value that exceeds the value of securities
lent in all cases.
As at June 30, 2025, the Company had engaged in reverse repurchase transactions of $481 (December 31, 2024 – $1,594)
which are recorded as receivables. In addition, the Company had outstanding repurchase transactions of $109 as at June 30,
2025 (December 31, 2024 – $668) which are recorded as payables.
(d)Credit default swaps
The Company replicates exposure to specific issuers by selling credit protection via credit default swaps (“CDS”) to
complement its cash debt securities investing. The Company does not write CDS protection more than its government bond
holdings.
The following tables present details of the credit default swap protection sold by type of contract and external agency rating for
the underlying reference security.

As at June 30, 2025 | Notional amount(1) | Fair value | Weighted average maturity (in years)(2)
Single name CDS(3),(4) – Corporate debt |  |  |
AA | $23 | $1 | 2
A | 71 | 1 | 2
BBB | 24 | - | 2
Total single name CDS | $118 | $2 | 2
Total CDS protection sold | $118 | $2 | 2
As at December 31, 2024 | Notional amount(1) | Fair value | Weighted average maturity (in years)(2)
Single name CDS(3),(4) – Corporate debt |  |  |
AA | $23 | $1 | 3
A | 68 | 1 | 3
BBB | 23 | - | 2
Total single name CDS | $114 | $2 | 3
Total CDS protection sold | $114 | $2 | 3

(1)Notional amounts represent the maximum future payments the Company would have to pay its counterparties assuming a default of the underlying credit and
zero recovery on the underlying issuer obligations.
(2)The weighted average maturity of the CDS is weighted based on notional amounts.
(3)Ratings are based on S&P where available followed by Moody’s, Morningstar DBRS, and Fitch. If no rating is available from a rating agency, an internally
developed rating is used.
(4)The Company held $nil purchased credit protection as at June 30, 2025 (December 31, 2024 – $nil).
(e)Derivatives
The Company’s point-in-time exposure to losses related to credit risk of a derivative counterparty is limited to the amount of
any net gains that may have accrued with the particular counterparty. Gross derivative counterparty exposure is measured as
the total fair value (including accrued interest) of all outstanding contracts in a gain position excluding any offsetting contracts
in a loss position and the impact of collateral on hand. The Company limits the risk of credit losses from derivative
counterparties by: using investment grade counterparties, entering into master netting arrangements which permit the
offsetting of contracts in a loss position in the case of a counterparty default and entering into Credit Support Annex
agreements whereby collateral must be provided when the exposure exceeds a certain threshold.

Manulife Financial Corporation – Second Quarter 2025 | 94

All contracts are held with or guaranteed by investment grade counterparties, the majority of whom are rated A- or higher. As at
June 30, 2025, the percentage of the Company’s derivative exposure with counterparties rated AA- or higher was 29 per cent
(December 31, 2024 – 30 per cent). As at June 30, 2025, the largest single counterparty exposure, without taking into
consideration the impact of master netting agreements or the benefit of collateral held, was $1,282 (December 31, 2024 –
$1,319). The net exposure to this counterparty, after taking into consideration master netting agreements and the fair value of
collateral held, was $nil (December 31, 2024 – $nil).
(f)Offsetting financial assets and financial liabilities
Certain derivatives, securities lent and repurchase agreements have conditional offset rights. The Company does not offset
these financial instruments in the Consolidated Statements of Financial Position, as the rights of offset are conditional.
In the case of derivatives, collateral is collected from and pledged to counterparties and clearing houses to manage credit risk
exposure in accordance with Credit Support Annexes to swap agreements and clearing agreements. Under master netting
agreements, the Company has a right of offset in the event of default, insolvency, bankruptcy or other early termination.
In the case of reverse repurchase and repurchase transactions, additional collateral may be collected from or pledged to
counterparties to manage credit exposure according to bilateral reverse repurchase or repurchase agreements. In the event of
default by a reverse repurchase transaction counterparty, the Company is entitled to liquidate the collateral held to offset
against the same counterparty’s obligation.
The following tables present the effect of conditional master netting agreements and similar arrangements. Similar
arrangements may include global master repurchase agreements, global master securities lending agreements, and any
related rights to financial collateral pledged or received.

As at June 30, 2025 | Gross amounts of financial instruments(1) | Related amounts not set off in the Consolidated Statements of Financial Position | Net amounts including financing entity(3) | Net amounts excluding financing entity
Amounts subject to enforceable master netting agreements or similar arrangements | Financial and cash collateral pledged (received)(2)
Financial assets |  |  |  |  |
Derivative assets | $9,421 | $(6,125) | $(2,961) | $335 | $335
Securities lending | 1,606 | - | (1,590) | 16 | -
Reverse repurchase agreements | 481 | - | (481) | - | -
Total financial assets | $11,508 | $(6,125) | $(5,032) | $351 | $335
Financial liabilities |  |  |  |  |
Derivative liabilities | (14,248) | 6,125 | 8,021 | (102) | (33)
Repurchase agreements | (109) | - | 105 | (4) | -
Total financial liabilities | $(14,357) | $6,125 | $8,126 | $(106) | $(33)
As at December 31, 2024 | Gross amounts of financial instruments(1) | Related amounts not set off in the Consolidated Statements of Financial Position | Net amounts including financing entity(3) | Net amounts excluding financing entity
Amounts subject to enforceable master netting agreements or similar arrangements | Financial and cash collateral pledged (received)(2)
Financial assets |  |  |  |  |
Derivative assets | $9,048 | $(6,633) | $(1,986) | $429 | $429
Securities lending | 1,021 | - | (1,021) | - | -
Reverse repurchase agreements | 1,594 | (569) | (1,025) | - | -
Total financial assets | $11,663 | $(7,202) | $(4,032) | $429 | $429
Financial liabilities |  |  |  |  |
Derivative liabilities | $(15,026) | $6,633 | $8,305 | $(88) | $(15)
Repurchase agreements | (668) | 569 | 99 | - | -
Total financial liabilities | $(15,694) | $7,202 | $8,404 | $(88) | $(15)

(1)Financial assets and liabilities include accrued interest of $337 and $643, respectively (December 31, 2024 – $388 and $779, respectively).
(2)Financial and cash collateral exclude over-collateralization. As at June 30, 2025, the Company was over-collateralized on OTC derivative assets, OTC
derivative liabilities, securities lending and reverse repurchase agreements and repurchase agreements in the amounts of $526, $2,412, $39 and $nil,
respectively (December 31, 2024 – $641, $2,472, $35 and $nil, respectively). As at June 30, 2025, collateral pledged (received) does not include collateral-in-
transit on OTC instruments or initial margin on exchange-traded contracts or cleared contracts.
(3)Includes derivative contracts entered between the Company and its unconsolidated financing entity. The Company does not exchange collateral on derivative
contracts entered with this entity.

Manulife Financial Corporation – Second Quarter 2025 | 95

The Company also has certain credit linked note assets and variable surplus note liabilities which have unconditional offsetting
rights. Under the netting agreements, the Company has rights of offset including in the event of the Company’s default,
insolvency, or bankruptcy. These financial instruments are offset in the Consolidated Statements of Financial Position.
A credit linked note is a debt instrument the term of which, in this case, is linked to a variable surplus note. A surplus note is a
subordinated debt obligation that often qualifies as surplus (the U.S. statutory equivalent of equity) by some U.S. state
insurance regulators. Interest payments on surplus notes are made after all other contractual payments are made. The
following tables present the effect of unconditional netting.

As at June 30, 2025 | Gross amounts of financial instruments | Amounts subject to an enforceable netting arrangement | Net amounts of financial instruments
Credit linked note | $1,345 | $(1,345) | $-
Variable surplus note | (1,345) | 1,345 | -
As at December 31, 2024 | Gross amounts of financial instruments | Amounts subject to an enforceable netting arrangement | Net amounts of financial instruments
Credit linked note | $1,392 | $(1,392) | $-
Variable surplus note | (1,392) | 1,392 | -

Note 8 Long-Term Debt
(a)Carrying value of long-term debt instruments

|  |  |  | As at
| Issue date | Maturity date | Par value | June 30, 2025 | December 31, 2024
3.050% Senior notes(1) | August 27, 2020 | August 27, 2060 | US$1,155 | $1,575 | $1,659
5.375% Senior notes(1) | March 4, 2016 | March 4, 2046 | US$750 | 1,012 | 1,067
3.703% Senior notes(1) | March 16, 2022 | March 16, 2032 | US$750 | 1,019 | 1,074
2.396% Senior notes(1) | June 1, 2020 | June 1, 2027 | US$200 | 273 | 287
2.484% Senior notes(1) | May 19, 2020 | May 19, 2027 | US$500 | 681 | 717
3.527% Senior notes(1) | December 2, 2016 | December 2, 2026 | US$270 | 368 | 388
4.150% Senior notes(1) | March 4, 2016 | March 4, 2026 | US$1,000 | 1,364 | 1,437
Total |  |  |  | $6,292 | $6,629

(1)These U.S. dollar senior notes have been designated as hedges of the Company’s net investment in its U.S. operations which reduces the earnings volatility
that would otherwise arise from the re-measurement of these senior notes into Canadian dollars.
(b)Fair value measurement
The Company measures its long-term debt at amortized cost in the Consolidated Statements of Financial Position. As at June
30, 2025, the fair value of long-term debt was $5,523 (December 31, 2024 – $5,741). The fair value of long-term debt was
determined using Level 2 valuation techniques (December 31, 2024 – Level 2).

Manulife Financial Corporation – Second Quarter 2025 | 96

Note 9 Capital Instruments
(a)Carrying value of capital instruments

|  |  |  |  | As at
| Issue date | Earliest par redemption date | Maturity date | Par value | June 30, 2025 | December 31, 2024
JHFC Subordinated notes | December 14, 2006 | n/a | December 15, 2036 | $650 | $648 | $648
3.983% MFC Subordinated debentures | May 23, 2025 | May 23, 2030 | May 23, 2035 | $500 | 497 | -
2.818% MFC Subordinated debentures(1) | May 12, 2020 | May 13, 2030 | May 13, 2035 | $1,000 | 997 | 997
4.064%MFC Subordinated debentures | December 6, 2024 | December 6, 2029 | December 6, 2034 | $1,000 | 995 | 995
4.275% MFC Subordinated notes(2) | June 19, 2024 | June 19, 2029 | June 19, 2034 | S$500 | 533 | 524
5.054% MFC Subordinated debentures | February 23, 2024 | February 23, 2029 | February 23, 2034 | $1,100 | 1,096 | 1,095
5.409% MFC Subordinated debentures | March 10, 2023 | March 10, 2028 | March 10, 2033 | $1,200 | 1,197 | 1,196
4.061% MFC Subordinated notes(1),(3) | February 24, 2017 | February 24, 2027 | February 24, 2032 | US$750 | 1,022 | 1,077
2.237% MFC Subordinated debentures(4) | May 12, 2020 | May 12, 2025 | May 12, 2030 | $1,000 | - | 1,000
Total |  |  |  |  | $6,985 | $7,532

(1)Capital instruments with interest rates resetting in the future that reference the Canadian Dollar Offered Rate (“CDOR”) and the U.S. Dollar Mid-Swap rate
(based on London Interbank Offered Rate (LIBOR)) amount to $997 and $1,022, respectively (2024 – $1,997 and $1,077, respectively). Future rate resets for
these capital instruments may rely on alternative reference rates such as CORRA, the alternative rate for CDOR, and the Secured Overnight Financing Rate
(SOFR) the alternative rate for USD LIBOR. As at June 30, 2025, the interest rate benchmark reform has not resulted in material changes in the Company’s risk
management strategy.
(2)Designated as a hedge of the Company’s net investment in its Singapore operations which reduces the earnings volatility that would otherwise arise from the
re-measurement of the subordinated notes into Canadian dollars.
(3)Designated as a hedge of the Company’s net investment in its U.S. operations which reduces the earnings volatility that would otherwise arise from the re-
measurement of the subordinated notes into Canadian dollars.
(4)T he 2.237% MFC Subordinated debentures were redeemed at par on May 12, 2025.
(b)Fair value measurement
The Company measures capital instruments at amortized cost in the Consolidated Statements of Financial Position. As at
June 30, 2025, the fair value of capital instruments was $7,093 (December 31, 2024 – $7,575). The fair value of capital
instruments was determined using Level 2 valuation techniques (December 31, 2024 – Level 2).

Manulife Financial Corporation – Second Quarter 2025 | 97

Note 10 Equity Capital and Earnings Per Share
(a)Preferred shares and other equity instruments
The following table presents information about the outstanding preferred shares and other equity instruments as at June 30,
2025 and December 31, 2024.

| Issue date | Annual dividend / distribution rate(1) | Earliest redemption date(2),(3) | Number of shares (in millions) | Face amount | Net amount(4) as at
June 30, 2025 | December 31, 2024
Preferred shares |  |  |  |  |  |  |
Class A preferred shares |  |  |  |  |  |  |
Series 2 | February 18, 2005 | 4.650% | n/a | 14 | $350 | $344 | $344
Series 3 | January 3, 2006 | 4.500% | n/a | 12 | 300 | 294 | 294
Class 1 preferred shares |  |  |  |  |  |  |
Series 3(5),(6) | March 11, 2011 | 2.348% | June 19, 2026 | 7 | 163 | 160 | 160
Series 4(7) | June 20, 2016 | floating | June 19, 2026 | 1 | 37 | 36 | 36
Series 9(5),(6) | May 24, 2012 | 5.978% | September 19, 2027 | 10 | 250 | 244 | 244
Series 11(5),(6) | December 4, 2012 | 6.159% | March 19, 2028 | 8 | 200 | 196 | 196
Series 13(5),(6) | June 21, 2013 | 6.350% | September 19, 2028 | 8 | 200 | 196 | 196
Series 15(5),(6) | February 25, 2014 | 5.775% | June 19, 2029 | 8 | 200 | 195 | 195
Series 17(5),(6) | August 15, 2014 | 5.542% | December 19, 2029 | 14 | 350 | 343 | 343
Series 19(5),(6),(8) | December 3, 2014 | 5.169% | March 19, 2030 | 10 | 250 | 246 | 246
Series 25(5),(6) | February 20, 2018 | 5.942% | June 19, 2028 | 10 | 250 | 245 | 245
Other equity instruments |  |  |  |  |  |  |
Limited recourse capital notes (LRCN)(9) |  |  |  |  |  |  |
Series 1(10) | February 19, 2021 | 3.375% | May 19, 2026 | n/a | 2,000 | 1,982 | 1,982
Series 2(10) | November 12, 2021 | 4.100% | February 19, 2027 | n/a | 1,200 | 1,189 | 1,189
Series 3(10) | June 16, 2022 | 7.117% | June 19, 2027 | n/a | 1,000 | 990 | 990
Total |  |  |  | 102 | $6,750 | $6,660 | $6,660

(1)Holders of Class A and Class 1 preferred shares are entitled to receive non-cumulative preferential cash dividends on a quarterly basis, as and when declared
by the Board of Directors. Non-deferrable distributions are payable to all LRCN holders semi-annually at the Company’s discretion.
(2)Redemption of all preferred shares is subject to regulatory approval. MFC may redeem each series, in whole or in part, at par, on the earliest redemption dates
or every five years thereafter, except for Class A Series 2, Class A Series 3 and Class 1 Series 4 preferred shares. Class A Series 2 and Series 3 preferred
shares are past their respective earliest redemption date and MFC may redeem these preferred shares, in whole or in part, at par at any time, subject to
regulatory approval. MFC may redeem the Class 1 Series 4 preferred shares, in whole or in part, at any time, at $25.00 per share if redeemed on June 19,
2026 (the earliest redemption date) and on June 19 every five years thereafter, or at $25.50 per share if redeemed on any other date after June 19, 2021,
subject to regulatory approval.
(3)Redemption of all LRCN series is subject to regulatory approval. MFC may at its option redeem each series in whole or in part, at a redemption price equal to
par, together with accrued and unpaid interest. The redemption period for Series 1 is every five years during the period from May 19 to and including June 19,
commencing in 2026. The redemption period for Series 2 is every five years during the period from February 19 to and including March 19, commencing in
2027. After the first redemption date, the redemption period for Series 3 is every five years during the period from May 19 to and including June 19,
commencing in 2032.
(4)Net of after-tax issuance costs.
(5)On the earliest redemption date and every five years thereafter, the annual dividend rate will be reset to the five-year Government of Canada bond yield plus a
yield specified for each series. The specified yield for Class 1 preferred shares is: Series 3 – 1.41%, Series 9 – 2.86%, Series 11 – 2.61%, Series 13 – 2.22%,
Series 15 – 2.16%, Series 17 – 2.36%, Series 19 – 2.30%, and Series 25 – 2.55%.
(6)On the earliest redemption date and every five years thereafter, Class 1 preferred shares are convertible at the option of the holder into a new series that is one
number higher than their existing series, and the holders are entitled to non-cumulative preferential cash dividends, payable quarterly if and when declared by
the Board of Directors, at a rate equal to the three-month Government of Canada Treasury bill yield plus the rate specified in footnote 5 above.
(7)The floating dividend rate for the Class 1 Series 4 shares equals the three-month Government of Canada Treasury bill yield plus 1.41%.
(8)MFC did not exercise its right to redeem the outstanding Class 1 Shares Series 19 on March 19, 2025, which was the earliest redemption date. The dividend
rate was reset as specified in footnote 5 above to an annual fixed rate of 5.169%, for a five-year period commencing on March 20, 2025.
(9)Non-payment of distributions or principal on any LRCN series when due will result in a recourse event. The recourse of each noteholder will be limited to their
proportionate amount of the Limited Recourse Trust’s assets which comprise of Class 1 Series 27 preferred shares for LRCN Series 1, Class 1 Series 28
preferred shares for LRCN Series 2, and Class 1 Series 29 preferred shares for LRCN Series 3. All claims of the holders of LRCN series against MFC will be
extinguished upon receipt of the corresponding trust assets. The Class 1 Series 27, Class 1 Series 28 and Class 1 Series 29 preferred shares are eliminated on
consolidation while being held in the Limited Recourse Trust.
(10)The LRCN Series 1 pay a distribution at a fixed rate of 3.375% payable semi-annually, until June 18, 2026; on June 19, 2026 and every five years thereafter
until June 19, 2076, the rate will be reset at a rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 2.839%. The LRCN
Series 2 pay a distribution at a fixed rate of 4.10% payable semi-annually, until March 18, 2027; on March 19, 2027 and every five years thereafter until March
19, 2077, the rate will be reset at a rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 2.704%. The LRCN Series 3 pay
a distribution at a fixed rate of 7.117% payable semi-annually, until June 18, 2027; on June 19, 2027 and every five years thereafter until June 19, 2077, the rate
will be reset at a rate equal to the five-year Government of Canada yield as defined in the prospectus, plus 3.95%.
(b)Common shares
As at June 30, 2025, there were 10 million outstanding stock options and deferred share units that entitle the holders to
receive common shares or payment in cash or common shares, at the option of the holders (December 31, 2024 – 12 million).

Manulife Financial Corporation – Second Quarter 2025 | 98

The following table presents changes in common shares issued and outstanding.

Number of common shares (in millions) | For the six months ended June 30, 2025 | For the year ended December 31, 2024
Balance, beginning of period | 1,729 | 1,806
Repurchased for cancellation | (27) | (83)
Issued on exercise of stock options and deferred share units | 1 | 6
Balance, end of period | 1,703 | 1,729

Normal course issuer bid
On February 19, 2025, the Company received approval from the Toronto Stock Exchange to launch a normal course issuer bid
(“NCIB”), permitting the purchase for cancellation of up to 51.5 million common shares, representing approximately 3.0% of
common shares outstanding. Purchases under the NCIB commenced on February 24, 2025 and may continue until February
23, 2026, when the NCIB expires, or such earlier date as the Company completes its purchases.
During the six months ended June 30, 2025, the Company purchased for cancellation 26.6 million shares (2024 – 24.7 million
shares) for $1,140, including 20.9 million shares for $892 under the current NCIB, and 5.7 million shares for $248 under the
previous NCIB, incurring $20 tax on net repurchases of equity (2024 – $840 under NCIB and $15 tax). Of this, $318 was
recorded in Common shares a nd $842 was recorded in Shareholders and other equity holders’ retained earnings in the
Consolidated Statements of Changes in Equity (2024 – $295 and $560, respectively).
(c)Earnings per share
The following is a reconciliation of the denominator (number of shares) in the calculation of basic and diluted earnings per
common share.

For the | three months ended June 30, | six months ended June 30,
2025 | 2024 | 2025 | 2024
Weighted average number of common shares (in millions) | 1,710 | 1,793 | 1,717 | 1,799
Dilutive stock-based awards(1) (in millions) | 5 | 6 | 5 | 6
Weighted average number of diluted common shares (in millions) | 1,715 | 1,799 | 1,722 | 1,805

(1)The dilutive effect of stock-based awards was calculated using the treasury stock method. This method calculates the number of incremental shares by
assuming the outstanding stock-based awards are (i) exercised and (ii) then reduced by the number of shares assumed to be repurchased from the issuance
proceeds, using the average market price of MFC common shares for the period.
Note 11 Revenue from Service Contracts
The Company provides investment management services, transaction processing and administrative services and distribution
and related services to proprietary and third-party investment funds, retirement plans, group benefit plans, institutional
investors and other arrangements. The Company also provides real estate management services to tenants of the Company’s
investment properties.
The Company’s service contracts generally impose single performance obligations, each consisting of a series of similar
related services for each customer.
The Company’s performance obligations within service arrangements are generally satisfied over time as the customer
simultaneously receives and consumes the benefits of the services rendered, measured using an output method. Fees related
to services provided typically include variable consideration and the related revenue is recognized to the extent that it is highly
probable that a significant reversal in the amount of cumulative revenue recognized will not occur.
Asset-based fees vary with asset values of accounts under management, subject to market conditions and investor behaviours
beyond the Company’s control. Transaction processing and administrative fees vary with activity volumes, also beyond the
Company’s control. Some fees, including distribution fees, are based on account balances and transaction volumes. Fees
related to account balances and transaction volumes are measured daily.
Real estate management service fees include fixed portions plus recovery of variable costs of services rendered to tenants.
The Company has determined that its service contracts have no significant financing components because fees are collected
monthly. The Company has no significant contract assets or contract liabilities.

Manulife Financial Corporation – Second Quarter 2025 | 99

The following tables present revenue from service contracts by service lines and reporting segments as disclosed in note 14.

For the three months ended June 30, 2025 | Global WAM | Asia, Canada, U.S., and Corporate and Other | Total
Investment management and other related fees | $916 | $(91) | $825
Transaction processing, administration, and service fees | 766 | 72 | 838
Distribution fees and other | 216 | (22) | 194
Total included in other revenue | 1,898 | (41) | 1,857
Revenue from non-service lines | 4 | (10) | (6)
Total other revenue | $1,902 | $(51) | $1,851
Real estate management services included in net investment income | $- | $60 | $60

For the three months ended June 30, 2024 | Global WAM | Asia, Canada, U.S., and Corporate and Other | Total
Investment management and other related fees | $875 | $(124) | $751
Transaction processing, administration, and service fees | 711 | 68 | 779
Distribution fees and other | 222 | 9 | 231
Total included in other revenue | 1,808 | (47) | 1,761
Revenue from non-service lines | 1 | 87 | 88
Total other revenue | $1,809 | $40 | $1,849
Real estate management services included in net investment income | $- | $68 | $68

For the six months ended June 30, 2025 | Global WAM | Asia, Canada, U.S., and Corporate and Other | Total
Investment management and other related fees | $1,888 | $(215) | $1,673
Transaction processing, administration, and service fees | 1,545 | 145 | 1,690
Distribution fees and other | 436 | (8) | 428
Total included in other revenue | 3,869 | (78) | 3,791
Revenue from non-service lines | 8 | 38 | 46
Total other revenue | $3,877 | $(40) | $3,837
Real estate management services included in net investment income | $- | $133 | $133

For the six months ended June 30, 2024 | Global WAM | Asia, Canada, U.S., and Corporate and Other | Total
Investment management and other related fees | $1,725 | $(242) | $1,483
Transaction processing, administration, and service fees | 1,393 | 149 | 1,542
Distribution fees and other | 444 | 24 | 468
Total included in other revenue | 3,562 | (69) | 3,493
Revenue from non-service lines | (3) | 167 | 164
Total other revenue | $3,559 | $98 | $3,657
Real estate management services included in net investment income | $- | $152 | $152

Manulife Financial Corporation – Second Quarter 2025 | 100

Note 12 Employee Future Benefits
The Company maintains defined contribution and defined benefit pension plans, and other post-employment plans for eligible
employees and agents. The following table presents information about the financial impacts of the Company’s material pension
and retiree welfare plans in the U.S. and Canada.

For the three months ended June 30, | Pension plans | Retiree welfare plans
2025 | 2024 | 2025 | 2024
Defined benefit current service cost(1) | $11 | $11 | $- | $-
Defined benefit administrative expenses | 2 | 3 | 1 | 1
Service cost | 13 | 14 | 1 | 1
Interest on net defined benefit (asset) liability | - | 1 | (2) | (1)
Defined benefit cost | 13 | 15 | (1) | -
Defined contribution cost | 25 | 23 | - | -
Net benefit cost recognized in the Consolidated Statements of Financial Position | $38 | $38 | $(1) | $-
Actuarial (gain) loss on economic assumption changes | $(23) | $(35) | $(1) | $(6)
Investment (gain) loss (excluding interest income) | 35 | 3 | 7 | 1
Change in effect of asset limit | (1) | 3 | - | -
Re-measurement (gain) loss recorded in AOCI, net of tax | $11 | $(29) | $6 | $(5)

(1)There are no significant current service costs for the retiree welfare plans as they are closed and mostly frozen. The re-measurement gain or loss on these
plans is due to the volatility of discount rates and investment returns.

For the six months ended June 30, | Pension plans | Retiree welfare plans
2025 | 2024 | 2025 | 2024
Defined benefit current service cost(1) | $23 | $22 | $- | $-
Defined benefit administrative expenses | 5 | 5 | 1 | 1
Service cost | 28 | 27 | 1 | 1
Interest on net defined benefit (asset) liability | - | 2 | (4) | (2)
Defined benefit cost | 28 | 29 | (3) | (1)
Defined contribution cost | 54 | 52 | - | -
Net benefit cost recognized in the Consolidated Statements of Financial Position | $82 | $81 | $(3) | $(1)
Actuarial (gain) loss on economic assumption changes | $1 | $(83) | $3 | $(14)
Investment (gain) loss (excluding interest income) | 44 | 14 | 1 | -
Change in effect of asset limit | - | 3 | - | -
Re-measurement (gain) loss recorded in AOCI, net of tax | $45 | $(66) | $4 | $(14)

(1)There are no significant current service costs for the retiree welfare plans as they are closed and mostly frozen. The re-measurement gain or loss on these
plans is due to the volatility of discount rates and investment returns.
Note 13 Commitments and Contingencies
(a)Legal proceedings
The Company is regularly involved in legal actions, both as a defendant and as a plaintiff. The legal actions where the
Company is a party ordinarily relate to its activities as a provider of insurance protection or wealth management products,
reinsurance, or in its capacity as an investment adviser, employer, or taxpayer. Other life insurers and asset managers,
operating in the jurisdictions in which the Company does business, have been subject to a wide variety of other types of
actions, some of which resulted in substantial judgments or settlements against the defendants; it is possible that the
Company may become involved in similar actions in the future. In addition, government and regulatory bodies in Canada, the
United States, Asia and other jurisdictions where the Company conducts business regularly make inquiries and, from time to
time, require the production of information or conduct examinations concerning the Company’s compliance with, among other
things, insurance laws, securities laws, and laws governing the activities of broker-dealers.
In September 2023, a lawsuit was initiated against the Company in the U.S. District Court of the Southern District of New York
as a putative class action on behalf of all current and former owners of universal life insurance policies issued by the Company
that state that “cost of insurance rates will be based on future expectations that include taxes.” The Plaintiff’s theory is that the
Company impermissibly failed to decrease the cost of insurance rates charged to these policy owners after the implementation
of the Tax Cuts and Jobs Act of 2018. It is too early in the litigation to offer any reliable opinion about the scope of the class
policies that may be at issue or the likely outcome.
(b)Guarantees
(I)Guarantee regarding Manulife Finance (Delaware), L.P. (“MFLP”)
MFC has guaranteed the payment of amounts on the $650 subordinated debentures due on December 15, 2041 issued by
MFLP, a wholly owned unconsolidated financing entity.

Manulife Financial Corporation – Second Quarter 2025 | 101

The following tables present certain condensed consolidated financial information for MFC and MFLP.
Condensed Consolidated Statements of Income Information

For the three months ended June 30, 2025 | MFC (Guarantor) | Subsidiaries on a combined basis | Consolidation adjustments | Total consolidated amounts | MFLP
Total insurance service result | $- | $1,006 | $- | $1,006 | $-
Total investment result | 260 | 1,548 | (542) | 1,266 | 13
Other revenue | 2 | 1,850 | (1) | 1,851 | (13)
Net income (loss) attributed to shareholders and other equity holders | 1,789 | 1,614 | (1,614) | 1,789 | (8)

For the three months ended June 30, 2024 | MFC (Guarantor) | Subsidiaries on a combined basis | Consolidation adjustments | Total consolidated amounts | MFLP
Total insurance service result | $- | $1,037 | $- | $1,037 | $-
Total investment result | 183 | 691 | (361) | 513 | 13
Other revenue | (4) | 1,852 | 1 | 1,849 | 3
Net income (loss) attributed to shareholders and other equity holders | 1,042 | 950 | (950) | 1,042 | 4

For the six months ended June 30, 2025 | MFC (Guarantor) | Subsidiaries on a combined basis | Consolidation adjustments | Total consolidated amounts | MFLP
Total insurance service result | $- | $2,049 | $- | $2,049 | $-
Total investment result | 264 | 1,184 | (546) | 902 | 25
Other revenue | 3 | 3,835 | (1) | 3,837 | (13)
Net income (loss) attributed to shareholders and other equity holders | 2,274 | 2,196 | (2,196) | 2,274 | (6)

For the six months ended June 30, 2024 | MFC (Guarantor) | Subsidiaries on a combined basis | Consolidation adjustments | Total consolidated amounts | MFLP
Total insurance service result | $- | $2,015 | $- | $2,015 | $-
Total investment result | 188 | 1,036 | (363) | 861 | 27
Other revenue | (7) | 3,663 | 1 | 3,657 | 9
Net income (loss) attributed to shareholders and other equity holders | 1,908 | 1,901 | (1,901) | 1,908 | 13

Condensed Consolidated Statements of Financial Position Information

As at June 30, 2025 | MFC (Guarantor) | Subsidiaries on a combined basis | Consolidation adjustments | Total consolidated amounts | MFLP
Total invested assets | $152 | $438,314 | $- | $438,466 | $31
Insurance contract assets | - | 183 | - | 183 | -
Reinsurance contract held assets | - | 61,235 | - | 61,235 | -
Total other assets | 99,441 | 115,063 | (173,477) | 41,027 | 977
Segregated funds net assets | - | 436,558 | - | 436,558 | -
Insurance contract liabilities, excluding those for account of segregated fund holders | - | 397,487 | - | 397,487 | -
Reinsurance contract held liabilities | - | 2,942 | - | 2,942 | -
Investment contract liabilities | - | 14,071 | - | 14,071 | -
Total other liabilities | 50,513 | 127,528 | (102,883) | 75,158 | 729
Insurance contract liabilities for account of segregated fund holders | - | 123,539 | - | 123,539 | -
Investment contract liabilities for account of segregated fund holders | - | 313,019 | - | 313,019 | -

Manulife Financial Corporation – Second Quarter 2025 | 102

As at December 31, 2024 | MFC (Guarantor) | Subsidiaries on a combined basis | Consolidation adjustments | Total consolidated amounts | MFLP
Total invested assets | $126 | $442,371 | $- | $442,497 | $16
Insurance contract assets | - | 102 | - | 102 | -
Reinsurance contract held assets | - | 59,015 | - | 59,015 | -
Total other assets | 65,898 | 46,450 | (71,132) | 41,216 | 995
Segregated funds net assets | - | 435,988 | - | 435,988 | -
Insurance contract liabilities, excluding those for account of segregated fund holders | - | 396,401 | - | 396,401 | -
Reinsurance contract held liabilities | - | 2,669 | - | 2,669 | -
Investment contract liabilities | - | 13,498 | - | 13,498 | -
Total other liabilities | 15,052 | 63,825 | (1,575) | 77,302 | 726
Insurance contract liabilities for account of segregated fund holders | - | 126,545 | - | 126,545 | -
Investment contract liabilities for account of segregated fund holders | - | 309,443 | - | 309,443 | -

(II)Guarantees regarding John Hancock Life Insurance Company (U.S.A.) (“JHUSA”)
Details of guarantees regarding certain securities issued or to be issued by JHUSA are outlined in note 16.
Note 14 Segment and Geographic Reporting
The Company’s reporting segments are Asia, Canada, U.S., Global WAM and Corporate and Other. Each reporting segment is
responsible for managing its operating results, developing products, and defining strategies for services and distribution based
on the profile and needs of its businesses and markets. The Company’s significant product and service offerings by the
reporting segments are mentioned below.
Wealth and asset management businesses (Global WAM) – branded as Manulife Investment Management, provides
investment advice and innovative solutions to retirement, retail, and institutional clients. Products and services are distributed
through multiple distribution channels, including agents and brokers affiliated with the Company, independent securities
brokerage firms and financial advisors, pension plan consultants and banks.
Insurance and annuity products (Asia, Canada and U.S.) – include a variety of individual life insurance, individual and
group long-term care insurance, and guaranteed and partially guaranteed annuity products. Products are distributed through
multiple distribution channels, including insurance agents, brokers, banks, financial planners and direct marketing. Manulife
Bank of Canada offers a variety of deposit and credit products to Canadian customers.
Corporate and Other segment – comprised of investment performance of assets backing capital, net of amounts allocated to
operating segments; costs incurred by the corporate office related to shareholder activities (not allocated to the operating
segments); financing costs; property and casualty reinsurance business; and run-off reinsurance operations including variable
annuities and accident and health. In addition, consolidations and eliminations of transactions between operating segments
are also included.

Manulife Financial Corporation – Second Quarter 2025 | 103

The following tables present results by reporting segments and by geographical location.
(a)By Segment

For the three months ended June 30, 2025 | Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Insurance service result |  |  |  |  |  |
Life, health and property and casualty insurance | $553 | $312 | $15 | $- | $26 | $906
Annuities and pensions | 18 | 58 | 24 | - | - | 100
Total insurance service result | 571 | 370 | 39 | - | 26 | 1,006
Net investment income (loss) | 3,521 | 1,273 | 1,776 | (114) | 340 | 6,796
Insurance finance income (expenses) |  |  |  |  |  |
Life, health and property and casualty insurance | (2,792) | (1,083) | (1,953) | - | 3 | (5,825)
Annuities and pensions | 358 | 202 | 92 | 2 | - | 654
Total insurance finance income (expenses) | (2,434) | (881) | (1,861) | 2 | 3 | (5,171)
Reinsurance finance income (expenses) |  |  |  |  |  |
Life, health and property and casualty insurance | (350) | 69 | 267 | - | 4 | (10)
Annuities and pensions | (52) | - | (137) | - | - | (189)
Total reinsurance finance income (expenses) | (402) | 69 | 130 | - | 4 | (199)
Decrease (increase) in investment contract liabilities | - | (28) | (35) | (96) | (1) | (160)
Net segregated fund investment result | - | - | - | - | - | -
Total investment result | 685 | 433 | 10 | (208) | 346 | 1,266
Other revenue | (92) | 85 | 33 | 1,902 | (77) | 1,851
Other expenses | (66) | (172) | (46) | (1,118) | (102) | (1,504)
Interest expenses | (6) | (190) | (5) | (1) | (156) | (358)
Net income (loss) before income taxes | 1,092 | 526 | 31 | 575 | 37 | 2,261
Income tax (expenses) recoveries | (149) | (115) | 5 | (93) | 14 | (338)
Net income (loss) | 943 | 411 | 36 | 482 | 51 | 1,923
Less net income (loss) attributed to: |  |  |  |  |  |
Non-controlling interests | 49 | - | - | - | - | 49
Participating policyholders | 64 | 21 | - | - | - | 85
Net income (loss) attributed to shareholders and other equity holders | $830 | $390 | $36 | $482 | $51 | $1,789

For the three months ended June 30, 2024 | Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Insurance service result |  |  |  |  |  |
Life, health and property and casualty insurance | $509 | $283 | $130 | $- | $17 | $939
Annuities and pensions | 11 | 60 | 27 | - | - | 98
Total insurance service result | 520 | 343 | 157 | - | 17 | 1,037
Net investment income (loss) | 2,424 | 685 | 1,237 | (154) | 320 | 4,512
Insurance finance income (expenses) |  |  |  |  |  |
Life, health and property and casualty insurance | (1,257) | (632) | (1,387) | - | 1 | (3,275)
Annuities and pensions | (1,196) | (71) | (81) | - | - | (1,348)
Total insurance finance income (expenses) | (2,453) | (703) | (1,468) | - | 1 | (4,623)
Reinsurance finance income (expenses) |  |  |  |  |  |
Life, health and property and casualty insurance | 41 | 200 | 266 | - | (5) | 502
Annuities and pensions | 264 | (1) | (11) | - | - | 252
Total reinsurance finance income (expenses) | 305 | 199 | 255 | - | (5) | 754
Decrease (increase) in investment contract liabilities | (5) | (20) | (18) | (86) | (1) | (130)
Net segregated fund investment result | - | - | - | - | - | -
Total investment result | 271 | 161 | 6 | (240) | 315 | 513
Other revenue | 63 | 73 | 27 | 1,809 | (123) | 1,849
Other expenses | (83) | (170) | (31) | (1,184) | (121) | (1,589)
Interest expenses | (8) | (266) | (3) | (2) | (147) | (426)
Net income (loss) before income taxes | 763 | 141 | 156 | 383 | (59) | 1,384
Income tax (expenses) recoveries | (115) | (39) | (21) | (32) | (45) | (252)
Net income (loss) | 648 | 102 | 135 | 351 | (104) | 1,132
Less net income (loss) attributed to: |  |  |  |  |  |
Non-controlling interests | 38 | - | - | 1 | - | 39
Participating policyholders | 28 | 23 | - | - | - | 51
Net income (loss) attributed to shareholders and other equity holders | $582 | $79 | $135 | $350 | $(104) | $1,042

Manulife Financial Corporation – Second Quarter 2025 | 104

For the six months ended June 30, 2025 | Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Insurance service result |  |  |  |  |  |
Life, health and property and casualty insurance | $1,211 | $570 | $141 | $- | $(9) | $1,913
Annuities and pensions | (26) | 117 | 45 | - | - | 136
Total insurance service result | 1,185 | 687 | 186 | - | (9) | 2,049
Net investment income (loss) | 4,604 | 2,481 | 2,482 | (270) | 445 | 9,742
Insurance finance income (expenses) |  |  |  |  |  |
Life, health and property and casualty insurance | (4,116) | (1,902) | (3,652) | - | 10 | (9,660)
Annuities and pensions | 1,171 | 57 | (480) | 2 | - | 750
Total insurance finance income (expenses) | (2,945) | (1,845) | (4,132) | 2 | 10 | (8,910)
Reinsurance finance income (expenses) |  |  |  |  |  |
Life, health and property and casualty insurance | (444) | 141 | 589 | - | 4 | 290
Annuities and pensions | (187) | - | 218 | - | - | 31
Total reinsurance finance income (expenses) | (631) | 141 | 807 | - | 4 | 321
Decrease (increase) in investment contract liabilities | 1 | (46) | 3 | (212) | 3 | (251)
Net segregated fund investment result | - | - | - | - | - | -
Total investment result | 1,029 | 731 | (840) | (480) | 462 | 902
Other revenue | (91) | 159 | 58 | 3,877 | (166) | 3,837
Other expenses | (148) | (342) | (96) | (2,292) | (213) | (3,091)
Interest expenses | (13) | (404) | (8) | (2) | (310) | (737)
Net income (loss) before income taxes | 1,962 | 831 | (700) | 1,103 | (236) | 2,960
Income tax (expenses) recoveries | (280) | (174) | 167 | (177) | 50 | (414)
Net income (loss) | 1,682 | 657 | (533) | 926 | (186) | 2,546
Less net income (loss) attributed to: |  |  |  |  |  |
Non-controlling interests | 116 | - | - | 1 | (2) | 115
Participating policyholders | 112 | 45 | - | - | - | 157
Net income (loss) attributed to shareholders and other equity holders | $1,454 | $612 | $(533) | $925 | $(184) | $2,274
Total assets | $216,565 | $162,365 | $245,666 | $310,125 | $42,748 | $977,469

For the six months ended June 30, 2024 | Asia | Canada | U.S. | Global WAM | Corporate and Other | Total
Insurance service result |  |  |  |  |  |
Life, health and property and casualty insurance | $1,073 | $511 | $225 | $- | $45 | $1,854
Annuities and pensions | (6) | 116 | 51 | - | - | 161
Total insurance service result | 1,067 | 627 | 276 | - | 45 | 2,015
Net investment income (loss) | 4,652 | 1,889 | 2,142 | (331) | 653 | 9,005
Insurance finance income (expenses) |  |  |  |  |  |
Life, health and property and casualty insurance | (2,697) | (1,687) | (2,998) | - | 25 | (7,357)
Annuities and pensions | (2,324) | 254 | 346 | - | - | (1,724)
Total insurance finance income (expenses) | (5,021) | (1,433) | (2,652) | - | 25 | (9,081)
Reinsurance finance income (expenses) |  |  |  |  |  |
Life, health and property and casualty insurance | (143) | 195 | 742 | - | (5) | 789
Annuities and pensions | 850 | (1) | (460) | - | - | 389
Total reinsurance finance income (expenses) | 707 | 194 | 282 | - | (5) | 1,178
Decrease (increase) in investment contract liabilities | (13) | (36) | (56) | (139) | 3 | (241)
Net segregated fund investment result | - | - | - | - | - | -
Total investment result | 325 | 614 | (284) | (470) | 676 | 861
Other revenue | 118 | 148 | 66 | 3,559 | (234) | 3,657
Other expenses | (139) | (330) | (49) | (2,276) | (253) | (3,047)
Interest expenses | (14) | (537) | (7) | (4) | (288) | (850)
Net income (loss) before income taxes | 1,357 | 522 | 2 | 809 | (54) | 2,636
Income tax (expenses) recoveries | (265) | (122) | 25 | (93) | (77) | (532)
Net income (loss) | 1,092 | 400 | 27 | 716 | (131) | 2,104
Less net income (loss) attributed to: |  |  |  |  |  |
Non-controlling interests | 93 | - | - | 1 | - | 94
Participating policyholders | 54 | 48 | - | - | - | 102
Net income (loss) attributed to shareholders and other equity holders | $945 | $352 | $27 | $715 | $(131) | $1,908
Total assets | $188,217 | $153,629 | $251,973 | $282,890 | $38,564 | $915,273

Manulife Financial Corporation – Second Quarter 2025 | 105

(b)By Geographic Location

For the three months ended June 30, 2025 | Asia | Canada | U.S. | Other | Total
Insurance service result |  |  |  |  |
Life, health and property and casualty insurance | $554 | $314 | $11 | $27 | $906
Annuities and pensions | 18 | 58 | 24 | - | 100
Total insurance service result | 572 | 372 | 35 | 27 | 1,006
Net investment income (loss) | 3,612 | 1,404 | 1,772 | 8 | 6,796
Insurance finance income (expenses) |  |  |  |  |
Life, health and property and casualty insurance | (2,791) | (1,089) | (1,945) | - | (5,825)
Annuities and pensions | 359 | 202 | 93 | - | 654
Total insurance finance income (expenses) | (2,432) | (887) | (1,852) | - | (5,171)
Reinsurance finance income (expenses) |  |  |  |  |
Life, health and property and casualty insurance | (350) | 74 | 266 | - | (10)
Annuities and pensions | (52) | - | (137) | - | (189)
Total reinsurance finance income (expenses) | (402) | 74 | 129 | - | (199)
Decrease (increase) in investment contract liabilities | (70) | (48) | (41) | (1) | (160)
Net segregated fund investment result | - | - | - | - | -
Total investment result | $708 | $543 | $8 | $7 | $1,266
Other revenue | $241 | $554 | $997 | $59 | $1,851

For the three months ended June 30, 2024 | Asia | Canada | U.S. | Other | Total
Insurance service result |  |  |  |  |
Life, health and property and casualty insurance | $508 | $286 | $126 | $19 | $939
Annuities and pensions | 11 | 60 | 27 | - | 98
Total insurance service result | 519 | 346 | 153 | 19 | 1,037
Net investment income (loss) | 2,425 | 856 | 1,214 | 17 | 4,512
Insurance finance income (expenses) |  |  |  |  |
Life, health and property and casualty insurance | (1,257) | (628) | (1,390) | - | (3,275)
Annuities and pensions | (1,196) | (71) | (81) | - | (1,348)
Total insurance finance income (expenses) | (2,453) | (699) | (1,471) | - | (4,623)
Reinsurance finance income (expenses) |  |  |  |  |
Life, health and property and casualty insurance | 41 | 195 | 266 | - | 502
Annuities and pensions | 264 | (1) | (11) | - | 252
Total reinsurance finance income (expenses) | 305 | 194 | 255 | - | 754
Decrease (increase) in investment contract liabilities | (50) | (42) | (36) | (2) | (130)
Net segregated fund investment result | - | - | - | - | -
Total investment result | $227 | $309 | $(38) | $15 | $513
Other revenue | $516 | $540 | $875 | $(82) | $1,849

Manulife Financial Corporation – Second Quarter 2025 | 106

For the six months ended June 30, 2025 | Asia | Canada | U.S. | Other | Total
Insurance service result |  |  |  |  |
Life, health and property and casualty insurance | $1,212 | $565 | $133 | $3 | $1,913
Annuities and pensions | (26) | 117 | 45 | - | 136
Total insurance service result | 1,186 | 682 | 178 | 3 | 2,049
Net investment income (loss) | 4,665 | 2,680 | 2,373 | 24 | 9,742
Insurance finance income (expenses) |  |  |  |  |
Life, health and property and casualty insurance | (4,115) | (1,908) | (3,637) | - | (9,660)
Annuities and pensions | 1,172 | 57 | (479) | - | 750
Total insurance finance income (expenses) | (2,943) | (1,851) | (4,116) | - | (8,910)
Reinsurance finance income (expenses) |  |  |  |  |
Life, health and property and casualty insurance | (444) | 146 | 588 | - | 290
Annuities and pensions | (187) | - | 218 | - | 31
Total reinsurance finance income (expenses) | (631) | 146 | 806 | - | 321
Decrease (increase) in investment contract liabilities | (133) | (86) | (30) | (2) | (251)
Net segregated fund investment result | - | - | - | - | -
Total investment result | $958 | $889 | $(967) | $22 | $902
Other revenue | $558 | $1,147 | $2,000 | $132 | $3,837

For the six months ended June 30, 2024 | Asia | Canada | U.S. | Other | Total
Insurance service result |  |  |  |  |
Life, health and property and casualty insurance | $1,073 | $510 | $221 | $50 | $1,854
Annuities and pensions | (6) | 116 | 51 | - | 161
Total insurance service result | 1,067 | 626 | 272 | 50 | 2,015
Net investment income (loss) | 4,681 | 2,243 | 2,063 | 18 | 9,005
Insurance finance income (expenses) |  |  |  |  |
Life, health and property and casualty insurance | (2,697) | (1,683) | (2,977) | - | (7,357)
Annuities and pensions | (2,324) | 254 | 346 | - | (1,724)
Total insurance finance income (expenses) | (5,021) | (1,429) | (2,631) | - | (9,081)
Reinsurance finance income (expenses) |  |  |  |  |
Life, health and property and casualty insurance | (143) | 190 | 742 | - | 789
Annuities and pensions | 850 | (1) | (460) | - | 389
Total reinsurance finance income (expenses) | 707 | 189 | 282 | - | 1,178
Decrease (increase) in investment contract liabilities | (91) | (77) | (70) | (3) | (241)
Net segregated fund investment result | - | - | - | - | -
Total investment result | $276 | $926 | $(356) | $15 | $861
Other revenue | $1,020 | $1,075 | $1,733 | $(171) | $3,657

Note 15 Segregated Funds
The Company manages a number of segregated funds on behalf of policyholders. Policyholders are provided with the
opportunity to invest in different categories of segregated funds that hold a range of underlying investments. The underlying
investments consist of both individual securities and mutual funds.
Segregated funds’ underlying investments may be exposed to a variety of financial and other risks. These risks are primarily
mitigated by investment guidelines that are actively monitored by professional and experienced portfolio advisors. The
Company is not exposed to these risks beyond the liabilities related to the guarantees associated with certain variable life and
annuity products included in segregated funds. Accordingly, the Company’s exposure to loss from segregated fund products is
limited to the value of these guarantees.
As at June 30, 2025, these guarantees are recorded within the Company’s insurance contract liabilities and amount to $1,881
(December 31, 2024 – $1,886), of which $626 are reinsured (December 31, 2024 – $530). Assets supporting these
guarantees, net of reinsurance, are recognized in invested assets according to their investment type. Insurance contract
liabilities for account of segregated fund holders on the Consolidated Statements of Financial Position exclude these
guarantees and are considered to be a non-distinct investment component of insurance contract liabilities. The denoted
components in the “Risk Management and Risk Factors Update” section of the Second Quarter 2025 MD&A provide
information regarding market risk sensitivities associated with variable annuity and segregated fund guarantees.

Manulife Financial Corporation – Second Quarter 2025 | 107

Note 16 Information Provided in Connection with Investments in Deferred Annuity
Contracts and SignatureNotes Issued or Assumed by John Hancock Life Insurance
Company (U.S.A.)
The following condensed consolidated financial information, presented in accordance with IFRS, and the related disclosure
have been included in these Interim Consolidated Financial Statements with respect to JHUSA in compliance with Regulation
S-X and Rule 12h-5 of the United States Securities and Exchange Commission (the “Commission”). These financial
statements are incorporated by reference in certain of the MFC and its subsidiaries registration statements and relate to MFC’s
guarantee of certain securities to be issued by its subsidiaries. For information about JHUSA, the MFC guarantees and
restrictions on the ability of MFC to obtain funds from its subsidiaries by dividend or loan, refer to note 23 to the Company’s
2024 Annual Consolidated Financial Statements.
Condensed Consolidated Statement of Financial Position

As at June 30, 2025 | MFC (Guarantor) | JHUSA (Issuer) | Other subsidiaries | Consolidation adjustments | Consolidated MFC
Assets |  |  |  |  |
Total invested assets | $152 | $103,011 | $335,414 | $(111) | $438,466
Investments in unconsolidated subsidiaries | 66,474 | 9,090 | 52,971 | (128,535) | -
Insurance contract assets | - | - | 220 | (37) | 183
Reinsurance contract held assets | - | 49,514 | 21,807 | (10,086) | 61,235
Other assets | 32,967 | 11,270 | 71,654 | (74,864) | 41,027
Segregated funds net assets | - | 214,577 | 223,350 | (1,369) | 436,558
Total assets | $99,593 | $387,462 | $705,416 | $(215,002) | $977,469
Liabilities and equity |  |  |  |  |
Insurance contract liabilities, excluding those for account of segregated fund holders | $- | $144,015 | $264,588 | $(11,116) | $397,487
Reinsurance contract held liabilities | - | - | 2,942 | - | 2,942
Investment contract liabilities | - | 5,759 | 8,891 | (579) | 14,071
Other liabilities | 37,883 | 6,540 | 91,526 | (74,068) | 61,881
Long-term debt | 6,292 | - | - | - | 6,292
Capital instruments | 6,338 | - | 32,847 | (32,200) | 6,985
Insurance contract liabilities for account of segregated fund holders | - | 55,229 | 68,310 | - | 123,539
Investment contract liabilities for account of segregated fund holders | - | 159,348 | 155,040 | (1,369) | 313,019
Shareholders and other equity holders’ equity | 49,080 | 16,614 | 79,056 | (95,670) | 49,080
Participating policyholders’ equity | - | (43) | 818 | - | 775
Non-controlling interests | - | - | 1,398 | - | 1,398
Total liabilities and equity | $99,593 | $387,462 | $705,416 | $(215,002) | $977,469

Manulife Financial Corporation – Second Quarter 2025 | 108

Condensed Consolidated Statement of Financial Position

As at December 31, 2024 | MFC (Guarantor) | JHUSA (Issuer) | Other subsidiaries | Consolidation adjustments | Consolidated MFC
Assets |  |  |  |  |
Total invested assets | $126 | $112,444 | $330,044 | $(117) | $442,497
Investments in unconsolidated subsidiaries | 65,350 | 9,393 | 21,510 | (96,253) | -
Insurance contract assets | - | - | 177 | (75) | 102
Reinsurance contract held assets | - | 46,811 | 22,440 | (10,236) | 59,015
Other assets | 548 | 11,182 | 34,660 | (5,174) | 41,216
Segregated funds net assets | - | 218,909 | 218,681 | (1,602) | 435,988
Total assets | $66,024 | $398,739 | $627,512 | $(113,457) | $978,818
Liabilities and equity |  |  |  |  |
Insurance contract liabilities, excluding those for account of segregated fund holders | $- | $148,828 | $258,007 | $(10,434) | $396,401
Reinsurance contract held liabilities | - | - | 2,669 | - | 2,669
Investment contract liabilities | - | 5,260 | 8,854 | (616) | 13,498
Other liabilities | 1,539 | 8,432 | 58,333 | (5,163) | 63,141
Long-term debt | 6,629 | - | - | - | 6,629
Capital instruments | 6,884 | - | 648 | - | 7,532
Insurance contract liabilities for account of segregated fund holders | - | 58,137 | 68,408 | - | 126,545
Investment contract liabilities for account of segregated fund holders | - | 160,772 | 150,273 | (1,602) | 309,443
Shareholders and other equity holders’ equity | 50,972 | 17,357 | 78,285 | (95,642) | 50,972
Participating policyholders’ equity | - | (47) | 614 | - | 567
Non-controlling interests | - | - | 1,421 | - | 1,421
Total liabilities and equity | $66,024 | $398,739 | $627,512 | $(113,457) | $978,818

Condensed Consolidated Statement of Income

For the three months ended June 30, 2025 | MFC (Guarantor) | JHUSA (Issuer) | Other subsidiaries | Consolidation adjustments | Consolidated MFC
Insurance service result |  |  |  |  |
Insurance revenue | $- | $2,870 | $4,469 | $(349) | $6,990
Insurance service expenses | - | (2,756) | (3,347) | 338 | (5,765)
Net expenses from reinsurance contracts held | - | (94) | (149) | 24 | (219)
Total insurance service result | - | 20 | 973 | 13 | 1,006
Investment result |  |  |  |  |
Net investment income (loss) | 260 | 1,628 | 5,352 | (444) | 6,796
Insurance / reinsurance finance income (expenses) | - | (1,475) | (3,904) | 9 | (5,370)
Other investment result | - | (33) | (103) | (24) | (160)
Total investment result | 260 | 120 | 1,345 | (459) | 1,266
Other revenue | 2 | 271 | 1,695 | (117) | 1,851
Other expenses | (5) | (295) | (1,267) | 63 | (1,504)
Interest expenses | (131) | (4) | (723) | 500 | (358)
Net income (loss) before income taxes | 126 | 112 | 2,023 | - | 2,261
Income tax (expenses) recoveries | (16) | 18 | (340) | - | (338)
Net income (loss) after income taxes | 110 | 130 | 1,683 | - | 1,923
Equity in net income (loss) of unconsolidated subsidiaries | 1,679 | 265 | 395 | (2,339) | -
Net income (loss) | $1,789 | $395 | $2,078 | $(2,339) | $1,923
Net income (loss) attributed to: |  |  |  |  |
Non-controlling interests | $- | $- | $49 | $- | $49
Participating policyholders | - | - | 78 | 7 | 85
Shareholders and other equity holders | 1,789 | 395 | 1,951 | (2,346) | 1,789
| $1,789 | $395 | $2,078 | $(2,339) | $1,923

Manulife Financial Corporation – Second Quarter 2025 | 109

For the three months ended June 30, 2024 | MFC (Guarantor) | JHUSA (Issuer) | Other subsidiaries | Consolidation adjustments | Consolidated MFC
Insurance service result |  |  |  |  |
Insurance revenue | $- | $2,696 | $4,213 | $(394) | $6,515
Insurance service expenses | - | (2,507) | (3,162) | 397 | (5,272)
Net expenses from reinsurance contracts held | - | (96) | (123) | 13 | (206)
Total insurance service result | - | 93 | 928 | 16 | 1,037
Investment result |  |  |  |  |
Net investment income (loss) | 183 | 1,033 | 3,580 | (284) | 4,512
Insurance / reinsurance finance income (expenses) | - | (889) | (2,971) | (9) | (3,869)
Other investment result | - | 1 | (105) | (26) | (130)
Total investment result | 183 | 145 | 504 | (319) | 513
Other revenue | (4) | 202 | 1,761 | (110) | 1,849
Other expenses | (13) | (311) | (1,331) | 66 | (1,589)
Interest expenses | (125) | (8) | (640) | 347 | (426)
Net income (loss) before income taxes | 41 | 121 | 1,222 | - | 1,384
Income tax (expenses) recoveries | 8 | 4 | (264) | - | (252)
Net income (loss) after income taxes | 49 | 125 | 958 | - | 1,132
Equity in net income (loss) of unconsolidated subsidiaries | 993 | 229 | 354 | (1,576) | -
Net income (loss) | $1,042 | $354 | $1,312 | $(1,576) | $1,132
Net income (loss) attributed to: |  |  |  |  |
Non-controlling interests | $- | $- | $39 | $- | $39
Participating policyholders | - | (2) | 51 | 2 | 51
Shareholders and other equity holders | 1,042 | 356 | 1,222 | (1,578) | 1,042
| $1,042 | $354 | $1,312 | $(1,576) | $1,132

For the six months ended June 30, 2025 | MFC (Guarantor) | JHUSA (Issuer) | Other subsidiaries | Consolidation adjustments | Consolidated MFC
Insurance service result |  |  |  |  |
Insurance revenue | $- | $5,800 | $8,959 | $(707) | $14,052
Insurance service expenses | - | (5,382) | (6,733) | 642 | (11,473)
Net expenses from reinsurance contracts held | - | (289) | (304) | 63 | (530)
Total insurance service result | - | 129 | 1,922 | (2) | 2,049
Investment result |  |  |  |  |
Net investment income (loss) | 264 | 1,968 | 7,863 | (353) | 9,742
Insurance / reinsurance finance income (expenses) | - | (3,096) | (5,494) | 1 | (8,589)
Other investment result | - | 36 | (230) | (57) | (251)
Total investment result | 264 | (1,092) | 2,139 | (409) | 902
Other revenue | 3 | 529 | 3,539 | (234) | 3,837
Other expenses | (13) | (594) | (2,623) | 139 | (3,091)
Interest expenses | (265) | (32) | (946) | 506 | (737)
Net income (loss) before income taxes | (11) | (1,060) | 4,031 | - | 2,960
Income tax (expenses) recoveries | 29 | 292 | (735) | - | (414)
Net income (loss) after income taxes | 18 | (768) | 3,296 | - | 2,546
Equity in net income (loss) of unconsolidated subsidiaries | 2,256 | 507 | (261) | (2,502) | -
Net income (loss) | $2,274 | $(261) | $3,035 | $(2,502) | $2,546
Net income (loss) attributed to: |  |  |  |  |
Non-controlling interests | $- | $- | $115 | $- | $115
Participating policyholders | - | (2) | 150 | 9 | 157
Shareholders and other equity holders | 2,274 | (259) | 2,770 | (2,511) | 2,274
| $2,274 | $(261) | $3,035 | $(2,502) | $2,546

Manulife Financial Corporation – Second Quarter 2025 | 110

For the six months ended June 30, 2024 | MFC (Guarantor) | JHUSA (Issuer) | Other subsidiaries | Consolidation adjustments | Consolidated MFC
Insurance service result |  |  |  |  |
Insurance revenue | $- | $5,410 | $8,362 | $(760) | $13,012
Insurance service expenses | - | (5,011) | (6,305) | 772 | (10,544)
Net expenses from reinsurance contracts held | - | (193) | (273) | 13 | (453)
Total insurance service result | - | 206 | 1,784 | 25 | 2,015
Investment result |  |  |  |  |
Net investment income (loss) | 188 | 1,887 | 7,093 | (163) | 9,005
Insurance / reinsurance finance income (expenses) | - | (1,776) | (6,127) | - | (7,903)
Other investment result | - | (24) | (166) | (51) | (241)
Total investment result | 188 | 87 | 800 | (214) | 861
Other revenue | (7) | 404 | 3,497 | (237) | 3,657
Other expenses | (25) | (586) | (2,574) | 138 | (3,047)
Interest expenses | (240) | (4) | (894) | 288 | (850)
Net income (loss) before income taxes | (84) | 107 | 2,613 | - | 2,636
Income tax (expenses) recoveries | 50 | 47 | (629) | - | (532)
Net income (loss) after income taxes | (34) | 154 | 1,984 | - | 2,104
Equity in net income (loss) of unconsolidated subsidiaries | 1,942 | 276 | 430 | (2,648) | -
Net income (loss) | $1,908 | $430 | $2,414 | $(2,648) | $2,104
Net income (loss) attributed to: |  |  |  |  |
Non-controlling interests | $- | $- | $94 | $- | $94
Participating policyholders | - | (2) | 102 | 2 | 102
Shareholders and other equity holders | 1,908 | 432 | 2,218 | (2,650) | 1,908
| $1,908 | $430 | $2,414 | $(2,648) | $2,104

Manulife Financial Corporation – Second Quarter 2025 | 111

Consolidated Statement of Cash Flows

For the six months ended June 30, 2025 | MFC (Guarantor) | JHUSA (Issuer) | Other subsidiaries | Consolidation adjustments | Consolidated MFC
Operating activities |  |  |  |  |
Net income (loss) | $2,274 | $(261) | $3,035 | $(2,502) | $2,546
Adjustments: |  |  |  |  |
Equity in net income of unconsolidated subsidiaries | (2,256) | (507) | 261 | 2,502 | -
Increase (decrease) in insurance contract net liabilities | - | 243 | 8,477 | - | 8,720
Increase (decrease) in investment contract liabilities | - | 56 | 195 | - | 251
(Increase) decrease in reinsurance contract assets, excluding reinsurance transactions | - | (2) | (736) | - | (738)
Amortization of (premium) discount on invested assets | - | - | (176) | - | (176)
CSM amortization | - | (243) | (1,009) | - | (1,252)
Other amortization | 6 | 73 | 334 | - | 413
Net realized and unrealized (gains) losses and impairment on assets | (7) | 1,410 | (2,932) | - | (1,529)
Deferred income tax expenses (recoveries) | (29) | (26) | (37) | - | (92)
Gain on reinsurance transaction (pre-tax) | - | (9) | - | - | (9)
Cash provided by (used in) operating activities before undernoted items | (12) | 734 | 7,412 | - | 8,134
Dividends from unconsolidated subsidiaries | - | 214 | (689) | 475 | -
Changes in policy related and operating receivables and payables | (324) | (831) | 6,984 | - | 5,829
Cash provided by (used in) operating activities | (336) | 117 | 13,707 | 475 | 13,963
Investing activities |  |  |  |  |
Purchases and mortgage advances | - | (7,715) | (59,041) | - | (66,756)
Disposals and repayments | - | 6,626 | 47,276 | - | 53,902
Changes in investment broker net receivables and payables | - | 8 | 393 | - | 401
Investment in common shares of subsidiaries | (500) | - | - | 500 | -
Notes receivable from parent | - | - | (36,389) | 36,389 | -
Notes receivable from subsidiaries | (32,233) | - | - | 32,233 | -
Cash provided by (used in) investing activities | (32,733) | (1,081) | (47,761) | 69,122 | (12,453)
Financing activities |  |  |  |  |
Change in repurchase agreements and securities sold but not yet purchased | - | - | (557) | - | (557)
Issue of capital instruments, net | 497 | - | - | - | 497
Redemption of capital instruments | (1,000) | - | - | - | (1,000)
Secured borrowing from securitization transactions | - | - | 1,047 | - | 1,047
Changes in deposits from Bank clients, net | - | - | 373 | - | 373
Lease payments | - | (1) | (55) | - | (56)
Shareholders’ dividends and other equity distributions | (1,658) | - | - | - | (1,658)
Common shares repurchased | (1,160) | - | - | - | (1,160)
Common shares issued, net | 35 | - | 500 | (500) | 35
Contributions from (distributions to) non-controlling interests, net | - | - | (1) | - | (1)
Dividends paid to parent | - | 689 | (214) | (475) | -
Notes payable to parent | - | - | 32,233 | (32,233) | -
Notes payable to subsidiaries | 36,389 | - | - | (36,389) | -
Cash provided by (used in) financing activities | 33,103 | 688 | 33,326 | (69,597) | (2,480)
Cash and short-term securities |  |  |  |  |
Increase (decrease) during the period | 34 | (276) | (728) | - | (970)
Effect of foreign exchange rate changes on cash and short-term securities | (8) | (62) | (744) | - | (814)
Balance, beginning of period | 126 | 5,041 | 19,775 | - | 24,942
Balance, end of period | 152 | 4,703 | 18,303 | - | 23,158
Cash and short-term securities |  |  |  |  |
Beginning of period |  |  |  |  |
Gross cash and short-term securities | 126 | 5,436 | 20,227 | - | 25,789
Net payments in transit, included in other liabilities | - | (395) | (452) | - | (847)
Net cash and short-term securities, beginning of period | 126 | 5,041 | 19,775 | - | 24,942
End of period |  |  |  |  |
Gross cash and short-term securities | 152 | 4,703 | 18,918 | - | 23,773
Net payments in transit, included in other liabilities | - | - | (615) | - | (615)
Net cash and short-term securities, end of period | $152 | $4,703 | $18,303 | $- | $23,158
Supplemental disclosures on cash flow information: |  |  |  |  |
Interest received | $274 | $2,093 | $5,209 | $(597) | $6,979
Interest paid | 270 | 94 | 1,048 | (597) | 815
Income taxes paid (refund) | 84 | 2 | 438 | - | 524

Manulife Financial Corporation – Second Quarter 2025 | 112

Consolidated Statement of Cash Flows

For the six months ended June 30, 2024 | MFC (Guarantor) | JHUSA (Issuer) | Other subsidiaries | Consolidation adjustments | Consolidated MFC
Operating activities |  |  |  |  |
Net income (loss) | $1,908 | $430 | $2,414 | $(2,648) | $2,104
Adjustments: |  |  |  |  |
Equity in net income of unconsolidated subsidiaries | (1,942) | (276) | (430) | 2,648 | -
Increase (decrease) in insurance contract net liabilities | - | 209 | 2,993 | - | 3,202
Increase (decrease) in investment contract liabilities | - | 23 | 218 | - | 241
(Increase) decrease in reinsurance contract assets, excluding reinsurance transactions | - | (125) | (439) | - | (564)
Amortization of (premium) discount on invested assets | - | 22 | (164) | - | (142)
CSM amortization | - | (209) | (958) | - | (1,167)
Other amortization | 5 | 73 | 224 | - | 302
Net realized and unrealized (gains) losses and impairment on assets | (10) | 735 | 585 | - | 1,310
Deferred income tax expenses (recoveries) | (50) | 55 | 61 | - | 66
Net loss on reinsurance transaction (pre-tax) | - | 33 | 38 | - | 71
Cash provided by (used in) operating activities before undernoted items | (89) | 970 | 4,542 | - | 5,423
Dividends from unconsolidated subsidiaries | - | 189 | - | (189) | -
Changes in policy related and operating receivables and payables | (131) | 2,294 | 4,263 | - | 6,426
Cash provided by (used in) operating activities | (220) | 3,453 | 8,805 | (189) | 11,849
Investing activities |  |  |  |  |
Purchases and mortgage advances | - | (9,920) | (57,088) | - | (67,008)
Disposals and repayments | - | 7,094 | 49,915 | - | 57,009
Changes in investment broker net receivables and payables | - | 75 | 189 | - | 264
Net cash increase (decrease) from sale (purchase) of subsidiaries | - | - | (298) | - | (298)
Investment in common shares of subsidiaries | (1,607) | - | - | 1,607 | -
Capital contribution to unconsolidated subsidiaries | - | (1) | - | 1 | -
Notes receivable from parent | - | - | (35,076) | 35,076 | -
Notes receivable from subsidiaries | (32,475) | - | - | 32,475 | -
Cash provided by (used in) investing activities | (34,082) | (2,752) | (42,358) | 69,159 | (10,033)
Financing activities |  |  |  |  |
Change in repurchase agreements and securities sold but not yet purchased | - | - | 233 | - | 233
Issue of capital instruments, net | 1,596 | - | - | - | 1,596
Redemption of capital instruments | - | (609) | - | - | (609)
Secured borrowing from securitization transactions | - | - | 516 | - | 516
Changes in deposits from Bank clients, net | - | - | 113 | - | 113
Lease payments | - | (1) | (60) | - | (61)
Shareholders’ dividends and other equity distributions | (1,594) | - | - | - | (1,594)
Common shares repurchased | (855) | - | - | - | (855)
Common shares issued, net | 82 | - | 1,607 | (1,607) | 82
Contributions from (distributions to) non-controlling interests, net | - | - | (1) | - | (1)
Dividends paid to parent | - | - | (189) | 189 | -
Capital contributions by parent | - | - | 1 | (1) | -
Notes payable to parent | - | - | 32,475 | (32,475) | -
Notes payable to subsidiaries | 35,076 | - | - | (35,076) | -
Cash provided by (used in) financing activities | 34,305 | (610) | 34,695 | (68,970) | (580)
Cash and short-term securities |  |  |  |  |
Increase (decrease) during the period | 3 | 91 | 1,142 | - | 1,236
Effect of foreign exchange rate changes on cash and short-term securities | 2 | 151 | 188 | - | 341
Balance, beginning of period | 86 | 4,004 | 15,794 | - | 19,884
Balance, end of period | 91 | 4,246 | 17,124 | - | 21,461
Cash and short-term securities |  |  |  |  |
Beginning of period |  |  |  |  |
Gross cash and short-term securities | 86 | 4,329 | 15,923 | - | 20,338
Net payments in transit, included in other liabilities | - | (325) | (129) | - | (454)
Net cash and short-term securities, beginning of period | 86 | 4,004 | 15,794 | - | 19,884
End of period |  |  |  |  |
Gross cash and short-term securities | 91 | 4,583 | 17,424 | - | 22,098
Net payments in transit, included in other liabilities | - | (337) | (300) | - | (637)
Net cash and short-term securities, end of period | $91 | $4,246 | $17,124 | $- | $21,461
Supplemental disclosures on cash flow information: |  |  |  |  |
Interest received | $179 | $1,976 | $5,076 | $(418) | $6,813
Interest paid | 217 | 43 | 976 | (418) | 818
Income taxes paid (refund) | 5 | 6 | 702 | - | 713

Manulife Financial Corporation – Second Quarter 2025 | 113

SHAREHOLDER INFORMATION

MANULIFE FINANCIAL CORPORATION HEAD OFFICE 200 Bloor Street East Toronto, ON Canada M4W 1E5 Telephone: 416 926-3000 Website: www.manulife.com INVESTOR RELATIONS Financial analysts, portfolio managers and other investors requiring financial information may contact our Investor Relations Department or access our website at www.manulife.com. Email: investrel@manulife.com SHAREHOLDER SERVICES For information or assistance regarding your share account, including dividends, changes of address or ownership, lost certificates, to eliminate duplicate mailings or to receive shareholder material electronically, please contact our Transfer Agents in Canada, the United States, Hong Kong or the Philippines. If you live outside one of these countries, please contact our Canadian Transfer Agent. |  | TRANSFER AGENTS Canada TSX Trust Company 301 - 100 Adelaide St. West Toronto, ON Canada M5H 4H1 Toll Free: 1 800 783-9495 Collect: 416 682-3864 Email: manulifeinquiries@tmx.com Website: www.tsxtrust.com/manulife TSX Trust Company offices are also located in Toronto, Vancouver and Calgary. United States Equiniti Trust Company, LLC P.O. Box 27756 Newark, NJ 07101 United States Toll Free: 1 800 249-7702 Collect: 416 682-3864 Email: manulifeinquiries@tmx.com Website: www.tsxtrust.com/manulife Hong Kong Tricor Investor Services Limited 17/F, Far East Finance Centre 16 Harcourt Road Hong Kong Telephone: 852 2980-1333 Email: is-enquiries@hk.tricorglobal.com Website: www.tricoris.com |  | Philippines RCBC Stock Transfer Ground Floor, West Wing GPL (Grepalife) Building 221 Senator Gil Puyat Avenue Makati City, Metro Manila, Philippines Telephone: 632 5318-8567 Email: rcbcstocktransfer@rcbc.com Website: www.rcbc.com/stocktransfer AUDITORS Ernst & Young LLP Chartered Professional Accountants Licensed Public Accountants Toronto, Canada The following Manulife documents are available online at www.manulife.com •Annual Report and Proxy Circular •Notice of Annual Meeting •Shareholders Reports •Public Accountability Statement •Sustainability Report

Rating

Financial strength is a key factor in generating new business, maintaining and expanding distribution relations and providing a base for expansion, acquisitions and growth. As at June 30, 2025, Manulife had total capital of C$78.0 billion, including C$49.1 billion of total shareholders’ and other equity holders’ equity. The Manufacturers Life Insurance Company’s financial strength ratings are among the strongest in the insurance industry. Rating agencies include AM Best Company (“AM Best”), DBRS Limited and affiliated entities (“Morningstar DBRS”), Fitch Ratings Inc. (“Fitch”), Moody’s Investors Service Inc. (“Moody’s”), and S&P Global Ratings (“S&P”). | As at August 6, 2025
Rating Agency | MLI Rating | Rank
S&P | AA- | (4 th of 21 ratings)
Moody’s | A1 | (5 th of 21 ratings)
Fitch | AA | (3 rd of 21 ratings)
Morningstar DBRS | AA | (3 rd of 22 ratings)
AM Best | A+ (Superior) | (2 nd of 13 ratings)

Common Stock Trading Data

The following values are the high, low and close prices, including the average daily trading volume for Manulife Financial Corporation’s common stock on the Canadian exchanges, the U.S. exchanges, The Stock Exchange of Hong Kong and the Philippine Stock Exchange for the second quarter. The common stock symbol is MFC on all exchanges except Hong Kong where it is 945. | As at June 30, 2025, there were 1,703 million com mon shares outstanding.
April 1 – June 30, 2025 | Canada | U.S. | Hong Kong | Philippines
Canadian $ | United States $ | Hong Kong $ | Philippine Pesos
High | $46.35 | $32.44 | $253.20 | P 1,880
Low | $38.18 | $26.93 | $204.20 | P 1,506
Close | $43.54 | $31.96 | $251.00 | P 1,652
Average Daily Volume (000) | 11,688 | 2,476 | 14 | 0.2

Manulife Financial Corporation – Second Quarter 2025 | 114

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