# EDGAR Filing Document

**Accession Number:** 0001086888
**File Stem:** 0001086888-25-000104
**Filing Date:** 2025-8
**Character Count:** 526973
**Document Hash:** 35102bf589ad0537abf5c57254c9cee9
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001086888-25-000104.hdr.sgml**: 20250806

**ACCESSION NUMBER**: 0001086888-25-000104

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 8

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250806

**DATE AS OF CHANGE**: 20250806

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** MANULIFE FINANCIAL CORP
- **CENTRAL INDEX KEY:** 0001086888
- **STANDARD INDUSTRIAL CLASSIFICATION:** LIFE INSURANCE [6311]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 889897526
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-14942
- **FILM NUMBER:** 251190616

**BUSINESS ADDRESS:**
- **STREET 1:** 200 BLOOR ST EAST, NT-10
- **CITY:** TORONTO
- **STATE:** A6
- **ZIP:** M4W1E5
- **BUSINESS PHONE:** 416-926-3000

**MAIL ADDRESS:**
- **STREET 1:** 200 BLOOR ST EAST, NT-10
- **CITY:** TORONTO
- **STATE:** A6
- **ZIP:** M4W1E5

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**Form 6-K**

**REPORT OF FOREIGN PRIVATE ISSUER** 

**PURSUANT TO RULE 13a-16 OR 15d-16** 

**UNDER THE SECURITIES EXCHANGE ACT OF 1934**

**For the month of August 2025**

**Commission File Number: 1-14942**

**MANULIFE FINANCIAL CORPORATION**

**(Translation of registrant's name into English)**

**200 Bloor Street East**

**North Tower 10**

**Toronto, Ontario, Canada M4W 1E5**

**(416) 926-3000**

**(Address of principal executive office)**

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ◻ Form 40-F ☒

The registrant's Management's Discussion and Analysis and Unaudited Interim Consolidated Financial Statements for the

quarter ended June 30, 2025 included in the registrant's 2025Second Quarter Report to Shareholders filed with this Form

6-K as Exhibit 99.1, are incorporated by reference in the registration statements filed with the Securities and Exchange

Commission by the registrant on Form S-8 (Registration Nos. 333-12610, 333-13072, 333-114951, 333-129430,

333-157326, 333-211366, 333-272672, 333-277446), on Form F-3 (Registration No. 333-159176) and on Form F-10

(Registration No. 333-274698). Except for the foregoing, no other document or portion of a document filed with this Form

6-K is incorporated by reference in the above registration statements.

**DOCUMENTS FILED AS PART OF THIS FORM 6-K**

The following documents, filed as exhibits to this Form 6-K, are incorporated by reference as

part of this Form 6-K:

---

| | |
|:---|:---|
| <u>Exhibit</u> | <u>Description of Exhibit</u> |
| 99.1 | Second Quarter Report to Shareholders |
| 99.2 | Certificate Chief Executive Officer |
| 99.3 | Certificate Chief Financial Officer |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly

caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | MANULIFE FINANCIAL CORPORATION | MANULIFE FINANCIAL CORPORATION |
|  | By: | */s/ Eddy Mezzetta* |
|  | Name: | Eddy Mezzetta |
|  | Title: | Vice President and Chief Counsel, Corporate Law |
| Date: August 6, 2025 |  |  |

---

## Exhibit 99.1

![bannermfcjpeg.jpg](bannermfcjpeg.jpg)

![manulife_rgb.jpg](manulife_rgb.jpg)

**Second Quarter** 

**Report to**

**Shareholders**

Three and six months ended

**June 30, 2025**

**Manulife Financial Corporation**

<sup>1</sup>Highest potential businesses include Asia segment, Global Wealth and Asset Management, Canada group benefits and North American behavioural insurance

products.

<sup>2</sup>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").

<sup>3</sup>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.

<sup>4</sup>Core EPS, core EPS excluding the impact of the change in ECL, core ROE and core EBITDA margin are non-GAAP ratios.

<sup>5</sup>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.

<sup>6</sup>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.

<sup>7</sup> 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.

<sup>8</sup>Refers to "Results at a Glance" for 2Q25 and 2Q24 results.

<sup>9</sup>Includes Comvest fee paying AUM of US$11 billion and Comvest committed capital of US$3.7 billion.

<sup>10</sup>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.**<sup>1</sup>

**Key highlights for the second quarter of 2025 ("2Q25") include:**

• Core earnings<sup>2</sup> of $1.7billion, a2%decrease on a constant exchange rate basis<sup>3</sup>compared with thesecond 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<sup>2,3</sup>

• Net income attributed to shareholders of$1.8billion, an increase of$0.7billion compared with 2Q24

• Core EPS<sup>4</sup>of $0.95, up 2%<sup>3</sup>from2Q24. EPS of$0.98, up88%<sup>3</sup>from2Q24

• Excluding the impact of the change in ECL, core EPS was $0.99, up 7% from 2Q24<sup>3,4</sup>

• Core ROE<sup>4</sup>of15.0%and ROE of 15.6%

• LICAT ratio<sup>5</sup>of136%

• APE sales up15%<sup>6</sup>, new business CSM up 37%<sup>3</sup>and new business value ("NBV")up20%<sup>6</sup>from2Q24<sup>7,8</sup>

• Global Wealth and Asset Management ("Global WAM") net inflows<sup>6</sup>of$0.9billion, up from$0.1billion in 2Q24

• Announced today the agreement to acquire a 75% stake in Comvest Credit Partners, adding US$14.7 billion<sup>9</sup>to our

Global WAM platform. The transaction is expected to close in the fourth quarter of 2025<sup>10</sup>

"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.<sup>6</sup> Global WAM further expanded its core EBITDA margin<sup>4</sup> and delivered

double-digit core earnings growth compared with the prior year quarter.<sup>7</sup>

"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.<sup>2</sup> 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***

<sup>1</sup>Percentage growth/decline in net income attributed to shareholders is stated on a constant exchange rate basis and is a non-GAAP ratio.

<sup>2</sup> 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.

<sup>3</sup>Financial leverage ratio and adjusted book value per common share are non-GAAP ratios.

<sup>4</sup>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

**<u>Results at a Glance</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ($ millions, unless otherwise stated) | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results**  | **YTD Results**  | **YTD Results**  |
| ($ millions, unless otherwise stated) | **2Q25** | 2Q24 | Change | **2025** | 2024 | Change |
| Net income attributed to shareholders<sup>1</sup> | **$1789** | $1042 | 72% | **$2274** | $1908 | 16% |
| Core earnings<sup>2</sup> | **$1726** | $1737 | (2)% | **$3493** | $3447 | (2)% |
| EPS ($) | **$0.98** | $0.52 | 88% | **$1.23** | $0.97 | 23% |
| Core EPS ($)<sup>2</sup> | **$0.95** | $0.91 | 2% | **$1.94** | $1.82 | 3% |
| ROE | **15.6%** | 9.0% | 6.6 pps | **9.7%** | 8.5% | 1.2 pps |
| Core ROE<sup>2</sup> | **15.0%** | 15.7% | (0.7) pps | **15.3%** | 16.0% | (0.7) pps |
| Book value per common share ($) | **$24.90** | $23.71 | 5% | **$24.90** | $23.71 | 5% |
| Adjusted BV per common share ($)<sup>2,3</sup> | **$35.78** | $33.32 | 7% | **$35.78** | $33.32 | 7% |
| Financial leverage ratio (%)<sup>2,3</sup> | **23.6%** | 25.0% | (1.4) pps | **23.6%** | 25.0% | (1.4) pps |
| APE sales | **$2230** | $1907 | 15% | **$4919** | $3790 | 26% |
| New business CSM | **$882** | $628 | 37% | **$1789** | $1286 | 34% |
| NBV<sup>2</sup> | **$846** | $691 | 20% | **$1753** | $1332 | 27% |
| Global WAM net flows ($ billions)<sup>4</sup> | **$0.9** | $0.1 | 417% | **$1.4** | $6.8 | (80)% |

---

**<u>Results by Segment</u>**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ($ millions, unless otherwise stated) | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results**  | **YTD Results**  | **YTD Results**  |
| ($ millions, unless otherwise stated) | **2Q25** | 2Q24 | Change | **2025** | 2024 | Change |
| **Asia (US$)** |  |  |  |  |  |  |
| Net income attributed to shareholders  | **$600** | $424 | 44% | **$1035** | $694 | 49% |
| Core earnings<sup>2</sup> | **520** | 449 | 13% | **1012** | 914 | 10% |
| APE sales | **1233** | 920 | 31% | **2645** | 1870 | 41% |
| New business CSM | **480** | 349 | 34% | **978** | 713 | 36% |
| NBV<sup>2</sup> | **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** | $715 | 25% |
| Core earnings<sup>2</sup> | **463** | 386 | 19% | **917** | 735 | 22% |
| Gross flows ($ billions)<sup>4</sup> | **43.8** | 41.4 | 5% | **94.1** | 86.9 | 5% |
| Average AUMA ($ billions)<sup>4</sup> | **1005** | 933 | 7% | **1022** | 917 | 9% |
| Core EBITDA margin (%) | **30.1%** | 26.3% | 380 bps | **29.2%** | 25.9% | 330 bps |

---

<sup>1</sup>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.

<sup>2</sup>Announced in July 2025, based on 2024 new business sales.

<sup>3</sup>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.

<sup>4</sup>Maven Clinic, Meet Maven, 2024.

Manulife Financial Corporation – Second Quarter 2025 3

**<u>Strategic Highlights</u>**

**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 launched 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 rolled 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 launched 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 launched 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<sup>1</sup>, 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 demonstrated 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.<sup>2</sup>

In addition, we became the first international life insurer to establish an office in the Dubai International Financial Centre<sup>3</sup>

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 continued 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 enhanced 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 partnered with Maven Clinic, the world's largest virtual clinic for women's and family health<sup>4</sup>, 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 expanded our wholesaling team to pursue more targeted growth strategies and accelerate our penetration

within the U.S. HNW and mass affluent markets.

<sup>1</sup>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.

<sup>2</sup>The reinsurance transaction with RGA Life Reinsurance Company of Canada ("RGA Canadian Reinsurance Transaction") closed April 1, 2024.

<sup>3</sup>Asia Other excludes Hong Kong and Japan.

<sup>4</sup>Net of non-controlling interests ("NCI").

<sup>5</sup>In this news release, percentage growth/decline in organic CSM is stated on a constant exchange rate basis.

<sup>6</sup> Post-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

**<u>Resilient earnings with strong contributions from Global WAM and Asia</u>**<sup>1</sup>

**Core earnings of $1.7 billion in 2Q25down2% 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.<sup>2</sup>

• 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.

**<u>Continued momentum in insurance new business results and positive net flows in Global WAM</u>**

**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.<sup>3</sup> NBV marginof40.0%

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 a1%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 2Q25increased 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 2Q25increased 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 2Q25increased 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.

**<u>New business growth continued to drive higher organic CSM and CSM balance</u>**

**CSM**<sup>4</sup>**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%<sup>5</sup>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<sup>6</sup> 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

endedJune 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

<sup>1</sup> The 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.

<sup>2</sup>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.

<sup>3</sup> 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

**ATOTAL COMPANY PERFORMANCE** 

**A1Profitability**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Results**  | **Quarterly Results**  | **Quarterly Results**  | **YTD Results** | **YTD Results** |
| ($ millions, unless otherwise stated) | **2Q25** | 1Q25 | 2Q24 | **2025** | 2024 |
| Net income (loss) attributed to shareholders | **$1789** | $485 | $1042 | **$2274** | $1908 |
| Core earnings<sup>(1),(2)</sup> | **$1726** | $1767 | $1737 | **$3493** | $3447 |
| Diluted earnings (loss) per common share ($)  | **$0.98** | $0.25 | $0.52 | **$1.23** | $0.97 |
| Diluted core earnings per common share ("Core EPS") ($)<sup>(2),(3)</sup> | **$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")<sup>(2),(3)</sup> | **15.0%** | 15.6% | 15.7% | **15.3%** | 16.0% |
| Expense efficiency ratio<sup>(3)</sup> | **45.5%** | 45.9% | 45.4% | **45.7%** | 45.3% |
| General expenses  | **$1140** | $1202 | $1225 | **$2342** | $2327 |
| Core expenses<sup>(1)</sup> | **$1689** | $1776 | $1713 | **$3465** | $3386 |

---

<sup>(1)</sup> This item is a non-GAAP financial measure. See "Non-GAAP and Other Financial Measures" below for more information.

<sup>(2)</sup> 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.

<sup>(3)</sup> 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 2Q24due to differences in the jurisdictional mix of earnings.

Net income attributed to shareholders in 2Q25increased$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<sup>1</sup>. 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% on a constant exchange rate basis<sup>2</sup> 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<sup>3</sup>, 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 quarter. In addition, the RGA U.S. Reinsurance Transaction<sup>1</sup> and the

RGA Canadian Reinsurance Transaction reduced core earnings by $11 million and $9 million, respectively, in 2Q25 compared

with 2Q24.

<sup>1</sup> This item is a non-GAAP ratio. See "Non-GAAP and Other Financial Measures" below for more information.

<sup>2</sup> 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.

<sup>3</sup> 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** | **Quarterly Results** | **Quarterly Results** | **YTD 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, reflecting the

positive macro environment, in particular improved equity markets, offset by credit migration.

Excluding the impact of the change in ECL in both 2Q25 and 2Q24, core earnings and core EPS increased 2%<sup>1</sup> and 7%<sup>1</sup>,

respectively, on a constant exchange rate basis.

**Year-to-date profitability**

Net income attributed to shareholders for the six months endedJune 30, 2025 was $2,274 million compared with $1,908

million for the six months endedJune 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<sup>2</sup> 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 2025increased$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<sup>3</sup> 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 $1,219million 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 2025increased$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 2025compared 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 2025was 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 2024was 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** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** |
| ($ millions, unaudited) | **2Q25** | 1Q25 | 2Q24 | **2025** | 2024 |
| **Core earnings by segment**<sup>(1)</sup> |  |  |  |  |  |
| Asia  | **$720** | $705 | $616 | **$1425** | $1242 |
| 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**  | **$1726** | $1767 | $1737 | **$3493** | $3447 |

---

<sup>(1)</sup> 2024 quarterly and year-to-date core earnings 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** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** |
| ($ millions, unaudited) | **2Q25** | 1Q25 | 2Q24 | **2025** | 2024 |
| **Core earnings**  | **$1726** | $1767 | $1737 | **$3493** | $3447 |
| **Items excluded from core earnings:**  |  |  |  |  |  |
| Market experience gains (losses)<sup>(1)</sup> | **113** | (1332) | (665) | **(1219)** | (1444) |
| *Realized gains (losses) on debt instruments* | ***(5)*** | *(781)* | *(350)* | ***(786)*** | *(1020)* |
| *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<sup>(2),(3)</sup> | **(50)** | 50 | (30) | **-** | (95) |
| **Total items excluded from core earnings**  | **63** | (1282) | (695) | **(1219)** | (1539) |
| **Net income (loss) attributed to shareholders**  | **$1789** | $485 | $1042 | **$2274** | $1908 |

---

<sup>(1)</sup> 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.

<sup>(2)</sup> 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.

<sup>(3)</sup> 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** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** |
| ($ millions, unaudited) | **2Q25** | 1Q25 | 2Q24 | **2025** | 2024 |
| **Net income (loss) attributed to shareholders by segment** |  |  |  |  |  |
| Asia  | **$830** | $624 | $582 | **$1454** | $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**  | **$1789** | $485 | $1042 | **$2274** | $1908 |

---

**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%.

<sup>1</sup>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 slightincrease in the ratio compared

with 2Q24 is attributed to a 3%decrease in pre-tax core earnings<sup>1</sup>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. Total 2Q25general expenses decreased7% 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 the 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.

**A2Business Performance**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** |
| ($ millions, unless otherwise stated) (unaudited) | **2Q25** | 1Q25 | 2Q24 | **2025** | 2024 |
| Asia APE sales | **$1705** | $2027 | $1259 | **$3732** | $2540 |
| Canada APE sales  | **345** | 491 | 520 | **836** | 970 |
| U.S. APE sales  | **180** | 171 | 128 | **351** | 280 |
| Total APE sales<sup>(1)</sup> | **2230** | 2689 | 1907 | **4919** | 3790 |
| Asia new business value<sup>(2)</sup> | **622** | 657 | 474 | **1279** | 909 |
| Canada new business value  | **161** | 180 | 159 | **341** | 316 |
| U.S. new business value  | **63** | 70 | 58 | **133** | 107 |
| Total new business value<sup>(1),(2)</sup> | **846** | 907 | 691 | **1753** | 1332 |
| Asia new business CSM<sup>(3)</sup> | **663** | 715 | 478 | **1378** | 969 |
| Canada new business CSM  | **100** | 91 | 76 | **191** | 146 |
| U.S. new business CSM  | **119** | 101 | 74 | **220** | 171 |
| Total new business CSM<sup>(3)</sup> | **882** | 907 | 628 | **1789** | 1286 |
| Asia CSM net of NCI  | **15786** | 15904 | 13456 | **15786** | 13456 |
| Canada CSM | **4133** | 4052 | 3769 | **4133** | 3769 |
| U.S. CSM  | **2386** | 2329 | 3522 | **2386** | 3522 |
| Corporate and Other CSM | **11** | 11 | 11 | **11** | 11 |
| Total CSM net of NCI  | **22316** | 22296 | 20758 | **22316** | 20758 |
| Post-tax CSM net of NCI<sup>(2),(4)</sup> | **18527** | 18524 | 17150 | **18527** | 17150 |
| Global WAM gross flows ($ billions)<sup>(1)</sup> | **43.8** | 50.3 | 41.4 | **94.1** | 86.9 |
| Global WAM net flows ($ billions)<sup>(1)</sup> | **0.9** | 0.5 | 0.1 | **1.4** | 6.8 |
| Global WAM assets under management and administration ($billions)<sup>(4)</sup><br>| **1039.0** | 1026.3 | 943.9 | **1039.0** | 943.9 |
| Global WAM total invested assets ($ 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)<sup>(4),(5)</sup> | **1608.2** | 1603.1 | 1481.5 | **1608.2** | 1481.5 |
| Total invested assets ($ billions)<sup>(5)</sup> | **438.5** | 445.7 | 410.6 | **438.5** | 410.6 |
| Segregated funds net assets ($ billions)<sup>(5)</sup> | **436.6** | 428.6 | 406.1 | **436.6** | 406.1 |

---

<sup>(1)</sup> For more information on this metric, see "Non-GAAP and Other Financial Measures" below.

<sup>(2)</sup> 2024 quarterly and year-to-date new 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.

<sup>(3)</sup> New business CSM is net of NCI.

<sup>(4)</sup> This item is a non-GAAP financial measure. See "Non-GAAP and Other Financial Measures" below for more information.

<sup>(5)</sup> See section A4 below for more information.

<sup>1</sup> Percentage growth/declines in APE sales and NBV are stated on a constant exchange rate basis.

<sup>2</sup> Asia Other excludes Hong Kong and Japan.

<sup>3</sup> 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.

<sup>4</sup> 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%<sup>1</sup> compared with 2Q24, **new** 

**business value ("NBV")** was $846 million in 2Q25, an increaseof 20%<sup>1</sup> 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.<sup>2</sup> NBV

margin<sup>3</sup> of 40.0%was approximately in line with 2Q24, and increased sequentially compared with the first quarter of 2025

("1Q25").

• Canada APE sales decreased 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 a1%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, in2025

compared 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<sup>4</sup>, 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 2Q25increased 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 2Q25increasedcompared 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 2Q25increased 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.

<sup>1</sup> 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.

<sup>2</sup> 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.

<sup>3</sup> 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

**A3Financial Strength** 

---

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

---

<sup>(1)</sup> This item is disclosed under the Office of the Superintendent of Financial Institutions ("OSFI") Life Insurance Capital Adequacy Test Public Disclosure

Requirements guideline.

<sup>(2)</sup> This item is a non-GAAP ratio. See "Non-GAAP and Other Financial Measures" below for more information.

<sup>(3)</sup> 2024 financial 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.

<sup>(4)</sup> 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<sup>1</sup> 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<sup>2</sup>. 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**<sup>3</sup>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<sup>2</sup> and a lower number of common shares outstanding.

Adjusted book value decreased$1.7billion 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.

**A4Assets under Management and Administration ("AUMA")** 

AUMA as at June 30, 2025 was $1.6trillion, 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 decreased1% 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.

<sup>1</sup>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.

<sup>2</sup>Announced in July 2025, based on 2024 new business sales.

<sup>3</sup>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.

<sup>4</sup>Maven Clinic, Meet Maven, 2024.

Manulife Financial Corporation – Second Quarter 2025 12

**A5Impact 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.

**A6Business 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 launched 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 rolled 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 launched 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 launched 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<sup>1</sup>, 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 demonstrated 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.<sup>2</sup>

In addition, we became the first international life insurer to establish an office in the Dubai International Financial Centre<sup>3</sup>

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 continued 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 enhanced 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 partnered with Maven Clinic, the world's largest virtual clinic for women's and family health<sup>4</sup>, 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 expanded 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

**A7Global 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, tax-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

**BPERFORMANCE BY SEGMENT** 

**B1Asia**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ($ millions, unless otherwise stated) | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** |
| *Canadian dollars*  | **2Q25** | 1Q25 | 2Q24 | **2025** | 2024 |
| **Profitability:**  |  |  |  |  |  |
| Net income attributed to shareholders  | **$830** | $624 | $582 | **$1454** | $945 |
| Core earnings<sup>(1)</sup> | **720** | 705 | 616 | **1425** | 1242 |
| **Business performance:**  |  |  |  |  |  |
| Annualized premium equivalent sales  | **1705** | 2027 | 1259 | **3732** | 2540 |
| New business value  | **622** | 657 | 474 | **1279** | 909 |
| New business contractual service margin | **663** | 715 | 478 | **1378** | 969 |
| Contractual service margin net of NCI | **15786** | 15904 | 13456 | **15786** | 13456 |
| Assets under management ($ billions)<sup>(2)</sup> | **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$694 |
| Core earnings<sup>(1)</sup> | **520** | 492 | 449 | **1012** | 914 |
| **Business performance:**  |  |  |  |  |  |
| Annualized premium equivalent sales  | **1233** | 1412 | 920 | **2645** | 1870 |
| New business value  | **451** | 457 | 346 | **908** | 669 |
| New business contractual service margin | **480** | 498 | 349 | **978** | 713 |
| Contractual service margin net of NCI | **11568** | 11051 | 9825 | **11568** | 9825 |
| Assets under management ($ billions)<sup>(2)</sup> | **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 |

---

<sup>(1)</sup> See "Non-GAAP and Other Financial Measures" below for a reconciliation of quarterly core earnings to net income (loss) attributed to shareholders.

<sup>(2)</sup> 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 shareholders** 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$110million 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 in 2Q25increased13% compared with 2Q24, driven by an increase in expected earnings on insurance

contracts and higher expected investment earnings,both reflecting business growth, favourableclaims 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$16million 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 ofUS$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.

<sup>1</sup>Announced in July 2025, based on 2024 new business sales.

<sup>2</sup>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 of31% 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 2Q25increased28% compared with 2Q24, driven by

higher sales volumes, partially offset by business mix. NBV marginwas 40.0% in 2Q25 compared with 41.0% in 2Q24 and

38.1% in 1Q25. New business CSM of US$480 million in 2Q25increased34% compared with the same period of 2Q24

reflectinghigher sales volumes.Year-to-date APE sales of US$2,645 million in 2025increased41% 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 2025increased35%

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 2025increased36% 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 2Q25increased66% compared with 2Q24, reflecting higher sales across all

channels driven by strong growth in sales of savings and health and protection productsto bothmainland Chinese visitor

and domestic customers. Hong Kong NBV of US$242 million in 2Q25 increased49% 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

decreased5.5 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 2Q25increased42% compared with 2Q24, driven by higher sales

volumes, partially offset by product mix.

• Japan APE sales of US$94 million in 2Q25decreased14% compared with 2Q24due to lower sales of savings products

compared with strong sales in 2Q24. Japan NBV of US$32 million in 2Q25decreased47% compared with 2Q24, driven

by product mix and lower sales volumes. The NBV margin of 33.8% in 2Q25decreased21.2 percentage points compared

with 2Q24. Japan new business CSM of US$53 million in 2Q25decreased24% compared with 2Q24, driven by lower

sales volumes and product mix.

• Asia Other APE sales of US$627 million in 2Q25increased21% 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

2Q25increased35%compared with 2Q24, driven by higher sales volumes and product mix. The NBV margin of 34.0% in

2Q25increased4.6 percentage points compared with 2Q24. Asia Other new business CSM of US$220 million in 2Q25

increased56% 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 increaseof US$761 million compared with December 31,

2024. Organic CSM movement was an increaseof 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 the impact of lower interest rates and favourableequity market performance on invested assets and segregated

funds net assets.

**Business highlights**– In 2Q25, we:

• Demonstrated 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<sup>1</sup>;

• Became the first international life insurer to establish an office in the Dubai International Financial Centre<sup>2</sup>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;

• Rolled 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 identifyopportunities

to better deliver value to our customers; and,

• Further delivered on our commitment to helping our customers live healthier. In the Philippines, we entered the individual

medical reimbursement insurance marketwith the launch of Medical Secure. This product coversmedical expenses of our

customers, while also providingthem withcashless access to quality healthcare through a nationwide network of

accredited healthcare providers.

Manulife Financial Corporation – Second Quarter 2025 16

**B2Canada**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** |
| ($ millions, unless otherwise stated) | **2Q25** | 1Q25 | 2Q24 | **2025** | 2024 |
| **Profitability:**  |  |  |  |  |  |
| Net income attributed to shareholders  | **$390** | $222 | $79 | **$612** | $352 |
| Core earnings<sup>(1)</sup> | **419** | 374 | 402 | **793** | 766 |
| **Business performance:**  |  |  |  |  |  |
| Annualized premium equivalent sales  | **345** | 491 | 520 | **836** | 970 |
| Contractual service margin  | **4133** | 4052 | 3769 | **4133** | 3769 |
| Manulife Bank average net lending assets ($ billions)<sup>(2)</sup> | **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 |

---

<sup>(1)</sup> See "Non-GAAP and Other Financial Measures" below for a reconciliation of quarterly core earnings to net income (loss) attributed to shareholders.

<sup>(2)</sup> 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 million in 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 2Q25increased$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.

Year-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. Investment 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 2Q25decreased $175 million, or 34%, compared with 2Q24.

• Individual Insurance APE sales of $152 million in 2Q25increased$43 million, or 39%, compared with 2Q24, primarily due

to higher participating life insurance sales.

• Group Insurance APE sales of $136 million in 2Q25decreased $216 million or 61% compared with 2Q24, driven by the

non-recurrence of a large-case sale in 2Q24.

• Annuities APE sales of $57 million in 2Q25decreased $2 million, or 3% compared with 2Q24, primarily due to lower fixed

annuity sales.

Year-to-date APE sales were $836 million in 2025, $134million 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.

**Manulife Bank average net lending assets** were $27.6billion 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 management** were $148.8 billion as at June 30, 2025, an increase of $3.5 billion, or2%, compared with

December 31, 2024, due to higher total invested assets from business growth, partially offset by the net unfavourable impact

from interest rates and equity markets.

<sup>1</sup>Maven Clinic, Meet Maven, 2024.

Manulife Financial Corporation – Second Quarter 2025 17

**Businesshighlights**–In 2Q25, we:

• Partnered with Maven Clinic, the world's largest virtual clinic for women's and family health<sup>1</sup>, 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

• Launched an end-to-enddigital travel insurance platform that modernizes the distributor experience and simplifies the

purchasing process for Canadians and their families.

**B3U.S.**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| ($ millions, unless otherwise stated) | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** |
| *Canadian dollars*  | **2Q25** | 1Q25 | 2Q24 | **2025** | 2024 |
| **Profitability:**  |  |  |  |  |  |
| Net income (loss) attributed to shareholders  | **$36** | $(569) | $135 | **$(533)** | $27 |
| Core earnings<sup>(1)</sup> | **194** | 361 | 415 | **555** | 867 |
| **Business performance:**  |  |  |  |  |  |
| Annualized premium equivalent sales  | **180** | 171 | 128 | **351** | 280 |
| Contractual service margin  | **2386** | 2329 | 3522 | **2386** | 3522 |
| Assets under management ($ 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$18 |
| Core earnings<sup>(1)</sup> | **141** | 251 | 303 | **392** | 638 |
| **Business performance:**  |  |  |  |  |  |
| Annualized premium equivalent sales  | **130** | 120 | 93 | **250** | 206 |
| Contractual service margin  | **1748** | 1618 | 2572 | **1748** | 2572 |
| Assets under management ($ 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 |

---

<sup>(1)</sup> 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.

Expressed 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$303million 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$205million in 2Q24.

Core earnings in 2Q25decreased US$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. The 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 decreasedUS$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 2Q25increased40% compared with 2Q24, primarily reflecting continued demand for our

accumulation insurance products. Year-to-date APE sales in 2025 of US$250 million increased21% compared 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

favourable 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:

• Expanded 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

• Launched a GenAI functionalityinlong-term care ("LTC") to enhance automated claims processing to strengthen the value

of our LTC business and provide insights for future innovations.

**B4Global Wealth and Asset Management**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** |
| ($ millions, unless otherwise stated) | **2Q25** | 1Q25 | 2Q24 | **2025** | 2024 |
| **Profitability:**  |  |  |  |  |  |
| Net income attributed to shareholders | **$482** | $443 | $350 | **$925** | $715 |
| Core earnings<sup>(1)</sup> | **463** | 454 | 386 | **917** | 735 |
| Core EBITDA<sup>(2)</sup> | **623** | 608 | 513 | **1231** | 990 |
| Core EBITDA margin (%)<sup>(3)</sup> | **30.1%** | 28.4% | 26.3% | **29.2%** | 25.9% |
| **Business performance:**  |  |  |  |  |  |
| Sales  |  |  |  |  |  |
| Wealth and asset management gross flows | **43831** | 50274 | 41442 | **94105** | 86886 |
| Wealth and asset management net flows | **946** | 489 | 82 | **1435** | 6805 |
| Assets under management and administration ($ billions) | **1039.0** | 1026.3 | 943.9 | **1039.0** | 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)<sup>(2)</sup> | **1261.7** | 1251.4 | 1155.7 | **1261.7** | 1155.7 |
| Average assets under management and administration ($ billions) | **1005.3** | 1041.1 | 933.1 | **1022.4** | 916.7 |

---

<sup>(1)</sup> See "Non-GAAP and Other Financial Measures" below for a reconciliation of quarterly core earnings to net income (loss) attributed to shareholders.

<sup>(2)</sup> This item is a non-GAAP financial measure. See "Non-GAAP and Other Financial Measures" below for more information.

<sup>(3)</sup> 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 earningsincreased$77 million, or 19%, compared with 2Q24, driven by 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 management. 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 380basis 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

$20million 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 2024and 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 2Q25increased 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 in2Q25increased 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 2Q25increased 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-datenet 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.

**Assets under management and administration** of $1,039.0billion as at June 30, 2025increased4%compared with

December 31, 2024. The increase was primarily driven 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 $1,261.7billion compared with $1,257.8billion as at December

31, 2024.

Segregated funds net assets were $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 equity markets.

**Business highlights**–In 2Q25, we:

• Continued 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;

• Enhanced 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, theenhancementsstreamline portfolio oversight,

accelerate transaction execution, and empower advisors to deliver more personalized and insightful financial guidance;

and

• Launched 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

**B5Corporate and Other**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD 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)<sup>(1)</sup> | **(70)** | (127) | (82) | **(197)** | (163) |

---

<sup>(1)</sup> 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 gainof $121 million in 2Q25 compared with a net chargeof $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 $12million 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 California 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

**CRISK 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.

**C1Variable 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** | **June 30, 2025** | **June 30, 2025** | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| ($ millions) | Guarantee <br>value<sup>(1)</sup><br>| Fund value | Net amount at <br>risk<sup>(1),(2),(3)</sup><br>| Guarantee <br>value<sup>(1)</sup><br>| Fund value | Net amount at <br>risk<sup>(1),(2),(3)</sup><br>|
| Guaranteed minimum income benefit | **$3292** | **$2548** | **$811** | $3628 | $2780 | $918 |
| Guaranteed minimum withdrawal benefit | **30875** | **31375** | **3023** | 33473 | 33539 | 3339 |
| Guaranteed minimum accumulation benefit | **18903** | **19192** | **23** | 18987 | 19097 | 70 |
| Gross living benefits<sup>(4)</sup> | **53070** | **53115** | **3857** | 56088 | 55416 | 4327 |
| Gross death benefits<sup>(5)</sup> | **8072** | **19168** | **540** | 8612 | 19851 | 644 |
| Total gross of reinsurance | **61142** | **72283** | **4397** | 64700 | 75267 | 4971 |
| Living benefits reinsured | **21478** | **22092** | **2695** | 23768 | 23965 | 3016 |
| Death benefits reinsured | **3133** | **2588** | **223** | 3430 | 2776 | 289 |
| Total reinsured | **24611** | **24680** | **2918** | 27198 | 26741 | 3305 |
| **Total, net of reinsurance** | **$36531** | **$47603** | **$1479** | $37502 | $48526 | $1666 |

---

<sup>(1)</sup> 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.

<sup>(2)</sup> 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.

<sup>(3)</sup> 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.

<sup>(4)</sup> 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.

<sup>(5)</sup> 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

**C2Caution 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.

**C3Publicly 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**<sup>(1)</sup>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **As at June 30, 2025** | **Net income attributed to shareholders** | **Net income attributed to shareholders** | **Net income attributed to shareholders** | **Net income attributed to shareholders** | **Net income attributed to shareholders** | **Net income attributed to shareholders** |
| ($ millions) | -30% | -20% | -10% | +10% | +20% | +30% |
| **Underlying sensitivity** |  |  |  |  |  |  |
| Variable annuity and segregated fund guarantees<sup>(2)</sup> | **$(1980)** | **$(1200)** | **$(540)** | **$450** | **$830** | **$1150** |
| General fund equity investments<sup>(3)</sup> | **(1200)** | **(790)** | **(400)** | **390** | **790** | **1180** |
| Total underlying sensitivity before hedging | **(3180)** | **(1990)** | **(940)** | **840** | **1620** | **2330** |
| Impact of macro and dynamic hedge assets<sup>(4)</sup> | **750** | **450** | **200** | **(160)** | **(280)** | **(380)** |
| Net potential impact on net income attributed to <br>shareholders after impact of hedging and before <br>impact of reinsurance<br>| **(2430)** | **(1540)** | **(740)** | **680** | **1340** | **1950** |
| Impact of reinsurance | **1210** | **740** | **340** | **(290)** | **(540)** | **(760)** |
| **Net potential impact on net income attributed to** <br>**shareholders after impact of hedging and** <br>**reinsurance**<br>| **$(1220)** | **$(800)** | **$(400)** | **$390** | **$800** | **$1190** |
| As at December 31, 2024 | **Net income attributed to shareholders** | **Net income attributed to shareholders** | **Net income attributed to shareholders** | **Net income attributed to shareholders** | **Net income attributed to shareholders** | **Net income attributed to shareholders** |
| ($ millions) | -30% | -20% | -10% | +10% | +20% | +30% |
| **Underlying sensitivity** |  |  |  |  |  |  |
| Variable annuity and segregated fund guarantees<sup>(2)</sup> | $(2050) | $(1240) | $(560) | $470 | $860 | $1190 |
| General fund equity investments<sup>(3)</sup> | (1240) | (820) | (400) | 390 | 780 | 1180 |
| Total underlying sensitivity before hedging | (3290) | (2060) | (960) | 860 | 1640 | 2370 |
| Impact of macro and dynamic hedge assets<sup>(4)</sup> | 720 | 430 | 190 | (150) | (260) | (360) |
| Net potential impact on net income attributed to <br>shareholders after impact of hedging and before <br>impact of reinsurance<br>| (2570) | (1630) | (770) | 710 | 1380 | 2010 |
| Impact of reinsurance | 1320 | 810 | 370 | (320) | (590) | (830) |
| **Net potential impact on net income attributed to** <br>**shareholders after impact of hedging and** <br>**reinsurance**<br>| $(1250) | $(820) | $(400) | $390 | $790 | $1180 |

---

<sup>(1)</sup> See "Caution Related to Sensitivities" above.

<sup>(2)</sup> 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.

<sup>(3)</sup> 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.

<sup>(4)</sup> 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**<sup>(1),(2)</sup>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **As at June 30, 2025** |  |  |  |  |  |  |
| ($ millions) | -30% | -20% | -10% | +10% | +20% | +30% |
| Variable annuity and segregated fund guarantees <br>reported in CSM<br>| **$(3230)** | **$(1990)** | **$(920)** | **$800** | **$1500** | **$2130** |
| Impact of risk mitigation – hedging<sup>(3)</sup> | **990** | **590** | **260** | **(210)** | **(370)** | **(500)** |
| Impact of risk mitigation – reinsurance<sup>(3)</sup> | **1540** | **940** | **430** | **(370)** | **(690)** | **(970)** |
| VA net of risk mitigation | **(700)** | **(460)** | **(230)** | **220** | **440** | **660** |
| General fund equity | **(1210)** | **(790)** | **(380)** | **380** | **770** | **1150** |
| **Contractual service margin ($ millions, pre-tax)** | **$(1910)** | **$(1250)** | **$(610)** | **$600** | **$1210** | **$1810** |
| **Other comprehensive income attributed to** <br>**shareholders ($ millions, post-tax)**<sup>(4)</sup><br>| **$(820)** | **$(550)** | **$(270)** | **$270** | **$530** | **$780** |
| **Total comprehensive income attributed to** <br>**shareholders ($ millions, post-tax)**<br>| **$(2040)** | **$(1350)** | **$(670)** | **$660** | **$1330** | **$1970** |
| **MLI's LICAT ratio (change in percentage points)** | **(2)** | **(1)** | **(1)** | **1** | **1** | **2** |
| As at December 31, 2024 |  |  |  |  |  |  |
| ($ millions) | -30% | -20% | -10% | +10% | +20% | +30% |
| Variable annuity and segregated fund guarantees <br>reported in CSM<br>| $(3420) | $(2110) | $(970) | $840 | $1580 | $2250 |
| Impact of risk mitigation – hedging<sup>(3)</sup> | 940 | 560 | 250 | (190) | (350) | (470) |
| Impact of risk mitigation – reinsurance<sup>(3)</sup> | 1670 | 1020 | 470 | (400) | (740) | (1050) |
| VA net of risk mitigation | (810) | (530) | (250) | 250 | 490 | 730 |
| General fund equity | (1140) | (740) | (370) | 370 | 750 | 1110 |
| **Contractual service margin ($ millions, pre-tax)** | $(1950) | $(1270) | $(620) | $620 | $1240 | $1840 |
| **Other comprehensive income attributed to** <br>**shareholders ($ millions, post-tax)**<sup>(4)</sup><br>| $(840) | $(560) | $(280) | $270 | $530 | $790 |
| **Total comprehensive income attributed to** <br>**shareholders ($ millions, post-tax)**<br>| $(2090) | $(1380) | $(680) | $660 | $1320 | $1970 |
| **MLI's LICAT ratio (change in percentage points)** | (1) | (1) | - | 1 | 1 | 1 |

---

<sup>(1)</sup> See "Caution Related to Sensitivities" above.

<sup>(2)</sup> 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.

<sup>(3)</sup> 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.

<sup>(4)</sup> The impact of financial risk and changes to interest rates for variable annuity contracts is not expected to generate sensitivity in Other Comprehensive Income.

**C4Interest 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**<sup>(1),(2),(3)</sup>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **As at June 30, 2025** | Interest rates | Interest rates | Corporate spreads | Corporate spreads | Swap 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 | Interest rates | Corporate spreads | Corporate spreads | Swap 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 | - | - |

---

<sup>(1)</sup> See "Caution Related to Sensitivities" above.

<sup>(2)</sup> 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.

<sup>(3)</sup> 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**<sup>(1),(2),(3),(4),(5)</sup>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **As at June 30, 2025** | Interest rates | Interest rates | Corporate spreads | Corporate spreads | Swap 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 | Interest rates | Corporate spreads | Corporate spreads | Swap spreads | Swap spreads |
| (change in percentage points)  | -50bp | +50bp | -50bp | +50bp | -20bp | +20bp |
| MLI's LICAT ratio  | - | - | (3) | 3 | - | - |

---

<sup>(1)</sup> See "Caution Related to Sensitivities" above.

<sup>(2)</sup> 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.

<sup>(3)</sup> 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.

<sup>(4)</sup> LICAT impacts reflect the impact of anticipated scenario switches.

<sup>(5)</sup> 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 Scenario 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.

<sup>1</sup> LICAT geographic locations to determine the most adverse scenario include North America, the United Kingdom, Europe, Japan, and Other Region.

<sup>2</sup> See "Caution Regarding Forward-looking Statements".

<sup>3</sup> 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<sup>1</sup> 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.<sup>2</sup>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.

**C5Alternative 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<sup>3</sup> 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**<sup>(1)</sup>

---

| | | | | |
|:---|:---|:---|:---|:---|
| **As at** | **June 30, 2025** | **June 30, 2025** | December 31, 2024 | December 31, 2024 |
| ($ millions, post-tax except CSM) | -10% | +10% | -10% | +10% |
| CSM excluding NCI | **$(200)** | **$200** | $(200) | $200 |
| Net income attributed to shareholders<sup>(2)</sup> | **(2300)** | **2300** | (2500) | 2500 |
| Other comprehensive income attributed to shareholders | **(200)** | **200** | (200) | 200 |
| Total comprehensive income attributed to shareholders | **(2500)** | **2500** | (2700) | 2700 |

---

<sup>(1)</sup> See "Caution Related to Sensitivities" above.

<sup>(2)</sup> 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**<sup>(1)</sup>

---

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

---

<sup>(1)</sup> See "Caution Related to Sensitivities" above.

**C6Risk Management and Risk Factors Update**<sup>2</sup>

We have outlined our overall approach to risk management in our 2024Annual 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

**DCRITICAL 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.

**D1Critical 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.

**D2Sensitivity 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**<sup>(1)</sup>

---

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

---

<sup>(1)</sup> Note that the impact of these assumptions is not linear.

<sup>(2)</sup> 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.

**D3Accounting 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 endedJune 30, 2025.

Manulife Financial Corporation – Second Quarter 2025 28

**EOTHER**

**E1Outstanding Common Shares – Selected Information** 

As at July 31, 2025, MFC had 1,698,535,952 common shares outstanding.

**E2Legal 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

endedJune 30, 2025.

**E3Non-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** | **2Q25** | **2Q25** | **2Q25** | **2Q25** | **2Q25** |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| Income (loss) before income taxes | **$1092** | **$526** | **$31** | **$575** | **$37** | **$2261** |
| 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** | **1923** |
| 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** | **1789** |
| 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 <br>directly through income<br>| **-** | **-** | **-** | **-** | **-** | **-** |
| Restructuring charge | **-** | **-** | **-** | **-** | **-** | **-** |
| Reinsurance transactions, tax-related items and other | **(51)** | **(2)** | **-** | **3** | **-** | **(50)** |
| **Core earnings (post-tax)** | **$720** | **$419** | **$194** | **$463** | **$(70)** | **$1726** |
| Income tax on core earnings (see above) | **94** | **110** | **37** | **89** | **(32)** | **298** |
| **Core earnings (pre-tax)** | **$814** | **$529** | **$231** | **$552** | **$(102)** | **$2024** |

---

**Core earnings, CER basis and U.S. dollars – 2Q25**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **2Q25** | **2Q25** | **2Q25** | **2Q25** | **2Q25** | **2Q25** |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| **Core earnings (post-tax)** | **$720** | **$419** | **$194** | **$463** | **$(70)** | **$1726** |
| CER adjustment<sup>(1)</sup> | **-** | **-** | **-** | **-** | **-** | **-** |
| **Core earnings, CER basis (post-tax)** | **$720** | **$419** | **$194** | **$463** | **$(70)** | **$1726** |
| Income tax on core earnings, CER basis<sup>(2)</sup> | **94** | **110** | **37** | **89** | **(32)** | **298** |
| **Core earnings, CER basis (pre-tax)** | **$814** | **$529** | **$231** | **$552** | **$(102)** | **$2024** |
| **Core earnings (U.S. dollars) – Asia and U.S. segments** | **Core earnings (U.S. dollars) – Asia and U.S. segments** |  |  |  |  |  |
| **Core earnings (post-tax)**<sup>(3)</sup>**, US $** | **$520** |  | **$141** |  |  |  |
| CER adjustment US $<sup>(1)</sup> | **-** |  | **-** |  |  |  |
| **Core earnings, CER basis (post-tax), US $** | **$520** |  | **$141** |  |  |  |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(2)</sup> Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.

<sup>(3)</sup> 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 shareholders – 1Q25**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 1Q25 | 1Q25 | 1Q25 | 1Q25 | 1Q25 | 1Q25 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| 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) | (1332) |
| Changes in actuarial methods and assumptions that flow <br>directly through income<br>| - | - | - | - | - | - |
| Restructuring charge | - | - | - | - | - | - |
| Reinsurance transactions, tax-related items and other | (4) | - | - | - | 54 | 50 |
| **Core earnings (post-tax)** | $705 | $374 | $361 | $454 | $(127) | $1767 |
| Income tax on core earnings (see above) | 101 | 89 | 84 | 86 | (29) | 331 |
| **Core earnings (pre-tax)** | $806 | $463 | $445 | $540 | $(156) | $2098 |

---

**Core earnings, CER basis and U.S. dollars – 1Q25**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 1Q25 | 1Q25 | 1Q25 | 1Q25 | 1Q25 | 1Q25 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| **Core earnings (post-tax)** | $705 | $374 | $361 | $454 | $(127) | $1767 |
| CER adjustment<sup>(1)</sup> | (16) | - | (13) | (11) | - | (40) |
| **Core earnings, CER basis (post-tax)** | $689 | $374 | $348 | $443 | $(127) | $1727 |
| Income tax on core earnings, CER basis<sup>(2)</sup> | 99 | 89 | 81 | 84 | (29) | 324 |
| **Core earnings, CER basis (pre-tax)** | $788 | $463 | $429 | $527 | $(156) | $2051 |
| **Core earnings (U.S. dollars) – Asia and U.S. segments** | **Core earnings (U.S. dollars) – Asia and U.S. segments** |  |  |  |  |  |
| **Core earnings (post-tax)**<sup>(3)</sup>**, US $** | $492 |  | $251 |  |  |  |
| CER adjustment US $<sup>(1)</sup> | 6 |  | - |  |  |  |
| **Core earnings, CER basis (post-tax), US $** | $498 |  | $251 |  |  |  |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(2)</sup> Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.

<sup>(3)</sup> 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**<sup>(1)</sup>

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 4Q24 | 4Q24 | 4Q24 | 4Q24 | 4Q24 | 4Q24 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| Income (loss) before income taxes | $781 | $579 | $112 | $419 | $222 | $2113 |
| 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 | 1707 |
| 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 | 1638 |
| 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 <br>directly through income<br>| - | - | - | - | - | - |
| 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 | $1907 |
| Income tax on core earnings (see above) | 97 | 97 | 98 | 83 | (30) | 345 |
| **Core earnings (pre-tax)** | $737 | $487 | $510 | $542 | $(24) | $2252 |

---

<sup>(1)</sup> 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 | 4Q24 | 4Q24 | 4Q24 | 4Q24 | 4Q24 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| **Core earnings (post-tax)** | $640 | $390 | $412 | $459 | $6 | $1907 |
| CER adjustment<sup>(1)</sup> | - | - | (5) | (4) | - | (9) |
| **Core earnings, CER basis (post-tax)** | $640 | $390 | $407 | $455 | $6 | $1898 |
| Income tax on core earnings, CER basis<sup>(2)</sup> | 98 | 97 | 96 | 82 | (30) | 343 |
| **Core earnings, CER basis (pre-tax)** | $738 | $487 | $503 | $537 | $(24) | $2241 |
| **Core earnings (U.S. dollars) – Asia and U.S. segments** | **Core earnings (U.S. dollars) – Asia and U.S. segments** |  |  |  |  |  |
| **Core earnings (post-tax)**<sup>(3)</sup>**, US $** | $457 |  | $294 |  |  |  |
| CER adjustment US $<sup>(1)</sup> | 5 |  | - |  |  |  |
| **Core earnings, CER basis (post-tax), US $** | $462 |  | $294 |  |  |  |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(2)</sup> Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.

<sup>(3)</sup> 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 shareholders – 3Q24**<sup>(1)</sup>

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 3Q24 | 3Q24 | 3Q24 | 3Q24 | 3Q24 | 3Q24 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| Income (loss) before income taxes | $1059 | $578 | $18 | $519 | $167 | $2341 |
| 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)** | 1020 | 464 | 5 | 499 | 79 | 2067 |
| 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 | 1839 |
| 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 <br>directly through income<br>| (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) | $1828 |
| Income tax on core earnings (see above) | 100 | 104 | 112 | 26 | (27) | 315 |
| **Core earnings (pre-tax)** | $684 | $516 | $523 | $505 | $(85) | $2143 |

---

<sup>(1)</sup> 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 | 3Q24 | 3Q24 | 3Q24 | 3Q24 | 3Q24 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| **Core earnings (post-tax)** | $584 | $412 | $411 | $479 | $(58) | $1828 |
| CER adjustment<sup>(1)</sup> | 10 | - | 7 | 5 | 1 | 23 |
| **Core earnings, CER basis (post-tax)** | $594 | $412 | $418 | $484 | $(57) | $1851 |
| Income tax on core earnings, CER basis<sup>(2)</sup> | 101 | 104 | 114 | 26 | (27) | 318 |
| **Core earnings, CER basis (pre-tax)** | $695 | $516 | $532 | $510 | $(84) | $2169 |
| **Core earnings (U.S. dollars) – Asia and U.S. segments** | **Core earnings (U.S. dollars) – Asia and U.S. segments** |  |  |  |  |  |
| **Core earnings (post-tax)**<sup>(3)</sup>**, US $** | $428 |  | $302 |  |  |  |
| CER adjustment US $<sup>(1)</sup> | 1 |  | - |  |  |  |
| **Core earnings, CER basis (post-tax), US $** | $429 |  | $302 |  |  |  |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(2)</sup> Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.

<sup>(3)</sup> 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**<sup>(1)</sup>

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 2Q24 | 2Q24 | 2Q24 | 2Q24 | 2Q24 | 2Q24 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| Income (loss) before income taxes | $763 | $141 | $156 | $383 | $(59) | $1384 |
| 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) | 1132 |
| 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) | 1042 |
| 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 <br>directly through income<br>| - | - | - | - | - | - |
| Restructuring charge | - | - | - | - | - | - |
| Reinsurance transactions, tax-related items and other | 24 | 41 | - | (29) | (66) | (30) |
| **Core earnings (post-tax)** | $616 | $402 | $415 | $386 | $(82) | $1737 |
| Income tax on core earnings (see above) | 95 | 107 | 95 | 59 | (36) | 320 |
| **Core earnings (pre-tax)** | $711 | $509 | $510 | $445 | $(118) | $2057 |

---

<sup>(1)</sup> 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 | 2Q24 | 2Q24 | 2Q24 | 2Q24 | 2Q24 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| **Core earnings (post-tax)** | $616 | $402 | $415 | $386 | $(82) | $1737 |
| CER adjustment<sup>(1)</sup> | 19 | - | 4 | 3 | - | 26 |
| **Core earnings, CER basis (post-tax)** | $635 | $402 | $419 | $389 | $(82) | $1763 |
| Income tax on core earnings, CER basis<sup>(2)</sup> | 96 | 107 | 97 | 59 | (36) | 323 |
| **Core earnings, CER basis (pre-tax)** | $731 | $509 | $516 | $448 | $(118) | $2086 |
| **Core earnings (U.S. dollars) – Asia and U.S. segments** | **Core earnings (U.S. dollars) – Asia and U.S. segments** |  |  |  |  |  |
| **Core earnings (post-tax)**<sup>(3)</sup>**, US $** | $449 |  | $303 |  |  |  |
| CER adjustment US $<sup>(1)</sup> | 10 |  | - |  |  |  |
| **Core earnings, CER basis (post-tax), US $** | $459 |  | $303 |  |  |  |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(2)</sup> Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.

<sup>(3)</sup> 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** | **YTD 2025** | **YTD 2025** | **YTD 2025** | **YTD 2025** | **YTD 2025** |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| Income (loss) before income taxes | **$1962** | **$831** | **$(700)** | **$1103** | **$(236)** | **$2960** |
| 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)** | **1682** | **657** | **(533)** | **926** | **(186)** | **2546** |
| 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)** | **1454** | **612** | **(533)** | **925** | **(184)** | **2274** |
| Less: Items excluded from core earnings (post-tax) |  |  |  |  |  |  |
| Market experience gains (losses) | **84** | **(179)** | **(1088)** | **5** | **(41)** | **(1219)** |
| Changes in actuarial methods and assumptions that <br>flow directly through income<br>| **-** | **-** | **-** | **-** | **-** | **-** |
| Restructuring charge | **-** | **-** | **-** | **-** | **-** | **-** |
| Reinsurance transactions, tax-related items and other | **(55)** | **(2)** | **-** | **3** | **54** | **-** |
| **Core earnings (post-tax)** | **$1425** | **$793** | **$555** | **$917** | **$(197)** | **$3493** |
| Income tax on core earnings (see above) | **195** | **199** | **121** | **175** | **(61)** | **629** |
| **Core earnings (pre-tax)** | **$1620** | **$992** | **$676** | **$1092** | **$(258)** | **$4122** |

---

**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** | **YTD 2025** | **YTD 2025** | **YTD 2025** | **YTD 2025** | **YTD 2025** |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| **Core earnings (post-tax)** | **$1425** | **$793** | **$555** | **$917** | **$(197)** | **$3493** |
| CER adjustment<sup>(1)</sup> | **(16)** | **-** | **(13)** | **(11)** | **-** | **(40)** |
| **Core earnings, CER basis (post-tax)** | **$1409** | **$793** | **$542** | **$906** | **$(197)** | **$3453** |
| Income tax on core earnings, CER basis<sup>(2)</sup> | **193** | **199** | **118** | **173** | **(61)** | **622** |
| **Core earnings, CER basis (pre-tax)** | **$1602** | **$992** | **$660** | **$1079** | **$(258)** | **$4075** |
| **Core earnings (U.S. dollars) – Asia and U.S. segments** | **Core earnings (U.S. dollars) – Asia and U.S. segments** |  |  |  |  |  |
| **Core earnings (post-tax)**<sup>(3)</sup>**, US $** | **$1012** |  | **$392** |  |  |  |
| CER adjustment US $<sup>(1)</sup> | **6** |  | **-** |  |  |  |
| **Core earnings, CER basis (post-tax), US $** | **$1018** |  | **$392** |  |  |  |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(2)</sup> Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.

<sup>(3)</sup> 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**<sup>(1)</sup>

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | YTD 2024 | YTD 2024 | YTD 2024 | YTD 2024 | YTD 2024 | YTD 2024 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| Income (loss) before income taxes | $1357 | $522 | $2 | $809 | $(54) | $2636 |
| 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)** | 1092 | 400 | 27 | 716 | (131) | 2104 |
| 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) | 1908 |
| Less: Items excluded from core earnings (post-tax) |  |  |  |  |  |  |
| Market experience gains (losses) | (308) | (455) | (814) | (1) | 134 | (1444) |
| Changes in actuarial methods and assumptions that flow <br>directly through income<br>| - | - | - | - | - | - |
| Restructuring charge | - | - | - | - | - | - |
| Reinsurance transactions, tax-related items and other | 11 | 41 | (26) | (19) | (102) | (95) |
| **Core earnings (post-tax)** | $1242 | $766 | $867 | $735 | $(163) | $3447 |
| Income tax on core earnings (see above) | 193 | 198 | 198 | 125 | (64) | 650 |
| **Core earnings (pre-tax)** | $1435 | $964 | $1065 | $860 | $(227) | $4097 |

---

<sup>(1)</sup> 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 | YTD 2024 | YTD 2024 | YTD 2024 | YTD 2024 | YTD 2024 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| **Core earnings (post-tax)** | $1242 | $766 | $867 | $735 | $(163) | $3447 |
| CER adjustment<sup>(1)</sup> | 38 | - | 16 | 10 | 1 | 65 |
| **Core earnings, CER basis (post-tax)** | $1280 | $766 | $883 | $745 | $(162) | $3512 |
| Income tax on core earnings, CER basis<sup>(2)</sup> | 197 | 198 | 202 | 126 | (63) | 660 |
| **Core earnings, CER basis (pre-tax)** | $1477 | $964 | $1085 | $871 | $(225) | $4172 |
| **Core earnings (U.S. dollars) – Asia and U.S. segments** | **Core earnings (U.S. dollars) – Asia and U.S. segments** |  |  |  |  |  |
| **Core earnings (post-tax)**<sup>(3)</sup>**, US $** | $914 |  | $638 |  |  |  |
| CER adjustment US $<sup>(1)</sup> | 11 |  | - |  |  |  |
| **Core earnings, CER basis (post-tax), US $** | $925 |  | $638 |  |  |  |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(2)</sup> Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.

<sup>(3)</sup> 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**<sup>(1)</sup>

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| Income (loss) before income taxes | $3197 | $1679 | $132 | $1747 | $335 | $7090 |
| Income tax (expenses) recoveries |  |  |  |  |  |  |
| Core earnings | (390) | (399) | (408) | (234) | 121 | (1310) |
| Items excluded from core earnings | (70) | 46 | 411 | 86 | (375) | 98 |
| Income tax (expenses) recoveries | (460) | (353) | 3 | (148) | (254) | (1212) |
| **Net income (post-tax)** | 2737 | 1326 | 135 | 1599 | 81 | 5878 |
| 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)** | 2355 | 1221 | 135 | 1597 | 77 | 5385 |
| Less: Items excluded from core earnings (post-tax) |  |  |  |  |  |  |
| Market experience gains (losses) | (178) | (384) | (1327) | 4 | 435 | (1450) |
| Changes in actuarial methods and assumptions that flow <br>directly through income<br>| (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)** | $2466 | $1568 | $1690 | $1673 | $(215) | $7182 |
| Income tax on core earnings (see above) | 390 | 399 | 408 | 234 | (121) | 1310 |
| **Core earnings (pre-tax)** | $2856 | $1967 | $2098 | $1907 | $(336) | $8492 |

---

<sup>(1)</sup> 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 | 2024 | 2024 | 2024 | 2024 | 2024 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| **Core earnings (post-tax)** | $2466 | $1568 | $1690 | $1673 | $(215) | $7182 |
| CER adjustment<sup>(1)</sup> | 49 | - | 17 | 11 | 2 | 79 |
| **Core earnings, CER basis (post-tax)** | $2515 | $1568 | $1707 | $1684 | $(213) | $7261 |
| Income tax on core earnings, CER basis<sup>(2)</sup> | 396 | 399 | 412 | 236 | (121) | 1322 |
| **Core earnings, CER basis (pre-tax)** | $2911 | $1967 | $2119 | $1920 | $(334) | $8583 |
| **Core earnings (U.S. dollars) – Asia and U.S. segments** | **Core earnings (U.S. dollars) – Asia and U.S. segments** |  |  |  |  |  |
| **Core earnings (post-tax)**<sup>(3)</sup>**, US $** | $1799 |  | $1234 |  |  |  |
| CER adjustment US $<sup>(1)</sup> | 17 |  | - |  |  |  |
| **Core earnings, CER basis (post-tax), US $** | $1816 |  | $1234 |  |  |  |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(2)</sup> Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.

<sup>(3)</sup> 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.

<sup>1</sup> 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**<sup>1</sup>

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

**Asia**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results**<br>|
| (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<sup>(1)</sup> | **159** | 149 | 151 | 123 | 145 | **308** | 296 | 570 |
| *International High Net Worth* |  |  |  |  |  |  |  | *114* |
| *Mainland China* |  |  |  |  |  |  |  | *41* |
| *Singapore* |  |  |  |  |  |  |  | *216* |
| *Vietnam* |  |  |  |  |  |  |  | *126* |
| Other Emerging Markets<sup>(2)</sup> |  |  |  |  |  |  |  | *73* |
| Regional Office | **5** | - | (11) | (9) | (8) | **5** | (14) | (34) |
| **Total Asia core earnings** | **$520** | $492 | $457 | $428 | $449 | **$1012** | $914 | $1799 |

---

<sup>(1)</sup> Core earnings for Asia Other are reported by country annually, on a full year basis.

<sup>(2)</sup> Other Emerging Markets includes Indonesia, the Philippines, Malaysia, Thailand, Cambodia and Myanmar.

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results**<br>|
| (US $ millions), CER basis<sup>(1)</sup> | **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<sup>(2)</sup> | **159** | 150 | 150 | 123 | 146 | **309** | 295 | 569 |
| *International High Net Worth* |  |  |  |  |  |  |  | *114* |
| *Mainland China* |  |  |  |  |  |  |  | *41* |
| *Singapore* |  |  |  |  |  |  |  | *222* |
| *Vietnam* |  |  |  |  |  |  |  | *120* |
| *Other Emerging Markets*<sup>(3)</sup> |  |  |  |  |  |  |  | *72* |
| Regional Office | **5** | - | (11) | (9) | (8) | **5** | (14) | (34) |
| **Total Asia core earnings, CER basis** | **$520** | $498 | $462 | $429 | $459 | **$1018** | $925 | $1816 |

---

<sup>(1)</sup> Core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 2Q25.

<sup>(2)</sup> Core earnings for Asia Other are reported by country annually, on a full year basis.

<sup>(3)</sup> Other Emerging Markets includes Indonesia, the Philippines, Malaysia, Thailand, Cambodia and Myanmar.

**Canada**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results**<br>|
| (Canadian $ in millions) | **2Q25** | 1Q25 | 4Q24 | 3Q24 | 2Q24 | **2025** | 2024 | 2024 |
| Insurance | **$326** | $280 | $295 | $320 | $307 | **$606** | $573 | $1188 |
| 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 | $1568 |

---

**U.S.**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results** <br>|
| (US $ in millions) | **2Q25** | 1Q25 | 4Q24 | 3Q24 | 2Q24 | **2025** | 2024 | 2024 |
| U.S. Insurance | **$114** | $229 | $256 | $268 | $254 | **$343** | $540 | $1064 |
| U.S. Annuities | **27** | 22 | 38 | 34 | 49 | **49** | 98 | 170 |
| **Total U.S. core earnings** | **$141** | $251 | $294 | $302 | $303 | **$392** | $638 | $1234 |

---

Manulife Financial Corporation – Second Quarter 2025 40

**Global WAM by business line**

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results**<br>|
| (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 | $1673 |
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results**<br>|
| (Canadian $ in millions), CER basis<sup>(1)</sup> | **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 | $1684 |

---

<sup>(1)</sup> 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** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results**<br>|
| (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 | $1673 |
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results**<br>|
| (Canadian $ in millions), CER basis<sup>(1)</sup> | **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 | $1684 |

---

<sup>(1)</sup> 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 <br>rates in effect in the applicable reporting period, unless <br>otherwise stated) | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results**<br>|
| ($ millions, post-tax and based on actual foreign exchange <br>rates in effect in the applicable reporting period, unless <br>otherwise stated) | **2Q25** | 1Q25 | 4Q24 | 3Q24 | 2Q24 | **2025** | 2024 | 2024 |
| Core earnings<sup>(1)</sup> | **$1726** | $1767 | $1907 | $1828 | $1737 | **$3493** | $3447 | $7182 |
| Less: Preferred share dividends and other equity <br>distributions<sup>(2)</sup><br>| **103** | 57 | 101 | 56 | 99 | **160** | 154 | 311 |
| **Core earnings available to common shareholders**<sup>(1)</sup> | **1623** | 1710 | 1806 | 1772 | 1638 | **3333** | 3293 | 6871 |
| CER adjustment<sup>(3)</sup> | **-** | (40) | (9) | 23 | 26 | **(40)** | 65 | 79 |
| **Core earnings available to common shareholders,** <br>**CER basis**<sup>(1)</sup><br>| **$1623** | $1670 | $1797 | $1795 | $1664 | **$3293** | $3358 | $6950 |

---

<sup>(1)</sup> 2024 core earnings 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.

<sup>(2)</sup> 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.

<sup>(3)</sup> 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** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results**<br>|
| ($ millions, unless otherwise stated) | **2Q25** | 1Q25 | 4Q24 | 3Q24 | 2Q24 | **2025** | 2024 | 2024 |
| Core earnings available to common <br>shareholders<sup>(1)</sup><br>| **$1623** | $1710 | $1806 | $1772 | $1638 | **$3333** | $3293 | $6871 |
| **Annualized core earnings available** <br>**to common shareholders (post-**<br>**tax)**<br>| **$6510** | $6935 | $7185 | $7049 | $6588 | **$6721** | $6622 | $6871 |
| **Average common shareholders'** <br>**equity (see below)**<br>| **$43448** | $44394 | $43613 | $42609 | $41947 | **$43921** | $41466 | $42288 |
| **Core ROE (annualized) (%)**<sup>(1)</sup> | **15.0%** | 15.6% | 16.5% | 16.6% | 15.7% | **15.3%** | 16.0% | 16.2% |
| **Average common shareholders'** <br>**equity**<br>|  |  |  |  |  |  |  |  |
| Total shareholders' and other equity | **$49080** | $51135 | $50972 | $49573 | $48965 | **$49080** | $48965 | $50972 |
| Less: Preferred shares and other <br>equity<br>| **6660** | 6660 | 6660 | 6660 | 6660 | **6660** | 6660 | 6660 |
| **Common shareholders' equity** | **$42420** | $44475 | $44312 | $42913 | $42305 | **$42420** | $42305 | $44312 |
| **Average common shareholders'** <br>**equity**<br>| **$43448** | $44394 | $43613 | $42609 | $41947 | **$43921** | $41466 | $42288 |

---

<sup>(1)</sup> 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 endedJune 30,** | **2025** | 2024 |
| ($ millions and post-tax, unless otherwise stated)<sup>(1)</sup> | **2025** | 2024 |
| Core earnings highest potential businesses<sup>(2)</sup> | **$2725** | $2343 |
| Core earnings – All other businesses | **768** | 1104 |
| Core earnings  | **3493** | 3447 |
| Items excluded from core earnings | **(1219)** | (1539) |
| Net income (loss) attributed to shareholders | **$2274** | $1908 |
| Highest potential businesses core earnings contribution<sup>(1)</sup> | **78%** | 68% |

---

<sup>(1)</sup> 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.

<sup>(2)</sup> Includes core earnings from Asia and Global WAM segments, Canada Group Benefits, and North American behavioural insurance products.

The **effective 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** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results**<br>|
|  | **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<sup>(1)</sup> | **$0.95** | $0.99 | $1.03 | $1.00 | $0.91 | **$1.94** | $1.82 | $3.85 |
| Common share core dividend payout ratio<sup>(1)</sup> | **46%** | 44% | 39% | 40% | 44% | **45%** | 44% | 42% |

---

<sup>(1)</sup> 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 <br>stated)<br>| **2025** | 2024 |
| Core earnings | **$1726** | $1737 |
| Less: (Increase) recovery in the ECL<sup>(1)</sup> | **(83)** | (4) |
| Core earnings, excluding change in ECL | **1809** | 1741 |
| CER adjustment<sup>(2)</sup> | **-** | 26 |
| **Core earnings, excluding change in ECL, CER basis** | **$1809** | $1767 |

---

<sup>(1)</sup> 2Q24 excludes the change in ECL related to the RGA Canadian Reinsurance Transaction.

<sup>(2)</sup> 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 <br>stated)<br>| **2025** | 2024 |
| Core earnings available to common shareholders | **$1623** | $1638 |
| Less: (Increase) recovery in the ECL<sup>(1)</sup> | **(83)** | (4) |
| Core earnings available to common shareholders, excluding change in ECL | **1706** | 1642 |
| CER adjustment<sup>(2)</sup> | **-** | 26 |
| **Core earnings available to common shareholders, excluding change in ECL, CER basis** | **$1706** | $1668 |

---

<sup>(1)</sup> 2Q24 excludes the change in ECL related to the RGA Canadian Reinsurance Transaction.

<sup>(2)</sup> 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** | **2Q25** | **2Q25** | **2Q25** | **2Q25** | **2Q25** |
|  | Asia | Canada | U.S. | Global <br>WAM<br>| Corporate <br>and Other<br>| Total  |
| **Net insurance service result reconciliation** |  |  |  |  |  |  |
| Total insurance service result – financial statements | **$571** | **$370** | **$39** | **$-** | **$26** | **$1006** |
| 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<sup>(1)</sup> | **-** | **-** | **-** | **-** | **-** | **-** |
| **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** | **$1266** |
| Less: Reclassify Manulife Bank<sup>(2)</sup> 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<sup>(1)</sup> | **-** | **-** | **-** | **-** | **-** | **-** |
| **Core net investment result, CER basis** | **$336** | **$153** | **$246** | **$-** | **$84** | **$819** |
| **Manulife Bank and Global WAM by DOE line reconciliation** |  |  |  |  |  |  |
| Manulife Bank and Global WAM net income attributed to shareholders | **$-** | **$53** | **$-** | **$575** | **$-** | **$628** |
| Less: Manulife Bank and Global WAM attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | **-** | **-** | **-** | **23** | **-** | **23** |
| **Core earnings in Manulife Bank and Global WAM** | **-** | **53** | **-** | **552** | **-** | **605** |
| Core earnings in Manulife Bank and Global WAM, CER adjustment<sup>(1)</sup> | **-** | **-** | **-** | **-** | **-** | **-** |
| **Core earnings in Manulife Bank and Global WAM, CER basis** | **$-** | **$53** | **$-** | **$552** | **$-** | **$605** |
| **Other reconciliation** |  |  |  |  |  |  |
| Other revenue per financial statements | **$(92)** | **$85** | **$33** | **$1902** | **$(77)** | **$1851** |
| General expenses per financial statements | **(73)** | **(154)** | **(47)** | **(756)** | **(110)** | **(1140)** |
| Commissions related to non-insurance contracts | **7** | **(18)** | **1** | **(362)** | **8** | **(364)** |
| Interest expenses per financial statements | **(6)** | **(190)** | **(5)** | **(1)** | **(156)** | **(358)** |
| Total financial statements values included in Other | **(164)** | **(277)** | **(18)** | **783** | **(335)** | **(11)** |
| Less: Reclassifications: |  |  |  |  |  |  |
| Manulife Bank and Global WAM to their own DOE lines | **-** | **(259)** | **-** | **783** | **-** | **524** |
| Consolidation and other adjustments to net investment result DOE line | **1** | **3** | **28** | **-** | **(157)** | **(125)** |
| Less: Other attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | **(97)** | **3** | **(20)** | **-** | **34** | **(80)** |
| NCI | **1** | **-** | **-** | **-** | **-** | **1** |
| Participating policyholders | **(5)** | **1** | **-** | **-** | **-** | **(4)** |
| Add: Participating policyholders' earnings transfer to shareholders | **9** | **3** | **-** | **-** | **-** | **12** |
| **Other core earnings** | **(55)** | **(22)** | **(26)** | **-** | **(212)** | **(315)** |
| Other core earnings, CER adjustment<sup>(1)</sup> | **-** | **-** | **-** | **-** | **-** | **-** |
| **Other core earnings, CER basis** | **$(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<sup>(1)</sup> | **-** | **-** | **-** | **-** | **-** | **-** |
| **Core income tax (expenses) recoveries, CER basis** | **$(94)** | **$(110)** | **$(37)** | **$(89)** | **$32** | **$(298)** |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(2)</sup> 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 | 1Q25 | 1Q25 | 1Q25 | 1Q25 | 1Q25 |
|  | Asia | Canada | U.S. | Global <br>WAM<br>| Corporate <br>and Other<br>| Total  |
| **Net insurance service result reconciliation** |  |  |  |  |  |  |
| Total insurance service result – financial statements | $614 | $317 | $147 | $- | $(35) | $1043 |
| 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<sup>(1)</sup> | (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<sup>(2)</sup> 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) | (1210) | - | (149) | (1588) |
| NCI | 60 | - | - | - | (2) | 58 |
| Participating policyholders | 8 | 14 | - | - | - | 22 |
| **Core net investment result** | 326 | 131 | 360 | - | 96 | 913 |
| Core net investment result, CER adjustment<sup>(1)</sup> | (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<sup>(1)</sup> | - | - | - | (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 | $1975 | $(89) | $1986 |
| General expenses per financial statements | (80) | (152) | (52) | (797) | (121) | (1202) |
| 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<sup>(1)</sup> | 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<sup>(1)</sup> | 2 | - | 3 | 2 | - | 7 |
| **Core income tax (expenses) recoveries, CER basis** | $(99) | $(89) | $(81) | $(84) | $29 | $(324) |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(2)</sup> Manulife Bank is part of Canada segment.

Manulife Financial Corporation – Second Quarter 2025 46

**DOE Reconciliation – 4Q24**<sup>(1)</sup>

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 4Q24 | 4Q24 | 4Q24 | 4Q24 | 4Q24 | 4Q24 |
|  | Asia | Canada | U.S. | Global <br>WAM<br>| Corporate <br>and Other<br>| 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 | 1029 |
| Core net insurance service result, CER adjustment<sup>(2)</sup> | - | - | (2) | - | - | (2) |
| **Core net insurance service result, CER basis** | $482 | $326 | $149 | $- | $70 | $1027 |
| **Total investment result reconciliation** |  |  |  |  |  |  |
| Total investment result per financial statements | $279 | $612 | $369 | $(316) | $615 | $1559 |
| Less: Reclassify Manulife Bank<sup>(3)</sup> 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<sup>(2)</sup> | 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<sup>(2)</sup> | - | - | - | (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 | $2005 | $(198) | $2003 |
| General expenses per financial statements | (112) | (162) | (45) | (883) | (126) | (1328) |
| 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<sup>(2)</sup> | - | - | - | - | - | - |
| **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<sup>(2)</sup> | (1) | - | 2 | 1 | - | 2 |
| **Core income tax (expenses) recoveries, CER basis** | $(98) | $(97) | $(96) | $(82) | $30 | $(343) |

---

<sup>(1)</sup> This reconciliation has been updated to align with the presentation of GMT in 2025. See section A7 "Global Minimum Taxes (GMT)" for more information.

<sup>(2)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(3)</sup> Manulife Bank is part of Canada segment.

Manulife Financial Corporation – Second Quarter 2025 47

**DOE Reconciliation – 3Q24**<sup>(1)</sup>

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 3Q24 | 3Q24 | 3Q24 | 3Q24 | 3Q24 | 3Q24 |
|  | Asia | Canada | U.S. | Global <br>WAM<br>| Corporate <br>and Other<br>| Total  |
| **Net insurance service result reconciliation** |  |  |  |  |  |  |
| Total insurance service result – financial statements | $548 | $363 | $338 | $- | $48 | $1297 |
| 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 | 1030 |
| Core net insurance service result, CER adjustment<sup>(2)</sup> | 7 | - | 2 | - | - | 9 |
| **Core net insurance service result, CER basis** | $470 | $339 | $182 | $- | $48 | $1039 |
| **Total investment result reconciliation** |  |  |  |  |  |  |
| Total investment result per financial statements | $644 | $563 | $(303) | $(196) | $393 | $1101 |
| Less: Reclassify Manulife Bank<sup>(3)</sup> 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<sup>(2)</sup> | 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<sup>(2)</sup> | - | - | - | 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 | $1875 | $(5) | $1928 |
| General expenses per financial statements | (83) | (154) | (41) | (795) | (131) | (1204) |
| 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<sup>(2)</sup> | (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<sup>(2)</sup> | (1) | - | (2) | - | - | (3) |
| **Core income tax (expenses) recoveries, CER basis** | $(101) | $(104) | $(114) | $(26) | $27 | $(318) |

---

<sup>(1)</sup> This reconciliation has been updated to align with the presentation of GMT in 2025. See section A7 "Global Minimum Taxes (GMT)" for more information.

<sup>(2)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(3)</sup> Manulife Bank is part of Canada segment.

Manulife Financial Corporation – Second Quarter 2025 48

**DOE Reconciliation – 2Q24**<sup>(1)</sup>

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 2Q24 | 2Q24 | 2Q24 | 2Q24 | 2Q24 | 2Q24 |
|  | Asia | Canada | U.S. | Global <br>WAM<br>| Corporate <br>and Other<br>| Total  |
| **Net insurance service result reconciliation** |  |  |  |  |  |  |
| Total insurance service result – financial statements | $520 | $343 | $157 | $- | $17 | $1037 |
| 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<sup>(2)</sup> | 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<sup>(3)</sup> 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<sup>(2)</sup> | 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<sup>(2)</sup> | - | - | - | 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 | $1809 | $(123) | $1849 |
| General expenses per financial statements | (79) | (155) | (32) | (828) | (131) | (1225) |
| 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<sup>(2)</sup> | (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<sup>(2)</sup> | (1) | - | (2) | - | - | (3) |
| **Core income tax (expenses) recoveries, CER basis** | $(96) | $(107) | $(97) | $(59) | $36 | $(323) |

---

<sup>(1)</sup> This reconciliation has been updated to align with the presentation of GMT in 2025. See section A7 "Global Minimum Taxes (GMT)" for more information.

<sup>(2)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(3)</sup> 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** | **YTD 2025** | **YTD 2025** | **YTD 2025** | **YTD 2025** | **YTD 2025** |
|  | Asia | Canada | U.S. | Global <br>WAM<br>| Corporate <br>and Other<br>| Total  |
| **Net insurance service result reconciliation** |  |  |  |  |  |  |
| Total insurance service result - financial statements | **$1185** | **$687** | **$186** | **$-** | **$(9)** | **$2049** |
| 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** | **1071** | **653** | **125** | **-** | **(9)** | **1840** |
| Core net insurance service result, CER adjustment<sup>(1)</sup> | **(12)** | **-** | **(4)** | **-** | **-** | **(16)** |
| **Core net insurance service result, CER basis** | **$1059** | **$653** | **$121** | **$-** | **$(9)** | **$1824** |
| **Total investment result reconciliation** |  |  |  |  |  |  |
| Total investment result per financial statements | **$1029** | **$731** | **$(840)** | **$(480)** | **$462** | **$902** |
| Less: Reclassify Manulife Bank<sup>(2)</sup> 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)** | **(1418)** | **-** | **(44)** | **(1443)** |
| NCI | **111** | **-** | **-** | **-** | **(2)** | **109** |
| Participating policyholders | **32** | **12** | **-** | **-** | **-** | **44** |
| **Core net investment result** | **662** | **284** | **606** | **-** | **180** | **1732** |
| Core net investment result, CER adjustment<sup>(1)</sup> | **(7)** | **-** | **(13)** | **-** | **-** | **(20)** |
| **Core net investment result, CER basis** | **$655** | **$284** | **$593** | **$-** | **$180** | **$1712** |
| **Manulife Bank and Global WAM by DOE line reconciliation** |  |  |  |  |  |  |
| Manulife Bank and Global WAM net income attributed to shareholders  | **$-** | **$103** | **$-** | **$1102** | **$-** | **$1205** |
| Less: Manulife Bank and Global WAM attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | **-** | **-** | **-** | **10** | **-** | **10** |
| **Core earnings in Manulife Bank and Global WAM** | **-** | **103** | **-** | **1092** | **-** | **1195** |
| Core earnings in Manulife Bank and Global WAM, CER adjustment<sup>(1)</sup> | **-** | **-** | **-** | **(13)** | **-** | **(13)** |
| **Core earnings in Manulife Bank and Global WAM, CER basis** | **$-** | **$103** | **$-** | **$1079** | **$-** | **$1182** |
| **Other reconciliation** |  |  |  |  |  |  |
| Other revenue per financial statements | **$(91)** | **$159** | **$58** | **$3877** | **$(166)** | **$3837** |
| General expenses per financial statements | **(153)** | **(306)** | **(99)** | **(1553)** | **(231)** | **(2342)** |
| Commissions related to non-insurance contracts | **5** | **(36)** | **3** | **(739)** | **18** | **(749)** |
| Interest expenses per financial statements | **(13)** | **(404)** | **(8)** | **(2)** | **(310)** | **(737)** |
| Total financial statements values included in Other | **(252)** | **(587)** | **(46)** | **1583** | **(689)** | **9** |
| Less: Reclassifications: |  |  |  |  |  |  |
| Manulife Bank and Global WAM to their own DOE lines | **-** | **(541)** | **-** | **1583** | **-** | **1042** |
| Consolidation and other adjustments to net investment result DOE line | **1** | **3** | **28** | **(1)** | **(328)** | **(297)** |
| Less: Other attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | **(114)** | **5** | **(19)** | **-** | **68** | **(60)** |
| NCI | **2** | **-** | **-** | **1** | **-** | **3** |
| Participating policyholders | **(8)** | **-** | **-** | **-** | **-** | **(8)** |
| Add: Participating policyholders' earnings transfer to shareholders | **20** | **6** | **-** | **-** | **-** | **26** |
| **Other core earnings** | **(113)** | **(48)** | **(55)** | **-** | **(429)** | **(645)** |
| Other core earnings, CER adjustment<sup>(1)</sup> | **1** | **-** | **1** | **-** | **-** | **2** |
| **Other core earnings, CER basis** | **$(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<sup>(1)</sup> | **2** | **-** | **3** | **2** | **-** | **7** |
| **Core income tax (expenses) recoveries, CER basis** | **$(193)** | **$(199)** | **$(118)** | **$(173)** | **$61** | **$(622)** |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(2)</sup> Manulife Bank is part of Canada segment.

Manulife Financial Corporation – Second Quarter 2025 50

**DOE Reconciliation – YTD 2024**<sup>(1)</sup>

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | YTD 2024 | YTD 2024 | YTD 2024 | YTD 2024 | YTD 2024 | YTD 2024 |
|  | Asia | Canada | U.S. | Global <br>WAM<br>| Corporate <br>and Other<br>| Total  |
| **Net insurance service result reconciliation** |  |  |  |  |  |  |
| Total insurance service result - financial statements | $1067 | $627 | $276 | $- | $45 | $2015 |
| 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 | 1789 |
| Core net insurance service result, CER adjustment<sup>(2)</sup> | 26 | - | 5 | - | 1 | 32 |
| **Core net insurance service result, CER basis** | $950 | $589 | $236 | $- | $46 | $1821 |
| **Total investment result reconciliation** |  |  |  |  |  |  |
| Total investment result per financial statements | $325 | $614 | $(284) | $(470) | $676 | $861 |
| Less: Reclassify Manulife Bank<sup>(3)</sup> 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) | (1125) | - | 171 | (1789) |
| NCI | 63 | - | - | - | - | 63 |
| Participating policyholders | (6) | 16 | - | - | - | 10 |
| **Core net investment result** | 618 | 305 | 841 | - | 195 | 1959 |
| Core net investment result, CER adjustment<sup>(2)</sup> | 20 | - | 15 | - | 1 | 36 |
| **Core net investment result, CER basis** | $638 | $305 | $856 | $- | $196 | $1995 |
| **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<sup>(2)</sup> | - | - | - | 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 | $3559 | $(234) | $3657 |
| General expenses per financial statements | (135) | (297) | (53) | (1571) | (271) | (2327) |
| 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 | 1279 | (775) | (240) |
| Less: Reclassifications: |  |  |  |  |  |  |
| Manulife Bank and Global WAM to their own DOE lines | - | (664) | - | 1279 | - | 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<sup>(2)</sup> | (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<sup>(2)</sup> | (4) | - | (4) | (1) | (1) | (10) |
| **Core income tax (expenses) recoveries, CER basis** | $(197) | $(198) | $(202) | $(126) | $63 | $(660) |

---

<sup>(1)</sup> This reconciliation has been updated to align with the presentation of GMT in 2025. See section A7 "Global Minimum Taxes (GMT)" for more information.

<sup>(2)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(3)</sup> Manulife Bank is part of Canada segment.

Manulife Financial Corporation – Second Quarter 2025 51

**DOE Reconciliation – 2024**<sup>(1)</sup>

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 2024 | 2024 | 2024 | 2024 | 2024 | 2024 |
|  | Asia | Canada | U.S. | Global <br>WAM<br>| Corporate <br>and Other<br>| Total  |
| **Net insurance service result reconciliation** |  |  |  |  |  |  |
| Total insurance service result – financial statements | $2160 | $1320 | $357 | $- | $164 | $4001 |
| 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** | $1869 | $1254 | $562 | $- | $163 | $3848 |
| Core net insurance service result, CER adjustment<sup>(2)</sup> | 33 | - | 4 | - | 2 | 39 |
| **Core net insurance service result, CER basis** | $1902 | $1254 | $566 | $- | $165 | $3887 |
| **Total investment result reconciliation** |  |  |  |  |  |  |
| Total investment result per financial statements | $1248 | $1789 | $(218) | $(982) | $1684 | $3521 |
| Less: Reclassify Manulife Bank<sup>(3)</sup> and Global WAM to their own DOE lines | - | 1547 | - | (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) | (1809) | - | 612 | (1806) |
| NCI | 202 | - | - | - | 4 | 206 |
| Participating policyholders | 24 | 57 | - | - | - | 81 |
| **Core net investment result** | 1234 | 582 | 1591 | - | 412 | 3819 |
| Core net investment result, CER adjustment<sup>(2)</sup> | 26 | - | 17 | - | - | 43 |
| **Core net investment result, CER basis** | $1260 | $582 | $1608 | $- | $412 | $3862 |
| **Manulife Bank and Global WAM by DOE line reconciliation** |  |  |  |  |  |  |
| Manulife Bank and Global WAM net income attributed to shareholders | $- | $235 | $- | $1747 | $- | $1982 |
| Less: Manulife Bank and Global WAM attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | - | - | - | (160) | - | (160) |
| **Core earnings in Manulife Bank and Global WAM** | - | 235 | - | 1907 | - | 2142 |
| Core earnings in Manulife Bank and Global WAM, CER adjustment<sup>(2)</sup> | - | - | - | 13 | - | 13 |
| **Core earnings in Manulife Bank and Global WAM, CER basis** | $- | $235 | $- | $1920 | $- | $2155 |
| **Other reconciliation** |  |  |  |  |  |  |
| Other revenue per financial statements | $155 | $294 | $137 | $7439 | $(437) | $7588 |
| General expenses per financial statements | (330) | (613) | (139) | (3249) | (528) | (4859) |
| Commissions related to non-insurance contracts | (8) | (64) | 8 | (1454) | 38 | (1480) |
| Interest expenses per financial statements | (28) | (1047) | (13) | (7) | (586) | (1681) |
| Total financial statements values included in Other | (211) | (1430) | (7) | 2729 | (1513) | (432) |
| Less: Reclassifications: |  |  |  |  |  |  |
| Manulife Bank and Global WAM to their own DOE lines | - | (1311) | - | 2729 | - | 1418 |
| 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) | (1317) |
| Other core earnings, CER adjustment<sup>(2)</sup> | (4) | - | - | - | - | (4) |
| **Other core earnings, CER basis** | $(251) | $(104) | $(55) | $- | $(911) | $(1321) |
| **Income tax (expenses) recoveries reconciliation** |  |  |  |  |  |  |
| Income tax (expenses) recoveries per financial statements | $(460) | $(353) | $3 | $(148) | $(254) | $(1212) |
| 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 | (1310) |
| Core income tax (expenses) recoveries, CER adjustment<sup>(2)</sup> | (6) | - | (4) | (2) | - | (12) |
| **Core income tax (expenses) recoveries, CER basis** | $(396) | $(399) | $(412) | $(236) | $121 | $(1322) |

---

<sup>(1)</sup> This reconciliation has been updated to align with the presentation of GMT in 2025. See section A7 "Global Minimum Taxes (GMT)" for more information.

<sup>(2)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(3)</sup> 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** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results**<br>|
|  | **2Q25** | 1Q25 | 4Q24 | 3Q24 | 2Q24 | **2025** | 2024 | 2024 |
| General expenses | **$1140** | $1202 | $1328 | $1204 | $1225 | **$2342** | $2327 | $4859 |
| CER adjustment<sup>(1)</sup> | **-** | (21) | (5) | 13 | 9 | **(21)** | 26 | 34 |
| **General expenses, CER basis** | **$1140** | $1181 | $1323 | $1217 | $1234 | **$2321** | $2353 | $4893 |

---

<sup>(1)</sup> 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 | **$23722** | $23713 | $23425 | $22213 | $21760 |
| Less: CSM for NCI | **1406** | 1417 | 1298 | 1283 | 1002 |
| **CSM, net of NCI** | **$22316** | $22296 | $22127 | $20930 | $20758 |
| CER adjustment<sup>(1)</sup> | - | (737) | (582) | 50 | 277 |
| **CSM, net of NCI, CER basis** | **$22316** | $21559 | $21545 | $20980 | $21035 |
| **CSM by segment** |  |  |  |  |  |
| Asia | **$15786** | $15904 | $15540 | $14715 | $13456 |
| Asia NCI | **1406** | 1417 | 1298 | 1283 | 1002 |
| Canada | **4133** | 4052 | 4109 | 4036 | 3769 |
| U.S. | **2386** | 2329 | 2468 | 2171 | 3522 |
| Corporate and Other | **11** | 11 | 10 | 8 | 11 |
| **CSM** | **$23722** | $23713 | $23425 | $22213 | $21760 |
| **CSM, CER adjustment**<sup>(1)</sup> |  |  |  |  |  |
| Asia | **$-** | $(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 | **$15786** | $15287 | $15087 | $14745 | $13744 |
| Asia NCI | **1406** | 1362 | 1258 | 1269 | 1019 |
| Canada | **4133** | 4052 | 4109 | 4036 | 3769 |
| U.S. | **2386** | 2208 | 2340 | 2191 | 3510 |
| Corporate and Other | **11** | 11 | 10 | 8 | 11 |
| **Total CSM, CER basis** | **$23722** | $22920 | $22804 | $22249 | $22053 |
| **Post-tax CSM**<sup>(2)</sup> |  |  |  |  |  |
| CSM | **$23722** | $23713 | $23425 | $22213 | $21760 |
| Marginal tax rate on CSM | **(3940)** | (3929) | (3928) | (3719) | (3718) |
| **Post-tax CSM** | **$19782** | $19784 | $19497 | $18494 | $18042 |
| CSM, net of NCI | **$22316** | $22296 | $22127 | $20930 | $20758 |
| Marginal tax rate on CSM net of NCI | **(3789)** | (3772) | (3774) | (3566) | (3608) |
| **Post-tax CSM net of NCI** | **$18527** | $18524 | $18353 | $17364 | $17150 |

---

<sup>(1)</sup> 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.

<sup>(2)</sup> 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**<sup>(1)</sup> **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** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results**<br>|
|  | **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<sup>(2)</sup> | **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 | **1378** | 969 | 2148 |
| 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 | **$1789** | $1286 | $2887 |
| **New business CSM, CER** <br>**adjustment**<sup>(3)</sup><br>|  |  |  |  |  |  |  |  |
| Hong Kong | **$-** | $(11) | $(3) | $4 | $1 | **$(11)** | $6 | $6 |
| Japan | **-** | 2 | 3 | 5 | 9 | **2** | 11 | 19 |
| Asia Other<sup>(2)</sup> | **-** | (6) | (1) | 5 | 6 | **(6)** | 15 | 20 |
| *International High Net Worth* |  |  |  |  |  |  |  | *2* |
| *Mainland China* |  |  |  |  |  |  |  | *2* |
| *Singapore* |  |  |  |  |  |  |  | *15* |
| *Vietnam* |  |  |  |  |  |  |  | *(1)* |
| *Other Emerging Markets* |  |  |  |  |  |  |  | *2* |
| Asia | **-** | (15) | (1) | 14 | 16 | **(15)** | 32 | 45 |
| Canada | **-** | - | **-** | **-** | - | **-** | - | (1) |
| U.S. | **-** | (4) | (1) | 1 | 1 | **(4)** | 4 | 3 |
| Total new business CSM | **$-** | $(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<sup>(2)</sup> | **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 | **1363** | 1001 | 2193 |
| 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 | **$1770** | $1322 | $2934 |

---

<sup>(1)</sup> New business CSM is net of NCI.

<sup>(2)</sup> 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.

<sup>(3)</sup> 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** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results**<br>|
|  | **2Q25** | 1Q25 | 4Q24 | 3Q24 | 2Q24 | **2025** | 2024 | 2024 |
| **Net income (loss) attributed to** <br>**shareholders:**<br>|  |  |  |  |  |  |  |  |
| Asia | **$830** | $624 | $583 | $827 | $582 | **$1454** | $945 | $2355 |
| Canada | **390** | 222 | 439 | 430 | 79 | **612** | 352 | 1221 |
| U.S. | **36** | (569) | 103 | 5 | 135 | **(533)** | 27 | 135 |
| Global WAM | **482** | 443 | 384 | 498 | 350 | **925** | 715 | 1597 |
| Corporate and Other | **51** | (235) | 129 | 79 | (104) | **(184)** | (131) | 77 |
| **Total net income (loss) attributed to** <br>**shareholders**<br>| **1789** | 485 | 1638 | 1839 | 1042 | **2274** | 1908 | 5385 |
| Preferred share dividends and other <br>equity distributions<br>| **(103)** | (57) | (101) | (56) | (99) | **(160)** | (154) | (311) |
| **Common shareholders' net income** <br>**(loss)**<br>| **$1686** | $428 | $1537 | $1783 | $943 | **$2114** | $1754 | $5074 |
| **CER adjustment**<sup>(1)</sup> |  |  |  |  |  |  |  |  |
| Asia | **$-** | $(33) | $(9) | $8 | $(6) | **$(33)** | $9 | $8 |
| Canada | **-** | 1 | (4) | (1) | 2 | **1** | 6 | 2 |
| U.S. | **-** | 19 | (3) | 2 | 1 | **19** | 9 | 8 |
| Global WAM | **-** | (16) | (4) | 4 | 4 | **(16)** | 11 | 11 |
| Corporate and Other | **-** | 5 | (1) | (3) | (3) | **5** | (7) | (12) |
| **Total net income (loss) attributed to** <br>**shareholders** <br>| **-** | (24) | (21) | 10 | (2) | **(24)** | 28 | 17 |
| Preferred share dividends and other <br>equity distributions <br>| **-** | - | - | - | - | **-** | - | - |
| **Common shareholders' net income** <br>**(loss)**<br>| **$-** | $(24) | $(21) | $10 | $(2) | **$(24)** | $28 | $17 |
| **Net income (loss) attributed to** <br>**shareholders, CER basis**<br>|  |  |  |  |  |  |  |  |
| Asia | **$830** | $591 | $574 | $835 | $576 | **$1421** | $954 | $2363 |
| Canada | **390** | 223 | 435 | 429 | 81 | **613** | 358 | 1223 |
| U.S. | **36** | (550) | 100 | 7 | 136 | **(514)** | 36 | 143 |
| Global WAM | **482** | 427 | 380 | 502 | 354 | **909** | 726 | 1608 |
| Corporate and Other | **51** | (230) | 128 | 76 | (107) | **(179)** | (138) | 65 |
| **Total net income (loss) attributed to** <br>**shareholders, CER basis**<br>| **1789** | 461 | 1617 | 1849 | 1040 | **2250** | 1936 | 5402 |
| Preferred share dividends and other <br>equity distributions, CER basis<br>| **(103)** | (57) | (101) | (56) | (99) | **(160)** | (154) | (311) |
| **Common shareholders' net income** <br>**(loss), CER basis**<br>| **$1686** | $404 | $1516 | $1793 | $941 | **$2090** | $1782 | $5091 |
| **Asia net income attributed to** <br>**shareholders, U.S. dollars**<br>|  |  |  |  |  |  |  |  |
| Asia net income (loss) attributed to <br>shareholders, US $<sup>(2)</sup><br>| **$600** | $435 | $417 | $606 | $424 | **$1035** | $694 | $1717 |
| CER adjustment, US $<sup>(1)</sup> | **-** | (8) | (2) | (3) | (7) | **(8)** | (5) | (10) |
| **Asia net income (loss) attributed to** <br>**shareholders, U.S. $, CER basis**<sup>(1)</sup><br>| **$600** | $427 | $415 | $603 | $417 | **$1027** | $689 | $1707 |
| **Net income (loss) attributed to** <br>**shareholders (pre-tax)**<br>|  |  |  |  |  |  |  |  |
| Net income (loss) attributed to <br>shareholders (post-tax)<br>| **$1789** | $485 | $1638 | $1839 | $1042 | **$2274** | $1908 | $5385 |
| Tax on net income attributed to <br>shareholders<br>| **307** | 47 | 388 | 229 | 238 | **354** | 485 | 1102 |
| **Net income (loss) attributed to** <br>**shareholders (pre-tax)**<br>| **2096** | 532 | 2026 | 2068 | 1280 | **2628** | 2393 | 6487 |
| CER adjustment<sup>(1)</sup> | **-** | (3) | 1 | 23 | 24 | **(3)** | 31 | 56 |
| **Net income (loss) attributed to** <br>**shareholders (pre-tax), CER basis**<br>| **$2096** | $529 | $2027 | $2091 | $1304 | **$2625** | $2424 | $6543 |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(2)</sup> 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

respectivereporting 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 $ | CAD $ | CAD $ | CAD $ | CAD $ | CAD $ | US $<sup>(5)</sup> | US $<sup>(5)</sup> |
|  | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** |
| **As at** | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  | Asia | U.S. |
| **Total invested assets** |  |  |  |  |  |  |  |  |
| Manulife Bank<sup>(1)</sup> | **$-** | **$28138** | **$-** | **$-** | **$-** | **$28138** | **$-** | **$-** |
| Derivative reclassification<sup>(2)</sup> | **-** | **-** | **-** | **-** | **4531** | **4531** | **-** | **-** |
| Other | **173265** | **83059** | **119981** | **10352** | **19140** | **405797** | **126978** | **87930** |
| **Total** | **173265** | **111197** | **119981** | **10352** | **23671** | **438466** | **126978** | **87930** |
| **Segregated funds net assets** |  |  |  |  |  |  |  |  |
| Institutional | **-** | **-** | **-** | **3045** | **-** | **3045** | **-** | **-** |
| Other<sup>(3)</sup> | **29239** | **37567** | **74322** | **292416** | **(31)** | **433513** | **21433** | **54468** |
| **Total** | **29239** | **37567** | **74322** | **295461** | **(31)** | **436558** | **21433** | **54468** |
| **AUM per financial statements** | **202504** | **148764** | **194303** | **305813** | **23640** | **875024** | **148411** | **142398** |
| Mutual funds | **-** | **-** | **-** | **331290** | **-** | **331290** | **-** | **-** |
| Institutional asset management<sup>(4)</sup> | **-** | **-** | **-** | **156878** | **-** | **156878** | **-** | **-** |
| Other funds | **-** | **-** | **-** | **19697** | **-** | **19697** | **-** | **-** |
| **Total AUM** | **202504** | **148764** | **194303** | **813678** | **23640** | **1382889** | **148411** | **142398** |
| Assets under administration | **-** | **-** | **-** | **225360** | **-** | **225360** | **-** | **-** |
| **Total AUMA** | **$202504** | **$148764** | **$194303** | **$1039038** | **$23640** | **$1608249** | **$148411** | **$142398** |
| **Total AUMA, US $**<sup>(5)</sup> |  |  |  |  |  | **$1178636** |  |  |
| Total AUMA | **$202504** | **$148764** | **$194303** | **$1039038** | **$23640** | **$1608249** |  |  |
| CER adjustment<sup>(6)</sup> | **-** | **-** | **-** | **-** | **-** | **-** |  |  |
| **Total AUMA, CER basis** | **$202504** | **$148764** | **$194303** | **$1039038** | **$23640** | **$1608249** |  |  |
| **Global WAM Managed AUMA** | **Global WAM Managed AUMA** |  |  |  |  |  |  |  |
| Global WAM AUMA |  |  |  | **$1039038** |  |  |  |  |
| AUM managed by Global WAM for Manulife's other segments | AUM managed by Global WAM for Manulife's other segments | AUM managed by Global WAM for Manulife's other segments | AUM managed by Global WAM for Manulife's other segments | **222676** |  |  |  |  |
| **Total** |  |  |  | **$1261714** |  |  |  |  |

---

<sup>(1)</sup> Represents net lending assets.

<sup>(2)</sup> Corporate and Other amount is related to net derivative assets reclassified from total invested assets to other lines on the Statement of Financial Position.

<sup>(3)</sup> Corporate and Other segregated funds net assets represent elimination of amounts held by the Company.

<sup>(4)</sup> Institutional asset management excludes Institutional segregated funds net assets.

<sup>(5)</sup> US$ AUMA is calculated as total AUMA in Canadian $ divided by the US$ exchange rate in effect at the end of the quarter.

<sup>(6)</sup> 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 $ | CAD $ | CAD $ | CAD $ | CAD $ | CAD $ | US $<sup>(5)</sup> | US $<sup>(5)</sup> |
|  | March 31, 2025 | March 31, 2025 | March 31, 2025 | March 31, 2025 | March 31, 2025 | March 31, 2025 | March 31, 2025 | March 31, 2025 |
| **As at** | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  | Asia | U.S. |
| **Total invested assets** |  |  |  |  |  |  |  |  |
| Manulife Bank<sup>(1)</sup> | $- | $27135 | $- | $- | $- | $27135 | $- | $- |
| Derivative reclassification<sup>(2)</sup> | - | - | - | - | 4541 | 4541 | - | - |
| Other | 171732 | 84180 | 125793 | 9983 | 22373 | 414061 | 119318 | 87401 |
| **Total** | 171732 | 111315 | 125793 | 9983 | 26914 | 445737 | 119318 | 87401 |
| **Segregated funds net assets** |  |  |  |  |  |  |  |  |
| Institutional | - | - | - | 3199 | - | 3199 | - | - |
| Other<sup>(3)</sup> | 28560 | 37373 | 75103 | 284407 | (32) | 425411 | 19839 | 52182 |
| **Total** | 28560 | 37373 | 75103 | 287606 | (32) | 428610 | 19839 | 52182 |
| **AUM per financial statements** | 200292 | 148688 | 200896 | 297589 | 26882 | 874347 | 139157 | 139583 |
| Mutual funds | - | - | - | 334612 | - | 334612 | - | - |
| Institutional asset management<sup>(4)</sup> | - | - | - | 156560 | - | 156560 | - | - |
| Other funds | - | - | - | 19057 | - | 19057 | - | - |
| **Total AUM** | 200292 | 148688 | 200896 | 807818 | 26882 | 1384576 | 139157 | 139583 |
| Assets under administration | - | - | - | 218501 | - | 218501 | - | - |
| **Total AUMA** | $200292 | $148688 | $200896 | $1026319 | $26882 | $1603077 | $139157 | $139583 |
| **Total AUMA, US $**<sup>(5)</sup> |  |  |  |  |  | $1113827 |  |  |
| Total AUMA | $200292 | $148688 | $200896 | $1026319 | $26882 | $1603077 |  |  |
| CER adjustment<sup>(6)</sup> | (7285) | - | (10381) | (38166) | - | (55832) |  |  |
| **Total AUMA, CER basis** | $193007 | $148688 | $190515 | $988153 | $26882 | $1547245 |  |  |
| **Global WAM Managed AUMA** | **Global WAM Managed AUMA** |  |  |  |  |  |  |  |
| Global WAM AUMA |  |  |  | $1026319 |  |  |  |  |
| AUM managed by Global WAM for Manulife's other segments | AUM managed by Global WAM for Manulife's other segments | AUM managed by Global WAM for Manulife's other segments | AUM managed by Global WAM for Manulife's other segments | 225108 |  |  |  |  |
| **Total** |  |  |  | $1251427 |  |  |  |  |

---

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 $ | CAD $ | CAD $ | CAD $ | CAD $ | CAD $ | US $<sup>(5)</sup> | US $<sup>(5)</sup> |
|  | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| **As at** | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  | Asia | U.S. |
| **Total invested assets** |  |  |  |  |  |  |  |  |
| Manulife Bank<sup>(1)</sup> | $- | $26718 | $- | $- | $- | $26718 | $- | $- |
| Derivative reclassification<sup>(2)</sup> | - | - | - | - | 5600 | 5600 | - | - |
| Other | 166590 | 80423 | 136833 | 9743 | 16590 | 410179 | 115843 | 95142 |
| **Total** | 166590 | 107141 | 136833 | 9743 | 22190 | 442497 | 115843 | 95142 |
| **Segregated funds net assets** |  |  |  |  |  |  |  |  |
| Institutional | - | - | - | 3393 | - | 3393 | - | - |
| Other<sup>(3)</sup> | 28622 | 38099 | 77440 | 288467 | (33) | 432595 | 19904 | 53845 |
| **Total** | 28622 | 38099 | 77440 | 291860 | (33) | 435988 | 19904 | 53845 |
| **AUM per financial statements** | 195212 | 145240 | 214273 | 301603 | 22157 | 878485 | 135747 | 148987 |
| Mutual funds | - | - | - | 333598 | - | 333598 | - | - |
| Institutional asset management<sup>(4)</sup> | - | - | - | 154096 | - | 154096 | - | - |
| Other funds | - | - | - | 19174 | - | 19174 | - | - |
| **Total AUM** | 195212 | 145240 | 214273 | 808471 | 22157 | 1385353 | 135747 | 148987 |
| Assets under administration | - | - | - | 222614 | - | 222614 | - | - |
| **Total AUMA** | $195212 | $145240 | $214273 | $1031085 | $22157 | $1607967 | $135747 | $148987 |
| **Total AUMA, US $**<sup>(5)</sup> |  |  |  |  |  | $1118042 |  |  |
| Total AUMA | $195212 | $145240 | $214273 | $1031085 | $22157 | $1607967 |  |  |
| CER adjustment<sup>(6)</sup> | (5508) | - | (10917) | (36769) | - | (53194) |  |  |
| **Total AUMA, CER basis** | $189704 | $145240 | $203356 | $994316 | $22157 | $1554773 |  |  |
| **Global WAM Managed AUMA** | **Global WAM Managed AUMA** |  |  |  |  |  |  |  |
| Global WAM AUMA |  |  |  | $1031085 |  |  |  |  |
| AUM managed by Global WAM for Manulife's other segments | AUM managed by Global WAM for Manulife's other segments | AUM managed by Global WAM for Manulife's other segments | AUM managed by Global WAM for Manulife's other segments | 226752 |  |  |  |  |
| **Total** |  |  |  | $1257837 |  |  |  |  |

---

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 $ | CAD $ | CAD $ | CAD $ | CAD $ | CAD $ | US $<sup>(5)</sup> | US $<sup>(5)</sup> |
|  | September 30, 2024 | September 30, 2024 | September 30, 2024 | September 30, 2024 | September 30, 2024 | September 30, 2024 | September 30, 2024 | September 30, 2024 |
| **As at** | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  | Asia | U.S. |
| **Total invested assets** |  |  |  |  |  |  |  |  |
| Manulife Bank<sup>(1)</sup> | $- | $26371 | $- | $- | $- | $26371 | $- | $- |
| Derivative reclassification<sup>(2)</sup> | - | - | - | - | 2420 | 2420 | - | - |
| Other | 160377 | 81874 | 134164 | 9464 | 14482 | 400361 | 118748 | 99311 |
| **Total** | 160377 | 108245 | 134164 | 9464 | 16902 | 429152 | 118748 | 99311 |
| **Segregated funds net assets** |  |  |  |  |  |  |  |  |
| Institutional | - | - | - | 3289 | - | 3289 | - | - |
| Other<sup>(3)</sup> | 28163 | 37902 | 74916 | 278759 | (50) | 419690 | 20852 | 55454 |
| **Total** | 28163 | 37902 | 74916 | 282048 | (50) | 422979 | 20852 | 55454 |
| **AUM per financial statements** | 188540 | 146147 | 209080 | 291512 | 16852 | 852131 | 139600 | 154765 |
| Mutual funds | - | - | - | 321210 | - | 321210 | - | - |
| Institutional asset management<sup>(4)</sup> | - | - | - | 148386 | - | 148386 | - | - |
| Other funds | - | - | - | 18131 | - | 18131 | - | - |
| **Total AUM** | 188540 | 146147 | 209080 | 779239 | 16852 | 1339858 | 139600 | 154765 |
| Assets under administration | - | - | - | 211617 | - | 211617 | - | - |
| **Total AUMA** | $188540 | $146147 | $209080 | $990856 | $16852 | $1551475 | $139600 | $154765 |
| **Total AUMA, US $**<sup>(5)</sup> |  |  |  |  |  | $1148433 |  |  |
| Total AUMA | $188540 | $146147 | $209080 | $990856 | $16852 | $1551475 |  |  |
| CER adjustment<sup>(6)</sup> | 573 | - | 2049 | 6400 | - | 9022 |  |  |
| **Total AUMA, CER basis** | $189113 | $146147 | $211129 | $997256 | $16852 | $1560497 |  |  |
| **Global WAM Managed AUMA** | **Global WAM Managed AUMA** |  |  |  |  |  |  |  |
| Global WAM AUMA |  |  |  | $990856 |  |  |  |  |
| AUM managed by Global WAM for Manulife's other segments | AUM managed by Global WAM for Manulife's other segments | AUM managed by Global WAM for Manulife's other segments | AUM managed by Global WAM for Manulife's other segments | 220309 |  |  |  |  |
| **Total** |  |  |  | $1211165 |  |  |  |  |

---

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 $ | CAD $ | CAD $ | CAD $ | CAD $ | CAD $ | US $<sup>(5)</sup> | US $<sup>(5)</sup> |
|  | June 30, 2024 | June 30, 2024 | June 30, 2024 | June 30, 2024 | June 30, 2024 | June 30, 2024 | June 30, 2024 | June 30, 2024 |
| **As at** | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  | Asia | U.S. |
| **Total invested assets** |  |  |  |  |  |  |  |  |
| Manulife Bank<sup>(1)</sup> | $- | $26045 | $- | $- | $- | $26045 | $- | $- |
| Derivative reclassification<sup>(2)</sup> | - | - | - | - | 5546 | 5546 | - | - |
| Other | 148153 | 77422 | 130453 | 8989 | 14011 | 379028 | 108216 | 95335 |
| **Total** | 148153 | 103467 | 130453 | 8989 | 19557 | 410619 | 108216 | 95335 |
| **Segregated funds net assets** |  |  |  |  |  |  |  |  |
| Institutional | - | - | - | 3380 | - | 3380 | - | - |
| Other<sup>(3)</sup> | 26468 | 36595 | 72950 | 266759 | (46) | 402726 | 19333 | 53313 |
| **Total** | 26468 | 36595 | 72950 | 270139 | (46) | 406106 | 19333 | 53313 |
| **AUM per financial statements** | 174621 | 140062 | 203403 | 279128 | 19511 | 816725 | 127549 | 148648 |
| Mutual funds | - | - | - | 304214 | - | 304214 | - | - |
| Institutional asset management<sup>(4)</sup> | - | - | - | 142314 | - | 142314 | - | - |
| Other funds | - | - | - | 17202 | - | 17202 | - | - |
| **Total AUM** | 174621 | 140062 | 203403 | 742858 | 19511 | 1280455 | 127549 | 148648 |
| Assets under administration | - | - | - | 201064 | - | 201064 | - | - |
| **Total AUMA** | $174621 | $140062 | $203403 | $943922 | $19511 | $1481519 | $127549 | $148648 |
| **Total AUMA, US $**<sup>(5)</sup> |  |  |  |  |  | $1082705 |  |  |
| Total AUMA | $174621 | $140062 | $203403 | $943922 | $19511 | $1481519 |  |  |
| CER adjustment<sup>(6)</sup> | 3442 | - | (574) | 1172 | - | 4040 |  |  |
| **Total AUMA, CER basis** | $178063 | $140062 | $202829 | $945094 | $19511 | $1485559 |  |  |
| **Global WAM Managed AUMA** | **Global WAM Managed AUMA** |  |  |  |  |  |  |  |
| Global WAM AUMA |  |  |  | $943922 |  |  |  |  |
| AUM managed by Global WAM for Manulife's other segments | AUM managed by Global WAM for Manulife's other segments | AUM managed by Global WAM for Manulife's other segments | AUM managed by Global WAM for Manulife's other segments | 211773 |  |  |  |  |
| **Total** |  |  |  | $1155695 |  |  |  |  |

---

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 | **$536639** | $522751 | $521979 | $501173 | $477740 |
| Retail | **338616** | 339653 | 348938 | 335570 | 318269 |
| Institutional asset management | **163783** | 163915 | 160168 | 154113 | 147913 |
| Total | **$1039038** | $1026319 | $1031085 | $990856 | $943922 |
| **Global WAM AUMA by business line, CER basis**<sup>(1)</sup> |  |  |  |  |  |
| Retirement | **$536639** | $501349 | $500835 | $504793 | $476648 |
| Retail | **338616** | 328337 | 337819 | 337659 | 319042 |
| Institutional asset management | **163783** | 158467 | 155662 | 154804 | 149404 |
| **Total** | **$1039038** | $988153 | $994316 | $997256 | $945094 |
| **Global WAM AUMA by geographic source** |  |  |  |  |  |
| Asia | **$143573** | $144660 | $141098 | $137040 | $128791 |
| Canada | **266913** | 259446 | 260651 | 255281 | 242781 |
| U.S. | **628552** | 622213 | 629336 | 598535 | 572350 |
| **Total**  | **$1039038** | $1026319 | $1031085 | $990856 | $943922 |
| **Global WAM AUMA by geographic source, CER basis**<sup>(1)</sup> |  |  |  |  |  |
| Asia | **$143573** | $138399 | $136528 | $137423 | $131540 |
| Canada | **266913** | 259446 | 260651 | 255281 | 242781 |
| U.S. | **628552** | 590308 | 597137 | 604552 | 570773 |
| **Total** | **$1039038** | $988153 | $994316 | $997256 | $945094 |
| **Global WAM Managed AUMA by business line** |  |  |  |  |  |
| Retirement | **$536639** | $522751 | $521979 | $501173 | $477740 |
| Retail | **419133** | 419844 | 431047 | 416425 | 396457 |
| Institutional asset management | **305942** | 308832 | 304811 | 293567 | 281498 |
| **Total** | **$1261714** | $1251427 | $1257837 | $1211165 | $1155695 |
| **Global WAM Managed AUMA by business line, CER basis**<sup>(1)</sup> |  |  |  |  |  |
| Retirement | **$536639** | $501349 | $500835 | $504793 | $476648 |
| Retail | **419133** | 400011 | 417282 | 418982 | 397037 |
| Institutional asset management | **305942** | 296999 | 294007 | 295441 | 282671 |
| **Total** | **$1261714** | $1198359 | $1212124 | $1219216 | $1156356 |
| **Global WAM Managed AUMA by geographic source** |  |  |  |  |  |
| Asia | **$227797** | $228948 | $225325 | $219344 | $205776 |
| Canada | **317864** | 311252 | 312816 | 307051 | 292698 |
| U.S. | **716053** | 711227 | 719696 | 684770 | 657221 |
| Total | **$1261714** | $1251427 | $1257837 | $1211165 | $1155695 |
| **Global WAM Managed AUMA by geographic source, CER basis**<sup>(1)</sup> | **Global WAM Managed AUMA by geographic source, CER basis**<sup>(1)</sup> |  |  |  |  |
| Asia | **$227797** | $218297 | $216441 | $220558 | $208296 |
| Canada | **317864** | 311252 | 312816 | 307051 | 292698 |
| U.S. | **716053** | 668810 | 682867 | 691607 | 655362 |
| **Total**  | **$1261714** | $1198359 | $1212124 | $1219216 | $1156356 |

---

<sup>(1)</sup> 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) | **Jun 30, 2025** | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 |
| Mortgages | **$55479** | $55105 | $54447 | $54083 | $53031 |
| Less: mortgages not held by Manulife Bank | **29847** | 30352 | 30039 | 29995 | 29324 |
| Total mortgages held by Manulife Bank | **25632** | 24753 | 24408 | 24088 | 23707 |
| Loans to Bank clients | **2506** | 2382 | 2310 | 2283 | 2338 |
| **Manulife Bank net lending assets** | **$28138** | $27135 | $26718 | $26371 | $26045 |
| Manulife Bank average net lending assets |  |  |  |  |  |
| Beginning of period | **$27135** | $26718 | $26371 | $26045 | $25420 |
| End of period | **28138** | 27135 | 26718 | 26371 | 26045 |
| **Manulife Bank average net lending assets by quarter** | **$27637** | $26927 | $26545 | $26208 | $25733 |
| **Manulife Bank average net lending assets – Year-to-date** | **$27428** |  |  |  | $25683 |
| **Manulife Bank average net lending assets – full year** |  |  | $26020 |  |  |

---

**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) | **Jun 30, 2025** | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 |
| Common shareholders' equity | **$42420** | $44475 | $44312 | $42913 | $42305 |
| Post-tax CSM, net of NCI<sup>(1)</sup> | **18527** | 18524 | 18353 | 17364 | 17150 |
| **Adjusted book value** | **$60947** | $62999 | $62665 | $60277 | $59455 |

---

<sup>(1)</sup> 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) | **Jun 30, 2025** | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 |
| Total equity | **$51253** | $53164 | $52960 | $51639 | $50756 |
| Less: AOCI gain / (loss) on cash flow hedges  | **68** | 89 | 119 | 70 | 95 |
| Total equity excluding AOCI on cash flow hedges  | **51185** | 53075 | 52841 | 51569 | 50661 |
| Post-tax CSM<sup>(1)</sup> | **19782** | 19784 | 19497 | 18494 | 18042 |
| Qualifying capital instruments | **6985** | 7542 | 7532 | 6997 | 7714 |
| **Consolidated capital** | **$77952** | $80401 | $79870 | $77060 | $76417 |

---

<sup>(1)</sup> 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** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results**<br>|
|  | **2Q25** | 1Q25 | 4Q24 | 3Q24 | 2Q24 | **2025** | 2024 | 2024 |
| **Global WAM core earnings (post-tax)**  | **$463** | $454 | $459 | $479 | $386 | **$917** | $735 | $1673 |
| Add back taxes, acquisition costs, other <br>expenses and deferred sales commissions<br>|  |  |  |  |  |  |  |  |
| Core income tax (expenses) recoveries <br>(see above)<br>| **89** | 86 | 83 | 26 | 59 | **175** | 125 | 234 |
| Amortization of deferred acquisition costs <br>and other depreciation<br>| **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 | **$1231** | $990 | $2173 |
| CER adjustment<sup>(1)</sup> | **-** | (15) | (5) | 7 | 3 | **(15)** | 12 | 14 |
| **Core EBITDA, CER basis** | **$623** | $593 | $606 | $579 | $516 | **$1216** | $1002 | $2187 |
| **Core EBITDA by business line** |  |  |  |  |  |  |  |  |
| Retirement | **$358** | $351 | $330 | $320 | $284 | **$709** | $549 | $1199 |
| 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 | **$1231** | $990 | $2173 |
| **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 | **$1231** | $990 | $2173 |
| **Core EBITDA by business line, CER basis**<sup>(2)</sup> |  |  |  |  |  |  |  |  |
| Retirement | **$358** | $342 | $328 | $323 | $286 | **$700** | $556 | $1207 |
| 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 | **$1216** | $1002 | $2187 |
| **Core EBITDA by geographic source, CER** <br>**basis**<sup>(2)</sup><br>|  |  |  |  |  |  |  |  |
| 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 | **$1216** | $1002 | $2187 |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 2Q25.

<sup>(2)</sup> 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** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results**<br>|
| ($ millions, unless otherwise stated) | **2Q25** | 1Q25 | 4Q24 | 3Q24 | 2Q24 | **2025** | 2024 | 2024 |
| **Core EBITDA margin** |  |  |  |  |  |  |  |  |
| Core EBITDA | **$623** | $608 | $611 | $572 | $513 | **$1231** | $990 | $2173 |
| Core revenue | **$2069** | $2140 | $2140 | $2055 | $1948 | **$4209** | $3821 | $8016 |
| **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 | **$1851** | $1986 | $2003 | $1928 | $1849 | **$3837** | $3657 | $7588 |
| Less: Other revenue in segments other than <br>Global WAM<br>| **(48)** | 11 | (2) | 53 | 40 | **(37)** | 98 | 149 |
| **Other revenue in Global WAM (fee income)** | **$1899** | $1975 | $2005 | $1875 | $1809 | **$3874** | $3559 | $7439 |
| Investment income per financial statements | **$4740** | $4234 | $5250 | $4487 | $4261 | **$8974** | $8512 | $18249 |
| Realized and unrealized gains (losses) on <br>assets supporting insurance and <br>investment contract liabilities per financial <br>statements<br>| **2377** | (992) | (622) | 1730 | 564 | **1385** | 1102 | 2210 |
| Total investment income  | **7117** | 3242 | 4628 | 6217 | 4825 | **10359** | 9614 | 20459 |
| Less: Investment income in segments other <br>than Global WAM<br>| **6924** | 3089 | 4550 | 5991 | 4687 | **10013** | 9336 | 19877 |
| Investment income in Global WAM | **$193** | $153 | $78 | $226 | $138 | **$346** | $278 | $582 |
| Total other revenue and investment income in <br>Global WAM<br>| **$2092** | $2128 | $2083 | $2101 | $1947 | **$4220** | $3837 | $8021 |
| Less: Total revenue reported in items <br>excluded from core earnings<br>|  |  |  |  |  |  |  |  |
| Market experience gains (losses) | **20** | (14) | (28) | 33 | (9) | **6** | (1) | 4 |
| Revenue related to integration and <br>acquisitions<br>| **3** | 2 | (29) | 13 | 8 | **5** | 17 | 1 |
| **Global WAM core revenue** | **$2069** | $2140 | $2140 | $2055 | $1948 | **$4209** | $3821 | $8016 |

---

**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** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results**<br>|
| ($ millions, and based on actual foreign exchange <br>rates in effect in the applicable reporting period, <br>unless otherwise stated)<br>| **2Q25** | 1Q25 | 4Q24 | 3Q24 | 2Q24 | **2025** | 2024 | 2024 |
| **Core expenses** |  |  |  |  |  |  |  |  |
| General expenses – Statements of Income | **$1140** | $1202 | $1328 | $1204 | $1225 | **$2342** | $2327 | $4859 |
| Directly attributable acquisition expense for <br>contracts measured using the PAA method <br>and products without a CSM<sup>(1)</sup><br>| **40** | 42 | 43 | 36 | 39 | **82** | 77 | 156 |
| Directly attributable maintenance expense<sup>(1)</sup> | **514** | 532 | 517 | 509 | 509 | **1046** | 1048 | 2074 |
| Total expenses | **1694** | 1776 | 1888 | 1749 | 1773 | **3470** | 3452 | 7089 |
| Less: General expenses included in items <br>excluded from core earnings<br>|  |  |  |  |  |  |  |  |
| 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** | **$1689** | $1776 | $1797 | $1716 | $1713 | **$3465** | $3386 | $6899 |
| CER adjustment<sup>(2)</sup> | **-** | (29) | (5) | 15 | 19 | **(29)** | 47 | 58 |
| **Core expenses, CER basis** | **$1689** | $1747 | $1792 | $1731 | $1732 | **$3436** | $3433 | $6957 |
| Total expenses | **$1694** | $1776 | $1888 | $1749 | $1773 | **$3470** | $3452 | $7089 |
| CER adjustment<sup>(2)</sup> | **-** | (30) | (5) | 15 | 20 | **(30)** | 48 | 58 |
| **Total expenses, CER basis** | **$1694** | $1746 | $1883 | $1764 | $1793 | **$3440** | $3500 | $7147 |

---

<sup>(1)</sup> Expenses are components of insurance service expenses on the Statements of Income that flow directly through income.

<sup>(2)</sup> 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** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** | **Full Year** <br>**Results**<br>|
| ($ millions, unless otherwise stated) | **2Q25** | 1Q25 | 4Q24 | 3Q24 | 2Q24 | **2025** | 2024 | 2024 |
| **Income before income taxes** | **$2261** | $699 | $2113 | $2341 | $1384 | **$2960** | $2636 | $7090 |
| Less: Income before income <br>taxes for segments other than <br>Global WAM <br>| **1686** | 171 | 1694 | 1822 | 1001 | **1857** | 1827 | 5343 |
| Global WAM income before <br>income taxes<br>| **575** | 528 | 419 | 519 | 383 | **1103** | 809 | 1747 |
| Items unrelated to net fee <br>income<br>| **667** | 739 | 882 | 677 | 771 | **1406** | 1436 | 2995 |
| Global WAM net fee income | **1242** | 1267 | 1301 | 1196 | 1154 | **2509** | 2245 | 4742 |
| Less: Net fee income from other <br>segments<br>| **171** | 170 | 181 | 169 | 169 | **341** | 324 | 674 |
| Global WAM net fee income <br>excluding net fee income <br>from other segments<br>| **1071** | 1097 | 1120 | 1027 | 985 | **2168** | 1921 | 4068 |
| **Net annualized fee income** | **$4297** | $4451 | $4455 | $4084 | $3963 | **$4373** | $3864 | $4068 |
| Average Assets under <br>Management and <br>Administration<br>| **$1005290** | $1041116 | $1015454 | $963003 | $933061 | **$1022398** | $916730 | $946087 |
| **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

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.

**E4Caution 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, mortality 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 information 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.

**E5Quarterly 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,** <br>**2025** | Mar 31, <br>2025 | Dec 31, <br>2024 | Sept 30, <br>2024 | Jun 30, <br>2024 | Mar 31, <br>2024 | Dec 31, <br>2023 | Sept 30, <br>2023 |
| ($ millions, except per share amounts or otherwise stated) | **Jun 30,** <br>**2025** | Mar 31, <br>2025 | Dec 31, <br>2024 | Sept 30, <br>2024 | Jun 30, <br>2024 | Mar 31, <br>2024 | Dec 31, <br>2023 | Sept 30, <br>2023 |
| **Revenue** |  |  |  |  |  |  |  |  |
| Insurance revenue  | **$6990** | $7062 | $6834 | $6746 | $6515 | $6497 | $6414 | $6215 |
| Net investment result | **6796** | 2946 | 4194 | 5912 | 4512 | 4493 | 6784 | 1265 |
| Other revenue | **1851** | 1986 | 2003 | 1928 | 1849 | 1808 | 1719 | 1645 |
| **Total revenue** | **$15637** | $11994 | $13031 | $14586 | $12876 | $12798 | $14917 | $9125 |
| Income (loss) before income taxes | **$2261** | $699 | $2113 | $2341 | $1384 | $1252 | $2123 | $1174 |
| Income tax (expenses) recoveries | **(338)** | (76) | (406) | (274) | (252) | (280) | (322) | 51 |
| **Net income (loss)** | **$1923** | $623 | $1707 | $2067 | $1132 | $972 | $1801 | $1225 |
| **Net income (loss) attributed to shareholders** | **$1789** | $485 | $1638 | $1839 | $1042 | $866 | $1659 | $1013 |
| **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** | **$12408** | $14409 | $11927 | $11545 | $11324 | $12206 | $10361 | $10172 |
| **Total assets (in billions)** | **$977** | $981 | $979 | $953 | $915 | $907 | $876 | $836 |
| **Weighted average common shares (in millions)** | **1710** | 1723 | 1746 | 1774 | 1793 | 1805 | 1810 | 1826 |
| **Diluted weighted average common shares (in** <br>**millions)**<br>| **1715** | 1729 | 1752 | 1780 | 1799 | 1810 | 1814 | 1829 |
| **Dividends per common share** | **$0.440** | $0.440 | $0.400 | $0.400 | $0.400 | $0.400 | $0.365 | $0.365 |
| **CDN$ to US$1 – Statement of Financial** <br>**Position**<br>| **1.3645** | 1.4393 | 1.4382 | 1.3510 | 1.3684 | 1.3533 | 1.3186 | 1.3520 |
| **CDN$ to US$1 – Statement of Income** | **1.3837** | 1.4349 | 1.3987 | 1.3639 | 1.3682 | 1.3485 | 1.3612 | 1.3411 |

---

**E6Revenue**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **YTD Results** | **YTD Results** |
| ($ millions, unaudited) | **2Q25** | 1Q25 | 2Q24 | **2025** | 2024 |
| Insurance revenue  | **$6990** | $7062 | $6515 | **$14052** | $13012 |
| Net investment income  | **6796** | 2946 | 4512 | **9742** | 9005 |
| Other revenue  | **1851** | 1986 | 1849 | **3837** | 3657 |
| **Total revenue**  | **$15637** | $11994 | $12876 | **$27631** | $25674 |
| Asia  | **$4935** | $2590 | $3814 | **$7525** | $7400 |
| Canada | **3758** | 3662 | 3037 | **7420** | 6577 |
| U.S.  | **4720** | 3725 | 4002 | **8445** | 7693 |
| Global Wealth and Asset Management  | **1767** | 1798 | 1633 | **3565** | 3185 |
| Corporate and Other  | **457** | 219 | 390 | **676** | 819 |
| **Total revenue**  | **$15637** | $11994 | $12876 | **$27631** | $25674 |

---

Total revenue was $15.6 billion in 2Q25 compared with $12.9 billion in 2Q24 due to higher net investment income and

insurance revenue.

By segment, 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 $27.6billion in 2025 compared with $25.7billion 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

**E7Other**

No changes were made in our internal control over financial reporting during the three months endedJune 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) | **June 30, 2025** | December 31, 2024 |
| **Assets** |  |  |
| Cash and short-term securities | **$23773** | $25789 |
| Debt securities | **208369** | 210621 |
| Public equities | **34668** | 33725 |
| Mortgages | **55479** | 54447 |
| Private placements | **49014** | 49668 |
| Loans to Bank clients | **2506** | 2310 |
| Real estate | **12767** | 13263 |
| Other invested assets | **51890** | 52674 |
| **Total invested assets (note 3)** | **$438466** | 442497 |
| **Other assets** |  |  |
| Accrued investment income | **2901** | 2969 |
| Derivatives (note 4) | **9093** | 8667 |
| Insurance contract assets (note 5) | **183** | 102 |
| Reinsurance contract held assets (note 5) | **61235** | 59015 |
| Deferred tax assets | **5934** | 5884 |
| Goodwill and intangible assets | **10825** | 11052 |
| Miscellaneous | **12274** | 12644 |
| **Total other assets** | **102445** | 100333 |
| **Segregated funds net assets (note 15)** | **436558** | 435988 |
| **Total assets** | **$977469** | $978818 |
| **Liabilities and Equity** |  |  |
| **Liabilities** |  |  |
| Insurance contract liabilities, excluding those for account of segregated fund holders (note 5) | **$397487** | $396401 |
| Reinsurance contract held liabilities (note 5) | **2942** | 2669 |
| Investment contract liabilities (note 6) | **14071** | 13498 |
| Deposits from Bank clients | **22416** | 22063 |
| Derivatives (note 4) | **13609** | 14252 |
| Deferred tax liabilities | **1901** | 1890 |
| Other liabilities | **23955** | 24936 |
| Long-term debt (note 8) | **6292** | 6629 |
| Capital instruments (note 9) | **6985** | 7532 |
| **Total liabilities, excluding those for account of segregated fund holders** | **489658** | 489870 |
| Insurance contract liabilities for account of segregated fund holders (note 5) | **123539** | 126545 |
| Investment contract liabilities for account of segregated fund holders | **313019** | 309443 |
| **Insurance and investment contract liabilities for account of segregated fund holders (note 15)** | **436558** | 435988 |
| **Total liabilities** | **926216** | 925858 |
| **Equity** |  |  |
| Preferred shares and other equity (note 10) | **6660** | 6660 |
| Common shares (note 10) | **20398** | 20681 |
| Contributed surplus | **201** | 204 |
| Shareholders and other equity holders' retained earnings | **4538** | 4764 |
| Shareholders and other equity holders' accumulated other comprehensive income (loss) ("AOCI"): |  |  |
| Insurance finance income (expenses) | **35439** | 37999 |
| Reinsurance finance income (expenses) | **(6540)** | (7048) |
| Fair value through other comprehensive income ("OCI") investments | **(17196)** | (19733) |
| Translation of foreign operations | **5589** | 7327 |
| Other | **(9)** | 118 |
| **Total shareholders and other equity holders' equity** | **49080** | 50972 |
| Participating policyholders' equity | **775** | 567 |
| Non-controlling interests  | **1398** | 1421 |
| **Total equity** | **51253** | 52960 |
| **Total liabilities and equity** | **$977469** | $978818 |
| The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements. | The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements. | 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

![donlindsaye-signaturea.jpg](donlindsaye-signaturea.jpg)

![pwsignatureblacka.jpg](pwsignatureblacka.jpg)

Manulife Financial Corporation – Second Quarter 2025 70

**Consolidated Statements of Income**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **For the** | **three months ended June 30,** | **three months ended June 30,** | **six 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) | **$6990** | $6515 | **$14052** | $13012 |
| Insurance service expenses | **(5765)** | (5272) | **(11473)** | (10544) |
| Net expenses from reinsurance contracts held | **(219)** | (206) | **(530)** | (453) |
| **Total insurance service result** | **1006** | 1037 | **2049** | 2015 |
| **Investment result** |  |  |  |  |
| Investment income (note 3) |  |  |  |  |
| Investment income | **4740** | 4261 | **8974** | 8512 |
| Realized and unrealized gains (losses) on assets supporting insurance and <br>investment contract liabilities<br>| **2377** | 564 | **1385** | 1102 |
| Investment expenses | **(321)** | (313) | **(617)** | (609) |
| Net investment income (loss) | **6796** | 4512 | **9742** | 9005 |
| Insurance finance income (expenses) and effect of movement in foreign <br>exchange rates (note 5)<br>| **(5171)** | (4623) | **(8910)** | (9081) |
| Reinsurance finance income (expenses) and effect of movement in foreign <br>exchange rates (note 5)<br>| **(199)** | 754 | **321** | 1178 |
| Decrease (increase) in investment contract liabilities | **(160)** | (130) | **(251)** | (241) |
|  | **1266** | 513 | **902** | 861 |
| Segregated funds investment result (note 15) |  |  |  |  |
| Investment income related to segregated funds net assets | **25707** | 5808 | **23068** | 28434 |
| Financial changes related to insurance and investment contract liabilities for <br>account of segregated fund holders<br>| **(25707)** | (5808) | **(23068)** | (28434) |
| Net segregated funds investment result | **-** | - | **-** | - |
| **Total investment result** | **1266** | 513 | **902** | 861 |
| Other revenue (note 11) | **1851** | 1849 | **3837** | 3657 |
| General expenses | **(1140)** | (1225) | **(2342)** | (2327) |
| Commissions related to non-insurance contracts | **(364)** | (364) | **(749)** | (720) |
| Interest expenses | **(358)** | (426) | **(737)** | (850) |
| **Net income (loss) before income taxes** | **2261** | 1384 | **2960** | 2636 |
| Income tax (expenses) recoveries | **(338)** | (252) | **(414)** | (532) |
| **Net income (loss)** | **$1923** | $1132 | **$2546** | $2104 |
| **Net income (loss) attributed to:** |  |  |  |  |
| Non-controlling interests | **$49** | $39 | **$115** | $94 |
| Participating policyholders | **85** | 51 | **157** | 102 |
| Shareholders and other equity holders | **1789** | 1042 | **2274** | 1908 |
|  | **$1923** | $1132 | **$2546** | $2104 |
| Net income (loss) attributed to shareholders | **$1789** | $1042 | **$2274** | $1908 |
| Preferred share dividends and other equity distributions | **(103)** | (99) | **(160)** | (154) |
| **Common shareholders' net income (loss)** | **$1686** | $943 | **$2114** | $1754 |
| **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. | The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements. | 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,** | **three months ended June 30,** | **six months ended June 30,** | **six months ended June 30,** |
| (Canadian $ in millions, unaudited) | **2025** | 2024 | **2025** | 2024 |
| **Net income (loss)**  | **$1923** | $1132 | **$2546** | $2104 |
| **Other comprehensive income (loss) ("OCI"), net of tax:** |  |  |  |  |
| **Items that may be subsequently reclassified to net income:** |  |  |  |  |
| Foreign exchange gains (losses) on: |  |  |  |  |
| Translation of foreign operations | **(2158)** | 391 | **(2081)** | 1138 |
| Net investment hedges | **361** | (85) | **343** | (240) |
| Insurance finance income (expenses) | **(1985)** | 3381 | **(3214)** | 7428 |
| Reinsurance finance income (expenses) | **(10)** | (903) | **543** | (1987) |
| Fair value through OCI investments: |  |  |  |  |
| Unrealized gains (losses) arising during the period on assets supporting <br>insurance and investment contract liabilities<br>| **1554** | (2143) | **2238** | (5539) |
| Reclassification of net realized gains (losses) and provision for credit losses <br>recognized in income<br>| **22** | 457 | **831** | 1352 |
| Other | **(101)** | 25 | **(80)** | 64 |
| **Total items that may be subsequently reclassified to net income** | **(2317)** | 1123 | **(1420)** | 2216 |
| **Items that will not be reclassified to net income** | **(13)** | 39 | **(46)** | 88 |
| **Other comprehensive income (loss), net of tax** | **(2330)** | 1162 | **(1466)** | 2304 |
| **Total comprehensive income (loss), net of tax** | **$(407)** | $2294 | **$1080** | $4408 |
| **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)** | 2143 | **894** | 4304 |

---

**Income Taxes included in Other Comprehensive Income**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **For the** | **three months ended June 30,** | **three months ended June 30,** | **six 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)** | $1 |
| Unrealized foreign exchange gains (losses) on net investment hedges | **24** | (11) | **19** | (18) |
| Insurance / reinsurance finance income (expenses) | **(232)** | 549 | **(338)** | 1498 |
| Unrealized gains (losses) on fair value through OCI investments | **112** | (356) | **147** | (1095) |
| Reclassification of net realized gains (losses) on fair value through OCI <br>investments<br>| **(11)** | 145 | **182** | 331 |
| Other | **(41)** | 15 | **(40)** | 40 |
| **Total income tax expenses (recoveries)** | **$(149)** | $343 | **$(31)** | $757 |
| The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements. | The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements. | 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 endedJune 30,** |  |  |
| (Canadian $ in millions, unaudited) | **2025** | 2024 |
| Preferred shares and other equity |  |  |
| **Balance, beginning of period** | **$6660** | $6660 |
| Issued (note 10) | **-** | - |
| **Balance, end of period** | **6660** | 6660 |
| **Common shares** |  |  |
| Balance, beginning of period | **20681** | 21527 |
| Repurchased (note 10) | **(318)** | (295) |
| Issued on exercise of stock options and deferred share units | **35** | 82 |
| **Balance, end of period** | **20398** | 21314 |
| **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 | **4764** | 4819 |
| Net income (loss) attributed to shareholders and other equity holders | **2274** | 1908 |
| Common shares repurchased (note 10) | **(842)** | (560) |
| Preferred share dividends and other equity distributions | **(160)** | (154) |
| Common share dividends | **(1498)** | (1440) |
| Other | **-** | 1 |
| **Balance, end of period** | **4538** | 4574 |
| **Shareholders and other equity holders' accumulated other comprehensive income (loss) ("AOCI")** |  |  |
| Balance, beginning of period | **18663** | 13811 |
| Change in unrealized foreign exchange gains (losses) on net foreign operations | **(1738)** | 898 |
| Changes in insurance / reinsurance finance income (expenses) | **(2052)** | 5600 |
| Change in unrealized gains (losses) on fair value through OCI investments | **2537** | (4254) |
| Other changes in OCI attributed to shareholders and other equity holders | **(127)** | 152 |
| **Balance, end of period** | **17283** | 16207 |
| **Total shareholders and other equity holders' equity, end of period** | **49080** | 48965 |
| **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 | **1421** | 1431 |
| 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** | **1398** | 1412 |
| **Total equity, end of period** | **$51253** | $50756 |
| The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements. | The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements. | 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 endedJune 30,** |  |  |
| (Canadian $ in millions, unaudited) | **2025** | 2024 |
| **Operating activities** |  |  |
| Net income (loss) | **$2546** | $2104 |
| Adjustments: |  |  |
| Increase (decrease) in insurance contract net liabilities (note 5) | **8720** | 3202 |
| 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 | **(1252)** | (1167) |
| Other amortization | **413** | 302 |
| Net realized and unrealized (gains) losses and impairment on assets  | **(1529)** | 1310 |
| 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 | **8134** | 5423 |
| Changes in policy related and operating receivables and payables | **5829** | 6426 |
| **Cash provided by (used in) operating activities** | **13963** | 11849 |
| **Investing activities** |  |  |
| Purchases and mortgage advances | **(66756)** | (67008) |
| Disposals and repayments | **53902** | 57009 |
| 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** | **(12453)** | (10033) |
| **Financing activities** |  |  |
| Change in repurchase agreements and securities sold but not yet purchased | **(557)** | 233 |
| Secured borrowings including securitization transactions | **1047** | 516 |
| Change in deposits from Bank clients, net | **373** | 113 |
| Lease payments | **(56)** | (61) |
| Shareholders' dividends and other equity distributions | **(1658)** | (1594) |
| Common shares repurchased (note 10) | **(1160)** | (855) |
| Common shares issued, net (note 10) | **35** | 82 |
| Issue of capital instruments, net (note 9) | **497** | 1596 |
| Redemption of capital instruments (note 9) | **(1000)** | (609) |
| Contributions from (distributions to) non-controlling interests, net | **(1)** | (1) |
| **Cash provided by (used in) financing activities** | **(2480)** | (580) |
| **Cash and short-term securities** |  |  |
| Increase (decrease) during the period | **(970)** | 1236 |
| Effect of foreign exchange rate changes on cash and short-term securities | **(814)** | 341 |
| Balance, beginning of period | **24942** | 19884 |
| **Balance, end of period** | **23158** | 21461 |
| **Cash and short-term securities** |  |  |
| Beginning of period |  |  |
| Gross cash and short-term securities | **25789** | 20338 |
| Net payments in transit, included in other liabilities | **(847)** | (454) |
| **Net cash and short-term securities, beginning of period** | **24942** | 19884 |
| **End of period** |  |  |
| Gross cash and short-term securities | **23773** | 22098 |
| Net payments in transit, included in other liabilities | **(615)** | (637) |
| **Net cash and short-term securities, end of period** | **$23158** | $21461 |
| **Supplemental disclosures on cash flow information** |  |  |
| Interest received | **$6979** | $6813 |
| Interest paid | **815** | 818 |
| Income taxes paid | **524** | 713 |
| The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements. | The accompanying notes are an integral part of these unaudited Interim Consolidated Financial Statements. | 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 endedDecember 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 endedJune 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 endedJune 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<sup>(1)</sup> | FVOCI<sup>(2)</sup> | Other<sup>(3)</sup> | Total carrying <br>value<br>| Total fair <br>value<sup>(4)</sup><br>|
| Cash and short-term securities<sup>(5)</sup> | **$3** | **$17891** | **$5879** | **$23773** | **$23773** |
| Debt securities<sup>(6)</sup> |  |  |  |  |  |
| Canadian government and agency | **1053** | **18572** | **-** | **19625** | **19625** |
| U.S. government and agency | **38** | **27136** | **630** | **27804** | **27539** |
| Other government and agency | **91** | **37219** | **-** | **37310** | **37310** |
| Corporate | **2663** | **118702** | **500** | **121865** | **121679** |
| Mortgage / asset-backed securities | **167** | **1598** | **-** | **1765** | **1765** |
| Public equities (FVTPL mandatory) | **34668** | **-** | **-** | **34668** | **34668** |
| Mortgages | **1329** | **28499** | **25651** | **55479** | **55904** |
| Private placements | **872** | **48142** | **-** | **49014** | **49014** |
| Loans to Bank clients | **-** | **-** | **2506** | **2506** | **2487** |
| Real estate |  |  |  |  |  |
| Own use property<sup>(7)</sup> | **-** | **-** | **2625** | **2625** | **2751** |
| Investment property | **-** | **-** | **10142** | **10142** | **10142** |
| Other invested assets |  |  |  |  |  |
| Alternative long-duration assets<sup>(8)</sup> | **33804** | **371** | **13106** | **47281** | **48360** |
| Various other<sup>(9)</sup> | **134** | **-** | **4475** | **4609** | **4609** |
| **Total invested assets** | **$74822** | **$298130** | **$65514** | **$438466** | **$439626** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| As at December 31, 2024 | FVTPL<sup>(1)</sup> | FVOCI<sup>(2)</sup> | Other<sup>(3)</sup> | Total carrying <br>value<br>| Total fair <br>value<sup>(4)</sup><br>|
| Cash and short-term securities<sup>(5)</sup> | $25 | $19909 | $5855 | $25789 | $25789 |
| Debt securities<sup>(6)</sup> |  |  |  |  |  |
| Canadian government and agency | 1056 | 18671 | - | 19727 | 19727 |
| U.S. government and agency | 58 | 27628 | 968 | 28654 | 28366 |
| Other government and agency | 68 | 35402 | - | 35470 | 35470 |
| Corporate | 2761 | 121674 | 527 | 124962 | 124762 |
| Mortgage / asset-backed securities | 17 | 1791 | - | 1808 | 1808 |
| Public equities (FVTPL mandatory) | 33725 | - | - | 33725 | 33725 |
| Mortgages | 1239 | 28792 | 24416 | 54447 | 54812 |
| Private placements | 866 | 48802 | - | 49668 | 49668 |
| Loans to Bank clients | - | - | 2310 | 2310 | 2285 |
| Real estate |  |  |  |  |  |
| Own use property<sup>(7)</sup> | - | - | 2674 | 2674 | 2798 |
| Investment property | - | - | 10589 | 10589 | 10589 |
| Other invested assets |  |  |  |  |  |
| Alternative long-duration assets<sup>(8)</sup> | 34334 | 389 | 13140 | 47863 | 48875 |
| Various other<sup>(9)</sup> | 140 | - | 4671 | 4811 | 4811 |
| **Total invested assets** | $74289 | $303058 | $65150 | $442497 | $443485 |

---

<sup>(1)</sup> 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.

<sup>(2)</sup> 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.

<sup>(3)</sup> 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.

<sup>(4)</sup> 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 endedJune 30, 2025 was an increase of $8 (for the year ended December

31, 2024 – a $25 increase).

<sup>(5)</sup> 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).

<sup>(6)</sup> 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).

<sup>(7)</sup> 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.

<sup>(8)</sup> 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).

<sup>(9)</sup> 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 <br>value<br>| Level 1 | Level 2 | Level 3 |
| **Cash and short-term securities** |  |  |  |  |
| FVOCI | **$17891** | **$-** | **$17891** | **$-** |
| FVTPL | **3** | **-** | **3** | **-** |
| Other | **5879** | **5879** | **-** | **-** |
| **Debt securities** |  |  |  |  |
| FVOCI |  |  |  |  |
| Canadian government and agency | **18572** | **-** | **18572** | **-** |
| U.S. government and agency | **27136** | **-** | **27136** | **-** |
| Other government and agency | **37219** | **-** | **37205** | **14** |
| Corporate | **118702** | **-** | **118642** | **60** |
| Residential mortgage-backed securities | **1** | **-** | **1** | **-** |
| Commercial mortgage-backed securities | **248** | **-** | **248** | **-** |
| Other asset-backed securities | **1349** | **-** | **1349** | **-** |
| FVTPL |  |  |  |  |
| Canadian government and agency | **1053** | **-** | **1053** | **-** |
| U.S. government and agency | **38** | **-** | **38** | **-** |
| Other government and agency | **91** | **-** | **91** | **-** |
| Corporate | **2663** | **-** | **2663** | **-** |
| Commercial mortgage-backed securities | **1** | **-** | **1** | **-** |
| Other asset-backed securities | **166** | **-** | **156** | **10** |
| Private placements<sup>(1)</sup> |  |  |  |  |
| FVOCI | **48142** | **-** | **38450** | **9692** |
| FVTPL | **872** | **-** | **666** | **206** |
| **Mortgages** |  |  |  |  |
| FVOCI | **28499** | **-** | **-** | **28499** |
| FVTPL | **1329** | **-** | **-** | **1329** |
| **Public equities** |  |  |  |  |
| FVTPL | **34668** | **34598** | **68** | **2** |
| **Real estate**<sup>(2)</sup> |  |  |  |  |
| Investment property | **10142** | **-** | **-** | **10142** |
| Own use property | **2462** | **-** | **-** | **2462** |
| **Other invested assets**<sup>(3)</sup> | **37981** | **70** | **-** | **37911** |
| **Segregated funds net assets**<sup>(4)</sup> | **436558** | **398762** | **34784** | **3012** |
| **Total** | **$831665** | **$439309** | **$299017** | **$93339** |

---

<sup>(1)</sup> 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.

<sup>(2)</sup> For real estate properties, the significant non-market observable inputs are capitalization rates ranging from 3.20% to 11.00% for the six months endedJune 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

endedJune 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 endedJune 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.

<sup>(3)</sup> 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

endedJune 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 endedJune

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.

<sup>(4)</sup> 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 <br>value<br>| Level 1 | Level 2 | Level 3 |
| **Cash and short-term securities** |  |  |  |  |
| FVOCI | $19909 | $- | $19909 | $- |
| FVTPL | 25 | - | 25 | - |
| Other | 5855 | 5855 | - | - |
| **Debt securities** |  |  |  |  |
| **FVOCI** |  |  |  |  |
| Canadian government and agency | 18671 | - | 18671 | - |
| U.S. government and agency | 27628 | - | 27628 | - |
| Other government and agency | 35402 | - | 35392 | 10 |
| Corporate | 121674 | - | 121630 | 44 |
| Residential mortgage-backed securities | 5 | - | 5 | - |
| Commercial mortgage-backed securities | 270 | - | 270 | - |
| Other asset-backed securities | 1516 | - | 1516 | - |
| **FVTPL** |  |  |  |  |
| Canadian government and agency | 1056 | - | 1056 | - |
| U.S. government and agency | 58 | - | 58 | - |
| Other government and agency | 68 | - | 68 | - |
| Corporate | 2761 | - | 2761 | - |
| Commercial mortgage-backed securities | 2 | - | 2 | - |
| Other asset-backed securities | 15 | - | 15 | - |
| **Private placements**<sup>(1)</sup> |  |  |  |  |
| FVOCI | 48802 | - | 40038 | 8764 |
| FVTPL | 866 | - | 730 | 136 |
| **Mortgages** |  |  |  |  |
| FVOCI | 28792 | - | - | 28792 |
| FVTPL | 1239 | - | - | 1239 |
| **Public equities** |  |  |  |  |
| FVTPL | 33725 | 33650 | 75 | - |
| **Real estate**<sup>(2)</sup> |  |  |  |  |
| Investment property | 10589 | - | - | 10589 |
| Own use property | 2500 | - | - | 2500 |
| **Other invested assets**<sup>(3)</sup> | 38543 | 77 | - | 38466 |
| **Segregated funds net assets**<sup>(4)</sup> | 435988 | 399043 | 33611 | 3334 |
| **Total** | $835959 | $438625 | $303460 | $93874 |

---

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 <br>value<br>| Total fair <br>value<br>| Level 1 | Level 2 | Level 3 |
| Mortgages | **$25651** | **$26076** | **$-** | **$-** | **$26076** |
| Loans to Bank clients | **2506** | **2487** | **-** | **2487** | **-** |
| Real estate – own use property | **163** | **289** | **-** | **-** | **289** |
| Public bonds held at amortized cost | **1130** | **679** | **-** | **679** | **-** |
| Other invested assets<sup>(1)</sup> | **13909** | **14988** | **546** | **-** | **14442** |
| **Total invested assets disclosed at fair value** | **$43359** | **$44519** | **$546** | **$3166** | **$40807** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| As at December 31, 2024 | Carrying <br>value<br>| Total fair <br>value<br>| Level 1 | Level 2 | Level 3 |
| Mortgages | $24416 | $24781 | $- | $- | $24781 |
| Loans to Bank clients | 2310 | 2285 | - | 2285 | - |
| Real estate – own use property | 174 | 298 | - | - | 298 |
| Public bonds held at amortized cost | 1495 | 1007 | - | 1007 | - |
| Other invested assets<sup>(1)</sup> | 14131 | 15143 | 542 | - | 14601 |
| **Total invested assets disclosed at fair value** | $42526 | $43514 | $542 | $3292 | $39680 |

---

<sup>(1)</sup> The 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 endedJune 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 endedJune 30, 2025 and June 30,

2024. ---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For the three months ended** <br>**June 30, 2025**<br>| Balance, <br>April 1, <br>2025<br>| Total <br>gains <br>(losses) <br>included <br>in net <br>income<sup>(1)</sup><br>| Total <br>gains <br>(losses) <br>included <br>in OCI<sup>(2)</sup><br>| Purchases | Sales | Settlements | Transfer <br>in<sup>(3)</sup><br>| Transfer <br>out<sup>(3)</sup><br>| Currency <br>movement<br>| **Balance,** <br>**June 30,** <br>**2025**<br>| Change in <br>unrealized <br>gains <br>(losses) on <br>assets still <br>held<br>|
| **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 | **9435** | **(4)** | **(40)** | **775** | **(30)** | **(238)** | **197** | **-** | **(403)** | **9692** | **-** |
| FVTPL | **132** | **2** | **-** | **5** | **-** | **(7)** | **73** | **-** | **1** | **206** | **2** |
| **Mortgages** |  |  |  |  |  |  |  |  |  |  |  |
| FVOCI | **29067** | **30** | **175** | **1063** | **(616)** | **(209)** | **-** | **-** | **(1011)** | **28499** | **-** |
| FVTPL | **1267** | **(8)** | **-** | **111** | **(21)** | **(20)** | **-** | **-** | **-** | **1329** | **-** |
| **Investment property** | **10492** | **(26)** | **-** | **18** | **(40)** | **-** | **-** | **-** | **(302)** | **10142** | **(27)** |
| **Own use property** | **2505** | **5** | **-** | **2** | **-** | **-** | **-** | **-** | **(50)** | **2462** | **5** |
| **Other invested assets** | **38754** | **297** | **(7)** | **1027** | **(226)** | **(430)** | **-** | **-** | **(1504)** | **37911** | **271** |
| **Total invested assets** | **91721** | **297** | **125** | **3001** | **(933)** | **(906)** | **292** | **-** | **(3270)** | **90327** | **252** |
| **Derivatives, net** | **(2419)** | **(592)** | **(1)** | **-** | **-** | **(23)** | **-** | **304** | **113** | **(2618)** | **(592)** |
| **Segregated funds net assets** | **3189** | **17** | **-** | **18** | **(147)** | **18** | **-** | **-** | **(83)** | **3012** | **3** |
| **Total** | **$92491** | **$(278)** | **$124** | **$3019** | **$(1080)** | **$(911)** | **$292** | **$304** | **$(3240)** | **$90721** | **$(337)** |

---

<sup>(1)</sup> 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.

<sup>(2)</sup> These amounts are included in OCI on the Consolidated Statements of Comprehensive Income.

<sup>(3)</sup> 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 <br>June 30, 2024<br>| Balance, <br>April 1, <br>2024<br>| Total <br>gains <br>(losses) <br>included <br>in net <br>income<sup>(1)</sup><br>| Total <br>gains <br>(losses) <br>included <br>in OCI<sup>(2)</sup><br>| Purchases | Sales | Settlements | Transfer <br>in<sup>(3)</sup><br>| Transfer <br>out<sup>(3)</sup><br>| Currency <br>movement<br>| Balance, <br>June 30, <br>2024<br>| Change in <br>unrealized <br>gains <br>(losses) on <br>assets still <br>held<br>|
| **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 | 7518 | 2 | (37) | 776 | (86) | (139) | 28 | (20) | 51 | 8093 | - |
| FVTPL | 52 | (3) | - | 39 | - | (6) | 29 | - | - | 111 | (3) |
| **Mortgages** |  |  |  |  |  |  |  |  |  |  |  |
| FVOCI | 28458 | 11 | (88) | 488 | (741) | (188) | - | - | 192 | 28132 | - |
| FVTPL | 1102 | 3 | - | 115 | (28) | (8) | - | - | - | 1184 | - |
| **Investment property** | 10454 | (115) | - | 35 | (24) | - | - | - | 59 | 10409 | (113) |
| **Own use property** | 2434 | (1) | - | (1) | - | - | - | - | 16 | 2448 | (1) |
| **Other invested assets** | 35273 | 192 | 3 | 1074 | (1075) | (301) | - | - | 246 | 35412 | (8) |
| **Total invested assets** | 85601 | 88 | (124) | 2537 | (1954) | (653) | 57 | (56) | 563 | 86059 | (126) |
| **Derivatives, net** | (2697) | (528) | - | - | - | (30) | - | 676 | (7) | (2586) | (525) |
| **Segregated funds net assets** | 3440 | 9 | - | 23 | (10) | (13) | - | - | 7 | 3456 | 5 |
| **Total** | $86344 | $(431) | $(124) | $2560 | $(1964) | $(696) | $57 | $620 | $563 | $86929 | $(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 endedJune 30, 2025 and June 30, 2024.

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For the six months ended**<br>**June 30, 2025**<br>| Balance, <br>January <br>1, 2025<br>| Total <br>gains <br>(losses) <br>included <br>in net <br>income<sup>(1)</sup><br>| Total <br>gains <br>(losses) <br>included <br>in OCI<sup>(2)</sup><br>| Purchases | Sales | Settlements | Transfer <br>in<sup>(3)</sup><br>| Transfer <br>out<sup>(3)</sup><br>| Currency <br>movement<br>| Balance, <br>June 30, <br>2025<br>| Change in <br>unrealized <br>gains <br>(losses) on <br>assets still <br>held<br>|
| **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 | **8764** | **(3)** | **(194)** | **2017** | **(244)** | **(599)** | **335** | **(10)** | **(374)** | **9692** | **-** |
| FVTPL | **136** | **(8)** | **-** | **25** | **-** | **(22)** | **74** | **-** | **1** | **206** | **(8)** |
| **Mortgages** |  |  |  |  |  |  |  |  |  |  |  |
| FVOCI | **28792** | **11** | **528** | **1413** | **(873)** | **(396)** | **-** | **-** | **(976)** | **28499** | **-** |
| FVTPL | **1239** | **8** | **-** | **141** | **(27)** | **(31)** | **-** | **-** | **(1)** | **1329** | **-** |
| **Investment property** | **10589** | **(66)** | **-** | **88** | **(188)** | **-** | **-** | **-** | **(281)** | **10142** | **(85)** |
| **Own use property** | **2500** | **(7)** | **-** | **3** | **-** | **-** | **-** | **-** | **(34)** | **2462** | **(7)** |
| **Other invested assets** | **38466** | **422** | **10** | **2423** | **(1050)** | **(964)** | **-** | **-** | **(1396)** | **37911** | **233** |
| **Total invested assets** | **90540** | **358** | **347** | **6120** | **(2382)** | **(2014)** | **431** | **(10)** | **(3063)** | **90327** | **134** |
| **Derivatives, net** | **(3235)** | **(143)** | **(1)** | **-** | **-** | **(37)** | **-** | **695** | **103** | **(2618)** | **(243)** |
| **Segregated funds net** <br>**assets**<br>| **3334** | **15** | **(172)** | **38** | **(179)** | **58** | **-** | **-** | **(82)** | **3012** | **6** |
| **Total** | **$90639** | **$230** | **$174** | **$6158** | **$(2561)** | **$(1993)** | **$431** | **$685** | **$(3042)** | **$90721** | **$(103)** |

---

<sup>(1)</sup> 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.

<sup>(2)</sup> These amounts are included in OCI on the Consolidated Statements of Comprehensive Income.

<sup>(3)</sup> 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<br>June 30, 2024<br>| Balance, <br>January <br>1, 2024<br>| Total <br>gains <br>(losses) <br>included <br>in net <br>income<sup>(1)</sup><br>| Total <br>gains <br>(losses) <br>included <br>in OCI<sup>(2)</sup><br>| Purchases | Sales | Settlements | Transfer <br>in<sup>(3)</sup><br>| Transfer <br>out<sup>(3),(4)</sup><br>| Currency <br>movement<br>| Balance, <br>June 30, <br>2024<br>| Change in <br>unrealized <br>gains <br>(losses) on <br>assets still <br>held<br>|
| **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 | 7682 | 4 | (5) | 1594 | (642) | (390) | 224 | (534) | 160 | 8093 | - |
| FVTPL | 79 | (4) | - | 39 | - | (17) | 29 | (14) | (1) | 111 | (4) |
| **Mortgages** |  |  |  |  |  |  |  |  |  |  |  |
| FVOCI | 28473 | 20 | (399) | 971 | (1211) | (373) | - | - | 651 | 28132 | - |
| FVTPL | 1055 | (5) | - | 205 | (56) | (16) | - | - | 1 | 1184 | - |
| **Investment property** | 10458 | (281) | - | 115 | (63) | - | - | - | 180 | 10409 | (290) |
| **Own use property** | 2430 | (32) | - | 9 | - | - | - | - | 41 | 2448 | (32) |
| **Other invested assets** | 33585 | 748 | 36 | 2021 | (1188) | (559) | - | - | 769 | 35412 | 507 |
| **Total invested assets** | 84065 | 450 | (366) | 4965 | (3160) | (1369) | 257 | (584) | 1801 | 86059 | 181 |
| **Derivatives, net** | (2166) | (1104) | - | - | - | (49) | - | 782 | (49) | (2586) | (969) |
| **Segregated funds net** <br>**assets**<br>| 3492 | (20) | 5 | 99 | (189) | 16 | - | - | 53 | 3456 | (85) |
| **Total** | $85391 | $(674) | $(361) | $5064 | $(3349) | $(1402) | $257 | $198 | $1805 | $86929 | $(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** <br>**June 30,** | **three months ended** <br>**June 30,** | **six months ended**<br>**June 30,** | **six months ended**<br>**June 30,** |
| **For the** | **2025** | 2024 | **2025** | 2024 |
| Interest income | **$3494** | $3425 | **$6998** | $6861 |
| Dividends, rental income and other income | **1214** | 719 | **2121** | 1400 |
| Impairments (loss) / recovery, net | **(109)** | 24 | **(168)** | 61 |
| Other | **141** | 93 | **23** | 190 |
| Investment income | **4740** | 4261 | **8974** | 8512 |
| Debt securities | **(35)** | (527) | **(559)** | (1214) |
| Public equities | **1879** | 544 | **1520** | 2297 |
| 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 <br>investment contract liabilities<br>| **2377** | 564 | **1385** | 1102 |
| Investment expenses | **(321)** | (313) | **(617)** | (609) |
| **Net investment income (loss)** | **$6796** | $4512 | **$9742** | $9005 |

---

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<sup>(1)</sup> | Remaining term to maturity<sup>(1)</sup> | Remaining term to maturity<sup>(1)</sup> | Remaining term to maturity<sup>(1)</sup> | Remaining term to maturity<sup>(1)</sup> | Remaining term to maturity<sup>(1)</sup> |  |
| **As at June 30, 2025** | Less than <br>1 year<br>| 1 to 3 <br>years<br>| 3 to 5 <br>years<br>| 5 to 10 <br>years<br>| Over 10 <br>years<br>| With no <br>specific <br>maturity<br>| Total |
| Cash and short-term securities | **$23773** | **$-** | **$-** | **$-** | **$-** | **$-** | **$23773** |
| Debt securities |  |  |  |  |  |  |  |
| Canadian government and agency | **688** | **1623** | **918** | **3711** | **12685** | **-** | **19625** |
| U.S. government and agency | **137** | **690** | **2016** | **3486** | **21475** | **-** | **27804** |
| Other government and agency | **442** | **1178** | **774** | **3381** | **31535** | **-** | **37310** |
| Corporate | **7691** | **14958** | **15448** | **33289** | **50479** | **-** | **121865** |
| Mortgage / asset-backed securities | **109** | **189** | **309** | **422** | **736** | **-** | **1765** |
| Public equities | **-** | **-** | **-** | **-** | **-** | **34668** | **34668** |
| Mortgages | **6012** | **11754** | **9992** | **7255** | **9866** | **10600** | **55479** |
| Private placements | **1394** | **5817** | **4575** | **10779** | **26415** | **34** | **49014** |
| Loans to Bank clients | **48** | **8** | **3** | **-** | **-** | **2447** | **2506** |
| Real estate |  |  |  |  |  |  |  |
| Own use property | **-** | **-** | **-** | **-** | **-** | **2625** | **2625** |
| Investment property | **-** | **-** | **-** | **-** | **-** | **10142** | **10142** |
| Other invested assets |  |  |  |  |  |  |  |
| Alternative long-duration assets | **21** | **24** | **80** | **304** | **494** | **46358** | **47281** |
| Various other | **-** | **19** | **-** | **3639** | **507** | **444** | **4609** |
| **Total invested assets** | **$40315** | **$36260** | **$34115** | **$66266** | **$154192** | **$107318** | **$438466** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | Remaining term to maturity<sup>(1)</sup> | Remaining term to maturity<sup>(1)</sup> | Remaining term to maturity<sup>(1)</sup> | Remaining term to maturity<sup>(1)</sup> | Remaining term to maturity<sup>(1)</sup> | Remaining term to maturity<sup>(1)</sup> |  |
| As at December 31, 2024 | Less than <br>1 year<br>| 1 to 3 <br>years<br>| 3 to 5 <br>years<br>| 5 to 10 <br>years<br>| Over 10 <br>years<br>| With no <br>specific <br>maturity<br>| Total |
| Cash and short-term securities | $25789 | $- | $- | $- | $- | $- | $25789 |
| Debt securities |  |  |  |  |  |  |  |
| Canadian government and agency | 543 | 2282 | 678 | 3339 | 12885 | - | 19727 |
| U.S. government and agency | 644 | 640 | 1473 | 4699 | 21198 | - | 28654 |
| Other government and agency | 372 | 1208 | 1056 | 3566 | 29268 | - | 35470 |
| Corporate | 7810 | 15763 | 15817 | 33818 | 51754 | - | 124962 |
| Mortgage / asset-backed securities | 60 | 260 | 213 | 450 | 825 | - | 1808 |
| Public equities | - | - | - | - | - | 33725 | 33725 |
| Mortgages | 4741 | 11944 | 10478 | 7617 | 9876 | 9791 | 54447 |
| Private placements | 1534 | 5093 | 4986 | 10463 | 27500 | 92 | 49668 |
| Loans to Bank clients | 47 | 13 | 3 | - | - | 2247 | 2310 |
| Real estate |  |  |  |  |  |  |  |
| Own use property | - | - | - | - | - | 2674 | 2674 |
| Investment property | - | - | - | - | - | 10589 | 10589 |
| Other invested assets |  |  |  |  |  |  |  |
| Alternative long-duration assets | 67 | - | 85 | 276 | 524 | 46911 | 47863 |
| Various other | - | 20 | - | 3623 | 657 | 511 | 4811 |
| **Total invested assets** | $41607 | $37223 | $34789 | $67851 | $154487 | $106540 | $442497 |

---

<sup>(1)</sup> 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** | **June 30, 2025** | **June 30, 2025** | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| **As at** |  | Notional <br>amount | Fair value | Fair value | Notional <br>amount | Fair value | Fair value |
| **Type of hedge** | Instrument type | Notional <br>amount | Assets | Liabilities | Notional <br>amount | Assets | Liabilities |
| **Qualifying hedge accounting relationships** | **Qualifying hedge accounting relationships** |  |  |  |  |  |  |
| **Fair value hedges** | Interest rate swaps | **$200744** | **$2595** | **$3452** | $206181 | $2734 | $3533 |
|  | Foreign currency swaps | **15660** | **96** | **2093** | 14121 | 145 | 2114 |
|  | Forward contracts  | **21396** | **4** | **2799** | 25692 | 74 | 3420 |
| **Cash flow hedges** | Interest rate swaps | **8573** | **23** | **50** | 9036 | 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 | Total derivatives in qualifying hedge accounting relationships | **247978** | **2731** | **8597** | 256606 | 3001 | 9331 |
| **Derivatives not designated in qualifying hedge accounting relationships** | **Derivatives not designated in qualifying hedge accounting relationships** | **Derivatives not designated in qualifying hedge accounting relationships** | **Derivatives not designated in qualifying hedge accounting relationships** | **Derivatives not designated in qualifying hedge accounting relationships** |  |  |  |
|  | Interest rate swaps | **110345** | **2417** | **2810** | 110114 | 2188 | 2906 |
|  | Interest rate futures | **22755** | **-** | **-** | 9054 | - | - |
|  | Interest rate options | **5031** | **14** | **-** | 5633 | 16 | - |
|  | Foreign currency swaps | **34626** | **2501** | **574** | 33924 | 1854 | 272 |
|  | Currency rate futures | **2497** | **-** | **-** | 2238 | - | - |
|  | Forward contracts | **56769** | **699** | **1590** | 52044 | 882 | 1675 |
|  | Equity contracts | **25250** | **729** | **34** | 25290 | 724 | 63 |
|  | Credit default swaps | **118** | **2** | **-** | 114 | 2 | - |
|  | Equity futures | **4368** | **-** | **-** | 4004 | - | - |
| Total derivatives not designated in qualifying hedge accounting <br>relationships | Total derivatives not designated in qualifying hedge accounting <br>relationships | **261759** | **6362** | **5008** | 242415 | 5666 | 4916 |
| **Total derivatives** | **Total derivatives** | **$509737** | **$9093** | **$13605** | $499021 | $8667 | $14247 |

---

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 | Remaining term to maturity | Remaining term to maturity | Remaining term to maturity | Total |
| **As at June 30, 2025** | Less than <br>1 year<br>| 1 to 3 <br>years<br>| 3 to 5 <br>years<br>| Over 5 <br>years<br>| Total |
| Derivative assets | **$912** | **$724** | **$754** | **$6703** | **$9093** |
| Derivative liabilities | **2226** | **1973** | **904** | **8502** | **13605** |
|  | Remaining term to maturity | Remaining term to maturity | Remaining term to maturity | Remaining term to maturity | Total |
| As at December 31, 2024 | Less than <br>1 year<br>| 1 to 3 <br>years<br>| 3 to 5 <br>years<br>| Over 5 <br>years<br>| Total |
| Derivative assets | $1171 | $578 | $635 | $6283 | $8667 |
| Derivative liabilities | 2320 | 2304 | 1244 | 8379 | 14247 |

---

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 | **$5282** | **$-** | **$5123** | **$159** |
| Foreign exchange contracts | **3067** | **-** | **3066** | **1** |
| Equity contracts | **742** | **-** | **740** | **2** |
| Credit default swaps | **2** | **-** | **2** | **-** |
| **Total derivative assets** | **$9093** | **$-** | **$8931** | **$162** |
| **Derivative liabilities** |  |  |  |  |
| Interest rate contracts | **$9822** | **$-** | **$7052** | **$2770** |
| Foreign exchange contracts | **3749** | **-** | **3747** | **2** |
| Equity contracts | **34** | **-** | **26** | **8** |
| **Total derivative liabilities** | **$13605** | **$-** | **$10825** | **$2780** |
| As at December 31, 2024 | Fair value | Level 1 | Level 2 | Level 3 |
| **Derivative assets** |  |  |  |  |
| Interest rate contracts | $5193 | $- | $5026 | $167 |
| Foreign exchange contracts | 2742 | - | 2742 | - |
| Equity contracts | 730 | - | 730 | - |
| Credit default swaps | 2 | - | 2 | - |
| **Total derivative assets** | $8667 | $- | $8500 | $167 |
| **Derivative liabilities** |  |  |  |  |
| Interest rate contracts | $10954 | $- | $7571 | $3383 |
| Foreign exchange contracts | 3230 | - | 3227 | 3 |
| Equity contracts | 63 | - | 47 | 16 |
| **Total derivative liabilities** | $14247 | $- | $10845 | $3402 |

---

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

endedJune 30, 2025 and for the year endedDecember 31, 2024, and insurance finance (income) expenses for the six months

endedJune 30, 2025.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Estimates of <br>PV of future <br>cash flows<br>| Risk <br>adjustment for <br>non-financial <br>risk<br>| CSM | Assets for <br>insurance <br>acquisition <br>cash flows<br>| Total |
| Opening General Measurement Method ("GMM") and Variable Fee Approach <br>("VFA") insurance contract assets<br>| **$(490)** | **$144** | **$248** | **$-** | **$(98)** |
| Opening GMM and VFA insurance contract liabilities | **334706** | **22160** | **26517** | **(61)** | **383322** |
| Opening Premium Allocation Approach ("PAA") insurance contract net liabilities | **13201** | **691** | **-** | **(817)** | **13075** |
| Opening insurance contract liabilities for account of segregated fund holders | **126545** | **-** | **-** | **-** | **126545** |
| **Net opening balance, January 1, 2025** | **473962** | **22995** | **26765** | **(878)** | **522844** |
| Changes that relate to current services | **(120)** | **(714)** | **(1468)** | **-** | **(2302)** |
| Changes that relate to future services | **(2833)** | **589** | **2464** | **-** | **220** |
| Changes that relate to past services | **(47)** | **(9)** | **-** | **-** | **(56)** |
| **Insurance service result** | **(3000)** | **(134)** | **996** | **-** | **(2138)** |
| Insurance finance (income) expenses | **12128** | **809** | **201** | **-** | **13138** |
| Effects of movements in foreign exchange rates | **(12782)** | **(1119)** | **(962)** | **-** | **(14863)** |
| **Total changes in income and OCI** | **(3654)** | **(444)** | **235** | **-** | **(3863)** |
| Total cash flows | **4376** | **-** | **-** | **-** | **4376** |
| 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 <br>fund holders<br>| **(3006)** | **-** | **-** | **-** | **(3006)** |
| **Net closing balance** | **472065** | **22584** | **27000** | **(806)** | **520843** |
| Closing GMM and VFA insurance contract assets  | **(434)** | **84** | **170** | **-** | **(180)** |
| Closing GMM and VFA insurance contract liabilities | **335369** | **21776** | **26830** | **(60)** | **383915** |
| Closing PAA insurance contract net liabilities | **13591** | **724** | **-** | **(746)** | **13569** |
| Closing insurance contract liabilities for account of segregated fund insurance <br>holders<br>| **123539** | **-** | **-** | **-** | **123539** |
| **Net closing balance, June 30, 2025** | **$472065** | **$22584** | **$27000** | **$(806)** | **$520843** |

---

---

| | |
|:---|:---|
| **Insurance finance (income) expenses ("IFIE")** | **For the six** <br>**months** <br>**ended June** <br>**30, 2025**<br>|
| Insurance finance (income) expenses for products not under PAA, per disclosure above<sup>(1)</sup> | **$13138** |
| 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** | **14167** |
| Effect of movements in foreign exchange rates | **(1630)** |
| **Total insurance finance (income) expenses from insurance contracts issued and effect of movement in foreign exchange rates** | **$12537** |
| Portion recognized in (income) expenses, including effects of foreign exchange rates | **8910** |
| Portion recognized in OCI, including effects of foreign exchange rates | **3627** |

---

<sup>(1)</sup> 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 <br>PV of future <br>cash flows<br>| Risk <br>adjustment for <br>non-financial <br>risk<br>| CSM | Assets for <br>insurance <br>acquisition <br>cash flows<br>| Total |
| Opening GMM and VFA insurance contract assets  | $(416) | $141 | $131 | $- | $(144) |
| Opening GMM and VFA insurance contract liabilities | 310807 | 22697 | 21973 | (59) | 355418 |
| Opening PAA insurance contract net liabilities | 12712 | 626 | - | (761) | 12577 |
| Opening insurance contract liabilities for account of segregated fund holders | 114143 | - | - | - | 114143 |
| **Net opening balance, January 1, 2024** | 437246 | 23464 | 22104 | (820) | 481994 |
| Changes that relate to current services | (532) | (1430) | (2697) | - | (4659) |
| Changes that relate to future services | (3732) | (907) | 5520 | - | 881 |
| Changes that relate to past services | (8) | (4) | - | - | (12) |
| **Insurance service result** | (4272) | (2341) | 2823 | - | (3790) |
| Insurance finance (income) expenses | 2317 | (59) | 354 | - | 2612 |
| Effects of movements in foreign exchange rates | 21946 | 1866 | 1484 | - | 25296 |
| **Total changes in income and OCI** | 19991 | (534) | 4661 | - | 24118 |
| Total cash flows | 3840 | - | - | - | 3840 |
| 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 <br>fund holders<br>| 12402 | - | - | - | 12402 |
| **Net closing balance** | 473962 | 22995 | 26765 | (878) | 522844 |
| Closing GMM and VFA insurance contract assets  | (490) | 144 | 248 | - | (98) |
| Closing GMM and VFA insurance contract liabilities | 334706 | 22160 | 26517 | (61) | 383322 |
| Closing PAA insurance contract net liabilities | 13201 | 691 | - | (817) | 13075 |
| Closing insurance contract liabilities for account of segregated fund insurance <br>holders<br>| 126545 | - | - | - | 126545 |
| **Net closing balance, December 31, 2024** | $473962 | $22995 | $26765 | $(878) | $522844 |

---

**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 endedJune 30, 2025and for the year

endedDecember 31, 2024.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Estimates of <br>PV of future <br>cash flows<br>| Risk <br>adjustment for <br>non-financial <br>risk<br>| CSM | Total |
| Opening reinsurance contract held assets | **$50275** | **$5442** | **$3008** | **$58725** |
| Opening reinsurance contract held liabilities | **(3308)** | **333** | **333** | **(2642)** |
| Opening PAA reinsurance contract net assets | **249** | **14** | **-** | **263** |
| **Net opening balance, January 1, 2025** | **47216** | **5789** | **3341** | **56346** |
| 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 | **1406** | **243** | **60** | **1709** |
| Effects of changes in non-performance risk of reinsurers | **1** | **-** | **-** | **1** |
| Effects of movements in foreign exchange rates | **(2768)** | **(279)** | **(130)** | **(3177)** |
| **Total changes in income and OCI** | **(2253)** | **343** | **(63)** | **(1973)** |
| Total cash flows | **3927** | **-** | **-** | **3927** |
| Change in PAA balance | **(6)** | **(1)** | **-** | **(7)** |
| **Net closing balance** | **48884** | **6131** | **3278** | **58293** |
| Closing reinsurance contract held assets | **52263** | **5796** | **2894** | **60953** |
| Closing reinsurance contract held liabilities | **(3622)** | **322** | **384** | **(2916)** |
| Closing PAA reinsurance contract net assets | **243** | **13** | **-** | **256** |
| **Net closing balance, June 30, 2025** | **$48884** | **$6131** | **$3278** | **$58293** |

---

Manulife Financial Corporation – Second Quarter 2025 87

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Estimates of <br>PV of future <br>cash flows<br>| Risk <br>adjustment <br>for non-<br>financial risk<br>| CSM | Total |
| Opening reinsurance contract held assets | $38156 | $3685 | $514 | $42355 |
| Opening reinsurance contract held liabilities | (4384) | 1305 | 289 | (2790) |
| Opening PAA reinsurance contract net assets | 239 | 16 | - | 255 |
| **Net opening balance, January 1, 2024** | 34011 | 5006 | 803 | 39820 |
| Changes that relate to current services | (265) | (536) | (321) | (1122) |
| Changes that relate to future services | (3232) | 972 | 2631 | 371 |
| Changes that relate to past services | 11 | - | - | 11 |
| **Insurance service result** | (3486) | 436 | 2310 | (740) |
| Insurance finance (income) expenses from reinsurance contracts | (1858) | (62) | 78 | (1842) |
| Effects of changes in non-performance risk of reinsurers | (58) | - | - | (58) |
| Effects of movements in foreign exchange rates | 4069 | 411 | 150 | 4630 |
| **Total changes in income and OCI** | (1333) | 785 | 2538 | 1990 |
| Total cash flows | 14528 | - | - | 14528 |
| Change in PAA balance | 10 | (2) | - | 8 |
| **Net closing balance** | 47216 | 5789 | 3341 | 56346 |
| Closing reinsurance contract held assets | 50275 | 5442 | 3008 | 58725 |
| Closing reinsurance contract held liabilities | (3308) | 333 | 333 | (2642) |
| Closing PAA reinsurance contract net assets | 249 | 14 | - | 263 |
| **Net closing balance, December 31, 2024** | $47216 | $5789 | $3341 | $56346 |

---

**(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**<br>**June 30, 2025** | **For the six months ended**<br>**June 30, 2025** | For the year ended <br>December 31, 2024 | For the year ended <br>December 31, 2024 |
|  | Non-onerous | Onerous | Non-onerous | Onerous |
| **New business insurance contracts** |  |  |  |  |
| Estimates of present value of cash outflows | **$21202** | **$605** | $35333 | $2170 |
| *Insurance acquisition cash flows* | ***3876*** | ***129*** | *6426* | *398* |
| *Claims and other insurance service expenses payable* | ***17326*** | ***476*** | *28907* | *1772* |
| Estimates of present value of cash inflows | **(23707)** | **(591)** | (39381) | (2165) |
| Risk adjustment for non-financial risk | **475** | **33** | 853 | 99 |
| Contractual service margin | **2030** | **-** | 3195 | - |
| **Amount included in insurance contract liabilities for the period** | **$-** | **$47** | $- | $104 |

---

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

---

| | | |
|:---|:---|:---|
|  | **For the six** <br>**months** <br>**endedJune** <br>**30, 2025**<br>| For the year <br>ended <br>December 31, <br>2024<br>|
| **New business reinsurance contracts** |  |  |
| Estimates of present value of cash outflows | **$(7164)** | $(20816) |
| Estimates of present value of cash inflows | **6295** | 18990 |
| Risk adjustment for non-financial risk | **650** | 1261 |
| 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** <br>**June 30,** | **three months ended** <br>**June 30,** | **six months ended**<br>**June 30,** | **six months ended**<br>**June 30,** |
| **For the** | **2025** | 2024 | **2025** | 2024 |
| Expected incurred claims and other insurance service result | **$3697** | $3509 | **$7477** | $7062 |
| Change in risk adjustment for non-financial risk expired | **347** | 366 | **709** | 732 |
| CSM recognized for services provided | **734** | 642 | **1468** | 1282 |
| Recovery of insurance acquisition cash flows | **437** | 313 | **860** | 592 |
| Contracts under PAA | **1775** | 1685 | **3538** | 3344 |
| **Total insurance revenue** | **$6990** | $6515 | **$14052** | $13012 |

---

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** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **June 30, 2025** | **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<sup>(1)</sup> | 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<sup>(1)</sup> | 30 | 70 | **4.34%** | **4.53%** | **5.68%** | **6.45%** | **6.32%** | **5.03%** |
| Japan | JPY | Somewhat liquid<sup>(1)</sup> | 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 | December 31, 2024 | December 31, 2024 | December 31, 2024 | December 31, 2024 | 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<sup>(1)</sup> | 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<sup>(1)</sup> | 30 | 70 | 4.56% | 5.09% | 5.91% | 6.33% | 6.14% | 5.03% |
| Japan | JPY | Somewhat liquid<sup>(1)</sup> | 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% |

---

<sup>(1)</sup> 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** | **June 30, 2025** | **June 30, 2025** | December 31, 2024 | December 31, 2024 | December 31, 2024 |
| **As at** | Investment <br>contract <br>liabilities, <br>gross of <br>reinsurance<br>| Reinsurance <br>financial <br>assets<br>| Net | Investment <br>contract <br>liabilities, <br>gross of <br>reinsurance<br>| Reinsurance <br>financial <br>assets<br>| 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 | **13162** | **968** | **12194** | 12690 | 1052 | 11638 |
| Fair value | **13392** | **925** | **12467** | 12795 | 978 | 11817 |

---

**(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 Quarter2025 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 | **$197107** | **$1325** | **$-** | **$198432** |
| Non-investment grade | **4280** | **515** | **-** | **4795** |
| Total carrying value | **201387** | **1840** | **-** | **203227** |
| Allowance for credit losses  | **248** | **44** | **-** | **292** |
| **Debt securities, measured at amortized cost** |  |  |  |  |
| Investment grade | **1131** | **-** | **-** | **1131** |
| Non-investment grade | **-** | **-** | **-** | **-** |
| Total | **1131** | **-** | **-** | **1131** |
| Allowance for credit losses  | **1** | **-** | **-** | **1** |
| Total carrying value, net of allowance | **1130** | **-** | **-** | **1130** |
| **Private placements, measured at FVOCI** |  |  |  |  |
| Investment grade | **41331** | **599** | **-** | **41930** |
| Non-investment grade | **5024** | **967** | **221** | **6212** |
| Total carrying value | **46355** | **1566** | **221** | **48142** |
| Allowance for credit losses  | **148** | **117** | **202** | **467** |
| **Commercial mortgages, measured at FVOCI** |  |  |  |  |
| AAA | **190** | **-** | **-** | **190** |
| AA | **7218** | **-** | **-** | **7218** |
| A | **14063** | **-** | **-** | **14063** |
| BBB | **5547** | **773** | **-** | **6320** |
| BB | **58** | **526** | **-** | **584** |
| B and lower | **-** | **65** | **59** | **124** |
| Total carrying value | **27076** | **1364** | **59** | **28499** |
| 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 | **23698** | **1525** | **-** | **25223** |
| Non-performing | **-** | **-** | **48** | **48** |
| Total | **23698** | **1525** | **48** | **25271** |
| Allowance for credit losses | **3** | **3** | **1** | **7** |
| Total carrying value, net of allowance | **23695** | **1522** | **47** | **25264** |
| **Loans to Bank clients, measured at amortized cost** |  |  |  |  |
| Performing | **2460** | **44** | **-** | **2504** |
| Non-performing | **-** | **-** | **5** | **5** |
| Total | **2460** | **44** | **5** | **2509** |
| Allowance for credit losses | **1** | **1** | **1** | **3** |
| Total carrying value, net of allowance | **2459** | **43** | **4** | **2506** |
| **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 | **4166** | **-** | **-** | **4166** |
| Non-investment grade | **-** | **-** | **-** | **-** |
| Total | **4166** | **-** | **-** | **4166** |
| Allowance for credit losses | **1** | **-** | **-** | **1** |
| Total carrying value, net of allowance | **4165** | **-** | **-** | **4165** |
| **Loan commitments** |  |  |  |  |
| Allowance for credit losses  | **13** | **2** | **1** | **16** |
| **Total carrying value, net of allowance** | **$307006** | **$6346** | **$339** | **$313691** |

---

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 | $197840 | $1338 | $- | $199178 |
| Non-investment grade | 5625 | 363 | - | 5988 |
| Total carrying value | 203465 | 1701 | - | 205166 |
| Allowance for credit losses  | 228 | 42 | - | 270 |
| **Debt securities, measured at amortized cost** |  |  |  |  |
| Investment grade | 1496 | - | - | 1496 |
| Non-investment grade | - | - | - | - |
| Total | 1496 | - | - | 1496 |
| Allowance for credit losses  | 1 | - | - | 1 |
| Total carrying value, net of allowance | 1495 | - | - | 1495 |
| **Private placements, measured at FVOCI** |  |  |  |  |
| Investment grade | 41796 | 721 | - | 42517 |
| Non-investment grade | 5004 | 1133 | 148 | 6285 |
| Total carrying value | 46800 | 1854 | 148 | 48802 |
| Allowance for credit losses  | 126 | 127 | 123 | 376 |
| **Commercial mortgages, measured at FVOCI** |  |  |  |  |
| AAA | 205 | - | - | 205 |
| AA | 7234 | - | - | 7234 |
| A | 14035 | - | - | 14035 |
| BBB | 5679 | 873 | - | 6552 |
| BB | 11 | 663 | - | 674 |
| B and lower | - | 21 | 71 | 92 |
| Total carrying value | 27164 | 1557 | 71 | 28792 |
| 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 | 22870 | 1151 | - | 24021 |
| Non-performing | - | - | 41 | 41 |
| Total | 22870 | 1151 | 41 | 24062 |
| Allowance for credit losses | 3 | 2 | 1 | 6 |
| Total carrying value, net of allowance | 22867 | 1149 | 40 | 24056 |
| **Loans to Bank clients, measured at amortized cost** |  |  |  |  |
| Performing | 2265 | 38 | - | 2303 |
| Non-performing | - | - | 10 | 10 |
| Total | 2265 | 38 | 10 | 2313 |
| Allowance for credit losses | 1 | 1 | 1 | 3 |
| Total carrying value, net of allowance | 2264 | 37 | 9 | 2310 |
| **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 | 4302 | - | - | 4302 |
| Non-investment grade | - | - | - | - |
| Total | 4302 | - | - | 4302 |
| Allowance for credit losses | 2 | - | - | 2 |
| Total carrying value, net of allowance | 4300 | - | - | 4300 |
| **Loan commitments** |  |  |  |  |
| Allowance for credit losses  | 9 | 1 | 1 | 11 |
| **Total carrying value, net of allowance** | $309080 | $6317 | $273 | $315670 |

---

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 endedJune 30, 2025 and for

the year endedDecember 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 <br>quarter | Base case scenario | Base case scenario | Upside scenario | Upside scenario | Downside scenario 1 | Downside scenario 1 | Downside scenario 2 | Downside scenario 2 |
| **As at June 30, 2025** | Current <br>quarter | Next 12 <br>months<br>| Ensuing <br>4 years<br>| Next 12 <br>months<br>| Ensuing <br>4 years<br>| Next 12 <br>months<br>| Ensuing <br>4 years<br>| Next 12 <br>months<br>| Ensuing <br>4 years<br>|
| Canada |  |  |  |  |  |  |  |  |  |
| Gross Domestic Product (GDP), in U.S. $ billions | **$2022** | **(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 | **$23570** | **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 | **22002** | **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 | **10355** | **(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,** <br>**2025**<br>| December 31, <br>2024<br>|
| 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 $109as 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 <br>amount<sup>(1)</sup><br>| Fair value | Weighted <br>average <br>maturity (in <br>years)<sup>(2)</sup><br>|
| **Single name CDS**<sup>(3),(4)</sup>**– 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 <br>amount<sup>(1)</sup><br>| Fair value | Weighted <br>average <br>maturity (in <br>years)<sup>(2)</sup><br>|
| **Single name CDS**<sup>(3),(4)</sup>**– 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 |

---

<sup>(1)</sup> 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.

<sup>(2)</sup> The weighted average maturity of the CDS is weighted based on notional amounts.

<sup>(3)</sup> 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.

<sup>(4)</sup> 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 <br>amounts of <br>financial <br>instruments<sup>(1)</sup> | Related amounts not set off in the <br>Consolidated Statements of <br>Financial Position | Related amounts not set off in the <br>Consolidated Statements of <br>Financial Position | Net amounts <br>including <br>financing <br>entity<sup>(3)</sup> | Net amounts <br>excluding <br>financing <br>entity |
| **As at June 30, 2025** | Gross <br>amounts of <br>financial <br>instruments<sup>(1)</sup> | Amounts subject to <br>enforceable master <br>netting agreements <br>or similar <br>arrangements<br>| Financial and <br>cash collateral <br>pledged <br>(received)<sup>(2)</sup><br>| Net amounts <br>including <br>financing <br>entity<sup>(3)</sup> | Net amounts <br>excluding <br>financing <br>entity |
| **Financial assets** |  |  |  |  |  |
| Derivative assets | **$9421** | **$(6125)** | **$(2961)** | **$335** | **$335** |
| Securities lending | **1606** | **-** | **(1590)** | **16** | **-** |
| Reverse repurchase agreements | **481** | **-** | **(481)** | **-** | **-** |
| **Total financial assets** | **$11508** | **$(6125)** | **$(5032)** | **$351** | **$335** |
| **Financial liabilities** |  |  |  |  |  |
| Derivative liabilities | **(14248)** | **6125** | **8021** | **(102)** | **(33)** |
| Repurchase agreements | **(109)** | **-** | **105** | **(4)** | **-** |
| **Total financial liabilities** | **$(14357)** | **$6125** | **$8126** | **$(106)** | **$(33)** |
| As at December 31, 2024 | Gross <br>amounts of <br>financial <br>instruments<sup>(1)</sup> | Related amounts not set off in the <br>Consolidated Statements of <br>Financial Position | Related amounts not set off in the <br>Consolidated Statements of <br>Financial Position | Net amounts <br>including <br>financing <br>entity<sup>(3)</sup> | Net amounts <br>excluding <br>financing <br>entity |
| As at December 31, 2024 | Gross <br>amounts of <br>financial <br>instruments<sup>(1)</sup> | Amounts subject to <br>enforceable master <br>netting agreements <br>or similar <br>arrangements<br>| Financial and <br>cash collateral <br>pledged <br>(received)<sup>(2)</sup><br>| Net amounts <br>including <br>financing <br>entity<sup>(3)</sup> | Net amounts <br>excluding <br>financing <br>entity |
| **Financial assets** |  |  |  |  |  |
| Derivative assets | $9048 | $(6633) | $(1986) | $429 | $429 |
| Securities lending | 1021 | - | (1021) | - | - |
| Reverse repurchase agreements | 1594 | (569) | (1025) | - | - |
| **Total financial assets** | $11663 | $(7202) | $(4032) | $429 | $429 |
| **Financial liabilities** |  |  |  |  |  |
| Derivative liabilities | $(15026) | $6633 | $8305 | $(88) | $(15) |
| Repurchase agreements | (668) | 569 | 99 | - | - |
| **Total financial liabilities** | $(15694) | $7202 | $8404 | $(88) | $(15) |

---

<sup>(1)</sup> Financial assets and liabilities include accrued interest of $337 and $643, respectively (December 31, 2024 – $388 and $779, respectively).

<sup>(2)</sup> 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.

<sup>(3)</sup> 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 <br>amounts of <br>financial <br>instruments<br>| Amounts <br>subject to an <br>enforceable <br>netting <br>arrangement<br>| Net amounts <br>of financial <br>instruments<br>|
| Credit linked note | **$1345** | **$(1345)** | **$-** |
| Variable surplus note | **(1345)** | **1345** | **-** |
| As at December 31, 2024 | Gross <br>amounts of <br>financial <br>instruments<br>| Amounts <br>subject to an <br>enforceable <br>netting <br>arrangement<br>| Net amounts <br>of financial <br>instruments<br>|
| Credit linked note | $1392 | $(1392) | $- |
| Variable surplus note | (1392) | 1392 | - |

---

**Note 8 Long-Term Debt**

**(a)Carrying value of long-term debt instruments**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **As at** | **As at** |
|  | Issue date | Maturity date | Par value  | **June 30,** <br>**2025**<br>| December 31, <br>2024<br>|
| 3.050% Senior notes<sup>(1)</sup> | August 27, 2020 | August 27, 2060 | US$1,155 | **$1575** | $1659 |
| 5.375% Senior notes<sup>(1)</sup> | March 4, 2016 | March 4, 2046 | US$750 | **1012** | 1067 |
| 3.703% Senior notes<sup>(1)</sup> | March 16, 2022 | March 16, 2032 | US$750 | **1019** | 1074 |
| 2.396% Senior notes<sup>(1)</sup> | June 1, 2020 | June 1, 2027 | US$200 | **273** | 287 |
| 2.484% Senior notes<sup>(1)</sup> | May 19, 2020 | May 19, 2027 | US$500 | **681** | 717 |
| 3.527% Senior notes<sup>(1)</sup> | December 2, 2016 | December 2, 2026 | US$270 | **368** | 388 |
| 4.150% Senior notes<sup>(1)</sup> | March 4, 2016 | March 4, 2026 | US$1,000 | **1364** | 1437 |
| **Total**  |  |  |  | **$6292** | $6629 |

---

<sup>(1)</sup> 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** | **As at** |
|  | Issue date  | Earliest par <br>redemption date<br>| Maturity date | Par value  | **June 30,** <br>**2025**<br>| December 31, <br>2024<br>|
| 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<sup>(1)</sup> | May 12, 2020 | May 13, 2030 | May 13, 2035 | $1000 | **997** | 997 |
| 4.064%MFC Subordinated debentures | December 6, 2024 | December 6, 2029 | December 6, 2034 | $1000 | **995** | 995 |
| 4.275% MFC Subordinated notes<sup>(2)</sup> | 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 | $1100 | **1096** | 1095 |
| 5.409% MFC Subordinated debentures | March 10, 2023 | March 10, 2028 | March 10, 2033 | $1200 | **1197** | 1196 |
| 4.061% MFC Subordinated notes<sup>(1),(3)</sup> | February 24, 2017 | February 24, 2027 | February 24, 2032 | US$750 | **1022** | 1077 |
| 2.237% MFC Subordinated debentures<sup>(4)</sup> | May 12, 2020 | May 12, 2025 | May 12, 2030 | $1000 | **-** | 1000 |
| **Total** |  |  |  |  | **$6985** | $7532 |

---

<sup>(1)</sup> 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.

<sup>(2)</sup> 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.

<sup>(3)</sup> 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.

<sup>(4)</sup> The 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 <br>dividend / <br>distribution <br>rate<sup>(1)</sup> | Earliest redemption <br>date<sup>(2),(3)</sup> | Number of <br>shares (in <br>millions) | Face <br>amount | Net amount<sup>(4)</sup> as at | Net amount<sup>(4)</sup> as at |
| | Issue date  | Annual <br>dividend / <br>distribution <br>rate<sup>(1)</sup> | Earliest redemption <br>date<sup>(2),(3)</sup> | Number of <br>shares (in <br>millions) | Face <br>amount | **June 30,** <br>**2025**<br>| December 31, <br>2024<br>|
| **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<sup>(5),(6)</sup> | March 11, 2011 | 2.348% | June 19, 2026 | 7 | 163 | **160** | 160 |
| Series 4<sup>(7)</sup> | June 20, 2016 | floating | June 19, 2026 | 1 | 37 | **36** | 36 |
| Series 9<sup>(5),(6)</sup> | May 24, 2012 | 5.978% | September 19, 2027 | 10 | 250 | **244** | 244 |
| Series 11<sup>(5),(6)</sup> | December 4, 2012 | 6.159% | March 19, 2028 | 8 | 200 | **196** | 196 |
| Series 13<sup>(5),(6)</sup> | June 21, 2013 | 6.350% | September 19, 2028 | 8 | 200 | **196** | 196 |
| Series 15<sup>(5),(6)</sup> | February 25, 2014 | 5.775% | June 19, 2029 | 8 | 200 | **195** | 195 |
| Series 17<sup>(5),(6)</sup> | August 15, 2014 | 5.542% | December 19, 2029 | 14 | 350 | **343** | 343 |
| Series 19<sup>(5),(6),(8)</sup> | December 3, 2014 | 5.169% | March 19, 2030 | 10 | 250 | **246** | 246 |
| Series 25<sup>(5),(6)</sup> | February 20, 2018 | 5.942% | June 19, 2028 | 10 | 250 | **245** | 245 |
| **Other equity instruments** |  |  |  |  |  |  |  |
| **Limited recourse capital notes (LRCN)**<sup>(9)</sup> |  |  |  |  |  |  |  |
| Series 1<sup>(10)</sup> | February 19, 2021 | 3.375% | May 19, 2026 | n/a | 2000 | **1982** | 1982 |
| Series 2<sup>(10)</sup> | November 12, 2021 | 4.100% | February 19, 2027 | n/a | 1200 | **1189** | 1189 |
| Series 3<sup>(10)</sup> | June 16, 2022 | 7.117% | June 19, 2027 | n/a | 1000 | **990** | 990 |
| **Total** |  |  |  | <br>102<br>| $6750 | **$6660** | $6660 |

---

<sup>(1)</sup> 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.

<sup>(2)</sup> 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.

<sup>(3)</sup> 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.

<sup>(4)</sup> Net of after-tax issuance costs.

<sup>(5)</sup> 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%.

<sup>(6)</sup> 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.

<sup>(7)</sup> The floating dividend rate for the Class 1 Series 4 shares equals the three-month Government of Canada Treasury bill yield plus 1.41%.

<sup>(8)</sup> 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.

<sup>(9)</sup> 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.

<sup>(10)</sup> 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** <br>**months** <br>**endedJune** <br>**30, 2025**<br>| For the year <br>ended <br>December 31, <br>2024<br>|
| Balance, beginning of period | **1729** | 1806 |
| Repurchased for cancellation | **(27)** | (83) |
| Issued on exercise of stock options and deferred share units | **1** | 6 |
| **Balance, end of period** | **1703** | 1729 |

---

**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 endedJune 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 and $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,** | **three months ended June 30,** | **six months endedJune 30,** | **six months endedJune 30,** |
| For the | **2025** | 2024 | **2025** | 2024 |
| Weighted average number of common shares (in millions) | **1710** | 1793 | **1717** | 1799 |
| Dilutive stock-based awards<sup>(1)</sup> (in millions) | **5** | 6 | **5** | 6 |
| **Weighted average number of diluted common shares (in millions)** | **1715** | 1799 | **1722** | 1805 |

---

<sup>(1)</sup> 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, <br>U.S., and <br>Corporate and <br>Other<br>| 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** | **1898** | **(41)** | **1857** |
| **Revenue from non-service lines** | **4** | **(10)** | **(6)** |
| **Total other revenue** | **$1902** | **$(51)** | **$1851** |
| **Real estate management services included in net investment income** | **$-** | **$60** | **$60** |

---

---

| | | | |
|:---|:---|:---|:---|
| For the three months ended June 30, 2024 | Global WAM | Asia, Canada, <br>U.S., and <br>Corporate and <br>Other<br>| 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** | 1808 | (47) | 1761 |
| **Revenue from non-service lines** | 1 | 87 | 88 |
| **Total other revenue** | $1809 | $40 | $1849 |
| **Real estate management services included in net investment income** | $- | $68 | $68 |

---

---

| | | | |
|:---|:---|:---|:---|
| **For the six months endedJune 30, 2025** | Global WAM | Asia, Canada, <br>U.S., and <br>Corporate and <br>Other<br>| Total |
| Investment management and other related fees | **$1888** | **$(215)** | **$1673** |
| Transaction processing, administration, and service fees | **1545** | **145** | **1690** |
| Distribution fees and other | **436** | **(8)** | **428** |
| **Total included in other revenue** | **3869** | **(78)** | **3791** |
| **Revenue from non-service lines** | **8** | **38** | **46** |
| **Total other revenue** | **$3877** | **$(40)** | **$3837** |
| **Real estate management services included in net investment income** | **$-** | **$133** | **$133** |

---

---

| | | | |
|:---|:---|:---|:---|
| For the six months endedJune 30, 2024 | Global WAM | Asia, Canada, <br>U.S., and <br>Corporate and <br>Other<br>| Total |
| Investment management and other related fees | $1725 | $(242) | $1483 |
| Transaction processing, administration, and service fees | 1393 | 149 | 1542 |
| Distribution fees and other | 444 | 24 | 468 |
| **Total included in other revenue** | 3562 | (69) | 3493 |
| **Revenue from non-service lines** | (3) | 167 | 164 |
| **Total other revenue** | $3559 | $98 | $3657 |
| **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 | Pension plans | Retiree welfare plans | Retiree welfare plans |
| **For the three months ended June 30,** | **2025** | 2024 | **2025** | 2024 |
| Defined benefit current service cost<sup>(1)</sup> | **$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** <br>**Position**<br>| **$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) |

---

<sup>(1)</sup> 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 | Pension plans | Retiree welfare plans | Retiree welfare plans |
| **For the six months ended June 30,** | **2025** | 2024 | **2025** | 2024 |
| Defined benefit current service cost<sup>(1)</sup> | **$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** <br>**Position**<br>| **$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) |

---

<sup>(1)</sup> 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 endedJune 30, 2025** | MFC <br>(Guarantor)<br>| Subsidiaries <br>on a <br>combined <br>basis<br>| Consolidation <br>adjustments<br>| Total <br>consolidated <br>amounts<br>| MFLP |
| Total insurance service result | **$-** | **$1006** | **$-** | **$1006** | **$-** |
| Total investment result | **260** | **1548** | **(542)** | **1266** | **13** |
| Other revenue | **2** | **1850** | **(1)** | **1851** | **(13)** |
| Net income (loss) attributed to shareholders and other equity holders | **1789** | **1614** | **(1614)** | **1789** | **(8)** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| For the three months endedJune 30, 2024 | MFC <br>(Guarantor)<br>| Subsidiaries <br>on a <br>combined <br>basis<br>| Consolidation <br>adjustments<br>| Total <br>consolidated <br>amounts<br>| MFLP |
| Total insurance service result | $- | $1037 | $- | $1037 | $- |
| Total investment result | 183 | 691 | (361) | 513 | 13 |
| Other revenue | (4) | 1852 | 1 | 1849 | 3 |
| Net income (loss) attributed to shareholders and other equity holders | 1042 | 950 | (950) | 1042 | 4 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **For the six months endedJune 30, 2025** | MFC <br>(Guarantor)<br>| Subsidiaries <br>on a <br>combined <br>basis<br>| Consolidation <br>adjustments<br>| Total <br>consolidated <br>amounts<br>| MFLP |
| Total insurance service result | **$-** | **$2049** | **$-** | **$2049** | **$-** |
| Total investment result | **264** | **1184** | **(546)** | **902** | **25** |
| Other revenue | **3** | **3835** | **(1)** | **3837** | **(13)** |
| Net income (loss) attributed to shareholders and other equity holders | **2274** | **2196** | **(2196)** | **2274** | **(6)** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| For the six months endedJune 30, 2024 | MFC <br>(Guarantor)<br>| Subsidiaries <br>on a <br>combined <br>basis<br>| Consolidation <br>adjustments<br>| Total <br>consolidated <br>amounts<br>| MFLP |
| Total insurance service result | $- | $2015 | $- | $2015 | $- |
| Total investment result | 188 | 1036 | (363) | 861 | 27 |
| Other revenue | (7) | 3663 | 1 | 3657 | 9 |
| Net income (loss) attributed to shareholders and other equity holders | 1908 | 1901 | (1901) | 1908 | 13 |

---

**Condensed Consolidated Statements of Financial Position Information**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **As at June 30, 2025** | MFC <br>(Guarantor)<br>| Subsidiaries <br>on a <br>combined <br>basis<br>| Consolidation <br>adjustments<br>| Total <br>consolidated <br>amounts<br>| MFLP |
| Total invested assets | **$152** | **$438314** | **$-** | **$438466** | **$31** |
| Insurance contract assets | **-** | **183** | **-** | **183** | **-** |
| Reinsurance contract held assets | **-** | **61235** | **-** | **61235** | **-** |
| Total other assets | **99441** | **115063** | **(173477)** | **41027** | **977** |
| Segregated funds net assets  | **-** | **436558** | **-** | **436558** | **-** |
| Insurance contract liabilities, excluding those for account of <br>segregated fund holders<br>| **-** | **397487** | **-** | **397487** | **-** |
| Reinsurance contract held liabilities | **-** | **2942** | **-** | **2942** | **-** |
| Investment contract liabilities | **-** | **14071** | **-** | **14071** | **-** |
| Total other liabilities | **50513** | **127528** | **(102883)** | **75158** | **729** |
| Insurance contract liabilities for account of segregated fund holders | **-** | **123539** | **-** | **123539** | **-** |
| Investment contract liabilities for account of segregated fund holders | **-** | **313019** | **-** | **313019** | **-** |

---

Manulife Financial Corporation – Second Quarter 2025 102

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| As at December 31, 2024 | MFC <br>(Guarantor)<br>| Subsidiaries <br>on a <br>combined <br>basis<br>| Consolidation <br>adjustments<br>| Total <br>consolidated <br>amounts<br>| MFLP |
| Total invested assets | $126 | $442371 | $- | $442497 | $16 |
| Insurance contract assets | - | 102 | - | 102 | - |
| Reinsurance contract held assets | - | 59015 | - | 59015 | - |
| Total other assets | 65898 | 46450 | (71132) | 41216 | 995 |
| Segregated funds net assets  | - | 435988 | - | 435988 | - |
| Insurance contract liabilities, excluding those for account of <br>segregated fund holders<br>| - | 396401 | - | 396401 | - |
| Reinsurance contract held liabilities | - | 2669 | - | 2669 | - |
| Investment contract liabilities | - | 13498 | - | 13498 | - |
| Total other liabilities | 15052 | 63825 | (1575) | 77302 | 726 |
| Insurance contract liabilities for account of segregated fund holders | - | 126545 | - | 126545 | - |
| Investment contract liabilities for account of segregated fund holders | - | 309443 | - | 309443 | - |

---

**(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 endedJune 30, 2025** | Asia | Canada | U.S. | Global<br>WAM<br>| Corporate<br>and Other<br>| 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** | **1006** |
| Net investment income (loss) | **3521** | **1273** | **1776** | **(114)** | **340** | **6796** |
| **Insurance finance income (expenses)** |  |  |  |  |  |  |
| Life, health and property and casualty insurance | **(2792)** | **(1083)** | **(1953)** | **-** | **3** | **(5825)** |
| Annuities and pensions | **358** | **202** | **92** | **2** | **-** | **654** |
| **Total insurance finance income (expenses)** | **(2434)** | **(881)** | **(1861)** | **2** | **3** | **(5171)** |
| **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** | **1266** |
| Other revenue | **(92)** | **85** | **33** | **1902** | **(77)** | **1851** |
| Other expenses | **(66)** | **(172)** | **(46)** | **(1118)** | **(102)** | **(1504)** |
| Interest expenses | **(6)** | **(190)** | **(5)** | **(1)** | **(156)** | **(358)** |
| **Net income (loss) before income taxes** | **1092** | **526** | **31** | **575** | **37** | **2261** |
| Income tax (expenses) recoveries | **(149)** | **(115)** | **5** | **(93)** | **14** | **(338)** |
| **Net income (loss)** | **943** | **411** | **36** | **482** | **51** | **1923** |
| Less net income (loss) attributed to: |  |  |  |  |  |  |
| Non-controlling interests | **49** | **-** | **-** | **-** | **-** | **49** |
| Participating policyholders | **64** | **21** | **-** | **-** | **-** | **85** |
| **Net income (loss) attributed to shareholders and other** <br>**equity holders**<br>| **$830** | **$390** | **$36** | **$482** | **$51** | **$1789** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| For the three months endedJune 30, 2024 | Asia | Canada | U.S. | Global<br>WAM<br>| Corporate<br>and Other<br>| 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 | 1037 |
| Net investment income (loss) | 2424 | 685 | 1237 | (154) | 320 | 4512 |
| **Insurance finance income (expenses)** |  |  |  |  |  |  |
| Life, health and property and casualty insurance | (1257) | (632) | (1387) | - | 1 | (3275) |
| Annuities and pensions | (1196) | (71) | (81) | - | - | (1348) |
| **Total insurance finance income (expenses)** | (2453) | (703) | (1468) | - | 1 | (4623) |
| **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 | 1809 | (123) | 1849 |
| Other expenses | (83) | (170) | (31) | (1184) | (121) | (1589) |
| Interest expenses | (8) | (266) | (3) | (2) | (147) | (426) |
| **Net income (loss) before income taxes** | 763 | 141 | 156 | 383 | (59) | 1384 |
| Income tax (expenses) recoveries | (115) | (39) | (21) | (32) | (45) | (252) |
| **Net income (loss)** | 648 | 102 | 135 | 351 | (104) | 1132 |
| 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** <br>**equity holders**<br>| $582 | $79 | $135 | $350 | $(104) | $1042 |

---

Manulife Financial Corporation – Second Quarter 2025 104

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **For the six months endedJune 30, 2025** | Asia | Canada | U.S. | Global<br>WAM<br>| Corporate<br>and Other<br>| Total |
| **Insurance service result** |  |  |  |  |  |  |
| Life, health and property and casualty insurance | **$1211** | **$570** | **$141** | **$-** | **$(9)** | **$1913** |
| Annuities and pensions | **(26)** | **117** | **45** | **-** | **-** | **136** |
| **Total insurance service result** | **1185** | **687** | **186** | **-** | **(9)** | **2049** |
| Net investment income (loss) | **4604** | **2481** | **2482** | **(270)** | **445** | **9742** |
| **Insurance finance income (expenses)** |  |  |  |  |  |  |
| Life, health and property and casualty insurance | **(4116)** | **(1902)** | **(3652)** | **-** | **10** | **(9660)** |
| Annuities and pensions | **1171** | **57** | **(480)** | **2** | **-** | **750** |
| **Total insurance finance income (expenses)** | **(2945)** | **(1845)** | **(4132)** | **2** | **10** | **(8910)** |
| **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** | **1029** | **731** | **(840)** | **(480)** | **462** | **902** |
| Other revenue | **(91)** | **159** | **58** | **3877** | **(166)** | **3837** |
| Other expenses | **(148)** | **(342)** | **(96)** | **(2292)** | **(213)** | **(3091)** |
| Interest expenses | **(13)** | **(404)** | **(8)** | **(2)** | **(310)** | **(737)** |
| **Net income (loss) before income taxes** | **1962** | **831** | **(700)** | **1103** | **(236)** | **2960** |
| Income tax (expenses) recoveries | **(280)** | **(174)** | **167** | **(177)** | **50** | **(414)** |
| **Net income (loss)** | **1682** | **657** | **(533)** | **926** | **(186)** | **2546** |
| 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** <br>**equity holders**<br>| **$1454** | **$612** | **$(533)** | **$925** | **$(184)** | **$2274** |
| **Total assets** | **$216565** | **$162365** | **$245666** | **$310125** | **$42748** | **$977469** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| For the six months endedJune 30, 2024 | Asia | Canada | U.S. | Global<br>WAM<br>| Corporate<br>and Other<br>| Total |
| **Insurance service result** |  |  |  |  |  |  |
| Life, health and property and casualty insurance | $1073 | $511 | $225 | $- | $45 | $1854 |
| Annuities and pensions | (6) | 116 | 51 | - | - | 161 |
| **Total insurance service result** | 1067 | 627 | 276 | - | 45 | 2015 |
| Net investment income (loss) | 4652 | 1889 | 2142 | (331) | 653 | 9005 |
| **Insurance finance income (expenses)** |  |  |  |  |  |  |
| Life, health and property and casualty insurance | (2697) | (1687) | (2998) | - | 25 | (7357) |
| Annuities and pensions | (2324) | 254 | 346 | - | - | (1724) |
| **Total insurance finance income (expenses)** | (5021) | (1433) | (2652) | - | 25 | (9081) |
| **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) | 1178 |
| 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 | 3559 | (234) | 3657 |
| Other expenses | (139) | (330) | (49) | (2276) | (253) | (3047) |
| Interest expenses | (14) | (537) | (7) | (4) | (288) | (850) |
| **Net income (loss) before income taxes** | 1357 | 522 | 2 | 809 | (54) | 2636 |
| Income tax (expenses) recoveries | (265) | (122) | 25 | (93) | (77) | (532) |
| **Net income (loss)** | 1092 | 400 | 27 | 716 | (131) | 2104 |
| 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** <br>**equity holders**<br>| $945 | $352 | $27 | $715 | $(131) | $1908 |
| **Total assets** | $188217 | $153629 | $251973 | $282890 | $38564 | $915273 |

---

Manulife Financial Corporation – Second Quarter 2025 105

**(b)By Geographic Location**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **For the three months endedJune 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** | **1006** |
| Net investment income (loss) | **3612** | **1404** | **1772** | **8** | **6796** |
| **Insurance finance income (expenses)** |  |  |  |  |  |
| Life, health and property and casualty insurance | **(2791)** | **(1089)** | **(1945)** | **-** | **(5825)** |
| Annuities and pensions | **359** | **202** | **93** | **-** | **654** |
| **Total insurance finance income (expenses)** | **(2432)** | **(887)** | **(1852)** | **-** | **(5171)** |
| **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** | **$1266** |
| **Other revenue** | **$241** | **$554** | **$997** | **$59** | **$1851** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| For the three months endedJune 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 | 1037 |
| Net investment income (loss) | 2425 | 856 | 1214 | 17 | 4512 |
| **Insurance finance income (expenses)** |  |  |  |  |  |
| Life, health and property and casualty insurance | (1257) | (628) | (1390) | - | (3275) |
| Annuities and pensions | (1196) | (71) | (81) | - | (1348) |
| **Total insurance finance income (expenses)** | (2453) | (699) | (1471) | - | (4623) |
| **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) | $1849 |

---

Manulife Financial Corporation – Second Quarter 2025 106

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **For the six months endedJune 30, 2025** | Asia | Canada | U.S. | Other | Total |
| **Insurance service result** |  |  |  |  |  |
| Life, health and property and casualty insurance | **$1212** | **$565** | **$133** | **$3** | **$1913** |
| Annuities and pensions | **(26)** | **117** | **45** | **-** | **136** |
| **Total insurance service result** | **1186** | **682** | **178** | **3** | **2049** |
| Net investment income (loss) | **4665** | **2680** | **2373** | **24** | **9742** |
| **Insurance finance income (expenses)** |  |  |  |  |  |
| Life, health and property and casualty insurance | **(4115)** | **(1908)** | **(3637)** | **-** | **(9660)** |
| Annuities and pensions | **1172** | **57** | **(479)** | **-** | **750** |
| **Total insurance finance income (expenses)** | **(2943)** | **(1851)** | **(4116)** | **-** | **(8910)** |
| **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** | **$1147** | **$2000** | **$132** | **$3837** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| For the six months endedJune 30, 2024 | Asia | Canada | U.S. | Other | Total |
| **Insurance service result** |  |  |  |  |  |
| Life, health and property and casualty insurance | $1073 | $510 | $221 | $50 | $1854 |
| Annuities and pensions | (6) | 116 | 51 | - | 161 |
| **Total insurance service result** | 1067 | 626 | 272 | 50 | 2015 |
| Net investment income (loss) | 4681 | 2243 | 2063 | 18 | 9005 |
| **Insurance finance income (expenses)** |  |  |  |  |  |
| Life, health and property and casualty insurance | (2697) | (1683) | (2977) | - | (7357) |
| Annuities and pensions | (2324) | 254 | 346 | - | (1724) |
| **Total insurance finance income (expenses)** | (5021) | (1429) | (2631) | - | (9081) |
| **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 | - | 1178 |
| 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** | $1020 | $1075 | $1733 | $(171) | $3657 |

---

**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 <br>(Guarantor)<br>| JHUSA <br>(Issuer)<br>| Other <br>subsidiaries<br>| Consolidation <br>adjustments<br>| Consolidated <br>MFC<br>|
| **Assets** |  |  |  |  |  |
| Total invested assets | **$152** | **$103011** | **$335414** | **$(111)** | **$438466** |
| Investments in unconsolidated subsidiaries | **66474** | **9090** | **52971** | **(128535)** | **-** |
| Insurance contract assets | **-** | **-** | **220** | **(37)** | **183** |
| Reinsurance contract held assets | **-** | **49514** | **21807** | **(10086)** | **61235** |
| Other assets | **32967** | **11270** | **71654** | **(74864)** | **41027** |
| Segregated funds net assets | **-** | **214577** | **223350** | **(1369)** | **436558** |
| **Total assets** | **$99593** | **$387462** | **$705416** | **$(215002)** | **$977469** |
| **Liabilities and equity** |  |  |  |  |  |
| Insurance contract liabilities, excluding those for account of <br>segregated fund holders<br>| **$-** | **$144015** | **$264588** | **$(11116)** | **$397487** |
| Reinsurance contract held liabilities | **-** | **-** | **2942** | **-** | **2942** |
| Investment contract liabilities | **-** | **5759** | **8891** | **(579)** | **14071** |
| Other liabilities | **37883** | **6540** | **91526** | **(74068)** | **61881** |
| Long-term debt | **6292** | **-** | **-** | **-** | **6292** |
| Capital instruments | **6338** | **-** | **32847** | **(32200)** | **6985** |
| Insurance contract liabilities for account of segregated fund holders | **-** | **55229** | **68310** | **-** | **123539** |
| Investment contract liabilities for account of segregated fund holders | **-** | **159348** | **155040** | **(1369)** | **313019** |
| Shareholders and other equity holders' equity | **49080** | **16614** | **79056** | **(95670)** | **49080** |
| Participating policyholders' equity | **-** | **(43)** | **818** | **-** | **775** |
| Non-controlling interests | **-** | **-** | **1398** | **-** | **1398** |
| **Total liabilities and equity** | **$99593** | **$387462** | **$705416** | **$(215002)** | **$977469** |

---

Manulife Financial Corporation – Second Quarter 2025 108

**Condensed Consolidated Statement of Financial Position**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| As at December 31, 2024 | MFC <br>(Guarantor)<br>| JHUSA <br>(Issuer)<br>| Other <br>subsidiaries<br>| Consolidation <br>adjustments<br>| Consolidated <br>MFC<br>|
| **Assets** |  |  |  |  |  |
| Total invested assets | $126 | $112444 | $330044 | $(117) | $442497 |
| Investments in unconsolidated subsidiaries | 65350 | 9393 | 21510 | (96253) | - |
| Insurance contract assets | - | - | 177 | (75) | 102 |
| Reinsurance contract held assets | - | 46811 | 22440 | (10236) | 59015 |
| Other assets | 548 | 11182 | 34660 | (5174) | 41216 |
| Segregated funds net assets | - | 218909 | 218681 | (1602) | 435988 |
| **Total assets** | $66024 | $398739 | $627512 | $(113457) | $978818 |
| **Liabilities and equity** |  |  |  |  |  |
| Insurance contract liabilities, excluding those for account of <br>segregated fund holders<br>| $- | $148828 | $258007 | $(10434) | $396401 |
| Reinsurance contract held liabilities | - | - | 2669 | - | 2669 |
| Investment contract liabilities | - | 5260 | 8854 | (616) | 13498 |
| Other liabilities | 1539 | 8432 | 58333 | (5163) | 63141 |
| Long-term debt | 6629 | - | - | - | 6629 |
| Capital instruments | 6884 | - | 648 | - | 7532 |
| Insurance contract liabilities for account of segregated fund holders | - | 58137 | 68408 | - | 126545 |
| Investment contract liabilities for account of segregated fund holders | - | 160772 | 150273 | (1602) | 309443 |
| Shareholders and other equity holders' equity | 50972 | 17357 | 78285 | (95642) | 50972 |
| Participating policyholders' equity | - | (47) | 614 | - | 567 |
| Non-controlling interests | - | - | 1421 | - | 1421 |
| **Total liabilities and equity** | $66024 | $398739 | $627512 | $(113457) | $978818 |

---

**Condensed Consolidated Statement of Income**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **For the three months endedJune 30, 2025** | MFC <br>(Guarantor)<br>| JHUSA <br>(Issuer)<br>| Other <br>subsidiaries<br>| Consolidation <br>adjustments<br>| Consolidated <br>MFC<br>|
| **Insurance service result** |  |  |  |  |  |
| Insurance revenue | **$-** | **$2870** | **$4469** | **$(349)** | **$6990** |
| Insurance service expenses | **-** | **(2756)** | **(3347)** | **338** | **(5765)** |
| Net expenses from reinsurance contracts held | **-** | **(94)** | **(149)** | **24** | **(219)** |
| **Total insurance service result** | **-** | **20** | **973** | **13** | **1006** |
| **Investment result** |  |  |  |  |  |
| Net investment income (loss) | **260** | **1628** | **5352** | **(444)** | **6796** |
| Insurance / reinsurance finance income (expenses) | **-** | **(1475)** | **(3904)** | **9** | **(5370)** |
| Other investment result | **-** | **(33)** | **(103)** | **(24)** | **(160)** |
| **Total investment result** | **260** | **120** | **1345** | **(459)** | **1266** |
| Other revenue | **2** | **271** | **1695** | **(117)** | **1851** |
| Other expenses | **(5)** | **(295)** | **(1267)** | **63** | **(1504)** |
| Interest expenses | **(131)** | **(4)** | **(723)** | **500** | **(358)** |
| **Net income (loss) before income taxes** | **126** | **112** | **2023** | **-** | **2261** |
| Income tax (expenses) recoveries | **(16)** | **18** | **(340)** | **-** | **(338)** |
| **Net income (loss) after income taxes** | **110** | **130** | **1683** | **-** | **1923** |
| Equity in net income (loss) of unconsolidated subsidiaries | **1679** | **265** | **395** | **(2339)** | **-** |
| **Net income (loss)** | **$1789** | **$395** | **$2078** | **$(2339)** | **$1923** |
| **Net income (loss) attributed to:** |  |  |  |  |  |
| Non-controlling interests | **$-** | **$-** | **$49** | **$-** | **$49** |
| Participating policyholders | **-** | **-** | **78** | **7** | **85** |
| Shareholders and other equity holders | **1789** | **395** | **1951** | **(2346)** | **1789** |
|  | **$1789** | **$395** | **$2078** | **$(2339)** | **$1923** |

---

Manulife Financial Corporation – Second Quarter 2025 109

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| For the three months endedJune 30, 2024 | MFC <br>(Guarantor)<br>| JHUSA <br>(Issuer)<br>| Other <br>subsidiaries<br>| Consolidation <br>adjustments<br>| Consolidated <br>MFC<br>|
| **Insurance service result** |  |  |  |  |  |
| Insurance revenue | $- | $2696 | $4213 | $(394) | $6515 |
| Insurance service expenses | - | (2507) | (3162) | 397 | (5272) |
| Net expenses from reinsurance contracts held | - | (96) | (123) | 13 | (206) |
| **Total insurance service result** | - | 93 | 928 | 16 | 1037 |
| **Investment result** |  |  |  |  |  |
| Net investment income (loss) | 183 | 1033 | 3580 | (284) | 4512 |
| Insurance / reinsurance finance income (expenses) | - | (889) | (2971) | (9) | (3869) |
| Other investment result | - | 1 | (105) | (26) | (130) |
| **Total investment result** | 183 | 145 | 504 | (319) | 513 |
| Other revenue | (4) | 202 | 1761 | (110) | 1849 |
| Other expenses | (13) | (311) | (1331) | 66 | (1589) |
| Interest expenses | (125) | (8) | (640) | 347 | (426) |
| **Net income (loss) before income taxes** | 41 | 121 | 1222 | - | 1384 |
| Income tax (expenses) recoveries | 8 | 4 | (264) | - | (252) |
| **Net income (loss) after income taxes** | 49 | 125 | 958 | - | 1132 |
| Equity in net income (loss) of unconsolidated subsidiaries | 993 | 229 | 354 | (1576) | - |
| **Net income (loss)** | $1042 | $354 | $1312 | $(1576) | $1132 |
| **Net income (loss) attributed to:** |  |  |  |  |  |
| Non-controlling interests | $- | $- | $39 | $- | $39 |
| Participating policyholders | - | (2) | 51 | 2 | 51 |
| Shareholders and other equity holders | 1042 | 356 | 1222 | (1578) | 1042 |
|  | $1042 | $354 | $1312 | $(1576) | $1132 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **For the six months endedJune 30, 2025** | MFC <br>(Guarantor)<br>| JHUSA <br>(Issuer)<br>| Other <br>subsidiaries<br>| Consolidation <br>adjustments<br>| Consolidated <br>MFC<br>|
| **Insurance service result** |  |  |  |  |  |
| Insurance revenue | **$-** | **$5800** | **$8959** | **$(707)** | **$14052** |
| Insurance service expenses | **-** | **(5382)** | **(6733)** | **642** | **(11473)** |
| Net expenses from reinsurance contracts held | **-** | **(289)** | **(304)** | **63** | **(530)** |
| **Total insurance service result** | **-** | **129** | **1922** | **(2)** | **2049** |
| **Investment result** |  |  |  |  |  |
| Net investment income (loss) | **264** | **1968** | **7863** | **(353)** | **9742** |
| Insurance / reinsurance finance income (expenses) | **-** | **(3096)** | **(5494)** | **1** | **(8589)** |
| Other investment result | **-** | **36** | **(230)** | **(57)** | **(251)** |
| **Total investment result** | **264** | **(1092)** | **2139** | **(409)** | **902** |
| Other revenue | **3** | **529** | **3539** | **(234)** | **3837** |
| Other expenses | **(13)** | **(594)** | **(2623)** | **139** | **(3091)** |
| Interest expenses | **(265)** | **(32)** | **(946)** | **506** | **(737)** |
| **Net income (loss) before income taxes** | **(11)** | **(1060)** | **4031** | **-** | **2960** |
| Income tax (expenses) recoveries | **29** | **292** | **(735)** | **-** | **(414)** |
| **Net income (loss) after income taxes** | **18** | **(768)** | **3296** | **-** | **2546** |
| Equity in net income (loss) of unconsolidated subsidiaries | **2256** | **507** | **(261)** | **(2502)** | **-** |
| **Net income (loss)** | **$2274** | **$(261)** | **$3035** | **$(2502)** | **$2546** |
| **Net income (loss) attributed to:** |  |  |  |  |  |
| Non-controlling interests | **$-** | **$-** | **$115** | **$-** | **$115** |
| Participating policyholders | **-** | **(2)** | **150** | **9** | **157** |
| Shareholders and other equity holders | **2274** | **(259)** | **2770** | **(2511)** | **2274** |
|  | **$2274** | **$(261)** | **$3035** | **$(2502)** | **$2546** |

---

Manulife Financial Corporation – Second Quarter 2025 110

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| For the six months endedJune 30, 2024 | MFC <br>(Guarantor)<br>| JHUSA <br>(Issuer)<br>| Other <br>subsidiaries<br>| Consolidation <br>adjustments<br>| Consolidated <br>MFC<br>|
| **Insurance service result** |  |  |  |  |  |
| Insurance revenue | $- | $5410 | $8362 | $(760) | $13012 |
| Insurance service expenses | - | (5011) | (6305) | 772 | (10544) |
| Net expenses from reinsurance contracts held | - | (193) | (273) | 13 | (453) |
| **Total insurance service result** | - | 206 | 1784 | 25 | 2015 |
| **Investment result** |  |  |  |  |  |
| Net investment income (loss) | 188 | 1887 | 7093 | (163) | 9005 |
| Insurance / reinsurance finance income (expenses) | - | (1776) | (6127) | - | (7903) |
| Other investment result | - | (24) | (166) | (51) | (241) |
| **Total investment result** | 188 | 87 | 800 | (214) | 861 |
| Other revenue | (7) | 404 | 3497 | (237) | 3657 |
| Other expenses | (25) | (586) | (2574) | 138 | (3047) |
| Interest expenses | (240) | (4) | (894) | 288 | (850) |
| **Net income (loss) before income taxes** | (84) | 107 | 2613 | - | 2636 |
| Income tax (expenses) recoveries | 50 | 47 | (629) | - | (532) |
| **Net income (loss) after income taxes** | (34) | 154 | 1984 | - | 2104 |
| Equity in net income (loss) of unconsolidated subsidiaries | 1942 | 276 | 430 | (2648) | - |
| **Net income (loss)** | $1908 | $430 | $2414 | $(2648) | $2104 |
| **Net income (loss) attributed to:** |  |  |  |  |  |
| Non-controlling interests | $- | $- | $94 | $- | $94 |
| Participating policyholders | - | (2) | 102 | 2 | 102 |
| Shareholders and other equity holders | 1908 | 432 | 2218 | (2650) | 1908 |
|  | $1908 | $430 | $2414 | $(2648) | $2104 |

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Manulife Financial Corporation – Second Quarter 2025 111

**Consolidated Statement of Cash Flows**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **For the six months endedJune 30, 2025** | MFC<br>(Guarantor)<br>| JHUSA <br>(Issuer)<br>| Other <br>subsidiaries<br>| Consolidation<br>adjustments<br>| Consolidated <br>MFC<br>|
| **Operating activities** |  |  |  |  |  |
| Net income (loss) | **$2274** | **$(261)** | **$3035** | **$(2502)** | **$2546** |
| Adjustments: |  |  |  |  |  |
| Equity in net income of unconsolidated subsidiaries | **(2256)** | **(507)** | **261** | **2502** | **-** |
| Increase (decrease) in insurance contract net liabilities | **-** | **243** | **8477** | **-** | **8720** |
| Increase (decrease) in investment contract liabilities | **-** | **56** | **195** | **-** | **251** |
| (Increase) decrease in reinsurance contract assets, excluding reinsurance <br>transactions<br>| **-** | **(2)** | **(736)** | **-** | **(738)** |
| Amortization of (premium) discount on invested assets | **-** | **-** | **(176)** | **-** | **(176)** |
| CSM amortization | **-** | **(243)** | **(1009)** | **-** | **(1252)** |
| Other amortization | **6** | **73** | **334** | **-** | **413** |
| Net realized and unrealized (gains) losses and impairment on assets | **(7)** | **1410** | **(2932)** | **-** | **(1529)** |
| 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** | **7412** | **-** | **8134** |
| Dividends from unconsolidated subsidiaries | **-** | **214** | **(689)** | **475** | **-** |
| Changes in policy related and operating receivables and payables | **(324)** | **(831)** | **6984** | **-** | **5829** |
| **Cash provided by (used in) operating activities** | **(336)** | **117** | **13707** | **475** | **13963** |
| **Investing activities** |  |  |  |  |  |
| Purchases and mortgage advances | **-** | **(7715)** | **(59041)** | **-** | **(66756)** |
| Disposals and repayments | **-** | **6626** | **47276** | **-** | **53902** |
| Changes in investment broker net receivables and payables | **-** | **8** | **393** | **-** | **401** |
| Investment in common shares of subsidiaries | **(500)** | **-** | **-** | **500** | **-** |
| Notes receivable from parent | **-** | **-** | **(36389)** | **36389** | **-** |
| Notes receivable from subsidiaries | **(32233)** | **-** | **-** | **32233** | **-** |
| **Cash provided by (used in) investing activities** | **(32733)** | **(1081)** | **(47761)** | **69122** | **(12453)** |
| 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 | **(1000)** | **-** | **-** | **-** | **(1000)** |
| Secured borrowing from securitization transactions | **-** | **-** | **1047** | **-** | **1047** |
| Changes in deposits from Bank clients, net | **-** | **-** | **373** | **-** | **373** |
| Lease payments | **-** | **(1)** | **(55)** | **-** | **(56)** |
| Shareholders' dividends and other equity distributions | **(1658)** | **-** | **-** | **-** | **(1658)** |
| Common shares repurchased | **(1160)** | **-** | **-** | **-** | **(1160)** |
| 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 | **-** | **-** | **32233** | **(32233)** | **-** |
| Notes payable to subsidiaries | **36389** | **-** | **-** | **(36389)** | **-** |
| **Cash provided by (used in) financing activities** | **33103** | **688** | **33326** | **(69597)** | **(2480)** |
| **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** | **5041** | **19775** | **-** | **24942** |
| **Balance, end of period** | **152** | **4703** | **18303** | **-** | **23158** |
| **Cash and short-term securities** |  |  |  |  |  |
| **Beginning of period** |  |  |  |  |  |
| Gross cash and short-term securities | **126** | **5436** | **20227** | **-** | **25789** |
| Net payments in transit, included in other liabilities | **-** | **(395)** | **(452)** | **-** | **(847)** |
| **Net cash and short-term securities, beginning of period** | **126** | **5041** | **19775** | **-** | **24942** |
| **End of period** |  |  |  |  |  |
| Gross cash and short-term securities | **152** | **4703** | **18918** | **-** | **23773** |
| Net payments in transit, included in other liabilities | **-** | **-** | **(615)** | **-** | **(615)** |
| **Net cash and short-term securities, end of period** | **$152** | **$4703** | **$18303** | **$-** | **$23158** |
| **Supplemental disclosures on cash flow information:** |  |  |  |  |  |
| Interest received | **$274** | **$2093** | **$5209** | **$(597)** | **$6979** |
| Interest paid | **270** | **94** | **1048** | **(597)** | **815** |
| Income taxes paid (refund) | **84** | **2** | **438** | **-** | **524** |

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Manulife Financial Corporation – Second Quarter 2025 112

**Consolidated Statement of Cash Flows**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| For the six months endedJune 30, 2024 | MFC<br>(Guarantor)<br>| JHUSA <br>(Issuer)<br>| Other <br>subsidiaries<br>| Consolidation<br>adjustments<br>| Consolidated <br>MFC<br>|
| **Operating activities** |  |  |  |  |  |
| Net income (loss) | $1908 | $430 | $2414 | $(2648) | $2104 |
| Adjustments: |  |  |  |  |  |
| Equity in net income of unconsolidated subsidiaries | (1942) | (276) | (430) | 2648 | - |
| Increase (decrease) in insurance contract net liabilities | - | 209 | 2993 | - | 3202 |
| Increase (decrease) in investment contract liabilities | - | 23 | 218 | - | 241 |
| (Increase) decrease in reinsurance contract assets, excluding reinsurance <br>transactions<br>| - | (125) | (439) | - | (564) |
| Amortization of (premium) discount on invested assets | - | 22 | (164) | - | (142) |
| CSM amortization | - | (209) | (958) | - | (1167) |
| Other amortization | 5 | 73 | 224 | - | 302 |
| Net realized and unrealized (gains) losses and impairment on assets | (10) | 735 | 585 | - | 1310 |
| 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 | 4542 | - | 5423 |
| Dividends from unconsolidated subsidiaries | - | 189 | - | (189) | - |
| Changes in policy related and operating receivables and payables | (131) | 2294 | 4263 | - | 6426 |
| **Cash provided by (used in) operating activities** | (220) | 3453 | 8805 | (189) | 11849 |
| **Investing activities** |  |  |  |  |  |
| Purchases and mortgage advances | - | (9920) | (57088) | - | (67008) |
| Disposals and repayments | - | 7094 | 49915 | - | 57009 |
| 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 | (1607) | - | - | 1607 | - |
| Capital contribution to unconsolidated subsidiaries  | - | (1) | - | 1 | - |
| Notes receivable from parent | - | - | (35076) | 35076 | - |
| Notes receivable from subsidiaries | (32475) | - | - | 32475 | - |
| **Cash provided by (used in) investing activities** | (34082) | (2752) | (42358) | 69159 | (10033) |
| **Financing activities** |  |  |  |  |  |
| Change in repurchase agreements and securities sold but not yet purchased | - | - | 233 | - | 233 |
| Issue of capital instruments, net | 1596 | - | - | - | 1596 |
| 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 | (1594) | - | - | - | (1594) |
| Common shares repurchased | (855) | - | - | - | (855) |
| Common shares issued, net | 82 | - | 1607 | (1607) | 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 | - | - | 32475 | (32475) | - |
| Notes payable to subsidiaries | 35076 | - | - | (35076) | - |
| **Cash provided by (used in) financing activities** | 34305 | (610) | 34695 | (68970) | (580) |
| **Cash and short-term securities** |  |  |  |  |  |
| Increase (decrease) during the period | 3 | 91 | 1142 | - | 1236 |
| Effect of foreign exchange rate changes on cash and short-term securities | 2 | 151 | 188 | - | 341 |
| Balance, beginning of period | 86 | 4004 | 15794 | - | 19884 |
| **Balance, end of period** | 91 | 4246 | 17124 | - | 21461 |
| **Cash and short-term securities** |  |  |  |  |  |
| **Beginning of period** |  |  |  |  |  |
| Gross cash and short-term securities | 86 | 4329 | 15923 | - | 20338 |
| Net payments in transit, included in other liabilities | - | (325) | (129) | - | (454) |
| **Net cash and short-term securities, beginning of period** | 86 | 4004 | 15794 | - | 19884 |
| **End of period** |  |  |  |  |  |
| Gross cash and short-term securities | 91 | 4583 | 17424 | - | 22098 |
| Net payments in transit, included in other liabilities | - | (337) | (300) | - | (637) |
| **Net cash and short-term securities, end of period** | $91 | $4246 | $17124 | $- | $21461 |
| **Supplemental disclosures on cash flow information:** |  |  |  |  |  |
| Interest received | $179 | $1976 | $5076 | $(418) | $6813 |
| Interest paid | 217 | 43 | 976 | (418) | 818 |
| Income taxes paid (refund) | 5 | 6 | 702 | - | 713 |

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Manulife Financial Corporation – Second Quarter 2025 113

**SHAREHOLDER INFORMATION**<br>

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

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**Rating**<br>

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

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**Common Stock Trading Data**<br>

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| The following values are the high, low and close <br>prices, including the average daily trading volume for <br>Manulife Financial Corporation's common stock on <br>the Canadian exchanges, the U.S. exchanges, The <br>Stock Exchange of Hong Kong and the Philippine <br>Stock Exchange for the second quarter. The common <br>stock symbol is **MFC** on all exchanges except Hong <br>Kong where it is **945**. | As at June 30, 2025, there were 1,703 million common shares <br>outstanding.  | As at June 30, 2025, there were 1,703 million common shares <br>outstanding.  | As at June 30, 2025, there were 1,703 million common shares <br>outstanding.  | As at June 30, 2025, there were 1,703 million common shares <br>outstanding.  | As at June 30, 2025, there were 1,703 million common shares <br>outstanding.  |
| The following values are the high, low and close <br>prices, including the average daily trading volume for <br>Manulife Financial Corporation's common stock on <br>the Canadian exchanges, the U.S. exchanges, The <br>Stock Exchange of Hong Kong and the Philippine <br>Stock Exchange for the second quarter. The common <br>stock symbol is **MFC** on all exchanges except Hong <br>Kong where it is **945**. | April 1 – <br>June 30, 2025 | **Canada** | **U.S.** | **Hong Kong** | **Philippines** |
| The following values are the high, low and close <br>prices, including the average daily trading volume for <br>Manulife Financial Corporation's common stock on <br>the Canadian exchanges, the U.S. exchanges, The <br>Stock Exchange of Hong Kong and the Philippine <br>Stock Exchange for the second quarter. The common <br>stock symbol is **MFC** on all exchanges except Hong <br>Kong where it is **945**. | April 1 – <br>June 30, 2025 | Canadian $ | United States $ | Hong Kong $ | Philippine<br>Pesos<br>|
| The following values are the high, low and close <br>prices, including the average daily trading volume for <br>Manulife Financial Corporation's common stock on <br>the Canadian exchanges, the U.S. exchanges, The <br>Stock Exchange of Hong Kong and the Philippine <br>Stock Exchange for the second quarter. The common <br>stock symbol is **MFC** on all exchanges except Hong <br>Kong where it is **945**. | High | $46.35 | $32.44 | $253.20 | P 1,880 |
| The following values are the high, low and close <br>prices, including the average daily trading volume for <br>Manulife Financial Corporation's common stock on <br>the Canadian exchanges, the U.S. exchanges, The <br>Stock Exchange of Hong Kong and the Philippine <br>Stock Exchange for the second quarter. The common <br>stock symbol is **MFC** on all exchanges except Hong <br>Kong where it is **945**. | Low | $38.18 | $26.93 | $204.20 | P 1,506 |
| The following values are the high, low and close <br>prices, including the average daily trading volume for <br>Manulife Financial Corporation's common stock on <br>the Canadian exchanges, the U.S. exchanges, The <br>Stock Exchange of Hong Kong and the Philippine <br>Stock Exchange for the second quarter. The common <br>stock symbol is **MFC** on all exchanges except Hong <br>Kong where it is **945**. | Close | $43.54 | $31.96 | $251.00 | P 1,652 |
| The following values are the high, low and close <br>prices, including the average daily trading volume for <br>Manulife Financial Corporation's common stock on <br>the Canadian exchanges, the U.S. exchanges, The <br>Stock Exchange of Hong Kong and the Philippine <br>Stock Exchange for the second quarter. The common <br>stock symbol is **MFC** on all exchanges except Hong <br>Kong where it is **945**. | Average Daily <br>Volume (000)<br>| 11688 | 2476 | 14 | 0.2 |

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Manulife Financial Corporation – Second Quarter 2025 114

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the information when you want, no more waiting for the

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• Annual Report and Proxy Circular

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This information is also available for viewing or

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## Exhibit 99.2

**Exhibit 99.2**

**Form 52-109F2**

**Certification of Interim Filings** 

**Full Certificate**

I, Phil Witherington, President and Chief Executive Officer of Manulife Financial Corporation, certify the following:

1.*Review:* I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Manulife Financial

Corporation (the "issuer") for the interim period ended June 30, 2025.

2.*No misrepresentations*: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any

untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a

statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the

interim filings.

3.*Fair presentation*: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the

other financial information included in the interim filings fairly present in all material respects the financial condition, financial

performance and cash flows of the issuer, as of the date of and for the period presented in the interim filings.

4.*Responsibility*: The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls

and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument

52-109 *Certification of Disclosure in Issuer's Annual and Interim Filings*, for the issuer.

5.*Design*: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have,

as at the end of the period covered by the interim filings

a.designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

i.material information relating to the issuer is made known to us by others, particularly during the period in which the

interim filings are being prepared; and

ii.information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or

submitted by it under securities legislation is recorded, processed, summarized and reported within the time

periods specified in securities legislation; and

b.designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the

reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the

issuer's GAAP.

5.1 *Control framework*: The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is

Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway

Commission.

5.2N/A

5.3N/A

6.*Reporting changes in ICFR*: The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during

the period beginning on April 1, 2025 and ended on June 30, 2025 that has materially affected, or is reasonably likely to

materially affect, the issuer's ICFR.

Date: August 6, 2025

---

| |
|:---|
| */s/ Phil Witherington* |
| Phil Witherington |
| President and Chief Executive Officer |

---

## Exhibit 99.3

**Exhibit 99.3**

**Form 52-109F2**

**Certification of Interim Filings** 

**Full Certificate**

I, Colin Simpson, Chief Financial Officer of Manulife Financial Corporation, certify the following:

1.*Review:* I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Manulife Financial

Corporation (the "issuer") for the interim period ended June 30, 2025.

2.*No misrepresentations*: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any

untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a

statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the

interim filings.

3.*Fair presentation*: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the

other financial information included in the interim filings fairly present in all material respects the financial condition, financial

performance and cash flows of the issuer, as of the date of and for the period presented in the interim filings.

4.*Responsibility*: The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls

and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument

52-109 *Certification of Disclosure in Issuer's Annual and Interim Filings*, for the issuer.

5.*Design*: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have,

as at the end of the period covered by the interim filings

a.designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

i.material information relating to the issuer is made known to us by others, particularly during the period in which the

interim filings are being prepared; and

ii.information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or

submitted by it under securities legislation is recorded, processed, summarized and reported within the time

periods specified in securities legislation; and

b.designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the

reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the

issuer's GAAP.

5.1 *Control framework*: The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is

Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway

Commission.

5.2N/A

5.3N/A

6.*Reporting changes in ICFR*: The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during

the period beginning on April 1, 2025 and ended on June 30, 2025 that has materially affected, or is reasonably likely to

materially affect, the issuer's ICFR.

Date: August 6, 2025

---

| |
|:---|
| */s/ Colin Simpson* |
| Colin Simpson |
| Chief Financial Officer |

---