# EDGAR Filing Document

**Accession Number:** 0001086888
**File Stem:** 0001086888-26-000044
**Filing Date:** 2026-5
**Character Count:** 437977
**Document Hash:** bbbc1d3fb191573585f23edf60161a4b
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001086888-26-000044.hdr.sgml**: 20260513

**ACCESSION NUMBER**: 0001086888-26-000044

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 8

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260513

**DATE AS OF CHANGE**: 20260513

**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:** 26974497

**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 May 2026**

**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 March 31, 2026 included in the registrant's 2026 First 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. 333-290499). 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 | First Quarter Report to Shareholders |
| 99.2 | Certification Chief Executive Officer |
| 99.3 | Certification 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: May 13, 2026 |  |  |

---

## Exhibit 99.1

![ar26sidepanelcovera.jpg](ar26sidepanelcovera.jpg)

![manulife_rgba.jpg](manulife_rgba.jpg)

## First Quarter
**Report to**

**Shareholders**

Three months ended

**March 31, 2026**

**Manulife Financial Corporation**

<sup>1</sup> Core earnings is non-GAAP financial measure. For more information on non-GAAP and other financial measures, see "Non-GAAP and other financial

measures" in our 1Q26 Management's Discussion and Analysis ("1Q26 MD&A").

<sup>2</sup> Percentage growth/declines in core earnings, diluted core earnings per common share ("core EPS"), diluted earnings (loss) per share ("EPS") and new business

contractual service margin net of NCI ("new business CSM") are stated on a constant exchange rate ("CER") basis and are non-GAAP ratios.

<sup>3</sup> Core EPS, core ROE, core EBITDA margin and expense efficiency ratio are non-GAAP ratios.

<sup>4</sup> Life Insurance Capital Adequacy Test ("LICAT") ratio of The Manufacturers Life Insurance Company ("MLI") as at March 31, 2026. LICAT ratio is disclosed under

the Office of the Superintendent of Financial Institutions ("OSFI's") Life Insurance Capital Adequacy Test Public Disclosure Requirements guideline.

<sup>5</sup> For more information on annualized premium equivalent ("APE") sales, new business value ("NBV") and net flows, see "Non-GAAP and other financial

measures" in our 1Q26 MD&A. Percentage growth/decline in APE sales, NBV and net flows are stated on a constant exchange rate basis.

<sup>6</sup>Legal & General Investment Management Limited and Legal and General Assurance Society, collectively referred to as "L&G".

<sup>7</sup>See "Caution regarding forward-looking statements".

<sup>8</sup>Under IFRS 17.

Manulife Financial Corporation – First Quarter 2026 1

**Manulife Financial Corporation ("Manulife" or the "Company") reported its first quarter results for the** 

**period ended March 31, 2026, delivering double-digit core EPS and new business CSM growth year over** 

**year.**

**Key highlights for the first quarter of 2026 ("1Q26") include:**

• Core earnings<sup>1</sup> of $1.8 billion, up 8% on a CER basis<sup>2</sup> compared with the first quarter of 2025 ("1Q25")

• Net income attributed to shareholders of $1.1 billion, up $0.7 billion from 1Q25

• Core EPS<sup>3</sup> of $1.06, up 11%<sup>2</sup> from 1Q25. EPS of $0.65, up 178%<sup>2</sup> from 1Q25

• Core ROE<sup>3</sup> of 16.5% and ROE of 10.1%

• LICAT ratio<sup>4</sup> of 136%

• APE sales up 7%<sup>5</sup>, new business CSM up 16%<sup>2</sup> and new business value ("NBV") up 7%<sup>5</sup> from 1Q25

• Global Wealth and Asset Management ("Global WAM") net outflows<sup>5</sup> of $4.4 billion, compared with $0.5 billion of net

inflows in 1Q25

"We delivered a solid first quarter, executing our strategy and demonstrating the strength of our diversified portfolio. We

generated double-digit growth in core EPS, and new business momentum continued to build, driving double-digit growth in

new business CSM across all three insurance segments, despite macroeconomic uncertainty.

"Asia achieved another strong quarter, with 22% growth in core earnings and 15% growth in new business value, reflecting

robust contributions from key markets in the region. In Global WAM, core EBITDA margin<sup>3</sup> improved year over year,

notwithstanding the impact of the eMPF transition, and Manulife \| Comvest contributed positively to margin, core earnings and

net inflows.

"We made sustained progress against our strategic priorities — expanding our health proposition with new partnerships in Asia

and Canada, advancing Global WAM through our partnership with L&G<sup>6</sup>, and further differentiating our U.S. product offerings.

We scaled AI delivery across our global footprint to enhance distributor experience and improve productivity and efficiency. We

remain well positioned to deliver our targets and capture growth, generating sustainable value for shareholders."<sup>7</sup>

***— Phil Witherington, Manulife President & Chief Executive Officer***

"Our balance sheet and financial performance demonstrated resilience during a volatile quarter. Excess capital remained

strong, our financial leverage ratio improved, and book value per common share increased to an all-time high<sup>8</sup>. We continued

to deploy capital in a disciplined manner, returning $1.2 billion to shareholders through dividends and share buybacks, and on

the acquisition of Schroders Indonesia. Core ROE was 16.5% for the quarter, an increase of 90 basis points compared with

1Q25, and our expense efficiency ratio of 46%<sup>3</sup> remained in-line year over year, while continuing strategic investments in AI

and reflecting the impact of the Comvest acquisition in Global WAM."

***— 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>Adjusted book value per common share and financial leverage ratio are non-GAAP ratios.

<sup>3</sup>For more information on gross flows and average asset under management and administration ("average AUMA"), see "Non-GAAP and other financial

measures" in our 1Q26 MD&A. Percentage growth/decline in gross flows and average AUMA are stated on a constant exchange rate basis.

Manulife Financial Corporation – First Quarter 2026 2

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

---

| | | | |
|:---|:---|:---|:---|
| ($ millions, unless otherwise stated) | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** |
| ($ millions, unless otherwise stated) | **1Q26** | 1Q25 | Change |
| Net income attributed to shareholders<sup>1</sup> | **$1147** | $485 | 149% |
| Core earnings | **$1836** | $1767 | 8% |
| EPS ($) | **$0.65** | $0.25 | 178% |
| Core EPS ($) | **$1.06** | $0.99 | 11% |
| ROE | **10.1%** | 3.9% | 6.2 pps |
| Core ROE | **16.5%** | 15.6% | 0.9 pps |
| Book value per common share ($) | **$26.30** | $25.88 | 2% |
| Adjusted BV per common share ($)<sup>2</sup> | **$39.01** | $36.66 | 6% |
| Financial leverage ratio (%)<sup>2</sup> | **22.5%** | 23.9% | (1.4) pps |
| APE sales | **$2821** | $2689 | 7% |
| New business CSM | **$1019** | $907 | 16% |
| NBV | **$944** | $907 | 7% |
| Global WAM net flows ($ billions) | **$(4.4)** | $0.5 | -% |

---

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

---

| | | | |
|:---|:---|:---|:---|
| ($ millions, unless otherwise stated) | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** |
| ($ millions, unless otherwise stated) | **1Q26** | 1Q25 | Change |
| **Asia (US$)** |  |  |  |
| Net income attributed to shareholders | **$433** | $435 | 2% |
| Core earnings | **598** | 492 | 22% |
| APE sales | **1599** | 1412 | 11% |
| New business CSM | **585** | 498 | 15% |
| NBV | **533** | 457 | 15% |
| **Canada** |  |  |  |
| Net income attributed to shareholders | **$238** | $222 | 7% |
| Core earnings | **352** | 374 | (6)% |
| APE sales | **416** | 491 | (15)% |
| New business CSM | **103** | 91 | 13% |
| NBV | **152** | 180 | (16)% |
| **U.S. (US$)** |  |  |  |
| Net income attributed to shareholders | **$101** | $(397) | -% |
| Core earnings | **241** | 251 | (4)% |
| APE sales | **155** | 120 | 29% |
| New business CSM | **83** | 70 | 19% |
| NBV | **44** | 48 | (8)% |
| **Global WAM** |  |  |  |
| Net income attributed to shareholders  | **$403** | $443 | (5)% |
| Core earnings | **448** | 454 | 2% |
| Gross flows ($ billions)<sup>3</sup> | **56.0** | 50.3 | 15% |
| Average AUMA ($ billions)<sup>3</sup> | **1118** | 1041 | 11% |
| Core EBITDA margin (%) | **29.0%** | 28.4% | 60 bps |

---

<sup>1</sup> Based on AUM as of February 2026.

<sup>2</sup>Legal & General Investment Management Limited and Legal and General Assurance Society, collectively referred to as "L&G".

<sup>3</sup>Akka provides a secure and scalable software foundation to build trusted AI-powered business applications.

<sup>4</sup>Adaptive ML provides a reinforcement-learning-powered engine to fine-tune, evaluate, and deploy open-source small language models (SLMs) for enterprise

applications.

<sup>5</sup>The Shield MCD test is intended to detect 10 cancers with a single blood draw, and is for export use only outside of the United States.

Manulife Financial Corporation – First Quarter 2026 3

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

**We are executing to expand our diversified portfolio and further strengthen distribution capabilities and product** 

**leadership**

In Asia, we received recognition as Asia's Best Insurance Provider for Wealth Management at the 2026 Euromoney Private

Banking Awards, a leading benchmark in the private banking and wealth management industry. This acknowledgement reflects

our strong growth momentum, innovative product suite for high-net-worth ("HNW") customer segments, value-added service,

international capabilities, and trusted relationships with our distribution partners across all HNW channels.

In Global WAM, we completed the acquisition of PT Schroder Investment Management Indonesia ("Schroders Indonesia") with

$3.5 billion of assets under management ("AUM") as of March 31, 2026. The acquisition strengthens our position as the largest

asset manager in Indonesia<sup>1</sup> and enables us to deliver enhanced value to our clients and stakeholders by leveraging the firm's

local expertise and client relationships.

In addition, we entered into a strategic partnership with L&G<sup>2</sup> to enhance our distribution, investment management, and

product development capabilities. The partnership is intended to combine our global asset management expertise and

distribution platform with L&G's strengths as a global asset manager and distribution capabilities, especially across Europe,

bringing together complementary capabilities to expand access to differentiated investment solutions across institutional,

retirement, and retail channels.

In the U.S., we further differentiated our product portfolio through enhancements to our indexed and hybrid indexed universal

life offerings, better positioning us to address evolving income-protection and wealth-accumulation needs and supporting our

growth strategy. Furthermore, we reinforced our industry-leading large-case underwriting capabilities by increasing auto-bind

limits through reinsurer support, simplifying underwriting and reducing friction for complex submissions.

**We are deploying AI globally to enhance distributor experience, drive efficiency, and deliver value**

We accelerated our momentum across our enterprise AI platform, establishing production-ready environments and enabling

initial scalable use cases, while leveraging new strategic partnerships with Akka<sup>3</sup> and Adaptive ML<sup>4</sup>. In addition, our developers

across the organization continued to adopt assisted and autonomous AI capabilities, increasing their productivity by 30% while

enabling reinvestment to support business growth and develop new capabilities to serve our customers. Together, we expect

these advancements will enhance our ability to deploy AI at scale with speed, consistency, and in alignment with our

Responsible AI Principles.

Building on the roll out of agent and advisor AI tools in a number of our Asia markets in 2025, we launched our distributor AI

tool in Vietnam to support faster access to product information, premium calculations and simplified illustrations for customers.

In Japan, we also enhanced our AI tool to provide a unified, always-available entry point to information about our independent

agents, including their affiliations, branch details, and product license eligibility, enabling us to provide better and faster support

to these agents.

In Global WAM, we introduced an AI-powered sales platform in U.S. Retail to better integrate data, enabling more personalized

advisor conversations and smarter sales deployment. This platform allows sales teams to prioritize the most promising

opportunities, driving an approximately 40% increase in meaningful advisor interactions and supporting higher flows.

In the U.S., we continued to realize benefits from scaling GenAI investments in underwriting through the expansion of our

Quick Quote support tool, enabling us to automate nearly half of preliminary assessments, which accelerated average

turnaround time from days to minutes and enabled underwriters to focus on more complex cases.

In Canada, we enhanced online claims processing for our Affinity health & dental business through AI-driven document

processing for the majority of manually processed claims, which improved processing speed and accelerated payments to

customers.

**We are advancing our health, wealth and longevity strategy while establishing new strategic partnerships** 

In Asia, we established an exclusive partnership with Guardant Health to offer the Shield<sup>TM</sup> Multi-Cancer Detection test ("Shield

MCD test")<sup>5</sup> to eligible customers in Hong Kong, Singapore, and the Philippines. The collaboration makes us the first insurer in

Asia to offer the Shield MCD test, broadening access to early cancer detection and advancing our commitment to improving

customer health outcomes and longevity.

In Canada, we partnered with Osara Health<sup>®</sup>, a global provider of evidence-based cancer support programs to pilot the Cancer

Coach™ program and offer eligible Group Benefits members structured and personalized support for navigating the daily

challenges that accompany a cancer diagnosis, treatment, and recovery.

We also advanced Manulife's commitment to longevity through a partnership with the National Institute on Ageing, supporting

the release of the Ageing in Canada Survey, one of Canada's most comprehensive annual snapshots of aging, and building on

our commitment to health, wealth and financial wellbeing.

<sup>1</sup> See section A1 "Profitability" in our 1Q26 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 the Reinsurance Group of America, Incorporated ("RGA U.S. Reinsurance Transaction") closed January 1, 2025.

<sup>3</sup>For more information on new business value margin ("NBV margin"), see "Non-GAAP and other financial measures" in our 1Q26 MD&A.

Manulife Financial Corporation – First Quarter 2026 4

In the U.S., we launched John Hancock Vitality PRO, a distributor-facing engagement platform designed to support the

promotion of John Hancock Vitality and to enhance producer loyalty. Early adoption continues to build, reinforcing engagement

in John Hancock Vitality and our mission to help customers live longer, healthier, better lives.

**<u>Continued business growth drove core earnings higher</u>**<sup>1</sup>

**Core earnings of $1.8 billion in 1Q26, up 8% from 1Q25**

The increase in core earnings reflected strong business growth in Asia and Global WAM, the net positive impact of 2025

updates to actuarial methods and assumptions, and a net improvement in insurance experience, partially offset by lower

investment spreads in the U.S. and the impact of the eMPF transition in Hong Kong.

• Asia core earnings increased 22%, reflecting continued business growth and the net positive impact of 2025 updates to

actuarial methods and assumptions, partially offset by less favourable insurance experience.

• Global WAM core earnings increased 2%, driven by higher net fee income from favourable market impacts over the past

12 months, contribution from the Manulife \| Comvest business, and continued expense discipline, partially offset by the

impact of the eMPF transition in Hong Kong and lower performance fees.

• Canada core earnings decreased 6%, reflecting unfavourable insurance experience in Group Insurance in 1Q26,

compared with favourable experience in 1Q25. The variance in insurance experience was largely driven by higher long-

term disability claims, along with higher expenses to support the growing business and transformational investment to

elevate customer experience in Group Insurance. This was partially offset by business growth in the segment, the net

positive impact of 2025 updates to actuarial methods and assumptions, and a lower charge in the expected credit loss

provision.

• U.S. core earnings decreased 4%, primarily driven by lower investment spreads, partially offset by favourable net

insurance experience in 1Q26 compared with unfavourable experience in 1Q25.

• Corporate and Other core earnings improved by $12 million, reflecting the non-recurrence of the 1Q25 provision for the

California wildfires in our P&C reinsurance business, partially offset by lower investment income and higher expenses

from continued strategic investments in transformational efforts, including AI-focused initiatives.

**Net Income attributed to shareholders of $1.1 billion in 1Q26, $0.7 billion higher compared with 1Q25**

The $0.7 billion increase in net income was primarily driven by a smaller net charge related to market experience and core

earnings growth. The net charge from market experience in 1Q26 reflected lower-than-expected returns on public equity and

lower-than-expected returns on alternative long-duration assets, mainly related to real estate, timber, and private equity

investments. The market experience in 1Q25 included a $0.7 billion realized loss related to the RGA U.S. Reinsurance

Transaction from the sale of debt instruments, which was offset by an associated change in Other Comprehensive Income with

a net neutral impact to book value.<sup>2</sup>

**<u>Insurance new business growth momentum continued, with a double-digit increase in new business CSM across all</u>**

**<u>segments</u>**

**APE sales, new business CSM and NBV increased 7%, 16%, and 7%, respectively, reflecting the strength of our** 

**diversified business portfolio** 

• Asia delivered strong growth in APE sales, new business CSM and NBV, with a year-over-year increase of 11%, 15% and

15%, respectively, driven by higher sales volumes and a more favourable business mix, reflecting growth in Hong Kong,

Japan and Singapore across all three new business metrics. NBV margin improved modestly to 38.2%.<sup>3</sup>

• Canada APE sales and NBV decreased 15% and 16%, respectively, driven by lower Group Insurance sales, partially

offset by higher Individual Insurance sales. New business CSM increased 13%, reflecting the growth in Individual

Insurance from higher participating life insurance sales.

• In the U.S., APE sales and new business CSM increased 29% and 19%, respectively, reflecting increased demand for our

accumulation insurance products supported by recent product enhancements. NBV decreased 8%, primarily driven by

product mix, partially offset by higher sales volumes.

**Global WAM net outflows of $4.4 billion in 1Q26, compared with net inflows of $0.5 billion in 1Q25**

• Retirement net outflows were $2.8 billion in 1Q26 compared with net outflows of $2.6 billion in 1Q25, driven by higher

member withdrawals reflecting higher account balances from market growth and higher retirement plan redemptions in the

U.S., partially offset by lower retirement plan redemptions in Canada.

• Retail net outflows were $5.8 billion in 1Q26 compared with net inflows of $0.5 billion in 1Q25, primarily driven by higher

net outflows in active mutual funds through third-party intermediaries in North America, including a few large model

redemptions in the U.S.

• Institutional Asset Management net inflows were $4.2 billion in 1Q26 compared with net inflows of $2.6 billion in 1Q25,

driven by net flows from the Manulife \| Comvest business, and higher net sales from money market mandates in mainland

<sup>1</sup> Net of non-controlling interests ("NCI").

<sup>2</sup>Percentage growth / decline in our CSM net of NCI balance from organic CSM movement is stated on a constant exchange rate basis and is a non-GAAP ratio.

This percentage is calculated as the annualized year-to-date change in organic CSM net of NCI divided by the December 31, 2025 CSM net of NCI balance.

<sup>3</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 1Q26 MD&A.

Manulife Financial Corporation – First Quarter 2026 5

China and from Manulife \| CQS products, partially offset by lower net flows in equity mandates and lower deployments in

private equity mandates.

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

**CSM**<sup>1</sup> **was $25,589 million as at March 31, 2026**

CSM increased $620 million compared with December 31, 2025. Organic CSM movement contributed $650 million of the

increase, representing an 11% annualized growth in our CSM net of NCI balance<sup>2</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 $30 million, primarily driven by the unfavourable impacts of equity

market performance and interest rate movements, partially offset by the impacts of changes in foreign currency exchange

rates. Post-tax CSM net of NCI<sup>3</sup> was $21,255 million as at March 31, 2026.

Manulife Financial Corporation – First Quarter 2026 6

**MANAGEMENT'S DISCUSSION AND ANALYSIS**

This Management's Discussion and Analysis ("MD&A") is current as of May 13, 2026, unless otherwise noted. This MD&A

should be read in conjunction with our unaudited Interim Consolidated Financial Statements for the three months ended March

31, 2026 and the MD&A and audited Consolidated Financial Statements contained in our 2025 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 2025 Annual Report ("2025

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

**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

Sensitivities and Risk Exposure Measures

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

**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 net

realized loss of $732 million in 1Q25 from the sale of debt instruments which are classified as fair value through other comprehensive income ("FVOCI") arose

from the transfer of assets with respect to the RGA U.S. Reinsurance Transaction, and had an offsetting change in other comprehensive income ("OCI")

attributed to shareholders, resulting in a neutral impact to book value.

<sup>2</sup>Percentage growth/declines in core earnings, pre-tax core earnings, 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 past 12 months. For more information on average AUMA, see "Non-GAAP and Other Financial Measures" below.

<sup>4</sup> Formerly Comvest Credit Partners.

Manulife Financial Corporation – First Quarter 2026 7

**ATOTAL COMPANY PERFORMANCE** 

**A1Profitability**

---

| | | | |
|:---|:---|:---|:---|
|  | **Quarterly Results**  | **Quarterly Results**  | **Quarterly Results**  |
| ($ millions, unless otherwise stated) | **1Q26** | 4Q25 | 1Q25 |
| Net income (loss) attributed to shareholders | **$1147** | $1499 | $485 |
| Core earnings<sup>(1)</sup> | **$1836** | $1993 | $1767 |
| Diluted earnings (loss) per common share ($)  | **$0.65** | $0.83 | $0.25 |
| Diluted core earnings per common share ("Core EPS") ($)<sup>(2)</sup> | **$1.06** | $1.12 | $0.99 |
| ROE  | **10.1%** | 12.7% | 3.9% |
| Core return on shareholders' equity ("Core ROE")<sup>(2)</sup> | **16.5%** | 17.1% | 15.6% |
| Expense efficiency ratio<sup>(2)</sup>  | **46.0%** | 44.7% | 45.9% |
| General expenses  | **$1251** | $1327 | $1202 |
| Core expenses<sup>(1)</sup> | **$1827** | $1873 | $1776 |

---

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

Manulife's net income attributed to shareholders was $1,147 million in the first quarter of 2026 ("1Q26") compared with $485

million in the first quarter of 2025 ("1Q25"). 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 $1,836 million in 1Q26

compared with $1,767 million in 1Q25, and items excluded from core earnings, which amounted to a net charge of $689 million

in 1Q26 compared with a net charge of $1,282 million in 1Q25. The effective tax rate on net income (loss) attributed to

shareholders was 16% in 1Q26 compared with 9% in 1Q25 due to differences in the jurisdictional mix of earnings.

Net income attributed to shareholders in 1Q26 increased $662 million compared with 1Q25, reflecting a lower net charge from

market experience and improved core earnings. Total market experience was a net charge of $666 million in 1Q26 primarily

related to lower-than-expected returns on public equity and lower-than-expected returns on alternative long-duration assets

("ALDA"), mainly from real estate, timber, and private equity investments. Market experience in 1Q25 included a net realized

loss on the sale of debt instruments of $732 million from the transfer of assets with respect to the RGA U.S. Reinsurance

Transaction.<sup>1</sup>

Core earnings increased $69 million or 8% on a constant exchange rate ("CER") basis<sup>2</sup> compared with 1Q25. The increase in

our insurance business was driven by business growth, the net positive impact of 2025 updates to actuarial methods and

assumptions, primarily in our Asia segment, improved net insurance experience in the U.S., and the non-recurrence of the

1Q25 charge for estimated losses from California wildfires in our Property and Casualty ("P&C") Reinsurance business. This

was partially offset by lower expected investment earnings and unfavourable insurance experience in our Canada Group

Insurance business, largely driven by higher long-term disability claims, along with higher expenses to support the growing

business and transformational investment to elevate customer experience in Group Insurance. For Global Wealth and Asset

Management ("Global WAM"), the increase in core earnings reflected higher net fee income<sup>3</sup>, contributions from the Manulife \|

Comvest business<sup>4</sup>, as well as disciplined expense management, partially offset by the impact of the electronic Mandatory

Provident Fund ("eMPF") transition in Hong Kong and lower performance fees.

The following table presents information on the change in the expected credit loss ("ECL") for the reporting period.

---

| | | | |
|:---|:---|:---|:---|
| ($ millions, unaudited) | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** |
| ($ millions, unaudited) | **1Q26** | 4Q25 | 1Q25 |
| **Change in ECL** |  |  |  |
| Net new originations or purchases | **$(17)** | $1 | $- |
| Changes to risk, parameters and models |  |  |  |
| Credit migration | **(21)** | (36) | (4) |
| Parameter and model updates, and other | **(1)** | 47 | (42) |
| **Total (increase) recovery in ECL, pre-tax** | **$(39)** | $12 | $(46) |
| **Total (increase) recovery in ECL, post-tax** | **$(32)** | $11 | $(38) |

---

The increase in the ECL provision of $32 million post-tax in 1Q26 and $38 million post-tax in 1Q25 was in line with our

expectations.

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

Manulife Financial Corporation – First Quarter 2026 8

Core earnings by segment is presented in the following table.

---

| | | | |
|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** |
| ($ millions, unaudited) | **1Q26** | 4Q25 | 1Q25 |
| **Core earnings by segment** |  |  |  |
| Asia  | **$820** | $785 | $705 |
| Canada | **352** | 413 | 374 |
| U.S.  | **331** | 319 | 361 |
| Global Wealth and Asset Management  | **448** | 490 | 454 |
| Corporate and Other  | **(115)** | (14) | (127) |
| **Total core earnings**  | **$1836** | $1993 | $1767 |

---

The following table presents net income attributed to shareholders consisting of core earnings and items excluded from core

earnings.

---

| | | | |
|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** |
| ($ millions, unaudited) | **1Q26** | 4Q25 | 1Q25 |
| **Core earnings**  | **$1836** | $1993 | $1767 |
| **Items excluded from core earnings:**  |  |  |  |
| Market experience gains (losses)<sup>(1)</sup>  | **(666)** | (441) | (1332) |
| *Realized gains (losses) on debt instruments* | ***(31)*** | *27* | *(781)* |
| *Derivatives and hedge accounting ineffectiveness*  | ***(25)*** | *(162)* | *(77)* |
| *Actual less expected long-term returns on public equity*  | ***(342)*** | *(63)* | *(208)* |
| *Actual less expected long-term returns on ALDA*  | ***(242)*** | *(232)* | *(275)* |
| *Other investment results*  | ***(26)*** | *(11)* | *9* |
| Updates to actuarial methods and assumptions that flow directly through income | **-** | - | - |
| Restructuring charge | **-** | (12) | - |
| Amortization of acquisition-related intangible assets<sup>(2)</sup> | **(18)** | (12) | - |
| Reinsurance transactions, tax-related items and other<sup>(3)</sup> | **(5)** | (29) | 50 |
| **Total items excluded from core earnings**  | **(689)** | (494) | (1282) |
| **Net income (loss) attributed to shareholders**  | **$1147** | $1499 | $485 |

---

<sup>(1)</sup> Market experience was a net charge of $666 million in 1Q26, driven by lower-than-expected returns from public equity, lower-than-expected returns on ALDA

mainly related to real estate, timber and private equity investments, net realized losses from debt instruments which are classified as FVOCI, a charge from

derivatives and hedge accounting ineffectiveness and a charge in other investment results. Market experience was a net charge of $1,332 million in 1Q25,

driven by net realized losses from debt instruments, of which $732 million was related to the transfer of assets with respect to the RGA U.S. Reinsurance

Transaction, which are classified as FVOCI, lower-than-expected returns on ALDA mainly related to real estate and private equity investments, lower-than-

expected returns from public equity and a charge from derivatives and hedge accounting ineffectiveness. The net charge was partially offset by a gain from

changes in foreign exchange rates.

<sup>(2)</sup> This item is excluded from core earnings commencing in the third quarter of 2025 ("3Q25"). See "Non-GAAP and Other Financial Measures" below for more

information.

<sup>(3)</sup> The 1Q26 net charge of $5 million was related to fair value changes in long-term investment plan obligations in Global WAM. The 1Q25 net gain of $50 million

was related to tax-related benefits and true-ups.

Net income attributed to shareholders by segment is presented in the following table.

---

| | | | |
|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** |
| ($ millions, unaudited) | **1Q26** | 4Q25 | 1Q25 |
| **Net income (loss) attributed to shareholders by segment** |  |  |  |
| Asia  | **$595** | $623 | $624 |
| Canada | **238** | 252 | 222 |
| U.S.  | **138** | 81 | (569) |
| Global Wealth and Asset Management  | **403** | 452 | 443 |
| Corporate and Other  | **(227)** | 91 | (235) |
| **Total net income attributed to shareholders**  | **$1147** | $1499 | $485 |

---

**Expense efficiency ratio** 

We use the expense efficiency ratio to measure progress on our expense management initiatives. It reflects core expenses

which are equal to total expenses<sup>1</sup> less those expenses reported in items excluded from core earnings. Total expenses consist

of 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.

The **expense efficiency ratio** was 46.0% in 1Q26, compared with 45.9% in 1Q25. The impact on the ratio of higher core

expenses in 1Q26 compared with 1Q25 was largely offset by growth in pre-tax core earnings<sup>1</sup> in 1Q26 compared with 1Q25.

The increase in core expenses mainly reflected higher workforce related costs, primarily driven by business growth, the

inclusion of ongoing operating expenses related to our acquisition of Manulife \| Comvest in Global WAM, and continued

strategic investments in transformational efforts, including AI-focused initiatives.

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

<sup>2</sup> For more information on this metric, see "Non-GAAP and Other Financial Measures" below.

<sup>3</sup> Percentage growth / decline in our CSM net of NCI balance from organic CSM movement is stated on a constant exchange rate basis and is a non-GAAP ratio.

This percentage is calculated as the annualized year-to-date change in organic CSM net of NCI divided by the December 31, 2025 CSM net of NCI balance.

See "Non-GAAP and Other Financial Measures" below for more information.

Manulife Financial Corporation – First Quarter 2026 9

Total 1Q26 general expenses increased compared with 1Q25, driven by the items noted above related to the overall increase

in core expenses and expenses reported in items excluded from core earnings. The expenses reported in items excluded from

core earnings were primarily from the amortization of acquisition-related intangible assets in Global WAM in 1Q26 and were nil

in 1Q25.

**A2Business Performance**

---

| | | | |
|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** |
| ($ millions, unless otherwise stated) (unaudited) | **1Q26** | 4Q25 | 1Q25 |
| Asia APE sales | **$2193** | $1608 | $2027 |
| Canada APE sales  | **416** | 383 | 491 |
| U.S. APE sales  | **212** | 231 | 171 |
| Total APE sales<sup>(1)</sup>  | **2821** | 2222 | 2689 |
| Asia new business CSM<sup>(2)</sup>  | **802** | 697 | 715 |
| Canada new business CSM  | **103** | 135 | 91 |
| U.S. new business CSM  | **114** | 188 | 101 |
| Total new business CSM<sup>(2)</sup>  | **1019** | 1020 | 907 |
| Asia new business value | **731** | 606 | 657 |
| Canada new business value  | **152** | 174 | 180 |
| U.S. new business value  | **61** | 94 | 70 |
| Total new business value<sup>(1)</sup> | **944** | 874 | 907 |
| Asia CSM net of NCI  | **18228** | 17750 | 15904 |
| Canada CSM | **4432** | 4459 | 4052 |
| U.S. CSM  | **2927** | 2760 | 2329 |
| Corporate and Other CSM | **2** | - | 11 |
| Total CSM net of NCI  | **25589** | 24969 | 22296 |
| Post-tax CSM net of NCI<sup>(3)</sup> | **21255** | 20733 | 18524 |
| Global WAM gross flows ($ billions)<sup>(1)</sup>  | **56.0** | 49.9 | 50.3 |
| Global WAM net flows ($ billions)<sup>(1)</sup>  | **(4.4)** | (9.5) | 0.5 |
| Global WAM assets under management and administration ($ billions)<sup>(3)</sup> | **1110.1** | 1106.6 | 1026.3 |
| Global WAM total invested assets ($ billions)  | **10.9** | 9.8 | 10.0 |
| Global WAM segregated funds net assets ($ billions)  | **311.4** | 313.6 | 287.6 |
| Total assets under management and administration ($ billions)<sup>(3),(4)</sup> | **1705.3** | 1704.4 | 1603.1 |
| Total invested assets ($ billions)<sup>(4)</sup>  | **461.8** | 459.9 | 445.7 |
| Segregated funds net assets ($ billions)<sup>(4)</sup> | **455.7** | 461.3 | 428.6 |

---

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

<sup>(2)</sup> New business CSM is net of NCI.

<sup>(3)</sup> This item is a non-GAAP financial measure. See "Non-GAAP and Other Financial Measures" below for more information.

<sup>(4)</sup> See section A4 below for more information.

**Annualized premium equivalent ("APE") sales** were $2.8 billion in 1Q26, an increase of 7%<sup>1</sup> compared with 1Q25, **new** 

**business CSM** was $1,019 million in 1Q26, an increase of 16% compared with 1Q25 and **new business value ("NBV")** was

$944 million in 1Q26, an increase of 7%<sup>1</sup> compared with 1Q25. New business results by segment were as follows:

• Asia delivered strong growth in APE sales, new business CSM and NBV in 1Q26, with an increase of 11%, 15%, and 15%

respectively, compared with 1Q25, driven by higher sales volumes and a more favourable business mix, reflecting growth

in Hong Kong, Japan and Singapore across all three new business metrics. NBV margin<sup>2</sup> improved modestly to 38.2% in

1Q26 compared with 38.1% in 1Q25.

• Canada APE sales and NBV decreased 15% and 16% in 1Q26, respectively, compared with 1Q25, driven by lower Group

Insurance sales volumes, partially offset by higher Individual Insurance sales volumes. New business CSM increased

13% in 1Q26 compared with 1Q25, reflecting the growth in Individual Insurance from higher participating life insurance

sales volumes.

• In the U.S., APE sales and new business CSM in 1Q26, increased 29% and 19%, respectively, compared with 1Q25,

reflecting increased demand for our accumulation insurance products supported by recent product enhancements. NBV in

1Q26 decreased 8% compared with 1Q25, primarily driven by product mix, partially offset by higher sales volumes.

**CSM net of NCI** was $25,589 million as at March 31, 2026, an increase of $620 million compared with December 31, 2025.

Organic CSM movement was an increase of $650 million for the three months ended March 31, 2026, representing an 11%

annualized growth in our CSM net of NCI balance<sup>3</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

<sup>1</sup> Redemption of $1.4 billion (US$1.0 billion) of senior debt at maturity in 1Q26.

<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> 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 $17.6 billion of encumbered cash and cash equivalents and marketable securities as at

March 31, 2026 (December 31, 2025 - $17.3 billion).

Manulife Financial Corporation – First Quarter 2026 10

decrease of $30 million for the three months ended March 31, 2026, primarily driven by the unfavourable impacts of equity

market performance and interest rate movements, partially offset by the impacts of changes in foreign currency exchange

rates.

**Global WAM reported net outflows** were $4.4 billion in 1Q26 compared with net inflows of $0.5 billion in 1Q25:

• Retirement net outflows were $2.8 billion in 1Q26 compared with net outflows of $2.6 billion in 1Q25, driven by higher

member withdrawals reflecting higher account balances from market growth and higher retirement plan redemptions in the

U.S., partially offset by lower retirement plan redemptions in Canada.

• Retail net outflows were $5.8 billion in 1Q26 compared with net inflows of $0.5 billion in 1Q25, primarily driven by higher

net outflows in active mutual funds through third-party intermediaries in North America, including a few large model

redemptions in the U.S.

• Institutional Asset Management net inflows were $4.2 billion in 1Q26 compared with net inflows of $2.6 billion in 1Q25,

driven by net flows from the Manulife \| Comvest business, and higher net sales from money market mandates in mainland

China and from Manulife \| CQS products, partially offset by lower net flows in equity mandates and lower deployments in

private equity mandates.

**A3Financial Strength** 

---

| | | | |
|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** |
| (unaudited) | **1Q26** | 4Q25 | 1Q25 |
| MLI's LICAT ratio<sup>(1)</sup>  | **136%** | 136% | 137% |
| Financial leverage ratio<sup>(2)</sup>  | **22.5%** | 23.9% | 23.9% |
| Consolidated capital ($ billions)<sup>(3)</sup> | **$82.8** | $81.6 | $80.4 |
| Book value per common share ($)  | **$26.30** | $25.91 | $25.88 |
| Adjusted book value per common share ($)<sup>(2)</sup> | **$39.01** | $38.27 | $36.66 |

---

<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> 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

March 31, 2026 was 136% compared with 136% as at December 31, 2025. The ratio reflected the positive impact of earnings

and increases in the CSM net of NCI, offset by dividends, common share buybacks, and unfavourable market movements.

MFC's LICAT ratio was 125% as at March 31, 2026 compared with 125% as at December 31, 2025, driven by similar factors

that impacted the movement in MLI's LICAT ratio. The difference between the MLI and MFC ratios as at March 31, 2026 was

largely due to the $6.4 billion of MFC senior debt outstanding that does not qualify as available capital at the MFC level, but

based on the form in which it was down-streamed, it qualifies as regulatory capital for MLI.

**MFC's financial leverage ratio** as at March 31, 2026 was 22.5%, a decrease of 1.4 percentage points from 23.9% as at

December 31, 2025. The decrease was driven by the redemption of senior debt<sup>1</sup>, higher post-tax CSM<sup>2</sup>, and an increase in

total equity, partially offset by a higher balance of foreign currency denominated debt due to the impact of a weaker Canadian

dollar. The increase in total equity was driven mainly by total comprehensive income, including the favourable impact of a

weaker Canadian dollar against most foreign currencies, partially offset by dividends and common share buybacks.

**MFC's consolidated capital** was $82.8 billion as at March 31, 2026, an increase of $1.2 billion compared with $81.6 billion as

at December 31, 2025. The increase was driven by higher post-tax CSM and an increase in total equity. The increase in total

equity was driven mainly by total comprehensive income, including the favourable impact of a weaker Canadian dollar against

most foreign currencies, partially offset by dividends and common share buybacks.

**Cash and cash equivalents and marketable securities**<sup>3</sup> were $274.9 billion as at March 31, 2026 compared with $276.0

billion as at December 31, 2025. The decrease of $1.1 billion was driven by the impact of higher interest rates, redemption of

senior debt<sup>1</sup> and the impact of lower equity markets, partially offset by the impact of changes in foreign exchange rates.

**Book value per common share** as at March 31, 2026 was $26.30, a 2% increase compared with $25.91 as at December 31,

2025. The number of common shares outstanding was 1,672 million as at March 31, 2026, a net decrease of 5 million shares

from December 31, 2025, primarily driven by common share buybacks. On February 19, 2026, following approvals from OSFI

and the Toronto Stock Exchange, we announced a new Normal Course Issuer Bid ("2026 NCIB") to purchase for cancellation

up to 42 million shares, representing approximately 2.5% of outstanding common shares. During the three months ended

March 31, 2026, we purchased for cancellation 4.7 million shares for $222.5 million pre-tax under this 2026 NCIB and an

additional 2.8 million shares for $142.5 million pre-tax under a previous NCIB that commenced on February 24, 2025 and was

completed on January 22, 2026.

<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> Based on AUM as of February 2026.

<sup>3</sup> Legal & General Investment Management Limited and Legal and General Assurance Society, collectively referred to as "L&G".

<sup>4</sup> Akka provides a secure and scalable software foundation to build trusted AI-powered business applications.

<sup>5</sup> Adaptive ML provides a reinforcement-learning-powered engine to fine-tune, evaluate, and deploy open-source small language models (SLMs) for enterprise

applications.

Manulife Financial Corporation – First Quarter 2026 11

**Adjusted book value per common share** as at March 31, 2026 was $39.01, a 2% increase compared with $38.27 as at

December 31, 2025, driven by an increase in the adjusted book value<sup>1</sup> and a lower number of common shares outstanding.

Adjusted book value increased $1.0 billion due to higher post-tax CSM, net of NCI and total common shareholders' equity. The

increase in total common shareholders' equity reflected total comprehensive income attributed to common shareholders,

including the favourable impact of a weaker Canadian dollar against most foreign currencies, partially offset by common share

dividends and common share buybacks.

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

AUMA as at March 31, 2026 was $1.7 trillion, a decrease of 1% compared with December 31, 2025, primarily due to the

unfavourable impact of equity markets. Total invested assets was in line with December 31, 2025 on an actual exchange rate

basis, primarily due to the impact of changes in foreign currency exchange rates, offset by the impact of interest rate

movements. Segregated funds net assets decreased 1% compared with December 31, 2025 on an actual exchange rate

basis, primarily due to the impact of equity markets.

**A5Impact of Foreign Currency Exchange Rates** 

Changes in foreign currency exchange rates from 1Q25 to 1Q26 decreased core earnings by $70 million in 1Q26, primarily

due to a stronger 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 executing to expand our diversified portfolio and further strengthen distribution capabilities and product** 

**leadership**

In Asia, we received recognition as Asia's Best Insurance Provider for Wealth Management at the 2026 Euromoney Private

Banking Awards, a leading benchmark in the private banking and wealth management industry. This acknowledgement reflects

our strong growth momentum, innovative product suite for high-net-worth ("HNW") customer segments, value-added service,

international capabilities, and trusted relationships with our distribution partners across all HNW channels.

In Global WAM, we completed the acquisition of PT Schroder Investment Management Indonesia ("Schroders Indonesia") with

$3.5 billion of AUM as of March 31, 2026. The acquisition strengthens our position as the largest asset manager in Indonesia<sup>2</sup>

and enables us to deliver enhanced value to our clients and stakeholders by leveraging the firm's local expertise and client

relationships.

In addition, we entered into a strategic partnership with L&G<sup>3</sup> to enhance our distribution, investment management, and

product development capabilities. The partnership is intended to combine our global asset management expertise and

distribution platform with L&G's strengths as a global asset manager and distribution capabilities, especially across Europe,

bringing together complementary capabilities to expand access to differentiated investment solutions across institutional,

retirement, and retail channels.

In the U.S., we further differentiated our product portfolio through enhancements to our indexed and hybrid indexed universal

life offerings, better positioning us to address evolving income-protection and wealth-accumulation needs and supporting our

growth strategy. Furthermore, we reinforced our industry-leading large-case underwriting capabilities by increasing auto-bind

limits through reinsurer support, simplifying underwriting and reducing friction for complex submissions.

**We are deploying AI globally to enhance distributor experience, drive efficiency, and deliver value**

We accelerated our momentum across our enterprise AI platform, establishing production-ready environments and enabling

initial scalable use cases, while leveraging new strategic partnerships with Akka<sup>4</sup> and Adaptive ML<sup>5</sup>. In addition, our developers

across the organization continued to adopt assisted and autonomous AI capabilities, increasing their productivity by 30% while

enabling reinvestment to support business growth and develop new capabilities to serve our customers. Together, we expect

these advancements will enhance our ability to deploy AI at scale with speed, consistency, and in alignment with our

Responsible AI Principles.

Building on the roll out of agent and advisor AI tools in a number of our Asia markets in 2025, we launched our distributor AI

tool in Vietnam to support faster access to product information, premium calculations and simplified illustrations for customers.

In Japan, we also enhanced our AI tool to provide a unified, always-available entry point to information about our independent

agents, including their affiliations, branch details, and product license eligibility, enabling us to provide better and faster support

to these agents.

<sup>1</sup> The Shield MCD test is intended to detect 10 cancers with a single blood draw, and is for export use only outside of the United States.

Manulife Financial Corporation – First Quarter 2026 12

In Global WAM, we introduced an AI-powered sales platform in U.S. Retail to better integrate data, enabling more personalized

advisor conversations and smarter sales deployment. This platform allows sales teams to prioritize the most promising

opportunities, driving an approximately 40% increase in meaningful advisor interactions and supporting higher flows.

In the U.S., we continued to realize benefits from scaling GenAI investments in underwriting through the expansion of our

Quick Quote support tool, enabling us to automate nearly half of preliminary assessments, which accelerated average

turnaround time from days to minutes and enabled underwriters to focus on more complex cases.

In Canada, we enhanced online claims processing for our Affinity health & dental business through AI-driven document

processing for the majority of manually processed claims, which improved processing speed and accelerated payments to

customers.

**We are advancing our health, wealth and longevity strategy while establishing new strategic partnerships** 

In Asia, we established an exclusive partnership with Guardant Health to offer the Shield™ Multi-Cancer Detection test

("Shield MCD test")<sup>1</sup> to eligible customers in Hong Kong, Singapore, and the Philippines. The collaboration makes us the first

insurer in Asia to offer the Shield MCD test, broadening access to early cancer detection and advancing our commitment to

improving customer health outcomes and longevity.

In Canada, we partnered with Osara Health<sup>®</sup>, a global provider of evidence-based cancer support programs to pilot the Cancer

Coach™ program and offer eligible Group Benefits members structured and personalized support for navigating the daily

challenges that accompany a cancer diagnosis, treatment, and recovery.

We also advanced Manulife's commitment to longevity through a partnership with the National Institute on Ageing, supporting

the release of the Ageing in Canada Survey, one of Canada's most comprehensive annual snapshots of aging, and building on

our commitment to health, wealth and financial wellbeing.

In the U.S., we launched John Hancock Vitality PRO, a distributor-facing engagement platform designed to support the

promotion of John Hancock Vitality and to enhance producer loyalty. Early adoption continues to build, reinforcing engagement

in John Hancock Vitality and our mission to help customers live longer, healthier, better lives.

Manulife Financial Corporation – First Quarter 2026 13

**BPERFORMANCE BY SEGMENT** 

**B1Asia**

---

| | | | |
|:---|:---|:---|:---|
| ($ millions, unless otherwise stated) | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** |
| *Canadian dollars*  | **1Q26** | 4Q25 | 1Q25 |
| **Profitability:**  |  |  |  |
| Net income attributed to shareholders  | **$595** | $623 | $624 |
| Core earnings<sup>(1)</sup>  | **820** | 785 | 705 |
| **Business performance:**  |  |  |  |
| APE sales  | **2193** | 1608 | 2027 |
| New business CSM | **802** | 697 | 715 |
| NBV | **731** | 606 | 657 |
| CSM net of NCI | **18228** | 17750 | 15904 |
| Assets under management ($ billions)<sup>(2)</sup> | **220.7** | 218.1 | 200.3 |
| Total invested assets ($ billions) | **188.7** | 185.8 | 171.7 |
| Segregated funds net assets ($ billions)  | **32.1** | 32.2 | 28.6 |
| *U.S. dollars* |  |  |  |
| **Profitability:**  |  |  |  |
| Net income attributed to shareholders  | **US$433** | US$447 | US$435 |
| Core earnings<sup>(1)</sup>  | **598** | 564 | 492 |
| **Business performance:**  |  |  |  |
| APE sales  | **1599** | 1153 | 1412 |
| New business CSM | **585** | 500 | 498 |
| NBV | **533** | 434 | 457 |
| CSM net of NCI | **13063** | 12951 | 11051 |
| Assets under management ($ billions)<sup>(2)</sup> | **158.2** | 159.1 | 139.2 |
| Total invested assets ($ billions) | **135.2** | 135.6 | 119.3 |
| Segregated funds net assets ($ billions)  | **23.0** | 23.5 | 19.9 |

---

<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 $595 million in 1Q26 compared with $624 million in 1Q25. Net income

attributed to shareholders is comprised of core earnings, which were $820 million in 1Q26 compared with $705 million in

1Q25, and items excluded from core earnings, which amounted to a net charge of $225 million in 1Q26 compared with a net

charge of $81 million in 1Q25. 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 $38 million unfavourable 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$433

million in 1Q26 compared with US$435 million in 1Q25. Core earnings were US$598 million in 1Q26 compared with US$492

million in 1Q25, and items excluded from core earnings were a net charge of US$165 million in 1Q26 compared with a net

charge of US$57 million in 1Q25.

Core earnings in 1Q26 increased 22% compared with 1Q25, driven by an increase in expected earnings on insurance

contracts and higher expected investment earnings, both reflecting business growth, partially offset by less favourable

insurance experience. The increase in expected earnings on insurance contracts also reflected the net positive impact of 2025

updates to actuarial methods and assumptions.

**APE sales** were US$1,599 million in 1Q26, an increase of US$187 million or 11% compared with 1Q25, driven by growth in

Hong Kong, Japan and Singapore, partially offset by lower sales in mainland China. Hong Kong APE sales increased US$95

million or 18%, reflecting higher agency and bancassurance sales in savings products, partially offset by lower sales in the

broker channel. Japan APE sales increased US$61 million or 61%, due to higher sales in the broker channel, driven by growth

in wealth accumulation and investment-linked products. Singapore APE sales increased US$47 million or 13%, driven by

higher sales of savings products in both the bancassurance and agency channels. Mainland China APE sales decreased

US$20 million or 10%, reflecting lower sales in the bancassurance channel, partially offset by higher sales in the agency

channel.

<sup>1</sup> The Shield MCD test is intended to detect 10 cancers with a single blood draw, and is for export use only outside of the United States.

Manulife Financial Corporation – First Quarter 2026 14

**New business CSM** of US$585 million in 1Q26 increased US$87 million or 15% compared with 1Q25 driven by higher sales

volumes and a more favourable business mix, reflecting growth in Japan, Singapore and Hong Kong, partially offset by a

decline in mainland China. Japan new business CSM increased US$65 million or 122%, primarily driven by higher sales

volumes. Singapore new business CSM increased US$25 million or 19%, driven by higher sales volumes and product mix.

Hong Kong new business CSM increased US$10 million or 5%, driven by higher sales volumes, partially offset by product mix.

Mainland China new business CSM decreased US$5 million or 9%, primarily driven by lower sales volumes.

**NBV** of US$533 million in 1Q26 increased US$76 million or 15% compared with 1Q25, driven by higher sales volumes and a

more favourable business mix, reflecting growth in Japan, Hong Kong and Singapore. NBV margin was 38.2% in 1Q26

compared with 38.1% in 1Q25. Japan NBV increased US$41 million or 127%, primarily driven by higher sales volumes. Hong

Kong NBV increased US$27 million or 10%, driven by higher sales volumes, partially offset by product mix. Singapore NBV

increased US$16 million or 15%, primarily driven by higher sales volumes.

**CSM net of NCI** was US$13,063 million as at March 31, 2026, an increase of US$112 million compared with December 31,

2025. Organic CSM movement was an increase of US$353 million for the three months ended March 31, 2026, representing

an 11% annualized growth in our CSM net of NCI balance, 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 US$241 million for

the three months ended March 31, 2026, largely due to the impact of equity market performance and interest rate movement.

**Assets under management** were US$158.2 billion as at March 31, 2026, in line with December 31, 2025. The impact of

business growth was offset by higher interest rates and unfavourable equity market performance on invested assets and

segregated funds net assets.

**Business highlights** – In 1Q26, we:

• Established an exclusive partnership with Guardant Health to offer the Shield™ Multi-Cancer Detection test ("Shield MCD

test")<sup>1</sup> to eligible customers in Hong Kong, Singapore, and the Philippines. The collaboration makes us the first insurer in

Asia to offer the Shield MCD test, broadening access to early cancer detection and advancing our commitment to

improving customer health outcomes and longevity;

• Continued investing in AI capabilities to enhance distributor productivity across Asia. Building on the roll out of agent and

advisor AI tools in a number of our markets in 2025, we launched our distributor AI tool in Vietnam to support faster

access to product information, premium calculations and simplified illustrations for customers. In Japan, we also enhanced

our AI tool to provide a unified, always-available entry point to information about our independent agents, including their

affiliations, branch details, and product license eligibility, enabling us to provide better and faster support to these agents;

• Convened the third Asia Longevity Symposium in Japan, building on earlier events in Singapore and the Philippines, to

advance dialogue on financial readiness for longer lives in the context of Japan's 100-year life expectancy. Post-event

research with participants indicated strengthened brand perception for Manulife, and increased intent to take action on

financial security, supporting the continued use of education-led engagement to better connect with customers in Japan's

aging society; and

• Received recognition as Asia's Best Insurance Provider for Wealth Management at the 2026 Euromoney Private Banking

Awards, a leading benchmark in the private banking and wealth management industry. This acknowledgement reflects our

strong growth momentum, innovative product suite for high-net-worth ("HNW") customer segments, value-added service,

international capabilities, and trusted relationships with our distribution partners across all HNW channels.

**B2Canada**

---

| | | | |
|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** |
| ($ millions, unless otherwise stated) | **1Q26** | 4Q25 | 1Q25 |
| **Profitability:**  |  |  |  |
| Net income attributed to shareholders  | **$238** | $252 | $222 |
| Core earnings<sup>(1)</sup>  | **352** | 413 | 374 |
| **Business performance:**  |  |  |  |
| APE sales  | **416** | 383 | 491 |
| CSM  | **4432** | 4459 | 4052 |
| Manulife Bank average net lending assets ($ billions)<sup>(2)</sup> | **30.2** | 29.5 | 26.9 |
| Assets under management ($ billions) | **151.1** | 152.7 | 148.7 |
| Total invested assets ($ billions) | **114.3** | 114.5 | 111.3 |
| Segregated funds net assets ($ billions)  | **36.8** | 38.2 | 37.4 |

---

<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 $238 million in 1Q26 compared with $222 million in 1Q25. Net income

attributed to shareholders is comprised of core earnings, which were $352 million in 1Q26 compared with $374 million in

1Q25, and items excluded from core earnings, which amounted to a net charge of $114 million in 1Q26 compared with a net

charge of $152 million in 1Q25. See section E3 "Non-GAAP and Other Financial Measures" below, for a reconciliation of

Manulife Financial Corporation – First Quarter 2026 15

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 1Q26 decreased $22 million or 6% compared with 1Q25, reflecting unfavourable insurance experience in

Group Insurance in 1Q26, compared with favourable experience in 1Q25. The variance in insurance experience was largely

driven by higher long-term disability claims, along with higher expenses to support the growing business and transformational

investment to elevate customer experience in Group Insurance. This was partially offset by an increase in expected earnings

on insurance contracts, reflecting business growth, a lower charge in the ECL provision, and higher expected investment

earnings. Core earnings also included the net favourable impact of 2025 updates to actuarial methods and assumptions.

**APE sales** of $416 million in 1Q26 decreased $75 million, or 15%, compared with 1Q25.

• Individual Insurance APE sales of $157 million increased $27 million or 21%, primarily due to higher participating life

insurance sales.

• Group Insurance APE sales of $193 million decreased $92 million or 32%, driven by lower large-case sales.

• Annuities APE sales of $66 million decreased $10 million or 13%, driven by lower segregated fund sales.

**CSM** was $4,432 million as at March 31, 2026, a decrease of $27 million compared with December 31, 2025. Organic CSM

movement was an increase of $24 million for the three months ended March 31, 2026, representing 2% annualized growth in

our CSM net of NCI balance, 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 $51 million for the three months ended March 31,

2026, primarily related to the impact of unfavourable equity market experience in the quarter.

**Manulife Bank average net lending assets** were $30.2 billion for the quarter ending March 31, 2026, up $0.7 billion, or 2%,

compared with the quarter ending December 31, 2025, primarily due to growth in residential lending.

**Assets under management** were $151.1 billion as at March 31, 2026, a decrease of $1.6 billion, or 1%, compared with

December 31, 2025, due to lower segregated funds net assets, driven by net outflows and the unfavourable impact from equity

markets.

**Business highlights** – In 1Q26, we:

• Partnered with Osara Health<sup>®</sup>, a global provider of evidence-based cancer support programs to pilot the Cancer Coach™

program and offer eligible Group Benefits members structured and personalized support for navigating the daily

challenges that accompany a cancer diagnosis, treatment, and recovery; and

• Enhanced online claims processing for our Affinity health & dental business through AI-driven document processing for the

majority of manually processed claims, which improved processing speed and accelerated payments to customers.

**B3U.S.**

---

| | | | |
|:---|:---|:---|:---|
| ($ millions, unless otherwise stated) | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** |
| *Canadian dollars*  | **1Q26** | 4Q25 | 1Q25 |
| **Profitability:**  |  |  |  |
| Net income (loss) attributed to shareholders  | **$138** | $81 | $(569) |
| Core earnings<sup>(1)</sup>  | **331** | 319 | 361 |
| **Business performance:**  |  |  |  |
| APE sales  | **212** | 231 | 171 |
| CSM | **2927** | 2760 | 2329 |
| Assets under management ($ billions) | **198.7** | 199.9 | 200.9 |
| Total invested assets ($ billions) | **123.2** | 122.6 | 125.8 |
| Segregated funds invested net assets ($ billions)  | **75.4** | 77.3 | 75.1 |
| *U.S. dollars* |  |  |  |
| **Profitability:**  |  |  |  |
| Net income (loss) attributed to shareholders  | **US$101** | US$58 | US$(397) |
| Core earnings<sup>(1)</sup>  | **241** | 229 | 251 |
| **Business performance:**  |  |  |  |
| APE sales  | **155** | 165 | 120 |
| CSM | **2097** | 2013 | 1618 |
| Assets under management ($ billions) | **142.4** | 145.8 | 139.6 |
| Total invested assets ($ billions) | **88.3** | 89.4 | 87.4 |
| Segregated funds invested net assets ($ billions)  | **54.1** | 56.4 | 52.2 |

---

<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.

Manulife Financial Corporation – First Quarter 2026 16

**U.S.'s net income attributed to shareholders** was $138 million in 1Q26 compared with a net loss attributed to shareholders

of $569 million in 1Q25. Net income (loss) attributed to shareholders is comprised of core earnings, which were $331 million in

1Q26 compared with $361 million in 1Q25, and items excluded from core earnings, which amounted to a net charge of $193

million in 1Q26 compared with a net charge of $930 million in 1Q25. 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 $15 million

unfavourable impact from the weakening of the U.S. dollar compared with the Canadian dollar.

Expressed in U.S. dollars, the functional currency of the segment, the net income attributed to shareholders was US$101

million in 1Q26 compared with a net loss attributed to shareholders of US$397 million in 1Q25. Core earnings were US$241

million in 1Q26 compared with US$251 million in 1Q25 and items excluded from core earnings were a net charge of US$140

million in 1Q26 compared with a net charge of US$648 million in 1Q25.

Core earnings in 1Q26 decreased US$10 million or 4% compared with 1Q25 reflecting lower expected investment earnings

and unfavourable lapse experience in 1Q26 compared with favourable experience in 1Q25. These drivers were partially offset

by favourable life and long-term care ("LTC") insurance claims experience in 1Q26 compared with unfavourable experience in

1Q25, and an increase in expected earnings on insurance contracts.

**APE sales** of US$155 million in 1Q26 increased 29% compared with 1Q25, reflecting increased demand for our accumulation

insurance products supported by recent product enhancements.

**CSM** was US$2,097 million as at March 31, 2026, an increase of US$84 million compared with December 31, 2025. Organic

CSM movement was an increase of US$102 million for the three months ended March 31, 2026, representing 21% annualized

growth in our CSM net of NCI balance, 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 LTC claims and lapse experience. Inorganic CSM movement was a decrease of US$18 million for the three months

ended March 31, 2026 due to the unfavourable impact of equity markets.

**Assets under management** were US$142.4 billion as at March 31, 2026, a decrease of 2% or US$3.4 billion compared with

December 31, 2025. The decrease was largely due to the net impact from interest rates and equity markets on both

segregated funds net assets and total invested assets.

**Business highlights** – In 1Q26, we:

• Further differentiated our product portfolio through enhancements to our indexed and hybrid indexed universal life

offerings, better positioning us to address evolving income-protection and wealth-accumulation needs and supporting our

growth strategy;

• Reinforced our industry-leading large-case underwriting capabilities by increasing auto-bind limits through reinsurer

support, simplifying underwriting and reducing friction for complex submissions;

• Launched John Hancock Vitality PRO, a distributor-facing engagement platform designed to support the promotion of

John Hancock Vitality and to enhance producer loyalty. Early adoption continues to build, reinforcing engagement in John

Hancock Vitality and our mission to help customers live longer, healthier, better lives;

• Continued to realize benefits from scaling GenAI investments in underwriting through the expansion of our Quick Quote

support tool, enabling us to automate nearly half of preliminary assessments, which accelerated average turnaround time

from days to minutes and enabled underwriters to focus on more complex cases; and

• Introduced John Hancock Pathways ("Pathways"), a program for our LTC insurance customers that helps them stay active

and independent. Pathways extends our unique behavioural insurance approach and is designed to support healthier

aging and delay progression to claim.

<sup>1</sup> Based on AUM as of February 2026.

Manulife Financial Corporation – First Quarter 2026 17

**B4Global Wealth and Asset Management**

---

| | | | |
|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** |
| ($ millions, unless otherwise stated) | **1Q26** | 4Q25 | 1Q25 |
| **Profitability:**  |  |  |  |
| Net income attributed to shareholders | **$403** | $452 | $443 |
| Core earnings<sup>(1)</sup>  | **448** | 490 | 454 |
| Core EBITDA<sup>(2)</sup> | **623** | 668 | 608 |
| Core EBITDA margin (%)<sup>(3)</sup> | **29.0%** | 29.2% | 28.4% |
| **Business performance:**  |  |  |  |
| Sales  |  |  |  |
| Wealth and asset management gross flows | **56032** | 49949 | 50274 |
| Wealth and asset management net flows | **(4358)** | (9475) | 489 |
| Assets under management and administration ($ billions) | **1110.1** | 1106.6 | 1026.3 |
| Total invested assets ($ billions) | **10.9** | 9.8 | 10.0 |
| Segregated funds net assets ($ billions)  | **311.4** | 313.6 | 287.6 |
| Global WAM managed AUMA ($ billions)<sup>(2)</sup> | **1340.7** | 1341.0 | 1251.4 |
| Average assets under management and administration ($ billions) | **1117.6** | 1115.1 | 1041.1 |

---

<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 $403 million in 1Q26 compared with $443 million in 1Q25. Net

income attributed to shareholders is comprised of core earnings, which were $448 million in 1Q26 compared with $454 million

in 1Q25, and items excluded from core earnings, which amounted to a net charge of $45 million in 1Q26 compared with a net

charge of $11 million in 1Q25. 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 decreased $6 million compared with 1Q25. On a CER basis, core earnings increased 2% compared with 1Q25,

driven by an increase in net fee income from higher average AUMA, reflecting the favourable impact of markets over the past

12 months, contributions from the Manulife \| Comvest business, as well as disciplined expense management. This increase

was partially offset by the impact of the eMPF transition in Hong Kong and lower performance fees in Institutional Asset

Management.

Core EBITDA was $623 million in 1Q26, an increase of 6% compared with 1Q25, and core EBITDA margin was 29.0% in

1Q26, an increase of 60 basis points compared with 1Q25, both driven by the same factors as mentioned above. See section

E3 "Non-GAAP and Other Financial Measures" below, for more information on core EBITDA and core EBITDA margin.

**Net outflows** were $4.4 billion in 1Q26, compared with net inflows of $0.5 billion in 1Q25. By business line, the results were:

• Retirement net outflows were $2.8 billion in 1Q26 compared with net outflows of $2.6 billion in 1Q25, driven by higher

member withdrawals reflecting higher account balances from market growth and higher retirement plan redemptions in the

U.S., partially offset by lower retirement plan redemptions in Canada.

• Retail net outflows were $5.8 billion in 1Q26 compared with net inflows of $0.5 billion in 1Q25, primarily driven by higher

net outflows in active mutual funds through third-party intermediaries in North America, including a few large model

redemptions in the U.S.

• Institutional Asset Management net inflows were $4.2 billion in 1Q26 compared with net inflows of $2.6 billion in 1Q25,

driven by net flows from the Manulife \| Comvest business, and higher net sales from money market mandates in mainland

China and from Manulife \| CQS products, partially offset by lower net flows in equity mandates and lower deployments in

private equity mandates.

**Assets under management and administration** of $1,110.1 billion as at March 31, 2026 decreased 1% on a CER basis

compared with December 31, 2025. The decrease was primarily driven by the unfavourable impact of equity markets and net

outflows partially offset by the assets from the acquisition of Schroders Indonesia. As at March 31, 2026, Global WAM also

managed $230.6 billion in assets for the Company's other reporting segments. Including those assets, AUMA managed by

Global WAM were $1,340.7 billion compared with $1,341.0 billion as at December 31, 2025.

Included in Global WAM's AUMA, segregated funds net assets were $311.4 billion as at March 31, 2026, a decrease of 1%

compared with December 31, 2025 on an actual exchange rate basis, driven by the unfavourable impact of equity markets,

partially offset by favorable foreign currency exchange rates.

**Business highlights** – In 1Q26, we:

• Completed the acquisition of PT Schroder Investment Management Indonesia ("Schroders Indonesia") with $3.5 billion of

AUM as of March 31, 2026. The acquisition strengthens our position as the largest asset manager in Indonesia<sup>1</sup> and

enables us to deliver enhanced value to our clients and stakeholders by leveraging the firm's local expertise and client

relationships;

<sup>1</sup> Legal & General Investment Management Limited and Legal and General Assurance Society, collectively referred to as "L&G".

Manulife Financial Corporation – First Quarter 2026 18

• Entered into a strategic partnership with L&G<sup>1</sup> to enhance our distribution, investment management, and product

development capabilities. The partnership is intended to combine our global asset management expertise and distribution

platform with L&G's strengths as a global asset manager and distribution capabilities, especially across Europe, bringing

together complementary capabilities to expand access to differentiated investment solutions across institutional,

retirement, and retail channels; and

• Introduced an AI-powered sales platform in U.S. Retail to better integrate data, enabling more personalized advisor

conversations and smarter sales deployment. This platform allows sales teams to prioritize the most promising

opportunities, driving an approximately 40% increase in meaningful advisor interactions and supporting higher flows.

**B5Corporate and Other**

---

| | | | |
|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** |
| ($ millions, unless otherwise stated) | **1Q26** | 4Q25 | 1Q25 |
| Net income attributed to shareholders | **$(227)** | $91 | $(235) |
| Core earnings (loss)<sup>(1)</sup>  | **(115)** | (14) | (127) |

---

<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 a net loss attributed to shareholders of $227 million in 1Q26 compared with a net loss attributed

to shareholders of $235 million in 1Q25. Net income (loss) attributed to shareholders is comprised of core earnings, which was

a core loss of $115 million in 1Q26 compared with a core loss of $127 million in 1Q25, and the items excluded from core

earnings (loss) which amounted to a net charge of $112 million in 1Q26 compared with a net charge of $108 million in 1Q25.

See section E3 "Non-GAAP and Other Financial Measures" below, for a reconciliation of quarterly core earnings to net income

(loss) attributed to shareholders and section A1 "Profitability" above, for explanations of the items excluded from core earnings.

The $12 million decrease in core loss was primarily due to non-recurrence of the 1Q25 charge for estimated losses from

California wildfires in our P&C Reinsurance business, partially offset by lower investment income, reflecting the impact of the

acquisition of Comvest Credit Partners, and higher expenses from continued strategic investments in transformational efforts,

including AI-focused initiatives.

Manulife Financial Corporation – First Quarter 2026 19

**CRISK MANAGEMENT AND RISK FACTORS UPDATE**

This section provides an update to our risk management practices and risk factors outlined in the 2025 MD&A.

**C1Variable Annuity and Segregated Fund Guarantees Sensitivities and Risk Exposure** 

**Measures**

As described in the MD&A in our 2025 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 are expected to be recognized

primarily within the next 20 years.

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** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| ($ 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 | **$3117** | **$2381** | **$791** | $3142 | $2534 | $708 |
| Guaranteed minimum withdrawal benefit | **29393** | **29835** | **2940** | 29664 | 31071 | 2643 |
| Guaranteed minimum accumulation benefit | **18788** | **19079** | **34** | 18908 | 19208 | 55 |
| Gross living benefits<sup>(4)</sup> | **51298** | **51295** | **3765** | 51714 | 52813 | 3406 |
| Gross death benefits<sup>(5)</sup> | **7912** | **18635** | **620** | 7892 | 19924 | 486 |
| Total gross of reinsurance | **59210** | **69930** | **4385** | 59606 | 72737 | 3892 |
| Living benefits reinsured | **20442** | **20999** | **2611** | 20518 | 21932 | 2351 |
| Death benefits reinsured | **3048** | **2492** | **259** | 3058 | 2620 | 195 |
| Total reinsured | **23490** | **23491** | **2870** | 23576 | 24552 | 2546 |
| **Total, net of reinsurance** | **$35720** | **$46439** | **$1515** | $36030 | $48185 | $1346 |

---

<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 March 31, 2026 was $1,515 million (December 31, 2025 – $1,346 million) of which: US$276 million (December 31,

2025 – US$244 million) was on our U.S. business, $963 million (December 31, 2025 – $835 million) was on our Canadian business, US$95 million (December

31, 2025 – US$80 million) was on our Japan business and US$25 million (December 31, 2025 – US$49 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 – First Quarter 2026 20

**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

materially 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 CSM net of NCI, 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 net of NCI.

**C3Publicly Traded Equity Performance Risk Sensitivities and Exposure Measures**

As outlined in our 2025 Annual Report, we have net exposure to equity risk through asset and liability mismatches; our

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 guarantees not dynamically hedged and from other unhedged exposures in our insurance contracts

(see page 65 of our 2025 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 net of NCI, 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 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 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 – First Quarter 2026 21

**Potential immediate impact on net income attributed to shareholders arising from changes to public equity returns**<sup>(1)</sup>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **As at March 31, 2026** | **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> | **$(1830)** | **$(1110)** | **$(500)** | **$420** | **$770** | **$1080** |
| General fund equity investments<sup>(3)</sup> | **(1280)** | **(850)** | **(420)** | **420** | **850** | **1260** |
| Total underlying sensitivity before hedging | **(3110)** | **(1960)** | **(920)** | **840** | **1620** | **2340** |
| Impact of macro and dynamic hedge assets<sup>(4)</sup> | **690** | **410** | **180** | **(140)** | **(260)** | **(350)** |
| Net potential impact on net income attributed to <br>shareholders after impact of hedging and before <br>impact of reinsurance<br>| **(2420)** | **(1550)** | **(740)** | **700** | **1360** | **1990** |
| Impact of reinsurance | **1110** | **680** | **310** | **(270)** | **(500)** | **(710)** |
| **Net potential impact on net income attributed to** <br>**shareholders after impact of hedging and** <br>**reinsurance**<br>| **$(1310)** | **$(870)** | **$(430)** | **$430** | **$860** | **$1280** |
| As at December 31, 2025 | **Net income attributed to shareholders** | **Net income attributed to shareholders** | **Net income attributed to shareholders** | **Net income attributed to shareholders** | **Net income attributed to shareholders** | **Net income attributed to shareholders** |
| ($ millions) | -30% | -20% | -10% | +10% | +20% | +30% |
| **Underlying sensitivity** |  |  |  |  |  |  |
| Variable annuity and segregated fund guarantees<sup>(2)</sup> | $(1790) | $(1070) | $(490) | $400 | $750 | $1050 |
| General fund equity investments<sup>(3)</sup> | (1320) | (880) | (440) | 440 | 870 | 1310 |
| Total underlying sensitivity before hedging | (3110) | (1950) | (930) | 840 | 1620 | 2360 |
| Impact of macro and dynamic hedge assets<sup>(4)</sup> | 650 | 390 | 170 | (130) | (240) | (330) |
| Net potential impact on net income attributed to <br>shareholders after impact of hedging and before <br>impact of reinsurance<br>| (2460) | (1560) | (760) | 710 | 1380 | 2030 |
| Impact of reinsurance | 1110 | 670 | 310 | (270) | (490) | (700) |
| **Net potential impact on net income attributed to** <br>**shareholders after impact of hedging and** <br>**reinsurance**<br>| $(1350) | $(890) | $(450) | $440 | $890 | $1330 |

---

<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 and investment in seed money

investments (in segregated and mutual funds made by Global WAM segment). 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 – First Quarter 2026 22

**Potential immediate impact on CSM net of NCI, other comprehensive income to shareholders, total comprehensive** 

**income to shareholders and MLI's LICAT ratio from changes to public equity market values**<sup>(1)</sup>

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **As at March 31, 2026** |  |  |  |  |  |  |
| ($ millions and post-tax, unless otherwise stated) | -30% | -20% | -10% | +10% | +20% | +30% |
| Variable annuity and segregated fund guarantees <br>reported in CSM (pre-tax)<br>| **$(3000)** | **$(1850)** | **$(860)** | **$750** | **$1400** | **$1990** |
| Impact of risk mitigation – hedging (pre-tax)<sup>(2),(3)</sup> | **920** | **550** | **240** | **(190)** | **(350)** | **(460)** |
| Impact of risk mitigation – reinsurance (pre-tax)<sup>(3)</sup> | **1410** | **860** | **400** | **(340)** | **(630)** | **(900)** |
| VA net of risk mitigation (pre-tax) | **(670)** | **(440)** | **(220)** | **220** | **420** | **630** |
| General fund equity (pre-tax) | **(1400)** | **(910)** | **(440)** | **430** | **880** | **1300** |
| **CSM net of NCI (pre-tax)** | **$(2070)** | **$(1350)** | **$(660)** | **$650** | **$1300** | **$1930** |
| **Other comprehensive income attributed to** <br>**shareholders**<sup>(4)</sup><br>| **$(850)** | **$(570)** | **$(290)** | **$270** | **$540** | **$800** |
| **Total comprehensive income attributed to** <br>**shareholders**<br>| **$(2160)** | **$(1440)** | **$(720)** | **$700** | **$1400** | **$2080** |
| **MLI's LICAT ratio (change in percentage points)** | **(2)** | **(1)** | **(1)** | **1** | **1** | **2** |
| As at December 31, 2025 |  |  |  |  |  |  |
| ($ millions and post-tax, unless otherwise stated) | -30% | -20% | -10% | +10% | +20% | +30% |
| Variable annuity and segregated fund guarantees <br>reported in CSM (pre-tax)<br>| $(2970) | $(1820) | $(840) | $730 | $1390 | $1980 |
| Impact of risk mitigation – hedging (pre-tax)<sup>(2),(3)</sup> | 870 | 510 | 220 | (180) | (320) | (430) |
| Impact of risk mitigation – reinsurance (pre-tax)<sup>(3)</sup> | 1400 | 850 | 390 | (330) | (630) | (890) |
| VA net of risk mitigation (pre-tax) | (700) | (460) | (230) | 220 | 440 | 660 |
| General fund equity (pre-tax) | (1410) | (910) | (440) | 440 | 880 | 1300 |
| **CSM net of NCI (pre-tax)** | $(2110) | $(1370) | $(670) | $660 | $1320 | $1960 |
| **Other comprehensive income attributed to** <br>**shareholders**<sup>(4)</sup><br>| $(920) | $(620) | $(300) | $300 | $580 | $860 |
| **Total comprehensive income attributed to** <br>**shareholders**<br>| $(2270) | $(1510) | $(750) | $740 | $1470 | $2190 |
| **MLI's LICAT ratio (change in percentage points)** | (2) | (1) | (1) | 1 | 1 | 2 |

---

<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 occurs 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 March 31, 2026, 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 of NCI, 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 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 materially impact net income attributed to shareholders.

Manulife Financial Corporation – First Quarter 2026 23

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 100 of our 2025 Annual Report). More information on ALDA can be found below in 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 CSM net of NCI, 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 March 31, 2026** | Interest rates | Interest rates | Corporate spreads | Corporate spreads | Swap spreads | Swap spreads |
| ($ millions and post-tax, unless otherwise stated) | -50bp | +50bp | -50bp | +50bp | -20bp | +20bp |
| CSM net of NCI (pre-tax) | **$200** | **$(300)** | **$(200)** | **$-** | **$-** | **$-** |
| Net income attributed to shareholders | **100** | **(100)** | **-** | **-** | **100** | **(100)** |
| Other comprehensive income attributed to <br>shareholders<br>| **(300)** | **300** | **100** | **-** | **(300)** | **300** |
| Total comprehensive income attributed to shareholders | **(200)** | **200** | **100** | **-** | **(200)** | **200** |
| As at December 31, 2025 | Interest rates | Interest rates | Corporate spreads | Corporate spreads | Swap spreads | Swap spreads |
| ($ millions and post-tax, unless other stated) | -50bp | +50bp | -50bp | +50bp | -20bp | +20bp |
| CSM net of NCI (pre-tax) | $200 | $(300) | $(200) | $100 | $- | $- |
| Net income attributed to shareholders | 100 | (100) | - | - | 100 | (100) |
| Other comprehensive income attributed to <br>shareholders<br>| (100) | 100 | 100 | - | (300) | 300 |
| Total comprehensive income attributed to shareholders | - | - | 100 | - | (200) | 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 March 31, 2026** | 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)** | **1** | **(3)** | **2** | **(1)** | **1** |
| As at December 31, 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 | - | - |

---

<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.

<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, and carbon sequestration.

Manulife Financial Corporation – First Quarter 2026 24

**LICAT Scenario Switch**

When interest rates exceed 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.

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 1Q26, 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 differ 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 of NCI, 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 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 CSM net of NCI, 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** | **March 31, 2026** | **March 31, 2026** | December 31, 2025 | December 31, 2025 |
| ($ millions and post-tax, unless otherwise stated) | -10% | +10% | -10% | +10% |
| CSM net of NCI (pre-tax) | **$(200)** | **$200** | $(200) | $200 |
| Net income attributed to shareholders | **(2200)** | **2200** | (2200) | 2200 |
| Other comprehensive income attributed to shareholders | **(200)** | **200** | (200) | 200 |
| Total comprehensive income attributed to shareholders | **(2400)** | **2400** | (2400) | 2400 |

---

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

**Potential immediate impact on MLI LICAT ratio arising from changes in ALDA market values**<sup>(1)</sup>

---

| | | | | |
|:---|:---|:---|:---|:---|
| **As at** | **March 31, 2026** | **March 31, 2026** | December 31, 2025 | December 31, 2025 |
| (change in percentage points)  | -10% | +10% | -10% | +10% |
| MLI's LICAT ratio  | **(1)** | **-** | (1) | - |

---

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

Manulife Financial Corporation – First Quarter 2026 25

**DCRITICAL ACTUARIAL AND ACCOUNTING POLICIES**

**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, 2025. The critical actuarial policies and estimation processes relating to the determination of insurance and

investment contract liabilities are described starting on page 92 of our 2025 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 100 of our 2025 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 of NCI, 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 did not change from the previous period.

The analysis is based on a simultaneous change in assumptions across all businesses and holds all other assumptions

constant. In practice, experience for each assumption will frequently vary by geographic market and business, and assumption

updates are specifically 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 CSM net of NCI, 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 March 31, 2026** | CSM net of NCI <br>(pre tax) | 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 and post-tax, unless otherwise stated)  | CSM net of NCI <br>(pre tax) | 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, 2025<br>($ millions and post-tax, unless otherwise stated) <br>| CSM net of NCI <br>(pre-tax)<br>| 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 accounting and reporting changes arising during the quarter, refer to note 2 of our unaudited Interim Consolidated

Financial Statements for the three months ended March 31, 2026.

**EOTHER**

**E1Outstanding Common Shares – Selected Information** 

As at April 30, 2026, MFC had 1,668,890,514 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 months ended

March 31, 2026.

Manulife Financial Corporation – First Quarter 2026 26

**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; 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; CSM; CSM net of NCI and new business

CSM.

**Non-GAAP ratios** include core return on common shareholders' equity ("core ROE"); diluted core earnings per common share

("core EPS"); financial leverage ratio; adjusted book value per common share; common share core dividend payout ratio

("dividend payout ratio"); expense efficiency ratio; core EBITDA margin; growth in the CSM net of NCI from organic CSM

movement; 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, and certain items such as the net impact of updates to actuarial

methods and assumptions that flow directly through income as well as 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 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.

Core earnings include 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 March 31, 2026.

Manulife Financial Corporation – First Quarter 2026 27

While core earnings are relevant to how we manage our business and offer 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 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.

**•**Gains (charges) related to certain changes in foreign exchange rates.

2. Updates to 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. Amortization and impairment of intangible assets acquired in a business combination, except for amortization of software

and distribution agreements. Commencing 3Q25, this item is now excluded from core earnings to better represent the

underlying earnings capacity of acquired businesses, consistent with our definition of core earnings, and to better align

with industry practice. Prior periods have not been restated as these amounts are not considered material, and use the

definition of core earnings in effect for those periods.

4. 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.

5. The fair value changes in long-term investment plan obligations for Global WAM investment management.

6. Goodwill impairment charges.

7. Gains or losses on acquisition and disposition of a business.

Manulife Financial Corporation – First Quarter 2026 28

8. One-time only adjustments, including highly unusual/extraordinary legal settlements and restructuring charges, or other

items that are exceptional in nature.

9. Tax on the above items.

10. Net income (loss) attributed to participating shareholders and non-controlling interests.

11. Impact of enacted or substantively enacted income tax rate changes.

**Reconciliation of core earnings to net income attributed to shareholders – 1Q26**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **1Q26** | **1Q26** | **1Q26** | **1Q26** | **1Q26** | **1Q26** |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| Income (loss) before income taxes | **$776** | **$325** | **$159** | **$489** | **$(283)** | **$1466** |
| Income tax (expenses) recoveries |  |  |  |  |  |  |
| Core earnings | **(100)** | **(88)** | **(78)** | **(88)** | **42** | **(312)** |
| Items excluded from core earnings | **(27)** | **26** | **57** | **12** | **14** | **82** |
| Income tax (expenses) recoveries | **(127)** | **(62)** | **(21)** | **(76)** | **56** | **(230)** |
| **Net income (post-tax)** | **649** | **263** | **138** | **413** | **(227)** | **1236** |
| Less: Net income (post-tax) attributed to |  |  |  |  |  |  |
| Non-controlling interests | **33** | **-** | **-** | **10** | **-** | **43** |
| Participating policyholders | **21** | **25** | **-** | **-** | **-** | **46** |
| **Net income (loss) attributed to shareholders (post-tax)** | **595** | **238** | **138** | **403** | **(227)** | **1147** |
| Less: Items excluded from core earnings (post-tax) |  |  |  |  |  |  |
| Market experience gains (losses) | **(225)** | **(114)** | **(193)** | **(22)** | **(112)** | **(666)** |
| Changes in actuarial methods and assumptions that flow <br>directly through income<br>| **-** | **-** | **-** | **-** | **-** | **-** |
| Restructuring charge | **-** | **-** | **-** | **-** | **-** | **-** |
| Amortization of acquisition-related intangible assets  | **-** | **-** | **-** | **(18)** | **-** | **(18)** |
| Reinsurance transactions, tax-related items and other | **-** | **-** | **-** | **(5)** | **-** | **(5)** |
| **Core earnings (post-tax)** | **$820** | **$352** | **$331** | **$448** | **$(115)** | **$1836** |
| Income tax on core earnings (see above) | **100** | **88** | **78** | **88** | **(42)** | **312** |
| **Core earnings (pre-tax)** | **$920** | **$440** | **$409** | **$536** | **$(157)** | **$2148** |

---

**Core earnings, CER basis and U.S. dollars – 1Q26**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **1Q26** | **1Q26** | **1Q26** | **1Q26** | **1Q26** | **1Q26** |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| **Core earnings (post-tax)** | **$820** | **$352** | **$331** | **$448** | **$(115)** | **$1836** |
| CER adjustment<sup>(1)</sup> | **-** | **-** | **-** | **-** | **-** | **-** |
| **Core earnings, CER basis (post-tax)** | **$820** | **$352** | **$331** | **$448** | **$(115)** | **$1836** |
| Income tax on core earnings, CER basis<sup>(2)</sup> | **100** | **88** | **78** | **88** | **(42)** | **312** |
| **Core earnings, CER basis (pre-tax)** | **$920** | **$440** | **$409** | **$536** | **$(157)** | **$2148** |
| **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 $** | **$598** |  | **$241** |  |  |  |
| CER adjustment US $<sup>(1)</sup> | **-** |  | **-** |  |  |  |
| **Core earnings, CER basis (post-tax), US $** | **$598** |  | **$241** |  |  |  |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 1Q26.

<sup>(2)</sup> Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q26.

<sup>(3)</sup> Core earnings (post-tax) in Canadian $ are translated to US$ using the US$ Statement of Income exchange rate for 1Q26.

Manulife Financial Corporation – First Quarter 2026 29

**Reconciliation of core earnings to net income attributed to shareholders – 4Q25**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 4Q25 | 4Q25 | 4Q25 | 4Q25 | 4Q25 | 4Q25 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| Income (loss) before income taxes | $899 | $354 | $101 | $542 | $9 | $1905 |
| Income tax (expenses) recoveries |  |  |  |  |  |  |
| Core earnings | (101) | (111) | (75) | (93) | 52 | (328) |
| Items excluded from core earnings | (102) | 25 | 55 | 10 | 30 | 18 |
| Income tax (expenses) recoveries | (203) | (86) | (20) | (83) | 82 | (310) |
| **Net income (post-tax)** | 696 | 268 | 81 | 459 | 91 | 1595 |
| Less: Net income (post-tax) attributed to |  |  |  |  |  |  |
| Non-controlling interests | 26 | - | - | 7 | - | 33 |
| Participating policyholders | 47 | 16 | - | - | - | 63 |
| **Net income (loss) attributed to shareholders (post-tax)** | 623 | 252 | 81 | 452 | 91 | 1499 |
| Less: Items excluded from core earnings (post-tax) |  |  |  |  |  |  |
| Market experience gains (losses) | (121) | (158) | (238) | (1) | 77 | (441) |
| Changes in actuarial methods and assumptions that flow <br>directly through income<br>| - | - | - | - | - | - |
| Restructuring charge | - | (3) | - | (9) | - | (12) |
| Amortization of acquisition-related intangible assets | - | - | - | (12) | - | (12) |
| Reinsurance transactions, tax-related items and other | (41) | - | - | (16) | 28 | (29) |
| **Core earnings (post-tax)** | $785 | $413 | $319 | $490 | $(14) | $1993 |
| Income tax on core earnings (see above) | 101 | 111 | 75 | 93 | (52) | 328 |
| **Core earnings (pre-tax)** | $886 | $524 | $394 | $583 | $(66) | $2321 |

---

**Core earnings, CER basis and U.S. dollars – 4Q25**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 4Q25 | 4Q25 | 4Q25 | 4Q25 | 4Q25 | 4Q25 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| **Core earnings (post-tax)** | $785 | $413 | $319 | $490 | $(14) | $1993 |
| CER adjustment<sup>(1)</sup> | (14) | - | (6) | (6) | (1) | (27) |
| **Core earnings, CER basis (post-tax)** | $771 | $413 | $313 | $484 | $(15) | $1966 |
| Income tax on core earnings, CER basis<sup>(2)</sup> | 99 | 111 | 74 | 92 | (52) | 324 |
| **Core earnings, CER basis (pre-tax)** | $870 | $524 | $387 | $576 | $(67) | $2290 |
| **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 $** | $564 |  | $229 |  |  |  |
| CER adjustment US $<sup>(1)</sup> | (1) |  | (1) |  |  |  |
| **Core earnings, CER basis (post-tax), US $** | $563 |  | $228 |  |  |  |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 1Q26.

<sup>(2)</sup> Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q26.

<sup>(3)</sup> Core earnings (post-tax) in Canadian $ are translated to US$ using the US$ Statement of Income exchange rate for 4Q25.

Manulife Financial Corporation – First Quarter 2026 30

**Reconciliation of core earnings to net income attributed to shareholders – 3Q25**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 3Q25 | 3Q25 | 3Q25 | 3Q25 | 3Q25 | 3Q25 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| Income (loss) before income taxes | $1268 | $551 | $(109) | $606 | $(87) | $2229 |
| Income tax (expenses) recoveries |  |  |  |  |  |  |
| Core earnings | (93) | (119) | (79) | (82) | 91 | (282) |
| Items excluded from core earnings | (140) | (5) | 113 | 1 | 3 | (28) |
| Income tax (expenses) recoveries | (233) | (124) | 34 | (81) | 94 | (310) |
| **Net income (post-tax)** | 1035 | 427 | (75) | 525 | 7 | 1919 |
| Less: Net income (post-tax) attributed to |  |  |  |  |  |  |
| Non-controlling interests | 128 | - | - | 2 | - | 130 |
| Participating policyholders | 12 | (22) | - | - | - | (10) |
| **Net income (loss) attributed to shareholders (post-tax)** | 895 | 449 | (75) | 523 | 7 | 1799 |
| Less: Items excluded from core earnings (post-tax) |  |  |  |  |  |  |
| Market experience gains (losses) | 173 | (37) | (172) | 18 | 16 | (2) |
| Changes in actuarial methods and assumptions that flow <br>directly through income<br>| (39) | 58 | (235) | - | - | (216) |
| Restructuring charge | - | - | - | - | - | - |
| Amortization of acquisition-related intangible assets | - | - | - | (6) | - | (6) |
| Reinsurance transactions, tax-related items and other | 2 | - | - | (14) | - | (12) |
| **Core earnings (post-tax)** | $759 | $428 | $332 | $525 | $(9) | $2035 |
| Income tax on core earnings (see above) | 93 | 119 | 79 | 82 | (91) | 282 |
| **Core earnings (pre-tax)** | $852 | $547 | $411 | $607 | $(100) | $2317 |

---

**Core earnings, CER basis and U.S. dollars – 3Q25**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 3Q25 | 3Q25 | 3Q25 | 3Q25 | 3Q25 | 3Q25 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| **Core earnings (post-tax)** | $759 | $428 | $332 | $525 | $(9) | $2035 |
| CER adjustment<sup>(1)</sup> | (12) | - | (1) | (3) | - | (16) |
| **Core earnings, CER basis (post-tax)** | $747 | $428 | $331 | $522 | $(9) | $2019 |
| Income tax on core earnings, CER basis<sup>(2)</sup> | 92 | 119 | 79 | 82 | (90) | 282 |
| **Core earnings, CER basis (pre-tax)** | $839 | $547 | $410 | $604 | $(99) | $2301 |
| **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 $** | $550 |  | $241 |  |  |  |
| CER adjustment US $<sup>(1)</sup> | (6) |  | 1 |  |  |  |
| **Core earnings, CER basis (post-tax), US $** | $544 |  | $242 |  |  |  |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 1Q26.

<sup>(2)</sup> Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q26.

<sup>(3)</sup> Core earnings (post-tax) in Canadian $ are translated to US$ using the US$ Statement of Income exchange rate for 3Q25.

Manulife Financial Corporation – First Quarter 2026 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 | - | - | - | - | - | - |
| Amortization of acquisition-related intangible assets | - | - | - | - | - | - |
| 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> | (16) | - | (1) | (4) | - | (21) |
| **Core earnings, CER basis (post-tax)** | $704 | $419 | $193 | $459 | $(70) | $1705 |
| Income tax on core earnings, CER basis<sup>(2)</sup> | 92 | 110 | 37 | 88 | (33) | 294 |
| **Core earnings, CER basis (pre-tax)** | $796 | $529 | $230 | $547 | $(103) | $1999 |
| **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> | (7) |  | (1) |  |  |  |
| **Core earnings, CER basis (post-tax), US $** | $513 |  | $140 |  |  |  |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 1Q26.

<sup>(2)</sup> Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q26.

<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 – First Quarter 2026 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 | - | - | - | - | - | - |
| Amortization of acquisition-related intangible assets | - | - | - | - | - | - |
| 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> | (31) | - | (16) | (15) | - | (62) |
| **Core earnings, CER basis (post-tax)** | $674 | $374 | $345 | $439 | $(127) | $1705 |
| Income tax on core earnings, CER basis<sup>(2)</sup> | 96 | 89 | 80 | 84 | (28) | 321 |
| **Core earnings, CER basis (pre-tax)** | $770 | $463 | $425 | $523 | $(155) | $2026 |
| **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> | - |  | 1 |  |  |  |
| **Core earnings, CER basis (post-tax), US $** | $492 |  | $252 |  |  |  |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 1Q26.

<sup>(2)</sup> Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q26.

<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 – First Quarter 2026 33

**Reconciliation of core earnings to net income attributed to shareholders – 2025**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2025 | 2025 | 2025 | 2025 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| Income (loss) before income taxes | $4129 | $1736 | $(708) | $2251 | $(314) | $7094 |
| Income tax (expenses) recoveries |  |  |  |  |  |  |
| Core earnings | (389) | (429) | (275) | (350) | 204 | (1239) |
| Items excluded from core earnings | (327) | 45 | 456 | 9 | 22 | 205 |
| Income tax (expenses) recoveries | (716) | (384) | 181 | (341) | 226 | (1034) |
| **Net income (post-tax)** | 3413 | 1352 | (527) | 1910 | (88) | 6060 |
| Less: Net income (post-tax) attributed to |  |  |  |  |  |  |
| Non-controlling interests | 270 | - | - | 10 | (2) | 278 |
| Participating policyholders | 171 | 39 | - | - | - | 210 |
| **Net income (loss) attributed to shareholders (post-tax)** | 2972 | 1313 | (527) | 1900 | (86) | 5572 |
| Less: Items excluded from core earnings (post-tax) |  |  |  |  |  |  |
| Market experience gains (losses) | 136 | (374) | (1498) | 22 | 52 | (1662) |
| Changes in actuarial methods and assumptions that flow <br>directly through income<br>| (39) | 58 | (235) | - | - | (216) |
| Restructuring charge | - | (3) | - | (9) | - | (12) |
| Amortization of acquisition-related intangible assets | - | - | - | (18) | - | (18) |
| Reinsurance transactions, tax-related items and other | (94) | (2) | - | (27) | 82 | (41) |
| **Core earnings (post-tax)** | $2969 | $1634 | $1206 | $1932 | $(220) | $7521 |
| Income tax on core earnings (see above) | 389 | 429 | 275 | 350 | (204) | 1239 |
| **Core earnings (pre-tax)** | $3358 | $2063 | $1481 | $2282 | $(424) | $8760 |

---

**Core earnings, CER basis and U.S. dollars – 2025**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2025 | 2025 | 2025 | 2025 |
|  | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  |
| **Core earnings (post-tax)** | $2969 | $1634 | $1206 | $1932 | $(220) | $7521 |
| CER adjustment<sup>(1)</sup> | (73) | - | (24) | (28) | (1) | (126) |
| **Core earnings, CER basis (post-tax)** | $2896 | $1634 | $1182 | $1904 | $(221) | $7395 |
| Income tax on core earnings, CER basis<sup>(2)</sup> | 379 | 429 | 270 | 346 | (203) | 1221 |
| **Core earnings, CER basis (pre-tax)** | $3275 | $2063 | $1452 | $2250 | $(424) | $8616 |
| **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 $** | $2126 |  | $862 |  |  |  |
| CER adjustment US $<sup>(1)</sup> | (14) |  | - |  |  |  |
| **Core earnings, CER basis (post-tax), US $** | $2112 |  | $862 |  |  |  |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 1Q26.

<sup>(2)</sup> Income tax on core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q26.

<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

2025 core earnings.

Manulife Financial Corporation – First Quarter 2026 34

**Segment core earnings by business line or geographic source**

($ 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** | **Full Year** <br>**Results**<br>|
| (US $ millions) | **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| Hong Kong | **$324** | $318 | $298 | $259 | $256 | $1131 |
| Japan | **114** | 108 | 103 | 97 | 87 | 395 |
| Asia Other<sup>(1)</sup> | **164** | 164 | 157 | 159 | 149 | 629 |
| *Mainland China* |  |  |  |  |  | *61* |
| *Singapore* |  |  |  |  |  | *238* |
| *Other*<sup>(2)</sup> |  |  |  |  |  | *330* |
| Regional Office | **(4)** | (26) | (8) | 5 | - | (29) |
| **Total Asia core earnings** | **$598** | $564 | $550 | $520 | $492 | $2126 |

---

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

<sup>(2)</sup> Other includes Cambodia, Indonesia, International High Net Worth, Malaysia, Myanmar, the Philippines, and Vietnam.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Full Year** <br>**Results**<br>|
| (US $ millions), CER basis<sup>(1)</sup> | **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| Hong Kong | **$324** | $318 | $298 | $259 | $256 | $1131 |
| Japan | **114** | 106 | 97 | 89 | 85 | 377 |
| Asia Other<sup>(2)</sup> | **164** | 165 | 157 | 160 | 151 | 633 |
| *Mainland China* |  |  |  |  |  | *63* |
| *Singapore* |  |  |  |  |  | *243* |
| *Other*<sup>(3)</sup> |  |  |  |  |  | *327* |
| Regional Office | **(4)** | (26) | (8) | 5 | - | (29) |
| **Total Asia core earnings, CER basis** | **$598** | $563 | $544 | $513 | $492 | $2112 |

---

<sup>(1)</sup> Core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q26.

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

<sup>(3)</sup> Other includes Cambodia, Indonesia, International High Net Worth, Malaysia, Myanmar, the Philippines, and Vietnam.

**Canada**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Full Year** <br>**Results**<br>|
| (Canadian $ in millions) | **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| Insurance | **$261** | $320 | $326 | $326 | $280 | $1252 |
| Annuities | **56** | 57 | 62 | 56 | 58 | 233 |
| Manulife Bank | **35** | 36 | 40 | 37 | 36 | 149 |
| **Total Canada core earnings** | **$352** | $413 | $428 | $419 | $374 | $1634 |

---

**U.S.**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Full Year** <br>**Results** <br>|
| (US $ in millions) | **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| U.S. Insurance | **$219** | $200 | $218 | $114 | $229 | $761 |
| U.S. Annuities | **22** | 29 | 23 | 27 | 22 | 101 |
| **Total U.S. core earnings** | **$241** | $229 | $241 | $141 | $251 | $862 |

---

**Global WAM by business line**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Full Year** <br>**Results**<br>|
| (Canadian $ in millions) | **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| Retirement | **$247** | $268 | $305 | $265 | $263 | $1101 |
| Retail | **137** | 155 | 154 | 145 | 141 | 595 |
| Institutional asset management | **64** | 67 | 66 | 53 | 50 | 236 |
| **Total Global WAM core earnings** | **$448** | $490 | $525 | $463 | $454 | $1932 |
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Full Year** <br>**Results**<br>|
| (Canadian $ in millions), CER basis<sup>(1)</sup> | **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| Retirement | **$247** | $266 | $304 | $263 | $254 | $1087 |
| Retail | **137** | 154 | 152 | 144 | 137 | 587 |
| Institutional asset management | **64** | 64 | 66 | 52 | 48 | 230 |
| **Total Global WAM core earnings, CER basis** | **$448** | $484 | $522 | $459 | $439 | $1904 |

---

<sup>(1)</sup> Core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q26.

Manulife Financial Corporation – First Quarter 2026 35

**Global WAM by geographic source**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Full Year** <br>**Results**<br>|
| (Canadian $ in millions) | **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| Asia | **$87** | $116 | $149 | $126 | $138 | $529 |
| Canada | **112** | 117 | 124 | 109 | 110 | 460 |
| U.S. | **249** | 257 | 252 | 228 | 206 | 943 |
| Total Global WAM core earnings | **$448** | $490 | $525 | $463 | $454 | $1932 |
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Full Year** <br>**Results**<br>|
| (Canadian $ in millions), CER basis<sup>(1)</sup> | **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| Asia | **$87** | $113 | $148 | $124 | $132 | $517 |
| Canada | **112** | 117 | 124 | 109 | 110 | 460 |
| U.S. | **249** | 254 | 250 | 226 | 197 | 927 |
| Total Global WAM core earnings, CER basis | **$448** | $484 | $522 | $459 | $439 | $1904 |

---

<sup>(1)</sup> Core earnings adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q26.

**Core earnings available to common shareholders** is a financial measure that is used in the calculation of core ROE and

core EPS. It is calculated as core earnings (post-tax) less preferred share dividends and other equity distributions.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ($ millions, post-tax and based on actual foreign exchange rates in effect in the <br>applicable reporting period, unless otherwise stated) | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Full Year** <br>**Results**<br>|
| ($ millions, post-tax and based on actual foreign exchange rates in effect in the <br>applicable reporting period, unless otherwise stated) | **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| Core earnings | **$1836** | $1993 | $2035 | $1726 | $1767 | $7521 |
| Less: Preferred share dividends and other equity distributions<sup>(1)</sup> | **58** | 103 | 58 | 103 | 57 | 321 |
| **Core earnings available to common shareholders** | **1778** | 1890 | 1977 | 1623 | 1710 | 7200 |
| CER adjustment<sup>(2)</sup> | **-** | (27) | (16) | (21) | (62) | (126) |
| **Core earnings available to common shareholders, CER basis** | **$1778** | $1863 | $1961 | $1602 | $1648 | $7074 |

---

<sup>(1)</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>(2)</sup> The impact of updating foreign exchange rates to that which was used in 1Q26.

Manulife Financial Corporation – First Quarter 2026 36

**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.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| ($ millions, unless otherwise stated) | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Full Year** <br>**Results**<br>|
| ($ millions, unless otherwise stated) | **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| Core earnings available to common shareholders | **$1778** | $1890 | $1977 | $1623 | $1710 | $7200 |
| **Annualized core earnings available to common** <br>**shareholders (post-tax)**<br>| **$7211** | $7498 | $7844 | $6510 | $6935 | $7200 |
| **Average common shareholders' equity (see below)** | **$43717** | $43759 | $43238 | $43448 | $44394 | $43709 |
| **Core ROE (annualized) (%)** | **16.5%** | 17.1% | 18.1% | 15.0% | 15.6% | 16.5% |
| **Average common shareholders' equity** |  |  |  |  |  |  |
| Total shareholders' and other equity | **$50632** | $50121 | $50716 | $49080 | $51135 | $50121 |
| Less: Preferred shares and other equity | **6660** | 6660 | 6660 | 6660 | 6660 | 6660 |
| **Common shareholders' equity** | **$43972** | $43461 | $44056 | $42420 | $44475 | $43461 |
| **Average common shareholders' equity** | **$43717** | $43759 | $43238 | $43448 | $44394 | $43709 |

---

**Core EPS** is equal to core earnings available to common shareholders divided by diluted weighted average common shares

outstanding.

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** | **Full Year** <br>**Results**<br>|
|  | **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| Per share dividend | **$0.49** | $0.44 | $0.44 | $0.44 | $0.44 | $1.76 |
| Core EPS | **$1.06** | $1.12 | $1.16 | $0.95 | $0.99 | $4.21 |
| Common share core dividend payout ratio | **46%** | 39% | 38% | 46% | 44% | 42% |

---

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 first quarter of 2026.

Information supporting constant exchange rate basis for GAAP and non-GAAP financial measures is presented throughout this

section.

**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 – First Quarter 2026 37

**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 CSM 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.**

**•Amortization and impairment of intangible assets acquired in a business combination**, except for amortization of

software and distribution agreements. As noted above, this item is now excluded from core earnings commencing in 3Q25

to better represent the underlying earnings capacity of acquired businesses, consistent with our definition of core

earnings, and to better align with industry practice. Prior periods have not been restated as these amounts are not

considered material, and use the definition of core earnings in effect for those periods.

**•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 – First Quarter 2026 38

**DOE Reconciliation – 1Q26**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **1Q26** | **1Q26** | **1Q26** | **1Q26** | **1Q26** | **1Q26** |
|  | 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 | **$649** | **$282** | **$213** | **$-** | **$20** | **$1164** |
| Less: Insurance service result attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | **(47)** | **(3)** | **23** | **-** | **1** | **(26)** |
| NCI | **24** | **-** | **-** | **-** | **-** | **24** |
| Participating policyholders | **72** | **24** | **-** | **-** | **-** | **96** |
| **Core net insurance service result** | **600** | **261** | **190** | **-** | **19** | **1070** |
| Core net insurance service result, CER adjustment<sup>(1)</sup> | **-** | **-** | **-** | **-** | **-** | **-** |
| **Core net insurance service result, CER basis** | **$600** | **$261** | **$190** | **$-** | **$19** | **$1070** |
| **Total investment result reconciliation** |  |  |  |  |  |  |
| Total investment result per financial statements | **$193** | **$366** | **$(45)** | **$(276)** | **$179** | **$417** |
| Less: Reclassify Manulife Bank<sup>(2)</sup> and Global WAM to their own DOE lines | **-** | **349** | **-** | **(276)** | **-** | **73** |
| Add: Consolidation and other adjustments from Other DOE line | **-** | **-** | **4** | **-** | **(153)** | **(149)** |
| Less: Net investment result attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | **(188)** | **(129)** | **(284)** | **-** | **(38)** | **(639)** |
| NCI | **(1)** | **-** | **-** | **-** | **-** | **(1)** |
| Participating policyholders | **5** | **(7)** | **-** | **-** | **-** | **(2)** |
| **Core net investment result** | **377** | **153** | **243** | **-** | **64** | **837** |
| Core net investment result, CER adjustment<sup>(1)</sup> | **-** | **-** | **-** | **-** | **-** | **-** |
| **Core net investment result, CER basis** | **$377** | **$153** | **$243** | **$-** | **$64** | **$837** |
| **Manulife Bank and Global WAM by DOE line reconciliation** |  |  |  |  |  |  |
| Manulife Bank and Global WAM net income attributed to shareholders | **$-** | **$51** | **$-** | **$479** | **$-** | **$530** |
| Less: Manulife Bank and Global WAM attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | **-** | **3** | **-** | **(57)** | **-** | **(54)** |
| **Core earnings in Manulife Bank and Global WAM** | **-** | **48** | **-** | **536** | **-** | **584** |
| Core earnings in Manulife Bank and Global WAM, CER adjustment<sup>(1)</sup> | **-** | **-** | **-** | **-** | **-** | **-** |
| **Core earnings in Manulife Bank and Global WAM, CER basis** | **$-** | **$48** | **$-** | **$536** | **$-** | **$584** |
| **Other reconciliation** |  |  |  |  |  |  |
| Other revenue per financial statements | **$34** | **$75** | **$38** | **$1986** | **$(203)** | **$1930** |
| General expenses per financial statements | **(90)** | **(156)** | **(46)** | **(828)** | **(131)** | **(1251)** |
| Commissions related to non-insurance contracts | **(6)** | **(19)** | **2** | **(392)** | **10** | **(405)** |
| Interest expenses per financial statements | **(4)** | **(223)** | **(3)** | **(1)** | **(158)** | **(389)** |
| Total financial statements values included in Other | **(66)** | **(323)** | **(9)** | **765** | **(482)** | **(115)** |
| Less: Reclassifications: |  |  |  |  |  |  |
| Manulife Bank and Global WAM to their own DOE lines | **-** | **(298)** | **-** | **755** | **-** | **457** |
| Consolidation and other adjustments to net investment result DOE line | **-** | **-** | **4** | **-** | **(153)** | **(149)** |
| Less: Other attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | **9** | **1** | **11** | **-** | **(89)** | **(68)** |
| NCI | **4** | **-** | **-** | **10** | **-** | **14** |
| Participating policyholders | **(2)** | **(1)** | **-** | **-** | **-** | **(3)** |
| Add: Participating policyholders' earnings transfer to shareholders | **20** | **3** | **-** | **-** | **-** | **23** |
| **Other core earnings** | **(57)** | **(22)** | **(24)** | **-** | **(240)** | **(343)** |
| Other core earnings, CER adjustment<sup>(1)</sup> | **-** | **-** | **-** | **-** | **-** | **-** |
| **Other core earnings, CER basis** | **$(57)** | **$(22)** | **$(24)** | **$-** | **$(240)** | **$(343)** |
| **Income tax (expenses) recoveries reconciliation** |  |  |  |  |  |  |
| Income tax (expenses) recoveries per financial statements | **$(127)** | **$(62)** | **$(21)** | **$(76)** | **$56** | **$(230)** |
| Less: Income tax (expenses) recoveries attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | **1** | **14** | **57** | **12** | **14** | **98** |
| NCI | **6** | **-** | **-** | **-** | **-** | **6** |
| Participating policyholders | **(34)** | **12** | **-** | **-** | **-** | **(22)** |
| **Core income tax (expenses) recoveries** | **(100)** | **(88)** | **(78)** | **(88)** | **42** | **(312)** |
| Core income tax (expenses) recoveries, CER adjustment<sup>(1)</sup> | **-** | **-** | **-** | **-** | **-** | **-** |
| **Core income tax (expenses) recoveries, CER basis** | **$(100)** | **$(88)** | **$(78)** | **$(88)** | **$42** | **$(312)** |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 1Q26.

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

Manulife Financial Corporation – First Quarter 2026 39

**DOE Reconciliation – 4Q25**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 4Q25 | 4Q25 | 4Q25 | 4Q25 | 4Q25 | 4Q25 |
|  | 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 | $692 | $362 | $136 | $- | $66 | $1256 |
| Less: Insurance service result attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | (4) | (2) | 23 | - | (2) | 15 |
| NCI | 20 | - | - | - | - | 20 |
| Participating policyholders | 70 | 25 | - | - | - | 95 |
| **Core net insurance service result** | 606 | 339 | 113 | - | 68 | 1126 |
| Core net insurance service result, CER adjustment<sup>(1)</sup> | (11) | - | (2) | - | (1) | (14) |
| **Core net insurance service result, CER basis** | $595 | $339 | $111 | $- | $67 | $1112 |
| **Total investment result reconciliation** |  |  |  |  |  |  |
| Total investment result per financial statements | $322 | $316 | $(38) | $(287) | $325 | $638 |
| Less: Reclassify Manulife Bank<sup>(2)</sup> and Global WAM to their own DOE lines | - | 341 | - | (287) | - | 54 |
| Add: Consolidation and other adjustments from Other DOE line | 1 | (1) | 27 | - | (181) | (154) |
| Less: Net investment result attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | (63) | (175) | (309) | - | 53 | (494) |
| NCI | 8 | - | - | - | - | 8 |
| Participating policyholders | 6 | (7) | - | - | - | (1) |
| **Core net investment result** | 372 | 156 | 298 | - | 91 | 917 |
| Core net investment result, CER adjustment<sup>(1)</sup> | (6) | - | (5) | - | (1) | (12) |
| **Core net investment result, CER basis** | $366 | $156 | $293 | $- | $90 | $905 |
| **Manulife Bank and Global WAM by DOE line reconciliation** |  |  |  |  |  |  |
| Manulife Bank and Global WAM net income attributed to shareholders | $- | $50 | $- | $536 | $- | $586 |
| Less: Manulife Bank and Global WAM attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | - | (1) | - | (47) | - | (48) |
| **Core earnings in Manulife Bank and Global WAM** | - | 51 | - | 583 | - | 634 |
| Core earnings in Manulife Bank and Global WAM, CER adjustment<sup>(1)</sup> | - | - | - | (7) | - | (7) |
| **Core earnings in Manulife Bank and Global WAM, CER basis** | $- | $51 | $- | $576 | $- | $627 |
| **Other reconciliation** |  |  |  |  |  |  |
| Other revenue per financial statements | $31 | $70 | $39 | $2119 | $(112) | $2147 |
| General expenses per financial statements | (119) | (159) | (39) | (889) | (121) | (1327) |
| Commissions related to non-insurance contracts | (1) | (18) | 6 | (399) | 8 | (404) |
| Interest expenses per financial statements | (26) | (217) | (3) | (1) | (158) | (405) |
| Total financial statements values included in Other | (115) | (324) | 3 | 830 | (383) | 11 |
| Less: Reclassifications: |  |  |  |  |  |  |
| Manulife Bank and Global WAM to their own DOE lines | - | (291) | - | 823 | - | 532 |
| Consolidation and other adjustments to net investment result DOE line | 1 | (1) | 27 | - | (182) | (155) |
| Less: Other attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | (11) | (8) | (7) | - | 24 | (2) |
| NCI | 4 | - | - | 7 | - | 11 |
| Participating policyholders | (2) | 3 | - | - | - | 1 |
| Add: Participating policyholders' earnings transfer to shareholders | 15 | 5 | - | - | - | 20 |
| **Other core earnings** | (92) | (22) | (17) | - | (225) | (356) |
| Other core earnings, CER adjustment<sup>(1)</sup> | 1 | - | - | - | 1 | 2 |
| **Other core earnings, CER basis** | $(91) | $(22) | $(17) | $- | $(224) | $(354) |
| **Income tax (expenses) recoveries reconciliation** |  |  |  |  |  |  |
| Income tax (expenses) recoveries per financial statements | $(203) | $(86) | $(20) | $(83) | $82 | $(310) |
| Less: Income tax (expenses) recoveries attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | (84) | 25 | 55 | 10 | 30 | 36 |
| NCI | (6) | - | - | - | - | (6) |
| Participating policyholders | (12) | - | - | - | - | (12) |
| **Core income tax (expenses) recoveries** | (101) | (111) | (75) | (93) | 52 | (328) |
| Core income tax (expenses) recoveries, CER adjustment<sup>(1)</sup> | 2 | - | 1 | 1 | - | 4 |
| **Core income tax (expenses) recoveries, CER basis** | $(99) | $(111) | $(74) | $(92) | $52 | $(324) |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 1Q26.

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

Manulife Financial Corporation – First Quarter 2026 40

**DOE Reconciliation – 3Q25**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 3Q25 | 3Q25 | 3Q25 | 3Q25 | 3Q25 | 3Q25 |
|  | 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 | $641 | $465 | $72 | $- | $43 | $1221 |
| Less: Insurance service result attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | (19) | 88 | 4 | - | 1 | 74 |
| NCI | 22 | - | - | - | - | 22 |
| Participating policyholders | 60 | 26 | - | - | - | 86 |
| **Core net insurance service result** | 578 | 351 | 68 | - | 42 | 1039 |
| Core net insurance service result, CER adjustment<sup>(1)</sup> | (7) | - | - | - | - | (7) |
| **Core net insurance service result, CER basis** | $571 | $351 | $68 | $- | $42 | $1032 |
| **Total investment result reconciliation** |  |  |  |  |  |  |
| Total investment result per financial statements | $653 | $402 | $(205) | $(210) | $229 | $869 |
| Less: Reclassify Manulife Bank<sup>(2)</sup> and Global WAM to their own DOE lines | - | 353 | - | (210) | - | 143 |
| Add: Consolidation and other adjustments from Other DOE line | (2) | 1 | 25 | - | (173) | (149) |
| Less: Net investment result attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | 202 | (48) | (548) | (1) | (30) | (425) |
| NCI | 134 | - | - | 1 | - | 135 |
| Participating policyholders | (16) | (67) | - | - | - | (83) |
| **Core net investment result** | 331 | 165 | 368 | - | 86 | 950 |
| Core net investment result, CER adjustment<sup>(1)</sup> | (6) | - | (1) | - | - | (7) |
| **Core net investment result, CER basis** | $325 | $165 | $367 | $- | $86 | $943 |
| **Manulife Bank and Global WAM by DOE line reconciliation** |  |  |  |  |  |  |
| Manulife Bank and Global WAM net income attributed to shareholders | $- | $58 | $- | $607 | $- | $665 |
| Less: Manulife Bank and Global WAM attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | - | 4 | - | - | - | 4 |
| **Core earnings in Manulife Bank and Global WAM** | - | 54 | - | 607 | - | 661 |
| Core earnings in Manulife Bank and Global WAM, CER adjustment<sup>(1)</sup> | - | - | - | (3) | - | (3) |
| **Core earnings in Manulife Bank and Global WAM, CER basis** | $- | $54 | $- | $604 | $- | $658 |
| **Other reconciliation** |  |  |  |  |  |  |
| Other revenue per financial statements | $73 | $72 | $63 | $2024 | $(87) | $2145 |
| General expenses per financial statements | (94) | (152) | (43) | (818) | (125) | (1232) |
| Commissions related to non-insurance contracts | (1) | (15) | 7 | (390) | 13 | (386) |
| Interest expenses per financial statements | (4) | (221) | (3) | - | (160) | (388) |
| Total financial statements values included in Other | (26) | (316) | 24 | 816 | (359) | 139 |
| Less: Reclassifications: |  |  |  |  |  |  |
| Manulife Bank and Global WAM to their own DOE lines | - | (295) | - | 816 | - | 521 |
| Consolidation and other adjustments to net investment result DOE line | (2) | 1 | 25 | 1 | (173) | (148) |
| Less: Other attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | 41 | 6 | 24 | (2) | 43 | 112 |
| NCI | 7 | 1 | - | 1 | (1) | 8 |
| Participating policyholders | (2) | (3) | - | - | - | (5) |
| Add: Participating policyholders' earnings transfer to shareholders | 13 | 3 | - | - | - | 16 |
| **Other core earnings** | (57) | (23) | (25) | - | (228) | (333) |
| Other core earnings, CER adjustment<sup>(1)</sup> | - | - | - | - | 1 | 1 |
| **Other core earnings, CER basis** | $(57) | $(23) | $(25) | $- | $(227) | $(332) |
| **Income tax (expenses) recoveries reconciliation** |  |  |  |  |  |  |
| Income tax (expenses) recoveries per financial statements | $(233) | $(124) | $34 | $(81) | $94 | $(310) |
| Less: Income tax (expenses) recoveries attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | (88) | (29) | 113 | 1 | 2 | (1) |
| NCI | (35) | (1) | - | - | 1 | (35) |
| Participating policyholders | (17) | 25 | - | - | - | 8 |
| **Core income tax (expenses) recoveries** | (93) | (119) | (79) | (82) | 91 | (282) |
| Core income tax (expenses) recoveries, CER adjustment<sup>(1)</sup> | 1 | - | - | - | (1) | - |
| **Core income tax (expenses) recoveries, CER basis** | $(92) | $(119) | $(79) | $(82) | $90 | $(282) |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 1Q26.

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

Manulife Financial Corporation – First Quarter 2026 41

**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> | (9) | - | - | - | (1) | (10) |
| **Core net insurance service result, CER basis** | $524 | $345 | $11 | $- | $25 | $905 |
| **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> | (10) | - | (2) | - | - | (12) |
| **Core net investment result, CER basis** | $326 | $153 | $244 | $- | $84 | $807 |
| **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> | - | - | - | (5) | - | (5) |
| **Core earnings in Manulife Bank and Global WAM, CER basis** | $- | $53 | $- | $547 | $- | $600 |
| **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> | 1 | - | 1 | - | - | 2 |
| **Other core earnings, CER basis** | $(54) | $(22) | $(25) | $- | $(212) | $(313) |
| **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> | 2 | - | - | 1 | 1 | 4 |
| **Core income tax (expenses) recoveries, CER basis** | $(92) | $(110) | $(37) | $(88) | $33 | $(294) |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 1Q26.

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

Manulife Financial Corporation – First Quarter 2026 42

**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> | (23) | - | (5) | - | 1 | (27) |
| **Core net insurance service result, CER basis** | $515 | $308 | $109 | $- | $(34) | $898 |
| **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> | (15) | - | (17) | - | - | (32) |
| **Core net investment result, CER basis** | $311 | $131 | $343 | $- | $96 | $881 |
| **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> | - | - | - | (17) | - | (17) |
| **Core earnings in Manulife Bank and Global WAM, CER basis** | $- | $50 | $- | $523 | $- | $573 |
| **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> | 2 | - | 2 | - | - | 4 |
| **Other core earnings, CER basis** | $(56) | $(26) | $(27) | $- | $(217) | $(326) |
| **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> | 5 | - | 4 | 2 | (1) | 10 |
| **Core income tax (expenses) recoveries, CER basis** | $(96) | $(89) | $(80) | $(84) | $28 | $(321) |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 1Q26.

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

Manulife Financial Corporation – First Quarter 2026 43

**DOE Reconciliation – 2025**

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

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2025 | 2025 | 2025 | 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 | $2518 | $1514 | $394 | $- | $100 | $4526 |
| Less: Insurance service result attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | (79) | 81 | 88 | - | (1) | 89 |
| NCI | 85 | - | - | - | - | 85 |
| Participating policyholders | 257 | 90 | - | - | - | 347 |
| **Core net insurance service result** | $2255 | $1343 | $306 | $- | $101 | $4005 |
| Core net insurance service result, CER adjustment<sup>(1)</sup> | (50) | - | (7) | - | (1) | (58) |
| **Core net insurance service result, CER basis** | $2205 | $1343 | $299 | $- | $100 | $3947 |
| **Total investment result reconciliation** |  |  |  |  |  |  |
| Total investment result per financial statements | $2004 | $1449 | $(1083) | $(977) | $1016 | $2409 |
| Less: Reclassify Manulife Bank<sup>(2)</sup> and Global WAM to their own DOE lines | - | 1338 | - | (977) | - | 361 |
| Add: Consolidation and other adjustments from Other DOE line | - | 3 | 80 | - | (682) | (599) |
| Less: Net investment result attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | 364 | (429) | (2275) | (1) | (21) | (2362) |
| NCI | 253 | - | - | 1 | (2) | 252 |
| Participating policyholders | 22 | (62) | - | - | - | (40) |
| **Core net investment result** | 1365 | 605 | 1272 | - | 357 | 3599 |
| Core net investment result, CER adjustment<sup>(1)</sup> | (37) | - | (25) | - | (1) | (63) |
| **Core net investment result, CER basis** | $1328 | $605 | $1247 | $- | $356 | $3536 |
| **Manulife Bank and Global WAM by DOE line reconciliation** |  |  |  |  |  |  |
| Manulife Bank and Global WAM net income attributed to shareholders | $- | $211 | $- | $2245 | $- | $2456 |
| Less: Manulife Bank and Global WAM attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | - | 3 | - | (37) | - | (34) |
| **Core earnings in Manulife Bank and Global WAM** | - | 208 | - | 2282 | - | 2490 |
| Core earnings in Manulife Bank and Global WAM, CER adjustment<sup>(1)</sup> | - | - | - | (32) | - | (32) |
| **Core earnings in Manulife Bank and Global WAM, CER basis** | $- | $208 | $- | $2250 | $- | $2458 |
| **Other reconciliation** |  |  |  |  |  |  |
| Other revenue per financial statements | $13 | $301 | $160 | $8020 | $(365) | $8129 |
| General expenses per financial statements | (366) | (617) | (181) | (3260) | (477) | (4901) |
| Commissions related to non-insurance contracts | 3 | (69) | 16 | (1528) | 39 | (1539) |
| Interest expenses per financial statements | (43) | (842) | (14) | (3) | (628) | (1530) |
| Total financial statements values included in Other | (393) | (1227) | (19) | 3229 | (1431) | 159 |
| Less: Reclassifications: |  |  |  |  |  |  |
| Manulife Bank and Global WAM to their own DOE lines | - | (1127) | - | 3222 | - | 2095 |
| Consolidation and other adjustments to net investment result DOE line | - | 3 | 80 | - | (683) | (600) |
| Less: Other attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | (84) | 3 | (2) | (2) | 135 | 50 |
| NCI | 13 | 1 | - | 9 | (1) | 22 |
| Participating policyholders | (12) | - | - | - | - | (12) |
| Add: Participating policyholders' earnings transfer to shareholders | 48 | 14 | - | - | - | 62 |
| **Other core earnings** | (262) | (93) | (97) | - | (882) | (1334) |
| Other core earnings, CER adjustment<sup>(1)</sup> | 4 | - | 3 | - | 2 | 9 |
| **Other core earnings, CER basis** | $(258) | $(93) | $(94) | $- | $(880) | $(1325) |
| **Income tax (expenses) recoveries reconciliation** |  |  |  |  |  |  |
| Income tax (expenses) recoveries per financial statements | $(716) | $(384) | $181 | $(341) | $226 | $(1034) |
| Less: Income tax (expenses) recoveries attributed to: |  |  |  |  |  |  |
| Items excluded from core earnings | (198) | 21 | 456 | 9 | 21 | 309 |
| NCI | (81) | (1) | - | - | 1 | (81) |
| Participating policyholders | (48) | 25 | - | - | - | (23) |
| **Core income tax (expenses) recoveries** | (389) | (429) | (275) | (350) | 204 | (1239) |
| Core income tax (expenses) recoveries, CER adjustment<sup>(1)</sup> | 10 | - | 5 | 4 | (1) | 18 |
| **Core income tax (expenses) recoveries, CER basis** | $(379) | $(429) | $(270) | $(346) | $203 | $(1221) |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 1Q26.

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

Manulife Financial Corporation – First Quarter 2026 44

**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** | **Full Year** <br>**Results**<br>|
|  | **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| General expenses | **$1251** | $1327 | $1232 | $1140 | $1202 | $4901 |
| CER adjustment<sup>(1)</sup> | **-** | (12) | (3) | (6) | (27) | (48) |
| **General expenses, CER basis** | **$1251** | $1315 | $1229 | $1134 | $1175 | $4853 |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 1Q26.

**The 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, or movement, 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 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.

**Growth in the CSM net of NCI from organic CSM movement** measures the percent growth or decline in our CSM balance

due to organic change, or movement, in the CSM during the year. It is a measure of the CSM generation capability of our

underlying business. It is calculated as the percentage growth / decline in our annualized year-to-date change in organic CSM

net of NCI divided by the prior year-end CSM net of NCI balance on a constant exchange rate basis.

**New business CSM growth** is the percentage change in the new business CSM compared with a prior period on a constant

exchange rate basis.

Manulife Financial Corporation – First Quarter 2026 45

**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**  | **Mar 31, 2026** | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 |
| CSM | **$27325** | $26568 | $26283 | $23722 | $23713 |
| Less: CSM for NCI | **1736** | 1599 | 1565 | 1406 | 1417 |
| **CSM, net of NCI** | **$25589** | $24969 | $24718 | $22316 | $22296 |
| CER adjustment<sup>(1)</sup> | - | 332 | (66) | 197 | (556) |
| **CSM, net of NCI, CER basis** | **$25589** | $25301 | $24652 | $22513 | $21740 |
| **CSM by segment** |  |  |  |  |  |
| Asia | **$18228** | $17750 | $17580 | $15786 | $15904 |
| Asia NCI | **1736** | 1599 | 1565 | 1406 | 1417 |
| Canada | **4432** | 4459 | 4490 | 4133 | 4052 |
| U.S. | **2927** | 2760 | 2649 | 2386 | 2329 |
| Corporate and Other | **2** | - | (1) | 11 | 11 |
| **CSM** | **$27325** | $26568 | $26283 | $23722 | $23713 |
| **CSM, CER adjustment**<sup>(1)</sup> |  |  |  |  |  |
| Asia | **$-** | $282 | $(74) | $143 | $(486) |
| Asia NCI | **-** | 46 | 50 | 80 | 23 |
| Canada | **-** | - | - | - | - |
| U.S. | - | 50 | 8 | 54 | (70) |
| Corporate and Other | **-** | - | - | 1 | - |
| **Total** | **$-** | $378 | $(16) | $278 | $(533) |
| **CSM, CER basis** |  |  |  |  |  |
| Asia | **$18228** | $18032 | $17506 | $15929 | $15418 |
| Asia NCI | **1736** | 1645 | 1615 | 1486 | 1440 |
| Canada | **4432** | 4459 | 4490 | 4133 | 4052 |
| U.S. | **2927** | 2810 | 2657 | 2440 | 2259 |
| Corporate and Other | **2** | - | (1) | 12 | 11 |
| **Total CSM, CER basis** | **$27325** | $26946 | $26267 | $24000 | $23180 |
| **Post-tax CSM** |  |  |  |  |  |
| CSM | **$27325** | $26568 | $26283 | $23722 | $23713 |
| Marginal tax rate on CSM | **(4510)** | (4403) | (4347) | (3940) | (3929) |
| **Post-tax CSM** | **$22815** | $22165 | $21936 | $19782 | $19784 |
| CSM, net of NCI | **$25589** | $24969 | $24718 | $22316 | $22296 |
| Marginal tax rate on CSM net of NCI | **(4334)** | (4236) | (4181) | (3789) | (3772) |
| **Post-tax CSM net of NCI** | **$21255** | $20733 | $20537 | $18527 | $18524 |

---

<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 1Q26.

Manulife Financial Corporation – First Quarter 2026 46

**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** | **Full Year** <br>**Results**<br>|
|  | **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| **New business CSM** |  |  |  |  |  |  |
| Hong Kong | **$316** | $244 | $287 | $286 | $316 | $1133 |
| Japan | **167** | 159 | 76 | 74 | 81 | 390 |
| Mainland China | **114** | 55 | 112 | 63 | 126 | 356 |
| Singapore | **165** | 159 | 182 | 140 | 138 | 619 |
| Other<sup>(2)</sup> | **40** | 80 | 55 | 100 | 54 | 289 |
| Asia | **802** | 697 | 712 | 663 | 715 | 2787 |
| Canada | **103** | 135 | 109 | 100 | 91 | 435 |
| U.S. | **114** | 188 | 145 | 119 | 101 | 553 |
| **Total new business CSM** | **$1019** | $1020 | $966 | $882 | $907 | $3775 |
| **New business CSM, CER adjustment**<sup>(3)</sup> |  |  |  |  |  |  |
| Hong Kong | **$-** | $(4) | $(1) | $(2) | $(13) | $(20) |
| Japan | **-** | (6) | (5) | (6) | (6) | (23) |
| Mainland China | **-** | 1 | 3 | 2 | - | 6 |
| Singapore | **-** | (1) | 1 | 1 | 1 | 2 |
| Other<sup>(2)</sup> | **-** | (1) | (1) | (1) | (2) | (5) |
| Asia | **-** | (11) | (3) | (6) | (20) | (40) |
| Canada | **-** | - | **-** | **-** | - | - |
| U.S. | **-** | (4) | (1) | (1) | (4) | (10) |
| Total new business CSM | **$-** | $(15) | $(4) | $(7) | $(24) | $(50) |
| **New business CSM, CER basis** |  |  |  |  |  |  |
| Hong Kong | **$316** | $240 | $286 | $284 | $303 | $1113 |
| Japan | **167** | 153 | 71 | 68 | 75 | 367 |
| Mainland China | **114** | 56 | 115 | 65 | 126 | 362 |
| Singapore | **165** | 158 | 183 | 141 | 139 | 621 |
| Other<sup>(2)</sup> | **40** | 79 | 54 | 99 | 52 | 284 |
| Asia | **802** | 686 | 709 | 657 | 695 | 2747 |
| Canada | **103** | 135 | 109 | 100 | 91 | 435 |
| U.S. | **114** | 184 | 144 | 118 | 97 | 543 |
| **Total new business CSM, CER basis** | **$1019** | $1005 | $962 | $875 | $883 | $3725 |

---

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

<sup>(2)</sup> Other includes Cambodia, Indonesia, International High Net Worth, Malaysia, Myanmar, the Philippines and Vietnam.

<sup>(3)</sup> The impact of updating foreign exchange rates to that which was used in 1Q26.

Manulife Financial Corporation – First Quarter 2026 47

**Net income financial measures on a CER basis**

(Canadian $ in 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** | **Full Year** <br>**Results**<br>|
|  | **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| **Net income (loss) attributed to shareholders:** |  |  |  |  |  |  |
| Asia | **$595** | $623 | $895 | $830 | $624 | $2972 |
| Canada | **238** | 252 | 449 | 390 | 222 | 1313 |
| U.S. | **138** | 81 | (75) | 36 | (569) | (527) |
| Global WAM | **403** | 452 | 523 | 482 | 443 | 1900 |
| Corporate and Other | **(227)** | 91 | 7 | 51 | (235) | (86) |
| **Total net income (loss) attributed to shareholders** | **1147** | 1499 | 1799 | 1789 | 485 | 5572 |
| Preferred share dividends and other equity distributions | **(58)** | (103) | (58) | (103) | (57) | (321) |
| **Common shareholders' net income (loss)** | **$1089** | $1396 | $1741 | $1686 | $428 | $5251 |
| **CER adjustment**<sup>(1)</sup> |  |  |  |  |  |  |
| Asia | **$-** | $(6) | $9 | $(8) | $(40) | $(45) |
| Canada | **-** | (1) | 2 | (1) | 2 | 2 |
| U.S. | **-** | (1) | (2) | - | 24 | 21 |
| Global WAM | **-** | (8) | (1) | (5) | (20) | (34) |
| Corporate and Other | **-** | (3) | (2) | 3 | 9 | 7 |
| **Total net income (loss) attributed to shareholders**  | **-** | (19) | 6 | (11) | (25) | (49) |
| Preferred share dividends and other equity distributions  | **-** | - | - | - | - | - |
| **Common shareholders' net income (loss)** | **$-** | $(19) | $6 | $(11) | $(25) | $(49) |
| **Net income (loss) attributed to shareholders, CER basis** |  |  |  |  |  |  |
| Asia | **$595** | $617 | $904 | $822 | $584 | $2927 |
| Canada | **238** | 251 | 451 | 389 | 224 | 1315 |
| U.S. | **138** | 80 | (77) | 36 | (545) | (506) |
| Global WAM | **403** | 444 | 522 | 477 | 423 | 1866 |
| Corporate and Other | **(227)** | 88 | 5 | 54 | (226) | (79) |
| **Total net income (loss) attributed to shareholders, CER** <br>**basis**<br>| **1147** | 1480 | 1805 | 1778 | 460 | 5523 |
| Preferred share dividends and other equity distributions, CER <br>basis<br>| **(58)** | (103) | (58) | (103) | (57) | (321) |
| **Common shareholders' net income (loss), CER basis** | **$1089** | $1377 | $1747 | $1675 | $403 | $5202 |
| **Asia net income attributed to shareholders, U.S. dollars** |  |  |  |  |  |  |
| Asia net income (loss) attributed to shareholders, US $<sup>(2)</sup> | **$433** | $447 | $649 | $600 | $435 | $2131 |
| CER adjustment, US $<sup>(1)</sup> | **-** | 3 | 10 | (1) | (9) | 3 |
| **Asia net income (loss) attributed to shareholders, US $,** <br>**CER basis**<sup>(1)</sup><br>| **$433** | $450 | $659 | $599 | $426 | $2134 |
| **Net income (loss) attributed to shareholders (pre-tax)** |  |  |  |  |  |  |
| Net income (loss) attributed to shareholders (post-tax) | **$1147** | $1499 | $1799 | $1789 | $485 | $5572 |
| Tax on net income attributed to shareholders | **215** | 292 | 283 | 307 | 47 | 929 |
| **Net income (loss) attributed to shareholders (pre-tax)** | **1362** | 1791 | 2082 | 2096 | 532 | 6501 |
| CER adjustment<sup>(1)</sup> | **-** | (17) | (20) | (23) | (18) | (78) |
| **Net income (loss) attributed to shareholders (pre-tax), CER** <br>**basis**<br>| **$1362** | $1774 | $2062 | $2073 | $514 | $6423 |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 1Q26.

<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

respective reporting period.

**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.

Manulife Financial Corporation – First Quarter 2026 48

**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 $<sup>(5)</sup> |
|  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
| **As at** | Asia | Canada | U.S. | Global WAM | Corporate <br>and Other<br>| Total  | Asia | U.S. |
| **Total invested assets** |  |  |  |  |  |  |  |  |
| Manulife Bank<sup>(1)</sup> | **$-** | **$30456** | **$-** | **$-** | **$-** | **$30456** | **$-** | **$-** |
| Derivative reclassification<sup>(2)</sup> | **-** | **-** | **-** | **-** | **4317** | **4317** | **-** | **-** |
| Other | **188673** | **83796** | **123233** | **10900** | **20439** | **427041** | **135208** | **88304** |
| **Total** | **188673** | **114252** | **123233** | **10900** | **24756** | **461814** | **135208** | **88304** |
| **Segregated funds net assets** |  |  |  |  |  |  |  |  |
| Institutional | **-** | **-** | **-** | **3083** | **-** | **3083** | **-** | **-** |
| Other<sup>(3)</sup> | **32053** | **36840** | **75438** | **308289** | **(35)** | **452585** | **22972** | **54056** |
| **Total** | **32053** | **36840** | **75438** | **311372** | **(35)** | **455668** | **22972** | **54056** |
| **AUM per financial statements** | **220726** | **151092** | **198671** | **322272** | **24721** | **917482** | **158180** | **142360** |
| Mutual funds | **-** | **-** | **-** | **331267** | **-** | **331267** | **-** | **-** |
| Institutional asset management<sup>(4)</sup> | **-** | **-** | **-** | **186826** | **-** | **186826** | **-** | **-** |
| Other funds | **-** | **-** | **-** | **24427** | **-** | **24427** | **-** | **-** |
| **Total AUM** | **220726** | **151092** | **198671** | **864792** | **24721** | **1460002** | **158180** | **142360** |
| Assets under administration | **-** | **-** | **-** | **245326** | **-** | **245326** | **-** | **-** |
| **Total AUMA** | **$220726** | **$151092** | **$198671** | **$1110118** | **$24721** | **$1705328** | **$158180** | **$142360** |
| **Total AUMA, US $**<sup>(5)</sup> |  |  |  |  |  | **$1221975** |  |  |
| Total AUMA | **$220726** | **$151092** | **$198671** | **$1110118** | **$24721** | **$1705328** |  |  |
| CER adjustment<sup>(6)</sup> | **-** | **-** | **-** | **-** | **-** | **-** |  |  |
| **Total AUMA, CER basis** | **$220726** | **$151092** | **$198671** | **$1110118** | **$24721** | **$1705328** |  |  |
| **Global WAM Managed AUMA** | **Global WAM Managed AUMA** |  |  |  |  |  |  |  |
| Global WAM AUMA |  |  |  | **$1110118** |  |  |  |  |
| 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 | **230577** |  |  |  |  |
| **Total** |  |  |  | **$1340695** |  |  |  |  |

---

<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 1Q26.

Manulife Financial Corporation – First Quarter 2026 49

**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, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 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> | $- | $29896 | $- | $- | $- | $29896 | $- | $- |
| Derivative reclassification<sup>(2)</sup> | - | - | - | - | 4737 | 4737 | - | - |
| Other | 185848 | 84587 | 122591 | 9787 | 22482 | 425295 | 135597 | 89434 |
| **Total** | 185848 | 114483 | 122591 | 9787 | 27219 | 459928 | 135597 | 89434 |
| **Segregated funds net assets** |  |  |  |  |  |  |  |  |
| Institutional | - | - | - | 3075 | - | 3075 | - | - |
| Other<sup>(3)</sup> | 32245 | 38218 | 77272 | 310491 | (47) | 458179 | 23527 | 56372 |
| **Total** | 32245 | 38218 | 77272 | 313566 | (47) | 461254 | 23527 | 56372 |
| **AUM per financial statements** | 218093 | 152701 | 199863 | 323353 | 27172 | 921182 | 159124 | 145806 |
| Mutual funds | - | - | - | 338443 | - | 338443 | - | - |
| Institutional asset management<sup>(4)</sup> | - | - | - | 176402 | - | 176402 | - | - |
| Other funds | - | - | - | 22371 | - | 22371 | - | - |
| **Total AUM** | 218093 | 152701 | 199863 | 860569 | 27172 | 1458398 | 159124 | 145806 |
| Assets under administration | - | - | - | 246021 | - | 246021 | - | - |
| **Total AUMA** | $218093 | $152701 | $199863 | $1106590 | $27172 | $1704419 | $159124 | $145806 |
| **Total AUMA, US $**<sup>(5)</sup> |  |  |  |  |  | $1243422 |  |  |
| Total AUMA | $218093 | $152701 | $199863 | $1106590 | $27172 | $1704419 |  |  |
| CER adjustment<sup>(6)</sup> | 3712 | - | 3638 | 14595 | - | 21945 |  |  |
| **Total AUMA, CER basis** | $221805 | $152701 | $203501 | $1121185 | $27172 | $1726364 |  |  |
| **Global WAM Managed AUMA** | **Global WAM Managed AUMA** |  |  |  |  |  |  |  |
| Global WAM AUMA |  |  |  | $1106590 |  |  |  |  |
| 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 | 234370 |  |  |  |  |
| **Total** |  |  |  | $1340960 |  |  |  |  |

---

Note: For footnotes (1) to (6), refer to the "AUM and AUMA reconciliation" table as at March 31, 2026 above.

Manulife Financial Corporation – First Quarter 2026 50

**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, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 30, 2025 | September 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> | $- | $29112 | $- | $- | $- | $29112 | $- | $- |
| Derivative reclassification<sup>(2)</sup> | - | - | - | - | 3308 | 3308 | - | - |
| Other | 184344 | 84860 | 124710 | 10999 | 21634 | 426547 | 132487 | 89629 |
| **Total** | 184344 | 113972 | 124710 | 10999 | 24942 | 458967 | 132487 | 89629 |
| **Segregated funds net assets** |  |  |  |  |  |  |  |  |
| Institutional | - | - | - | 3106 | - | 3106 | - | - |
| Other<sup>(3)</sup> | 31646 | 38654 | 78304 | 311195 | (51) | 459748 | 22747 | 56277 |
| **Total** | 31646 | 38654 | 78304 | 314301 | (51) | 462854 | 22747 | 56277 |
| **AUM per financial statements** | 215990 | 152626 | 203014 | 325300 | 24891 | 921821 | 155234 | 145906 |
| Mutual funds | - | - | - | 350545 | - | 350545 | - | - |
| Institutional asset management<sup>(4)</sup> | - | - | - | 159321 | - | 159321 | - | - |
| Other funds | - | - | - | 21518 | - | 21518 | - | - |
| **Total AUM** | 215990 | 152626 | 203014 | 856684 | 24891 | 1453205 | 155234 | 145906 |
| Assets under administration | - | - | - | 241359 | - | 241359 | - | - |
| **Total AUMA** | $215990 | $152626 | $203014 | $1098043 | $24891 | $1694564 | $155234 | $145906 |
| **Total AUMA, US $**<sup>(5)</sup> |  |  |  |  |  | $1217884 |  |  |
| Total AUMA | $215990 | $152626 | $203014 | $1098043 | $24891 | $1694564 |  |  |
| CER adjustment<sup>(6)</sup> | 50 | - | 632 | 1327 | - | 2009 |  |  |
| **Total AUMA, CER basis** | $216040 | $152626 | $203646 | $1099370 | $24891 | $1696573 |  |  |
| **Global WAM Managed AUMA** | **Global WAM Managed AUMA** |  |  |  |  |  |  |  |
| Global WAM AUMA |  |  |  | $1098043 |  |  |  |  |
| 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 | 233702 |  |  |  |  |
| **Total** |  |  |  | $1331745 |  |  |  |  |

---

Note: For footnotes (1) to (6), refer to the "AUM and AUMA reconciliation" table as at March 31, 2026 above.

Manulife Financial Corporation – First Quarter 2026 51

**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> | 3261 | - | 4456 | 15871 | - | 23588 |  |  |
| **Total AUMA, CER basis** | $205765 | $148764 | $198759 | $1054909 | $23640 | $1631837 |  |  |
| **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 |  |  |  |  |

---

Note: For footnotes (1) to (6), refer to the "AUM and AUMA reconciliation" table as at March 31, 2026 above.

Manulife Financial Corporation – First Quarter 2026 52

**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> | (4308) | - | (6010) | (23194) | - | (33512) |  |  |
| **Total AUMA, CER basis** | $195984 | $148688 | $194886 | $1003125 | $26882 | $1569565 |  |  |
| **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 March 31, 2026 above.

Manulife Financial Corporation – First Quarter 2026 53

**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** | **Mar 31, 2026** | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 |
| **Global WAM AUMA by business line** |  |  |  |  |  |
| Retirement | **$569533** | $572613 | $575220 | $536639 | $522751 |
| Retail | **346105** | 350180 | 356419 | 338616 | 339653 |
| Institutional asset management | **194480** | 183797 | 166404 | 163783 | 163915 |
| Total | **$1110118** | $1106590 | $1098043 | $1039038 | $1026319 |
| **Global WAM AUMA by business line, CER basis**<sup>(1)</sup> |  |  |  |  |  |
| Retirement | **$569533** | $580548 | $576424 | $546102 | $510110 |
| Retail | **346105** | 354351 | 356729 | 343106 | 332735 |
| Institutional asset management | **194480** | 186286 | 166217 | 165701 | 160280 |
| **Total** | **$1110118** | $1121185 | $1099370 | $1054909 | $1003125 |
| **Global WAM AUMA by geographic source** |  |  |  |  |  |
| Asia | **$161912** | $156030 | $153921 | $143573 | $144660 |
| Canada | **272348** | 273978 | 275486 | 266913 | 259446 |
| U.S. | **675858** | 676582 | 668636 | 628552 | 622213 |
| **Total**  | **$1110118** | $1106590 | $1098043 | $1039038 | $1026319 |
| **Global WAM AUMA by geographic source, CER basis**<sup>(1)</sup> |  |  |  |  |  |
| Asia | **$161912** | $158011 | $152876 | $144754 | $139952 |
| Canada | **272348** | 273978 | 275486 | 266913 | 259446 |
| U.S. | **675858** | 689196 | 671008 | 643242 | 603727 |
| **Total** | **$1110118** | $1121185 | $1099370 | $1054909 | $1003125 |
| **Global WAM Managed AUMA by business line** |  |  |  |  |  |
| Retirement | **$569533** | $572613 | $575220 | $536639 | $522751 |
| Retail | **426136** | 432834 | 440149 | 419133 | 419844 |
| Institutional asset management | **345026** | 335513 | 316376 | 305942 | 308832 |
| **Total** | **$1340695** | $1340960 | $1331745 | $1261714 | $1251427 |
| **Global WAM Managed AUMA by business line, CER basis**<sup>(1)</sup> |  |  |  |  |  |
| Retirement | **$569533** | $580548 | $576424 | $546102 | $510110 |
| Retail | **426136** | 432599 | 434942 | 418961 | 405499 |
| Institutional asset management | **345026** | 340367 | 316581 | 310627 | 301467 |
| **Total** | **$1340695** | $1353514 | $1327947 | $1275690 | $1217076 |
| **Global WAM Managed AUMA by geographic source** |  |  |  |  |  |
| Asia | **$252336** | $248228 | $242968 | $227797 | $228948 |
| Canada | **323898** | 327177 | 328891 | 317864 | 311252 |
| U.S. | **764461** | 765555 | 759886 | 716053 | 711227 |
| Total | **$1340695** | $1340960 | $1331745 | $1261714 | $1251427 |
| **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 | **$252336** | $251819 | $242075 | $230630 | $221674 |
| Canada | **323898** | 327177 | 328891 | 317864 | 311252 |
| U.S. | **764461** | 774518 | 756981 | 727196 | 684150 |
| **Total**  | **$1340695** | $1353514 | $1327947 | $1275690 | $1217076 |

---

<sup>(1)</sup> AUMA adjusted to reflect the foreign exchange rates for the Statement of Financial Position in effect for 1Q26.

**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 – First Quarter 2026 54

**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** | **Mar 31, 2026** | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 |
| ($ millions) | **Mar 31, 2026** | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 |
| Mortgages | **$57813** | $57119 | $56747 | $55479 | $55105 |
| Less: mortgages not held by Manulife Bank | **30223** | 29958 | 30185 | 29847 | 30352 |
| Total mortgages held by Manulife Bank | **27590** | 27161 | 26562 | 25632 | 24753 |
| Loans to Bank clients | **2866** | 2735 | 2550 | 2506 | 2382 |
| **Manulife Bank net lending assets** | **$30456** | $29896 | $29112 | $28138 | $27135 |
| Manulife Bank average net lending assets |  |  |  |  |  |
| Beginning of period | **$29896** | $29112 | $28138 | $27135 | $26718 |
| End of period | **30456** | 29896 | 29112 | 28138 | 27135 |
| **Manulife Bank average net lending assets by quarter** | **$30176** | $29504 | $28625 | $27637 | $26927 |
| **Manulife Bank average net lending assets – full year** |  | $28307 |  |  |  |

---

**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** | **Mar 31, 2026** | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 |
| ($ millions) | **Mar 31, 2026** | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 |
| Common shareholders' equity | **$43972** | $43461 | $44056 | $42420 | $44475 |
| Post-tax CSM, net of NCI | **21255** | 20733 | 20537 | 18527 | 18524 |
| **Adjusted book value** | **$65227** | $64194 | $64593 | $60947 | $62999 |

---

**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** | **Mar 31, 2026** | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 |
| ($ millions) | **Mar 31, 2026** | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 |
| Total equity | **$53056** | $52488 | $52991 | $51253 | $53164 |
| Less: AOCI gain / (loss) on cash flow hedges  | **64** | 87 | 58 | 68 | 89 |
| Total equity excluding AOCI on cash flow hedges  | **52992** | 52401 | 52933 | 51185 | 53075 |
| Post-tax CSM | **22815** | 22165 | 21936 | 19782 | 19784 |
| Qualifying capital instruments | **7018** | 6990 | 7011 | 6985 | 7542 |
| **Consolidated capital** | **$82825** | $81556 | $81880 | $77952 | $80401 |

---

Manulife Financial Corporation – First Quarter 2026 55

**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.

**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** | **Full Year** <br>**Results**<br>|
|  | **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| **Global WAM core earnings (post-tax)**  | **$448** | $490 | $525 | $463 | $454 | $1932 |
| Add back taxes, acquisition costs, other expenses and deferred sales <br>commissions<br>|  |  |  |  |  |  |
| Core income tax (expenses) recoveries (see above) | **88** | 93 | 82 | 89 | 86 | 350 |
| Amortization of deferred acquisition costs and other depreciation | **63** | 61 | 44 | 51 | 46 | 202 |
| Amortization of deferred sales commissions | **24** | 24 | 21 | 20 | 22 | 87 |
| **Core EBITDA** | **$623** | $668 | $672 | $623 | $608 | $2571 |
| CER adjustment<sup>(1)</sup> | **-** | (9) | (2) | (5) | (20) | (36) |
| **Core EBITDA, CER basis** | **$623** | $659 | $670 | $618 | $588 | $2535 |
| **Core EBITDA by business line** |  |  |  |  |  |  |
| Retirement | **$337** | $373 | $387 | $358 | $351 | $1469 |
| Retail | **191** | 210 | 204 | 191 | 190 | 795 |
| Institutional asset management | **95** | 85 | 81 | 74 | 67 | 307 |
| **Total** | **$623** | $668 | $672 | $623 | $608 | $2571 |
| **Core EBITDA by geographic source** |  |  |  |  |  |  |
| Asia | **$136** | $153 | $185 | $170 | $186 | $694 |
| Canada | **165** | 174 | 180 | 161 | 164 | 679 |
| U.S. | **322** | 341 | 307 | 292 | 258 | 1198 |
| **Total** | **$623** | $668 | $672 | $623 | $608 | $2571 |
| **Core EBITDA by business line, CER basis**<sup>(2)</sup> |  |  |  |  |  |  |
| Retirement | **$337** | $367 | $388 | $355 | $339 | $1449 |
| Retail | **191** | 208 | 202 | 190 | 185 | 785 |
| Institutional asset management | **95** | 84 | 80 | 73 | 64 | 301 |
| **Total, CER basis** | **$623** | $659 | $670 | $618 | $588 | $2535 |
| **Core EBITDA by geographic source, CER basis**<sup>(2)</sup> |  |  |  |  |  |  |
| Asia | **$136** | $150 | $184 | $168 | $177 | $679 |
| Canada | **165** | 174 | 180 | 161 | 164 | 679 |
| U.S. | **322** | 335 | 306 | 289 | 247 | 1177 |
| **Total, CER basis** | **$623** | $659 | $670 | $618 | $588 | $2535 |

---

<sup>(1)</sup> The impact of updating foreign exchange rates to that which was used in 1Q26.

<sup>(2)</sup> Core EBITDA adjusted to reflect the foreign exchange rates for the Statement of Income in effect for 1Q26.

**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, 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 – First Quarter 2026 56

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** | **Full Year** <br>**Results**<br>|
| ($ millions, unless otherwise stated) | **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| **Core EBITDA margin** |  |  |  |  |  |  |
| Core EBITDA | **$623** | $668 | $672 | $623 | $608 | $2571 |
| Core revenue | **$2146** | $2285 | $2175 | $2069 | $2140 | $8669 |
| **Core EBITDA margin** | **29.0%** | 29.2% | 30.9% | 30.1% | 28.4% | 29.7% |
| **Global WAM core revenue** |  |  |  |  |  |  |
| Other revenue per financial statements | **$1930** | $2147 | $2145 | $1851 | $1986 | $8129 |
| Less: Other revenue in segments other than Global WAM | **(56)** | 28 | 121 | (53) | 11 | 107 |
| **Other revenue in Global WAM (fee income)** | **$1986** | $2119 | $2024 | $1904 | $1975 | $8022 |
| Investment income per financial statements | **$4536** | $5358 | $4682 | $4740 | $4234 | $19014 |
| Realized and unrealized gains (losses) on assets supporting <br>insurance and investment contract liabilities per financial <br>statements<br>| **(1384)** | 1106 | 3784 | 2377 | (992) | 6275 |
| Total investment income  | **3152** | 6464 | 8466 | 7117 | 3242 | 25289 |
| Less: Investment income in segments other than Global WAM | **3015** | 6300 | 8275 | 6924 | 3089 | 24588 |
| Investment income in Global WAM | **$137** | $164 | $191 | $193 | $153 | $701 |
| Total other revenue and investment income in Global WAM | **$2123** | $2283 | $2215 | $2097 | $2128 | $8723 |
| Less: Total revenue reported in items excluded from core earnings |  |  |  |  |  |  |
| Market experience gains (losses) | **(28)** | (1) | 24 | 20 | (14) | 29 |
| Revenue related to integration and acquisitions | **5** | (1) | 16 | 8 | 2 | 25 |
| **Global WAM core revenue** | **$2146** | $2285 | $2175 | $2069 | $2140 | $8669 |

---

**Core expenses** is used to calculate our expense efficiency ratio and is equal to total expenses excluding such items as legal

provisions for settlements, restructuring charges, amortization of acquisition-related intangible assets and expenses related to

integration and acquisitions, that have been excluded from core earnings. Consistent with our definition of core earnings,

amortization and impairment of intangible assets acquired in a business combination, except for amortization of software and

distribution agreements, is now excluded from core expenses commencing in 3Q25. For more information, please see above

for details of our definition of core earnings.

**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** | **Full Year** <br>**Results**<br>|
| ($ millions, and based on actual foreign exchange rates in effect in the <br>applicable reporting period, unless otherwise stated)<br>| **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| **Core expenses** |  |  |  |  |  |  |
| General expenses – Statements of Income | **$1251** | $1327 | $1232 | $1140 | $1202 | $4901 |
| Directly attributable acquisition expense for contracts measured using the <br>PAA method and products without a CSM<sup>(1)</sup><br>| **48** | 48 | 42 | 40 | 42 | 172 |
| Directly attributable maintenance expense<sup>(1)</sup> | **552** | 542 | 524 | 514 | 532 | 2112 |
| Total expenses | **1851** | 1917 | 1798 | 1694 | 1776 | 7185 |
| Less: General expenses included in items excluded from core <br>earnings<br>|  |  |  |  |  |  |
| Restructuring charge | **-** | 16 | - | - | - | 16 |
| Amortization of acquisition-related intangible assets | **23** | 16 | 8 | - | - | 24 |
| Integration and acquisition | **-** | 7 | 22 | - | - | 29 |
| Legal provisions and Other expenses | **1** | 5 | 10 | 5 | - | 20 |
| Total | **24** | 44 | 40 | 5 | - | 89 |
| **Core expenses** | **$1827** | $1873 | $1758 | $1689 | $1776 | $7096 |
| CER adjustment<sup>(2)</sup> | **-** | (18) | (5) | (12) | (39) | (74) |
| **Core expenses, CER basis** | **$1827** | $1855 | $1753 | $1677 | $1737 | $7022 |
| Total expenses | **$1851** | $1917 | $1798 | $1694 | $1776 | $7185 |
| CER adjustment<sup>(2)</sup> | **-** | (18) | (5) | (11) | (40) | (74) |
| **Total expenses, CER basis** | **$1851** | $1899 | $1793 | $1683 | $1736 | $7111 |

---

<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 1Q26.

Manulife Financial Corporation – First Quarter 2026 57

**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** | **Full Year** <br>**Results**<br>|
| ($ millions, unless otherwise stated) | **1Q26** | 4Q25 | 3Q25 | 2Q25 | 1Q25 | 2025 |
| **Income before income taxes** | **$1466** | $1905 | $2229 | $2261 | $699 | $7094 |
| Less: Income before income taxes for segments other than <br>Global WAM <br>| **977** | 1363 | 1623 | 1686 | 171 | 4843 |
| Global WAM income before income taxes | **489** | 542 | 606 | 575 | 528 | 2251 |
| Items unrelated to net fee income | **793** | 834 | 715 | 667 | 739 | 2955 |
| Global WAM net fee income | **1282** | 1376 | 1321 | 1242 | 1267 | 5206 |
| Less: Net fee income from other segments | **167** | 196 | 176 | 171 | 170 | 713 |
| Global WAM net fee income excluding net fee income from <br>other segments<br>| **1115** | 1180 | 1145 | 1071 | 1097 | 4493 |
| **Net annualized fee income** | **$4522** | $4682 | $4543 | $4297 | $4451 | $4492 |
| Average Assets under Management and Administration | **$1117621** | $1115108 | $1065832 | $1005290 | $1041116 | $1070839 |
| **Net fee income yield (bps)** | **40.4** | 42.0 | 42.6 | 42.7 | 42.7 | 41.9 |

---

**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, the International High Net Worth business,

and business ceded to an affiliate reinsurer, 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

the Company's new business franchise.

**New business value margin ("NBV margin")** is calculated as NBV divided by APE sales excluding NCI. APE sales are

calculated as 100% of regular premiums and deposits sales and 10% of single premiums and deposits sales. NBV margin is a

useful metric to help understand the profitability of our new business.

**Sales are measured according to product type:**

For individual insurance, sales include 100% of new annualized premiums and 10% of both excess and single premiums. For

individual insurance, new annualized premiums reflect the annualized premium expected in the first year of a policy that

requires premium payments for more than one year. Single premium is the lump sum premium from the sale of a single

premium product, e.g., travel insurance. Sales are reported gross before the impact of reinsurance.

For group insurance, sales include new annualized premiums and administrative services only premium equivalents on new

cases, as well as the addition of new coverages and amendments to contracts, excluding rate increases.

Insurance-based wealth accumulation product sales include all new deposits into variable and fixed annuity contracts. As we

discontinued sales of new variable annuity contracts in the U.S. in the first quarter of 2013, subsequent deposits into existing

U.S. variable annuity contracts are not reported as sales. Asia variable annuity deposits are included in APE sales.

**APE sales** are comprised of 100% of regular premiums and deposits and 10% of excess and single premiums and deposits

for both insurance and insurance-based wealth accumulation products.

**Gross flows** is a new business measure presented for our Global WAM business and includes all deposits into mutual funds,

group pension/retirement savings products, private wealth and institutional asset management products. Gross flows is a

common industry metric for WAM businesses as it provides a measure of how successful the businesses are at attracting

assets.

**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.

Manulife Financial Corporation – First Quarter 2026 58

**Remittances** is defined as the cash remitted or made available for distribution to Manulife Financial Corporation from its

subsidiaries, prior to payment of financing costs, dividends, and other capital deployments. 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, planned share buybacks, the probability and

impact of LICAT scenario switches, the anticipated benefits of the acquisition of Schroders Indonesia and the partnership

between Global WAM and L&G, and the anticipated benefits and value derived from the use of AI, 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 of any 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 anticipated benefits of the Schroders Indonesia acquisition

and the partnership between Global WAM and L&G; our ability to execute our digital plans and to deploy future digital use

cases and derive value from AI, 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.

The forward-looking statements in this document are, unless otherwise indicated, stated as of May 13, 2026 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.

Manulife Financial Corporation – First Quarter 2026 59

**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** | **Mar 31,** <br>**2026** | Dec 31, <br>2025 | Sep 30, <br>2025 | Jun 30, <br>2025 | Mar 31, <br>2025 | Dec 31, <br>2024 | Sep 30, <br>2024 | Jun 30, <br>2024 |
| ($ millions, except per share amounts or otherwise stated) | **Mar 31,** <br>**2026** | Dec 31, <br>2025 | Sep 30, <br>2025 | Jun 30, <br>2025 | Mar 31, <br>2025 | Dec 31, <br>2024 | Sep 30, <br>2024 | Jun 30, <br>2024 |
| **Revenue** |  |  |  |  |  |  |  |  |
| Insurance revenue  | **$7391** | $7414 | $7422 | $6990 | $7062 | $6834 | $6746 | $6515 |
| Net investment result | **2879** | 6008 | 8197 | 6796 | 2946 | 4194 | 5912 | 4512 |
| Other revenue | **1930** | 2147 | 2145 | 1851 | 1986 | 2003 | 1928 | 1849 |
| **Total revenue** | **$12200** | $15569 | $17764 | $15637 | $11994 | $13031 | $14586 | $12876 |
| Income (loss) before income taxes | **$1466** | $1905 | $2229 | $2261 | $699 | $2113 | $2341 | $1384 |
| Income tax (expenses) recoveries | **(230)** | (310) | (310) | (338) | (76) | (406) | (274) | (252) |
| **Net income (loss)** | **$1236** | $1595 | $1919 | $1923 | $623 | $1707 | $2067 | $1132 |
| **Net income (loss) attributed to shareholders** | **$1147** | $1499 | $1799 | $1789 | $485 | $1638 | $1839 | $1042 |
| **Basic earnings (loss) per common share** | **$0.65** | $0.83 | $1.03 | $0.99 | $0.25 | $0.88 | $1.01 | $0.53 |
| **Diluted earnings (loss) per common share** | **$0.65** | $0.83 | $1.02 | $0.98 | $0.25 | $0.88 | $1.00 | $0.52 |
| **Segregated funds deposits** | **$14867** | $13811 | $12860 | $12408 | $14409 | $11927 | $11545 | $11324 |
| **Total assets (in billions)** | **$1027** | $1025 | $1027 | $977 | $981 | $979 | $953 | $915 |
| **Weighted average common shares (in millions)** | **1676** | 1683 | 1697 | 1710 | 1723 | 1746 | 1774 | 1793 |
| **Diluted weighted average common shares (in** <br>**millions)**<br>| **1680** | 1688 | 1701 | 1715 | 1729 | 1752 | 1780 | 1799 |
| **Dividends per common share** | **$0.485** | $0.440 | $0.440 | $0.440 | $0.440 | $0.400 | $0.400 | $0.400 |
| **CDN$ to US$1 – Statement of Financial** <br>**Position**<br>| **1.3956** | 1.3707 | 1.3914 | 1.3645 | 1.4393 | 1.4382 | 1.3510 | 1.3684 |
| **CDN$ to US$1 – Statement of Income** | **1.3716** | 1.3939 | 1.3773 | 1.3837 | 1.4349 | 1.3987 | 1.3639 | 1.3682 |

---

**E6Revenue**

---

| | | | |
|:---|:---|:---|:---|
|  | **Quarterly Results** | **Quarterly Results** | **Quarterly Results** |
| ($ millions, unaudited) | **1Q26** | 4Q25 | 1Q25 |
| Insurance revenue  | **$7391** | $7414 | $7062 |
| Net investment income  | **2879** | 6008 | 2946 |
| Other revenue  | **1930** | 2147 | 1986 |
| **Total revenue**  | **$12200** | $15569 | $11994 |
| Asia  | **$2480** | $4385 | $2590 |
| Canada | **3921** | 3919 | 3662 |
| U.S.  | **3814** | 4918 | 3725 |
| Global Wealth and Asset Management  | **1800** | 1935 | 1798 |
| Corporate and Other  | **185** | 412 | 219 |
| **Total revenue**  | **$12200** | $15569 | $11994 |

---

Total revenue was $12.2 billion in 1Q26 compared with $12.0 billion in 1Q25 due to higher insurance revenue, partially offset

by lower net investment income and other revenue.

By segment, the increase in total revenue reflected higher insurance revenue in Asia and Canada, lower net investment

income in Asia, partially offset by higher net investment income in Canada, Corporate and Other, and the U.S. and lower other

revenue in Corporate and Other, partially offset by higher other revenue in Asia, the U.S and Global WAM.

**E7Other**

No changes were made in our internal control over financial reporting during the three months ended March 31, 2026, 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.

Additional information relating to Manulife, including MFC's Annual Information Form, is available on the Company's website at

www.manulife.com and on the SEDAR+ website at www.sedarplus.ca.

Manulife Financial Corporation – First Quarter 2026 60

**Consolidated Statements of Financial Position**

---

| | | |
|:---|:---|:---|
| **As at** | **March 31, 2026** | December 31, 2025 |
| (Canadian $ in millions, unaudited) | **March 31, 2026** | December 31, 2025 |
| **Assets** |  |  |
| Cash and short-term securities | **$24988** | $26703 |
| Debt securities | **215171** | 214114 |
| Public equities | **40660** | 40971 |
| Mortgages | **57813** | 57119 |
| Private placements | **52432** | 51782 |
| Loans to Bank clients | **2866** | 2735 |
| Real estate | **12267** | 12682 |
| Other invested assets | **55617** | 53822 |
| **Total invested assets (note 3)** | **461814** | 459928 |
| **Other assets** |  |  |
| Accrued investment income | **3512** | 3198 |
| Derivatives (note 4) | **9658** | 9628 |
| Insurance contract assets (note 5) | **201** | 194 |
| Reinsurance contract held assets (note 5) | **64819** | 60881 |
| Deferred tax assets | **5758** | 5741 |
| Goodwill and intangible assets | **12548** | 12324 |
| Miscellaneous | **12535** | 12285 |
| **Total other assets** | **109031** | 104251 |
| **Segregated funds net assets (note 15)** | **455668** | 461254 |
| **Total assets** | **$1026513** | $1025433 |
| **Liabilities and Equity** |  |  |
| **Liabilities** |  |  |
| Insurance contract liabilities, excluding those for account of segregated fund holders (note 5) | **$419410** | $411532 |
| Reinsurance contract held liabilities (note 5) | **3423** | 3273 |
| Investment contract liabilities (note 6) | **14318** | 14137 |
| Deposits from Bank clients | **23831** | 24707 |
| Derivatives (note 4) | **13958** | 14351 |
| Deferred tax liabilities | **1999** | 2018 |
| Other liabilities | **27403** | 26998 |
| Long-term debt (note 8) | **6429** | 7685 |
| Capital instruments (note 9) | **7018** | 6990 |
| **Total liabilities, excluding those for account of segregated fund holders** | **517789** | 511691 |
| Insurance contract liabilities for account of segregated fund holders (note 5) | **125526** | 129006 |
| Investment contract liabilities for account of segregated fund holders | **330142** | 332248 |
| **Insurance and investment contract liabilities for account of segregated fund holders (note 15)** | **455668** | 461254 |
| **Total liabilities** | **973457** | 972945 |
| **Equity** |  |  |
| Preferred shares and other equity (note 10) | **6660** | 6660 |
| Common shares (note 10) | **20082** | 20103 |
| Contributed surplus | **189** | 199 |
| Shareholders and other equity holders' retained earnings | **5028** | 5024 |
| Shareholders and other equity holders' accumulated other comprehensive income (loss) ("AOCI"): |  |  |
| Insurance finance income (expenses) | **37696** | 35184 |
| Reinsurance finance income (expenses) | **(7004)** | (6455) |
| Fair value through other comprehensive income ("OCI") investments | **(18550)** | (16513) |
| Translation of foreign operations | **6507** | 5885 |
| Other | **24** | 34 |
| **Total shareholders and other equity holders' equity** | **50632** | 50121 |
| Participating policyholders' equity | **872** | 836 |
| Non-controlling interests  | **1552** | 1531 |
| **Total equity** | **53056** | 52488 |
| **Total liabilities and equity** | **$1026513** | $1025433 |
| 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. |

---

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

![philsignatureblack.jpg](philsignatureblack.jpg)

Don Lindsay

Chair of the Board of Directors

Phil Witherington

President and Chief Executive Officer

Manulife Financial Corporation – First Quarter 2026 61

**Consolidated Statements of Income**

---

| | | |
|:---|:---|:---|
| **For the three months ended March 31,** | | |
| (Canadian $ in millions except per share amounts, unaudited) | **2026** | 2025 |
| **Insurance service result** |  |  |
| Insurance revenue (note 5) | **$7391** | $7062 |
| Insurance service expenses | **(5888)** | (5708) |
| Net expenses from reinsurance contracts held | **(339)** | (311) |
| **Total insurance service result** | **1164** | 1043 |
| **Investment result** |  |  |
| Investment income (note 3) |  |  |
| Investment income | **4536** | 4234 |
| Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities | **(1384)** | (992) |
| Investment expenses | **(273)** | (296) |
| Net investment income (loss) | **2879** | 2946 |
| Insurance finance income (expenses) and effect of movement in foreign exchange rates (note 5) | **(3100)** | (3739) |
| Reinsurance finance income (expenses) and effect of movement in foreign exchange rates (note 5) | **769** | 520 |
| Decrease (increase) in investment contract liabilities | **(131)** | (91) |
|  | **417** | (364) |
| Segregated funds investment result (note 15) |  |  |
| Investment income (loss) related to segregated funds net assets | **(5599)** | (2639) |
| Financial changes related to insurance and investment contract liabilities for account of segregated fund <br>holders<br>| **5599** | 2639 |
| Net segregated funds investment result | **-** | - |
| **Total investment result** | **417** | (364) |
| Other revenue (note 11) | **1930** | 1986 |
| General expenses | **(1251)** | (1202) |
| Commissions related to non-insurance contracts | **(405)** | (385) |
| Interest expenses | **(389)** | (379) |
| **Net income (loss) before income taxes** | **1466** | 699 |
| Income tax (expenses) recoveries | **(230)** | (76) |
| **Net income (loss)** | **$1236** | $623 |
| **Net income (loss) attributed to:** |  |  |
| Non-controlling interests | **$43** | $66 |
| Participating policyholders | **46** | 72 |
| Shareholders and other equity holders | **1147** | 485 |
|  | **$1236** | $623 |
| Net income (loss) attributed to shareholders | **$1147** | $485 |
| Preferred share dividends and other equity distributions | **(58)** | (57) |
| **Common shareholders' net income (loss)** | **$1089** | $428 |
| **Earnings per share** |  |  |
| Basic earnings per common share (note 10) | **$0.65** | $0.25 |
| Diluted earnings per common share (note 10) | **0.65** | 0.25 |
| **Dividends per common share** | **0.49** | 0.44 |
| 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 – First Quarter 2026 62

**Consolidated Statements of Comprehensive Income**

---

| | | |
|:---|:---|:---|
| **For the three months ended March 31,** |  |  |
| (Canadian $ in millions, unaudited) | **2026** | 2025 |
| **Net income (loss)**  | **$1236** | $623 |
| **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 | **756** | 77 |
| Net investment hedges | **(134)** | (18) |
| Insurance finance income (expenses) | **3267** | (1229) |
| Reinsurance finance income (expenses) | **(560)** | 553 |
| Fair value through OCI investments: |  |  |
| Unrealized gains (losses) arising during the period on assets supporting insurance and investment contract <br>liabilities<br>| **(3365)** | 684 |
| Reclassification of net realized gains (losses) and provision for credit losses recognized in income | **559** | 809 |
| Other | **(2)** | 21 |
| **Total items that may be subsequently reclassified to net income** | **521** | 897 |
| **Items that will not be reclassified to net income** | **(8)** | (33) |
| **Other comprehensive income (loss), net of tax** | **513** | 864 |
| **Total comprehensive income (loss), net of tax** | **$1749** | $1487 |
| **Total comprehensive income (loss) attributed to:** |  |  |
| Non-controlling interests | **$28** | $(29) |
| Participating policyholders | **36** | 70 |
| Shareholders and other equity holders | **1685** | 1446 |

---

**Income Taxes included in Other Comprehensive Income**

---

| | | |
|:---|:---|:---|
| **For the three months ended March 31,** |  |  |
| (Canadian $ in millions, unaudited) | **2026** | 2025 |
| **Income tax expenses (recoveries) on:** |  |  |
| Unrealized foreign exchange gains (losses) on net investment hedges | **$(19)** | $(5) |
| Insurance / reinsurance finance income (expenses) | **376** | (106) |
| Unrealized gains (losses) on fair value through OCI investments | **(376)** | 35 |
| Reclassification of net realized gains (losses) on fair value through OCI investments | **8** | 193 |
| Other | **(1)** | 1 |
| **Total income tax expenses (recoveries)** | **$(12)** | $118 |
| 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 – First Quarter 2026 63

**Consolidated Statements of Changes in Equity** 

---

| | | |
|:---|:---|:---|
| **For the three months ended March 31,** |  |  |
| (Canadian $ in millions, unaudited) | **2026** | 2025 |
| 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 | **20103** | 20681 |
| Repurchased (note 10) | **(90)** | (137) |
| Issued on exercise of stock options and deferred share units | **69** | 28 |
| **Balance, end of period** | **20082** | 20572 |
| **Contributed surplus** |  |  |
| Balance, beginning of period | **199** | 204 |
| Exercise of stock options and deferred share units | **(10)** | (2) |
| **Balance, end of period** | **189** | 202 |
| **Shareholders and other equity holders' retained earnings** |  |  |
| Balance, beginning of period | **5024** | 4764 |
| Net income (loss) attributed to shareholders and other equity holders | **1147** | 485 |
| Common shares repurchased (note 10) | **(281)** | (370) |
| Preferred share dividends and other equity distributions | **(58)** | (57) |
| Common share dividends | **(804)** | (745) |
| **Balance, end of period** | **5028** | 4077 |
| **Shareholders and other equity holders' accumulated other comprehensive income (loss) ("AOCI")** |  |  |
| Balance, beginning of period | **18135** | 18663 |
| Change in unrealized foreign exchange gains (losses) on net foreign operations | **622** | 59 |
| Changes in insurance / reinsurance finance income (expenses) | **1963** | (761) |
| Change in unrealized gains (losses) on fair value through OCI investments | **(2037)** | 1675 |
| Other changes in OCI attributed to shareholders and other equity holders | **(10)** | (12) |
| **Balance, end of period** | **18673** | 19624 |
| **Total shareholders and other equity holders' equity, end of period** | **50632** | 51135 |
| **Participating policyholders' equity** |  |  |
| Balance, beginning of period | **836** | 567 |
| Net income (loss) attributed to participating policyholders | **46** | 72 |
| Other comprehensive income (losses) attributed to participating policyholders | **(10)** | (2) |
| **Balance, end of period** | **872** | 637 |
| **Non-controlling interests** |  |  |
| Balance, beginning of period | **1531** | 1421 |
| Net income (loss) attributed to non-controlling interests | **43** | 66 |
| Other comprehensive income (losses) attributed to non-controlling interests | **(15)** | (95) |
| Contributions (distributions and acquisitions), net | **(7)** | - |
| **Balance, end of period** | **1552** | 1392 |
| **Total equity, end of period** | **$53056** | $53164 |
| 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 – First Quarter 2026 64

**Consolidated Statements of Cash Flows** 

---

| | | |
|:---|:---|:---|
| **For the three months ended March 31,** |  | (note 2) |
| (Canadian $ in millions, unaudited) | **2026** | 2025 |
| **Operating activities** |  |  |
| Net income (loss) | **$1236** | $623 |
| Adjustments: |  |  |
| Increase (decrease) in insurance contract net liabilities (note 5) | **1937** | 5101 |
| Increase (decrease) in investment contract liabilities | **131** | 91 |
| (Increase) decrease in reinsurance contract assets, excluding reinsurance transaction noted below (note 5) | **(417)** | (547) |
| Amortization of (premium) discount on invested assets | **(82)** | (70) |
| Contractual service margin ("CSM") amortization | **(736)** | (623) |
| Other amortization | **250** | 195 |
| Net realized and unrealized (gains) losses and impairment of assets  | **1929** | 877 |
| Deferred income tax expenses (recoveries) | **(105)** | (74) |
| Loss (gain) on reinsurance transaction (pre-tax) (note 5) | **-** | (9) |
| Cash provided by operating activities before undernoted items | **4143** | 5564 |
| Changes in policy related and operating receivables and payables | **(607)** | 1306 |
| **Cash provided by (used in) operating activities** | **3536** | 6870 |
| **Investing activities** |  |  |
| Purchases of invested assets and derivatives | **(35045)** | (35141) |
| Disposals and repayments | **31652** | 28322 |
| Change in investment broker net receivables and payables | **482** | 301 |
| Net cash increase (decrease) from sale (purchase) of subsidiaries | **(77)** | - |
| **Cash provided by (used in) investing activities** | **(2988)** | (6518) |
| **Financing activities** |  |  |
| Change in repurchase agreements | **114** | (587) |
| Secured borrowings including securitization transactions | **708** | 151 |
| Change in deposits from Bank clients, net | **(882)** | 889 |
| Lease payments | **(26)** | (30) |
| Shareholders' dividends and other equity distributions | **(862)** | (802) |
| Common shares repurchased (note 10) | **(371)** | (507) |
| Common shares issued, net (note 10) | **69** | 28 |
| Redemption of long-term debt (note 8) | **(1365)** | - |
| Contributions from (distributions to) non-controlling interests, net | **(7)** | - |
| **Cash provided by (used in) financing activities** | **(2622)** | (858) |
| **Cash and short-term securities** |  |  |
| Increase (decrease) during the period | **(2074)** | (506) |
| Effect of foreign exchange rate changes on cash and short-term securities | **359** | 79 |
| Balance, beginning of period | **26703** | 25789 |
| **Balance, end of period** | **$24988** | $25362 |
| **Supplemental disclosures on cash flow information** |  |  |
| Interest received | **$3251** | $3194 |
| Interest paid | **351** | 376 |
| Income taxes paid | **270** | 292 |
| 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 – First Quarter 2026 65

**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 Canada and Asia, and primarily as John Hancock 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 2025 Annual Consolidated

Financial Statements, except as disclosed in note 2.

These Interim Consolidated Financial Statements should be read in conjunction with the audited Annual Consolidated

Financial Statements for the year ended December 31, 2025, included on pages 144 to 271 of the Company's 2025 Annual

Report, as well as the disclosures on risk in denoted components of the "Risk Management and Risk Factors Update" section

of the First Quarter 2026 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 months ended March 31, 2026 were authorized for

issue by MFC's Board of Directors on May 13, 2026.

**(b)Basis of Preparation**

Refer to note 1 of the Company's 2025 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 a 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**

**(a)Changes in Accounting and Reporting Policy**

**(I)Annual Improvements to IFRS Accounting Standards – Volume 11**

Annual Improvements to IFRS Accounting Standards – Volume 11 was issued in July 2024 to be 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 did not 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" ("IFRS 9") and IFRS 7 "Financial Instruments: Disclosures" ("IFRS 7")) were issued in May 2024 to be effective

for years beginning on or after January 1, 2026 and to be applied retrospectively with no restatement of comparative periods

required.

The amendments clarify guidance on timing of derecognition of financial liabilities on their settlement dates and introduce an

accounting policy option to derecognize financial liabilities settled using electronic payment systems before the settlement date

if certain conditions are met. As the Company already applies settlement date accounting for financial liabilities, the

amendments did not have a significant impact on the Company's derecognition of financial liabilities, other than the

presentation in the Statements of Cash Flows which was revised to reconcile to gross cash and short-term securities as shown

on the Statements of Financial Position. Net payments in transit of $1,029 as at March 31, 2025 were reclassified to Changes

in policy related and operating receivable and payables, in order to conform to the current period presentation.

The amendments also clarify classification guidance on the assessment of cash flow characteristics of financial assets with

terms referencing environmental, social and corporate governance linked features and other contingent features not directly

related to changes in basic lending risks, and introduce additional related disclosure requirements for financial instruments with

such contingent features. Adoption of these amendments did not have a significant impact on the Company's Consolidated

Financial Statements.

Manulife Financial Corporation – First Quarter 2026 66

**(b)Future Accounting and Reporting Changes**

**(I)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.

**(II)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 recover GMT of $17 for the three months ended March 31, 2026, arising from its operations in

Barbados and Hong Kong (2025 – pay $61). The recovery is due to a change in estimate in the allocation of prior year taxes in

Hong Kong between income tax and GMT. The prior year reallocation leaves the overall tax liability unchanged and has no net

impact on earnings.

The amendments also provide 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 – First Quarter 2026 67

**Note 3 Invested Assets and Investment Income**

**(a)Carrying Values and Fair Values of Invested Assets**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **As at March 31, 2026** | 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> | **$2** | **$17816** | **$7170** | **$24988** | **$24988** |
| Debt securities<sup>(6)</sup> |  |  |  |  |  |
| Canadian government and agency | **1033** | **17788** | **-** | **18821** | **18821** |
| U.S. government and agency | **43** | **26116** | **643** | **26802** | **26528** |
| Other government and agency | **51** | **39311** | **306** | **39668** | **39668** |
| Corporate | **2831** | **123656** | **580** | **127067** | **126875** |
| Mortgage / asset-backed securities | **283** | **2530** | **-** | **2813** | **2813** |
| Public equities (FVTPL mandatory) | **40660** | **-** | **-** | **40660** | **40660** |
| Mortgages | **1327** | **28877** | **27609** | **57813** | **58219** |
| Private placements | **932** | **51500** | **-** | **52432** | **52432** |
| Loans to Bank clients | **-** | **-** | **2866** | **2866** | **2868** |
| Real estate |  |  |  |  |  |
| Own use property<sup>(7)</sup> | **-** | **-** | **2655** | **2655** | **2785** |
| Investment property | **-** | **-** | **9612** | **9612** | **9612** |
| Other invested assets |  |  |  |  |  |
| Alternative long-duration assets<sup>(8)</sup> | **36413** | **366** | **13914** | **50693** | **51838** |
| Various other<sup>(9)</sup> | **139** | **-** | **4785** | **4924** | **4924** |
| **Total invested assets** | **$83714** | **$307960** | **$70140** | **$461814** | **$463031** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| As at December 31, 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> | $- | $20827 | $5876 | $26703 | $26703 |
| Debt securities<sup>(6)</sup> |  |  |  |  |  |
| Canadian government and agency | 966 | 17708 | - | 18674 | 18674 |
| U.S. government and agency | 39 | 26595 | 632 | 27266 | 26999 |
| Other government and agency | 63 | 37419 | - | 37482 | 37482 |
| Corporate | 2742 | 125184 | 504 | 128430 | 128248 |
| Mortgage / asset-backed securities | 270 | 1992 | - | 2262 | 2262 |
| Public equities (FVTPL mandatory) | 40971 | - | - | 40971 | 40971 |
| Mortgages | 1351 | 28589 | 27179 | 57119 | 57600 |
| Private placements | 953 | 50829 | - | 51782 | 51782 |
| Loans to Bank clients | - | - | 2735 | 2735 | 2699 |
| Real estate |  |  |  |  |  |
| Own use property<sup>(7)</sup> | - | - | 2631 | 2631 | 2762 |
| Investment property | - | - | 10051 | 10051 | 10051 |
| Other invested assets |  |  |  |  |  |
| Alternative long-duration assets<sup>(8)</sup> | 35101 | 383 | 13545 | 49029 | 50132 |
| Various other<sup>(9)</sup> | 145 | - | 4648 | 4793 | 4793 |
| **Total invested assets** | $82601 | $309526 | $67801 | $459928 | $461158 |

---

<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, or 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, or 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 Payments 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 $366 (December 31, 2025 – $383) of other invested assets,

which qualify as having SPPI qualifying cash flows. Invested assets which do not have SPPI qualifying cash flows as at March 31, 2026 include debt securities,

private placements and other invested assets with fair values of $nil, $90 and $558, respectively (December 31, 2025 – $nil, $98 and $552, respectively). The

change in the fair value of these non-SPPI invested assets for the three months ended March 31, 2026 was a decrease of $2 (for the year ended December 31,

2025 – a $29 decrease).

<sup>(5)</sup> Includes short-term securities with remaining maturities of less than one year at acquisition amounting to $10,552 (December 31, 2025 – $11,791), cash

equivalents with remaining maturities of less than 90 days at acquisition amounting to $7,346 (December 31, 2025 – $9,135) and cash of $7,090 (December

31, 2025 – $5,777).

<sup>(6)</sup> Debt securities include securities which were acquired with remaining maturities of less than one year and less than 90 days of $1,207 and $298, respectively

(December 31, 2025 – $1,842 and $236, respectively).

<sup>(7)</sup> Own use property of $2,487 (December 31, 2025 – $2,466), 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 $168 (December 31, 2025 –

$165) is carried at cost less accumulated depreciation and any accumulated impairment losses.

<sup>(8)</sup> Alternative long-duration assets ("ALDA") include infrastructure of $19,260, investments in private equity of $19,220, timber and agriculture of $6,045, energy of

$1,756 and various other ALDA of $4,412 (December 31, 2025 – $18,629, $18,466, $6,012, $1,658, and $4,264, respectively).

<sup>(9)</sup> Includes $4,388 (December 31, 2025 – $4,266) of leveraged leases.

Manulife Financial Corporation – First Quarter 2026 68

**(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 March 31, 2026** | Total fair <br>value<br>| Level 1 | Level 2 | Level 3 |
| **Cash and short-term securities** |  |  |  |  |
| FVOCI | **$17816** | **$-** | **$17816** | **$-** |
| FVTPL | **2** | **-** | **2** | **-** |
| Other | **7090** | **7090** | **-** | **-** |
| **Debt securities** |  |  |  |  |
| FVOCI |  |  |  |  |
| Canadian government and agency | **17788** | **-** | **17788** | **-** |
| U.S. government and agency | **26116** | **-** | **26116** | **-** |
| Other government and agency | **39311** | **-** | **39297** | **14** |
| Corporate | **123656** | **-** | **123571** | **85** |
| Residential mortgage-backed securities | **1** | **-** | **1** | **-** |
| Commercial mortgage-backed securities | **807** | **-** | **807** | **-** |
| Other asset-backed securities | **1722** | **-** | **1722** | **-** |
| FVTPL |  |  |  |  |
| Canadian government and agency | **1033** | **-** | **1033** | **-** |
| U.S. government and agency | **43** | **-** | **43** | **-** |
| Other government and agency | **51** | **-** | **51** | **-** |
| Corporate | **2831** | **-** | **2831** | **-** |
| Commercial mortgage-backed securities | **5** | **-** | **5** | **-** |
| Other asset-backed securities | **278** | **-** | **278** | **-** |
| **Private placements**<sup>(1)</sup> |  |  |  |  |
| FVOCI | **51500** | **-** | **43949** | **7551** |
| FVTPL | **932** | **-** | **786** | **146** |
| **Mortgages** |  |  |  |  |
| FVOCI | **28877** | **-** | **-** | **28877** |
| FVTPL | **1327** | **-** | **-** | **1327** |
| **Public equities** |  |  |  |  |
| FVTPL | **40660** | **40522** | **138** | **-** |
| **Real estate**<sup>(2)</sup> |  |  |  |  |
| Investment property | **9612** | **-** | **-** | **9612** |
| Own use property | **2487** | **-** | **-** | **2487** |
| **Other invested assets**<sup>(3)</sup> | **40708** | **71** | **-** | **40637** |
| **Segregated funds net assets**<sup>(4)</sup> | **455668** | **413580** | **39268** | **2820** |
| **Total** | **$870321** | **$461263** | **$315502** | **$93556** |

---

<sup>(1)</sup> Fair value of private placements is determined through an internal valuation methodology using both observable and unobservable inputs. Unobservable 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 unobservable inputs are capitalization rates ranging from 3.25% to 11.00% for the three months ended March 31, 2026

(ranging from 3.20% to 11.00% for the year ended December 31, 2025), terminal capitalization rates ranging from 3.40% to 10.00% for the three months ended

March 31, 2026 (ranging from 3.25% to 10.00% for the year ended December 31, 2025) and discount rates ranging from 5.65% to 13.75% for the three months

ended March 31, 2026 (ranging from 3.60% to 13.75% for the year ended December 31, 2025). 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 unobservable 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 $34,156 (December 31, 2025 –

$32,804) 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 three months

ended March 31, 2026 ranged from 8.07% to 17.50% (ranged from 7.87% to 20.00% for the year ended December 31, 2025). 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 three months ended

March 31, 2026 ranged from 3.25% to 6.25% (ranged from 3.25% to 6.25% for the year ended December 31, 2025). 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 – First Quarter 2026 69

---

| | | | | |
|:---|:---|:---|:---|:---|
| As at December 31, 2025 | Total fair <br>value<br>| Level 1 | Level 2 | Level 3 |
| **Cash and short-term securities** |  |  |  |  |
| FVOCI | $20827 | $- | $20827 | $- |
| FVTPL | - | - | - | - |
| Other | 5777 | 5777 | - | - |
| **Debt securities** |  |  |  |  |
| **FVOCI** |  |  |  |  |
| Canadian government and agency | 17708 | - | 17708 | - |
| U.S. government and agency | 26595 | - | 26595 | - |
| Other government and agency | 37419 | - | 37405 | 14 |
| Corporate | 125184 | - | 125090 | 94 |
| Residential mortgage-backed securities | 1 | - | 1 | - |
| Commercial mortgage-backed securities | 781 | - | 781 | - |
| Other asset-backed securities | 1210 | - | 1210 | - |
| **FVTPL** |  |  |  |  |
| Canadian government and agency | 966 | - | 966 | - |
| U.S. government and agency | 39 | - | 39 | - |
| Other government and agency | 63 | - | 63 | - |
| Corporate | 2742 | - | 2742 | - |
| Commercial mortgage-backed securities | 5 | - | 5 | - |
| Other asset-backed securities | 265 | - | 255 | 10 |
| **Private placements**<sup>(1)</sup> |  |  |  |  |
| FVOCI | 50829 | - | 40502 | 10327 |
| FVTPL | 953 | - | 799 | 154 |
| **Mortgages** |  |  |  |  |
| FVOCI | 28589 | - | - | 28589 |
| FVTPL | 1351 | - | - | 1351 |
| **Public equities** |  |  |  |  |
| FVTPL | 40971 | 40900 | 71 | - |
| **Real estate**<sup>(2)</sup> |  |  |  |  |
| Investment property | 10051 | - | - | 10051 |
| Own use property | 2466 | - | - | 2466 |
| **Other invested assets**<sup>(3)</sup> | 39405 | 70 | - | 39335 |
| **Segregated funds net assets**<sup>(4)</sup> | 461254 | 423407 | 34949 | 2898 |
| **Total** | $875451 | $470154 | $310008 | $95289 |

---

Note: For footnotes (1) to (4), refer to the "Fair value measurement" table as at March 31, 2026 above.

The following tables present fair value of invested assets not measured at fair value by the fair value hierarchy.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **As at March 31, 2026** | Carrying <br>value<br>| Total fair <br>value<br>| Level 1 | Level 2 | Level 3 |
| Short-term securities | **$80** | **$80** | **$-** | **$-** | **$80** |
| Mortgages | **27609** | **28015** | **-** | **-** | **28015** |
| Loans to Bank clients | **2866** | **2868** | **-** | **2868** | **-** |
| Real estate – own use property | **168** | **298** | **-** | **-** | **298** |
| Public bonds held at amortized cost | **1529** | **1063** | **-** | **1063** | **-** |
| Other invested assets<sup>(1)</sup> | **14909** | **16054** | **566** | **-** | **15488** |
| **Total invested assets disclosed at fair value** | **$47161** | **$48378** | **$566** | **$3931** | **$43881** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| As at December 31, 2025 | Carrying <br>value<br>| Total fair <br>value<br>| Level 1 | Level 2 | Level 3 |
| Short-term securities | $99 | $99 | $- | $- | $99 |
| Mortgages | 27179 | 27660 | - | - | 27660 |
| Loans to Bank clients | 2735 | 2699 | - | 2699 | - |
| Real estate – own use property | 165 | 296 | - | - | 296 |
| Public bonds held at amortized cost | 1136 | 687 | - | 687 | - |
| Other invested assets<sup>(1)</sup> | 14417 | 15520 | 564 | - | 14956 |
| **Total invested assets disclosed at fair value** | $45731 | $46961 | $564 | $3386 | $43011 |

---

<sup>(1)</sup> The carrying value of other invested assets includes leveraged leases of $4,388 (December 31, 2025 – $4,266), other equity method accounted investments

and other invested assets of $10,521 (December 31, 2025 – $10,151). 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 – First Quarter 2026 70

**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 months ended March

31, 2026, the Company had $nil and $nil transfers of assets between Level 1 and Level 2 (March 31, 2025 – $nil and $nil).

For segregated funds net assets, during the three months ended March 31, 2026, the Company had $8 transfers of assets

from Level 1 to Level 2 (March 31, 2025 – $nil). During the three months ended March 31, 2026, the Company had $nil

transfers of assets from Level 2 to Level 1 (March 31, 2025 – $nil).

**Invested assets and segregated funds net assets measured at fair value using significant unobservable 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 unobservable inputs are used to determine fair

value. The Company prioritizes the use of market-based inputs over unobservable inputs in determining Level 3 fair values.

The gains and losses in the tables below include the changes in fair value due to both observable and unobservable factors.

The following tables present the movement in invested assets, net derivatives and segregated funds net assets measured at

fair value using significant unobservable inputs (Level 3) for the three months ended March 31, 2026 and March 31, 2025.

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **For the three months ended** <br>**March 31, 2026**<br>| Balance, <br>January <br>1, 2026<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>**March** <br>**31, 2026**<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 | **94** | **-** | **1** | **-** | **-** | **-** | **-** | **(11)** | **1** | **85** | **-** |
| **FVTPL** |  |  |  |  |  |  |  |  |  |  |  |
| Other securitized assets | **10** | **-** | **-** | **-** | **(10)** | **-** | **-** | **-** | **-** | **-** | **-** |
| **Private placements** |  |  |  |  |  |  |  |  |  |  |  |
| FVOCI | **10327** | **(41)** | **(21)** | **1154** | **(509)** | **(227)** | **18** | **(3263)** | **113** | **7551** | **-** |
| FVTPL | **154** | **(11)** | **-** | **17** | **-** | **(15)** | **-** | **-** | **1** | **146** | **(10)** |
| **Mortgages** |  |  |  |  |  |  |  |  |  |  |  |
| FVOCI | **28589** | **(7)** | **(364)** | **911** | **(409)** | **(177)** | **-** | **-** | **334** | **28877** | **-** |
| FVTPL | **1351** | **(16)** | **-** | **23** | **(22)** | **(10)** | **-** | **-** | **1** | **1327** | **-** |
| **Investment property** | **10051** | **(36)** | **-** | **12** | **(530)** | **-** | **-** | **-** | **115** | **9612** | **(34)** |
| **Own use property** | **2466** | **(8)** | **-** | **3** | **-** | **-** | **-** | **-** | **26** | **2487** | **(8)** |
| **Other invested assets** | **39335** | **306** | **11** | **1062** | **(138)** | **(470)** | **-** | **-** | **531** | **40637** | **340** |
| **Total invested assets** | **92391** | **187** | **(373)** | **3182** | **(1618)** | **(899)** | **18** | **(3274)** | **1122** | **90736** | **288** |
| **Derivatives, net** | **4** | **(22)** | **-** | **-** | **-** | **(12)** | **-** | **-** | **(2)** | **(32)** | **(27)** |
| **Segregated funds net assets** | **2898** | **23** | **(1)** | **(11)** | **(108)** | **(7)** | **-** | **-** | **26** | **2820** | **8** |
| **Total** | **$95293** | **$188** | **$(374)** | **$3171** | **$(1726)** | **$(918)** | **$18** | **$(3274)** | **$1146** | **$93524** | **$269** |

---

<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.

<sup>(4)</sup> The corporate debt securities and private placements transferred from Level 3 to Level 2, totaling $3,274 in the current period, reflect a new pricing

methodology that primarily uses market-observable inputs.

Manulife Financial Corporation – First Quarter 2026 71

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| For the three months ended <br>March 31, 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>March 31, <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 | $- | $5 | $- | $- | $- | $- | $- | $(1) | $14 | $- |
| Corporate | 44 | - | 1 | - | - | - | - | - | - | 45 | - |
| **FVTPL** |  |  |  |  |  |  |  |  |  |  |  |
| Other securitized assets | - | - | - | 10 | - | - | - | - | - | 10 | - |
| **Private placements** |  |  |  |  |  |  |  |  |  |  |  |
| FVOCI | 8764 | 1 | (154) | 1242 | (214) | (361) | 138 | (10) | 29 | 9435 | - |
| FVTPL | 136 | (10) | - | 20 | - | (15) | 1 | - | - | 132 | (10) |
| **Mortgages** |  |  |  |  |  |  |  |  |  |  |  |
| FVOCI | 28792 | (19) | 353 | 350 | (257) | (187) | - | - | 35 | 29067 | - |
| FVTPL | 1239 | 16 | - | 30 | (6) | (11) | - | - | (1) | 1267 | - |
| **Investment property** | 10589 | (40) | - | 70 | (148) | - | - | - | 21 | 10492 | (58) |
| **Own use property** | 2500 | (12) | - | 1 | - | - | - | - | 16 | 2505 | (12) |
| **Other invested assets** | 38466 | 125 | 17 | 1396 | (824) | (534) | - | - | 108 | 38754 | (38) |
| **Total invested assets** | 90540 | 61 | 222 | 3119 | (1449) | (1108) | 139 | (10) | 207 | 91721 | (118) |
| **Derivatives, net** | (3235) | 449 | - | - | - | (14) | - | 391 | (10) | (2419) | 451 |
| **Segregated funds net assets** | 3334 | (36) | (141) | 20 | (29) | 40 | - | - | 1 | 3189 | 3 |
| **Total** | $90639 | $474 | $81 | $3139 | $(1478) | $(1082) | $139 | $381 | $198 | $92491 | $336 |

---

Note: For footnotes (1) to (3), refer to the "Invested assets and segregated funds net assets measured at fair value using significant unobservable inputs (Level 3)"

table for the three months ended March 31, 2026 above.

Transfers into Level 3 primarily result where a lack of observable market data (versus the previous period) arises. Transfers

out of 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 March 31,** | **2026** | 2025 |
| Interest income | **$3596** | $3504 |
| Dividends, rental income and other income | **957** | 907 |
| Impairments (loss) / recovery, net | **(38)** | (59) |
| Other | **21** | (118) |
| Investment income | **4536** | 4234 |
| Debt securities | **(872)** | (524) |
| Public equities | **(852)** | (359) |
| Mortgages | **(22)** | 3 |
| Private placements | **60** | (194) |
| Real estate | **(36)** | (28) |
| Other invested assets | **369** | 41 |
| Derivatives | **(31)** | 69 |
| Realized and unrealized gains (losses) on assets supporting insurance and investment contract liabilities | **(1384)** | (992) |
| Investment expenses | **(273)** | (296) |
| **Net investment income (loss)** | **$2879** | $2946 |

---

Manulife Financial Corporation – First Quarter 2026 72

**(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 March 31, 2026** | 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 | **$24988** | **$-** | **$-** | **$-** | **$-** | **$-** | **$24988** |
| Debt securities |  |  |  |  |  |  |  |
| Canadian government and agency | **1054** | **985** | **747** | **4014** | **12021** | **-** | **18821** |
| U.S. government and agency | **199** | **752** | **1366** | **2652** | **21833** | **-** | **26802** |
| Other government and agency | **672** | **958** | **870** | **3571** | **33597** | **-** | **39668** |
| Corporate | **7787** | **15081** | **16554** | **35883** | **51762** | **-** | **127067** |
| Mortgage / asset-backed securities | **124** | **234** | **356** | **497** | **1602** | **-** | **2813** |
| Public equities | **-** | **-** | **-** | **-** | **-** | **40660** | **40660** |
| Mortgages | **6732** | **12477** | **10198** | **10243** | **6466** | **11697** | **57813** |
| Private placements | **2309** | **6259** | **5625** | **10839** | **27347** | **53** | **52432** |
| Loans to Bank clients | **35** | **12** | **2** | **-** | **6** | **2811** | **2866** |
| Real estate |  |  |  |  |  |  |  |
| Own use property | **-** | **-** | **-** | **-** | **-** | **2655** | **2655** |
| Investment property | **-** | **-** | **-** | **-** | **-** | **9612** | **9612** |
| Other invested assets |  |  |  |  |  |  |  |
| Alternative long-duration assets | **-** | **18** | **84** | **289** | **511** | **49791** | **50693** |
| Various other | **20** | **-** | **-** | **4123** | **244** | **537** | **4924** |
| **Total invested assets** | **$43920** | **$36776** | **$35802** | **$72111** | **$155389** | **$117816** | **$461814** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 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, 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 | $26703 | $- | $- | $- | $- | $- | $26703 |
| Debt securities |  |  |  |  |  |  |  |
| Canadian government and agency | 1349 | 1082 | 779 | 3888 | 11576 | - | 18674 |
| U.S. government and agency | 160 | 798 | 1619 | 2625 | 22064 | - | 27266 |
| Other government and agency | 349 | 1054 | 804 | 3155 | 32120 | - | 37482 |
| Corporate | 8522 | 15619 | 16387 | 36055 | 51847 | - | 128430 |
| Mortgage / asset-backed securities | 121 | 212 | 215 | 388 | 1326 | - | 2262 |
| Public equities | - | - | - | - | - | 40971 | 40971 |
| Mortgages | 6572 | 12099 | 9922 | 6825 | 10288 | 11413 | 57119 |
| Private placements | 2030 | 6001 | 5197 | 10796 | 27718 | 40 | 51782 |
| Loans to Bank clients | 46 | 9 | 4 | - | - | 2676 | 2735 |
| Real estate |  |  |  |  |  |  |  |
| Own use property | - | - | - | - | - | 2631 | 2631 |
| Investment property | - | - | - | - | - | 10051 | 10051 |
| Other invested assets |  |  |  |  |  |  |  |
| Alternative long-duration assets | - | 18 | 104 | 287 | 504 | 48116 | 49029 |
| Various other | 20 | - | - | 3725 | 521 | 527 | 4793 |
| **Total invested assets** | $45872 | $36892 | $35031 | $67744 | $157964 | $116425 | $459928 |

---

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

Manulife Financial Corporation – First Quarter 2026 73

**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 2025 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.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| **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** | **Qualifying hedge accounting relationships** | **Qualifying hedge accounting relationships** | **Qualifying hedge accounting relationships** |  |  |  |
| **Fair value hedges** | Interest rate swaps | **$196423** | **$2772** | **$3809** | $196158 | $2793 | $3826 |
|  | Foreign currency swaps | **17137** | **112** | **2330** | 16383 | 71 | 2385 |
|  | Forward contracts  | **25340** | **15** | **2400** | 25324 | 30 | 2730 |
|  | Interest rate futures | **19248** | **-** | **-** | - | - | - |
| **Cash flow hedges** | Interest rate swaps | **11143** | **58** | **93** | 10946 | 31 | 63 |
|  | Foreign currency swaps | **650** | **-** | **201** | 650 | - | 190 |
|  | Equity contracts | **386** | **12** | **-** | 298 | - | - |
| **Net investment hedges** | Forward contracts | **576** | **16** | **-** | 587 | 3 | 6 |
| Total derivatives in qualifying hedge accounting relationships | Total derivatives in qualifying hedge accounting relationships | **270903** | **2985** | **8833** | 250346 | 2928 | 9200 |
| **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 | **114843** | **2372** | **3086** | 112633 | 2403 | 3050 |
|  | Interest rate futures | **3388** | **-** | **-** | 21483 | - | - |
|  | Interest rate options | **4922** | **9** | **-** | 4876 | 8 | - |
|  | Foreign currency swaps | **38007** | **2609** | **479** | 36417 | 2434 | 558 |
|  | Currency rate futures | **2238** | **-** | **-** | 2242 | - | - |
|  | Forward contracts | **55919** | **912** | **1466** | 55555 | 848 | 1511 |
|  | Equity contracts | **21230** | **770** | **90** | 23995 | 1006 | 28 |
|  | Credit default swaps | **110** | **1** | **-** | 109 | 1 | - |
|  | Equity futures | **6239** | **-** | **-** | 5354 | - | - |
| Total derivatives not designated in qualifying hedge accounting <br>relationships | Total derivatives not designated in qualifying hedge accounting <br>relationships | **246896** | **6673** | **5121** | 262664 | 6700 | 5147 |
| **Total derivatives** | **Total derivatives** | **$517799** | **$9658** | **$13954** | $513010 | $9628 | $14347 |

---

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 March 31, 2026** | Remaining term to maturity | Remaining term to maturity | Remaining term to maturity | Remaining term to maturity | Total |
| **As at March 31, 2026** | 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 | **$813** | **$818** | **$805** | **$7222** | **$9658** |
| Derivative liabilities | **1909** | **1861** | **803** | **9381** | **13954** |
|  | Remaining term to maturity | Remaining term to maturity | Remaining term to maturity | Remaining term to maturity | Total |
| As at December 31, 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 | $970 | $842 | $809 | $7007 | $9628 |
| Derivative liabilities | 2270 | 1746 | 875 | 9456 | 14347 |

---

Manulife Financial Corporation – First Quarter 2026 74

**Fair value and the fair value hierarchy of derivative instruments**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **As at March 31, 2026** | Fair value | Level 1 | Level 2 | Level 3 |
| **Derivative assets** |  |  |  |  |
| Interest rate contracts | **$5293** | **$-** | **$5265** | **$28** |
| Foreign exchange contracts | **3582** | **-** | **3582** | **-** |
| Equity contracts | **782** | **-** | **760** | **22** |
| Credit default swaps | **1** | **-** | **1** | **-** |
| **Total derivative assets** | **$9658** | **$-** | **$9608** | **$50** |
| **Derivative liabilities** |  |  |  |  |
| Interest rate contracts | **$10045** | **$-** | **$9981** | **$64** |
| Foreign exchange contracts | **3819** | **-** | **3815** | **4** |
| Equity contracts | **90** | **-** | **76** | **14** |
| **Total derivative liabilities** | **$13954** | **$-** | **$13872** | **$82** |
| As at December 31, 2025 | Fair value | Level 1 | Level 2 | Level 3 |
| **Derivative assets** |  |  |  |  |
| Interest rate contracts | $5403 | $- | $5380 | $23 |
| Foreign exchange contracts | 3218 | - | 3218 | - |
| Equity contracts | 1006 | - | 956 | 50 |
| Credit default swaps | 1 | - | 1 | - |
| **Total derivative assets** | $9628 | $- | $9555 | $73 |
| **Derivative liabilities** |  |  |  |  |
| Interest rate contracts | $10367 | $- | $10307 | $60 |
| Foreign exchange contracts | 3952 | - | 3949 | 3 |
| Equity contracts | 28 | - | 22 | 6 |
| **Total derivative liabilities** | $14347 | $- | $14278 | $69 |

---

Movement in net derivatives measured at fair value using significant unobservable 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 $224 (December 31, 2025 –

$221).

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 March 31, 2026, these embedded derivative liabilities had a fair value of

$232 (December 31, 2025 – $277).

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 – First Quarter 2026 75

**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 three

months ended March 31, 2026 and for the year ended December 31, 2025, and insurance finance (income) expenses for the

three months ended March 31, 2026.

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 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>| **$(474)** | **$92** | **$187** | **$1** | **$(194)** |
| Opening GMM and VFA insurance contract liabilities | **345183** | **22935** | **29875** | **(61)** | **397932** |
| Opening Premium Allocation Approach ("PAA") insurance contract net liabilities | **13446** | **792** | **-** | **(638)** | **13600** |
| Opening insurance contract liabilities for account of segregated fund holders | **129006** | **-** | **-** | **-** | **129006** |
| **Net opening balance, January 1, 2026** | **487161** | **23819** | **30062** | **(698)** | **540344** |
| Changes that relate to current services | **(401)** | **(358)** | **(842)** | **-** | **(1601)** |
| Changes that relate to future services | **(1110)** | **312** | **1071** | **-** | **273** |
| Changes that relate to past services | **(23)** | **(4)** | **-** | **-** | **(27)** |
| **Insurance service result** | **(1534)** | **(50)** | **229** | **-** | **(1355)** |
| Insurance finance (income) expenses | **(1422)** | **(97)** | **120** | **-** | **(1399)** |
| Effects of movements in foreign exchange rates | **5581** | **415** | **473** | **-** | **6469** |
| **Total changes in income and OCI** | **2625** | **268** | **822** | **-** | **3715** |
| Total cash flows | **3850** | **-** | **-** | **-** | **3850** |
| Movements related to insurance acquisition cash flows | **(1)** | **-** | **-** | **-** | **(1)** |
| Change in PAA balance | **242** | **11** | **-** | **54** | **307** |
| Movements related to insurance contract liabilities for account of segregated <br>fund holders<br>| **(3480)** | **-** | **-** | **-** | **(3480)** |
| **Net closing balance** | **490397** | **24098** | **30884** | **(644)** | **544735** |
| Closing GMM and VFA insurance contract assets  | **(477)** | **93** | **183** | **-** | **(201)** |
| Closing GMM and VFA insurance contract liabilities | **351660** | **23202** | **30701** | **(60)** | **405503** |
| Closing PAA insurance contract net liabilities | **13688** | **803** | **-** | **(584)** | **13907** |
| Closing insurance contract liabilities for account of segregated fund holders | **125526** | **-** | **-** | **-** | **125526** |
| **Net closing balance, March 31, 2026** | **$490397** | **$24098** | **$30884** | **$(644)** | **$544735** |

---

---

| | |
|:---|:---|
| **Insurance finance (income) expenses ("IFIE")** | **For the three** <br>**months** <br>**ended March** <br>**31, 2026**<br>|
| Insurance finance (income) expenses for products not under PAA, per disclosure above<sup>(1)</sup> | **$(1399)** |
| Insurance finance (income) expenses for products under PAA | **58** |
| Reclassification of derivative OCI to IFIE – cash flow hedges | **37** |
| Reclassification of derivative (income) loss changes to IFIE – fair value hedge | **(300)** |
| **Total insurance finance (income) expenses from insurance contracts issued** | **(1604)** |
| Effect of movements in foreign exchange rates | **765** |
| **Total insurance finance (income) expenses from insurance contracts issued and effect of movement in foreign exchange rates** | **$(839)** |
| Portion recognized in (income) expenses, including effects of foreign exchange rates | **3100** |
| Portion recognized in OCI, including effects of foreign exchange rates | **(3939)** |

---

<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 – First Quarter 2026 76

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | 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  | $(490) | $144 | $248 | $- | $(98) |
| Opening GMM and VFA insurance contract liabilities | 334706 | 22160 | 26517 | (61) | 383322 |
| Opening 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 | (551) | (1418) | (3130) | - | (5099) |
| Changes that relate to future services | (8405) | 1972 | 6846 | - | 413 |
| Changes that relate to past services | 81 | (15) | - | - | 66 |
| **Insurance service result** | (8875) | 539 | 3716 | - | (4620) |
| Insurance finance (income) expenses | 21158 | 1238 | 434 | - | 22830 |
| Effects of movements in foreign exchange rates | (12220) | (1054) | (853) | - | (14127) |
| **Total changes in income and OCI** | 63 | 723 | 3297 | - | 4083 |
| Total cash flows | 10436 | - | - | - | 10436 |
| Movements related to insurance acquisition cash flows | (6) | - | - | 1 | (5) |
| Change in PAA balance | 245 | 101 | - | 179 | 525 |
| Movements related to insurance contract liabilities for account of segregated <br>fund holders<br>| 2461 | - | - | - | 2461 |
| **Net closing balance** | 487161 | 23819 | 30062 | (698) | 540344 |
| Closing GMM and VFA insurance contract assets  | (474) | 92 | 187 | 1 | (194) |
| Closing GMM and VFA insurance contract liabilities | 345183 | 22935 | 29875 | (61) | 397932 |
| Closing PAA insurance contract net liabilities | 13446 | 792 | - | (638) | 13600 |
| Closing insurance contract liabilities for account of segregated fund holders | 129006 | - | - | - | 129006 |
| **Net closing balance, December 31, 2025** | $487161 | $23819 | $30062 | $(698) | $540344 |

---

**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 three months ended March 31, 2026 and for the year

ended December 31, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 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 | **$51618** | **$5902** | **$3086** | **$60606** |
| Opening reinsurance contract held liabilities | **(3995)** | **347** | **408** | **(3240)** |
| Opening PAA reinsurance contract net assets | **228** | **14** | **-** | **242** |
| **Net opening balance, January 1, 2026** | **47851** | **6263** | **3494** | **57608** |
| Changes that relate to current services | **(219)** | **(125)** | **(106)** | **(450)** |
| Changes that relate to future services | **(28)** | **70** | **71** | **113** |
| Changes that relate to past services | **4** | **-** | **-** | **4** |
| **Insurance service result** | **(243)** | **(55)** | **(35)** | **(333)** |
| Insurance finance (income) expenses from reinsurance contracts | **(196)** | **(33)** | **32** | **(197)** |
| Effects of changes in non-performance risk of reinsurers | **1** | **-** | **-** | **1** |
| Effects of movements in foreign exchange rates | **983** | **110** | **67** | **1160** |
| **Total changes in income and OCI** | **545** | **22** | **64** | **631** |
| Total cash flows | **3161** | **-** | **-** | **3161** |
| Change in PAA balance | **(4)** | **-** | **-** | **(4)** |
| **Net closing balance** | **51553** | **6285** | **3558** | **61396** |
| Closing reinsurance contract held assets | **55665** | **5844** | **3034** | **64543** |
| Closing reinsurance contract held liabilities | **(4336)** | **427** | **524** | **(3385)** |
| Closing PAA reinsurance contract net assets | **224** | **14** | **-** | **238** |
| **Net closing balance, March 31, 2026** | **$51553** | **$6285** | **$3558** | **$61396** |

---

Manulife Financial Corporation – First Quarter 2026 77

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | 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 | $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 | (497) | (515) | (424) | (1436) |
| Changes that relate to future services | (1167) | 799 | 554 | 186 |
| Changes that relate to past services | 31 | - | - | 31 |
| **Insurance service result** | (1633) | 284 | 130 | (1219) |
| Insurance finance (income) expenses from reinsurance contracts | 2176 | 447 | 128 | 2751 |
| Effects of changes in non-performance risk of reinsurers | 11 | - | - | 11 |
| Effects of movements in foreign exchange rates | (2630) | (257) | (105) | (2992) |
| **Total changes in income and OCI** | (2076) | 474 | 153 | (1449) |
| Total cash flows | 2732 | - | - | 2732 |
| Change in PAA balance | (21) | - | - | (21) |
| **Net closing balance** | 47851 | 6263 | 3494 | 57608 |
| Closing reinsurance contract held assets | 51618 | 5902 | 3086 | 60606 |
| Closing reinsurance contract held liabilities | (3995) | 347 | 408 | (3240) |
| Closing PAA reinsurance contract net assets | 228 | 14 | - | 242 |
| **Net closing balance, December 31, 2025** | $47851 | $6263 | $3494 | $57608 |

---

**(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 three months ended**<br>**March 31, 2026** | **For the three months ended**<br>**March 31, 2026** | For the year ended <br>December 31, 2025 | For the year ended <br>December 31, 2025 |
|  | Non-onerous | Onerous | Non-onerous | Onerous |
| **New business insurance contracts** |  |  |  |  |
| Estimates of present value of cash outflows | **$11630** | **$626** | $44670 | $1209 |
| *Insurance acquisition cash flows* | ***1946*** | ***125*** | *8049* | *258* |
| *Claims and other insurance service expenses payable* | ***9684*** | ***501*** | *36621* | *951* |
| Estimates of present value of cash inflows | **(13077)** | **(631)** | (50005) | (1196) |
| Risk adjustment for non-financial risk | **258** | **18** | 1034 | 68 |
| Contractual service margin | **1189** | **-** | 4301 | - |
| **Amount included in insurance contract liabilities for the period** | **$-** | **$13** | $- | $81 |

---

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

---

| | | |
|:---|:---|:---|
|  | **For the three** <br>**months** <br>**ended March** <br>**31, 2026**<br>| For the year <br>ended <br>December 31, <br>2025<br>|
| **New business reinsurance contracts** |  |  |
| Estimates of present value of cash outflows | **$(4937)** | $(9402) |
| Estimates of present value of cash inflows | **4864** | 8322 |
| Risk adjustment for non-financial risk | **70** | 825 |
| Contractual service margin | **8** | 303 |
| **Amount included in reinsurance assets for the period** | **$5** | $48 |

---

**(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.

---

| | | |
|:---|:---|:---|
| **For the three months ended March 31,** | **2026** | 2025 |
| Expected incurred claims and other insurance service result | **$3928** | $3780 |
| Change in risk adjustment for non-financial risk expired | **355** | 362 |
| CSM recognized for services provided | **842** | 734 |
| Recovery of insurance acquisition cash flows | **558** | 423 |
| Contracts under PAA | **1708** | 1763 |
| **Total insurance revenue** | **$7391** | $7062 |

---

Manulife Financial Corporation – First Quarter 2026 78

**(d)Significant Judgements and Estimates**

**Discount rates**

The following tables present the spot rates used for discounting liability cash flows.

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** |
|  | Currency | Liquidity category | Observable years | Ultimate year | 1 year | 5 years | 10 years | 20 years | 30 years | Ultimate |
| Canada | CAD | Illiquid | 30 | 70 | **3.19%** | **4.03%** | **5.04%** | **5.48%** | **6.16%** | **4.40%** |
|  |  | Somewhat liquid<sup>(1)</sup> | 30 | 70 | **3.17%** | **3.99%** | **4.96%** | **5.50%** | **6.04%** | **4.40%** |
| U.S. | USD | Illiquid | 30 | 70 | **4.01%** | **4.68%** | **5.87%** | **6.66%** | **6.48%** | **5.15%** |
|  |  | Somewhat liquid<sup>(1)</sup> | 30 | 70 | **4.09%** | **4.70%** | **5.76%** | **6.64%** | **6.46%** | **5.03%** |
| Japan | JPY | Somewhat liquid<sup>(1)</sup> | 30 | 70 | **1.42%** | **2.26%** | **2.99%** | **4.02%** | **4.76%** | **1.60%** |
| Hong Kong | HKD | Illiquid | 15 | 55 | **2.29%** | **3.22%** | **4.45%** | **4.27%** | **3.97%** | **3.70%** |

---

---

| | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 | December 31, 2025 |
|  | Currency | Liquidity category | Observable years | Ultimate year | 1 year | 5 years | 10 years | 20 years | 30 years | Ultimate |
| Canada | CAD | Illiquid | 30 | 70 | 2.89% | 3.85% | 4.94% | 5.36% | 6.10% | 4.40% |
|  |  | Somewhat liquid<sup>(1)</sup> | 30 | 70 | 2.87% | 3.82% | 4.85% | 5.39% | 6.05% | 4.40% |
| U.S. | USD | Illiquid | 30 | 70 | 3.74% | 4.37% | 5.65% | 6.47% | 6.41% | 5.15% |
|  |  | Somewhat liquid<sup>(1)</sup> | 30 | 70 | 3.85% | 4.42% | 5.55% | 6.47% | 6.40% | 5.03% |
| Japan | JPY | Somewhat liquid<sup>(1)</sup> | 30 | 70 | 1.18% | 1.93% | 2.60% | 3.59% | 4.38% | 1.60% |
| Hong Kong | HKD | Illiquid | 15 | 55 | 2.39% | 3.48% | 4.57% | 4.38% | 4.02% | 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.

Manulife Financial Corporation – First Quarter 2026 79

**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** | **March 31, 2026** | **March 31, 2026** | **March 31, 2026** | December 31, 2025 | December 31, 2025 | December 31, 2025 |
| **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 | **$893** | **$611** | **$282** | $908 | $620 | $288 |
| **Investment contract liabilities, measured at amortized cost** |  |  |  |  |  |  |
| Carrying value | **13425** | **928** | **12497** | 13229 | 934 | 12295 |
| Fair value | **13648** | **870** | **12778** | 13551 | 889 | 12662 |

---

**(b)Fair Value Measurement**

The fair value of investment contract assets and liabilities was determined using Level 2 valuation techniques (December 31,

2025 – 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 2025 Annual Consolidated Financial Statements.

**(a)Risk Disclosures Included in the First Quarter 2026 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 First Quarter 2026 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 – First Quarter 2026 80

**(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 March 31, 2026** | Stage 1 | Stage 2 | Stage 3 | Total |
| **Debt securities, measured at FVOCI** |  |  |  |  |
| Investment grade | **$203645** | **$1053** | **$-** | **$204698** |
| Non-investment grade | **4258** | **445** | **-** | **4703** |
| Total carrying value | **207903** | **1498** | **-** | **209401** |
| Allowance for credit losses  | **225** | **43** | **-** | **268** |
| **Debt securities, measured at amortized cost** |  |  |  |  |
| Investment grade | **1530** | **-** | **-** | **1530** |
| Non-investment grade | **-** | **-** | **-** | **-** |
| Total | **1530** | **-** | **-** | **1530** |
| Allowance for credit losses  | **1** | **-** | **-** | **1** |
| Total carrying value, net of allowance | **1529** | **-** | **-** | **1529** |
| **Private placements, measured at FVOCI** |  |  |  |  |
| Investment grade | **43839** | **592** | **-** | **44431** |
| Non-investment grade | **5824** | **1019** | **226** | **7069** |
| Total carrying value | **49663** | **1611** | **226** | **51500** |
| Allowance for credit losses  | **116** | **89** | **176** | **381** |
| **Commercial mortgages, measured at FVOCI** |  |  |  |  |
| AAA | **236** | **-** | **-** | **236** |
| AA | **7812** | **-** | **-** | **7812** |
| A | **13961** | **-** | **-** | **13961** |
| BBB | **5208** | **626** | **-** | **5834** |
| BB | **193** | **721** | **-** | **914** |
| B and lower | **-** | **20** | **100** | **120** |
| Total carrying value | **27410** | **1367** | **100** | **28877** |
| Allowance for credit losses  | **42** | **37** | **34** | **113** |
| **Commercial mortgages, measured at amortized cost** |  |  |  |  |
| AAA | **-** | **-** | **-** | **-** |
| AA | **-** | **-** | **-** | **-** |
| A | **203** | **-** | **-** | **203** |
| BBB | **-** | **-** | **-** | **-** |
| BB | **-** | **-** | **-** | **-** |
| B and lower | **158** | **8** | **2** | **168** |
| Total | **361** | **8** | **2** | **371** |
| Allowance for credit losses | **1** | **-** | **1** | **2** |
| Total carrying value, net of allowance | **360** | **8** | **1** | **369** |
| **Residential mortgages, measured at amortized cost** |  |  |  |  |
| Performing | **25373** | **1826** | **-** | **27199** |
| Non-performing | **-** | **-** | **49** | **49** |
| Total | **25373** | **1826** | **49** | **27248** |
| Allowance for credit losses | **4** | **3** | **1** | **8** |
| Total carrying value, net of allowance | **25369** | **1823** | **48** | **27240** |
| **Loans to Bank clients, measured at amortized cost** |  |  |  |  |
| Performing | **2767** | **98** | **-** | **2865** |
| Non-performing | **-** | **-** | **3** | **3** |
| Total | **2767** | **98** | **3** | **2868** |
| Allowance for credit losses | **1** | **-** | **1** | **2** |
| Total carrying value, net of allowance | **2766** | **98** | **2** | **2866** |
| **Other invested assets, measured at FVOCI** |  |  |  |  |
| Investment grade | **-** | **-** | **-** | **-** |
| Non-investment grade | **366** | **-** | **-** | **366** |
| Total carrying value | **366** | **-** | **-** | **366** |
| Allowance for credit losses  | **22** | **-** | **-** | **22** |
| **Other invested assets, measured at amortized cost** |  |  |  |  |
| Investment grade | **4389** | **-** | **-** | **4389** |
| Non-investment grade | **-** | **-** | **-** | **-** |
| Total | **4389** | **-** | **-** | **4389** |
| Allowance for credit losses | **1** | **-** | **-** | **1** |
| Total carrying value, net of allowance | **4388** | **-** | **-** | **4388** |
| **Loan commitments** |  |  |  |  |
| Allowance for credit losses  | **9** | **1** | **1** | **11** |
| **Total carrying value, net of allowance** | **$319754** | **$6405** | **$377** | **$326536** |

---

Manulife Financial Corporation – First Quarter 2026 81

---

| | | | | |
|:---|:---|:---|:---|:---|
| As at December 31, 2025 | Stage 1 | Stage 2 | Stage 3 | Total |
| **Debt securities, measured at FVOCI** |  |  |  |  |
| Investment grade | $203241 | $1187 | $- | $204428 |
| Non-investment grade | 3993 | 477 | - | 4470 |
| Total carrying value | 207234 | 1664 | - | 208898 |
| Allowance for credit losses  | 221 | 43 | - | 264 |
| **Debt securities, measured at amortized cost** |  |  |  |  |
| Investment grade | 1137 | - | - | 1137 |
| Non-investment grade | - | - | - | - |
| Total | 1137 | - | - | 1137 |
| Allowance for credit losses  | 1 | - | - | 1 |
| Total carrying value, net of allowance | 1136 | - | - | 1136 |
| **Private placements, measured at FVOCI** |  |  |  |  |
| Investment grade | 43803 | 309 | - | 44112 |
| Non-investment grade | 5527 | 979 | 211 | 6717 |
| Total carrying value | 49330 | 1288 | 211 | 50829 |
| Allowance for credit losses  | 108 | 82 | 194 | 384 |
| **Commercial mortgages, measured at FVOCI** |  |  |  |  |
| AAA | 244 | - | - | 244 |
| AA | 7961 | - | - | 7961 |
| A | 13720 | - | - | 13720 |
| BBB | 5106 | 645 | - | 5751 |
| BB | 63 | 730 | - | 793 |
| B and lower | - | 20 | 100 | 120 |
| Total carrying value | 27094 | 1395 | 100 | 28589 |
| Allowance for credit losses  | 42 | 38 | 34 | 114 |
| **Commercial mortgages, measured at amortized cost** |  |  |  |  |
| AAA | - | - | - | - |
| AA | - | - | - | - |
| A | 223 | - | - | 223 |
| BBB | - | - | - | - |
| BB | - | - | - | - |
| B and lower | 166 | 8 | 1 | 175 |
| Total | 389 | 8 | 1 | 398 |
| Allowance for credit losses | 1 | - | 1 | 2 |
| Total carrying value, net of allowance | 388 | 8 | - | 396 |
| **Residential mortgages, measured at amortized cost** |  |  |  |  |
| Performing | 25361 | 1379 | - | 26740 |
| Non-performing | - | - | 50 | 50 |
| Total | 25361 | 1379 | 50 | 26790 |
| Allowance for credit losses | 4 | 2 | 1 | 7 |
| Total carrying value, net of allowance | 25357 | 1377 | 49 | 26783 |
| **Loans to Bank clients, measured at amortized cost** |  |  |  |  |
| Performing | 2629 | 105 | - | 2734 |
| Non-performing | - | - | 4 | 4 |
| Total | 2629 | 105 | 4 | 2738 |
| Allowance for credit losses | 1 | 1 | 1 | 3 |
| Total carrying value, net of allowance | 2628 | 104 | 3 | 2735 |
| **Other invested assets, measured at FVOCI** |  |  |  |  |
| Investment grade | - | - | - | - |
| Non-investment grade | 383 | - | - | 383 |
| Total carrying value | 383 | - | - | 383 |
| Allowance for credit losses  | 21 | - | - | 21 |
| **Other invested assets, measured at amortized cost** |  |  |  |  |
| Investment grade | 4266 | - | - | 4266 |
| Non-investment grade | - | - | - | - |
| Total | 4266 | - | - | 4266 |
| Allowance for credit losses | 1 | - | - | 1 |
| Total carrying value, net of allowance | 4265 | - | - | 4265 |
| **Loan commitments** |  |  |  |  |
| Allowance for credit losses  | 10 | 1 | 1 | 12 |
| **Total carrying value, net of allowance** | $317815 | $5836 | $363 | $324014 |

---

Manulife Financial Corporation – First Quarter 2026 82

**(II)Allowance for ECL**

The following tables provide the movement in the allowance for ECL by stage for the three months ended March 31, 2026 and

for the year ended December 31, 2025.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **As at March 31, 2026** | Stage 1 | Stage 2 | Stage 3 | Total |
| Balance, January 1, 2025 | **$410** | **$167** | **$232** | **$809** |
| Net re-measurement due to transfers | **-** | **-** | **-** | **-** |
| *Transfers to stage 1* | ***1*** | ***(1)*** | ***-*** | ***-*** |
| *Transfers to stage 2* | ***(1)*** | ***1*** | ***-*** | ***-*** |
| *Transfers to stage 3* | ***-*** | ***-*** | ***-*** | ***-*** |
| Net originations, purchases, disposals and repayments | **9** | **(2)** | **(44)** | **(37)** |
| Changes to risk, parameters, and models | **(2)** | **6** | **21** | **25** |
| Foreign exchange and other adjustments | **5** | **2** | **5** | **12** |
| **Balance, end of the period** | **$422** | **$173** | **$214** | **$809** |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| As at December 31, 2025 | Stage 1 | Stage 2 | Stage 3 | Total |
| Balance, beginning of the year | $434 | $213 | $181 | $828 |
| Net re-measurement due to transfers | 4 | (31) | 27 | - |
| *Transfers to stage 1* | *11* | *(11)* | *-* | *-* |
| *Transfers to stage 2* | *(7)* | *7* | *-* | *-* |
| *Transfers to stage 3* | *-* | *(27)* | *27* | *-* |
| Net originations, purchases, disposals and repayments | 59 | (11) | (97) | (49) |
| Changes to risk, parameters, and models | (72) | (1) | 117 | 44 |
| Foreign exchange and other adjustments | (15) | (3) | 4 | (14) |
| **Balance, end of the year** | $410 | $167 | $232 | $809 |

---

**(III)Significant Judgements and Estimates**

The following tables show 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 March 31, 2026** | Current <br>quarter | Next 12 <br>months<br>| Ensuing 4 <br>years<br>| Next 12 <br>months<br>| Ensuing 4 <br>years<br>| Next 12 <br>months<br>| Ensuing 4 <br>years<br>| Next 12 <br>months<br>| Ensuing 4 <br>years<br>|
| Canada |  |  |  |  |  |  |  |  |  |
| Gross Domestic Product (GDP), in <br>U.S. $ billions<br>| **$2070** | **1.3%** | **2.0%** | **3.3%** | **1.9%** | **(3.5)%** | **2.3%** | **(6.2)%** | **2.2%** |
| Unemployment rate | **6.7%** | **6.7%** | **6.2%** | **6.3%** | **5.6%** | **8.3%** | **8.1%** | **9.0%** | **9.6%** |
| NYMEX Light Sweet Crude Oil, in <br>U.S. dollars, per barrel<br>| **$61** | **$60** | **$66** | **$65** | **$68** | **$46** | **$60** | **$38** | **$54** |
| U.S. |  |  |  |  |  |  |  |  |  |
| Gross Domestic Product (GDP), in <br>U.S. $ billions<br>| **$24441** | **1.9%** | **2.3%** | **3.5%** | **2.4%** | **(2.3)%** | **2.7%** | **(4.3)%** | **2.6%** |
| Unemployment rate | **4.5%** | **4.5%** | **4.4%** | **3.7%** | **3.8%** | **7.2%** | **6.3%** | **7.8%** | **8.4%** |
| 7-10 Year BBB U.S. Corporate Index | **5.3%** | **5.9%** | **6.1%** | **5.7%** | **6.0%** | **6.4%** | **5.8%** | **7.0%** | **5.7%** |
| Japan |  |  |  |  |  |  |  |  |  |
| Gross Domestic Product (GDP), in <br>JPY billions<br>| **¥592,575** | **0.6%** | **0.8%** | **2.5%** | **0.9%** | **(3.8)%** | **1.1%** | **(7.2)%** | **1.7%** |
| Unemployment rate | **2.6%** | **2.6%** | **2.2%** | **2.5%** | **2.1%** | **3.1%** | **2.9%** | **3.2%** | **3.5%** |
| Hong Kong |  |  |  |  |  |  |  |  |  |
| Unemployment rate | **3.8%** | **3.6%** | **3.0%** | **3.2%** | **2.8%** | **4.7%** | **3.8%** | **5.1%** | **4.6%** |
| Hang Seng Index | **26656** | **(0.4)%** | **0.8%** | **10.0%** | **0.4%** | **(25.4)%** | **6.5%** | **(41.5)%** | **9.9%** |
| China |  |  |  |  |  |  |  |  |  |
| Gross Domestic Product (GDP), in <br>CNY billions<br>| **¥121,514** | **4.3%** | **4.2%** | **6.8%** | **4.4%** | **(2.7)%** | **4.7%** | **(5.5)%** | **4.0%** |
| FTSE Xinhua A200 Index | **12294** | **3.1%** | **2.9%** | **18.0%** | **0.9%** | **(28.6)%** | **9.6%** | **(38.4)%** | **11.4%** |

---

Manulife Financial Corporation – First Quarter 2026 83

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | 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 December 31, 2025 | Current <br>quarter | Next 12 <br>months<br>| Ensuing 4 <br>years<br>| Next 12 <br>months<br>| Ensuing 4 <br>years<br>| Next 12 <br>months<br>| Ensuing 4 <br>years<br>| Next 12 <br>months<br>| Ensuing 4 <br>years<br>|
| Canada |  |  |  |  |  |  |  |  |  |
| Gross Domestic Product (GDP), in <br>U.S. $ billions<br>| $2020 | 0.6% | 1.9% | 2.6% | 1.9% | (4.1)% | 2.2% | (7.2)% | 2.2% |
| Unemployment rate | 7.2% | 7.1% | 6.3% | 6.5% | 5.6% | 8.5% | 8.0% | 9.5% | 9.7% |
| NYMEX Light Sweet Crude Oil, in <br>U.S. dollars, per barrel<br>| $61 | $62 | $66 | $67 | $67 | $47 | $60 | $39 | $54 |
| U.S. |  |  |  |  |  |  |  |  |  |
| Gross Domestic Product (GDP), in <br>U.S. $ billions<br>| $23998 | 2.1% | 2.4% | 3.8% | 2.4% | (2.2)% | 2.7% | (4.1)% | 2.6% |
| Unemployment rate | 4.4% | 4.6% | 4.3% | 3.9% | 3.6% | 7.2% | 6.1% | 7.7% | 8.2% |
| 7-10 Year BBB U.S. Corporate Index | 5.3% | 5.9% | 6.1% | 5.7% | 6.0% | 6.4% | 5.8% | 7.0% | 5.7% |
| Japan |  |  |  |  |  |  |  |  |  |
| Gross Domestic Product (GDP), in <br>JPY billions<br>| ¥564,072 | 0.2% | 0.8% | 2.2% | 1.0% | (4.1)% | 1.1% | (7.4)% | 1.7% |
| Unemployment rate | 2.5% | 2.5% | 2.2% | 2.4% | 2.1% | 3.0% | 2.9% | 3.2% | 3.5% |
| Hong Kong |  |  |  |  |  |  |  |  |  |
| Unemployment rate | 4.1% | 4.0% | 3.2% | 3.6% | 2.9% | 5.1% | 4.1% | 5.5% | 4.8% |
| Hang Seng Index | 26454 | (1.3)% | 1.0% | 8.9% | 0.7% | (26.0)% | 6.7% | (41.9)% | 10.2% |
| China |  |  |  |  |  |  |  |  |  |
| Gross Domestic Product (GDP), in <br>CNY billions<br>| ¥119,732 | 4.7% | 4.1% | 7.2% | 4.3% | (2.3)% | 4.6% | (5.1)% | 3.9% |
| FTSE Xinhua A200 Index | 11186 | 3.7% | 3.6% | 18.6% | 1.6% | (28.0)% | 10.3% | (37.8)% | 12.1% |

---

**(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 base case scenario, one upside and two

downside scenarios) weighted by probability of occurrence and shows the ECL allowance which would result from using only

the base case scenario.

---

| | | |
|:---|:---|:---|
| **As at** | **March 31,** <br>**2026**<br>| December 31, <br>2025<br>|
| Probability-weighted ECL allowance | **$809** | $809 |
| Base case ECL allowance | **$601** | $611 |
| Difference – in amount | **$208** | $198 |
| Difference – as a percentage of probability-weighted ECL allowance | **25.71%** | 24.47% |

---

The Company's probability-weighted ECL allowance balance which resulted from all four macroeconomic scenarios as at

March 31, 2026 was $809 (December 31, 2025 – $809). ECL allowance balances indicated by the base case scenario, the

upside scenario, the downside scenario 1 and the downside scenario 2, as at March 31, 2026 were $601, $516, $1,464 and

$1,822 respectively (December 31, 2025 – $611, $522, $1,434 and $1,798, respectively).

**(c)Securities Lending, Repurchase and Reverse Repurchase Transactions**

As at March 31, 2026, the Company had loaned securities (which are included in invested assets) with a market value of

$2,325 (December 31, 2025 – $1,800). The Company holds collateral with a current market value that exceeds the value of

securities lent in all cases.

As at March 31, 2026, the Company had outstanding reverse repurchase transactions of $410 (December 31, 2025 – $957)

which are recorded as receivables in miscellaneous assets. In addition, the Company had outstanding repurchase transactions

of $308 as at March 31, 2026 (December 31, 2025 – $193) which are recorded as payables in other liabilities.

**(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.

Manulife Financial Corporation – First Quarter 2026 84

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 March 31, 2026** | 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 | **$22** | **$-** | **1** |
| A | **22** | **-** | **1** |
| BBB | **66** | **1** | **1** |
| **Total single name CDS** | **$110** | **$1** | **1** |
| **Total CDS protection sold** | **$110** | **$1** | **1** |
| As at December 31, 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 | $22 | $- | 2 |
| A | 65 | 1 | 2 |
| BBB | 22 | - | 1 |
| **Total single name CDS** | $109 | $1 | 2 |
| **Total CDS protection sold** | $109 | $1 | 2 |

---

<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 March 31, 2026 (December 31, 2025 – $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.

All contracts are held with or guaranteed by investment grade counterparties, the majority of whom are rated A- or higher. As at

March 31, 2026, the percentage of the Company's derivative exposure with counterparties rated AA- or higher was 31 per cent

(December 31, 2025 – 29 per cent). As at March 31, 2026, the largest single counterparty exposure, without taking into

consideration the impact of master netting agreements or the benefit of collateral held, was $1,392 (December 31, 2025 –

$1,386). The net exposure to this counterparty, after taking into consideration master netting agreements and the fair value of

collateral held, was $nil (December 31, 2025 – $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.

Manulife Financial Corporation – First Quarter 2026 85

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 March 31, 2026** | 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 March 31, 2026** | 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 | **$9979** | **$(6556)** | **$(2780)** | **$643** | **$643** |
| Securities lending | **2325** | **-** | **(2325)** | **-** | **-** |
| Reverse repurchase agreements | **410** | **(52)** | **(358)** | **-** | **-** |
| **Total financial assets** | **$12714** | **$(6608)** | **$(5463)** | **$643** | **$643** |
| **Financial liabilities** |  |  |  |  |  |
| Derivative liabilities | **$(14588)** | **$6556** | **$7969** | **$(63)** | **$(7)** |
| Repurchase agreements | **(308)** | **52** | **256** | **-** | **-** |
| **Total financial liabilities** | **$(14896)** | **$6608** | **$8225** | **$(63)** | **$(7)** |
| As at December 31, 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 December 31, 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 | $9955 | $(6700) | $(2694) | $561 | $561 |
| Securities lending | 1800 | - | (1800) | - | - |
| Reverse repurchase agreements | 957 | - | (957) | - | - |
| **Total financial assets** | $12712 | $(6700) | $(5451) | $561 | $561 |
| **Financial liabilities** |  |  |  |  |  |
| Derivative liabilities | $(15024) | $6700 | $8228 | $(96) | $(39) |
| Repurchase agreements | (193) | - | 193 | - | - |
| **Total financial liabilities** | $(15217) | $6700 | $8421 | $(96) | $(39) |

---

<sup>(1)</sup> Financial assets and liabilities include accrued interest of $332 and $634, respectively (December 31, 2025 – $334 and $677, respectively).

<sup>(2)</sup> Financial and cash collateral exclude over-collateralization. As at March 31, 2026, 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 $357, $2,031, $72 and $nil,

respectively (December 31, 2025 – $403, $1,699, $154 and $nil, respectively). As at March 31, 2026, 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 – First Quarter 2026 86

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 March 31, 2026** | 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 | **$1393** | **$(1393)** | **$-** |
| Variable surplus note | **(1393)** | **1393** | **-** |
| As at December 31, 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 | $1349 | $(1349) | $- |
| Variable surplus note | (1349) | 1349 | - |

---

**Note 8 Long-Term Debt**

**(a)Carrying Value of Long-term Debt Instruments**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  |  |  | **As at** | **As at** |
|  | Issue date | Maturity date | Par value  | **March 31,** <br>**2026**<br>| December 31, <br>2025<br>|
| 3.050% Senior notes<sup>(1)</sup> | August 27, 2020 | August 27, 2060 | US$1,155 | **$1611** | $1583 |
| 5.375% Senior notes<sup>(1)</sup> | March 4, 2016 | March 4, 2046 | US$750 | **1035** | 1017 |
| 4.986% Senior notes<sup>(1)</sup> | December 11, 2025 | December 11, 2035 | US$1,000 | **1387** | 1362 |
| 3.703% Senior notes<sup>(1)</sup> | March 16, 2022 | March 16, 2032 | US$750 | **1043** | 1024 |
| 2.396% Senior notes<sup>(1)</sup> | June 1, 2020 | June 1, 2027 | US$200 | **279** | 274 |
| 2.484% Senior notes<sup>(1)</sup> | May 19, 2020 | May 19, 2027 | US$500 | **697** | 684 |
| 3.527% Senior notes<sup>(1)</sup> | December 2, 2016 | December 2, 2026 | US$270 | **377** | 370 |
| 4.150% Senior notes<sup>(2)</sup> | March 4, 2016 | March 4, 2026 | US$1,000 | **-** | 1371 |
| **Total**  |  |  |  | **$6429** | $7685 |

---

<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.

<sup>(2)</sup> The 4.150% senior notes matured and were redeemed at par on March 4, 2026.

**(b)Fair Value Measurement**

The Company measures its long-term debt at amortized cost in the Consolidated Statements of Financial Position. As at

March 31, 2026, the fair value of long-term debt was $5,561 (December 31, 2025 – $6,962) which was determined using Level

2 valuation techniques (December 31, 2025 – Level 2).

Manulife Financial Corporation – First Quarter 2026 87

**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  | **March 31,** <br>**2026**<br>| December 31, <br>2025<br>|
| JHFC Subordinated notes | December 14, 2006 | December 15, 2036 | December 15, 2036 | $650 | **$648** | $648 |
| 3.983% MFC Subordinated debentures | May 23, 2025 | May 23, 2030 | May 23, 2035 | $500 | **498** | 497 |
| 2.818% MFC Subordinated debentures<sup>(1)</sup> | May 12, 2020 | May 13, 2030 | May 13, 2035 | $1000 | **998** | 997 |
| 4.064% MFC Subordinated debentures | December 6, 2024 | December 6, 2029 | December 6, 2034 | $1000 | **996** | 996 |
| 4.275% MFC Subordinated notes<sup>(2)</sup> | June 19, 2024 | June 19, 2029 | June 19, 2034 | S$500 | **539** | 531 |
| 5.054% MFC Subordinated debentures | February 23, 2024 | February 23, 2029 | February 23, 2034 | $1100 | **1096** | 1096 |
| 5.409% MFC Subordinated debentures | March 10, 2023 | March 10, 2028 | March 10, 2033 | $1200 | **1197** | 1197 |
| 4.061% MFC Subordinated notes<sup>(1),(3)</sup> | February 24, 2017 | February 24, 2027 | February 24, 2032 | US$750 | **1046** | 1028 |
| **Total** |  |  |  |  | **$7018** | $6990 |

---

<sup>(1)</sup> Capital instruments with interest rates resetting in the future that reference Canadian Dollar Offered Rate ("CDOR") and the U.S. Dollar Mid-Swap rate (based

on London Interbank Offered Rate (LIBOR)) include the 2.818% subordinated debentures and 4.061% subordinated debentures, respectively. Future rate

resets for these capital instruments may rely on alternative reference rates such as Canadian Overnight Repo Rate Average ("CORRA"), the alternative rate for

CDOR, and the Secured Overnight Financing Rate (SOFR) and the alternative rate for USD LIBOR. As at March 31, 2026, 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.

**(b)Fair Value Measurement**

The Company measures capital instruments at amortized cost in the Consolidated Statements of Financial Position. As at

March 31, 2026, the fair value of capital instruments was $7,078 (December 31, 2025 – $7,121) which was determined using

Level 2 valuation techniques (December 31, 2025 – Level 2).

Manulife Financial Corporation – First Quarter 2026 88

**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 March 31,

2026 and December 31, 2025.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | 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 | **March 31,** <br>**2026**<br>| December 31, <br>2025<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** |  |  |  |  |  | **$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 March 31, 2026, there were 6 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, 2025 – 9 million).

Manulife Financial Corporation – First Quarter 2026 89

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

---

| | | |
|:---|:---|:---|
| Number of common shares (in millions) | **For the three** <br>**months** <br>**ended March** <br>**31, 2026**<br>| For the year <br>ended <br>December 31, <br>2025<br>|
| Balance, beginning of period | **1677** | 1729 |
| Repurchased for cancellation | **(8)** | (54) |
| Issued on exercise of stock options and deferred share units | **3** | 2 |
| **Balance, end of period** | **1672** | 1677 |

---

**Normal course issuer bid**

On February 19, 2026, the Company received approval from the Toronto Stock Exchange ("TSX") to launch a normal course

issuer bid (the "2026 NCIB"), permitting the purchase for cancellation of up to 42 million of its common shares, representing

approximately 2.5% of its common shares outstanding as at January 31, 2026. Purchases under the 2026 NCIB commenced

on February 24, 2026, and may continue until February 23, 2027, when the 2026 NCIB expires, or such earlier date as the

Company completes its purchases.

The Company's 2025 NCIB was approved by the TSX on February 19, 2025, permitting the purchase for cancellation of up to

51.5 million common shares, representing approximately 3.0% of common shares outstanding as at February 12, 2025. The

2025 NCIB expired on February 23, 2026.

During the three months ended March 31, 2026, the Company purchased for cancellation 7.5 million shares (2025 – 11.4

million shares) for $366 (pre-tax), including 4.7 million shares for $223 under the 2026 NCIB, and 2.8 million shares for $143

under the previous NCIB, and incurred $5 tax on net repurchases of equity (2025 – $498 under NCIB and $9 tax). Of this, $90

was recorded in Common shares and $281 was recorded in Shareholders and other equity holders' retained earnings in the

Consolidated Statements of Changes in Equity (2025 – $137 and $370, 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 March 31, | **2026** | 2025 |
| Weighted average number of common shares (in millions) | **1676** | 1723 |
| Dilutive stock-based awards<sup>(1)</sup> (in millions) | **4** | 6 |
| **Weighted average number of diluted common shares (in millions)** | **1680** | 1729 |

---

<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 – First Quarter 2026 90

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

---

| | | | |
|:---|:---|:---|:---|
| **For the three months ended March 31, 2026** | Global WAM | Asia, Canada, <br>U.S., and <br>Corporate and <br>Other<br>| Total |
| Investment management and other related fees | **$1006** | **$(112)** | **$894** |
| Transaction processing, administration, and service fees | **748** | **83** | **831** |
| Distribution fees and other | **234** | **13** | **247** |
| **Total included in other revenue** | **1988** | **(16)** | **1972** |
| **Revenue from non-service lines** | **(2)** | **(40)** | **(42)** |
| **Total other revenue** | **$1986** | **$(56)** | **$1930** |
| **Real estate management services included in net investment income** | **$-** | **$68** | **$68** |

---

---

| | | | |
|:---|:---|:---|:---|
| For the three months ended March 31, 2025 | Global WAM | Asia, Canada, <br>U.S., and <br>Corporate and <br>Other<br>| Total |
| Investment management and other related fees | $972 | $(124) | $848 |
| Transaction processing, administration, and service fees | 779 | 73 | 852 |
| Distribution fees and other | 220 | 14 | 234 |
| **Total included in other revenue** | 1971 | (37) | 1934 |
| **Revenue from non-service lines** | 4 | 48 | 52 |
| **Total other revenue** | $1975 | $11 | $1986 |
| **Real estate management services included in net investment income** | $- | $73 | $73 |

---

**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 tables present 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 March 31,** | Pension plans | Pension plans | Retiree welfare plans | Retiree welfare plans |
| **For the three months ended March 31,** | **2026** | 2025 | **2026** | 2025 |
| Defined benefit current service cost<sup>(1)</sup> | **$11** | $12 | **$-** | $- |
| Defined benefit administrative expenses | **2** | 3 | **-** | - |
| Service cost | **13** | 15 | **-** | - |
| Interest on net defined benefit (asset) liability | **(1)** | - | **(2)** | (2) |
| Defined benefit cost | **12** | 15 | **(2)** | (2) |
| Defined contribution cost | **34** | 29 | **-** | - |
| **Net benefit cost reported in income** | **$46** | $44 | **$(2)** | $(2) |
| Actuarial (gain) loss on economic assumption changes | **$(39)** | $24 | **$(7)** | $4 |
| Investment (gain) loss (excluding interest income) | **44** | 9 | **9** | (6) |
| Change in effect of asset limit | **1** | 1 | **-** | - |
| **Re-measurement (gain) loss recorded in OCI, net of tax** | **$6** | $34 | **$2** | $(2) |

---

<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.

Manulife Financial Corporation – First Quarter 2026 91

**(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.

The following tables present certain condensed consolidated financial information for MFC and MFLP.

**Condensed Consolidated Statements of Income Information**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **For the three months ended March 31, 2026** | 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 | **$-** | **$1164** | **$-** | **$1164** | **$-** |
| Total investment result | **26** | **391** | **-** | **417** | **13** |
| Other revenue | **(19)** | **1949** | **-** | **1930** | **4** |
| Net income (loss) attributed to shareholders and other equity holders | **1147** | **1243** | **(1243)** | **1147** | **6** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| For the three months ended March 31, 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 | $- | $1043 | $- | $1043 | $- |
| Total investment result | 4 | (364) | (4) | (364) | 12 |
| Other revenue | 1 | 1985 | - | 1986 | - |
| Net income (loss) attributed to shareholders and other equity holders | 485 | 582 | (582) | 485 | 2 |

---

**Condensed Consolidated Statements of Financial Position Information**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **As at March 31, 2026** | 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 | **$72** | **$461742** | **$-** | **$461814** | **$23** |
| Insurance contract assets | **-** | **201** | **-** | **201** | **-** |
| Reinsurance contract held assets | **-** | **64819** | **-** | **64819** | **-** |
| Total other assets | **65259** | **49675** | **(70923)** | **44011** | **976** |
| Segregated funds net assets  | **-** | **455668** | **-** | **455668** | **-** |
| Insurance contract liabilities, excluding those for account of <br>segregated fund holders<br>| **-** | **419410** | **-** | **419410** | **-** |
| Reinsurance contract held liabilities | **-** | **3423** | **-** | **3423** | **-** |
| Investment contract liabilities | **-** | **14318** | **-** | **14318** | **-** |
| Total other liabilities | **14699** | **67984** | **(2045)** | **80638** | **709** |
| Insurance contract liabilities for account of segregated fund holders | **-** | **125526** | **-** | **125526** | **-** |
| Investment contract liabilities for account of segregated fund holders | **-** | **330142** | **-** | **330142** | **-** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| As at December 31, 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 | $1399 | $458529 | $- | $459928 | $20 |
| Insurance contract assets | - | 194 | - | 194 | - |
| Reinsurance contract held assets | - | 60881 | - | 60881 | - |
| Total other assets | 63341 | 47566 | (67731) | 43176 | 965 |
| Segregated funds net assets  | - | 461254 | - | 461254 | - |
| Insurance contract liabilities, excluding those for account of <br>segregated fund holders<br>| - | 411532 | - | 411532 | - |
| Reinsurance contract held liabilities | - | 3273 | - | 3273 | - |
| Investment contract liabilities | - | 14137 | - | 14137 | - |
| Total other liabilities | 14618 | 68845 | (714) | 82749 | 701 |
| Insurance contract liabilities for account of segregated fund holders | - | 129006 | - | 129006 | - |
| Investment contract liabilities for account of segregated fund holders | - | 332248 | - | 332248 | - |

---

**(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.

Manulife Financial Corporation – First Quarter 2026 92

**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 – First Quarter 2026 93

The following tables present results by reporting segments and by geographical location.

**(a)By Segment**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **For the three months ended March 31, 2026** | Asia | Canada | U.S. | Global<br>WAM<br>| Corporate<br>and Other<br>| Total |
| **Insurance service result** |  |  |  |  |  |  |
| Life, health and property and casualty insurance | **$802** | **$228** | **$194** | **$-** | **$20** | **$1244** |
| Annuities and pensions | **(153)** | **54** | **19** | **-** | **-** | **(80)** |
| **Total insurance service result** | **649** | **282** | **213** | **-** | **20** | **1164** |
| Net investment income (loss) | **770** | **1317** | **785** | **(166)** | **173** | **2879** |
| **Insurance finance income (expenses)** |  |  |  |  |  |  |
| Life, health and property and casualty insurance | **4** | **(924)** | **(1059)** | **-** | **7** | **(1972)** |
| Annuities and pensions | **(704)** | **(85)** | **(339)** | **-** | **-** | **(1128)** |
| **Total insurance finance income (expenses)** | **(700)** | **(1009)** | **(1398)** | **-** | **7** | **(3100)** |
| **Reinsurance finance income (expenses)** |  |  |  |  |  |  |
| Life, health and property and casualty insurance | **18** | **74** | **315** | **-** | **-** | **407** |
| Annuities and pensions | **108** | **-** | **254** | **-** | **-** | **362** |
| **Total reinsurance finance income (expenses)** | **126** | **74** | **569** | **-** | **-** | **769** |
| Decrease (increase) in investment contract liabilities | **(3)** | **(16)** | **(1)** | **(110)** | **(1)** | **(131)** |
| Net segregated fund investment result | **-** | **-** | **-** | **-** | **-** | **-** |
| **Total investment result** | **193** | **366** | **(45)** | **(276)** | **179** | **417** |
| Other revenue | **34** | **75** | **38** | **1986** | **(203)** | **1930** |
| Other expenses | **(96)** | **(175)** | **(44)** | **(1220)** | **(121)** | **(1656)** |
| Interest expenses | **(4)** | **(223)** | **(3)** | **(1)** | **(158)** | **(389)** |
| **Net income (loss) before income taxes** | **776** | **325** | **159** | **489** | **(283)** | **1466** |
| Income tax (expenses) recoveries | **(127)** | **(62)** | **(21)** | **(76)** | **56** | **(230)** |
| **Net income (loss)** | **649** | **263** | **138** | **413** | **(227)** | **1236** |
| Less net income (loss) attributed to: |  |  |  |  |  |  |
| Non-controlling interests | **33** | **-** | **-** | **10** | **-** | **43** |
| Participating policyholders | **21** | **25** | **-** | **-** | **-** | **46** |
| **Net income (loss) attributed to shareholders and other** <br>**equity holders**<br>| **$595** | **$238** | **$138** | **$403** | **$(227)** | **$1147** |
| **Total assets** | **$239545** | **$164400** | **$250241** | **$328600** | **$43727** | **$1026513** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| For the three months ended March 31, 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 | $658 | $258 | $126 | $- | $(35) | $1007 |
| Annuities and pensions | (44) | 59 | 21 | - | - | 36 |
| **Total insurance service result** | 614 | 317 | 147 | - | (35) | 1043 |
| Net investment income (loss) | 1083 | 1208 | 706 | (156) | 105 | 2946 |
| **Insurance finance income (expenses)** |  |  |  |  |  |  |
| Life, health and property and casualty insurance | (1324) | (819) | (1699) | - | 7 | (3835) |
| Annuities and pensions | 813 | (145) | (572) | - | - | 96 |
| **Total insurance finance income (expenses)** | (511) | (964) | (2271) | - | 7 | (3739) |
| **Reinsurance finance income (expenses)** |  |  |  |  |  |  |
| Life, health and property and casualty insurance | (94) | 72 | 322 | - | - | 300 |
| Annuities and pensions | (135) | - | 355 | - | - | 220 |
| **Total reinsurance finance income (expenses)** | (229) | 72 | 677 | - | - | 520 |
| Decrease (increase) in investment contract liabilities | 1 | (18) | 38 | (116) | 4 | (91) |
| Net segregated fund investment result | - | - | - | - | - | - |
| **Total investment result** | 344 | 298 | (850) | (272) | 116 | (364) |
| Other revenue | 1 | 74 | 25 | 1975 | (89) | 1986 |
| Other expenses | (82) | (170) | (50) | (1174) | (111) | (1587) |
| Interest expenses | (7) | (214) | (3) | (1) | (154) | (379) |
| **Net income (loss) before income taxes** | 870 | 305 | (731) | 528 | (273) | 699 |
| Income tax (expenses) recoveries | (131) | (59) | 162 | (84) | 36 | (76) |
| **Net income (loss)** | 739 | 246 | (569) | 444 | (237) | 623 |
| Less net income (loss) attributed to: |  |  |  |  |  |  |
| Non-controlling interests | 67 | - | - | 1 | (2) | 66 |
| Participating policyholders | 48 | 24 | - | - | - | 72 |
| **Net income (loss) attributed to shareholders and other** <br>**equity holders**<br>| $624 | $222 | $(569) | $443 | $(235) | $485 |
| **Total assets** | $214837 | $162702 | $256270 | $302097 | $45512 | $981418 |

---

Manulife Financial Corporation – First Quarter 2026 94

**(b)By Geographic Location**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **For the three months ended March 31, 2026** | Asia | Canada | U.S. | Other | Total |
| **Insurance service result** |  |  |  |  |  |
| Life, health and property and casualty insurance | **$804** | **$224** | **$188** | **$28** | **$1244** |
| Annuities and pensions | **(153)** | **54** | **19** | **-** | **(80)** |
| **Total insurance service result** | **651** | **278** | **207** | **28** | **1164** |
| Net investment income (loss) | **742** | **1338** | **800** | **(1)** | **2879** |
| **Insurance finance income (expenses)** |  |  |  |  |  |
| Life, health and property and casualty insurance | **3** | **(924)** | **(1051)** | **-** | **(1972)** |
| Annuities and pensions | **(704)** | **(85)** | **(339)** | **-** | **(1128)** |
| **Total insurance finance income (expenses)** | **(701)** | **(1009)** | **(1390)** | **-** | **(3100)** |
| **Reinsurance finance income (expenses)** |  |  |  |  |  |
| Life, health and property and casualty insurance | **18** | **74** | **315** | **-** | **407** |
| Annuities and pensions | **108** | **-** | **254** | **-** | **362** |
| **Total reinsurance finance income (expenses)** | **126** | **74** | **569** | **-** | **769** |
| Decrease (increase) in investment contract liabilities | **(53)** | **(34)** | **(43)** | **(1)** | **(131)** |
| Net segregated fund investment result | **-** | **-** | **-** | **-** | **-** |
| **Total investment result** | **$114** | **$369** | **$(64)** | **$(2)** | **$417** |
| **Other revenue** | **$417** | **$578** | **$954** | **$(19)** | **$1930** |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| For the three months ended March 31, 2025 | Asia | Canada | U.S. | Other | Total |
| **Insurance service result** |  |  |  |  |  |
| Life, health and property and casualty insurance | $658 | $251 | $122 | $(24) | $1007 |
| Annuities and pensions | (44) | 59 | 21 | - | 36 |
| **Total insurance service result** | 614 | 310 | 143 | (24) | 1043 |
| Net investment income (loss) | 1053 | 1276 | 601 | 16 | 2946 |
| **Insurance finance income (expenses)** |  |  |  |  |  |
| Life, health and property and casualty insurance | (1324) | (819) | (1692) | - | (3835) |
| Annuities and pensions | 813 | (145) | (572) | - | 96 |
| **Total insurance finance income (expenses)** | (511) | (964) | (2264) | - | (3739) |
| **Reinsurance finance income (expenses)** |  |  |  |  |  |
| Life, health and property and casualty insurance | (94) | 72 | 322 | - | 300 |
| Annuities and pensions | (135) | - | 355 | - | 220 |
| **Total reinsurance finance income (expenses)** | (229) | 72 | 677 | - | 520 |
| Decrease (increase) in investment contract liabilities | (63) | (38) | 11 | (1) | (91) |
| Net segregated fund investment result | - | - | - | - | - |
| **Total investment result** | $250 | $346 | $(975) | $15 | $(364) |
| **Other revenue** | $317 | $593 | $1003 | $73 | $1986 |

---

**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 March 31, 2026, these guarantees are recorded within the Company's insurance contract liabilities and amount to $1,675

(December 31, 2025 – $1,266), of which $641 are reinsured (December 31, 2025 – $423). 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 First Quarter 2026 MD&A provide information

regarding market risk sensitivities associated with variable annuity and segregated fund guarantees.

Manulife Financial Corporation – First Quarter 2026 95

**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 summarized financial information, presented in accordance with IFRS, and the related disclosure have been

included in these Consolidated Financial Statements with respect to JHUSA pursuant to Rule 13-01 of 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 that are described below and relate

to MFC's guarantee of certain securities issued or 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 of

the Company's 2025 Annual Consolidated Financial Statements.

---

| | | |
|:---|:---|:---|
| As at | **March 31,** <br>**2026**<br>| December 31, <br>2025<br>|
| **Assets** |  |  |
| Total invested assets<sup>(1)</sup> | **$107387** | $107703 |
| Reinsurance contract held assets<sup>(2)</sup> | **49721** | 49463 |
| Other assets<sup>(3)</sup> | **12219** | 11995 |
| Segregated funds net assets | **219762** | 224457 |
| **Liabilities** |  |  |
| Insurance contract liabilities, excluding those for account of segregated fund holders<sup>(4)</sup> | **$147040** | $146300 |
| Investment contract liabilities<sup>(5)</sup> | **6395** | 6131 |
| Other liabilities<sup>(6)</sup> | **8781** | 7471 |
| Long-term debt | **6429** | 7685 |
| Capital instruments | **6370** | 6342 |
| Insurance contract liabilities for account of segregated fund holders | **55293** | 57115 |
| Investment contract liabilities for account of segregated fund holders | **164470** | 167341 |

---

<sup>(1)</sup> Includes $(2,424) (December 31, 2025 – $(908)) cash loaned to (borrowed from) non-guarantor subsidiaries.

<sup>(2)</sup> Includes $9,651 (December 31, 2025 – $9,542) reinsurance contract held assets from intercompany transactions with non-guarantor subsidiaries.

<sup>(3)</sup> Includes $4,088 (December 31, 2025 – $3,866) due from non-guarantor subsidiaries.

<sup>(4)</sup> Includes $(25) (December 31, 2025 – $(22)) insurance contract liabilities (assets) from intercompany transactions with non-guarantor subsidiaries.

<sup>(5)</sup> Includes $560 (December 31, 2025 – $606) investment contract liabilities from intercompany transactions with non-guarantor subsidiaries.

<sup>(6)</sup> Includes $3,066 (December 31, 2025 – $1,737) due to non-guarantor subsidiaries.

---

| | | |
|:---|:---|:---|
|  | **For the three** <br>**months** <br>**ended March** <br>**31, 2026**<br>| For the year <br>ended <br>December 31, <br>2025<br>|
| Total insurance service result<sup>(1)</sup> | **$144** | $433 |
| Total investment result<sup>(2)</sup> | **332** | (555) |
| Other revenue (expenses)<sup>(3)</sup> | **(308)** | (702) |
| Net income (loss) before income taxes | **168** | (824) |
| Income tax (expenses) recoveries | **(5)** | 345 |
| Net income (loss) after income taxes, before equity in net income (loss) of non-guarantor subsidiaries | **163** | (479) |
| Equity in net income (loss) of non-guarantor subsidiaries | **1407** | 6083 |
| **Net income (loss)** | **$1570** | $5604 |

---

<sup>(1)</sup> Includes $(13) intercompany insurance service result from non-guarantor subsidiaries for the three months ended March 31, 2026 (for the year ended

December 31, 2025 – $53).

<sup>(2)</sup> Includes $321 intercompany investment income (loss) to non-guarantor subsidiaries for the three months ended March 31, 2026 (for the year ended December

31, 2025 – $599).

<sup>(3)</sup> Includes $70 other intercompany revenue (expenses) from non-guarantor subsidiaries for the three months ended March 31, 2026 (for the year ended

December 31, 2025 – $441).

Manulife Financial Corporation – First Quarter 2026 96

**Note 17 Acquisition**

**PT Schroder Investment Management Indonesia**

On March 31, 2026, the Company completed the acquisition of PT Schroder Investment Management Indonesia ("Schroders

Indonesia") with $3.5 billion of assets under management as at March 31, 2026. The acquisition strengthens the Company's

position as the largest asset manager in Indonesia and enables the Company to deliver enhanced value to clients and

stakeholders by leveraging the firm's local expertise and client relationships.

**Note 18 Comparatives**

Certain comparative amounts have been reclassified to conform to the current period's presentation.

As disclosed in note 2 Accounting and Reporting Changes, comparative amounts in the Statements of Cash Flows have been

reclassified and presented in accordance with amendments to IFRS 9 and IFRS 7.

Manulife Financial Corporation – First Quarter 2026 97

**SHAREHOLDER INFORMATION**<br>

---

| | | |
|:---|:---|:---|
| **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 Montreal, Vancouver and <br>Calgary.<br>**United States**<br>Equiniti Trust Company, LLC<br>P.O. Box 500<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@vistra.com<br>Website: srhk.vistra.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>|

---

**Rating**<br>

---

| | | | |
|:---|:---|:---|:---|
| 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 March 31, 2026, Manulife had total capital of <br>C$82.8 billion, including C$50.6 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 May 13, 2026** | **As at May 13, 2026** | **As at May 13, 2026** |
| 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 March 31, 2026, Manulife had total capital of <br>C$82.8 billion, including C$50.6 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 March 31, 2026, Manulife had total capital of <br>C$82.8 billion, including C$50.6 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 March 31, 2026, Manulife had total capital of <br>C$82.8 billion, including C$50.6 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 | Aa3 | (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 March 31, 2026, Manulife had total capital of <br>C$82.8 billion, including C$50.6 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 March 31, 2026, Manulife had total capital of <br>C$82.8 billion, including C$50.6 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 March 31, 2026, Manulife had total capital of <br>C$82.8 billion, including C$50.6 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) |

---

**Common Stock Trading Data**<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 third quarter. The common <br>stock symbol is **MFC** on all exchanges except Hong <br>Kong where it is **945**. | As at March 31, 2026, there were 1,672 million common shares <br>outstanding.  | As at March 31, 2026, there were 1,672 million common shares <br>outstanding.  | As at March 31, 2026, there were 1,672 million common shares <br>outstanding.  | As at March 31, 2026, there were 1,672 million common shares <br>outstanding.  | As at March 31, 2026, there were 1,672 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 third quarter. The common <br>stock symbol is **MFC** on all exchanges except Hong <br>Kong where it is **945**. | January 1 – <br>March 31, 2026 | **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 third quarter. The common <br>stock symbol is **MFC** on all exchanges except Hong <br>Kong where it is **945**. | January 1 – <br>March 31, 2026 | 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 third quarter. The common <br>stock symbol is **MFC** on all exchanges except Hong <br>Kong where it is **945**. | High | $52.46 | $38.55 | $300.80 | P 2,140 |
| 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 third quarter. The common <br>stock symbol is **MFC** on all exchanges except Hong <br>Kong where it is **945**. | Low | $45.34 | $33.40 | $261.60 | 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 third quarter. The common <br>stock symbol is **MFC** on all exchanges except Hong <br>Kong where it is **945**. | Close | $47.92 | $34.44 | $265.80 | P 1,915 |
| 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 third 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>| 8783 | 2451 | 13 | 0.1 |

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Manulife Financial Corporation – First Quarter 2026 98

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Manulife, Manulife & Stylized M Design, and Stylized M Design are trademarks of The Manufacturers Life Insurance Company

and are used by it, and by its affiliates, including Manulife Financial Corporation, under license.

## 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 March 31, 2026.

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 January 1, 2026 and ended on March 31, 2026 that has materially affected, or is reasonably likely to

materially affect, the issuer's ICFR.

Date: May 13, 2026

---

| |
|:---|
| */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 March 31, 2026.

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 January 1, 2026 and ended on March 31, 2026 that has materially affected, or is reasonably likely to

materially affect, the issuer's ICFR.

Date: May 13, 2026

---

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

---