Manulife Financial to launch Manulife Longevity Institute as part of expansion strategy

Key Concepts

• Manulife Longevity Institute: A new initiative by Manulife focused on research, advocacy, and community investment to help people live longer, healthier, and more financially secure lives.
• Manulife's Refreshed Strategy: A strategic plan launched by Manulife to set the company up for growth over the next decade and beyond, emphasizing disciplined execution, capital management, and clear priorities.
• India Insurance Market Entry: Manulife's expansion into the Indian insurance market through a partnership with Mahindra and Mahindra.
• Mega Economies: The US, China, and India are identified as the three key economies for future growth.
• New Business Contractual Service Margin (NBSCM): A metric used to measure the value derived from new insurance sales.
• Asia Growth: Significant growth in Manulife's earnings from its Asia markets, driven by strong performance in China, Singapore, and Hong Kong.

Manulife's Expansion Strategy and India Market Entry

Manulife has unveiled a new expansion strategy, highlighted by two key initiatives. Firstly, the company is launching the Manulife Longevity Institute, backed by a $350 million commitment through 2030. This institute will focus on research, advocacy, and community investment aimed at enabling individuals to live longer, healthier, and more financially secure lives. This initiative directly aligns with Manulife's strategic priority of empowering customers to achieve these goals.

Secondly, Manulife is significantly expanding its presence in India by entering the insurance market through a partnership with Mahindra and Mahindra. This move is driven by Manulife's identification of India as one of the three "mega economies" of the next generation, alongside the US and China. Manulife already has an existing asset management partnership with Mahindra, and this new agreement builds upon that foundation to enter the life insurance sector, complementing their asset management operations. This strategic move aims to establish Manulife's presence in both insurance and asset management across all three key future economies.

Phil Witherington, President and CEO of Manulife Financial Corporation, expressed excitement about the India expansion, stating, "WE HAVE EXPRESSED OUR INTENTION TO ENTER THE INDIA INSURANCE MARKET WITH A PARTNER, MAHINDRA OF INDIA." He further elaborated on the rationale, noting that India is a market where Manulife previously had a "relatively smaller presence." The company sees "favourable developments from a regulatory perspective" and "rapidly growing wealth in India," making it the "right time" for this expansion. Witherington is optimistic about the potential in India, as well as in China and across Asia, and also in their home markets of Canada and the US.

Asia Market Performance

Manulife has experienced substantial growth in its Asia markets, with 29% core earnings growth reported. This growth is attributed to strong performance in recent years. The value of new insurance sales, measured by New Business Contractual Service Margin (NBSCM), has been growing in excess of 30%. This has logically translated into earnings growth, with the company seeing 29% year-on-year and year-to-date earnings growth in Asia. This follows strong double-digit growth in both 2025 and 2024. The performance in the last quarter reflects the diversified nature of their business across Asia, with strong growth observed in China, Singapore, and continued value generation from key markets like Hong Kong.

Impact of Favorable Items and Refreshed Strategy

While acknowledging some favorable items that benefited the third quarter, Witherington emphasized that even when these are stripped out, the quarter demonstrated strong operating and financial results. He stated, "IT'S BEEN YET ANOTHER QUARTER FOR MANULIFE OF STRONG OPERATING AND FINANCIAL RESULTS." This performance is underpinned by robust sales and growth in assets under management within their wealth and asset management businesses. This confidence in their current performance is a key driver for unveiling their refreshed strategy, which is designed to position Manulife not just for short-term targets but for the "next ten years and beyond."

The Manulife Longevity Institute

The Manulife Longevity Institute represents a significant investment of 350 million Canadian dollars dedicated to advancing research, advocacy, and community investment. The core objective is to "help people live longer, healthier and more financially secure lives." This initiative is intrinsically linked to Manulife's strategic refresh, specifically the priority of empowering customers to achieve these life outcomes. Witherington highlighted the mutual benefit, stating, "IT'S ABSOLUTELY IN OUR INTERESTS FOR OUR CUSTOMERS TO LIVE LONGER." The institute aims to promote not just longer lifespans but also longer "health spans," meaning individuals spend more time in the healthy phase of life. Manulife intends to be there for customers during periods of ill health, viewing this as an opportunity to "turn the insurance industry on its head" by actively promoting health and wellness rather than solely focusing on transactional life insurance contracts.

Market Turmoil and Manulife's Position

Addressing broader market concerns, including potential impacts from AI valuations and general market turmoil, Witherington expressed pride in Manulife's stock price and performance. He attributes this success to a "period of transformation the organisation has been through," characterized by "disciplined execution, disciplined management of capital and clear strategic priorities." The objective for the next chapter of Manulife is to maintain "really clear priorities, not just for the next couple of years, but for the next decade and beyond," which is precisely what the strategy revamp and market entries like India aim to achieve.

Conclusion

Manulife is strategically positioning itself for future growth through a refreshed strategy that includes significant international expansion, particularly into the Indian insurance market via a partnership with Mahindra and Mahindra. The company is also investing in the well-being of its customers and the broader community through the Manulife Longevity Institute. Strong performance in its Asia markets, driven by robust sales and asset growth, provides a solid foundation for these initiatives. Manulife's leadership emphasizes disciplined execution and clear long-term priorities as key to navigating market dynamics and ensuring sustained success.