AM Best Affirms Manulife's A+ Rating Highlighting Strong Performance and Risk Management

Manulife Financial Corporation is recognized for its strong operational performance and favorable business profile across its core markets of Asia, Canada, and the United States. According to a December 2025 assessment by AM Best, the company maintains a history of stable earnings despite some annual fluctuations. Manulife's diversified business model, encompassing insurance and wealth & asset management products, along with its leadership in key market segments, supports its financial resilience and earned it an A+ (Superior) financial strength rating from AM Best. AM Best highlights Manulife's very strong enterprise risk management (ERM) framework, which underpins its risk mitigation strategies and overall business stability. Notably, the insurer has strategically reduced risk exposure by reinsuring lower return-on-equity and non-core policy blocks, especially those related to long-term care insurance. These initiatives reflect prudent risk management and contribute to the company's financial strength. Despite progress in risk reduction, Manulife retains some exposure to non-core lines, including long-term care and universal life insurance with secondary guarantees. AM Best notes that Manulife employs conservative reserving, proactive loss prevention initiatives, policy conversion programs, and reinsurance arrangements to manage these exposures effectively. Investment diversification also plays a role in Manulife's financial strategy. Although its alternative long-duration asset portfolio has seen some volatility, it has historically provided favorable returns and enhanced overall investment yield. The company’s approach to asset management complements its insurance operations and supports earnings stability. In summary, Manulife's balanced business model, geographic diversification, strong ERM practices, and targeted risk mitigation efforts contribute to its stable earnings and strong credit profile. These factors position the company to manage evolving market risks and maintain competitive strength in the North American and Asian insurance sectors.