MFC EPS of $1.00 beat estimates of 94c. Given a likelihood of continued strong growth in Manulife's Asia operations, which are gradually becoming a larger part of earnings (44% year to date), the insurer can likely reach the low end of its 10-12% core EPS growth target. Profit gains should also be solid in its wealth- and asset-management (WAM) business, as well as in Canada. The domestic division benefits from Manulife's position as a leader in group and individual insurance, while WAM's year-to-date inflows of $12 billion and rising Ebitda margin bode well. In the US, growth may be slower, as the company eases exposure to legacy lines, but the other businesses can mitigate this. More focus on expenses efficiency, complemented by digital and AI investments, is also likely to incrementally support profit. Buybacks may also help EPS. It was a good quarter. We think both could be owned right now, considering the economy, rate and market outlook. We would still marginally lean towards SLF if just one is to be owned.
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