Manulife vs. Sun Life: 1 Canadian Insurer I’d Buy and Hold

Manulife and Sun Life are both high-quality Canadian insurers, but Manulife has the slightly better mix of growth and value right now.

Key Points
  • Manulife is leaning harder into faster-growing Asia and wealth management, and it’s still priced reasonably.
  • Sun Life is very solid and a bit steadier, but its growth outlook looks more measured at today’s valuation.
  • If you must pick one for long-term holding in 2026, Manulife edges out Sun Life.

Canadian insurers still look like strong long-term picks in 2026. They tend to throw off dependable cash, return a healthy chunk to shareholders, and lean on businesses that don’t disappear just because markets get choppy. That’s why today we’re looking at the best of the best. But, which one edges out the other?

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MFC

Manulife (TSX: MFC) looks compelling right now because it has quietly turned into more than just a traditional insurer. It runs a huge global business across Asia, Canada, the U.S., and wealth and asset management, with $1.7 trillion in assets under management and administration at the end of 2025. Over the last year, one of the biggest themes was strength in Asia, which helped power growth and gave investors another reason to pay attention. Late last year MFC stock’s Asia business posted a 29% jump in core earnings in one quarter, showing where the momentum sits.

The earnings story looks solid. For the fourth quarter of 2025, MFC stock reported core earnings up 5% year over year, while management called 2025 a defining year with record core earnings and more than 20% new business CSM growth across all insurance segments. It also raised its quarterly dividend by 10.2% to $0.485 per share, which gives investors another signal that management feels good about cash flow and capital strength.

Valuation still leaves room for upside. MFC stock trades at about 15 times trailing earnings and roughly 10.3 times forward earnings at writing. That’s not dirt cheap, but it still looks reasonable for a company with global scale, dividend growth, and expanding higher-growth operations in Asia and wealth management. The main risk is that insurance earnings can swing with claims, markets, and interest rates, but for a buy-and-hold investor, MFC stock looks like the more attractive mix of growth and value.

SLF

Sun Life (TSX: SLF) also deserves respect. It built a strong mix of insurance, wealth, and health businesses across Canada, the U.S., Asia, and asset management. That broader health and benefits focus gives it a slightly different flavour than MFC stock, and that can appeal to investors who want steadier fee and protection revenue. Over the last year, Sun Life kept pushing that strategy while also drawing attention for expansion ambitions abroad, including reported interest in insurance assets in Singapore.

Its latest numbers were strong. Sun Life reported fourth-quarter 2025 underlying net income of $1.1 billion, up from $965 million a year earlier, while full-year underlying net income rose to $4.2 billion from $3.9 billion. Underlying earnings per share climbed 17% in the quarter, and underlying return on equity came in at 19.1%. It also ended 2025 with $1.6 trillion in assets under management and lifted its dividend by 9% year over year.

Sun Life’s valuation looks fair as well. It traded at 14 times trailing earnings and about 11 times forward earnings at writing, so it’s hardly expensive. The catch is that a lot of its good qualities already look well understood by the market, and its growth story feels a touch more measured than MFC stock’s at the moment. It still fits a buy-and-hold portfolio nicely, but investors need to watch asset-management flows, market sensitivity, and any slowdown in key growth regions.

Bottom line

Between the two, I’d buy and hold MFC stock. Sun Life looks like a quality stock, but MFC stock has the sharper growth angle right now, especially through Asia and wealth management, while still offering a reasonable valuation and rising dividend. But both certainly can bring in substantial income even from a $7,000 investment.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
MFC$46.32151$1.81$273.31Quarterly$6,994.32
SLF$85.3781$3.60$291.60Quarterly$6,914.97

For investors who want one Canadian insurer to tuck away and forget about for years, MFC stock gets the nod.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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