Manulife and Sun Life stocks surge past 2027 targets amid strong Q2 but face margin concerns in Hong Kong.

Manulife Financial and Sun Life Financial have exceeded their 2027 price targets within seven months, with year-to-date gains of 17% and 27% respectively. Both companies reported strong Q2 results, including Manulife's reinsurance of $3.2 billion in long-term care risk and a reversal in asset management outflows, while Sun Life improved its U.S. Group Benefits and set a timeline for its Dental segment. However, concerns remain about lower profit margins on policies sold in Hong Kong, which neither company has clearly explained despite analyst inquiries. Additionally, total shareholder yield has decreased from above 7% to around 5% for both, and their stock prices trade well above five-year average multiples.