DBRS Upgrades John Hancock, Confirms Manulife Financial

Dominion Bond Rating Service (“DBRS”) has today upgraded the Senior Notes rating of John Hancock Canadian Corporation to AA from AA (low) and is also upgrading the Issuer Rating of John Hancock Financial Services, Inc. (“John Hancock”) to AA from AA (low), reflecting successful integration (which is nearing completion) of John Hancock, which was purchased in 2004 by Manulife Financial Corporation (“Manulife’” or the “Company”). All other ratings of Manulife and associated companies are confirmed as listed above.

John Hancock’s U.S. operations are now closely integrated, with the harmonization of policies, including the centralization of investment processes, and expense and revenue synergies are on track to meet targets. Using the John Hancock brand, Manulife sees good expansion opportunities in the United States.

The Asia and Japan Division reported strong results for the first nine months of 2005, contributing 21% of total net income for the period. The outlook is favourable for this division, with a focus on growing distribution through continued agency expansion and bank distribution agreements, as well as the acquisition of other companies as opportunities arise.

Manulife has a strong balance sheet with excess capital and good internal capital generation. Credit quality remains favourable.

Note:
Issuer ratings apply to all general senior unsecured obligations of the issuer in question.
y – Designates hybrid instrument.
n – This security is non-cumulative.