DBRS Confirms Ratings on Manulife Financial, at AA (low) and Pfd-1 (low), and Related Entities

DBRS has confirmed the ratings of Manulife Financial Corporation (Manulife or the Company) at AA (low) and Pfd-1 (low). DBRS has also confirmed the ratings of Manulife’s affiliates, The Manufacturers Life Insurance Company, Manulife Finance (Delaware), L.P., Manulife Financial Capital Trust, Maritime Life Canadian Funding, John Hancock Canadian Corporation and John Hancock Financial Services, Inc.

Following its acquisition and subsequent successful integration of John Hancock Financial Services, the Company is well postured to be among the most effective insurance concerns in the world with good diversification by geography, product and distribution channel. Through excellent risk management practices and governance, profitability remains stable, reinforcing strong capital and liquidity positions as well as superior asset quality.

Recent earnings are healthy, reflecting strong growth in assets under management (AUM), unprecedented strong asset quality, the Company’s large in-force blocks of insurance business, as well as its consistently positive experience gains.

Despite its increased emphasis on wealth management and savings accumulation products where competition for share of the consumers’ wallet is fierce, Manulife is also a market leader in the higher-margin life insurance protection and payout products in both of its major markets. These products appeal increasingly to the affluent baby boomer generation for estate and retirement planning purposes. At the same time, the Company is also well positioned to benefit from lower levels of protection product penetration in certain Asian markets and the rapidly evolving savings accumulation markets in Hong Kong and Japan.

The consistent challenge for the Company in all regions is to broaden and expand its distribution capacity while maintaining product innovation and service quality.

Note:
Manufacturers Life Insurance Company's Issuer Rating is a new rating in support of the existing Manulife Bank of Canada rating.