C$ unless otherwise
stated
TSX/NYSE/PSE:
MFC SEHK:
945
TORONTO, Feb. 1, 2022
/PRNewswire/ - Manulife announced today that its subsidiary, John
Hancock Life Insurance Company (U.S.A.) ("John Hancock"), has successfully
closed the previously announced transaction to reinsure a
substantial portion of its legacy U.S. Variable Annuity block,
consisting primarily of policies with Guaranteed Minimum Withdrawal
Benefits riders, with Corporate Solutions Life Reinsurance Company,
a subsidiary of Venerable Holdings, Inc.
"The successful completion of this U.S. Variable Annuity
reinsurance transaction marks an important milestone in our ongoing
commitment to optimizing our legacy portfolio," said Manulife
President & Chief Executive Officer Roy
Gori. "This transaction unlocks value for our shareholders
and meaningfully reduces our go-forward risk profile, while
contributing to our goal of shifting the earnings mix of our
franchise to focus on our highest potential businesses. We are
pleased to have achieved such a strong outcome," added Mr.
Gori.
John Hancock will continue to
administer the policies, providing for a seamless customer service
experience. For more information on the transaction, please see our
November 15, 2021 announcement.
About Manulife
Manulife Financial Corporation is a leading international
financial services provider that helps people make their decisions
easier and lives better. With our global headquarters in
Toronto, Canada, we provide
financial advice and insurance, operating as Manulife across
Canada, Asia, and Europe, and primarily as John Hancock in the
United States. Through Manulife Investment Management, the
global brand for our global wealth and asset management segment, we
serve individuals, institutions and retirement plan members
worldwide. At the end of 2020, we had more than 37,000 employees,
over 118,000 agents, and thousands of distribution partners,
serving over 30 million customers. As of September 30, 2021, we had CAD$1.4 trillion (US$1.1
trillion) in assets under management and administration, and
in the previous 12 months we made CAD$31.6
billion in payments to our customers.
Our principal operations are in Asia and Canada, and the
United States, where we have served customers for more than
155 years. We trade as 'MFC' on the Toronto, New
York, and the Philippine stock exchanges and under '945' in
Hong Kong. Not all offerings are
available in all jurisdictions. For additional information, please
visit manulife.com
CAUTION REGARDING FORWARD-LOOKING STATEMENTS:
From
time to time, Manulife makes written and/or oral forward-looking
statements, including in this document. In addition, our
representatives may make forward-looking statements orally to
analysts, investors, the media and others. All such statements are
made pursuant to the "safe harbour" provisions of Canadian
provincial securities laws and the U.S. Private Securities
Litigation Reform Act of 1995.
The forward-looking statements in this document
include statements concerning the reinsurance transaction
between John Hancock and Corporate
Solutions Life Reinsurance Company, including the benefits of such
transaction to Manulife. Although we believe that the expectations
reflected in such forward-looking statements are reasonable, such
statements involve risks and uncertainties, and undue reliance
should not be placed on such statements and they should not be
interpreted as confirming market or analysts' expectations in any
way.
Certain material factors or assumptions are applied in making
forward-looking statements and actual results may differ materially
from those expressed or implied in such statements.
Important factors that could cause actual results to differ
materially from expectations include but are not limited to:
general business and economic conditions (including but not limited
to the performance, volatility and correlation of equity markets,
interest rates, credit and swap spreads, currency rates, investment
losses and defaults, market liquidity and creditworthiness of
guarantors, reinsurers and counterparties); the severity, duration
and spread of the COVID-19 outbreak, as well as actions that have
been or may be taken by governmental authorities to contain
COVID-19 or to treat its impact; changes in laws and regulations;
changes in accounting standards applicable in any of the
territories in which we operate; changes in regulatory capital
requirements; our ability to execute strategic plans and changes to
strategic plans; downgrades in our financial strength or credit
ratings; our ability to maintain our reputation; impairments of
goodwill or intangible assets or the establishment of provisions
against future tax assets; the accuracy of estimates relating to
morbidity, mortality and policyholder behaviour; the accuracy of
other estimates used in applying accounting policies, actuarial
methods and embedded value methods; our ability to implement
effective hedging strategies and unforeseen consequences arising
from such strategies; our ability to source appropriate assets to
back our long-dated liabilities; level of competition and
consolidation; our ability to market and distribute products
through current and future distribution channels; unforeseen
liabilities or asset impairments arising from acquisitions and
dispositions of businesses; the realization of losses arising from
the sale of investments classified as available-for-sale; our
liquidity, including the availability of financing to satisfy
existing financial liabilities on expected maturity dates when
required; obligations to pledge additional collateral; the
availability of letters of credit to provide capital management
flexibility; accuracy of information received from counterparties
and the ability of counterparties to meet their obligations; the
availability, affordability and adequacy of reinsurance; legal and
regulatory proceedings, including tax audits, tax litigation or
similar proceedings; our ability to adapt products and services to
the changing market; our ability to attract and retain key
executives, employees and agents; the appropriate use and
interpretation of complex models or deficiencies in models used;
political, legal, operational and other risks associated with our
non-North American operations; acquisitions and our ability to
complete acquisitions including the availability of equity and debt
financing for this purpose; the disruption of or changes to key
elements of the Company's or public infrastructure systems;
environmental concerns; our ability to protect our intellectual
property and exposure to claims of infringement; our inability to
withdraw cash from subsidiaries; and the fact that the amount and
timing of any future common share repurchases will depend on the
earnings, cash requirements and financial condition of Manulife,
market conditions, capital requirements (including under LICAT
capital standards), common share issuance requirements, applicable
law and regulations (including Canadian and U.S. securities laws
and Canadian insurance company regulations), and other factors
deemed relevant by Manulife, and may be subject to regulatory
approval or conditions.
Additional information about material risk factors that could
cause actual results to differ materially from expectations and
about material factors or assumptions applied in making
forward-looking statements may be found under "Risk Factors and
Risk Management" and "Critical Actuarial and Accounting Policies"
in the Management's Discussion and Analysis in our most recent
annual report, under "Risk Management and Risk Factors Update" and
"Critical Actuarial and Accounting Policies" in the Management's
Discussion and Analysis in our most recent interim report, in the
"Risk Management" note to the consolidated financial statements in
our most recent annual and interim reports as well as elsewhere in
our filings with Canadian and U.S. securities regulators.
The forward-looking statements in this document are, unless
otherwise indicated, stated as of the date hereof and are presented
for the purpose of assisting investors and others in understanding
our financial position and results of operations, our future
operations, as well as our objectives and strategic priorities, and
may not be appropriate for other purposes. We do not undertake to
update any forward-looking statements, except as required by
law.
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SOURCE Manulife Financial Corporation
