A.M. Best Affirms Financial Strength Rating of Manufacturers Life and Subsidiaries.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 14, 2001 A.M. Best Co. has affirmed the group financial strength rating of A++ (Superior) for The Manufacturers Life Insurance Company (Manulife), Toronto, Canada, and its strategic U.S. subsidiaries, Manulife Reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. Corporation (U.S.A.), The Manufacturers Life Insurance Company (U.S.A.), The Manufacturers Life Insurance Company of America, The Manufacturers Life Insurance Company of North America and The Manufacturers Life Insurance Company of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of . The rating reflects Manulife's established presence in multiple markets, robust profitability from its geographically diversified businesses, conservative reserving practices and strong capitalization. The group maintains a superior franchise as a top provider of financial protection products and wealth management services in Canada, the United States and Asia. Accounting for approximately 25% of consolidated earnings, the group's Canadian division maintains leading positions in insurance and wealth management business. The U.S. division generates approximately 30-40% of the group's profits enhanced by solid positions in markets such as small-to-medium group pensions, estate planning Estate Planning The overall planning of a person's wealth, including the preparation of a will and the planning of taxes after the individual's death. Notes: Contrary to popular belief, estate planning involves much more than preparing a will, and it is not only for the and life insurance products for affluent individuals and variable annuities Variable annuities Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio. sold primarily through broker-dealers. Rounding out Manulife's diverse operating profile are significant and growing operations in Asia, principally in Hong Kong and Japan. In Hong Kong, Manulife is the leading insurer for Mandatory Provident Fund Mandatory Provident Fund (Traditional Chinese: 強制性公積金), often abbreviated as MPF (強積金), is a compulsory saving scheme for the retirement of residents in Hong Kong. business. A.M. Best notes Manulife will maintain a significant market presence in North America due to its strong name recognition, extensive distribution, enhanced efficiency through expense reductions and targeted acquisitions. Manulife has achieved superior returns by executing a balanced strategy of organic growth through product innovation combined with key acquisitions and strong investment performance. Manulife's market share in products such as small-case group benefits and critical illness has been bolstered by the recent Zurich Life (group business) and Commercial Union transactions. Moreover, Manulife purchased the in-force business of Daihyaku Mutual, adding scale and earnings power to its operations in Japan. While the purchase represents a significant investment, A.M. Best continues to view Manulife's risk-adjusted capitalization as strong, supported by steady earnings growth and a high-quality investment portfolio. A.M. Best believes the consistent flow of earnings from Manulife's core businesses is sustainable and is enhanced by the group's operational and geographic diversification as well as its solid position in numerous markets have somewhat insulated the company from wide fluctuations in revenues and earnings. However, since a considerable amount of Manulife's earnings is derived from wealth management business, its operating results may be impacted by a prolonged equity market correction Market correction A relatively short-term drop in stock market prices, generally viewed as bringing overpriced stocks back to a level closer to companies' actual values. . Nevertheless, Manulife's variable annuities have performed well through the recent market volatility by exhibiting positive net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight in each of the last five quarters. Further, Manulife is exposed to the weak Japanese economy, which may cause earnings volatility if new business production differs materially from expectations. Nonetheless, in A.M. Best's opinion, Manulife's strong management team and prudent business strategy position the company well to prosper when Japan's economic climate improves. Manulife is a leading Canadian-based financial services company operating in fifteen countries and territories worldwide including Canada, United States, Hong Kong, Macau, Japan, the Philippines, Indonesia, Taiwan, Singapore, China and Vietnam. As of June 30, 2001, Manulife Financial Corporation (NYSE NYSE See: New York Stock Exchange , TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : MFC (Microsoft Foundation Class) An application framework for writing Microsoft C/C++ and Visual C++ applications. See application framework. MFC - Microsoft Foundation Class ) and its affiliated companies Affiliated Companies A situation that occurs when one company owns a minority interest (less than 50%) in another company. Also refers to companies that are related to each other in some way. Notes: An affiliated company is sometimes referred to as a subsidiary. had total funds under management of C$141 billion. A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at www.ambest.com. |
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