A.M. Best Affirms Ratings of John Hancock Life Insurance Company.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Jan. 30, 2001 A.M. Best Co. has affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. the A++ (Superior) financial strength rating of John Hancock Life Insurance Company, Boston, Massachusetts “Boston” redirects here. For other uses, see Boston (disambiguation). Boston is the capital and most populous city of Massachusetts.[3] The largest city in New England, Boston is considered the unofficial economic and cultural center of the entire New , and its two principal life insurance subsidiaries, John Hancock Variable Life Insurance Company and Investors Partner Life Insurance Company. These rating actions reflect the organization's position as a leading provider of insurance and pension products and services, sound capitalization, excellent earnings performance, expertise in investment management and strong risk management capabilities, particularly with respect to interest rate and overall asset/liability management Asset/Liability Management A technique companies employ in coordinating the management of assets and liabilities so that an adequate return may be earned. Also known as "surplus management. . This rating also reflects the diversity and growth in the company's core businesses, as well as its success in enhancing its distribution capabilities. A.M. Best believes these strengths, along with its strong franchise value, will allow John Hancock to continue to compete successfully over the near term. A.M. Best also views positively the successful completion of its demutualization Demutualization The process of changing corporate structure from a mutual fund company to some other form, such as a limited liability or corporation. Notes: This means mutual/life insurance companies convert from policyholder companies to stock companies. in early 2000. This change in corporate structure further enhances the company's already high level of financial flexibility by allowing it more efficient access to the capital markets and adding common stock as a potential source of funding. Although assigned its highest financial strength rating, A.M. Best believes the increasingly competitive environment may somewhat weaken John Hancock's relative position. As a result, the company will be challenged in further broadening its distribution channels while sustaining growth in revenue, assets and earnings, commensurate com·men·su·rate adj. 1. Of the same size, extent, or duration as another. 2. Corresponding in size or degree; proportionate: a salary commensurate with my performance. 3. with its highly rated peers, particularly as it competes with larger and more diversified financial The diversified financial services segment includes a range of consumer and commercially-oriented companies offering a wide variety of products and services, including various lending products (such as home equity loans and credit cards), insurance, and securities and investment services institutions. A.M. Best also expects that, like many of its competitors, John Hancock will be under increasing pressure to improve operating efficiency and enhance the support and services provided to customers and distributors, while meeting the financial demands of its public shareholders. Finally, A.M. Best notes that John Hancock is exposed to potential earnings volatility arising from several sources including the relatively higher degree of credit risk maintained in its investment portfolio, as well as the interest rate risk inherent in its businesses. These risks, however, are mitigated by John Hancock's prudent underwriting Underwriting 1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments that are issuing securities (both equity and debt). 2. The process of issuing insurance policies. strategy and sophisticated asset liability management techniques. A.M. Best also affirmed the A+ (Superior) rating of Maritime Life The Maritime Life Assurance Company was a Canadian insurance company based in Halifax, Nova Scotia. It was founded in 1922 and in 2004 it became fully integrated with Manulife Financial, with the Maritime Life brand being retired. In 2004 it employed 2700 employees. Assurance Co. (Canada), a John Hancock subsidiary. The "aa-" rating of John Hancock's 7.38% Surplus Notes due 2024 has also been affirmed. 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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