A.M. Best Affirms Ratings of Manulife Financial Corporation and Its Subsidiaries.

OLDWICK, N.J. -- A.M. Best Co. has affirmed the financial strength rating (FSR) of A++ (Superior) and issuer credit ratings (ICR) of "aa+" of The Manufacturers Life Insurance Company (MLI) (Toronto, Canada), John Hancock Life Insurance Company (JHLIC) (Boston, MA) and their affiliates. Additionally, A.M. Best has affirmed all the debt ratings of Manulife Financial Corporation (Manulife) (Toronto, Canada) [NYSE: MFC] and its subsidiaries. The outlook for all ratings is stable. (See link below for a detailed listing of the companies and ratings.)

The ratings of Manulife reflect its leadership position in multiple global markets as evidenced by strong franchises in Canada and the United States and a growing presence in Asia, increasing profitability from its geographically diversified businesses, its strong capitalization and conservative reserving practices. Manulife is a Canadian-based financial services company and a leading provider of financial protection and wealth management products in 19 countries and territories worldwide. Manulife's product, operational and geographic diversification, as well as its leadership position in many of its markets, continues to provide the company with a growing revenue base and increased earnings. Furthermore, Manulife maintains a leadership position as a North American life and property/casualty retrocessionaire.

In addition, Manulife has successfully integrated its 2004 acquisition of John Hancock Financial Services, Inc. (John Hancock) with its existing U.S. operations, achieving significant costs savings. The introduction of new products to John Hancock's distribution strengthened its leadership positions in the long-term care, variable annuity and life and small case pension businesses in the United States. In addition, these actions improved the overall profitability of its U.S. operations and increased market share.

In the Canadian insurance market, MLI maintains a leadership position, and the merger of John Hancock's Canadian subsidiary, Maritime Life, into MLI enhanced that position. The guaranteed minimum withdrawal benefit incorporated into MLI's Segregated Fund offering in late 2006 was a first in the Canadian market and demonstrated Manulife's ability to incorporate product design common in the U.S. market.

Partially offsetting these strengths is the equity market risk that Manulife incurs through its large portfolio of investment linked products. Variable products expose Manulife to equity market fluctuations, which it currently does not hedge. Ongoing low interest rates have resulted in net outflows in its fixed products in the United States, and A.M. Best expects competition to remain fierce in Manulife's domestic and foreign markets. Finally, the long-term care market in the United States has been subject to adverse claims experience primarily on older blocks of business, which has led to reserve strengthening for many carriers.

For a complete listing of John Hancock Financial Services, Inc.'s and Manulife Financial Corporation's FSRs, ICRs and debt ratings, please visit www.ambest.com/press/060711manulife.pdf.

Founded in 1899, A.M. Best Company is a full-service credit rating organization dedicated to serving the financial services industries, including the banking and insurance sectors. For more information, visit www.ambest.com.