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 the ICR and 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, robust 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. The company's product, operational and geographic diversification, as well as its leadership positions in many of these markets, somewhat insulates it from wide fluctuations of revenues and earnings. The company maintains strong franchise and market positions in all core markets in which it operates in Canada, the United States and in Asia. In addition to organic growth, Manulife has selectively pursued acquisitions. Manulife Financial Corporation's merger with John Hancock Financial Services, Inc. has provided complementary geographic businesses in the United States, Canada and Asia and improved on the significant scale and share in the markets where Manulife operates. Profitability from the company's core businesses in the United States and Canada has continued to grow primarily as a result of increased sales through product innovation, combined with expense reductions and strong investment performance, which has led to a strong level of capitalization. A.M. Best continues to believe the company is conservatively reserved, enhancing the level of risk-adjusted capitalization.

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 partially hedges. Recent declines in global equity markets have caused the company to record asset impairment, reducing income. In addition, declines in asset values have led to reduced fee income on managed assets. Ongoing low interest rates have resulted in net outflows in its fixed products in the United States, while the recent weakness of the U.S. dollar depressed results from U.S. operations. 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. In addition, increased competition in its global market from domestic companies has presented growth challenges to Manulife Financial. A.M. Best recognizes that Manulife Financial's strong management team has demonstrated an ability to deal with these issues and believes the company continues to be well positioned to compete and grow in this global economy.

For a complete listing of Manulife Financial Corporation's and John Hancock Financial Services, Inc.'s FSRs, ICRs and debt ratings, please visit www.ambest.com/press/060604manulife.pdf.

Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.