A.M. Best Affirms Ratings of Manulife and John Hancock With Stable Outlooks Due to Announced Merger.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Sept. 29, 2003 A.M. Best Co. has taken the following rating actions as a result of today's announcement that Manulife Financial Manulife Financial (NYSE: MFC, TSX: MFC, SEHK: 945, PSE: MFC), also known as The Manufacturers Life Insurance Company, is a major Canadian insurance company and financial services provider. Corporation (Ontario) (NYSE NYSE See: New York Stock Exchange : MFC (Microsoft Foundation Class) An application framework for writing Microsoft C/C++ and Visual C++ applications. See application framework. MFC - Microsoft Foundation Class ) and John Hancock Financial Services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. , Inc. (Boston) (NYSE: JHF JHF John Henry Foster Co. (St. Louis, MO) JHF Jewish Healthcare Foundation JHF Juvenile Hyaline Fibromatosis ) plan to merge the companies through a 100% share exchange. A.M. Best Co. has affirmed the financial strength rating of A++ (Superior) of Manufacturers Life Insurance Company (Manulife) (Toronto) and its U.S. subsidiaries. Additionally, A.M. Best has affirmed the debt ratings of Manulife Financial Corporation and its subsidiaries. These ratings have stable outlooks. A.M. Best has affirmed the financial strength rating of A++ (Superior) of John Hancock Life Insurance Company (JHLIC) (Boston) and its U.S. subsidiaries. While this rating outlook has been changed to stable from negative, A.M. Best might reverse the outlook if the merger between Manulife and JHLIC does not occur. Lastly, A.M. Best has placed the financial strength rating of A+ (Superior) of Maritime Life Assurance Company (MLAC MLAC Massachusetts Legal Assistance Corporation MLAC Mechanized Loop Assignment Center MLAC Mammoth Lakes, California MLAC Missing Logical and in Expression Used as Branch Condition (software fault) ) (Halifax, Canada) under review with positive implications. John Hancock Financial Services, Inc. (JHFS JHFS John Hancock Financial Services ) is to become a wholly-owned subsidiary of Manulife Financial Corp. The transaction is expected to close in 2nd Quarter, 2004, subject to regulatory approvals and a vote by JHFS shareholders. A.M. Best views this transaction as a key component of Manulife's growth strategy to become a leading global financial services company. The combined organization will be the second largest life insurance company in North America based on market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. . A.M. Best views this transaction favorably and notes the strategic fit between the organizations, highlighted by complementary geographic businesses in the United States, Canada and Asia, which provide a solid platform to achieve significant costs savings upon integration. The combined organization will possess significant scale and share in every market in which it operates. A.M. Best expects the combined organization to generate diversified and balanced earnings and to benefit from cross-selling opportunities through enhanced distribution and complementary products in the U.S. and Canada. On a pro-forma basis, A.M. Best expects that Manulife's capitalization will remain strong with a Minimum Continuing Capital and Surplus Requirement (MCCSR MCCSR Minimum Continuing Capital and Surplus Requirements (insurance) ) of approximately 200% post-closing, with strong recurring earnings increasing this ratio going forward. Manulife Financial Corporation is a leading Canadian-based financial services group operating in 15 countries and territories worldwide. As of June 30, 2003, Manulife Financial Corporation reported funds under management of CAD144.3 billion. The financial strength rating of A++ (Superior) has been affirmed for Manufacturers Life Insurance Company and its subsidiaries: -- Manufacturers Life Insurance Company (U.S.A.) -- Manufacturers Life Insurance Company of NY The following debt ratings have been affirmed: Manufacturers Life Insurance Company-- -- "aa-" on CAD250 million 5.70% subordinated debentures, due 2011 -- "aa-" on CAD550 million 6.24% subordinated debentures, due 2016 -- "aa-" on USD USD In currencies, this is the abbreviation for the U.S. Dollar. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 250 million 7.875% subordinated notes, due 2005 Manulife Financial Corporation-- -- "a" on CAD350 million 4.10% non-cumulative preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. The Manufacturers Investment Corporation (MIC Financing Trust I)-- (guaranteed on a subordinated basis by Manufacturers Life Insurance Company) -- "aa-" on USD500 million 8.375% Capital Trust Pass-through Securities (TRUPS TRUPS Capital Trust Pass-Through Securities ) Units Manulife Financial Capital Trust (MaCS)-- -- "a+" on CAD60 million Manulife Financial Capital Securities - Series A -- "a+" on CAD940 million Manulife Financial Capital Securities - Series B The financial strength rating of A++ (Superior) has been affirmed for John Hancock Life Insurance Company and its subsidiaries: -- John Hancock Variable Life Insurance Company -- Investors Partner Life Insurance Company The following debt rating has been affirmed: John Hancock Life Insurance Company-- -- "aa-" on $450 million 7.375% surplus notes, due 2024 For a list of A.M. Best's current debt ratings, please visit www.ambest.com/ratings/debtrating/companies.html 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. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion