Affirms A++ Rating of Manufacturers Life.Business Editors OLDWICK, N.J.--(BUSINESS WIRE)--Aug. 28, 2000 AM Best Co. has affirmed the A++ (Superior) rating of Manufacturers Life Insurance Co., Toronto, and five of its subsidiaries. Also affirmed were the A++ ratings of U.S. strategic 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 North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. 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 of Manufacturers Life Insurance Co. is based on the consolidated financial strength and operating performance of the company and its subsidiaries. The rating also reflects the group's strong presence in multiple markets, improved profitability from its geographically diversified product line, conservative reserving practices and strong capitalization. Operational and geographic diversification and the company's strong market positions somewhat insulate it from wide fluctuations of revenues and earnings. Manufacturers Life is operationally diversified through insurance and non-insurance subsidiaries. The company maintains leading market positions in a number of businesses worldwide. It is a leader in the Canadian life insurance, defined contribution pension plan and group life and health markets, and enjoys strong name recognition in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , particularly in the 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 , variable annuity Variable Annuity An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio. and 401(k) markets. The company's operations are geographically diversified, as each of its major operating units in the United States (60%) and Canada (27%) represent a significant proportion of the combined general and segregated fund Segregated Fund A type of annuity that is similar to a mutual fund, and is an insurance product and offered only by insurance companies. Notes: Most segregated funds will guarantee a specific return, anywhere from 70% to 120%, over a certain period of time (five-10 years). premiums and deposits, while Asia and reinsurance represent 9% and 4%, respectively. Over the past few years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time company liquidated its U.S. group life and health operations, U.K. operations, equity interest in an investment counseling and mutual fund company and its non-strategic U.S. subsidiary, Capitol Bankers Life. These transactions are evidence of management's ability to execute a strategy concentrating on core businesses and markets with more attractive returns. Improved profitability from the company's core businesses has enabled it to maintain its superior capital strength. A.M. Best believes Manufacturers Life's recent 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. provides broader access to capital and positions it well to remain an industry leader and overcome the challenges it faces in the rapidly evolving insurance markets. It has, however, made a substantial strategic investment in Japan through its joint ownership of Manulife Century Life Insurance Co. with Daihyaku Mutual Life Insurance. This investment poses some risks associated with the uncertainty surrounding Daihyaku Mutual Life being placed into receivership in June 2000 by the Japanese regulator. However, Manufacturers Life may participate in an auction to purchase Daihyaku Mutual Life's business. 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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