DUFF & PHELPS: THE MANUFACTURERS LIFE INSURANCE COMPANY CLAIMS PAYING ABILITY REAFFIRMED 'AAA'
CHICAGO, July 22 /PRNewswire/ -- Duff & Phelps Credit Rating Co. has reaffirmed the claims paying ability rating of `AAA' (Triple-A) for The Manufacturers Life Insurance Company (Manulife Financial). The rating reflects: (1) the company's superior statutory and "economic" capital position; (2) the diversity of its operations across both product lines and geographic markets; (3) the strong profitability of its insurance operations; (4) and its strong liquidity position in conjunction with very stable product liabilities. These strengths far outweigh the generally poor economic conditions in various real estate markets and the potential effect on Manulife Financial's mortgage and real estate portfolios. Manulife Financial is a leading mutual life insurance organization domiciled in Canada, and is one of the fifteen largest life insurance organizations in North America and the largest life insurance company in Canada in terms of assets. Manulife Financial's consolidated assets were C$37.0 billion (including segregated funds) at year end 1992. Consolidated adjusted capital and surplus of Manulife Financial was approximately C$3.5 billion (including deferred gains). Total premiums and annuity deposits of the Manulife Financial group were C$4.1 billion during 1992, and were diversified across Canada, the United States, Pacific Asia, and the U.K. Activities of the group include life insurance, individual and group annuities, reinsurance, and to a lesser extent accident & health insurance. Outside of insurance activities, Manulife Financial owns trust and banking operations, has a beneficial equity interest in an investment management firm (Altamira Management, Limited), and formed a Schedule II bank (Manulife Bank of Canada) effective Jan. 1, 1993. Before provisions of C$200 million, Manulife Financial's consolidated operating income was C$277 million for the year of 1992, producing a strong adjusted return on average assets of 1.60 percent. Manulife Financial's consolidated invested assets (excluding segregated funds) at year end 1992 were divided: 44 percent-bonds; 7 percent equities; 29 percent-mortgages; 9 percent-investment real estate; 4 percent-policy loans; 5 percent-cash and short-term investments; and 2 percent other. Canadian and U.S. mortgages are performing within industry norms and real estate owned is producing good cash returns and high occupancy levels. Underperforming mortgage and real estate investments remain modest relative to adjusted capital and surplus. Manulife Financial has significant depth and breadth of management. Asset/liability management capabilities are considered strong. -0- 7/23/93 /CONTACT: Kevin A. Ceurvorst of Duff & Phelps, 312-368-3144/
CO: The Manufacturers Life Insurance Company ST: IN: INS SU: RTG
SH -- NY045 -- 5137 07/23/93 12:04 EDT
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|Date:||Jul 23, 1993|
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