2010 News Releases

Solid Improvement in Major Earnings Indicators with Strong Growth in Individual Insurance Sales

Total Assets Hit Two Trillion Yen Mark

Tokyo- Manulife Life Insurance Company (hereinafter “Manulife Japan”; Head Office: Chofu-shi, Tokyo; President and CEO: Craig Bromley) announces its financial results for fiscal year 2009.

During the term, Manulife Japan recorded strong sales, driven mainly by robust sales performance via itsMGA[1] channel, maintaining solid momentum from the previous period. Annualized new business premium for individual insurance amounted to 31.7 billion yen, an increase of 20.2% compared to the same period in the prior year. While total combined annualized new business premium for individual insurance and individual annuity insurance during the period fell to 47.6 billion yen, down 13.3% on a year-over-year basis, due mainly to lower sales of variable annuity insurance, total combined annualized in-force premium for individual insurance and individual annuity insurance saw a steady increase, growing to 271.1 billion yen, up 10.5% on a year-over-year basis.

In addition, in February 2010, the Company rolled out two new products, a whole life insurance product and a multi-currency fixed annuity product, both of which have been well received by Japanese customers. Manulife Japan’s strong sales results have been achieved through the Company’s continued focus on its basic strategy, which is centered on the diversification and expansion of the Company’s sales channels and the timely development of new products which meet changes both in the market environment and in customer needs.  

Reflecting favorable sales of individual insurance and recovering equity markets, every major earnings indicator saw sound improvement during the period. Basic Earnings, an indicator representing the earnings performance of the Company’s core insurance business, rose to 8.2 billion yen over the same period in the prior year. Operating Income and Net Income for the period also showed a year-on-year improvement, rising to 16.8 billion yen and 16.7 billion yen, respectively.

Despite the continuing uncertain market environment, Manulife Japan maintained its robust financial strength. The Company’s Solvency Margin Ratio as of March 31, 2010 stood at 1256.4%, up 324.4 points from the end of March 2009. The Company’s total assets as of the end of March 2010 reached 2,041.4 billion yen, up 19.7% on a year-over-year basis, exceeding the two trillion yen mark for the first time in the Company’s history.

Craig Bromley, President and CEO of Manulife Japan, made the following statement regarding the financial results for the period:

“Manulife Japan continues to focus on the strategic diversification of its sales channels and the development of innovative products that meet customers’ needs, and these efforts have kept producing solid results. Going forward, while the business environment surrounding us remains uncertain, we will continue to take a proactive approach to maintain our solid financial strength and to further enhance the quality of our products and services.” 

About Manulife

Manulife Life Insurance Company (“Manulife Japan”) is a member of the Manulife Financial Group.

Manulife Financial is a leading Canadian-based financial services group serving millions of customers in 22 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the Company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents, and distribution partners.  Funds under management by Manulife Financial and its subsidiaries were Cdn$446.0 billion (US$440.0 billion) as of March 31, 2010.

Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘945’ on the SEHK.  Manulife Financial can be found on the Internet at www.manulife.com. Manulife Japan can be found on the Internet at www.manulife.co.jp.

1 The MGA (Managing General Agents) channel is named after the large-scale, independent agencies in the North American market. Manulife Japan established its MGA Department in February 2007, and is taking a proactive approach to realizing a new type of agency business in Japan, with a focus on the high net worth market segment, including business entrepreneurs, business owners, and other persons of means.