Profile: Manulife Financial Corp (MFC.N)

Manulife Financial Corporation (MFC), incorporated on April 26, 1999, is a Canada-based financial services group with principal operations in Asia, Canada and the United States. MFC is a life insurance company and the holding company of The Manufacturers Life Insurance Company (MLI) and John Hancock Reassurance Company Ltd. (JHRECO). The Company’s international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients, as well as asset management services to institutional customers. It also provides asset management services to institutional customers. It operates as Manulife Financial in Canada and Asia and as John Hancock in the United States. The Company operates in five divisions: Asia Division, Canadian Division, U.S. Division, U.S. Wealth Management and Corporate and Other segment. In August 2011, it sold Life Retrocession business to Pacific Life Insurance Company. In October 2012, its United States unit, John Hancock, acquired two new real estate assets - 3161 Michelson Drive in Irvine, California and a two-building office complex, West Windsor Commons, in Princeton, New Jersey. In October 2012, the Company purchased Benesure Canada Inc. In October 2012, the Company acquired Wellington West Financial Services Inc., a division of Wellington West Holdings Inc., and a dealership registered with the Mutual Funds Dealers Association (MFDA), from National Bank. In January 2013, the Company acquired Benesure Canada Inc.

The Company’s subsidiaries include Manulife Holdings (Alberta) Limited, John Hancock Financial Corporation, The Manufacturers Investment Corporation, John Hancock Life Insurance Company (U.S.A.), John Hancock Subsidiaries LLC, Declaration Management & Research LLC, John Hancock Financial Network, Inc., The Berkeley Financial Group, LLC, John Hancock Advisers, LLC, John Hancock Funds, LLC, Hancock Natural Resource Group, Inc., John Hancock Life Insurance Company of New York, John Hancock Investment Management Services, LLC, John Hancock Life & Health Insurance Company, John Hancock Distributors LLC, John Hancock Insurance Agency, Inc., Manulife Reinsurance Limited, Manulife Reinsurance (Bermuda) Limited, Manulife Bank of Canada, Manulife Canada Ltd., FNA Financial Inc., Manulife Asset Management Limited and First North American Insurance Company. Corporate and Other consist of the earnings on assets backing capital, net of amounts allocated to operating divisions, Investment Division’s external asset management business (Manulife Asset Management), the Company’s Property and Casualty Reinsurance business, its run-off reinsurance business lines.

Asia Division

MFC offers a diverse portfolio of protection, savings and wealth management products and services to meet the needs of individuals and corporate customers. To its customers, the Company distributes the products through a multi-channel network, including more than fifty thousand tied agents, bank partners, independent agents, and financial advisors. As of December 31, 2011, as a pan-Asian insurer, the Company had insurance and asset management operations in 10 markets. In addition to Hong Kong, it operates in the Philippines, Singapore, Indonesia, Taiwan, China, Japan, Vietnam, Malaysia, and Thailand. During the year ended December 31, 2011, Asia Division contributed 16% of the Company’s total premiums and deposits and, as at December 31, 2011, accounted for 14% of the Company’s funds under management

Canadian Division

MFC’s Canadian Division is a financial services organization in Canada. The Company’s portfolio includes a range of protection and savings products and services available through a diversified distribution base, meeting the needs of a broad marketplace. Its individual life and living benefits insurance products are for the middle and upper-income individuals and business owners. Its Affinity Markets business offers life, health and specialty products, such as travel insurance, through alternative distribution channels, as well as direct to customer marketing. Group life, health, disability and retirement products and services are marketed to Canadian employers. The Company’s individual wealth management product offerings include mutual funds, fixed and variable annuities, guaranteed investment certificates and high interest savings accounts. In addition, through Manulife Bank of Canada and Manulife Trust Company, the Company offers a range of lending products, including fixed and variable rate mortgages, most notably its Manulife One product, and investment loans. During 2011, Canadian Division contributed 26% of the Company’s total premiums and deposits and, as at December 31, 2011, accounted for 25 per cent of the Company’s funds under management.

U.S. Insurance

The Company’s U.S. Insurance operation provides life and long-term care insurance products and services to select markets. John Hancock Life offers a portfolio of insurance products, including universal, variable, whole and term life insurance designed to provide estate, business and retirement solutions designed for high net worth and emerging markets. John Hancock Long-Term Care provides products offering support and financial resources. These products are designed for the middle income to affluent markets.

The Company distributes its life and long-term care insurance products through a multi-channel network, including brokerage general agents, producer groups, banks, wirehouses and broker-dealers, as well as John Hancock Financial Network (JHFN), a national network of independent career agencies consisted of approximately 1,700 financial representatives across the United States, offering insurance and wealth management solutions to individuals, families and businesses. In additionally, the International Group Program (IGP) offers international employee benefits management to multinational corporations and their affiliates through a global network of life insurance companies, called Network Partners. During 2011, U.S. Insurance contributed 11% of the Company’s total premiums and deposits and, as at December 31, 2011, accounted for 18% of the Company’s funds under management.

U.S. Wealth Management

U.S. Wealth Management offers a range of personal and family oriented wealth management products and services focused on individuals and business markets, as well as institutional oriented products for employee benefit plan funding solutions. U.S. Wealth Management has asset management based business lines, as well as fixed and variable annuity businesses. John Hancock Wealth Asset Management (Wealth Asset Management) consists of John Hancock Retirement Plan Services (Retirement Plan Services) and John Hancock Mutual Funds (Mutual Funds) operations are business lines focused on growth. Retirement Plan Services provides 401(k) plans to small and medium-sized businesses. Mutual Funds offer a range of mutual funds, privately managed accounts and 529 College Savings plans.

The Company’s two annuity businesses are John Hancock Variable Annuities (Variable Annuities) offers variable annuity products sold mainly to middle and upper-income individuals, and John Hancock Fixed Products (Fixed Products). Fixed Products provides fixed deferred annuities and fixed guaranteed income payout annuities to individuals, as well as a range of spread based products and fee based products to institutional clients. During 2011, U.S. Wealth Management contributed 42% of the Company’s total premiums and deposits and, as at December 31, 2011, accounted for 38% of the Company’s funds under management.