Waterloo - The Manufacturers Life Insurance Company and Manulife Canada Ltd. announced today they will distribute an estimated $233 million to participating Canadian policy owners. This is a 5.6 per cent increase above the amount distributed last year.
Policy owners of participating policies understand that dividends are not guaranteed and actual dividends depend on investment performance and other factors, such as mortality, length of time policies remain in effect (persistency) and expenses.
The investment environment continues to be a challenge, with interest rates remaining low compared to longer-term historic levels. New investments receive this lower interest rate, which reduces the overall participating investment portfolio yield. Consequently, to maintain the integrity of the participating account into the future, Manulife will reduce the Canadian policy owner dividend scale for some policies effective September 1, 2007.
“While it is necessary to reflect the declining returns in the dividend scales, I am pleased to advise policy owners that the dividend scale reduction is modest – in the range of 0 to 0.50 per cent for most policies,” said Michael Doughty, Manulife Financial’s Executive Vice President, Individual Insurance.
About Manulife Financial
Manulife Financial is a leading Canadian-based financial services group serving millions of customers in 19 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$426 billion (US$370 billion) as at March 31, 2007.
Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘0945’ on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.
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