Basic Earnings to the 10.2 Billion Yen, Net Income to the 11.9 Billion Yen Mark Solvency Margin Ratio Increases to 1629.7%
Tokyo - Manulife Life Insurance Company (Head Office: Chofu-shi, Tokyo; Geoff Crickmay, President & CEO) (hereinafter called “Manulife Japan”) hereby announces its full-year results for fiscal 2006 (draft).
During fiscal 2006, strong in-force business based largely on an increase of in-force policies for the Company’s main strategic products (namely its universal life insurance products and individual variable annuity products), as well as continued rigorous financial management, helped to improve profitability. Basic Earnings, a key indicator of earnings in Manulife Japan’s core insurance business, increased 1.6 billion yen from the previous fiscal year’s 8.6 billion yen, to top the 10 billion yen mark with 10.2 billion yen. Net Income also increased, from the previous fiscal year’s 10.7 billion yen to 11.9 billion yen.
The Company’s solvency margin ratio was 1629.7% as of March 31, 2007, a significant increase from 1429.3% at the end of March 2006. The Company’s ability to maintain this high level indicates a solid financial base. On November 7, 2006, Standard & Poor’s (S&P) raised its financial strength rating of Manulife Japan to “AAA,” the highest level among S&P’s 21 rating categories.
In terms of sales, especially in regard to the sale of individual variable annuity products during the latter half of the fiscal year, a number of measures expected to lead to rapid progress in the next fiscal year and thereafter were implemented. These measures include the simultaneous release of new products through multiple sales channels, the release of new versions of popular existing products with enhanced features, and the further expansion of partnerships with major regional banks. In terms of financial results, due to the impact of the voluntary suspension of sales of some individual variable annuity products, new business sales indicated a decrease from the previous year. However, with the help of the aforementioned measures, the impact on earnings was limited. Due to an increase in the number of in-force universal life insurance policies and individual variable annuity policies, which are the Company’s main strategic products, the amount of the Company’s in-force insurance as of March 31, 2007 came to 5,566.7 billion yen, maintaining a level similar to the previous fiscal year, and annualized premiums on in-force policies rose 8.1% compared with the previous fiscal year to finish at 175.4 billion yen. An increase in sales of variable annuity products through the Company’s PlanRight Advisor (Manulife Japan’s dedicated sales force, hereinafter called “PA”) channel, the release of new corporate insurance products, and other factors helped Manulife Japan to maintain this solid performance.
During the latter half of fiscal 2006, with the goal of enabling strong progress going forward, the Company established an MGA Development Department, to create a third strategic channel to complement the Company’s existing PA channel and its affiliated financial institutions channel.
Geoff Crickmay, President & CEO, provided the following statement regarding the (draft) results of this period:
“In order to honor the long-term trust placed in us by our customers, Manulife Japan aims to ensure rigorous financial management. Our ability during this fiscal year to push basic earnings over the 10 billion yen mark and achieve a 1629.7% solvency margin ratio is the fruit of these efforts, and we are very proud of these achievements. We have also received a top “AAA” rating from S&P. With a strong management base and with our basic sales philosophy of “Customer First,” we will work to strengthen our claims and benefits payment management structure and enhance our sales channels in order to provide innovative products to meet customer needs.”
Fiscal Year 2006 Operating Highlights
Manulife Life Insurance Company (“Manulife Japan”), a member company of the Manulife Financial group, holds the highest level "AAA" credit rating from Standard & Poor’s, one of the world’s most reliable credit rating agencies (as of the end of April 2007).
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. Manulife Japan can be found on the Internet at www.manulife.co.jp.
- 30 -
For information related to this press release please contact:
Manulife Life Insurance Company