Up 28% over previous record in 2005
Boston – John Hancock Financial Services said today that full year sales of variable annuities in the bank channel reached a record $1.28 billion in 2006, up from $1.0 billion in 2005, itself a record year. This full year increase of 28% marks the third consecutive year John Hancock has achieved record bank sales of variable annuities while operating in a very dynamic and competitive marketplace.
John Hancock’s 2006 bank sales volume in fact made the company the 5th largest seller of variable annuities through banks in the industry, according to VARDS.
“We are very proud of everyone in our talented organization who worked so hard to attain such exceptional results,” said Fred Nicholas, President, John Hancock Bank Annuities Channel. “Our seasoned wholesalers and veteran management team delivered in 2006, while providing strong momentum for continued sales success in 2007. While bank sales currently account for about 12 percent of our overall variable annuity sales, our goal is to bring that figure to 20 percent in the next two years. The bank channel is likely to become the biggest driver of new business growth for us over the near term, so adding new partners is a key priority for our organization.”
Hugh McHaffie, President of John Hancock Wealth Management, added: “These outstanding results reflect our ongoing commitment to focus the expertise of our company on meeting the retirement income needs of our customers, and of our bank partners who serve them. The strength of the John Hancock brand, paired with our consistent and focused marketing story, and our AAA financial strength rating from Standard & Poor’s, are all strong positives for our bank business going forward.”
In the second half of 2006, John Hancock added two new bank partners to its variable annuity distribution network, New York-based JP Morgan Chase and Banco Popular, headquartered in San Juan, Puerto Rico, bringing the total of John Hancock’s relationships in the bank channel to 82. Earlier in the year, John Hancock announced partnerships with four new banks: Wachovia, Commerce Bank, Citizens Bank, and AmSouth, which recently merged with Regions Financial.
Key drivers of bank sales included the success of John Hancock variable annuity’s optional Principal Plus for Life (PPFL) rider, which provides retirees with guaranteed income for life that can increase with favorable investment performance. John Hancock backs the product with specialized sales support and service delivered by a team of bank wholesalers, who focus exclusively on John Hancock’s full suite of annuity products. The guarantees are backed by the claims-paying ability of the issuer. Optional benefits can only be elected at issue and are irrevocable. Additional fees, restrictions and limitations apply. See the prospectus for full details.
About Manulife Financial and John Hancock
John Hancock is a unit of Manulife Financial Corporation, 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$414 billion (US$355 billion) as of December 31, 2006.
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.
The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers a broad range of financial products and services, including life insurance, fixed and variable annuities, mutual funds, 401(k) plans, long term care insurance, college savings, and other forms of business insurance.
Contact your financial consultant or visit www.jhannuities.com for more information, including product and fund prospectuses that contain complete details on investment objectives, risks, fees, charges, and expenses as well as other information about the investment company, which should be carefully considered. Please read the prospectuses carefully prior to investing. The prospectuses contain this and other information on the product and the underlying portfolios.
Venture Annuities and the optional riders are not available in all states; product features may vary, subject to state regulation. Variable annuities are not FDIC insured, are long-term contracts designed for retirement purposes, and are subject to investment risk, including the possible loss of principal. Withdrawal charges apply to withdrawals taken in excess of the free withdrawal amount during the surrender charge period, excluding Venture Vision. All withdrawals reduce the death benefit and optional benefits. In addition, withdrawals of taxable amounts will be subject to ordinary income tax and, if made prior to age 59½, a 10% IRS penalty tax may apply. Past performance is no guarantee of future results.
Venture Annuities are issued and administered by John Hancock Life Insurance Company (U.S.A.), a Bloomfield Hills, MI, company with its annuity service office in Boston, MA. Venture Combination Fixed and Variable Annuities are distributed by John Hancock Distributors LLC, member NASD.
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