Manulife Finl Stock Price, News & Analysis

Manulife Financial Corporation has received approval from the Toronto Stock Exchange for a normal course issuer bid allowing the purchase of up to 97 million of its common shares, representing about 5% of its total shares. This program, effective from February 3, 2022, to February 2, 2023, aims to manage capital while enhancing shareholder value and addressing impacts from a recent reinsurance transaction. Manulife may conduct purchases via various trading platforms and has put in place an automatic share repurchase plan. Shares repurchased will be canceled.

On Feb 1, 2022, Venerable Holdings announced the successful close of a reinsurance transaction with Manulife Financial Corporation (MFC), covering approximately US$22 billion of variable annuity business. This deal, involving contracts primarily from John Hancock, boosts Venerable's assets under management to around $94 billion. Venerable's Chairman, David Marcinek, highlighted their proficiency in managing variable annuity liabilities and their focus on growth opportunities. The reinsured contracts include guaranteed minimum withdrawal benefits (GMWB) from policies issued between 2003 and 2012, with John Hancock retaining administration.

On February 1, 2022, Manulife announced the successful closure of the reinsurance transaction involving a significant portion of its legacy U.S. Variable Annuity block with Venerable Holdings, Inc. This strategic move, led by John Hancock Life Insurance, is designed to optimize Manulife's legacy portfolio, reduce risk, and enhance shareholder value. The transaction focuses on policies with Guaranteed Minimum Withdrawal Benefits riders and emphasizes a shift towards higher-potential business areas. John Hancock will continue to administer the policies for customer service continuity.

Manulife Financial Corporation announced plans to redeem all 19 million of its Non-cumulative Rate Reset Class 1 Shares Series 23 on March 19, 2022, for a total cash redemption of C$475 million. Shareholders will receive a final quarterly dividend of C$0.303125 per share on the same date. Following the redemption, shareholders will lose rights to dividends and other entitlements. This initiative is a strategic move to manage capital efficiently, reflecting Manulife's commitment to value for its shareholders.

Manulife Financial Corporation (MFC) announced plans to redeem all 10,000,000 Non-cumulative Rate Reset Class 1 Shares Series 7 on March 19, 2022, at a total cash price of C$250 million. The final quarterly dividend of C$0.2695 per share will also be paid on the same date to shareholders of record on February 23, 2022. Post-redemption, shareholders will no longer receive dividends or have any rights as holders, except for the redemption price.

On January 11, 2022, John Hancock Retirement released its eighth annual report highlighting the financial stress experienced by employees. Despite nearly 75% reporting financial stress, 66% of participants stated that access to financial wellness programs would increase their job retention. The report indicates a paradox; while employees feel financially confident, they also seek guidance for money management, with 89% emphasizing the importance of such programs. Key findings include that 71% have faced stress over the past year, and 68% are particularly concerned about healthcare costs in retirement.

John Hancock Investment Management launched the John Hancock Preferred Income ETF (ticker: JHPI) on December 15, 2021. This actively managed ETF aims to provide high current income by investing at least 80% of its net assets in preferred stocks and securities. The management team, led by Joseph H. Bozoyan and Bradley L. Lutz, oversees over $5 billion in income-generating strategies. The ETF responds to market demand for diversified income sources, offering potentially favorable yields with lower interest-rate sensitivity compared to traditional bonds.

Manulife Investment Management has announced the closing of its second infrastructure fund, Manulife Infrastructure Fund II, L.P. (MIF II), raising US$4.65 billion from 29 limited partners and its general account. This fund aims to invest in core and core-plus infrastructure assets, capitalizing on the firm's extensive experience in managing diverse portfolios. The successful fundraise exceeded the initial target and previous fund size, reflecting growing recognition of Manulife's private markets capabilities.

Manulife has appointed May Tan to its Board of Directors, effective December 1, 2021. Ms. Tan brings over 30 years of financial experience, having held senior roles at Standard Chartered Bank, including CEO of its Hong Kong division. Her expertise in corporate finance and capital markets in Asia is expected to support Manulife's growth strategies in the region. She will join the Management Resources & Compensation Committee and the Risk Committee.