Manulife Finl Stock Price, News & Analysis

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.

AM Best has reaffirmed the Credit Ratings of Manulife Financial Corporation (MFC) following its agreement to reinsure over 75% of its legacy U.S. variable annuity block to Venerable Holdings Inc. The reinsurance, closing in Q1 2022, aligns with MFC's strategy to de-risk its liability profile and is expected to release approximately $2.0 billion in capital and improve net income by $750 million. The deal significantly reduces MFC's U.S. VA net amount-at-risk and market sensitivity.

Manulife Investment Management released its third annual sustainable and responsible investing report, highlighting significant progress in ESG integration, active stewardship, and global collaboration on sustainability issues. The firm's sustainability team expanded from 16 to 25 professionals. Notably, it enhanced its proxy voting practices and was recognized in the 2020 PRI Leaders' Group for climate reporting. As of September 30, 2021, assets under management totaled CAD 1.1 trillion (USD 835 billion). The firm continues to focus on delivering positive environmental and societal impacts while meeting evolving client needs.

On November 15, 2021, Venerable Holdings announced a reinsurance agreement with Manulife Financial Corporation (NYSE: MFC) to reinsure approximately US$22 billion of variable annuity business from John Hancock. The agreement primarily involves contracts with guaranteed minimum withdrawal benefits (GMWB) issued between 2003 and 2012. This transaction is expected to increase Venerable's assets under risk management from US$71 billion to US$94 billion on a pro forma basis as of March 31, 2021, and is projected to close in Q1 2022, pending customary conditions.

Manulife announced an agreement with Venerable Holdings to reinsure over 75% of its U.S. Variable Annuity block, unlocking C$2.0 billion in capital and realizing a one-time after-tax gain of C$750 million. The transaction will decrease annual earnings by approximately C$200 million in 2022 but is anticipated to enhance shareholder value through a significant share buyback. This move reduces equity sensitivities by more than 75% and aims for core EPS growth of 10% to 12% in the medium term. The deal is set to close in Q1 2022.