QUOTE AND NEWS
Mondo Visione  Jun 16  Comment 
In a settlement agreement with the Executive Director of the British Columbia Securities Commission (BCSC), Peter R. Kellogg and IAT Reinsurance Company Ltd. (IAT) admitted that they failed to file required insider reports with the BCSC...
Finance Asia  Jun 16  Comment 
Canadian financial services group hopes to allay concerns about the impact of rising US interest rates on the S-Reit sector.
Benzinga  Jun 15  Comment 
MFC Industrial Ltd. (NYSE: MIL) announces it has entered into an agreement to acquire a licenced bank in Western Europe. The purchase price under the transaction is subject to finalization on completion and will be based on, among other things,...
newratings.com  May 26  Comment 
OTTAWA (dpa-AFX) - John Hancock, a division of Manulife (MFC), said it has acquired Guide Financial, Inc., a San Francisco-based software provider for financial advisors. Terms were not disclosed. Guide Financial builds software that enables...
The Economic Times  May 26  Comment 
The possibility of a US Fed rate hike has been almost priced in by the markets. The transient volatility may occur as and when the rate hike happens.
Market Intelligence Center  May 12  Comment 
After Monday’s trading in Manulife Financial Corp (MFC) the option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center uncovered a trade that offers a 5.26% return, or 8.73% annualized (for...




 

Manulife Financial Corporation (NYSE: MFC) is a broad-based financial services firm headquartered in Toronto, Canada. The company provides a wide range of financial products and services, including life insurance, group life and health insurance, pension products, annuities, and mutual funds to individual and group customers in the US, Canada, Asia, and Japan. The company operates as Manulife Financial in Canada and Asia, and primarily through John Hancock (which merged with Manulife in April 2004) in the United States. As an insurance provider, MFC will seek to profit from increasing insurance demand due to the aging "baby boomer" population. In addition, the firm's large portfolio of assets make it at risk to fluctuating interest rates.

Business Overview

In the past fiscal year, Manulife incurred declining revenue and a loss in net income.[1] For the current fiscal year, Manulife's presence in Japan may affect the firm's annual net income, as the March tsunami has caused a spike in insurance claims.[2]

Trends and Forces

Aging US Population Causes Shift in Insurance Demand

The "baby boomer" generation is heading towards retirement, which is expected to create robust demand for various insurance and wealth accumulation products. Increased longevity means that that this group will need to generate enough wealth to last decades into retirement. As a top insurance company with strong brand recognition and a diversified portfolio of products, MFC is very well positioned to take advantage of this demographic shift.

Changing Interest Rates cause Risk in MFC's Portfolio.

Interest rates will affect any firm involved in any type of investment or firm that issues corporate debt or equity. Changes in the interest rate will invariably change the fundamental values of both equity and debt, since the fundamental value of debt is determined by the time weighted average of payments discounted by current short or long interest rates, and the fundamental value of equity is determined by the value of a firm today along with any projects in the future discounted by some factor over the risk free interest rate. Manulife's large assets makes it particularly effected by the interest rate.

Competition

References

  1. MFC 2010 Annual Report
  2. Seeking Alpha, "Tsunami Raises Alarms at Manulife," 03/15/2011
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