Completes Standard Life Transaction
C$ unless otherwise stated
Accelerates Manulife's global growth strategy for wealth and asset
Adds approximately 1.4 million new customers
Moves Manulife's Group Retirement business to #2 in Canada
Increases business and leadership presence in Quebec
TORONTO, Feb. 2, 2015 /CNW/ - Manulife Financial Corporation ("Manulife"
or "MFC") today announced that The Manufacturers Life Insurance Company
has successfully completed its previously announced acquisition of the
Canadian-based operations of Standard Life plc.
This transaction significantly builds capability to serve customers in
all of Canada, and elsewhere in the world, from Quebec. Examples of
this capability include Group Benefits, Group Retirement, several areas
of Asset Management, Investment Risk Oversight and the growing and
important field of Liability-Driven Investing. It also builds our
senior leadership presence in the province.
"Standard Life allows us to significantly increase our presence in
Quebec, and dramatically increases our scale in a number of highly
strategic lines of business," said Donald A. Guloien, President and
Chief Executive Officer, Manulife. "Standard Life, in combination with
the recently announced acquisition of New York Life's Retirement Plan
Services business in the United States, grows our global retirement
plan business by about $80 billion." 1
In Canada, this transaction is transformative to Manulife's Group
Retirement business. It almost doubles assets under administration
("AUA") and moves Manulife to #2 in the highly competitive group
retirement business in Canada based on AUA.2 The transaction also adds over $6 billion in assets under management
("AUM") to our mutual fund business in Canada.3
"A dedicated integration team is in place so that we can remain focused
on the business, serving our customers and managing the transition with
minimal disruption for customers, advisors and business partners," said
Marianne Harrison, Senior Executive Vice President and General Manager,
Canadian Division. "We welcome approximately 1.4 million new customers
and 2,000 very talented employees who serve these customers."
Charles Guay has been named Executive Vice President for Manulife's
Institutional Markets and will lead the Canadian Division's Group
Benefits, Group Savings and Affinity Markets business nationally.
Charles also becomes President and CEO, Manulife Quebec, and will be
responsible for developing and implementing a strategy to significantly
increase Manulife's presence, visibility and impact in Quebec. He also
becomes a member of Manulife's global Management Committee.
"This acquisition deepens our investment capabilities for our
customers," said Warren Thomson, Senior Executive Vice President and
Chief Investment Officer. "Our combined company can now provide our
customers with an even greater breadth of products and solutions - not
only in Canada but around the globe. This transaction also includes a
collaboration agreement which builds on our already established and
successful wealth and asset management partnership with Standard Life
Investments. We look forward to furthering this partnership to the
benefit of both companies."
Roger Renaud has been named President, Manulife Asset Management,
Canada. He will lead the development and implementation of Manulife's
asset management strategy and business in Canada, growing and expanding
this important market.
Manulife will commence building a new home for employees in Montreal in
partnership with Caisse de dépôt et placement du Québec. Maison
Manuvie will allow for future growth, and will be a new, world-class
addition to the Montreal skyline.
As a result of closing the acquisition, MFC's 105,647,334 outstanding
subscription receipts were, in accordance with their terms,
automatically exchanged on a one-for-one basis for MFC common shares.
In addition, pursuant to the terms of the subscription receipts, a
dividend equivalent payment of $0.155 per subscription receipt will be
paid to holders of subscription receipts, which is an amount equal to
the cash dividends declared on MFC common shares for which record dates
have occurred during the period from September 15, 2014 to January 29,
2015. The dividend equivalent amount will be paid on or about February
4, 2015. MFC expects that trading in the subscription receipts on the
Toronto Stock Exchange will be halted prior to the commencement of
trading on February 2, 2015 and that the subscription receipts will be
delisted as of the close of business on February 2, 2015. The
subscription receipt exchange increases the total number of outstanding
MFC common shares to approximately 1.9 billion.
Manulife is a leading Canada-based financial services group with
principal operations in Asia, Canada and the United States. We operate
as John Hancock in the U.S. and as Manulife in other parts of the
world. We provide strong, reliable, trustworthy and forward-thinking
solutions for our customers' significant financial decisions. Our
international network of employees, agents and distribution partners
offers financial protection and wealth management products and services
to millions of clients. We also provide asset management services to
institutional customers. Funds under management by Manulife and its
subsidiaries were approximately C$663 billion (US$591 billion) as at
September 30, 2014.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE,
and under '945' on the SEHK. Manulife can be found on the Internet at manulife.com
Note to users - Performance and Non-GAAP Measures
We use a number of non-GAAP financial measures to measure overall
performance and to assess each of our businesses. A financial measure
is considered a non-GAAP measure for Canadian securities law purposes
if it is presented other than in accordance with generally accepted
accounting principles used for Manulife's (the "Company's") audited
Non-GAAP measures include: Assets under Administration (AUA) and Assets under Management (AUM).
Non-GAAP financial measures are not defined terms under GAAP and,
therefore, are unlikely to be comparable to similar terms used by other
issuers. Therefore, they should not be considered in isolation or as a
substitute for any other financial information prepared in accordance
Assets under administration ("AUA") is a non-GAAP measure of the size of the Company's Canadian group
retirement business. It represents the asset base on which the Company
provides administrative services such recordkeeping, custodial and
customer reporting services.
Assets under management ("AUM") is a non-GAAP measure of the size of the Company's Canadian mutual fund
business. It represents the assets managed by the Company, on behalf
of mutual fund clients, on a discretionary basis for which the Company
earns investment management fees.
For further information regarding these subjects, see our 2013 Annual
Report and most recent interim report to shareholders.
1 Includes approximately US$50 billion of assets under administration
relating to the New York Life transaction, converted into Canadian
dollars at an exchange rate of $1.27 per US$1.00.
2 On a pro forma basis after giving effect to the transaction. Source:
Based on the most recently available "Pension Universe Report" from the
Fraser Group, data as of December 31, 2013, includes capital
accumulation plans only. Assets under administration (AUA) is a
non-GAAP measure. See "Note to users - Performance and Non-GAAP
3 On a pro forma basis after giving effect to the transaction. Source:
Investment Funds Institute of Canada, data as of December 31, 2014.
Assets under management (AUM) is a non-GAAP measure. See "Note to users
- Performance and Non-GAAP Measures" below.
SOURCE Manulife Financial Corporation
For further information:
Sean B. Pasternak