Manulife Financial Corporation reports strong revenues and earnings growth



    Return on shareholders' equity(1) of 18.9 per cent, up 230 basis points

    TSX/NYSE/PSE: MFC; SEHK: 0945

    TORONTO, Nov. 6 /CNW/ - Manulife Financial Corporation today reported
shareholders' net income of $1,070 million, an increase of 10 per cent over
the third quarter of last year. Fully diluted earnings per share were $0.70,
up 13 per cent from one year ago. As well, return on common shareholders'
equity(1) was 18.9 per cent, an increase of 230 basis points.
    Third quarter premiums and deposits rose to $16.8 billion, an increase of
10 per cent over last year due to continued strong sales and growth in
recurring premiums and deposits. On a constant currency basis, growth in
premiums and deposits would have been 16 per cent.
    "Our third quarter results reflect the strength and diversity of our
businesses and invested assets," said Dominic D'Alessandro, President and
Chief Executive Officer of Manulife Financial. "I was particularly pleased to
see our continued focus on product innovation and distribution excellence
reflected in exceptional sales across our Company. The value being created
bodes well for future earnings growth."
    Third quarter sales were very strong across the Company, with Individual
Insurance sales of $594 million, up 23 per cent over last year, and wealth
management sales of $10.8 billion, up 26 per cent. Record sales levels were
achieved in a number of businesses this quarter:
    
    -  John Hancock Variable Annuities sales of US$3.0 billion, up
       46 per cent
    -  Japan Variable Annuities sales of US$1.2 billion, up 330 per cent
    -  Other Asia Territories Individual Life sales of US$55 million,
       up 49 per cent
    -  Hong Kong Individual Wealth Management sales of US$379 million,
       up 235 per cent
    -  Hong Kong Group Pension sales of US$151 million, up 39 per cent
    -  Manulife Bank new loan volumes of $961 million, up 55 per cent
    

    "Continued growth of our in-force business and favourable investment
related performance contributed to the year over year growth in earnings,"
noted Peter Rubenovitch, Senior Executive Vice President and Chief Financial
Officer. "Earnings growth was partially offset by the negative impact of lower
interest rates and the strengthening of the Canadian dollar."
    Total funds under management as at September 30, 2007 were
$399.0 billion, an increase of five per cent over last year. Excluding the
negative impact of currency movements over the year, growth in total funds
under management would have been 14 per cent.

    
    -------------------
    (1) Return on common shareholders' equity is calculated excluding
        Accumulated Other Comprehensive Income on available-for-sale
        securities and cash flow hedges.


    OPERATING HIGHLIGHTS

    United States

      -  Sales of John Hancock Variable Annuities rose to US$3.0 billion in
         the third quarter, an increase of 46 per cent over last year and
         above the previous record set in the second quarter of this year.
         Strong sales contributed to the record net flows of US$1.5 billion.

      -  John Hancock Variable Annuities is poised to start selling at Edward
         Jones in early 2008. Edward Jones, which has a network of over
         10,000 financial advisors and in excess of 7 million clients, is a
         leading distributor of variable annuities in the United States.

      -  John Hancock Life continued to refresh its product portfolio and in
         the third quarter the business introduced two new survivorship
         variable universal life products, refreshed its flagship guaranteed
         universal life product and revamped its level-premium term life
         insurance portfolio. Continuous product innovation contributed to
         the business' strong sales, with record third quarter sales of
         US$197 million, up 17 per cent over the same quarter last year.

      -  John Hancock Long Term Care introduced a new guaranteed increase
         option to its Leading Edge long-term care insurance policy. This new
         option provides clients with increased flexibility and the
         opportunity to increase policy benefits to better suit changing
         needs.

    Canada

      -  The acquisition of Berkshire-TWC Financial Group Inc. was completed
         in the quarter. This added more than 700 Advisors and 237 branches
         from Berkshire's mutual fund and securities business to Manulife's
         existing operations, bringing the total sales force up to 1,500
         advisors and tripling assets under administration in that business
         to $19 billion.

      -  Manulife Mutual Funds expanded its fund offerings to include five
         new mandates and a new mutual fund class, providing investors with
         additional opportunities for diversification and access to
         top-ranked investment management. The new mutual fund class provides
         regular distributions to investors looking for a tax efficient means
         of generating income from their mutual fund investments.

      -  Group Benefits was awarded the contract with Canada Post to
         implement its Integrated Absence Solution product for their National
         Disability Management Program across Canada. This was the largest
         sale ever for Manulife's Group Benefits business and the largest in
         the benefits industry since 1995.

    Asia and Japan

      -  In Japan, variable annuity sales rose to US$1.2 billion, an increase
         of 330 per cent over last year and up 153 per cent over the previous
         quarter. The record sales were driven by the June 25th launch of an
         innovative new product which was designed to allow customers to
         lock-in investment gains.

      -  Other Asia Territories had a record sales quarter with individual
         insurance sales of US$55 million, up 49 per cent over the third
         quarter last year. New product introductions and expanded
         distribution reach contributed to the sales growth across almost all
         territories.

      -  In Taiwan, Manulife launched the country's first variable annuity
         product with a guaranteed withdrawal benefit that provides a regular
         stream of retirement income for at least 20 years or income for life
         from age 65, regardless of market performance.

      -  Manulife-Sinochem continued to expand its operations in China and in
         the third quarter received two additional licenses; bringing the
         total number of licenses up to 23.

    Corporate

      -  Manulife Financial repurchased 21.2 million shares in the third
         quarter, at a total cost of approximately $849 million.

      -  Manulife Financial's key insurance subsidiaries were upgraded from
         Aa2 to Aa1 by Moody's Investors Service. This makes Manulife
         Financial one of only two publicly traded life insurance companies
         in North America with such ratings.

      -  In a separate news release, the Company also announced today that
         the Board of Directors approved a quarterly shareholders' dividend
         of $0.24 per share on the common shares of the Company, an increase
         of $0.02 per share, payable on and after December 19, 2007 to
         shareholders of record at the close of business on November 19,
         2007.


    MANAGEMENT'S DISCUSSION AND ANALYSIS

    Financial Highlights
    (unaudited)
                                                        Quarterly Results
                                                    3Q07      2Q07      3Q06
                                               ------------------------------
    Shareholders' Net Income (C$ millions)         1,070     1,102       974
    Premiums & Deposits (C$ millions)             16,797    16,438    15,301
    Funds under Management (C$ billions)           399.0     410.2     380.9
    Capital (C$ billions)                           29.1      30.5      28.5
    

    Effective January 1, 2007, the Company adopted four new Canadian
accounting standards for Financial Instruments - Recognition and Measurement,
Hedges, Comprehensive Income and Accounting for Leveraged Leases. These
changes in accounting policies have not had a material impact on shareholders'
net income.

    Net Income
    ----------
    The Company's shareholders' net income for the third quarter of 2007 was
$1,070 million, up 10 per cent from $974 million reported a year earlier. The
increase in earnings was a result of higher fee income related to the growth
in funds under management in the wealth management businesses and the impact
of investment related gains. Favourable equity markets compared to a year ago,
gains on private equities as well as real estate investment performance more
than offset the negative impact of lower interest rates. The strengthened
Canadian dollar also reduced earnings by $56 million. Year-to-date
shareholders' net income was $3,158 million compared to $2,885 million in
2006.

    Diluted Earnings per Share and Return on Common Shareholders' Equity
    --------------------------------------------------------------------
    Third quarter reported diluted earnings per common share of $0.70 grew by
13 per cent from $0.62 in 2006. Management measures return on common
shareholders' equity excluding the components of Accumulated Other
Comprehensive Income on available-for-sale securities and cash flow hedges.
Return on common shareholders' equity was 18.9 per cent for the three months
ended September 30, 2007, an increase of 230 basis points over 16.6 per cent
for the three months ended September 30, 2006. (See page 10 for discussion of
non-GAAP measures).

    Premiums and Deposits
    ---------------------
    Premiums and deposits for the quarter were $16.8 billion, up 10 per cent
from $15.3 billion reported a year earlier. This increase reflects growth
across all of our divisions, including record sales for John Hancock's and
Japan's variable annuity products. On a constant currency basis, premiums and
deposits grew 16 per cent.

    Funds under Management
    ----------------------
    Funds under management grew by five per cent, or $18.1 billion, to
$399.0 billion as at September 30, 2007. The increase is primarily driven by
strong net policyholder cash flows and favourable equity market performance
over the past twelve months, partially offset by the $36 billion negative
impact of a strengthened Canadian dollar and $2.7 billion of scheduled
maturities of John Hancock Fixed institutional products.

    Capital
    -------
    Total capital was $29.1 billion as at September 30, 2007, up $0.6 billion
from $28.5 billion as at September 30, 2006. Capital increased by
$1,565 million due to the change in accounting standards for financial
instruments; net new debt capital issued of $610 million; and net income in
the past twelve months of $4,263 million. This was offset by shareholders'
dividends of $1,319 million; the repurchase of 55 million common shares for
$2,173 million; and charges of $2,454 million to Accumulated Other
Comprehensive Income primarily due to the $2.3 billion negative impact of the
strengthened Canadian dollar over the last twelve months.

    
    PERFORMANCE BY DIVISION

    U.S. Insurance

                                                        Quarterly Results
    Canadian dollars                                3Q07      2Q07      3Q06
                                               ------------------------------
    Shareholders' Net Income (millions)              138       179       169
    Premiums & Deposits (millions)                 1,605     1,585     1,614
    Funds under Management (billions)               56.2      58.4      57.7
                                               ------------------------------

                                                        Quarterly Results
    U.S. dollars                                    3Q07      2Q07      3Q06
                                               ------------------------------
    Shareholders' Net Income (millions)              132       163       151
    Premiums & Deposits (millions)                 1,536     1,444     1,439
    Funds under Management (billions)               56.4      54.9      51.7
                                               ------------------------------
    

    U.S. Insurance shareholders' net income for the third quarter of 2007 was
$138 million, down $31 million from $169 million reported a year earlier.
Favourable investment results driven by private equity and real estate
investment performance were more than offset by the impact of lower interest
rates and the stronger Canadian dollar. Mortality gains in John Hancock Life
were down compared to the strong gains of a year ago and claims experience in
John Hancock Long Term Care was unfavourable. Year-to-date shareholders' net
income was $459 million compared to $454 million in 2006.
    Premiums and deposits for the quarter were $1.6 billion consistent with
the amount reported in the third quarter of 2006. On a U.S. dollar basis,
premiums and deposits increased by seven percent due to higher sales and
growth in the in-force business in both John Hancock Life and John Hancock
Long Term Care.
    Funds under management declined by three per cent, or $1.5 billion, to
$56.2 billion as at September 30, 2007 due to the impact of the stronger
Canadian dollar. On a U.S. dollar basis, funds under management grew by nine
percent as a result of business growth and the favourable equity market
performance over the last twelve months.

    
    U.S. Wealth Management

                                                        Quarterly Results
    Canadian dollars                                3Q07      2Q07      3Q06
                                               ------------------------------
    Shareholders' Net Income (millions)              268       234       280
    Premiums & Deposits (millions)                 8,494     8,839     8,756
    Funds under Management (billions)              181.2     190.5     179.8
                                               ------------------------------

                                                        Quarterly Results
    U.S. dollars                                    3Q07      2Q07      3Q06
                                               ------------------------------
    Shareholders' Net Income (millions)              257       213       250
    Premiums & Deposits (millions)                 8,125     8,054     7,809
    Funds under Management (billions)              181.9     179.1     161.2
                                               ------------------------------
    

    U.S. Wealth Management shareholders' net income for the third quarter of
2007 was $268 million, down $12 million from $280 million reported a year
earlier. Earnings increased as a result of both higher fee income on higher
average assets in John Hancock Variable Annuities and John Hancock Retirement
Plan Services and the favourable impact of updating acquisition cost
amortization schedules in Variable Annuities. This increase was more than
offset by the non-recurrence of unusually strong favourable investment results
reported in 2006 in John Hancock Fixed and the negative impact of the
strengthened Canadian dollar. Year-to-date shareholders' net income was
$837 million compared to $836 million reported in 2006.
    Premiums and deposits for the quarter were $8.5 billion, down three per
cent from $8.8 billion reported in the third quarter of 2006. On a U.S. dollar
basis, premiums and deposits were up four per cent, led by growth in Variable
Annuities deposits on the strength of the Income Plus For Life rider launched
in Q2 2007. Excluding the U.S.$0.6 billion deposit related to the John Hancock
staff 401(k) pension plan in the prior year results, Retirement Plan Services
deposits increased due to higher recurring deposits from the growing block of
in-force participants. John Hancock Fixed premiums and deposits declined,
reflecting lower deferred annuity sales and the suspension of SignatureNotes
product sales.
    Funds under management grew by one per cent, or $1.4 billion, to
$181.2 billion as at September 30, 2007. On a U.S. dollar basis, funds under
management grew $20.7 billion or 13 per cent. This growth was the result of
continued strong net policyholder cash flows in the Variable Annuities,
Retirement Plan Services and John Hancock Mutual Funds businesses and the
cumulative effect of favourable equity market performance over the last twelve
months. These increases were partially offset by scheduled maturities
exceeding new sales over the last twelve months in the John Hancock Fixed
business.

    
    Canadian Division

                                                        Quarterly Results
    Canadian dollars                                3Q07      2Q07      3Q06
                                               ------------------------------
    Shareholders' Net Income (millions)              333       296       229
    Premiums & Deposits (millions)                 3,347     3,569     3,076
    Funds under Management (billions)               83.6      82.6      73.2
                                               ------------------------------
    

    Canadian Division's shareholders' net income for the third quarter of
2007 was $333 million, up $104 million from $229 million reported a year
earlier. The increase was driven by business growth, particularly in
Individual Wealth Management, as well as the positive impact of rising equity
markets over the past year on fee income and segregated fund guarantees. The
positive impact of real estate investment performance also contributed to the
earnings growth in the quarter. Year-to-date shareholders' net income was
$847 million compared to $734 million in 2006.
    Premiums and deposits for the quarter were $3.3 billion, up nine per cent
from $3.1 billion reported in the third quarter of 2006. Growth in segregated
fund deposits in Individual Wealth Management, and general fund premiums and
ASO premium equivalents in Group Benefits, including the impact of the sale to
Canada Post in the quarter, contributed to the increase.
    Funds under management grew by 14 per cent, or $10.4 billion, to
$83.6 billion as at September 30, 2007. Segregated fund assets contributed
more than half of the year-over-year growth, reflecting net positive client
cash flows in the wealth management businesses and rising equity markets over
the past year. In addition, Manulife Bank assets reflect the continued growth
in lending and deposit products.

    
    Asia and Japan Division

                                                        Quarterly Results
    Canadian dollars                                3Q07      2Q07      3Q06
                                               ------------------------------
    Shareholders' Net Income (millions)              227       242       182
    Premiums & Deposits (millions)                 3,102     2,182     1,611
    Funds under Management (billions)               41.6      39.2      33.5
                                               ------------------------------

                                                        Quarterly Results
    U.S. dollars                                    3Q07      2Q07      3Q06
                                               ------------------------------
    Shareholders' Net Income (millions)              216       220       161
    Premiums & Deposits (millions)                 2,965     1,989     1,438
    Funds under Management (billions)               41.8      36.9      30.0
                                               ------------------------------
    

    Asia and Japan Division's shareholders' net income for the third quarter
of 2007 was $227 million, up $45 million from $182 million reported a year
earlier. The increase in earnings was driven by the impact of rising equity
markets on investment income in Hong Kong and in the Other Asia Territories
and by increased fee income from the growth in funds under management across
the pension and wealth management businesses. New product launches and the
repricing of medical riders in Taiwan also contributed to the increase. In
Japan, the favourable impact of the repricing of medical riders was offset by
reduced investment income arising from turbulent equity markets. Increases
were partially offset by the impact of the strengthened Canadian dollar.
Year-to-date shareholders' net income was $683 million compared to $543
million in 2006.
    Premiums and deposits for the quarter were $3.1 billion, up 93 per cent
from $1.6 billion reported in the third quarter of 2006. The primary driver of
the increase was strong sales of the new variable annuity product launched in
Japan during June 2007. Growth in Hong Kong wealth management sales, mutual
fund sales in Indonesia, and sales of both our investment linked product and
new variable annuity product in Singapore also contributed to the increase.
This was partially offset by the unfavourable impact of the strengthened
Canadian dollar.
    Funds under management grew by 24 per cent, or $8.1 billion, to
$41.6 billion as at September 30, 2007.
    Growth was fuelled by the impact of rising equity markets and strong net
policyholder cash flows most notably from variable annuity sales in Japan with
the June 2007 launch of the most recent variable annuity product. These
increases were partially offset by the unfavourable impact of the strengthened
Canadian dollar.

    
    Reinsurance Division

                                                        Quarterly Results
    Canadian dollars                                3Q07      2Q07      3Q06
                                               ------------------------------
    Shareholders' Net Income (millions)               59        70        86
    Premiums (millions)                              249       262       244
                                               ------------------------------

                                                        Quarterly Results
    U.S. dollars                                    3Q07      2Q07      3Q06
                                               ------------------------------
    Shareholders' Net Income (millions)               58        63        76
    Premiums (millions)                              238       238       218
                                               ------------------------------
    

    Reinsurance Division's shareholders' net income for the third quarter of
2007 was $59 million, down $27 million from a year earlier. Contributing to
the decrease was unfavourable claims experience in both Life and Property and
Casualty Reinsurance, compared to a very favourable claims result in the
previous year, most notably from Life experience, as well as the impact of the
strengthened Canadian dollar. Strong investment results partially offset these
reductions. Year-to-date shareholders' net income was $198 million compared to
$226 million in 2006.
    Premiums for the quarter were $249 million, up two per cent from
$244 million reported in the third quarter of 2006. On a U.S. dollar basis,
premiums increased nine per cent over the third quarter of 2006. In-force
growth in the International Group Program and the Life business were partially
offset by lower business volumes in the Property and Casualty Reinsurance
business.

    
    Corporate and Other

                                                        Quarterly Results
    Canadian dollars                                3Q07      2Q07      3Q06
                                               ------------------------------
    Shareholders' Net Income (millions)               45        81        28
    Funds under Management (billions)               33.8      36.9      33.9
                                               ------------------------------
    

    Corporate and Other is comprised of the Investment Division's external
asset management business, earnings on excess capital, the transfer of credit
risk from operating divisions, changes in actuarial methods and assumptions
and other non-operating events. Also included in Corporate and Other is the
John Hancock Accident and Health operations, which consists primarily of
contracts in dispute. Funds under management include externally managed assets
and assets backing the Company's capital.
    Corporate and Other shareholders' net income for the third quarter of
2007 was $45 million, up $17 million from $28 million reported a year earlier.
The increase is primarily due to favourable claims experience in our John
Hancock Accident and Health operations and gains realized on our public equity
holdings. Changes in actuarial methods and assumptions, primarily model
refinements for the discontinued John Hancock Accident and Health operations,
resulted in a charge to earnings this quarter of $36 million compared to no
charge for the third quarter of 2006. Year-to-date shareholders' net income
was $134 million compared to $92 million in 2006.
    Funds under management are $33.8 billion at September 30, 2007,
approximately the same level as last year. The positive impact of equity
markets and positive net cash flows of external client managed assets were
offset by share buy backs and the negative impact of the strengthened Canadian
dollar during the past twelve months.

    Normal Course Issuer Bid
    ------------------------
    Subject to the final acceptance of its notice of intention by the Toronto
Stock Exchange, Manulife Financial Corporation intends to make a normal course
issuer bid permitting the purchase of up to 75 million common shares,
representing approximately 5.0 per cent of the Company's common shares. As at
November 2, 2007, the Company has 1,503 million common shares outstanding.
Purchases under the bid will be made through the facilities of the Toronto
Stock Exchange at market prices prevailing at the time of purchase. The bid
period will commence on November 9, 2007 and expire on November 8, 2008 or
such earlier date as the Company completes purchases pursuant to the notice.
Any common shares acquired by the Company will be cancelled.
    In addition, the Company may undertake repurchases of its common shares
outside of Canada in compliance with applicable local securities laws. Subject
to regulatory approval, the Company may also acquire common shares directly
from other holders by way of private agreement. The Company may also enter
into derivative-based programs in support of its repurchase activities,
including the writing of put options and forward purchase agreements. These
arrangements would allow the Company to better manage the cost of the
repurchase of its common shares. If the Company does undertake these
alternative arrangements and repurchases, the total number of common shares
repurchased, including under the normal course issuer bid, will not exceed
75 million common shares.
    The Company may from time to time enter into a pre-defined plan with a
registered investment dealer to allow for the repurchase of common shares at
times when the Company ordinarily would not be active in the market due to its
own internal trading blackout periods, insider trading rules or otherwise.
This plan will be adopted in accordance with applicable Canadian securities
laws.
    Under its current normal course issuer bid, which was initiated on
November 9, 2006, the Company has purchased a total of 53,287,600 common
shares at an average price of $39.773 per share.
    The Company intends to purchase common shares as part of its capital
management strategy, which is designed to maintain strong regulatory capital
ratios while balancing the objective of generating shareholder value.

    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. Non-GAAP measures include
return on common shareholders' equity, premiums and deposits and funds under
management. Non-GAAP financial measures are not defined terms under GAAP and,
therefore, are unlikely to be comparable to similar terms used by other
issuers.
    Return on equity is a profitability measure that presents the net income
available to common shareholders as a percentage of the capital deployed to
earn the income. The implementation of the new accounting standards for
financial instruments resulted in certain unrealized gains and losses, which
do not have an impact on reported income for the period, being reflected in a
new component of shareholders' equity. Accordingly, the Company calculates
return on equity using average common shareholders' equity excluding
accumulated other comprehensive income on available-for-sale securities and
cash flow hedges.

    About Manulife Financial
    ------------------------
    Manulife Financial is 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$399 billion
(US $398 billion) as at September 30, 2007.
    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.

    Attachments: Financial Highlights, Consolidated Statements of Operations,
Consolidated Balance Sheets, Divisional Information.

    Notes:

    Manulife Financial Corporation will host a Third Quarter Earnings Results
Conference Call at 2:00 p.m. ET on November 6, 2007. For local and
international locations, please call (416) 340-2216 and toll free in North
America please call (866) 898-9626. Please call in ten minutes before the call
starts. You will be required to provide your name and organization to the
operator. A playback of this call will be available by 6:00 p.m. ET on
November 6, 2007 until November 13, 2007 by calling (416) 695-5800 (passcode
No. 3213642).
    The conference call will also be webcast through Manulife Financial's
website at 2:00 p.m. ET on November 6, 2007. You may access the webcast at:
www.manulife.com/quarterlyreports. An archived version of the webcast will be
available later on the website at the same URL as above.
    The Third Quarter 2007 Financial Statements and Statistical Information
Package are also available on the Manulife website at:
www.manulife.com/quarterlyreports. Each of these documents may be downloaded
before the webcast begins.

    Caution Regarding Forward-Looking Statements
    --------------------------------------------
    This document contains forward-looking statements within the meaning of
the "safe harbour" provisions of Canadian provincial securities laws and the
U.S. Private Securities Litigation Reform Act of 1995. These forward-looking
statements relate to, among other things, our objectives, goals, strategies,
intentions, plans, beliefs, expectations and estimates, and can generally be
identified by the use of words such as "may", "will", "could", "should",
"would", "suspect", "outlook", "expect", "intend", "estimate", "anticipate",
"believe", "plan", "forecast", "objective" and "continue" (or the negative
thereof) and words and expressions of similar import, and include statements
concerning possible or assumed future results. Although we believe that the
expectations reflected in such forward-looking statements are reasonable, such
statements involve risks and uncertainties, and undue reliance should not be
placed on such statements. Certain material factors or assumptions are applied
in making forward-looking statements, and actual results may differ materially
from those expressed or implied in such statements. Important factors that
could cause actual results to differ materially from expectations include but
are not limited to: level of competition and consolidation, changes in laws
and regulations, general business and economic conditions, currency rates and
Company liquidity, accuracy of information received from counterparties and
the ability of counterparties to meet their obligations, accuracy of
accounting policies and actuarial methods used by the Company, ability to
maintain the Company's reputation, legal and regulatory proceedings, the
disruption of or changes to key elements of the Company's or to public
infrastructure systems, the ability to attract and retain key executives,
environmental concerns, the ability to complete acquisitions and execute
strategic plans, and the ability to adapt products and services to the
changing market. Additional information about material factors that could
cause actual result to differ materially from expectations and about material
factors or assumptions applied in making forward-looking statements may be
found in the body of this document as well as under "Risk Factors" in our most
recent Annual Information Form, under "Risk Management" and "Critical
Accounting and Actuarial Policies" in the Management's Discussion and Analysis
in our most recent Annual Report, and elsewhere in our filings with Canadian
and U.S. securities regulators. We do not undertake to update any
forward-looking statements.


    
    Financial Highlights
    (Canadian $ in millions unless otherwise stated and per share
     information, unaudited)

                                              As at and for the three months
                                                    ended September 30
                                                  2007       2006   % Change
    -------------------------------------------------------------------------

    Net income                               $   1,069  $     968         10
      Loss attributed to participating
       policyholders                                (1)        (6)         -
    -------------------------------------------------------------------------
    Net income attributed to shareholders    $   1,070  $     974         10
      Preferred share dividends                     (7)        (7)         -
    -------------------------------------------------------------------------
    Net income available to common
     shareholders                            $   1,063  $     967         10
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Premiums and deposits:
      Life and health insurance premiums     $   3,640  $   3,629          -
      Annuity and pension premiums               1,242      1,049         18
      Segregated fund deposits                   8,888      7,705         15
      Mutual fund deposits                       2,304      2,177          6
      ASO premium equivalents                      582        533          9
      Other fund deposits                          141        208        (32)
    -------------------------------------------------------------------------
    Total premiums and deposits              $  16,797  $  15,301         10
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Funds under management:
      General fund                           $ 159,028  $ 163,183         (3)
      Segregated funds                         174,301    153,863         13
      Mutual funds                              36,185     36,994         (2)
      Other funds                               29,506     26,830         10
    -------------------------------------------------------------------------
    Total funds under management             $ 399,020  $ 380,870          5
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Capitalization:
      Long-term debt(*)                      $   2,853  $   2,470         16
      Liabilities for preferred shares
       and capital instruments                   1,990      1,886          6
      Non-controlling interest in
       subsidiaries                                202        207         (2)

      Equity
        Participating policyholders' equity        152        134         13
        Shareholders' equity
          Preferred shares                         638        638          -
          Common shares                         14,004     14,211         (1)
          Contributed surplus                      133         95         40
          Retained earnings                     13,710     12,770          7
          Accumulated other comprehensive
           loss                                 (4,585)    (3,872)        18
    -------------------------------------------------------------------------
    Total capital                            $  29,097  $  28,539          2
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    (*) Includes $546 operational leverage

    Selected key performance measures:
      Basic earnings per common share        $    0.70  $    0.62
      Diluted earnings per common share      $    0.70  $    0.62
      Return on common shareholders'
       equity (annualized)(1)                    18.9%      16.6%
      Book value per common share            $   15.48  $   15.01
      Common shares outstanding
       (in millions)
        End of period                            1,502      1,546
        Weighted average - basic                 1,511      1,551
        Weighted average - diluted               1,525      1,566

    (1) Return on common shareholders' equity is net income available to
        common shareholders divided by average common shareholders' equity
        excluding accumulated other comprehensive income on AFS securities
        and cash flow hedges.



    Summary Consolidated Financial Statements

    Consolidated Statements of Operations
    (Canadian $ in millions except                      For the three months
     per share data, unaudited)                           ended September 30
                                                             2007       2006
    -------------------------------------------------------------------------
    Revenue
    Premium income                                      $   4,882  $   4,678
    Investment income
      Investment income                                     2,283      2,533
      Realized/ unrealized gains on invested
       assets supporting policy liabilities
       and consumer notes                                     834         60
    Other revenue                                           1,359      1,140
    -------------------------------------------------------------------------
    Total revenue                                       $   9,358  $   8,411
    -------------------------------------------------------------------------
    Policy benefits and expenses
    To policyholders and beneficiaries
      Death, disability and other claims                $   1,430  $   1,392
      Maturity and surrender benefits                       2,083      2,278
      Annuity payments                                        741        781
      Policyholder dividends and experience
       rating refunds                                         408        398
      Net transfers to segregated funds                       227         86
      Change in actuarial liabilities(1)                      565         12
    General expenses                                          828        787
    Investment expenses                                       237        198
    Commissions                                             1,009        825
    Interest expense                                          299        255
    Premium taxes                                              58         65
    Non-controlling interest in subsidiaries                    7          4
    -------------------------------------------------------------------------
    Total policy benefits and expenses                  $   7,892  $   7,081
    -------------------------------------------------------------------------
    Income before income taxes                          $   1,466  $   1,330
    Income taxes                                             (397)      (362)
    -------------------------------------------------------------------------
    Net income                                          $   1,069  $     968
      Loss attributed to participating policyholders           (1)        (6)
    -------------------------------------------------------------------------
    Net income attributed to shareholders               $   1,070  $     974
      Preferred share dividends                                (7)        (7)
    -------------------------------------------------------------------------
    Net income available to common shareholders         $   1,063  $     967
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Basic earnings per common share                     $    0.70  $    0.62
    Diluted earnings per common share                   $    0.70  $    0.62

    (1) Includes impact of net redemptions in John Hancock Fixed
        institutional products of $0.7 billion in Q3 2007 and $0.9 billion in
        Q3 2006.



    Consolidated Balance Sheets
    (Canadian $ in millions, unaudited)
                                                          As at September 30
    Assets                                                   2007       2006
    -------------------------------------------------------------------------
    Invested assets
    Cash and short-term securities                      $   9,775  $   7,850
    Securities
      Bonds                                                73,008     77,102
      Stocks                                               11,812     10,184
    Loans
      Mortgages                                            25,589     27,485
      Private placements                                   21,877     23,702
      Policy loans                                          5,770      6,076
      Bank loans                                            2,160      1,978
    Real estate                                             5,660      5,294
    Other investments                                       3,377      3,512
    -------------------------------------------------------------------------
    Total invested assets                               $ 159,028  $ 163,183
    -------------------------------------------------------------------------
    Other assets
    Accrued investment income                           $   1,567  $   1,682
    Outstanding premiums                                      608        648
    Goodwill                                                6,769      7,247
    Intangible assets                                       1,602      1,647
    Derivatives                                             2,833        236
    Miscellaneous                                           3,478      3,175
    -------------------------------------------------------------------------
    Total other assets                                  $  16,857  $  14,635
    -------------------------------------------------------------------------
    Total assets                                        $ 175,885  $ 177,818
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Segregated funds net assets                         $ 175,094  $ 154,606
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and equity
    -------------------------------------------------------------------------
    Policy liabilities                                  $ 123,856  $ 126,597
    Deferred realized net gains                               110      4,248
    Bank deposits                                           8,901      7,124
    Consumer notes                                          2,209      2,763
    Future income tax liability                             2,806      2,184
    Derivatives                                             2,523        425
    Other liabilities                                       6,383      5,938
    -------------------------------------------------------------------------
                                                        $ 146,788  $ 149,279
    Long-term debt                                          2,853      2,470
    Liabilities for preferred shares and
     capital instruments                                    1,990      1,886
    Non-controlling interest in subsidiaries                  202        207

    Equity
      Participating policyholders' equity                     152        134
      Shareholders' equity
        Preferred shares                                      638        638
        Common shares                                      14,004     14,211
        Contributed surplus                                   133         95
        Retained earnings                                  13,710     12,770
        Accumulated other comprehensive loss               (4,585)    (3,872)
    -------------------------------------------------------------------------
      Total equity                                      $  24,052  $  23,976
    -------------------------------------------------------------------------
    Total liabilities and equity                        $ 175,885  $ 177,818
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------
    Segregated funds net liabilities                    $ 175,094  $ 154,606
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    Notes to Summary Consolidated Financial Statements
    (Canadian $ in millions, unaudited)

    Note 1: Divisional Information

                                    For the quarter ended September 30, 2007
                                  -------------------------------------------
                                                U.S.
                                     U.S.      Wealth                 Asia
    Premiums and deposits         Insurance  Management  Canadian  and Japan
    -------------------------------------------------------------------------
    General fund premiums         $   1,294  $   1,076  $   1,522  $     741
    Segregated fund deposits            311      5,488      1,121      1,968
    Mutual fund deposits                  -      1,789        122        393
    ASO premium equivalents               -          -        582          -
    Other fund deposits                   -        141          -          -
    -------------------------------------------------------------------------
    Total                         $   1,605  $   8,494  $   3,347  $   3,102
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net income                    $     138  $     268  $     332  $     227
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Funds under management                     As at September 30, 2007
    -------------------------------------------------------------------------
    General fund                  $  44,528  $  36,509  $  49,360  $  16,398
    Segregated funds                 11,656    110,120     30,829     19,498
    Mutual funds                          -     30,857      3,386      1,942
    Other funds                           -      3,736          -      3,791
    -------------------------------------------------------------------------
    Total                         $  56,184  $ 181,222  $  83,575  $  41,629
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                             Corporate
                                                and
    Premiums and deposits         Reinsurance  Other      Total
    --------------------------------------------------------------
    General fund premiums         $     249  $       -  $   4,882
    Segregated fund deposits              -          -      8,888
    Mutual fund deposits                  -          -      2,304
    ASO premium equivalents               -          -        582
    Other fund deposits                   -          -        141
    --------------------------------------------------------------
    Total                         $     249  $       -  $  16,797
    --------------------------------------------------------------
    --------------------------------------------------------------

    Net income                    $      59  $      45  $   1,069
    --------------------------------------------------------------
    --------------------------------------------------------------

    Funds under management            As at September 30, 2007
    --------------------------------------------------------------
    General fund                  $   2,622  $   9,611  $ 159,028
    Segregated funds                      -      2,198    174,301
    Mutual funds                          -          -     36,185
    Other funds                           -     21,979     29,506
    --------------------------------------------------------------
    Total                         $   2,622  $  33,788  $ 399,020
    --------------------------------------------------------------
    --------------------------------------------------------------


                                    For the quarter ended September 30, 2006
                                  -------------------------------------------
                                                U.S.
                                     U.S.      Wealth                 Asia
    Premiums and deposits         Insurance  Management  Canadian  and Japan
    -------------------------------------------------------------------------
    General fund premiums         $   1,324  $     895  $   1,472  $     743
    Segregated fund deposits            290      5,715        921        779
    Mutual fund deposits                  -      1,938        150         89
    ASO premium equivalents               -          -        533          -
    Other fund deposits                   -        208          -          -
    -------------------------------------------------------------------------
    Total                         $   1,614  $   8,756  $   3,076  $   1,611
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Net income                    $     169  $     280  $     220  $     185
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Funds under management                     As at September 30, 2006
    -------------------------------------------------------------------------
    General fund                  $  46,156  $  44,216  $  44,683  $  15,284
    Segregated funds                 11,509     99,669     25,210     15,166
    Mutual funds                          -     32,398      3,293      1,303
    Other funds                           -      3,527          -      1,743
    -------------------------------------------------------------------------
    Total                         $  57,665  $ 179,810  $  73,186  $  33,496
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


                                             Corporate
                                                and
    Premiums and deposits         Reinsurance  Other      Total
    --------------------------------------------------------------
    General fund premiums         $     244  $       -  $   4,678
    Segregated fund deposits              -          -      7,705
    Mutual fund deposits                  -          -      2,177
    ASO premium equivalents               -          -        533
    Other fund deposits                   -          -        208
    --------------------------------------------------------------
    Total                         $     244  $       -  $  15,301
    --------------------------------------------------------------
    --------------------------------------------------------------

    Net income                    $      86  $      28  $     968
    --------------------------------------------------------------
    --------------------------------------------------------------

    Funds under management            As at September 30, 2006
    --------------------------------------------------------------
    General fund                  $   2,846  $   9,998  $ 163,183
    Segregated funds                      -      2,309    153,863
    Mutual funds                          -          -     36,994
    Other funds                           -     21,560     26,830
    --------------------------------------------------------------
    Total                         $   2,846  $  33,867  $ 380,870
    --------------------------------------------------------------
    --------------------------------------------------------------

    Note 2: Comparatives

    Certain comparative amounts have been reclassified to conform with the
    current period's presentation.
    





For further information:

For further information: Media inquiries: Patti Vernon, (416) 852-8248,
patti_vernon@manulife.com; Investor Relations: Patricia Kelly, 1-800-795-9767,
investor_relations@manulife.com


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