This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Manulife Financial's CEO Discusses Q4 2011 Results - Earnings Call Transcript

We have led our industry in repricing and redesigning products for the current interest rate environment which has us well positioned for sustainable growth. We're also pleased with the underlying growth of our businesses against our strategic priorities. In all 3 geographies, we generated sustainable growth of less risky, higher return new business. And as of December 31, 2011, we achieved a record $500 billion, that's $0.5 trillion in funds under management.

This growth was driven in large part by the investments that we've been making in distribution and in branding. We significantly expanded our equity market and interest rate hedging programs in the first half of the year and mitigated most of the equity market and interest rate risks as financial markets became increasingly volatile in the second half of 2011. In fact, our hedging programs offset nearly $3 billion of potential market impact.

We exceeded our 2014 interest rate reduction goal in 2011. Our sensitivity to a 100 basis point decline in interest rate, including the AFS bond offset is now $200 million. We're also ahead of our 2012 risk reduction goal for equity markets and now stand at 93% of our 2014 goal.

Throughout 2011, we maintained our strength. We bolstered our capital ratio for the divestiture of our life retrocession business, successful non-common equity capital issuances and a significant reinsurance transaction. The MCCSR of our operating company, the Manufacturers Life Insurance Company, was 216% at the end of 2011, and as of the third quarter 2011 continue to lead our peers. This ratio does not reflect the benefits of our equity hedging program, which reduces the downside risk to our capital position, but is not directly reflected in the capital ratio formula.

In summary, we're pleased with the progress we made in 2011 against our strategic plans. We achieved our 3-year product repositioning. Our hedging programs are having a positive impact in volatile markets. And our businesses are delivering underlying growth of less risky, higher return new business. Also noteworthy are the almost equal contributions of Asia, Canada and the United States to our operating results, a highly balanced portfolio.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,203.37 -85.26 -0.47%
S&P 500 2,107.78 -9.61 -0.45%
NASDAQ 4,979.9010 -28.1950 -0.56%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs