•  Submitted by 01/07/10 , Click: , Source: insurance news net

    With the close of the year, John Hancock Financial Services announced the completion of a reorganization that reduced its primary life insurers from five to three and also shuffled some other components of the company.

    John Hancock Life Insurance Co. (U.S.A.) has legally absorbed John Hancock Life Insurance Co. and John Hancock Variable Life Insurance Co. The resulting insurer -- John Hancock's flagship -- reports about $200 billion in assets, the company said.

    Also at the end of 2009, multiple holding companies within John Hancock's Canadian parent company, Manulife Financial Corp., were merged. Included in those realignments, John Hancock Financial Services Inc. merged with The Manufacturers Investment Corp.

    "We expect to establish a more capital and tax efficient structure, simplify our financial reporting, and achieve other synergistic benefits," said company spokeswoman Leslie Uyeda. "In addition, we think that by combining the three entities into one, we are better positioned to continue supporting the promises we make to our customers."

    Boston-based John Hancock conducts U.S. business for Manulife, which operates in 22 countries and territories. The other two primary John Hancock insurers continuing after the realignment include John Hancock Life Insurance Company of New York and John Hancock Life & Health Insurance Co. According to BestLink, John Hancock's insurance business is focused on selling life and long-term care products and services to higher net worth and emerging affluent markets.

    In November, Manulife Financial Corp. posted a third-quarter net loss, driven by lower corporate bond rates and after increasing reserves on segregated fund guarantee products, including variable annuities. The net loss amounted to C$172 million (US$161.6 million), compared with net income of C$510 million in the previous year's third quarter (BestWire, Nov. 10, 2009). Weeks later, Manulife (TSX/NYSE/PSE: MFC) completed its previously announced offering of its common stock, which raised just more than C$2.5 billion (BestWire, Dec. 1, 2009).

    The John Hancock changes aren't anticipated to affect employment levels or office locations, the company said. Customers also shouldn't notice the change. "There was no impact on the terms or conditions of customer policies, contracts or certificates," Uyeda said. "This is a technical consolidation of legal entities. In the marketplace, most know us by 'John Hancock,' and the name of the surviving company is John Hancock Life Insurance Company (U.S.A.)."

    John Hancock insurers have current Best's Financial Strength Rates of A+ (Superior).

    Manulife stock was selling at $19.10 in afternoon trading on Jan. 4, which was 4.14% above the previous session's close.

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