|[December 03, 2013]
A.M. Best Assigns Debt Rating to The Manufacturers Life Insurance Company's New Subordinated Debt Offering
OLDWICK, N.J. --(Business Wire)--
A.M. Best Co. has assigned a debt rating of "a" to the recently
issued CAD 250 million, 2.926% aggregate principal fixed/floating
subordinated debentures due November 29, 2023 of The Manufacturers
Life Insurance Company (MLI) (domiciled in Toronto, Canada). The
outlook assigned is stable.
The proceeds from the offering will be utilized for general corporate
purposes including future refinancing requirements. MLI may redeem the
debentures on or after November 29, 2018. The debentures are fully and
unconditionally guaranteed on a subordinated basis by the holding
company, Manulife Financial Corporation (MFC). With the issuance
of these subordinated debentures, A.M. Best notes that MFC's existing
financial leverage remains temporarily elevated but is expected to
decline following debt maturities in 2014. Despite the new issuance,
MFC's financial leverage has been decreasing and remains wthin the
range that supports its current ratings.
MFC has reported increased International Financial Reporting Standards
earnings in the third quarter 2013 of CAD 1,001 million, due to strong
core earnings and strong investment related experience, which is
partially offset by charges due to changes in actuarial assumptions.
Mutual fund assets have grown as MFC focuses its growth on higher return
on equity, lower risk business. Despite the increased use of hedging to
mitigate earnings volatility, A.M. Best will continue to monitor the
large book of interest and equity market sensitive in-force business.
The methodology used in determining these ratings is Best's Credit
Rating Methodology, which provides a comprehensive explanation of A.M.
Best's rating process and contains the different rating criteria
employed in the rating process. Best's Credit Rating Methodology can be
found at www.ambest.com/ratings/methodology.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2013 by A.M. Best Company, Inc. ALL RIGHTS
[ Back To Technology News's Homepage ]