FOR IMMEDIATE RELEASE July 24, 2003	TSX/NYSE/PSE: MFC; SEHK: 0945
	Printer Friendly Version

• As part of its commitment to providing its clients with access to best-of-class investment platforms and asset allocation strategies, Manulife USA enhanced the investment options available in its variable annuity, variable life insurance, and 401(k) pension products. Manulife USA provides an investment platform with the potential to offer superior risk-adjusted returns and broad diversification across asset classes, investment styles, and asset managers.
• Manulife Japan launched ManuMed, a new medical insurance product that provides clients with flexible protection against a number of illnesses. In addition to full medical protection, ManuMed provides a flexible savings feature that allows policyholders to use the product as a universal life type insurance. The Japanese medical insurance market has grown rapidly in recent years and Manulife Japan intends to leverage its global expertise in universal life insurance products to provide advantages to Japanese consumers.
• Manulife Bank now offers its innovative Manulife One to consumers with high-ratio mortgages, those with less than 25 per cent paid against the value of the home. Manulife One, a unique product introduced in late 1999, is a home equity line of credit that combines a homeowner’s chequing and savings account with their mortgage.

• The reorganization of the Japanese sales infrastructure was launched, with restructuring of the branch and sales offices to improve the efficiency and speed of operations and provide stronger sales support to agents. Recruiting activities have intensified, with more than 300 agents joining Manulife Japan during the quarter. As at June 30, 2003, Manulife Japan had 3,326 agents, a four per cent increase from the previous quarter end.
• Manulife Vietnam signed a bancassurance agreement with Dong A (East Asia) Bank, one of the largest banks in Vietnam, under which Manulife’s insurance products will be sold through the bank’s extensive branch network. Manulife Vietnam was the first foreign life insurer established in the country, commencing operations in 1999, and the first to declare a profit.
• Manulife Japan continued to expand and diversify distribution arrangements for marketing of the ManuSolution variable annuity product, signing agreements with three additional banks during the quarter. Sales of variable annuities through non-traditional distribution channels represented 84 per cent of total variable annuity sales in the second quarter, 2003.

• Canadian Pension Operations launched an electronic enrolment service to complement its already strong Internet support services. This new electronic capability provides members with easy-to-use online tools to learn about and easily enroll in their group savings plan, while plan administrators have several self-service options to help them effortlessly track new enrolments.
• Manulife Hong Kong received double recognition by winning in the “Insurance Company” and “MPF Service” categories in Next Magazine’s 2003 Top Service Award. The Company also won both awards last year, underscoring its success in continuously providing high quality and attentive service to its customers.

• Canadian Group Benefits was awarded several significant group life and health benefit contracts, including arrangements for employees of Canadian Pacific Railway, Noranda/Falconbridge, IBM and ING Canada. Manulife Financial ranked first in sales in the Canadian group benefits market, as measured by annualized premiums and premium equivalents, with a 19.2 per cent market share, in the first quarter 2003 LIMRA survey (the most recently available industry data).
• During the quarter, Manulife Financial marked the 100th anniversary of its first life insurance policy sold in the United States. Manulife first opened its doors to the U.S. market with a small life insurance field office in Detroit, Michigan. Since that time, Manulife has become a market leader in high net worth life insurance, variable annuities and small case 401(k) pension plan products.

• Manulife Financial Corporation issued 14 million, 4.10% non-cumulative preferred shares, for an aggregate amount of $350 million. This issue was priced at a very attractive level and was very well received by investors, reflecting the high credit quality of the Company. The proceeds of the offering will be used for general corporate purposes.

• U.S. Division's 2003 second quarter net income of $111 million was consistent with net income reported in the second quarter of 2002. Year-to-date net income was $218 million compared to $229 million in 2002. Growth in U.S. Division earnings was unfavourably impacted by the weakened U.S. dollar. On a U.S. dollar basis, second quarter earnings increased by 11 per cent over the second quarter of 2002, reflecting business growth combined with continued tight management of expenses, and improved equity markets. The growth in earnings was mitigated by mortality experience, which was modestly unfavourable in the current quarter as compared to the very favourable experience in the second quarter of 2002, and by increased new business strain from strong variable annuity sales growth.

• Premiums and deposits for the quarter were $4.2 billion compared to $4.5 billion reported in the second quarter of 2002. On a U.S. dollar basis, premiums and deposits increased by four per cent primarily due to strong growth in variable annuity sales as a result of improved investor confidence and the Scudder distribution arrangement. Universal life insurance sales were very strong, while premiums and deposits from 401(k) pensions were unchanged as the increase from in force recurring deposits was offset by lower new business sales.

• As at June 30, 2003, funds under management of $72.1 billion were three per cent or $2.0 billion higher than a year ago. Despite the impact of weak equity markets over the past 12 months, on a U.S. dollar basis, strong net policyholder cash flows drove a 15 per cent increase in funds under management.

• Canadian Division shareholders’ net income increased by 29 per cent to $125 million from the $97 million in the second quarter of 2002. Year-to-date shareholders’ earnings of $219 million were up 15 per cent over the first six months of 2002. This increase was primarily driven by favourable claims experience, and by the impact of improving equity markets, particularly on the Division’s wealth management businesses. If reserves had been released as a result of the impact of favourable equity markets on segregated fund guarantees, Canadian Division’s shareholders’ net income for the quarter would have been higher by $17 million after tax.

• Premiums and deposits for the quarter were $1.6 billion, up eight per cent over the $1.5 billion from the same quarter last year. This growth was driven by a 35 per cent increase in Group Pension premiums and deposits and a 14 per cent increase in Individual Wealth Management sales (excluding money market mutual funds), primarily of guaranteed and fixed-rate products.

• Funds under management as at June 30, 2003 were $36.9 billion, an increase of $2.6 billion over the same time last year. This increase reflects positive net segregated and mutual fund cash flows over the past 12 months, good growth in both the wealth management and insurance businesses, and the impact of improving equity values.

• Asian Division shareholders’ net income increased by 21 per cent to $73 million in the second quarter of 2003 from $60 million in 2002. Year-to-date shareholders’ net income was $131 million, an increase of 16 per cent over 2002. On a constant dollar basis, this quarter’s shareholders’ net income increased by 35 per cent. The increase for the quarter reflected business growth across the Division, particularly in the Hong Kong, Indonesia and Philippines operations, despite the unfavourable impact of SARS.

• Total premiums and deposits were $781 million, slightly less than $795 million in 2002. On a constant dollar basis, premiums and deposits increased by eight per cent despite the impact of SARS on the region. This increase reflected growth in Hong Kong Individual Insurance premiums and sales of unit-linked products in Taiwan and Singapore.

• Funds under management increased by 24 per cent to $11.2 billion as at June 30, 2003 from $9.1 billion in 2002. This increase was due to business growth across the Division, particularly in Hong Kong Individual Insurance; Mandatory Provident Fund deposits in Hong Kong; an increase in institutional funds managed by Hong Kong Manulife Assets Management; and mutual fund deposits in Indonesia over the past 12 months; partially offset by the negative impact of a strengthened Canadian dollar.

• Japan Division's net income was $25 million in the second quarter of 2003, down from $28 million in the second quarter of 2002. Year-to-date earnings were $50 million compared to $58 million in 2002. The impact of improved equity markets on the quarter’s earnings was more than offset by the effect of continuing overall weak economic conditions in Japan, which depressed sales of universal life and traditional insurance products.

• Premiums and deposits increased by 30 per cent in the second quarter to $513 million compared to the same quarter of 2002. This increase reflected higher sales of variable annuity products generated through the new bank distribution channel and commencing April 1, 2003, through Nikko Cordial Securities, one of the largest distributors of variable annuities in Japan.

• Funds under management decreased by $2.5 billion to $11.1 billion as at June 30, 2003 compared to $13.6 billion as at June 30, 2002. Over the past 12 months, increases from premiums and deposits were more than offset by the impact of a weakened Japanese yen and benefit payments to policyholders.

• Reinsurance Division reported net income of $51 million in the second quarter of 2003, an increase of 27 per cent over the $40 million reported in the second quarter of 2002. Year-to-date net income increased to $108 million from $90 million in 2002. The quarter’s increased earnings reflected improved equity market performance and favourable claims experience in the Life Retrocession business. If reserves had been released as a result of the impact of favourable equity markets on segregated fund guarantees, Reinsurance Division’s shareholders’ net income for the quarter would have been higher by $9 million after tax.

• Premiums of $177 million were $82 million or 32 per cent lower than in the second quarter of 2002. The reduction was driven by the timing of client-reported premiums in the Property and Casualty Reinsurance line in 2002.

• General fund assets decreased by seven per cent to $3.7 billion as at June 30, 2003 from $4.0 billion as at June 30, 2002 as business growth was more than offset by the impact of a weakened U.S. dollar.