Manulife's A+ Ratings Affirmed by AM Best on October 26, 2024
- AM Best affirmed the Financial Strength Rating of A+ and Long-Term Issuer Credit Ratings of "aa-" for Manulife Financial Corporation's life/health insurance subsidiaries.
- The ratings highlight the company's strong balance sheet strength and stable earnings from diverse geographic business sectors.
- Overall, these evaluations signify confidence in Manulife's operational stability and risk management despite potential challenges from legacy business segments.
In October 2024, AM Best affirmed the Financial Strength Rating of Manulife Financial Corporation and its life/health insurance subsidiaries, indicating a stable outlook for future performance. The company’s subsidiaries hold a very strong balance sheet, demonstrated by robust risk-adjusted capital positions assessed through various financial metrics such as LICAT and BCAR. Manulife shows a history of stable earnings in its core segments, bolstered by its diverse business model across geographic markets in Asia, Canada, and the U.S. These strengths are tempered by potential earnings volatility from legacy business blocks, including long-term care and universal life policies with secondary guarantees. However, prudent management strategies such as loss prevention initiatives and conservative reserving practices help mitigate these risks. The assessments by AM Best reflect confidence in Manulife's enterprise risk management processes as well as its significant market presence and financial flexibility in navigating the challenges posed by fluctuating market conditions.