Manulife Statement on Favourable Outcome in Mosten Litigation

Rhea-AI Summary

Manulife Financial Corporation has received a favorable ruling from the Saskatchewan Court of Appeal regarding the Mosten Investment LP case. The court confirmed that unlimited deposits into universal life insurance contracts are prohibited, affirming that deposits must relate to premium payments. Manulife expressed confidence that the decision would not materially impact its business, reinforcing its operational stability.

Positive

• Favorable court ruling prohibiting unlimited deposits into universal life insurance contracts, clarifying regulatory compliance.

Negative

• None.

C$ unless otherwise stated                                            TSX/NYSE/PSE: MFC     SEHK: 945

TORONTO, March 10, 2021 /PRNewswire/ - Manulife Financial Corporation ("Manulife" or "the Company") today provided the following statement in connection with the favourable Saskatchewan Court of Appeal ruling in the Mosten Investment LP ("Mosten") case:

We are pleased with the Court of Appeal's ruling prohibiting unlimited deposits into universal life insurance contracts in Saskatchewan. The Court affirmed that the Government of Saskatchewan regulation applies to all universal life policies, including the policies that are at issue in this litigation. The decision confirms that policyholders cannot make unlimited deposits into universal life insurance contracts and  makes clear deposits must relate to amounts required to pay the life insurance premium.

As we have previously stated, we were always confident we would ultimately prevail in this matter and that it would not have any material impact on the Company's business.

About Manulife
Manulife Financial Corporation is a leading international financial services group that helps people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we operate as Manulife across our offices in Canada, Asia, and Europe, and primarily as John Hancock in the United States. We provide financial advice, insurance, and wealth and asset management solutions for individuals, groups and institutions. At the end of 2020, we had more than 37,000 employees, over 118,000 agents, and thousands of distribution partners, serving over 30 million customers. As of December 31, 2020, we had $1.3 trillion (US$1.0 trillion) in assets under management and administration, and in the previous 12 months we made $31.6 billion in payments to our customers. Our principal operations are in Asia, Canada and the United States where we have served customers for more than 155 years. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges and under '945' in Hong Kong.

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SOURCE Manulife Financial Corporation

FAQ

What was the recent court ruling regarding Manulife and universal life insurance contracts?

The Saskatchewan Court of Appeal ruled that unlimited deposits into universal life insurance contracts are prohibited.

How does the court ruling impact Manulife's business?

Manulife stated that the ruling will not have any material impact on its business.

What is the significance of the Mosten Investment LP case for Manulife?

The case clarifies that deposits into universal life insurance must be related to premium payments, reinforcing regulatory compliance.

When was the Saskatchewan Court of Appeal ruling made?

The ruling was made on March 10, 2021.