Manulife Financial Corporation's (Manulife) 1Q 09 top-line exceeded our expectations due to higherthan- expected premium income and investment income. However, the company reported higher-thanexpected net losses during the quarter as total policy benefits and expenses exceeded expectations. Considering strong premium growth and better-than-expected net investment income we are likely to revise our estimates and target…

Contraction in the economies from which the company derives most of its premiums (Canada, the US and the UK), coupled with weakness in global financial markets, are expected to continue to impact the company’s performance over the near to medium term. On 24 February 2009, Manulife’s rating was downgraded to AA- from AAA by S&P;, based on the impact of volatile equity markets on the company’s performance. In addition, the credit and financial…

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Manulife Financial Corporation’s (Manulife) common stock price has declined significantly since our last update report, reflecting volatility and broad-based weakness in global financial markets and its impact on insurance stocks. In the last couple of trading sessions the decline has been particularly sharp, reflecting slump in equity indices. However, we continue to believe that Manulife is sufficiently well-diversified…