John Hancock Retirement Plan Services Now Top 15 Provider in Mid Plan Market
TORONTO, April 14, 2015 /PRNewswire/ -- Manulife Financial Corporation ("Manulife") today announced that its U.S. Division (John Hancock Financial), has successfully completed its previously announced acquisition of New York Life's Retirement Plan Services business. The business will be combined with John Hancock Retirement Plan Services (JHRPS), significantly increasing its retirement plan assets under administration.
"Manulife is a major player in the pensions business in Canada, the United States, Hong Kong and Indonesia. The completion of this transaction, in addition to our successful acquisition of Standard Life's Canadian operations, significantly increases our retirement plan services business overall," said Donald Guloien, President and Chief Executive Officer of Manulife. "These transactions accelerate our strategy to grow our wealth and asset management business around the world."
With the closure of the transaction, JHRPS's retirement plan assets under administration have increased by approximately 60 percent to US$135 billion and the business now serves 55,000 retirement plans and 2.5 million plan participants.
"Retirement Plan Services is a significant portion of John Hancock's wealth business, and having greater scale, added capabilities and talent, positions us as a major plan provider in the U.S. retirement plan business," said Craig Bromley, President, John Hancock.
Highlights of the Transaction
- Accelerates Manulife's growth strategy for wealth and asset management businesses around the world.
- Complements recent investments in similar businesses in Canada and Asia.
- Adds significant scale and new capabilities to JHRPS business in the United States.
- Provides strong presence in the United States mid-case and large-case retirement plan markets, and builds on leading position in the small-case market.
Peter Gordon, CEO of JHRPS, will oversee all of John Hancock's retirement plan services business. "We are pleased to welcome the entire group of 450 employees who will help ensure the management transition is seamless for customers, advisors and businesses," said Mr. Gordon.
"Our entire organization is focused on knowing and serving our customers for the ultimate benefit of our retirement plan participants," continued Mr. Gordon. "With this transaction, we are able to continue offering a top quality, high touch experience to our clients with no changes in systems, business locations, or service teams."
The reinsurance transaction announced in December 2014, in which New York Life agreed to assume a portion of certain John Hancock life insurance policies, is expected to close later this year, subject to receipt of required regulatory approvals and other closing conditions.
About John Hancock Financial and Manulife
Manulife is a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. We operate as John Hancock in the U.S. and as Manulife in other parts of the world. We provide strong, reliable, trustworthy and forward-thinking solutions for our customers' significant financial decisions. Our international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients. We also provide asset management services to institutional customers. Assets under management by Manulife and its subsidiaries were approximately C$691 billion (US$596 billion) as at December 31, 2014. Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife can be found on the Internet at manulife.com.
The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers and administers a broad range of financial products, including life insurance, annuities, investments, 401(k) plans, long-term care insurance, college savings, and other forms of business insurance. Additional information about John Hancock may be found at johnhancock.com
SOURCE Manulife Financial Corporation