Keys to Sustaining Success- Manulife in Japan

Tadayoshi OtsukaVice President & Corporate OfficerManulife Life Insurance Japan

October 23rd, 2008

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Manulife Financial - Vision and Strength

Vision

To be the most professional life insurance company in the world

Strengths

Solid Financials

Innovative Products

Strong Management

Team

Conservative Balance Sheet

Excellent Distribution

Well-suited to Changing

Demographics

Effective Risk Management

High Quality Investment

3

Manulife Financial – Operating in over 19 Different Countries and Territories Globally

Canada• Individual Insurance • Individual Wealth Management• Group Benefits• Group Pensions

United States• Insurance• Long Term Care• Annuities• Group Pensions• Mutual Funds• Fixed Products

AsiaHong Kong, Philippines, Singapore, Indonesia, Vietnam, Malaysia, Thailand, Taiwan, China

• Individual Life Insurance• Group Life & Health Insurance• Variable Annuities• Pension Products• Mutual Funds

InvestmentsUnited States, Canada, United Kingdom, Japan, Australia, Hong Kong, Southeast Asia

Japan • Individual Insurance• Variable Annuities

ReinsuranceUnited StatesCanadaEuropeAsia

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Significant Scale

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Reasons Why MFC Entered Japan

Second largest economy & second largest insurance market in the world

Sophisticated consumers with high standard of living

Substantial potential for savings & inter-generational wealth transfer needs

Under-serviced by product innovation

MFC has over 100 years of experience in Asia

6

Demographic Characteristics

One of most aged societies in the world 40% of population projected to be over 65 by 2050

High life expectancy & falling birth rates

Concentrated spending power

Shift from concerns of dying to affordability of living

High consumer savings rate

Sources: World Population Ageing 2007 and Towers Perrin Changing Life Insurance in Japan, 2008.

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How Manulife Japan Was Established

1999: Struck a joint venture deal with Daihyaku & capitalized a new company called Manulife Century Life with a ¥40 billion ($500MM CAD) investment (approx. 50% of the company)

2000: DHY taken over by the regulator, MCL continued to operate

2001: MCL purchased the assets and liabilities of DHY and was renamed to Manulife Life Insurance Company

2003: Manulife Japan began to prosper

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Strategy After Acquiring Daihyaku

Leverage global experience and recruit top-quality Japanese talent

Introduce a more modern, capital efficient and profitable product portfolio

• Introduced a variety of innovative products including universal life and variable annuity products

Revitalize and expand channels of distribution• Formed partnerships with banks and retail brokerages (Jan 04: Strategic

alliance with the Bank of Tokyo Mitsubishi)

Reduce expense bases• Eliminated duplication

• Centralized administration

• Re-negotiated supply contracts

As a result of diligently pursuing the above strategy...

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MLJ - Significant Growth

111 106 123

261208 186

84 106

3171 103

46

724

2002 2003 2004 2005 2006 2007 1H07 1H08

Insurance Wealth

2,546

1,3421,621

1,899

2,704

3,933

3,164

3,791

2002 2003 2004 2005 2006 2007 1H07 1H08

Net Income

5-yr CAGR 21%

Premiums & Deposits

5-yr CAGR 19%

15,449

12,36211,361

9,6168,2538,441

12,760

16,729

2002 2003 2004 2005 2006 2007 1H07 1H08

Insurance Wealth

Fund Under

Management

5-yr CAGR 13%

Recent Japan Successes1

G R O W T H

+37%+90%

+31%

+37% +90% +31%Earnings P & D FUM

1H07 vs 1H08

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Significant Contribution to MFC

Japan7%

Net Income

VA36%

Insurance64%

Business Unit Net Income

Data as at 31Dec07 in $US

“In order to meet our ambitious objectives, we will leverage the positive momentum achieved and grow our business even faster”

– Craig BromleyEVP & GM, Japan

37% YoY Earnings GrowthKey contributors:

Inforce growth Impact of strong sales in Insurance & WealthFavorable currency

Data as at 31Dec07 in $US

YoY based on 1H08 vs 1H07

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Market Share

Insurance Sales

10,638

13,685

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

2006 FY 2007 FY

Yen

M

Wealth Sales

221,573

420,954

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

2006 FY 2007 FY

Yen

M

Market Share

Industry Growth

11.5% 614Bp

-14.0% -11.0%

0.7% 1.1% 37Bp 5.4%

Wealth2006 FY 2007 FY Growth

Insurance2006 FY 2007 FY Growth

Source: Market share and sales are based on numbers from statutory accounts

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Our Distribution Partners

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Core Strategy & Implementation

To be the fastest growing insurance provider in Japan

Expand existing distribution channels

Focus on developing innovative products

Expand infrastructure to meet growth

Develop new markets & strategically invest in areas of growth

14

Strengths & Challenges

Strengths

“AAA” credit rating

Strong products development capability

Recognized market leader of VA in Japan

Excellent account management appreciated by distributors

Move quickly to catch opportunities

Challenges

Changing regulations

Shrinking overall market in Japan

Fiercer competition and new entrants

Turbulent economic environment

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What are we facing today?

Source: Towers Perrin Changing Life Insurance in Japan, 2008.

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Looking Forward

We will keep ourselves well positioned, no matter what.

Strong market position

A track record of successful industry leading products

Growth of alternative distribution channels

Lever large customer base and sell products through multiple channels