john hancock long-term care _ltc_ reinsurance - Manulife Financial

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john hancock long-term care _ltc_ reinsurance - Manulife Financial Powered By Docstoc
					                      Statistical Information Package


                                                                      Q2 2012




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TABLE OF CONTENTS




                                                     Page                                                                           Page

   Financial Reporting Structure                      1     Asset Information
   Notes to Readers                                   2      Asset Composition and Quality
   Financial Highlights                               3         Portfolio Composition                                               26
                                                                Fixed Income Securities by Credit Quality and Geographic Location   27
                                                                Fixed Income Securities by Sector                                   28
   Consolidated Financial Statements                            Provisions, Impairments & Unrealized Losses                         29
     Consolidated Statements of Income                5      Investment Income                                                      30
     Consolidated Statements of Financial Position    6
     Statements of Changes in Equity                  7
     Consolidated Statements of Cash Flows            8     Actuarial Liabilities Information
     Source of Earnings                               9       Variable Annuity Product Guarantees                                   31
                                                              Wealth Management DAC Balances                                        32

   Segmented Information
     Asia                                            10
       Hong Kong                                     11     Capital Information
       Other Asia Territories                        12       Regulatory Capital                                                    33
       Japan                                         13
     Canada                                          14     Glossary of Terms and Definitions                                       34
       Individual Insurance                          15
       Individual Wealth Management                  16     General Information                                                     35
       Group Businesses                              17
     U.S. Division                                   18
       John Hancock Life                             20
       John Hancock Long-Term Care                   21
       John Hancock Wealth Asset Management          22
       John Hancock Annuities                        23
     Corporate & Other                               24
     Corporate & Other - Reinsurance                 25
FINANCIAL REPORTING STRUCTURE




                                                                 MFC



                    ASIA                         CANADA                                U.S. DIVISION                          CORPORATE & OTHER

                HONG KONG              INDIVIDUAL INSURANCE                           JOHN HANCOCK LIFE                                CORPORATE

 Individual Insurance           Universal Life                          Variable Universal Life                            Corporate
 Group Life and Health          Whole Life                              Universal Life
 Group Pensions                 Term Life                               Whole Life
 Mutual Funds                   Living Benefits                         Term Life
                                Affinity Markets                        COLI
                                International Group Program:            Universal Life with Lifetime No-Lapse Guarantees
                                   Group Life & Health                  Guaranteed Non-Par Whole Life
                                   Group Pensions




                                INDIVIDUAL WEALTH MANAGEMENT               JOHN HANCOCK LONG-TERM CARE
       OTHER ASIA TERRITORIES                                                                                                          REINSURANCE
                                            (IWM)                                     (LTC)

 Individual Insurance           Annuities                               Retail LTC                                         Life - pre Q3 2011*
 Group Life and Health          Fixed Rate Products                     Group LTC                                          Property and Casualty
 Group Pensions                 Segregated Funds                        Federal LTC                                        JH Accident and Health (discontinued)
 Variable Annuities             Manulife Bank
 Mutual Funds                   Mutual Funds

                                                                                                                           * MFC sold the Life Retrocession portion
                                                                                                                           of this business in the third quarter of 2011.

                                                                             JOHN HANCOCK WEALTH ASSET
                    JAPAN                 GROUP BUSINESSES                                                                             INVESTMENTS
                                                                                    MANAGEMENT

 Individual Insurance           Group Life and Health                   Defined Contribution                               Institutional Advisory Accounts
 Variable Annuities             Group Retirement Solutions              Mutual Funds                                       Privately Managed Accounts
                                                                        College Savings



                                                                               JOHN HANCOCK ANNUITIES

                                                                        Variable Annuities
                                                                        Fixed Deferred Annuities
                                                                        Payout Annuities
                                                                        Spread-based Products
                                                                        Fee-based Products




                                                               Page 1                                                           FINANCIAL REPORTING STRUCTURE
Notes to Readers


Use of this document:
Information in the document is supplementary to the Company's second quarter Press Release,          New business embedded value (“NBEV”) is the change in shareholders’ economic value as a result of
MD&A and unaudited financial statements and the Company's 2011 Annual Report and should be           sales in the period. NBEV is calculated as the present value of expected future earnings after the cost of
read in conjunction with those documents.                                                            capital, on actual new business sold in the period using future mortality, morbidity, policyholder behavior,
                                                                                                     expense and investment assumptions that are consistent with the assumptions used in the valuation of our
Performance and Non-GAAP Measures                                                                    policy liabilities.
We use a number of non-GAAP financial measures to measure overall performance and to assess
each of our businesses. Non-GAAP measures include return on common shareholders' equity,             Constant currency basis
diluted earnings per share excluding convertible instruments, premiums and deposits, funds under     Quarterly amounts stated on a constant currency basis are calculated using Q2 2012 income statement and
management, constant currency basis, new business embedded value, capital and sales. Non-            statement of financial position exchange rates as appropriate.
GAAP financial measures are not defined terms under GAAP and, therefore, are unlikely to be
comparable to similar terms used by other issuers. Therefore, they should not be considered in       Diluted earnings per share, excluding convertible instruments shows diluted earnings per share
isolation or as a substitute for any other financial information prepared in accordance with GAAP.   excluding the dilutive effect of convertible instruments.

Return on common shareholders' equity is a profitability measure that presents the common
shareholders' net income as a percentage of the capital deployed to earn the income. The
Company calculates return on equity using average common shareholders' equity excluding
Accumulated Other Comprehensive Income (Loss) on AFS securities and on cash flow hedges.

Premiums and deposits is a measure of top line growth. The Company calculates premiums
and deposits as the aggregate of (i) general fund premiums net of reinsurance, reported as
premiums on the Statement of Income, (ii) premium equivalents for administration only group
benefit contracts, (iii) premiums in the Canadian Group Benefit’s reinsurance ceded agreement,
                                                                                                     #
(iv) segregated fund deposits, excluding seed money, (v) mutual fund deposits, (vi) deposits into
institutional advisory accounts, and (vii) other deposits in other managed funds. The ceded
premium related to the coinsurance agreement entered into in Q3 2012 for our U.S. Fixed
Deferred Annuity business is excluded from the non-GAAP measure.

Funds under management is a measure of the size of the Company. It represents the total of
the invested asset base that the Company and its customers invest in.

The definition we use for capital serves as a foundation of our capital management activities at
the MFC level. For regulatory reporting purposes, the numbers are further adjusted for various
additions or deductions to capital as mandated by the guidelines used by OSFI. Capital is
calculated as the sum of (i) total equity excluding Accumulated Other Comprehensive Income
(Loss) on cash flow hedges and (ii) liabilities for preferred shares and capital instruments.

Sales are measured according to product type.
(i) For total individual insurance, sales include 100 per cent of new annualized premiums and 10
per cent of both excess and single premiums. For individual insurance, new annualized premiums
reflect the annualized premium expected in the first year of a policy that requires premium
payments for more than one year. Sales are reported gross before the impact of reinsurance.
Single premium is the lump sum premium from the sale of a single premium product, e.g. travel
insurance.
(ii) For group insurance, sales include new annualized premiums and administrative services only
premium equivalents on new cases, as well as the addition of new coverages and amendments to
contracts, excluding rate increases.
(iii) For individual wealth management contracts, all new deposits are reported as sales. This
includes individual annuities, both fixed and variable; variable annuity products; mutual funds;
college savings 529 plans; and authorized bank loans and mortgages.
(iv) For group pensions/retirement savings, sales of new regular premiums and deposits reflect an
estimate of expected deposits in the first year of the plan with the Company. Single premium
sales reflect the assets transferred from the previous plan provider. Sales include the impact of
the addition of a new division or of a new product to an existing client. Total sales include both
new regular and single premiums and deposits.
                                                            C




                                                                                           Page 2                                                                                               NOTES TO READERS
                                                                                                                                                                                                                                                                                                            Ch
FINANCIAL HIGHLIGHTS
(Canadian $ in millions unless otherwise stated and per share information, unaudited)
                                                                                                                                     2012                2012              2011              2011              2011          2012 Q2                     YTD       YTD        YTD 2012             Fiscal
                                                                                                                                       Q2                  Q1                Q4                Q3                Q2            vs.                      2012      2011           vs.               2011
                                                                                                                                                                                                                             2011 Q2                                          YTD 2011


Shareholders' Net Income (Loss) by Division
    Asia                                                                                                                              (315)             1,111               285              (712)                28                     -               796       379             110%              (48)
    Canada                                                                                                                             223                317               246                (92)              264                -16%                 540       773              -30%            927
    U.S.                                                                                                                               177                574               505            (1,028)               429                -59%                 751      1,144             -34%            621
    Corporate and other                                                                                                               (385)              (796)           (1,105)              555               (231)                    -             (1,181)     (821)                 -        (1,371)
Net income (loss) attributed to shareholders                                                                                          (300)             1,206                (69)          (1,277)               490                     -               906      1,475             -39%            129
    Preferred share dividends                                                                                                          (28)               (24)               (21)              (22)              (22)                27%                  (52)      (42)            24%              (85)
Common shareholders' net income (loss)                                                                                                (328)             1,182                (90)          (1,299)               468                     -               854      1,433             -40%             44
Common shareholders' net income (loss) on a constant currency basis                                                                   (328)             1,186                (98)          (1,344)               479                     -               854      1,457             -41%


Selected Performance Measures
    Basic earnings (loss) per common share                                                                                          ($0.18)             $0.66            ($0.05)           ($0.73)             $0.26                     -      $        0.47     $0.80             -41%           $0.02
    Basic earnings (loss) per common share on a constant currency basis                                                             ($0.18)             $0.66            ($0.05)           ($0.75)             $0.27                     -
    Diluted earnings (loss) per common share, excluding convertible instruments                                                     ($0.18)             $0.66            ($0.05)           ($0.73)             $0.26                     -      $        0.47     $0.80             -41%           $0.02
    Diluted earnings (loss) per common share                                                                                        ($0.18)             $0.62            ($0.05)           ($0.73)             $0.26                     -      $        0.46     $0.79             -42%           $0.02
    Return on common shareholders' equity (annualized)1                                                                             (5.8)%              21.0%            (1.6)%           (22.4)%               8.2%                     -               7.5%    12.8%              -41%            0.2%
1
    Return on common shareholders' equity is common shareholders' net income (loss) divided by average common shareholders' equity excluding accumulated other comprehensive income (loss) on available-for-sale securities and on cash flow hedges.
    See page 2 for discussion on non-GAAP measures.
Premiums and deposits - Insurance
Life and health insurance premiums                                                                                                   3,719              3,473             3,651             3,490              3,451                  8%                7,192     7,045              2%           14,186
Segregated fund deposits                                                                                                               551                529               491               417                381                 45%                1,080       751             44%            1,659
ASO premium equivalents                                                                                                                725                715               666               666                663                  9%                1,440     1,347              7%            2,679
Group Benefits ceded                                                                                                                 1,313                970               941               931                933                 41%                2,283     1,882             21%            3,754
Premiums and deposits - Insurance                                                                                                    6,308              5,687             5,749             5,504              5,428                 16%               11,995    11,025              9%           22,278
Premiums and deposits - Insurance on a constant currency basis                                                                       6,308              5,711             5,689             5,574              5,568                 13%               11,995    11,241              7%

Premiums and Deposits - Wealth Management
 Annuity and pension premiums                                                                                                         740               1,031               889               772               731                   1%                1,771     1,657               7%           3,318
 Investment contract deposits                                                                                                          43                  70               126                27                41                   5%                  113       136             -17%             289
 Segregated fund deposits                                                                                                           5,072               5,765             5,084             4,692             4,705                   8%               10,837    10,254               6%          20,030
 Mutual fund deposits                                                                                                               4,337               4,054             3,309             3,790             4,883                 -11%                8,391     9,541             -12%          16,640
 Institutional advisory account deposits                                                                                              894                 368               627               602               909                  -2%                1,262     1,578             -20%           2,807
                       2
 Other fund deposits                                                                                                                   93                 165               133               158               240                 -61%                  258       408             -37%             699
Premiums and deposits - Wealth Management                                                                                          11,179              11,453            10,168            10,041            11,509                  -3%               22,632    23,574              -4%          43,783
Premiums and deposits - Wealth Management on a constant currency basis                                                             11,179              11,511            10,064            10,272            11,906                  -6%               22,632    24,130              -6%
2
    Other funds include College Savings (529 plan) and Privately Managed Accounts.
                        3
Insurance Sales
    Asia                                                                                                                               422                365               312               297                342                 23%                 787       621              27%            1,230
    Canada                                                                                                                             447                318               172               157                152                194%                 764       329             132%             658
    U.S.                                                                                                                               132                140               156               191                129                  2%                 272       271               0%             619
Insurance sales                                                                                                                      1,001                823               640               645                623                 61%                1,823     1,221             49%            2,507
Insurance sales on a constant currency basis                                                                                         1,001                825               633               650                647                 55%                1,823     1,258             45%
3
    Insurance sales consist of recurring premiums and 10% of both excess and single premiums.


Wealth Management Sales
    Asia                                                                                                                             1,398              1,094               939               900              1,298                  8%                2,492     2,292              9%            4,131
    Canada                                                                                                                           2,440              2,796             2,624             2,419              2,783                -12%                5,236     5,741             -9%           10,784
    U.S.                                                                                                                             4,710              4,834             4,578             4,520              4,883                 -4%                9,544    10,285             -7%           19,383
Wealth management sales                                                                                                              8,548              8,724             8,141             7,839              8,964                 -5%               17,272    18,318             -6%           34,298
Wealth management sales on a constant currency basis                                                                                 8,548              8,766             8,067             7,985              9,234                 -7%               17,272    18,704             -8%


New Business Embedded Value
    Insurance products                                                                                                                 206                193                70                 88               158                 30%                 399       331              21%             489
    Wealth management products                                                                                                          90                112                73                 89               140                -36%                 202       303              -33%            465
Total new business embedded value                                                                                                      296                305               143               177                298                 -1%                 601       634              -5%             954


                                                                                                                                                       Page 3                                                                                                              FINANCIAL HIGHLIGHTS
FINANCIAL HIGHLIGHTS (CONT'D)
(Canadian $ in millions unless otherwise stated and per share information, unaudited)
                                                                                                          2012               2012              2011               2011               2011          2012 Q2                   YTD          YTD         YTD 2012     Fiscal
                                                                                                            Q2                 Q1                Q4                 Q3                 Q2            vs.                    2012         2011            vs.       2011
                                                                                                                                                                                                   2011 Q2                                            YTD 2011

Common Share Statistics
Share Price - Toronto (in Canadian $)
   high                                                                                                  13.86              14.07              14.05             17.23              17.93                -23%              14.07         19.29            -27%     19.29
   low                                                                                                   10.39              11.03              10.18             10.95              15.52                -33%              10.39         15.52            -33%     10.18
   close                                                                                                 11.09              13.51              10.85             11.94              17.08                -35%              11.09         17.08            -35%     10.85
Share Price - New York (in U.S $)
   high                                                                                                  14.07              14.21              14.14             18.07              18.68                -25%              14.21         19.50            -27%     19.50
   low                                                                                                    9.97              10.89               9.82             10.63              15.86                -37%               9.97         15.82            -37%      9.82
   close                                                                                                 10.89              13.55              10.62             11.33              17.66                -38%              10.89         17.66            -38%     10.62
Common shares outstanding (millions)
 - end of period                                                                                         1,815              1,807              1,801             1,794              1,788                  2%              1,815        1,788              2%      1,801
 - weighted average                                                                                      1,808              1,802              1,795             1,789              1,783                  1%              1,805        1,781              1%      1,786
 - diluted weighted average (excluding convertible instruments)                                          1,808              1,804              1,795             1,789              1,786                  1%              1,807        1,783              1%      1,789
 - diluted weighted average                                                                              1,808              1,919              1,795             1,789              1,871                 -3%              1,924        1,866              3%      1,789
Dividend per common share paid in the quarter 1                                                           0.13               0.13               0.13              0.13               0.13                  0%               0.26         0.26              0%       0.52
Common share dividend payout ratio                                                                          n/a             19.9%                 n/a               n/a             49.6%                    -             54.6%        32.5%             68%         n/a
1
    On August 9, 2012, the Board of Directors approved a quarterly shareholders' dividend of $0.13 per share on the common shares of the Company, payable on or after September 19, 2012 to shareholders of record at the close of business
    on August 21, 2012.

Valuation Data
Book value per common share                                                                              12.71              12.77              12.44             12.87              12.98                 -2%              12.71         12.98             -2%     12.44
Market value to book value ratio                                                                          0.87               1.06               0.87              0.93               1.32                -34%               0.87          1.32            -34%      0.87
Book value excluding goodwill per common share                                                           10.85              10.91              10.55             10.58              10.77                  1%              10.85         10.77              1%     10.55
Market value to book value excluding goodwill ratio                                                       1.02               1.24               1.03              1.13               1.59                -36%               1.02          1.59            -36%      1.03
Market capitalization ($ billions)                                                                        20.1               24.4               19.5              21.4               30.5                -34%               20.1          30.5            -34%      19.5

Funds Under Management
 General fund                                                                                          227,939           223,837            226,520           225,925            202,341                  13%           227,939       202,341             13%    226,520
 Segregated funds excluding institutional advisory accounts                                            201,285           203,736            193,807           188,085            196,630                   2%           201,285       196,630              2%    193,807
 Mutual funds                                                                                           53,821            53,411             49,399            47,743             51,212                   5%            53,821        51,212              5%     49,399
 Institutional advisory accounts                                                                        24,083            23,975             23,778            24,112             23,912                   1%            24,083        23,912              1%     23,778
 Other funds2                                                                                            6,663             6,684              6,148             5,944              6,579                   1%             6,663         6,579              1%      6,148
Total funds under management                                                                           513,791           511,643            499,652           491,809            480,674                   7%           513,791       480,674              7%    499,652
Total funds under management on a constant currency basis                                              513,791           520,029            499,467           483,830            500,575                   3%           513,791       500,575              3%    499,467
2
    Other funds includes College Savings (529 plan), Privately Managed Accounts and funds managed for institutional clients in Asia.

Capital Information
Total capital 3                                                                                         29,669             30,377            28,982            28,914              28,875                  3%             29,669       28,875              3%     28,982
                                                                   4
MCCSR - The Manufacturers Life Insurance Company                                                          213%               225%              216%              219%                241%                -11%               213%         241%             -11%     216%
3
    Total capital includes total equity less AOCI on cash flow hedges and liabilities for preferred shares and capital instruments. Total equity includes unrealized gains and losses on AFS bonds and AFS equities, net of taxes.
    Effective 2009, the net unrealized gain on AFS bonds, net of taxes, is no longer part of OSFI regulatory capital.
4
    For The Manufacturers Life Insurance Company, the capital ratio has been determined in accordance with the Minimum Continuing Capital & Surplus Requirements (MCCSR) of the Office of the Superintendent of Financial Institutions (Canada).


Foreign Exchange Information5
 - Statements of Financial Position                                (CDN to $ 1 US)                    1.019100           0.999100          1.017000          1.038900            0.964300                  6%
                                                                   (CDN to 1 YEN)                     0.012770           0.012120          0.013210          0.013490            0.011960                  7%
    - Statements of Income                                         (CDN to $ 1 US)                    1.010454           1.001100          1.023187          0.980683            0.967941                  4%
                                                                   (CDN to 1 YEN)                     0.012627           0.012631          0.013233          0.012641            0.011873                  6%
5
    Unless otherwise indicated, information contained in this supplement is in Canadian dollars. The exchange rates above are used for currency conversion from U.S. dollars and Japanese yen to Canadian dollars for financial statement purposes.


                                                                                                                                             Page 4                                                                                  FINANCIAL HIGHLIGHTS (CONT'D)
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(Canadian $ in millions, unaudited)
                                                                                                                                                2012             2012              2011              2011             2011          2012 Q2               YTD              YTD        YTD 2012               Fiscal
                                                                                                                                                  Q2               Q1                Q4                Q3               Q2            vs.                2012             2011           vs.                 2011
                                                                                                                                                                                                                                    2011 Q2                                           YTD 2011

Revenue
Premium income
    Gross premiums                                                                                                                             6,424             6,199            6,247             5,814             5,745               12%          12,623           11,837                 7%           23,898
    Premiums ceded to reinsurers1                                                                                                             (1,965)           (1,695)          (1,707)           (1,552)           (1,563)              26%          (3,660)          (3,135)               17%           (6,394)
    Net premium income                                                                                                                         4,459             4,504            4,540             4,262             4,182                7%           8,963            8,702                 3%           17,504
Investment income
    Investment income2                                                                                                                         2,923             1,589            2,034             3,697            2,609               12%            4,512            4,636                -3%           10,367
    Realized/ unrealized gains (losses) on assets supporting insurance and investment contract liabilities 3                                   7,297            (4,066)           1,360            13,491            2,266              222%            3,231            1,019               217%           15,870
    Net investment income (loss)                                                                                                              10,220            (2,477)           3,394            17,188            4,875              110%            7,743            5,655                37%           26,237
Other revenue                                                                                                                                  2,045             1,790            1,765             2,005            1,708               20%            3,835            3,472                10%            7,242
Total revenue                                                                                                                                 16,724             3,817            9,699            23,455           10,765               55%           20,541           17,829                15%           50,983
Contract benefits and expenses
    To contractholders and beneficiaries
          Death, disability and other claims                                                                                                   2,409             2,466            2,224             2,182             2,231               8%            4,875            4,807                 1%            9,213
          Maturity and surrender benefits                                                                                                      1,163             1,244            1,375             1,339             1,431             -19%            2,407            2,689               -10%            5,403
          Annuity payments                                                                                                                       807               796              802               860               723              12%            1,603            1,502                 7%            3,164
          Policyholder dividends and experience rating refunds                                                                                   286               274              302               233               276               4%              560              545                 3%            1,080
          Net transfers from to segregated funds                                                                                                (229)             (158)            (130)             (147)              (64)            258%             (387)             (22)                nm             (299)
          Change in insurance contract liabilities3                                                                                           11,770            (3,409)           4,364            19,697             4,239             178%            8,361            3,873               116%           27,934
          Change in investment contract liabilities                                                                                               12                42               35                46               (41)                -              54              (17)                  -              64
          Ceded benefits and expenses                                                                                                         (1,543)           (1,364)          (1,325)           (1,260)           (1,110)             39%           (2,907)          (2,333)               25%           (4,918)
          Change in reinsurance assets1                                                                                                         (236)                5           (1,486)             (294)               23                 -            (231)             (72)              221%           (1,852)
  Net benefits and claims                                                                                                                     14,439              (104)           6,161            22,656             7,708              87%           14,335           10,972                31%           39,789
        General expenses                                                                                                                       1,114             1,045            1,134             1,006               964               16%           2,159            1,921                12%            4,061
        Investment expenses                                                                                                                      259               251              273               250               240                8%             510              478                 7%            1,001
        Commissions                                                                                                                            1,000               976              987               922               932                7%           1,976            1,904                 4%            3,813
        Interest expense                                                                                                                         314               288              288               353               327               -4%             602              608                -1%            1,249
        Net premium taxes                                                                                                                         79                71               72                67                62               27%             150              118                27%              257
        Goodwill impairment                                                                                                                        -                 -              665                 -                 -                  -              -                -                   -             665
Total contract benefits and expenses                                                                                                          17,205             2,527            9,580            25,254           10,233               68%           19,732           16,001                23%           50,835
Income (loss) before income taxes                                                                                                               (481)            1,290              119            (1,799)             532                  -             809            1,828               -56%              148
    Income tax (expense) recovery                                                                                                                194               (60)            (174)              615              (37)                 -             134             (344)                  -              97
Net income (loss)                                                                                                                               (287)            1,230              (55)           (1,184)             495                  -             943            1,484               -36%              245
    Less: net income attributed to non-controlling interest in subsidiaries                                                                       44                 9               14                 4                4             1000%               53                9               489%               27
    Less: net income (loss) attributed to participating policyholders                                                                            (31)               15                -                89                1                  -             (16)               -                   -              89
Net income (loss) attributed to shareholders                                                                                                    (300)            1,206              (69)           (1,277)             490                  -             906            1,475               -39%              129
    Preferred share dividends                                                                                                                    (28)              (24)             (21)              (22)             (22)              27%              (52)             (42)               24%              (85)
Common shareholders' net income (loss)                                                                                                          (328)            1,182              (90)           (1,299)             468                  -             854            1,433               -40%               44

1
    On June 29, 2012, the Company entered into a coinsurance agreement to insure 67% of the Company's book value of its fixed deferred annuity business. Under the terms of the agreement, the Company will maintain responsibility for servicing of the policies and managing some of the assets and
    has maintained 10% of the risk. For presentation in the Statistical Information Package, the $5,428 premiums ceded as a result of this agreement have been shown net with the change in reinsurance assets line.

2
    The volatility in investment income largely related to gains and losses on macro hedges used as part of our equity risk management program and losses on AFS bonds related to the management of interest rate exposures. These activities in the surplus segment are mostly offset by gains reflected
    in the measurement of our policy liabilities (see change in insurance contract liabilities). Gains (losses) on macro hedges were as follows:
                                                                                                                                             Q2 2012           Q1 2012          Q4 2011           Q3 2011          Q2 2011
                                                                                                                                                341              (758)            (423)              910               39
3
    The volatility in realized/unrealized gain on assets supporting insurance and investment contract liabilities relates primarily to the impact of higher interest rates on bond and fixed income derivative positions as well as interest rate swaps supporting the dynamic hedge program. These items
     are mostly offset by gains reflected in the measurement of our policy obligations. For fixed income assets supporting insurance and investment contracts, equities supporting pass through products and derivatives related to variable annuity hedging programs, the impact of realized/ unrealized
    gains (losses) on the assets is largely offset in the change in insurance and investment contract liabilities.




                                                                                                                                                              Page 5                                                                                CONSOLIDATED STATEMENTS OF INCOME
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Canadian $ in millions, unaudited)

                                                                2012          2012       2011       2011        2011     2012 Q2
                                                                  Q2            Q1         Q4         Q3          Q2       vs.
                                                                                                                         2011 Q2

ASSETS
Invested assets
   Cash and short-term securities                              13,008        12,312     12,813     13,804      12,823         1%
   Securities
    Bonds                                                     120,692       117,416    120,487    120,172     101,459        19%
    Stocks                                                     10,717        11,226     10,243      9,856      10,631         1%
   Loans
    Mortgages                                                  34,737        34,943     35,023     34,792      33,195         5%
    Private placements                                         19,840        20,098     20,294     20,297      19,178         3%
    Policy loans                                                6,895         6,710      6,827      6,938       6,431         7%
    Bank loans                                                  2,251         2,275      2,288      2,295       2,311        -3%
   Real estate                                                  8,136         7,694      7,466      6,912       6,346        28%
   Other invested assets                                       11,663        11,163     11,079     10,859       9,967        17%
Total invested assets                                         227,939       223,837    226,520    225,925     202,341        13%
Other assets
  Accrued investment income                                     1,806         1,839      1,802      1,840       1,691         7%
  Outstanding premiums                                            966           654        781        698         751        29%
  Derivatives                                                  16,772        11,388     15,472     14,410       4,322       288%
  Goodwill and intangible assets                                5,423         5,362      5,442      6,088       5,804        -7%
  Reinsurance assets                                           16,548        10,737     10,728      9,377       7,660       116%
  Deferred tax asset                                            1,962         1,719      1,757      2,004       1,318        49%
  Miscellaneous                                                 4,628         3,799      3,542      4,398       4,913        -6%
Total other assets                                             48,105        35,498     39,524     38,815      26,459        82%
Segregated funds net assets                                   203,563       205,953    196,058    190,336     198,797         2%
Total assets                                                  479,607       465,288    462,102    455,076     427,597        12%

LIABILITIES AND EQUITY
Policy liabilities
   Insurance contract liabilities                             198,650       184,232    190,366    188,929     159,286        25%
   Investment contract liabilities                              2,509         2,537      2,540      2,491       2,551        -2%
Bank deposits                                                  18,823        18,424     18,010     18,530      17,409         8%
Deferred tax liability                                            763           712        766        791         925       -18%
Derivatives                                                     7,975         5,996      7,627      7,267       3,203       149%
Other liabilities                                              12,227        11,637     12,341     12,212      11,015        11%
                                                              240,947       223,538    231,650    230,220     194,389        24%
Long-term debt                                                  5,501         5,472      5,503      5,702       5,591        -2%
Liabilities for preferred shares and capital instruments        3,511         4,501      4,012      3,475       3,439         2%
Segregated funds net liabilities                              203,563       205,953    196,058    190,336     198,797         2%
Total liabilities                                             453,522       439,464    437,223    429,733     402,216        13%

Equity
Issued share capital
   Preferred shares                                             2,301         2,057      1,813      1,618       1,618        42%
   Common shares                                               19,723        19,644     19,560     19,483      19,413         2%
Contributed surplus                                               258           253        245        240         234        10%
Shareholders' retained earnings                                 2,883         3,448      2,501      2,826       4,360       -34%
Shareholders' accumulated other comprehensive income (loss)
      on available-for-sale securities                            236           250        104        124         314       -25%
      on cash flow hedges                                         (73)          (52)       (91)       (96)        (55)          -
      on translation of foreign operations                         43          (471)        83        500      (1,065)          -
Total shareholders' equity                                     25,371        25,129     24,215     24,695      24,819        -2%
Participating policyholders' equity                               233           264        249        249         160        46%
Non-controlling interest in subsidiaries                          481           431        415        399         402        20%
Total equity                                                   26,085        25,824     24,879     25,343      25,381         3%
Total liabilities and equity                                  479,607       465,288    462,102    455,076     427,597        12%


                                                                   Page 6              CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Canadian $ in millions, unaudited)
                                                                                                    2012      2012      2011      2011      2011        YTD        YTD      Fiscal
                                                                                                      Q2        Q1        Q4        Q3        Q2       2012       2011       2011



Preferred shares
Balance, beginning of period                                                                        2,057     1,813     1,618     1,618     1,618      1,813      1,422     1,422
Issued during the period                                                                              250       250       200         -         -        500        200       400
Issuance costs, net of tax                                                                             (6)       (6)       (5)        -          -        (12)       (4)       (9)
Balance, end of period                                                                              2,301     2,057     1,813     1,618     1,618      2,301      1,618     1,813

Common shares
Balance, beginning of period                                                                       19,644    19,560    19,483    19,413    19,332     19,560     19,254    19,254
Issued on exercise of stock options and deferred share units                                            -         -         -         -         1           -         2         2
Issued under Dividend Reinvestment and Share Purchase Plans                                            79        84        77        70        80        163        157       304
Balance, end of period                                                                             19,723    19,644    19,560    19,483    19,413     19,723     19,413    19,560

Contributed surplus
Balance, beginning of period                                                                         253       245       240       234        229        245       222       222
Exercise of stock options and deferred share units                                                     1         -         -         -          -          1         -       -
Stock option expense                                                                                   4         8         5         6          5         12        12        23
Balance, end of period                                                                               258       253       245       240        234        258       234       245

Shareholders' retained earnings
Balance, beginning of period                                                                        3,448     2,501     2,826     4,360     4,124      2,501      3,393     3,393
Net income (loss) attributed to shareholders                                                         (300)    1,206       (69)   (1,277)      490        906      1,475       129
Preferred share dividends                                                                             (28)      (24)      (21)      (22)      (22)        (52)      (42)      (85)
Common share dividends                                                                               (237)     (235)     (235)     (235)     (232)      (472)      (466)     (936)
Balance, end of period                                                                              2,883     3,448     2,501     2,826     4,360      2,883      4,360     2,501

Shareholders' accumulated other comprehensive income (loss)
Balance, beginning of period                                                                         (273)      96       528       (806)     (766)        96       (186)     (186)
Other comprehensive income (loss)
   Available-for-sale ("AFS") securities unrealized gains (losses), net of tax expense of $44         164        66       (13)      313        98        230          -       300
   AFS securities realized losses (gains) & impairments (recoveries), net of tax recovery of $30     (173)       78        (7)     (504)      (99)        (95)      (25)     (536)
   Cash flow hedges unrealized gains (losses), net of tax recovery of $1                              (25)       39         3       (42)       (4)         14        (5)      (44)
   Cash flow hedges realized (gains) losses, net of tax recovery of $1                                  2         2         2         2         2           4         4         8
   Unrealized foreign exchange gains (losses), net of $28 hedges and tax recovery of $8               514      (554)     (417)    1,565       (44)        (40)     (601)      547
   Share of other comprehensive income (loss) of associates, net of tax recovery of $1                 (3)        -         -         -         7          (3)        7         7
Balance, end of period                                                                                206      (273)       96       528      (806)       206       (806)       96

Total shareholders' equity, end of period                                                          25,371    25,129    24,215    24,695    24,819     25,371     24,819    24,215

Participating policyholders' equity
Balance, beginning of period                                                                         264       249       249       160        159        249       160       160
Net income                                                                                           (31)       15         -        89          1         (16)       -        89
Balance, end of period                                                                               233       264       249       249        160         233      160       249
Non-controlling interest in subsidiaries
Balance, beginning of period                                                                         431       415       399       402        416        415       410       410
Net income attributed to non-controlling interest                                                     44         9        14         4           4        53         9        27
Other comprehensive income (loss) attributed to non-controlling interest                              (7)        -         1        (5)         (2)        (7)      (1)       (5)
Contributions (distributions), net                                                                    13         7         1        (2)        (16)       20       (16)      (17)
Balance, end of period                                                                               481       431       415       399        402         481      402       415


Total equity, end of period                                                                        26,085    25,824    24,879    25,343    25,381     26,085     25,381    24,879




                                                                                                    Page 7                                   STATEMENTS OF CHANGES IN EQUITY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Canadian $ in millions, unaudited)
                                                                                                  2012        2012       2011       2011       2011     2012 Q2       YTD        YTD     YTD 2012         Fiscal
                                                                                                    Q2          Q1         Q4         Q3         Q2       vs.        2012       2011        vs.            2011
                                                                                                                                                        2011 Q2                          YTD 2011

Operating activities
Net income (loss)                                                                                 (287)       1,230        (55)    (1,184)      495            -      943       1,484        -36%          245
Adjustments for non-cash items in net income:
 Increase (decrease) in insurance contract liabilities                                          11,770       (3,409)     4,364     19,697      4,239      178%       8,361      3,873        116%     27,934
 Increase (decrease) in investment contract liabilities                                             12           42         35         46        (41)         -         54        (17)           -        64
 Decrease (increase) in reinsurance assets, net of premiums ceded relating to FDA coinsurance     (236)           5     (1,486)      (294)        23          -       (231)       (72)       221%     (1,852)
 Amortization of premium/discount on invested assets                                                 7           14         13          1         (2)         -         21         11         91%         25
 Other amortization                                                                                 92           95        101         86         79       16%         187        158         18%        345
 Net realized and unrealized (gains) losses, including impairments                              (7,858)       4,861     (1,067)   (14,651)    (2,596)     203%      (2,997)    (1,041)       188%    (16,759)
 Deferred income tax expense (recovery)                                                           (230)         (21)       173       (682)        35          -       (251)       299            -      (210)
 Stock option expense                                                                                4            8          5          6          5      -20%          12         12          0%         23
 Goodwill impairment                                                                                 -            -        665          -          -          -          -          -            -       665
Net income adjusted for non-cash items                                                           3,274        2,825      2,748      3,025      2,237       46%       6,099      4,707         30%     10,480
 Changes in policy related and operating receivables and payables                                  414         (180)       356     (1,569)       402        3%         234         66        255%     (1,147)
Cash provided by operating activities                                                            3,688        2,645      3,104      1,456      2,639       40%       6,333      4,773         33%      9,333
Investing activities
 Purchases and mortgage advances                                                                (22,084)    (15,790)   (20,261)   (28,368)   (20,481)       8%     (37,874)   (34,201)        11%    (82,830)
 Disposals and repayments                                                                        20,360      12,357     15,804     25,235     19,069        7%      32,717     30,812          6%     71,851
 Changes in investment broker net receivables and payables                                         (686)       (435)       139      1,196        494          -     (1,121)       422            -     1,757
Cash used in investing activities                                                                (2,410)     (3,868)    (4,318)    (1,937)      (918)     163%      (6,278)    (2,967)       112%     (9,222)
Financing activities
 Increase (decrease) in repurchase agreements and securities sold but not yet purchased             (22)      (489)       239        409       (275)       -92%       (511)      (582)       -12%            66
 Issue (repayment) of long-term debt, net                                                             -          -       (176)         -       (220)           -         -       (220)           -         (396)
 Issue (repayment) of capital instruments, net                                                   (1,000)       497        547          -          -            -      (503)      (550)        -9%            (3)
 Net redemption of investment contract liabilities                                                  (88)         -         61       (287)       (10)       780%        (88)      (342)       -74%          (568)
 Changes in bank deposits, net                                                                      371        451       (486)       989        480        -23%        822      1,100        -25%         1,603
 Shareholder dividends paid in cash                                                                (186)      (175)      (180)      (186)      (176)         6%       (361)      (351)         3%          (717)
 Funds borrowed (redeemed), net                                                                      (2)        (1)         8          1          1            -        (3)        35            -           44
 Secured borrowings from securitization transactions                                                  -        250        250          -          -            -       250          -            -          250
 Contributions from (distributions to) non-controlling interest                                      13          7          1         (2)       (16)           -        20        (16)           -          (17)
 Common shares issued, net                                                                            -          -          -          -          1       -100%          -          2       -100%             2
 Preferred shares issued, net                                                                       244        244        195          -          -            -       488        196        149%           391
Cash provided by (used in) financing activities                                                    (670)       784        459        924       (215)       212%        114       (728)           -          655
Cash and short-term securities
 Increase (decrease) during the period                                                             608        (439)      (755)       443      1,506        -60%        169      1,078        -84%        766
 Effect of foreign exchange rate changes on cash and short-term securities                         145        (143)      (186)       546        (38)           -         2       (168)           -       192
 Balance, beginning of period                                                                   11,698      12,280     13,221     12,232     10,764          9%     12,280     11,322          8%     11,322
Balance, end of period                                                                          12,451      11,698     12,280     13,221     12,232          2%     12,451     12,232          2%     12,280

Cash and short-term securities
Beginning of period
 Gross cash and short-term securities                                                           12,312      12,813     13,804     12,823     11,379         8%      12,813     11,849          8%     11,849
 Net payments in transit, included in other liabilities                                           (614)       (533)      (583)      (591)      (615)        0%        (533)      (527)         1%       (527)
Net cash and short-term securities, beginning of period                                         11,698      12,280     13,221     12,232     10,764         9%      12,280     11,322          8%     11,322
End of period
 Gross cash and short-term securities                                                           13,008      12,312     12,813     13,804     12,823          1%     13,008     12,823          1%     12,813
 Net payments in transit, included in other liabilities                                           (557)       (614)      (533)      (583)      (591)        -6%       (557)      (591)        -6%       (533)
Net cash and short-term securities, end of period                                               12,451      11,698     12,280     13,221     12,232          2%     12,451     12,232          2%     12,280



                                                                                                           Page 8                                                  CONSOLIDATED STATEMENTS OF CASH FLOW
CONSOLIDATED SOURCE OF EARNINGS
(Canadian $ in millions, unaudited)
                                                                                         2012               2012              2011               2011              2011         2012 Q2                YTD               YTD         YTD 2012             Fiscal
                                                                                           Q2                 Q1                Q4                 Q3                Q2           vs.                 2012              2011            vs.                2011
                                                                                                                                                                                2011 Q2                                              YTD 2011

                          1
Source of Earnings
Expected profit from in-force business                                                    820                846                814                800               842             -3%             1,666              1,670                 0%           3,284
Impact of new business                                                                    (70)               (86)              (201)              (144)              (95)           -26%              (156)              (178)              -12%            (523)
Experience gains (losses) 1,2                                                            (394)               417                246             (2,266)              204                -               23                993               -98%          (1,027)
Management actions and changes in assumptions                                            (933)                (1)              (825)              (316)             (576)            62%              (934)              (916)                2%          (2,057)
Earnings on surplus funds                                                                 113                 97                129                 96               158            -28%               210                280               -25%             505
Other                                                                                     (30)                (7)               (58)               (62)               (6)           400%               (37)               (30)               23%            (150)
Income (loss) before income taxes                                                        (494)             1,266                105             (1,892)              527                -              772              1,819               -58%              32
Income tax (expense) recovery                                                             194                (60)              (174)               615               (37)               -              134               (344)                  -             97
Net income (loss) attributed to shareholders                                             (300)             1,206                (69)            (1,277)              490                -              906              1,475               -39%             129
 Preferred share dividends                                                                (28)               (24)               (21)               (22)              (22)            27%               (52)               (42)               24%             (85)
Common shareholders' net income (loss)                                                   (328)             1,182                (90)            (1,299)              468                -              854              1,433               -40%              44
Constant currency, expected profit from in-force business                                 820                834                787                819               860             -5%             1,666              1,694                -2%

1
    Per OSFI instructions, the Source of Earnings amounts denominated in foreign currencies are translated at the prior quarter's statement of financial position rate. 'Experience gains' includes the adjustment to get to the income statement rate.
2
    Management basis SOE reporting used in this supplementary information package is consistent with OSFI SOE guidelines with the exception that 'experience gains' includes the full impact on reported income from changes to the segregated fund
    guarantee reserves due to investment market performance. Under OSFI SOE guidelines the component of this reserve change related to changes in CTE level would be reported as a valuation basis change.


Glossary
Expected profit from in-force business                                                                Formula-driven release of PfADS (Provisions for Adverse Deviations) on the non-fee businesses and expected profit on fee businesses.

Impact of new business                                                                                For non-fee income businesses, the capitalized value of future profits less PfADs in respect of new business. For fee income businesses, the non-
                                                                                                      capitalized acquisition expenses.

Experience gains (losses)                                                                             Earnings impact of any differences between actual experience in the current period relative to expected experience implicit in the actuarial
                                                                                                      liabilities, and differences in current period fee income due to market performance.

Management actions and changes in assumptions                                                         Earnings impact of:
                                                                                                      -management initiated actions in the period that generate a non-recurring current period impact.
                                                                                                      -changes in methods and assumptions that impact actuarial liabilities or other liabilities.
                                                                                                      -integration expenses from acquisitions that flow to income.
Earnings (loss) on surplus funds                                                                      Actual investment returns on the Company's surplus (shareholders' equity).
Other                                                                                                 Earnings items not included in any other line of the SOE.
Income taxes                                                                                          Tax charges to income, consistent with the amount on the statement of income.



                                                                                                                                       Page 9                                                                                       SOURCE OF EARNINGS
ASIA DIVISION
(Unaudited)
                                                                                                                                                 2012                 2012               2011               2011              2011           2012 Q2                  YTD                  YTD     YTD 2012     Fiscal
                                                                                                                                                   Q2                   Q1                 Q4                 Q3                Q2             vs.                   2012                 2011       vs.        2011
                                                                                                                                                                                                                                             2011 Q2                                               YTD 2011

Statements of Income - U.S. $ in millions
Revenue
 Premium income
   Gross premiums                                                                                                                               1,871                1,943               1,632             1,604              1,520               23%               3,814                 2,947        29%      6,183
   Premiums ceded to reinsurers                                                                                                                   (41)                 (39)                (51)              (35)               (86)             -52%                 (80)                 (204)      -61%       (290)
 Investment income                                                                                                                                289                  257                 244               258                280                3%                 546                   517         6%      1,019
 Other revenue                                                                                                                                    226                  239                 219               216                223                1%                 465                   463         0%        898
Subtotal revenue                                                                                                                                2,345                2,400               2,044             2,043              1,937               21%               4,745                 3,723        27%      7,810
                                                                                                                        1
 Realized/ unrealized gains on invested assets supporting insurance and investment contract liabilities                                           324                  309                 359               196                235               38%                 633                   144       340%        699
Total revenue                                                                                                                                   2,669                2,709               2,403             2,239              2,172               23%               5,378                 3,867        39%      8,509
Contract benefits and expenses
To contractholders and beneficiaries
   Gross benefits and claims paid and change in insurance contract liabilities                                                                  2,433                1,066               1,561             2,445              1,793               36%               3,499                 2,787        26%      6,793
   Ceded benefits and expenses and change in reinsurance assets                                                                                   (23)                 (38)                (38)              (28)               (73)             -68%                 (61)                 (178)      -66%       (244)
   Change in investment contract liabilities                                                                                                       (4)                  29                  21                32                (63)             -94%                  25                   (79)          -       (26)
 General expenses                                                                                                                                 265                  243                 286               246                232               14%                 508                   443        15%        975
 Investment expenses                                                                                                                               25                   23                  21                21                 18               39%                  48                    37        30%         79
 Commissions                                                                                                                                      273                  233                 211               217                212               29%                 506                   396        28%        824
 Other                                                                                                                                             21                   23                  21                24                 20                5%                  44                    39        13%         84
Total contract benefits and expenses                                                                                                            2,990                1,579               2,083             2,957              2,139               40%               4,569                 3,445        33%      8,485
Income (loss) before income taxes                                                                                                                (321)               1,130                 320              (718)                33                  -                809                   422        92%         24
 Income tax (expense) recovery                                                                                                                    (23)                   1                 (37)              (51)                (2)               nm                 (22)                  (32)      -31%       (120)
Net income (loss)                                                                                                                                (344)               1,131                 283              (769)                31                  -                787                   390       102%        (96)
 Less net income (loss) attributed to non-controlling interest in subsidiaries                                                                      9                   10                  10                (5)                 7               29%                  19                    12        58%         17
 Less net income (loss) attributed to participating policyholders                                                                                 (41)                  11                  (6)              (38)                (4)             925%                 (30)                   (7)      329%        (51)
Net income (loss) attributed to shareholders 2                                                                                                   (312)               1,110                 279              (726)                28                  -                798                   385       107%        (62)
1
    For fixed income assets supporting insurance and investment contract liabilities, equities supporting pass through products and derivatives related to variable annuity hedging programs, the impact of realized/ unrealized gains (losses) on the assets is largely offset in the
    change in actuarial liabilities, included in contract benefits.
2
    See the Q2 press release for a description of Q2 2012 results compared to Q2 2011.


Source of Earnings - U.S. $ in millions
Expected profit from in-force business                                                                                                            231                  220                 214               212                213                8%                 451                   417         8%        843
Impact of new business                                                                                                                             50                   38                  (2)                -                 10              400%                  88                    23       283%         21
Experience gains (losses)                                                                                                                        (615)                 801                  48              (925)              (241)             155%                 186                  (114)          -      (991)
Management actions and changes in assumptions                                                                                                       -                    -                   -                (5)                 -                  -                  -                     -           -        (5)
Earnings on surplus funds                                                                                                                          46                   45                  52                46                 48               -4%                  91                    96        -5%        194
Other                                                                                                                                              (1)                   5                   4                (3)                 -                  -                  4                    (5)          -        (4)
Income (loss) before income taxes                                                                                                                (289)               1,109                 316              (675)                30                  -                820                   417        97%         58
Income tax (expense) recovery                                                                                                                     (23)                   1                 (37)              (51)                (2)               nm                 (22)                  (32)      -31%       (120)
Net income (loss) attributed to shareholders                                                                                                     (312)               1,110                 279              (726)                28                  -                798                   385       107%        (62)

Premiums and Deposits - U.S. $ in millions
Premiums                                                                                                                                        1,830                1,904               1,581             1,569              1,434               28%               3,734                 2,743         36%     5,893
Investment contract deposits                                                                                                                       15                   14                  23                 -                  -                  -                 29                     -            -       23
Segregated fund deposits                                                                                                                          435                  390                 333               372                370               18%                 825                   707         17%     1,412
Mutual fund deposits 3                                                                                                                            936                  554                 630               656              1,048              -11%               1,490                 1,808        -18%     3,094
Total premiums and deposits                                                                                                                     3,216                2,862               2,567             2,597              2,852               13%               6,078                 5,258         16%    10,422
3
    This line includes the 49% interest in Manulife TEDA.

Funds Under Management - U.S. $ in millions
General fund                                                                                                                                   36,346               34,479             34,172             32,911            31,606                15%              36,346                31,606         15%    34,172
Segregated funds                                                                                                                               23,146               23,635             23,130             22,818            24,131                -4%              23,146                24,131         -4%    23,130
Mutual funds 4                                                                                                                                 10,124               10,317              9,593              9,198            10,891                -7%              10,124                10,891         -7%     9,593
Other funds 5                                                                                                                                   3,520                3,647              3,296              3,151             3,957               -11%               3,520                 3,957        -11%     3,296
Total funds under management                                                                                                                   73,136               72,078             70,191             68,078            70,585                 4%              73,136                70,585          4%    70,191
4
    This line includes the 49% interest in Manulife TEDA.
5
    Other funds mainly include funds managed by the Company for institutional clients in Hong Kong and Other Asia Territories.

Number of Agents
Number of agents                                                                                                                               50,662               49,678             50,179             46,481            44,483                14%              50,662                44,483        14%     50,179

Canadian $ in millions - Summary Statements of Operations and Key Metrics
Revenue                                                                                                                                         2,698                2,711              2,460              2,196             2,101                28%               5,409                 3,772        43%      8,428
Total policy benefits and expenses                                                                                                              3,021                1,580              2,133              2,900             2,068                46%               4,601                 3,356        37%      8,389
Net income (loss) attributed to shareholders                                                                                                     (315)               1,111                285               (712)               28                   -                796                   379       110%        (48)
Total premiums and deposits                                                                                                                     3,248                2,866              2,625              2,548             2,759                18%               6,114                 5,130        19%     10,303
Total funds under management                                                                                                                   74,531               72,015             71,390             70,717            68,066                 9%              74,531                68,066         9%     71,390


                                                                                                                                                                Page 10                                                                                                                                          ASIA
ASIA - HONG KONG
(Unaudited)
                                                                                                                                                 2012                2012              2011              2011              2011         2012 Q2                   YTD                YTD          YTD 2012           Fiscal
                                                                                                                                                   Q2                  Q1                Q4                Q3                Q2           vs.                    2012               2011            vs.               2011
                                                                                                                                                                                                                                        2011 Q2                                                   YTD 2011


Statements of Income - U.S. $ in millions
Revenue
 Premium income
   Gross premiums                                                                                                                                 391                  338               368              386               376                4%                 729                 774                -6%         1,528
   Premiums ceded to reinsurers                                                                                                                   (15)                 (15)              (25)             (14)              (35)             -57%                 (30)               (113)              -73%          (152)
 Investment income                                                                                                                                109                   94                89               94               106                3%                 203                 194                 5%           377
 Other revenue                                                                                                                                     73                   74                71               69                77               -5%                 147                 161                -9%           301
Subtotal revenue                                                                                                                                  558                  491               503              535               524                6%               1,049               1,016                 3%         2,054
                                                                                                                        1
 Realized/ unrealized gains on invested assets supporting insurance and investment contract liabilities                                           124                  122               105               95                93               33%                 246                 179                37%           379
Total revenue                                                                                                                                     682                  613               608              630               617               11%               1,295               1,195                 8%         2,433
Contract benefits and expenses
To contractholders and beneficiaries
   Gross benefits and claims paid and change in insurance contract liabilities                                                                    477                  343               358              565               514               -7%                 820                 962               -15%         1,885
   Ceded benefits and expenses and change in reinsurance assets                                                                                   (12)                 (23)               (1)             (30)              (36)             -67%                 (35)               (118)              -70%          (149)
   Change in investment contract liabilities                                                                                                       (3)                  28                20               34               (73)             -96%                  25                 (82)                  -          (28)
 General expenses                                                                                                                                  59                   54                62               54                52               13%                 113                 103                10%           219
 Investment expenses                                                                                                                                7                    7                 6                6                 6               17%                  14                  11                27%            23
 Commissions                                                                                                                                       69                   51                49               56                48               44%                 120                  93                29%           198
 Other                                                                                                                                             12                   12                13               14                11                9%                  24                  22                 9%            49
Total contract benefits and expenses                                                                                                              609                  472               507              699               522               17%               1,081                 991                 9%         2,197
Income (loss) before income taxes                                                                                                                  73                  141               101              (69)               95              -23%                 214                 204                 5%           236
 Income tax (expense) recovery                                                                                                                     (4)                  (4)               (3)              (4)               (6)             -33%                  (8)                (10)              -20%           (17)
                                                             2
Net income (loss) attributed to shareholders                                                                                                        69                 137                98               (73)              89              -22%                 206                 194                   6%           219
1
    For fixed income assets supporting insurance and investment contract liabilities, equities supporting pass through products and derivatives related to variable annuity hedging programs, the impact of realized/unrealized gains (losses) on the assets is largely offset in the change in actuarial
    liabilities, included in contract benefits.
2
    Year over year decrease is primarily driven by net experience loss related to the direct impact of equity markets and interest rates.

Sales - U.S. $ in millions
Insurance 3
  Total insurance sales                                                                                                                             81                  56                57                59               50               62%                 137                  93                   47%          209
Wealth Management
  Group pensions - new annualized premium sales                                                                                                    14                   11                15               15                15               -7%                  25                  30               -17%              60
  Group pensions - single premium sales                                                                                                           105                   73               105              121               120              -13%                 178                 221               -19%             447
                                            4
     Individual Wealth Management                                                                                                                  43                   58                66               78               120              -64%                 101                 281               -64%             425
3
    Consists of 100% of recurring premiums and 10% of both excess and single premiums.
4
    Sales for Individual Wealth Management are measured by premiums and deposits, and include mutual fund deposits and investment linked sales.

Premiums and Deposits - U.S. $ in millions
 Premiums                                                                                                                                         376                  323               343              372               341               10%                 699                 661                 6%         1,376
 Investment contract deposits                                                                                                                      13                   14                18                -                 -                  -                 27                   -                   -           18
 Segregated fund deposits                                                                                                                         161                  152               149              161               171               -6%                 313                 336                -7%           646
Mutual fund deposits                                                                                                                              259                  265               261              292               296              -13%                 524                 587               -11%         1,140
Total premiums and deposits                                                                                                                       809                  754               771              825               808                0%               1,563               1,584                -1%         3,180

Funds Under Management - U.S. $ in millions
 General fund                                                                                                                                  11,286              10,814            10,749            10,262            9,972                13%             11,286               9,972                 13%        10,749
 Segregated funds                                                                                                                               4,302               4,503             4,145             4,004            4,718                -9%              4,302               4,718                 -9%         4,145
 Mutual funds                                                                                                                                   7,280               7,617             6,864             6,426            7,901                -8%              7,280               7,901                 -8%         6,864
 Other funds 5                                                                                                                                  3,248               3,392             3,032             2,899            3,692               -12%              3,248               3,692                -12%         3,032
Total funds under management                                                                                                                   26,116              26,326            24,790            23,591           26,283                -1%             26,116              26,283                 -1%        24,790
5
    Other funds include funds managed by the Company for institutional clients.

Changes in General, Segregated, Mutual and Other Funds Under Management - U.S. $ in millions
Beginning balance                                                                                                                              26,326              24,790            23,591            26,283           26,211                 0%             24,790              25,575                 -3%        25,575
 Premiums and deposits                                                                                                                            809                 754               771               825              808                 0%              1,563               1,584                 -1%         3,180
 Investment income (loss) 6                                                                                                                      (654)              1,523               696            (2,932)             (88)              643%                869                 419                107%        (1,817)
 Benefits and withdrawals                                                                                                                        (383)               (375)             (330)             (403)            (431)              -11%               (758)               (826)                -8%        (1,559)
 Other7                                                                                                                                            18                (366)               62              (182)            (217)                  -              (348)               (469)               -26%          (589)
Ending balance                                                                                                                                 26,116              26,326            24,790            23,591           26,283                -1%             26,116              26,283                 -1%        24,790
6
    Investment income (loss) consists of gross investment income for the general fund and interest, dividends and net realized and unrealized gains and losses for the segregated funds, mutual funds and other funds.
7
    Other is comprised of all changes to the statement of income and the statement of financial position that are not specifically identified in the roll forward. These include general expenses, investment expenses, taxes, changes in receivables and payables, transfers to/from other Business Units and changes
    in allocated capital. This includes deposits and withdrawals on externally managed funds which have not been included in premiums and deposits, and benefits and withdrawals.

Number of Agents
 Number of agents                                                                                                                               5,042               5,006             5,027             4,723             4,608                 9%              5,042               4,608                   9%       5,027

Canadian $ in millions - Key Metrics
Net income (loss) attributed to shareholders                                                                                                       70                 137               101               (73)              86               -19%                207                 190                  9%           218
Sales - Insurance                                                                                                                                  82                  56                58                58               49                67%                138                  91                 52%           207
Sales - Wealth Management                                                                                                                         164                 142               190               210              246               -33%                306                 520                -41%           920
Total premiums and deposits                                                                                                                       819                 755               789               809              783                 5%              1,574               1,547                  2%         3,145
Total funds under management                                                                                                                   26,614              26,302            25,211            24,508           25,345                 5%             26,614              25,345                  5%        25,211


                                                                                                                                                               Page 11                                                                                                                                 ASIA - HONG KONG
ASIA - OTHER ASIA TERRITORIES
(Unaudited)
                                                                                                                                         2012                 2012             2011             2011             2011          2012 Q2                  YTD                YTD          YTD 2012            Fiscal
                                                                                                                                           Q2                   Q1               Q4               Q3               Q2            vs.                   2012               2011            vs.                2011
                                                                                                                                                                                                                               2011 Q2                                                  YTD 2011




Statements of Income - U.S. $ in millions
Revenue
 Premium income
   Gross premiums                                                                                                                          542                 530              514              540               562              -4%               1,072                996                   8%         2,050
   Premiums ceded to reinsurers                                                                                                            (19)                (15)             (20)             (14)              (47)            -60%                 (34)               (81)                -58%          (115)
 Investment income                                                                                                                         111                  97               88              103               113              -2%                 208                203                   2%           394
 Other revenue                                                                                                                              39                  40               34               44                37               5%                  79                 79                   0%           157
Subtotal revenue                                                                                                                           673                 652              616              673               665               1%               1,325              1,197                  11%         2,486
                                                                                                                                 1
 Realized/ unrealized gains (losses) on invested assets supporting insurance and investment contract liabilities                            12                 220              262               49                60             -80%                 232                 25                 828%           336
Total revenue                                                                                                                              685                 872              878              722               725              -6%               1,557              1,222                  27%         2,822
Contract benefits and expenses
To contractholders and beneficiaries
   Gross benefits and claims paid and change in insurance contract liabilities                                                             469                 618              651              569               548             -14%               1,087                892                   22%        2,112
   Ceded benefits and expenses and change in reinsurance assets                                                                            (11)                (13)             (31)               3               (36)            -69%                 (24)               (57)                 -58%          (85)
   Change in investment contract liabilities                                                                                                 -                   -                1               (2)                3            -100%                   -                  1                 -100%            -
 General expenses                                                                                                                          107                  93              122               97                87              23%                 200                160                   25%          379
 Investment expenses                                                                                                                        12                  11               10               11                 8              50%                  23                 18                   28%           39
 Commissions                                                                                                                                75                  75               78               71                65              15%                 150                118                   27%          267
 Other                                                                                                                                       6                   6                5                6                 6               0%                  12                 11                    9%           22
Total contract benefits and expenses                                                                                                       658                 790              836              755               681              -3%               1,448              1,143                   27%        2,734
Income (loss) before income taxes                                                                                                           27                  82               42              (33)               44             -39%                 109                 79                   38%           88
 Income tax (expense) recovery                                                                                                             (15)                (11)             (28)             (35)                7                 -                (26)                (3)                 767%          (66)
Net income (loss)                                                                                                                           12                  71               14              (68)               51             -76%                  83                 76                    9%           22
 Less net income (loss) attributed to non-controlling interest in subsidiaries                                                               9                  10               10               (5)                7              29%                  19                 12                   58%           17
 Less net income (loss) attributed to participating policyholders 2                                                                        (41)                 11               (6)             (38)               (4)            925%                 (30)                (7)                 329%          (51)
                                                             3
Net income (loss) attributed to shareholders                                                                                                44                   50                  10           (25)              48               -8%                 94                  71                 32%             56
1
    For fixed income assets supporting insurance and investment contract liabilities, equities supporting pass through products and derivatives related to variable annuity hedging programs, the impact of realized/unrealized gains (losses) on the assets is largely offset in the change
     in actuarial liabilities, included in contract benefits.
2
    The decrease in income attributed to participating policyholders for the quarter and third quarter of 2011 is primarily due to the impact of changes in actuarial assumptions.
3
    Year over year decrease is primarily due to less favourable policyholder related experience.

Sales - U.S. $ in millions
Total insurance sales 4                                                                                                                     98                 116              104               90                84              17%                 214                151                  42%           345
Wealth Management sales5,6                                                                                                                 849                 472              485              534               926              -8%               1,321              1,521                 -13%         2,540
4
    Consists of 100% of recurring premiums and 10% of both excess and single premiums.
5
    Sales for Wealth Management businesses are measured by premiums and deposits, and include mutual fund deposits, pension sales and investment linked sales.
6
    This line includes the 49% interest in Manulife TEDA.

Premiums and Deposits - U.S. $ in millions
Premiums                                                                                                                                   523                 515              494              526              515                2%               1,038                915                  13%         1,935
Investment contract deposits                                                                                                                 1                   -                -                -                -                  -                  1                  -                     -            -
Segregated fund deposits                                                                                                                   118                 116               86               92               88               34%                 234                175                  34%           353
Mutual fund deposits 7                                                                                                                     672                 284              368              361              749              -10%                 956              1,218                 -22%         1,947
Total premiums and deposits                                                                                                              1,314                 915              948              979            1,352               -3%               2,229              2,308                  -3%         4,235
7
    This line includes the 49% interest in Manulife TEDA.

Funds Under Management - U.S. $ in millions
 General fund                                                                                                                          11,340               11,151           10,420            9,947            9,718               17%              11,340              9,718                  17%        10,420
 Segregated funds                                                                                                                       2,456                2,518            2,261            2,218            2,511               -2%               2,456              2,511                  -2%         2,261
 Mutual funds 8                                                                                                                         2,831                2,691            2,724            2,767            2,987               -5%               2,831              2,987                  -5%         2,724
 Other funds                                                                                                                              272                  255              264              252              265                3%                 272                265                   3%           264
Total funds under management                                                                                                           16,899               16,615           15,669           15,184           15,481                9%              16,899             15,481                   9%        15,669
8
    This line includes the 49% interest in Manulife TEDA.

Changes in General, Segregated, Mutual and Other Funds Under Management - U.S. $ in millions
Beginning balance                                                                                                                      16,615               15,669           15,184           15,481           14,975               11%              15,669             14,558                   8%        14,558
 Premiums and deposits                                                                                                                  1,314                  915              948              979            1,352               -3%               2,229              2,308                  -3%         4,235
 Investment income (loss) 9                                                                                                                64                  555              390             (346)             174              -63%                 619                 (4)                    -           40
 Benefits and withdrawals                                                                                                                (755)                (639)            (646)            (600)          (1,066)             -29%              (1,394)            (1,463)                 -5%        (2,709)
 Other 10                                                                                                                                (339)                 115             (207)            (330)              46                  -               (224)                82                     -         (455)
Ending balance                                                                                                                         16,899               16,615           15,669           15,184           15,481                9%              16,899             15,481                   9%        15,669
9
    Investment income (loss) consists of gross investment income for the general fund and interest, dividends and net realized and unrealized gains and losses for the segregated funds, mutual funds and other funds.
10
     Other is comprised of all changes to the statement of income and the statement of financial position that are not specifically identified in the roll forward. These includes general expenses, investment expenses, taxes, changes in receivables and payables, transfers to/from other Business Units,
     impact of currency changes and changes in allocated capital. This includes deposits and withdrawals on externally managed funds which have not been included in premiums and deposits, and benefits and withdrawals.

Number of Agents
 Number of agents                                                                                                                      42,567               41,612           41,997           38,586           36,675               16%              42,567             36,675                  16%        41,997

Canadian $ in millions - Key Metrics
Net income (loss) attributed to shareholders                                                                                               45                   50               10              (24)              47               -4%                  95                 69                  38%            55
Sales - Insurance                                                                                                                          99                  116              106               89               81               22%                 215                147                  46%           342
Sales - Wealth management                                                                                                                 858                  473              496              523              897               -4%               1,331              1,483                 -10%         2,502
Total premiums and deposits                                                                                                             1,325                  917              969              960            1,306                1%               2,242              2,250                   0%         4,179
Total funds under management                                                                                                           17,221               16,603           15,941           15,766           14,930               15%              17,221             14,930                  15%        15,941


                                                                                                                                                       Page 12                                                                                                            ASIA - OTHER ASIA TERRITORIES
ASIA - JAPAN
(Unaudited)
                                                                                                                                                  2012                 2012                   2011                  2011                   2011          2012 Q2                   YTD                  YTD    YTD 2012         Fiscal
                                                                                                                                                    Q2                   Q1                     Q4                    Q3                     Q2            vs.                    2012                 2011      vs.             2011
                                                                                                                                                                                                                                                         2011 Q2                                               YTD 2011

Statements of Income - U.S. $ in millions
Revenue
 Premium income
   Gross premiums                                                                                                                                   938               1,075                    750                    678                   582                61%               2,013                1,177        71%          2,605
   Premiums ceded to reinsurers                                                                                                                      (7)                 (9)                    (6)                    (7)                   (4)               75%                 (16)                 (10)       60%            (23)
 Investment income                                                                                                                                   69                  66                     67                     61                    61                13%                 135                  120        13%            248
 Other revenue                                                                                                                                      114                 125                    114                    103                   109                 5%                 239                  223         7%            440
Subtotal revenue                                                                                                                                  1,114               1,257                    925                    835                   748                49%               2,371                1,510        57%          3,270
                                                                                                                                   1
 Realized/ unrealized gains (losses) on invested assets supporting insurance and investment contract liabilities                                    188                 (33)                    (8)                    52                    82               129%                 155                  (60)          -           (16)
Total revenue                                                                                                                                     1,302               1,224                    917                    887                   830                57%               2,526                1,450        74%          3,254
Contract benefits and expenses
To contractholders and beneficiaries
   Gross benefits and claims paid and change in insurance contract liabilities                                                                    1,487                  105                   552                  1,311                   731               103%               1,592                  933         71%         2,796
   Ceded benefits and expenses and change in reinsurance assets                                                                                       -                   (2)                   (6)                    (1)                   (1)                  -                 (2)                  (3)       -33%           (10)
   Change in investment contract liabilities                                                                                                         (1)                   1                     -                      -                     7                   -                  -                    2       -100%             2
 General expenses                                                                                                                                    99                   96                   102                     95                    93                 6%                 195                  180          8%           377
 Investment expenses                                                                                                                                  6                    5                     5                      4                     4                50%                  11                    8         38%            17
 Commissions                                                                                                                                        129                  107                    84                     90                    99                30%                 236                  185         28%           359
 Other                                                                                                                                                3                    5                     3                      4                     3                 0%                   8                    6         33%            13
Total contract benefits and expenses                                                                                                              1,723                  317                   740                  1,503                   936                84%               2,040                1,311         56%         3,554
Income (loss) before income taxes                                                                                                                  (421)                 907                   177                   (616)                 (106)              297%                 486                  139        250%          (300)
 Income tax (expense) recovery                                                                                                                       (4)                  16                    (6)                   (12)                   (3)               33%                  12                  (19)           -          (37)
                                                              2
Net income (loss) attributed to shareholders                                                                                                       (425)                 923                   171                   (628)                 (109)              290%                  498                 120       315%           (337)
1
    For fixed income assets supporting insurance and investment contract liabilities and derivatives related to variable annuity hedging programs, the impact of realized/ unrealized gains (losses) on the assets is largely offset in the change in actuarial liabilities, included in contract benefits.
2
    Year over year decrease is primarily driven by the direct impact of equity markets and interest rates and other investment related items.


Sales - U.S. $ in millions
Individual Insurance - New annualized premiums                                                                                                      238                  193                   144                    153                   220                 8%                  431                 393        10%           690
Wealth Management - Variable Annuities                                                                                                              157                  123                    98                    120                   111                41%                  280                 197        42%           415
Wealth Management - Fixed Annuities and mutual funds                                                                                                216                  355                   150                     50                    49               341%                  571                  99       477%           299

Premiums and Deposits - U.S. $ in millions
 Premiums                                                                                                                                           931               1,066                    744                    671                   578                61%               1,997                1,167        71%          2,582
 Investment contract deposits                                                                                                                         1                   -                      5                      -                     -                   -                  1                    -           -             5
 Segregated fund deposits                                                                                                                           156                 122                     98                    119                   111                41%                 278                  196        42%            413
 Mutual fund deposits                                                                                                                                 5                   5                      1                      3                     3                67%                  10                    3       233%              7
Total premiums and deposits                                                                                                                       1,093               1,193                    848                    793                   692                58%               2,286                1,366        67%          3,007

Funds Under Management - U.S. $ in millions
 General fund                                                                                                                                   13,720               12,514                 13,003                12,702                 11,916                15%              13,720              11,916         15%         13,003
 Segregated funds                                                                                                                               16,388               16,614                 16,724                16,596                 16,902                -3%              16,388              16,902         -3%         16,724
 Mutual funds                                                                                                                                       13                    9                      5                     5                      3               333%                  13                   3        333%              5
Total funds under management                                                                                                                    30,121               29,137                 29,732                29,303                 28,821                 5%              30,121              28,821          5%         29,732

Changes in General, Segregated and Mutual Funds Under Management - U.S. $ in millions
Beginning balance                                                                                                                               29,137               29,732                 29,303                28,821                 28,209                 3%              29,732              27,904          7%         27,904
   Premiums and deposits                                                                                                                         1,093                1,193                    848                   793                    692                58%               2,286               1,366         67%          3,007
   Investment income (loss) 3                                                                                                                     (397)               1,290                    348                  (833)                    37                   -                893                 224        299%           (261)
   General fund benefits and withdrawals                                                                                                          (280)                (299)                  (362)                 (236)                  (249)               12%                (579)               (457)        27%         (1,055)
   Segregated, mutual and other fund benefits and withdrawals                                                                                     (171)                (241)                  (159)                 (160)                  (194)              -12%                (412)               (466)       -12%           (785)
   Other4                                                                                                                                          739               (2,538)                  (246)                  918                    326               127%              (1,799)                250            -           922
Ending balance                                                                                                                                  30,121               29,137                 29,732                29,303                 28,821                 5%              30,121              28,821          5%         29,732
3
    Investment income consists of gross investment income (loss) for the general fund and includes interest, dividends and net realized and unrealized investment gains and losses for the segregated funds and mutual funds.
4
    Other is comprised of all changes to the statement of income and the statement of financial position that are not specifically identified in the roll forward. This includes general expenses, investment expenses, taxes, impact of currency changes, changes in receivables and payables, transfer to/from other
    business units and changes in allocated capital.
Number of Agents
 Number of agents                                                                                                                                 3,053               3,060                  3,155                  3,172                 3,200                -5%               3,053                3,200         -5%         3,155
Canadian $ in millions - Key Metrics
Net income (loss) attributed to shareholders                                                                                                      (430)                 924                    174                  (615)                  (105)              310%                 494                 120        312%           (321)
Sales - Insurance                                                                                                                                  241                  193                    148                   150                    212                14%                 434                 383         13%            681
Sales - Wealth management                                                                                                                          376                  479                    254                   167                    155               143%                 855                 289        196%            710
Total premiums and deposits                                                                                                                      1,104                1,194                    867                   779                    670                65%               2,298               1,333         72%          2,979
Total funds under management                                                                                                                    30,696               29,110                 30,238                30,443                 27,791                10%              30,696              27,791         10%         30,238

Yen in millions - Key Metrics
Net income (loss) attributed to shareholders                                                                                                   (34,023)             73,148                 13,217               (48,712)                (8,845)               285%             39,125                9,955        293%        (25,540)
Sales - Individual Insurance                                                                                                                    19,120              15,242                 11,184                11,861                 17,926                  7%             34,362               32,163          7%         55,208
Sales - Wealth Management                                                                                                                       29,785              37,919                 19,178                13,197                 13,076                128%             67,704               24,237        179%         56,612
Total premiums and deposits                                                                                                                     87,392              94,546                 65,453                61,563                 56,436                 55%            181,938              111,873         63%        238,889
Total funds under management                                                                                                                 2,403,730           2,401,905              2,288,990             2,256,697              2,323,626                  3%          2,403,730            2,323,626          3%      2,288,990


                                                                                                                                                                 Page 13                                                                                                                                                   ASIA - JAPAN
CANADA
(Canadian $ in millions, unaudited)
                                                                                                                                                       2012                2012              2011              2011              2011          2012 Q2                 YTD               YTD     YTD 2012     Fiscal
                                                                                                                                                         Q2                  Q1                Q4                Q3                Q2            vs.                  2012              2011       vs.         2011
                                                                                                                                                                                                                                               2011 Q2                                           YTD 2011

Statements of Income
Revenue
 Premium income
   Gross premiums                                                                                                                                     2,518               2,211             2,240             2,114             2,149               17%              4,729              4,364         8%      8,718
   Premiums ceded to reinsurers                                                                                                                      (1,610)             (1,343)           (1,277)           (1,207)           (1,167)              38%             (2,953)            (2,340)               (4,824)
 Investment income                                                                                                                                      743                 750               759               747               746                0%              1,493              1,476         1%      2,982
 Other revenue                                                                                                                                          893                 551               497               438               504               77%              1,444              1,058        36%      1,993
Subtotal revenue                                                                                                                                      2,544               2,169             2,219             2,092             2,232               14%              4,713              4,558         3%      8,869
                                                                                                                                1
 Realized/ unrealized gains (losses) on invested assets supporting insurance and investment contract liabilities                                      1,267                (714)              999             1,960               538              136%                553                114       385%      3,073
Total revenue                                                                                                                                         3,811               1,455             3,218             4,052             2,770               38%              5,266              4,672        13%     11,942
Contract benefits and expenses
To contractholders and beneficiaries
   Gross benefits and claims paid and change in insurance contract liabilities                                                                        3,875               1,434             3,212             4,150             2,499               55%              5,309              3,970        34%     11,332
   Ceded benefits and expenses and change in reinsurance assets                                                                                      (1,240)             (1,104)           (1,101)             (979)             (823)              51%             (2,344)            (1,813)       29%     (3,893)
   Change in investment contract liabilities                                                                                                             (1)                 (7)               (1)               (2)               (3)             -67%                 (8)                 -           -        (3)
 General expenses                                                                                                                                       328                 313               317               297               293               12%                641                589         9%      1,203
 Investment expenses                                                                                                                                     84                  83                80                80                81                4%                167                158         6%        318
 Commissions                                                                                                                                            316                 326               323               292               302                5%                642                634         1%      1,249
 Other                                                                                                                                                  156                 115               114               196               116               34%                271                212        28%        522
Total contract benefits and expenses                                                                                                                  3,518               1,160             2,944             4,034             2,465               43%              4,678              3,750        25%     10,728
Income before income taxes                                                                                                                              293                 295               274                18               305               -4%                588                922       -36%      1,214
 Income tax (expense) recovery                                                                                                                          (60)                 26               (22)               16               (36)              67%                (34)              (142)      -76%       (148)
Net income                                                                                                                                              233                 321               252                34               269              -13%                554                780       -29%      1,066
 Less net income attributed to participating policyholders                                                                                               10                   4                 6               126                 5              100%                 14                  7       100%        139
Net income (loss) attributed to shareholders 2,3                                                                                                        223                 317               246                (92)             264               -16%               540                773       -30%       927
1
    For fixed income assets supporting insurance and investment contract liabilities, equities supporting pass through products and derivatives related to variable annuity hedging programs, the impact of realized/unrealized gains (losses) on the assets is largely offset in the change
    in actuarial liabilities, included in contract benefits.
2
    See the Q2 press release for a description of Q2 2012 results compared to Q2 2011.
3
    The International Group Program business unit was moved from U.S Division in 2012. Prior period results have been restated to reflect this change.

Source of Earnings
Expected profit from in-force business                                                                                                                  234                 230               215               227               232                 1%               464                467        -1%        909
Impact of new business                                                                                                                                  (53)                (49)              (80)              (55)              (41)               29%              (102)               (82)       24%       (217)
Experience gains (losses)                                                                                                                              (125)               (101)               89              (290)               53                   -             (226)               425           -       224
Management actions and changes in assumptions                                                                                                           181                 162                 8                 -                12                 nm               343                 12         nm         20
Earnings on surplus funds                                                                                                                                65                  63                55                56                55                18%               128                110        16%        221
Other                                                                                                                                                   (19)                (14)              (19)              (46)              (11)               73%               (33)               (17)       94%        (82)
Income (loss) before income taxes                                                                                                                       283                 291               268              (108)              300                -6%               574                915       -37%      1,075
Income tax (expense) recovery                                                                                                                           (60)                 26               (22)               16               (36)               67%               (34)              (142)      -76%       (148)
Net income (loss) attributed to shareholders                                                                                                            223                 317               246               (92)              264               -16%               540                773       -30%        927

Premiums and Deposits
Premiums                                                                                                                                                908                 868               963               907               982                -8%             1,776              2,024       -12%      3,894
Segregated fund deposits                                                                                                                              1,237               1,695             1,536             1,130             1,240                 0%             2,932              2,827         4%      5,493
Mutual fund deposits                                                                                                                                    382                 478               287               423               691               -45%               860              1,286       -33%      1,996
ASO premium equivalents                                                                                                                                 725                 715               666               666               663                 9%             1,440              1,347         7%      2,679
Group Benefits ceded                                                                                                                                  1,313                 970               941               931               933                41%             2,283              1,882        21%      3,754
Total premiums and deposits                                                                                                                           4,565               4,726             4,393             4,057             4,509                 1%             9,291              9,366        -1%     17,816

Funds Under Management
General fund                                                                                                                                        77,422              74,697            73,926            72,522             68,435                13%           77,422             68,435         13%     73,926
Segregated funds                                                                                                                                    42,380              43,083            40,826            38,842             41,606                 2%           42,380             41,606          2%     40,826
Mutual funds, including assets held by segregated funds                                                                                             18,736              18,962            17,708            16,866             18,105                 3%           18,736             18,105          3%     17,708
Less: Mutual funds held by segregated funds                                                                                                        (11,070)            (11,093)          (10,333)           (9,703)           (10,310)                7%          (11,070)           (10,310)         7%    (10,333)
Total funds under management                                                                                                                       127,468             125,649           122,127           118,527            117,836                 8%          127,468            117,836          8%    122,127



                                                                                                                                                                     Page 14                                                                                                                                CANADA
CANADA - INDIVIDUAL INSURANCE
(Canadian $ in millions, unaudited)
                                                                                                                                                 2012                 2012             2011            2011             2011         2012 Q2                   YTD                YTD          YTD 2012     Fiscal
                                                                                                                                                   Q2                   Q1               Q4              Q3               Q2           vs.                    2012               2011            vs.        2011
                                                                                                                                                                                                                                     2011 Q2                                                   YTD 2011

Statements of Income
Revenue
 Premium income
   Gross premiums                                                                                                                               1,083                1,039            1,116           1,017            1,042                4%               2,122               2,038               4%     4,171
   Premiums ceded to reinsurers                                                                                                                  (284)                (359)            (318)           (263)            (218)              30%                (643)               (426)             51%    (1,007)
 Investment income                                                                                                                                279                  287              299             297              298               -6%                 566                 584              -3%     1,180
 Other revenue                                                                                                                                     19                   21                6              12                8              138%                  40                  16             150%        34
Subtotal revenue                                                                                                                                1,097                  988            1,103           1,063            1,130               -3%               2,085               2,212              -6%     4,378
                                                                                                                                  1
 Realized/ unrealized gains (losses) on invested assets supporting insurance and investment contract liabilities                                  558                  (73)             693             841              225              148%                 485                 175             177%     1,709
Total revenue                                                                                                                                   1,655                  915            1,796           1,904            1,355               22%               2,570               2,387               8%     6,087
Contract benefits and expenses
To contractholders and beneficiaries
   Gross benefits and claims paid and change in insurance contract liabilities                                                                  1,646                  974            1,591           1,747            1,133               45%               2,620               1,682              56%     5,020
   Ceded benefits and expenses and change in reinsurance assets                                                                                  (466)                (346)            (362)           (266)            (106)             340%                (812)               (352)            131%      (980)
 General expenses                                                                                                                                 102                  102              104              96               93               10%                 204                 187               9%       387
 Investment expenses                                                                                                                               19                   18               18              16               19                0%                  37                  34               9%        68
 Commissions                                                                                                                                      141                  142              146             124              122               16%                 283                 255              11%       525
 Other                                                                                                                                             19                   20               23              21               19                0%                  39                  38               3%        82
Total contract benefits and expenses                                                                                                            1,461                  910            1,520           1,738            1,280               14%               2,371               1,844              29%     5,102
Income before income taxes                                                                                                                        194                    5              276             166               75              159%                 199                 543             -63%       985
 Income tax (expense) recovery                                                                                                                    (40)                  49              (52)             (3)               1                  -                  9                 (95)                -     (150)
Net income                                                                                                                                        154                   54              224             163               76              103%                 208                 448             -54%       835
 Less net income attributed to participating policyholders 2                                                                                       10                    4                6             126                5              100%                  14                   7             100%       139
Net income attributed to shareholders 3,4                                                                                                         144                    50             218               37               71             103%                 194                 441             -56%      696
1
    For fixed income assets supporting insurance and investment contract liabilities and for equities supporting pass through products, the impact of realized/ unrealized gains (losses) on the assets is largely offset in the change in actuarial liabilities, included in contract benefits.
2
    The increase in income attributed to participating policyholders in the third quarter of 2011 is primarily due to the impact of changes in actuarial assumptions.
3
    Year over year increase reflects the one time impact of the planned recapture of a significant reinsurance treaty, partially offset by unfavourable investment and market related experience.
4
    The International Group Program business unit was moved from U.S Division in 2012. Prior period results have been restated to reflect this change.

Sales
New annualized premium sales
                          5
 Life and living benefits                                                                                                                           49                   46               58              48               50              -2%                  95                 104              -9%      210
 Other 6                                                                                                                                            19                   16               16              16               17              12%                  35                  34               3%       66
Total new annualized premium sales                                                                                                                  68                   62               74              64               67               1%                 130                 138              -6%      276
                           7
Single premium sales                                                                                                                                56                   77               81              76               43              30%                 133                  98              36%      255
5
  Sales of life and living benefits consist of 100% of recurring premiums and 10% of excess premiums in accordance with guidance from LIMRA International. Life and living benefits sales include products sold through all individual distribution sources, including Affinity Markets. Living benefits
  include disability, critical illness and long-term care products.
6
  Other includes products such as health, dental and mortgage creditor insurance.
7
  Single premium sales include travel insurance, credit card balance coverage and auto creditor insurance.

Premiums and Deposits
 Premiums                                                                                                                                         799                   680             798              754             824               -3%               1,479               1,612              -8%     3,164
 Segregated fund deposits                                                                                                                           2                     1               2                2               1              100%                   3                   3               0%         7
 ASO premium equivalents                                                                                                                           11                    12              15               12              13              -15%                  23                  26             -12%        53
Total premiums and deposits                                                                                                                       812                   693             815              768             838               -3%               1,505               1,641              -8%     3,224

Funds Under Management
 General fund                                                                                                                                  30,791               29,295           28,853          27,938           26,548               16%              30,791             26,548               16%    28,853
 Segregated funds                                                                                                                                 180                  195              187             184              211              -15%                 180                211              -15%       187
Total funds under management                                                                                                                   30,971               29,490           29,040          28,122           26,759               16%              30,971             26,759               16%    29,040

Changes in General and Segregated Funds Under Management
Beginning balance                                                                                                                              29,490               29,040           28,122          26,759           26,257               12%              29,040             25,764               13%    25,764
 Premiums and deposits                                                                                                                            801                  681              800             756              825               -3%               1,482              1,615               -8%     3,171
 Investment income 8                                                                                                                              826                  227            1,001           1,114              513               61%               1,053                757               39%     2,872
 Benefits and withdrawals                                                                                                                        (385)                (407)            (369)           (341)            (451)             -15%                (792)              (917)             -14%    (1,627)
 Other 9                                                                                                                                          239                  (51)            (514)           (166)            (385)                 -                188               (460)                 -   (1,140)
Ending balance                                                                                                                                 30,971               29,490           29,040          28,122           26,759               16%              30,971             26,759               16%    29,040
8
    Investment income consists of gross investment income for the general fund and interest, dividends and net realized and unrealized gains and losses for the segregated funds.
9
    Other is comprised of all changes to the statement of income and the statement of financial position that are not specifically identified in the roll forward. These include general expenses, investment expenses, taxes, changes in receivables and payables, transfers to/from other business
    units and changes in allocated capital.



                                                                                                                                                               Page 15                                                                                                     CANADA - INDIVIDUAL INSURANCE
CANADA - INDIVIDUAL WEALTH MANAGEMENT
(Canadian $ in millions, unaudited)
                                                                                                                                                   2012                2012             2011              2011              2011         2012 Q2                   YTD                 YTD        YTD 2012         Fiscal
                                                                                                                                                     Q2                  Q1               Q4                Q3                Q2           vs.                    2012                2011          vs.             2011
                                                                                                                                                                                                                                         2011 Q2                                                  YTD 2011



Statements of Income
Revenue
 Premium income
   Gross premiums                                                                                                                                    67                  86              109               104                95              -29%                 153                 231               -34%       444
 Investment income                                                                                                                                  338                 334              331               323               319                6%                 672                 632                 6%     1,286
 Other revenue                                                                                                                                      300                 300              282               288               297                1%                 600                 596                 1%     1,166
Subtotal revenue                                                                                                                                    705                 720              722               715               711               -1%               1,425               1,459                -2%     2,896
                                                                                                                                1
 Realized/ unrealized gains (losses) on invested assets supporting insurance and investment contract liabilities                                    603                (633)             207               933               240              151%                 (30)                (81)              -63%     1,059
Total revenue                                                                                                                                     1,308                  87              929             1,648               951               38%               1,395               1,378                 1%     3,955
Contract benefits and expenses
To contractholders and beneficiaries
  Gross benefits and claims paid and change in insurance contract liabilities                                                                       904                (534)             635             1,415               474               91%                 370                 448               -17%     2,498
   Change in investment contract liabilities                                                                                                         (1)                 (7)              (1)               (2)               (3)             -67%                  (8)                  -                   -       (3)
 General expenses                                                                                                                                    99                  86               91                85                85               16%                 185                 169                 9%       345
 Investment expenses                                                                                                                                 50                  51               48                49                48                4%                 101                  97                 4%       194
 Commissions                                                                                                                                        129                 138              134               127               137               -6%                 267                 292                -9%       553
 Other                                                                                                                                              107                  74               69               155                78               37%                 181                 133                36%       357
Total contract benefits and expenses                                                                                                              1,288                (192)             976             1,829               819               57%               1,096               1,139                -4%     3,944
Income (loss) before income taxes                                                                                                                    20                 279              (47)             (181)              132              -85%                 299                 239                25%        11
 Income tax (expense) recovery                                                                                                                       (5)                (39)              30                26               (23)             -78%                 (44)                (35)               26%        21
Net income (loss) attributed to shareholders 2                                                                                                        15                240              (17)             (155)              109              -86%                 255                 204               25%         32
1
    For fixed income assets supporting insurance and investment contract liabilities, equities supporting pass through products and derivatives related to variable annuity hedging programs, the impact of realized/unrealized gains (losses) on the assets is largely offset in the change in
    actuarial liabilities, included in contract benefits.
2
    Year over year decrease reflects the impact of unfavourable investment and market related experience, driven by interest rate volatility.


Premiums and Deposits
 Premiums                                                                                                                                            67                  86              109               104                95              -29%                 153                 231               -34%        444
 Mutual fund gross deposits 3                                                                                                                       844               1,030              748               722               964              -12%               1,874               2,328               -20%      3,798
 Variable annuity segregated fund deposits                                                                                                          563                 618              870               531               585               -4%               1,181               1,337               -12%      2,738
 Less: deposits to mutual funds from proprietary segregated fund products                                                                          (462)               (552)            (461)             (299)             (273)              69%              (1,014)             (1,042)               -3%     (1,802)
Total premiums and deposits                                                                                                                       1,012               1,182            1,266             1,058             1,371              -26%               2,194               2,854               -23%     5,178
3
    Mutual fund gross deposits include retail deposits as well as deposits from third party institutional sales and sales of proprietary segregated fund products.


Manulife Bank lending volumes4                                                                                                                    1,329               1,058            1,204             1,172             1,215                 9%              2,387               2,293                4%      4,669
4
    Manulife Bank lending volumes represent bank loans and mortgages authorized in the period.

Funds Under Management
 General fund - Manulife Bank                                                                                                                    21,108               20,819         19,976            20,213            19,105                10%              21,108             19,105                10%      19,976
 General fund - Other                                                                                                                            13,742               13,004         13,464            13,224            11,876                16%              13,742             11,876                16%      13,464
 Segregated funds                                                                                                                                25,007               25,588         24,692            23,576            25,358                -1%              25,007             25,358                -1%      24,692
 Mutual funds, including assets held by segregated funds                                                                                         18,736               18,962         17,708            16,866            18,105                 3%              18,736             18,105                 3%      17,708
 Less: Mutual funds held by segregated funds                                                                                                    (11,070)             (11,093)       (10,333)           (9,703)          (10,310)                7%             (11,070)           (10,310)                7%     (10,333)
Total funds under management                                                                                                                     67,523               67,280         65,507            64,176            64,134                 5%              67,523             64,134                 5%      65,507

Changes in General, Segregated and Mutual Funds Under Management
Beginning balance                                                                                                                                67,280              65,507          64,176            64,134            64,004                 5%              65,507             62,459                  5%    62,459
  Premiums                                                                                                                                        1,012               1,182           1,266             1,058             1,371               -26%               2,194              2,854                -23%     5,178
  Bank deposits                                                                                                                                     399                 414            (521)            1,122               509               -22%                 813              1,109                -27%     1,710
  Investment income (loss) 5                                                                                                                        232               1,267           1,628            (1,191)              (22)                  -              1,499                929                 61%     1,366
  General fund benefits and withdrawals                                                                                                            (361)               (433)           (370)             (318)             (322)               12%                (794)              (673)                18%    (1,361)
  Segregated fund withdrawals                                                                                                                      (519)               (600)           (436)             (432)             (588)              -12%              (1,119)            (1,272)               -12%    (2,140)
  Mutual fund withdrawals                                                                                                                          (325)               (370)           (307)             (299)             (304)                7%                (695)              (731)                -5%    (1,337)
  Other 6                                                                                                                                          (195)                313              71               102              (514)              -62%                 118               (541)                   -     (368)
Ending balance                                                                                                                                   67,523              67,280          65,507            64,176            64,134                 5%              67,523             64,134                  5%    65,507
5
    Investment income for segregated and mutual funds includes net realized and unrealized investment gains and losses, interest and dividend revenue.
6
    Other for the general fund is comprised of all changes to the statement of income and the statement of financial position that are not specifically identified in the roll forward. These include general expenses, investment expenses, taxes, changes in receivables and payables and changes in
    allocated capital. Other for segregated and mutual funds includes expenses and transfers to/from other business units.



                                                                                                                                                                 Page 16                                                                               CANADA - INDIVIDUAL WEALTH MANAGEMENT
CANADA - GROUP BUSINESSES
(Canadian $ in millions, unaudited)
                                                                                                                                                      2012                 2012             2011              2011             2011      2012 Q2             YTD                YTD          YTD 2012          Fiscal
                                                                                                                                                        Q2                   Q1               Q4                Q3               Q2        vs.              2012               2011            vs.              2011
                                                                                                                                                                                                                                         2011 Q2                                             YTD 2011

Statements of Income
Revenue
 Premium income
   Gross premiums                                                                                                                                    1,368                1,086            1,015               993            1,012         35%            2,454              2,095                 17%        4,103
   Premiums ceded to reinsurers                                                                                                                     (1,326)                (984)            (959)             (944)            (949)        40%           (2,310)            (1,914)                21%       (3,817)
 Investment income                                                                                                                                     126                  129              129               127              129         -2%              255                260                 -2%          516
 Other revenue                                                                                                                                         574                  230              209               138              199        188%              804                446                 80%          793
Subtotal revenue                                                                                                                                       742                  461              394               314              391         90%            1,203                887                 36%        1,595
                                                                                                                                    1
 Realized/ unrealized gains (losses) on invested assets supporting insurance and investment contract liabilities                                       106                   (8)              99               186               73         45%               98                 20                390%          305
Total revenue                                                                                                                                          848                  453              493               500              464         83%            1,301                907                 43%        1,900
Contract benefits and expenses
To contractholders and beneficiaries
   Gross benefits and claims paid and change in insurance contract liabilities                                                                       1,325                  994               986              988              892         49%            2,319              1,840                 26%        3,814
   Ceded benefits and expenses and change in reinsurance assets                                                                                       (774)                (758)             (739)            (713)            (717)         8%           (1,532)            (1,461)                 5%       (2,913)
 General expenses                                                                                                                                      127                  125               122              116              115         10%              252                233                  8%          471
 Investment expenses                                                                                                                                    15                   14                14               15               14          7%               29                 27                  7%           56
 Commissions                                                                                                                                            46                   46                43               41               43          7%               92                 87                  6%          171
 Other                                                                                                                                                  30                   21                22               20               19         58%               51                 41                 24%           83
Total contract benefits and expenses                                                                                                                   769                  442               448              467              366        110%            1,211                767                 58%        1,682
Income before income taxes                                                                                                                              79                   11                45               33               98        -19%               90                140                -36%          218
 Income tax recovery (expense)                                                                                                                         (15)                  16                 -               (7)             (14)         7%                1                (12)                   -         (19)
Net income attributed to shareholders 2                                                                                                                 64                    27               45                26                 84      -24%              91                128                -29%         199
1
    For assets supporting insurance and investment contract liabilities, the impact of realized/ unrealized gains (losses) on the assets is largely offset in the change in actuarial liabilities, included in contract benefits.
2
    Year over year decrease reflects the impact of lower interest rates.

Sales
Group Benefits3                                                                                                                                        374                  248                90               85               81        362%              622                181                244%          356
Group Retirement Solutions - new annualized premium sales                                                                                               33                   91                23               74               71        -54%              124                139                -11%          236
Group Retirement Solutions - single premium sales                                                                                                       66                  465               131              115              126        -48%              531                455                 17%          701
Total sales                                                                                                                                            473                  804               244              274              278         70%            1,277                775                 65%        1,293
3
    Sales for the Group Benefits business are measured by new annualized premiums (including amendments) and single premium sales, including ASO premium equivalents.

Premiums and Deposits
 Premiums                                                                                                                                               42                  102               56                49               63         -33%             144                181                -20%          286
 Segregated fund deposits                                                                                                                              672                1,076              664               597              654           3%           1,748              1,487                 18%        2,748
 ASO premium equivalents                                                                                                                               714                  703              651               654              650          10%           1,417              1,321                  7%        2,626
Group Benefits ceded                                                                                                                                 1,313                  970              941               931              933          41%           2,283              1,882                 21%        3,754
Total premiums and deposits                                                                                                                          2,741                2,851            2,312             2,231            2,300          19%           5,592              4,871                 15%        9,414

Funds Under Management
 General funds                                                                                                                                     11,781               11,579            11,633           11,147            10,906          8%          11,781              10,906                  8%       11,633
 Segregated funds                                                                                                                                  17,193               17,300            15,947           15,082            16,037          7%          17,193              16,037                  7%       15,947
Total funds under management                                                                                                                       28,974               28,879            27,580           26,229            26,943          8%          28,974              26,943                  8%       27,580

Changes in General and Segregated Funds Under Management
Beginning balance                                                                                                                                  28,879               27,580            26,229           26,943            26,693          8%          27,580              26,228                  5%       26,228
 Premiums and deposits                                                                                                                                714                1,178               720              646               717          0%           1,892               1,668                 13%        3,034
 Investment income (loss)4                                                                                                                           (100)                 907               821             (812)                8            -            807                 499                 62%          508
 Benefits and withdrawals                                                                                                                            (448)                (565)             (408)            (363)             (406)        10%          (1,013)               (887)                14%       (1,658)
 Other 5                                                                                                                                              (71)                (221)              218             (185)              (69)         3%            (292)               (565)               -48%         (532)
Ending balance                                                                                                                                     28,974               28,879            27,580           26,229            26,943          8%          28,974              26,943                  8%       27,580
4
    Investment income (loss) consists of gross investment income for the general fund and interest, dividends and net realized and unrealized gains and losses for the segregated funds.
5
    Other is comprised of all changes to the statement of income and the statement of financial position that are not specifically identified in the roll forward. These includes general expenses, investment expenses, taxes, changes in receivables and payables, transfers to/from other Business Units
    and changes in allocated capital.




                                                                                                                                                                    Page 17                                                                                                     CANADA - GROUP BUSINESSES
U.S. DIVISION
(Unaudited)
                                                                                                                                                2012              2012              2011              2011               2011          2012 Q2                 YTD                YTD          YTD 2012         Fiscal
                                                                                                                                                  Q2                Q1                Q4                Q3                 Q2            vs.                  2012               2011             vs.           2011
                                                                                                                                                                                                                                       2011 Q2                                                 YTD 2011


Statements of Income - U.S. $ in millions
Revenue
 Premium income
   Gross premiums                                                                                                                              1,978              2,013             2,263            2,145              2,037               -3%              3,991              4,354               -8%         8,762
   Premiums ceded to reinsurers1                                                                                                                (319)              (310)             (367)            (312)              (316)               1%               (629)              (596)               6%        (1,275)
 Investment income                                                                                                                             1,313              1,368             1,413            1,356              1,309                0%              2,681              2,690                0%         5,459
 Other revenue                                                                                                                                   901                901               875              906                932               -3%              1,802              1,835               -2%         3,616
Subtotal revenue                                                                                                                               3,873              3,972             4,184            4,095              3,962               -2%              7,845              8,283               -5%        16,562
                                                                                                                                2
 Realized/ unrealized gains (losses) on invested assets supporting insurance and investment contract liabilities                               5,686             (3,655)              (15)          11,512              1,531              271%              2,031                788              158%        12,285
Total revenue                                                                                                                                  9,559                317             4,169           15,607              5,493               74%              9,876              9,071                9%        28,847
Contract benefits and expenses
To contractholders and beneficiaries
   Gross benefits and claims paid and change in insurance contract liabilities                                                                 8,887             (1,222)            3,499           17,486              4,115              116%              7,665              5,830               31%        26,815
   Ceded benefits and expenses and change in reinsurance assets1                                                                                (515)              (249)           (1,085)          (1,166)              (292)              76%               (764)              (496)              54%        (2,747)
   Change in investment contract liabilities                                                                                                      17                 20                16               17                 24              -29%                 37                 61              -39%            94
 General expenses                                                                                                                                318                319               353              321                319                0%                637                632                1%         1,306
 Investment expenses                                                                                                                             161                158               174              155                155                4%                319                306                4%           635
 Commissions                                                                                                                                     405                416               438              424                433               -6%                821                893               -8%         1,755
 Other                                                                                                                                            42                 41                48               37                 94              -55%                 83                134              -38%           219
Total contract benefits and expenses                                                                                                           9,315               (517)            3,443           17,274              4,848               92%              8,798              7,360               20%        28,077
Income (loss) before income taxes                                                                                                                244                834               726           (1,667)               645              -62%              1,078              1,711              -37%           770
 Income tax (expense) recovery                                                                                                                   (70)              (260)             (233)             619               (202)             -65%               (330)              (542)             -39%          (156)
Net income (loss) attributed to shareholders 3                                                                                                   174                574               493           (1,048)               443              -61%                748              1,169              -36%           614
1
    On June 29, 2012, the Company entered into a coinsurance agreement to insure 67% of the Company's book value of its fixed deferred annuity business. Under the terms of the agreement, the Company will maintain responsibility for servicing of the policies and managing some of
    the assets and has maintained 10% of the risk. For presentation in the Statistical Information Package, the $5,372 premiums ceded as a result of this agreement have been shown net with the change in reinsurance assets line.
2
    For fixed income assets supporting insurance and investment contract liabilities and for equities supporting pass through products and derivatives related to variable annuity hedging programs, the impact of realized/unrealized gains (losses) on the assets is largely offset in the
    change in actuarial liabilities, included in contract benefits. The gains (losses) primarily relate to fair value movements on bonds and derivatives.
3
    See the Q2 press release for a description of Q2 2012 results compared to Q2 2011.


Premiums and Deposits - U.S. $ in millions
Premiums                                                                                                                                       1,659              1,703             1,896             1,833             1,721                -4%             3,362              3,758              -11%         7,487
Investment contract deposits                                                                                                                      27                 56               101                27                42               -36%                83                139              -40%           267
Segregated fund deposits                                                                                                                       3,835              4,204             3,615             3,679             3,603                 6%             8,039              7,662                5%        14,956
Mutual fund deposits                                                                                                                           3,073              3,115             2,413             2,853             3,368                -9%             6,188              6,831               -9%        12,097
Total premiums and deposits                                                                                                                    8,594              9,078             8,025             8,392             8,734                -2%            17,672             18,390               -4%        34,807

Funds Under Management - U.S. $ in millions
General fund                                                                                                                                 113,323           110,974           113,018           111,558             98,608                15%           113,323            98,608                15%       113,018
Segregated funds                                                                                                                             132,891           137,285           127,415           120,941            136,772                -3%           132,891           136,772                -3%       127,415
Mutual funds                                                                                                                                  38,185            38,308            34,475            32,433             36,999                 3%            38,185            36,999                 3%        34,475
Total funds under management                                                                                                                 284,399           286,567           274,908           264,932            272,379                 4%           284,399           272,379                 4%       274,908

Canadian $ in millions - Summary Statements of Income and Key Metrics
Revenue                                                                                                                                        9,659               317             4,266            15,305              5,318               82%              9,976             8,844                13%        28,415
Total policy benefits and expenses                                                                                                             9,410              (516)            3,521            16,940              4,694              100%              8,894             7,169                24%        27,630
Net income (loss) attributed to shareholders                                                                                                     177               574               505            (1,028)               429              -59%                751             1,144               -34%           621
Total premiums and deposits                                                                                                                    8,684             9,089             8,210             8,231              8,454                3%             17,773            17,970                -1%        34,411
Total funds under management                                                                                                                 289,832           286,310           279,583           275,240            262,656               10%            289,832           262,656                10%       279,583


                                                                                                                                                              Page 18                                                                                                                                     U.S DIVISION
U.S. DIVISION (CONT'D)
(Unaudited)
                                                2012       2012    2011     2011     2011    2012 Q2     YTD      YTD       YTD 2012          Fiscal
                                                  Q2         Q1      Q4       Q3       Q2      vs.      2012     2011          vs.             2011
                                                                                             2011 Q2                        YTD 2011


U.S INSURANCE
Source of Earnings - U.S. $ in millions
Expected profit from in-force business           164        186     181      173      168       -2%      350       325             8%           679
Impact of new business                           (30)       (36)    (77)     (47)     (16)      88%      (66)      (32)          106%          (156)
Experience gains (losses)                        499       (321)    531     (327)     240      108%      178       651           -73%           855
Management actions and changes in assumptions      -          -      (4)       -        -          -       -         -               -           (4)
Earnings on surplus funds                         78         78      70       72       72        8%      156       143             9%           285
Other                                            (13)         2     (41)       8        3          -     (11)      (10)           10%           (43)
Income (loss) before income taxes                698        (91)    660     (121)     467       49%      607     1,077           -44%         1,616
 Income tax (expense) recovery                  (250)        43    (241)      57     (158)      58%     (207)     (359)          -42%          (543)
Net income (loss) attributed to shareholders     448        (48)    419      (64)     309       45%      400       718           -44%         1,073




U.S WEALTH MANAGEMENT
Source of Earnings - U.S. $ in millions
Expected profit from in-force business           175        183    162        197    207       -15%      358      406            -12%           765
Impact of new business                           (38)       (37)   (38)       (45)   (52)      -27%      (75)     (89)           -16%          (172)
Experience gains (losses)                       (605)       734    (83)    (1,726)   (21)        nm      129      232            -44%        (1,577)
Management actions and changes in assumptions    (39)        (1)   (20)         -      -           -     (40)      (2)             nm           (22)
Earnings on surplus funds                         46         46     42         42     43         7%       92       85              8%           169
Other                                              7          -      3        (14)     1       600%        7        2            250%            (9)
Income (loss) before income taxes               (454)       925     66     (1,546)   178           -     471      634            -26%          (846)
 Income tax (expense) recovery                   180       (303)     8        562    (44)          -    (123)    (183)           -33%           387
Net income (loss) attributed to shareholders    (274)       622     74       (984)   134           -     348      451            -23%          (459)




U.S DIVISION
Source of Earnings - U.S. $ in millions
Expected profit from in-force business           339        369     343       370     375       -10%      708      731            -3%         1,444
Impact of new business                           (68)       (73)   (115)      (92)    (68)        0%     (141)    (121)           17%          (328)
Experience gains (losses)                       (106)       413     448    (2,053)    219           -     307      883           -65%          (722)
Management actions and changes in assumptions    (39)        (1)    (24)        -       -           -     (40)      (2)            nm           (26)
Earnings on surplus funds                        124        124     112       114     115         8%      248      228             9%           454
Other                                             (6)         2     (38)       (6)      4           -      (4)      (8)          -50%           (52)
Income (loss) before income taxes                244        834     726    (1,667)    645       -62%    1,078    1,711           -37%           770
 Income tax (expense) recovery                   (70)      (260)   (233)      619    (202)      -65%     (330)    (542)          -39%          (156)
Net income (loss) attributed to shareholders     174        574     493    (1,048)    443       -61%      748    1,169           -36%           614




                                                        Page 19                                                           U.S DIVISION (CONT'D)
U.S. DIVISION - JOHN HANCOCK LIFE
(Unaudited)
                                                                                                                                                    2012               2012              2011              2011               2011          2012 Q2                YTD              YTD            YTD 2012    Fiscal
                                                                                                                                                      Q2                 Q1                Q4                Q3                 Q2            vs.                 2012             2011               vs.       2011
                                                                                                                                                                                                                                            2011 Q2                                                YTD 2011

Statements of Income - U.S. $ in millions
Revenue
 Premium income
   Gross premiums                                                                                                                                  1,238              1,224             1,335              1,283             1,235                0%             2,462            2,612                 -6%    5,230
   Premiums ceded to reinsurers                                                                                                                     (314)              (310)             (367)              (311)             (315)               0%              (624)            (595)                 5%   (1,273)
 Investment income                                                                                                                                   611                634               613                597               603                1%             1,245            1,213                  3%    2,423
 Other revenue                                                                                                                                       175                173               173                192               172                2%               348              336                  4%      701
Subtotal revenue                                                                                                                                   1,710              1,721             1,754              1,761             1,695                1%             3,431            3,566                 -4%    7,081
 Realized/ unrealized gains (losses) on invested assets supporting insurance and investment contract liabilities 1                                 1,790               (865)              360              3,421               437              310%               925              335                176%    4,116
Total revenue                                                                                                                                      3,500                856             2,114              5,182             2,132               64%             4,356            3,901                 12%   11,197
Contract benefits and expenses
To contractholders and beneficiaries
   Gross benefits and claims paid and change in insurance contract liabilities                                                                     3,082                764             2,615              5,639             1,617               91%             3,846            2,922                 32%   11,176
   Ceded benefits and expenses and change in reinsurance assets                                                                                     (282)              (415)           (1,173)              (436)             (190)              48%              (697)            (506)                38%   (2,115)
 General expenses                                                                                                                                    110                109               114                107               108                2%               219              214                  2%      435
 Investment expenses                                                                                                                                  26                 23                29                 25                24                8%                49               48                  2%      102
 Commissions                                                                                                                                         175                186               208                186               168                4%               361              358                  1%      752
 Other                                                                                                                                                32                 32                32                 26                85              -62%                64              113                -43%      171
Total contract benefits and expenses                                                                                                               3,143                699             1,825              5,547             1,812               73%             3,842            3,149                 22%   10,521
Income (loss) before income taxes                                                                                                                    357                157               289               (365)              320               12%               514              752                -32%      676
 Income tax (expense) recovery                                                                                                                      (134)               (45)             (113)               142              (107)              25%              (179)            (247)               -28%     (218)
Net income (loss) attributed to shareholders 2                                                                                                       223                112               176               (223)              213                 5%              335              505                -34%     458
1
    For fixed income assets supporting insurance and investment contract liabilities and for equities supporting pass through products, the impact of realized/ unrealized gains (losses) on the assets is largely offset in the change in actuarial liabilities, included in contract benefits.
2
    Year over year increase is due to higher net experience gains related to the direct impact of equity markets and interest rates and other investment experience related gains and losses partially offset by unfavourable policyholder experience.

Sales - U.S. $ in millions 3
    Total sales                                                                                                                                      118                120               138                125               101               17%               238              220                 8%      483
3
    Consists of 100% of recurring premiums and 10% of both excess and single premiums.
Premiums and Deposits - U.S. $ in millions
 Premiums                                                                                                                                            924                914               968                972               920                0%             1,838            2,017                -9%     3,957
 Segregated fund deposits                                                                                                                            349                335               294                237               206               69%               684              433                58%       964
Total premiums and deposits                                                                                                                        1,273              1,249             1,262              1,209             1,126               13%             2,522            2,450                 3%     4,921

Funds Under Management - U.S. $ in millions
 General fund                                                                                                                                     55,270            52,635             52,811            51,723             47,086               17%           55,270            47,086                17%    52,811
 Segregated funds                                                                                                                                 10,005            10,320              9,553             9,028             10,223               -2%           10,005            10,223                -2%     9,553
Total funds under management                                                                                                                      65,275            62,955             62,364            60,751             57,309               14%           65,275            57,309                14%    62,364

Changes in General and Segregated Funds Under Management - U.S. $ in millions
Beginning balance                                                                                                                                 62,955            62,364             60,751            57,309             56,106               12%           62,364            54,716                14%    54,716
 Premiums and deposits                                                                                                                             1,273             1,249              1,262             1,209              1,126               13%            2,522             2,450                 3%     4,921
 Investment income 4                                                                                                                               2,146               621              1,564             2,893              1,103               95%            2,767             2,028                36%     6,485
 Benefits and withdrawals                                                                                                                           (909)           (1,001)              (927)             (946)            (1,021)             -11%           (1,910)           (2,004)               -5%    (3,877)
 Other 5                                                                                                                                            (190)             (278)              (286)              286                 (5)               nm             (468)              119                   -      119
Ending balance                                                                                                                                    65,275            62,955             62,364            60,751             57,309               14%           65,275            57,309                14%    62,364
4
    Investment income consists of gross investment income for the general fund and interest, dividends and net realized and unrealized gains and losses for the segregated funds.
5
    Other is comprised of all changes to the statement of operations and the balance sheet that are not specifically identified in the roll forward. These include general expenses, investment expenses, taxes, changes in receivables and payables, transfers to/from other Business Units and changes in
    allocated capital.

Canadian $ in millions - Key Metrics
Net income (loss) attributed to shareholders                                                                                                         225               112                180              (219)               206                9%              337               494                -32%      455
Sales                                                                                                                                                119               120                142               123                 98               21%              239               215                 11%      480
Total premiums and deposits                                                                                                                        1,287             1,250              1,291             1,186              1,091               18%            2,537             2,395                  6%    4,872
Total funds under management                                                                                                                      66,521            62,898             63,425            63,115             55,264               20%           66,521            55,264                 20%   63,425


                                                                                                                                                                  Page 20                                                                                                   U.S DIVISION - JOHN HANCOCK LIFE
U.S. DIVISION - JOHN HANCOCK LONG-TERM CARE
(Unaudited)
                                                                                                                                                2012              2012             2011              2011             2011           2012 Q2                  YTD                 YTD         YTD 2012      Fiscal
                                                                                                                                                  Q2                Q1               Q4                Q3               Q2            vs.                    2012                2011            vs.         2011
                                                                                                                                                                                                                                     2011 Q2                                                  YTD 2011

Statements of Income - U.S. $ in millions
Revenue
 Premium income
   Gross premiums                                                                                                                                 444              426              459               447              438                 1%                 870                 861                1%     1,767
   Premiums ceded to reinsurers                                                                                                                     -                -                -                 -               (1)                  -                  -                  (1)                 -       (1)
 Investment income                                                                                                                                270              255              291               245              245                10%                 525                 486                8%     1,022
 Other revenue                                                                                                                                      9                9                8                 8                8                13%                  18                  14               29%        30
Subtotal revenue                                                                                                                                  723              690              758               700              690                 5%               1,413               1,360                4%     2,818
                                                                                                                                  1
 Realized/ unrealized gains (losses) on invested assets supporting insurance and investment contract liabilities                                2,020           (1,144)             304             4,117              606               233%                 876                 316              177%     4,737
Total revenue                                                                                                                                   2,743             (454)           1,062             4,817            1,296               112%               2,289               1,676               37%     7,555
Contract benefits and expenses
To contractholders and beneficiaries
   Gross benefits and claims paid and change in insurance contract liabilities                                                                  2,300             (309)              579            4,466            1,043               121%               1,991               1,129               76%     6,174
   Ceded benefits and expenses and change in reinsurance assets                                                                                    (1)               -                (1)               -                -                   -                 (1)                  -                  -       (1)
 General expenses                                                                                                                                  49               49                51               45               46                 7%                  98                  88               11%       184
 Investment expenses                                                                                                                               11               11                17                9                9                22%                  22                  17               29%        43
 Commissions                                                                                                                                       34               35                37               45               45               -24%                  69                 102              -32%       184
 Other                                                                                                                                              9                8                 8                8                6                50%                  17                  15               13%        31
Total contract benefits and expenses                                                                                                            2,402             (206)              691            4,573            1,149               109%               2,196               1,351               63%     6,615
Income (loss) before income taxes                                                                                                                 341             (248)              371              244              147               132%                  93                 325              -71%       940
 Income tax (expense) recovery                                                                                                                   (116)              88              (128)             (85)             (51)              127%                 (28)               (112)             -75%      (325)
Net income (loss) attributed to shareholders 2                                                                                                    225             (160)              243              159                96              134%                   65                 213             -69%          615
1
    For fixed income assets supporting insurance and investment contract liabilities and for equities supporting pass through products, the impact of realized/ unrealized gains (losses) on the assets is largely offset in the change in actuarial liabilities, included in contract benefits.
2
    Year over year increase is due to higher net experience gains related to the direct impact of equity markets and interest rates and other investment experience related gains and losses.

Sales - U.S. $ in millions
    New annualized premiums                                                                                                                        13                20               15               70                31               -58%                  33                  57             -42%          142

Premiums and Deposits - U.S. $ in millions
 Premiums                                                                                                                                         444              426               459              447              437                  2%                870                 860                1%     1,766
 Segregated fund deposits                                                                                                                         105              104               104              103               89                 18%                209                 176               19%       383
Total premiums and deposits                                                                                                                       549              530               563              550              526                  4%              1,079               1,036                4%     2,149

Funds Under Management - U.S. $ in millions
 General fund                                                                                                                                 26,524            23,959           24,932           24,078            19,277                 38%             26,524              19,277               38%    24,932
 Segregated funds                                                                                                                              3,027             2,957            2,709            2,502             2,555                 18%              3,027               2,555               18%     2,709
Total funds under management                                                                                                                  29,551            26,916           27,641           26,580            21,832                 35%             29,551              21,832               35%    27,641

Changes in General and Segregated Funds Under Management - U.S. $ in millions
Beginning balance                                                                                                                             26,916            27,641           26,580           21,832            20,781                30%              27,641              19,531               42%    19,531
 Premiums and deposits                                                                                                                           549               530              563              550               526                 4%               1,079               1,036                4%     2,149
 Investment income (loss) 3                                                                                                                    2,288              (717)             730            4,236               893               156%               1,571                 907               73%     5,873
 Benefits and withdrawals                                                                                                                       (213)             (207)            (189)            (195)             (181)               18%                (420)               (353)              19%      (737)
 Other 4                                                                                                                                          11              (331)             (43)             157              (187)                  -               (320)                711                  -      825
Ending balance                                                                                                                                29,551            26,916           27,641           26,580            21,832                35%              29,551              21,832               35%    27,641
3
    Investment income (loss) consists of gross investment income (loss) for the general fund and interest, dividends and net realized and unrealized gains and losses for the segregated funds.
4
    Other is comprised of all changes to the statement of income and the statement of financial position that are not specifically identified in the roll forward. These include general expenses, investment expenses, taxes, changes in receivables and payables, transfers to/from other Business Units and
    changes in allocated capital.

Canadian $ in millions - Key Metrics
Net income (loss) attributed to shareholders                                                                                                     228              (160)             249              156                93               145%                  68                 208              -67%       613
Sales                                                                                                                                             13                20               14               69                31               -58%                  33                  56              -41%       139
Total premiums and deposits                                                                                                                      554               532              576              539               509                 9%               1,086               1,012                7%     2,127
Funds under management                                                                                                                        30,116            26,892           28,110           27,614            21,052                43%              30,116              21,052               43%    28,110


                                                                                                                                                               Page 21                                                                                U.S DIVISION - JOHN HANCOCK LONG-TERM CARE
JOHN HANCOCK WEALTH ASSET MANAGEMENT
(Unaudited)
                                                                                                                                                   2012               2012               2011               2011               2011          2012 Q2                  YTD                YTD       YTD 2012     Fiscal
                                                                                                                                                     Q2                 Q1                 Q4                 Q3                 Q2            vs.                   2012               2011          vs.       2011
                                                                                                                                                                                                                                             2011 Q2                                               YTD 2011

Statements of Income - U.S. $ in millions
Revenue
 Premium income
   Gross premiums                                                                                                                                     33                 42                 34                 36                 29               14%                  75                 70            7%       140
 Investment income                                                                                                                                    11                 13                 12                 14                 13              -15%                  24                 26           -8%        52
 Other revenue                                                                                                                                       332                331                318                323                339               -2%                 663                665            0%     1,306
Subtotal revenue                                                                                                                                     376                386                364                373                381               -1%                 762                761            0%     1,498
                                                                                                                                  1
 Realized/ unrealized gains (losses) on invested assets supporting insurance and investment contract liabilities                                      (1)                 5                 (3)                (8)                 1                  -                  4                  2          100%        (9)
Total revenue                                                                                                                                        375                391                361                365                382               -2%                 766                763            0%     1,489
Contract benefits and expenses
To contractholders and beneficiaries
    Gross benefits and claims paid and change in insurance contract liabilities                                                                       43                 57                 36                 44                 44               -2%                 100                 95            5%       175
 General expenses                                                                                                                                    102                102                112                101                 99                3%                 204                198            3%       411
 Investment expenses                                                                                                                                  80                 79                 78                 75                 76                5%                 159                150            6%       303
 Commissions                                                                                                                                         104                104                 97                 99                114               -9%                 208                218           -5%       414
 Other                                                                                                                                                 -                  -                  2                  -                  -                  -                  -                  -              -        2
Total contract benefits and expenses                                                                                                                 329                342                325                319                333               -1%                 671                661            2%     1,305
Income before income taxes                                                                                                                            46                 49                 36                 46                 49               -6%                  95                102           -7%       184
 Income tax expense                                                                                                                                  (10)               (11)                (1)               (16)               (14)             -29%                 (21)               (27)         -22%       (44)
Net income attributed to shareholders                                                                                                                 36                 38                 35                 30                 35                 3%                 74                    75        -1%       140
1
    For fixed income assets supporting insurance and investment contract liabilities and equities supporting pass through products, the impact of realized/unrealized gains (losses) on the assets is largely offset in the change in actuarial liabilities, included in contract benefits.

Sales - U.S. $ in millions
                                   2
Sales - Defined contribution                                                                                                                      1,206               1,328              1,383              1,170                993               21%              2,534              2,184            16%     4,737
                     3
Sales - Mutual funds                                                                                                                              3,073               3,115              2,413              2,853              3,368               -9%              6,188              6,831            -9%    12,097
2
    Defined contribution sales include new annualized and first year single premium sales.
3
    Mutual funds include sales of College Savings (529 plan). Privately Managed Accounts is now under the Investment Division and is reported as part of Corporate & Other.

Premiums and Deposits - U.S. $ in millions
 Premiums                                                                                                                                            33                  42                 34                 36                 29               14%                 75                 70             7%       140
 Segregated fund deposits                                                                                                                         3,080               3,546              2,862              2,942              2,816                9%              6,626              6,027            10%    11,831
 Mutual fund deposits4                                                                                                                            3,073               3,115              2,413              2,853              3,368               -9%              6,188              6,831            -9%    12,097
Total premiums and deposits                                                                                                                       6,186               6,703              5,309              5,831              6,213                0%             12,889             12,928             0%    24,068
4
    Mutual fund deposits include College Savings (529 plan). Privately Managed Accounts is now under the Investment Division and is reported as part of Corporate & Other.

Funds Under Management - U.S. $ in millions
 General fund                                                                                                                                     1,372              1,332              1,494              1,478              1,439                 -5%             1,372              1,439            -5%     1,494
 Segregated funds                                                                                                                                65,521             67,253             61,115             57,240             65,131                  1%            65,521             65,131             1%    61,115
 Mutual funds 5                                                                                                                                  38,185             38,308             34,475             32,433             36,999                  3%            38,185             36,999             3%    34,475
Total funds under management                                                                                                                    105,078            106,893             97,084             91,151            103,569                  1%           105,078            103,569             1%    97,084
5
    Mutual funds include College Savings (529 plan). Privately Managed Accounts is now under the Investment Division and is reported as part of Corporate & Other.

Changes in General, Segregated, Mutual and Other Funds Under Management - U.S. $ in millions
Beginning balance                                                                                                                               106,893             97,084             91,151            103,569            101,931                 5%             97,084             96,437             1%     96,437
  Premiums and deposits - Defined contribution                                                                                                    3,113              3,588              2,896              2,978              2,845                 9%              6,701              6,097            10%     11,971
  Premiums and deposits - Mutual funds                                                                                                            3,073              3,115              2,413              2,853              3,368                -9%              6,188              6,831            -9%     12,097
  Investment income (loss) 6                                                                                                                     (2,470)             8,568              5,903            (12,625)               309                   -             6,098              4,219            45%     (2,503)
  Withdrawals - Defined contribution                                                                                                             (2,949)            (3,020)            (2,816)            (2,469)            (2,553)               16%             (5,969)            (5,260)           13%    (10,545)
  Withdrawals - Mutual funds                                                                                                                     (2,302)            (2,214)            (2,303)            (2,948)            (2,143)                7%             (4,516)            (4,018)           12%     (9,269)
  Other 7                                                                                                                                          (280)              (228)              (160)              (207)              (188)               49%               (508)              (737)          -31%     (1,104)
Ending balance                                                                                                                                  105,078            106,893             97,084             91,151            103,569                 1%            105,078            103,569             1%     97,084
6
    Investment income (loss) consists of gross investment income for the general fund and interest, dividends and net realized and unrealized gains and losses for the segregated funds, mutual funds and other funds.
7
    Other is comprised of all changes to the statement of income and the statement of financial position that are not specifically identified in the roll forward. These include general expenses, investment expenses, taxes, changes in receivables and payables, transfers to/from other Business Units
    and changes in allocated capital.

Canadian $ in millions - Key Metrics
Net income attributed to shareholders                                                                                                                37                 37                 36                 28                 35                 6%                 74                 74             0%       138
Sales - Defined contribution                                                                                                                      1,218              1,330              1,416              1,146                962                27%              2,548              2,136            19%     4,698
Sales - Mutual funds                                                                                                                              3,105              3,119              2,469              2,798              3,260                -5%              6,224              6,673            -7%    11,940
Total premiums and deposits                                                                                                                       6,250              6,711              5,433              5,719              6,014                 4%             12,961             12,631             3%    23,783
Total funds under management                                                                                                                    107,085            106,798             98,737             94,697             99,872                 7%            107,085             99,872             7%    98,737




                                                                                                                                                                  Page 22                                                                         U.S DIVISION - JOHN HANCOCK WEALTH ASSET MANAGEMENT
JOHN HANCOCK ANNUITIES
(Unaudited)
                                                                                                                                              2012              2012              2011              2011              2011         2012 Q2                 YTD                 YTD         YTD 2012           Fiscal
                                                                                                                                                Q2                Q1                Q4                Q3                Q2           vs.                  2012                2011            vs.             2011
                                                                                                                                                                                                                                   2011 Q2                                                 YTD 2011


Statements of Income - U.S. $ in millions
Revenue
 Premium income
   Gross premiums                                                                                                                              263               321               435               379               335             -21%                 584                811                -28%        1,625
   Premiums ceded to reinsurers1                                                                                                                (5)                -                 -                (1)                -                 -                 (5)                 -                    -          (1)
 Investment income                                                                                                                             421               466               497               500               448              -6%                 887                965                 -8%        1,962
 Other revenue                                                                                                                                 385               388               376               383               413              -7%                 773                820                 -6%        1,579
Subtotal revenue                                                                                                                             1,064             1,175             1,308             1,261             1,196             -11%               2,239              2,596                -14%        5,165
                                                                                                                        2
 Realized/ unrealized gains (losses) on assets supporting insurance and investment contract liabilities                                      1,877            (1,651)             (676)            3,982               487             285%                 226                135                 67%        3,441
Total revenue                                                                                                                                2,941              (476)              632             5,243             1,683              75%               2,465              2,731                -10%        8,606
Contract benefits and expenses
To contractholders and beneficiaries
   Gross benefits and claims paid and change in insurance contract liabilities                                                               3,462            (1,734)               269            7,337             1,411             145%               1,728              1,684                  3%        9,290
   Ceded benefits and expenses and change in reinsurance assets 1                                                                             (232)              166                 89             (730)             (102)            127%                 (66)                10                    -        (631)
   Change in investment contract liabilities                                                                                                    17                20                 16               17                24             -29%                  37                 61                -39%           94
 General expenses                                                                                                                               57                59                 76               68                66             -14%                 116                132                -12%          276
 Investment expenses                                                                                                                            44                45                 50               46                46              -4%                  89                 91                 -2%          187
 Commissions                                                                                                                                    92                91                 96               94               106             -13%                 183                215                -15%          405
 Other                                                                                                                                           1                 1                  6                3                 3             -67%                   2                  6                -67%           15
Total contract benefits and expenses                                                                                                         3,441            (1,352)               602            6,835             1,554             121%               2,089              2,199                 -5%        9,636
Income (loss) before income taxes                                                                                                             (500)              876                 30           (1,592)              129                 -                376                532                -29%       (1,030)
 Income tax (expense) recovery                                                                                                                 190              (292)                 9              578               (30)                -               (102)              (156)               -35%          431
Net income (loss) attributed to shareholders 3                                                                                                (310)              584                 39           (1,014)               99                 -                274                376                -27%         (599)
1
    On June 29, 2012, the Company entered into a coinsurance agreement to insure 67% of the Company's book value of its fixed deferred annuity business. Under the terms of the agreement, the Company will maintain responsibility for servicing of the policies and managing some of
    the assets and has maintained 10% of the risk. For presentation in the Statistical Information Package, the $5,372 premiums ceded as a result of this agreement have been shown net with the change in reinsurance assets line.
2
    For fixed income assets supporting insurance and investment contract liabilities, equities supporting pass through products and derivatives related to variable annuity hedging programs, the impact of realized/unrealized gains (losses) on the assets is largely offset in the change in actuarial
    liabilities, included in contract benefits.
3
    Year over year decrease is due to higher net experience losses related to the direct impact of equity markets and interest rates, losses on variable annuity guarantee liabilities that are dynamically hedged and other investment experience related gains and losses, a Q2 2012 charge related to a
    transaction to coinsure 67% of our fixed deferred annuity business and lower fee income from lower average assets under management.

Sales - U.S. $ in millions
Fixed products 4                                                                                                                                 74               179               348               176               158            -53%                 253                458                -45%          982
Variable products                                                                                                                               309               205               329               412               525            -41%                 514              1,052                -51%        1,793
Total sales                                                                                                                                     383               384               677               588               683            -44%                 767              1,510                -49%        2,775
4
    Includes both fixed annuities and fixed products.

Premiums and Deposits - U.S. $ in millions
Premiums                                                                                                                                        258               321               435               378               335            -23%                 579                811                -29%        1,624
Investment contract deposits                                                                                                                     27                56               101                27                42            -36%                  83                139                -40%          267
Segregated fund deposits                                                                                                                        301               219               355               397               492            -39%                 520              1,026                -49%        1,778
Total premiums and deposits                                                                                                                     586               596               891               802               869            -33%               1,182              1,976                -40%        3,669

Funds Under Management - U.S. $ in millions
General fund                                                                                                                                30,157            33,048            33,781            34,279            30,806               -2%            30,157              30,806                 -2%       33,781
Segregated funds                                                                                                                            54,338            56,755            54,038            52,171            58,863               -8%            54,338              58,863                 -8%       54,038
Total funds under management                                                                                                                84,495            89,803            87,819            86,450            89,669               -6%            84,495              89,669                 -6%       87,819

Changes in General and Segregated Funds Under Management - U.S. $ in millions
Beginning balance                                                                                                                           89,803            87,819            86,450            89,669            90,238               0%             87,819              90,512                -3%        90,512
  Premiums and deposits                                                                                                                        586               596               891               802               869             -33%              1,182               1,976               -40%         3,669
  Investment income (loss) 5                                                                                                                 1,290             3,044             2,855              (991)            1,429             -10%              4,334               3,606                20%         5,470
  General fund benefits and withdrawals                                                                                                       (702)             (746)             (893)           (1,255)           (1,041)            -33%             (1,448)             (2,455)              -41%        (4,603)
  Segregated fund withdrawals                                                                                                               (1,440)           (1,461)           (1,260)           (1,350)           (1,602)            -10%             (2,901)             (3,060)               -5%        (5,670)
  Other 6                                                                                                                                   (5,042)              551              (224)             (425)             (224)              nm             (4,491)               (910)              394%        (1,559)
Ending balance                                                                                                                              84,495            89,803            87,819            86,450            89,669              -6%             84,495              89,669                -6%        87,819
5
    Investment income (loss) consists of gross investment income for the general fund and interest, dividends and net realized and unrealized gains and losses for the segregated funds.
6
    Other is comprised of all changes to the statement of income and the statement of financial position that are not specifically identified in the roll forward. These include general expenses, investment expenses, taxes, changes in receivables and payables, transfers to/from other
    Business Units and changes in allocated capital. Q2 2012 includes a reduction of $5.3 billion related to the Fixed Deferred Annuity coinsurance transaction.

Canadian $ in millions - Key Metrics
Net income (loss) attributed to shareholders                                                                                                  (313)              585                40              (993)               95                 -               272                 368                -26%         (585)
Total premiums and deposits                                                                                                                    593               596               910               787               840             -29%              1,189               1,932                -38%        3,629
Total funds under management                                                                                                                86,110            89,722            89,311            89,814            86,468               0%             86,110              86,468                  0%       89,311




                                                                                                                                                             Page 23                                                                                               U.S DIVISION - JOHN HANCOCK ANNUITIES
CORPORATE & OTHER
(Canadian $ in millions, unaudited)
                                                                                                                   2012            2012             2011              2011            2011          2012 Q2      YTD       YTD        YTD 2012         Fiscal
                                                                                                                     Q2              Q1               Q4                Q3              Q2            vs.       2012      2011          vs.            2011
                                                                                                                                                                                                    2011 Q2                           YTD 2011


Statements of Income
Corporate and Investments
Revenue
  Gross investment income before items below                                                                         315            211               219              267             306              3%        526       568             -7%        1,054
  Gains (losses) on AFS equities                                                                                      (4)            38                26               28              32                -        34        67            -49%          121
  Gains (losses) on AFS bonds and related derivative positions                                                        91            (52)              (25)             355             142            -36%         39        30             30%          360
  Gains (losses) on macro hedges                                                                                     341           (758)             (423)             911              39            774%       (417)     (251)            66%          237
  Interest on surplus funds allocated to divisions                                                                  (238)          (233)             (221)            (213)           (217)            10%       (471)     (436)             8%         (870)
  Other revenue                                                                                                       74             94               141               29              79             -6%        168       156              8%          326
Total revenue, net                                                                                                   579           (700)             (283)           1,377             381             52%       (121)      134                -       1,228
Contract benefits and expenses
 General expenses                                                                                                   195             165               159              148             131             49%        360       266            35%        573
 Investment expenses, net                                                                                           (13)            (13)               (8)              (7)            (10)            30%        (26)      (18)           44%        (33)
 Changes in actuarial methods and assumptions                                                                       953             (18)               (6)             956             601             59%        935       706            32%      1,656
 Goodwill impairment                                                                                                  -               -               665                -               -                -         -         -               -       665
 Other                                                                                                              160             198               192              142             165             -3%        358       363            -1%        697
Total contract benefits and expenses                                                                              1,295             332             1,002            1,239             887             46%      1,627     1,317            24%      3,558
Income (loss) before income taxes                                                                                  (716)         (1,032)           (1,285)             138            (506)            42%     (1,748)   (1,183)           48%     (2,330)
 Income tax recovery                                                                                                351             183               137              150             213             65%        534       393            36%        680
Net income (loss)                                                                                                  (365)           (849)           (1,148)             288            (293)            25%     (1,214)     (790)           54%     (1,650)
 Less net income (loss) attributed to non-controlling interest in subsidiaries                                       35              (1)                4                8              (2)               -        34        (2)              -        10
Net income (loss) attributed to shareholders - Corporate and Investments                                            (400)          (848)           (1,152)             280            (291)            37%     (1,248)     (788)           58%     (1,660)
Net income (loss) attributed to shareholders for Reinsurance business (see next page)                                 15              52               47              275              60             -75%       67        (33)               -        289
                                                                  1
Total net income (loss) attributed to shareholders                                                                  (385)          (796)           (1,105)             555            (231)            67%     (1,181)     (821)           44%     (1,371)
1
    See the Q2 press release for a description of Q2 2012 results compared to Q2 2011.

Premiums and Deposits
Segregated fund deposits                                                                                             71               -                 -                6               -                 -       71         -                -           6
                                                                                                                    894             368               627              602             909              -2%     1,262     1,578            -20%        2,807
Private Client Group                                                                                                  -              65                41               84             157            -100%        65       226            -71%          351
Premiums - Reinsurance business (see next page)                                                                      25              26                20               18             148             -83%        51       328            -84%          366
Total premiums and deposits                                                                                         990             459               688              710           1,214             -18%     1,449     2,132            -32%        3,530

Funds Under Management
General fund - Corporate and Investments                                                                         (3,207)          2,612            1,557             1,617          5,819                  -   (3,207)    5,819                -    1,557
General fund - Reinsurance (see next page)                                                                        1,197           1,205            1,341             1,703          2,520              -53%     1,197     2,520            -53%     1,341
Segregated funds - elimination of amounts held by the Company                                                      (113)           (123)            (124)             (107)          (135)             -16%      (113)     (135)           -16%      (124)
Institutional advisory accounts 2                                                                                24,083          23,975           23,778            24,112         23,912                1%    24,083    23,912              1%    23,778
Total funds under management                                                                                     21,960          27,669           26,552            27,325         32,116              -32%    21,960    32,116            -32%    26,552
2
    Of the $24.1 billion in Institutional Advisory Accounts FUM in Q2 2012, $19.8 billion is managed by Manulife Asset Management and the remainder is managed by Investment Division affiliates.



                                                                                                                                 Page 24                                                                                           CORPORATE & OTHER
CORPORATE & OTHER - REINSURANCE
(Unaudited)
                                                                                                                                                 2012             2012              2011              2011             2011          2012 Q2        YTD              YTD     YTD 2012         Fiscal
                                                                                                                                                   Q2               Q1                Q4                Q3               Q2            vs.         2012             2011       vs.            2011
                                                                                                                                                                                                                                     2011 Q2                                 YTD 2011

Statements of Income - U.S. $ in millions
Revenue
 Premium income
   Gross premiums                                                                                                                                  31                28                22               23               159               -81%       59             349          -83%         394
   Premiums ceded to reinsurers                                                                                                                    (5)               (3)               (3)              (4)               (8)              -38%       (8)            (14)         -43%         (21)
 Investment income                                                                                                                                  9                 6                 9               16                23               -61%       15              50          -70%          75
 Other revenue                                                                                                                                    (62)                4                 6              446                 8                   -     (58)             14              -        466
Subtotal revenue                                                                                                                                  (27)               35                34              481               182                   -       8             399          -98%         914
                                                                                                                                    1
 Realized/ unrealized gains (losses) on invested assets supporting insurance and investment contract liabilities                                    4                (2)                3               55                20               -80%        2              18          -89%          76
Total revenue                                                                                                                                     (23)               33                37              536               202                   -      10             417          -98%         990
Contract benefits and expenses
To contractholders and beneficiaries
   Gross benefits and claims paid and change in insurance contract liabilities                                                                    (61)              (30)                1              157               124                  -      (91)            419              -        577
   Ceded benefits and expenses and change in reinsurance assets                                                                                    17                (3)              (26)             (24)              (20)                 -       14             (29)             -        (79)
 General expenses                                                                                                                                   3                 4                 4                4                 9              -67%         7              18          -61%          26
 Investment expenses                                                                                                                                -                 -                 1                7                 -                  -        -               1         -100%           9
 Commissions                                                                                                                                        2                 -                 -                1                 8              -75%         2              13          -85%          14
 Other                                                                                                                                              -                 -                 -                -                 1             -100%         -              (6)             -         (6)
Total contract benefits and expenses                                                                                                              (39)              (29)              (20)             145               122                  -      (68)            416              -        541
Income (loss) before income taxes                                                                                                                  16                62                57              391                80              -80%        78               1            nm         449
 Income tax expense                                                                                                                                (1)              (11)              (12)            (111)              (17)             -94%       (12)            (33)         -64%        (156)
Net income (loss) attributed to shareholders 2                                                                                                     15                51                45              280                63               -76%      66              (32)             -        293
1
    For fixed income assets supporting insurance and investment contract liabilities, the impact of realized/ unrealized gains (losses) on the assets is largely offset in the change in actuarial liabilities, included in contract benefits.
2
    Year over year decrease primarily results from the sale of Life Retrocession business in Q3 2011.

Source of Earnings - U.S. $ in millions
Expected profit from in-force business                                                                                                             36                36                33               31                46              -22%        72              91          -21%         155
Impact of new business                                                                                                                              -                 -                 -                -                 2             -100%         -               -              -          -
Experience gains (losses)                                                                                                                          42                21                20              (82)               26               62%        63            (102)             -       (164)
Management actions and changes in assumptions                                                                                                     (67)                -                 -              438                 -                  -      (67)              -              -        438
Earnings on surplus funds                                                                                                                           5                 5                 4                4                 7              -29%        10              14          -29%          22
Other                                                                                                                                               -                 -                 -                -                (1)                 -        -              (2)             -         (2)
Income before income taxes                                                                                                                         16                62                57              391                80              -80%        78               1            nm         449
Income tax expense                                                                                                                                 (1)              (11)              (12)            (111)              (17)             -94%       (12)            (33)         -64%        (156)
Net income attributed to shareholders                                                                                                              15                51                45              280                63              -76%        66             (32)             -        293

Premiums - U.S. $ in millions
Life reinsurance                                                                                                                                    1                 -                 1                 -              133               -99%       1              258         -100%         259
Property and Casualty reinsurance                                                                                                                  25                25                18                19               18                39%      50               77          -35%         114
Total premiums                                                                                                                                     26                25                19                19              151               -83%      51              335          -85%         373

Funds Under Management - U.S. $ in millions
 General fund                                                                                                                                   1,174             1,205            1,318             1,640             2,613               -55%    1,174           2,613          -55%        1,318


Canadian $ in millions - Key Metrics
Net income (loss) attributed to shareholders                                                                                                       15                52               47               275                60               -75%       67             (33)             -         289
Total premiums                                                                                                                                     25                26               20                18               148               -83%       51             328          -84%          366
Total funds under management                                                                                                                    1,197             1,205            1,341             1,703             2,520               -53%    1,197           2,520          -53%        1,341




                                                                                                                                                               Page 25                                                                                      CORPORATE & OTHER - REINSURANCE
   Asset
Information
INVESTED ASSETS - PORTFOLIO COMPOSITION
(Canadian $ in millions, unaudited)



                                                                As at                                    As at                                        As at                                       As at                                       As at
                                                             Q2 2012            %                     Q1 2012               %                      Q4 2011               %                     Q3 2011               %                     Q2 2011                    %

Carrying value
Cash and short-term securities                                13,008          5.7 %                    12,312             5.5 %                     12,813             5.6 %                    13,804             6.1 %                    12,823             6.3    %

Public bonds
  Government
    Canadian government & agency                               16,844         7.4    %                   16,934            7.6   %                   16,547            7.3   %                   15,907            7.0    %                   14,992            7.4   %
    US government & agency                                     26,829        11.8    %                   24,762           11.1   %                   28,012           12.4   %                   27,987           12.4    %                   19,737            9.8   %
    Foreign governments & agency                               14,130         6.2    %                   12,078            5.4   %                   12,162            5.4   %                   12,215            5.4    %                    9,565            4.7   %
  Corporate                                                    58,508        25.7    %                   58,170           26.0   %                   58,108           25.6   %                   57,743           25.6    %                   51,086           25.3   %
  Securitized
       CMBS                                                    2,302         1.0     %                   3,182            1.4    %                   3,410            1.5    %                   3,896            1.7     %                  3,956            2.0     %
       RMBS                                                      303         0.1     %                     380            0.2    %                     407            0.2    %                     437            0.2     %                    440            0.2     %
       ABS                                                     1,776         0.8     %                   1,910            0.8    %                   1,841            0.8    %                   1,987            0.9     %                  1,683            0.8     %
Total public bonds                                          120,692         53.0     %                117,416            52.5    %                120,487            53.2    %                120,172            53.2     %               101,459            50.2     %

Private placement debt                                        19,840          8.7 %                    20,098             9.0 %                     20,294             9.0 %                    20,297             9.0 %                    19,178             9.5    %

Mortgages
  Commercial
    Multi family residential                                     3,242         1.4   %                    3,383            1.5   %                     3,459           1.5   %                     3,448            1.5   %                    3,409            1.7   %
    Retail                                                       5,615         2.5   %                    5,735            2.6   %                     5,816           2.6   %                     5,828            2.6   %                    5,765            2.8   %
    Office                                                       5,299         2.3   %                    5,508            2.5   %                     5,688           2.5   %                     5,886            2.6   %                    5,289            2.6   %
    Industrial                                                   2,534         1.1   %                    2,796            1.2   %                     2,888           1.3   %                     2,965            1.3   %                    2,985            1.5   %
    Other commercial                                             2,150         0.9   %                    2,133            0.9   %                     2,197           1.0   %                     2,208            1.0   %                    1,826            0.9   %
  Other mortgages
    Manulife Bank single residential                           14,399        6.3 %                      13,881            6.2 %                      13,434           5.9 %                      12,938           5.7 %                      12,453           6.2     %
    Agriculture                                                 1,498        0.7 %                       1,507            0.7 %                       1,541           0.7 %                       1,519           0.7 %                       1,468           0.7     %
Total mortgages 1                                             34,737        15.2 %                     34,943            15.6 %                     35,023           15.5 %                     34,792           15.4 %                     33,195           16.4     %

Policy loans                                                   6,895          3.0 %                      6,710            3.0 %                      6,827             3.0 %                     6,938             3.1 %                      6,431            3.2    %

Bank loans                                                     2,251          1.0 %                      2,275            1.0 %                      2,288             1.0 %                     2,295             1.0 %                      2,311            1.1    %

Stocks
   Par, equity-linked and pass-through                          6,704         2.9 %                      6,848            3.1 %                       6,362            2.8 %                      6,064            2.7 %                      6,691            3.3    %
   Nonpar and surplus                                           4,013         1.8 %                      4,378            1.9 %                       3,881            1.7 %                      3,792            1.7 %                      3,940            2.0    %
Total Stocks                                                  10,717          4.7 %                    11,226             5.0 %                     10,243             4.5 %                     9,856             4.4 %                    10,631             5.3    %

Real estate
  Office                                                        5,829         2.5    %                    5,524           2.5    %                    5,296            2.3   %                    4,768            2.1    %                    4,355           2.2    %
  Industrial                                                      616         0.3    %                      592           0.3    %                      585            0.3   %                      539            0.2    %                      499           0.2    %
  Company use                                                     818         0.4    %                      810           0.3    %                      831            0.4   %                      857            0.4    %                      811           0.4    %
  Other                                                           873         0.4    %                      768           0.3    %                      754            0.3   %                      748            0.3    %                      681           0.3    %
Total real estate                                              8,136          3.6    %                   7,694            3.4    %                   7,466             3.3   %                   6,912             3.0    %                   6,346            3.1    %

Other investments
  Private equity & mezzanine                                    1,600         0.7    %                   1,500            0.7    %                    1,474            0.7   %                    1,673            0.7    %                    1,527           0.7    %
  Power & infrastructure                                        2,781         1.2    %                   2,596            1.2    %                    2,507            1.1   %                    2,432            1.1    %                    2,188           1.1    %
   Leases                                                       2,609         1.1    %                   2,536            1.1    %                    2,560            1.1   %                    2,594            1.2    %                    2,388           1.2    %
  Oil & gas                                                     1,274         0.6    %                   1,285            0.6    %                    1,292            0.6   %                    1,008            0.4    %                      898           0.5    %
  Timberland                                                    1,601         0.7    %                   1,524            0.7    %                    1,527            0.7   %                    1,519            0.7    %                    1,456           0.7    %
  Farmland                                                        819         0.4    %                     781            0.3    %                      762            0.3   %                      668            0.3    %                      602           0.3    %
  Affordable housing                                              454         0.2    %                     461            0.2    %                      470            0.2   %                      489            0.2    %                      474           0.2    %
  Other                                                           525         0.2    %                     480            0.2    %                      487            0.2   %                      476            0.2    %                      434           0.2    %
Total other investments                                       11,663          5.1    %                 11,163             5.0    %                  11,079             4.9   %                  10,859             4.8    %                   9,967            4.9    %

Total invested assets                                       227,939        100.0 %                    223,837          100.0 %                    226,520          100.0 %                    225,925           100.0 %                   202,341           100.0     %
1
    Includes government insured mortgages ($10,683 or 31% as at June 30, 2012).
Fair value 2
Real estate                                                     8,648                                     8,186                                       7,895                                       7,343                                        6,768
Other investments                                              11,962                                    11,561                                      11,390                                      11,160                                       10,400
2
    The fair values of real estate and other investments are disclosed in the table above since the changes in the fair value of those assets backing insurance and investment contract liabilities are reflected as earnings/charges through actuarial reserves.



                                                                                                                          Page 26                                                                                         INVESTED ASSETS - PORTFOLIO COMPOSITION
                     INVESTED ASSETS - FIXED INCOME SECURITIES BY CREDIT QUALITY AND GEOGRAPHIC LOCATION
                     (Canadian $ in millions, unaudited)




                     Public Bond and Private Placement Portfolio by Credit Quality (at carrying value)


                                     Credit                         NAIC                               As at                                   As at                                   As at                                   As at                                   As at
                                    Rating 1                    designation                        Q2 2012              %                  Q1 2012              %                  Q4 2011              %                  Q3 2011              %                  Q2 2011               %
                                      AAA                             1                              40,830           34%                    39,561           34%                    42,174           35%                    42,641           35%                    33,994             33%
Public Bonds




                                       AA                             1                              24,428           20%                    22,894           19%                    23,682           20%                    23,456           19%                    18,859             19%
                                        A                             1                              33,882           28%                    33,030           28%                    33,078           27%                    33,075           28%                    29,562             29%
                                      BBB                             2                              17,065           14%                    17,461           15%                    16,957           14%                    16,516           14%                    14,939             15%
                                       BB                             3                               3,627            3%                     3,600            3%                     3,758            3%                     3,555            3%                     3,151              3%
                           B & lower, and unrated                4 & below                              860            1%                       870            1%                       838            1%                       929            1%                       954              1%
                                      Total                                                       120,692           100%                  117,416           100%                  120,487           100%                  120,172           100%                  101,459              100%


                                      AAA                             1                                 631            3%                       628            3%                       608            3%                       512            3%                       416              2%
Private Placements




                                       AA                             1                               2,493           13%                     2,491           12%                     2,436           12%                     2,239           11%                     2,067             11%
                                        A                             1                               5,850           30%                     5,776           29%                     5,902           29%                     5,962           29%                     5,576             29%
                                      BBB                             2                               8,621           43%                     8,886           44%                     8,977           44%                     9,214           45%                     8,974             47%
                                       BB                             3                               1,072            5%                     1,139            6%                     1,178            6%                     1,220            6%                       939              5%
                           B & lower, and unrated                4 & below                            1,173            6%                     1,178            6%                     1,193            6%                     1,150            6%                     1,206              6%
                                      Total                                                        19,840           100%                   20,098           100%                   20,294           100%                   20,297           100%                    19,178             100%


                                      AAA                             1                              41,461           30%                    40,189           29%                    42,782           30%                    43,153           31%                    34,410             29%
                                       AA                             1                              26,921           19%                    25,385           19%                    26,118           19%                    25,695           18%                    20,926             17%
Total




                                        A                             1                              39,732           28%                    38,806           28%                    38,980           28%                    39,037           28%                    35,138             29%
                                      BBB                             2                              25,686           18%                    26,347           19%                    25,934           18%                    25,730           18%                    23,913             20%
                                       BB                             3                               4,699            3%                     4,739            3%                     4,936            4%                     4,775            3%                     4,090              3%
                           B & lower, and unrated                4 & below                            2,033            2%                     2,048            2%                     2,031            1%                     2,079            2%                     2,160              2%
                                      Total                                                       140,532           100%                  137,514           100%                  140,781           100%                  140,469           100%                  120,637              100%
                     1
                         The company replicates exposure to specific issuers by selling credit protection via credit default swaps (CDS) to complement its cash bond investments. The Company does not use CDS to leverage its credit risk exposure and any CDS protection sold is
                         backed by government security holdings. In order to reflect the actual credit exposure held by the Company, the credit quality carrying values have been adjusted to reflect the credit quality of the underlying issuers referenced in the CDS sold by the
                         Company. At June 30, 2012, the Company had $234 (March 31, 2012: $230) notional outstanding of CDS protection sold.

                     Public Bond and Private Placement Portfolio by Geographic Location (at carrying value)


                                                                                                       As at                                   As at                                   As at                                   As at                                   As at
                                    Country                                                        Q2 2012              %                  Q1 2012              %                  Q4 2011              %                  Q3 2011              %                  Q2 2011               %
Public Bonds




                                       US                                                            61,083           51%                    60,080           51%                    63,871           53%                    64,548           54%                    52,017             51%
                                    Canada                                                           32,995           27%                    32,629           28%                    32,048           26%                    31,007           26%                    28,377             28%
                                    Europe                                                            4,476            4%                     4,614            4%                     4,484            4%                     4,551            4%                     4,443              4%
                                 Asia & Other                                                        22,138           18%                    20,093           17%                    20,084           17%                    20,066           16%                    16,622             17%
                                      Total                                                       120,692           100%                  117,416           100%                  120,487           100%                  120,172           100%                  101,459              100%
Private Placements




                                       US                                                            11,452           58%                    11,735           58%                    11,964           59%                    11,949           59%                    10,943             57%
                                    Canada                                                            5,871           29%                     5,776           29%                     5,748           28%                     5,728           28%                     5,732             30%
                                    Europe                                                            1,315            7%                     1,359            7%                     1,364            7%                     1,479            7%                     1,385              7%
                                 Asia & Other                                                         1,202            6%                     1,228            6%                     1,218            6%                     1,141            6%                     1,118              6%
                                      Total                                                        19,840           100%                   20,098           100%                   20,294           100%                   20,297           100%                    19,178             100%


                                       US                                                            72,535           52%                    71,815           52%                    75,835           54%                    76,497           55%                    62,960             52%
                                    Canada                                                           38,866           28%                    38,405           28%                    37,796           27%                    36,735           26%                    34,109             28%
                                    Europe                                                            5,791            4%                     5,973            4%                     5,848            4%                     6,030            4%                     5,828              5%
Total




                                 Asia & Other                                                        23,340           16%                    21,321           16%                    21,302           15%                    21,207           15%                    17,740             15%
                                      Total                                                       140,532           100%                  137,514           100%                  140,781           100%                  140,469           100%                  120,637              100%



                                                                                                                                Page 27                                           INVESTED ASSETS - FIXED INCOME SECURITIES BY CREDIT QUALITY AND GEOGRAPHICAL LOCATION
                     INVESTED ASSETS - FIXED INCOME SECURITIES BY SECTOR
                     (Canadian $ in millions, unaudited)




                     Public Bond and Private Placement Portfolio by Sector / Industry Holdings (at carrying value)


                                                                         As at Q2 2012                            As at Q1 2012                              As at Q4 2011                        As at Q3 2011                           As at Q2 2011
                                                              Carrying                Investment       Carrying                Investment         Carrying                Investment   Carrying                Investment       Carrying               Investment
                                                                 value            %      grade %          value            %        grade %          value            %      grade %      value            %      grade %         value            %      grade %


                     Government & agency                        57,803          48%         96%         53,774           46%            96%         56,721          47%         96%      56,109          47%         97%         44,294          44%         96%
                     Financial                                  18,324          15%         95%         19,230           16%            96%         19,057          16%         95%      18,986          16%         96%         17,635          17%         95%
                     Telecommunications                          2,074           2%        100%           2,103           2%           100%          2,117           2%        100%       2,221           2%        100%          2,035           2%        100%
                     Utilities                                  13,957          12%         97%         13,339           11%            97%         13,491          11%         97%      13,418          11%         97%         11,324          11%         97%
                     Energy                                      7,582           6%         96%           7,354           6%            96%          7,387           6%         96%       7,293           6%         96%          6,383           6%         96%
Public Bonds




                     Industrial                                  5,342           4%         99%           5,064           4%            99%          5,195           4%         99%       5,195           4%         99%          4,534           5%         99%
                     Securitized MBS/ABS                         4,381           4%         89%           5,472           5%            90%          5,658           5%         91%       6,320           5%         90%          6,079           6%         90%
                     Consumer (non-cyclical)                     4,659           4%        100%           4,379           4%           100%          4,328           4%        100%       4,234           4%        100%          3,485           3%        100%
                     Consumer (cyclical)                         1,775           1%         98%           1,671           2%            97%          1,657           1%         93%       1,725           1%         93%          1,581           2%         93%
                     Basic materials                             2,350           2%         91%           2,493           2%            90%          2,269           2%         89%       2,081           2%         92%          1,838           2%         91%
                     Technology                                    881           1%        100%            927            1%           100%           964            1%        100%       1,006           1%        100%            855           1%        100%
                     Media & internet                            1,300           1%         98%           1,318           1%            98%          1,368           1%         98%       1,313           1%         98%          1,178           1%        100%
                     Diversified & miscellaneous                   264           0%        100%            292            0%           100%           275            0%        100%        271            0%        100%            238           0%        100%
                     Total                                   120,692          100%          96%       117,416          100%            96%        120,487         100%          96%    120,172         100%          96%       101,459         100%          96%


                     Government & agency                         2,101          11%        100%           2,155          11%            96%          2,183          11%         96%       2,153          11%         95%          1,984          10%         95%
                     Financial                                   1,876          10%         93%           2,078          10%            94%          2,104          10%         94%       2,110          10%         94%          2,037          11%         93%
                     Telecommunications                             78           0%        100%             78            1%           100%            80            0%        100%         83            0%        100%             82           0%        100%
                     Utilities                                   6,883          35%         89%           6,741          34%            89%          6,623          33%         89%       6,560          32%         89%          6,035          32%         91%
Private Placements




                     Energy                                      1,840           9%        100%           1,821           9%           100%          1,771           9%        100%       1,801           9%        100%          1,691           9%        100%
                     Industrial                                  1,764           9%         82%           1,838           9%            84%          1,921          10%         83%       2,025          10%         84%          1,908          10%         85%
                     Securitized MBS/ABS                            61           0%        100%             65            0%           100%            76            0%        100%         96            1%        100%            111           1%        100%
                     Consumer (non-cyclical)                     2,207          11%         86%           2,234          11%            86%          2,358          12%         87%       2,174          11%         86%          2,130          11%         86%
                     Consumer (cyclical)                         1,237           6%         76%           1,219           6%            76%          1,238           6%         76%       1,266           6%         76%          1,218           6%         77%
                     Basic materials                             1,567           8%         76%           1,621           8%            75%          1,684           8%         75%       1,761           9%         76%          1,716           9%         74%
                     Technology                                     26           0%        100%             26            0%           100%            26            0%        100%         27            0%        100%             26           0%        100%
                     Media & internet                              200           1%         69%            222            1%            69%           230            1%         70%        241            1%         71%            240           1%         72%
                     Diversified & miscellaneous                     0           0%          n/a             0            0%                n/a         0            0%          n/a         0            0%          n/a             0           0%          n/a
                     Total                                     19,840         100%          89%        20,098          100%            88%         20,294         100%          88%     20,297         100%          88%        19,178         100%          89%


                     Government & agency                        59,904          43%         96%         55,929           41%            96%         58,904          42%         96%      58,262          41%         96%         46,278          38%         96%
                     Financial                                  20,200          14%         95%         21,308           15%            96%         21,161          15%         95%      21,096          15%         95%         19,672          16%         94%
                     Telecommunications                          2,152           1%        100%           2,181           1%           100%          2,197           2%        100%       2,304           2%        100%          2,117           2%        100%
                     Utilities                                  20,840          15%         95%         20,080           15%            94%         20,114          14%         94%      19,978          14%         94%         17,359          15%         95%
                     Energy                                      9,422           7%         97%           9,175           7%            97%          9,158           6%         97%       9,094           6%         97%          8,074           7%         97%
                     Industrial                                  7,106           5%         95%           6,902           5%            95%          7,116           5%         95%       7,220           5%         95%          6,442           5%         95%
Total




                     Securitized MBS/ABS                         4,442           3%         90%           5,537           4%            90%          5,734           4%         91%       6,416           5%         90%          6,190           5%         90%
                     Consumer (non-cyclical)                     6,866           5%         96%           6,613           5%            95%          6,686           5%         95%       6,408           5%         95%          5,615           5%         95%
                     Consumer (cyclical)                         3,012           2%         89%           2,890           2%            88%          2,895           2%         86%       2,991           2%         86%          2,799           2%         86%
                     Basic materials                             3,917           3%         85%           4,114           3%            85%          3,953           3%         83%       3,842           3%         84%          3,554           3%         83%
                     Technology                                    907           1%        100%            953            1%           100%           990            1%        100%       1,033           1%        100%            881           1%        100%
                     Media & internet                            1,500           1%         94%           1,540           1%            94%          1,598           1%         94%       1,554           1%         94%          1,418           1%         95%
                     Diversified & miscellaneous                   264           0%        100%            292            0%           100%           275            0%        100%        271            0%        100%            238           0%        100%
                     Total                                   140,532          100%          95%       137,514          100%            95%        140,781         100%          95%    140,469         100%          95%       120,637         100%          95%


                                                                                                                                  Page 28                                                                   INVESTED ASSETS - FIXED INCOME SECURITIES BY SECTOR
INVESTED ASSETS - PROVISIONS, IMPAIRMENTS & UNREALIZED LOSSES
(Canadian $ in millions, unaudited)




Unrealized (losses)

                                                       As at Q2 2012                                                 As at Q1 2012                                                     As at Q4 2011                                              As at Q3 2011                                           As at Q2 2011
                                                                               Amounts                              Gross unrealized            Amounts                                                       Amounts                            Gross unrealized      Amounts                           Gross unrealized        Amounts
                                        Amortized Gross unrealized (losses) < 80% cost              Amortized           (losses)             < 80% cost        Amortized         Gross unrealized (losses) < 80% cost          Amortized             (losses)       < 80% cost           Amortized           (losses)         < 80% cost
                                          cost                         $ % > 6 months                 cost                  $       %        > 6 months          cost           $                       % > 6 months             cost                    $        % > 6 months             cost                $      %       > 6 months

Public bonds
    Government                               52,121           (209)        0%                 -          49,952        (431)           1%             -                51,478         (257)            0%             -            50,978             (261)        1%            -            43,402        (588)      1%               -
    Corporate
     Financials                              17,357           (260)        1%              (157)         18,403        (284)           2%            (125)             18,486         (455)            2%             (86)         18,279             (413)        2%            (86)         16,947        (220)      1%               (74)
     Non-financials                          35,176           (115)        0%               (45)         34,878        (119)           0%              (3)             34,449         (138)            0%             -            34,456             (145)        0%            -            31,326        (151)      0%               -
    Securitized
    CMBS                                     2,301             (81)        4%               (62)         3,146          (93)           3%             (69)            3,385           (110)            3%             (56)          3,865            (131)         3%            (74)         3,860          (78)     2%                (52)
    RMBS                                       394             (96)       24%               (79)           507         (133)          26%            (117)              586           (185)           32%            (158)            626            (196)        31%           (165)           606         (173)    29%               (145)
    ABS                                      1,686             (41)        2%               (34)         1,827          (44)           2%             (33)            1,786            (60)            3%             (39)          1,929             (64)         3%            (38)         1,645          (50)     3%                (39)
Private placement debt                      19,840            (111)        1%               (40)        20,098         (103)           1%             (22)           20,294           (125)            1%             (21)         20,297            (133)         1%             (3)        19,178         (137)     1%                -
                               1
Fixed income securities                   128,875            (913)        1%              (417)       128,811       (1,207)           1%            (369)          130,464         (1,330)            1%            (360)        130,430          (1,343)         1%           (366)       116,964       (1,397)     1%               (310)
1
  Gross unrealized losses consist of unrealized losses on AFS public bonds and private placements held at cost in the Corporate Surplus segments, as well as the difference between fair value and amortized cost on public bonds and private placements held in liability segments. Losses on AFS public bonds held in Surplus and on
all private placements are realized upon sale or by credit impairment. However, for fixed income securities supporting CALM liabilities, losses are only realized upon credit impairment because unrealized gains and losses on public bonds, which impact net investment income, are largely offset by the changes in actuarial liabilities
unless the security is credit impaired.



Provisions, impairments and recoveries 2

                                                       Q2 2012                                     Q1 2012                                        Q4 2011                                       Q3 2011                                      Q2 2011
                                            Par          Non-par       Total            Par           Non-par       Total            Par         Non-par           Total            Par         Non-par          Total             Par          Non-par         Total

Credit related
  Loans                                             -               (3)        (3)            (1)              (7)       (8)          -                1                   1          2                6             8              1                3               4
  Public bonds - FVTPL                             (2)            (12)       (14)              5             (16)      (11)         (14)            (22)                (36)         (9)            (12)          (21)              3               (2)              1
  Public bonds - AFS                                -               (3)        (3)              -            (13)      (13)           -               (4)                 (4)         -               (2)           (2)              -              (9)             (9)
  Other 3                                           -                2          2               -               1         1           -                1                   1         (1)            -               (1)             1             -                  1
Sub-total                                         (2)            (16)       (18)               4           (35)       (31)        (14)             (24)                (38)         (8)              (8)         (16)               5              (8)             (3)
Equity related
  Public - AFS                                      -             (15)       (15)               -            (10)      (10)           -             (22)                (22)          -             (24)          (24)               -            (10)             (10)
  Private equities - AFS and Other 3                -             -          -                  -            -         -              -             -                   -             -             -             -                  -            -                -
Sub-total                                           -            (15)       (15)                -          (10)       (10)        -                (22)                (22)           -            (24)          (24)                -           (10)             (10)
Total                                             (2)            (31)       (33)               4           (45)       (41)        (14)             (46)                (60)         (8)            (32)          (40)               5            (18)             (13)
2
  Includes net new (provisions) recoveries on loans and net (impairments) gains on sale on public bonds and other invested assets, including those held at fair value. Although GAAP does not require us to measure the impairment portion of unrealized
  losses on public bonds classified as FVO, we believe this is a key metric for our business.
3
  Other credit related and equity related provisions, impairments and recoveries are included in investment income from Other Investments; please refer to the following page.


Net impaired fixed income assets

                                                 As at Q2 2012                               As at Q1 2012                                     As at Q4 2011                                  As at Q3 2011                            As at Q2 2011
                                             Gross             Impaired                  Gross             Impaired              Gross                             Impaired         Gross                       Impaired           Gross             Impaired
                                            amount Allowances     value                 amount Allowances     value             amount       Allowances               value        amount     Allowances           value          amount Allowances     value

Loans
  Mortgages and bank loans                     185            (55)        130               185             (61)         124          144             (53)                91           175            (57)            118              182             (50)        132
  Private placements                           188            (39)        149               214             (40)         174          223             (41)               182           195            (44)            151              267             (49)        218
Sub-total                                     373            (94)        279               399            (101)         298          367             (94)               273           370           (101)            269              449             (99)        350
Other fixed income 4
  Public bonds - FVTPL                         163               -        163               181                -         181          166               -                166           152              -             152              158               -         158
  Public bonds - AFS                            40               -         40                45                -          45           43               -                 43            39              -              39               37               -          37
  Other                                          2               -          2                  2               -           2            2               -                  2             2              -               2                4               -           4
Sub-total                                     205                -       205               228                 -        228          211                -               211           193              -             193              199               -         199
Total                                         578            (94)        484               627            (101)         526          578             (94)               484           563           (101)            462              648             (99)        549
4
  Impairments of Other fixed income assets are charged directly to the carrying value of the asset. Accordingly, no allowances are   shown against these assets.


                                                                                                                                                             Page 29                                                                                          INVESTED ASSETS - PROVISIONS, IMPAIRMENTS AND UNREALIZED LOSSES
INVESTMENT INCOME
(Canadian $ in millions, unaudited)


                                                                                                 Q2 2012                     Q1 2012                 Q4 2011              Q3 2011                  Q2 2011
                                                                                            Amount       Yield          Amount       Yield      Amount       Yield   Amount       Yield       Amount       Yield




Cash and short-term securities
Investment income                                                                                      28        n/a           24        n/a           19     n/a           36     n/a                33      n/a

Bonds
Interest income                                                                                   1,140         4.3%        1,164       4.3%        1,192    4.4%        1,149    4.6%            1,128      4.7%
Impairments, net 1                                                                                  (17)                      (24)                    (40)                 (23)                      (8)
Gains (losses) on assets backing Surplus                                                            213                       (87)                     31                  613                      110
Total                                                                                             1,336         4.5%        1,053       3.6%        1,183    4.1%        1,739    6.6%            1,230      4.9%
1
    Includes impairments on bonds classified as AFS and FVTPL.

Stocks
Dividend income                                                                                        91       3.4%            52      1.9%            77   3.1%            70   2.7%                82     3.1%
Impairments, net                                                                                     (15)                     (10)                    (22)                 (24)                     (10)
Gains on assets backing Surplus                                                                       (4)                      38                      25                   29                       32
Total                                                                                                 72        2.7%           80       3.0%           80    3.2%           75    2.9%              104      3.9%

Loans
Mortgage loan interest income                                                                        434        5.1%          424       5.0%          426    5.0%          411    5.0%               414     5.1%
Private placement interest income                                                                    329        6.8%          326       6.6%          329    6.7%          361    7.6%               320     6.8%
Policy loan interest income                                                                          100        5.9%            97      5.8%          102    6.0%           97    5.9%                96     6.0%
Bank loan interest income                                                                              22       4.0%            23      4.1%           24    4.3%           24    4.3%                24     4.2%
Recoveries (impairments), net                                                                         (3)                      (8)                     1                    8                         4
Total                                                                                                882        5.7%         862        5.5%         882     5.6%         901     5.9%              858      5.8%

Real estate
Rental and other income                                                                              109        5.7%          113       6.2%           79    4.7%           89    5.6%                94     6.2%
Gains (losses) on assets backing surplus                                                              3                        1                       1                     -                        1
Total                                                                                                112        5.8%         114        6.2%          80     4.7%          89     5.6%               95      6.2%

Other investments
Investment income                                                                                    139         n/a          91         n/a         204      n/a         105      n/a              146       n/a

Derivatives
Gains (losses) on macro equity hedges                                                                341                     (758)                   (423)                 910                       39
Other derivative income (loss)                                                                        13                      123                       9                 (158)                     104
Total                                                                                                354         n/a         (635)       n/a         (414)    n/a          752     n/a              143       n/a

                          2
Investment income                                                                                 2,923         5.4%       1,589        2.8%       2,034     3.7%       3,697     7.5%            2,609     5.4%
2
    Investment income includes dividends, interest, rental income and realized gains on assets supporting surplus.


Realized/ unrealized gains (losses) on assets supporting insurance and investment contracts
Bonds                                                                                             3,170                    (1,243)                   933                 6,521                    1,360
Stocks                                                                                              (370)                    691                     400                (1,110)                    (169)
Loans                                                                                                112                      28                      23                   (32)                      30
Real estate                                                                                           96                     196                      10                  131                        31
Other investments                                                                                     65                      27                        2                 164                       105
Derivatives                                                                                       4,224                    (3,765)                     (8)               7,817                      909
Total                                                                                             7,297          n/a       (4,066)       n/a        1,360     n/a       13,491     n/a            2,266       n/a


Total investment income (loss)                                                                   10,220         19.7%      (2,477)      -4.3%       3,394    6.3%       17,188    38.5%           4,875     10.2%

Investment expenses related to invested assets                                                       (95)        n/a          (92)       n/a         (108)    n/a          (95)    n/a              (84)      n/a

Investment income (loss) less investment expenses                                                10,125         19.5%      (2,569)      -4.5%       3,286    6.1%       17,093    38.3%           4,791     10.0%




                                                                                                                                     Page 30                               ASSET INFORMATION - INVESTEMENT INCOME
Actuarial Liabilities
   Information
VARIABLE ANNUITY PRODUCT GUARANTEES
(Canadian $millions, unaudited)




                                             Guarantee Value                                                                                      Net Amount at Risk 2                                                                         Policy Liabilities Held   4,6

                                                                        Net of                                                                                                        Net of
                                                                                                                                                                                                                                                                  Dynamically
                                                      Amount            Reinsurance                                                                               Amount              Reinsurance          Expected Gain/ (Loss)              Unhedged                                     Target Capital   Policy Liabilities Held
                                                                                                                                                                                                                                                                     Hedged
                      Gross          Amount           Dynamically       & Dynamic                                                               Amount            Dynamically         & Dynamic                from Guarantees 3               Business                                (200 % of MCCSR)      plus Target Capital
                                 5                                                                                                                                                                                                                                  Business
                      Amount         Reinsured        Hedged            Hedging 1                                      Gross Amount      5
                                                                                                                                                Reinsured         Hedged              Hedging 1
Q2 2012                 110,871             10,267            61,299            39,305                                            15,883                 2,579               6,243                 7,061                   (4,197)                3,241                        6,218               5,808                   15,267


Q1 2012                 109,187             10,347            60,363            38,477                                            12,776                 2,279               4,678                 5,819                   (1,623)                2,199                        3,794               5,723                   11,716


Q4 2011                 112,884             10,851            60,655            41,378                                            18,115                 2,975               7,085                 8,055                   (4,561)                3,586                        6,435               5,530                   15,551


Q3 2011                 114,263             11,397            60,579            42,287                                            21,004                 3,538               8,451                 9,015                   (4,987)                3,915                        6,782               5,223                   15,920


Q2 2011                 107,515             10,920            57,431            39,164                                            11,978                 2,277               3,840                 5,861                     508                  1,979                        1,257               4,808                    8,044




                                                                                                                 1
                                                              Net of Reinsurance & Dynamic Hedging

                                         Total                                 Total                                              Net                                                                      Key markets, closing levels         S&P 500                          TSX               TOPIX                      EAFE
As at Q2 2012                Guarantee Value 5                          Fund Value 5                                 Amount at Risk 2,5
                                                                                                                                                                                                           As at Q2 2012                          1,362                    11,597                   770                     1,423
US
Withdrawal Benefits                        11,087                               8,965                                              2,176
Income Benefits                               729                                 594                                                137                                                                   As at Q1 2012                          1,408                    12,392                   854                     1,553
Death Benefits                              2,869                               2,965                                                615
                                           14,685                              12,524                                              2,928
                                                                                                                                                                                                           As at Q4 2011                          1,258                    11,955                   729                     1,413
Canada
Withdrawal Benefits                            -                                  -                                                  -
Maturity Benefits                            4,403                              4,986                                                232                                                                   As at Q3 2011                          1,131                    11,624                   761                     1,373
Death Benefits                                 281                                -                                                  116
                                             4,684                              4,986                                                348
                                                                                                                                                                                                           As at Q2 2011                          1,321                    13,301                   849                     1,708
Japan
Withdrawal Benefits                         4,066                               3,046                                              1,020
Maturity Benefits                          12,512                              10,548                                              2,117
Income Benefits                               -                                   -                                                  -
Death Benefits                                696                                 370                                                211
                                           17,274                              13,964                                              3,348

Reinsurance & Other                          2,662                              2,475                                                437


1
    Net of dynamic hedging and amounts ceded to 3rd party reinsurers. Amounts reinsured include amounts covered under stop loss treaties as well as first dollar treaties. Some of the treaties include deductibles and claims limits.
2
    Net Amount at Risk is based on sum of excess of guarantee value over fund value only on contracts where amount at risk is currently positive.
3
    Expected Gain/(Loss) from Guarantees is the contract fees attributed to guarantees less the guarantee costs based on average of all scenarios. Not included in this amount is the value of expected profit on the underlying contracts that contain the guarantees.
4
    Under Phase I of IFRS 4, former Canadian GAAP valuation practices continue to apply to insurance contracts. This requires that reserves for segregated fund and variable products have a Conditional Tail Expectation ("CTE") of between 60 and 80.
    We hold CTE(70) level policy liabilities for unhedged business and CTE(75) level for dynamically hedged business.
5
    Total Guarantee Value, Total Fund Value and Net Amount at Risk includes certain HK products which are classified as investment contracts under IFRS. There is no reinsurance or hedging for these products.
6
    The policy liabilities are held within the insurance contract liabilities, investment contract liabilities and other liabilities, as applicable under IFRS and are shown net of reinsurance.



The net amount at risk is not currently payable. Guaranteed death benefits are contingent and only payable upon the eventual death of policyholders if fund values remain below guarantee values. Withdrawal, accumulation and income benefits are also contingent
and only payable at scheduled maturity in the future, if the policyholders are still living and have not terminated their policies and fund values remain below guarantee values.
Guaranteed benefits in a single contract are frequently a combination of death benefit and living benefit (withdrawal / maturity / income).
Death benefit amounts shown reflect only stand alone death benefits plus any excess of death benefits over living benefits on contracts with both death and other benefit forms.

                              CTE Level & Description                                                                                                                                  Comparable Market Scenario for North American Markets
CTE(0) is the average of all scenarios tested in the period                                                            Annual market growth of approximately 9.5%.
CTE(70) covers the average cost of the worst 30% of scenarios tested with the highest net cost                         Minimal market growth for 10 years, followed by annual market growth of approximately 5.5%.
CTE(90) covers the average cost of the worst 10% of scenarios tested with the highest net cost                         Immediate market decline of 20%-25%, followed by 10 years of no growth before resuming annual market growth of approximately 4%.
CTE(95) covers the average cost of the worst 5% of scenarios tested with the highest net cost                          Immediate market decline of 35%-40%, followed by 10 years of no growth before resuming annual market growth of approximately 3.5%.



                                                                                                                                                                   Page 31                                                               ACTUARIAL LIABILITIES INFORMATION - VARIABLE ANNUITY PRODUCT GUARANTEES




                                                                                                                                                                                                                                                                                                                                                 Note: ending assets at balance sheet rate
                                                                                                                                                                                                                                                                                                                                                 Diff goes to net investment income and other
                                                                                                                                                                                                                                                                                                                                            0
                                                                                                                                                                                                                                                                                                                                                  3880765
                                                                                                                                                                                                                                                                                                                                          6096     985206      2895559    4546028
                                                                                                                                                                                                                                                                                                                                         -2855
                                                                                                                                                                                                                                                                                                                                                  1582769
                                                                                                                                                                                                                                                                                                                                                  1586727
                                                                                                                                                                                                                                                                                                                                         -5168    1379184
                                                                                                                                                                                                                                                                                                                                                  1546558    1546.5577    1546.558
                                                                                                                                                                                                                                                                                                                                      24701.86    6095237

                                                                                                                                                                                                                                                                                                                                                 742501.7    -742.5017    -742.502

                                                                                                                                                                                                                                                                                                                                                 1155.759    1155.7591
ACTUARIAL LIABILITIES - WEALTH MANAGEMENT DAC BALANCES
(Canadian $ in millions, unaudited)

                                                                           2012                       2012                        2011                        2011                       2011
                                                                             Q2                         Q1                          Q4                          Q3                         Q2

Change in Deferred Acquisition Costs (DAC)
Opening balance                                                           4,357                       4,537                      4,700                       4,531                       4,636
Amount capitalized                                                          152                         147                        163                         150                         166
Amount amortized                                                           (252)                       (252)                      (251)                       (254)                       (251)
Currency                                                                     71                         (75)                       (75)                        273                         (20)
Ending balance                                                            4,328                       4,357                      4,537                       4,700                       4,531


DAC Balances
Hong Kong                                                                   200                         196                        201                         206                         191
Japan                                                                       210                         211                        248                         274                         261
Canadian Individual Wealth Management                                     1,035                       1,036                      1,032                       1,014                       1,019
John Hancock Annuities                                                    1,425                       1,490                      1,619                       1,749                       1,708
John Hancock Wealth Asset Management                                      1,370                       1,337                      1,352                       1,371                       1,266
Other                                                                        88                          87                         85                          86                          86
Total DAC                                                                 4,328                       4,357                      4,537                       4,700                       4,531


Funds Under Management
Hong Kong                                                               10,849                       10,997                     10,546                     10,203                      11,127
Japan                                                                   16,660                       16,558                     16,965                     17,198                      16,256
Canadian Individual Wealth Management 1                                 49,340                       49,629                     47,804                     45,982                      47,926
John Hancock Annuities 1                                                56,199                       56,095                     54,683                     54,594                      54,370
John Hancock Wealth Asset Management                                   107,085                      106,798                     98,737                     94,697                      99,872
Other                                                                   22,880                       23,091                     21,645                     20,684                      21,788
Total Funds Under Management                                           263,013                      263,168                    250,380                    243,358                     251,339


DAC as a % of Funds Under Management
Hong Kong                                                                  1.8%                        1.8%                        1.9%                       2.0%                        1.7%
Japan                                                                      1.3%                        1.3%                        1.5%                       1.6%                        1.6%
Canadian Individual Wealth Management                                      2.1%                        2.1%                        2.2%                       2.2%                        2.1%
John Hancock Annuities                                                     2.5%                        2.7%                        3.0%                       3.2%                        3.1%
John Hancock Wealth Asset Management                                       1.3%                        1.3%                        1.4%                       1.4%                        1.3%
Other                                                                      0.4%                        0.4%                        0.4%                       0.4%                        0.4%
Total DAC as a % of Funds Under Management                                 1.6%                        1.7%                        1.8%                       1.9%                        1.8%

DAC balances are classified as reductions in liabilities for products classified as insurance contracts and as other assets on the statement of financial position for products not classified
as insurance contracts. Recoverability is tested quarterly.

1
    Funds under management has been adjusted to show only the assets with applicable DAC balances.



                                                                                          Page 32                    ACTUARIAL LIABILITIES INFORMATION - WEALTH MANAGEMENT DAC BALANCES
REGULATORY CAPITAL
(Canadian $ in millions, unaudited)



                                                                                                                                          IFRS 1
                                                                                                        2012                2012                 2011                 2011                 2011
                                                                                                          Q2                  Q1                   Q4                   Q3                   Q2

The Manufacturers Life Insurance Company's MCCSR

Capital available:
  Tier 1 capital
     Common shares                                                                                     22,258             21,769               21,769               21,574               21,574
     Retained earnings and CTA                                                                          5,531              5,312                4,473                6,360                6,134
     Qualifying non-controlling interests                                                                 496                474                  390                  445                  442
     Innovative instruments                                                                             1,000              2,000                2,000                2,000                2,000
     Other                                                                                              2,994              3,078                3,044                3,028                3,141
     Gross Tier 1 capital                                                                              32,279             32,633               31,676               33,407               33,291
     Deductions:
     Goodwill & intangibles in excess of limit                                                         (3,378)            (3,345)              (3,404)              (4,106)              (3,939)
     Other                                                                                             (4,952)            (4,410)              (4,434)              (5,399)              (4,933)
     Adjustments                                                                                       (1,288)            (1,242)                (828)                (973)                (934)
  Net Tier 1 capital - A                                                                               22,661             23,636               23,010               22,929               23,485

    Tier 2 Capital
       Tier 2A                                                                                            461                 502                  460                  471                  575
       Tier 2B allowed                                                                                  2,487               2,484                1,986                1,439                1,429
       Tier 2C                                                                                          4,656               4,653                4,653                4,718                4,470
        Adjustments                                                                                    (1,288)             (1,242)              (1,665)              (1,769)              (1,697)
    Total Tier 2 capital allowed                                                                        6,316               6,397                5,434                4,859                4,777

Total Tier 1 and Tier 2 capital                                                                        28,977             30,033               28,444               27,788               28,262
Less Adjustments                                                                                            -                  -                    -                    -                    -
Total Capital Available - B                                                                            28,977             30,033               28,444               27,788               28,262

Capital Required:
  Asset default & market risk                                                                           8,328              8,332                8,082                7,763                7,247
  Insurance risks                                                                                       3,114              2,935                2,964                2,830                2,674
  Interest rate risks                                                                                   2,150              2,098                2,109                2,079                1,822
Total Capital Required - C                                                                             13,592             13,365               13,155               12,672               11,743

MCCSR Ratio: Total (B/C) x 100                                                                          213%                225%                 216%                 219%                 241%
1
 Under the IFRS transition guidance outlined by the Office of the Superintendent of Financial Institutions, the impact of IFRS adoption on available capital is largely phased-in over an eight
quarter period which began with the first quarter of 2011. The impact on required capital is not subject to the phase-in rules. The phased-in adoption of IFRS reduced MLI’s MCCSR ratio by
approximately 5.4 points over the year of 2011 and the first two quarters in 2012 and is expected to reduce the ratio by approximately a further 0.7 points over the remainder of the two year
phase-in period ending with the fourth quarter of 2012.

                                                                                             Page 33                                          CAPITAL INFORMATION - REGULATORY CAPITAL
GLOSSARY OF TERMS AND DEFINITIONS

Accumulated Other Comprehensive Income (AOCI): A separate component of                       Institutional Clients: Organizations that are non-Manulife-affiliated for which MFC Global
shareholders’ equity which includes net unrealized gains and losses on available -for-sale   Investment Management provides investment management services. Such clients include pensions,
securities, net unrealized gains and losses on derivative instruments designated within an   endowments and other external investment managers and wealth management organizations.
effective cash flow hedge, and unrealized foreign currency translation gains and losses.
These items have been recognized in comprehensive income, but excluded from net              Investment Contracts: Products that do not contain insurance risk (as defined under IFRS) and
income.                                                                                      are accounted for as financial liabilities at amortized cost or fair value.

Return on Common Shareholders' Equity: Common shareholders' net income divided Leveraged Leases: In these leases the financing provided by the long-term creditor is
by average common shareholders' equity excluding accumulated other comprehensive             nonrecourse as to the general credit of the lessor. The amount of the financing is sufficient to
income (loss) on available-for-sale securities and on cash flow hedges.                      provide the lessor with substantial "leverage" in the transaction. Income is recognized on a
                                                                                             constant yield basis.
Annuity: A contract which allows the contract holder to either (i) accumulate funds for
retirement planning, or (ii) receive scheduled payments, either periodically for a specified Long-Term Care (LTC): Insurance coverage available on an individual or group basis to provide
period of time or until death.                                                               reimbursement for medical and other services to the chronically ill, disabled or mentally challenged.
· Fixed Annuity: The return to the contract holder is specified in the contract, i.e., the
Company bears the investment risk.                                                           Minimum Continuing Capital and Surplus Requirements (MCCSR): The ratio of the
· Book Value Annuity: An annuity which provides a declared rate of interest for a            available capital of a life insurance company to its required capital, each as calculated under the
specified contract while offering a guarantee of principal amount.                           Office of the Superintendent of Financial Institutions' (OSFI) published guidelines.
· Variable Annuity: Funds are invested in segregated funds (also called separate
accounts in the U.S.) and the return to the contract holder fluctuates according to the      Premiums and Deposits: Include general fund premiums, segregated fund deposits, institutional
earnings of the underlying investments. In some instances, guarantees are provided.          advisory account deposits, mutual fund deposits, other fund deposits and ASO premium
                                                                                             equivalents.
Available-For-Sale (AFS) Financial Assets: Non-derivative financial assets that are          #
                                                                                             · General Fund Premiums: Premiums earned on insurance and fixed annuity contracts as
designated as available-for-sale or that are not classified as loans and receivables, held-  reflected in the Company’s statement of operations.
to-maturity investments, or held for trading.                                                · Segregated Fund Deposits: Deposits related to insurance, annuity and pension products which
                                                                                             are invested in segregated funds.
Book Value per Share: Ratio obtained by dividing common shareholders' equity by the · Mutual Fund Deposits: Deposits received in proprietary mutual funds.
number of common shares outstanding at the end of the period.                                · Institutional Advisory Account Deposits: Deposits received in the Institutional Advisory
                                                                                             Accounts.
Cash Flow Hedges: A hedge of the exposure to variability in cash flows associated with · Other Fund Deposits: Deposits received from customers related to non-proprietary funds for
a recognized asset or liability, a forecasted transaction or a foreign currency risk in an   Manulife-branded products.
unrecognized firm commitment that is attributable to a particular risk and could affect      · ASO Premium Equivalents: ASO (“administrative services only") contracts are group insurance
reported net income.                                                                         contracts administered by the Company on behalf of the client on which the Company earns a fee
                                                                                             for its services but the client retains all risks inherent in the group insurance. ASO premium
Corporate Owned Life Insurance (COLI): Life insurance purchased by organizations, equivalents are a measure of the business volume calculated as expected claims plus
predominantly to finance non-qualified executive deferred compensation plans.                administrative fees charged.

Deferred Acquisition Costs (DAC): Costs directly attributable to the acquisition of new Sales: Sales are measured according to product type.
business, principally agents’ compensation, which are capitalized on the Company’s      · Individual Insurance: New annualized premiums reflect the annualized premium expected in
balance sheet and amortized into income over a specified period.                        the first year of a policy that requires premium payments for more than one year. Sales are
                                                                                        reported gross before the impact of reinsurance. Single premium is the lump sum premium from
Fair Value: Amount of consideration that would be agreed upon in an arm’s length        the sale of a single premium product e.g. travel insurance.
transaction between knowledgeable, willing parties who are under no compulsion to act.  · Group Insurance: Sales include new annualized premiums and ASO premium equivalents on
                                                                                        new cases, as well as the addition of new coverages and amendments to contracts, excluding rate
Funds Under Management (FUM): Include general fund assets, segregated fund              increases.
assets, institutional advisory accounts, mutual fund assets and other funds.            · Individual Wealth Management: All new deposits are reported as sales. This includes
· General Fund Assets: Total invested assets as presented on the Company’s balance      individual annuities, both fixed and variable; segregated fund products; mutual funds; college
sheet.                                                                                  savings 529 plans; and authorized bank loans and mortgages.
· Segregated Fund Assets: Net assets held by policyholders in segregated funds related · Group Pensions: New regular premiums reflect an estimate of expected deposits in the first
to insurance, annuity and pension products. These funds are maintained separately from  year of the plan with the Company. Single premium sales reflect the assets transferred from the
the Company’s general account and the policyholder / contract holder bears the          previous plan provider. Sales include the impact of the addition of a new division of or a new
investment risk of the underlying fund.                                                 product to an existing client as well as increases in the contribution rate for an existing plan.
· Mutual Fund Assets: Net assets held in proprietary mutual funds.
· Institutional Advisory Accounts: Accounts either separate or commingled of            Total Capital: Capital funding that is both unsecured and permanent in nature. Comprises total
Institutional Clients for which MFC Global Investment Management provides investment    equity (excluding AOCI on cash flow hedges), liabilities for preferred shares and qualifying capital
management services and that do not meet the definition of Segregated Funds.            instruments.
· Other Funds: Funds managed or administered by the Company other than those
associated with a contract issued by the Company.                                       Universal Life Insurance: A form of permanent life insurance with flexible premiums. The
                                                                                        customer may vary the premium payment and death benefit within certain restrictions. The
Impaired Assets: Mortgages, bonds and other investment securities in default where      contract is credited with a rate of interest based on the return of a portfolio of assets held by the
there is no longer reasonable assurance of collection.                                  Company, possibly with a minimum rate guarantee, which may be reset periodically at the
                                                                                        discretion of the Company.

                                                                                             Variable Universal Life Insurance: A form of permanent life insurance with flexible premiums
                                                                                             in which the cash value and possibly the death benefit of the policy fluctuate according to the
                                                                                             investment performance of segregated funds (or separate accounts).




                                                                                             Page 34                                                   GLOSSARY OF TERMS AND DEFINITIONS
GENERAL INFORMATION




MANULIFE FINANCIAL CORPORATION HEAD OFFICE                            INVESTOR INFORMATION
200 Bloor Street East                                                 Anthony G. Ostler, SVP, Investor Relations
Toronto, Ontario                                                      (416) 926-5471
Canada M4W 1E5                                                        E-mail: anthony_ostler@manulife.com
Web Site: www.manulife.com


TRANSFER AGENT                                                        INDUSTRY RATING INFORMATION
Canada                                                                The following credit rating agencies each assign claims paying and financial
CIBC Mellon Trust Company                                             strength ratings to our main operating subsidiaries, The Manufacturers Life
1-800-783-9495                                                        Insurance Company and John Hancock Life Insurance Company (U.S.A.),
www.cibcmellon.com/investor                                           thereby recognizing these companies as having strong credit ratings in the
                                                                      insurance industry.
United States
Mellon Investor Services                                              The Manufacturers Life Insurance Company
1-800-249-7702                                                        Purpose                                 Rating agency                                    Rating
www.melloninvestor.com                                                Claims paying/                          Standard & Poor's                                AA-
                                                                      Financial strength                      Moody's                                          A1
                                                                                                              FitchRatings                                     AA-
COMMON STOCK                                                                                                  DBRS                                             IC-1
Common Stock of Manulife Financial is traded on:                                                              A.M. Best                                        A+
Stock Exchange    Symbol
Toronto            MFC                                                John Hancock Life Insurance Company (U.S.A)
New York           MFC                                                Purpose                                 Rating agency                                    Rating
Hong Kong          945                                                Claims paying/                          Standard & Poor's                                AA-
Philippines        MFC                                                Financial strength                      Moody's                                          A1
                                                                                                              FitchRatings                                     AA-
                                                                                                              DBRS                                             not rated
                                                                                                              A.M. Best                                        A+




Manulife, Manulife Financial, the Manulife Financial For Your Future logo, the Block Design, the Four Cubes Design, and Strong Reliable Trustworthy Forward-thinking are
trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.



                                                                       Page 35                                                                                GENERAL INFORMATION

				
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