Statistical Information Package - Manulife2010 2010 2010 2010 2009 YTD YTD Q4 Q3 Q2 Q1 Q4 2010 2009...

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Statistical Information Package

Q4 2010

TABLE OF CONTENTS

Page Page

Financial Reporting Structure 1 Asset InformationNotes to Readers 2 Asset Composition and QualityFinancial Highlights 3 Portfolio Composition 29

Fixed Income Securities by Credit Quality and Geographic Location 30Consolidated Financial Statements Fixed Income Securities by Sector 31

Statements of Operations 6 Provisions, Impairments & Unrealized Gains/(Losses) 32Balance Sheets 7 Investment Income 33Statements of Equity 8Statements of Cash Flows 9Statements of Segregated Funds 10 Actuarial Liabilities InformationSource of Earnings 11 Variable Annuity Product Guarantees 34

Wealth Management DAC Balances 35Embedded Value 36

Segmented InformationU.S. Insurance 12 Capital Information

John Hancock Life 13 Regulatory Capital 39John Hancock Long-Term Care 14

U.S. Wealth Management 15 Glossary of Terms and Definitions 40John Hancock Variable Annuities 16John Hancock Wealth Asset Management 17 General Information 41John Hancock Fixed Products 18

Canada 19Individual Insurance 20Individual Wealth Management 21Group Businesses 22

Asia 23Hong Kong 24Other Asia Territories 25Japan 26

Reinsurance 27Corporate & Other 28

Certain comparative amounts have been restated to conform to the current quarter's presentation

FINANCIAL REPORTING STRUCTURE

JOHN HANCOCK LIFE JOHN HANCOCK VARIABLE ANNUITIES

INDIVIDUAL INSURANCE HONG KONG

Variable Universal Life Variable Annuities* Universal Life Individual Insurance Life CorporateUniversal Life Whole Life Group Life and Health Property and Casualty JH Accident and Health**Whole Life Term Life Group Pensions International Group Program: Institutional Advisory AccountsTerm Life Living Benefits Mutual Funds Group Life & HealthCOLI Affinity Markets Group PensionsUniversal Life with Lifetime No-Lapse Guarantees*Guaranteed Non-Par Whole Life*

JOHN HANCOCK LONG-TERM CARE (LTC)

JOHN HANCOCK WEALTH ASSET MANAGEMENT

INDIVIDUAL WEALTH MANAGEMENT (IWM)

OTHER ASIA TERRITORIES

Retail LTC * Defined Contribution Annuities Individual InsuranceGroup LTC* Mutual Funds Fixed Rate Products Group Life and HealthFederal LTC* Privately Managed Accounts Segregated Funds* Group Pensions

College Savings Manulife Bank Variable Annuities*Mutual Funds Mutual Funds

JOHN HANCOCK FIXED PRODUCTS

GROUP BUSINESSES JAPAN

Fixed Deferred Annuities* Group Life and Health Individual Insurance Payout Annuities Group Retirement Solutions Variable Annuities*Spread-based ProductsFee-based Products

* Products not targeted for growth** Discontinued productsWe are targeting to grow all other products

CANADA ASIA

MFC

REINSURANCE CORPORATE & OTHERU.S. INSURANCE U.S. WEALTH MANAGEMENT

Page 1 FINANCIAL REPORTING STRUCTURE

Notes to Readers

#

C

Use of this document:Information in the document is supplementary to the Company's fourth quarter Press Release and the MD&A and audited financial statements in the Company's most recent Annual Report and should be read in conjunction with those documents.

Performance and Non-GAAP MeasuresWe 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, premiums and deposits, funds under management, constant currency basis, new business embedded value, capital and sales. Non-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 isolation or as a substitute for any other financial information prepared in accordance with GAAP.

Return on common shareholders' equity is a profitability measure that presents the net income available to common shareholders 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 Operations, (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.

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, (ii) non-controlling interest in subsidiaries, (iii) liabilities for preferred shares, and (iv) qualifying 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.

New business embedded value (“NBEV”) is the change in shareholders’ economic value as a result of sales in the period. NBEV is calculated as the present value of expected future earnings after the cost of capital on new business using future mortality, morbidity, policyholder behavior assumptions, expense and investment assumptions used in the pricing of the products sold. The investment assumptions for long duration products are based on the long-term investment assumptions typically determined during the annual planning cycle.

Constant currency basisQuarterly amounts stated on a constant currency basis are calculated using Q4 2009 income statement and balance sheet rates as appropriate. Year-to-date amounts stated on a constant currency basis for earnings, sales and premiums and deposits are calculated using the prior year quarterly income statement rates in effect for each respective quarter.

NOTES TO READERSPage 2

FINANCIAL HIGHLIGHTS(Canadian $ in millions unless otherwise stated and per share information, unaudited)

2010 2010 2010 2010 2009 YTD YTDQ4 Q3 Q2 Q1 Q4 2010 2009

Shareholders' Net Income (Loss) by Division U.S. Insurance 367 206 (720) 131 (117) (16) (1,441) U.S. Wealth Management 589 340 (504) 350 671 775 2,186 Canada 635 358 (344) 301 384 950 745 Asia 339 567 (710) 427 291 623 1,739 Reinsurance 89 36 4 54 92 183 261 Corporate and other (225) (2,454) (104) (123) (453) (2,906) (2,088) Net income (loss) attributed to shareholders 1,794 (947) (2,378) 1,140 868 (391) 1,402 Preferred share dividends (20) (19) (20) (20) (20) (79) (64) Net income (loss) available to common shareholders 1,774 (966) (2,398) 1,120 848 (470) 1,338 Net income (loss) available to common shareholders on a constant currency basis 1,806 (1,000) (2,484) 1,125 848 (600) 1,338

Shareholders' Net Income (Loss) by Division excluding Investment and Market Related Experience Gains (Losses)1

U.S. Insurance 135 164 57 31 43 387 243 U.S. Wealth Management 176 164 145 174 154 659 762 Canada 329 258 241 217 331 1,045 1,071 Asia 150 227 266 236 243 879 1,123 Reinsurance 67 28 59 49 89 203 321 Corporate and Other excluding goodwill impairment and changes in actuarial methods and assumptions (115) 23 (111) (113) (290) (316) (551) Net income attributed to shareholders before items below 742 864 657 594 570 2,857 2,969 Goodwill impairment and changes in actuarial methods and assumptions (54) (3,070) 13 - (147) (3,111) (1,286)

1,106 1,259 (3,048) 546 445 (137) (281) Net income (loss) attributed to shareholders 1,794 (947) (2,378) 1,140 868 (391) 1,402 1 Investment and market related experience gains (losses) as a result of equity, interest rate, credit and other non-fixed income returns differing from our best estimate policy liability assumptions.

Selected Performance Measures Basic earnings (loss) per common share $1.00 ($0.55) ($1.36) $0.64 $0.51 (0.27)$ 0.82$ Basic earnings (loss) per common share on a constant currency basis $1.02 ($0.57) ($1.41) $0.64 $0.51 Diluted earnings (loss) per common share $1.00 ($0.55) ($1.36) $0.64 $0.51 (0.27)$ 0.82$ Return on common shareholders' equity (annualized) 2

28.6% (15.4)% (36.4)% 16.8% 13.1% (1.8)% 5.2%2 Return on common shareholders' equity is net income (loss) available to common shareholders 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 - targeted growth products 3 4,745 4,555 4,290 4,221 4,437 17,811 17,747 Premiums and deposits - Insurance - targeted growth products on a constant currency basis 4,796 4,564 4,354 4,256 4,437 18,526 17,747 3 See Page 1 for targeted growth products

Premiums and deposits - Insurance - products not targeted for growth 4 972 930 1,024 954 2,124 3,880 5,205 Premiums and deposits - Insurance - products not targeted for growth on a constant currency basis 1,013 947 1,051 969 2,124 4,301 5,205

Premiums and deposits - Wealth Management - targeted growth products 9,511 8,130 9,313 9,722 7,976 36,676 35,143 Premiums and deposits - Wealth Management - targeted growth products on a constant currency basis 9,827 8,235 9,526 9,838 7,976 39,868 35,143

Premiums and deposits - Wealth Management - products not targeted for growth 1,479 1,327 1,647 2,241 1,998 6,694 13,175 Premiums and deposits - Wealth Management - products not targeted for growth on a constant currency basis 1,503 1,331 1,686 2,272 1,998 7,153 13,175

Insurance sales - targeted growth products 591 540 449 468 440 2,048 1,766 Insurance sales - targeted growth products on a constant currency basis 591 535 460 473 440 2,124 1,766

Insurance sales - products not targeted for growth 111 97 148 126 149 482 591 Insurance sales - products not targeted for growth on a constant currency basis 115 100 152 127 149 537 591

Wealth management sales - targeted growth products 7,734 6,325 6,460 6,857 6,216 27,376 23,785 Wealth management sales - targeted growth products on a constant currency basis 7,947 6,383 6,585 6,929 6,216 29,330 23,785

Wealth management sales - products not targeted for growth 1,480 1,328 1,655 2,271 1,998 6,735 13,221 Wealth management sales - products not targeted for growth on a constant currency basis 1,503 1,335 1,696 2,301 1,998 7,204 13,221

4 See Page 1 for products not targeted for growth

Investment and market related experience gains (losses) 1

-22%-25% -37%

-

- -

8%

96%

-46%-25%

7%

-54%-52%

19%23%

-26%-25%

34%

100%96%

118%

-

--

2009 Q4

--12%

--65%

59%

107%

2010 Q4vs.

YTD 2010vs.

0%

65%16%

YTD 2009

-3%

28%-64%

---

-30%

-

107%

23%-109%

113%

214%

-38%

14% -14%

-149% -

-30%

-1% -2%

-4%

34%

-26%-23%

24%28%

-26%

0%4%

-25%-17%

4%13%

-49%-46%

15%23%

-49%

16%20%

-18%-9%

FINANCIAL HIGHLIGHTSPage 3

FINANCIAL HIGHLIGHTS (CONT'D)(Canadian $ in millions unless otherwise stated and per share information, unaudited)

2010 2010 2010 2010 2009 YTD YTDQ4 Q3 Q2 Q1 Q4 2010 2009

Premiums and Deposits - Insurance - targeted growth products Life and health insurance premiums 1 2,679 2,628 2,332 2,261 1,451 9,900 9,794 Segregated fund deposits 471 371 369 378 1,404 1,589 2,564 ASO premium equivalents 662 636 673 676 663 2,647 2,629 Group Benefits ceded 1 933 920 916 906 919 3,675 2,760 Total premiums and deposits - Insurance - targeted growth products 4,745 4,555 4,290 4,221 4,437 17,811 17,747 1 At the end of the first quarter of 2009, Canadian Group Benefits entered into an external reinsurance agreement which resulted in a substantial reduction in net premium revenue reported in the income statement. The Company continues to retain

certain benefits and certain risks on this business and the associated direct premiums continue to be included in the overall premiums and deposits metric as "Group Benefits ceded".

Premiums and deposits - Insurance - products not targeted for growth Universal life with lifetime no-lapse guarantees and guaranteed non-par whole life 413 381 493 447 625 1,734 2,197 Long-Term Care 559 549 531 507 1,499 2,146 3,008 Total premiums and deposits- Insurance - products not targeted for growth 972 930 1,024 954 2,124 3,880 5,205

Premiums and deposits - Wealth Management - targeted growth products Annuity and pension premiums 1,084 955 980 1,058 936 4,077 4,380 Segregated fund deposits 4,177 3,785 4,086 4,707 4,161 16,755 16,912 Mutual fund deposits 3,662 2,928 3,056 2,966 2,378 12,612 8,733 Institutional advisory account deposits 443 350 1,060 847 363 2,700 4,492 Other fund deposits 1 145 112 131 144 138 532 626 Total Premiums and deposits - Wealth Management - targeted growth products 9,511 8,130 9,313 9,722 7,976 36,676 35,143 2 Other funds include College Savings (529 plan) and Privately Managed Accounts.

Premiums and deposits - Wealth Management - products not targeted for growth Variable annuities premiums and deposits 1,466 1,293 1,612 2,187 1,865 6,558 11,256 Book value fixed deferred annuities premiums 13 34 35 54 133 136 1,919 Total premiums and deposits- Wealth Management - products not targeted for growth 1,479 1,327 1,647 2,241 1,998 6,694 13,175

Insurance Sales2 - targeted growth products U.S. Insurance 110 82 73 60 99 325 354 Canada 170 153 142 192 146 657 634 Asia 311 305 234 216 195 1,066 778 Total insurance sales - targeted growth products 591 540 449 468 440 2,048 1,766 2 Insurance sales consist of recurring premiums and 10% of both excess and single premiums.

Insurance Sales2 - products not targeted for growth Universal life with lifetime no-lapse guarantees and guaranteed non-par whole life 68 46 85 69 104 268 415 Long-Term Care 43 51 63 57 45 214 176 Insurance sales - products not targeted for growth 111 97 148 126 149 482 591

Wealth Management Sales - targeted growth products U.S. Wealth Management 4,451 3,827 3,883 4,432 4,053 16,593 13,967 Canada 1,943 1,837 1,823 2,003 1,615 7,606 7,313 Asia 1,340 661 754 422 548 3,177 2,505 Total wealth management sales - targeted growth products 7,734 6,325 6,460 6,857 6,216 27,376 23,785

Wealth Management Sales - products not targeted for growth U.S. Wealth Management - variable annuities 586 627 764 730 770 2,707 6,210 Canada - variable annuities 807 504 521 707 860 2,539 3,307 Asia - variable annuities 75 163 336 779 234 1,353 1,784 Total wealth management sales - variable annuities 1,468 1,294 1,621 2,216 1,864 6,599 11,301 Book value fixed deferred annuities 12 34 34 55 134 136 1,920 Total wealth management sales - products not targeted for growth 1,480 1,328 1,655 2,271 1,998 6,735 13,221

New Business Embedded Value 3

Insurance - targeted growth products 242 212 211 213 201 878 750 Insurance - products not targeted for growth 68 56 58 48 58 230 241 Wealth management - targeted growth products 148 134 125 148 138 555 505 Wealth management - products not targeted for growth 44 20 44 70 38 178 271 Total new business embedded value 502 422 438 479 435 1,841 1,767 3 Prior year NBEV was restated to reflect 2010 assumptions which include changes in discount rates, surplus yield and foreign exchange rates. All figures updated to reflect 2010 year start exchange rates. See page 2 for discussion on non-GAAP measures.

-21%

-54% -25%-29%

11%

19%5% -15%

4%

2%

-40%

-38%

33%1%

0%

44%0%

-7%-1%

2010 Q4vs.

YTD 2010vs.

YTD 20092009 Q4

85%

0%-66%

1%

7%

54%22%

16%

-63%-34%

15% 4%

20% 17%

16% -34%7% 10%

17% -5%

-49%-26%

15%27%145%

-21%

-23%-56%

-6%-24%

-24%-42%

-91% -93%

-68%

16%

24%

59%34%

4%10%

16%

19%

-35% -35%

-26% -18%-4%

20%

22%

-21%

-26%-90%

37%4%

-8%

-42%

-49%-93%

FINANCIAL HIGHLIGHTS (CONT'D)Page 4

FINANCIAL HIGHLIGHTS (CONT'D)(Canadian $ in millions unless otherwise stated and per share

information, unaudited) 2010 2010 2010 2010 2009 2010 Q4 YTD YTD YTD 2010Q4 Q3 Q2 Q1 Q4 vs. 2010 2009 vs.

2009 Q4 YTD 2009

Common Share StatisticsShare Price - Toronto (in Canadian $) high 17.46 16.67 20.54 21.12 22.97 -24% 21.12 26.50 -20% low 12.30 11.27 15.34 18.57 17.30 -29% 11.27 9.02 25% close 17.15 12.98 15.45 20.04 19.33 -11% 17.15 19.33 -11%Share Price - New York (in U.S $) high 17.29 16.32 20.56 20.79 21.95 -21% 20.79 24.97 -17% low 12.10 10.60 14.52 17.48 16.35 -26% 10.60 6.94 53% close 17.18 12.63 14.58 19.69 18.34 -6% 17.18 18.34 -6%Common shares outstanding (millions) - end of period 1,778 1,772 1,766 1,761 1,758 1% 1,778 1,758 1% - weighted average 1,773 1,767 1,762 1,758 1,669 6% 1,765 1,626 9% - diluted weighted average 1,776 1,767 1,762 1,763 1,673 6% 1,765 1,631 8%Dividend per common share paid in the quarter 1 0.13 0.13 0.13 0.13 0.13 0% 0.52 0.78 -33%Common share dividend payout ratio 13.1% n/a n/a 20.5% 25.1% - n/a 94.5% -1 On February 10, 2011, 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 March 21, 2011 to shareholders of record at the close of business on February 23, 2011.

Valuation DataBook value per common share 14.23$ 13.82$ 14.89$ 15.79$ 15.59$ -9% 14.23$ 15.59$ -9%Market value to book value ratio 1.21 0.94 1.04 1.27 1.24 -3% 1.21 1.24 -3%Book value excluding goodwill per common share 10.88$ 10.41$ 10.81$ 11.84$ 11.54$ -6% 10.88$ 11.54$ -6%Market value to book value excluding goodwill ratio 1.58 1.25 1.43 1.69 1.68 -6% 1.58 1.68 -6%Market capitalization ($ billions) 30.5 23.0 27.3 35.3 34.0 -10% 30.5 34.0 -10%

Funds Under Management General fund 199,448 205,241 199,272 188,308 187,470 6% 199,448 187,470 6% Segregated funds excluding institutional advisory accounts 2 196,868 198,524 186,945 190,895 188,229 5% 196,868 188,229 5% Mutual funds2,3 47,726 39,246 36,342 36,766 33,370 43% 47,726 33,370 43% Institutional advisory accounts 23,170 22,890 23,923 23,074 23,342 -1% 23,170 23,342 -1% Other funds4 7,971 7,978 7,446 7,419 7,206 11% 7,971 7,206 11%Total funds under management 475,183 473,879 453,928 446,462 439,617 8% 475,183 439,617 8%Total funds under management on a constant currency basis 489,081 476,259 448,187 456,475 439,617 11% 489,081 439,617 11%2 Q4 2010 reflects a transfer of $6.6 billion from segregated funds to mutual funds resulting from restructuring the Company's Hong Kong pension business.3 Q1 2010 includes $1.8 billion regarding acquisition of 49% interest in Manulife TEDA.4 Other funds includes College Savings (529 plan), Privately Managed Accounts and funds managed for institutional clients in Asia.

Capital InformationTotal capital 5 31,237 30,593 32,278 33,648 33,194 -6% 31,237 33,194 -6%

MCCSR - The Manufacturers Life Insurance Company 6 249% 234% 221% 250% 240% 4% 249% 240% 4%5 Total capital includes total equity less AOCI on cash flow hedges plus non-controlling interests and liabilities for preferred shares and qualifying 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.

Foreign Exchange Information7

- Balance Sheets (CDN to $ 1 US) 0.994600 1.029800 1.060600 1.015600 1.046600 -5%(CDN to 1 YEN) 0.012260 0.012330 0.011980 0.010870 0.011240 9%

- Statements of Operations (CDN to $ 1 US) 1.012758 1.039052 1.027606 1.040067 1.056223 -4%(CDN to 1 YEN) 0.012274 0.012123 0.011169 0.011477 0.011765 4%

7 Unless otherwise indicated, information contained in this supplement is in Canadian dollars. These are exchange rates used for currency conversion from U.S. dollars and Japanese yen to Canadian dollars for financial statement purposes.

6 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).

Page 5 FINANCIAL HIGHLIGHTS (CONT'D)

CONSOLIDATED STATEMENTS OF OPERATIONS(Canadian $ in millions, unaudited)

2010 2010 2010 2010 2009 2010 Q4 YTD YTD YTD 2010Q4 Q3 Q2 Q1 Q4 vs. 2010 2009 vs.

2009 Q4 YTD 2009

Revenue Premium income 4,837 4,649 4,470 4,395 4,731 2% 18,351 22,946 -20% Investment income1 2,259 3,081 2,094 2,042 2,061 10% 9,476 8,041 18% Other revenue 1,613 1,539 1,529 1,579 1,620 0% 6,260 5,858 7%Subtotal revenue 8,709 9,269 8,093 8,016 8,412 4% 34,087 36,845 -7% Realized/ unrealized gains (losses) on assets supporting policy liabilities and consumer notes 2,3 (5,289) 3,869 3,817 1,149 (1,441) 267% 3,546 3,262 9%Total revenue 3,420 13,138 11,910 9,165 6,971 -51% 37,633 40,107 -6%Policy benefits and expenses To policyholders and beneficiaries Death, disability and other claims 1,075 1,049 1,064 1,126 1,029 4% 4,314 5,029 -14% Maturity and surrender benefits 4 1,395 1,837 1,314 1,062 1,396 0% 5,608 7,247 -23% Annuity payments 799 759 680 788 778 3% 3,026 3,207 -6% Policyholder dividends and experience rating refunds 286 266 292 283 324 -12% 1,127 1,418 -21% Net transfers (from) to segregated funds 27 (58) (78) 185 (1) - 76 1,789 -96% Change in actuarial liabilities4 (5,007) 7,224 9,599 1,961 (48) nm 13,777 11,391 21% General expenses 1,043 908 898 883 954 9% 3,732 3,682 1% Investment expenses 263 237 233 238 242 9% 971 947 3% Commissions 1,034 901 912 909 987 5% 3,756 3,980 -6% Interest expense3 276 242 262 297 261 6% 1,077 1,301 -17% Premium taxes 70 44 75 73 78 -10% 262 284 -8% Goodwill impairment - 1,039 - - - - 1,039 - - Non-controlling interest in subsidiaries 4 26 5 5 (10) - 40 (16) -Total policy benefits and expenses 1,265 14,474 15,256 7,810 5,990 -79% 38,805 40,259 -4%Income (loss) before income taxes 2,155 (1,336) (3,346) 1,355 981 120% (1,172) (152) 671% Income tax recovery (expense) (341) 437 971 (207) (136) 151% 860 1,572 -45%Net income (loss) 1,814 (899) (2,375) 1,148 845 115% (312) 1,420 - Net income (loss) attributed to participating policyholders 20 48 3 8 (23) - 79 18 339%Net income (loss) attributed to shareholders 1,794 (947) (2,378) 1,140 868 107% (391) 1,402 - Preferred share dividends (20) (19) (20) (20) (20) 0% (79) (64) 23%Net income (loss) available to common shareholders 1,774 (966) (2,398) 1,120 848 109% (470) 1,338 -

U.S. $ in millions - Summary Statements of OperationsNet income (loss) available to common shareholders 1,750 (930) (2,333) 1,077 801 118% (436) 1,267 -

1 Investment income includes dividends, interest, rental income, realized gains on assets supporting surplus, credit impairments and equity impairments on AFS assets.

2 For fixed income assets supporting policy 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.

3 Assets supporting consumer notes are designated as fair value option. Consumer notes are also designated as fair value option with the change in their fair value of ($8) million for Q4 2010, ($18) million for Q3 2010, $3 million for Q2 2010, $10 million for Q1 2010, $4 million for Q4 2009 and $106 million for fiscal 2009, included in interest expense.

4 The change in actuarial liabilities includes the impact of scheduled maturities in John Hancock Fixed Products institutional annuity contracts of $72 million in Q4 2010, $609 million in Q3 2010, $241 million in Q2 2010, $33 million in Q1 2010, $334 million in Q4 2009 and $2,470 million in fiscal 2009.

CONSOLIDATED STATEMENTS OF OPERATIONSPage 6

CONSOLIDATED BALANCE SHEETS(Canadian $ in millions, unaudited)

2010 2010 2010 2010 2009 2010 Q4Q4 Q3 Q2 Q1 Q4 vs.

2009 Q4

ASSETSInvested assets

Cash and short-term securities 11,791 14,887 17,508 17,289 18,780 -37%Securities Bonds1 101,560 104,180 96,674 88,090 85,107 19% Stocks2 10,475 10,396 9,585 9,967 9,688 8%Loans Mortgages 31,816 31,858 31,781 30,605 30,699 4% Private placements 22,343 22,702 22,523 22,123 22,912 -2% Policy loans 6,486 6,648 6,857 6,495 6,609 -2% Bank loans 2,355 2,402 2,438 2,468 2,457 -4%Real estate 6,358 6,253 6,028 5,798 5,897 8%Other investments 6,264 5,915 5,878 5,473 5,321 18%

Total invested assets 199,448 205,241 199,272 188,308 187,470 6%

Other assetsAccrued investment income 1,621 1,780 1,621 1,663 1,540 5%Outstanding premiums 671 678 717 734 812 -17%Goodwill and intangible assets 7,857 8,021 9,221 8,930 9,127 -14%Derivatives 3,909 6,817 4,899 2,646 2,680 46%Miscellaneous 4,166 5,593 4,489 4,240 4,216 -1%

Total other assets 18,224 22,889 20,947 18,213 18,375 -1%Total assets 217,672 228,130 220,219 206,521 205,845 6%

Segregated funds net assets 200,057 201,752 190,243 194,149 191,741 4%

LIABILITIES AND EQUITY Policy liabilities 151,944 160,240 155,519 140,916 141,687 7%Deferred realized net gains 128 127 106 103 108 19%Bank deposits 16,300 15,724 15,669 15,303 14,735 11%Consumer notes 978 1,127 1,211 1,225 1,291 -24%Long-term debt 5,443 5,329 3,307 3,307 3,308 65%Future income tax liability 1,393 900 1,092 1,891 1,883 -26%Derivatives 3,404 4,292 3,534 2,548 2,656 28%Other liabilities 6,543 9,465 7,122 7,087 6,487 1%

186,133 197,204 187,560 172,380 172,155 8%

Liabilities for preferred shares and capital instruments 4,412 4,581 4,596 4,569 4,581 -4%Non-controlling interest in subsidiaries 254 283 259 246 202 26%

EquityParticipating policyholders' equity 159 139 91 88 80 99%Shareholders' equity

Preferred shares 1,422 1,422 1,422 1,422 1,422 0%Common shares 19,254 19,169 19,088 19,005 18,937 2%Contributed surplus 207 202 195 190 182 14%Retained earnings 11,473 9,932 11,131 13,760 12,870 -11%Accumulated other comprehensive income (loss)

on available-for-sale securities 251 624 802 687 612 -59%on cash flow hedges (99) (220) (172) (54) (48) -on translation of self-sustaining foreign operations (5,794) (5,206) (4,753) (5,772) (5,148) -13%

Total equity 26,873 26,062 27,804 29,326 28,907 -7%Total liabilities and equity 217,672 228,130 220,219 206,521 205,845 6%

Segregated funds net liabilities 200,057 201,752 190,243 194,149 191,741 4%1 This item consists of Bonds classified as AFS of $16.5 billion at Q4 2010 (Q3 2010 - $17.7 billion) and as fair value option of $85.1 billion at Q4 2010 (Q3 2010 - $86.5 billion).2 This item consists of Stocks classified as AFS of $2.2 billion at Q4 2010 (Q3 2010 - $2.1 billion) and as fair value option of $8.3 billion at Q4 2010 (Q3 2010 - $8.3 billion).

Page 7 CONSOLIDATED BALANCE SHEETS

CONSOLIDATED STATEMENTS OF EQUITY(Canadian $ in millions, unaudited)

2010 2010 2010 2010 2009 YTD YTDQ4 Q3 Q2 Q1 Q4 2010 2009

Participating policyholders' equityBalance, beginning of period 139 91 88 80 103 80 62 Net income (loss) for the period 20 48 3 8 (23) 79 18 Balance, end of period 159 139 91 88 80 159 80

Preferred sharesBalance, beginning of period 1,422 1,422 1,422 1,422 1,419 1,422 638 Issued during the period - - - - - - 800 Issuance costs, net of tax - - - - 3 - (16) Balance, end of period 1,422 1,422 1,422 1,422 1,422 1,422 1,422

Common sharesBalance, beginning of period 19,169 19,088 19,005 18,937 16,444 18,937 16,157 Issued on exercise of stock options, deferred share units and acquisition of subsidiary - 1 1 1 - 3 166 Issued under Dividend Reinvestment and Share Purchase Plans 85 80 82 67 58 314 179 Issued by public offering, net of issuance costs - - - - 2,435 - 2,435 Balance, end of period 19,254 19,169 19,088 19,005 18,937 19,254 18,937

Contributed surplusBalance, beginning of period 202 195 190 182 176 182 160 Exercise of stock options - - - - - - (1) Stock option expense 5 7 5 8 5 25 24 Tax benefit (loss) of stock options exercised - - - - 1 - (1) Balance, end of period 207 202 195 190 182 207 182

Shareholders' retained earnings Balance, beginning of period 9,932 11,131 13,760 12,870 12,235 12,870 12,796 Net income (loss) attributed to shareholders 1,794 (947) (2,378) 1,140 868 (391) 1,402 Preferred share dividends (20) (19) (20) (20) (20) (79) (64) Common share dividends (233) (233) (231) (230) (213) (927) (1,264) Balance, end of period 11,473 9,932 11,131 13,760 12,870 11,473 12,870

Accumulated other comprehensive lossBalance, beginning of period (4,802) (4,123) (5,139) (4,584) (4,043) (4,584) (2,616) Other comprehensive income (loss)

Available-for-sale ("AFS") securities unrealized gains, net of taxe recovery of $131 (310) 433 108 105 8 336 925 AFS securities realized losses (gains) & impairments (recoveries) & tax recovery of $5 (63) (611) 7 (30) 36 (697) 208 Cash flow hedges unrealized gains (losses), net of tax expense of $61 119 (50) (125) (4) 79 (60) 284 Cash flow hedges realized (gains) losses, net of tax recovery of $2 2 2 7 (2) (1) 9 (7) Unrealized currency translation gains (losses), net of $89 hedges and tax expense of $15 (588) (453) 1,019 (624) (663) (646) (3,378)

Balance, end of period (5,642) (4,802) (4,123) (5,139) (4,584) (5,642) (4,584) Total shareholders' equity, end of period 26,714 25,923 27,713 29,238 28,827 26,714 28,827

Total equity, end of period 26,873 26,062 27,804 29,326 28,907 26,873 28,907

CONSOLIDATED STATEMENTS OF EQUITYPage 8

(Canadian $ in millions, unaudited)2010 2010 2010 2010 2009 2010 Q4 YTD YTD YTD 2010

Q4 Q3 Q2 Q1 Q4 vs. 2010 2009 vs.2009 Q4 YTD 2009

Operating activitiesNet income (loss) 1,814 (899) (2,375) 1,148 845 115% (312) 1,420 -Adjustments for non-cash items in net income: Increase in actuarial liabilities, excluding John Hancock Fixed Products institutional annuity contracts (4,935) 7,833 9,840 1,994 286 - 14,732 13,861 6% Amortization of deferred net realized gains and move to market adjustments on real estate investments (15) (14) (12) (12) (17) -12% (53) (112) -53% Accretion of discount on invested assets (94) (74) (96) (91) (81) 16% (355) (350) 1% Other amortization 76 72 66 66 77 -1% 280 304 -8% Net realized and unrealized (gains) losses, including impairments 5,343 (4,718) (3,724) (1,132) 1,660 222% (4,231) (2,074) 104% Changes in fair value of consumer notes (8) (18) 3 10 4 - (13) 106 - Future income tax expense (recovery) 736 (417) (938) 163 289 155% (456) (1,275) -64% Stock option expense 5 7 5 8 5 0% 25 24 4% Goodwill impairment - 1,039 - - - - 1,039 - - Non-controlling interest in subsidiaries 4 26 - 5 (10) - 35 (16) -Net income adjusted for non-cash items 2,926 2,837 2,769 2,159 3,058 -4% 10,691 11,888 -10% Changes in policy related and operating receivables and payables (576) 731 397 319 (257) 124% 871 134 550%Cash provided by operating activities 2,350 3,568 3,166 2,478 2,801 -16% 11,562 12,022 -4%Investing activities Purchases and mortgage advances (21,969) (29,548) (11,620) (12,960) (15,114) 45% (76,097) (48,429) 57% Disposals and repayments 17,082 21,292 8,243 8,439 11,828 44% 55,056 38,184 44% Amortization of premiums on invested assets 114 111 123 128 121 -6% 476 511 -7% Changes in investment broker net receivables and payables (1,204) 968 7 366 (330) - 137 (59) - Net cash decrease from purchase of subsidiaries (28) - - - (13) 115% (28) (13) 115%Cash used in investing activities (6,005) (7,177) (3,247) (4,027) (3,508) 71% (20,456) (9,806) 109%Financing activities

Increase (decrease) in repurchase agreements and securities sold but not yet purchased 601 (47) (17) (1) (56) - 536 (1,123) - Issue (repayment) of long-term debt, net 150 2,024 - (1) (999) - 2,173 (407) - Net redemptions in John Hancock Fixed Products institutional annuity contracts (72) (609) (241) (33) (334) -78% (955) (2,470) -61% Consumer notes matured (116) (42) (82) (53) (37) 214% (293) (527) -44% Changes in bank deposits, net 616 56 319 583 (509) - 1,574 2,595 -39% Shareholder dividends paid in cash (167) (171) (170) (183) (175) -5% (691) (1,149) -40% Funds borrowed (repaid), net 3 (7) 6 3 10 -70% 5 (10) - Issue of debenture - - - - - - - 1,000 -100% Redemption of subordinated note payable (150) - - - - - (150) - - Capital from joint venture partner - - - 40 - - 40 35 14% Common shares issued, net - 1 1 1 2,435 -100% 3 2,455 -100% Preferred shares issued, net - - - - 3 -100% - 784 -100%Cash provided by (used in) financing activities 865 1,205 (184) 356 338 156% 2,242 1,183 90%Cash and short-term securities Increase (decrease) during the period (2,790) (2,404) (265) (1,193) (369) 656% (6,652) 3,399 - Effect of exchange rate changes on cash and short-term securities (260) (280) 567 (366) (334) -22% (339) (1,934) -82% Balance, beginning of period 14,314 16,998 16,696 18,255 18,958 -24% 18,255 16,790 9%Balance, end of period 11,264 14,314 16,998 16,696 18,255 -38% 11,264 18,255 -38%

Cash and short-term securitiesBeginning of period Gross cash and short-term securities 14,887 17,508 17,289 18,780 19,462 -24% 18,780 17,269 9% Net payments in transit, included in other liabilities (573) (510) (593) (525) (504) 14% (525) (479) 10%Net cash and short-term securities, beginning of period 14,314 16,998 16,696 18,255 18,958 -24% 18,255 16,790 9%End of period Gross cash and short-term securities 11,791 14,887 17,508 17,289 18,780 -37% 11,791 18,780 -37% Net payments in transit, included in other liabilities (527) (573) (510) (593) (525) 0% (527) (525) 0%Net cash and short-term securities, end of period 11,264 14,314 16,998 16,696 18,255 -38% 11,264 18,255 -38%

CONSOLIDATED STATEMENTS OF CASH FLOWS

CONSOLIDATED STATEMENTS OF CASH FLOWSPage 9

CONSOLIDATED STATEMENTS OF SEGREGATED FUNDS(Canadian $ in millions, unaudited)


2009 Q4 YTD 2009

Consolidated Statements of Segregated Funds Net Assets

Investments, at market value Cash and short-term securities 2,944 2,742 2,846 3,043 3,447 -15% 2,944 3,447 -15% Bonds 7,510 7,901 7,547 7,228 7,340 2% 7,510 7,340 2% Stocks and mutual funds 186,412 187,974 176,477 180,640 177,504 5% 186,412 177,504 5% Other investments 5,149 5,194 5,256 5,088 5,267 -2% 5,149 5,267 -2%Accrued investment income 75 66 70 71 76 -1% 75 76 -1%Other liabilities, net (2,033) (2,125) (1,953) (1,921) (1,893) 7% (2,033) (1,893) 7%Total segregated funds net assets 200,057 201,752 190,243 194,149 191,741 4% 200,057 191,741 4%

Composition of segregated funds net assets:Held by policyholders, excluding institutional advisory accounts 196,868 198,524 186,945 190,895 188,229 5% 196,868 188,229 5%Held by institutional advisory accounts 2,104 2,145 2,218 2,208 2,436 -14% 2,104 2,436 -14%Held by the Company 148 154 129 122 118 25% 148 118 25%Held by other contract holders 937 929 951 924 958 -2% 937 958 -2%Total segregated funds net assets 200,057 201,752 190,243 194,149 191,741 4% 200,057 191,741 4%

Consolidated Statements of Changes in Segregated Funds Net Assets

Net policyholder cash flowDeposits from policyholders 6,025 5,347 5,968 7,204 7,343 -18% 24,544 29,084 -16%Net transfers from (to) general fund 27 (58) (78) 185 (1) - 76 1,789 -96%Payments to policyholders (6,282) (4,909) (5,064) (5,357) (5,790) 8% (21,612) (18,531) 17%

(230) 380 826 2,032 1,552 - 3,008 12,342 -76%Investment relatedInterest and dividends 2,685 807 838 692 2,415 11% 5,022 5,123 -2%Net realized and unrealized investment gains (losses) 8,399 14,667 (12,123) 5,287 3,968 112% 16,230 33,692 -52%

11,084 15,474 (11,285) 5,979 6,383 74% 21,252 38,815 -45%OtherManagement and administrative fees (874) (846) (819) (876) (896) -2% (3,415) (3,204) 7%Transfer to mutual funds resulting from restructuring of the Hong Kong pension business (6,614) - - - - - (6,614) - -Other contracts consolidated with segregated funds - - - - 868 -100% - 868 -100%Effect of currency exchange rate changes (5,061) (3,499) 7,372 (4,727) (4,314) 17% (5,915) (22,460) -74%

(12,549) (4,345) 6,553 (5,603) (4,342) 189% (15,944) (24,796)

Net addition (deduction) to segregated funds for the period (1,695) 11,509 (3,906) 2,408 3,593 - 8,316 26,361 -68%Segregated funds net assets, beginning of period 201,752 190,243 194,149 191,741 188,148 7% 191,741 165,380 16%Segregated funds net assets, end of period 200,057 201,752 190,243 194,149 191,741 4% 200,057 191,741 4%

Page 10 CONSOLIDATED STATEMENTS OF SEGREGATED FUNDS

CONSOLIDATED SOURCE OF EARNINGS(Canadian $ in millions, unaudited)


2009 Q4 YTD 2009

Source of Earnings 1

Expected profit from in-force business 892 877 801 810 838 6% 3,380 3,475 -3%Impact of new business (145) (130) (158) (142) (119) 22% (575) (424) 36%Experience gains (losses) 1,2 1,417 861 (4,155) 555 439 223% (1,322) (1,721) -23%Management actions and changes in assumptions (140) (3,119) 94 (20) (232) -40% (3,185) (1,593) 100%Earnings (loss) on surplus funds 78 140 61 151 15 420% 430 4 nmOther 33 (13) 8 (7) 63 -48% 21 89 -76%Income (loss) before income taxes 2,135 (1,384) (3,349) 1,347 1,004 113% (1,251) (170) 636%Income tax recovery (expense) (341) 437 971 (207) (136) 151% 860 1,572 -45%Net income (loss) attributed to shareholders 1,794 (947) (2,378) 1,140 868 107% (391) 1,402 -

1 Per OSFI instructions, the Source of Earnings amounts denominated in foreign currencies are translated at the prior quarter's balance sheet 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.

GlossaryExpected profit from in-force business

Impact of new business

Experience gains (losses)

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, including non-controlling interests.Income taxes Tax charges to income, consistent with the amount on the statement of operations.

Formula-driven release of PfADS (Provisions for Adverse Deviations) on the non-fee businesses and expected profit on fee businesses.

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.

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.

CONSOLIDATED SOURCE OF EARNINGSPage 11

U.S. INSURANCE(Unaudited)


2009 Q4 YTD 2009

Statements of Operations - U.S. $ in millionsRevenue Premium income 1,571 1,455 1,438 1,345 1,619 -3% 5,809 5,854 -1% Investment income 789 732 716 717 671 18% 2,954 2,686 10% Other revenue 156 148 148 143 152 3% 595 570 4%Subtotal revenue 2,516 2,335 2,302 2,205 2,442 3% 9,358 9,110 3% Realized/ unrealized gains (losses) on invested assets supporting policy liabilities 1 (2,862) 1,504 1,819 365 (759) 277% 826 (117) -Total revenue (346) 3,839 4,121 2,570 1,683 - 10,184 8,993 13%Policy benefits and expenses Policyholder benefits (1,411) 3,101 4,702 1,936 1,313 - 8,328 9,021 -8% General expenses 160 148 152 151 162 -1% 611 578 6% Investment expenses 42 30 28 33 40 5% 133 133 0% Commissions 274 229 264 227 307 -11% 994 1,099 -10% Other 41 23 52 39 39 5% 155 145 7%Total policy benefits and expenses (894) 3,531 5,198 2,386 1,861 - 10,221 10,976 -7%Income (loss) before income taxes 548 308 (1,077) 184 (178) - (37) (1,983) -98% Income taxes (186) (109) 376 (58) 67 - 23 710 -97%Net income (loss) attributed to shareholders 2 362 199 (701) 126 (111) - (14) (1,273) -99%1 For fixed income assets supporting policy 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 policyholder benefits. The large losses in Q4 and gains in Q3 and Q2, 2010 primarily relate to fair value movements on bonds and derivatives.2 See the Q4 press release for a description of Q4 2010 results compared to Q4 2009.

Source of Earnings - U.S. $ in millionsExpected profit from in-force business 167 179 158 158 156 7% 662 672 -1%Impact of new business (32) (46) (125) (112) (91) -65% (315) (325) -3%Experience gains (losses) 332 121 (1,171) 83 (301) - (635) (2,564) -75%Management actions and changes in assumptions (8) - - (4) - - (12) 13 -Earnings on surplus funds 57 58 57 57 56 2% 229 224 2%Other 32 (4) 4 2 2 nm 34 (3) -Income (loss) before income taxes 548 308 (1,077) 184 (178) - (37) (1,983) -98%Income taxes (186) (109) 376 (58) 67 - 23 710 -97%Net income (loss) attributed to shareholders 362 199 (701) 126 (111) - (14) (1,273) -99%

Premiums and Deposits - U.S. $ in millionsPremiums excluding universal life with lifetime no-lapse guarantees and guaranteed non-participating whole life 1,163 1,088 959 915 1,027 13% 4,125 3,906 6%Segregated fund deposits 385 286 289 291 1,255 -69% 1,251 2,060 -39%Premiums - universal life with lifetime no-lapse guarantees and guaranteed non-participating whole life 408 367 479 430 592 -31% 1,684 1,948 -14%Total premiums and deposits 1,956 1,741 1,727 1,636 2,874 -32% 7,060 7,914 -11%

Funds Under Management - U.S. $ in millionsGeneral fund 61,986 63,582 60,367 57,627 52,665 18% 61,986 52,665 18%Segregated funds 12,263 11,528 10,663 11,285 10,922 12% 12,263 10,922 12%Total funds under management 74,249 75,110 71,030 68,912 63,587 17% 74,249 63,587 17%

Canadian $ in millions - Summary Statements of Operations and Key MetricsRevenue (351) 3,989 4,235 2,673 1,777 - 10,546 10,110 4%Total policy benefits and expenses (905) 3,669 5,341 2,482 1,965 - 10,587 12,355 -14%Net income (loss) attributed to shareholders 367 206 (720) 131 (117) - (16) (1,441) -99%Total premiums and deposits 1,981 1,809 1,774 1,702 3,034 -35% 7,266 8,909 -18%Total funds under management 73,847 77,347 75,334 69,987 66,550 11% 73,847 66,550 11%

Page 12 U.S. INSURANCE

U.S. INSURANCE - JOHN HANCOCK LIFE(Unaudited)


2009 Q4 YTD 2009

Statements of Operations - U.S. $ in millionsRevenue Premium income 1,106 1,013 1,011 938 1,188 -7% 4,068 4,250 -4% Investment income 584 559 551 542 528 11% 2,236 2,096 7% Other revenue 150 139 144 137 150 0% 570 556 3%Subtotal revenue 1,840 1,711 1,706 1,617 1,866 -1% 6,874 6,902 0% Realized/ unrealized gains (losses) on invested assets supporting policy liabilities 1 (1,075) 776 652 263 (115) 835% 616 1,487 -59%Total revenue 765 2,487 2,358 1,880 1,751 -56% 7,490 8,389 -11%Policy benefits and expenses Policyholder benefits 59 1,954 2,621 1,406 1,420 -96% 6,040 8,026 -25% General expenses 106 101 103 105 115 -8% 415 403 3% Investment expenses 27 23 20 24 26 4% 94 95 -1% Commissions 211 164 201 169 246 -14% 745 879 -15% Other 33 17 42 31 28 18% 123 114 8%Total policy benefits and expenses 436 2,259 2,987 1,735 1,835 -76% 7,417 9,517 -22%Income (loss) before income taxes 329 228 (629) 145 (84) - 73 (1,128) - Income taxes (110) (82) 218 (45) 33 - (19) 407 -Net income (loss) attributed to shareholders 2 219 146 (411) 100 (51) - 54 (721) -1 For fixed income assets supporting policy 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 policyholder benefits.2 Year over year increase is due to net pooled experience gains because equity, interest rate, credit and other non fixed income returns differ from our best estimate policy liability assumptions and lower new business strain.

Sales - U.S. $ in millions 3

Sales excluding universal life with lifetime no-lapse guarantees and guaranteed non-participating whole life 108 78 72 58 94 15% 316 313 1%

Sales - universal life with lifetime no-lapse guarantees and guaranteed non-participating whole life 67 46 82 66 98 -32% 261 368 -29%

Total sales 174 124 154 124 192 -9% 577 681 -15%3 Consists of 100% of recurring premiums and 10% of both excess and single premiums.

Premiums and Deposits - U.S. $ in millions Premiums excluding universal life with lifetime no-lapse guarantees and guaranteed non-participating whole life 698 646 532 508 596 17% 2,384 2,302 4% Segregated fund deposits 298 199 199 211 267 12% 907 953 -5% Premiums - universal life with lifetime no-lapse guarantees and guaranteed non-participating whole life 408 367 479 430 592 -31% 1,684 1,948 -14%Total premiums and deposits 1,404 1,212 1,210 1,149 1,455 -4% 4,975 5,203 -4%

Funds Under Management - U.S. $ in millions General fund 44,832 45,202 44,197 42,930 40,333 11% 44,832 40,333 11% Segregated funds 9,933 9,303 8,611 9,334 9,065 10% 9,933 9,065 10%Total funds under management 54,765 54,505 52,808 52,264 49,398 11% 54,765 49,398 11%

Changes in General and Segregated Funds Under Management - U.S. $ in millionsBeginning balance 54,505 52,808 52,264 49,398 48,420 13% 49,398 43,977 12% Premiums and deposits 1,404 1,212 1,210 1,149 1,455 -4% 4,975 5,203 -4% Investment income 4 134 2,107 584 1,166 759 -82% 3,991 5,402 -26% Benefits and withdrawals (1,026) (1,096) (897) (1,021) (948) 8% (4,040) (3,969) 2% Other 5 (252) (526) (353) 1,572 (288) -13% 441 (1,215) -Ending balance 54,765 54,505 52,808 52,264 49,398 11% 54,765 49,398 11%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 MetricsNet income (loss) attributed to shareholders 222 151 (421) 103 (54) - 55 (820) -Sales 178 128 158 129 203 -12% 593 769 -23%Total premiums and deposits 1,422 1,260 1,243 1,195 1,535 -7% 5,120 5,901 -13%Total funds under management 54,469 56,129 56,008 53,079 51,700 5% 54,469 51,700 5%

Page 13 U.S. INSURANCE - JOHN HANCOCK LIFE

U.S. INSURANCE - JOHN HANCOCK LONG-TERM CARE(Unaudited)


2009 Q4 YTD 2009

Statements of Operations - U.S. $ in millionsRevenue Premium income 465 442 427 407 431 8% 1,741 1,604 9% Investment income 205 173 165 175 143 43% 718 590 22% Other revenue 6 9 4 6 2 200% 25 14 79%Subtotal revenue 676 624 596 588 576 17% 2,484 2,208 13% Realized/ unrealized gains (losses) on invested assets supporting policy liabilities 1 (1,787) 728 1,167 102 (644) 177% 210 (1,604) -Total revenue (1,111) 1,352 1,763 690 (68) nm 2,694 604 346%Policy benefits and expenses Policyholder benefits (1,470) 1,147 2,081 530 (107) nm 2,288 995 130% General expenses 54 47 49 46 47 15% 196 175 12% Investment expenses 15 7 8 9 14 7% 39 38 3% Commissions 63 65 63 58 61 3% 249 220 13% Other 8 6 10 8 11 -27% 32 31 3%Total policy benefits and expenses (1,330) 1,272 2,211 651 26 - 2,804 1,459 92%Income (loss) before income taxes 219 80 (448) 39 (94) - (110) (855) -87% Income taxes (76) (27) 158 (13) 34 - 42 303 -86%

Net income (loss) attributed to shareholders 2 143 53 (290) 26 (60) - (68) (552) -88%1 For fixed income assets supporting policy 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 policyholder benefits. 2 Year over year increase is due to net pooled experience gains because equity, interest rate, credit and other non fixed income returns differ from our best estimate policy liability assumptions, improved policyholder lapse experience and lower new business strain.

Sales - U.S. $ in millions New annualized premiums 42 49 62 54 42 0% 207 155 34%

Premiums and Deposits - U.S. $ in millions Premiums 465 442 427 407 431 8% 1,741 1,604 9% Segregated fund deposits 3 87 87 90 80 988 -91% 344 1,107 -69%Total premiums and deposits 552 529 517 487 1,419 -61% 2,085 2,711 -23%3 Q4 2009 deposits include $910 million received as a result of John Hancock becoming, effective October 1, 2009, the sole carrier of the Federal Long Term Care Insurance Program. Previously only half of the plan was administered by John Hancock.

Funds Under Management - U.S. $ in millions General fund 17,154 18,380 16,170 14,697 12,332 39% 17,154 12,332 39% Segregated funds 2,330 2,225 2,052 1,951 1,857 25% 2,330 1,857 25%Total funds under management 19,484 20,605 18,222 16,648 14,189 37% 19,484 14,189 37%

Changes in General and Segregated Funds Under Management - U.S. $ in millionsBeginning balance 20,605 18,222 16,648 14,189 13,412 54% 14,189 13,437 6% Premiums and deposits 552 529 517 487 1,419 -61% 2,085 2,711 -23% Investment income (loss) 4 (1,536) 1,010 1,368 313 (498) 208% 1,155 (929) - Benefits and withdrawals (173) (171) (162) (154) (147) 18% (660) (549) 20% Other 5 36 1,015 (149) 1,813 3 nm 2,715 (481) -Ending balance 19,484 20,605 18,222 16,648 14,189 37% 19,484 14,189 37%4 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.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 MetricsNet income (loss) attributed to shareholders 145 55 (299) 28 (63) - (71) (621) -89%Sales 43 51 63 57 45 -4% 214 176 22%Total premiums and deposits 559 549 531 507 1,499 -63% 2,146 3,008 -29%Funds under management 19,378 21,218 19,326 16,908 14,850 30% 19,378 14,850 30%

Page 14 U.S. INSURANCE - JOHN HANCOCK LONG TERM CARE

U.S. WEALTH MANAGEMENT(Unaudited)


2009 Q4 YTD 2009

Statements of Operations - U.S. $ in millionsRevenue Premium income 727 577 662 647 743 -2% 2,613 5,059 -48% Investment income 493 455 440 414 455 8% 1,802 1,793 1% Other revenue 716 673 667 653 659 9% 2,709 2,277 19%Subtotal revenue 1,936 1,705 1,769 1,714 1,857 4% 7,124 9,129 -22% Realized/ unrealized gains (losses) on invested assets supporting policy liabilities and consumer notes 1,2 (1,689) 427 1,470 249 (455) 271% 457 606 -25%Total revenue 247 2,132 3,239 1,963 1,402 -82% 7,581 9,735 -22%Policy benefits and expenses Policyholder benefits (1,112) 1,210 3,541 981 (25) nm 4,620 4,738 -2% General expenses 162 152 156 160 167 -3% 630 661 -5% Investment expenses 123 110 107 110 99 24% 450 396 14% Commissions 211 196 199 199 197 7% 805 868 -7% Other 2 7 (3) 21 26 21 -67% 51 154 -67%Total policy benefits and expenses (609) 1,665 4,024 1,476 459 - 6,556 6,817 -4%Income (loss) before income taxes 856 467 (785) 487 943 -9% 1,025 2,918 -65% Income taxes (275) (139) 295 (151) (308) -11% (270) (918) -71%Net income (loss) attributed to shareholders 3 581 328 (490) 336 635 -9% 755 2,000 -62%1 For fixed income assets supporting policy 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 policyholder benefits. The large gains in Q2 2010 and losses in Q4 2010 relate to fair value movements on derivatives and bonds.2 For assets supporting consumer notes, the impact of realized/ unrealized gains (losses) on the assets is offset in interest expense, included in Other.3 See the Q4 press release for a description of Q4 2010 results compared to Q4 2009.

Source of Earnings - U.S. $ in millionsExpected profit from in-force business 223 192 180 193 183 22% 788 738 7%Impact of new business (23) (23) (31) (22) (25) -8% (99) (92) 8%Experience gains (losses) 622 260 (1,062) 269 727 -14% 89 2,055 -96%Management actions and changes in assumptions (5) - 84 - - - 79 (11) -Earnings on surplus funds 43 43 43 43 54 -20% 172 217 -21%Other (4) (5) 1 4 4 - (4) 11 -Income (loss) before income taxes 856 467 (785) 487 943 -9% 1,025 2,918 -65%Income taxes (275) (139) 295 (151) (308) -11% (270) (918) -71%Net income (loss) attributed to shareholders 581 328 (490) 336 635 -9% 755 2,000 -62%

Premiums and Deposits - U.S. $ in millions Premiums excluding variable annuities and book value fixed deferred annuities 627 446 531 530 534 17% 2,134 2,017 6%Segregated fund deposits excluding variable annuities 3,067 2,814 3,013 3,384 3,043 1% 12,278 11,156 10%Mutual fund deposits 2,391 2,207 2,224 2,347 1,806 32% 9,169 5,983 53%Other fund deposits 144 107 128 138 131 10% 517 553 -7%Premiums and deposits excluding variable annuities and book value fixed deferred annuities 6,229 5,574 5,896 6,399 5,514 13% 24,098 19,709 22%Premiums and deposits- variable annuities 578 603 744 702 729 -21% 2,627 5,298 -50%Premiums - book value fixed deferred annuities 13 33 34 52 127 -90% 132 1,663 -92%Total premiums and deposits 6,820 6,210 6,674 7,153 6,370 7% 26,857 26,670 1%

Funds Under Management - U.S. $ in millions General fund 33,205 34,801 34,278 32,891 33,903 -2% 33,205 33,903 -2%Segregated funds 120,673 114,667 105,323 112,946 108,389 11% 120,673 108,389 11%Mutual funds 30,347 27,989 25,101 26,239 23,929 27% 30,347 23,929 27%Other funds 3,762 3,572 3,303 3,514 3,322 13% 3,762 3,322 13%Total funds under management 187,987 181,029 168,005 175,590 169,543 11% 187,987 169,543 11%

Canadian $ in millions - Summary Statements of Operations and Key MetricsRevenue 250 2,216 3,329 2,041 1,481 -83% 7,836 11,177 -30%Total policy benefits and expenses (617) 1,732 4,136 1,534 484 - 6,785 8,001 -15%Net income (loss) attributed to shareholders 589 340 (504) 350 671 -12% 775 2,186 -65%Total premiums and deposits 6,906 6,455 6,857 7,440 6,727 3% 27,658 30,512 -9%Total funds under management 186,973 186,424 178,186 178,330 177,443 5% 186,973 177,443 5%

Page 15 U.S. WEALTH MANAGEMENT

U.S. WEALTH MANAGEMENT - JOHN HANCOCK VARIABLE ANNUITIES(Unaudited)


2009 Q4 YTD 2009

Statements of Operations - U.S. $ in millionsRevenue Premium income 87 98 97 65 82 6% 347 1,379 -75% Investment income 64 54 47 32 39 64% 197 204 -3% Other revenue 393 375 374 370 377 4% 1,512 1,314 15%Subtotal revenue 544 527 518 467 498 9% 2,056 2,897 -29% Realized/ unrealized gains (losses) on invested assets supporting policy liabilities 1 (1,189) (131) 926 (85) (342) 248% (479) (636) -25%Total revenue (645) 396 1,444 382 156 - 1,577 2,261 -30%Policy benefits and expenses Policyholder benefits (1,383) (150) 2,101 (107) (620) 123% 461 (1,251) - General expenses 46 45 48 47 51 -10% 186 221 -16% Investment expenses 31 29 31 30 32 -3% 121 115 5% Commissions 99 95 99 98 93 6% 391 445 -12% Other - 1 2 - 1 -100% 3 2 50%Total policy benefits and expenses (1,207) 20 2,281 68 (443) 172% 1,162 (468) -Income (loss) before income taxes 562 376 (837) 314 599 -6% 415 2,729 -85% Income taxes (188) (122) 300 (103) (201) -6% (113) (912) -88%Net income (loss) attributed to shareholders 2

374 254 (537) 211 398 -6% 302 1,817 -83%1 For fixed income assets supporting policy 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 policyholder benefits.2 Year over year decrease is due to the lower impact of equity market gain on variable annuity guarantee reserves and the costs associated with the hedging of additional in-force variable annuity guaranteed value.

Sales/Premiums and Deposits - U.S. $ in millions Premiums 87 98 97 65 82 6% 347 1,379 -75% Segregated fund deposits 491 505 647 637 647 -24% 2,280 3,919 -42%Total premiums and deposits 578 603 744 702 729 -21% 2,627 5,298 -50%

Funds Under Management - U.S. $ in millions General fund 813 1,816 1,246 303 2,183 -63% 813 2,183 -63% Segregated funds 55,369 53,202 49,454 53,503 52,081 6% 55,369 52,081 6%Total funds under management 56,182 55,018 50,700 53,806 54,264 4% 56,182 54,264 4%

Changes in General and Segregated Funds Under Management - U.S. $ in millionsBeginning balance 55,018 50,700 53,806 54,264 52,911 4% 54,264 39,905 36%

Premiums and deposits 578 603 744 702 729 -21% 2,627 5,298 -50%Investment income (loss) 3 1,953 4,302 (2,485) 1,847 1,660 18% 5,617 11,100 -49%Withdrawals (1,264) (996) (1,079) (1,020) (1,009) 25% (4,359) (3,591) 21%Other 4 (103) 409 (286) (1,987) (27) 281% (1,967) 1,552 -

Ending balance 56,182 55,018 50,700 53,806 54,264 4% 56,182 54,264 4%3 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.4 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 MetricsNet income (loss) attributed to shareholders 379 263 (551) 219 421 -10% 310 1,995 -84%Total sales/premiums and deposits 586 627 764 730 770 -24% 2,707 6,210 -56%Total funds under management 55,878 56,657 53,772 54,646 56,793 -2% 55,878 56,793 -2%

Page 16 U.S. WEALTH MANAGEMENT - JOHN HANCOCK VARIABLE ANNUITIES

U.S. WEALTH MANAGEMENT - JOHN HANCOCK WEALTH ASSET MANAGEMENT (Unaudited) 2010 2010 2010 2010 2009 2010 Q4 YTD YTD YTD 2010

Q4 Q3 Q2 Q1 Q4 vs. 2010 2009 vs.2009 Q4 YTD 2009

Statements of Operations - U.S. $ in millionsRevenue Premium income 37 39 42 48 44 -16% 166 179 -7% Investment income 15 16 16 16 6 150% 63 60 5% Other revenue 313 288 287 274 274 14% 1,162 932 25%Subtotal revenue 365 343 345 338 324 13% 1,391 1,171 19% Realized/ unrealized gains (losses) on invested assets supporting policy liabilities 1 (10) 5 (5) 2 2 - (8) 46 -Total revenue 355 348 340 340 326 9% 1,383 1,217 14%Policy benefits and expenses Policyholder benefits 27 57 53 54 30 -10% 191 248 -23% General expenses 92 85 87 90 92 0% 354 345 3% Investment expenses 70 63 60 59 57 23% 252 204 24% Commissions 98 91 91 89 87 13% 369 302 22%Total policy benefits and expenses 287 296 291 292 266 8% 1,166 1,099 6%Income before income taxes 68 52 49 48 60 13% 217 118 84% Income tax recovery (expense) (16) (11) (13) (13) (17) -6% (53) (20) 165%Net income attributed to shareholders 2 52 41 36 35 43 21% 164 98 67%1 For fixed income assets supporting policy liabilities and for equities supporting pass through products, the impact of realized/ unrealized gains on the assets is largely offset in the change in actuarial liabilities, included in policyholder benefits.2 Year over year increase is due to higher fee income from higher average assets under management.

Sales - U.S. $ in millionsSales - Defined contribution 3 1,538 1,062 1,094 1,412 1,537 0% 5,106 4,419 16%Sales - Mutual and other funds 4 2,535 2,314 2,352 2,485 1,937 31% 9,686 6,536 48%3 Defined contribution sales include new annualized and first year single premium sales. 4 Other funds include sales of College Savings (529 plan) and Privately Managed Accounts.

Premiums and Deposits - U.S. $ in millions Premiums 37 39 42 48 44 -16% 166 179 -7% Segregated fund deposits 3,013 2,760 2,778 3,298 2,981 1% 11,849 10,973 8% Mutual fund deposits 2,391 2,207 2,224 2,347 1,806 32% 9,169 5,983 53% Other fund deposits 5 144 107 128 138 131 10% 517 553 -7%Total premiums and deposits 5,585 5,113 5,172 5,831 4,962 13% 21,701 17,688 23%5 Other fund deposits include College Savings (529 plan) and Privately Managed Accounts.

Funds Under Management - U.S. $ in millions General fund 1,736 1,687 1,586 1,511 1,461 19% 1,736 1,461 19% Segregated funds 61,712 57,539 52,016 55,628 52,675 17% 61,712 52,675 17% Mutual funds 30,347 27,989 25,101 26,239 23,929 27% 30,347 23,929 27% Other funds 6 3,762 3,572 3,303 3,514 3,322 13% 3,762 3,322 13%Total funds under management 97,557 90,787 82,006 86,892 81,387 20% 97,557 81,387 20%6 Other funds include College Savings (529 plan) and Privately Managed Accounts.

Changes in General, Segregated, Mutual and Other Funds Under Management - U.S. $ in millionsBeginning balance 90,787 82,006 86,892 81,387 77,442 17% 81,387 60,391 35%

Premiums and deposits - Defined contribution 3,050 2,799 2,820 3,346 3,025 1% 12,015 11,152 8%Premiums and deposits - Mutual and other funds 2,535 2,314 2,352 2,485 1,937 31% 9,686 6,536 48%Investment income (loss) 7 6,079 7,754 (6,066) 3,664 3,213 89% 11,431 17,299 -34%Withdrawals - Defined contribution (3,005) (2,213) (2,235) (2,360) (2,831) 6% (9,813) (8,097) 21%Withdrawals - Mutual and other funds (1,761) (1,731) (1,591) (1,482) (1,257) 40% (6,565) (5,178) 27%Other 8 (128) (142) (166) (148) (142) -10% (584) (716) -18%

Ending balance 97,557 90,787 82,006 86,892 81,387 20% 97,557 81,387 20%7 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.8 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 MetricsNet income attributed to shareholders 53 43 36 37 45 18% 169 110 54%Sales - Defined contribution 1,558 1,104 1,123 1,469 1,623 -4% 5,254 4,974 6%Sales - Mutual and other funds 2,566 2,406 2,416 2,585 2,045 25% 9,973 7,381 35%Total premiums and deposits 5,656 5,312 5,314 6,066 5,240 8% 22,348 20,086 11%Total funds under management 97,032 93,493 86,975 88,248 85,179 14% 97,032 85,179 14%

Page 17 U.S. WEALTH MANAGEMENT - JOHN HANCOCK WEALTH ASSET MANAGEMENT

U.S. WEALTH MANAGEMENT - JOHN HANCOCK FIXED PRODUCTS(Unaudited)


2009 Q4 YTD 2009

Statements of Operations - U.S. $ in millionsRevenue Premium income 603 440 523 534 617 -2% 2,100 3,501 -40% Investment income 414 385 377 366 410 1% 1,542 1,529 1% Other revenue 10 10 6 9 8 25% 35 31 13%Subtotal revenue 1,027 835 906 909 1,035 -1% 3,677 5,061 -27% Realized/ unrealized gains (losses) on invested assets supporting policy liabilities and consumer notes 1,2 (490) 553 549 332 (115) 326% 944 1,196 -21%Total revenue 537 1,388 1,455 1,241 920 -42% 4,621 6,257 -26%Policy benefits and expenses Policyholder benefits 244 1,303 1,387 1,034 565 -57% 3,968 5,741 -31% General expenses 24 22 21 23 24 0% 90 95 -5% Investment expenses 22 18 16 21 10 120% 77 77 0% Commissions 14 10 9 12 17 -18% 45 121 -63% Other 2 7 (4) 19 26 20 -65% 48 152 -68%Total policy benefits and expenses 311 1,349 1,452 1,116 636 -51% 4,228 6,186 -32%Income before income taxes 226 39 3 125 284 -20% 393 71 454% Income tax recovery (expense) (71) (6) 8 (35) (90) -21% (104) 14 -

Net income attributed to shareholders 3155 33 11 90 194 -20% 289 85 240%

1 For fixed income assets supporting policy 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 policyholder benefits.2 For assets supporting consumer notes (Signature Notes), the impact of realized/ unrealized gains (losses) on the assets is offset in interest expense, included in Other.3 Year over year decrease is driven by lower net pooled experience gains because equity, interest rate, credit and other non fixed income returns differ from our best estimate policy liability assumptions.

Sales - U.S. $ in millions Fixed deferred annuities excluding book value fixed deferred annuities 20 45 66 73 34 -42% 204 36 466% Book value fixed deferred annuities 12 33 34 52 127 -90% 131 1,663 -92% Payout annuities 265 227 238 221 304 -13% 951 1,161 -18% Fee-based products 4 38 32 30 71 27 41% 171 220 -22%Total sales 335 337 368 417 492 -32% 1,457 3,080 -53%4 Fee-based products include general account group annuity contracts and separate accounts.

Premiums and Deposits - U.S. $ in millions Premiums excluding book value fixed deferred annuities 590 407 489 482 490 20% 1,968 1,838 7% Segregated fund deposits 54 54 235 86 62 -13% 429 183 134% Premiums - book value fixed deferred annuities 13 33 34 52 127 -90% 132 1,663 -92%Total premiums and deposits 657 494 758 620 679 -3% 2,529 3,684 -31%

Funds Under Management - U.S. $ in millions General fund 30,656 31,298 31,446 31,077 30,259 1% 30,656 30,259 1% Segregated funds 3,592 3,926 3,853 3,815 3,633 -1% 3,592 3,633 -1%Total funds under management 34,248 35,224 35,299 34,892 33,892 1% 34,248 33,892 1%

Changes in General and Segregated Funds Under Management - U.S. $ in millionsBeginning balance 35,224 35,299 34,892 33,892 34,292 3% 33,892 33,574 1%

Premiums and segregated fund deposits 657 494 758 620 679 -3% 2,529 3,684 -31%Investment income 5 (91) 1,132 1,015 806 321 - 2,862 3,073 -7%Withdrawals (1,308) (1,414) (1,187) (720) (1,271) 3% (4,629) (5,327) -13%Other 6 (234) (287) (179) 294 (129) 81% (406) (1,112) -63%

Ending balance 34,248 35,224 35,299 34,892 33,892 1% 34,248 33,892 1%5 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.6 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 MetricsNet income attributed to shareholders 157 34 11 94 205 -23% 296 81 265%Sales 339 351 378 433 519 -35% 1,501 3,532 -58%Total premiums and deposits 664 516 779 644 717 -7% 2,603 4,216 -38%Total funds under management 34,063 36,274 37,439 35,436 35,471 -4% 34,063 35,471 -4%

Page 18 U.S. WEALTH MANAGEMENT - JOHN HANCOCK FIXED PRODUCTS

CANADIAN DIVISION(Canadian $ in millions, unaudited)


2009 Q4 YTD 2009

Statements of OperationsRevenue Premium income 1 900 958 963 1,034 967 -7% 3,855 5,292 -27% Investment income 729 683 673 661 676 8% 2,746 2,627 5% Other revenue 1 463 436 449 414 460 1% 1,762 1,448 22%Subtotal revenue 2,092 2,077 2,085 2,109 2,103 -1% 8,363 9,367 -11% Realized/ unrealized gains (losses) on invested assets supporting policy liabilities 2 (365) 1,115 148 348 (273) 34% 1,246 1,617 -23%Total revenue 1,727 3,192 2,233 2,457 1,830 -6% 9,609 10,984 -13%Policy benefits and expenses Policyholder benefits 1 321 2,118 2,053 1,423 894 -64% 5,915 8,131 -27% General expenses 297 274 266 258 259 15% 1,095 1,001 9% Investment expenses 79 75 80 74 75 5% 308 272 13% Commissions 330 267 266 278 293 13% 1,141 1,069 7% Other 110 99 89 86 93 18% 384 408 -6%Total policy benefits and expenses 1,137 2,833 2,754 2,119 1,614 -30% 8,843 10,881 -19%Income (loss) before income taxes 590 359 (521) 338 216 173% 766 103 644% Income tax recovery (expense) 48 5 179 (33) 167 -71% 199 670 -70%Net income (loss) 638 364 (342) 305 383 67% 965 773 25% Income (loss) attributed to participating policyholders 3 6 2 4 (1) - 15 28 -46%Net income (loss) attributed to shareholders 3 635 358 (344) 301 384 65% 950 745 28%1 At the end of the first quarter of 2009, Group Benefits entered into an external reinsurance agreement the impact of which has been been reflected in premiums, other revenue and policyholder benefits effective Q2 2009.2 For fixed income assets supporting policy 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 policyholder benefits.3 See the Q4 press release for a description of Q4 2010 results compared to Q4 2009.

Source of Earnings Expected profit from in-force business 231 239 222 210 215 7% 902 811 11%Impact of new business (56) (60) (34) (16) (4) nm (166) 15 -Experience gains (losses) 369 137 (756) 111 (94) - (139) (1,056) -87%Management actions and changes in assumptions - - (2) (1) 15 -100% (3) 54 -Earnings on surplus funds 47 46 48 46 60 -22% 187 242 -23%Other (4) (9) (1) (16) 25 - (30) 9 -Income (loss) before income taxes 587 353 (523) 334 217 171% 751 75 901%Income taxes 48 5 179 (33) 167 -71% 199 670 -70%Net income (loss) attributed to shareholders 635 358 (344) 301 384 65% 950 745 28%

Premiums and DepositsPremiums 900 958 963 1,034 967 -7% 3,855 5,292 -27%Segregated fund deposits excluding variable annuities 594 474 621 802 498 19% 2,491 2,421 3%Mutual fund deposits 407 320 297 355 189 115% 1,379 508 171%ASO premium equivalents 662 636 673 676 663 0% 2,647 2,629 1%Group Benefits ceded 4 933 920 916 906 919 2% 3,675 2,760 33%Premiums and deposits excluding variable annuities 3,496 3,308 3,470 3,773 3,236 8% 14,047 13,610 3%Variable annuities segregated fund deposits 807 504 521 707 860 -6% 2,539 3,307 -23%Total premiums and deposits 4,303 3,812 3,991 4,480 4,096 5% 16,586 16,917 -2%4 At the end of the first quarter of 2009, Group Benefits entered into an external reinsurance agreement which resulted in a substantial reduction in net premium revenue reported in the statement of operations. The Company continues to retain certain benefits and certain risks on this business and the associated direct premiums continue to be included in the overall premiums and deposits metric as "Group Benefits ceded".

Funds Under ManagementGeneral fund 65,628 63,871 61,708 60,314 59,898 10% 65,628 59,898 10%Segregated funds 40,773 38,453 35,994 37,483 36,258 12% 40,773 36,258 12%Mutual funds, including assets held by segregated funds 5 16,760 15,750 14,687 14,935 14,563 15% 16,760 14,563 15%Less: Mutual funds held by segregated funds (9,546) (8,846) (8,273) (8,324) (8,055) 19% (9,546) (8,055) 19%Total funds under management 113,615 109,228 104,116 104,408 102,664 11% 113,615 102,664 11%5 Q3 2009 includes $3.8 billion regarding acquisition of the retail investment fund business of AIC Limited.

Page 19 CANADA

CANADA - INDIVIDUAL INSURANCE(Canadian $ in millions, unaudited)


2009 Q4 YTD 2009

Statements of OperationsRevenue Premium income 691 643 668 613 640 8% 2,615 2,484 5% Investment income 282 259 267 260 255 11% 1,068 994 7% Other revenue 7 6 4 6 6 17% 23 19 21%Subtotal revenue 980 908 939 879 901 9% 3,706 3,497 6% Realized/ unrealized gains (losses) on invested assets supporting policy liabilities 1 32 779 (33) 220 (98) - 998 880 13%Total revenue 1,012 1,687 906 1,099 803 26% 4,704 4,377 7%Policy benefits and expenses Policyholder benefits 584 1,359 971 781 663 -12% 3,695 3,980 -7% General expenses 95 88 83 80 81 17% 346 308 12% Investment expenses 19 16 19 14 14 36% 68 68 0% Commissions 136 112 107 105 115 18% 460 425 8% Other 21 19 19 18 17 24% 77 72 7%Total policy benefits and expenses 855 1,594 1,199 998 890 -4% 4,646 4,853 -4%Income (loss) before income taxes 157 93 (293) 101 (87) - 58 (476) - Income tax recovery (expense) 42 13 88 (2) 128 -67% 141 430 -67%Net income (loss) 199 106 (205) 99 41 385% 199 (46) - Income (loss) attributed to participating policyholders 3 6 2 4 (1) - 15 28 -46%Net income (loss) attributed to shareholders 2 196 100 (207) 95 42 367% 184 (74) -1 For fixed income assets supporting policy 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 policyholder benefits.2 Year over year increase reflects net pooled experience gains because equity, interest rate, credit and other non fixed income returns differ from our best estimate policy liability assumptions, and one-time tax related gains partially offset by higher new business strain.

SalesNew annualized premium sales Life and living benefits 3 72 50 53 48 55 31% 223 190 17% Other 4 15 14 16 14 15 0% 59 61 -3%Total new annualized premium sales 87 64 69 62 70 24% 282 251 12%

Single premium sales 566 64 37 49 60 10% 216 193 12%

3 Sales of life and living benefits consist of 100% of recurring premiums and 10% of excess premiums in accordance with guidance from LIMRA International effective 2009. Comparative periods have been restated in accordance with the new definitions. 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.4 Other includes products such as health, dental and mortgage creditor insurance.5 Single premium sales include travel insurance, credit card balance coverage and auto creditor insurance.

Premiums and Deposits Premiums 691 643 668 613 640 8% 2,615 2,484 5% Segregated fund deposits 2 2 1 2 2 0% 7 7 0% ASO premium equivalents 14 14 14 12 14 0% 54 54 0%Total premiums and deposits 707 659 683 627 656 8% 2,676 2,545 5%

Funds Under Management General fund 25,286 24,534 23,297 22,761 21,954 15% 25,286 21,954 15% Segregated funds 222 208 195 213 210 6% 222 210 6%Total funds under management 25,508 24,742 23,492 22,974 22,164 15% 25,508 22,164 15%

Changes in General and Segregated Funds Under ManagementBeginning balance 24,742 23,492 22,974 22,164 21,564 15% 22,164 19,937 11% Premiums and deposits 693 645 669 615 642 8% 2,622 2,491 5% Investment income 6 333 1,056 222 486 164 103% 2,097 1,917 9% Benefits and withdrawals (318) (279) (316) (320) (301) 6% (1,233) (1,160) 6% Other 7 58 (172) (57) 29 95 -39% (142) (1,021) -86%Ending balance 25,508 24,742 23,492 22,974 22,164 15% 25,508 22,164 15%6 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.7 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.

Page 20 CANADA - INDIVIDUAL INSURANCE

CANADA - INDIVIDUAL WEALTH MANAGEMENT(Canadian $ in millions, unaudited)


2009 Q4 YTD 2009

Statements of OperationsRevenue Premium income 142 241 247 309 247 -43% 939 1,417 -34% Investment income 314 293 277 274 291 8% 1,158 1,114 4% Other revenue 308 285 266 267 263 17% 1,126 869 30%Subtotal revenue 764 819 790 850 801 -5% 3,223 3,400 -5% Realized/ unrealized gains (losses) on invested assets supporting policy liabilities 1 (338) 222 141 85 (149) 127% 110 437 -75%Total revenue 426 1,041 931 935 652 -35% 3,333 3,837 -13%Policy benefits and expenses Policyholder benefits (216) 588 779 514 126 - 1,665 2,012 -17% General expenses 88 77 74 69 71 24% 308 267 15% Investment expenses 46 46 47 47 48 -4% 186 157 18% Commissions 153 116 120 135 139 10% 524 489 7% Other 71 58 51 48 55 29% 228 255 -11%Total policy benefits and expenses 142 885 1,071 813 439 -68% 2,911 3,180 -8%Income (loss) before income taxes 284 156 (140) 122 213 33% 422 657 -36% Income tax recovery (expense) (4) (6) 44 (15) 30 - 19 63 -70%

Net income (loss) attributed to shareholders2 280 150 (96) 107 243 15% 441 720 -39%1 For fixed income assets supporting policy 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 policyholder benefits.2 Year over year increase driven by the impact of market appreciation and business growth, partially offset by additional hedging of in-force variable annuity guarantees.

Premiums and Deposits Premiums 142 241 247 309 247 -43% 939 1,417 -34% Mutual fund deposits 407 320 297 355 189 115% 1,379 508 171%

Premiums and deposits excluding variable annuities 549 561 544 664 436 26% 2,318 1,925 20% Variable annuities segregated fund deposits 807 504 521 707 860 -6% 2,539 3,307 -23%Total premiums and deposits 1,356 1,065 1,065 1,371 1,296 5% 4,857 5,232 -7%

Manulife Bank lending volumes3 1,210 1,159 1,104 882 1,022 18% 4,355 4,068 7%3 Manulife Bank lending volumes represent bank loans and mortgages authorized in the period.

Funds Under Management General fund - Manulife Bank 17,276 16,458 16,390 16,019 15,417 12% 17,276 15,417 12% General fund - Other 12,012 11,964 11,407 11,120 12,050 0% 12,012 12,050 0% Segregated funds 25,407 24,015 22,606 23,739 23,227 9% 25,407 23,227 9% Mutual funds, including assets held by segregated funds 4 16,760 15,750 14,687 14,935 14,563 15% 16,760 14,563 15% Less: Mutual funds held by segregated funds (9,546) (8,846) (8,273) (8,324) (8,055) 19% (9,546) (8,055) 19%Total funds under management 61,909 59,341 56,817 57,489 57,202 8% 61,909 57,202 8%4 Q3 2009 includes $3.8 billion regarding acquisition of the retail investment fund business of AIC Limited.

Changes in General, Segregated and Mutual Funds Under ManagementBeginning balance 59,341 56,817 57,489 57,202 56,851 4% 57,202 43,047 33%

Premiums 1,356 1,065 1,065 1,371 1,296 5% 4,857 5,232 -7%Bank deposits 576 55 366 569 (561) - 1,566 2,524 -38%Investment income (loss) 5 1,651 2,583 (900) 1,137 897 84% 4,471 6,318 -29%General fund benefits and withdrawals (333) (312) (319) (378) (330) 1% (1,342) (1,257) 7%Segregated fund withdrawals (635) (505) (458) (647) (490) 30% (2,245) (1,559) 44%Mutual fund withdrawals (372) (319) (346) (418) (410) -9% (1,455) (775) 88%Other 6 325 (43) (80) (1,347) (51) - (1,145) 3,672 -

Ending balance 61,909 59,341 56,817 57,489 57,202 8% 61,909 57,202 8%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 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 and changes in allocated capital. Other for segregated and mutual funds includes expenses and transfers to/from other business units.

Page 21 CANADA - INDIVIDUAL WEALTH MANAGEMENT

CANADA - GROUP BUSINESSES (Canadian $ in millions, unaudited)


2009 Q4 YTD 2009

Statements of OperationsRevenue Premium income1 67 74 48 112 80 -16% 301 1,391 -78% Investment income 133 131 129 127 130 2% 520 519 0% Other revenue1 148 145 179 141 191 -23% 613 560 9%Subtotal revenue 348 350 356 380 401 -13% 1,434 2,470 -42% Realized/ unrealized gains (losses) on invested assets supporting policy liabilities2 (59) 114 40 43 (26) 127% 138 300 -54%Total revenue 289 464 396 423 375 -23% 1,572 2,770 -43%Policy benefits and expenses Policyholder benefits1 (47) 171 303 128 105 - 555 2,139 -74% General expenses 114 109 109 109 107 7% 441 426 4% Investment expenses 14 13 14 13 13 8% 54 47 15% Commissions 41 39 39 38 39 5% 157 155 1% Other 18 22 19 20 21 -14% 79 81 -2%Total policy benefits and expenses 140 354 484 308 285 -51% 1,286 2,848 -55%Income (loss) before income taxes 149 110 (88) 115 90 66% 286 (78) - Income tax recovery (expense) 10 (2) 47 (16) 9 11% 39 177 -78%Net income (loss) attributed to shareholders3 159 108 (41) 99 99 61% 325 99 228%1 At the end of the first quarter of 2009, Group Benefits entered into an external reinsurance agreement the impact of which has been been reflected in premiums, other revenue and policyholder benefits effective Q2 2009.2 For assets supporting policy liabilities, the impact of realized/ unrealized gains (losses) on the assets is largely offset in the change in actuarial liabilities, included in policyholder benefits.3 Year over year increase reflects net pooled experience gains because equity, interest rates, credit and other non fixed income returns differ from our best estimate policy liability assumptions.

SalesGroup Benefits4 77 83 70 124 71 8% 354 364 -3%Group Retirement Solutions - new annualized premium sales 14 25 26 95 22 -36% 160 168 -5%Group Retirement Solutions - single premium sales 170 92 149 362 135 26% 773 1,152 -33%Total sales 261 200 245 581 228 14% 1,287 1,684 -24%4 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 67 74 48 112 80 -16% 301 1,391 -78% Segregated fund deposits 592 472 620 800 496 19% 2,484 2,414 3% ASO premium equivalents 648 622 659 664 649 0% 2,593 2,575 1% Group Benefits ceded5 933 920 916 906 919 2% 3,675 2,760 33%Total premiums and deposits 2,240 2,088 2,243 2,482 2,144 4% 9,053 9,140 -1%5 At the end of the first quarter of 2009, Group Benefits entered into an external reinsurance agreement which resulted in a substantial reduction in net premium revenue reported in the statement of operations. The Company continues to retain certain benefits and certain risks on this business and the associated direct premiums continue to be included in the overall premiums and deposits metric as "Group Benefits ceded".

Funds Under Management General funds 11,054 10,915 10,614 10,414 10,477 6% 11,054 10,477 6% Segregated funds 15,144 14,230 13,193 13,531 12,821 18% 15,144 12,821 18%Total funds under management 26,198 25,145 23,807 23,945 23,298 12% 26,198 23,298 12%

Changes in General and Segregated Funds Under ManagementBeginning balance 25,145 23,807 23,945 23,298 22,664 11% 23,298 19,278 21% Premiums and deposits 659 546 668 912 576 14% 2,785 3,805 -27% Investment income (loss)6 820 1,198 (378) 457 444 85% 2,097 2,839 -26% Benefits and withdrawals (427) (368) (409) (404) (370) 15% (1,608) (2,140) -25% Other 7 1 (38) (19) (318) (16) - (374) (484) -23%Ending balance 26,198 25,145 23,807 23,945 23,298 12% 26,198 23,298 12%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.7 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 includes general expenses, investment expenses, taxes, changes in receivables

and payables, transfers to/from other Business Units and changes in allocated capital.

Page 22 CANADA - GROUP BUSINESSES

ASIA DIVISION(Unaudited)


2009 Q4 YTD 2009

Statements of Operations - U.S. $ in millions Revenue Premium income 1,359 1,279 1,078 1,003 938 45% 4,719 3,541 33% Investment income 249 218 220 202 203 23% 889 755 18% Other revenue 210 181 178 249 206 2% 818 731 12%Subtotal revenue 1,818 1,678 1,476 1,454 1,347 35% 6,426 5,027 28% Realized/ unrealized gains (losses) on invested assets supporting policy liabilities1 (277) 685 255 146 118 - 809 1,033 -22%Total revenue 1,541 2,363 1,731 1,600 1,465 5% 7,235 6,060 19%Policy benefits and expenses Policyholder benefits 675 1,298 2,066 744 815 -17% 4,783 3,539 35% General expenses 237 192 186 177 183 30% 792 674 18% Investment expenses 19 17 17 15 14 36% 68 46 48% Commissions 212 185 164 181 154 38% 742 590 26% Other 22 31 23 23 9 144% 99 66 50%Total policy benefits and expenses 1,165 1,723 2,456 1,140 1,175 -1% 6,484 4,915 32%Income (loss) before income taxes 376 640 (725) 460 290 30% 751 1,145 -34% Income tax recovery (expense) (23) (54) 34 (45) (37) -38% (88) 375 -Net income (loss) 353 586 (691) 415 253 40% 663 1,520 -56% Income (loss) attributed to participating policyholders 18 40 2 3 (21) - 63 (10) -Net income (loss) attributed to shareholders2 335 546 (693) 412 274 22% 600 1,530 -61%1 For fixed income assets supporting policy 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 policyholder benefits.2 See the Q4 press release for a description of Q4 2010 results compared to Q4 2009.

Source of Earnings - U.S. $ in millionsExpected profit from in-force business 193 180 177 173 165 17% 723 595 22%Impact of new business (31) 3 33 12 9 - 17 29 -41%Experience gains (losses) 147 366 (979) 230 70 110% (236) 305 -Management actions and changes in assumptions - - (1) 1 - - - 21 -100%Earnings on surplus funds 42 45 40 40 43 -2% 167 161 4%Other 7 6 3 1 24 -71% 17 44 -61%Income (loss) before income taxes 358 600 (727) 457 311 15% 688 1,155 -40%Income taxes (23) (54) 34 (45) (37) -38% (88) 375 -Net income (loss) attributed to shareholders 335 546 (693) 412 274 22% 600 1,530 -61%

Premiums and Deposits - U.S. $ in millions Premiums 1,359 1,279 1,078 1,003 938 45% 4,719 3,541 33%Segregated fund deposits excluding variable annuities 550 445 429 440 498 10% 1,864 1,810 3%Mutual fund deposits3 822 304 460 164 267 208% 1,750 1,262 39%Premiums and deposits excluding variable annuities 2,731 2,028 1,967 1,607 1,703 60% 8,333 6,613 26%Variable annuities segregated fund deposits 72 156 318 723 223 -68% 1,269 1,496 -15%Total premiums and deposits 2,803 2,184 2,285 2,330 1,926 46% 9,602 8,109 18%3 From Q2 2010 onwards, this line includes the 49% interest in Manulife TEDA.

Funds Under Management - U.S. $ in millions General fund 29,293 28,031 24,932 23,678 23,377 25% 29,293 23,377 25%Segregated funds 4 24,159 29,394 26,458 26,944 26,007 -7% 24,159 26,007 -7%Mutual funds 4,5 10,385 3,417 3,116 3,453 1,736 498% 10,385 1,736 498%Other funds 6 4,253 4,173 3,718 3,791 3,563 19% 4,253 3,563 19%Total funds under management 68,090 65,015 58,224 57,866 54,683 25% 68,090 54,683 25%4 Q4 2010 reflects a transfer of $6.5 billion from segregated funds to mutual funds resulting from restructuring of the Company's Hong Kong pension business.5 From Q1 2010 onwards, these lines include the 49% interest in Manulife TEDA.6 Other funds mainly include funds managed by the Company for institutional clients in Hong Kong and Other Asia Territories.

Number of AgentsNumber of agents 42,576 40,170 38,373 35,140 35,263 21% 42,576 35,263 21%

Canadian $ in millions - Summary Statements of Operations and Key MetricsRevenue 1,559 2,453 1,779 1,664 1,547 1% 7,455 6,833 9%Total policy benefits and expenses 1,180 1,788 2,523 1,186 1,239 -5% 6,677 5,568 20%Net income (loss) attributed to shareholders 339 567 (710) 427 291 16% 623 1,739 -64%Total premiums and deposits 2,840 2,265 2,351 2,423 2,036 39% 9,879 9,308 6%Total funds under management 67,713 66,951 61,760 58,771 57,234 18% 67,713 57,234 18%

Page 23 ASIA

ASIA - HONG KONG(Unaudited)


2009 Q4 YTD 2009

Statements of Operations - U.S. $ in millions Revenue Premium income 342 348 314 291 322 6% 1,295 1,220 6% Investment income 90 86 95 79 78 15% 350 309 13% Other revenue 68 62 63 63 64 6% 256 224 14%Subtotal revenue 500 496 472 433 464 8% 1,901 1,753 8% Realized/ unrealized gains (losses) on invested assets supporting policy liabilities1 (141) 315 48 69 14 - 291 398 -27%Total revenue 359 811 520 502 478 -25% 2,192 2,151 2%Policy benefits and expenses Policyholder benefits 152 592 353 310 266 -43% 1,407 1,390 1% 62 43 46 43 42 48% 194 158 23% Investment expenses 7 5 6 4 4 75% 22 16 38% Commissions 66 46 45 45 52 27% 202 170 19% Other 11 11 10 10 10 10% 42 40 5%Total policy benefits and expenses 298 697 460 412 374 -20% 1,867 1,774 5%Income before income taxes 61 114 60 90 104 -41% 325 377 -14% Income tax recovery (expense) (1) 2 13 (7) (2) -50% 7 16 -56%

Net income attributed to shareholders 2 60 116 73 83 102 -41% 332 393 -16%1 For fixed income assets supporting policy 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 policyholder benefits.2 Year over year decrease is primarily driven by one-time DAC write-off related to a restructure of our pension business and higher new business strain.

Sales - U.S. $ in millions Insurance 3

Total insurance sales 59 47 45 42 48 23% 193 151 28%Wealth Management Group pensions - new annualized premium sales 15 13 13 14 16 -6% 55 53 4% Group pensions - single premium sales 141 106 101 100 127 11% 448 538 -17% Individual Wealth Management excluding variable annuities4 254 72 61 75 89 185% 462 242 91% Individual Wealth Management variable annuities - - - 1 - - 1 15 -93%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 342 348 314 291 322 6% 1,295 1,220 6% Segregated fund deposits excluding variable annuities 449 370 365 365 415 8% 1,549 1,545 0% Mutual fund deposits 169 31 25 37 33 412% 262 97 170%Premiums and deposits excluding variable annuities 960 749 704 693 770 25% 3,106 2,862 9% Variable annuities segregated fund deposits - - - 1 - - 1 15 -93%Total premiums and deposits 960 749 704 694 770 25% 3,107 2,877 8%

Funds Under Management - U.S. $ in millions General fund 9,540 9,386 8,834 8,537 8,008 19% 9,540 8,008 19% Segregated funds 5 4,604 10,495 9,180 9,460 9,249 -50% 4,604 9,249 -50% Mutual funds 5 7,495 759 637 697 694 980% 7,495 694 980% Other funds 6 3,936 3,854 3,476 3,592 3,388 16% 3,936 3,388 16%Total funds under management 25,575 24,494 22,127 22,286 21,339 20% 25,575 21,339 20%5 Q4 2010 reflects a transfer of $6.5 billion from segregated funds to mutual funds resulting from restructuring of the pension business.6 Other funds include funds managed by the Company for institutional clients.

Changes in General, Segregated, Mutual and Other Funds Under Management- U.S. $ in millionsBeginning balance 24,494 22,127 22,286 21,339 20,060 22% 21,339 15,211 40% Premiums and deposits 960 749 704 694 770 25% 3,107 2,877 8% Investment income (loss) 7 513 2,053 (576) 15 733 -30% 2,005 4,520 -56% Benefits and withdrawals (378) (360) (291) (279) (308) 23% (1,308) (1,062) 23% Other8 (14) (75) 4 517 84 - 432 (207) -Ending balance 25,575 24,494 22,127 22,286 21,339 20% 25,575 21,339 20%7 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.8 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. 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 4,593 4,442 4,399 4,393 4,444 3% 4,593 4,444 3%

Canadian $ in millions - Key MetricsNet income attributed to shareholders 61 120 76 86 109 -44% 343 446 -23%Sales - Insurance 59 49 47 43 51 16% 198 170 16%Sales - Wealth Management 415 199 180 197 246 69% 991 974 2%Total premiums and deposits 973 777 723 723 815 19% 3,196 3,285 -3%Total funds under management 25,436 25,224 23,469 22,634 22,334 14% 25,436 22,334 14%Page 24 ASIA - HONG KONG

ASIA - OTHER ASIA TERRITORIES(Unaudited)


2009 Q4 YTD 2009

Statements of Operations - U.S. $ in millions Revenue Premium income 518 398 363 317 303 71% 1,596 1,101 45% Investment income 109 85 83 79 81 35% 356 274 30% Other revenue 37 21 33 39 33 12% 130 112 16%Subtotal revenue 664 504 479 435 417 59% 2,082 1,487 40% Realized/ unrealized gains on invested assets supporting policy liabilities 1 (92) 319 87 74 72 - 388 462 -16%Total revenue 572 823 566 509 489 17% 2,470 1,949 27%Policy benefits and expenses Policyholder benefits 324 564 465 317 327 -1% 1,670 1,460 14% General expenses 87 68 61 56 66 32% 272 229 19% Investment expenses 8 8 8 8 7 14% 32 18 78% Commissions 70 54 51 51 51 37% 226 190 19% Other 9 29 11 9 (2) - 58 18 222%Total policy benefits and expenses 498 723 596 441 449 11% 2,258 1,915 18%Income (loss) before income taxes 74 100 (30) 68 40 85% 212 34 524% Income tax recovery (expense) (18) (19) 16 (16) (33) -45% (37) (13) 185%Net income (loss) 56 81 (14) 52 7 700% 175 21 733% Income (loss) attributed to participating policyholders 18 40 2 3 (21) - 63 (10) -

Net income (loss) attributed to shareholders 2 38 41 (16) 49 28 36% 112 31 261%1 For fixed income assets supporting policy 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 policyholder benefits.2 Year over year increase is driven by experience gains because equity, interest rate, credit and other non-fixed income returns differ from our best estimate policy liability assumptions.

Sales - U.S. $ in millions Total insurance sales 3 84 69 65 62 66 27% 280 231 21%Wealth Management excluding variable annuities4 872 382 520 200 286 205% 1,974 1,335 48%Wealth Management variable annuities - 1 1 3 3 -100% 5 109 -95%3 Consists of 100% of recurring premiums and 10% of both excess and single premiums.4 Sales for Wealth Management businesses are measured by premiums and deposits, and include mutual fund deposits, pension sales and investment linked sales.

Premiums and Deposits - U.S. $ in millions Premiums 518 398 363 317 303 71% 1,596 1,101 45% Segregated fund deposits excluding variable annuities 101 75 64 75 83 21% 315 265 19% Mutual fund deposits 5 652 273 435 127 234 179% 1,487 1,160 28%Premiums and deposits excluding variable annuities 1,271 746 862 519 620 105% 3,398 2,526 35% Variable annuities segregated fund deposits - 1 1 3 3 -100% 5 109 -95%Total premiums and deposits 1,271 747 863 522 623 104% 3,403 2,635 29%5 From Q2 2010 onwards, this line included the 49% interest in Manulife TEDA.

Funds Under Management - U.S. $ in millions General fund 8,915 8,367 7,457 7,120 6,795 31% 8,915 6,795 31% Segregated funds 2,442 2,345 2,124 2,210 2,158 13% 2,442 2,158 13% Mutual funds 6 2,889 2,657 2,478 2,753 1,039 178% 2,889 1,039 178% Other funds 317 319 242 199 175 81% 317 175 81%Total funds under management 14,563 13,688 12,301 12,282 10,167 43% 14,563 10,167 43%6 Reflects the acquisition of 49% interest in Manulife TEDA, in Q1 2010.

Changes in General, Segregated, Mutual and Other Funds Under Management - U.S. $ in millionsBeginning balance 13,688 12,301 12,282 10,167 9,480 44% 10,167 7,341 38% Premiums and deposits 1,271 747 863 522 623 104% 3,403 2,635 29% Investment income (loss) 7 292 941 (59) 233 297 -2% 1,407 1,672 -16% Benefits and withdrawals (833) (754) (718) (490) (413) 102% (2,795) (1,881) 49% Other 6,8 145 453 (67) 1,850 180 -19% 2,381 400 495%Ending balance 14,563 13,688 12,301 12,282 10,167 43% 14,563 10,167 43%7 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.8 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 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 34,745 32,465 30,651 27,468 27,510 26% 34,745 27,510 26%

Canadian $ in millions - Key MetricsNet income (loss) attributed to shareholders 39 43 (16) 50 29 34% 116 35 231%Sales - Insurance 86 72 67 64 70 23% 289 262 10%Sales - Wealth management 883 399 534 212 305 190% 2,028 1,683 20%Total premiums and deposits 1,289 773 889 541 657 96% 3,492 3,035 15%Total funds under management 14,477 14,094 13,052 12,476 10,645 36% 14,477 10,645 36%

Page 25 ASIA - OTHER ASIA TERRITORIES

ASIA - JAPAN(Unaudited)


2009 Q4 YTD 2009

Statements of Operations - U.S. $ in millions Revenue Premium income 499 533 401 395 313 59% 1,828 1,220 50% Investment income 50 47 42 44 44 14% 183 172 6% Other revenue 105 98 82 147 109 -4% 432 395 9%Subtotal revenue 654 678 525 586 466 40% 2,443 1,787 37% Realized/ unrealized gains (losses) on invested assets supporting policy liabilities 1 (44) 51 120 3 32 - 130 173 -25%Total revenue 610 729 645 589 498 22% 2,573 1,960 31%Policy benefits and expenses Policyholder benefits 199 142 1,248 117 222 -10% 1,706 689 148% General expenses 88 81 79 78 75 17% 326 287 14% Investment expenses 4 4 3 3 3 33% 14 12 17% Commissions 76 85 68 85 51 49% 314 230 37% Other 2 (9) 2 4 1 100% (1) 8 -Total policy benefits and expenses 369 303 1,400 287 352 5% 2,359 1,226 92%Income (loss) before income taxes 241 426 (755) 302 146 65% 214 734 -71% Income tax recovery (expense) (4) (37) 5 (22) (2) 100% (58) 372 -

Net income (loss) attributed to shareholders 2 237 389 (750) 280 144 65% 156 1,106 -86%1 For fixed income assets supporting policy 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 policyholder benefits.2 Year over year increase is primarily driven by experience gains because equity, interest rate, credit and other non-fixed income returns differ from our best estimate policy liability assumptions. Sales - U.S. $ in millions Individual Insurance - New annualized premiums 164 177 117 105 71 131% 563 303 86%Wealth Management - Variable Annuities3 73 157 325 746 219 -67% 1,301 1,405 -7%Wealth Management - Fixed Annuities 43 59 42 16 - - 160 - -3 New business sales for Wealth Management are measured by deposits, and include mutual fund deposits and variable annuity sales.

Premiums and Deposits - U.S. $ in millions Premiums 499 533 401 395 313 59% 1,828 1,220 50% Mutual fund deposits 1 - - - - - 1 5 -80%Premiums and deposits excluding variable annuities 500 533 401 395 313 60% 1,829 1,225 49% Variable annuities segregated fund deposits 72 155 317 719 220 -67% 1,263 1,372 -8%Total premiums and deposits 572 688 718 1,114 533 7% 3,092 2,597 19%

Funds Under Management - U.S. $ in millions General fund 10,838 10,278 8,641 8,021 8,574 26% 10,838 8,574 26% Segregated funds 17,113 16,554 15,154 15,274 14,600 17% 17,113 14,600 17% Mutual funds 1 1 1 3 3 -67% 1 3 -67%Total funds under management 27,952 26,833 23,796 23,298 23,177 21% 27,952 23,177 21%

Changes in General, Segregated and Mutual Funds Under Management - U.S. $ in millions Beginning balance 26,833 23,796 23,298 23,177 24,931 8% 23,177 18,249 27%

Premiums and deposits 572 688 718 1,114 533 7% 3,092 2,597 19%Investment income (loss)4 310 682 (783) 462 347 -11% 671 1,908 -65%General fund benefits and withdrawals (250) (193) (206) (204) (227) 10% (853) (889) -4%Segregated, mutual and other fund benefits and withdrawals (203) (162) (208) (296) (190) 7% (869) (495) 76%Other5 690 2,022 977 (955) (2,217) - 2,734 1,807 51%

Ending balance 27,952 26,833 23,796 23,298 23,177 21% 27,952 23,177 21%4 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.5 Other is comprised of all changes to the statements of operations and balance sheet 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 3,238 3,263 3,323 3,279 3,309 -2% 3,238 3,309 -2%

Canadian $ in millions - Key MetricsNet income (loss) attributed to shareholders 239 404 (770) 291 153 56% 164 1,258 -87%Sales - Insurance 166 184 120 109 74 124% 579 346 67%Sales - Wealth management 117 225 377 792 231 -49% 1,511 1,632 -7%Total premiums and deposits 578 715 739 1,159 564 2% 3,191 2,988 7%Total funds under management 27,800 27,633 25,239 23,661 24,255 15% 27,800 24,255 15%

Yen in millions - Key MetricsNet income (loss) attributed to shareholders 19,505 33,355 (69,002) 25,384 13,008 50% 9,242 105,406 -91%Sales - Individual Insurance 13,530 15,184 10,764 9,496 6,348 113% 48,974 28,394 72%Sales - Wealth Management 9,538 18,559 33,775 69,019 19,623 -51% 130,891 132,509 -1%Total premiums and deposits 47,161 58,904 66,147 100,986 47,846 -1% 273,198 243,856 12%Total funds under management 2,267,537 2,241,135 2,106,748 2,176,791 2,157,908 5% 2,267,537 2,157,908 5%

Page 26 ASIA - JAPAN

REINSURANCE DIVISION(Unaudited)


2009 Q4 YTD 2009

Statements of Operations - U.S. $ in millionsRevenue Premium income 232 241 234 237 265 -12% 944 987 -4% Investment income 24 26 26 24 28 -14% 100 113 -12% Other revenue 8 6 5 6 (5) - 25 20 25%Subtotal revenue 264 273 265 267 288 -8% 1,069 1,120 -5% Realized/ unrealized gains (losses) on invested assets supporting policy liabilities 1 (34) 36 27 11 (11) 209% 40 68 -41%Total revenue 230 309 292 278 277 -17% 1,109 1,188 -7%Policy benefits and expenses Policyholder benefits 102 258 285 199 157 -35% 844 841 0% General expenses 11 11 10 11 2 450% 43 42 2% Investment expenses 1 1 - 1 1 0% 3 4 -25% Commissions - - 1 - - - 1 - - Other 2 1 - 3 1 100% 6 7 -14%Total policy benefits and expenses 116 271 296 214 161 -28% 897 894 0%Income (loss) before income taxes 114 38 (4) 64 116 -2% 212 294 -28% Income tax recovery (expense) (26) (3) 8 (13) (29) -10% (34) (62) -45%

Net income attributed to shareholders 2 88 35 4 51 87 1% 178 232 -23%1 For fixed income assets supporting policy liabilities, the impact of realized/ unrealized gains (losses) on the assets is largely offset in the change in actuarial liabilities, included in policyholder benefits. 2 See the Q4 press release for a description of Q4 2010 results compared to Q4 2009.

Source of Earnings - U.S. $ in millionsExpected profit from in-force business 52 52 55 54 59 -12% 213 218 -2%Impact of new business - - - 2 - - 2 10 -80%Experience gains (losses) 54 (21) (67) - 45 20% (34) 23 -Management actions and changes in assumptions - - - - - - - - -Earnings on surplus funds 7 7 7 6 11 -36% 27 41 -34%Other 1 - 1 2 1 0% 4 2 100%Income (loss) before income taxes 114 38 (4) 64 116 -2% 212 294 -28%Income taxes (26) (3) 8 (13) (29) -10% (34) (62) -45%Net income attributed to shareholders 88 35 4 51 87 1% 178 232 -23%

Premiums - U.S. $ in millions Life reinsurance 108 120 117 114 135 -20% 459 504 -9% Property and Casualty reinsurance 18 18 18 18 20 -10% 72 74 -3% International Group Program 106 103 99 105 110 -4% 413 409 1%Total premiums 232 241 234 237 265 -12% 944 987 -4%

Funds Under Management - U.S. $ in millions General fund 2,456 2,507 2,382 2,358 2,567 -4% 2,456 2,567 -4%

Canadian $ in millions - Key MetricsNet income attributed to shareholders 89 36 4 54 92 -3% 183 261 -30%Total premiums 234 251 241 246 279 -16% 972 1,123 -13%Total funds under management 2,443 2,584 2,527 2,395 2,687 -9% 2,443 2,687 -9%

Page 27 REINSURANCE

CORPORATE & OTHER(Canadian $ in millions, unaudited)


2009 Q4 YTD 2009

Statements of OperationsRevenue

Gross investment income 152 1,110 177 164 182 -16% 1,603 290 453%Interest on surplus funds allocated to divisions (196) (199) (197) (196) (230) -15% (788) (965) -18%

Other revenue 47 55 54 73 92 -49% 229 327 -30%Total revenue 3 966 34 41 44 -93% 1,044 (348) -Policy benefits and expenses General expenses 168 112 114 106 152 11% 500 452 11% Investment expenses (4) (1) (5) - 6 - (10) 17 - Commissions - - - - 1 -100% - 2 -100% Changes in actuarial methods and assumptions 63 2,901 (18) 2 220 -71% 2,948 1,626 81% Goodwill impairment - 1,039 - - - - 1,039 - - Other 127 118 106 160 139 -8% 511 336 52%Total policy benefits and expenses 354 4,169 197 268 518 -32% 4,988 2,433 105%Loss before income taxes (351) (3,203) (163) (227) (474) -26% (3,944) (2,781) 42% Income tax recovery 126 749 59 104 21 500% 1,038 693 50%

Loss attributed to shareholders 1 (225) (2,454) (104) (123) (453) -50% (2,906) (2,088) 39%1 See the Q4 press release for a description of Q4 2010 results compared to Q4 2009.

Deposits - Institutional clients Segregated fund deposits - - - - - - - 9 -100%

Institutional advisory accounts 443 350 1,060 847 363 22% 2,700 4,492 -40%Total deposits 443 350 1,060 847 363 22% 2,700 4,501 -40%

Funds Under ManagementGeneral fund 7,570 8,609 8,211 9,619 9,815 -23% 7,570 9,815 -23%Segregated funds - elimination of amounts held by the Company (148) (154) (129) (122) (118) 25% (148) (118) 25%Institutional advisory accounts 23,170 22,890 23,923 23,074 23,342 -1% 23,170 23,342 -1%Total funds under management 30,592 31,345 32,005 32,571 33,039 -7% 30,592 33,039 -7%

Page 28 CORPORATE AND OTHER

AssetInformation

INVESTED ASSETS - PORTFOLIO COMPOSITION(Canadian $ in millions, unaudited)

As at As at As at As at As atQ4 2010 % Q3 2010 % Q2 2010 % Q1 2010 % Q4 2009 %

Carrying valueCash and short-term securities 11,791 5.9 % 14,887 7.2 % 17,508 8.8 % 17,289 9.2 % 18,780 10.0 %

Public bonds Government Canadian government & agency 15,221 7.6 % 15,799 7.7 % 13,682 6.9 % 12,722 6.7 % 12,468 6.6 % US government & agency 18,696 9.4 % 17,272 8.4 % 11,671 5.8 % 9,347 5.0 % 7,595 4.0 % Foreign governments & agency 9,008 4.5 % 8,540 4.2 % 6,926 3.5 % 6,112 3.2 % 6,127 3.3 % Corporate 52,015 26.1 % 55,458 27.0 % 56,909 28.5 % 52,654 28.0 % 51,470 27.5 % Securitized

CMBS 4,565 2.3 % 4,876 2.4 % 5,152 2.6 % 5,007 2.7 % 5,111 2.7 %RMBS 482 0.2 % 506 0.3 % 517 0.3 % 501 0.3 % 525 0.3 %ABS 1,573 0.8 % 1,729 0.8 % 1,817 0.9 % 1,747 0.9 % 1,811 1.0 %

Total public bonds 101,560 50.9 % 104,180 50.8 % 96,674 48.5 % 88,090 46.8 % 85,107 45.4 %

Private placement debt 22,343 11.2 % 22,702 11.1 % 22,523 11.3 % 22,123 11.7 % 22,912 12.2 %

Mortgages Commercial Multi family residential 3,681 1.8 % 3,760 1.8 % 3,811 1.9 % 3,783 2.0 % 3,850 2.1 % Retail 5,883 3.0 % 6,004 2.9 % 6,182 3.1 % 5,852 3.1 % 5,993 3.2 % Office 5,482 2.8 % 5,273 2.6 % 5,171 2.6 % 4,738 2.5 % 4,819 2.6 % Industrial 3,183 1.6 % 3,252 1.6 % 3,396 1.7 % 3,357 1.8 % 3,442 1.8 % Other commercial 2,950 1.5 % 2,790 1.3 % 2,885 1.4 % 2,776 1.5 % 2,774 1.5 % Other mortgages Manulife Bank single residential 9,003 4.5 % 8,961 4.4 % 8,524 4.3 % 8,219 4.4 % 7,901 4.2 % Agriculture 1,634 0.8 % 1,818 0.9 % 1,812 0.9 % 1,880 1.0 % 1,920 1.0 %Total mortgages 1 31,816 16.0 % 31,858 15.5 % 31,781 15.9 % 30,605 16.3 % 30,699 16.4 %

Policy loans 6,486 3.2 % 6,648 3.2 % 6,857 3.5 % 6,495 3.4 % 6,609 3.5 %

Bank loans 2,355 1.2 % 2,402 1.2 % 2,438 1.2 % 2,468 1.3 % 2,457 1.3 %

Stocks 10,475 5.3 % 10,396 5.1 % 9,585 4.8 % 9,967 5.3 % 9,688 5.2 %

Real estate Office 4,425 2.2 % 4,091 2.0 % 3,843 1.9 % 3,568 1.9 % 3,614 1.9 % Industrial 656 0.3 % 665 0.3 % 662 0.3 % 648 0.3 % 669 0.3 % Company use 772 0.4 % 1,110 0.5 % 1,126 0.6 % 1,087 0.6 % 1,122 0.6 % Other 505 0.3 % 387 0.2 % 397 0.2 % 495 0.3 % 492 0.3 %Total real estate 6,358 3.2 % 6,253 3.0 % 6,028 3.0 % 5,798 3.1 % 5,897 3.2 %

Other Investments Private equity & mezzanine 1,655 0.8 % 1,323 0.6 % 1,336 0.7 % 1,304 0.7 % 1,217 0.7 % Power & infrastructure 1,680 0.8 % 1,739 0.8 % 1,711 0.8 % 1,580 0.8 % 1,540 0.8 % Oil & gas 858 0.4 % 789 0.4 % 724 0.4 % 666 0.4 % 734 0.4 % Timber 768 0.4 % 795 0.4 % 818 0.4 % 770 0.4 % 794 0.4 % Agriculture 574 0.3 % 524 0.3 % 523 0.3 % 424 0.2 % 428 0.2 % Affordable housing 519 0.3 % 529 0.3 % 554 0.3 % 523 0.3 % 545 0.3 % Other 210 0.1 % 216 0.1 % 212 0.1 % 206 0.1 % 63 0.0 %Total other investments 6,264 3.1 % 5,915 2.9 % 5,878 3.0 % 5,473 2.9 % 5,321 2.8 %

Total invested assets 199,448 100.0 % 205,241 100.0 % 199,272 100.0 % 188,308 100.0 % 187,470 100.0 %1 Includes government insured mortgages ($10,301 or 32% as at December 31, 2010)

Fair value 2

Real estate 6,738 6,580 6,294 6,095 6,343 Other investments 6,942 6,650 6,630 6,245 5,853 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 policy liabilities are reflected as earnings/charges through actuarial reserves.

INVESTED ASSETS - PORTFOLIO COMPOSITIONPage 29

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 As at As at As at As at As at

Rating Q4 2010 % Q3 2010 % Q2 2010 % Q1 2010 % Q4 2009 %

AAA 32,997 32% 30,905 30% 24,552 25% 21,475 24% 20,392 24%

AA 18,871 19% 20,350 19% 18,687 19% 16,614 19% 15,491 18%

A 29,977 29% 31,546 30% 31,376 33% 28,832 33% 28,247 33%

BBB 15,835 16% 17,453 17% 18,569 19% 17,838 20% 17,757 21%

BB 2,962 3% 3,153 3% 2,795 3% 2,628 3% 2,534 3%

B & lower, and unrated 918 1% 773 1% 695 1% 703 1% 686 1%

Total 101,560 100% 104,180 100% 96,674 100% 88,090 100% 85,107 100%

AAA 573 3% 593 3% 532 2% 532 2% 584 3%

AA 4,729 21% 4,838 21% 5,013 22% 4,830 22% 5,062 22%

A 5,659 25% 5,697 25% 5,434 24% 5,141 23% 5,336 23%

BBB 9,084 41% 9,204 41% 9,133 41% 9,279 42% 9,289 40%

BB 1,000 4% 880 4% 815 4% 757 4% 929 4%

B & lower, and unrated 1,298 6% 1,490 6% 1,596 7% 1,584 7% 1,712 8%

Total 22,343 100% 22,702 100% 22,523 100% 22,123 100% 22,912 100%

AAA 33,570 27% 31,498 25% 25,084 21% 22,007 20% 20,976 20%

AA 23,600 19% 25,188 20% 23,700 20% 21,444 19% 20,553 19%

A 35,636 29% 37,243 29% 36,810 31% 33,973 31% 33,583 31%

BBB 24,919 20% 26,657 21% 27,702 23% 27,117 25% 27,046 25%

BB 3,962 3% 4,033 3% 3,610 3% 3,385 3% 3,463 3%

B & lower, and unrated 2,216 2% 2,263 2% 2,291 2% 2,287 2% 2,398 2%

Total 123,903 100% 126,882 100% 119,197 100% 110,213 100% 108,019 100%

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

As at As at As at As at As at

Country Q4 2010 % Q3 2010 % Q2 2010 % Q1 2010 % Q4 2009 %

US 53,322 53% 54,623 52% 51,420 53% 46,272 53% 44,612 52%

Canada 28,079 28% 29,444 28% 27,158 28% 25,352 29% 24,349 29%

Europe 4,553 4% 4,912 5% 5,008 5% 4,662 5% 4,529 5%

Asia & Other 15,606 15% 15,201 15% 13,088 14% 11,804 13% 11,617 14%

Total 101,560 100% 104,180 100% 96,674 100% 88,090 100% 85,107 100%

US 11,353 51% 11,683 51% 11,492 51% 11,082 50% 11,750 51%

Canada 5,892 26% 5,900 26% 5,829 26% 5,934 27% 5,763 25%

Europe 4,002 18% 4,018 18% 4,176 18% 4,058 18% 4,287 19%

Asia & Other 1,096 5% 1,101 5% 1,026 5% 1,049 5% 1,112 5%

Total 22,343 100% 22,702 100% 22,523 100% 22,123 100% 22,912 100%

US 64,675 52% 66,306 52% 62,912 53% 57,354 52% 56,362 52%

Canada 33,971 27% 35,344 28% 32,987 27% 31,286 28% 30,112 28%

Europe 8,555 7% 8,930 7% 9,184 8% 8,720 8% 8,816 8%

Asia & Other 16,702 14% 16,302 13% 14,114 12% 12,853 12% 12,729 12%

Total 123,903 100% 126,882 100% 119,197 100% 110,213 100% 108,019 100%

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INVESTED ASSETS - FIXED INCOME SECURITIES BY CREDIT QUALITY AND GEOGRAPHICAL LOCATIONPage 30

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 Q4 2010 As at Q3 2010 As at Q2 2010 As at Q1 2010 As at Q4 2009Carrying Investment Carrying Investment Carrying Investment Carrying Investment Carrying Investment

value % grade % value % grade % value % grade % value % grade % value % grade %

Government & agency 42,925 42% 96% 41,611 40% 96% 32,279 33% 95% 28,181 32% 95% 26,190 31% 95%

Financial 18,497 18% 95% 19,696 19% 96% 20,563 21% 97% 19,282 22% 97% 19,104 23% 96%

Telecommunications 1,955 2% 99% 2,360 2% 99% 2,592 3% 99% 2,431 3% 99% 2,468 3% 99%

Utilities 11,577 11% 98% 12,766 12% 98% 12,580 13% 97% 11,406 13% 97% 11,311 13% 97%

Energy 6,787 7% 97% 7,293 7% 97% 7,698 8% 99% 7,229 8% 99% 6,844 8% 99%

Industrial 4,400 4% 100% 4,507 4% 99% 4,338 5% 99% 3,965 5% 99% 3,720 4% 99%

Securitized MBS/ABS 6,620 7% 91% 7,111 7% 91% 7,486 8% 92% 7,255 8% 92% 7,447 9% 93%

Consumer (non-cyclical) 3,234 3% 100% 3,197 3% 100% 3,234 3% 100% 2,960 3% 99% 2,706 3% 99%

Consumer (cyclical) 1,528 2% 94% 1,524 2% 92% 1,548 2% 92% 1,393 2% 91% 1,523 2% 91%

Basic materials 1,856 2% 91% 1,875 2% 91% 1,971 2% 91% 1,818 2% 91% 1,750 2% 91%

Technology 833 1% 100% 867 1% 100% 904 1% 100% 822 1% 100% 805 1% 100%

Media & internet 1,106 1% 100% 1,128 1% 100% 1,234 1% 100% 1,119 1% 100% 959 1% 100%

Diversified & miscellaneous 242 0% 100% 245 0% 100% 247 0% 99% 229 0% 99% 280 0% 99%

Total 101,560 100% 96% 104,180 100% 96% 96,674 100% 96% 88,090 100% 96% 85,107 100% 96%


Financial 2,227 10% 94% 2,313 10% 96% 2,314 10% 95% 2,407 11% 96% 2,543 11% 95%

Telecommunications 87 0% 100% 90 1% 100% 73 0% 100% 72 0% 100% 76 0% 100%

Utilities 6,183 28% 92% 6,085 27% 91% 5,877 26% 91% 5,674 26% 92% 5,765 25% 91%

Energy 1,691 8% 99% 1,557 7% 99% 1,545 7% 99% 1,535 7% 99% 1,427 6% 99%

Industrial 2,548 11% 86% 2,573 11% 85% 2,691 12% 85% 2,599 12% 84% 2,693 12% 85%

Securitized MBS/ABS 167 1% 100% 194 1% 100% 206 1% 100% 220 1% 100% 244 1% 100%



Basic materials 1,758 8% 73% 1,789 8% 73% 1,828 8% 75% 1,772 8% 74% 1,850 8% 74%

Technology 91 0% 100% 59 0% 100% 71 0% 100% 81 0% 100% 97 1% 100%

Media & internet 283 1% 66% 300 1% 66% 325 2% 68% 318 1% 67% 357 2% 69%


Total 22,343 100% 90% 22,702 100% 90% 22,523 100% 89% 22,123 100% 89% 22,912 100% 88%


Financial 20,724 17% 95% 22,009 17% 96% 22,877 19% 97% 21,689 20% 96% 21,647 20% 96%

Telecommunications 2,042 2% 99% 2,450 2% 99% 2,665 2% 99% 2,503 2% 99% 2,544 2% 99%

Utilities 17,760 14% 96% 18,851 15% 96% 18,457 16% 95% 17,080 15% 96% 17,076 16% 95%

Energy 8,478 7% 97% 8,850 7% 97% 9,243 8% 99% 8,764 8% 99% 8,271 8% 99%

Industrial 6,948 6% 94% 7,080 6% 94% 7,029 6% 94% 6,564 6% 93% 6,413 6% 93%

Securitized MBS/ABS 6,787 5% 91% 7,305 6% 91% 7,692 6% 92% 7,475 7% 92% 7,691 7% 93%



Basic materials 3,614 3% 82% 3,664 3% 83% 3,799 3% 83% 3,590 3% 83% 3,600 3% 82%

Technology 924 1% 100% 926 1% 100% 975 1% 100% 903 1% 100% 902 1% 100%

Media & internet 1,389 1% 93% 1,428 1% 93% 1,559 1% 93% 1,437 1% 93% 1,316 1% 92%


Total 123,903 100% 95% 126,882 100% 95% 119,197 100% 95% 110,213 100% 95% 108,019 100% 95%

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INVESTED ASSETS - FIXED INCOME SECURITIES BY SECTORPage 31

INVESTED ASSETS - PROVISIONS, IMPAIRMENTS & UNREALIZED (LOSSES)(Canadian $ in millions, unaudited)

Unrealized (losses)

Amounts Amounts Amounts Amounts AmountsAmortized < 80% cost Amortized < 80% cost Amortized < 80% cost Amortized < 80% cost Amortized < 80% cost

cost $ % > 6 months cost $ % > 6 months cost $ % > 6 months cost $ % > 6 months cost $ % > 6 months

Public bonds Government 42,434 (847) 2% - 39,262 (59) 0% - 30,226 (81) 0% - 27,269 (279) 1% - 25,488 (374) 1% (27) Corporate Financials 17,907 (289) 2% (96) 18,658 (248) 1% (106) 19,939 (373) 2% (111) 18,897 (375) 2% (96) 18,999 (593) 3% (226) Non-financials 31,419 (165) 1% - 32,278 (97) 0% (15) 33,573 (168) 1% (15) 31,733 (228) 1% (39) 30,847 (331) 1% (33) Securitized CMBS 4,472 (111) 2% (93) 4,783 (165) 3% (142) 5,143 (203) 4% (172) 5,069 (232) 5% (196) 5,324 (293) 6% (235) RMBS 677 (203) 30% (173) 740 (241) 33% (213) 803 (292) 36% (266) 827 (331) 40% (307) 906 (384) 42% (360) ABS 1,583 (89) 6% (79) 1,734 (123) 7% (111) 1,860 (143) 8% (118) 1,842 (165) 9% (136) 1,962 (205) 10% (166) Private placement debt 22,343 (111) 0% - 22,702 (100) 0% (26) 22,523 (147) 1% (15) 22,123 (154) 1% (13) 22,912 (205) 1% (16) Fixed income securities 1 120,835 (1,815) 2% (441) 120,157 (1,033) 1% (613) 114,067 (1,407) 1% (697) 107,760 (1,764) 2% (787) 106,438 (2,385) 2% (1,063)

Provisions, impairments and recoveries 2

Par Non-par Total Par Non-par Total Par Non-par Total Par Non-par Total Par Non-par Total

Credit related Loans - (9) (9) (9) (9) (18) (5) (27) (32) (2) (10) (12) 11 8 19 Public bonds - FVO (1) (4) (5) - (19) (19) (1) (19) (20) 4 (12) (8) (29) - (29) Public bonds - AFS - (6) (6) - (2) (2) - (10) (10) - (5) (5) - (3) (3) Other 3 - 1 1 - 3 3 - 1 1 - 1 1 - 1 1 Sub-total (1) (18) (19) (9) (27) (36) (6) (55) (61) 2 (26) (24) (18) 6 (12) Equity related Public - AFS - (3) (3) - (4) (4) - (8) (8) - (7) (7) - (29) (29) Private equities and Other 3 - - - - (7) (7) (2) (19) (21) - (33) (33) - (24) (24) Sub-total - (3) (3) - (11) (11) (2) (27) (29) - (40) (40) - (53) (53) Total (1) (21) (22) (9) (38) (47) (8) (82) (90) 2 (66) (64) (18) (47) (65) 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.

Net impaired fixed income assets

Gross Carrying Gross Carrying Gross Carrying Gross Carrying Gross Carryingamount Allowances value amount Allowances value amount Allowances value amount Allowances value amount Allowances value

Loans Mortgages and bank loans 117 (34) 83 234 (63) 171 205 (55) 150 186 (45) 141 173 (55) 118 Private placements 349 (84) 265 454 (98) 356 498 (95) 403 479 (82) 397 489 (128) 361 Sub-total 466 (118) 348 688 (161) 527 703 (150) 553 665 (127) 538 662 (183) 479 Other fixed income 4

Public bonds - FVO 152 - 152 187 - 187 188 - 188 175 - 175 139 - 139 Public bonds - AFS 34 - 34 33 - 33 35 - 35 8 - 8 7 - 7 Other 2 - 2 3 - 3 3 - 3 2 - 2 2 - 2 Sub-total 188 - 188 223 - 223 226 - 226 185 - 185 148 - 148 Total 654 (118) 536 911 (161) 750 929 (150) 779 850 (127) 723 810 (183) 627 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.

Gross unrealized (losses)

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 fixed income securities, which impact net investment income, are largely offset by the changes in actuarial liabilities unless the security is credit impaired.

As at Q2 2010As at Q3 2010As at Q4 2010Gross unrealized

(losses)

As at Q1 2010 As at Q4 2009

Q3 2010 Q2 2010 Q1 2010

Gross unrealized (losses)

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.

As at Q4 2009

Gross unrealized (losses) Gross unrealized (losses)

As at Q4 2010 As at Q3 2010 As at Q2 2010 As at Q1 2010

Q4 2009Q4 2010

INVESTED ASSETS - PROVISIONS, IMPAIRMENTS AND UNREALIZED GAINS/(LOSSES)Page 32

INVESTMENT INCOME(Canadian $ in millions, unaudited)

Amount Yield Amount Yield Amount Yield Amount Yield Amount Yield

Cash and short-term securitiesInvestment income 31 n/a 27 n/a 17 n/a 12 n/a 17 n/a

BondsInterest income 1,158 4.8% 1,124 4.9% 1,095 5.0% 1,096 5.2% 1,053 5.2%Impairments, net 1 (11) (21) (30) (13) (32) Realized gains and (losses) on AFS securities 40 824 7 (2) - Total 1,187 4.7% 1,927 8.0% 1,072 4.7% 1,081 4.9% 1,021 4.9%1 Includes impairments on bonds classified as AFS and fair value option.

Stock securitiesDividend income 52 2.0% 60 2.4% 75 3.1% 56 2.3% 66 2.7%Impairments, net (3) (4) (8) (7) (29) Realized gains and (losses) on AFS securities 27 57 (1) 41 (10) Total 76 2.9% 113 4.6% 66 2.7% 90 3.8% 27 1.1%

LoansMortgage loan interest income 408 5.2% 404 5.2% 393 5.2% 386 5.1% 404 5.4%Private placement interest income 2 355 6.4% 332 6.0% 316 5.8% 200 3.5% 336 5.9%Policy loan interest income 104 6.3% 103 6.0% 102 6.1% 113 6.8% 110 6.6%Bank loan interest income 26 4.5% 24 4.0% 22 3.7% 21 3.5% 22 3.6%Impairments, net (9) (18) (32) (12) 19

Total 884 5.6% 845 5.4% 801 5.2% 708 4.6% 891 5.8%2 1Q10 Includes tax related provisions for service contract investments.

Real estateRental income 83 5.4% 92 6.2% 95 6.7% 94 6.5% 77 5.3%Amortization of realized net gains and move to market 16 14 12 12 18

Total 99 6.6% 106 7.4% 107 7.7% 106 7.5% 95 6.7%

Other investmentsInvestment income 92 n/a 70 n/a 36 n/a 42 n/a 76 n/a

Derivatives 3

Losses on macro equity hedges (119) - - - -Other derivative income (loss) 9 (7) (5) 3 (66)Total (110) n/a (7) n/a (5) n/a 3 n/a (66) n/a3 Derivatives are classified as Other Assets but income on holdings are included in investment income.

Investment income 4 2,259 4.5% 3,081 6.3% 2,094 4.5% 2,042 4.4% 2,061 4.4%4 Investment income includes dividends, interest, rental income and realized gains on assets supporting surplus.

Realized/ unrealized gains (losses) on assets supporting policy liabilities and consumer notes

Bonds (3,111) 2,477 2,211 966 (631)

Stocks 565 689 (479) 170 305

Loans 51 42 4 6 (2)

Other investments (51) (22) 11 2 41

Derivatives (2,743) 683 2,070 5 (1,154)

Total (5,289) n/a 3,869 n/a 3,817 n/a 1,149 n/a (1,441) n/a

Total investment income (3,030) -5.8% 6,950 14.7% 5,911 13.0% 3,191 6.9% 620 1.3%

Investment expenses related to invested assets (106) n/a (90) n/a (90) n/a (94) n/a (108) n/a

Investment income less investment expenses (3,136) -6.0% 6,860 14.5% 5,821 12.8% 3,097 6.7% 512 1.1%

Q4 2009Q4 2010 Q3 2010 Q2 2010 Q1 2010

ASSET INFORMATION - INVESTMENT INCOMEPage 33

Actuarial LiabilitiesInformation

VARIABLE ANNUITY PRODUCT GUARANTEES(Canadian $millions, unaudited)

Gross Amount

Amount Reinsured

Amount Dynamically Hedged

Net of Reinsurance & Dynamic Hedging 1 Gross Amount

Amount Reinsured

Amount Dynamically Hedged

Net of Reinsurance & Dynamic Hedging 1

Expected Gain/ (Loss) from Guarantees3

Unhedged Business

Dynamically Hedged

Business

Target Capital (200 % of MCCSR)

Policy Liabilities Held plus Target Capital

Q4 2010 110,765 12,032 49,291 49,442 13,040 2,663 3,109 7,268

Q3 2010 112,837 12,784 48,238 51,815 16,016 3,342 3,976 8,698

Q2 2010 114,313 13,553 44,884 55,876 21,269 4,261 5,610 11,398

Q1 2010 109,103 13,272 42,277 53,554 14,977 3,330 3,516 8,131

Q4 2009 110,638 13,997 24,880 71,761 17,124 3,777 1,792 11,555

Total Total Net Key markets, closing levels S&P 500 TSX TOPIX EAFEAs at Q4 2010 Guarantee Value Fund Value Amount at Risk 2

As at Q4 2010 1,258 13,443 899 1,658 USWithdrawal Benefits 18,653 16,072 2,780 Income Benefits 863 736 131 As at Q3 2010 1,141 12,369 830 1,561 Death Benefits 4,148 4,166 708

23,664 20,974 3,619As at Q2 2010 1,031 11,294 841 1,348

CanadaWithdrawal Benefits - - - Maturity Benefits 5,026 5,886 179 As at Q1 2010 1,169 12,038 979 1,584 Death Benefits 504 - 124

5,530 5,886 303As at Q4 2009 1,115 11,746 908 1,581

JapanWithdrawal Benefits 4,270 3,332 939 Maturity Benefits 12,608 11,049 1,762 Income Benefits - - - Death Benefits 654 320 200

17,532 14,701 2,901

Reinsurance & Other 2,716 2,582 445

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 Canadian GAAP 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.

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 contingentand 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(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%.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%.

1,0182,083 4,578

9,164

2,391 (139)1,264 5,4964,371

CTE Level & Description Comparable Market Scenario for North American Markets

Net of Reinsurance & Dynamic Hedging 1

2,391 (67)1,738

3,189

6,5444,873

4,4701,505

1,164

458

(372) 2,787

Policy Liabilities Held 4Guarantee Value Net Amount at Risk 2

9,9512,605 4,559

7,679

Page 34 ACTUARIAL LIABILTIES INFORMATION - VARIABLE ANNUITY PRODUCT GUARANTEES

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

2010 2010 2010 2010 2009Q4 Q3 Q2 Q1 Q4

Change in Deferred Acquisition Costs (DAC)Opening balance 5,049 5,261 5,147 5,329 5,501Amount capitalized 212 157 173 199 205 Amount amortized (309) (269) (256) (255) (257)Currency (125) (100) 197 (126) (120)Ending balance 4,827 5,049 5,261 5,147 5,329

DAC BalancesJohn Hancock Variable Annuities 1,922 2,070 2,213 2,188 2,330 John Hancock Wealth Asset Management 1,288 1,316 1,345 1,276 1,298 Canadian Individual Wealth Management 1,017 992 1,002 1,011 1,009 Hong Kong 202 245 252 243 250 Japan 313 339 359 338 351 Other 85 87 90 91 91 Total DAC 4,827 5,049 5,261 5,147 5,329

Funds Under ManagementJohn Hancock Variable Annuities 55,878 56,657 53,772 54,646 56,793John Hancock Wealth Asset Management 97,032 93,493 86,975 88,248 85,179 Canadian Individual Wealth Management 1 46,113 44,123 41,772 42,732 41,709 Hong Kong 9,428 15,614 14,236 14,043 13,974 Japan 16,977 17,006 16,034 15,475 15,240 Other 21,014 20,059 18,856 19,176 18,441 Total Funds Under Management 246,442 246,952 231,645 234,320 231,336

DAC as a % of Funds Under ManagementJohn Hancock Variable Annuities 3.4% 3.7% 4.1% 4.0% 4.1%John Hancock Wealth Asset Management 1.3% 1.4% 1.5% 1.4% 1.5%Canadian Individual Wealth Management 2.2% 2.2% 2.4% 2.4% 2.4%Hong Kong 2.1% 1.6% 1.8% 1.7% 1.8%Japan 1.8% 2.0% 2.2% 2.2% 2.3%Other 0.4% 0.4% 0.5% 0.5% 0.5%Total DAC as a % of Funds Under Management 2.0% 2.0% 2.3% 2.2% 2.3%

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

DAC balances are classified as other assets on the balance sheet for the mutual fund businesses and are classified as reductions in actuarial liablities for annuities, pensions and other wealth product lines. Recoverability is tested quarterly.

Page 35 ACTUARIAL LIABILITIES INFORMATION - WEALTH MANAGEMENT DAC BALANCES

ACTUARIAL LIABILITIES - EMBEDDED VALUE(Canadian $ in millions unless otherwise stated, unaudited)

Overview

Embedded Value is a measure of the shareholder value embedded in the current balance sheet of the Company, excluding any value associated with future new business. The change in embedded value between reporting periods is used by Manulife Financial's management as a measure of the value created by the year's operations. Embedded value is a non-GAAP measure.

As at December 31, 2010, Manulife Financial's embedded value was $39.3 billion, a decrease of $1.5 billion over December 31, 2009. Normal operational growth added $0.2 billion. Non-operational items reduced embedded value $1.6 billion due to the impact of lower discount rates from overall lower government yields, currency from the US dollar and Hong Kong dollar depreciation and the impact of capital movements from shareholder dividends, partially offset by other capital movement.

Change in Embedded Value in 2010The table below shows the change in the embedded value during 2010, and the corresponding changes in 2009.

per share per shareEmbedded Value as at January 1 40,790 23.20 46,183 28.68

Interest on Embedded Value 3,168 3,038 New Business 1,841 2,453 Experience Variances and Changes in Actuarial Assumptions (4,851) 1,022 Embedded Value before Discount Rate / Currency and Capital Movements 40,948 23.29 52,696 32.73

Discount Rate Changes 1,766 (6,333) Surplus Yield Changes (1,812) (879) Currency (935) (5,910) Shareholder Dividends (927) (1,264) Other Capital Movements* 263 2,480

Embedded Value as at December 31 39,303 22.11 40,790 23.20* Includes share issues, option exercises, and adjustments to opening retained earnings.

Interest on embedded value of $3,168 represents the unwinding of the discount rate applied to the embedded value.The Company’s new business in 2010 increased the embedded value by $1,841, a 25% decrease from 2009. On an equivalent basis (i.e., identical discount rates, currency), new business embedded value increased by 4%.The experience variances and changes in actuarial assumptions loss of $4,851 is primarily driven by impact of the 2010 basis changes, and 2010 equity market and interest rate movement.The discount rate changes gain of $1,766 is caused by decreases in risk free interest rates, most materially decreases of 0.50% in Canada and the U.S. and 0.25% in Hong Kong and Japan.The loss of $1,812 from surplus yields results from a reduction in the market return used to project surplus assets of 1.75% in Canada, the U.S. and Hong Kong, and 1.10% in Japan.The currency loss of $935 is caused by the depreciation of the value of the non-Canadian in-force businesses when reported in Canadian dollars as the Canadian dollar appreciated in 2010 against most major currenciesparticularly the U.S. dollar and Hong Kong dollar. This is partially offset by appreciation in the value of Japanese in-force business as the Canadian dollar depreciated against the Japanese yen.

The impact of discount rate and currency changes are assumed to take place at the end of the year. Unless otherwise noted, all prior movement items reflect the year-start discount rate and exchange rate.

For the year ended December 31

20092010

Page 36 ACTUARIAL LIABILITIES - EMBEDDED VALUE

ACTUARIAL LIABILITIES - EMBEDDED VALUE (CONT'D)(Unaudited)

Principal Assumptions

The principal long-term economic assumptions used in the calculations are as follows:

Canada U.S. Hong Kong Japan

MCCSR Ratio 150% 150% 150% 150%

Discount Rate 7.25% 7.50% 8.25% 6.25%

Risk Premium 4.0% 4.0% 5.0% 5.0%

Equity Return 7.25% 7.50% 8.25% 6.25%

Jurisdictional Income Tax Rate 26% 35% 16.5% 36%

Exchange Rate n/a 0.9946 0.1280 0.0123

Discount rates have been derived from Government Bond rates in the respective countries, plus risk premiums varying from 4% - 5%. Higher discount rates are used in some Asian businesses. The weighted average discount rate is 7.6%.For Hong Kong, individual insurance products are taxed on a premium tax basis due to a Company election under Hong Kong tax regulations.The embedded value has been calculated using the financial position of the Company as at September 30, 2010 projected to December 31, 2010, allowing for the actual change in key elements such as the market value of securities, the contribution of new business and policy experience. As such, management believes that the value is a fair representation of the Company’s embedded value as at December 31, 2010.The future stream of profits and cost of capital has been calculated on a Canadian GAAP basis with MCCSR capital in all territories. Surplus assets have been fair valued and projected forward at a market return of 4.50% for U.S. and Canadian dollar denominated assets, and 2.00% for Yen denominated assets.The Company’s target capital structure of 75% equity / 25% debt has been utilized.All actuarial assumptions are consistent with best estimate assumptions used in the valuation of policy liabilities at December 31, 2010 on a Canadian GAAP basis. Future mortality improvements are recognized in best estimate assumptions on individual insurance business in North America.

Changes in Assumptions from Year-End 2009

Principal assumptions are unchanged from year-end 2009, except as disclosed below:

Discount Rates 2010 2009 Interest on Surplus 2010 2009Canada 7.25% 7.75% Canada 4.50% 6.25%U.S. 7.50% 8.00% U.S. 4.50% 6.25%Hong Kong 8.25% 8.50% Hong Kong 4.50% 6.25%Japan 6.25% 6.50% Japan 2.00% 3.10%

Exchange Rates 2010 2009U.S. Dollar 0.9946 1.0466Hong Kong Dollar 0.1280 0.1350Japanese Yen 0.0123 0.0112


ACTUARIAL LIABILITIES - EMBEDDED VALUE (CONT'D)(Canadian $ in millions unless otherwise stated, unaudited)

Sensitivities

In-force EV Sensitivities

100 bps increase in the discount rate (3,385) 100 bps decrease in the discount rate 4,178 Increase in the MCCSR ratio from 150% to 175% (1,239)

New Business EV Sensitivities

100 bps increase in the discount rate (250) 100 bps decrease in the discount rate 307

EV Reconciliation to Financial Statements

Embedded value does not have a standard definition. Manulife Financial's embedded value is defined as adjusted Canadian GAAP shareholder equity plus the value of in-force business as determined below.

2010 2009Shareholder Equity on Balance Sheet (excludes preferred shares) 25,291 27,405 Fair Value Adjustments (1,142) (1,143) Goodwill & (post-tax) Intangibles (7,182) (8,425) Value of Shareholder Net Equity 16,967 17,837

Pre-Tax Value of Expected Profit Embedded in CGAAP Policy Liabilities (Reported Actuarial Provision for Adverse Deviation - PfAD)* 45,035 42,088 Adjustments: Value of additional policy margins not captured in reported actuarial PfAD 4,900 5,067 Taxes (13,156) (12,611) Converting discount rates from valuation rates to higher cost of capital adjusted discount rates (7,732) (6,748) Gross Value of In-Force Business 29,047 27,796

Cost of Locked-in Capital (6,711) (4,843) Value of In-Force Business** 22,336 22,953

Embedded Value 39,303 40,790

* The reported actuarial PfAD includes non-capitalized segregated fund margins. ** The 2010 value of in-force Variable Annuity business is $2,755


CapitalInformation

REGULATORY CAPITAL(Canadian $ in millions, unaudited)

2010 2010 2010 2010 2009Q4 Q3 Q2 Q1 Q4

The Manufacturers Life Insurance Company's MCCSR

Capital available:Tier 1 capital

Common shares 21,379 21,227 19,207 19,207 19,207 Retained earnings and CTA 7,796 7,850 8,678 9,763 9,430 Qualifying non-controlling interests 334 363 339 326 283 Innovative instruments 2,000 2,000 2,000 2,000 2,000 Other 2,669 2,665 2,565 2,657 2,652 Gross Tier 1 capital 34,178 34,105 32,789 33,953 33,572 Deductions:Goodwill & intangibles in excess of limit (5,941) (6,056) (7,206) (6,973) (7,122) Other (4,395) (4,835) (4,296) (4,022) (3,982)

Adjustments (812) (950) (812) (767) (852) Net Tier 1 capital - A 23,030 22,264 20,475 22,191 21,616

Tier 2 Capital Tier 2A 509 485 489 549 526 Tier 2B allowed 1,983 2,099 2,007 2,084 2,064 Tier 2C 4,633 4,580 4,198 4,148 4,201

Adjustments (1,681) (1,836) (1,669) (1,579) (1,623) Total Tier 2 capital allowed 5,444 5,328 5,025 5,202 5,168

Total Tier 1 and Tier 2 capital 28,474 27,592 25,500 27,393 26,784 Less Adjustments - - - - - Total Capital Available - B 28,474 27,592 25,500 27,393 26,784

Capital Required:Asset default & market risk 6,611 6,790 6,695 6,489 6,761 Insurance risks 2,919 2,933 2,846 2,629 2,604 Interest rate risks 1,904 2,057 1,985 1,844 1,802

Total Capital Required - C 11,434 11,780 11,526 10,962 11,167

MCCSR Ratio: Total (B/C) x 100 249% 234% 221% 250% 240%

Page 39 CAPITAL INFORMATION - REGULATORY CAPITAL

GLOSSARY OF TERMS AND DEFINITIONS

#

Accumulated Other Comprehensive Income (AOCI): A separate component of shareholders’ equity which includes net unrealized gains and losses on available-for-sale securities, net unrealized gains and losses on derivative instruments designated within an effective cash flow hedge, and unrealized foreign currency translation gains and losses. These items have been recognized in comprehensive income, but excluded from net income.

Return on Common Shareholders' Equity: Net income available to common shareholders divided by average common shareholders' equity excluding accumulated other comprehensive income (loss) on available-for-sale securities and on cash flow hedges.

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 period of time or until death. · Fixed Annuity: The return to the contract holder is specified in the contract, i.e., the Company bears the investment risk.· Book Value Annuity: An annuity which provides a declared rate of interest for a specified contract while offering a guarantee of principal amount.· 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 earnings of the underlying investments. In some instances, guarantees are provided.

Available-For-Sale (AFS) Financial Assets: Non-derivative financial assets that are designated as available-for-sale or that are not classified as loans and receivables, held-to-maturity investments, or held for trading.

Book Value per Share: Ratio obtained by dividing common shareholders' equity by the number of common shares outstanding at the end of the period.

Cash Flow Hedges: A hedge of the exposure to variability in cash flows associated with a recognized asset or liability, a forecasted transaction or a foreign currency risk in an unrecognized firm commitment that is attributable to a particular risk and could affect reported net income.

Consumer Notes: Investment products sold throughSignature Notes program via broker-dealer network to retail customers in the form of publicly traded fixed and/or floating rate securities.

Corporate Owned Life Insurance (COLI): Life insurance purchased by organizations, predominantly to finance non-qualified executive deferred compensation plans.

Deferred Acquisition Costs (DAC): Costs directly attributable to the acquisition of new business, principally agents’ compensation, which are capitalized on the Company’s balance sheet and amortized into income over a specified period.

Fair Value: Amount of consideration that would be agreed upon in an arm’s length transaction between knowledgeable, willing parties who are under no compulsion to act.

Funds Under Management (FUM): Include general fund assets, segregated fund assets, institutional advisory accounts, mutual fund assets and other funds.· General Fund Assets: Total invested assets as presented on the Company’s balance sheet. · Segregated Fund Assets: Net assets held by policyholders in segregated funds related to insurance, annuity and pension products. These funds are maintained separately from the Company’s general account and the policyholder / contract holder bears the investment risk of the underlying fund. · Mutual Fund Assets: Net assets held in proprietary mutual funds.· Institutional Advisory Accounts: Accounts either separate or commingled of Institutional Clients for which MFC Global Investment Management provides investment management services and that do not meet the definition of Segregated Funds.· Other Funds: Funds managed or administered by the Company other than those associated with a contract issued by the Company.

Impaired Assets: Mortgages, bonds and other investment securities in default where there is no longer reasonable assurance of collection.

Institutional Clients: Organizations that are non-Manulife-affiliated for which MFC Global Investment Management provides investment management services. Such clients include pensions, endowments and other external investment managers and wealth management organizations.

Leveraged Leases: In these leases the financing provided by the long-term creditor is nonrecourse as to the general credit of the lessor. The amount of the financing is sufficient to provide the lessor with substantial "leverage" in the transaction. Here, lessor's net investment declines during the early years once the investment has been completed and rises during the later years of the lease before its final elimination. Such decreases and increases in the net investment balance may occur more than once.

Long-Term Care (LTC): Insurance coverage available on an individual or group basis to provide reimbursement for medical and other services to the chronically ill, disabled or mentally challenged.

Minimum Continuing Capital and Surplus Requirements (MCCSR): The ratio of the available capital of a life insurance company to its required capital, each as calculated under the Office of the Superintendent of Financial Institutions' (OSFI) published guidelines.

Premiums and Deposits: Include general fund premiums, segregated fund deposits, institutional advisory account deposits, mutual fund deposits, other fund deposits and ASO premium equivalents.· General Fund Premiums: Premiums earned on insurance and fixed annuity contracts as reflected in the Company’s statement of operations. · Segregated Fund Deposits: Deposits related to insurance, annuity and pension products which are invested in segregated funds.· Mutual Fund Deposits: Deposits received in proprietary mutual funds.· Institutional Advisory Account Deposits: Deposits received in the Institutional Advisory Accounts.· Other Fund Deposits: Deposits received from customers related to non-proprietary funds for Manulife-branded products.· ASO Premium Equivalents: ASO (“administrative services only") contracts are group insurance 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 equivalents are a measure of the business volume calculated as expected claims plus administrative fees charged.

Sales: Sales are measured according to product type.· 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. · 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 increases.· Individual Wealth Management: All new deposits are reported as sales. This includes individual annuities, both fixed and variable; segregated fund products; mutual funds; college savings 529 plans; and authorized bank loans and mortgages.· Group Pensions: New regular premiums 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 of or a new product to an existing client as well as increases in the contribution rate for an existing plan.

Total Capital: Capital funding that is both unsecured and permanent in nature. Comprises total equity (excluding AOCI on cash flow hedges), non-controlling interest in subsidiaries, liabilities for preferred shares and qualifying capital instruments.

Universal Life Insurance: A form of permanent life insurance with flexible premiums. The customermay vary the premium payment and death benefit within certain restrictions. The contract is credited with a rate of interest based on the return of a portfolio of assets held by the 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).

GLOSSARY OF TERMS AND DEFINITIONSPage 40

GENERAL INFORMATION

MANULIFE FINANCIAL CORPORATION HEAD OFFICE INVESTOR INFORMATION 200 Bloor Street East Anthony G. Ostler, SVP, Investor RelationsToronto, Ontario (416) 926-5471Canada M4W 1E5 E-mail: [email protected] Site: www.manulife.com

TRANSFER AGENT INDUSTRY RATING INFORMATIONCanadaCIBC Mellon Trust Company1-800-783-9495www.cibcmellon.com/investor

United StatesMellon Investor Services The Manufacturers Life Insurance Company1-800-249-7702 Purpose Rating agency Ratingwww.melloninvestor.com Claims paying/ Standard & Poor's AA-

Financial strength Moody's A1FitchRatings AA-

COMMON STOCK DBRS IC-1Common Stock of Manulife Financial is traded on: A.M. Best A+Stock Exchange SymbolToronto MFC John Hancock Life Insurance Company (U.S.A)New York MFC Purpose Rating agency RatingHong Kong 945 Claims paying/ Standard & Poor's AA-Philippines MFC Financial strength Moody's A1

FitchRatings AA-DBRS not ratedA.M. Best A+

The following credit rating agencies each assign claims paying and financial strength ratings to our main operating subsidiaries, The Manufacturers Life Insurance Company and John Hancock Life Insurance Company (U.S.A.), thereby recognizing these companies as having strong credit ratings in the insurance industry.

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.

GENERAL INFORMATIONPage 41

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