8-K 1 jhfs.txt JOHN HANCOCK FINANCIAL SERVICES, INC. SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report: April 30, 2003 (Date of Earliest Event Reported) JOHN HANCOCK FINANCIAL SERVICES, INC. (Exact name of registrant as specified in charter) Commission File Number: 1-15607 DELAWARE 04-3483032 (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) John Hancock Place Boston, Massachusetts 02117 (Address of principal executive offices) (617) 572-6000 (Registrant's telephone number, including area code) ITEM 5. OTHER EVENTS AND REGULATION FD DISCLOSURE Beginning in 2003, John Hancock Financial Services, Inc. ("John Hancock Financial") will report the operations of The Maritime Life Assurance Company ("Maritime Life"), the Canadian insurance operations of John Hancock Financial, as a separate operating segment. In its financial supplement expected to be made available to investors following the release of First Quarter 2003 earnings on May 1, 2003, John Hancock Financial will provide additional data on Maritime Life segment results, including operating income statement data for line of business groupings including Maritime Life's Retail Protection, Asset Gathering and Group Life and Health operations. Operating income is a measure comprised of elements of GAAP income that are available for shareholders; this measure is used by John Hancock Financial to evaluate financial performance of Maritime Life on a segment basis, and as a basis for management incentives. It differs from GAAP because it excludes net realized investment gains and losses and certain other items management believes are not indicative of ongoing operating trends. The attached schedule (Exhibit 99) presents historic data on segment operating income and net income for the periods of 2002 and 2001 for Maritime Life. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS Exhibit No. Item ----------- ---- 99 Maritime Life Historic Operating Performance by Segment, dated April 29, 2003. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized. JOHN HANCOCK FINANCIAL SERVICES, INC. Date: April 30, 2003 By: /s/ Thomas E. Moloney ---------------------------------- Thomas E. Moloney Senior Executive Vice President and Chief Financial Officer Exhibit 99 Maritime Life Historic Operating Performance by Segment, dated April 29, 2003.
Maritime Life Historic Operating Performance by Segment (Dollars in Millions) 2002 2001 ------------------------------------------------------------------- -------------- Q4 Q3 Q2 Q1 Total Total ------------------------------------------------------------------------------------------------------------------- -------------- Total Maritime Life REVENUES Premiums 174.0 170.9 171.7 164.7 681.3 618.4 U/L and investment product fees 52.9 49.6 47.6 43.2 193.3 160.9 Net investment income 78.7 78.9 79.8 75.6 313.0 282.1 Realized investment gains - - - - - - Inv mgt and other fees & commisions 6.6 5.4 4.0 5.6 21.6 19.6 Other income 3.1 2.5 1.5 6.4 13.5 (4.5) --------------------------------------------------------------- -------------- Total revenues 315.3 307.3 304.6 295.5 1,222.7 1,076.5 --------------------------------------------------------------- -------------- BENEFITS & EXPENSES Policyholder benefits 232.7 211.4 197.9 198.3 840.3 709.8 Operating expense 52.4 50.8 50.6 48.4 202.2 178.9 Commissions 27.8 27.1 31.0 33.0 118.9 125.2 Deferral of policy acquisition costs (14.6) (34.1) (14.0) (19.2) (81.9) (59.9) --------------------------------------------------------------- -------------- Other operating costs and expenses 65.6 43.8 67.6 62.2 239.2 244.2 Amortization of deferred policy costs (11.4) 11.0 9.6 8.3 17.5 43.9 Policyholder dividends 5.3 3.6 4.7 2.5 16.1 11.8 --------------------------------------------------------------- -------------- Total benefits and expenses 292.2 269.8 279.8 271.3 1,113.1 1,009.7 --------------------------------------------------------------- -------------- SEGMENT PRE-TAX OPERATING INCOME 23.1 37.5 24.8 24.2 109.6 66.8 Tax on segment operating income 10.6 13.0 8.6 8.4 40.6 18.9 Effective tax rate (%) 45.9% 34.7% 34.7% 34.7% 37.0% 28.3% --------------------------------------------------------------- -------------- SEGMENT NET OPERATING INCOME 12.5 24.5 16.2 15.8 69.0 47.9 --------------------------------------------------------------- -------------- --------------------------------------------------------------- -------------- SEGMENT NET INCOME 16.2 23.3 2.8 17.6 59.9 42.7 --------------------------------------------------------------- --------------
Maritime Life Historic Operating Performance by Segment (Dollars in Millions) 2002 2001 ------------------------------------------------------------------- -------------- Q4 Q3 Q2 Q1 Total Total ------------------------------------------------------------------------------------------------------------------- -------------- Maritime Life (Retail Protection) REVENUES Premiums 27.6 24.5 25.8 29.7 107.6 100.1 U/L and investment product fees 26.7 24.3 19.4 16.4 86.8 75.6 Net investment income 42.4 35.6 38.4 37.4 153.8 124.7 Realized investment gains - - - - - - Inv mgt and other fees & commisions - - - - - - Other income 0.1 0.2 0.1 3.0 3.4 (16.7) --------------------------------------------------------------- -------------- Total revenues 96.8 84.6 83.7 86.5 351.6 283.7 --------------------------------------------------------------- -------------- BENEFITS & EXPENSES Policyholder benefits 74.6 42.5 41.4 42.8 201.3 127.5 Operating expense 8.4 12.3 11.5 13.5 45.7 34.9 Commissions 17.3 16.4 18.3 18.6 70.6 70.4 Deferral of policy acquisition costs (9.6) (11.5) (10.0) (10.6) (41.7) (29.5) --------------------------------------------------------------- -------------- Other operating costs and expenses 16.1 17.2 19.8 21.5 74.6 75.8 Amortization of deferred policy costs (10.8) 4.8 5.2 4.7 3.9 11.0 Policyholder dividends 5.2 3.7 4.7 2.5 16.1 11.8 --------------------------------------------------------------- -------------- Total benefits and expenses 85.1 68.2 71.1 71.5 295.9 226.1 --------------------------------------------------------------- -------------- SEGMENT PRE-TAX OPERATING INCOME 11.7 16.4 12.6 15.0 55.7 57.6 Tax on segment operating income 5.2 5.1 4.8 5.2 20.3 17.6 Effective tax rate (%) 44.4% 31.1% 38.1% 34.7% 36.4% 30.6% --------------------------------------------------------------- -------------- SEGMENT NET OPERATING INCOME 6.5 11.3 7.8 9.8 35.4 40.0 --------------------------------------------------------------- -------------- --------------------------------------------------------------- -------------- SEGMENT NET INCOME 8.7 8.4 0.6 11.0 28.7 39.7 --------------------------------------------------------------- --------------
Maritime Life Historic Operating Performance by Segment (Dollars in Millions) 2002 2001 ------------------------------------------------------------------- -------------- Q4 Q3 Q2 Q1 Total Total ------------------------------------------------------------------------------------------------------------------- -------------- Maritime Life (Asset Gathering) REVENUES Premiums 6.6 6.1 5.9 3.4 22.0 14.9 U/L and investment product fees 26.2 25.3 28.2 26.8 106.5 85.3 Net investment income 18.2 27.0 23.6 20.3 89.1 82.1 Realized investment gains - - - - - - Inv mgt and other fees & commisions - - - - - - Other income (0.1) (1.3) 0.7 0.8 0.1 4.5 --------------------------------------------------------------- -------------- Total revenues 50.9 57.1 58.4 51.3 217.7 186.8 --------------------------------------------------------------- -------------- BENEFITS & EXPENSES Policyholder benefits 32.3 41.1 33.4 30.8 137.6 106.1 Operating expense 12.6 10.3 11.2 8.8 42.9 29.4 Commissions 7.1 7.6 9.1 11.6 35.4 38.4 Deferral of policy acquisition costs (5.0) (22.7) (4.0) (8.5) (40.2) (30.4) --------------------------------------------------------------- -------------- Other operating costs and expenses 14.7 (4.8) 16.3 11.9 38.1 37.4 Amortization of deferred policy costs (0.6) 6.2 4.4 3.6 13.6 32.9 Policyholder dividends - - - - - - --------------------------------------------------------------- -------------- Total benefits and expenses 46.4 42.5 54.1 46.3 189.3 176.4 --------------------------------------------------------------- -------------- SEGMENT PRE-TAX OPERATING INCOME 4.5 14.6 4.3 5.0 28.4 10.4 Tax on segment operating income 2.3 5.6 1.4 1.8 11.1 2.9 Effective tax rate (%) 51.1% 38.4% 32.6% 36.0% 39.1% 27.9% --------------------------------------------------------------- -------------- SEGMENT NET OPERATING INCOME 2.2 9.0 2.9 3.2 17.3 7.5 --------------------------------------------------------------- -------------- --------------------------------------------------------------- -------------- SEGMENT NET INCOME 2.8 11.0 0.4 3.8 18.0 6.9 --------------------------------------------------------------- --------------
Maritime Life Historic Operating Performance by Segment (Dollars in Millions) 2002 2001 ------------------------------------------------------------------- -------------- Q4 Q3 Q2 Q1 Total Total ------------------------------------------------------------------------------------------------------------------- -------------- Maritime Life (Group Life & Health) REVENUES Premiums 139.6 140.4 140.0 131.6 551.6 503.4 U/L and investment product fees - - - - - - Net investment income 17.7 17.0 17.7 17.7 70.1 74.2 Realized investment gains - - - - - - Inv mgt and other fees & commisions 6.6 5.4 4.0 5.6 21.6 19.6 Other income 0.4 0.2 0.1 0.2 0.9 2.1 --------------------------------------------------------------- -------------- Total revenues 164.3 163.0 161.8 155.1 644.2 599.3 --------------------------------------------------------------- -------------- BENEFITS & EXPENSES Policyholder benefits 125.8 127.9 122.9 124.8 501.4 475.1 Operating expense 25.8 24.2 24.0 22.2 96.2 79.0 Commissions 3.4 3.0 3.6 2.9 12.9 16.4 Deferral of policy acquisition costs - - - - - - --------------------------------------------------------------- -------------- Other operating costs and expenses 29.2 27.2 27.6 25.1 109.1 95.4 Amortization of deferred policy costs - - - - - - Policyholder dividends - - - - - - --------------------------------------------------------------- -------------- Total benefits and expenses 155.0 155.1 150.5 149.9 610.5 570.5 --------------------------------------------------------------- -------------- SEGMENT PRE-TAX OPERATING INCOME 9.3 7.9 11.3 5.2 33.7 28.8 Tax on segment operating income 4.2 2.4 4.1 1.7 12.4 8.7 Effective tax rate (%) 45.2% 30.4% 36.3% 32.7% 36.8% 30.2% --------------------------------------------------------------- -------------- SEGMENT NET OPERATING INCOME 5.1 5.5 7.2 3.5 21.3 20.1 --------------------------------------------------------------- -------------- --------------------------------------------------------------- -------------- SEGMENT NET INCOME 5.9 5.2 4.0 3.4 18.5 17.7 --------------------------------------------------------------- --------------
Maritime Life Historic Operating Performance by Segment (Dollars in Millions) 2002 2001 ------------------------------------------------------------------- -------------- Q4 Q3 Q2 Q1 Total Total ------------------------------------------------------------------------------------------------------------------- -------------- Maritime Life (Corporate & Other) REVENUES Premiums 0.2 (0.1) - - 0.1 - U/L and investment product fees - - - - - - Net investment income 0.4 (0.7) 0.1 0.2 - 1.1 Realized investment gains - - - - - - Inv mgt and other fees & commisions - - - - - - Other income 2.7 3.4 0.6 2.4 9.1 5.6 --------------------------------------------------------------- -------------- Total revenues 3.3 2.6 0.7 2.6 9.2 6.7 --------------------------------------------------------------- -------------- BENEFITS & EXPENSES Policyholder benefits - (0.1) 0.2 (0.1) - 1.1 Operating expense 5.6 4.0 3.9 3.9 17.4 35.6 Commissions - 0.1 - (0.1) - - Deferral of policy acquisition costs - 0.1 - (0.1) - - --------------------------------------------------------------- -------------- Other operating costs and expenses 5.6 4.2 3.9 3.7 17.4 35.6 Amortization of deferred policy costs - - - - - - Policyholder dividends 0.1 (0.1) - - - - --------------------------------------------------------------- -------------- Total benefits and expenses 5.7 4.0 4.1 3.6 17.4 36.7 --------------------------------------------------------------- -------------- SEGMENT PRE-TAX OPERATING INCOME (2.4) (1.4) (3.4) (1.0) (8.2) (30.0) Tax on segment operating income (1.1) (0.1) (1.7) (0.3) (3.2) (10.3) Effective tax rate (%) 45.8% 7.1% 50.0% 30.0% 39.0% 34.3% --------------------------------------------------------------- -------------- SEGMENT NET OPERATING INCOME (1.3) (1.3) (1.7) (0.7) (5.0) (19.7) --------------------------------------------------------------- -------------- --------------------------------------------------------------- -------------- SEGMENT NET INCOME (1.2) (1.3) (2.2) (0.6) (5.3) (21.6) --------------------------------------------------------------- --------------