-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, BeEiQ6QtC52UGcgPFW+riZ3lCmbccY29MouCPd1Nq977WuO0fwTwL9XyKqGqJnEO OTgPZjoVS4T5GqJpaXtfLQ== 0001171520-04-000138.txt : 20040426 0001171520-04-000138.hdr.sgml : 20040426 20040426165352 ACCESSION NUMBER: 0001171520-04-000138 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040426 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040426 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HANCOCK JOHN LIFE INSURANCE CO CENTRAL INDEX KEY: 0000917406 STANDARD INDUSTRIAL CLASSIFICATION: LIFE INSURANCE [6311] IRS NUMBER: 041414660 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31445 FILM NUMBER: 04754676 BUSINESS ADDRESS: STREET 1: CORPORATE LAW DIVISION T-55 STREET 2: P O BOX 111 CITY: BOSTON STATE: MA ZIP: 02117 BUSINESS PHONE: 6175726000 MAIL ADDRESS: STREET 1: CORPORATE LAW DIVISION T-55 STREET 2: P O BOX 111 CITY: BOSTON STATE: MA ZIP: 02117 FORMER COMPANY: FORMER CONFORMED NAME: HANCOCK JOHN MUTUAL LIFE INSURANCE CO / MA DATE OF NAME CHANGE: 19940111 8-K 1 jhlico.txt JOHN HANCOCK LIFE INSURANCE COMPANY 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 26, 2004 (Date of Earliest Event Reported) JOHN HANCOCK LIFE INSURANCE COMPANY (Exact name of registrant as specified in charter) Commission File Number: 333-45862 MASSACHUSETTS 04-1414660 (State or other jurisdiction (I.R.S. Employer Identification No.) of 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 7. FINANCIAL STATEMENTS AND EXHIBITS The following exhibit is furnished as part of this Form 8-K: (c) Exhibits Exhibit No. Item ----------- ---- 99 John Hancock Financial Services, Inc. Press Release dated April 26, 2004. ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On April 26, 2004, John Hancock Financial Services, Inc. a Delaware corporation, issued a press release, a copy of which is attached hereto as Exhibit 99 and is incorporated herein by reference. John Hancock Life Insurance Company, is a direct, wholly-owned subsidiary of John Hancock Financial Services, Inc. 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 LIFE INSURANCE COMPANY Date: April 26, 2004 By: /s/Thomas E. Moloney ----------------------------------- Thomas E. Moloney Senior Executive Vice President and Chief Financial Officer Exhibit 99 News [LOGO] John Hancock FINANCIAL SERVICES
John Hancock Financial Services Reports $254.5 million of Net Income for the first quarter of 2004, up slightly compared to the first quarter of 2003 o Company also reports a 14% increase in operating income per diluted share; $0.84 for the first quarter of 2004 compared with $0.74 in the prior year quarter ------------------------------------------------------------------------------------------------- Earnings summary % (Table 1) 1st Quarter 2004 1st Quarter 2003 Change ------------------------------------------------------------------------------------------------- Net income $254.5 million $253.2 million 0.5% Net income per share diluted $0.87 $0.88 (1.1%) Consolidated net operating income* $245.4 million $214.1 million 14.6% Consolidated net operating income* per share diluted $0.84 $0.74 13.5% Weighted-average shares outstanding diluted 292.9 million 288.3 million ------------------------------------------------------------------------------------------------- BOSTON (April 26, 2004) - John Hancock Financial Services, Inc. (NYSE: JHF) today reported net income of $254.5 million for the first quarter of 2004, up 0.5% compared to $253.2 million in the prior year quarter. The first quarter of 2003 included a $234 million pre-tax gain from the sale of the John Hancock Tower and related properties in Boston. Excluding the gain from the real estate sale, net income increased very dramatically, reflecting strong growth in operating income and the continued recovery in the credit market. The company also reported strong first quarter operating results of $245.4 million, or $0.84 per diluted share, a 14.6% increase from the $214.1 million or $0.74 per share in the year ago quarter. Solid results in retail operations and an increase in corporate earnings drove earnings growth. First quarter net income of $254.5 million included $27.9 million of net realized investment losses and a $37.0 million gain from a required change in an accounting principle, Statement of Position (SOP) 03-01 - Accounting and Reporting by Insurance Enterprises For Certain Non-Traditional Long Duration Contracts and for Separate Accounts. The year ago quarter included the gain from the sale of home office properties of $234 million. Total impairments of invested assets declined significantly to $81 million in the quarter from $250 million in the year ago quarter. - --------------------------------- *JHF management uses net operating income to evaluate financial performance of its business segments and as one of a number of different bases for management incentives. The company believes the combined presentation and evaluation of consolidated net operating income along with net income under generally accepted accounting principles (GAAP) provides information that may enhance investors' understanding of the company's underlying profitability from operations. Net operating income differs from GAAP net income because it excludes net realized investment and other gains and losses and certain other items that management believes are not indicative of ongoing operating trends. Net operating income is a measure commonly used in the life insurance industry and by securities analysts in the evaluation of company performance. See Table 2 for a reconciliation of net operating income to GAAP net income. 1 "John Hancock once again delivered very strong growth in operating results and a solid balance sheet. The momentum that we bring to the merger with Manulife is noteworthy and we look forward to what lies ahead of us as an even stronger organization on a combined basis," said David F. D'Alessandro, chairman and chief executive officer. "I am extremely proud of what all of the associates at John Hancock have built since going public over four years ago and the value that has been created for our policyholders as of demutualization as well as our shareholders." The 14.6% increase in net operating income in the first quarter was driven by growth in retail businesses and an increase in the Corporate & Other segment. Retail Protection pre-tax operating earnings in the quarter of $121.8 million, were up a solid 5.9% from the year-ago quarter with earnings growth in all product lines. Retail Asset Gathering pre-tax operating results of $57.7 million were down 1.0% due to lower results in the annuity product lines offset somewhat by strong results in the mutual fund line where earnings were up over 40% due to an increase in fee income. Guaranteed and Structured Financial Products (G&SFP) pre-tax operating results declined by 11.5% to $110.5 million due to lower spreads in the quarter. Maritime Life's pre-tax operating income increased by 21.1% from the first quarter of 2003 driven by growth in all business lines. In the Corporate & Other segment pre-tax earnings improved significantly to $2.6 million from a loss of $42.3 million pre-tax in the year ago quarter. The current quarter results benefited from strong results in the equity investment portfolio. In the quarter the company adopted SOP 03-01 which requires the creation of reserves for products with guaranteed benefits. The adoption of the accounting principle impacted both the balance sheet and income statement for the non-traditional life and variable annuity products both in the US and Canada. The aggregate pre-tax impact was an increase of $8 million and $56 million in operating income and net income respectively. Sales momentum and account balances continued to improve across a number of key retail product areas. Total life sales were up 49% from the prior year's first quarter reflecting both strong core life sales, up 34% from the year ago quarter, and strong sales of corporate owned life insurance (COLI). Variable annuity account balances increased 12% from the prior year, to $5.7 billion, and fixed annuity account balances grew 11%, to $11.0 billion. The proposed merger with Manulife Financial Corporation has received all regulatory approvals in the U.S. and in Canada as well as approval from John Hancock shareholders. The transaction is expected to close on April 28, 2004. At closing of the transaction, John Hancock common stockholders will become entitled to receive 1.1853 Manulife common shares for each John Hancock common share. 2 Forward-looking Statements The statements, analyses, and other information contained herein relating to trends in the company's operations and financial results, the markets for the company's products, the future development of the company's business, and the contingencies and uncertainties to which the company may be subject, including those related to the proposed merger with Manulife, as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "will," "should," "may," and other similar expressions, are "forward-looking statements" under the Private Securities Litigation Reform Act of 1995. Such statements are made based upon management's current expectations and beliefs concerning future events and their potential effects on the company. Future events and their effects on the company may not be those anticipated by management. John Hancock's actual results may differ materially from the results anticipated in these forward-looking statements. For a discussion of factors that could cause or contribute to such material differences, investors are directed to the risks and uncertainties discussed in our Form 10-K for the year ended December 31, 2003, and other documents filed by the company with the Securities and Exchange Commission. These risks and uncertainties include, without limitation, the following: changes in general economic conditions; the performance of financial markets and interest rates; customer responsiveness to existing and new products and distribution channels; competitive and business factors; new tax or other legislation; and government regulation. The company specifically disclaims any obligation to update or revise any forward looking information, whether as a result of new information, future developments or otherwise. Contacts Media: Roy Anderson, 617-572-6385; Leslie Uyeda, 617-572-6387 Investors: Jean Peters, 617-572-9282; Alicia Charity, 617-572-0882 Supplemental Financial Information Follows 3 The following table provides additional financial data: Table 2 Consolidated Operating Income Statements March 31, 2004 March 31, 2003 ----------------------------------------- Premiums $1,059.8 $833.7 Universal life and investment-type product fees 269.2 202.4 Net investment income 1,105.4 1,029.3 Net realized investment gains (losses) (1) 2.8 1.5 Investment management revenues/ commissions/other fees 143.2 125.1 Other revenue 74.6 73.2 ----------------------------------------- Total revenues (1) 2,655.0 2,265.2 Benefits to policyholders 1,607.7 1,357.0 Other operating costs and expenses 470.0 393.7 Amortization of deferred policy acquisition costs 119.4 79.9 Dividends to policyholders 121.2 137.8 ----------------------------------------- Total benefits and expenses 2,318.3 1,968.4 Pre-tax operating income 336.7 296.8 Income tax 91.3 82.7 ----------------------------------------- Operating income 245.4 214.1 After-tax adjustments: Net realized investment gains(losses) (1) (27.9) 39.1 Change in accounting principle, net 37.0 -- ----------------------------------------- 9.1 39.1 Net income $254.5 $253.2 ========================================= (1) Excludes $(44.0) million and $61.1 million of pre-tax realized investment gains (losses) treated as an operating income adjustment. 4 Table 3 --------------------------------------------- March 31, 2004 March 31, 2003 --------------------------------------------- Consolidated net operating income return on 14.24% 14.50% equity (excluding FAS 115 market adjustment)* Operating income adjustments 0.53% 2.65% Net income return on equity (excluding FAS 115 market adjustment) 14.77% 17.15% Unrealized (appreciation) depreciation on AFS securities (3.02)% (1.58)% Net income return on shareholders' equity 11.75% 15.57% Shareholders' equity, in millions (excluding FAS 115 market adjustment)* $7,150.4 $6,059.9 Per share $24.22 $20.97 Unrealized appreciation (depreciation) on AFS securities, in millions (net of tax) $1,964.7 $735.4 Per share $6.65 $2.55 Shareholders' equity, in millions $9,115.1 $6,795.3 Per share $30.87 $23.52 End of period shares outstanding, in millions 295.28 288.96 Assets under management, in billions General account $78.6 $70.1 Separate account 23.8 20.6 Third party 43.2 39.7 - ------------------------------------------------------------------------------------------------ Total consolidated $145.6 $130.4 - ------------------------------------------------------------------------------------------------ * FAS 115 requires the adjustment of available for sale securities to fair market value. Without the FAS 115 adjustment, these assets would be reported at book value. John Hancock management believes that presentation of balance sheet information without the FAS 115 adjustment, along with the GAAP basis, provides information that may enhance investors' understanding of the company's financial performance. Many industry analysts prefer to view this data excluding the FAS 115 adjustment. 5 Table 4 Consolidated Balance Sheet ($ millions) March 31, 2004 December 31, 2003 ----------------------------------------------- Assets Investments Fixed maturities: Held-to-Maturity - at amortized costs (fair value: 2004 - $1,457.0; 2003 - $1,523.0) $1,456.7 $1,498.6 Available-for-sale - at fair value (cost: 2004 - $51,154.7; 2003 - $48,896.8) 54,954.1 51,887.0 Trading securities - at fair value (cost: 2004 - $41.6; 2003 - $40.7) 41.6 42.2 Equity securities: Available-for-sale - at fair value (cost: 2004 - $623.9; 2003 - $665.8) 759.8 795.1 Trading securities - at fair value (cost: 2004 - $485.2; 2003 - $435.3) 485.6 448.4 Mortgage loans on real estate 12,836.2 12,936.0 Real estate, net of accumulated depreciation 191.4 195.0 Policy loans 2,112.1 2,117.9 Short-term investments 97.6 121.6 Other invested assets 3,288.3 3,011.3 ---------------------------------------------- Total Investments 76,223.4 73,053.1 Cash and cash equivalents 2,744.5 3,121.6 Accrued investment income 816.9 756.0 Premiums and accounts receivable 328.2 273.6 Deferred policy acquisition costs 4,327.2 4,301.0 Reinsurance recoverable 2,194.4 2,095.5 Other assets 3,904.8 3,983.5 Separate accounts assets 23,793.7 24,121.9 ---------------------------------------------- Total Assets $114,333.1 $111,706.2 ============================================== 6 Table 4 Consolidated Balance Sheet--continued ($ millions) March 31, December 31, 2004 2003 -------------------------------------- Liabilities and Shareholders' Equity Liabilities Future policy benefits $47,556.7 $45,609.6 Policyholders' funds 22,995.7 22,728.1 Consumer Notes 1,825.1 1,550.4 Unearned revenue 438.2 1,140.4 Unpaid claims and claim expense reserves 283.5 346.2 Dividends payable to policyholders 603.0 600.6 Short-term debt 235.8 485.3 Long-term debt 1,416.7 1,410.0 Income taxes 2,169.9 1,813.4 Other liabilities 3,739.3 3,524.2 Separate accounts liabilities 23,793.7 24,121.9 ------------------------------------- Total Liabilities 105,057.6 103,330.1 Minority Interest 160.4 160.4 Shareholders' Equity Common stock, $.01 par value; 2.0 billion shares authorized; 325.3 million and 319.8 million shares issued, respectively 3.3 3.2 Additional paid in capital 5,346.0 5,174.0 Retained earnings 2,573.2 2,318.7 Unrealized appreciation on AFS securities 1,964.7 1,579.1 Foreign currency translation adjustment 59.5 70.4 Additional pension liability (83.3) (84.0) Cash flow hedges 323.0 223.3 Treasury stock, at cost (30.0 million and 30.0 million shares, respectively) (1,071.3) (1,069.0) ------------------------------------- Total Shareholders' Equity 9,115.1 8,215.7 ------------------------------------- Total Liabilities and Shareholders' Equity $114,333.1 $111,706.2 =====================================
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