v3.25.4
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2025
Commitments and Contingencies [Abstract]  
Commitments and Contingencies Commitments and Contingencies Legal Proceedings
The Company is regularly involved in legal actions, both as a defendant and as a plaintiff. The legal actions where the Company
is a party ordinarily relate to its activities as a provider of insurance protection or wealth management products, reinsurance, or in
its capacity as an investment adviser, employer, or taxpayer. Other life insurers and asset managers, operating in the
jurisdictions in which the Company does business, have been subject to a wide variety of other types of actions, some of which
resulted in substantial judgments or settlements against the defendants; it is possible that the Company may become involved in
similar actions in the future. In addition, government and regulatory bodies in Canada, the United States, Asia and other
jurisdictions where the Company conducts business regularly make inquiries and, from time to time, require the production of
information or conduct examinations concerning the Company’s compliance with, among other things, insurance laws, securities
laws, and laws governing the activities of broker-dealers.
In September 2023, a lawsuit was initiated against the Company in the U.S. District Court of the Southern District of New York as
a putative class action on behalf of all current and former owners of universal life insurance policies issued by the Company that
state that “cost of insurance rates will be based on future expectations that include taxes.” The Plaintiff’s theory is that the
Company impermissibly failed to decrease the cost of insurance rates charged to these policy owners after the implementation of
the Tax Cuts and Jobs Act of 2018. It is too early in the litigation to offer any reliable opinion about the scope of the class policies
that may be at issue or the likely outcome.
Investment Commitments
In the normal course of business, various investment commitments are outstanding which are not reflected in the Consolidated
Financial Statements. There were $16,879 (2024 – $15,367) of outstanding investment commitments as at December 31, 2025,
of which $1,619 (2024 – $1,143) mature in 30 days, $3,334 (2024 – $3,217) mature in 31 to 365 days and $11,926 (2024 –
$11,007) mature after one year.
Letters of Credit
In the normal course of business, third-party relationship banks issue letters of credit on the Company’s behalf. The Company’s
businesses utilize letters of credit for which third parties are the beneficiaries, as well as for affiliate reinsurance transactions
between its subsidiaries. As at December 31, 2025, letters of credit for which third parties are beneficiaries, in the amount of
$251 (2024 – $271), were outstanding.
Guarantees
(I)Guarantee regarding Manulife Finance (Delaware), L.P. (“MFLP”)
MFC has guaranteed the payment of amounts on the $650 subordinated debentures due on December 15, 2041 issued by
MFLP, a wholly owned unconsolidated financing entity.
The following tables present certain condensed consolidated financial information for MFC and MFLP.
Condensed Consolidated Statements of Income Information
For the year ended December 31, 2025
MFC
(Guarantor)
Subsidiaries
on a combined
basis
Consolidation 
adjustments
Total
consolidated
amounts
MFLP
Insurance service result
$-
$4,526
$-
$4,526
$-
Investment result
757
3,206
(1,554)
2,409
50
Other revenue
24
8,116
(11)
8,129
(12)
Net income (loss) attributed to shareholders and other equity holders
5,572
5,172
(5,172)
5,572
(1)
For the year ended December 31, 2024
MFC
(Guarantor)
Subsidiaries
on a combined
basis
Consolidation 
adjustments
Total
consolidated
amounts
MFLP
Insurance service result
$-
$4,001
$-
$4,001
$-
Investment result
871
4,329
(1,679)
3,521
52
Other revenue
(34)
7,620
2
7,588
20
Net income (loss) attributed to shareholders and other equity holders
5,385
4,910
(4,910)
5,385
26
Condensed Consolidated Statements of Financial Position
As at December 31, 2025
MFC
(Guarantor)
Subsidiaries
on a combined
basis
Consolidation 
adjustments
Total
consolidated
amounts
MFLP
Invested assets
$1,399
$458,529
$-
$459,928
$20
Insurance contract assets
-
194
-
194
-
Reinsurance contract held assets
-
60,881
-
60,881
-
Total other assets
63,341
47,566
(67,731)
43,176
965
Segregated funds net assets
-
461,254
-
461,254
-
Insurance contract liabilities, excluding those for account of segregated
fund holders
-
411,532
-
411,532
-
Reinsurance contract held liabilities
-
3,273
-
3,273
-
Investment contract liabilities
-
14,137
-
14,137
-
Total other liabilities
14,618
68,845
(714)
82,749
701
Insurance contract liabilities for account of segregated fund holders
-
129,006
-
129,006
-
Investment contract liabilities for account of segregated fund holders
-
332,248
-
332,248
-
As at December 31, 2024
MFC
(Guarantor)
Subsidiaries
on a combined
basis
Consolidation 
adjustments
Total
consolidated
amounts
MFLP
Invested assets
$126
$442,371
$-
$442,497
$16
Insurance contract assets
-
102
-
102
-
Reinsurance contract held assets
-
59,015
-
59,015
-
Total other assets
65,898
46,450
(71,132)
41,216
995
Segregated funds net assets
-
435,988
-
435,988
-
Insurance contract liabilities, excluding those for account of segregated
fund holders
-
396,401
-
396,401
-
Reinsurance contract held liabilities
-
2,669
-
2,669
-
Investment contract liabilities
-
13,498
-
13,498
-
Total other liabilities
15,052
63,825
(1,575)
77,302
726
Insurance contract liabilities for account of segregated fund holders
-
126,545
-
126,545
-
Investment contract liabilities for account of segregated fund holders
-
309,443
-
309,443
-
(II)Guarantees regarding John Hancock Life Insurance Company (U.S.A.) (“JHUSA”)
Details of guarantees regarding certain securities issued or to be issued by JHUSA are outlined in note 23.
Pledged Assets
In the normal course of business, the Company pledges its assets in respect of liabilities incurred, strictly for providing collateral
to the counterparty. In the event of the Company’s default, the counterparty is entitled to apply the collateral to settle the liability.
Where pledged assets have been delivered to a counterparty, the pledged assets are returned to the Company if the underlying
transaction is terminated or, in the case of derivatives and Manulife Bank securitized mortgages, are partially returned if there is
a decrease in the net exposure due to market value changes.
The amounts pledged are as follows.
2025
2024
As at December 31,
Debt securities
Other
Debt securities
Other
In respect of:
Derivatives
$14,360
$129
$14,517
$25
Secured borrowings(1)
786
331
-
2,216
Regulatory requirements
1,771
93
303
91
Repurchase agreements
193
-
658
-
Mortgages on ALDA properties
-
351
-
284
Manulife Bank securitized mortgages(2)
-
8,193
-
7,603
Non-registered retirement plans in trust
-
276
-
286
Other
-
262
-
289
Total
$17,110
$9,635
$15,478
$10,794
(1)During the year, the Company pledged debt securities of $786 (2024 – $nil) and mortgage loans of $331 (2024 – $2,216) to FHLBI totalling $1,117 (2024 –
$2,216). Of this amount, $788 (2024 – $1,098) is required collateral for the US$500 (2024 – US$500) outstanding borrowing to JHUSA under the FHLBI facility;
and $329 (2024 – $1,118) is excess collateral that can be called back by JHUSA at any time.
(2)Pledged assets under the Manulife Bank mortgage securitization program totaled $8,193 (2024 – $7,603), comprising CMB securitization of $2,984 (2024 –
$3,274), HELOC securitization of $3,673 (2024 – $3,163), additional encumbrances of mortgages and cash required by the securitization program's operations of
$1,162 (2024 – $1,166Participating Business
In some markets where the Company maintains participating accounts, there are regulatory restrictions on the amount of profit
that can be transferred to shareholders. Where applicable, these restrictions generally take the form of a fixed percentage of
policyholder dividends. For participating businesses operating as separate “closed blocks”, transfers are governed by the terms
of MLI’s and John Hancock Mutual Life Insurance Company’s plans of demutualization.
Fixed Surplus Notes
A third party contractually provides standby financing arrangements for the Company’s U.S. operations under which, in certain
circumstances, funds may be provided in exchange for the issuance of fixed surplus notes. As at December 31, 2025 and 2024,
the Company had no fixed surplus notes outstanding.