Massachusetts Regulators OK ManulifeHancock Deal

Manulife is a strong company, the regulators note, and John Hancock policyholders who received Hancock shares when Hancock demutualized voted 88% of those shares in favor of the deal.

The regulators also cite Manulifes assurances that it wants to maintain John Hancocks current level of community involvement.

The regulators acknowledge that some shareholders are participating in suits that accuse John Hancock of awarding excessive executive compensation and improper stock grants.

But, at this time, the claims are unproven allegations, and "we find such allegations insufficient to render adverse conclusions as to the competence, experience or integrity" of the directors who would control the Boston-based insurers after the merger, the regulators write.

The regulators own independent advisors found no evidence of problems that would present an obstacle to approval of the transaction, the regulators conclude.

Reproduced from National Underwriter Edition, April 16, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.