Manulife Financial and IBM Sign $70 Million Agreement to Support Business Growth

Manulife Expects to Realize Significant Savings and Agreement Expands Relationship With IBM

MARKHAM, ON and TORONTO — Dec 22, 2004 — Manulife Financial, the world’s fourth largest insurance company, and IBM announced today a $70 million Cdn agreement to transfer the management of Maritime Life’s technology infrastructure to IBM starting next year. As part of this agreement, IBM will manage Manulife’s desktop PCs and servers as a service with variable pricing and the ability to scale up and down based on customer demand.

In April of this year, Manulife Financial acquired Maritime Life as part of its merger with John Hancock Financial Services, Inc., and is turning to IBM for technology support for the Canadian acquisition. This agreement also supports Manulife’s strategic initiative to integrate acquisitions more efficiently and at a lower cost while having a flexible IT infrastructure that continues to serve the needs of Manulife’s customers as the company grows.

This agreement is expected to provide Manulife with significant savings in information technology (IT) costs over the next four years.

Starting in 2005, IBM will provide Manulife with access to its computing resources to enhance the quality, performance and delivery of Maritime Life’s technology systems. Under the agreement, IBM will take over the management of 3,000 desktop PCs and 200 mid-range servers.

Managing PCs as a service can help companies realize substantial cost savings, as businesses today can spend up to two to five times more than the actual purchase price of a PC for maintenance and operational support. According to the Meta Research Group, a single PC costs $2,000 to $5,000 US per year to manage with help desk support, countless fixes and maintenance.

“It is important to us to build on our existing relationship with IBM as an IT partner,” said John Mather, Chief Information Officer and Senior Executive Vice President of Manulife Financial. “Our decision to expand on our business partnership with IBM allows us to further harness their IT expertise to support our strategic objectives for global growth and excellence.”

This agreement builds upon Manulife’s existing relationship that was announced in 2002. Under that agreement, IBM provides technology services and infrastructure support for the insurance company’s North American operations, including help desk services, servers, storage, and desktop computers. IBM also has an agreement to manage John Hancock’s IT services in the United States. This new agreement will significantly expand IBM’s management of Manulife’s infrastructure to include Maritime Life operations acquired earlier this year.

“As the insurance industry consolidates through mergers and acquisitions, IT service providers can help insurance companies rapidly integrate technologies, reduce costs and allow the companies to focus on their business,” said Garth Issett, Vice President, Financial Services, IBM Global Services, Canada. “IBM is working with Manulife Financial to provide these benefits as they integrate Maritime Life’s infrastructure.”

About Manulife Financial

Manulife Financial is a leading Canadian-based financial services group serving millions of customers in 19 countries and territories worldwide. Operating as Manulife Financial in Canada and most of Asia, and primarily through John Hancock in the United States, the Company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were Cdn$346 billion (US$274 billion) as at September 30, 2004.

Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘0945’ on the SEHK. Manulife Financial can be found on the Internet at

About IBM Global Services

IBM Global Services is the world’s largest information technology services and consulting provider. Some 180,000 professionals in more than 160 countries help clients integrate information technology with business value — from the business transformation and industry expertise of IBM Business Consulting Services to hosting, infrastructure, technology design and training services. Leveraging IBM’s unequalled scope and scale, IBM Global Services delivers integrated, flexible and resilient processes — across companies and through business partners — that enable clients to save money and transform their businesses to be more competitive. For more information, visit