XML 70 R41.htm IDEA: XBRL DOCUMENT v3.8.0.1
Capital Instruments (Tables)
 12 Months Ended
Dec. 31, 2017
Text block1 [abstract]  
Schedule of Carrying Value of Capital Instruments

(a) Carrying value of capital instruments

 

As at December 31,   Issuance date   Earliest par redemption
date		   Maturity date   Par value     2017     2016  

4.165% MLI Subordinated debentures(1)

   February 17, 2012   June 1, 2017   June 1, 2022     $    500     $ –     $ 499  

3.938% MLI Subordinated debentures(2)

   September 21, 2012   September 21, 2017   September 21, 2022     $    400       –       407  

2.819% MLI Subordinated debentures(3)

   February 25, 2013   February 26, 2018   February 26, 2023     $    200       200       200  

2.926% MLI Subordinated debentures(3)

   November 29, 2013   November 29, 2018   November 29, 2023     $    250       250       249  

2.811% MLI Subordinated debentures(3)

   February 21, 2014   February 21, 2019   February 21, 2024     $    500       499       499  

7.535% MFCT II Senior debenture notes(4)

   July 10, 2009   December 31, 2019   December 31, 2108     $ 1,000       1,000       1,000  

2.64% MLI Subordinated debentures(3)

   December 1, 2014   January 15, 2020   January 15, 2025     $    500       499       499  

2.10% MLI Subordinated debentures(3)

   March 10, 2015   June 1, 2020   June 1, 2025     $    750       748       747  

2.389% MLI Subordinated debentures(3)

   June 1, 2015   January 5, 2021   January 5, 2026     $    350       349       349  

3.85% MFC Subordinated notes(5)

   May 25, 2016   May 25, 2021   May 25, 2026     S$    500       467       461  

3.181% MLI Subordinated debentures(3)

   November 20, 2015   November 22, 2022   November 22, 2027     $ 1,000       996       996  

3.049% MFC Subordinated debentures(6)

   August 18, 2017   August 20, 2024   August 20, 2029     $    750       746       –  

3.00% MFC Subordinated notes(5)

   November 21, 2017   November 21, 2024   November 21, 2024     S$    500       467       –  

4.061% MFC Subordinated notes(7)

   February 24, 2017   February 24, 2027   February 24, 2032     US$    750       935       –  

7.375% JHUSA Surplus notes(8)

   February 25, 1994   n/a   February 15, 2024     US$    450       584       627  

JHFC Subordinated notes(9)

   December 14, 2006   n/a   December 15, 2036     $    650       647       647  

Total

                       $   8,387     $   7,180  

 

(1) MLI redeemed in full the 4.165% subordinated debentures at par, on June 1, 2017, the earliest par redemption date.
(2) MLI redeemed in full the 3.938% subordinated debentures, originally issued by Standard Life Assurance Company of Canada at par, on September 21, 2017, the earliest par redemption date.
(3) Interest is fixed for the period up to the earliest par redemption date, thereafter the interest rate will reset to a floating rate equal to the 90-day Bankers’ Acceptance rate plus a specified number of basis points and is payable quarterly. The specified number of basis points is as follows: 2.819% – 95 bps, 2.926% – 85 bps, 2.811% – 80 bps, 2.64% – 73 bps, 2.10% – 72 bps, 2.389% – 83 bps, 3.181% – 157 bps. With regulatory approval, MLI may redeem the debentures, in whole or in part, on or after the earliest par redemption date, at a redemption price equal to par, together with accrued and unpaid interest.
(4) Issued by MLI to Manulife Financial Capital Trust II (MFCT II), a wholly owned unconsolidated related party to the Company. On the earliest par redemption date and on every fifth anniversary thereafter (each, a “Interest Reset Date”), the rate of interest will reset to equal the yield on 5-year Government of Canada bonds plus 5.2%. With regulatory approval, MLI may redeem the debentures, in whole or in part, on the earliest par redemption date and on any Interest Reset Date, at a redemption price equal to par, together with accrued and unpaid interest. The redemption price for the debentures redeemed on any day that is not an Interest Reset Date will be equal to the greater of par or the fair value of the debt based on the yield on uncallable Government of Canada bonds to the next Interest Reset Date plus (a) 1.0325% if the redemption date is on or after December 31, 2014, but prior to December 31, 2019, or (b) 2.065% if the redemption date is after December 31, 2019, together with accrued and unpaid interest. Refer to note 17.
(5) On the earliest par redemption date, the interest rate will reset to equal the 5-year Singapore Dollar Swap Rate plus a specified number of basis points. The specified number of basis points is as follows: 3.85% – 197 bps, 3.00% – 83.2 bps. With regulatory approval, MFC may redeem the debentures, in whole, but not in part, on the earliest par redemption date and thereafter on each interest payment date, at a redemption price equal to par, together with accrued and unpaid interest.
(6) Interest is fixed for the period up to the earliest par redemption date, thereafter, the interest rate will reset to a floating rate equal to the 90-day Bankers’ Acceptance rate plus 105 basis points. With regulatory approval, MFC may redeem the debentures, in whole or in part, on or after the earliest par redemption date, at a redemption price equal to par, together with accrued and unpaid interest.
(7) On the earliest par redemption date, the interest rate will reset to equal the 5-Year US Dollar Mid-Swap Rate plus 1.647%. With regulatory approval, MFC may redeem the debentures, in whole, but not in part, on the earliest par redemption date, at a redemption price equal to par, together with accrued and unpaid interest.
(8) Issued by John Hancock Mutual Life Insurance Company, now John Hancock Life Insurance Company (U.S.A.). Any payment of interest or principal on the surplus notes requires prior approval from the Department of Insurance and Financial Services of the State of Michigan. The carrying value of the surplus notes reflects an unamortized fair value increment of US$23 (2016 – US$26), which arose as a result of the acquisition of John Hancock Financial Services, Inc. The amortization of the fair value adjustment is recorded in interest expense.
(9) Issued by Manulife Holdings (Delaware) LLC (“MHDLL”), now John Hancock Financial Corporation (“JHFC”), a wholly owned subsidiary of MFC, to Manulife Finance (Delaware) LLC (“MFLLC”), a subsidiary of Manulife Finance (Delaware) L.P. (“MFLP”). MFLP and its subsidiaries are wholly owned unconsolidated related parties to the Company. The note bears interest at a floating rate equal to the 90-day Bankers’ Acceptance rate plus 0.72%. With regulatory approval, JHFC may redeem the note, in whole or in part, at any time, at par, together with accrued and unpaid interest. Refer to note 17.