Manulife (NYSE:MFC) has launched two new tools, the Business Analyzer and the Estate Tax Calculator, through its U.S. Life insurance subsidiary, John Hancock. The Business Analyzer will allow small businesses to manage retirement and estate planning needs for employees by helping them identify appropriate plan options through a decision-tree. The tool will provide an interactive interface to help advisors concentrate on non-qualified plan options like the supplemental executive retirement plan or the restricted endorsement bonus arrangement offered by the company. The Estate Tax Calculator is primarily suited for the company's high net worth clients, allowing them to project estate values and alert them of any taxes on the estate that are due. The tool will also help clients identify payable gift taxes.
Focus On Consolidation Under Pressure
Since the acquisition of John Hancock in 2004, Manulife has built a strong reputation as one of the leading life insurers in the U.S. and internationally. With market capitalization of $21 billion, it is ranked the 11th largest public life insurer in the world and 3rd in the U.S.
As the U.S. economy goes through economic and political uncertainty, particularly with low interest rates and volatile equity markets leading to increasing hedging costs, Manulife is trying to establish a basis for future organic growth by consolidating its share in the market through innovative products and offerings. We believe the company is on the right track and it will be able to maintain its position in the market through our forecast period despite the economic pressure.
New Website In Canada
Manulife has also launched a new website to spread awareness about the benefits of insurance in Canada. The site, named InsureRight, will provide several online tools such as Quick Quote and InsureRight Calculator to help customers in the country identify suitable insurance plans. The company lost some ground over the past few years in its home country due to the economic slowdown, but will look to regain market share through its effective marketing strategy and advertisement campaign that focuses on social media to reach potential customers.
Our $13 price estimate for the company's stock is at a premium of about 20% to the current market price. You can gauge the impact of a change in the forecasts on our price estimate by modifying the charts above.
Disclosure: No positions