South Boston’s John Hancock Financial Looks to Woo Nervous Consumers

By Joshua Schubert

SOUTH BOSTON – From within the curved glass walls of its headquarters on Congress Street, John Hancock Financial’s position within the insurance market is now nearly as enviable as is its newly-designed building beside the waterfront.

John Hancock has withstood the steep financial market declines and is in position to take advantage of the floundering competition in the insurance business.

The company has reported steady earnings, while not cutting its advertising budget or quarterly dividend.

John Hancock is the US division of Manulife Financial, a Canadian insurance provider that bought John Hancock four years ago.


The company’s stock price is down 52 percent from its peak of $46.05 last November, as compared with losses of 56, 74 and 97 percent for competitors Sun Life, ING and AIG, respectively.

Losses at John Hancock have been comparable to those at Metlife, whose stock price has rebounded steadily since anxious investors pulled their money out last month following comments by Senate Majority Leader Harry Reid regarding a nationally-known insurer that needed cash to survive.

In April, John Hancock began airing new TV ads using “the future is yours” slogan. The goal of the campaign is to “let consumers know that John Hancock understands [their] concerns and that the company has the products and services to help them face the future with confidence,” said Brian Carmichael, the company’s director of corporate communications.

As AIG has been forced to cut its advertising budget, John Hancock increased its ad spending on sports, including the baseball playoffs and college football, during the final months of the year.

“Our media strategy is to have a presence in news, lifestyle and sports properties,” said John Hancock spokesman Melissa Berczuk.

“We can say that we are a top player in the markets where we participate,” said Carmichael.

John Hancock has maintained a 98-cent yearly dividend, while ING and AIG have suspended their dividends, as has been the standard for companies receiving federal cash injections. ING received money from the Dutch government, while AIG was aided by the US government, which now controls the insurer’s operations through a federal conservatorship.

Standard & Poor’s independent rating agency reaffirmed a positive outlook for the company.

“Manulife will continue to exhibit the ability to effectively navigate through these difficult times, given its excellent risk management practices,” according to a statement released last month.

Traders and economists, including Nouriel Roubini, contacted for this story did not respond to requests for comment prior to deadline.