Manulife Financial is acquiring all of the outstanding shares of Zurich Life Insurance Company of Canada. Manulife Financial and Zurich North America Canada have signed an agreement to facilitate the deal.

Under the agreement, subject to regulatory approvals, Manulife will acquire Zurich Life, including its individual life insurance and associated blocks of wealth management, individual annuity, segregated fund, and group pension businesses, the companies announced today. A purchase price has not been disclosed for the transaction, which is expected to close by March 25, 2002.

“This agreement will add a significant amount of high-quality business to our Canadian operations,” says Bruce Gordon, Manulife Financial executive VP of Canadian operations. “It provides an excellent opportunity to significantly broaden Manulife’s position in the individual life insurance market, while providing Zurich Life’s customers with access to the products and services of one of Canada’s leading financial services companies.”

“For Zurich North America Canada, the sale reflects the continuation of our overall strategy to focus on key businesses in the corporate and large commercial area where the company can develop a sustainable competitive advantage,” says Barry J. Gilway, President and Chief Executive Officer of Zurich North America Canada. “We are committed to ensuring our clients continue to receive high-quality service and are very pleased that Manulife Financial is the purchaser of our individual life insurance business in Canada, since they share our passion for service and providing clients with a broad array of products and services.”

The acquisition of Zurich Life will add 193,000 individual life insurance policies to Manulife’s combined Canadian individual life business, which, with such an acquisition, will reach a significant milestone of more than $1 billion in gross annual premiums. Also, Manulife will acquire control of 547 Zurich Life group pension contracts, 2,900 individual annuity contracts and segregated fund assets of about $41 million.

Zurich and Manulife have an established business relationship. They previously announced a strategic distribution alliance in December 2000, as well as the sale of Zurich Life’s group life and health employee benefits business to Manulife in April 2001.