Following the multi-billion-dollar deal Manulife takeover of Standard Life in Quebec, one industry expert has voiced his concern that this is but one of many consolidations that are yet to come.
Following the multi-billion-dollar deal Manulife takeover of Standard Life in Quebec, one industry expert has voiced his concern that this is but one of many consolidations that are yet to come.
“I have a great concern about the elimination of a market we have used for the past 20 years,” says Ontario advisor Brian Morris, “that offered superior products and service when compared to Manulife.”
It was last Wednesday that global insurer Manulife confirmed a $4 billion deal which will see the company gain control over Standard Life’s Canadian operations, and drastically improve their presence in Quebec.
The move comes just four years after Manulife slashed its dividend payment as a result of steep losses; and while the deal indicates an impressive recovery rate for the insurance giant, leading experts have expressed their concerns about what the buy-out means for business.
“I worry about the concentration of that much market power in the hands of one firm,” says insurance advisor and columnist Jim Ruta, who also bemoaned the loss of what he considers an excellent firm. “Standard Life was a tremendous organization with some great product. I think that product may or may not survive the cut. I hope it does.”
However, Manulife CEO Don Guloien has said the companies intend to “cross-sell each other’s products, where they make sense for clients,” and has called the deal a “global collaboration agreement.”
Manulife have long been known for acquiring smaller companies and Ruta warns that the company must accept they have an important responsibility to make sure they can adequately “service their ever-increasing, diverse block of business. (continued.)
See related article, 'Manulife makes blockbuster move.'
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“Time will tell how they handle this,” Ruta told Canadian Life. “The first person that has to win is the policy holder, the clients of those companies. I hope it works because that means that the policy holders will be advantaged and that’s what we need.”
Manulife suffered the severe, multi-billion dollar losses in 2009-2010 and the company’s stock, once considered a reliable blue chip, dipped to just $9.
At the time, Guloien promised a dramatic shift in policy and it certainly seems to have paid off, with market shares increasing in value on Friday.
“I have a great concern about the elimination of a market we have used for the past 20 years,” says Ontario advisor Brian Morris, “that offered superior products and service when compared to Manulife.”
It was last Wednesday that global insurer Manulife confirmed a $4 billion deal which will see the company gain control over Standard Life’s Canadian operations, and drastically improve their presence in Quebec.
The move comes just four years after Manulife slashed its dividend payment as a result of steep losses; and while the deal indicates an impressive recovery rate for the insurance giant, leading experts have expressed their concerns about what the buy-out means for business.
“I worry about the concentration of that much market power in the hands of one firm,” says insurance advisor and columnist Jim Ruta, who also bemoaned the loss of what he considers an excellent firm. “Standard Life was a tremendous organization with some great product. I think that product may or may not survive the cut. I hope it does.”
However, Manulife CEO Don Guloien has said the companies intend to “cross-sell each other’s products, where they make sense for clients,” and has called the deal a “global collaboration agreement.”
Manulife have long been known for acquiring smaller companies and Ruta warns that the company must accept they have an important responsibility to make sure they can adequately “service their ever-increasing, diverse block of business. (continued.)
See related article, 'Manulife makes blockbuster move.'
#pb#
“Time will tell how they handle this,” Ruta told Canadian Life. “The first person that has to win is the policy holder, the clients of those companies. I hope it works because that means that the policy holders will be advantaged and that’s what we need.”
Manulife suffered the severe, multi-billion dollar losses in 2009-2010 and the company’s stock, once considered a reliable blue chip, dipped to just $9.
At the time, Guloien promised a dramatic shift in policy and it certainly seems to have paid off, with market shares increasing in value on Friday.
