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Manulife refutes the conclusions of a report that predicts its decline financial

by

Andrea Lubeck

5 October 2018 11:30

Photo : Freepik

Manulife financial denies the conclusions of a report of the business of short-selling Muddy Waters Research, which indicates that the insurer would be on the point of concluding a trial that could ” harm significantly its revenues, its capital, its credit rating, its business and its solvency, according to a sworn statement of one of its experts “.

Manulife has called the allegations by Muddy Waters as ” an attempt to profit at the expense of shareholders “.

Muddy Waters Research is a firm of investment and research that investigates public enterprises and because of the short sale. It is the practice to buy a stock when it falls below a price specified in the order to generate a profit.

Use the font as a contract deposit

The lawsuit in question was filed by Mosten Investment, a hedge fund, who alleges that he or she can use the life insurance policy taken out in 1997 as instrument of deposits are unlimited. It would allow him to receive a payment annualized guaranteed return of at least a 4.00 %, with cash a month, according to the interpretation of the contract made by Mosten.

Mosten adds that his life insurance contract promises the bonus of 0.85% on each anniversary of the policy. Muddy Waters speculates that the fund may deposit money the day before the anniversary of the police and remove it 30 days later to take advantage of the bonus. The company said that they believe Mosten has several contracts of this type to accumulate several bonus similar each year.

“If Mosten wins, he could sell an unlimited number of partnerships supported by the contract of insurance and Manulife would become probably the most profitable money market funds in the developed countries,” said Muddy Waters in its report.

“A position is not legally founded”

Manulife continues to say that the position of Monsten is not legally founded. “We firmly believe that consumers who buy universal life insurance policies and the insurers that issue them have never had the intention to work such as contracts of deposit or securities,” said the insurer by way of a press release.

“We have a global franchise strong and well dimensioned. We expect to be successful in this case and that this does not affect our business activities or our ability to meet our obligations to our customers, our suppliers and other key stakeholders, ” concluded the insurer.

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