RE: QuestionThe sensitivity has little to do with their investment assets and much to do with their variable annuity products. These products are equity related and yet guarantee a fixed income stream to their customers regardless of what the markets do. So when markets fall Manulife is on the hook to pay up regardless. That's why they have cut the dividend, and issued a ton of shares. They need to build up fortress level capital reserves so they can afford to pay out the difference between what they have guaranteed and the equity they have invested to pay out these guarantees.
Does that make sense?
Kerina