Moody’s Investors Service placed the ratings of the subsidiaries of Manulife Financial Corp. under review for possible upgrade.

The rating agency said that it placed MFC’s subsidiary ratings under review for upgrade based on the continued improvement in the company’s well-diversified and predictable earnings profile, excellent financial flexibility, and on its durable, well-positioned franchises in North America and Asia.

In addition, it noted that MFC’s exposure to variable annuity (or segregated fund) secondary guarantee risk, though modest with respect to the company’s balance sheet, is growing. In Moody’s view, the company has organized a comprehensive risk management framework around this risk.

The review will focus on MFC’s market position and earnings profile in each of its key geographies (the United States, Canada, and Asia), the company’s targeted financial leverage and coverage ratios, and its risk management strategy.