Toronto-based Manulife Financial Corp. is increasing the size of its preferred share offering to 14 million shares from eight million as a result of strong investor demand.

The gross proceeds of the offering for its Non-cumulative 5-Year Rate Reset Class A Preferred Shares, Series 4, will now be $350 million. The offering will be underwritten by a syndicate of investment dealers led by RBC Capital Markets and CIBC World Markets and is anticipated to qualify as Tier 1 capital for Manulife. The expected closing date for the offering is March 4.

Manulife has also granted the underwriters an option, exercisable in whole or in part at any time up to 48 hours prior to closing, to purchase up to an additional four million Series 4 preferred shares. The maximum gross proceeds raised under the offering will be $450 million should this option be exercised in full. Manulife intends to file a prospectus supplement to its March 12, 2007 base shelf prospectus in respect of this issue.

The net proceeds of the offering will be used primarily for general corporate purposes and the balance will be used to reduce the amount outstanding under Manulife’s credit facility with Canadian banks.

The Series 4 and Series 5 preferred shares have not been and will not be registered in the U.S. under the Securities Act of 1933, as amended, and may not be offered or sold in the U.S. absent registration or an applicable exemption from the registration requirements.