With expectations that earnings and capital levels will continue to be impacted by market volatility, Toronto-based Manulife Financial Corp. has appointed a new chief financial officer and has reiterated its focus on maintaining strong capital levels.

Michael W. Bell has been appointed incoming senior executive vice president and CFO, Manulife announced on Friday. He is expected to join the company on Monday and will assume his new duties in July. Bell will succeed Peter Rubenovitch, who will be retiring from Manulife after 14 years of service.

“I would like to thank Peter for his outstanding commitment to Manulife’s growth and development,” said Manulife president and CEO Donald Guloien. “He played a key role in our demutualization, our integration with John Hancock and he has also been instrumental in all of Manulife’s capital markets activities.”

Rubenovitch has agreed to stay on for a period of time to assist with the transition, close out the second quarter and be a key resource on other strategic initiatives, the company said.

For the past six years, Bell has served as executive vice president and CFO at CIGNA Corp., a Philadelphia-based health service company, at which he was responsible for all global financial operations including finance, accounting, treasury, tax, investor relations and capital planning. Prior to serving as CIGNA’s CFO, Bell was president of the company’s group insurance business.

Guloien said Bell’s expertise and experience would be a key asset to Manulife.

“I am very pleased to welcome Michael as Manulife’s incoming CFO,” he said. “He is a seasoned international insurance executive with an outstanding track record as a financial leader, risk manager, business and team builder.”

One of Bell’s first priorities will be to review and complete a comprehensive capital plan Manulife has developed to ensure strong levels of capital in all of its operating businesses.

While the company’s MCCSR levels remain near historical highs, Guloien said the company’s earnings and capital levels would continue to be impacted by equity market and interest rate volatility.

“We will remain focused on fortifying capital,” he said. “Given the financial turmoil of the past year, we also anticipate regulators, rating agencies and the investing public will expect higher levels of capital going forward.”

Manulife expects that the benefits of stronger equity markets could be largely offset by actuarial reserve increases reflecting lower corporate bond rates, a more conservative assessment of policyholder behaviour, lower investment returns and other factors.

The firm will focus on building capital strength but will try to avoid the highly dilutive issuance of common equity, Guloien said.

“We will embark on a plan to increase capital to fortress levels in order to be in a position to provide the highest practical degree of security to policyholders, to withstand continuing economic volatility and to be able to take advantage of strategic opportunities.”