485BPOS 1 d316632d485bpos.htm JHNY B - NY CVUL 08 JHNY B - NY CVUL 08
Table of Contents
As filed with the U.S. Securities and Exchange Commission on April 25, 2017
Registration No. 333-152408
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-6
SEC File No 811-8329
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
POST EFFECTIVE AMENDMENT NO. 11 [X]
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
AMENDMENT NO. 62 [X]
John Hancock Life Insurance Company of New York Separate Account B
(Exact Name of Registrant)
John Hancock Life Insurance Company of New York
(Name of Depositor)
197 Clarendon Street
Boston, MA 02116
(Complete address of depositor’s principal executive offices)
Depositor's Telephone Number: 617-572-6000
JAMES C. HOODLET
John Hancock Life Insurance Company of New York
U.S. INSURANCE LAW
JOHN HANCOCK PLACE
BOSTON, MA 02117
(Name and complete address of agent for service)
It is proposed that this filing will become effective (check appropriate box)
[X] on May 1, 2017 pursuant to paragraph (b) of Rule 485
[ ] immediately upon filing pursuant to paragraph (b) of Rule 485
[ ] 60 days after filing pursuant to paragraph (a) (1) of Rule 485
[ ] on (date) pursuant to paragraph (a) (1) of Rule 485
If appropriate check the following box
[ ] this post-effective amendment designates a new effective date for a previously filed amendment
Pursuant to the provisions of Rule 24f-2, Registrant has registered an indefinite amount of the securities under the Securities Act of 1933.

Table of Contents
Prospectus dated May 1, 2017
for interests in
John Hancock Life Insurance Company of New York Separate Account B
Interests are made available under
Corporate VUL
a flexible premium variable universal life insurance policy
JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK
(“John Hancock NY”)
The policy provides a fixed account option with fixed rates of return declared by John Hancock NY and the following investment accounts:
500 Index B
Active Bond
Alpha Opportunities
American Asset Allocation
American Global Growth
American Growth
American Growth-Income
American International
American New World
Blue Chip Growth
Bond
Capital Appreciation
Capital Appreciation Value
Core Bond
Core Strategy
Emerging Markets Value
Equity Income
Financial Industries
Fundamental All Cap Core
Fundamental Large Cap Value
Global
Global Bond
Health Sciences
High Yield
International Equity Index B
International Growth Stock
International Small Company
International Value
Investment Quality Bond
Lifestyle Aggressive MVP
Lifestyle Balanced MVP
Lifestyle Conservative MVP
Lifestyle Growth MVP
Lifestyle Growth PS
Lifestyle Moderate MVP
Mid Cap Index
Mid Cap Stock
Mid Value
Money Market
PIMCO VIT All Asset
Real Estate Securities
Science & Technology
Short Term Government Income
Small Cap Growth
Small Cap Index
Small Cap Opportunities
Small Cap Value
Small Company Value
Strategic Income Opportunities
Total Bond Market B
Total Stock Market Index
Ultra Short Term Bond
Utilities
Value
* * * * * * * * * * * *
Please note that the Securities and Exchange Commission (“SEC”) has not approved or disapproved these securities, or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

 

GUIDE TO THIS PROSPECTUS
This prospectus is arranged in the following way:
•  Starting on the next page is a Table of Contents for this prospectus.
•  The section after the Table of Contents is called “Summary of Benefits and Risks.” It contains a summary of the benefits available under the policy and of the principal risks of purchasing the policy. You should read this section before reading any other section of this prospectus.
•  Behind the Summary of Benefits and Risks section is a section called “Fee Tables” that describes the fees and expenses you will pay when buying, owning and surrendering the policy.
•  Behind the Fee Tables section is a section called “Detailed Information.” This section gives more details about the policy. It may repeat certain information contained in the Summary of Benefits and Risks section in order to put the more detailed information in proper context.
•  Finally, on the back cover of this prospectus is information concerning the Statement of Additional Information (the “SAI”) and how the SAI, audited financial statements for John Hancock NY and the Separate Account, personalized illustrations and other information can be obtained.
Prior to making any investment decisions, you should carefully review this product prospectus and all applicable supplements. In addition, you will receive the prospectuses for the underlying funds that we make available as investment options under the policies. The funds' prospectuses describe the investment objectives, policies and restrictions of, and the risks relating to, investment in the funds. In the case of any of the portfolios that are operated as feeder funds, the prospectus for the corresponding master fund is also provided. If you need to obtain additional copies of any of these documents, please contact your John Hancock NY representative or contact our Service Office at the address and telephone number on the back page of this product prospectus.
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SUMMARY OF BENEFITS AND RISKS
The nature of the policy
The policy's primary purpose is to provide lifetime protection against economic loss due to the death of the insured person. The policy is unsuitable as a short-term savings vehicle because of the substantial policy-level charges. We are obligated to pay all amounts promised under the policy. The value of the amount you have invested under the policy may increase or decrease daily based on the investment results of the investment accounts that you choose. The amount we pay to the policy's beneficiary upon the death of the insured person (we call this the “death benefit”) may be similarly affected. That's why the policy is referred to as a “variable” life insurance policy. We call the investments you make in the policy “premiums” or “premium payments.” The amount we require as your first premium depends upon the specifics of your policy and the insured person. Except as noted in the “Detailed Information” section of this prospectus, you can make any other premium payments you wish at any time. That's why the policy is called a “flexible premium” policy.
In your application for the policy you will tell us how much life insurance coverage you want on the life of the insured person. This is called the “Total Face Amount.” The Total Face Amount is comprised of the Base Face Amount and any Supplemental Face Amount you elect based on your individual needs and objectives. Some of these considerations are discussed under “Base Face Amount vs. Supplemental Face Amount” in this prospectus; however, you should discuss your insurance needs and financial objectives with your registered representative before purchasing any life insurance product. You should also consider that the amount of compensation paid to the selling broker-dealer will generally be less if you elect greater portions of Supplemental Face Amount coverage at issue (see “Distribution of policies”).
If the life insurance protection described in this prospectus is provided under a master group policy, the term “policy” as used in this prospectus refers to the certificate we issue and not to the master group policy.
Summary of policy benefits
Death benefit
When the insured person dies, we will pay the death benefit minus any policy debt and unpaid fees and charges. There are two ways of calculating the death benefit (Option 1 and Option 2). You choose which one you want in the application. The two death benefit options are:
•  Option 1 - The death benefit will equal the greater of (1) the Total Face Amount plus any amount payable under a supplementary benefit rider, or (2) the minimum death benefit (as described under “The minimum death benefit” provision in the “Detailed Information” section of this prospectus).
•  Option 2 - The death benefit will equal the greater of (1) the Total Face Amount plus any amount payable under a supplementary benefit rider, plus the policy value on the date of death, or (2) the minimum death benefit.
Surrender of the policy
You may surrender the policy in full at any time. If you do, we will pay you the policy value less any outstanding policy debt and less any Surrender fee that applies. This is called your “net cash surrender value.” You must return your policy when you request a surrender.
If you have not taken a loan on your policy, the “policy value” of your policy will, on any given date, be equal to:
•  the amount you invested,
•  plus any gain or minus any loss of the investment experience of the investment options you’ve chosen,
•  minus all charges we deduct, and
•  minus all withdrawals you have made.
If you take a loan on your policy, your policy value will be computed somewhat differently (see “Effects of policy loans”). If you surrender your policy in connection with the purchase of a replacement policy, including a replacement intended to qualify as a tax free exchange under section 1035 of the Internal Revenue Code, there may also be a Replacement fee deducted from the net cash surrender value.
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Withdrawals
After the first policy year, you may make a withdrawal of part of your surrender value. Generally, each withdrawal must be at least $500. Your policy value is automatically reduced by the amount of the withdrawal. A withdrawal may also reduce the Total Face Amount (see “Surrender and withdrawals—Withdrawals”). We reserve the right to refuse any withdrawal if it would cause the policy's Total Face Amount to fall below $100,000 or the Base Face Amount to fall below $50,000.
Policy loans
If your policy is in force and has sufficient policy value, you may borrow from it at any time by completing the appropriate form. Generally, the minimum amount of each loan is $500. The maximum amount you can borrow is determined by a formula as described in your policy. Interest is charged on each loan. You can pay the interest or allow it to become part of the outstanding loan balance. You can repay all or part of a loan at any time. If there is an outstanding loan when the insured person dies, it will be deducted from the death benefit. Policy loans permanently affect the calculation of your policy value, and may also result in adverse tax consequences.
Optional supplementary benefit riders
When you apply for the policy, you can request any of the optional supplementary benefit riders that we make available. Charges for most riders will be deducted monthly from the policy value. Some riders may not be available in combination with other riders or benefits (see “Other policy benefits, rights and limitations—Optional supplementary benefit riders you can add”).
Investment options
The policy offers a number of investment options, as listed on page 1 of this prospectus. These investment options are subaccounts of John Hancock Life Insurance Company of New York Separate Account B (“Separate Account”), a separate account operated by us under New York law. There is also a “fixed account” option that provides a fixed rate of return. The variable investment options have returns that vary depending upon the investment results of underlying portfolios. These options are referred to in this prospectus as “investment accounts.” The fixed account and the investment accounts are sometimes collectively referred to in this prospectus as the “accounts.” The investment accounts cover a broad spectrum of investment styles and strategies. Although the portfolios of the series funds that underlie those investment accounts operate like publicly traded mutual funds, there are important differences between the investment accounts and publicly traded mutual funds. You can transfer money from one investment account to another without tax liability. Moreover, any dividends and capital gains distributed by each underlying portfolio are automatically reinvested and reflected in the portfolio’s value and create no taxable event for you. If and when policy earnings are distributed (generally as a result of a surrender or withdrawal), they will be treated as ordinary income instead of as capital gains. Also, you must keep in mind that you are purchasing an insurance policy and you will be assessed charges at the policy level as well as at the fund level. Such policy level charges, in aggregate, are significant and will reduce the investment performance of your policy.
Summary of policy risks
Lapse risk
If the net cash surrender value is insufficient to pay the charges when due, your policy can terminate (i.e. “lapse”). This can happen because you haven't paid enough premiums or because the investment performance of the investment accounts you’ve chosen has been poor or because of a combination of both factors. You will be given a “grace period” within which to make additional premium payments to keep the policy in effect. If lapse occurs, you may be given the opportunity to reinstate the policy by making the required premium payments and satisfying certain other conditions.
Since withdrawals reduce your policy value, withdrawals increase the risk of lapse. Policy loans also increase the risk of lapse.
Investment risk
As mentioned above, the investment performance of any investment account may be good or bad. Your policy value will rise or fall based on the investment performance of the investment accounts you've chosen. Some investment accounts are riskier than others. These risks (and potential rewards) are discussed in detail in the prospectuses of the underlying portfolios.
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Transfer risk
There is a risk that you will not be able to transfer your policy value from one investment account to another because of limitations on the dollar amount or frequency of transfers you can make. The limitations on transfers out of the fixed account option are more restrictive than those that apply to transfers out of investment accounts.
Early surrender risk
Depending on the policy value at the time you are considering surrender, there may be little or no surrender value payable to you.
Market timing and disruptive trading risks
The policy is not designed for professional market timers or highly active traders, including persons or entities that engage in programmed, large or frequent transfers among the investment accounts or between the investment accounts and any available fixed account. The policy is also not designed to accommodate trading that result in transfers that are large in relation to the total assets of the underlying portfolio.
To discourage market timing and disruptive trading activity, we impose restrictions (see “Market timing and disruptive trading practices”) on transfers and reserve the right to change, suspend or terminate telephone, facsimile and internet transaction privileges (see “How you communicate with us”).
While we seek to identify and prevent disruptive trading activity, it may not always be possible to do so. Therefore, no assurance can be given that the restrictions we impose will be successful in preventing all disruptive trading and avoiding harm to long term investors.
Tax risks
Life insurance death benefits are ordinarily not subject to income tax. Other Federal and state taxes may apply as further discussed below. In general, you will be taxed on the amount of lifetime distributions that exceed the premiums paid under the policy. Any taxable distribution will be treated as ordinary income (rather than as capital gains) for tax purposes.
In order for you to receive the tax benefits extended to life insurance under the Internal Revenue Code, your policy must comply with certain requirements of the Code. We will monitor your policy for compliance with these requirements, but a policy might fail to qualify as life insurance in spite of our monitoring. If this were to occur, you would be subject to income tax on the income credited to your policy for the period of disqualification and all subsequent periods. The tax laws also contain a so-called “7 pay limit” that limits the amount of premium that can be paid in relation to the policy’s death benefit. If the limit is violated, the policy will be treated as a “modified endowment contract,” which can have adverse tax consequences. There are also certain Treasury Department rules referred to as the “investor control rules” that determine whether you would be treated as the “owner” of the assets underlying your policy. If that were determined to be the case, you would be taxed on any income or gains those assets generate. In other words, you would lose the value of the so-called “inside build-up” that is a major benefit of life insurance.
There is a tax risk associated with policy loans. Although no part of a loan is treated as income to you when the loan is made unless your policy is a “modified endowment contract,” surrender or lapse of the policy with a loan outstanding would result in the loan being treated as a distribution at the time of lapse or surrender. This could result in a considerable tax bill. Under certain circumstances involving large amounts of outstanding loans and an insured person of advanced age, you might find yourself having to choose between high premium requirements to keep your policy from lapsing and a significant tax burden if you allow the lapse to occur.
Tax consequences of ownership or receipt of policy proceeds under Federal, state and local estate, inheritance, gift and other tax laws can vary greatly depending upon the circumstances of each owner or beneficiary. There can also be unfavorable tax consequences on such things as the change of policy ownership or assignment of ownership interests. For these and all the other reasons mentioned above, we recommend you consult with a qualified tax adviser before buying the policy and before exercising certain rights under the policy.
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FEE TABLES
This section contains five tables that describe all of the fees and expenses that you will pay when buying, owning and surrendering the policy. In the first three tables, certain entries show the maximum charge, the minimum charge and the charge for a representative insured person. Other entries show only the maximum charge. Except where necessary to show a rate greater than zero, all rates shown in the tables have been rounded to two decimal places as required by prospectus disclosure rules. Consequently, the actual rates charged may be slightly higher or lower than those shown in the tables.
The first table below describes the fees and expenses that you will pay at the time that you transfer policy value between investment accounts or upon a section 1035 Exchange or replacement of your policy. The table also describes the deferred premium charge. The deferred premium charge is calculated at the end of every policy year in which premiums are paid. The premium charge is then assessed monthly over ten policy years in 120 equal monthly amounts. A portion of the deferred premium charge is used to cover premium taxes. Currently, the premium tax in New York is 0.7% of each premium payment.
Transaction Fees
Charge When Charge is Deducted Amount Deducted
Deferred premium charge Upon making a premium payment (charge deducted monthly over a ten year period beginning in the policy year following the premium payment)(1) 0.13% monthly for ten policy years for each premium payment
Transfer fee Upon each transfer into or out of an investment account beyond an annual limit of not less than twelve $25 (2)
Replacement fee(3) Upon a policy replacement or 1035 Exchange for the first ten policy years  
Maximum charge   $37.69 per $1,000 of Total Face Amount
Minimum charge   $3.37 per $1,000 of Total Face Amount
Charge for representative insured person   $12.60 per $1,000 of Total Face Amount
Surrender fee(4) Upon a withdrawal or surrender of the policy (if such surrender is not subject to a Replacement fee) during the first 7 policy years  
Maximum charge   $14.63 per $1,000 of Total Face Amount
Minimum charge   $1.05 per $1,000 of Total Face Amount
Charge for representative insured person   $2.88 per $1,000 of Total Face Amount
    
(1)  At the end of the first and every policy year thereafter, we calculate a deferred premium charge on the basis of the total of the premiums paid during that policy year, multiplied by a rate not to exceed 0.13% (15% on a cumulative basis). The premium charge is then deducted monthly over ten policy years in 120 equal monthly amounts beginning in the policy year following the premium payment.
(2)  This charge is not currently imposed, but we reserve the right to do so in the policy.
(3)  A Replacement fee is imposed for the first ten policy years if you surrender your policy in connection with the purchase of a replacement policy, including a replacement intended to qualify as a tax free exchange under section 1035 of the Internal Revenue Code. The fee is a percentage of the premiums we receive in the first policy year that do not exceed the Replacement Fee Calculation Limit stated in your policy. The percentage applied is dependent upon the policy year during which the replacement occurs and grades down proportionately at the beginning of each policy month until it reaches zero. The Replacement Fee Calculation Limit varies by issue age, sex and amounts of Base Face Amount and Supplemental Face Amount elected at issue. The maximum rate shown is for a 70 year old male with all Base Face Amount. The minimum rate shown is for a 20 year old female with 10% Base Face Amount and 90% Supplemental Face Amount. The representative insured person rate shown is for a 45 year old male with 50% Base Face Amount and 50% Supplemental Face Amount. These charges may not be particularly relevant to your current situation. For more information, contact your John Hancock NY representative.
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(4)  This fee is applicable only to policies issued with the Surrender Fee Endorsement, which we may also refer to as the “Early Termination Fee Endorsement.” The fee deducted will be equal to the percentage shown in your policy multiplied by the lesser of either the sum of premiums paid to date at the time the fee is applied or the Calculation Limit shown in your policy. The Calculation Limit varies by issue age, sex of the insured person and policy duration. The maximum rate shown is for a 90 year old male. The minimum rate shown is for a 20 year old female. The representative insured person rate shown is for a 45 year old male. The fees shown in the table are the amounts that would apply to a surrender in the first policy year of the charge period assuming the premiums that have been paid are equal to the Calculation Limit in the first policy year. See “Description of charges at the policy level - Deductions from policy value” or contact your John Hancock NY representative for more information about whether this fee will be applicable to your policy.
The next two tables describe the charges and expenses that you will pay periodically during the time you own the policy. These tables do not include fees and expenses paid at the portfolio level. The second table is devoted only to optional supplementary rider benefits. For more information about the cost of insurance rates and other charges talk to your John Hancock NY representative.
Periodic Charges Other Than Fund Operating Expenses
Charge When Charge is Deducted Amount Deducted
Cost of insurance charge(1) Monthly  
Maximum charge   $83.33 per $1,000 of NAR
Minimum charge   $0.04 per $1,000 of NAR
Charge for representative insured person   $0.22 per $1,000 of NAR
Base Face Amount charge(2) Monthly  
Maximum charge   $2.44 per $1,000 of Base Face Amount
Minimum charge   $0.09 per $1,000 of Base Face Amount
Charge for representative insured person   $0.24 per $1,000 of Base Face Amount
Administrative charge Monthly $15.00
Asset-based risk charge(3) Monthly 0.14% of policy value
Policy loan interest rate(4) Accrues daily
Payable annually 		4.00%
    
(1)  The cost of insurance charge is determined by multiplying the net amount of insurance for which we are at risk (the net amount at risk or “NAR”) by the applicable cost of insurance rate. The rates vary widely depending upon the length of time the policy has been in effect, the insurance risk characteristics of the insured person and (generally) the sex of the insured person. The maximum rate shown is the rate in the first policy year for a 90 year old male substandard smoker underwriting risk. The minimum rate shown is the rate in the first policy year for a 20 year old female super preferred underwriting risk. The representative insured person rate shown is for a 45 year old male standard non-smoker underwriting risk in the first policy year. These charges may not be particularly relevant to your current situation. For more information, contact your John Hancock NY representative.
(2)  This charge is determined by multiplying the Base Face Amount at issue by the applicable rate. The rates vary by the sex, issue age, and risk classification of the insured person and duration (policy year). The maximum rate shown is for a 90 year old male standard smoker underwriting risk in policy year 1. The minimum rate shown is for a 20 year old female super preferred underwriting risk in policy year 1. The representative insured person rate shown is for a 45 year old male standard non-smoker underwriting risk in policy year 1. For more information, contact your John Hancock NY representative.
(3)  This charge is currently not imposed, but we reserve the right to do so in the policy. This charge only applies to the portion of the policy value held in the investment accounts. The charge determined does not apply to any policy value held in a fixed account. The charge varies based on the amount of Base Face Amount and Supplemental Face Amount elected at issue. The maximum charge shown is for a policy with 10% Base Face Amount and 90% Supplemental Face Amount at issue. For more information, contact your John Hancock NY representative.
(4)  4.00% is the maximum effective annual interest rate we can charge and applies only during policy years 1-10. The effective annual interest rate is 3.00% thereafter (although we reserve the right to increase the rate after the tenth policy year to as much as 3.25%. The amount of any loan is transferred from the accounts to a special loan account which earns interest at an effective annual rate of 3.00%. Therefore, the cost of a loan is the difference between the loan interest we charge and the interest we credit to the special loan account.
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Rider Charges
Charge When Charge is Deducted Amount Deducted
Accelerated Benefit Rider(1) At exercise of benefit $150.00
Overloan Protection Rider(2) At exercise of benefit  
Maximum charge   8.00%
Minimum charge   0.04%
Return of Premium Death Benefit Rider(3) Monthly  
Maximum charge   $83.33 per $1,000 of NAR
Minimum charge   $0.04 per $1,000 per NAR
Charge for representative insured person   $0.22 per $1,000 of NAR
Long-Term Care Rider(4) Monthly  
Maximum charge   $3.34 per $1,000 of NAR
Minimum charge   $0.01 per $1,000 of NAR
Charge for representative insured person   $0.08 per $1,000 of NAR
    
(1)  This charge is not currently imposed, but we reserve the right to do so in the policy.
(2)  The charge for this rider is determined as a percentage of unloaned account value. The rates vary by the attained age of the insured person at the time of exercise. The rates also differ according to the tax qualification test elected at issue. The maximum rate shown is for an insured person who has reached attained age 75 and the cash value accumulation test has been elected. The minimum rate shown is for an insured person who has reached attained age 120 and the guideline premium test or the cash value accumulation test has been elected. For more information, contact your John Hancock NY representative.
(3)  The Return of Premium Death Benefit Rider charge is determined by multiplying the net amount of insurance for which we are at risk (the net amount at risk or “NAR”) by the applicable cost of insurance rate. The rates vary widely depending upon the length of time the policy has been in effect, the insurance risk characteristics of the insured person and (generally) the sex of the insured person. The maximum rate shown is the rate in the first policy year for a 90 year old male substandard smoker underwriting risk. The minimum rate shown is the rate in the first policy year for a 20 year old female super preferred underwriting risk. This includes the so-called “extra mortality charge.” The representative insured person rate refers to a 45 year old male standard non-smoker underwriting risk in the first policy year. These charges may not be particularly relevant to your current situation. For more information, contact your John Hancock NY representative.
(4)  The charge for this rider is determined by multiplying the net amount of insurance for which we are at risk (the net amount at risk or “NAR”) by the applicable rate. The rates vary by the long-term care insurance risk characteristics of the insured person and the rider benefit level selected. The maximum rate shown is for a 75 year old male substandard smoker underwriting risk with a 4% Monthly Acceleration Percentage. The minimum rate shown is for a 20 year old female super preferred non-smoker underwriting risk with a 1% Monthly Acceleration Percentage, which is a percentage of the death benefit you can accelerate each month. The representative insured person rate shown is for a 45 year old male standard non-smoker underwriting risk with a 4% Monthly Acceleration Percentage. The Monthly Acceleration Percentage is stated in the Policy Specifications page of your policy. These charges may not be particularly relevant to your current situation. For more information, contact your John Hancock NY representative.
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The next table describes the minimum and maximum portfolio level fees and expenses charged by any of the portfolios underlying a variable investment option offered through this prospectus, expressed as a percentage of average net assets (rounded to two decimal places). These expenses are deducted from portfolio assets. For more information, please refer to the prospectus for the portfolio.
Total Annual Portfolio Operating Expenses Minimum Maximum
Range of expenses, including management fees, distribution and/or service (12b-1) fees, and other expenses1 0.41% 1.71%
    
1  Certain of the portfolios’ advisers or subadvisers have contractually agreed to reimburse or waive certain portfolio level expenses. The minimum and maximum expenses shown do not reflect these contractual expense reimbursements or waivers. If such reimbursements or waivers were reflected, the minimum and maximum expenses would be 0.25% and 1.52%, respectively.
The next table describes the fees and expenses for each portfolio underlying a variable investment option offered through this prospectus. None of the portfolios charge a sales load or surrender fee. The fees and expenses do not reflect the fees and expenses of any variable insurance contract or qualified plan that may use the portfolio as its underlying investment medium. Except for the American Asset Allocation, American Global Growth, American Growth, American Growth-Income, American International, American New World and PIMCO VIT All Asset portfolios, all of the portfolios shown in the table are NAV class shares that are not subject to Rule 12b-1 fees. Except as indicated in the footnotes appearing at the end of the table, the expense ratios are based upon the portfolio's actual expenses for the year ended December 31, 2016.
Portfolio Annual Expenses
(as a percentage of portfolio average net assets, rounded to two decimal places)
Portfolio   Management
fees 		  12b-1
Fees 		  Other
Expenses 		  Acquired
Fund Fees
and Expenses 		  Total Fund
Operating
Expenses
500 Index B1
   0.46%   0.00%   0.03%   0.00%   0.49%
Active Bond2
   0.60%   0.00%   0.04%   0.01%   0.65%
Alpha Opportunities
   0.96%   0.00%   0.06%   0.00%   1.02%
American Asset Allocation3
   0.27%   0.60%   0.04%   0.00%   0.91%
American Global Growth3
   0.53%   0.60%   0.07%   0.00%   1.20%
American Growth3
   0.33%   0.60%   0.04%   0.00%   0.97%
American Growth-Income3
   0.27%   0.60%   0.05%   0.00%   0.92%
American International3
   0.50%   0.60%   0.07%   0.00%   1.17%
American New World3
   0.72%   0.60%   0.14%   0.00%   1.46%
Blue Chip Growth
   0.78%   0.00%   0.03%   0.00%   0.81%
Bond
   0.56%   0.00%   0.04%   0.00%   0.60%
Capital Appreciation
   0.70%   0.00%   0.05%   0.00%   0.75%
Capital Appreciation Value
   0.81%   0.00%   0.05%   0.00%   0.86%
Core Bond
   0.58%   0.00%   0.04%   0.00%   0.62%
Core Strategy2
   0.04%   0.00%   0.02%   0.55%   0.61%
Emerging Markets Value
   0.95%   0.00%   0.13%   0.00%   1.08%
Equity Income
   0.73%   0.00%   0.03%   0.00%   0.76%
Financial Industries2
   0.77%   0.00%   0.06%   0.29%   1.12%
Fundamental All Cap Core
   0.67%   0.00%   0.03%   0.00%   0.70%
Fundamental Large Cap Value
   0.63%   0.00%   0.04%   0.00%   0.67%
Global4
   0.81%   0.00%   0.07%   0.00%   0.88%
Global Bond
   0.70%   0.00%   0.08%   0.00%   0.78%
Health Sciences
   1.05%   0.00%   0.05%   0.00%   1.10%
High Yield
   0.68%   0.00%   0.08%   0.00%   0.76%
International Equity Index B5
   0.53%   0.00%   0.11%   0.00%   0.64%
International Growth Stock2
   0.79%   0.00%   0.08%   0.01%   0.88%
International Small Company
   0.95%   0.00%   0.27%   0.00%   1.22%
International Value
   0.80%   0.00%   0.08%   0.00%   0.88%
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Portfolio   Management
fees 		  12b-1
Fees 		  Other
Expenses 		  Acquired
Fund Fees
and Expenses 		  Total Fund
Operating
Expenses
Investment Quality Bond
   0.58%   0.00%   0.06%   0.00%   0.64%
Lifestyle Aggressive MVP2,6
   0.06%   0.00%   0.04%   0.79%   0.89%
Lifestyle Balanced MVP2,6
   0.05%   0.00%   0.02%   0.65%   0.72%
Lifestyle Conservative MVP2,6
   0.05%   0.00%   0.02%   0.62%   0.69%
Lifestyle Growth MVP2,6
   0.05%   0.00%   0.02%   0.67%   0.74%
Lifestyle Growth PS2
   0.04%   0.00%   0.02%   0.55%   0.61%
Lifestyle Moderate MVP2,6
   0.05%   0.00%   0.02%   0.64%   0.71%
Mid Cap Index7
   0.47%   0.00%   0.04%   0.00%   0.51%
Mid Cap Stock
   0.83%   0.00%   0.05%   0.00%   0.88%
Mid Value
   0.95%   0.00%   0.04%   0.00%   0.99%
Money Market8
   0.37%   0.00%   0.04%   0.00%   0.41%
PIMCO VIT All Asset9
   0.43%   0.45%   0.00%   0.83%   1.71%
Real Estate Securities
   0.70%   0.00%   0.04%   0.00%   0.74%
Science & Technology
   1.02%   0.00%   0.06%   0.00%   1.08%
Short Term Government Income Fund
   0.56%   0.00%   0.05%   0.00%   0.61%
Small Cap Growth
  1.05%   0.00%   0.05%   0.00%   1.10%
Small Cap Index10
   0.49%   0.00%   0.04%   0.00%   0.53%
Small Cap Opportunities4
   0.99%   0.00%   0.07%   0.00%   1.06%
Small Cap Value2
   1.03%   0.00%   0.04%   0.05%   1.12%
Small Company Value2
   1.05%   0.00%   0.04%   0.14%   1.23%
Strategic Income Opportunities2
   0.63%   0.00%   0.06%   0.00%   0.69%
Total Bond Market B2,11
   0.47%   0.00%   0.05%   0.01%   0.53%
Total Stock Market Index2
   0.48%   0.00%   0.04%   0.01%   0.53%
Ultra Short Term Bond
   0.55%   0.00%   0.05%   0.00%   0.60%
Utilities
   0.82%   0.00%   0.06%   0.00%   0.88%
Value2
   0.70%   0.00%   0.04%   0.06%   0.80%
    
1  John Hancock Investment Management Services, LLC (“JHIMS”) has contractually agreed to waive those expenses of the portfolio that exceed 0.25% of average annual net assets of the portfolio, or, if necessary, make payment to the portfolio in an amount equal to the amount by which “Total Fund Operating Expenses” of the portfolio exceed 0.25%. A portfolio’s “Total Fund Operating Expenses” includes all fund-level and class-specific operating expenses, excluding (a) taxes, (b) brokerage commissions, (c) interest expense, (d) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the portfolio’s business, (e) class-specific expenses, (f) borrowing costs, (g) prime brokerage fees, (h) acquired fund fees and expenses paid indirectly, and (i) short dividend expense. The current expense limitation expires on April 30, 2018, unless renewed by mutual agreement of the portfolio and JHIMS based upon a determination that this is appropriate under the circumstances at that time. The fees shown in the table do not reflect this waiver or reimbursement. If this waiver or reimbursement had been reflected, the “Total Fund Operating Expenses” for the portfolio would be 0.25%. For more information, please refer to the prospectus for the portfolio.
2  “Acquired Fund Fees and Expenses” are based on indirect net expenses associated with the portfolio’s investments in the funds (each an “Acquired Fund”) of underlying investment companies. The “Total Fund Operating Expenses” shown may not correlate to the portfolio’s ratios of expenses to average net assets shown in the “Financial highlights” section of the fund’s prospectus, which does not include “Acquired Fund Fees and Expenses.” For more information, please refer to the prospectus for the portfolio.
3  The table reflects the combined fees of the feeder fund and the master fund.
4  John Hancock Investment Management Services, LLC (“JHIMS”) has contractually agreed to waive its management fee so that the amount it retains after payment of the subadvisory fees for the portfolio does not exceed 0.45% of the portfolio’s average net assets. The current expense limitation agreement expires on April 30, 2018 unless renewed by mutual agreement of the portfolio and JHIMS based upon a determination that this is appropriate under the circumstances at that time. The fees in the table do not reflect this waiver. If this waiver had been reflected, the “Total Fund Operating Expenses” for the Global and Small Cap Opportunities portfolios would be 0.87% and 0.98%, respectively. For more information, please refer to the prospectus for the portfolio.
5  John Hancock Investment Management Services, LLC (“JHIMS”) has contractually agreed to waive those expenses of the portfolio that exceed 0.34% of average annual net assets of the portfolio, or, if necessary, make payment to the portfolio in an amount equal to the amount by which “Total Fund Operating Expenses” of the portfolio exceed 0.34%. A portfolio’s “Total Fund Operating Expenses” includes all fund-level and class-specific operating expenses, excluding (a) taxes, (b) brokerage commissions, (c) interest expense, (d)
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litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund's business, (e) class-specific expenses, (f) borrowing costs, (g) prime brokerage fees, (h) acquired fund fees and expenses paid indirectly, and (i) short dividend expense. The current expense limitation expires on April 30, 2018, unless renewed by mutual agreement of the portfolio and JHIMS based upon a determination that this is appropriate under the circumstances at that time. The fees shown in the table do not reflect this waiver or reimbursement. If this waiver or reimbursement had been reflected, the “Total Fund Operating Expenses” for the portfolio would be 0.34%. For more information, please refer to the prospectus for the portfolio.
6  John Hancock Investment Management Services, LLC (“JHIMS”) has contractually agreed to reduce its management fee and/or make payment to the portfolio in an amount equal to the amount by which “Other Expenses” of the portfolio exceed 0.00% of the average net assets of the portfolio. “Other Expenses” means all of the expenses of the portfolio, excluding certain expenses such as advisory fees, taxes, brokerage commissions, interest expense, litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the portfolio’s business, distribution and service (Rule 12b-1) fees, transfer agency and service fees, underlying fund expenses (acquired fund fees), and short dividend expense. The current expense limitation agreement expires on April 30, 2018, unless renewed by mutual agreement of the portfolio and JHIMS based upon a determination that this is appropriate under the circumstances at that time. The fees shown in the table do not reflect this waiver or reimbursement. If this waiver or reimbursement had been reflected, the “Total Fund Operating Expenses” for the portfolio would be as indicated in the table below. For more information, please refer to the prospectus for the portfolio.
Portfolio   Total Fund
Operating Expenses
Lifestyle Aggressive MVP
   0.85%.
Lifestyle Balanced MVP
   0.70%
Lifestyle Conservative MVP
   0.67%
Portfolio   Total Fund
Operating Expenses
Lifestyle Growth MVP
   0.72%
Lifestyle Moderate MVP
   0.69%
 
 
7  John Hancock Investment Management Services, LLC (“JHIMS”) has contractually agreed to waive its management fee by 10% as a percentage of the portfolio’s average annual net assets. The current expense limitation agreement expires on April 30, 2018 unless renewed by mutual agreement of the portfolio and JHIMS based upon a determination that this is appropriate under the circumstances at that time. The fees shown in the table do not reflect this waiver or reimbursement. If this waiver or reimbursement had been reflected, the “Total Fund Operating Expenses” for the portfolio would be 0.41%. For more information, please refer to the prospectus for the portfolio.
8  John Hancock Investment Management Services, LLC (“JHIMS”) has contractually agreed to waive those expenses of the portfolio that exceeds 0.28% of average annual net assets of the portfolio, or, if necessary, make payment to the portfolio in an amount equal to the amount by which “Total Fund Operating Expenses” of the portfolio exceeds 0.28%. A portfolio’s “Total Fund Operating Expenses” includes all of its fund-level and class-specific operating expenses, excluding (a) taxes, (b) brokerage commissions, (c) interest expense, (d) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the fund's business, (e) class-specific expenses, (f) borrowing costs, (g) prime brokerage fees, (h) acquired fund fees and expenses paid indirectly, and (i) short dividend expense. The current expense limitation expires on April 30, 2018, unless renewed by mutual agreement of the portfolio and JHIMS based upon a determination that this is appropriate under the circumstances at that time. The fees shown in the table do not reflect this waiver or reimbursement. If this waiver or reimbursement had been reflected, the “Total Fund Operating Expenses” for the portfolio would be 0.28%. For more information, please refer to the prospectus for the portfolio.
9  Pacific Investment Management Company LLC (“PIMCO”) has contractually agreed through May 1, 2018, to reduce its management fee to the extent that the underlying PIMCO fund expenses attributable to management, supervisory and administrative fees exceeds 0.64% of the total assets invested in the underlying PIMCO funds. PIMCO may recoup these waivers in future periods, not exceeding three years, provided total expenses, including such recoupment, do not exceed the annual expense limit. The fee reduction is implemented based on a calculation of underlying PIMCO fund expenses attributable to management, supervisory and administrative fees that is different from the calculation of “Acquired Fund Fees and Expenses” shown in the table. “Acquired Fund Fees and Expenses” include interest expense of 0.05%. Interest expense results from certain transactions within the underlying PIMCO funds and is separate from the management fees paid to PIMCO. “Total Fund Operating Expenses” excluding interest expense of the underlying fund is 1.66%. The fees shown in the table do not reflect the expense waiver. If this expense waiver had been reflected, the “Total Fund Operating Expenses” shown (excluding the interest expense of the underlying funds) would be 1.52%. The “Total Fund Operating Expenses” shown may not correlate to the portfolio’s ratio of expense to average net assets shown in the Financial Highlights section of the prospectus for the portfolio, which does not include “Acquired Fund Fees and Expenses.” For more information, please refer to the prospectus for the portfolio.
10  John Hancock Investment Management Services, LLC (“JHIMS”) has contractually agreed to waive its management fee by 0.05% as a percentage of the portfolio’s average annual net assets. The current expense limitation agreement expires on April 30, 2018 unless renewed by mutual agreement of the portfolio and JHIMS based upon a determination that this is appropriate under the circumstances at that time. The fees shown in the table do not reflect this waiver or reimbursement. If this waiver or reimbursement had been reflected, the “Total Fund Operating Expenses” for the portfolio would be 0.48%. For more information, please refer to the prospectus for the portfolio.
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11  John Hancock Investment Management Services, LLC (“JHIMS”) has contractually agreed to waive those expenses of the portfolio that exceed 0.25% of average annual net assets of the portfolio, or, if necessary, make payment to the portfolio in an amount equal to the amount by which “Total Fund Operating Expenses” of the portfolio exceed 0.25%. A portfolio’s “Total Fund Operating Expenses” includes all fund-level and class-specific operating expenses, excluding (a) taxes, (b) brokerage commissions, (c) interest expense, (d) litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the portfolio’s business, (e) class-specific expenses, (f) borrowing costs, (g) prime brokerage fees, (h) acquired fund fees and expenses paid indirectly, and (i) short dividend expense. The current expense limitation expires on April 30, 2018, unless renewed by mutual agreement of the portfolio and JHIMS based upon a determination that this is appropriate under the circumstances at that time. The fees shown in the table do not reflect this waiver or reimbursement. If this waive or reimbursement had been reflected, the “Total Fund Operating Expenses” for the portfolio would be 0.26%. For more information, please refer to the prospectus for the portfolio.
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DETAILED INFORMATION
This section of the prospectus provides additional detailed information that is not contained in the Summary of Benefits and Risks section.
Table of Investment Options and Investment Subadvisers
When you select a Separate Account investment option, we invest your money in shares of a corresponding portfolio of the John Hancock Variable Insurance Trust (the “Trust” or “JHVIT”) (or the PIMCO Variable Insurance Trust (the “PIMCO Trust”) with respect to the PIMCO VIT All Asset portfolio) and hold the shares in a subaccount of the Separate Account. The Fee Tables show the investment management fees, Rule 12b-1 fees and other operating expenses for these portfolio shares as a percentage (rounded to two decimal places) of each portfolio's average net assets for 2016, except as indicated in the footnotes appearing at the end of the table. Fees and expenses of the portfolios are not fixed or specified under the terms of the policies and may vary from year to year. These fees and expenses differ for each portfolio and reduce the investment return of each portfolio. Therefore, they also indirectly reduce the return you will earn on any Separate Account investment options you select.
The JHVIT and the PIMCO Trust are so-called “series” type mutual funds and each is registered under the Investment Company Act of 1940 (“1940 Act”) as an open-end management investment company. John Hancock Investment Management Services, LLC (“JHIMS”) provides investment advisory services to the Trust and receives investment management fees for doing so. JHIMS pays a portion of its investment management fees to other firms that manage the Trust’s portfolios. We are affiliated with JHIMS and may indirectly benefit from any investment management fees JHIMS retains. The PIMCO VIT All Asset portfolio of the PIMCO Trust receives investment advisory services from Pacific Investment Management Company LLC (“PIMCO”) and pays investment management fees to PIMCO.
Each of the American Asset Allocation, American Global Growth, American Growth, American Growth-Income, American International and American New World portfolios invests in Series 1 shares of the corresponding investment portfolio of the Trust. The American Asset Allocation, American Global Growth, American Growth, American Growth-Income, American International and American New World portfolios (“American Portfolios”) operate as “feeder funds,” which means that the portfolios do not buy investment securities directly. Instead, they invest in a “master fund” which in turn purchases investment securities. Each of the American feeder fund portfolios has the same investment objective and limitations as its master fund. The prospectus for the American Fund master fund is included with the prospectuses for the underlying funds. We pay American Funds Distributors, Inc., the principal underwriter for the American Funds Insurance Series, a percentage of some or all of the amounts allocated to the American Portfolios of the Trust for the marketing support services it provides.
The portfolios pay us or certain of our affiliates compensation for some of the distribution, administrative, shareholder support, marketing and other services we or our affiliates provide to the portfolios. Compensation payments may be made by a portfolio’s investment adviser or its affiliates. The compensation payments are based on a percentage of the assets of the portfolios attributable to the variable insurance products that we and our affiliates issue. These percentages may differ from portfolio to portfolio and among classes of shares within a portfolio. In some cases, the compensation is derived from the Rule 12b-1 fees that are deducted from a portfolio’s assets for the services we or our affiliates provide to that portfolio. These compensation payments do not, however, result in any charge to you in addition to what is shown in the Fee Tables.
The following table provides a general description of the portfolios that underlie the variable investment options we make available under the policy. You bear the investment risk of any portfolio you choose as an investment option for your policy. You can find a full description of each portfolio, including the investment objectives, policies, restrictions, and risks, in the prospectus for that portfolio. You should read the portfolio’s prospectus carefully before investing in the corresponding variable investment option.
The investment options in the Separate Account are not publicly traded mutual funds. The investment options are only available to you as investment options in the policies, or in some cases through other variable annuity contracts or variable life insurance policies issued by us or by other life insurance companies. In some cases, the investment options also may be available through participation in certain qualified pension or retirement plans. The portfolios' investment advisers and managers (i.e. subadvisers) may manage publicly traded mutual funds with similar names and investment objectives. However, the portfolios are not directly related to any publicly traded mutual fund. You should not compare the performance
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of any investment option described in this prospectus with the performance of a publicly traded mutual fund. The performance of any publicly traded mutual fund could differ substantially from that of any of the investment options of our Separate Account.
The portfolios available under the policies, the investment subadvisers (engaged by JHIMS or PIMCO) and the investment objective for each portfolio are described in the table below. For additional information regarding these portfolios’ investment objectives, policies and restrictions of and the risks relating to investment in the portfolios, please refer to the prospectus for the underlying portfolio.
Portfolio Subadviser Investment Objective
500 Index B John Hancock Asset Management, a division of Manulife Asset Management (North America) Limited To approximate the aggregate total return of a broad-based U.S. domestic equity market index.
Active Bond John Hancock Asset Management, a division of Manulife Asset Management (US) LLC To seek to provide income and capital appreciation.
Alpha Opportunities Wellington Management Company, LLP To seek to provide long-term total return.
American Asset Allocation Capital Research and Management Company (Adviser to the American Funds Insurance Series) To seek to provide high total return (including income and capital gains) consistent with preservation of capital over the long-term.
American Global Growth Capital Research and Management Company (Adviser to the American Funds Insurance Series) To seek to provide long-term growth of capital.
American Growth Capital Research and Management Company (Adviser to the American Funds Insurance Series) To seek to provide growth of capital.
American Growth–Income Capital Research and Management Company (Adviser to the American Funds Insurance Series) To seek to provide growth of capital and income.
American International Capital Research and Management Company (Adviser to the American Funds Insurance Series) To seek to provide long-term growth of capital.
American New World Capital Research and Management Company (Adviser to the American Funds Insurance Series) To seek to provide long-term capital appreciation.
Blue Chip Growth T. Rowe Price Associates, Inc. To seek to provide long-term growth of capital. Current income is a secondary objective.
Bond John Hancock Asset Management, a division of Manulife Asset Management (US) LLC To seek to provide income and capital appreciation.
Capital Appreciation Jennison Associates LLC To seek to provide long-term growth of capital.
Capital Appreciation Value T. Rowe Price Associates, Inc. To seek to provide long-term capital appreciation.
Core Bond Wells Capital Management, Incorporated To seek to provide total return consisting of income and capital appreciation.
Core Strategy John Hancock Asset Management, a division of Manulife Asset Management (US) LLC; and John Hancock Asset Management, a division of Manulife Asset Management (North America) Limited To seek to provide long-term growth of capital. Current income is also a consideration.
Emerging Markets Value Dimensional Fund Advisors LP To seek to provide long-term capital appreciation.
Equity Income T. Rowe Price Associates, Inc. To seek to provide substantial dividend income and also long-term growth of capital.
Financial Industries John Hancock Asset Management, a division of Manulife Asset Management (US) LLC To seek to provide growth of capital.
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Portfolio Subadviser Investment Objective
Fundamental All Cap Core John Hancock Asset Management, a division of Manulife Asset Management (US) LLC To seek to provide long-term growth of capital.
Fundamental Large Cap Value John Hancock Asset Management, a division of Manulife Asset Management (US) LLC To seek to provide long-term capital appreciation.
Global Templeton Global Advisors Limited To seek to provide long-term capital appreciation.
Global Bond Pacific Investment Management Company LLC To seek to provide maximum total return, consistent with preservation of capital and prudent investment management.
Health Sciences T. Rowe Price Associates, Inc. To seek to provide long-term capital appreciation.
High Yield Western Asset Management Company To seek to provide an above-average total return over a market cycle of 3 to 5 years, consistent with reasonable risk.
International Equity Index B SSGA Funds Management, Inc. To seek to track the performance of a broad-based equity index of foreign companies primarily in developed countries and, to a lesser extent, in emerging markets.
International Growth Stock Invesco Advisers, Inc. To seek to provide long-term growth of capital.
International Small Company Dimensional Fund Advisors LP To seek to provide long-term capital appreciation.
International Value Templeton Investment Counsel, LLC To seek to provide long-term growth of capital.
Investment Quality Bond Wellington Management Company LLP To seek to provide a high level of current income consistent with the maintenance of principal and liquidity.
Lifestyle Aggressive MVP John Hancock Asset Management, a division of Manulife Asset Management (US) LLC; and John Hancock Asset Management, a division of Manulife Asset Management (North America) Limited To seek to provide long-term growth of capital while seeking to both manage the volatility of return and limit the magnitude of portfolio losses.
Lifestyle Balanced MVP John Hancock Asset Management, a division of Manulife Asset Management (US) LLC; and John Hancock Asset Management, a division of Manulife Asset Management (North America) Limited To seek to provide growth of capital and current income while seeking to both manage the volatility of return and limit the magnitude of portfolio losses.
Lifestyle Conservative MVP John Hancock Asset Management, a division of Manulife Asset Management (US) LLC; and John Hancock Asset Management, a division of Manulife Asset Management (North America) Limited To seek to provide current income and growth of capital while seeking to both manage the volatility of return and limit the magnitude of portfolio losses.
Lifestyle Growth MVP John Hancock Asset Management, a division of Manulife Asset Management (US) LLC; and John Hancock Asset Management, a division of Manulife Asset Management (North America) Limited To seek to provide long-term growth of capital while seeking to both manage the volatility of return and limit the magnitude of portfolio losses.
Lifestyle Growth PS John Hancock Asset Management, a division of Manulife Asset Management (US) LLC; and John Hancock Asset Management, a division of Manulife Asset Management (North America) Limited To seek to provide long-term growth of capital. Current income is also a consideration.
Lifestyle Moderate MVP John Hancock Asset Management, a division of Manulife Asset Management (US) LLC; and John Hancock Asset Management, a division of Manulife Asset Management (North America) Limited To seek to provide current income and growth of capital while seeking to both manage the volatility of return and limit the magnitude of portfolio losses.
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Portfolio Subadviser Investment Objective
Mid Cap Index John Hancock Asset Management, a division of Manulife Asset Management (North America) Limited To seek to approximate the aggregate total return of a medium-capitalization U.S. domestic equity market index.
Mid Cap Stock Wellington Management Company, LLP To seek to provide long-term growth of capital.
Mid Value T. Rowe Price Associates, Inc. To seek to provide long-term capital appreciation.
Money Market John Hancock Asset Management, a division of Manulife Asset Management (US) LLC To seek to obtain maximum current income consistent with preservation of principal and liquidity. Certain market conditions may cause the return of the portfolio to become low or possibly negative.
PIMCO VIT All Asset (a series of PIMCO Variable Insurance Trust) (only Class M is available) Pacific Investment Management Company LLC To seek to provide maximum real return, consistent with preservation of real capital and prudent investment management.
Real Estate Securities Deutsche Investment Management Americas Inc. To seek to provide a combination of long-term capital appreciation and current income.
Science & Technology Allianz Global Investors U.S. LLC; and T. Rowe Price Associates, Inc. To seek to provide long-term growth of capital. Current income is incidental to the portfolio’s objective.
Short Term Government Income John Hancock Asset Management, a division of Manulife Asset Management (US) LLC To seek to provide a high level of current income consistent with preservation of capital. Maintaining a stable share price is a secondary goal.
Small Cap Growth Wellington Management Company LLP To seek to provide long-term capital appreciation.
Small Cap Index John Hancock Asset Management, a division of Manulife Asset Management (North America) Limited To seek to approximate the aggregate total return of a small-capitalization U.S. domestic equity market index.
Small Cap Opportunities Dimensional Fund Advisors LP; and Invesco Advisers, Inc. To seek to provide long-term capital appreciation.
Small Cap Value Wellington Management Company LLP To seek to provide long-term capital appreciation.
Small Company Value T. Rowe Price Associates, Inc. To seek to provide long-term growth of capital.
Strategic Income Opportunities John Hancock Asset Management, a division of Manulife Asset Management (US) LLC To seek to provide a high level of current income.
Total Bond Market B John Hancock Asset Management, a division of Manulife Asset Management (US) LLC To seek to track the performance of the Bloomberg Barclays U.S. Aggregate Bond Index.*
Total Stock Market Index John Hancock Asset Management, a division of Manulife Asset Management (North America) Limited To seek to approximate the aggregate total return of a broad U.S. domestic equity market index.
Ultra Short Term Bond John Hancock Asset Management, a division of Manulife Asset Management (US) LLC To seek to provide a high level of current income consistent with the maintenance of liquidity and the preservation of capital.
Utilities Massachusetts Financial Services Company To seek to provide capital growth and current income (income above that available from the portfolio invested entirely in equity securities).
Value Invesco Advisers, Inc. To seek to provide an above-average total return over a market cycle of 3 to 5 years, consistent with reasonable risk.
    
*   The U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market, including Treasuries, government-related and corporate securities, MBS (agency fixed-rate and hybrid ARM pass throughs), ABS, and CMBS.
If the shares of a portfolio are no longer available for investment or in our judgment investment in a portfolio becomes inappropriate, we may eliminate the shares of a portfolio and substitute shares of another portfolio of the Trust or another open-end registered investment company. Substitution may be made with respect to both existing investments and the investment of future purchase payments. However, we will make no such substitution without first notifying you and obtaining approval of the appropriate insurance regulatory authorities and the SEC (to the extent required by the 1940 Act).
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Valuation
We will purchase and redeem series fund shares for the Separate Account at their net asset value without any sales or redemption charges. Shares of a series fund represent an interest in one of the funds of the series fund which corresponds to a subaccount of the Separate Account. Any dividend or capital gains distributions received by the Separate Account will be reinvested in shares of that same fund at their net asset value as of the dates paid.
On each business day, shares of each series fund are purchased or redeemed by us for each subaccount based on, among other things, the amount of premiums allocated to the subaccount, distributions reinvested, and transfers to, from and among subaccounts, all to be effected as of that date. Such purchases and redemptions are effected at each series fund's net asset value per share determined for that same date. A “business day” is any date on which the New York Stock Exchange is open for trading. We compute policy values for each business day as of the close of that day (usually 4:00 p.m. Eastern time).
Voting interest
We will vote shares of the portfolios held in the Separate Account at the shareholder meetings according to voting instructions timely received from persons having the voting interest under the policies. We will determine the number of portfolio shares for which voting instructions may be given not more than 90 days prior to the meeting. Proxy material will be distributed to each person having the voting interest under the policy together with appropriate forms for giving voting instructions. We will vote all portfolio shares that we hold in the Separate Account for policy owners in proportion to the instructions timely received by us from policy owners from all our Separate Accounts that are registered with the SEC under the 1940 Act. We will vote all portfolio shares that we otherwise are entitled to vote (including our own shares) on any matter in proportion to the instructions timely received by us and any affiliated insurance companies with respect to the matter from policy owners in Separate Accounts of these insurance companies that are registered with the SEC under the 1940 Act. The effect of this proportional voting is that a small number of policy owners can determine the outcome of a vote.
We determine the number of a series fund's shares held in a subaccount attributable to each owner by dividing the amount of a policy's investment account value held in the subaccount by the net asset value of one share in the series fund. Fractional votes will be counted. We determine the number of shares as to which the owner may give instructions as of the record date for a series fund's meeting. Owners of policies may give instructions regarding the election of the Board of Trustees or Board of Directors of a series fund, ratification of the selection of independent auditors, approval of series fund investment advisory agreements and other matters requiring a shareholder vote. We will furnish owners with information and forms to enable owners to give voting instructions. However, we may, in certain limited circumstances permitted by the SEC's rules, disregard voting instructions. If we do disregard voting instructions, you will receive a summary of that action and the reasons for it in the next semi-annual report to owners.
The voting privileges described above reflect our understanding of applicable Federal securities law requirements. To the extent that applicable law, regulations or interpretations change to eliminate or restrict the need for such voting privileges, we reserve the right to proceed in accordance with any such revised requirements. We also reserve the right, subject to compliance with applicable law, including approval of owners if so required, (1) to transfer assets determined by John Hancock NY to be associated with the class of policies to which your policy belongs from the Separate Account to another separate account or subaccount, (2) to deregister the Separate Account under the 1940 Act, (3) to substitute for the fund shares held by a subaccount any other investment permitted by law, and (4) to take any action necessary to comply with or obtain any exemptions from the 1940 Act. Any such change will be made only if, in our judgment, the change would best serve the interests of owners of policies in your policy class or would be appropriate in carrying out the purposes of such policies. We would notify owners of any of the foregoing changes and to the extent legally required, obtain approval of affected owners and any regulatory body prior thereto. Such notice and approval, however, may not be legally required in all cases.
Description of John Hancock NY
John Hancock NY is a stock life insurance company organized under the laws of New York on February 10, 1992. Our principal office is located at 100 Summit Lake Drive, Second Floor, Valhalla, New York 10595. We are a wholly-owned subsidiary of John Hancock Life Insurance Company (U.S.A.). Our ultimate parent is Manulife Financial Corporation (“MFC”), a publicly traded company based in Toronto, Canada. MFC is the holding company of The Manufacturers Life Insurance Company and its subsidiaries, collectively known as Manulife Financial. However, neither John Hancock NY nor any of its affiliated companies guarantees the investment performance of the Separate Account.
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We are ranked and rated by independent financial rating services, which may include Moody's, Standard & Poor's, Fitch and A.M. Best. The purpose of these ratings is to reflect the financial strength or claims-paying ability of the company, but they do not specifically relate to its products, the performance (return) of these products, the value of any investment in these products upon withdrawal or to individual securities held in any portfolio. These ratings do not apply to the safety and performance of the Separate Account.
Description of Separate Account B
The investment accounts shown on page 1 are in fact subaccounts of John Hancock Life Insurance Company of New York Separate Account B, a separate account operated by us under New York law. The Separate Account meets the definition of “separate account” under the Federal securities laws and is registered as a unit investment trust under the 1940 Act. Such registration does not involve supervision by the SEC of the management of the Separate Account or of us.
The Separate Account’s assets are our property. Each policy provides that amounts we hold in the Separate Account pursuant to the policies cannot be reached by any other persons who may have claims against us and can’t be used to pay any indebtedness of John Hancock NY other than those arising out of policies that use the Separate Account. Income, gains and losses credited to, or charged against, the Separate Account reflect the Separate Account's own investment experience and not the investment experience of John Hancock NY's other assets. John Hancock NY is obligated to pay all amounts promised to policy owners under the policies.
New subaccounts may be added and made available to policy owners from time to time. Existing subaccounts may be modified or deleted at any time.
The fixed account
Our obligations under any fixed account are backed by our general account assets. Our general account consists of assets owned by us other than those in the Account and in other separate accounts that we may establish. Subject to applicable law, we have sole discretion over the investment of assets of the general account and policy owners do not share in the investment experience of, or have any preferential claim on, those assets. Instead, we guarantee that the policy value allocated to any fixed account will accrue interest daily at an effective annual rate that we determine without regard to the actual investment experience of the general account. We currently offer only one fixed account—the standard fixed account. The effective annual rate we declare for the fixed account will never be less than 2%. We reserve the right to offer one or more additional fixed accounts with characteristics that differ from those of the current fixed account, but we are under no obligation to do so.
Because of exemptive and exclusionary provisions, interests in our fixed account have not been and will not be registered under the Securities Act of 1933 (“1933 Act”) and our general account has not been registered as an investment company under the 1940 Act. Accordingly, neither the general account nor any interests therein are subject to the provisions of these acts, and we have been advised that the staff of the SEC has not reviewed the disclosure in this prospectus relating to any fixed account. Disclosure regarding fixed accounts, however, is subject to certain generally-applicable provisions of the Federal securities laws relating to accuracy and completeness of statements made in prospectuses.
Effective July 27, 2010, we will automatically issue all policies described in this prospectus with the Allocations and Transfers Endorsement. This endorsement limits the combined amount of premiums and policy value that may be allocated and/or transferred to all fixed accounts under your policy (and certain other policies), as described under the “Policy value - Transfers of existing policy value” section of your prospectus.
The death benefit
In your application for the policy, you will tell us how much life insurance coverage you want on the life of the insured person. This is called the “Total Face Amount.” Total Face Amount is composed of the Base Face Amount and any Supplemental Face Amount you elect. The Supplemental Face Amount you can have generally cannot exceed 900% of the Base Face Amount at the Issue Date. Thereafter, increases to the Supplemental Face Amount cannot exceed 400% of the Total Face Amount at the Issue Date. There are a number of factors you should consider in determining whether to elect coverage in the form of Base Face Amount or in the form of Supplemental Face Amount. These factors are discussed under “Base Face Amount vs. Supplemental Face Amount” below.
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When the insured person dies, we will pay the death benefit minus any outstanding policy debt and unpaid fees and charges. There are two ways of calculating the death benefit. You must choose which one you want in the application. The two death benefit options are described below.
•  Option 1 - The death benefit will equal the greater of (1) the Total Face Amount plus any amount payable under a supplementary benefit rider, or (2) the minimum death benefit (as described below).
•  Option 2 - The death benefit will equal the greater of (1) the Total Face Amount plus any amount payable under a supplementary benefit rider, plus the policy value on the date of death, or (2) the minimum death benefit.
For the same premium payments, the death benefit under Option 2 will tend to be higher than the death benefit under Option 1. On the other hand, the monthly insurance charge will be higher under Option 2 to compensate us for the additional insurance risk. Because of that, the policy value will tend to be higher under Option 1 than under Option 2 for the same premium payments.
Limitations on payment of death benefit
If the insured person commits suicide within two years from the Issue Date of the policy, the amount payable will be equal to the premiums paid, less the amount of any policy debt on the date of death, and less any withdrawals.
Also if an application misstated the age or sex of the insured person, we will adjust, if necessary, the Base Face Amount, any Supplemental Face Amount, and every other benefit to that which would have been purchased at the correct age or sex by the most recent cost of insurance charge.
Base Face Amount vs. Supplemental Face Amount
As noted above, you should consider a number of factors in determining whether to elect coverage in the form of Base Face Amount or in the form of Supplemental Face Amount. Some of these factors include the following:
•  As shown in the Fee Tables, there is a charge per $1000 of Base Face Amount. This means for the same amount of Total Face Amount, your Base Face Amount charges deducted from policy value will be higher if you elect greater proportions of Base Face Amount at issue versus Supplemental Face Amount.
•  However, if you elect greater proportions of Supplemental Face Amount coverage at issue, the guaranteed limit upon the asset-based risk charge we provide will be higher. As shown in the Fee Tables, the “maximum” guaranteed charge of 0.14% of policy value is for a policy with 90% Supplemental Face Amount at issue. A policy with 50% Supplemental Face Amount at issue would have a guaranteed charge of 0.09%; whereas a policy with 100% Base Face Amount at issue would have a guaranteed charge of 0.03%. Please see the Fee Tables for a description of the guaranteed and current asset-based risk charges in all policy years. The asset-based risk charge percentages assessed on a current basis may be the same for both Base Face Amount and Supplemental Face Amount.
•  Also, after the insured person reaches or would have reached age 121, any Supplemental Face Amount will terminate. If your priority is to maximize the death benefit when the insured person reaches or would have reached age 121, then you may wish to maximize the proportion of the Base Face Amount.
The charges applied to Base Face Amount will tend to result in lower cash value accumulation, or alternatively higher premium payments, for the same amount of death benefit compared to Supplemental Face Amount coverage. However, if the Company should increase the asset-based risk charges under your policy to the maximum limits, the higher guaranteed asset-based risk charge resulting from a higher amount of Supplemental Face Amount at issue could increase the policy’s risk of lapse, requiring additional premium payments. You should also consider that the amount of compensation paid to the selling broker-dealer will be higher if you elect greater proportions of Base Face Amount coverage at issue.
Ultimately, individual needs and objectives vary. You should discuss your individual needs with your registered representative.
The minimum death benefit
In order for a policy to qualify as life insurance under Federal tax law, there has to be a minimum amount of insurance in relation to policy value. There are two tests that can be applied under Federal tax law—the “guideline premium test” and the “cash value accumulation test.” You must elect which test you wish to have applied at issue. Once elected, the test cannot be changed without our approval.
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Under the guideline premium test, we compute the minimum death benefit each business day by multiplying the policy value on that date by the death benefit factor applicable on that date. Factors for some ages are shown in the table below:
Attained Age   Applicable Factor
40 and under
   250%
45
   215%
50
   185%
55
   150%
60
   130%
65
   120%
70
   115%
75
   105%
90
   105%
95 and above
   100%
A table showing the factor for each age will appear in the policy.
Under the cash value accumulation test, we compute the minimum death benefit each business day by multiplying the policy value on that date by the death benefit factor applicable on that date. The factor decreases as attained age increases. A table showing the factor for each age will appear in the policy.
The cash value accumulation test may be preferable if you want to fund the policy so that the minimum death benefit will increase earlier than would be required under the guideline premium test, or if you want to fund the policy at the “7 pay” limit for the full seven years (see “Tax considerations”).
To the extent that the calculation of the minimum death benefit under the selected life insurance qualification test causes the death benefit to exceed our limits, we reserve the right to return premiums or distribute a portion of the policy value so that the resulting amount of insurance is maintained within our limits. Alternatively, if we should decide to accept the additional amount of insurance, we may require additional evidence of insurability.
When the insured person reaches 121
At and after the policy anniversary nearest the insured person's 121st birthday, the following will occur:
•  We will stop any monthly deduction charges.
•  We will stop accepting any premium payments.
•  We will no longer process withdrawals.
•  We will continue to credit interest to a fixed account.
•  We will continue to accept loan repayments on existing loans and interest will continue to be charged if there is an outstanding loan.
•  Any Supplemental Face Amount will terminate (see “Base Face Amount vs. Supplemental Face Amount”).
Requesting an increase in coverage
After the first policy year, you may make a written request for an unscheduled increase in Supplemental Face Amount. We must receive your written request within two months of your next policy anniversary. Generally, each such increase must be at least $50,000. However, you will have to provide us with evidence that the insured person qualifies for the same risk classification that applied to them at issue. Generally, any increase will be effective on the next policy anniversary following the date we approve the request. Any unscheduled increase in Supplemental Face Amount after issue would first require that you terminate the Return of Premium Rider you may have elected at issue.
Requesting a decrease in coverage
After the first policy year, we may approve a reduction in the Base Face Amount or the Supplemental Face Amount, but only if:
•  the remaining Total Face Amount will be at least $100,000,
•  the remaining Base Face Amount will be at least $50,000, and
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•  the remaining Total Face Amount will at least equal the minimum required by the tax laws to maintain the policy’s life insurance status.
An approved decrease will take effect on the monthly deduction date on or next following the date we approve the request. We reserve the right to require that the Supplemental Face Amount be fully depleted before the Base Face Amount can be reduced.
Change of death benefit option
The death benefit option may be changed from Option 2 to Option 1 after the first policy year. If you request in writing, and we approve a change from Option 2 to Option 1, your Face Amount after the change will equal your Face Amount before the change plus the policy value as of the effective date of the change. If you change from Option 2 to Option 1, your death benefit will change from one that may increase over time due to the investment experience of the underlying investment accounts to one that is a level death benefit. Changing from Option 2 to Option 1 can also lower the monthly Cost of Insurance charge since this charge is lowered when the Net Amount At Risk is reduced; all other charges under the policy would remain the same. We reserve the right to limit a request for a change if the change would cause the policy to fail to qualify as life insurance for tax purposes.
A change in the death benefit option from Option 2 to Option 1 will result in a change in the policy's Total Face Amount, in order to avoid any change in the amount of the death benefit. The new Total Face Amount will be equal to the Total Face Amount prior to the change plus the policy value as of the date of the change. The change will take effect on the monthly deduction date on or next following the date the written request for the change is received at our Service Office.
Tax consequences of coverage changes
If you change the death benefit option, the Federal tax law test (“guideline premium test” or “cash value accumulation test”) that you elected at issue will continue to apply. Please read “The minimum death benefit” for more information about these Federal tax laws tests.
A change in the death benefit option or Total Face Amount will often change the policy's limits under the Federal tax law test that you elected. To avoid having the policy cease to qualify as life insurance for tax purposes, we reserve the right to (i) refuse or limit a change in the death benefit option or Total Face Amount and (ii) change the Guideline Single Premium or Guideline Level Premium, as applicable. Please read “Tax considerations” to learn about possible tax consequences of changing your insurance coverage under the policy.
Your beneficiary
You name your beneficiary when you apply for the policy. The beneficiary is entitled to the proceeds we pay following the insured person's death. You may change the beneficiary during the insured person’s lifetime. Such a change requires the consent of any named irrevocable beneficiary. A new beneficiary designation will not affect any payments we make before we receive it. If no beneficiary is living when the insured person dies, we will pay the insurance proceeds to the owner or the owner’s estate.
Ways in which we pay out policy proceeds
You may choose to receive proceeds from the policy as a single sum. This includes proceeds that become payable because of death or surrender. Alternatively, you can select to have proceeds of $1,000 or more applied to any of the other payment options we may offer at the time. You cannot choose an option if the monthly payments under the option would be less than $50. We will issue a supplementary agreement when the proceeds are applied to any alternative payment option. That agreement will spell out the terms of the option in full. If no alternative payment option is chosen, proceeds may be paid as a single sum.
Changing a payment option
You can change the payment option at any time before the proceeds are payable. If you haven’t made a choice, the payee of the proceeds has a prescribed period in which he or she can make that choice.
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Tax impact of payment option chosen
There may be tax consequences to you or your beneficiary depending upon which payment option is chosen. You should consult with a qualified tax adviser before making that choice.
Premiums
Planned premiums
The Policy Specifications page of your policy will show the “Planned Premium” for the policy. You choose this amount in the policy application. You will also choose how often to pay premiums—annually, semi-annually, quarterly or monthly. The premium reminder notice we send you is based on the amount and period you choose. However, payment of Planned Premiums is not necessarily required. You need only pay enough premium to keep the policy in force (see “Lapse and reinstatement”).
Minimum initial premium
The Minimum Initial Premium is set forth in the Policy Specifications page of your policy. After the payment of the initial premium, premiums may be paid at any time and in any amount until the insured person's attained age 121, subject to the need to pay enough premium to keep the policy in force, and to the limitations on maximum premium amount described below.
Maximum premium payments
Federal tax law limits the amount of premium payments you can make relative to the amount of your policy’s insurance coverage. We will not knowingly accept any amount by which a premium payment exceeds this limit. If you exceed certain other limits, the law may impose a penalty on amounts you take out of your policy. More discussion of these tax law requirements is provided under “Tax considerations.”
Large premium payments may expose us to unanticipated investment risk. In addition, in order to limit our investment risk exposure under certain market conditions, we may refuse to accept additional premium payments. This may be the case, for example, in an environment of decreasing interest rates, where we may not be able to acquire investments for our general account that will sufficiently match the liabilities we are incurring under our fixed account guarantees. Excessive allocations may also interfere with the effective management of our variable investment account portfolios, if we are unable to make an orderly investment of the additional premium into the portfolios. Also, we may refuse to accept or limit an amount of premium if the amount of the premium would increase our insurance risk exposure, and the insured person doesn’t provide us with adequate evidence that he or she continues to meet our requirements for issuing insurance.
We will notify you in writing of our refusal to accept premium under these provisions within three days following the date that it is received by us, and will promptly thereafter take the necessary steps to return the premium to you. Notwithstanding the foregoing limits on the premium that we will accept, we will not refuse to accept any premium necessary to prevent the policy from terminating.
Processing premium payments
No premiums will be accepted prior to our receipt of a completed application at our Service Office. All premiums received prior to the Issue Date of the policy will be held in the general account and credited with interest from the date of receipt at the rate then being earned on amounts allocated to the Money Market investment account. All premiums received on or after the Issue Date, but prior to the Allocation Date, will be held in the Money Market investment account. The “Allocation Date” of the policy is the tenth day after the Issue Date. The Issue Date is shown on the Policy Specifications page of the policy. On the Allocation Date, the premiums paid plus interest credited, if any, will be allocated among the investment accounts or the fixed account in accordance with the policy owner's instructions.
Any premium received on or after the Allocation Date will be allocated among investment accounts or the fixed account as of the business day on or next following the date the premium is received at the Service Office. Monthly deductions are normally due on the Policy Date and at the beginning of each policy month thereafter. However, if the monthly deductions are due prior to the Contract Completion Date, they will be deducted from policy value on the Contract Completion Date instead of the dates they were due (see “Procedures for issuance of a policy” for the definition of “Contract Completion Date”).
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Payment of premiums will not guarantee that the policy will stay in force. Conversely, failure to pay premiums will not necessarily cause the policy to lapse.
Ways to pay premiums
If you pay premiums by check or money order, they must be drawn on a U.S. bank in U.S. dollars and made payable to “John Hancock.” We will not accept credit card checks. We will not accept starter or third party checks if they fail to satisfy our administrative requirements. Premiums after the first must be sent to the John Hancock NY Service Office at the appropriate address shown on the back cover of this prospectus. We will also accept premiums by wire or by exchange from another insurance company.
Lapse and reinstatement
Lapse
A policy will go into default if at the beginning of any policy month the policy's net cash surrender value would be zero or below after deducting the monthly deductions then due. Therefore, a policy could lapse eventually if increases in policy value (prior to deduction of policy charges) are not sufficient to cover policy charges. A lapse could have adverse tax consequences as described under “Tax considerations.” We will notify you of the default and will allow a 61 day grace period in which you may make a premium payment sufficient to bring the policy out of default. The required payment will be equal to the amount necessary to bring the net cash surrender value to zero, if it was less than zero on the date of default, plus an amount equal to three times the monthly deductions due on the date of default. If the required payment is not received by the end of the grace period, the policy will terminate (i.e., “lapse”) with no value.
Death during grace period
If the insured person should die during the grace period, the policy value used in the calculation of the death benefit will be the policy value as of the date of default and the death benefit will be reduced by any outstanding monthly deductions due at the time of death.
Reinstatement
By making a written request, you can reinstate a policy that has gone into default and terminated at any time within the three-year period following the date of termination subject to the following conditions:
(a)  You must provide to us evidence of the insured person's insurability that is satisfactory to us; and
(b)  You must pay a premium equal to the amount that was required to bring the policy out of default immediately prior to termination, plus the amount needed to keep the policy in force for at least the next three policy months.
If the reinstatement is approved, the date of reinstatement will be the later of the date we approve your request or the date the required payment is received at our Service Office. The policy value on the date of reinstatement, prior to the crediting of any Premium paid in connection with the reinstatement, will be equal to the policy value on the date the policy terminated. Any policy debt not paid upon termination of a policy will be reinstated if the policy is reinstated.
The incontestability provisions will apply from the effective date of reinstatement. A surrendered policy cannot be reinstated.
The policy value
We allocate your premium as described under “Processing premium payments.” There are no deductions taken at the time you make a payment. However, a deferred premium charge will be calculated and included in the monthly deductions (see “Description of charges at the policy level”).
Over time, the amount you've invested in any investment account will increase or decrease the same as if you had invested the same amount directly in the corresponding underlying portfolio and had reinvested all portfolios' dividends and distributions in additional portfolio shares, except that we will deduct certain additional charges which will reduce your policy value. We describe these charges under “Description of charges at the policy level.” Starting in policy year 11, we may also credit your policy value with an asset credit (see “Asset credit”).
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We calculate the unit values for each investment account once every business day as of the close of trading on the New York Stock Exchange, usually 4:00 p.m. Eastern time. Sales and redemptions within any investment account will be transacted using the unit value next calculated after we receive your request either in writing or other form that we specify. If we receive your request before the close of our business day, we'll use the unit value calculated as of the end of that business day. If we receive your request at or after the close of our business day, we'll use the unit value calculated as of the end of the next business day. If a scheduled transaction falls on a day that is not a business day, we'll process it as of the end of the next business day.
The amount you've invested in the fixed account will earn interest at the rates we declare from time to time. For the fixed account, we guarantee that this rate will be at least 2%. If you want to know what the current declared rate is for the fixed account, just call or write to us. The asset-based risk charge only applies to that portion of the policy value held in the investment accounts. The charge determined does not apply to the fixed account. Otherwise, the policy level charges applicable to the fixed account are the same as those applicable to the investment accounts. We reserve the right to offer one or more additional fixed accounts with characteristics that differ from those of the current fixed account, but we are under no obligation to do so.
Asset credit
Starting in the eleventh policy year, we will credit your policy value monthly, on the date we calculate your monthly deductions, with an amount equal to the percentage credit listed below multiplied by the policy value in your investment accounts on this date. The asset credit does not apply to the loan account or the fixed account. The asset credit percentage is 0.01666% per month in policy year 11 and thereafter and ceasing at attainment of age 121. We add the credit to the same investment accounts from which we take your monthly deductions.
Allocation of future premium payments
At any time, you may change the accounts (fixed or investment) in which future premium payments will be invested. You make the original allocation in the application for the policy. The percentages you select must be in whole numbers and must total 100%.
Transfers of existing policy value
You may also transfer your existing policy value from one account (fixed or investment) to another, subject to the limitations discussed below. To do so, you must tell us how much to transfer, either as a whole number percentage or as a specific dollar amount. A confirmation of each transfer will be sent to you. Without our approval, the maximum amount you may transfer to or from any account (fixed or investment) in any policy year is $1,000,000.
Marketing timing and disruptive trading practices
Variable investment accounts in variable life insurance products can be a prime target for abusive transfer activity because these products value their investment accounts on a daily basis and allow transfers among investment accounts without immediate tax consequences. As a result, some investors may seek to frequently transfer into and out of investment accounts or to make large transfers in reaction to market news or to exploit a perceived pricing inefficiency. Whatever the reason, long-term investors in an investment account can be harmed by large or frequent transfer activity. For example, such activity may expose the investment account's underlying portfolio to increased portfolio transaction costs and/or disrupt the portfolio manager's ability to effectively manage the portfolio's investments in accordance with the portfolio's investment objectives and policies. This could include causing the portfolio to maintain higher levels of cash than would otherwise be the case, or liquidating investments prematurely. Accordingly, frequent or large transfers may result in dilution with respect to interests held for long-term investment and adversely affect policy owners, beneficiaries and the underlying portfolios.
To discourage market timing and disruptive trading activity, we impose restrictions on transfers and reserve the right to change, suspend or terminate telephone, facsimile and internet transaction privileges (see “How you communicate with us”). We also reserve the right to impose a fee of up to $25 for any transfer beyond an annual limit (which will not be less than twelve). No transfer fee will be imposed on any transfer from an investment account into a fixed account if the transfer occurs during the following periods:
•  within 18 months after the policy's Issue Date, or
•  within 60 days after the later of the effective date of a material change in the investment objectives of any investment account or the date you are notified of the change.
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In addition to the actions described above, we also reserve the right to take other actions at any time to restrict trading, including, but not limited to: (i) restricting the number of transfers made during a defined period, (ii) restricting the dollar amount of transfers, (iii) restricting transfers into and out of certain investment accounts, (iv) restricting the method used to submit transfers, and (v) deferring a transfer at any time we are unable to purchase or redeem shares of the underlying portfolio.
We may also impose additional administrative conditions upon, or prohibit a transfer request made by a third party giving instructions on behalf of multiple policies, whether owned by the same owner or different owners. If you engage a third party for asset allocation services, then you may be subject to these transfer restrictions because of the actions of that party in providing those services. We will notify the third party you have engaged if we exercise this right. While we seek to identify and prevent disruptive trading activity, it may not always be possible to do so. Therefore, no assurance can be given that the restrictions we impose will be successful in preventing all disruptive trading and avoiding harm to long-term investors.
Limitations on transfers to or from an investment account. Our current practice is to restrict transfers into or out of investment accounts to two per calendar month (except with respect to those policies described in the following paragraphs). For purposes of this restriction, and in applying the limitation on the number of free transfers, any transfers made during the period from the opening of a business day (usually 9:00 a.m. Eastern time) to the close of that business day (usually 4:00 p.m. Eastern time) are considered one transfer. You may, however, transfer to the Money Market investment account even if the two transfers per month limit has been reached, but only if 100% of the account value in all investment accounts is transferred to the Money Market investment account. If such a transfer to the Money Market investment account is made, then for the 30 calendar day period after such transfer no transfers from the Money Market investment account to any other accounts (fixed or investment) may be made. If your policy offers a dollar cost averaging or automatic asset allocation rebalancing program, any transfers pursuant to such program are not considered transfers subject to these restrictions on frequent trading. The restrictions described in this paragraph will be applied uniformly to all policy owners subject to the restrictions.
Policies such as yours may be purchased by a corporation or other entity as a means to informally finance the liabilities created by an employee benefit plan, and to this end the entity may aggregately manage the policies purchased to match its liabilities under the plan. Policies sold under these circumstances are subject to special transfer restrictions. In lieu of the two transfers per month restriction, we will allow the policy owner under these circumstances to rebalance the investment options in its policies within the following limits: (i) during the 10 calendar day period after any policy values are transferred from one investment account into a second investment account, the values can only be transferred out of the second investment account if they are transferred into the Money Market investment account; and (ii) any policy values that would otherwise not be transferable by application of the 10 day limit described above and that are transferred into the Money Market investment account may not be transferred out of the Money Market investment account into any other accounts (fixed or investment) for 30 calendar days. The restrictions described in this paragraph will be applied uniformly to all policy owners subject to the restrictions.
Subject to our approval, we may offer policies purchased by a corporation or other entity that has purchased policies to match its liabilities under an employee benefit plan, as described above, the ability to electronically rebalance the investment options in its policies. Under these circumstances, in lieu of imposing any specific limit upon the number and timing of transfers, we will monitor aggregate trades among the subaccounts for frequency, pattern and size for potentially harmful investment practices. If we detect trading activity that we believe may be harmful to the overall operation of any investment account or underlying portfolio, we may impose conditions on policies employing electronic rebalancing to submit trades, including setting limits upon the number and timing of transfers, and revoking privileges to make trades by any means other than written communication submitted via U.S. mail.
While we seek to identify and prevent disruptive frequent trading activity, it may not always be possible to do so. Therefore no assurance can be given that the restrictions we impose will be successful in preventing all disruptive frequent trading and avoiding harm to long-term investors. The restrictions described in these paragraphs will be applied uniformly to all policy holders subject to the restrictions.
Rule 22c-2 under the 1940 Act requires us to provide tax identification numbers and other policy owner transaction information to the Trust or to other investment companies in which the Separate Account invests, at their request. An investment company will use this information to identify any pattern or frequency of investment account transfers that may violate their frequent trading policy. An investment company may require us to impose trading restrictions in addition to those described above if violations of their frequent trading policy are discovered.
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Limitations on transfers out of the fixed account. Transfers out of the fixed account option in any one policy year are limited to the greater of (i) the fixed account maximum transfer amount of $2,000, (ii) the fixed account maximum transfer percentage of 25% multiplied by the amount of the fixed account on the immediately preceding policy anniversary, or (iii) the amount transferred out of the fixed account during the previous policy year. Any transfer that involves a transfer out of the fixed account may not involve a transfer to the Money Market investment account.
We reserve the right to impose a minimum amount limit on transfers out of any fixed account. We also reserve the right to impose different restrictions on any additional fixed account that we may offer in the future.
We may waive the transfer restrictions on the fixed account. Please contact us or your John Hancock NY representative to find out if a waiver is currently in effect.
Yearly maximum for allocations and transfers to the fixed account. Effective July 27, 2010, we will automatically issue all policies described in this prospectus with the Allocations and Transfers Endorsement. This endorsement limits the combined amount of premiums and policy value under your policy (and certain other policies) that may be allocated and/or transferred to all fixed accounts to $1,000,000 during the most recent 12 calendar months.
The above limit applies in aggregate to all policies of the same plan name in which you have an ownership interest (including policies owned by entities associated with you) and/or for which premiums are paid by a single payor (including entities associated with such payor). Any excess over such limit will be allocated or transferred to your other investment accounts according to your most recent allocation instructions. Any exceptions to the above limit will be made pursuant to uniform standards applied to all policyholders subject to this restriction.
Yearly maximum for transfers to and from an investment account. Effective July 27, 2010, we will automatically issue all policies described in this prospectus with the Allocations and Transfers Endorsement. This endorsement limits the amount of policy value under your policy (and certain other policies) that may be transferred to or from an investment account to $1,000,000 during the most recent 12 calendar months.
The above limit applies in aggregate to all policies of the same plan name in which you have an ownership interest (including policies owned by entities associated with you) and/or for which premiums are paid by a single payor (including entities associated with such payor). Any exceptions to the above limit will be made pursuant to uniform standards applied to all policyholders subject to this restriction. For policies issued prior to July 27, 2010, the maximum amount you may transfer without our approval to or from any account in any policy year is $1,000,000 on a per policy basis.
Dollar cost averaging. We may offer policy owners a dollar cost averaging (“DCA”) program. Under the DCA program, you will designate an amount that will be transferred monthly from one investment account into any other investment account(s) or the fixed account. If insufficient funds exist to effect a DCA transfer, the transfer will not be effected and you will be so notified. No fee is charged for this program.
We reserve the right to cease to offer this program as of 90 days after written notice is sent to you.
Asset allocation balancer transfers. Under the asset allocation balancer program you will designate an allocation of policy value among investment accounts. We will move amounts among the investment accounts at specified intervals you select - annually, semi-annually, quarterly or monthly. A change to your premium allocation instructions will automatically result in a change in asset allocation balancer instructions so that the two are identical unless you either instruct us otherwise or have elected the dollar cost averaging program. No fee is charged for this program.
We reserve the right to cease to offer this program as of 90 days after written notice is sent to you.
Surrender and withdrawals
Surrender
You may surrender your policy in full at any time. If you do, we will pay you the policy value less any policy debt, and less any Surrender fee that applies (as described below). This is called your “net cash surrender value.” If you surrender your policy in connection with the purchase of a replacement policy, including a replacement intended to qualify as a tax free exchange under section 1035 of the Internal Revenue Code, there may also be a replacement fee deducted from the net cash surrender value. Also, if your policy is issued with the Surrender Fee Endorsement, we will deduct a Surrender fee if you surrender your policy during the first 7 policy years, provided the surrender is not subject to a Replacement fee (see “Description of charges at the policy level—Surrender fee”). You must return your policy when you request a surrender. We
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will process surrenders on the day we receive the surrender request (unless such day is not a business day, in which case we will process surrenders as of the business day next following the date of the receipt).
Withdrawals
After the first policy year, you may make a withdrawal of part of your net cash surrender value once in each policy month. Generally, each withdrawal must be at least $500. We will automatically reduce the policy value of your policy by the amount of the withdrawal. Unless otherwise specified by you, each account (fixed and investment) will be reduced in the same proportion as the policy value is then allocated among them. We will not permit a withdrawal if it would cause your net cash surrender value to fall below three months' worth of monthly deductions (see “Deductions from policy value”). We also reserve the right to refuse any withdrawal that would cause the policy's Total Face Amount to fall below $100,000 or the Base Face Amount to fall below $50,000. Also, if your policy is issued with the Surrender Fee Endorsement, there may be a pro-rata Surrender fee deducted from your policy value (see “Description of charges at the policy level—Surrender fee”).
Because it reduces the policy value, any withdrawal will reduce your death benefit under either Option 1 or Option 2 (see “The death benefit”). Under Option 1, such a withdrawal may also reduce the Total Face Amount. Generally, any such reduction in the Total Face Amount will be implemented by first reducing any Supplemental Face Amount then in effect. You should consider a number of factors in determining whether to continue coverage in the form of Base Face Amount or Supplemental Face Amount (see “Base Face Amount vs. Supplemental Face Amount”). If such a reduction in Total Face Amount would cause the policy to fail the Internal Revenue Code's definition of life insurance, we will not permit the withdrawal.
Policy loans
You may borrow from your policy at any time by completing a form satisfactory to us. The maximum amount you can borrow is the greater of (i) 90% of net cash surrender value and (ii) the amount determined as set out below.
•  We first determine the net cash surrender value of your policy.
•  We then subtract an amount equal to the monthly deductions then being deducted from policy value times the number of full policy months until the next policy anniversary.
•  We then multiply the resulting amount by the difference between the effective annual rate then being charged on loans and the effective annual rate then being credited on the loan account.
•  We then subtract the third item above from the second item above.
The minimum amount of each loan is $500. The interest charged on any loan is an effective annual rate of 3.75% in the first 10 policy years and 3.00% thereafter. However, we reserve the right to increase the percentage to 4.00% in the first ten policy years and 3.25% thereafter. Accrued interest will be added to the loan daily and will bear interest at the same rate as the original loan amount. Unless otherwise specified by you, the amount of the loan is deducted from the accounts (fixed and investment) in the same proportion as the policy value is then allocated among them. The amount of the loan is then placed in a special loan account. This special loan account will earn interest at an effective annual rate of 3.00%. The tax consequences of a loan interest credited differential of 0% are unclear. You should consult a tax adviser before effecting a loan to evaluate possible tax consequences. If we determine that a loan will be treated as a taxable distribution because of the differential between the loan interest rate and the rate being credited on the special loan account, we reserve the right to increase the rate charged on the loan to a rate that would, in our reasonable judgment, result in the transaction being treated as a loan under Federal tax law. The right to increase the rate charged on the loan is restricted in New York. Please see your John Hancock NY representative for details. We process policy loans as of the business day on or next following the day we receive the loan request.
Repayment of policy loans
You can repay all or part of a loan at any time. Each repayment will be allocated among the accounts as set out below.
•  The same proportionate part of the loan as was borrowed from any fixed account will be repaid to that fixed account.
•  The remainder of the repayment will be allocated among the accounts in the same way a new premium payment would be allocated (unless otherwise specified by you).
If you want a payment to be used as a loan repayment, you must include instructions to that effect. Otherwise, all payments will be assumed to be premium payments. We process loan repayments as of the day we receive the repayment.
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Loan repayments received prior to the close of the New York Stock Exchange will be applied on the same day it was received. Loan repayments received after the close of the New York Stock Exchange will be applied as of the next business day.
Effects of policy loans
The policy value, the net cash surrender value, and any death benefit are permanently affected by any loan, whether or not it is repaid in whole or in part. This is because the amount of the loan is deducted from the investment accounts or any fixed account and placed in a special loan account. The investment accounts or any fixed account and the special loan account will generally have different rates of investment return.
The amount of the outstanding loan (which includes accrued and unpaid interest) is subtracted from the amount otherwise payable when the policy proceeds become payable.
Taking out a loan on the policy increases the risk that the policy may lapse because of the difference between the interest rate charged on the loan and the interest rate credited to the special loan account. When a loan is outstanding, the amount in the loan account is not available to help pay for any policy charges. If, after deducting your policy loan, there is not enough policy value to cover the policy charges, your policy could lapse. Also, whenever the outstanding loan equals or exceeds your policy value after the insured person reaches age 121, the policy will terminate 31 days after we have mailed notice of termination to you (and to any assignee of record at such assignee's last known address) specifying the amount that must be paid to avoid termination, unless a repayment of at least the amount specified is made within that period. Policy loans may also result in adverse tax consequences under certain circumstances (see “Tax considerations”).
Description of charges at the policy level
Deductions from policy value
•  Deferred premium charge - At the end of each policy year, we calculate a deferred premium charge on the basis of the total of the premiums paid during that policy year, multiplied by a rate not to exceed 0.13% (15% on a cumulative basis). The premium charge is then assessed monthly over ten policy years in 120 equal monthly amounts.
•  Administrative charge - A monthly charge to help cover our administrative costs. This is a flat dollar charge of $15.
•  Base Face Amount charge - A monthly charge to primarily help cover sales costs. To determine the charge we multiply the amount of Base Face Amount at issue by a rate that varies by duration (policy year) and by the insured person's sex, risk classification, and issue age. We reserve the right to increase the rate and the charge period (see Fee Table).
•  Cost of insurance charge - A monthly charge for the cost of insurance. To determine the charge, we multiply the net amount of insurance for which we are then at risk by a cost of insurance rate. The rate is derived from an actuarial table. The table in your policy will show the maximum cost of insurance rates. The cost of insurance rates that we currently apply are generally less than the maximum rates. The current rates will never be more than the maximum rates shown in the policy. The cost of insurance we use will depend on age of the insured person at issue, the insurance risk characteristics and (usually) sex of the insured person, and the length of time the policy has been in effect. Regardless of the table used, cost of insurance rates generally increase each year that you own your policy, as the insured person's age increases. (The insured person's “age” on any date is his or her age on the birthday nearest that date.) For death benefit Option 1, the net amount at risk is equal to the greater of zero, or the result of (a) minus (b) where:
    (a) is the Total Face Amount, plus the death benefit payable under any Supplementary Benefit riders where charges are deducted from the Policy Value and are based on the Net Amount at Risk, as of the first day of the Policy Month, divided by 1.0024663; and
    (b) is the policy value as of the first day of the Policy Month after the deduction of all other monthly deductions.
Since the net amount at risk for death benefit Option 1 is based on a formula that includes as factors the death benefit and the policy value, the net amount at risk is affected by the investment performance of the investment accounts chosen, payment of premiums and charges assessed.
If the minimum death benefit is greater than the Total Face Amount, the cost of insurance charge will reflect the amount of that additional benefit.
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For death benefit Option 2, the net amount at risk is equal to the Total Face Amount of insurance divided by 1.0024663.
•  Replacement fee - A Replacement fee is imposed for the first ten policy years if you surrender your policy in connection with the purchase of a replacement policy, including a replacement intended to qualify as a tax free exchange under section 1035 of the Internal Revenue Code. The fee is a percentage of the premiums we receive in the first policy year that do not exceed the Replacement Fee Calculation Limit stated in your policy. The percentage applied is dependent upon the policy year during which replacement occurs and grades down proportionately at the beginning of each policy month until it reaches zero. The Replacement Fee Calculation Limit varies by issue age, sex and the amount of Base Face Amount and Supplemental Face Amount elected at issue.
•  Surrender fee - We will automatically include the Surrender Fee Endorsement with all policies described in this prospectus, which are issued on or after July 27, 2010, that we determine according to our underwriting standards present a heightened risk of early termination. These standards will be (i) designed to identify cases that expose us to potential increased costs resulting from early surrenders or withdrawals, (ii) will be uniformly applied and reasonable, and (iii) will not unfairly discriminate against any purchaser. For example, we will take into account factors such as the nature of the purchaser (individual or corporate), the size and business type of any corporate purchaser, and the purposes for which the insurance is being purchased.
If your policy is issued with the Surrender Fee Endorsement, we will assess a fee upon the surrender of your policy during the first 7 policy years (if such surrender is not subject to a Replacement fee). The charge deducted will be equal to the percentage shown in your policy multiplied by the lesser of either the sum of premiums paid to date at the time the charge is applied or the Calculation Limit shown in the policy. The Calculation Limit varies by issue age, sex of the insured person and policy duration. The percentage applied is dependent upon the policy year during which the transaction occurs.
For example, assume a policy owner with the Surrender Fee Endorsement requests a full surrender in policy year 5, where the Calculation Limit equals $60,000, the total premiums paid to date equals $50,000 and the applicable Surrender fee percentage for policy year 5 is 3%. The resulting Surrender fee for the full surrender will equal $1,500 (3% multiplied by the lesser of $60,000 or $50,000). No Replacement fee is assessed.
A pro-rata portion of the Surrender fee will be deducted upon a request for a withdrawal during the first 7 policy years. The pro-rata Surrender fee is equal to the Surrender fee at the time of the withdrawal multiplied by the ratio of (a) divided by (b); where (a) and (b) equal the following:
    (a) is the lesser of:
    (1)   the amount of the withdrawal currently being taken, or
     (2)  the excess, if any, of the sum of all premiums paid to date at the time of the withdrawal, minus the sum of all withdrawals previously taken; and
    (b) is the sum of all premiums paid to date at the time of withdrawal.
The sum of all pro-rata Surrender fees applicable to withdrawals will never exceed the amount of the Surrender fee at the time of the withdrawal. We will deduct any applicable pro-rata Surrender fee in the same manner that we deduct monthly deductions. If a Replacement fee will be deducted with respect to the surrender of this policy, any pro-rata portion of the Surrender fee which has been deducted during the first 7 policy years will be subtracted from the amount of the Replacement fee which would otherwise be deducted.
For example, assume a policy owner with the Surrender Fee Endorsement has taken a withdrawal for which we assessed a pro-rata Surrender fee of $1,000. If the policy is later replaced or exchanged after the Surrender fee charge period, and the applicable Replacement fee is determined to be $3,000, then we would assess a reduced Replacement fee equal to $2,000 ($3,000-$1,000).
•  Asset-based risk charge - A monthly charge to help cover sales, administrative and other costs. The charge is a percentage of that portion of your policy value allocated to investment accounts. This charge does not apply to the current fixed account.
•  Supplementary benefits charges - A charge for any supplementary insurance benefits added to the policy by means of a rider.
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•  Loan interest rate - We will charge interest on any amount you borrow from your policy. The interest charged on any loan is an effective annual rate of 3.75% in the first ten policy years and 3.00% thereafter. However, we reserve the right to increase the percentage to 4.00% in the first ten policy years and 3.25% thereafter. (see “Policy loans”).
•  Transfer fee - We currently do not impose a fee upon transfers of policy value among the investment accounts, but reserve the right to impose a fee of up to $25 for any transfer beyond an annual limit (which will not be less than 12) to compensate us for the costs of processing these transfers (see “Market timing and disruptive trading practices”).
Additional information about how certain policy charges work
Sales expenses and related charges
The deferred premium and Base Face Amount charges help to compensate us for the cost of selling our policies (see “Description of charges at the policy level”). The amount of the charges in any policy year does not specifically correspond to sales expenses for that year. We expect to recover our total sales expenses over the life of the policies. To the extent that the deferred premium and Base Face Amount charges do not cover total sales expenses, the sales expenses may be recovered from other sources, including the asset-based risk charge and other charges with respect to the policies, or from our general assets. Similarly, administrative expenses not fully recovered by the administrative charge may also be recovered from such other sources.
Method of deduction
We deduct the monthly deductions described in the Fee Tables section from your policy's accounts (fixed and investment) in proportion to the amount of policy value you have in each, unless otherwise specified by you.
Special purchase programs for eligible classes
The charges otherwise applicable may be reduced with respect to policies issued to a class of associated individuals or to a trustee, employer or similar entity where we anticipate that the sales to the members of the class will result in lower than normal sales or administrative expenses, lower taxes or lower risks to us. We will make these reductions in accordance with our rules in effect at the time of the application for a policy. The factors we consider in determining the eligibility of a particular group for reduced charges, and the level of the reduction, are as follows: the nature of the association and its organizational framework; the method by which sales will be made to the members of the class; the facility with which premiums will be collected from the associated individuals and the association's capabilities with respect to administrative tasks; the anticipated lapse and surrender rates of the policies; the size of the class of associated individuals and the number of years it has been in existence; the aggregate amount of premiums paid; and any other such circumstances which result in a reduction in sales or administrative expenses, lower taxes or lower risks. Any reduction in charges will be reasonable and will apply uniformly to all prospective policy purchasers in the class and will not unfairly discriminate against any owner.
The Statement of Additional Information (the “SAI”) contains additional information about any special purchase program we currently make available. For information as to how you may obtain a copy of the SAI, please see the last page of this prospectus.
Other charges we could impose in the future
Except for a portion of the deferred premium charge, we currently make no charge for our Federal income taxes. However, if we incur, or expect to incur, income taxes attributable to any subaccount of the Account or this class of policies in future years, we reserve the right to make a charge for such taxes. Any such charge would reduce what you earn on any affected investment accounts. However, we expect that no such charge will be necessary.
A portion of the deferred premium charge is used to cover premium taxes. Currently, the premium tax in New York is 0.7% of each premium payment.
Under current laws, we may incur New York state and local taxes (in addition to premium taxes). At present, these taxes are not significant. If there is a material change in applicable state or local tax laws, we may make charges for such taxes.
Description of charges at the portfolio level
The portfolios must pay investment management fees and other operating expenses. These fees and expenses (shown in the tables of portfolio annual expenses under “Fee Tables”) are different for each portfolio and reduce the investment return of
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each portfolio. Therefore, they also indirectly reduce the return you will earn on any investment accounts you select. Expenses of the portfolios are not fixed or specified under the terms of the policy, and those expenses may vary from year to year.
Other policy benefits, rights and limitations
Optional supplementary benefit riders you can add
When you apply for a policy, you can request any of the optional supplementary benefit riders that we then make available. Our rules and procedures will govern eligibility for any rider and, in some cases, the configuration of the actual rider benefits. Each rider contains specific details that you should review before you decide to choose the rider. Charges for most riders will be deducted from the policy value. We may change these charges (or the rates that determine them), but not above any applicable maximum amount stated in the Policy Specifications page of your policy. We may add to, delete from or modify the list of optional supplementary benefit riders.
•  Overloan Protection Rider - This rider will prevent your policy from lapsing on any date if policy debt exceeds the death benefit. The benefit is subject to a number of eligibility requirements relating to, among other things, the number of years the policy has been in force, the attained age of the life insured, the death benefit option elected and the tax status of the policy.
When the Overloan Protection Benefit in this rider is invoked, all values in the investment accounts are immediately transferred to the fixed account and will continue to grow at the current fixed account interest rate. Transfer fees do not apply to these transfers. Thereafter, policy changes and transactions are limited as set forth in the rider; for example, death benefit increases or decreases, additional premium payments, policy loans, withdrawals, surrender and transfers are no longer allowed. Any outstanding policy debt will remain. Interest will continue to be charged at the policy's specified loan interest rate, and the policy's loan account will continue to be credited with the policy's loan interest credited rate. Any supplementary benefit rider requiring a monthly deduction will automatically be terminated.
When the Overloan Protection Rider causes the policy to be converted into a fixed policy, there is risk that the Internal Revenue Service could assert that the policy has been effectively terminated and that the outstanding loan balance should be treated as a distribution. Depending on the circumstances, all or part of such deemed distribution may be taxable as income. You should consult a tax adviser as to the risks associated with the Overloan Protection Rider.
•  Return of Premium Death Benefit Rider - You may elect to have your policy issued with an optional Return of Premium Death Benefit Rider. This rider provides an additional death benefit payable upon the death of the insured person. The Return of Premium Death Benefit has an initial value equal to your initial premium times the “Percentage of Premium” you select (which may range between 0% and 100%). We show the Percentage of Premium you select in the Policy Specifications page. If you elected increases to your Supplemental Face Amount, you may not elect this rider. This benefit is only available to you if you elect death benefit Option 1.
•  Accelerated Benefit Rider - This rider provides for acceleration of payment of a portion of the death benefit should the insured person become terminally ill and have a life expectancy of one year or less. You must meet the following conditions before we pay the benefit.
•  You must provide written evidence satisfactory to us that the life insured is terminally ill and has a life expectancy of one year or less.
•  We must have a signed consent of any irrevocable beneficiary and any assignee.
•  You must claim the benefit voluntarily. We will not pay the benefit if you are claiming it to satisfy creditors or for government benefits.
If you satisfy the above conditions, we will pay you 50% of the eligible death benefit, up to a maximum of $1,000,000. We will not make a payment if it would be less than $10,000. Payment of the benefit will reduce your death benefit and any cash value or loan value under your policy. You should consult your tax adviser and social service agencies before you decide to receive the benefit under this rider. This rider is only available with policies that are individually owned.
•  Long-Term Care Rider - This rider provides for periodic advance payments to you of a portion of the death benefit if the insured person becomes “chronically ill” so that such person: (1) is unable to perform at least two activities of
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  daily living without substantial human assistance or has a severe cognitive impairment; and (2) is receiving certain qualified services described in the rider. The decision to add this rider must be made at issuance of the policy. If you elect this rider, you will also have an option to apply to have a portion of the policy's death benefit advanced to you in the event of terminal illness. In addition, there is a significant risk that ownership of a policy with this rider by anyone other than the insured will cause adverse tax consequences (see “Tax considerations”).
We determine a maximum amount of death benefit that we will advance for each month of qualification. This amount, called the “Maximum Monthly Benefit Amount,” is equal to the amount of the death benefit that may be accelerated under the rider (as of the day the insured qualifies for benefits) multiplied by the Monthly Acceleration Percentage, which is the percentage of the death benefit you can accelerate each month. The Monthly Acceleration Percentage must be selected when you apply for the policy. The actual amount of any advance is based on the expense incurred by the insured person, up to the Maximum Monthly Benefit Amount, for each day of qualified long-term care service in a calendar month, as described in the rider. We will recalculate the Maximum Monthly Benefit Amount if you make a withdrawal of policy value, and for other events described in the rider. Each advance reduces the remaining death benefit under your policy, and causes a proportionate reduction in your policy value. If you have a policy loan, we will use a pro-rata portion of each death benefit advance to repay indebtedness. For example, if current indebtedness is $10,000, the death benefit is $100,000, and the gross advance is $2,000, then the net advance would be $1,800 = $2,000 X (1 - ($10,000/ $100,000)). As a result of the advance, the indebtedness will be reduced by $200.
We restrict your policy value's exposure to market risk when benefits are paid under the Long-Term Care Rider. We do this in several ways. First, before we begin paying any Monthly Benefit, we will transfer all policy value from the investment accounts to the fixed account. (The amount to be transferred will be determined on the business day immediately following the date we approve a request for benefits under the rider.) In addition, you will not be permitted to transfer policy value or allocate any additional premium payment to an investment account while rider benefits are paid. Your participation in any of the automatic investment plans will also be suspended during this period.
If the insured person no longer qualifies for rider benefits and your policy remains in force, you will be permitted to invest new premium payments or transfer existing policy value in the investment accounts. (The restriction on transfers from the fixed account will continue to apply.)
Finally, please note that there is a significant risk that ownership of a policy with this rider by anyone other than the insured person will cause adverse tax consequences. If the owner of the policy is not the insured person, benefit payments may be included in the owner's income, and the death benefit may be part of the estate of the insured person for purposes of Federal estate tax (see “Tax considerations”).
Variations in policy terms
We may vary the charges and other terms of our policies where special circumstances result in sales or administrative expenses, mortality risks or other risks that are different from those normally associated with the policies. These include the type of variations discussed under “Special purchase programs for eligible classes.” Also, the guaranteed limit on the asset-based risk charge varies based on the amount of Base Face Amount and Supplemental Face Amount elected at issue as shown in the “Fee Tables.” No variation in any charge will exceed any maximum stated in this prospectus with respect to that charge. Where approved, we may offer policies covering members of an employee or other group on a “Guaranteed Issue” or a “Simplified Issue” basis. In these cases, the Base Face Amount charges and cost of insurance charges may differ from the rates applied if traditional underwriting procedures are followed.
Any variation discussed above will be made only in accordance with uniform rules that we adopt and that we apply fairly to our customers.
Procedures for issuance of a policy
Generally, the policy is available with a minimum Total Face Amount at issue of $100,000 and a minimum Base Face Amount at issue of $50,000. At the time of issue, the insured person must have an attained age of no more than 90. The insured person must meet certain health and other insurance risk criteria called “underwriting standards.”
Policies issued in connection with certain employee plans will not directly reflect the sex of the insured person in either the premium rates or the charges or values under the policy.
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Commencement of insurance coverage
After you apply for a policy, it can sometimes take up to several weeks for us to gather and evaluate all the information we need to decide whether to issue a policy to you and, if so, what the insured person's risk classification should be. After we approve an application for a policy and assign an appropriate insurance risk classification, we will prepare the policy for delivery. We will not pay a death benefit under a policy unless the policy is in effect when the insured person dies (except for the circumstances described under “Temporary coverage prior to policy delivery” below).
The policy will take effect only if all of the following conditions are satisfied:
•  The policy is delivered to and received by the applicant.
•  The Minimum Initial Premium is received by us.
•  The insured person is living and there has been no deterioration in the insurability of the insured person since the date of the application.
The date all of the above conditions are satisfied is referred to in this prospectus as the “Contract Completion Date.” If all of the above conditions are satisfied, the policy will take effect on the date shown in the policy as the “Policy Date.” That is the date on which we begin to deduct monthly charges. Policy months, policy years and policy anniversaries are all measured from the Policy Date.
Backdating
Under limited circumstances, we may backdate a policy, upon request, by assigning a Policy Date earlier than the date the application is signed. However, in no event will a policy be backdated earlier than six months from the date of application for the policy, the earliest date allowed by New York state law. The most common reasons for backdating are to preserve a younger age at issue for the insured person or to retain a common monthly deduction date in certain corporate-owned life insurance cases involving multiple policies issued over time. If used to preserve age, backdating will result in lower insurance charges. However, monthly deductions will begin earlier than would otherwise be the case. Monthly deductions for the period the Policy Date is backdated will actually be deducted from policy value on the Contract Completion Date.
Temporary coverage prior to policy delivery
If a specified amount of premium is paid with the application for a policy and other conditions are met, we will provide temporary term life insurance coverage on the insured person for a period prior to the time coverage under the policy takes effect. Such temporary term coverage will be subject to the terms and conditions described in the Temporary Life Insurance Agreement and Receipt attached to the application for the policy, including conditions to coverage and limits on amount and duration of coverage.
Monthly deduction dates
Each charge that we deduct monthly is assessed against your policy value at the close of business on the Policy Date and at the close of the first day in each subsequent policy month.
Changes that we can make as to your policy
We reserve the right to make any changes in the policy necessary to ensure the policy is within the definition of life insurance under the Federal tax laws and is in compliance with any changes in Federal or state tax laws.
In our policies, we reserve the right to make certain changes if they would serve the best interests of policy owners or would be appropriate in carrying out the purposes of the policies. These changes include the following:
•  Changes necessary to comply with or obtain or continue exemptions under the Federal securities laws.
•  Combining or removing fixed accounts or investment accounts.
•  Changes in the form of organization of any separate account.
Any such changes will be made only to the extent permitted by applicable laws and only in the manner permitted by such laws. When required by law, we will obtain your approval of the changes and the approval of any appropriate regulatory authority.
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The owner of the policy
Who owns the policy? That's up to the person who applies for the policy. The owner of the policy is the person who can exercise most of the rights under the policy, such as the right to choose the accounts in which to invest or the right to surrender the policy. In many cases, the person buying the policy is also the person who will be the owner. However, the application for a policy can name another person or entity (such as a trust) as owner. Whenever we've used the term “you” in this prospectus, we've assumed that the reader is the person who has whatever right or privilege is being discussed. There may be tax consequences if the owner and the insured person are different, so you should discuss this issue with your tax adviser.
While the insured person is alive, you will have a number of options under the policy. These options include those listed below:
•  Determine when and how much you invest in the various accounts.
•  Borrow or withdraw amounts you have in the accounts.
•  Change the beneficiary who will receive the death benefit.
•  Change the amount of insurance.
•  Turn in (i.e., “surrender”) the policy for the full amount of its net cash surrender value.
•  Choose the form in which we will pay out the death benefit or other proceeds.
It is possible to name so-called “joint owners” of the policy. If more than one person owns a policy, all owners must join in most requests to exercise rights under the policy.
Policy cancellation right
You have the right to cancel your policy within ten days after you receive it. This is often referred to as the “free look” period. During this period, your premiums will be allocated as described under “Processing premium payments” in this prospectus. To cancel your policy, simply deliver or mail the policy to:
•  John Hancock NY at either of the addresses shown on the back cover of this prospectus, or
•  the John Hancock NY representative who delivered the policy to you.
The date of cancellation will be the date of such mailing or delivery. You will receive a refund of any premiums you’ve paid.
Reports that you will receive
At least annually, we will send you a statement setting forth at least the following information as of the end of the most recent reporting period: the amount of the death benefit, the portion of the policy value in the fixed account and in each investment account, premiums received and charges deducted from premiums since the last report, any outstanding policy loan (and interest charged for the preceding policy year), and any further information required by law. Moreover, you also will receive confirmations of premium payments, transfers among accounts, policy loans, partial withdrawals and certain other policy transactions.
Semi-annually we will send you a report containing the financial statements of the portfolios, including a list of securities held in each portfolio.
Assigning your policy
You may assign your rights in the policy to someone else as collateral for a loan or for some other reason. Assignments do not require the consent of any revocable beneficiary. A copy of the assignment must be forwarded to us. We are not responsible for any payment we make or any action we take before we receive a copy of the assignment at our Service Office. Nor are we responsible for the validity of the assignment or its efficacy in meeting your objectives. An absolute assignment is a change of ownership. All collateral assignees of record must usually consent to any surrender, withdrawal or loan from the policy.
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When we pay policy proceeds
General
We will ordinarily pay any death benefit, withdrawal, surrender value or loan within seven days after we receive the last required form or request (and, with respect to the death benefit, any other documentation that may be required). If we don't have information about the desired manner of payment within seven days after the date we receive documentation of the insured person's death, we will pay the proceeds as a single sum.
Delay to challenge coverage
We may challenge the validity of your insurance policy based on any material misstatements made to us in the application for the policy. We cannot make such a challenge, however, beyond the time limit that is specified in your policy, which generally is two years from the Issue Date.
Delay for check clearance
We reserve the right to defer payment of that portion of your policy value that is attributable to a premium payment made by check for a reasonable period of time (not to exceed fifteen days) to allow the check to clear the banking system. We will not delay payment longer than necessary for us to verify a check has cleared the banking system.
Delay of separate account proceeds
We reserve the right to defer payment of any death benefit, loan or other distribution that is derived from an investment account if (1) the New York Stock Exchange is closed (other than customary weekend and holiday closings) or trading on the New York Stock Exchange is restricted; (2) an emergency exists, as determined by the SEC, as a result of which disposal of securities is not reasonably practicable or it is not reasonably practicable to fairly determine the policy value; or (3) the SEC by order permits the delay for the protection of owners. Transfers and allocations of policy value among the investment accounts may also be postponed under these circumstances. If we need to defer calculation of separate account values for any of the foregoing reasons, all delayed transactions will be processed at the next values that we do compute.
Delay of general account surrender proceeds
New York state law allows us to defer payment of any portion of the net cash surrender value derived from the fixed account for up to six months. These laws were enacted many years ago to help insurance companies in the event of a liquidity crisis.
How you communicate with us
General rules
You should mail or express all checks and money orders for premium payments and loan repayments to the John Hancock NY Service Office at the appropriate address shown on the back cover.
Under our current rules, certain requests must be made in writing and be signed and dated by you. Those requests include the following.
•  loans
•  surrenders or withdrawals
•  change of death benefit option
•  increase or decrease in Face Amount
•  change of beneficiary
•  election of payment option for policy proceeds
•  tax withholding elections
•  election of telephone/internet transaction privilege
The following requests may be made either in writing (signed and dated by you) or by telephone or fax or through the Company's secured website, if a special form is completed (see “Telephone, facsimile and internet transactions” below).
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•  transfers of policy value among accounts
•  change of allocation among accounts for new premium payments
You should mail or express all written requests to our Service Office at the appropriate address shown on the back cover. You should also send notice of the insured person's death and related documentation to our Service Office. We do not consider that we’ve “received” any communication until such time as it has arrived at the proper place and in the proper and complete form.
We have special forms that should be used for a number of the requests mentioned above. You can obtain these forms from our Service Office or your John Hancock NY representative. Each communication to us must include your name, your policy number and the name of the insured person. We cannot process any request that doesn’t include this required information. Any communication that arrives after the close of our business day, or on a day that is not a business day, will be considered “received” by us on the next following business day. Our business day currently closes at 4:00 p.m. Eastern time, but special circumstances (such as suspension of trading on a major exchange) may dictate an earlier closing time.
Telephone, facsimile and internet transactions
If you complete a special authorization form, you can request transfers among accounts and changes of allocation among accounts simply by telephoning us at 1-800-521-1234 or by faxing us at 1-617-572-1571 or through the Company's secured website. Any fax or internet request should include your name, daytime telephone number, policy number and, in the case of transfers and changes of allocation, the names of the accounts involved. We will honor telephone and internet instructions from anyone who provides the correct identifying information, so there is a risk of loss to you if this service is used by an unauthorized person. However, you will receive written confirmation of all telephone/internet transactions. There is also a risk that you will be unable to place your request due to equipment malfunction or heavy phone line or internet usage. If this occurs, you should submit your request in writing.
If you authorize telephone or internet transactions, you will be liable for any loss, expense or cost arising out of any unauthorized or fraudulent telephone or internet instructions which we reasonably believe to be genuine, unless such loss, expense or cost is the result of our mistake or negligence. We employ procedures which provide safeguards against the execution of unauthorized transactions which are reasonably designed to confirm that instructions received by telephone or internet are genuine. These procedures include requiring personal identification, the use of a unique password for internet authorization, recording of telephone calls, and providing written confirmation to the owner. If we do not employ reasonable procedures to confirm that instructions communicated by telephone or internet are genuine, we may be liable for any loss due to unauthorized or fraudulent instructions.
As stated earlier in this prospectus, the policies are not designed for professional market timing organizations or other persons or entities that use programmed, large or frequent transfers among investment options. To discourage disruptive trading, we have imposed certain transfer restrictions (see “Transfers of existing policy value”). In addition, we also reserve the right to change our telephone, facsimile and internet transaction privileges outlined in this section at any time, and to suspend or terminate any or all of those privileges with respect to any owners who we feel are abusing the privileges to the detriment of other owners.
Distribution of policies
John Hancock Distributors LLC (“JH Distributors”), a Delaware limited liability company affiliated with us, is the principal distributor and underwriter of the securities offered through this prospectus and of other annuity and life insurance products we and our affiliates offer. JH Distributors also acts as the principal underwriter of the Trust, whose securities are used to fund certain investment accounts under the policies and under other annuity and life insurance products we offer.
JH Distributors' principal address is 601 Congress Street, Boston, MA 02210 and it also maintains offices with us at 197 Clarendon Street, Boston, Massachusetts 02116. JH Distributors is a broker-dealer registered under the Securities Exchange Act of 1934 (the “1934 Act”) and a member of the Financial Industry Regulatory Authority (“FINRA”).
We offer the policies for sale through individuals who are licensed as insurance agents and who are registered representatives of broker-dealers that have entered into selling agreements with JH Distributors. Our affiliate, Signator Investors, Inc., is one such broker-dealer. In addition, we, either directly or through JH Distributors, have entered into agreements with other financial intermediaries that provide marketing, sales support and certain administrative services to
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help promote the policies (“financial intermediaries”). In a limited number of cases, we have entered into loans, leases or other financial agreements with these broker-dealers or financial intermediaries or their affiliates.
Compensation
The broker-dealers and other financial intermediaries that distribute or support the marketing of our policies may be compensated by means of various compensation and revenue sharing arrangements. A general description of these arrangements is set out below under “Standard compensation” and “Additional compensation and revenue sharing.” These arrangements may differ between firms, and not all broker-dealers or financial intermediaries will receive the same compensation and revenue sharing benefits for distributing our policies. Also, a broker-dealer may receive more or less compensation or other benefits for the promotion and sale of our policy than it would expect to receive from another issuer.
Under their own arrangements, broker-dealers determine how much of any amounts received from us is to be paid to their registered representatives. Our affiliated broker-dealer, Signator Investors, Inc., may pay its registered representatives additional compensation and benefits, such as bonus payments, expense payments, health and retirement benefits or the waiver of overhead costs or expenses in connection with the sale of the policies that they would not receive in connection with the sale of policies issued by unaffiliated companies.
Policy owners do not pay any compensation or revenue sharing benefits directly. These payments are made from JH Distributors’ and our own revenues, profits or retained earnings, which may be derived from a number of sources, such as fees received from an underlying fund’s distribution plan (“12b-1 fees”), the fees and charges imposed under the policy and other sources.
You should contact your registered representative for more information on compensation arrangements in connection with your purchase of a policy. We provide additional information on special compensation or reimbursement arrangements involving broker-dealers and other financial intermediaries in the SAI, which is available upon request.
Standard compensation. JH Distributors pays compensation to broker-dealers for the promotion and sale of the policies, and for providing ongoing service in relation to policies that have already been purchased. We may also pay a limited number of broker-dealers commissions or overrides to “wholesale” the policies; that is, to provide marketing support and training services to the broker-dealer firms that do the actual selling.
The compensation JH Distributors pays to broker-dealers may vary depending on the selling agreement. The compensation paid is not expected to exceed 35% of target premium, and 5% of premium in excess of target, paid in the first policy year, 7% of target and 5% of excess premium paid in years 2-5, 5% of target and excess premium paid in years 6-10 and 0% thereafter. In addition, JH Distributors is expected to pay compensation in policy years 6-15 not exceeding 0.15% of the net cash surrender value and 0.10% of the net cash surrender value in years 16 and thereafter, with the net cash surrender value determined as of the end of each previous policy anniversary. You should consider that the amount of compensation paid to the selling broker-dealer will generally be less if you elect greater portions of Supplemental Face Amount at issue. This compensation schedule is exclusive of additional compensation and revenue sharing and inclusive of overrides and expense allowances paid to broker-dealers for sale of the policies (not including riders).
Additional compensation and revenue sharing. To the extent permitted by SEC and FINRA rules and other applicable laws and regulations, we may enter into special compensation or reimbursement arrangements (“revenue sharing”), either directly or through JH Distributors, with selected broker-dealers and other financial intermediaries. In consideration of these arrangements, a firm may feature our policy in its sales system, give us preferential access to sales staff, or allow JH Distributors or its affiliates to participate in conferences, seminars or other programs attended by the firm’s sales force. We hope to benefit from these revenue sharing and other arrangements through increased sales of our policies.
Selling broker-dealers and other financial intermediaries may receive, directly or indirectly, additional payments in the form of cash, other compensation or reimbursement. These additional compensation or reimbursement arrangements may include, for example, payments in connection with the firm's “due diligence” examination of the policies, payments for providing conferences or seminars, sales or training programs for invited registered representatives and other employees, payment for travel expenses, including lodging, incurred by registered representatives and other employees for such seminars or training programs, seminars for the public or client seminars, advertising and sales campaigns regarding the policies, payments to assist a firm in connection with its systems, operations and marketing expenses and/or other events or activities sponsored by the firms. We may contribute to, as well as sponsor, various educational programs, sales promotions, and/or other contests in which participating firms and their sales persons may receive gifts and prizes such as merchandise, cash or other rewards as may be permitted under FINRA rules and other applicable laws and regulations.
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Tax considerations
This description of Federal income tax consequences is only a brief summary and is neither exhaustive nor authoritative. It was written to support the promotion of our products. It does not constitute legal or tax advice, and it is not intended to be used and cannot be used to avoid any penalties that may be imposed on you. Tax consequences will vary based on your own particular circumstances, and for further information you should consult a qualified tax adviser. Federal, state and local tax laws, regulations and interpretations can change from time to time. As a result, the tax consequences to you and the beneficiary may be altered, in some cases retroactively. The policy may be used in various arrangements, including non-qualified deferred compensation or salary continuation plans, split dollar insurance plans, executive bonus plans, retiree medical benefit plans and others. The tax consequences of such plans may vary depending on the particular facts and circumstances of each individual arrangement. Therefore, if the value of using the policy in any such arrangement depends in part on the tax consequences, a qualified tax adviser should be consulted for advice.
General
We are taxed as a life insurance company. Under current tax law rules, we include the investment income (exclusive of capital gains) of the Separate Account in our taxable income and take deductions for investment income credited to our policy holder reserves. We are also required to capitalize and amortize certain costs instead of deducting those costs when they are incurred. We do not currently charge the Separate Account for any resulting income tax costs, other than a charge we may impose against the Separate Account to compensate us for the cost of a delay in the deductibility of deferred acquisition costs (the “DAC tax” adjustment) pursuant to section 848 of the Internal Revenue Code. We also claim certain tax credits or deductions relating to foreign taxes paid and dividends received by the series funds. These benefits can be material. We do not pass these benefits through to the Separate Account, principally because: (i) the deductions and credits are allowed to us and not the policy owners under applicable tax law; and (ii) the deductions and credits do not represent investment return on the Separate Account assets that is passed through to policy owners.
The policies permit us to deduct a charge for any taxes we incur that are attributable to the operation or existence of the policies or the Separate Account. Currently, we do not anticipate making any specific charge for such taxes other than any DAC tax charge and premium taxes where applicable. If the level of the current taxes increases, however, or is expected to increase in the future, we reserve the right to make a charge in the future.
Death benefit proceeds and other policy distributions
Generally, death benefits paid under policies such as yours are not subject to income tax unless policy ownership has been transferred in exchange for payment. Earnings on your policy value are ordinarily not subject to income tax as long as we don’t pay them out to you. If we do pay out any amount of your policy value upon surrender or partial withdrawal, all or part of that distribution would generally be treated as a return of the premiums you’ve paid and not subjected to income tax. Any portion not treated as a return of your premiums would be includible in your income.
Please note that certain distributions associated with a reduction in death benefit or other policy benefits within the first fifteen years after issuance of the policy are ordinarily taxable in whole or in part. Amounts you borrow are generally not taxable to you.
However, some of the tax rules change if your policy becomes a modified endowment contract. This can happen if you’ve paid premiums in excess of limits prescribed by the tax laws. In that case, additional taxes and penalties may be payable for policy distributions of any kind, including loans. (See “7-pay premium limit and modified endowment contract status” below.)
We expect the policy to receive the same Federal income and estate tax treatment as fixed benefit life insurance policies. Section 7702 of the Internal Revenue Code defines a life insurance contract for Federal tax purposes. For a policy to be treated as a life insurance contract, it must satisfy either the cash value accumulation test or the guideline premium test. These tests limit the amount of premium that you may pay into the policy. We will monitor compliance with these standards. If we determine that a policy does not satisfy section 7702, we may take whatever steps are appropriate and reasonable to bring it into compliance with section 7702.
If the policy complies with section 7702, the death benefit proceeds under the policy ordinarily should be excludable from the beneficiary’s gross income under section 101 of the Internal Revenue Code. (As noted above, a transfer of the policy for valuable consideration may limit the exclusion of death benefits from the beneficiary's income.) In addition, if you have elected a Long-Term Care Rider, the rider's benefits generally will be excludable from gross income under the Internal
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Revenue Code. The tax-free nature of these accelerated benefits is contingent on the rider meeting specific requirements under section 101 and/or section 7702B of the Internal Revenue Code. The riders are intended to meet these standards.
If you have elected a Long-Term Care Rider, we caution you that there is a significant risk that ownership by anyone other than the person insured by the policy will cause adverse tax consequences. If the owner of the policy is not the insured person, benefit payments may be included in the owner's income, and the death benefit may be part of the insured person's estate for purposes of the Federal estate tax. A policy with a Long-Term Care Rider should not be purchased by or transferred to a person other than the insured person unless you have carefully reviewed the tax implications with your tax adviser.
Increases in policy value as a result of interest or investment experience will not be subject to Federal income tax unless and until values are received through actual or deemed distributions. In general, unless the policy is a modified endowment contract, the owner will be taxed only on the amount of distributions that exceed the premiums paid under the policy. An exception to this general rule occurs in the case of a decrease in the policy's death benefit or any other change that reduces benefits under the policy in the first fifteen years after the policy is issued and that results in a cash distribution to the policy owner. Changes that reduce benefits include partial withdrawals, death benefit option changes, and distributions required to keep the policy in compliance with section 7702. For purposes of this rule any distribution within the two years immediately before a reduction in benefits will also be treated as if it were a result of the reduction. A cash distribution that reduces policy benefits will be taxed in whole or in part (to the extent of any gain in the policy) under rules prescribed in section 7702. The taxable amount is subject to limits prescribed in section 7702(f)(7). Any taxable distribution will be ordinary income to the owner (rather than capital gain).
Distributions for tax purposes include amounts received upon surrender or partial withdrawals. You may also be deemed to have received a distribution for tax purposes if you assign all or part of your policy rights or change your policy’s ownership. If you have elected a Long-Term Care Rider, as described in “Optional supplementary benefit riders you can add,” deductions from policy value to pay the rider charges will reduce your investment in the contract but will not be included in income even if you have recovered all of your investment in the contract.
It is possible that, despite our monitoring, a policy might fail to qualify as a life insurance contract under the Internal Revenue Code. This could happen, for example, if we inadvertently failed to return to you any premium payments that were in excess of amounts permitted under section 7702, or if any of the funds failed to meet certain investment diversification or other requirements of the Internal Revenue Code. If this were to occur, you would be subject to income tax on the income credited to the policy from the date of issue to the date of the disqualification and for subsequent periods.
Tax consequences of ownership or receipt of policy proceeds under Federal, state and local estate, inheritance, gift and other tax laws will depend on the circumstances of each owner or beneficiary. If the person insured by the policy is also its owner, either directly or indirectly through an entity such as a revocable trust, the death benefit will be includible in his or her estate for purposes of the Federal estate tax. If the owner is not the person insured, the value of the policy will be includible in the owner's estate upon his or her death. Even if ownership has been transferred, the death proceeds or the policy value may be includible in the former owner's estate if the transfer occurred less than three years before the former owner's death or if the former owner retained certain kinds of control over the policy. You should consult your tax adviser regarding these possible tax consequences.
Because there may be unfavorable tax consequences (including recognition of taxable income and the loss of income tax-free treatment for any death benefit payable to the beneficiary), you should consult a qualified tax adviser prior to changing the policy’s ownership or making any assignment of ownership interests.
Policy loans
We expect that, except as noted below (see “7-pay premium limit and modified endowment contract status”), loans received under the policy will be treated as indebtedness of an owner and that no part of any loan will constitute income to the owner. However, if the policy terminates for any reason other than the payment of the death benefit, an amount equal to any outstanding loan that was not previously considered income will be treated as if it had been distributed to the owner upon such termination. This could result in a considerable tax bill. Under certain circumstances involving large amounts of outstanding loans, you might find yourself having to choose between high premiums required to keep your policy from lapsing and a significant tax burden if you allow the lapse to occur.
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Diversification rules and ownership of the Separate Account
Your policy will not qualify for the tax benefits of a life insurance contract unless the Separate Account follows certain rules requiring diversification of investments underlying the policy. In addition, the rules require that the policy owner not have “investor control” over the underlying assets.
In certain circumstances, the owner of a variable life insurance policy may be considered the owner, for Federal income tax purposes, of the assets of the Separate Account used to support the policy. In those circumstances, income and gains from the Separate Account assets would be includible in the policy owner's gross income. The Internal Revenue Service (“IRS”) has stated in published rulings that a variable policy owner will be considered the owner of Separate Account assets if the policy owner possesses incidents of ownership in those assets, such as the ability to exercise investment control over the assets. A Treasury Decision issued in 1986 (T.D. 8101) stated that guidance would be issued in the form of regulations or rulings on “the extent to which policyholders may direct their investments to particular sub-accounts of a Separate Account without being treated as owners of the underlying assets.” As of the date of this prospectus, no comprehensive guidance on this point has been issued. In Rev. Rul. 2003-91, however, the IRS ruled that a contract holder would not be treated as the owner of assets underlying a variable life insurance or annuity contract despite the owner’s ability to allocate funds among as many as twenty subaccounts.
The ownership rights under your policy are similar to, but different in certain respects from, those described in IRS rulings in which it was determined that policyholders were not owners of Separate Account assets. Since you have greater flexibility in allocating premiums and policy values than was the case in those rulings, it is possible that you would be treated as the owner of your policy’s proportionate share of the assets of the Separate Account.
We do not know what future Treasury Department regulations or other guidance may require. We cannot guarantee that the funds will be able to operate as currently described in the series funds' prospectuses, or that a series fund will not have to change any fund's investment objectives or policies. We have reserved the right to modify your policy if we believe doing so will prevent you from being considered the owner of your policy's proportionate share of the assets of the Separate Account, but we are under no obligation to do so.
7-pay premium limit and modified endowment contract status
At the time of policy issuance, we will determine whether the Planned Premium schedule will exceed the 7-pay limit discussed below. If so, our standard procedures prohibit issuance of the policy unless you sign a form acknowledging that fact.
The 7-pay limit at any time during the first seven contract years is the total of net level premiums that would have been payable at or before that time under a comparable fixed policy that would be fully “paid-up” after the payment of seven equal annual premiums. “Paid-up” means that no further premiums would be required to continue the coverage in force until maturity, based on certain prescribed assumptions. If the total premiums paid at any time during the first seven policy years exceed the 7-pay limit, the policy will be treated as a modified endowment contract, which can have adverse tax consequences.
Policies classified as modified endowment contracts are subject to the following tax rules:
•  First, all withdrawals from such a policy are treated as ordinary income subject to tax up to the amount equal to the excess (if any) of the policy value immediately before the withdrawal over the investment in the policy at such time. If you own any other modified endowment contracts issued to you in the same calendar year by the same insurance company or its affiliates, their values will be combined with the value of the policy from which you take the withdrawal for purposes of determining how much of the withdrawal is taxable as ordinary income.
•  Second, loans taken from or secured by such a policy and assignments or pledges of any part of its value are treated as partial withdrawals from the policy and taxed accordingly. Past-due loan interest that is added to the loan amount is treated as an additional loan.
•  Third, a 10% additional penalty tax is imposed on the portion of any distribution (including distributions on surrender) from, or loan taken from or secured by, such a policy that is included in income except where the distribution or loan:
•  is made on or after the date on which the policy owner attains age 59½;
•  is attributable to the policy owner becoming disabled; or
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•  is part of a series of substantially equal periodic payments for the life (or life expectancy) of the policy owner or the joint lives (or joint life expectancies) of the policy owner and the policy owner’s beneficiary.
These exceptions to the 10% additional tax do not apply in situations where the policy is not owned by an individual.
Furthermore, any time there is a “material change” in a policy, the policy will begin a new 7-pay testing period as if it were a newly-issued policy. The material change rules for determining whether a policy is a modified endowment contract are complex. In general, however, the determination of whether a policy will be a modified endowment contract after a material change depends upon the relationship among the death benefit of the policy at the time of such change, the policy value at the time of the change, and the additional premiums paid into the policy during the seven years starting with the date on which the material change occurs.
Moreover, under a policy insuring a single life, if there is a reduction in benefits (such as a reduction in the death benefit or the reduction or cancellation of certain rider benefits) during a 7-pay testing period, the 7-pay limit will generally be recalculated based on the reduced benefits and the policy will be re-tested from the beginning of the 7-pay testing period using the lower limit. If the premiums paid to date at any point during the 7-pay testing period are greater than the recalculated 7-pay limit, the policy will become a modified endowment contract. If your policy is a survivorship policy, a reduction in benefits under the policy at any time will require re-testing. For such a policy the 7-pay limit will generally be recalculated based on the reduced benefits and the policy will be re-tested, using the lower limit, from the date it was issued. You should consult your tax adviser if you have questions regarding the possible impact of the 7-pay limit on your policy.
If your policy is issued as a result of an exchange subject to section 1035 of the Internal Revenue Code, it may be considered to be a modified endowment contract if the death benefit under the new policy is smaller than the death benefit under the exchanged policy, or if you reduce coverage in your new policy after it is issued. Therefore, if you desire to reduce the face amount as part of a 1035 exchange, a qualified tax adviser should be consulted for advice. A new policy issued in exchange for a modified endowment contract will also be a modified endowment contract regardless of any change in the death benefit.
All modified endowment contracts issued by the same insurer (or its affiliates) to the same owner during any calendar year generally are required to be treated as one contract for the purpose of applying the rules on taxation of withdrawals from modified endowment contracts. You should consult your tax adviser if you have questions regarding the possible impact of the 7-pay limit on your policy.
Corporate and H.R. 10 retirement plans
The policy may be acquired in connection with the funding of retirement plans satisfying the qualification requirements of section 401 of the Internal Revenue Code. If so, the Internal Revenue Code provisions relating to such plans and life insurance benefits thereunder should be carefully scrutinized. We are not responsible for compliance with the terms of any such plan or with the requirements of applicable provisions of the Internal Revenue Code.
Withholding
To the extent that policy distributions to you are taxable, they are generally subject to withholding for your Federal income tax liability. However if you reside in the United States, you can generally choose not to have tax withheld from distributions. Electing to have no withholding will not reduce your tax liability and may expose you to penalties under the rules governing payment of estimated taxes.
Life insurance purchases by residents of Puerto Rico
In Rev. Rul. 2004-75, 2004-31 I.R.B. 109, the Internal Revenue Service ruled that income received by residents of Puerto Rico under a life insurance policy issued by a United States company is U.S.-source income that is subject to United States Federal income tax.
Life insurance purchases by non-resident aliens
If you are not a U.S. citizen or resident, you will generally be subject to U.S. Federal withholding tax on taxable distributions from life insurance policies at a 30% rate, unless a lower treaty rate applies. In addition, you may be subject to state and/or municipal taxes and taxes imposed by your country of citizenship or residence. You should consult with a qualified tax adviser before purchasing a policy.
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Life insurance owned by citizens or residents living abroad
If you are a U.S. citizen or permanent resident living outside the United States, you are still subject to income taxation by the United States. Since many countries tax on the basis of domicile, you may also be subject to tax in the country or territory in which you are living. The tax-deferred accumulation of gain that a life insurance policy provides under United States tax law may not be available under the tax laws of the country in which you are living. If you are living outside the United States or planning to do so, you should consult with a qualified tax adviser before purchasing or retaining ownership of a policy. If your policy is issued as a result of an exchange of a policy owned or issued outside the United States, you may be subject to tax in the country or territory in which you reside. You should consult with a qualified tax adviser before exchanging your policy issued outside of the United States for one issued within the United States.
Financial statements reference
The financial statements of John Hancock NY and the Separate Account can be found in the SAI. The financial statements of John Hancock NY should be distinguished from the financial statements of the Separate Account and should be considered only as bearing upon the ability of John Hancock NY to meet its obligations under the policies. Our general account is comprised of securities and other investments, the value of which may decline during periods of adverse market conditions.
Registration statement filed with the SEC
This prospectus omits certain information contained in the Registration Statement which has been filed with the SEC. More details may be obtained from the SEC upon payment of the prescribed fee.
Independent registered public accounting firm
The statutory-basis financial statements of John Hancock Life Insurance Company of New York at December 31, 2016 and 2015, and for each of the three years in the period ended December 31, 2016, and the financial statements of John Hancock Life Insurance Company of New York Separate Account B at December 31, 2016, and for each of the two years in the period ended December 31, 2016, appearing in this Prospectus and Registration Statement have been audited by Ernst &Young LLP, independent registered public accounting firm, as set forth in their reports thereon appearing elsewhere herein, and are included in reliance upon such reports given on the authority of such firm as experts in accounting and auditing.
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In addition to this prospectus, John Hancock NY has filed with the SEC an SAI that contains additional information about John Hancock NY and the Separate Account, including information on our history, services provided to the Separate Account, legal and regulatory matters and the audited financial statements for John Hancock NY and the Separate Account. The SAI and personalized illustrations of death benefits, policy values and surrender values are available, without charge, upon request. You may obtain the personalized illustrations from your John Hancock NY representative. The SAI may be obtained by contacting the John Hancock NY Service Office. You should also contact the John Hancock NY Service Office to request any other information about your policy or to make any inquiries about its operation.
JOHN HANCOCK NY SERVICE OFFICE
Overnight Express Delivery Mail Delivery
Life Post Issue - Specialty Products
John Hancock Insurance Company
30 Dan Road, Suite #55979
Canton, MA 02021 		Life Post Issue - Specialty Products
John Hancock Insurance Company
PO Box 55979
Boston, MA 02205
Phone: Fax:
1-800-521-1234 1-617-572-1571
Information about the Separate Account (including the SAI) can be reviewed and copied at the SEC’s Public Reference Branch, 100 F Street, NE, Room 1580, Washington, DC, 20549. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 202-551-8090. Reports and other information about the Account are available on the SEC’s Internet website at http://www.sec.gov. Copies of such information may be obtained, upon payment of a duplicating fee, by writing the Public Reference Section of the SEC at 100 F Street, NE, Washington, DC 20549-0102.
1940 Act File No. 811-8329—1933 Act File No. 333-152408

Table of Contents
Statement of Additional Information
dated May 1, 2017
for interests in
John Hancock Life Insurance Company of New York Separate Account B
(Name of Registrant)
JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK
(“John Hancock NY”)
(Name of Depositor)
This is a Statement of Additional Information (“SAI”). It is not the prospectus. The prospectus, dated the same date as this SAI, may be obtained from a John Hancock NY representative or by contacting our Service Office by mail at Life Post Issue, John Hancock Insurance Company, PO Box 55979, Boston, MA 02205, or telephone at 1-800-827-4546.
TABLE OF CONTENTS

 

Description of the Depositor
Under the Federal securities laws, the entity responsible for organization of the registered separate account underlying the variable life insurance policy is known as the “Depositor.” The Depositor is John Hancock NY, a stock life insurance company organized under the laws of New York in 1992. We are a licensed life insurance company in the state of New York. Until 2004, John Hancock NY had been known as The Manufacturers Life Insurance Company of New York.
John Hancock NY is a wholly-owned subsidiary of John Hancock Life Insurance Company (U.S.A.), a life insurance company domiciled in Michigan. Our ultimate parent is Manulife Financial Corporation (“MFC”), a publicly traded company based in Toronto, Canada. MFC is the holding company of The Manufacturers Life Insurance Company and its subsidiaries, collectively known as Manulife Financial.
Description of the Registrant
Under the Federal securities laws, the registered separate account underlying the variable life insurance policy is known as the “Registrant.” John Hancock Life Insurance Company of New York Separate Account B (the “Registrant” or “Separate Account”), is a separate account established by the Depositor under NY law. The variable investment options shown on page 1 of the prospectus are subaccounts of the Separate Account. The Separate Account meets the definition of “separate account” under the Federal securities laws and is registered as a unit investment trust under the Investment Company Act of 1940 (“1940 Act”). Such registration does not involve supervision by the Securities and Exchange Commission (“SEC”) of the management of the Separate Account or of the Depositor.
New subaccounts may be added and made available to policy owners from time to time. Existing subaccounts may be modified or deleted at any time.
Services
Administration of policies issued by the Depositor and of registered separate accounts organized by the Depositor may be provided by other affiliates. Neither the Depositor nor the separate accounts are assessed any charges for such services.
Custodianship and depository services for the Registrant are provided by State Street Investment Services (“State Street”). State Street’s address is State Street Financial Center, One Lincoln Street, Boston, Massachusetts, 02111.
Independent registered public accounting firm
The statutory-basis financial statements of John Hancock Life Insurance Company of New York at December 31, 2016 and 2015, and for each of the three years in the period ended December 31, 2016, and the financial statements of John Hancock Life Insurance Company of New York Separate Account B at December 31, 2016, and for each of the two years in the period ended December 31, 2016, appearing in this Prospectus and Registration Statement have been audited by Ernst &Young LLP, independent registered public accounting firm, as set forth in their reports thereon appearing elsewhere herein, and are included in reliance upon such reports given on the authority of such firm as experts in accounting and auditing.
Legal and Regulatory Matters
There are no legal proceedings to which the Depositor, the Separate Account or the principal underwriter is a party or to which the assets of the Separate Account are subject that are likely to have a material adverse effect on the Separate Account or the ability of the principal underwriter to perform its contract with the Separate Account or of the Depositor to meet its obligations under the policies.
Principal Underwriter/Distributor
John Hancock Distributors LLC (“JH Distributors”), a Delaware limited liability company affiliated with the Depositor, is the principal distributor and underwriter of the securities offered through the prospectus. JH Distributors acts as the principal distributor of a number of other life insurance and annuity products we and our affiliates offer or maintain. JH Distributors also acts as the principal underwriter of John Hancock Variable Insurance Trust (the “Trust”), whose securities are used to fund certain variable investment options under the policies and under other life insurance and annuity products we offer or maintain.
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JH Distributors' principal address is 601 Congress Street, Boston, MA 02210, and it also maintains offices with us at 197 Clarendon Street, Boston, MA 02116. JH Distributors is a broker-dealer registered under the Securities Act of 1934 (the “1934 Act”) and is a member of the Financial Industry Regulatory Authority (“FINRA”).
We offer the policies for sale through individuals who are licensed as insurance agents and who are registered representatives of broker-dealers that have entered into selling agreements with JH Distributors. Our affiliate Signator Investors, Inc. is one such broker-dealer.
The aggregate dollar amount of underwriting commissions paid to JH Distributors by the Depositor and its affiliates in connection with the sale of variable life products in 2016, 2015, and 2014, was $100,416,732, $120,545,566, and, 132,392,739, respectively. JH Distributors did not retain any of these amounts during such periods.
The registered representative through whom your policy is sold will be compensated pursuant to the registered representative’s own arrangement with his or her broker-dealer. Compensation to broker-dealers for the promotion and sale of the policies is not paid directly by policy owners but will be recouped through the fees and charges imposed under the policy.
Additional compensation and revenue sharing arrangements may be offered to certain broker-dealer firms and other financial intermediaries. The terms of such arrangements may differ among firms we select based on various factors. In general, the arrangements involve three types of payments or any combination thereof:
•  Fixed dollar payments: The amount of these payments varies widely. JH Distributors may, for example, make one or more payments in connection with a firm’s conferences, seminars or training programs, seminars for the public, advertising and sales campaigns regarding the policies, to assist a firm in connection with its systems, operations and marketing expenses, or for other activities of a selling firm or wholesaler. JH Distributors may make these payments upon the initiation of a relationship with a firm, and at any time thereafter.
•  Payments based upon sales: These payments are based upon a percentage of the total amount of money received, or anticipated to be received, for sales through a firm of some or all of the insurance products that we and/or our affiliates offer. JH Distributors makes these payments on a periodic basis.
•  Payments based upon “assets under management”: These payments are based upon a percentage of the policy value of some or all of our (and/or our affiliates’) insurance products that were sold through the firm. JH Distributors makes these payments on a periodic basis.
Our affiliated broker-dealer, Signator Investors, Inc., may pay its respective registered representatives additional cash incentives, such as bonus payments, expense payments, health and retirement benefits or the waiver of overhead costs or expenses in connection with the sale of the policies that they would not receive in connection with the sale of policies issued by unaffiliated companies.
Additional Information About Charges
A policy will not be issued until the underwriting process has been completed to our satisfaction. The underwriting process generally includes the obtaining of information concerning your age, medical history, occupation and other personal information. This information is then used to determine the cost of insurance charge.
Special purchase programs for eligible classes
The policy may be available for purchase by corporations and other groups or sponsoring organizations. Group or sponsored arrangements may include reduction or elimination of withdrawal charges and deductions for employees, officers, directors, agents and immediate family members of the foregoing. We reserve the right to reduce any of the policy's charges on certain cases where it is expected that the amount or nature of such cases will result in savings of sales, underwriting, administrative, commissions or other costs. Eligibility for these reductions and the amount of reductions will be determined by a number of factors, including the number of lives to be insured, the total premiums expected to be paid, total assets under management for the policyowner, the nature of the relationship among the insured individuals, the purpose for which the policies are being purchased, expected persistency of the individual policies, and any other circumstances which we believe to be relevant to the expected reduction of its expenses. Some of these reductions may be guaranteed and others may be subject to withdrawal or modifications, on a uniform case basis. Reductions in charges will not be unfairly discriminatory to any policyowners. We may modify from time to time, on a uniform basis, both the amounts of reductions and the criteria for qualification.
3

 

333-85296 333-131134 333-152408
333-88972 333-132905 333-153253
333-33504 333-141693 333-157213
333-100664 333-148992 333-179571
333-127543 333-151631 333-193995
333-131139   333-194819
4

Table of Contents

AUDITED STATUTORY-BASIS FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

John Hancock Life Insurance Company of New York

For the Years Ended December 31, 2016, 2015 and 2014

With Report of Independent Auditors

Table of Contents

AUDITED STATUTORY-BASIS FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

YEARS ENDED DECEMBER 31, 2016, 2015 AND 2014

Contents

 

Report of Independent Auditors

      F-1  

Statutory-Basis Financial Statements:

   

Balance Sheets-

Statutory-Basis

      F-3  

Statements of Operations-

Statutory-Basis

      F-5  

Statements of Changes in Capital and Surplus-

Statutory-Basis

      F-6  

Statements of Cash Flow-

Statutory-Basis

      F-7  

Notes to Statutory-Basis Financial Statements

      F-8  

Table of Contents

Report of Independent Auditors

The Board of Directors and Stockholder

John Hancock Life Insurance Company of New York

We have audited the accompanying statutory-basis financial statements of John Hancock Life Insurance Company of New York (the Company), which comprise the balance sheets as of December 31, 2016 and 2015 and the related statements of operations, changes in capital and surplus and cash flow for each of the three years in the period ended December 31, 2016 and the related notes to the financial statements.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in conformity with accounting practices prescribed or permitted by the New York State Department of Financial Services. Management also is responsible for the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free of material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Basis for Adverse Opinion on U.S. Generally Accepted Accounting Principles

As described in Note 2, to meet the requirements of New York the financial statements have been prepared in conformity with accounting practices prescribed or permitted by the New York State Department of Financial Services, which practices differ from U.S. generally accepted accounting principles. The variances between such practices and U.S. generally accepted accounting principles are described in Note 2. The effects on the accompanying financial statements of these variances are not reasonably determinable but are presumed to be material.

Adverse Opinion on U.S. Generally Accepted Accounting Principles

In our opinion, because of the effects of the matter described in the preceding paragraph, the statutory-basis financial statements referred to above do not present fairly, in conformity with U.S. generally accepted accounting principles, the financial position of the Company at December 31, 2016 and 2015, or the results of its operations or its cash flows for each of the three years in the period ended December 31, 2016.

 

F-1

Table of Contents

Opinion on Statutory-Basis of Accounting

However, in our opinion, the statutory-basis financial statements referred to above present fairly, in all material respects, the financial position of the Company at December 31, 2016 and 2015, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2016 in conformity with accounting practices prescribed or permitted by the New York State Department of Financial Services.

/s/ Ernst & Young LLP

Boston, Massachusetts

March 29, 2017

 

F-2

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

BALANCE SHEETS – STATUTORY-BASIS

 

     December 31,  
     2016      2015  
  

 

 

  
     (in millions)  

Admitted assets

      

Cash and invested assets:

      

Bonds

        $ 4,927          $ 4,636  

Stocks:

      

Preferred stocks

      7        -  

Common stocks

      153        76  

Investments in affiliates

      -        55  

Mortgage loans on real estate

      789        806  

Real estate:

      

Investment properties

      229        181  

Cash, cash equivalents and short-term investments

      10        72  

Policy loans

      104        170  

Derivatives

      752        756  

Receivable for collateral on derivatives

      9        4  

Receivable for securities

      1        1  

Other invested assets

      654        402  
  

 

 

     

 

 

  

Total cash and invested assets

      7,635        7,159  

Investment income due and accrued

      86        79  

Premiums due and deferred

      20        17  

Amounts recoverable from reinsurers

      22        23  

Funds held by or deposited with reinsured companies

      920        930  

Net deferred tax asset

      89        83  

Other reinsurance receivable

      31        16  

Amounts due from affiliates

      390        579  

Other assets

      11        56  

Assets held in separate accounts

      7,503        7,448  
  

 

 

     

 

 

  

Total admitted assets

        $   16,707          $   16,390  
  

 

 

     

 

 

  

The accompanying notes are an integral part of the statutory-basis financial statements.

 

F-3

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

BALANCE SHEETS – STATUTORY-BASIS – (CONTINUED)

 

     December 31,  
     2016     2015  
  

 

 

  
     (in millions)  

Liabilities and capital and surplus

     

Liabilities:

     

Policy and contract obligations:

     

Policy reserves

        $ 5,816         $ 5,675  

Policyholders’ and beneficiaries funds

      257       266  

Dividends payable to policyholders

      15       17  

Policy benefits in process of payment

      40       25  

Other amount payable on reinsurance

      41       411  

Other policy obligations

      1       2  
  

 

 

    

 

 

  

Total policy and contract obligations

      6,170       6,396  

Payable to parent and affiliates

      101       86  

Transfers to (from) separate account, net

      (31 )      (38 ) 

Asset valuation reserve

      80       72  

Reinsurance in unauthorized companies

      10       7  

Funds withheld from unauthorized reinsurers

      334       331  

Interest maintenance reserve

      393       170  

Current federal income taxes payable

      204       -  

Derivatives

      456       468  

Payables for collateral on derivatives

      40       120  

Other general account obligations

      42       20  

Obligations related to separate accounts

      7,503       7,448  
  

 

 

    

 

 

  

Total liabilities

      15,302       15,080  

Capital and surplus:

     

Common stock (par value $1; 3,000,000 shares authorized;
2,000,003 shares issued and outstanding at December 31, 2016 and 2015)

      2       2  

Paid-in surplus

      913       913  

Unassigned surplus

      490       395  
  

 

 

    

 

 

  

Total capital and surplus

      1,405       1,310  
  

 

 

    

 

 

  

Total liabilities and capital and surplus

        $   16,707         $   16,390  
  

 

 

    

 

 

  

 

 

The accompanying notes are an integral part of the statutory-basis financial statements.

 

 

F-4

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

STATEMENTS OF OPERATIONS – STATUTORY-BASIS

 

     Years Ended December 31,  
     2016     2015     2014  
  

 

 

  
     (in millions)  

Premiums and other revenues:

       

Life, long-term care and annuity premiums

        $     1,530     $   1,751     $ 1,041  

Consideration for supplementary contracts with life contingencies

      9       12       23  

Net investment income

      314       335       380  

Amortization of interest maintenance reserve

      18       14       14  

Commissions and expense allowance on reinsurance ceded

      209       (34 )      38  

Reserve adjustment on reinsurance ceded

      (427 )      (8 )      (7 ) 

Separate account administrative and contract fees

      103       110       114  

Other revenue

      40       30       21  
  

 

 

    

 

 

    

 

 

  

Total premiums and other revenues

      1,796       2,210       1,624  

Benefits paid or provided:

       

Death, surrender and other contract benefits, net

      1,334       1,361           1,392  

Annuity benefits

      182       164       242  

Disability and long-term care benefits

      1       1       1  

Interest and adjustments on policy or deposit-type funds

      (5 )      10       7  

Payments on supplementary contracts with life contingencies

      9       8       7  

Increase (decrease) in life and long-term care reserves

      213       988       433  
  

 

 

    

 

 

    

 

 

  

Total benefits paid or provided

      1,734       2,532       2,082  

Insurance expenses and other deductions:

       

Commissions and expense allowance on reinsurance assumed

      83       164       99  

General expenses

      50       48       51  

Insurance taxes, licenses and fees

      7       9       5  

Net transfers to (from) separate accounts

      (347 )      (469 )      (517 ) 

Investment income ceded

      101       90       207  

Other deductions

      (78 )      (113 )      (99 ) 
  

 

 

    

 

 

    

 

 

  

Total insurance expenses and other deductions

      (184 )      (271 )      (254 ) 

Income (loss) from operations before dividends to policyholders, federal income taxes and net realized capital gains (losses)

      246       (51 )      (204 ) 

Dividends to policyholders

      20       30       6  
  

 

 

    

 

 

    

 

 

  

Income (loss) from operations before federal income taxes and net realized capital gains (losses)

      226       (81 )      (210 ) 

Federal income tax expense (benefit)

      85       (74 )      (3 ) 
  

 

 

    

 

 

    

 

 

  

Income (loss) from operations before net realized capital gains (losses)

      141       (7 )      (207 ) 

Net realized capital gains (losses)

      (61 )      (11 )      (25 ) 
  

 

 

    

 

 

    

 

 

  

Net income (loss)

        $ 80     $ (18 )    $ (232 ) 
  

 

 

    

 

 

    

 

 

  

 

 

The accompanying notes are an integral part of the statutory-basis financial statements.

 

F-5

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

STATEMENTS OF CHANGES IN CAPITAL AND SURPLUS – STATUTORY-BASIS

 

     Common
Stock		      Paid-in
Surplus		      Unassigned
Surplus
(Deficit)		     Total
Capital and
Surplus		  
  

 

 

  
     (in millions)  

Balances at January 1, 2014

        $   2      $     913      $ 369     $ 1,284  

Net income (loss)

            (232 )      (232 ) 

Change in net unrealized capital gains (losses)

            134       134  

Change in net deferred income tax

            91       91  

Decrease (increase) in non-admitted assets

            (15 )      (15 ) 

Change in liability for reinsurance in unauthorized reinsurance

            (2 )      (2 ) 

Decrease (increase) in asset valuation reserves

            (41 )      (41 ) 

Change in surplus as a result of reinsurance

            (11 )      (11 ) 

Other adjustments, net

            7       7  
  

 

 

  

Balances at December 31, 2014

      2        913        300       1,215  

Net income (loss)

         (18 )      (18 ) 

Change in net unrealized capital gains (losses)

            26       26  

Change in net deferred income tax

            (38 )      (38 ) 

Decrease (increase) in non-admitted assets

            75       75  

Change in liability for reinsurance in unauthorized reinsurance

            (1 )      (1 ) 

Decrease (increase) in asset valuation reserves

            (11 )      (11 ) 

Change in surplus as a result of reinsurance

            55       55  

Other adjustments, net

         7       7  
  

 

 

  

Balances at December 31, 2015

      2        913        395       1,310  

Net income (loss)

            80       80  

Change in net unrealized capital gains (losses)

            17       17  

Change in net deferred income tax

            42       42  

Decrease (increase) in non-admitted assets

            (28 )      (28 ) 

Change in liability for reinsurance in unauthorized reinsurance

            (3 )      (3 ) 

Decrease (increase) in asset valuation reserves

            (8 )      (8 ) 

Change in surplus as a result of reinsurance

            (17 )      (17 ) 

Other adjustments, net

            12       12  
  

 

 

  

Balances at December 31, 2016

        $ 2      $ 913      $ 490     $ 1,405  
  

 

 

  

 

The accompanying notes are an integral part of the statutory-basis financial statements.

 

 

F-6

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

STATEMENTS OF CASH FLOW – STATUTORY-BASIS

 

 

     Years Ended December 31,  
     2016     2015     2014  
  

 

 

  
     (in millions)  

Operations

   

Premiums and other considerations collected, net of reinsurance

        $     1,537     $     2,446     $     1,064  

Net investment income received

      324       346       417  

Separate account fees

      103       110       114  

Commissions and expenses allowance on reinsurance ceded

      192       21       27  

Miscellaneous income

      50       (147 )      18  

Benefits and losses paid

      (2,364 )      (1,263 )      (1,696 ) 

Net transfers from (to) separate accounts

      355       492       541  

Commissions and expenses (paid) recovered

      (179 )      (228 )      (262 ) 

Dividends paid to policyholders

      (22 )      (1 )      (7 ) 

Federal and foreign income and capital gain taxes (paid) recovered

      34       5       (39 ) 
  

 

 

  

Net cash provided by operating activities

      30       1,781       177  

Investment activities

       

Proceeds from sales, maturities, or repayments of investments:

       

Bonds

      3,313       2,021       2,342  

Stocks

      62       1       4  

Mortgage loans on real estate

      40       138       91  

Real estate

      1       (1 )      33  

Other invested assets

      63       32       17  
  

 

 

  

Total investment proceeds

      3,479       2,191       2,487  

Cost of investments acquired:

       

Bonds

      3,273       1,660       2,162  

Stocks

      85       70       2  

Mortgage loans on real estate

      24       187       27  

Real estate

      58       4       (2 ) 

Other invested assets

      300       243       117  

Derivatives

      60       14       37  
  

 

 

  

Total cost of investments acquired

      3,800       2,178       2,343  

Net increase (decrease) in receivable/payable for securities and collateral on derivatives

      (85 )      (23 )      116  

Net (increase) decrease in policy loans

      66       (9 )      (18 ) 
  

 

 

  

Net cash provided by (used in) investment activities

      (340 )      (19 )      242  

Financing and miscellaneous activities

       

Net deposits (withdrawals) on deposit-type contracts

      (8 )      (6 )      (9 ) 

Other cash provided (applied)

      256       (1,796 )      (332 ) 
  

 

 

  

Net cash provided by (used in) financing and miscellaneous activities

      248       (1,802 )      (341 ) 

Net increase (decrease) in cash, cash equivalents and short-term investments

      (62 )      (40 )      78  

Cash, cash equivalents and short-term investments at beginning of year

      72       112       34  
  

 

 

  

Cash, cash equivalents and short-term investments at end of year

        $ 10     $ 72     $ 112  
  

 

 

  

Non-cash investing activities during the year:

   

Premium, deposit type contracts and other operating activity for New York Life (“NYL”) 2015 reinsurance transaction and other affiliate transactions, net

        $ 26     $ 1,395     $ -  

Transfer of invested assets for NYL 2015 reinsurance transactions and other affiliates, net

      (26 )      (1,395 )      -  

 

The accompanying notes are an integral part of the statutory-basis financial statements.

 

 

F-7

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS

 

1. Organization and Nature of Operations

John Hancock Life Insurance Company of New York (the “Company”) is a life insurance company organized on February 10, 1992 under the laws of the State of New York. The New York State Department of Financial Services (the “Insurance Department”) granted the Company a license to operate on July 22, 1992. The Company is a wholly-owned subsidiary of John Hancock Life Insurance Company (U.S.A.) (“JHUSA”). JHUSA is a wholly-owned subsidiary of The Manufacturers Investment Corporation (“MIC”). MIC is a wholly-owned subsidiary of John Hancock Financial Corporation (“JHFC”), which is an indirect, wholly-owned subsidiary of The Manufacturers Life Insurance Company (“MLI”). MLI, in turn, is a wholly-owned subsidiary of Manulife Financial Corporation (“MFC”), a Canadian-based, publicly traded financial services holding company.

The Company provides a wide range of financial protection and wealth management products and services to both individual and institutional customers. Through its insurance operations, the Company offers a variety of individual life insurance products that are distributed through multiple distribution channels, including insurance agents, brokers, banks, financial planners, and direct marketing. The Company also offers a variety of retirement products to retirement plans. The Company distributes these products through multiple distribution channels, including insurance agents and affiliated brokers, securities brokerage firms, financial planners, pension plan sponsors, pension plan consultants, and banks.

Pursuant to a distribution agreement with the Company, John Hancock Distributors LLC (“JHD”), a registered broker-dealer and a wholly-owned subsidiary of JHUSA, acts as the principal underwriter of variable life contracts and other products issued by the Company.

The Company had two wholly-owned subsidiary C corporations for the purposes of owning real estate, John Hancock Illinois Real Estate Holdings, Inc. (“JHIREH”) and John Hancock California Real Estate Holdings, Inc. (“JHCREH”). These companies were dissolved and six single member LLCs were formed as of December 31, 2016 to hold the real estate. The LLCs are direct subsidiaries of, and wholly-owned by the Company.

2. Significant Accounting Policies

Use of Estimates

The preparation of financial statements requires management to make estimates and assumptions that affect amounts reported in the financial statements and accompanying notes. Such estimates and assumptions could change in the future as more information becomes known and may impact the amounts reported and disclosed herein.

Basis of Presentation

These financial statements have been prepared in conformity with accounting practices prescribed or permitted by the Insurance Department. The National Association of Insurance Commissioners’ (“NAIC”) Accounting Practices and Procedures Manual (“NAIC SAP”) has been adopted as a component of practices prescribed or permitted by the State of New York. The New York Superintendent of the Insurance Department (the “Superintendent”) has the authority to prescribe or permit other specific practices that deviate from prescribed practices. NAIC SAP practices differ from accounting principles generally accepted in the United States (“GAAP”) as described below.

Investments: Investments in bonds not backed by other loans are principally stated at amortized cost using the constant yield (interest) method. Bonds can also be stated at the lesser of amortized cost or fair value based on their NAIC designated rating. Non-redeemable preferred stocks, which have characteristics of equity securities, are reported at cost or lower of cost or market value as determined by the Securities Valuation Office of the NAIC (“SVO”) rating, and the related net unrealized capital gains (losses) are reported in unassigned surplus along with any adjustment for federal income taxes.

For bonds other than loan-backed and structured securities, the Company has a process in place to identify securities that could potentially have an impairment that is other-than-temporary. The Company recognizes other-than-temporary impairment losses on bonds with unrealized losses when either of the following two conditions exist: the entity either (1) has the intent to sell the debt security or (2) is more likely than not to be required to sell the debt security before its anticipated recovery. Declines in value due to credit difficulties are also considered to be other-than-temporarily impaired when the

 

F-8

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

2. Significant Accounting Policies - (continued)

 

Company does not have the intent and ability to hold the security for a period of time sufficient to allow for any anticipated recovery in value. The entire difference between amortized cost and fair value on such bonds with credit difficulties is recognized as an impairment loss in income.

Loan-backed and structured securities (i.e., collateralized mortgage obligations) are adjusted for the effects of changes in prepayment assumptions on the related accretion of discounts or amortization of premiums of such securities using either the retrospective or prospective methods. The retrospective adjustment method is used to value all such securities, except principal-only and interest-only securities and such securities with NAIC designations of 3-6, which are valued using the prospective method. If it is determined that a decline in fair value is other-than-temporary, the cost basis of the security is written down to the present value of estimated future cash flows using the original effective interest rate inherent in the security.

Common stocks are primarily reported at fair value based on quoted market prices and the related net unrealized capital gains (losses) are reported in unassigned surplus, net of any adjustment for federal income taxes. There are no restrictions on common and preferred stocks.

Non-insurance subsidiaries, which have significant ongoing operations other than for the benefit of the Company and its affiliates, are reported at GAAP equity. Dividends from subsidiaries are included in net investment income. The remaining net change in the subsidiaries’ equity is included in the change in net unrealized capital gains (losses).

Realized capital gains (losses) on sales of securities are recognized using the first in, first out (“FIFO”) method. The cost basis of bonds, common and preferred stocks, and other invested assets is adjusted for impairments in value deemed to be other-than-temporary and such adjustments are reported as a component of net realized capital gains (losses).

Mortgage loans on real estate are reported at unpaid principal balances, less an allowance for impairments. Valuation allowances, if necessary, are established for mortgage loans on real estate based on the difference between the net value of the collateral, determined as the fair value of the collateral less estimated costs to obtain and sell, and the recorded investment in the mortgage loan. The initial valuation allowance and subsequent changes in the allowance for mortgage loans are charged or credited directly to unassigned surplus. A mortgage loan is considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all principal and interest amounts due according to the contractual terms of the mortgage agreement. When management determines foreclosure is probable and the impairment is other-than-temporary, the mortgage loan is written down and a realized loss is recognized.

Real estate held for the production of income is reported at depreciated cost, net of related obligations. Real estate that the Company has the intent to sell is reported at the lower of depreciated cost or fair value, net of related obligations. Depreciation is calculated on a straight-line basis over the estimated useful lives of the properties.

Cash equivalents are short-term highly liquid investments with original maturities of three months or less and are principally stated at amortized cost. Short-term investments include investments with maturities of one year or less and greater than three months at the date of acquisition and are principally stated at amortized cost.

Policy loans are reported at unpaid principal balances.

Derivative instruments that meet the criteria to qualify for hedge accounting are accounted for in a manner consistent with the item hedged (i.e., amortized cost or fair value with the related net unrealized capital gains (losses) reported in unassigned surplus along with any adjustment for federal income taxes). Derivative instruments that are entered into for other than hedging purposes or that do not meet the criteria to qualify for hedge accounting are accounted for at fair value, and the related changes in fair value are recognized as net unrealized capital gains (losses) reported in unassigned surplus, net of any adjustments for federal income taxes. Embedded derivatives are not accounted for separately from the host contract.

Other invested assets consist of ownership interests in partnerships and limited liability companies (“LLCs”) which are carried based on the underlying GAAP equity, with the exception of affordable housing tax credit properties, which are carried at amortized cost. The related net unrealized capital gains (losses) are reported in unassigned surplus, net of any adjustments for federal income taxes. The Company records its share of income using the most recent financial information available, which is generally on a three month lag. Depending on the timing of receipt of the audited financial statements of these other invested assets, the investee level financial data may be up to one year in arrears.

 

F-9

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

2. Significant Accounting Policies - (continued)

 

Interest Maintenance and Asset Valuation Reserves: Under a formula prescribed by the NAIC, the Company defers the portion of realized capital gains (losses) on sales of fixed income investments, principally bonds and mortgage loans, and interest-related hedging activities that are attributable to changes in the general level of interest rates and amortizes those deferrals over the remaining period to maturity based on groupings of individual securities sold in five-year bands. That net deferral is reported as the interest maintenance reserve (“IMR”) in the accompanying Balance Sheets. Realized capital gains (losses) are reported in income, net of federal income tax and transferred to the IMR. The asset valuation reserve (“AVR”) provides a valuation allowance for invested assets. The AVR is determined by an NAIC prescribed formula with changes reflected directly in unassigned surplus.

Subsidiaries: The accounts and operations of the Company’s subsidiaries are not consolidated with the accounts and operations of the Company.

Separate Accounts: Separate account assets and liabilities reported in the accompanying Balance Sheets represent funds that are separately administered, principally for annuity contracts and variable life insurance policies, and for which the contract holder, rather than the Company, bears the investment risk. Separate account obligations are intended to be satisfied from separate account assets and not from assets of the general account. Separate accounts are generally reported at fair value. The operations of the separate accounts are not included in the Statements of Operations; however, income earned on amounts initially invested by the Company in the formation of new separate accounts is included in other revenue. Fees charged to contract holders, principally mortality, policy administration, and surrender charges are included in separate account administrative and contract fees. The assets in the separate accounts are not pledged to others as collateral or otherwise restricted. For the years ended December 31, 2016, 2015 and 2014, there were no gains (losses) on transfers of assets from the general account to the separate account.

Nonadmitted Assets: Certain assets designated as nonadmitted, principally deferred income taxes, the Company’s investment in John Hancock Investment Management Services, LLC (“JHIMS”), an affiliated company, furniture and equipment, and other assets not specifically identified as admitted assets within the NAIC SAP are excluded from the accompanying Balance Sheets and are charged directly to unassigned surplus.

Policy Acquisition Costs: The costs of acquiring and renewing business are expensed when incurred.

Policy Reserves: Reserves for life, annuity, and deposit-type contracts are developed by actuarial methods and are determined based on interest rates, mortality tables and valuation methods prescribed by the NAIC that will provide, in the aggregate, reserves that are greater than or equal to the maximum of guaranteed policy cash values or the amounts required by the Superintendent.

 

  •  

The Company waives deduction of deferred fractional premiums on the death of lives insured and annuity contract holders and returns any premium beyond the date of death. Surrender values on policies do not exceed the corresponding benefit reserves. Additional reserves are established when the results of Asset Adequacy Testing (“AAT”) indicate the need for such reserves or the net premiums exceed the gross premiums on any insurance in-force. The Company is holding an additional $335 million and $380 million of reserves at December 31, 2016 and 2015, respectively, as a result of asset adequacy analysis. At December 31, 2016 and 2015, the Company held reserves of $404 million and $343 million, respectively, on insurance in-force amounts for which gross premiums were less than net premiums according to the standard of valuation set by the State of New York.

 

  •  

Reserves for individual life insurance policies are maintained using the 1941, 1958, 1980 and 2001 Commissioner’s Standard Ordinary Mortality Tables and using principally the net level premium method and the Commissioner’s Reserve Valuation Method.

 

  •  

Annuity and supplementary contracts with life contingency reserves are based principally on the 1937 Standard Annuity Table, the Group Annuity Mortality Tables for 1951, 1971, 1983 and 1994, the 1971 and 1983 Individual Annuity Mortality Tables, the A-2000 Individual Annuity Mortality Table, and the 2012 Individual Annuity Mortality Table.

 

  •  

Liabilities related to policyholder funds left on deposit with the Company are generally equal to fund balances.

 

F-10

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

2. Significant Accounting Policies - (continued)

 

  •  

The mean reserve method is used to adjust the calculated terminal reserve to the appropriate reserve at December 31, 2016 or 2015. Mean reserves are determined by computing the terminal reserve for the plan at the rated age and assuming annual premiums have been paid as of the valuation date. For certain policies with substandard table ratings, mean reserves are based on rated mortality from 125% to 500% of standard rating; for certain policies with flat extra ratings, mean reserves are based on standard mortality rates increased by 1 to 25 deaths per thousand. An asset is recorded for deferred premiums, net of loading, to adjust the reserve for modal premium payments.

 

  •  

The deferred premium is never greater than the gross premium.

 

  •  

Tabular interest, tabular less actual reserve released, and tabular costs have been determined by formula. Tabular interest on funds not involving life contingencies is calculated as one percent of the product of such valuation rate of interest times the mean of the amount of funds subject to such valuation rate of interest held at the beginning and end of the valuation year.

 

  •  

The State of New York requires the Company to calculate reserves for guaranteed minimum death benefits for variable universal life under Regulation 147 and to hold reserves under this Regulation. Based on the aforementioned calculation at December 31, 2016 and 2015, the Company recorded additional reserves of $29 million and $26 million, respectively, pursuant to Regulation 147.

 

  •  

The State of New York also requires the Company to calculate reserves for universal life products with secondary guarantees under Regulation 147 and to hold reserves under this Regulation. Based on the aforementioned calculation at December 31, 2016 and 2015, the Company recorded additional reserves of $185 million and $139 million, respectively, pursuant to Regulation 147. The Company is holding an additional $45 million and $90 million of reserves at December 31, 2016 and 2015, respectively, as a result of AAT.

 

  •  

From time to time, the Company finds it appropriate to modify certain required policy reserves because of changes in actuarial assumptions. Reserve modifications resulting from such determinations are recorded directly to unassigned surplus.

 

  •  

Reserves for variable deferred annuity contracts are calculated in accordance with NAIC Actuarial Guideline 43, and primarily use the 1994 Minimum Guaranteed Death Benefit or Annuity 2000 tables. The reserve is based on the worst present value of accumulated losses from the perspective of the Company. The liability is evaluated under both a standard scenario and stochastic scenario, and the Company holds the higher of the standard or stochastic values.

Reinsurance: Reinsurance ceded contracts do not relieve the Company from its obligations to policyholders. The Company remains liable to its policyholders for the portion reinsured to the extent that any reinsurer does not meet its obligations for reinsurance ceded to it under the reinsurance agreements. Failure of the reinsurers to honor their obligations could result in losses to the Company; consequently, estimates are established for amounts deemed or estimated to be uncollectible. To minimize its exposure to significant losses from reinsurance insolvencies, the Company evaluates the financial condition of its reinsurers and monitors concentration of credit risk arising from similar characteristics of the insurer.

Premiums, commissions, expense reimbursements, benefits, and reserves related to reinsured business are accounted for on bases consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums ceded to other companies have been reported as a reduction of premium income. Amounts applicable to reinsurance ceded for future policy benefits, unearned premium reserves, and claim liabilities have been reported as reductions of these items.

The Company records a liability for unsecured policy reserves ceded to reinsurers not authorized in the State of New York to assume such business. Changes to those amounts are credited or charged directly to unassigned surplus. Policy and contract liabilities ceded to reinsurers have been reported as reductions of the related reserves. Commissions allowed by reinsurers on business ceded are reported as income when received. Investment income ceded includes separate account fee income, net investment income and realized investment and other gains (losses), which was ceded to the affiliated reinsurers. NAIC SAP prescribes that no gain be recognized upon inception of a reinsurance treaty. The initial consideration is recorded directly to unassigned surplus and released into income over the life of the treaty.

 

F-11

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

2. Significant Accounting Policies - (continued)

 

Federal Income Taxes: Total federal income taxes are based upon the Company’s best estimate of its current and deferred tax assets or liabilities. Current tax expense is reported in the Statements of Operations as federal income tax expense if resulting from operations and within net unrealized capital gains (losses) if resulting from capital transactions. Changes in the balances of deferred taxes, which provide for book versus tax temporary differences, are subject to limitations and are reported within various lines within surplus. Accordingly, the reporting of statutory to tax temporary differences, such as reserves and policy acquisition costs, and of statutory to tax permanent differences, such as tax-exempt interest and tax credits, results in effective tax rates in the Statements of Operations that differ from the federal statutory tax rate.

Participating Insurance and Policyholder Dividends: Participating business which is assumed from JHUSA, represented approximately 18% and 19% of the Company’s aggregate reserve for group fixed annuity and life contracts at December 31, 2016 and 2015, respectively. The amount of policyholders’ dividends to be paid is approved annually by JHUSA’s Board of Directors. Policyholder dividends are recognized when declared rather than over the term of the related policies. The determination of the amount of policyholder dividends is complex and varies by policy type. In general, the aggregate amount of policyholders’ dividends is calculated based upon actual interest, mortality, morbidity, persistency, and expense experience for the year, as well as management’s judgment as to the appropriate level of statutory surplus to be retained by the Company.

Statements of Cash Flow: Cash, cash equivalents and short-term investments in the Statements of Cash Flow represent movements of cash and highly liquid debt investments with initial maturities of one year or less.

Premiums and Benefits: Premiums for whole, term, and universal life, annuity policies, and group annuity contracts with any mortality and morbidity risk are recognized as revenue when due. Revenues for universal life and annuity policies with mortality or morbidity risk consist of the entire premium received. Premiums received for variable universal life, as well as annuity policies and group annuity contracts without mortality or morbidity risk are recorded using deposit accounting and are credited directly to an appropriate policy reserve account, without recognizing premium revenue. Benefits incurred represent the total of death benefits paid, annuity benefits paid and the change in policy reserves.

Policy and Contract Claims: Policy and contract claims are determined on an individual-case basis for reported losses. Estimates of incurred but not reported losses are developed on the basis of past experience.

Guaranty Fund Assessments: Guaranty fund assessments are accrued when the Company receives knowledge of an insurance insolvency.

Variances Between NAIC SAP and GAAP: The more significant variances from GAAP are: (a) bonds would generally be reported at fair value; (b) changes in the fair value of derivative financial instruments would generally be reported as revenue unless deemed an effective hedge; (c) embedded derivatives would be bifurcated from the underlying contract or security and accounted for separately at fair value; (d) income recognition on partnerships and LLCs, which are accounted for under the equity method, would not be limited to the amount of cash distribution; (e) majority-owned noninsurance subsidiaries, variable interest entities where the Company is the primary beneficiary, and certain other controlled entities would be consolidated; (f) changes in the balances of deferred income taxes would generally be included in net income; (g) market value adjusted (“MVA”) annuity products would be reported in the general account of the Company; (h) all assets, subject to valuation allowances, would be recognized; (i) reserves would generally be based upon the net level premium method or the estimated gross margin method with estimates of future mortality, morbidity, persistency and interest; (j) reinsurance ceded, unearned ceded premium and unpaid ceded claims would be reported as an asset; (k) AVR and IMR would not be recorded; (l) changes to the mortgage loan valuation allowance would be reported in income; (m) surplus notes would be reported as liabilities; (n) premiums received in excess of policy charges for universal life and annuity policies would not be recognized as premium revenue and benefits would represent the excess of benefits paid over the policy account value and interest credited to the account values; (o) certain acquisition costs, such as commissions and other variable costs, directly related to acquiring new business are charged to current operations as incurred, would generally be capitalized and amortized based on profit emergence over the expected life of the policies or over the premium payment period; and (p) changes in unrealized capital gains (losses) and foreign currency translations would be presented as other comprehensive income.

The effects of the foregoing variances from GAAP on the accompanying statutory-basis financial statements have not been determined, but are presumed to be material.

 

F-12

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

3. Permitted or Prescribed Statutory Accounting Practices

The financial statements of the Company are presented in conformity with accounting practices prescribed or permitted by the Insurance Department.

For determining the Company’s solvency under the State of New York’s insurance laws and regulations, the Insurance Department recognizes only statutory accounting practices prescribed or permitted by the State of New York for determining and reporting the financial condition and results of operations of the Company. NAIC SAP has been adopted as a component of practices prescribed or permitted by the State of New York. The Superintendent has the authority to prescribe or permit other specific practices that deviate from prescribed practices. As of December 31, 2016 and 2015, the Superintendent had not prescribed or permitted the Company to use any accounting practices that would result in the Company’s income or financial position to deviate from NAIC SAP.

4. Accounting Changes

Accounting changes adopted to conform to the provisions of NAIC SAP are reported as changes in accounting principles. The cumulative effect of changes in accounting principles is reported as an adjustment to unassigned surplus in the period of the change in accounting principle. The cumulative effect is the difference between the amount of unassigned surplus at the beginning of the year and the amount of unassigned surplus that would have been reported at that date if the new accounting principle had been applied retrospectively.

Adoption of New Accounting Standards

In March 2015, the NAIC adopted revisions to Statement of Statutory Accounting Principles (“SSAP”) No. 1, Disclosure of Accounting Policies, Risks and Uncertainties and Other Disclosures (“SSAP 1”) regarding management’s assessment of an entity’s ability to continue as a going concern. The pronouncement requires management to assess the entity’s ability to continue as a going concern, and provide footnote disclosures when conditions give rise to substantial doubt about an entity’s ability to continue as a going concern within one year from the financial statement issuance date. The new guidance is effective December 31, 2016. The guidance had no impact on the Company’s financial position, results of operations, and financial statement disclosures.

Future Adoption of New Accounting Standards

In August, 2016, the NAIC adopted substantive revisions to SSAP No. 51 — Life Contracts in order to allow principle-based reserving (“PBR”) for life insurance contracts as specified in the Valuation Manual. Current statutory accounting guidance refers to existing model laws for reserving guidance which are primarily based on formulaic methodology. Also, in June 2016, the NAIC adopted updates to Appendix A-820: Minimum Life and Annuity Reserve Standards as part of the PBR project, which incorporate relevant aspects of the 2009 revisions to the Standard Valuation Law (Model #820) into Appendix A-820. The effective date is January 1, 2017 and companies are allowed to defer adoption for three years until January 1, 2020. The Company has opted to postpone implementation of PBR until 2020 and is currently assessing the impact of these revisions on its financial statements. Adoption will be on a prospective basis for policies issued on or after the adoption date, therefore, we expect no impact to surplus upon adoption.

Reconciliation Between Audited Financial Statements and NAIC Annual Statements

There were no differences in net income (loss) or capital and surplus between the audited financial statements and the NAIC statements as filed as of and for the years ended December 31, 2016, 2015 and 2014.

 

F-13

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

5. Investments

Bonds

The carrying value and fair value of the Company’s investments in bonds are summarized as follows:

 

     Carrying
Value		      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Fair
Value		  
  

 

 

  
     (in millions)  

December 31, 2016:

           

U.S. government and agencies

        $   2,038      $ 2      $ (206 )    $ 1,834  

States and political subdivisions

      119        19        (1 )      137  

Foreign governments

      47        3        -       50  

Corporate bonds

      2,255        163        (16 )      2,402  

Mortgage-backed and asset-backed securities

      468        32        (2 )      498  
  

 

 

  

Total bonds

        $ 4,927      $ 219      $ (225 )    $ 4,921  
  

 

 

  

December 31, 2015:

           

U.S. government and agencies

        $ 1,341      $ 133      $ (4 )    $ 1,470  

States and political subdivisions

      149        23        (1 )      171  

Foreign governments

      48        3        -       51  

Corporate bonds

      2,596        130        (58 )      2,668  

Mortgage-backed and asset-backed securities

      502        36        (4 )      534  
  

 

 

  

Total bonds

        $ 4,636      $ 325      $ (67 )    $   4,894  
  

 

 

  

A summary of the carrying value and fair value of the Company’s investments in bonds at December 31, 2016, by contractual maturity, is as follows:

 

     Carrying
Value		      Fair
Value		  
  

 

 

  
     (in millions)  

Due in one year or less

        $ 72      $ 73  

Due after one year through five years

      1,138        1,158  

Due after five years through ten years

      414        423  

Due after ten years

      2,835        2,769  

Mortgage-backed and asset-backed securities

      468        498  
  

 

 

  

Total

        $   4,927      $   4,921  
  

 

 

  

The expected maturities in the foregoing table may differ from the contractual maturities because certain borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

 

F-14

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

5. Investments - (continued)

 

The Company maintains assets which are pledged as collateral in connection with various agreements and transactions. Additionally, the Company holds assets on deposit with government authorities as required by state law. The following table summarizes the carrying value or fair value, as applicable, of the pledged or deposited assets:

 

     December 31,  
     2016      2015  
  

 

 

  
     (in millions)  

At fair value:

      

Bonds pledged in support of over-the-counter derivative instruments

        $   16      $ 16  

Bonds pledged in support of exchange-traded futures

      29        29  

Bonds and cash pledged in support of cleared interest rate swaps

      33        21  
  

 

 

  

Total fair value

        $ 78      $   66  
  

 

 

  

At carrying value:

      

Bonds on deposit with government authorities

        $ -      $ -  

Mortgage loans pledged in support of real estate

      -        -  

Bonds held in trust

      -        -  

Pledged collateral under reinsurance agreements

      -        -  
  

 

 

  

Total carrying value

        $ -      $ -  
  

 

 

  

At December 31, 2016 and 2015, the Company held below investment grade corporate bonds of $169 million and $118 million, with an aggregate fair value of $175 million and $108 million, respectively. The Company performs periodic evaluations of the relative credit standing of the issuers of these bonds.

The Company has a process in place to identify securities that could potentially have an impairment that is other-than-temporary. This process involves monitoring market events that could impact issuers’ credit ratings, business climate, management changes, litigation and government actions, and other similar factors. This process also involves monitoring late payments, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts, and cash flow projections as indicators of credit issues.

At the end of each quarter, the MFC Loan Review Committee reviews all securities where there is evidence of impairment or a significant unrealized loss at the Balance Sheet date. Generally, securities with market value less than 60 percent of amortized cost for six months or more indicate an impairment is present. Accordingly, securities in this category are normally deemed impaired unless there is clear evidence they should not be impaired. The analysis focuses on each company’s or project’s ability to service its debts in a timely fashion and the length of time the security has been trading below amortized cost. The results of this analysis are reviewed by the Transaction and Portfolio Review Committee at MFC. This committee includes MFC’s Chief Financial Officer, Chief Investment Officer, Chief Risk Officer, Chief Credit Officer, and other senior management. This quarterly process includes a fresh assessment of the credit quality of each investment in the entire fixed maturity security portfolio.

The Company considers relevant facts and circumstances in evaluating whether the impairment of a security is other-than-temporary. Relevant facts and circumstances considered include (1) the length of time the fair value has been below cost; (2) the financial position of the issuer, including the current and future impact of any specific events; and (3) the Company’s ability and intent to hold the security to maturity or until it recovers in value. To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, the difference between book value and fair value would be charged to income. For loan-backed and structured securities in an unrealized loss position, where the Company does not intend to sell or is not likely to be required to sell the security, the Company calculates an other-than-temporary impairment loss by subtracting the net present value of the projected future cash flows of the security from the amortized cost of the security. The net present value is calculated by discounting the Company’s best estimate of projected future cash flows at the effective interest rate implicit in the debt security prior to impairment. The projection of future cash flows is subject to the same analysis the Company applies to its overall impairment evaluation process, as noted above, which incorporates security specific information such as late payments, downgrades by rating agencies, key financial ratios, financial statements, and fundamentals of the industry and geographic area in which the issuer operates, as well as overall macroeconomic conditions. The cash flow estimates, including prepayment assumptions, are based on data from third-party data sources or internal

 

F-15

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

5. Investments - (continued)

 

estimates, and are driven by assumptions regarding the underlying collateral, including default rates, recoveries, and changes in value.

There are a number of significant risks and uncertainties inherent in the process of monitoring impairments and determining if impairment is other-than-temporary. These risks and uncertainties include (1) the risk that the Company’s assessment of an issuer’s ability to meet all of its contractual obligations will change based on changes in the credit characteristics of that issuer; (2) the risk that the economic outlook will be worse than expected or have more of an impact on the issuer than anticipated; (3) the risk that fraudulent information could be provided to the Company’s investment professionals who determine the fair value estimates and other-than-temporary impairments; and (4) the risk that new information obtained by the Company or changes in other facts and circumstances lead the Company to change its intent to hold the security to maturity or until it recovers in value. Any of these situations could result in a charge to income in a future period.

The following table shows gross unrealized losses and fair values of bonds, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

 

     Less than 12 months     12 months or more     Total  
    

Fair

Value

     

Gross

Unrealized

Losses

     Fair
Value		     

Gross

Unrealized

Losses

    

Fair

Value

     

Gross

Unrealized

Losses

  
                  (in millions)               

December 31, 2016:

                    

U.S. government and agencies

        $ 1,663      $ (206 )    $ -      $ -     $ 1,663      $ (206 ) 

States and political subdivisions

      20        -       1        (1 )      21        (1 ) 

Foreign governments

      -        -       -        -       -        -  

Corporate bonds

      372        (10 )      60        (6 )      432        (16 ) 

Mortgage-backed and asset-backed securities

      68        (2 )      5        -       73        (2 ) 

Total

        $ 2,123      $ (218 )    $ 66      $ (7 )    $ 2,189      $ (225 ) 
        
   
     Less than 12 months     12 months or more     Total  
    

Fair

Value

      Gross
Unrealized
Losses		     Fair
Value		      Gross
Unrealized
Losses		     Fair
Value		      Gross
Unrealized
Losses		  
                  (in millions)               

December 31, 2015:

                    

U.S. government and agencies

        $ 107      $ (4 )    $ -      $ -     $ 107      $ (4 ) 

States and political subdivisions

      14        (1 )      -        -       14        (1 ) 

Foreign governments

      -        -       -        -       -        -  

Corporate bonds

      778        (31 )      100        (27 )      878        (58 ) 

Mortgage-backed and asset-backed securities

      118        (3 )      9        (1 )      127        (4 ) 

Total

        $   1,017      $ (39 )    $   109      $ (28 )    $   1,126      $ (67 ) 
        

At December 31, 2016 and 2015, there were 199 and 306 bonds that had a gross unrealized loss of which the single largest unrealized loss was $187 million and $4 million, respectively. The Company anticipates that these bonds will perform in accordance with their contractual terms and the Company currently has the ability and intent to hold these bonds until they recover or mature. Unrealized losses can be created by rising interest rates or by rising credit concerns and hence widening credit spreads. Credit concerns are apt to play a larger role in the unrealized loss on below investment grade securities. Unrealized losses on investment grade securities principally relate to changes in interest rates or changes in credit spreads since the securities were acquired. Credit rating agencies’ statistics indicate that investment grade securities have been found to be less likely to develop credit concerns.

 

F-16

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

5. Investments - (continued)

 

The sales of investments in bonds resulted in the following:

 

     Years Ended December 31,  
     2016     2015     2014  
  

 

 

  
     (in millions)  

Proceeds

        $   3,109     $   1,733     $   1,945  

Realized gross gains

      375       43       59  

Realized gross losses

      (6 )      (21 )      (49 ) 

For the years ended December 31, 2016 and 2015, realized capital losses include $5 million and $0 million related to bonds that had experienced an other-than-temporary decline in value and were comprised of 2 and 0 securities, respectively. These are primarily made up of impairments on private bonds.

The Company had no nonadmitted accrued investment income from bonds (unaffiliated) at December 31, 2016 and 2015.

Affiliate Transactions

In 2016, the Company transferred certain bonds to its parent, JHUSA, in lieu of a reinsurance cash settlement. These bonds had a book value of $26 million and a fair value of $26 million. The Company did not recognize any pre-tax realized gains or losses before transfer to the IMR.

In 2016, the Company sold certain bonds to its parent, JHUSA. These bonds had a book value of $308 million and fair value of $343 million. The Company recognized $35 million in pre-tax realized gains before transfer to IMR.

In 2016, the Company sold certain bonds to an affiliate, Manubank (“MB”). These bonds had a book value of $1 million and fair value of $1 million. The Company did not recognize any pre-tax realized gains or losses before transfer to the IMR.

In 2016, the Company sold certain bonds to an affiliate, Manulife Securities Ltd Partner (“MSLP”). These bonds had a book value of $13 million and fair value of $13 million. The Company did not recognize any pre-tax realized gains or losses before transfer to the IMR.

In 2016, the Company acquired, at fair value, certain bonds from an affiliate, John Hancock Life & Health Insurance Company (“JHLH”), for $120 million.

In 2015, the Company sold certain bonds to its parent, JHUSA. These bonds had a book value of $141 million and a fair value of $152 million. The Company recognized $11 in pre-tax realized gains before transfer to the IMR.

In 2015, the Company sold certain bonds to an affiliate, Manufacturers International Limited (Hong Kong) (“MIL”). These bonds had a book value of $27 million and fair value of $28 million at the date of the transaction. The Company recognized $1 million in pre-tax realized gains before transfer to the IMR.

In 2014, the Company sold certain and acquired certain bonds to its parent, JHUSA. These bonds had a net book value of $165 million and a fair value of $188 million at the date of the transactions. The Company recognized $23 million in pre-tax realized gains before transfer to the IMR.

 

F-17

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

5. Investments - (continued)

 

Preferred and Common Stocks

Cost and Fair Value of the Company’s investments in Preferred and Common Stocks are summarized as follow:

 

     Cost      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Fair
Value		  
  

 

 

  
     (in millions)  

December 31, 2016:

           

Preferred stocks:

           

Nonaffiliated

        $ 7      $ -      $ -     $ 7  

Affiliates

      -        -        -       -  

Common stocks:

           

Nonaffiliated

      143        11        (1 )      153  

Affiliates*

      -        -        -       -  
  

 

 

  

Total stocks

        $   150      $   11      $ (1 )    $ 160  
  

 

 

  
     Cost      Gross
Unrealized
Gains		      Gross
Unrealized
Losses		     Fair
Value		  
  

 

 

  
     (in millions)  

December 31, 2015:

           

Preferred stocks:

           

Nonaffiliated

        $ -      $ -      $ -     $ -  

Affiliates

      -        -        -       -  

Common stocks:

           

Nonaffiliated

      73        5        (2 )      76  

Affiliates*

      55        -        -       55  
  

 

 

  

Total stocks

        $   128      $ 5      $ (2 )    $   131  
  

 

 

  
* Affiliates — fair value represents the carrying value

At December 31, 2016 and 2015, there were 32 and 26 nonaffiliated equity securities that had a gross unrealized loss excluding securities that have been written down to zero. The single largest unrealized loss was $0 million and $0 million at December 31, 2016 and 2015, respectively. The Company anticipates that these equity securities will recover in value in the near term.

The Company has a process in place to identify equity securities that could potentially have an impairment that is other-than-temporary. The Company considers relevant facts and circumstances in evaluating whether the impairment of a security is other-than-temporary. Relevant facts and circumstances include (1) the length of time the fair value has been below cost; (2) the financial position of the issuer; and (3) the Company’s ability and intent to hold the security until it recovers. To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, the difference between book value and fair value would be charged to income.

For the years ended December 31, 2016, 2015 and 2014, realized capital losses include $0 million, $0 million, and $0 million related to preferred and common stocks that have experienced an other-than-temporary decline in value and were comprised of 0, 0, and 0 securities, respectively.

 

F-18

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

5. Investments - (continued)

 

Mortgage Loans on Real Estate

At December 31, 2016 and 2015, the mortgage loan portfolio was diversified by geographic region and specific collateral property type as displayed below. The Company controls credit risk through credit approvals, limits, and monitoring procedures.

 

December 31, 2016:           
Property Type    Carrying
Value		        Geographic Concentration    Carrying
Value		  

 

       

 

  
     (in millions)             (in millions)  

Apartments

        $ 261        East North Central        $ 133  

Industrial

      70        East South Central      11  

Office buildings

          190        Middle Atlantic      119  

Retail

      201        Mountain      58  

Agricultural

      -        New England      18  

Agribusiness

      12        Pacific      272  

Mixed use

      -        South Atlantic      116  

Other

      55        West North Central      40  

Allowance

      -        West South Central      22  
        Canada / Other      -  
        Allowance      -  
  

 

 

          

 

 

  

Total mortgage loans on real estate

        $ 789        Total mortgage loans on real estate        $ 789  
  

 

 

          

 

 

  

December 31, 2015:

           
Property Type    Carrying
Value		        Geographic Concentration    Carrying
Value		  

 

       

 

  
     (in millions)             (in millions)  

Apartments

    $ 266        East North Central        $ 134  

Industrial

      83        East South Central      10  

Office buildings

      187        Middle Atlantic          121  

Retail

          205        Mountain      55  

Agricultural

      -        New England      19  

Agribusiness

      12        Pacific      284  

Mixed use

      -        South Atlantic      115  

Other

      53        West North Central      44  

Allowance

      -        West South Central      24  
        Canada / Other      -  
        Allowance      -  
  

 

 

          

 

 

  

Total mortgage loans on real estate

        $ 806        Total mortgage loans on real estate        $ 806  
  

 

 

          

 

 

  

The aggregate mortgages outstanding to any one borrower do not exceed $35 million.

During 2016, the respective maximum and minimum lending rates for mortgage loans issued were 4.46% and 3.40% for commercial loans. The Company issued no new agricultural loans during 2016. The Company issued no purchase money mortgages in 2016 or 2015. At the issuance of a loan, the percentage of any one loan to value of security, exclusive of insured, guaranteed or purchase money mortgages does not exceed 75%. The average recorded investment in impaired loans was $0 million and $0 million at December 31, 2016 and 2015, respectively. The Company recognized $0 million, $0 million, and $0 million of interest income during the period the loans were impaired for the years ended December 31, 2016, 2015 and 2014, respectively.

Generally, the terms of the restructured mortgage loans call for the Company to receive some form or combination of an equity participation in the underlying collateral, excess cash flows or an effective yield at the maturity of the loans sufficient

 

F-19

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

5. Investments - (continued)

 

to meet the original terms of the loans. There are no contractual commitments made to extend credit to debtors owning receivables whose terms have been modified in troubled debt restructurings. The Company accrues interest income on impaired loans to the extent deemed collectible and the loan continues to perform under its original or restructured contractual terms. Interest income on non-performing loans generally is recognized on a cash basis.

For mortgage loans, the Company evaluates credit quality through regular monitoring of credit related exposures, considering both qualitative and quantitative factors in assigning an internal risk rating (“IRR”). These ratings are updated at least annually.

The carrying value of mortgage loans by IRR was as follows:

 

     December 31,  
     2016      2015  
  

 

 

  
     (in millions)  

AAA

        $ 54      $ 43  

AA

      199        202  

A

      376        341  

BBB

      160        220  

BB

      -        -  

B and lower and unrated

      -        -  
  

 

 

  

Total

        $   789      $   806  
  

 

 

  

Affiliate Transactions

In 2015, the Company sold certain mortgages to an affiliate, JHLH. These mortgages had a book value of $25 million and fair value of $27 million at the date of the transaction. The Company recognized $2 million in pre-tax realized gains before transfer to the IMR.

In 2015, the Company acquired, at fair value, certain mortgages from its parent, JHUSA, for $73 million.

In 2015, the Company acquired, at fair value, certain mortgages from an affiliate, JHLH, for $29 million.

Real Estate

The composition of the Company’s investment in real estate is summarized as follows:

 

     December 31,  
     2016     2015  
  

 

 

  
     (in millions)  

Properties occupied by the company

        $ -     $ -  

Properties held for the production of income

      251       193  

Properties held for sale

      -       -  

Less accumulated depreciation

      (22 )      (12 ) 
  

 

 

  

Total

        $   229     $   181  
  

 

 

  

The Company recorded $0 million, $0 million, and $0 million of impairments on real estate investments during the years ended December 31, 2016, 2015 and 2014, respectively.

Affiliate Transactions

In 2015, the Company formed two new wholly-owned subsidiaries for the purposes of owning real estate and contributed certain of its real estate holdings to the newly formed entities in exchange for all of their equity interests. These properties had aggregate book values of $55 million and fair values of $79 million at the date of the transaction and were contributed on a book value basis which resulted in no impact to the Company’s financial position or results of operations.

 

F-20

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

5. Investments - (continued)

 

In 2014, the Company sold real estate to its parent, JHUSA. The real estate had a book value of $32 million and a fair value of $33 million at the date of the transaction. The Company recognized $1 million in pre-tax realized gains.

Other Invested Assets

The Company had no investments in partnerships or LLCs that exceed 10% of its admitted assets at December 31, 2016 and 2015.

Other invested assets primarily consist of investments in partnerships and LLCs. The Company recorded $4 million, $0 million, and $0 million of impairments on partnerships and LLCs in 2016, 2015, or 2014. Any impairment is based on significant judgement by the Company in determining whether the objective evidence of other-than-temporary impairment exists. The Company considers relevant facts and circumstances in evaluating whether the impairment of another invested asset is other-than-temporary. Relevant facts and circumstances include (1) the length of time the fair value has been below cost; (2) the financial position of the investee; (3) the Company’s ability and intent to hold the other invested asset until it recovers. To the extent the Company determines that an other invested asset is deemed to be other-than-temporarily impaired, the difference between book and fair value would be charged to income.

Other

The Company had no exposure to the subprime mortgage related risk at December 31, 2016 or 2015.

Net Investment Income and Net Realized and Other Gains (Losses)

Major categories of the Company’s net investment income are summarized as follows:

 

     2016     2015     2014  
  

 

 

  
     (in millions)  

Income:

       

Bonds

        $  189     $    232     $   264  

Preferred stocks

      -       -       -  

Common stocks

      5       -       -  

Mortgage loans on real estate

      42       48       63  

Real estate

      35       29       38  

Policy loans

      4       5       7  

Cash, cash equivalents and short-term investments

      1       -       -  

Other invested assets

      42       35       33  

Derivatives

      33       29       22  

Other income

      1       2       -  
  

 

 

  

Total investment income

         352       380       427  

Expenses

       

Investment expenses

      (31 )      (37 )      (39 ) 

Investment taxes, licenses and fees, excluding federal income taxes

      (3 )      (3 )      (3 ) 

Investment interest expense

      -       -       -  

Depreciation on real estate and other invested assets

      (4 )      (5 )      (5 ) 
  

 

 

  

Total investment expenses

      (38 )      (45 )      (47 ) 
  

 

 

  

Net investment income

        $ 314     $ 335     $ 380  
  

 

 

  

Other invested assets above represent income earned from the Company’s investment in JHIMS.

 

F-21

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

5. Investments - (continued)

 

Realized capital gains (losses) and amounts transferred to the IMR are as follows:

 

     Years Ended  
     2016     2015     2014  
  

 

 

  
     (in millions)  

Realized capital gains (losses)

        $ 306     $ 61     $ (19 ) 

Less amount transferred to the IMR (net of related tax benefit (expense) of $(130) in 2016, $(27) in 2015, and $(2) in 2014)

        241          50            5  
  

 

 

  

Realized capital gains (losses) before tax

      65       11       (24 ) 

Less federal income taxes on realized capital gains (losses) before effect of transfer to the IMR

      126       22       1  
  

 

 

  

Net realized capital gains (losses)

        $ (61 )    $ (11 )    $ (25 ) 
  

 

 

  

6. Derivatives

Derivatives are financial contracts, the value of which is derived from underlying interest rates, foreign exchange rates, credit, equity price movements, indices or other market risks arising from on-balance sheet financial instruments and selected anticipated transactions. The Company uses derivatives including swaps and futures agreements to manage current and anticipated exposures to changes in interest rates and equity market prices.

Over-the-counter (“OTC”) swaps are contractual agreements between the Company and a counterparty to exchange a series of cash flows based upon rates applied to a notional amount. For interest rate swaps, counterparties generally exchange fixed or floating interest rate payments based on a notional value in a single currency.

Cleared interest rate swaps are contractual agreements between the Company and a counterparty whereby the transaction must be cleared through a central clearing house, and subject to mandatory margin and reporting requirements.

Futures agreements are contractual obligations to buy or sell a financial instrument or foreign currency on a predetermined future date at a specified price. Futures agreements are contracts with standard amounts and settlement dates that are traded on regulated exchanges.

Types of Derivatives and Derivative Strategies

Interest Rate Contracts. The Company uses interest rate futures contracts, OTC interest rate swap agreements and cleared interest rate swap agreements as part of its overall strategies of managing the duration of assets and liabilities or the average life of certain asset portfolios to specified targets. Interest rate swap agreements are contracts with counterparties to exchange interest rate payments of a differing character (i.e., fixed-rate payments exchanged for variable-rate payments) based on an underlying principal balance (notional principal). The net differential to be paid or received on interest rate swap agreements is accrued and recognized as a component of net investment income.

The Company uses interest rate swap agreements in effective cash flow and fair value hedge accounting relationships. These derivatives hedge the variable cash flows associated with certain floating-rate bonds, as well as, future fixed income asset acquisitions, which will support the Company’s life insurance businesses. These derivatives reduce the impact of future interest rate changes on the cost of acquiring adequate assets to support the investment income assumptions used in pricing these products. For its fair value hedging relationships, the Company uses interest rate swap agreements and interest rate treasury locks to hedge the risk of changes in fair value of existing fixed rate assets and liabilities arising from changes in benchmark interest rates.

The Company also enters into basis swaps to better match the cash flows from assets and related liabilities. Basis swaps are included in interest rate swaps for disclosure purposes. The Company utilizes basis swaps in other hedging relationships.

The Company uses exchange-traded interest rate futures primarily to hedge mismatches between the duration of assets in a portfolio and the duration of liabilities supported by those assets, to hedge against changes in value of securities the Company owns or anticipates acquiring, and to hedge against changes in interest rates on anticipated liability issuances by replicating

 

F-22

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

6. Derivatives - (continued)

 

U.S. Treasury or swap curve performance. The Company utilizes exchange-traded interest rate futures in other hedging relationships.

Equity Market Contracts. Equity index futures contracts are contractual obligations to buy or sell a specified amount of an underlying equity index at an agreed contract price on a specified date. Equity index futures are contracts with standard amounts and settlement dates that are traded on regulated exchanges. The Company utilizes equity index futures in other hedging relationships.

The table below provides a summary of the gross notional amount and fair value of derivatives contracts for all derivatives in effective hedge accounting relationships, other hedging relationships and replication (synthetic asset) transactions (“RSATs”):

 

          December 31, 2016  
         

Notional

Amount

     

Carrying

Value Assets

     

Carrying

Value

Liabilities

      Fair
Value
Assets		      Fair
Value
Liabilities		  
     

 

 

  
                 (in millions)  

Effective Hedge Accounting Relationships

 

            

Fair value hedges

   

Interest rate swaps

        $ 212      $ 6      $ -      $ 20      $ -  
  

Foreign currency swaps

      -        -        -        -        -  

Cash flow hedges

   

Interest rate swaps

      123        -        -        22        -  
  

Foreign currency swaps

      -        -        -        -        -  
  

Foreign currency forwards

      -        -        -        -        -  
  

Equity total return swaps

      -        -        -        -        -  
     

 

 

  

Total Derivatives in Effective Hedge Accounting Relationships

        $ 335      $ 6      $ -      $ 42      $ -  
     

 

 

  

Other Hedging Relationships

               
  

Interest rate swaps

        $ 10,917      $ 745      $ 456      $ 745      $ 456  
  

Interest rate treasury locks

      -        -        -        -        -  
  

Interest rate options

      -        -        -        -        -  
  

Interest rate futures

      -        -        -        -        -  
  

Foreign currency swaps

      -        -        -        -        -  
  

Foreign currency forwards

      -        -        -        -        -  
  

Foreign currency futures

      -        -        -        -        -  
  

Equity total return swaps

      -        -        -        -        -  
  

Equity index options

      23        1        -        1        -  
  

Equity index futures

      -        -        -        -        -  
  

Credit default swaps

      -        -        -        -        -  
     

 

 

  

Total Derivatives in Other Hedging Relationships

        $ 10,940      $ 746      $ 456      $ 746      $ 456  
     

 

 

  

Replication Synthetic Asset Transactions

               
  

Interest rate swaps

        $ -      $ -      $ -      $ -      $ -  
  

Credit default swaps

      -        -        -        -        -  
     

 

 

  

Total Derivatives in Replication Synthetic Asset Transactions

        $ -      $ -      $ -      $ -      $ -  
     

 

 

  

Total Derivatives

        $   11,275      $   752      $   456      $   788      $   456  
     

 

 

  

 

F-23

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

6. Derivatives - (continued)

 

          December 31, 2015  
          

Notional

Amount

     

Carrying

Value

Assets

     

Carrying

Value

Liabilities

     

Fair

Value

Assets

     

Fair

Value

Liabilities

  
     

 

 

  
          (in millions)  

Effective Hedge Accounting Relationships

 

            

Fair value hedges

   

Interest rate swaps

        $ 212      $ 7      $ -      $ 22      $ -  
  

Foreign currency swaps

      -        -        -        -        -  

Cash flow hedges

   

Interest rate swaps

      173        -        -        39        -  
  

Foreign currency swaps

      -        -        -        -        -  
  

Foreign currency forwards

      -        -        -        -        -  
  

Equity total return swaps

      -        -        -        -        -  
     

 

 

  

Total Derivatives in Effective Hedge Accounting Relationships

        $ 385      $ 7      $ -      $ 61      $ -  
     

 

 

  

Other Hedging Relationships

               
  

Interest rate swaps

        $ 10,904      $ 749      $ 468      $ 749      $ 468  
  

Interest rate treasury locks

      -        -        -        -        -  
  

Interest rate options

      -        -        -        -        -  
  

Interest rate futures

      608        -        -        -        -  
  

Foreign currency swaps

      -        -        -        -        -  
  

Foreign currency forwards

      -        -        -        -        -  
  

Foreign currency futures

      -        -        -        -        -  
  

Equity total return swaps

      -        -        -        -        -  
  

Equity index options

      23        -        -        -        -  
  

Equity index futures

      485        -        -        -        -  
  

Credit default swaps

      -        -        -        -        -  
     

 

 

  

Total Derivatives in Other Hedging Relationships

        $ 12,020      $ 749      $ 468      $ 749      $ 468  
     

 

 

  

Replication Synthetic Asset Transactions

               
  

Interest rate swaps

        $ -      $ -      $ -      $ -      $ -  
  

Credit default swaps

      -        -        -        -        -  
     

 

 

  

Total Derivatives in Replication Synthetic Asset Transactions

        $ -      $ -      $ -      $ -      $ -  
     

 

 

  

Total Derivatives

        $   12,405      $   756      $   468      $   810      $   468  
     

 

 

  

Hedging Relationships

The Company generally does not enter into derivative contracts for speculative purposes. In certain circumstances, these hedges also meet the requirements for hedge accounting and are reported in a manner consistent with the hedged asset or liability. For the years ended December 31, 2016, 2015 and 2014, the Company recorded net unrealized gains of $19 million, $19 million, and $27 million, respectively related to derivatives that no longer qualify for hedge accounting.

Fair Value Hedges. The Company uses interest rate swaps to manage its exposure to changes in fair value of fixed-rate financial instruments caused by changes in interest rates.

Cash Flow Hedges. The Company uses interest rate swaps to hedge the variability in cash flows from variable rate financial instruments and forecasted transactions.

 

F-24

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

6. Derivatives - (continued)

 

For the year ended December 31, 2016, all of the Company’s hedged forecast transactions qualified as cash flow hedges and no cash flow hedges were discontinued because it was probable that the original forecasted transactions would occur by the end of the originally specified time period documented at inception of the hedging relationship.

The maximum time frame for which variable cash flows are hedged is 4 years.

Derivatives Not Designated in Effective Hedge Accounting Relationships. The Company enters into interest rate swap agreements and interest rate futures contracts to manage exposure to interest rates without designating the derivatives as hedging instruments.

The Company offers certain variable annuity products with a guaranteed minimum withdrawal benefit (“GMWB”) and guaranteed minimum death benefit (“GMDB”). These guarantees are effectively an embedded option on the basket of mutual funds offered to contract holders. The Company manages a hedging program to reduce its exposure to certain contracts with the GMWB and GMDB guarantees. This dynamic hedging program uses interest rate swap agreements, equity index futures (including but not limited to the Dow Jones Industrial, Standard & Poor’s 500, Russell 2000, and Dow Jones Euro Stoxx 50 indices), equity index options, and U.S. Treasury futures to match the sensitivities of the GMWB and GMDB liabilities to the market risk factors.

The Company deferred net realized gains of $0 million, $0 million, and $0 million (including $0 million, $0 million, and $0 million of gains for derivatives in other hedging relationships) related to interest rates for the years ended December 31, 2016, 2015 and 2014, respectively. Deferred net realized gains (losses) are reported in the IMR and amortized over the remaining period to expiration date.

 

F-25

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

6. Derivatives - (continued)

 

For the years ended December 31, 2016, 2015 and 2014 net gains and losses related to derivatives in other hedging relationships were recognized by the Company, and the components were recorded in net unrealized and net realized gains (losses) as follows:

 

     Years ended December 31,  
     2016     2015     2014  
  

 

 

  
     (in millions)  

Other Hedging Relationships

       

Net unrealized capital gain (loss):

       

Interest rate swaps

        $    8     $ 32     $    196  

Interest rate treasury locks

      -       -       -  

Interest rate options

      -       -       -  

Foreign currency swaps

      -       -       -  

Foreign currency forwards

      -       -       -  

Equity total return swaps

      -       -       -  

Equity index options

      1       -       -  

Credit default swaps

      -           -       -  
  

 

 

  

Total net unrealized capital gain (loss)

        $ 9     $ 32     $ 196  
  

 

 

  

Net realized capital gain (loss):

       

Interest rate swaps

        $ -     $ -     $ -  

Interest rate treasury locks

      -       -       -  

Interest rate options

      -       -       -  

Interest rate futures

      4       (5 )      (8 ) 

Foreign currency swaps

      -       -       -  

Foreign currency forwards

      -       -       -  

Foreign currency futures

      -       -       -  

Equity total return swaps

      -       -       -  

Equity index options

      (1 )      -       -  

Equity index futures

      (63 )      (10 )      (29 ) 

Credit default swaps

      -       -       -  

Commodity futures

      -       -       -  
  

 

 

  

Total net realized capital gain (loss)

        $   (60 )    $ (15 )    $ (37 ) 
  

 

 

  

Total gain (loss) from derivatives in other hedging relationships

        $ (51 )    $ 17     $ 159  
  

 

 

  

Credit Risk

The Company’s exposure to loss on derivatives is limited to the amount of any net gains that may have accrued with a particular counterparty. Gross derivative counterparty exposure is measured as the total fair value (including accrued interest) of all outstanding contracts in a gain position excluding any offsetting contracts in negative positions and the impact of collateral on hand. The Company may be exposed to credit-related losses in the event of nonperformance by counterparties to the derivative financial instruments. The current credit exposure of the Company’s derivative contracts is limited to the fair value in excess of the collateral held at the reporting date.

The Company manages its credit risk by entering into transactions with creditworthy counterparties, obtaining collateral where appropriate, and entering into master netting agreements that provide for a netting of payments and receipts with a single counterparty. The Company enters into credit support annexes with its OTC derivative dealers in order to manage its credit exposure to those counterparties. As part of the terms and conditions of those agreements, the pledging and accepting of collateral in connection with the Company’s derivative usage is required. As of December 31, 2016 and 2015, the Company had accepted collateral consisting of cash of $40 million and $120 million and various securities with a fair value of $371 million and $258 million, respectively, which are held in separate custodial accounts. In addition, the Company has

 

F-26

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

6. Derivatives - (continued)

 

pledged collateral to support both the OTC derivative instruments, exchange traded futures and cleared interest rate swap transactions. For further details regarding pledged collateral see the Investments Note.

Under U.S. regulations, certain interest rate swap agreements are required to be cleared through central clearing houses. These transactions are contractual agreements that require initial and variation margin collateral postings and are settled on a daily basis through a clearing house. As such, they reduce the credit risk exposure in the event of default by a counterparty.

7. Fair Value

The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy:

 

  •  

Financial Instruments Measured at Fair Value and Reported in the Balance Sheet after Initial Recognition – This category includes assets and liabilities measured at fair value. Financial instruments in this category include common stocks, derivatives, and separate account assets.

 

  •  

Other Financial Instruments Not Reported at Fair Value After Initial Recognition – This category includes assets and liabilities as follows:

Bonds — For bonds, including corporate debt, U.S. Treasury, commercial and residential mortgage-backed securities, asset-backed securities, collateralized debt obligations, issuances by foreign governments, and obligations of state and political subdivisions, fair values are based on quoted market prices when available. When market prices are not available, fair value is generally estimated using discounted cash flow analyses, incorporating current market inputs for similar financial instruments with comparable terms and credit quality (matrix pricing). The significant inputs into these models include, but are not limited to, yield curves, credit risks and spreads, measures of volatility, and prepayment speeds.

Mortgage Loans on Real Estate — The fair value of unimpaired mortgage loans is estimated using discounted cash flows and takes into account the contractual maturities and discount rates, which were based on current market rates for similar maturity ranges and adjusted for risk due to the property type. The fair value of impaired mortgage loans is based on the net of the collateral less estimated cost to obtain and sell. Fair value of commercial mortgages is derived through an internal valuation methodology using both observable and unobservable inputs. Unobservable inputs include credit assumptions and liquidity spread adjustments. Fair value of fixed-rate residential mortgages is determined using the discounted cash flow method. Inputs used for valuation are primarily comprised of prevailing interest rates and prepayment rates, if applicable. Fair value of variable-rate residential mortgages is assumed to be their carrying value.

Cash, Cash Equivalents and Short-Term Investments — The carrying values for cash, cash equivalents, and short-term investments approximate their fair value due to the short-term maturities of these instruments.

Policy Loans — These loans are carried at unpaid principal balances, which approximate their fair values.

Policy Reserves — Policy reserves consists of guaranteed investment contracts. The fair values associated with these financial instruments are determined by projecting cash flows and discounting the cash flows at current corporate rates, defined as U.S. Treasury rates plus MFC’s corporate spread. The fair value attributable to credit risk represents the present value of the spread.

Policyholders’ and Beneficiaries Funds — Includes term certain contracts and supplementary contracts without life contingencies. The fair values associated with the term certain contracts and supplementary contracts without life contingencies are determined by projecting cash flows and discounting the cash flows at current corporate rates, defined as U.S. Treasury rates plus MFC’s corporate spread. The fair value attributable to credit risk represents the present value of the spread. Effective December 31, 2016, fair value disclosure is no longer required for those balances that can be withdrawn by the policyholder at any time without prior notice or penalty. The fair value is the amount estimated to be payable to the policyholder as of the reporting date which is generally the carrying value and provides no additional disclosure value.

 

F-27

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

7. Fair Value - (continued)

 

Financial Instruments Measured at Fair Value and Reported in the Balance Sheet after Initial Recognition

Valuation Hierarchy

The Company categorizes its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Company’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows:

 

  •  

Level 1 — Fair value measurements that reflect unadjusted, quoted prices in active markets for identical assets and liabilities that the Company has the ability to access at the measurement date reflecting market transactions. Level 1 assets primarily include exchange traded equity securities and certain separate account assets.

 

  •  

Level 2 — Fair value measurements using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in inactive markets, inputs that are observable that are not prices (such as interest rates, credit risks, etc.), and inputs that are derived from or corroborated by observable market data. Most bonds are classified within Level 2. Also, included in the Level 2 category are certain separate account assets and derivative assets and liabilities.

 

  •  

Level 3 — Fair value measurements using significant nonmarket observable inputs. These include valuations for assets and liabilities that are derived using data, some or all of which is not market observable data, including assumptions about risk. Level 3 securities include less liquid securities such as securities that have little or no price transparency.

Determination of Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (not a forced liquidation or distress sale) between market participants at the measurement date, that is, an exit value.

When available, quoted market prices are used to determine fair value. If quoted market prices are not available, fair value is typically based upon alternative valuation techniques such as discounted cash flows, matrix pricing, consensus pricing services and other techniques. Broker quotes are generally used when external public vendor prices are not available.

The Company has a process in place that includes a review of price movements relative to the market, a comparison of prices between vendors, and a comparison to internal matrix pricing which uses predominately external observable data. Judgement is applied in adjusting external observable data for items including liquidity and credit factors.

The following is a description of the valuation techniques used to measure fair value and the general classification of these instruments pursuant to the fair value hierarchy:

Bonds

Refer to the previous page for the determination of fair value of bonds. Generally, impaired bonds with a NAIC designation rating of 6 whose cost is greater than its fair value are reported at fair value and are classified within Level 3.

Preferred Stocks

Preferred stocks with active markets are classified within Level 1, as fair values are based on quoted market prices. Preferred stocks not traded in active markets are classified within Level 3.

Common Stocks

Common stocks with active markets are classified within Level 1, as fair values are based on quoted market prices. Common stocks not traded in active markets are classified within Level 3.

 

F-28

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

7. Fair Value - (continued)

 

Derivatives

The fair value of derivatives is determined through the use of quoted market prices for exchange-traded derivatives or through the use of pricing models for OTC derivatives. The pricing models used are based on market standard valuation methodologies, and the inputs to these models are consistent with what a market participant would use when pricing the instruments. Derivative valuations can be affected by changes in interest rates, currency exchange rates, financial indices, credit spreads, default risk (including the counterparties to the contract), and volatility. The Company’s derivatives are generally classified within Level 2 given the significant inputs to the pricing models for most OTC derivatives are observable or can be corroborated by observable market data. Inputs that are observable generally include interest rates, foreign currency exchange rates, and interest rate curves; however, certain OTC derivatives may rely on inputs that are significant to the fair value, but are unobservable in the market or cannot be derived principally from or corroborated by observable market data and would be classified within Level 3. Inputs that are unobservable generally include broker quotes, volatilities, and inputs that are outside of the observable portion of the interest rate curve or other relevant market measures. These unobservable inputs may involve significant management judgment or estimation.

Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and consistent with what market participants would use when pricing such instruments. The credit risk of both the counterparty and the Company are considered in determining the fair value for all OTC derivatives after taking into account the effects of netting agreements and collateral arrangements.

Separate Account Assets and Liabilities

For separate accounts structured as a unitized fund, the fair value of the separate account assets is based on the fair value of the underlying funds owned by the separate account. Assets owned by the Company’s separate accounts consist of investments in mutual funds with values that are based upon quoted market prices or reported net asset values (“NAV”). Open-ended mutual fund investments that are traded in an active market and have a publically available price are included in Level 1. Investment performance related to separate account assets is fully offset by corresponding amounts credited to contract holders whose interest in the separate account assets is recorded by the Company as separate account liabilities. Separate account liabilities are set equal to the fair value of separate account assets.

The fair value of fund investments is based upon quoted market prices or reported net asset value (“NAV”). Fund investments that are traded in an active market and have a NAV that the Company can access at the measurement date are classified within Level 1. Level 2 assets consist primarily of bonds which are valued using matrix pricing with independent pricing data.

 

F-29

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

7. Fair Value - (continued)

 

The following table presents the Company’s assets and liabilities that are measured and reported at fair value in the Balance Sheets after initial recognition by fair value hierarchy level:

 

     December 31, 2016  
     Carrying
Value		      Total Fair
Value		      Level 1      Level 2      Level 3  
  

 

 

  
     (in millions)  

Assets:

               

Bond with NAIC 6 rating:

               

Industrial and misc

      $ -      $ -      $ -      $ -      $ -  

Loan-backed and structured securities

      -        -        -        -        -  
  

 

 

  

Total bonds with NAIC 6 rating

      -        -        -        -        -  

Preferred stocks:

               

Industrial and misc

      -        -        -        -        -  
  

 

 

  

Total preferred stocks

      -        -        -        -        -  

Common stocks:

               

Industrial and misc

      153        153        119        -        34  
  

 

 

  

Total common stocks

      153        153        119        -        34  

Derivatives:

               

Interest rate swaps

      745        745        -        745        -  

Interest rate treasury locks

      -        -        -        -        -  

Interest rate options

      -        -        -        -        -  

Interest rate futures

      -        -        -        -        -  

Foreign currency swaps

      -        -        -        -        -  

Foreign currency forwards

      -        -        -        -        -  

Foreign currency futures

      -        -        -        -        -  

Equity total return swaps

      -        -        -        -        -  

Equity index options

      1        1        -        1        -  

Equity index futures

      -        -        -        -        -  

Credit default swaps

      -        -        -        -        -  
  

 

 

  

Total derivatives

      746        746        -        746        -  

Assets held in separate accounts

      7,503        7,503        7,503        -        -  
  

 

 

  

Total assets

      $ 8,402      $ 8,402      $ 7,622      $ 746      $ 34  
  

 

 

  

Liabilities:

               

Derivatives:

               

Interest rate swaps

      $ 456      $ 456      $ -      $ 456      $ -  

Interest rate treasury locks

      -        -        -        -        -  

Interest rate options

      -        -        -        -        -  

Interest rate futures

      -        -        -        -        -  

Foreign currency swaps

      -        -        -        -        -  

Foreign currency forwards

      -        -        -        -        -  

Foreign currency futures

      -        -        -        -        -  

Equity total return swaps

      -        -        -        -        -  

Equity index options

      -        -        -        -        -  

Equity index futures

      -        -        -        -        -  

Credit default swaps

      -        -        -        -        -  
  

 

 

  

Total derivatives

      456        456        -        456        -  

Liabilities held in separate accounts

      7,503        7,503        7,503        -        -  
  

 

 

  

Total liabilities

      $   7,959      $ 7,959      $ 7,503      $ 456      $ -  
  

 

 

  

 

F-30

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

7. Fair Value - (continued)

 

     December 31, 2015  
     Carrying
Value		      Total Fair
Value		      Level 1      Level 2      Level 3  
  

 

 

  
     (in millions)  

Assets:

               

Bond with NAIC 6 rating:

               

Industrial and misc

        $ -      $ -      $ -      $ -      $ -  

Loan-backed and structured securities

      -        -        -        -        -  
  

 

 

  

Total bonds with NAIC 6 rating

      -        -        -        -        -  

Preferred stocks:

               

Industrial and misc

      -        -        -        -        -  
  

 

 

  

Total preferred stocks

      -        -        -        -        -  

Common stocks:

               

Industrial and misc

      76        76        68        -        8  
  

 

 

  

Total common stocks

      76        76        68        -        8  

Derivatives:

               

Interest rate swaps

      749        749        -        749        -  

Interest rate treasury locks

      -        -        -        -        -  

Interest rate options

      -        -        -        -        -  

Interest rate futures

      -        -        -        -        -  

Foreign currency swaps

      -        -        -        -        -  

Foreign currency forwards

      -        -        -        -        -  

Foreign currency futures

      -        -        -        -        -  

Equity total return swaps

      -        -        -        -        -  

Equity index options

      -        -        -        -        -  

Equity index futures

      -        -        -        -        -  

Credit default swaps

      -        -        -        -        -  
  

 

 

  

Total derivatives

      749        749        -        749        -  

Assets held in separate accounts

      7,448        7,448        7,448        -        -  
  

 

 

  

Total assets

        $ 8,273      $ 8,273      $ 7,516      $ 749      $ 8  
  

 

 

  

Liabilities:

               

Derivatives:

               

Interest rate swaps

        $ 468      $ 468      $ -      $ 468      $ -  

Interest rate treasury locks

      -        -        -        -        -  

Interest rate options

      -        -        -        -        -  

Interest rate futures

      -        -        -        -        -  

Foreign currency swaps

      -        -        -        -        -  

Foreign currency forwards

      -        -        -        -        -  

Foreign currency futures

      -        -        -        -        -  

Equity total return swaps

      -        -        -        -        -  

Equity index options

      -        -        -        -        -  

Equity index futures

      -        -        -        -        -  

Credit default swaps

      -        -        -        -        -  
  

 

 

  

Total derivatives

      468        468        -        468        -  

Liabilities held in separate accounts

      7,448        7,448        7,448        -        -  
  

 

 

  

Total liabilities

        $   7,916      $ 7,916      $ 7,448      $ 468      $ -  
  

 

 

  

 

F-31

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

7. Fair Value - (continued)

 

The table below presents the carrying amounts and fair value by fair value hierarchy level for certain assets and liabilities that are not reported at fair value in the Balance Sheets:

 

     December 31, 2016  
     Carrying
Value		      Total Fair
Value		      Level 1      Level 2      Level 3  
  

 

 

  
     (in millions)  

Assets:

               

Bonds (1)

        $ 4,927      $ 4,921      $ -      $ 4,612      $ 309  

Preferred stocks

      7        7        -        -        7  

Mortgage loans on real estate

      789        851        -        -        851  

Cash, cash equivalents and short term investments

      10        10        10        -        -  

Policy loans

      104        104        -        104        -  

Derivatives in effective hedge accounting and RSAT relationships

      6        42        -        42        -  
  

 

 

  

Total assets

        $   5,843      $ 5,935      $ 10      $ 4,758      $ 1,167  
  

 

 

  

Liabilities:

               

Consumer notes

        $ -      $ -      $ -      $ -      $ -  

Borrowed money

      -        -        -        -        -  

Policy reserves

      82        81        -        -        81  

Policyholders’ and beneficiaries funds

      126        151        -        151        -  

Derivatives in effective hedge accounting and RSAT relationships

      -        -        -        -        -  
  

 

 

  

Total liabilities

        $ 208      $ 232      $ -      $ 151      $ 81  
  

 

 

  

 

     December 31, 2015  
     Carrying
Value		      Total Fair
Value		      Level 1      Level 2      Level 3  
  

 

 

  
     (in millions)  

Assets:

               

Bonds (1)

        $ 4,636      $ 4,894      $ -      $ 4,533      $ 361  

Preferred stocks

      -        -        -        -        -  

Mortgage loans on real estate

      806        861        -        -        861  

Cash, cash equivalents and short term investments

      72        72        72        -        -  

Policy loans

      170        170        -        170        -  

Derivatives in effective hedge accounting and RSAT relationships

      7        61        -        61        -  
  

 

 

  

Total assets

        $   5,691      $ 6,058      $ 72      $ 4,764      $ 1,222  
  

 

 

  

Liabilities:

               

Consumer notes

        $ -      $ -      $ -      $ -      $ -  

Borrowed money

      -        -        -        -        -  

Policy reserves

      84        83        -        -        83  

Policyholders’ and beneficiaries funds

      266        288        -        148        140  

Derivatives in effective hedge accounting and RSAT relationships

      -        -        -        -        -  
  

 

 

  

Total liabilities

        $ 350      $ 371      $ -      $ 148      $ 223  
  

 

 

  

 

(1) Bonds are carried at amortized cost unless they have NAIC designation rating of 6.

 

F-32

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

7. Fair Value - (continued)

 

Transfers of Level 1 and Level 2 Assets and Liabilities

The Company’s policy is to record transfers of assets and liabilities between Level 1 and Level 2 at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. Assets are transferred out of Level 1 when they are no longer transacted with sufficient frequency and volume in an active market. During the years ended December 31, 2016 and 2015, the Company did not have any transfers from Level 1 to Level 2. Conversely, assets are transferred from Level 2 to Level 1 when transaction volume and frequency are indicative of an active market. The Company did not transfer assets from Level 2 to Level 1 during the years ended December 31, 2016 and 2015.

 

F-33

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

7. Fair Value - (continued)

 

Level 3 Financial Instruments

The changes in Level 3 financial instruments measured and reported at fair value for the years ended December 31, 2016, 2015 and 2014, are summarized as follows:

 

              
Net
realized/unrealized
gains (losses) included in:		    

Amounts

credited to

separate

account

liabilities (2)

                             Transfers        
   

    

    

Balance at

January 1,

2016

    

Net

income (1)

     Surplus       Purchases     Issuances     Sales     Settlements    

Into

Level 3 (3)

     Out of
Level 3 (3)		     Balance at
December 31,
2016		  
 

 

 

  
    (in millions)  

Bonds with NAIC 6 rating:

                      

Impaired corporate bonds

       $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -  

Impaired mortgage-backed and asset-backed securities

     -       -       -       -       -       -       -       -       -       -       -  
 

 

 

  

Total bonds with NAIC 6 rating

     -       -       -       -       -       -       -       -       -       -       -  

Preferred stocks:

                      

Industrial and misc

     -       -       -       -       -       -       -       -       -       -       -  
 

 

 

  

Total preferred stocks

     -       -       -       -       -       -       -       -       -       -       -  

Common stocks:

                      

Industrial and misc

     8       -       1       -       25       -       -       -       -       -       34  
 

 

 

  

Total common stocks

     8       -       1       -       25       -       -       -       -       -       34  

Net derivatives

     -       -       -       -       -       -       -       -       -       -       -  

Separate account assets/liabilities

     -       -       -       -       -       -       -       -       -       -       -  
 

 

 

  

Total

       $ 8     $ -     $ 1     $ -     $ 25     $ -     $ -     $ -     $ -     $ -     $ 34  
 

 

 

  

 

F-34

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

7. Fair Value - (continued)

 

              
Net
realized/unrealized
gains (losses) included in:		                                   Transfers        
    Balance at
January 1,
2015		    

Net

income (1)

     Surplus    

Amounts

credited to

separate

account

liabilities (2)

     Purchases     Issuances     Sales     Settlements    

Into

Level 3 (3)

     Out of
Level 3 (3)		    

Balance at

December 31,

2015

  
 

 

 

  
    (in millions)  

Bonds with NAIC 6 rating:

                      

Impaired corporate bonds

       $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ -  

Impaired mortgage-backed and asset-backed securities

     -       -       -       -       -       -       -       -       -       -       -  
 

 

 

  

Total bonds with NAIC 6 rating

     -       -       -       -       -       -       -       -       -       -       -  

Preferred stocks:

                      

Industrial and misc

     -       -       -       -       -       -       -       -       -       -       -  
 

 

 

  

Total preferred stocks

     -       -       -       -       -       -       -       -       -       -       -  

Common stocks:

                      

Industrial and misc

     4       -       4       -       -       -       -       -       -       -       8  
 

 

 

  

Total common stocks

     4       -       4       -       -       -       -       -       -       -       8  

Net derivatives

     -       -       -       -       -       -       -       -       -       -       -  

Separate account assets/liabilities

     -       -       -       -       -       -       -       -       -       -       -  
 

 

 

  

Total

       $   4     $ -     $ 4     $ -     $ -     $ -     $ -     $ -     $ -     $ -     $ 8  
 

 

 

  

 

F-35

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

7. Fair Value - (continued)

 

            Net
realized/unrealized
gains (losses) included in:		     

Amounts

credited to

separate

account

liabilities (2)

                                 Transfers         
    

    

    

Balance at

January 1,

2014

     

Net

income (1)

      Surplus         Purchases      Issuances      Sales     Settlements     

Into

Level 3 (3)

     

Out of

Level 3 (3)

     

Balance at

December 31,

2014

  
  

 

 

  
     (in millions)  

Bonds with NAIC 6 rating:

                                

Impaired corporate bonds

        $ -      $ -      $ -      $ -      $ -      $ -      $ -     $ -      $ -      $ -      $ -  

Impaired mortgage-backed and asset-backed securities

      -        -        -        -        -        -        -       -        -        -        -  
  

 

 

  

Total bonds with NAIC 6 rating

      -        -        -        -        -        -        -       -        -        -        -  

Preferred stocks:

                                

Industrial and misc

      -        -        -        -        -        -        -       -        -        -        -  
  

 

 

  

Total preferred stocks

      -        -        -        -        -        -        -       -        -        -        -  

Common stocks:

                                

Industrial and misc

      3        -        1        -        -        -        (2 )      -        2        -        4  
  

 

 

  

Total common stocks

      3        -        1        -        -        -        (2 )      -        2        -        4  

Net derivatives

      -        -        -        -        -        -        -       -        -        -        -  

Separate account assets/liabilities

      -        -        -        -        -        -        -       -        -        -        -  
  

 

 

  

Total

        $   3      $ -      $ 1      $ -      $ -      $ -      $ (2 )    $ -      $ 2      $ -      $ 4  
  

 

 

  

 

(1) This amount is included in net realized capital gains (losses) on the Statements of Operations.
(2) Changes in the fair value of separate account assets are credited directly to separate account liabilities in accordance with NAIC SAP and are not reflected in income.
(3) For financial instruments that are transferred into and/or out of Level 3, the Company uses the fair value of the instruments at the beginning of the period.

 

F-36

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

7. Fair Value - (continued)

 

The transfers into Level 3 primarily result from securities that were impaired during the year or securities where a lack of observable market data (versus the previous year) resulted in reclassifying instruments into Level 3. The transfers out of Level 3 primarily result from observable market data becoming available for that instrument, thus eliminating the need to extrapolate market data beyond observable points. Additionally, securities carried at fair value at the beginning of the period but carried at amortized cost at the end of the period due to rating change or change in fair value relative to amortized cost, are included in transfers out of Level 3. Conversely, any securities carried at amortized cost at the beginning of the period and carried at fair value at the end of the year due to SVO rating change or change in fair value relative to amortized cost, are included into transfers into Level 3.

8. Reinsurance

Certain premiums and benefits are assumed from or ceded to affiliate and other insurance companies under various reinsurance agreements. The Company entered into these reinsurance agreements to shift underlying risk on certain of its products, and to improve cash flow and statutory capital. The ceded reinsurance agreements provide the Company with increased capacity to write larger risks and maintain its exposure to loss within its capital resources.

Total reinsurance amounts included in the Company’s accompanying statutory-basis financial statements were as follows:

 

     Years ended December 31,  
     2016     2015     2014  
  

 

 

  
     (in millions)  

Premiums earned

       

Direct

        $   1,085         $   1,021         $   1,025  

Assumed

      219       1,079       293  

Ceded

      226       (349 )      (277 ) 
  

 

 

  

Net

        $     1,530         $     1,751         $ 1,041  
  

 

 

  

Benefits to policyholders ceded

        $ (482 )      (544 )      (473 ) 

Reserve amounts ceded to reinsurers not authorized in the State of New York are mostly covered by letters of credit or trust agreements. Amounts payable or recoverable for reinsurance on policy and contract liabilities are not subject to periodic or maximum limits. At December 31, 2016, any material recoveries were secured by letters of credit or assets placed in trust by the assuming company.

Neither the Company nor any of its related parties control, directly or indirectly, any external reinsurers with whom the Company conducts business. No policies issued by the Company have been reinsured with a foreign company, which is controlled, either directly or indirectly, by a party not primarily engaged in the business of insurance. The Company does not have any reinsurance agreements in effect under which the reinsurer may unilaterally cancel the agreement. At December 31, 2016, there were no reinsurance agreements in effect such that the amount of losses paid or accrued through the statement date may result in a payment to the reinsurer of amounts which, in aggregate and allowing for offset of mutual credits from other reinsurance agreements with the same reinsurer, exceed the total direct premium collected under the reinsured policies.

As of December 31, 2016, if all reinsurance agreements were cancelled the estimated aggregate reduction in unassigned surplus is $322 million.

The Company has not entered into any reinsurance transactions within the scope of Actuarial Guideline 48, the NAIC Term Life and Universal Life with Secondary Guarantees (XXX/AXXX) Credit for Reinsurance Model Regulation.

Non-Affiliated Reinsurance

Effective July 1, 2015, the Company entered into coinsurance reinsurance agreements with New York Life (“NYL”) to cede 100% quota share (“QS”) of the Company’s JHLICO Closed Block policies (“NYL 100% Coinsurance”). In addition, NYL agreed to retrocede 40% QS of the same policy risks back to the Company under a coinsurance funds withheld (“FWH”) agreement (“NYL 40% FWH Retrocession”). Collectively, these agreements are known as the NYL Agreements. The NYL

 

F-37

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

8. Reinsurance - (continued)

 

100% Coinsurance keeps the assets supporting the JHLICO Closed Block together in NYL, and the NYL 40% FWH Retrocession adjusts the net reinsurance to NYL to 60% of the JHLICO Closed Block policies at risk. The transactions included the transfer to NYL of $2,295 million of invested assets and $1,344 million in net policy liabilities. In addition, the Company recognized $952 million of FWH assets. The transactions resulted in a pre-tax loss of $134 million, including a ceding commission paid of $66 million, and an increase in surplus of $70 million, net of tax, which was deferred and amortized over a period of approximately 20 years.

The table below consists of the impact of the NYL Agreements:

 

     Year ended December 31,  
     2016     2015  
  

 

 

  
     (in millions)  

Premiums ceded

        $ (84 )        $   (2,189 ) 

Premiums assumed

      34       875  

Benefits ceded

        (185 )      (85 ) 

Benefits assumed

      74       34  

Other amounts payable on reinsurance

      (4 )      332  

Funds held by or deposited with reinsured companies

          920       930  

In conjunction with the NYL Agreements, the existing 100% coinsurance FWH agreement which retrocedes the JHLICO Closed Block New York business back to JHUSA from the Company was recaptured. This recapture was necessary to complete the NYL Agreements, because the policies under this agreement are the same policies at risk under the NYL Agreements. The recapture resulted in a decrease in FWH liability of $1,919 million and an increase in net policy assets and liabilities of $1,918 million, as well as a pre-tax loss of $149 million and a decrease in surplus, net of tax, of $96 million.

Affiliated Reinsurance

The table and commentary below consist of the impact of the reinsurance agreements with its parent, JHUSA:

 

     Years ended December 31,  
     2016     2015     2014  
  

 

 

  
     (in millions)  

Premiums assumed, net

        $ 183         $   2,231         $ 192  

Benefits assumed, net

        427       436       394  

Other reinsurance receivable

      9       1       10  

Other amounts payable on reinsurance

      41       60       86  

Funds withheld from unauthorized reinsurers

      -       -         1,952  

Treaty settlement received (paid)

      (246 )      (527 )      (449 ) 

 

* Treaty settlement consisted primarily of ceded investment income, ceded benefit payments and ceded statutory reserves.

On January 1, 2010, the assets supporting the policyholders who reside in the state of New York (“NY business”) were transferred from JHUSA to the Company. The transfer included participating traditional life insurance, universal life insurance, fixed deferred and immediate annuities, participating pension contracts, and variable annuities. The NY business was transferred using assumption reinsurance, modified coinsurance and coinsurance with cut-through provisions.

The NY business related to the participating traditional life insurance policies were transferred from JHUSA to JHNY under a coinsurance agreement and was immediately retroceded back to JHUSA using a coinsurance FWH agreement. As the reinsurance agreements do not subject the reinsurer to reasonable possibility of significant loss, they are classified as

 

F-38

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

8. Reinsurance - (continued)

 

structured reinsurance and given deposit-type accounting treatment. The Company retained the invested assets supporting this block of business. As previously noted, the coinsurance FWH agreement was recaptured effective July 1, 2015. The NY business related to variable universal life was reinsured through coinsurance and modified coinsurance. The NY business related to universal life was transferred from JHUSA to JHNY under coinsurance agreements.

The NY business related to a majority of the fixed deferred annuity business was transferred from JHUSA to JHNY under an assumption reinsurance agreement. The NY business related to variable annuities and some participating pension contracts where assets were held in separate accounts were reinsured through modified coinsurance. The NY business related to fixed deferred and immediate annuities and participating pension contracts was transferred from JHUSA to JHNY under a coinsurance agreement.

The table and commentary below consist of the impact of the reinsurance agreements with an affiliate, John Hancock Reassurance Company Limited (“JHRECO”):

 

     Years ended December 31,  
     2016     2015     2014  
  

 

 

  
     (in millions)  

Premiums ceded

        $   422         $ -         $ -  

Benefits ceded

        (21 )          (42 )          (40 ) 

Other amounts payable on reinsurance

      -       3       -  

Funds withheld from unauthorized reinsurers

      9       15       25  

Treaty Settlement received (paid)

      56       (1 )      (11 ) 

The Company reinsures a portion of the risk related to certain annuity policies with JHRECO. The reinsurance agreement is written on a modified coinsurance basis where the assets supporting the reinsured policies remain invested with the Company. On July 1, 2016, the Company recaptured the annuity policies with JHRECO. The recapture resulted in pre-tax income of $59 million and an increase in surplus, net of tax, of $38 million.

The table and commentary below consist of the impact of the reinsurance agreements with an affiliate, Manulife Reinsurance Limited (“MRL”):

 

     Years ended December 31,  
     2016     2015     2014  
  

 

 

  
     (in millions)  

Premiums ceded

        $ -         $ -         $ (4 ) 

Benefits ceded

          (12 )      (8 )      (8 ) 

Other reinsurance receivable

      -       1       -  

Other amounts payable on reinsurance

      -       -       1  

Funds withheld from unauthorized reinsurers

      325           316         301  

Treaty Settlement received (paid)

      60       2       3  

Effective July 1, 2005, the Company entered into a reinsurance agreement with MRL to reinsure 90% of all risks not already reinsured to third parties on selected single and joint survivorship guaranteed universal life contracts. The agreement is written on a coinsurance FWH basis.

 

F-39

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

8. Reinsurance - (continued)

 

On October 1, 2016, the Company recaptured a block of no-lapse guarantee riders on universal life contracts ceded to an affiliate, Manulife Reinsurance Limited (“MRL”), resulting in a pre-tax loss of approximately $14 million and a decrease in surplus, net of tax, of $9 million.

9. Federal Income Taxes

The components of the net deferred tax asset/(liability) are as follows:

 

     December 31, 2016  
     (1)     (2)     (3)  
                 (Col 1 + 2)  
     Ordinary     Capital     Total  
  

 

 

  
     (in millions)  

(a) Gross deferred tax assets

        $ 391         $ 2         $   393  

(b) Statutory valuation allowance adjustments

      -       -       -  
  

 

 

  

(c) Adjusted gross deferred tax assets (a — b)

      391       2       393  

(d) Deferred tax assets nonadmitted

      160       -       160  
  

 

 

  

(e) Subtotal net admitted deferred tax asset (c — d)

      231       2       233  

(f) Deferred tax liabilities

      109       36       145  
  

 

 

  

(g) Net admitted deferred tax asset / (net deferred tax liability) (e — f)

        $ 122         $   (34 )        $ 88  
  

 

 

  
     December 31, 2015  
     (4)     (5)     (6)  
                 (Col 4 + 5)  
     Ordinary     Capital     Total  
  

 

 

  
     (in millions)  

(a) Gross deferred tax assets

        $ 375     $ -     $ 375  

(b) Statutory valuation allowance adjustments

      -       -       -  
  

 

 

  

(c) Adjusted gross deferred tax assets (a — b)

      375       -       375  

(d) Deferred tax assets nonadmitted

      133       -       133  
  

 

 

  

(e) Subtotal net admitted deferred tax asset (c — d)

      242       -       242  

(f) Deferred tax liabilities

      120       39       159  
  

 

 

  

(g) Net admitted deferred tax asset / (net deferred tax liability) (e — f)

        $ 122     $ (39 )    $ 83  
  

 

 

  
     Change  
     (7)     (8)     (9)  
     (Col 1 - 4)     (Col 2 - 5)     (Col 7 + 8)  
     Ordinary     Capital     Total  
  

 

 

  
     (in millions)  

(a) Gross deferred tax assets

        $ 16     $ 2     $ 18  

(b) Statutory valuation allowance adjustments

      -       -       -  
  

 

 

  

(c) Adjusted gross deferred tax assets (a — b)

      16       2       18  

(d) Deferred tax assets nonadmitted

      27       -       27  
  

 

 

  

(e) Subtotal net admitted deferred tax asset (c — d)

      (11 )      2       (9 ) 

(f) Deferred tax liabilities

      (11 )      (3 )      (14 ) 
  

 

 

  

(g) Net admitted deferred tax asset / (net deferred tax liability) (e — f)

        $ -     $ 5     $ 5  
  

 

 

  

 

F-40

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

9. Federal Income Taxes - (continued)

 

The Company has not recorded a valuation allowance with respect to the realizability of its deferred tax assets. In assessing the need for a valuation allowance, management considered the future reversal of taxable temporary differences, future taxable income exclusive of reversing temporary differences, taxable income in the carry back period, as well as tax planning strategies. Tax planning strategies were considered to the extent they were both prudent and feasible and if implemented, would result in the realization of deferred tax assets. Based on management’s assessment of all available information, management believes that it is more likely than not the Company will realize the full benefit of its deferred tax assets.

The amount of adjusted gross deferred tax assets admitted under each component and the resulting increase in deferred tax assets by character are as follows:

 

     December 31, 2016  
     (1)      (2)      (3)  
                   (Col 1 + 2)  
     Ordinary      Capital      Total  
  

 

 

  
     (in millions)  

2. Admission calculation components SSAP No. 101

         

(a) Federal income taxes paid in prior years recoverable through loss carrybacks.

        $ 88      $ -      $ 88  

(b) Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation.

(The lesser of 2(b)1 and 2(b)2 below)

      -        -        -  

1. Adjusted gross deferred tax assets expected to be realized following the Balance Sheet date.

      -        -        -  

2. Adjusted gross deferred tax assets allowed per limitation threshold.

      197        -        197  

(c) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from 2(a) and 2(b) above) offset by gross deferred tax liabilities.

      143        2        145  
  

 

 

  

(d) Deferred tax assets admitted as the result of application of SSAP No. 101. Total (2(a) + 2(b) + 2(c))

        $   231      $   2      $   233  
  

 

 

  

 

F-41

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

9. Federal Income Taxes - (continued)

 

     December 31, 2015  
     (4)     (5)      (6)  
                  (Col 4 + 5)  
     Ordinary     Capital      Total  
  

 

 

  
           (in millions)         

2. Admission calculation components SSAP No. 101

        

(a) Federal income taxes paid in prior years recoverable through loss carrybacks.

      $   40     $ -        $   40  

(b) Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation. (The lesser of 2(b)1 and 2(b)2 below)

      43       -        43  

1. Adjusted gross deferred tax assets expected to be realized following the Balance Sheet date.

      43       -        43  

2. Adjusted gross deferred tax assets allowed per limitation threshold.

      184       -        184  

(c) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from 2(a) and 2(b) above) offset by gross deferred tax liabilities.

      159       -        159  
  

 

 

  

(d) Deferred tax assets admitted as the result of application of SSAP No. 101. Total (2(a) + 2(b) + 2(c))

      $ 242     $ -        $   242  
  

 

 

  
     Change  
     (7)     (8)      (9)  
     (Col 1 - 4)     (Col 2 - 5)      (Col 7 + 8)  
     Ordinary     Capital      Total  
  

 

 

  
           (in millions)         

2. Admission calculation components SSAP No. 101

        

(a) Federal income taxes paid in prior years recoverable through loss carrybacks.

      $ 48     $ -        $   48  

(b) Adjusted gross deferred tax assets expected to be realized (excluding the amount of deferred tax assets from 2(a) above) after application of the threshold limitation. (The lesser of 2(b)1 and 2(b)2 below)

      (43 )      -        (43 ) 

1. Adjusted gross deferred tax assets expected to be realized following the Balance Sheet date.

      (43 )      -        (43 ) 

2. Adjusted gross deferred tax assets allowed per limitation threshold.

      13       -        13  

(c) Adjusted gross deferred tax assets (excluding the amount of deferred tax assets from 2(a) and 2(b) above) offset by gross deferred tax liabilities.

      (16 )      2        (14 ) 
  

 

 

  

(d) Deferred tax assets admitted as the result of application of SSAP No. 101. Total (2(a) + 2(b) + 2(c))

      $ (11 )    $ 2        $ (9 ) 
  

 

 

  

 

F-42

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

9. Federal Income Taxes - (continued)

 

     2016     2015  
  

 

 

  
     (in millions)  

(a) Ratio percentage used to determine recovery period and threshold limitation amount

      1324 %      1609 % 

(b) Amount of adjusted capital and surplus used to determine recovery period and threshold limitation in 2(b)2 above

      $   1,316       $   1,227  

Impact of tax planning strategies is as follows:

 

     December 31, 2016  
     (1)     (2)  
     Ordinary     Capital  
  

 

 

  
     (in millions)  

(a) Determination of Adjusted Gross Deferred Tax Assets and Net Admitted Deferred Tax Assets by tax character as a percentage.

     

1. Adjusted Gross DTAs Amount From Note 9A1(c)

      $   391     $ 2  

2. Percentage of Adjusted Gross DTAs By Tax Character Attributable To The Impact of Tax Planning Strategies

      0 %      0 % 

3. Net Admitted Adjusted Gross DTAs Amount from Note 9A1(e)

      $ 231       $   2  

4. Percentage of Net Admitted Adjusted Gross DTAs by Tax Character Attributable To The Impact of Tax Planning Strategies

      0 %      0 % 
     December 31, 2015  
     (3)     (4)  
     Ordinary     Capital  
  

 

 

  
     (in millions)  

(a) Determination of Adjusted Gross Deferred Tax Assets and Net Admitted Deferred Tax Assets by tax character as a percentage.

     

1. Adjusted Gross DTAs Amount From Note 9A1(c)

      $ 375     $ -  

2. Percentage of Adjusted Gross DTAs By Tax Character Attributable To The Impact of Tax Planning Strategies

      0 %      0 % 

3. Net Admitted Adjusted Gross DTAs Amount from Note 9A1(e)

      $   242     $ -  

4. Percentage of Net Admitted Adjusted Gross DTAs by Tax Character Attributable To The Impact of Tax Planning Strategies

      0 %      0 % 

 

F-43

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

9. Federal Income Taxes - (continued)

 

     Change  
     (5)     (6)  
     (Col 1 - 3)     (Col 2 - 4)  
     Ordinary     Capital  
  

 

 

  
     (in millions)  

(a) Determination of Adjusted Gross Deferred Tax Assets and Net Admitted Deferred Tax Assets by tax character as a percentage.

     

1. Adjusted Gross DTAs Amount From Note 9A1(c)

      $   16     $ 2  

2. Percentage of Adjusted Gross DTAs By Tax Character Attributable To The Impact of Tax Planning Strategies

      0 %      0 % 

3. Net Admitted Adjusted Gross DTAs Amount from Note 9A1(e)

      $ (11 )    $ 2  

4. Percentage of Net Admitted Adjusted Gross DTAs by Tax Character Attributable To The Impact of Tax Planning Strategies

      0 %      0 % 

The Company’s tax planning strategies do not include the use of reinsurance.

There are no unrecognized deferred tax liabilities for amounts described in ASC 740-10-25-3.

Current income taxes incurred consist of the following major components:

 

     Years Ended December 31,  
     (1)      (2)     (3)  
                  (Col 1 - 2)  
     2016      2015     Change  
  

 

 

  
     (in millions)  

1. Current income tax

        

(a) Federal

      $   85        $ (74 )      $   159  

(b) Foreign

      -        -       -  
  

 

 

  

(c) Subtotal

      85        (74 )      159  

(d) Federal income tax on net capital gains

      126        22       104  

(e) Utilization of capital loss carryforwards

      -        -       -  

(f) Other

      -        -       -  
  

 

 

  

(g) Federal and foreign income taxes incurred

      $   211      $ (52 )      $   263  
  

 

 

  

 

F-44

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

9. Federal Income Taxes - (continued)

 

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are as follows:

 

     December 31,  
     (1)      (2)      (3)  
                   (Col 1 - 2)  
     2016      2015      Change  
  

 

 

  
     (in millions)  

2. Deferred tax assets:

         

(a) Ordinary:

         

(1) Discounting of unpaid losses

      $ -        $ -        $ -  

(2) Unearned premium reserve

      -        -        -  

(3) Policyholder reserves

      356        342        14  

(4) Investments

      3        7        (4 ) 

(5) Deferred acquisition costs

      11        4        7  

(6) Policyholder dividends accrual

      5        -        5  

(7) Fixed assets

      -        -        -  

(8) Compensation and benefits accrual

      -        -        -  

(9) Pension accrual

      -        -        -  

(10) Receivables - nonadmitted

      -        -        -  

(11) Net operating loss carryforward

      1        4        (3 ) 

(12) Tax credit carry-forward

      11        10        1  

(13) Other (including items <5% of total ordinary tax assets)

      4        8        (4 ) 
  

 

 

  

(99) Subtotal

      $ 391        $ 375        $   16  

(b) Statutory valuation allowance adjustment

      -        -        -  

(c) Nonadmitted

      160        133        27  
  

 

 

  

(d) Admitted ordinary deferred tax assets (2(a)(99) - 2(b) - 2(c))

      $ 231        $ 242        $ (11 ) 

(e) Capital:

         

(1) Investments

      $ 2        $ -        $ 2  

(2) Net capital loss carryforward

      -        -        -  

(3) Real estate

      -        -        -  

(4) Other (including items <5% of total capital tax assets)

      -        -        -  
  

 

 

  

(99) Subtotal

      $ 2        $ -        $ 2  

(f) Statutory valuation allowance adjustment

      -        -        -  

(g) Nonadmitted

      -        -        -  
  

 

 

  

(h) Admitted capital deferred tax assets (2(e)(99) - 2(f) - 2(g))

      $ 2        $ -        $ 2  

(i) Admitted deferred tax assets (2(d)+2(h))

      $ 233        $   242        $ (9 ) 

3. Deferred tax liabilities:

         

(a) Ordinary:

         

(1) Investments

      $ 72        $ 99        $ (27 ) 

(2) Fixed assets

      -        -        -  

(3) Deferred and uncollected premium

      7        6        1  

(4) Policyholder reserves

      -        -        -  

(5) Other (including items <5% of total ordinary tax liabilities)

      30        15        15  
  

 

 

  

(99) Subtotal

      $ 109        $ 120        $ (11 ) 

(b) Capital:

         

(1) Investments

      $ 36        $ 39        $ (3 ) 

(2) Real estate

      -        -        -  

(3) Other (including items <5% of total capital tax liabilities)

      -        -        -  
  

 

 

  

(99) Subtotal

      $ 36        $ 39        $ (3 ) 
  

 

 

  

(c) Deferred tax liabilities (3(a)(99) + 3(b)(99))

      $   145        $ 159        $ (14 ) 
  

 

 

  

4. Net deferred tax assets/liabilities (2(i) - 3(c))

      $   88        $   83        $ 5  
  

 

 

  

 

F-45

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

9. Federal Income Taxes - (continued)

 

The change in net deferred income taxes is comprised of the following:

 

     December 31,  
     2016      2015      Change  
  

 

 

  
     (in millions)  

Total deferred tax assets

        $   393          $   375          $ 18  

Total deferred tax liabilities

      145        159        (14 ) 
  

 

 

  

Net deferred tax assets (liabilities)

        $   248          $ 216          $ 32  
  

 

 

     

Tax effect of unrealized gains and losses

            (10 ) 

Tax effect of unrealized foreign exchange gains (losses)

            -  
        

 

 

  

Change in net deferred income taxes

              $   42  
        

 

 

  

The provision for federal and foreign income taxes incurred is different from that which would be obtained by applying the statutory federal income tax rate of 35% to income before income tax (including realized capital gains). The significant items causing this difference are as follows:

 

     Years Ended December 31,  
     2016     2015     2014  
  

 

 

  
     (in millions)  

Ordinary provisions computed at statutory rate

        $   79     $ (28 )    $ (74 ) 

Net realized capital gains (losses) before IMR at statutory rate

      107       21       (7 ) 

Change in nonadmitted assets

      -       -       -  

Reinsurance

      (7 )      18       (4 ) 

Valuation allowance

      -       -       -  

Tax-exempt income

      -       -       -  

Nondeductible expenses

      -       -       -  

Foreign tax expense gross up

      -       -       1  

Amortization of IMR

      (6 )      (19 )      (5 ) 

Tax recorded in surplus

      1       2       1  

Dividend received deduction

      (8 )      (7 )      (7 ) 

Investment in subsidiaries

      -       1       -  

Prior year adjustment

      (6 )      (1 )      -  

Tax credits

      (1 )      (1 )      (1 ) 

Change in tax reserve

      10       1       3  

Pension

      -       -       -  

Other

      -       -       -  
  

 

 

  

Total

        $   169     $ (13 )    $   (93 ) 
  

 

 

  

Federal and foreign income taxes incurred

        $ 85     $   (74 )    $ (3 ) 

Capital gains tax

      126       23       1  

Change in net deferred income taxes

      (42 )      38       (91 ) 
  

 

 

  

Total statutory income tax expense (benefit)

        $   169     $ (13 )    $ (93 ) 
  

 

 

  

 

F-46

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

9. Federal Income Taxes - (continued)

 

As of December 31, 2016, the Company had the following carry forwards:

 

     Origination
Year		      Expiration
Year		      Amount  
  

 

 

  
     (in millions)  

Net operating loss

      2014        2029          $   2  
     2015        2030        -  
     2016        2031     
        

 

 

  
             $ 2  
        

 

 

  

Alternative minimum tax credit

      2004             $ 1  
     2005           1  
        

 

 

  
             $ 2  
        

 

 

  

Foreign tax credits

      2006        2016        1  
     2007        2017        1  
     2008        2018        1  
     2011        2021        2  
     2013        2023        1  
     2014        2024        1  
     2015        2025        1  
     2016        2026        1  
        

 

 

  
             $   9  
        

 

 

  

The amount of federal income taxes incurred that will be available for recoupment in the event of future net losses is $190 million, $0 million and $0 million for 2016, 2015 and 2014, respectively.

The Company has no deposits under Section 6603 of the Internal Revenue Code.

 

F-47

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

9. Federal Income Taxes - (continued)

 

The Company is included in the consolidated federal income tax return of JHFC with the following entities:

 

Essex Corporation    John Hancock Insurance Agency Inc.
Farmland Management Services, Inc.    John Hancock Insurance Company of Vermont
Guide Financial, Inc.    John Hancock Leasing Corp.
Hancock Farmland Services, Inc.    John Hancock Life & Health Insurance Company
Hancock Forest Management Inc.    John Hancock Life Insurance Company (USA)
Hancock Natural Resource Group Inc.    John Hancock Realty Advisors Inc.
Hancock Venture Partners Inc.    John Hancock Realty Mgt. Inc.
Hancock Venture Partners Inc. Russia    John Hancock Signature Services Inc.
HVP-Special Purpose Sub I Inc.    John Hancock Natural Resource Corp.
HVP-Special Purpose Sub II Inc.    Manulife Reinsurance (Bermuda) Limited
JH California Real Estate Holdings, Inc.    Manulife Reinsurance Limited
JH Illinois Real Estate Holdings, Inc.    Manulife Service Corporation
JH Networking Insurance Agency Inc.    MCC Asset Management Inc.
JHFS One Corp.    PT Timber Inc.
John Hancock Assignment Company    Signator Insurance Agency Inc.
John Hancock Capital Growth Management Inc.    Signator Investors Inc.
John Hancock Energy Resources Mgt. Inc.    The Manufacturers Investment Corporation
John Hancock Financial Network Inc.    Transamerica Fund Distributors Inc.
John Hancock Financial Corporation    Transamerica Fund Management Company

In accordance with the income tax sharing agreements in effect for the applicable tax years, the Company’s income tax expense (benefit) is computed as if the Company filed separate federal income tax returns with tax benefits provided for operating losses and tax credits when utilized by the consolidated group. Intercompany settlements of income taxes are made through an increase or reduction to amounts due to or from affiliates. Such settlements occur on a periodic basis in accordance with the tax sharing agreements.

Taxes receivable from (payable to) JHUSA, are ($192) million and $50 million at December 31, 2016 and 2015, respectively, and are included in other assets or current federal income taxes payable on the Balance Sheets.

The Company files income tax returns in the U.S. federal jurisdiction and in New York. The Company is under continuous examination by the Internal Revenue Service (“IRS”). Effective for 2010, the Company’s common parent, JHFC, merged into Manulife Holdings (Delaware) LLC (“MHDLLC”) resulting in a new combined group. With respect to the legacy MHDLLC consolidated return group, the IRS audit for tax years through 2009 have been closed.

In December 2016, the Company received and signed an IRS Revenue Agent Report for tax years 2010-2013. Tax years 2014 and forward are open under the statute of limitations.

 

F-48

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

9. Federal Income Taxes - (continued)

 

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

 

     2016     2015  
  

 

 

  
     (in millions)  

Balance at beginning of year

        $   9     $   8  

Additions based on tax positions related to the current year

      1       1  

Payments

      (2 )      -  

Additions for tax positions of prior years

      13       -  

Reductions for tax positions of prior years

      (4 )      -  
  

 

 

  

Balance at end of year

        $ 17     $   9  
  

 

 

  

Included in the balances as of December 31, 2016 and 2015, are $17 million and $9 million, respectively, of unrecognized benefits that, if recognized, would affect the Company’s effective tax rate. Included in the balances as of December 31, 2016 and 2015 are $0 million and $0 million, respectively, of tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.

The Company has no unrecognized tax benefits that will significantly increase or decrease in the next twelve months.

The Company recognizes interest accrued related to unrecognized tax benefits and penalties in income tax expense in the Statements of Operations. The Company recognized approximately $0 million, $0 million and $0 million of interest benefit in each of the years ended December 31, 2016, 2015, and 2014, respectively. The Company had approximately $1million and $0 million accrued for interest as of December 31, 2016 and 2015, respectively. The Company did not recognize any material penalties for the years ended December 31, 2016, 2015 and 2014.

10. Capital and Surplus

There are no restrictions placed on the Company’s unassigned surplus other than restrictions on dividend payments described below.

Under New York State insurance laws (“NYSIL”), no insurer without the prior approval of the Superintendent, may pay any shareholder dividend in the calendar year immediately following a calendar year for which the insurer’s net gain from operations, after tax, not including realized capital gains, was negative. NYSIL also limits the aggregate amount of dividends a life insurer may pay in any calendar year out of positive earned surplus, to the greater of (i) 10% of its statutory policyholders’ surplus as of the immediately preceding calendar year or (ii) the Company’s statutory net gain from operations, after tax, not including realized capital gains and (losses) for the immediately preceding calendar year, not to exceed 30% of its statutory policyholders’ surplus as of the immediately preceding calendar year.

In addition, NYSIL allows for a shareholder dividend even if the company does not have sufficient positive earned surplus, limited to the lesser of (i) 10% of its statutory policyholders’ surplus as of the immediately preceding calendar year or (ii) the Company’s statutory net gain from operations, after tax, not including realized capital gains and (losses) for the immediately preceding calendar year. The Company paid no shareholder dividends to its parent, JHUSA, in 2016, 2015 and 2014.

Life/health insurance companies are subject to certain Risk-Based Capital (“RBC”) requirements as specified by the NAIC. Under those requirements, the amount of capital and surplus maintained by a life/health insurance company is to be determined based on the various risk factors related to it. As of December 31, 2016 and 2015, based on calculations pursuant to those requirements, the Company’s total adjusted capital exceeds the company action level.

 

F-49

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

11. Related Party Transactions

Service Agreements

The Company has formal service agreements with JHUSA whereby the Company will pay a fee for services received under the agreements which include legal, personnel, marketing, investment accounting, and certain other administrative services and are billed based on intercompany cost allocations or total average daily net assets. Costs incurred under the agreements were $62 million, $68 million, and $68 million at December 31, 2016, 2015 and 2014, respectively. As of December 31, 2016 and 2015, the Company had amounts payable of $12 million and $15 million, respectively.

The Company has an Administrative Service Agreement with JHIMS and John Hancock Advisors (“JHA”) pursuant to which the Company will provide certain administrative and related functional support services as required by JHIMS and JHA in connection with variable contracts issued by the Company which provide for investment in selected portfolios of JHIMA and JHA. For such services, JHIMS and JHA will pay the Company a quarterly fee equal to a percentage of the average daily net assets of the funds attributable to the contracts issued by the Company. The amount earned under the agreement was $16 million and $17 million for the years ended December 31, 2016 and 2015, respectively.

The Company has an Underwriting and Distribution Agreement with JHD pursuant to which JHD is appointed as the principal underwriter and exclusive distributor of the variable life and other products issued by the Company. For the years ended December 31, 2016, 2015 and 2014, the Company was billed by JHD for underwriting commissions of $61 million, $69 million, and $72 million, respectively. The Company had amounts payable for services provided of $3 million and $3 million at December 31, 2016 and 2015, respectively.

Management believes the allocation methods used are reasonable and appropriate in the circumstances; however, the Company’s Balance Sheets and Statements of Operations may not necessarily be indicative of the financial condition that would have existed if the Company operated as an unaffiliated entity.

Other

During 2016, the Company received dividends of $3 million from JHCREH prior to the entity being dissolved. These dividends are included in the Company’s net investment income.

The Company did not own any shares of the stock of its parent, JHUSA, or its ultimate parent, MFC, at December 31, 2016 and 2015.

The Company is party to the Second Restated and Amended Liquidity Pool and Loan Facility Agreement effective January 1, 2010 with JHUSA. Pursuant to the agreement, participating affiliates are permitted to invest their excess cash in the liquidity pool and earn interest calculated at a rate that is reset daily to the one-month U.S. Dollar London Inter-Bank Bid Rate (“LIBID”), subject to an aggregate limit of $5 billion and an amount not to exceed 10% of the Company’s admitted assets as shown in the last financial statement filed with the Insurance Division. As of December 31, 2016 and 2015, the Company had a receivable from JHUSA in the amount of $263 million and $473 million, respectively, which is included in amounts due from affiliates in the Balance Sheets.

The Company had receivables from JHIMS relating to distributions of $1 million and $1 million, which were included in investment income due and accrued at December 31, 2016 and 2015, respectively.

The Company did not recognize any impairment write-down for its investment in subsidiaries, controlled or affiliated companies for the years ended December 31, 2016, 2015 and 2014, respectively.

The Company also enters into reinsurance transactions with its affiliates. Please refer to the Reinsurance Note for further details.

 

F-50

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

12. Commitments, Contingencies and Legal Proceedings

Commitments: The Company has extended commitments to purchase long-term bonds of $18 million, to purchase other invested assets of $690 million, and issue agricultural and commercial mortgages of $0 million at December 31, 2016. Approximately 27% of these commitments expire in 2017.

Contingencies: As of December 31, 2016, the Company does not have any material contingencies.

Legal Proceedings: The Company is regularly involved in litigation, both as a defendant and as a plaintiff. The litigation naming the Company as a defendant ordinarily involves its activities as a provider of insurance protection and wealth management products, and a taxpayer. In addition, the Insurance Department, the New York Attorney General, the SEC, the Financial Regulatory Authority, and other government and regulatory bodies regularly make inquiries and, from time to time, require the production of information or conduct examinations concerning the Company’s compliance with, among other things, insurance laws, securities laws, and laws governing the activities of broker-dealers. An estimation of the range of potential outcomes in any given matter is often unavailable until such matters have developed and sufficient information emerges to support an assessment of the range of possible loss, such as quantification of a damage demand from plaintiffs, discovery from other parties and investigation of factual allegations, rulings by the court on motions or appeals, analysis by experts, and the progress of settlement negotiations. On a quarterly and annual basis, the Company reviews relevant information with respect to litigation contingencies and updates its accruals and estimates of reasonably possible losses or ranges of loss based on such reviews.

Two putative class actions against our parent company, JHUSA, are pending, one in New York and one in California, in which claims are made that JHUSA breached, and continues to breach, the contractual terms of certain universal life policies issued between approximately 1990 and 2006 by including impermissible charges in its cost of insurance (“COI”) calculations. JHUSA believes that its COI calculations have been, and continue to be, in accordance with the terms of the policies and intends to vigorously defend these actions. Both cases are in the discovery stage and it is premature to attempt to predict any outcome or range of outcomes for these matters.

 

F-51

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

13. Annuity Actuarial Reserves

The Company’s annuity reserves and deposit fund liabilities and related separate account liabilities that are subject to discretionary withdrawal (with adjustment), subject to discretionary withdrawal (without adjustment), and not subject to discretionary withdrawal provisions are summarized as follows:

 

    December 31, 2016  
    General
Account		     Separate
Account
with
Guarantees		     Separate
Account
Nonguaranteed		     Total     Percent
of Total		  
 

 

 

  
    (in millions)  

Subject to discretionary withdrawal:

          

With fair value adjustment

       $   97         $   -         $   -         $   97       1 % 

At book value less current surrender charge of 5% or more

     3       -       -       3       0 % 

At fair value

     -       -       7,255       7,255       70 % 
 

 

 

  

Total with adjustment or at fair value

     100       -       7,255       7,355       71 % 

At book value without adjustment (minimal or no charge or adjustment)

     1,532       -       -       1,532       15 % 

Not subject to discretionary withdrawal

     1,410       -       2       1,412       14 % 
 

 

 

  

Total (gross)

     3,042       -       7,257       10,299       100 % 
         

 

 

  

Reinsurance ceded

     1,176       -       -       1,176    
 

 

 

    

Total (net)

       $   1,866         $   -         $ 7,257         $   9,123    
 

 

 

    
    December 31, 2015  
    General
Account		     Separate
Account
with
Guarantees		     Separate
Account
Nonguaranteed		     Total     Percent
of Total		  
 

 

 

  
    (in millions)  

Subject to discretionary withdrawal:

          

With fair value adjustment

       $   105         $ -         $   -         $   105       1 % 

At book value less current surrender charge of 5% or more

     4       -       -       4       0 % 

At fair value

     -       -       7,215       7,215       69 % 
 

 

 

  

Total with adjustment or at fair value

     109       -       7,215       7,324       70 % 

At book value without adjustment (minimal or no charge or adjustment)

     1,708       -       -       1,708       16 % 

Not subject to discretionary withdrawal

     1,430       -       2       1,432       14 % 
 

 

 

  

Total (gross)

     3,247       -       7,217       10,464       100 % 
         

 

 

  

Reinsurance ceded

     1,264       -       -       1,264    
 

 

 

    

Total (net)

       $   1,983         $ -         $   7,217         $   9,200    
 

 

 

    

 

F-52

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

14. Separate Accounts

Separate accounts held by the Company include individual and group variable annuity and variable life products that offer guarantee and non-guaranteed returns. The net investment experience of the separate account is credited directly to the policyholder and can be positive or negative.

For guarantees of amounts in the event of death, the net amount at risk is defined as the excess of the initial sum insured over the current sum insured for fixed premium variable life insurance contracts, and, for other variable life insurance contracts, is equal to the sum insured when the account value is zero and the policy is still in force.

The deposits related to variable annuities generally provide a GMDB. For annuity products, this can take the form of either (a) return of no less than total deposits made to the contract less any partial withdrawals; (b) total deposits made to the contract less any partial withdrawals plus a minimum return; (c) the highest contract value on a specified anniversary date minus any withdrawals following the contract anniversary; or (d) a combination benefit of (b) and (c) above. The assets and liabilities of these accounts are carried at fair value. The GMDB reserve is held in the Company’s general account policy reserves.

Contracts with guaranteed minimum income benefit (“GMIB”) rider provides a guaranteed lifetime annuity which may be elected by the contract holder after a stipulated waiting period (ten years), and which may be larger than what the contract account balance could purchase at then-current annuity purchase rates.

Multiple variations of an optional GMWB rider have also been offered by the Company. The GMWB rider provides contract holders a guaranteed annual withdrawal amount over a specified time period or in some cases for as long as they live. In general, guaranteed annual withdrawal amounts are based on deposits and may be reduced if withdrawals exceed allowed amounts. Guaranteed amounts may also be increased as a result of “step-up” provisions which increase the benefit base to higher account values at specified intervals. Guaranteed amounts may also be increased if withdrawals are deferred over a specified period. In addition, certain versions of the GMWB rider extend lifetime guarantees to spouses.

Unaffiliated reinsurance has been utilized to mitigate risk related to some of the guarantee benefit riders. Hedging has also been utilized to mitigate risk related to some of the GMWB riders.

For GMDB, the net amount at risk is defined as the current guaranteed minimum death benefit in excess of the current account balance. For GMIB, the net amount at risk is defined as the excess of the current annuitization income base over the current account value. For GMWB, the net amount at risk is defined as the current guaranteed withdrawal amount minus the current account value. For all the guarantees, the net amount at risk is floored at zero at the single contract level.

The deposits related to the variable life insurance contracts are invested in separate accounts and the Company guarantees a specified death benefit if certain specified premiums are paid by the policyholder, regardless of separate account performance.

All of the Company’s separate account assets were legally insulated at December 31, 2016 and 2015. The assets legally insulated from the general account are attributed to the following products/transactions:

 

     December 31,  
Product/Transaction    2016      2015  
  

 

 

  
     (in millions)  

Group Annuity Contracts (401K)

        $   4,296      $   4,066  

Variable and Fixed Annuities

      2,972        3,167  

Life insurance

      235        215  
  

 

 

  

Total

        $   7,503      $   7,448  
  

 

 

  

 

F-53

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

14. Separate Accounts - (continued)

 

To compensate the general account for the risk taken, the separate account paid risk charges and amounts toward separate account guarantees are as follows:

 

    

Risk Charges

Paid to General

Account

     

Amounts

toward

Separate

Account

Guarantees

  
  

 

 

  
     (in millions)  

2016

        $   17      $   4  

2015

        $ 18      $ 2  

2014

        $ 19      $ 5  

2013

        $ 20      $ 5  

2012

        $   21      $   4  

The Company had the following variable annuities with guaranteed benefits:

 

     December 31,  
     2016      2015  
  

 

 

  
     (in millions, except for ages)  

Account value

        $   3,021      $   3,217  

Amount of reserve held

      185        223  

Net amount at risk — gross

      402        442  

Weighted average attained age

      68        68  

The following assumptions and methodology were used to determine the amounts above at December 31, 2016 and 2015:

 

  •  

Actuarial Guideline 43 (“AG 43”) is used in both years to determine the aggregate reserve for products falling under the scope. Assumptions used in the standard scenario are prescribed by the guideline. Assumptions used in the stochastic scenarios are detailed below.

 

  •  

The stochastically generated projection scenarios have met the scenario calibration criteria prescribed in AG 43.

 

  •  

In 2016 and 2015, annuity mortality is based on the Ruark Variable Annuity Table, which is based on an industry study of variable annuity deaths. The table is further adjusted by factors varied by rider types (living benefit/GMDB only) and qualified and non-qualified business.

 

  •  

In 2016 and 2015, annuity base lapse rates vary by product, policy year, and rider type, where the lapse rates range from 0.5% to 40% for GMDB, GMIB and GMWB. These rates are dynamically reduced for guarantees that are in-the-money. Beginning in 2012, rates are also dynamically increased for GMWBs that are out-of-the-money.

 

  •  

For variable annuities, the swap curve at December 31 is used for discounting in both years.

 

  •  

For variable annuities, mean return, volatility and correlation assumptions are determined by indices, which have met the calibration criteria prescribed in AG 43.

 

F-54

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

14. Separate Accounts - (continued)

 

Account balances of variable contracts with guarantees were invested in separate accounts with the following characteristics:

 

     December 31,  
     2016      2015  
  

 

 

  
     (in millions)  

Type of Fund

      

Equity

        $   1,585      $   1,598  

Balanced

      1,239        1,379  

Bonds

      355        375  

Money Market

      23        26  
  

 

 

  

Total

        $   3,202      $   3,378  
  

 

 

  

Information regarding the nonguaranteed separate accounts of the Company is as follows:

 

     December 31,  
     2016      2015  
  

 

 

  
     (in millions)  

Premiums, deposits and other considerations

        $ 806      $   727  
  

 

 

  

Reserves for accounts with assets at:

      

Fair value

      7,472        7,410  

Amortized cost

      -        -  
  

 

 

  

Total

        $   7,472      $   7,410  
  

 

 

  

 

     December 31,  
     2016      2015  
  

 

 

  
     (in millions)  

Reserves for separate accounts by withdrawal characteristics:

      

Subject to discretionary withdrawal:

      

With fair value adjustment

        $ -      $ -  

At book value without fair value adjustments and with current surrender charge of 5% or more

      99        107  

At fair value

      7,318        7,263  

At book value without fair value adjustments and with current surrender charge of less than 5%

      53        38  
  

 

 

  

Subtotal

      7,470        7,408  

Not subject to discretionary withdrawal

      2        2  
  

 

 

  

Total

        $   7,472      $   7,410  
  

 

 

  

 

F-55

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK

NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS – (CONTINUED)

 

14. Separate Accounts - (continued)

 

Amounts transferred to and from separate accounts are as follows:

 

     December 31,  
     2016     2015     2014  
  

 

 

  
     (in millions)  

Transfers to separate accounts

        $   1,022         $   934         $   884  

Transfers from separate accounts

      1,369       1,403       1,401  
  

 

 

  

Net transfers to (from) separate accounts

        $   (347 )        $   (469 )        $   (517 ) 
  

 

 

  

15. Employee Benefits

Retirement Plans: The Company participates in the John Hancock Pension Plan, a qualified defined benefit plan sponsored by MIC. The Company also participates in the John Hancock Non-Qualified Pension Plan, a non-qualified defined benefit plan for employees whose qualified cash balance benefit is restricted by the Internal Revenue Code. The non-qualified defined benefit plan was frozen except for grandfathered participants as of January 1, 2008, and the benefits accrued under this plan continue to be subject to the plan’s provisions. The expense for these plans was charged to the Company and was not material for the years ended December 31, 2016, 2015 and 2014.

401(k) Plan: The Company participates in The Investment-Incentive Plan for John Hancock Employees, a qualified defined contribution plan for its employees who meet certain eligibility requirements. The plan is sponsored by JHUSA. The expense for the defined contribution plan was charged to the Company and was not material for the years ended December 31, 2016, 2015 and 2014.

Other Postretirement Benefit Plan: The Company participates in the John Hancock Employee Welfare Plan (“the Welfare Plan”), a postretirement and postemployment medical and life insurance benefit plan for its retired employees and their spouses. The Welfare Plan is sponsored by MIC. The expense for other postretirement benefits was charged to the Company and was not material for the years ended December 31, 2016, 2015 and 2014.

16. Subsequent Events

The Company evaluated the recognition and disclosure of subsequent events for its December 31, 2016 financial statements through March 29, 2017, the date the financial statements were issued. The Company did not have any subsequent events requiring disclosure.

 

F-56

Table of Contents

 

 

AUDITED FINANCIAL STATEMENTS

John Hancock Life Insurance Company of New York Separate Account B

December 31, 2016

Table of Contents

John Hancock Life Insurance Company of New York Separate Account B

Audited Financial Statements

December  31, 2016

Contents

 

Report of Independent Registered Public Accounting Firm

      3  

Statements of Assets and Liabilities

      5  

Statements of Operations and Changes in Contract Owners’ Equity

      23  

Notes to Financial Statements

      63  

Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors of John Hancock Life Insurance Company of New York and Contract Owners of John Hancock Life Insurance Company of New York Separate Account B

We have audited the accompanying statements of assets and liabilities of John Hancock Life Insurance Company of New York Separate Account B (the Account) comprised of the following sub-accounts,

 

500 Index Fund B Series NAV

   

International Small Company Trust Series NAV

Active Bond Trust Series I

   

International Value Trust Series I

Active Bond Trust Series NAV

   

International Value Trust Series NAV

All Cap Core Trust Series I

   

Investment Quality Bond Trust Series I

All Cap Core Trust Series NAV

   

Investment Quality Bond Trust Series NAV

Alpha Opportunities Trust Series I

   

Lifestyle Aggressive MVP Series I

Alpha Opportunities Trust Series NAV

   

Lifestyle Aggressive MVP Series NAV

American Asset Allocation Trust Series I

   

Lifestyle Aggressive Trust PS Series NAV

American Global Growth Trust Series I

   

Lifestyle Balanced MVP Series I

American Growth Trust Series I

   

Lifestyle Balanced MVP Series NAV

American Growth-Income Trust Series I

   

Lifestyle Balanced Trust PS Series NAV

American International Trust Series I

   

Lifestyle Conservative MVP Series I

American New World Trust Series I

   

Lifestyle Conservative MVP Series NAV

Blue Chip Growth Trust Series I

   

Lifestyle Conservative Trust PS Series NAV

Blue Chip Growth Trust Series NAV

   

Lifestyle Growth MVP Series I

Bond Trust Series I

   

Lifestyle Growth MVP Series NAV

Bond Trust Series NAV

   

Lifestyle Growth Trust PS Series I

Capital Appreciation Trust Series I

   

Lifestyle Growth Trust PS Series NAV

Capital Appreciation Trust Series NAV

   

Lifestyle Moderate MVP Series I

Capital Appreciation Value Trust Series I

   

Lifestyle Moderate MVP Series NAV

Capital Appreciation Value Trust Series NAV

   

Lifestyle Moderate Trust PS Series NAV

Core Bond Trust Series I

   

M Capital Appreciation

Core Bond Trust Series NAV

   

M International Equity

Core Strategy Trust Series NAV

   

M Large Cap Growth

Emerging Markets Value Trust Series I

   

M Large Cap Value

Emerging Markets Value Trust Series NAV

   

Mid Cap Index Trust Series I

Equity Income Trust Series I

   

Mid Cap Index Trust Series NAV

Equity Income Trust Series NAV

   

Mid Cap Stock Trust Series I

Financial Industries Trust Series I

   

Mid Cap Stock Trust Series NAV

Financial Industries Trust Series NAV

   

Mid Value Trust Series I

Fundamental All Cap Core Trust Series I

   

Mid Value Trust Series NAV

Fundamental All Cap Core Trust Series NAV

   

Money Market Trust Series I

Fundamental Large Cap Value Trust Series I

   

Money Market Trust Series NAV

Fundamental Large Cap Value Trust Series NAV

   

PIMCO All Asset

Global Bond Trust Series I

   

Real Estate Securities Trust Series I

Global Bond Trust Series NAV

   

Real Estate Securities Trust Series NAV

Global Trust Series I

   

Science & Technology Trust Series I

Global Trust Series NAV

   

Science & Technology Trust Series NAV

Health Sciences Trust Series I

   

Short Term Government Income Trust Series I

Health Sciences Trust Series NAV

   

Short Term Government Income Trust Series NAV

High Yield Trust Series I

   

Small Cap Growth Trust Series I

High Yield Trust Series NAV

   

Small Cap Growth Trust Series NAV

International Equity Index Trust B Series I

   

Small Cap Index Trust Series I

International Equity Index Trust B Series NAV

   

Small Cap Index Trust Series NAV

International Growth Stock Trust Series I

   

Small Cap Opportunities Trust Series I

International Growth Stock Trust Series NAV

   

Small Cap Opportunities Trust Series NAV

International Small Company Trust Series I

   

Small Cap Value Trust Series I

 

3

Table of Contents

Small Cap Value Trust Series NAV

   

Ultra Short Term Bond Trust Series I

Small Company Value Trust Series I

   

Ultra Short Term Bond Trust Series NAV

Small Company Value Trust Series NAV

   

Utilities Trust Series I

Strategic Income Opportunities Trust Series I

   

Utilities Trust Series NAV

Strategic Income Opportunities Trust Series NAV

   

Value Trust Series I

Total Bond Market Trust B Series NAV

   

Value Trust Series NAV

Total Stock Market Index Trust Series I

   

Total Stock Market Index Trust Series NAV

   

as of December 31, 2016, and the related statements of operations and changes in contract owners’ equity for the above mentioned sub-accounts and for the Franklin Templeton Founding Allocation Trust Series I, Franklin Templeton Founding Allocation Trust Series NAV, International Core Trust Series I, International Core Trust Series NAV, Money Market Trust B Series NAV, Real Return Bond Trust Series I, Real Return Bond Trust Series NAV, U.S. Equity Trust Series I, U.S. Equity Trust Series NAV, and Total Return Trust Series I sub-accounts (the “closed sub-accounts”) for each of the periods indicated therein. These financial statements are the responsibility of the Account’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. We were not engaged to perform an audit of the Account’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Account’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2016, by correspondence with the fund companies, or their transfer agents, as applicable. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of each of the above mentioned sub-accounts constituting John Hancock Life Insurance Company of New York Separate Account B at December 31, 2016, the results of their and the closed sub-accounts’ operations, and changes in contract owners’ equity for each of the periods indicated therein, in conformity with U.S. generally accepted accounting principles.

/s/ ERNST & YOUNG LLP

Boston, Massachusetts

March 29, 2017

 

4

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     500 Index Fund B
Series NAV		      Active Bond Trust
Series I		      Active Bond Trust
Series NAV		      All Cap Core Trust
Series I		      All Cap Core Trust
Series NAV		      Alpha Opportunities
Trust Series I		  

Total Assets

                  

Investments at fair value

    $ 16,840,758      $ 286,789      $ 1,077,045      $ 299,565      $ 139,729      $ 4,722  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      360,358        12,589        14,485        15,507        6,083        194  

Unit value

    $ 46.73      $ 22.78      $ 74.36      $ 19.32      $ 22.97      $ 24.34  

Shares

      617,104        30,348        113,853        9,926        4,627        466  

Cost

    $ 15,274,893      $ 297,831      $ 1,126,625      $ 156,346      $ 111,365      $ 5,059  

See accompanying notes.

 

5

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     Alpha
Opportunities
Trust
Series NAV		      American
Asset Allocation
Trust
Series I		      American
Global Growth
Trust
Series I		      American
Growth Trust
Series I		      American
Growth-Income
Trust
Series I		      American
International
Trust
Series I		  

Total Assets

                  

Investments at fair value

    $ 159,551      $ 3,107,265      $ 266,536      $ 2,672,148      $ 2,393,654      $ 1,602,811  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      6,192        185,378        16,977        101,511        94,612        82,609  

Unit value

    $ 25.77      $ 16.76      $ 15.70      $ 26.32      $ 25.30      $ 19.40  

Shares

      15,735        232,580        19,846        143,510        136,158        90,503  

Cost

    $ 190,853      $ 3,165,268      $ 289,400      $ 2,701,021      $ 2,414,286      $ 1,529,345  

See accompanying notes.

 

6

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     American
New World
Trust
Series I		      Blue Chip
Growth Trust
Series I		      Blue Chip
Growth Trust
Series NAV		      Bond Trust
Series I		      Bond Trust
Series NAV		      Capital
Appreciation
Trust
Series I		  

Total Assets

                  

Investments at fair value

    $ 390,712      $ 722,465      $ 7,175,080      $ 20,748      $ 1,136,780      $ 323,326  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      24,076        27,076        52,357        1,800        98,343        11,837  

Unit value

    $ 16.23      $ 26.68      $ 137.04      $ 11.53      $ 11.56      $ 27.31  

Shares

      35,168        26,319        261,387        1,559        85,408        27,658  

Cost

    $ 435,839      $ 798,722      $ 8,278,757      $ 21,596      $ 1,173,117      $ 371,122  

See accompanying notes.

 

7

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     Capital
Appreciation
Trust
Series NAV		      Capital
Appreciation
Value Trust
Series I		      Capital
Appreciation
Value Trust
Series NAV		      Core Bond
Trust
Series I		      Core Bond
Trust
Series NAV		      Core Strategy
Trust
Series NAV		  

Total Assets

                  

Investments at fair value

    $ 3,317,642      $ 501      $ 2,966,043      $ 650,553      $ 2,357,008      $ 8,000,848  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      123,590        25        148,514        31,175        140,605        507,051  

Unit value

    $ 26.84      $ 20.04      $ 19.97      $ 20.87      $ 16.76      $ 15.78  

Shares

      283,317        45        268,177        49,698        180,891        563,440  

Cost

    $ 3,576,997      $ 546      $ 3,209,181      $ 669,186      $ 2,420,336      $ 8,056,279  

See accompanying notes.

 

8

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     Emerging Markets
Value Trust
Series I		      Emerging Markets
Value Trust
Series NAV		      Equity Income
Trust
Series I (a)		      Equity Income
Trust Series
NAV (b)		      Financial
Industries
Trust
Series I		      Financial
Industries
Trust
Series NAV		  

Total Assets

                  

Investments at fair value

    $ 49,004      $ 746,284      $ 518,476      $ 5,238,834      $ 104,083      $ 539,626  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      3,638        68,929        16,816        102,723        3,787        16,289  

Unit value

    $ 13.47      $ 10.83      $ 30.83      $ 51.00      $ 27.48      $ 33.13  

Shares

      6,020        91,794        31,102        315,402        7,909        41,099  

Cost

    $ 48,347      $ 834,766      $ 537,662      $ 5,236,996      $ 82,201      $ 497,596  

 

(a)

Renamed on May 2, 2016. Previously known as Equity-Income Trust Series I.

(b)

Renamed on May 2, 2016. Previously known as Equity-Income Trust Series NAV.

See accompanying notes.

 

9

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     Fundamental
All Cap Core
Trust
Series I		      Fundamental
All Cap Core
Trust
Series NAV		      Fundamental
Large Cap
Value Trust
Series I		      Fundamental
Large Cap
Value Trust
Series NAV		      Global Bond
Trust
Series I		      Global Bond
Trust
Series NAV		  

Total Assets

                  

Investments at fair value

    $ 627      $ 623,457      $ 764,749      $ 2,374,790      $ 229,592      $ 952,636  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      15        25,512        24,751        109,078        10,708        31,069  

Unit value

    $ 41.80      $ 24.44      $ 30.90      $ 21.77      $ 21.44      $ 30.66  

Shares

      30        29,717        41,360        128,437        18,881        78,600  

Cost

    $ 600      $ 584,242      $ 713,771      $ 2,162,655      $ 236,778      $ 1,003,073  

See accompanying notes.

 

10

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     Global Trust
Series I		      Global Trust
Series NAV		      Health Sciences
Trust
Series I		      Health Sciences
Trust
Series NAV		      High Yield
Trust
Series I		      High Yield
Trust
Series NAV		  

Total Assets

                  

Investments at fair value

    $ 103,553      $ 1,168,068      $ 329,846      $ 2,180,130      $ 313,410      $ 2,981,723  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      5,350        66,006        4,740        40,164        13,164        132,135  

Unit value

    $ 19.36      $ 17.70      $ 69.59      $ 54.28      $ 23.81      $ 22.57  

Shares

      5,514        62,264        15,110        98,738        59,925        577,853  

Cost

    $ 109,208      $ 1,213,687      $ 407,668      $ 3,119,940      $ 335,375      $ 3,206,628  

See accompanying notes.

 

11

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     International
Equity Index
Trust B
Series I		      International
Equity Index
Trust B
Series NAV		      International
Growth
Stock Trust
Series I		      International
Growth
Stock Trust
Series NAV		      International
Small Company
Trust
Series I		      International
Small Company
Trust
Series NAV		  

Total Assets

                  

Investments at fair value

    $ 217,256      $ 6,025,292      $ 142,812      $ 745,839      $ 82,396      $ 1,100,500  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      19,085        134,866        11,921        62,105        5,204        69,273  

Unit value

    $ 11.38      $ 44.68      $ 11.98      $ 12.01      $ 15.83      $ 15.89  

Shares

      14,689        407,665        9,256        48,306        6,613        88,323  

Cost

    $ 220,988      $ 6,680,752      $ 133,817      $ 752,678      $ 75,554      $ 1,044,058  

See accompanying notes.

 

12

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     International
Value Trust
Series I		      International
Value Trust
Series NAV		      Investment
Quality
Bond Trust
Series I		      Investment
Quality
Bond Trust
Series NAV		      Lifestyle
Aggressive
MVP
Series I		      Lifestyle
Aggressive
MVP
Series NAV		  

Total Assets

                  

Investments at fair value

    $ 317,999      $ 1,596,482      $ 306,645      $ 521,374      $ 453,616      $ 12,545,507  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      12,833        99,853        12,851        31,503        23,137        699,792  

Unit value

    $ 24.78      $ 15.99      $ 23.86      $ 16.55      $ 19.61      $ 17.93  

Shares

      25,542        129,270        27,902        47,614        46,052        1,273,656  

Cost

    $ 317,621      $ 1,617,783      $ 324,581      $ 536,924      $ 424,122      $ 11,977,396  

See accompanying notes.

 

13

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     Lifestyle
Aggressive
Trust PS
Series NAV		      Lifestyle
Balanced
MVP
Series I		      Lifestyle
Balanced
MVP
Series NAV		      Lifestyle
Balanced
Trust PS
Series NAV		      Lifestyle
Conservative
MVP
Series I		      Lifestyle
Conservative
MVP
Series NAV		  

Total Assets

                  

Investments at fair value

    $ 160,727      $ 4,948,147      $ 35,567,538      $ 1,148,326      $ 64,247      $ 3,186,335  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      13,793        206,438        1,973,057        100,817        2,661        185,509  

Unit value

    $ 11.65      $ 23.97      $ 18.03      $ 11.39      $ 24.14      $ 17.18  

Shares

      12,547        410,635        2,944,333        83,393        5,778        286,026  

Cost

    $ 158,159      $ 5,006,848      $ 37,678,666      $ 1,182,506      $ 71,011      $ 3,538,579  

See accompanying notes.

 

14

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     Lifestyle
Conservative
Trust PS
Series NAV		      Lifestyle
Growth
MVP
Series I		      Lifestyle
Growth
MVP
Series NAV		      Lifestyle
Growth
Trust PS
Series I		      Lifestyle
Growth
Trust PS
Series NAV		      Lifestyle
Moderate
MVP
Series I		  

Total Assets

                  

Investments at fair value

    $ 87,513      $ 2,018,359      $ 33,819,208      $ 1,044      $ 4,747,850      $ 810,333  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      7,904        93,613        1,901,864        102        409,807        33,313  

Unit value

    $ 11.07      $ 21.56      $ 17.78      $ 10.24      $ 11.59      $ 24.32  

Shares

      6,784        155,378        2,601,478        72        326,987        69,556  

Cost

    $ 91,989      $ 1,877,775      $ 32,805,002      $ 1,044      $ 4,772,818      $ 805,895  

See accompanying notes.

 

15

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     Lifestyle Moderate
MVP
Series NAV		      Lifestyle Moderate
Trust PS
Series NAV		      M Capital
Appreciation		      M International
Equity		      M Large Cap
Growth		      M Large
Cap Value		  

Total Assets

                  

Investments at fair value

    $ 8,335,995      $ 707,897      $ 384,354      $ 514,619      $ 716,972      $ 597,955  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      462,428        62,721        3,995        16,220        13,574        23,018  

Unit value

    $ 18.03      $ 11.29      $ 96.21      $ 31.73      $ 52.82      $ 25.98  

Shares

      715,536        52,476        13,127        46,279        35,902        46,389  

Cost

    $ 9,149,011      $ 731,536      $ 380,855      $ 558,702      $ 805,431      $ 603,419  

See accompanying notes.

 

16

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     Mid Cap Index
Trust Series I		      Mid Cap Index
Trust Series NAV		      Mid Cap Stock
Trust Series I		      Mid Cap Stock
Trust Series NAV		      Mid Value
Trust
Series I		      Mid Value
Trust
Series NAV		  

Total Assets

                  

Investments at fair value

    $ 369,908      $ 3,184,142      $ 287,428      $ 1,248,936      $ 264,205      $ 885,064  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      7,513        98,520        8,192        16,346        8,490        18,500  

Unit value

    $ 49.24      $ 32.32      $ 35.09      $ 76.41      $ 31.12      $ 47.84  

Shares

      17,350        149,350        20,299        87,277        22,737        76,563  

Cost

    $ 344,264      $ 3,022,797      $ 329,712      $ 1,444,672      $ 271,193      $ 871,406  

See accompanying notes.

 

17

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     Money Market
Trust
Series I		      Money-Market
Trust
Series NAV		      PIMCO
All Asset		      Real Estate
Securities Trust
Series I		      Real Estate
Securities Trust
Series NAV		      Science &
Technology Trust
Series I		  

Total Assets

                  

Investments at fair value

    $ 2,218,048      $ 4,881,977      $ 1,534,384      $ 714,389      $ 2,363,055      $ 262,607  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      164,662        487,645        94,849        12,973        15,471        14,102  

Unit value

    $ 13.47      $ 10.01      $ 16.18      $ 55.07      $ 152.74      $ 18.62  

Shares

      2,218,048        4,881,977        150,725        38,305        127,457        11,682  

Cost

    $ 2,218,048      $ 4,881,977      $ 1,684,625      $ 517,409      $ 1,892,154      $ 261,927  

See accompanying notes.

 

18

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     Science &
Technology Trust
Series NAV		      Short Term
Government
Income Trust
Series I		      Short Term
Government
Income Trust
Series NAV		      Small Cap
Growth Trust
Series I		      Small Cap
Growth Trust
Series NAV		      Small Cap
Index Trust
Series I		  

Total Assets

                  

Investments at fair value

    $ 1,237,631      $ 373,228      $ 514,660      $ 17,809      $ 968,168      $ 150,957  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      39,801        34,710        47,698        691        31,662        4,021  

Unit value

    $ 31.10      $ 10.75      $ 10.79      $ 25.77      $ 30.58      $ 37.54  

Shares

      54,569        30,794        42,464        2,223        119,675        10,241  

Cost

    $ 1,306,845      $ 387,464      $ 536,103      $ 19,529      $ 1,248,416      $ 135,360  

See accompanying notes.

 

19

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     Small Cap
Index Trust
Series NAV		      Small Cap
Opportunities
Trust Series I		      Small Cap
Opportunities
Trust
Series NAV		      Small Cap
Value Trust
Series I		      Small Cap
Value Trust
Series NAV		      Small Company
Value Trust
Series I		  

Total Assets

                  

Investments at fair value

    $ 2,384,087      $ 125,799      $ 759,381      $ 96,108      $ 1,424,668      $ 199,403  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      79,543        2,814        34,463        3,229        17,008        3,998  

Unit value

    $ 29.97      $ 44.70      $ 22.03      $ 29.76      $ 83.76      $ 49.88  

Shares

      161,633        4,050        24,575        4,468        66,449        9,039  

Cost

    $ 2,264,118      $ 127,776      $ 712,869      $ 86,648      $ 1,424,174      $ 181,458  

See accompanying notes.

 

20

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     Small
Company
Value Trust
Series NAV		      Strategic
Income
Opportunities
Trust Series I		      Strategic
Income
Opportunities
Trust
Series NAV		      Total Bond
Market Trust B
Series NAV		      Total Stock
Market Index
Trust
Series I		      Total Stock
Market
Index Trust
Series NAV		  

Total Assets

                  

Investments at fair value

    $ 1,390,867      $ 143,791      $ 1,752,214      $ 717,243      $ 154,027      $ 3,541,365  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      48,759        5,233        85,913        29,548        5,761        39,740  

Unit value

    $ 28.53      $ 27.48      $ 20.40      $ 24.27      $ 26.74      $ 89.11  

Shares

      63,221        10,723        131,056        71,226        8,018        184,446  

Cost

    $ 1,341,739      $ 143,974      $ 1,755,013      $ 744,547      $ 113,063      $ 3,153,230  

See accompanying notes.

 

21

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF ASSETS AND LIABILITIES

December 31, 2016

 

     Ultra Short
Term Bond
Trust Series I		      Ultra Short
Term
Bond Trust
Series NAV		      Utilities
Trust
Series I		      Utilities
Trust Series
NAV		      Value Trust
Series I		      Value Trust
Series NAV		  

Total Assets

                  

Investments at fair value

    $ 24,256      $ 287,981      $ 110,484      $ 959,365      $ 192,581      $ 888,097  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Units outstanding

      2,402        28,405        3,119        33,814        4,599        30,987  

Unit value

    $ 10.10      $ 10.14      $ 35.42      $ 28.37      $ 41.87      $ 28.66  

Shares

      2,106        24,977        8,769        76,261        9,097        42,030  

Cost

    $ 24,631      $ 292,281      $ 120,119      $ 1,054,459      $ 187,421      $ 922,621  

See accompanying notes.

 

22

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     500 Index Fund B Series NAV     Active Bond Trust Series I     Active Bond Trust Series NAV  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 265,223     $ 172,824     $ 11,110     $ 17,899     $ 38,762     $ 48,429  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      265,223       172,824       11,110       17,899       38,762       48,429  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      183,530       92,908       —         —         —         —    

Net realized gain (loss)

      326,614       438,454       7,013       1,891       (5,618 )      (1,333 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      510,144       531,362       7,013       1,891       (5,618 )      (1,333 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      646,619       (609,394 )      (1,126 )      (18,745 )      10,606       (51,322 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      1,421,986       94,792       16,997       1,045       43,750       (4,226 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      897,636       808,612       8,670       19,493       139,435       82,828  

Transfers between sub-accounts and the company

      4,909,415       2,706,126       (67,649 )      (45,783 )      44,543       265,343  

Transfers on general account policy loans

      132,890       (552,297 )      (9,089 )      (239 )      (1,181 )      (12,317 ) 

Withdrawals

      (105,610 )      (476,576 )      (2 )      1       (65,050 )      (1,819 ) 

Annual contract fee

      (714,131 )      (518,400 )      (16,127 )      (14,871 )      (38,236 )      (28,768 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      5,120,200       1,967,465       (84,197 )      (41,399 )      79,511       305,267  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      6,542,186       2,062,257       (67,200 )      (40,354 )      123,261       301,041  

Net assets at beginning of period

      10,298,572       8,236,315       353,989       394,343       953,784       652,743  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 16,840,758     $ 10,298,572     $ 286,789     $ 353,989     $ 1,077,045     $ 953,784  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      252,214       207,187       16,213       18,091       13,404       9,184  

Units issued

      155,151       115,763       2,915       1,319       3,255       6,217  

Units redeemed

      (47,007 )      (70,736 )      (6,539 )      (3,197 )      (2,174 )      (1,997 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      360,358       252,214       12,589       16,213       14,485       13,404  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

23

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     All Cap Core Trust Series I     All Cap Core Trust Series NAV     Alpha Opportunities Trust Series I  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 5,310     $ 2,886     $ 2,283     $ 1,099     $ 78     $ 53  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      5,310       2,886       2,283       1,099       78       53  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      —         —         —         —         514       2,448  

Net realized gain (loss)

      17,835       4,483       4,612       8,299       (3,773 )      (2,726 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      17,835       4,483       4,612       8,299       (3,259 )      (278 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      7,523       388       5,557       (7,141 )      928       (1,266 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      30,668       7,757       12,452       2,257       (2,253 )      (1,491 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      7,334       9,648       32,889       19,031       2,850       3,700  

Transfers between sub-accounts and the company

      (49 )      (2,055 )      (843 )      13,966       (35,975 )      38,168  

Transfers on general account policy loans

      (21,271 )      —         (4,833 )      (8,881 )      —         —    

Withdrawals

      (3,528 )      (1 )      18       155       (5 )      —    

Annual contract fee

      (9,461 )      (11,979 )      (10,924 )      (10,018 )      (165 )      (107 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (26,975 )      (4,387 )      16,307       14,253       (33,295 )      41,761  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      3,693       3,370       28,759       16,510       (35,548 )      40,270  

Net assets at beginning of period

      295,872       292,502       110,970       94,460       40,270       —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 299,565     $ 295,872     $ 139,729     $ 110,970     $ 4,722     $ 40,270  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      16,934       17,175       5,345       4,670       1,749       —    

Units issued

      307       469       1,437       1,566       125       2,135  

Units redeemed

      (1,734 )      (710 )      (699 )      (891 )      (1,680 )      (386 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      15,507       16,934       6,083       5,345       194       1,749  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

24

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Alpha Opportunities
Trust Series NAV		     American Asset Allocation
Trust Series I		     American Global Growth
Trust Series I		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 2,692     $ 967     $ 38,556     $ 49,142     $ 2,491     $ 3,303  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      2,692       967       38,556       49,142       2,491       3,303  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      17,077       24,999       337,025       180,653       32,125       10,746  

Net realized gain (loss)

      (8,225 )      (4,708 )      24,880       39,972       (161 )      4,715  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      8,852       20,291       361,905       220,625       31,964       15,461  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      (3,670 )      (21,254 )      (172,018 )      (244,480 )      (30,872 )      (9,565 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      7,874       4       228,443       25,287       3,583       9,199  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      18,204       11,518       319,165       274,307       23,712       17,782  

Transfers between sub-accounts and the company

      9,457       5,301       419,958       79,202       53,433       61,124  

Transfers on general account policy loans

      (324 )      —         (3,959 )      (3,892 )      —         —    

Withdrawals

      (184 )      (41 )      (2,911 )      (8,316 )      (1,720 )      6  

Annual contract fee

      (8,731 )      (7,214 )      (179,303 )      (141,660 )      (17,672 )      (13,684 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      18,422       9,564       552,950       199,641       57,753       65,228  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      26,296       9,568       781,393       224,928       61,336       74,427  

Net assets at beginning of period

      133,255       123,687       2,325,872       2,100,944       205,200       130,773  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 159,551     $ 133,255     $ 3,107,265     $ 2,325,872     $ 266,536     $ 205,200  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      5,469       5,074       151,239       138,059       13,107       8,908  

Units issued

      1,743       1,392       43,789       22,137       4,825       5,658  

Units redeemed

      (1,020 )      (997 )      (9,650 )      (8,957 )      (955 )      (1,459 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      6,192       5,469       185,378       151,239       16,977       13,107  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

25

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     American Growth
Trust Series I		     American Growth-Income
Trust Series I		     American International
Trust Series I		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 10,117     $ 6,036     $ 37,520     $ 33,223     $ 16,141     $ 18,774  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      10,117       6,036       37,520       33,223       16,141       18,774  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      754,781       124,572       555,150       268,751       (27 )      —    

Net realized gain (loss)

      90,330       106,579       92,390       347,694       39,581       30,578  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      845,111       231,151       647,540       616,445       39,554       30,578  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      (629,660 )      (88,770 )      (429,073 )      (587,637 )      2,122       (106,853 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      225,568       148,417       255,987       62,031       57,817       (57,501 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      184,540       185,299       205,077       168,971       122,344       97,720  

Transfers between sub-accounts and the company

      57,949       (4,952 )      (228,266 )      (629,698 )      (27,061 )      311,643  

Transfers on general account policy loans

      (8,804 )      (27,088 )      (23,018 )      (50,325 )      (1,596 )      (14,274 ) 

Withdrawals

      (69,975 )      (42,690 )      (86,104 )      (12,011 )      (38,168 )      (21,681 ) 

Annual contract fee

      (127,685 )      (129,351 )      (135,166 )      (136,213 )      (58,559 )      (48,676 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      36,025       (18,782 )      (267,477 )      (659,276 )      (3,040 )      324,732  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      261,593       129,635       (11,490 )      (597,245 )      54,777       267,231  

Net assets at beginning of period

      2,410,555       2,280,920       2,405,144       3,002,389       1,548,034       1,280,803  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 2,672,148     $ 2,410,555     $ 2,393,654     $ 2,405,144     $ 1,602,811     $ 1,548,034  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      100,122       100,699       107,187       138,267       80,382       62,089  

Units issued

      14,216       8,899       13,946       12,467       13,560       25,141  

Units redeemed

      (12,827 )      (9,476 )      (26,521 )      (43,547 )      (11,333 )      (6,848 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      101,511       100,122       94,612       107,187       82,609       80,382  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

26

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     American New World
Trust Series I		     Blue Chip Growth
Trust Series I		     Blue Chip Growth
Trust Series NAV		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 1,513     $ 6,106     $ 89     $ —       $ 4,070     $ —    

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      1,513       6,106       89       —         4,070       —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      16,894       39,482       124,597       200,413       1,269,111       1,170,424  

Net realized gain (loss)

      (17,568 )      (666 )      155,033       100,365       320,220       161,087  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      (674 )      38,816       279,630       300,778       1,589,331       1,331,511  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      22,169       (58,731 )      (295,080 )      (185,138 )      (1,457,660 )      (868,872 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      23,008       (13,809 )      (15,361 )      115,640       135,741       462,639  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      31,919       36,633       36,769       52,241       1,121,685       273,105  

Transfers between sub-accounts and the company

      (8,319 )      14,777       (289,865 )      76,534       (584,780 )      2,906,439  

Transfers on general account policy loans

      322       (2,443 )      (912 )      6,857       1,194       (45,744 ) 

Withdrawals

      (6,739 )      (1,969 )      (90,792 )      (112,917 )      (159,857 )      (10,299 ) 

Annual contract fee

      (17,758 )      (16,035 )      (57,488 )      (64,769 )      (276,855 )      (224,571 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (575 )      30,963       (402,288 )      (42,054 )      101,387       2,898,930  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      22,433       17,154       (417,649 )      73,586       237,128       3,361,569  

Net assets at beginning of period

      368,279       351,125       1,140,114       1,066,528       6,937,952       3,576,383  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 390,712     $ 368,279     $ 722,465     $ 1,140,114     $ 7,175,080     $ 6,937,952  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      23,811       21,872       43,080       44,757       51,058       29,248  

Units issued

      5,042       4,459       1,559       4,499       11,707       24,841  

Units redeemed

      (4,777 )      (2,520 )      (17,563 )      (6,176 )      (10,408 )      (3,031 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      24,076       23,811       27,076       43,080       52,357       51,058  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

27

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Bond Trust Series I     Bond Trust Series NAV     Capital Appreciation
Trust Series I		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 1,244     $ —       $ 33,763     $ 7,601     $ —       $ —    

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      1,244       —         33,763       7,601       —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      —         —         (37 )      —         53,611       56,428  

Net realized gain (loss)

      1,954       (16 )      (417 )      4,812       2,468       34,047  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      1,954       (16 )      (454 )      4,812       56,079       90,475  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      (848 )      123       (26,335 )      (9,463 )      (59,069 )      (50,228 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      2,350       107       6,974       2,950       (2,990 )      40,247  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      4,361       1,850       64,309       28,783       20,608       26,020  

Transfers between sub-accounts and the company

      18,093       (25,431 )      871,639       (215,110 )      1,044       (45,222 ) 

Transfers on general account policy loans

      —         —         245       (81 )      198       159  

Withdrawals

      (2,685 )      —         (12,244 )      (295 )      (3,713 )      (18,658 ) 

Annual contract fee

      (1,371 )      (185 )      (49,133 )      (14,121 )      (20,978 )      (22,670 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      18,398       (23,766 )      874,816       (200,824 )      (2,841 )      (60,371 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      20,748       (23,659 )      881,790       (197,874 )      (5,831 )      (20,124 ) 

Net assets at beginning of period

      —         23,659       254,990       452,864       329,157       349,281  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 20,748     $ —       $ 1,136,780     $ 254,990     $ 323,326     $ 329,157  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      —         2,121       22,765       40,550       11,920       14,098  

Units issued

      19,973       164       81,828       3,706       636       1,494  

Units redeemed

      (18,173 )      (2,285 )      (6,250 )      (21,491 )      (719 )      (3,672 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      1,800       —         98,343       22,765       11,837       11,920  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

28

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Capital Appreciation
Trust Series NAV		     Capital Appreciation Value
Trust Series I		     Capital Appreciation Value
Trust Series NAV		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 303     $ 1,011     $ 7     $ 6     $ 38,964     $ 22,408  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      303       1,011       7       6       38,964       22,408  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      527,611       708,732       49       68       252,366       249,090  

Net realized gain (loss)

      82,221       260,050       (3 )      —         (14,740 )      3,390  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      609,832       968,782       46       68       237,626       252,480  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      (682,793 )      (454,353 )      (15 )      (48 )      (105,593 )      (189,187 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (72,658 )      515,440       38       26       170,997       85,701  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      93,322       80,986       —         —         265,738       242,658  

Transfers between sub-accounts and the company

      53,273       (91,500 )      —         —         904,414       162,848  

Transfers on general account policy loans

      925       (2,712 )      —         —         (162,676 )      (9,425 ) 

Withdrawals

      (824,427 )      (636,244 )      —         —         (392 )      (12,327 ) 

Annual contract fee

      (107,930 )      (107,890 )      (28 )      (45 )      (140,510 )      (102,883 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (784,837 )      (757,360 )      (28 )      (45 )      866,574       280,871  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (857,495 )      (241,920 )      10       (19 )      1,037,571       366,572  

Net assets at beginning of period

      4,175,137       4,417,057       491       510       1,928,472       1,561,900  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 3,317,642     $ 4,175,137     $ 501     $ 491     $ 2,966,043     $ 1,928,472  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      153,988       181,609       27       29       104,469       89,066  

Units issued

      56,180       3,272       —         —         57,516       20,540  

Units redeemed

      (86,578 )      (30,893 )      (2 )      (2 )      (13,471 )      (5,137 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      123,590       153,988       25       27       148,514       104,469  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

29

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Core Bond Trust Series I     Core Bond Trust Series NAV     Core Strategy Trust Series NAV  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 13,355     $ 13,595     $ 48,484     $ 36,091     $ 163,954     $ 167,119  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      13,355       13,595       48,484       36,091       163,954       167,119  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      362       1,802       1,275       4,641       318,527       238,129  

Net realized gain (loss)

      (1,367 )      6,732       1,280       (8,605 )      31,648       59,368  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      (1,005 )      8,534       2,555       (3,964 )      350,175       297,497  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      10,035       (33,789 )      6,844       (56,738 )      10,918       (479,422 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      22,385       (11,660 )      57,883       (24,611 )      525,047       (14,806 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      29,609       15,815       269,402       196,056       695,675       766,431  

Transfers between sub-accounts and the company

      (101,412 )      709,243       112,578       1,618,096       267,778       322,586  

Transfers on general account policy loans

      (813 )      (670 )      26,899       (40,786 )      (49,550 )      7,607  

Withdrawals

      (43,870 )      (36,136 )      (68,960 )      (5,705 )      (36,063 )      (140,559 ) 

Annual contract fee

      (43,558 )      (29,699 )      (136,200 )      (85,135 )      (499,048 )      (464,205 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (160,044 )      658,553       203,719       1,682,526       378,792       491,860  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (137,659 )      646,893       261,602       1,657,915       903,839       477,054  

Net assets at beginning of period

      788,212       141,319       2,095,406       437,491       7,097,009       6,619,955  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 650,553     $ 788,212     $ 2,357,008     $ 2,095,406     $ 8,000,848     $ 7,097,009  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      38,807       6,979       128,405       26,904       481,965       449,310  

Units issued

      2,319       36,219       38,735       113,771       50,874       67,048  

Units redeemed

      (9,951 )      (4,391 )      (26,535 )      (12,270 )      (25,788 )      (34,393 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      31,175       38,807       140,605       128,405       507,051       481,965  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

30

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Emerging Markets Value
Trust Series I		     Emerging Markets Value
Trust Series NAV		     Equity Income
Trust Series I		  
     2016     2015     2016     2015     2016 (b)     2015  

Income:

             

Dividend distributions received

    $ 1,195     $ 458     $ 26,366     $ 26,420     $ 10,639     $ 10,669  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      1,195       458       26,366       26,420       10,639       10,669  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      —         —         —         —         42,009       49,586  

Net realized gain (loss)

      (5,203 )      (363 )      5,248       (607,698 )      22,449       28,768  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      (5,203 )      (363 )      5,248       (607,698 )      64,458       78,354  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      8,879       (6,702 )      190,081       423,612       9,743       (126,439 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      4,871       (6,607 )      221,695       (157,666 )      84,840       (37,416 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      2,957       —         81,802       82,499       37,779       37,515  

Transfers between sub-accounts and the company

      (1,625 )      45,376       (242,010 )      (1,516,194 )      (35,863 )      (16,561 ) 

Transfers on general account policy loans

      —         —         (7,356 )      (18,139 )      (4,724 )      799  

Withdrawals

      19       (228 )      (14,249 )      (146,160 )      (25,662 )      (47,057 ) 

Annual contract fee

      (667 )      (586 )      (60,010 )      (67,994 )      (55,095 )      (49,973 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      684       44,562       (241,823 )      (1,665,988 )      (83,565 )      (75,277 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      5,555       37,955       (20,128 )      (1,823,654 )      1,275       (112,693 ) 

Net assets at beginning of period

      43,449       5,494       766,412       2,590,066       517,201       629,894  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 49,004     $ 43,449     $ 746,284     $ 766,412     $ 518,476     $ 517,201  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      3,807       390       83,589       228,695       19,982       22,695  

Units issued

      9,947       3,486       95,300       21,894       3,899       2,542  

Units redeemed

      (10,116 )      (69 )      (109,960 )      (167,000 )      (7,065 )      (5,255 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      3,638       3,807       68,929       83,589       16,816       19,982  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(b)

Renamed on May 2, 2016. Previously known as Equity-Income Trust Series I.

 

See accompanying notes.

 

31

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Equity Income
Trust Series NAV		     Financial Industries
Trust Series I		     Financial Industries
Trust Series NAV		  
     2016 (c)     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 110,270     $ 95,375     $ 1,375     $ 1,665     $ 7,073     $ 5,352  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      110,270       95,375       1,375       1,665       7,073       5,352  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      457,478       426,663       —         53,533       —         150,035  

Net realized gain (loss)

      5,680       649,549       (13,676 )      (1,167 )      (9,861 )      11,892  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      463,158       1,076,212       (13,676 )      52,366       (9,861 )      161,927  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      282,135       (1,462,004 )      29,930       (58,252 )      90,981       (179,260 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      855,563       (290,417 )      17,629       (4,221 )      88,193       (11,981 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      275,911       262,617       3,498       5,218       43,011       43,996  

Transfers between sub-accounts and the company

      (102,347 )      (1,628,733 )      (60,407 )      12,561       (7,381 )      17,119  

Transfers on general account policy loans

      (20,616 )      (19,677 )      21       1       (759 )      (2,311 ) 

Withdrawals

      (133,491 )      (287,924 )      (3,306 )      39       (42,791 )      (4,072 ) 

Annual contract fee

      (191,182 )      (196,223 )      (3,601 )      (4,645 )      (31,879 )      (39,490 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (171,725 )      (1,869,940 )      (63,795 )      13,174       (39,799 )      15,242  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      683,838       (2,160,357 )      (46,166 )      8,953       48,394       3,261  

Net assets at beginning of period

      4,554,996       6,715,353       150,249       141,296       491,232       487,971  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 5,238,834     $ 4,554,996     $ 104,083     $ 150,249     $ 539,626     $ 491,232  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      106,447       146,478       6,525       5,974       17,715       17,143  

Units issued

      12,400       24,155       2,790       2,256       1,530       2,016  

Units redeemed

      (16,124 )      (64,186 )      (5,528 )      (1,705 )      (2,956 )      (1,444 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      102,723       106,447       3,787       6,525       16,289       17,715  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(c)

Renamed on May 2, 2016. Previously known as Equity-Income Trust Series NAV.

 

See accompanying notes.

 

32

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Franklin Templeton
Founding Allocation
Trust Series I		     Franklin Templeton
Founding Allocation
Trust Series NAV		     Fundamental
All Cap Core
Trust Series I		  
     2016 (d)     2015     2016 (e)     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 23     $ 41     $ 69,508     $ 81,908     $ 27     $ —    

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      23       41       69,508       81,908       27       —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      59       —         172,833       —         628       177  

Net realized gain (loss)

      (130 )      (2 )      7,404       19,631       (266 )      7,077  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      (71 )      (2 )      180,237       19,631       362       7,254  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      138       (126 )      (11,618 )      (260,200 )      32       (4,121 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      90       (87 )      238,127       (158,661 )      421       3,133  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      —         —         369,814       369,775       2,138       2,149  

Transfers between sub-accounts and the company

      (1,123 )      35       (3,215,454 )      238,225       (1 )      (37,904 ) 

Transfers on general account policy loans

      —         —         (385 )      (5,783 )      (4,685 )      (26 ) 

Withdrawals

      —         —         (661 )      (6,229 )      (7 )      7  

Annual contract fee

      (370 )      (421 )      (134,649 )      (143,990 )      (1,309 )      (1,876 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (1,493 )      (386 )      (2,981,335 )      451,998       (3,864 )      (37,650 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (1,403 )      (473 )      (2,743,208 )      293,337       (3,443 )      (34,517 ) 

Net assets at beginning of period

      1,403       1,876       2,743,208       2,449,871       4,070       38,587  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ —       $ 1,403     $ —       $ 2,743,208     $ 627     $ 4,070  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      103       129       200,088       168,405       107       1,058  

Units issued

      —         1       28,938       41,002       57       57  

Units redeemed

      (103 )      (27 )      (229,026 )      (9,319 )      (149 )      (1,008 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      —         103       —         200,088       15       107  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(d)

Terminated as an investment option and funds transferred to Lifestyle Growth Trust PS Series I on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

(e)

Terminated as an investment option and funds transferred to Lifestyle Growth Trust PS Series NAV on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

See accompanying notes.

 

33

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Fundamental All Cap
Core Trust Series NAV		     Fundamental Large Cap
Value Trust Series I		     Fundamental Large Cap
Value Trust Series NAV		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 3,884     $ —       $ 16,363     $ 8,807     $ 50,369     $ 26,140  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      3,884       —         16,363       8,807       50,369       26,140  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      78,684       15,961       —         —         —         —    

Net realized gain (loss)

      11,972       24,829       (4,941 )      17,528       58,089       60,152  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      90,656       40,790       (4,941 )      17,528       58,089       60,152  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      (31,901 )      (23,793 )      71,292       (37,972 )      117,429       (104,810 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      62,639       16,997       82,714       (11,637 )      225,887       (18,518 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      48,076       55,444       48,297       49,088       277,869       237,676  

Transfers between sub-accounts and the company

      149,849       39,405       (52,903 )      (19,775 )      (149,100 )      284,671  

Transfers on general account policy loans

      (4,827 )      (4,814 )      (12,625 )      (2,410 )      675       (3,154 ) 

Withdrawals

      (11,824 )      (14,964 )      (49,938 )      (57,275 )      (52,483 )      (292,765 ) 

Annual contract fee

      (34,506 )      (30,220 )      (51,578 )      (57,400 )      (114,985 )      (126,029 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      146,768       44,851       (118,747 )      (87,772 )      (38,024 )      100,399  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      209,407       61,848       (36,033 )      (99,409 )      187,863       81,881  

Net assets at beginning of period

      414,050       352,202       800,782       900,191       2,186,927       2,105,046  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 623,457     $ 414,050     $ 764,749     $ 800,782     $ 2,374,790     $ 2,186,927  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      18,366       16,262       28,553       31,741       110,716       105,440  

Units issued

      8,913       5,411       6,038       3,819       28,896       38,877  

Units redeemed

      (1,767 )      (3,307 )      (9,840 )      (7,007 )      (30,534 )      (33,601 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      25,512       18,366       24,751       28,553       109,078       110,716  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

34

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Global Bond Trust Series I     Global Bond Trust Series NAV     Global Trust Series I  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ —       $ 5,258     $ —       $ 27,140     $ 4,709     $ 3,881  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      —         5,258       —         27,140       4,709       3,881  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      —         —         6       —         —         —    

Net realized gain (loss)

      1,790       1,434       (459 )      (7,022 )      (4,078 )      9,922  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      1,790       1,434       (453 )      (7,022 )      (4,078 )      9,922  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      3,583       (13,527 )      28,235       (54,777 )      3,083       (26,831 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      5,373       (6,835 )      27,782       (34,659 )      3,714       (13,028 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      4,755       7,829       84,003       89,832       2,779       9,684  

Transfers between sub-accounts and the company

      24,078       36,038       (33,357 )      (61,047 )      (71,222 )      (7,431 ) 

Transfers on general account policy loans

      (6,196 )      —         (913 )      (4,307 )      (8,871 )      (4,229 ) 

Withdrawals

      96       (5,262 )      (10,746 )      (5,271 )      (1,788 )      (7,114 ) 

Annual contract fee

      (5,119 )      (5,184 )      (60,113 )      (59,123 )      (5,105 )      (9,663 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      17,614       33,421       (21,126 )      (39,916 )      (84,207 )      (18,753 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      22,987       26,586       6,656       (74,575 )      (80,493 )      (31,781 ) 

Net assets at beginning of period

      206,605       180,019       945,980       1,020,555       184,046       215,827  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 229,592     $ 206,605     $ 952,636     $ 945,980     $ 103,553     $ 184,046  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      9,930       8,349       31,823       33,128       10,409       11,423  

Units issued

      1,305       2,085       3,855       4,294       169       571  

Units redeemed

      (527 )      (504 )      (4,609 )      (5,599 )      (5,228 )      (1,585 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      10,708       9,930       31,069       31,823       5,350       10,409  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

35

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Global Trust Series NAV     Health Sciences Trust
Series I		     Health Sciences Trust
Series NAV		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 50,812     $ 23,097     $ 218     $ —       $ 2,333     $ —    

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      50,812       23,097       218       —         2,333       —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      4       1       78,447       57,614       525,151       352,006  

Net realized gain (loss)

      (11,742 )      2,327       21,752       77,657       12,660       80,659  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      (11,738 )      2,328       100,199       135,271       537,811       432,665  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      63,351       (102,993 )      (135,251 )      (86,335 )      (787,603 )      (350,893 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      102,425       (77,568 )      (34,834 )      48,936       (247,459 )      81,772  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      142,733       153,988       4,057       8,697       185,766       160,649  

Transfers between sub-accounts and the company

      (8,749 )      (50,050 )      29,019       (16,431 )      5,163       1,471,685  

Transfers on general account policy loans

      (7,649 )      (10,716 )      (1,792 )      1,013       1,790       (3,504 ) 

Withdrawals

      (43,711 )      (14,544 )      41       (27,700 )      (41,090 )      (134,934 ) 

Annual contract fee

      (89,537 )      (93,132 )      (12,865 )      (17,362 )      (143,533 )      (121,399 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (6,913 )      (14,454 )      18,460       (51,783 )      8,096       1,372,497  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      95,512       (92,022 )      (16,374 )      (2,847 )      (239,363 )      1,454,269  

Net assets at beginning of period

      1,072,556       1,164,578       346,220       349,067       2,419,493       965,224  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 1,168,068     $ 1,072,556     $ 329,846     $ 346,220     $ 2,180,130     $ 2,419,493  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      66,346       67,475       4,449       5,055       39,876       17,937  

Units issued

      7,223       11,185       1,290       895       6,337       26,779  

Units redeemed

      (7,563 )      (12,314 )      (999 )      (1,501 )      (6,049 )      (4,840 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      66,006       66,346       4,740       4,449       40,164       39,876  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

36

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     High Yield
Trust Series I		     High Yield
Trust Series NAV		     International Core
Trust Series I		  
     2016     2015     2016     2015     2016 (f)     2015  

Income:

             

Dividend distributions received

    $ 20,699     $ 21,825     $ 198,948     $ 127,870     $ 24,398     $ 4,727  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      20,699       21,825       198,948       127,870       24,398       4,727  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      —         —         5       —         —         —    

Net realized gain (loss)

      (19,669 )      (19,563 )      106,361       (33,378 )      (40,688 )      4,930  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      (19,669 )      (19,563 )      106,366       (33,378 )      (40,688 )      4,930  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      42,165       (27,478 )      128,449       (217,178 )      17,123       (21,626 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      43,195       (25,216 )      433,763       (122,686 )      833       (11,969 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      9,268       10,661       216,209       128,446       8,098       9,221  

Transfers between sub-accounts and the company

      (15,204 )      5,566       906,543       (48,611 )      (146,621 )      37,208  

Transfers on general account policy loans

      (255 )      —         (20,144 )      (5,765 )      807       (1,804 ) 

Withdrawals

      47       (6,663 )      (2,000 )      (4,747 )      (7,246 )      (8,242 ) 

Annual contract fee

      (8,729 )      (8,388 )      (76,561 )      (75,047 )      (4,169 )      (4,890 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (14,873 )      1,176       1,024,047       (5,724 )      (149,131 )      31,493  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      28,322       (24,040 )      1,457,810       (128,410 )      (148,298 )      19,524  

Net assets at beginning of period

      285,088       309,128       1,523,913       1,652,323       148,298       128,774  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 313,410     $ 285,088     $ 2,981,723     $ 1,523,913     $ —       $ 148,298  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      13,922       13,840       78,728       78,211       10,369       8,513  

Units issued

      2,757       2,674       355,058       110,896       561       2,790  

Units redeemed

      (3,515 )      (2,592 )      (301,651 )      (110,379 )      (10,930 )      (934 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      13,164       13,922       132,135       78,728       —         10,369  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(f)

Terminated as an investment option and funds transferred to International Value Trust Series I on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

See accompanying notes.

 

37

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     International Core
Trust Series NAV		     International Equity Index
Trust B Series I		     International Equity Index
Trust B Series NAV		  
     2016 (g)     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 225,099     $ 38,725     $ 5,815     $ 5,509     $ 161,858     $ 157,668  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      225,099       38,725       5,815       5,509       161,858       157,668  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      1       —         —         —         (25 )      —    

Net realized gain (loss)

      (353,450 )      (14,931 )      (2,393 )      2,738       (2,247 )      (15,179 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      (353,449 )      (14,931 )      (2,393 )      2,738       (2,272 )      (15,179 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      139,967       (115,843 )      4,170       (21,225 )      124,790       (792,838 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      11,617       (92,049 )      7,592       (12,978 )      284,376       (650,349 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      110,439       95,893       6,059       10,058       189,460       162,236  

Transfers between sub-accounts and the company

      (1,278,465 )      518,774       1,849       (12,628 )      (231,539 )      3,715,113  

Transfers on general account policy loans

      1,143       (1,932 )      (10,466 )      (45 )      11,466       (132,313 ) 

Withdrawals

      (741 )      (55 )      111       (880 )      (112,230 )      (617,992 ) 

Annual contract fee

      (36,361 )      (40,510 )      (4,709 )      (6,197 )      (215,011 )      (186,892 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (1,203,985 )      572,170       (7,156 )      (9,692 )      (357,854 )      2,940,152  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (1,192,368 )      480,121       436       (22,670 )      (73,478 )      2,289,803  

Net assets at beginning of period

      1,192,368       712,247       216,820       239,490       6,098,770       3,808,967  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ —       $ 1,192,368     $ 217,256     $ 216,820     $ 6,025,292     $ 6,098,770  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      78,392       44,335       19,894       20,674       142,560       83,868  

Units issued

      15,382       45,006       3,573       1,551       14,500       86,505  

Units redeemed

      (93,774 )      (10,949 )      (4,382 )      (2,331 )      (22,194 )      (27,813 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      —         78,392       19,085       19,894       134,866       142,560  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(g)

Terminated as an investment option and funds transferred to International Value Trust Series NAV on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

See accompanying notes.

 

38

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     International Growth Stock
Trust Series I		     International Growth Stock
Trust Series NAV		     International Small Company
Trust Series I		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 2,717     $ 2,775     $ 12,551     $ 9,066     $ 710     $ 704  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      2,717       2,775       12,551       9,066       710       704  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      —         —         4       —         —         —    

Net realized gain (loss)

      1,380       529       3,535       7,520       388       1,701  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      1,380       529       3,539       7,520       388       1,701  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      (6,465 )      (6,949 )      (23,572 )      (29,320 )      444       (10 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (2,368 )      (3,645 )      (7,482 )      (12,734 )      1,542       2,395  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      5,215       6,730       53,009       59,399       2,084       3,459  

Transfers between sub-accounts and the company

      173       964       249,094       8,856       45,751       (6,153 ) 

Transfers on general account policy loans

      (13,730 )      (12 )      (5,566 )      (2,356 )      (401 )      (219 ) 

Withdrawals

      112       9       (10,062 )      (1,019 )      2       2  

Annual contract fee

      (2,526 )      (3,328 )      (26,227 )      (22,134 )      (1,755 )      (1,860 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (10,756 )      4,363       260,248       42,746       45,681       (4,771 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (13,124 )      718       252,766       30,012       47,223       (2,376 ) 

Net assets at beginning of period

      155,936       155,218       493,073       463,061       35,173       37,549  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 142,812     $ 155,936     $ 745,839     $ 493,073     $ 82,396     $ 35,173  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      12,846       12,497       40,566       37,245       2,331       2,651  

Units issued

      433       587       24,615       7,117       2,962       114  

Units redeemed

      (1,358 )      (238 )      (3,076 )      (3,796 )      (89 )      (434 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      11,921       12,846       62,105       40,566       5,204       2,331  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

39

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     International Small Company
Trust Series NAV		     International Value
Trust Series I		     International Value
Trust Series NAV		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 21,013     $ 13,958     $ 6,334     $ 4,456     $ 31,595     $ 12,358  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      21,013       13,958       6,334       4,456       31,595       12,358  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      (2 )      —         —         —         (6 )      —    

Net realized gain (loss)

      5,704       19,794       3,042       9,042       (12,550 )      (53,457 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      5,702       19,794       3,042       9,042       (12,556 )      (53,457 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      23,084       17,193       19,596       (28,656 )      63,393       (4,862 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      49,799       50,945       28,972       (15,158 )      82,432       (45,961 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      88,943       64,430       8,565       14,020       58,945       66,034  

Transfers between sub-accounts and the company

      33,255       264,717       113,674       (13,413 )      923,502       (272,640 ) 

Transfers on general account policy loans

      (1,458 )      (2,382 )      (670 )      135       (100 )      (866 ) 

Withdrawals

      (13,796 )      (2,531 )      (39,626 )      (15,201 )      (6,371 )      (10,795 ) 

Annual contract fee

      (41,250 )      (30,361 )      (7,501 )      (9,005 )      (37,803 )      (37,302 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      65,694       293,873       74,442       (23,464 )      938,173       (255,569 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      115,493       344,818       103,414       (38,622 )      1,020,605       (301,530 ) 

Net assets at beginning of period

      985,007       640,189       214,585       253,207       575,877       877,407  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 1,100,500     $ 985,007     $ 317,999     $ 214,585     $ 1,596,482     $ 575,877  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      65,075       45,118       9,720       10,573       40,415       56,823  

Units issued

      8,697       30,683       5,121       2,100       79,399       17,048  

Units redeemed

      (4,499 )      (10,726 )      (2,008 )      (2,953 )      (19,961 )      (33,456 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      69,273       65,075       12,833       9,720       99,853       40,415  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

40

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Investment Quality Bond
Trust Series I		     Investment Quality Bond
Trust Series NAV		     Lifestyle Aggressive
MVP Series I		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 6,801     $ 4,522     $ 11,673     $ 5,405     $ 7,485     $ 8,889  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      6,801       4,522       11,673       5,405       7,485       8,889  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      1,834       10,313       2,940       14,241       3,794       —    

Net realized gain (loss)

      (303 )      4,807       (1,686 )      (9,161 )      3,014       98,337  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      1,531       15,120       1,254       5,080       6,808       98,337  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      1,983       (21,338 )      3,033       (11,632 )      (5,173 )      (143,587 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      10,315       (1,696 )      15,960       (1,147 )      9,120       (36,361 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      11,659       11,542       69,283       33,120       40,385       58,267  

Transfers between sub-accounts and the company

      55,822       5,411       208,390       (68,589 )      —         —    

Transfers on general account policy loans

      511       592       (1,605 )      (3,045 )      17       3,229  

Withdrawals

      11       (59,652 )      (1,720 )      (4,229 )      24       (239,611 ) 

Annual contract fee

      (7,316 )      (6,306 )      (22,180 )      (18,876 )      (17,157 )      (17,821 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      60,687       (48,413 )      252,168       (61,619 )      23,269       (195,936 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      71,002       (50,109 )      268,128       (62,766 )      32,389       (232,297 ) 

Net assets at beginning of period

      235,643       285,752       253,246       316,012       421,227       653,524  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 306,645     $ 235,643     $ 521,374     $ 253,246     $ 453,616     $ 421,227  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      10,299       12,387       15,952       19,771       21,905       31,997  

Units issued

      2,884       755       17,051       5,636       1,865       2,604  

Units redeemed

      (332 )      (2,843 )      (1,500 )      (9,455 )      (633 )      (12,696 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      12,851       10,299       31,503       15,952       23,137       21,905  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

41

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Lifestyle Aggressive MVP
Series NAV		     Lifestyle Aggressive
Trust PS Series NAV		     Lifestyle Balanced MVP
Series I		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 212,657     $ 255,482     $ 2,708     $ 11     $ 103,426     $ 124,328  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      212,657       255,482       2,708       11       103,426       124,328  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      108,231       —         23       —         204,227       364,801  

Net realized gain (loss)

      139,157       136,473       20       —         (5,293 )      11,883  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      247,388       136,473       43       —         198,934       376,684  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      (217,533 )      (1,094,458 )      2,605       (20 )      (72,499 )      (612,676 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      242,512       (702,503 )      5,356       (9 )      229,861       (111,664 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      1,453,897       1,782,276       533       153       33,221       36,178  

Transfers between sub-accounts and the company

      (266,127 )      761,341       155,425       —         (893 )      (581 ) 

Transfers on general account policy loans

      19,507       (161,027 )      —         —         3,030       (3,026 ) 

Withdrawals

      (112,754 )      (51,082 )      —         —         65       (1,656 ) 

Annual contract fee

      (625,830 )      (588,759 )      (1,142 )      (102 )      (223,927 )      (169,010 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      468,693       1,742,749       154,816       51       (188,504 )      (138,095 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      711,205       1,040,246       160,172       42       41,357       (249,759 ) 

Net assets at beginning of period

      11,834,302       10,794,056       555       513       4,906,790       5,156,549  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 12,545,507     $ 11,834,302     $ 160,727     $ 555     $ 4,948,147     $ 4,906,790  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      672,648       577,996       52       48       214,521       220,369  

Units issued

      108,394       135,850       13,834       8       1,471       1,243  

Units redeemed

      (81,250 )      (41,198 )      (93 )      (4 )      (9,554 )      (7,091 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      699,792       672,648       13,793       52       206,438       214,521  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

42

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Lifestyle Balanced MVP
Series NAV		     Lifestyle Balanced Trust PS
Series NAV		     Lifestyle Conservative MVP
Series I		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 758,939     $ 859,067     $ 26,455     $ 15,152     $ 1,553     $ 3,581  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      758,939       859,067       26,455       15,152       1,553       3,581  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      1,439,540       2,374,382       20,319       9,654       1,440       7,411  

Net realized gain (loss)

      161,947       467,000       (1,639 )      (29 )      (4,696 )      906  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      1,601,487       2,841,382       18,680       9,625       (3,256 )      8,317  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      (726,244 )      (4,472,161 )      111       (30,518 )      4,453       (11,580 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      1,634,182       (771,712 )      45,246       (5,741 )      2,750       318  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      3,071,917       3,077,500       121,635       96,448       —         4,688  

Transfers between sub-accounts and the company

      453,326       3,085,727       462,170       267,935       (69,904 )      (520 ) 

Transfers on general account policy loans

      (59,637 )      (329,660 )      60,747       —         —         445  

Withdrawals

      (406,932 )      (597,413 )      (63,102 )      (473 )      (221 )      (18,159 ) 

Annual contract fee

      (2,439,804 )      (2,237,679 )      (78,283 )      (51,514 )      (3,179 )      (5,318 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      618,870       2,998,475       503,167       312,396       (73,304 )      (18,864 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      2,253,052       2,226,763       548,413       306,655       (70,554 )      (18,546 ) 

Net assets at beginning of period

      33,314,486       31,087,723       599,913       293,258       134,801       153,347  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 35,567,538     $ 33,314,486     $ 1,148,326     $ 599,913     $ 64,247     $ 134,801  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      1,938,907       1,769,503       55,915       27,361       5,838       6,644  

Units issued

      175,818       334,967       55,093       38,143       25       220  

Units redeemed

      (141,668 )      (165,563 )      (10,191 )      (9,589 )      (3,202 )      (1,026 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      1,973,057       1,938,907       100,817       55,915       2,661       5,838  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

43

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Lifestyle Conservative MVP
Series NAV		     Lifestyle Conservative
Trust PS Series NAV		     Lifestyle Growth MVP
Series I		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 78,419     $ 80,074     $ 2,442     $ 2,088     $ 37,536     $ 48,951  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      78,419       80,074       2,442       2,088       37,536       48,951  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      69,360       156,486       868       795       61,986       —    

Net realized gain (loss)

      (30,452 )      (20,920 )      (170 )      (94 )      (2,379 )      8,500  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      38,908       135,566       698       701       59,607       8,500  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      17,717       (209,194 )      71       (2,988 )      (28,637 )      (160,912 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      135,044       6,446       3,211       (199 )      68,506       (103,461 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      276,108       289,560       2,926       1,387       109,131       101,431  

Transfers between sub-accounts and the company

      74,886       112,237       11,315       20,571       1,216       663  

Transfers on general account policy loans

      21,594       (201,593 )      —         —         (177,259 )      —    

Withdrawals

      (18,485 )      (8,533 )      (1 )      (11 )      (44,009 )      (97,015 ) 

Annual contract fee

      (262,343 )      (239,553 )      (4,594 )      (3,766 )      (54,846 )      (64,626 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      91,760       (47,882 )      9,646       18,181       (165,767 )      (59,547 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      226,804       (41,436 )      12,857       17,982       (97,261 )      (163,008 ) 

Net assets at beginning of period

      2,959,531       3,000,967       74,656       56,674       2,115,620       2,278,628  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 3,186,335     $ 2,959,531     $ 87,513     $ 74,656     $ 2,018,359     $ 2,115,620  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      180,111       182,963       7,037       5,354       101,399       104,261  

Units issued

      27,138       31,471       1,266       2,028       4,335       3,196  

Units redeemed

      (21,740 )      (34,323 )      (399 )      (345 )      (12,121 )      (6,058 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      185,509       180,111       7,904       7,037       93,613       101,399  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

44

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Lifestyle Growth MVP
Series NAV		     Lifestyle Growth Trust PS
Series I		      Lifestyle Growth Trust PS
Series NAV		  
     2016     2015     2016(h)     2015      2016      2015  

Income:

               

Dividend distributions received

    $ 644,502     $ 746,018     $ 20     $ —        $ 91,490      $ 18,299  

Expenses:

               

Mortality and expense risk and administrative charges

      —         —         —         —          —          —    
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Net investment income (loss)

      644,502       746,018       20       —          91,490        18,299  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Realized gains (losses) on investments:

               

Capital gain distributions received

      938,793       —         —         —          27,058        10,186  

Net realized gain (loss)

      227,851       476,099       1       —          (2,462 )       (1,412 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Realized gains (losses)

      1,166,644       476,099       1       —          24,596        8,774  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Unrealized appreciation (depreciation) during the period

      (685,932 )      (2,717,769 )      —         —          16,208        (35,360 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets from operations

      1,125,214       (1,495,652 )      21       —          132,294        (8,287 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Changes from principal transactions:

               

Purchase payments

      3,645,446       3,419,894       —         —          162,144        58,518  

Transfers between sub-accounts and the company

      211,660       1,795,116       1,100       —          3,791,963        492,548  

Transfers on general account policy loans

      (39,405 )      (278,286 )      —         —          4        —    

Withdrawals

      (398,855 )      (1,208,978 )      —         —          (219 )       (746 ) 

Annual contract fee

      (2,321,667 )      (2,206,875 )      (77 )      —          (123,870 )       (53,682 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Net increase (decrease) in net assets from principal transactions

      1,097,179       1,520,871       1,023       —          3,830,022        496,638  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Total increase (decrease) in net assets

      2,222,393       25,219       1,044       —          3,962,316        488,351  

Net assets at beginning of period

      31,596,815       31,571,596       —         —          785,534        297,183  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Net assets at end of period

    $ 33,819,208     $ 31,596,815     $ 1,044     $ —        $ 4,747,850      $ 785,534  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  
     2016     2015     2016     2015      2016      2015  

Units, beginning of period

      1,836,989       1,752,044       —         —          72,693        27,502  

Units issued

      208,558       257,829       112       —          343,340        53,351  

Units redeemed

      (143,683 )      (172,884 )      (10 )      —          (6,226 )       (8,160 ) 
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

Units, end of period

      1,901,864       1,836,989       102       —          409,807        72,693  
  

 

 

    

 

 

    

 

 

    

 

 

     

 

 

     

 

 

  

 

(h)

Sub-account available in prior year but no activity.

 

See accompanying notes.

 

45

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Lifestyle Moderate MVP
Series I		     Lifestyle Moderate MVP
Series NAV		     Lifestyle Moderate Trust PS
Series NAV		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 17,399     $ 22,907     $ 183,050     $ 201,503     $ 17,064     $ 10,338  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      17,399       22,907       183,050       201,503       17,064       10,338  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      29,546       76,598       288,646       648,633       11,650       6,121  

Net realized gain (loss)

      (5,565 )      573       (33,713 )      13,627       (1,685 )      (432 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      23,981       77,171       254,933       662,260       9,965       5,689  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      3,656       (106,851 )      (37,081 )      (932,880 )      (928 )      (17,513 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      45,036       (6,773 )      400,902       (69,117 )      26,101       (1,486 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      3,259       5,284       922,785       1,178,490       47,951       38,716  

Transfers between sub-accounts and the company

      —         —         136,441       962,486       274,647       162,590  

Transfers on general account policy loans

      (60,008 )      (40,008 )      (7,126 )      (42,347 )      —         —    

Withdrawals

      (42,224 )      (6,002 )      (156,196 )      (20,718 )      (14 )      (43 ) 

Annual contract fee

      (15,900 )      (15,706 )      (553,084 )      (541,814 )      (39,834 )      (27,319 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (114,873 )      (56,432 )      342,820       1,536,097       282,750       173,944  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (69,837 )      (63,205 )      743,722       1,466,980       308,851       172,458  

Net assets at beginning of period

      880,170       943,375       7,592,273       6,125,293       399,046       226,588  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 810,333     $ 880,170     $ 8,335,995     $ 7,592,273     $ 707,897     $ 399,046  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      38,099       40,463       443,290       354,540       37,318       21,221  

Units issued

      53       91       57,317       122,689       28,116       17,870  

Units redeemed

      (4,839 )      (2,455 )      (38,179 )      (33,939 )      (2,713 )      (1,773 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      33,313       38,099       462,428       443,290       62,721       37,318  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

46

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     M Capital Appreciation     M International Equity     M Large Cap Growth  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ —       $ —       $ 6,113     $ 7,346     $ —       $ 139  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      —         —         6,113       7,346       —         139  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      14,663       34,560       —         —         40,371       91,372  

Net realized gain (loss)

      (10,176 )      (544 )      (6,274 )      (740 )      (14,499 )      4,981  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      4,487       34,016       (6,274 )      (740 )      25,872       96,353  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      64,964       (58,028 )      (1,132 )      (28,819 )      (33,242 )      (67,693 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      69,451       (24,012 )      (1,293 )      (22,213 )      (7,370 )      28,799  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      66,475       60,138       70,883       48,056       113,623       63,495  

Transfers between sub-accounts and the company

      (37,091 )      117,125       46,690       147,072       100,965       181,575  

Transfers on general account policy loans

      —         —         —         —         —         —    

Withdrawals

      (7,864 )      (106 )      (4,370 )      11       (12,351 )      (448 ) 

Annual contract fee

      (15,425 )      (12,892 )      (12,614 )      (10,288 )      (32,592 )      (24,323 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      6,095       164,265       100,589       184,851       169,645       220,299  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      75,546       140,253       99,296       162,638       162,275       249,098  

Net assets at beginning of period

      308,808       168,555       415,323       252,685       554,697       305,599  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 384,354     $ 308,808     $ 514,619     $ 415,323     $ 716,972     $ 554,697  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      3,886       1,981       13,083       7,646       10,258       6,087  

Units issued

      981       2,187       4,503       6,169       5,463       5,447  

Units redeemed

      (872 )      (282 )      (1,366 )      (732 )      (2,147 )      (1,276 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      3,995       3,886       16,220       13,083       13,574       10,258  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

47

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     M Large Cap Value     Mid Cap Index Trust
Series I		     Mid Cap Index Trust
Series NAV		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 10,686     $ 8,715     $ 4,060     $ 3,384     $ 36,004     $ 36,819  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      10,686       8,715       4,060       3,384       36,004       36,819  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      —         53,986       30,181       24,297       253,025       254,847  

Net realized gain (loss)

      (35,526 )      (2,611 )      18,631       22,969       61,034       98,836  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      (35,526 )      51,375       48,812       47,266       314,059       353,683  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      80,374       (68,563 )      6,417       (57,995 )      196,089       (461,008 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      55,534       (8,473 )      59,289       (7,345 )      546,152       (70,506 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      94,821       64,603       7,508       6,711       212,829       202,165  

Transfers between sub-accounts and the company

      (147,871 )      265,372       32,961       15,554       140,425       98,246  

Transfers on general account policy loans

      —         —         271       4,075       41,881       (143,479 ) 

Withdrawals

      (14,112 )      (24 )      (8,180 )      (18,223 )      (771,559 )      (289,112 ) 

Annual contract fee

      (18,583 )      (16,161 )      (10,462 )      (11,246 )      (159,308 )      (147,188 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (85,745 )      313,790       22,098       (3,129 )      (535,732 )      (279,368 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (30,211 )      305,317       81,387       (10,474 )      10,420       (349,874 ) 

Net assets at beginning of period

      628,166       322,849       288,521       298,995       3,173,722       3,523,596  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 597,955     $ 628,166     $ 369,908     $ 288,521     $ 3,184,142     $ 3,173,722  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      26,512       13,536       7,039       7,105       118,005       127,684  

Units issued

      6,194       14,431       1,570       1,739       23,579       22,790  

Units redeemed

      (9,688 )      (1,455 )      (1,096 )      (1,805 )      (43,064 )      (32,469 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      23,018       26,512       7,513       7,039       98,520       118,005  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

48

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Mid Cap Stock Trust
Series I		     Mid Cap Stock Trust
Series NAV		     Mid Value Trust
Series I		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ —       $ —       $ —       $ —       $ 2,445     $ 2,800  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      —         —         —         —         2,445       2,800  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      21,612       80,101       92,114       233,010       25,710       42,796  

Net realized gain (loss)

      23,681       22,345       726       15,181       154       30,081  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      45,293       102,446       92,840       248,191       25,864       72,877  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      (45,545 )      (87,606 )      (79,904 )      (218,523 )      20,706       (80,915 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      (252 )      14,840       12,936       29,668       49,015       (5,238 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      19,128       18,635       148,562       139,706       14,090       15,335  

Transfers between sub-accounts and the company

      (32,750 )      (37,732 )      (952 )      72,544       2,799       (5,622 ) 

Transfers on general account policy loans

      (945 )      854       (20,349 )      (2,649 )      (538 )      773  

Withdrawals

      (24,039 )      (58,489 )      (8,453 )      (1,353 )      101       (15,261 ) 

Annual contract fee

      (20,630 )      (27,970 )      (88,970 )      (80,964 )      (20,704 )      (18,875 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (59,236 )      (104,702 )      29,838       127,284       (4,252 )      (23,650 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (59,488 )      (89,862 )      42,774       156,952       44,763       (28,888 ) 

Net assets at beginning of period

      346,916       436,778       1,206,162       1,049,210       219,442       248,330  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 287,428     $ 346,916     $ 1,248,936     $ 1,206,162     $ 264,205     $ 219,442  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      9,946       12,897       15,878       14,232       8,746       9,557  

Units issued

      466       452       2,084       2,708       2,007       3,408  

Units redeemed

      (2,220 )      (3,403 )      (1,616 )      (1,062 )      (2,263 )      (4,219 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      8,192       9,946       16,346       15,878       8,490       8,746  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

49

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Mid Value Trust
Series NAV		     Money Market Trust B
Series NAV		     Money Market Trust
Series I		  
     2016     2015     2016 (i)     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 9,504     $ 8,063     $ 2,476     $ 93     $ 1,756     $ —    

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      9,504       8,063       2,476       93       1,756       —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      92,311       122,962       —         19       (1 )      3  

Net realized gain (loss)

      (1,214 )      12,205       —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      91,097       135,167       —         19       (1 )      3  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      69,413       (166,750 )      1       1       —         1  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      170,014       (23,520 )      2,477       113       1,755       4  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      64,500       53,635       2,504,902       24,081,889       39,096       50,852  

Transfers between sub-accounts and the company

      67,026       14,874       (7,567,127 )      (23,359,531 )      593,808       (7,303 ) 

Transfers on general account policy loans

      (2,045 )      (2,661 )      81,313       (1,752,166 )      345       (1,339 ) 

Withdrawals

      (13,207 )      190       (28,213 )      2,038,550       (631,482 )      (411,340 ) 

Annual contract fee

      (50,556 )      (44,408 )      (191,816 )      (656,289 )      (70,517 )      (70,339 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      65,718       21,630       (5,200,941 )      352,453       (68,750 )      (439,469 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      235,732       (1,890 )      (5,198,464 )      352,566       (66,995 )      (439,465 ) 

Net assets at beginning of period

      649,332       651,222       5,198,464       4,845,898       2,285,043       2,724,508  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 885,064     $ 649,332     $ —       $ 5,198,464     $ 2,218,048     $ 2,285,043  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      16,842       16,316       299,165       278,873       169,766       202,418  

Units issued

      3,754       2,158       307,893       1,665,244       48,126       2,705  

Units redeemed

      (2,096 )      (1,632 )      (607,058 )      (1,644,952 )      (53,230 )      (35,357 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      18,500       16,842       —         299,165       164,662       169,766  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(i)

Terminated as an investment option and funds transferred to Money-Market Trust Series NAV on April 29, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

See accompanying notes.

 

50

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Money-Market Trust
Series NAV		      PIMCO All Asset     Real Estate Securities
Trust Series I		  
     2016 (a)     2015      2016     2015     2016     2015  

Income:

              

Dividend distributions received

    $ 5,787     $     —        $ 35,681     $ 73,100     $ 26,695     $ 13,114  

Expenses:

              

Mortality and expense risk and administrative charges

      —         —          —         —         —         —    
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      5,787       —          35,681       73,100       26,695       13,114  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

              

Capital gain distributions received

      —         —          6       —         (1 )      —    

Net realized gain (loss)

      —         —          (167,805 )      (99,025 )      54,400       (7,346 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      —         —          (167,799 )      (99,025 )      54,399       (7,346 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      3       —          342,765       (151,418 )      (24,923 )      12,913  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      5,790       —          210,647       (177,343 )      56,171       18,681  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

              

Purchase payments

      5,616,939       —          42,210       60,504       6,432       13,578  

Transfers between sub-accounts and the company

      178,828       —          (50,236 )      (2,334,519 )      (798 )      (4,654 ) 

Transfers on general account policy loans

      (108,084 )      —          (42 )      (2,719 )      (26,587 )      (2,095 ) 

Withdrawals

      (482,458 )      —          (771,359 )      (313,853 )      146       (1,526 ) 

Annual contract fee

      (329,038 )      —          (42,402 )      (69,276 )      (15,582 )      (15,414 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      4,876,187       —          (821,829 )      (2,659,863 )      (36,389 )      (10,111 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      4,881,977       —          (611,182 )      (2,837,206 )      19,782       8,570  

Net assets at beginning of period

      —         —          2,145,566       4,982,772       694,607       686,037  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 4,881,977     $ —        $ 1,534,384     $ 2,145,566     $ 714,389     $ 694,607  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015      2016     2015     2016     2015  

Units, beginning of period

      —         —          149,323       314,480       13,486       13,676  

Units issued

      1,118,134       —          2,551       3,926       2,342       1,206  

Units redeemed

      (630,489 )      —          (57,025 )      (169,083 )      (2,855 )      (1,396 ) 
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      487,645       —          94,849       149,323       12,973       13,486  
  

 

 

    

 

 

     

 

 

    

 

 

    

 

 

    

 

 

  

 

(a)

Reflects the period from commencement of operations on April 29, 2016 through December 31, 2016.

 

 

See accompanying notes.

 

51

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Real Estate Securities Trust
Series NAV		     Real Return Bond Trust
Series I		     Real Return Bond Trust
Series NAV		  
     2016     2015     2016 (j)     2015     2016 (k)     2015  

Income:

             

Dividend distributions received

    $ 81,652     $ 43,520     $ —       $ 1,429     $ —       $ 65,519  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      81,652       43,520       —         1,429       —         65,519  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      (11 )      —         (1 )      —         —         —    

Net realized gain (loss)

      85,307       463,475       2,400       86       (106,585 )      (5,105 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      85,296       463,475       2,399       86       (106,585 )      (5,105 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      (8,354 )      (467,512 )      3,005       (2,454 )      140,650       (95,758 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      158,594       39,483       5,404       (939 )      34,065       (35,344 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      126,286       128,208       270       921       13,646       55,935  

Transfers between sub-accounts and the company

      (7,180 )      (877,894 )      (57,444 )      28,363       (1,015,988 )      291,323  

Transfers on general account policy loans

      (7,685 )      (7,730 )      —         —         774       (784 ) 

Withdrawals

      (73,935 )      (116,596 )      —         (11,097 )      (10,779 )      (4,775 ) 

Annual contract fee

      (113,373 )      (113,742 )      (879 )      (1,090 )      (17,557 )      (50,446 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (75,887 )      (987,754 )      (58,053 )      17,097       (1,029,904 )      291,253  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      82,707       (948,271 )      (52,649 )      16,158       (995,839 )      255,909  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at beginning of period

      2,280,348       3,228,619       52,649       36,491       995,839       739,930  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 2,363,055     $ 2,280,348     $ —       $ 52,649     $ —       $ 995,839  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      15,969       23,243       2,503       1,684       68,685       49,534  

Units issued

      882       2,616       7,411       1,470       840       22,492  

Units redeemed

      (1,380 )      (9,890 )      (9,914 )      (651 )      (69,525 )      (3,341 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      15,471       15,969       —         2,503       —         68,685  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(j)

Terminated as an investment option and funds transferred to Bond Trust Series I on April 29, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

(k)

Terminated as an investment option and funds transferred to Bond Trust Series NAV on April 29, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

See accompanying notes.

 

52

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Science & Technology
Trust Series I		     Science & Technology
Trust Series NAV		     Short Term Government
Income Trust Series I		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ —       $ —       $ —       $ —       $ 6,019     $ 5,322  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      —         —         —         —         6,019       5,322  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      30,542       44,839       160,102       141,109       —         (1 ) 

Net realized gain (loss)

      34,727       19,781       41,362       24,016       (5,052 )      (2,061 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      65,269       64,620       201,464       165,125       (5,052 )      (2,062 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      (47,686 )      (48,639 )      (114,048 )      (114,752 )      251       (1,205 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      17,583       15,981       87,416       50,373       1,218       2,055  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      11,418       12,500       127,593       107,235       20,079       15,579  

Transfers between sub-accounts and the company

      6,506       54,012       267,504       164,385       78,300       190  

Transfers on general account policy loans

      (15,437 )      (4,770 )      (22,160 )      (7,320 )      (6,731 )      213  

Withdrawals

      (9,568 )      (11,938 )      (6,578 )      (4,857 )      41       (41,853 ) 

Annual contract fee

      (19,506 )      (18,340 )      (93,368 )      (71,945 )      (18,897 )      (15,986 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (26,587 )      31,464       272,991       187,498       72,792       (41,857 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (9,004 )      47,445       360,407       237,871       74,010       (39,802 ) 

Net assets at beginning of period

      271,611       224,166       877,224       639,353       299,218       339,020  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 262,607     $ 271,611     $ 1,237,631     $ 877,224     $ 373,228     $ 299,218  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      15,809       13,920       30,584       23,801       27,986       31,913  

Units issued

      2,486       3,705       21,354       10,393       17,223       1,441  

Units redeemed

      (4,193 )      (1,816 )      (12,137 )      (3,610 )      (10,499 )      (5,368 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      14,102       15,809       39,801       30,584       34,710       27,986  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

53

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Short Term Government Income
Trust Series NAV		     Small Cap Growth
Trust Series I		     Small Cap Growth
Trust Series NAV		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 8,626     $ 9,928     $ —       $ —       $ —       $ —    

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      8,626       9,928       —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      —         —         1,577       16,001       101,248       215,074  

Net realized gain (loss)

      (4,949 )      (4,054 )      (31,290 )      2,934       (106,828 )      2,027  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      (4,949 )      (4,054 )      (29,713 )      18,935       (5,580 )      217,101  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      (1,810 )      (1,464 )      21,353       (26,316 )      32,169       (350,131 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      1,867       4,410       (8,360 )      (7,381 )      26,589       (133,030 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      61,177       53,949       409       7,029       109,850       98,363  

Transfers between sub-accounts and the company

      (13,513 )      7,311       (51,949 )      (4,402 )      (184,325 )      632,996  

Transfers on general account policy loans

      (7,113 )      (2,629 )      —         —         (9,223 )      (2,450 ) 

Withdrawals

      (22,904 )      (1,016 )      (6,670 )      (2,754 )      (7,573 )      (1,172 ) 

Annual contract fee

      (54,339 )      (33,108 )      (985 )      (2,617 )      (69,118 )      (66,125 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (36,692 )      24,507       (59,195 )      (2,744 )      (160,389 )      661,612  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (34,825 )      28,917       (67,555 )      (10,125 )      (133,800 )      528,582  

Net assets at beginning of period

      549,485       520,568       85,364       95,489       1,101,968       573,386  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 514,660     $ 549,485     $ 17,809     $ 85,364     $ 968,168     $ 1,101,968  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      51,243       48,883       3,388       3,455       36,855       17,493  

Units issued

      283,999       189,272       17       343       3,953       21,351  

Units redeemed

      (287,544 )      (186,912 )      (2,714 )      (410 )      (9,146 )      (1,989 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      47,698       51,243       691       3,388       31,662       36,855  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

54

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Small Cap Index
Trust Series I		     Small Cap Index
Trust Series NAV		     Small Cap Opportunities
Trust Series I		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 1,527     $ 1,249     $ 24,692     $ 27,491     $ 518     $ 118  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      1,527       1,249       24,692       27,491       518       118  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      10,092       9,781       150,007       196,549       10,468       5,688  

Net realized gain (loss)

      5,603       1,712       (8,373 )      56,188       167       3,252  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      15,695       11,493       141,634       252,737       10,635       8,940  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      6,552       (17,134 )      211,318       (383,481 )      9,929       (18,799 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      23,774       (4,392 )      377,644       (103,253 )      21,082       (9,741 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      3,914       3,860       109,513       111,773       5,400       5,343  

Transfers between sub-accounts and the company

      13,231       (34,931 )      208,514       336,404       (13 )      38,424  

Transfers on general account policy loans

      35       1,346       23,606       (59,422 )      (960 )      567  

Withdrawals

      (27 )      (4,809 )      (757,292 )      (254,768 )      (7,565 )      2  

Annual contract fee

      (4,681 )      (5,765 )      (105,706 )      (93,700 )      (5,000 )      (5,476 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      12,472       (40,299 )      (521,365 )      40,287       (8,138 )      38,860  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      36,246       (44,691 )      (143,721 )      (62,966 )      12,944       29,119  

Net assets at beginning of period

      114,711       159,402       2,527,808       2,590,774       112,855       83,736  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 150,957     $ 114,711     $ 2,384,087     $ 2,527,808     $ 125,799     $ 112,855  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      3,696       4,901       102,059       99,799       3,016       2,122  

Units issued

      1,287       115       17,110       30,231       88       1,930  

Units redeemed

      (962 )      (1,320 )      (39,626 )      (27,971 )      (290 )      (1,036 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      4,021       3,696       79,543       102,059       2,814       3,016  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

55

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Small Cap Opportunities
Trust Series NAV		     Small Cap Value
Trust Series I		     Small Cap Value
Trust Series NAV		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 6,802     $ 1,360     $ 687     $ 258     $ 9,474     $ 5,911  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      6,802       1,360       687       258       9,474       5,911  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      123,743       42,376       18,037       6,569       165,670       161,364  

Net realized gain (loss)

      (23,067 )      14,053       (10,204 )      (132 )      1,062       14,668  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      100,676       56,429       7,833       6,437       166,732       176,032  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      75,433       (113,147 )      17,521       (8,321 )      88,754       (199,428 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      182,911       (55,358 )      26,041       (1,626 )      264,960       (17,485 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      59,630       52,088       1,500       250       130,937       104,838  

Transfers between sub-accounts and the company

      (663,581 )      207,228       16,302       48,997       15,581       115,291  

Transfers on general account policy loans

      (1,847 )      (7,692 )      —         —         (7,868 )      (7,446 ) 

Withdrawals

      (1,316 )      (3,265 )      7       7       (18,198 )      (4,140 ) 

Annual contract fee

      (63,217 )      (66,489 )      (3,542 )      (1,541 )      (58,934 )      (50,923 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (670,331 )      181,870       14,267       47,713       61,518       157,620  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (487,420 )      126,512       40,308       46,087       326,478       140,135  

Net assets at beginning of period

      1,246,801       1,120,289       55,800       9,713       1,098,190       958,055  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 759,381     $ 1,246,801     $ 96,108     $ 55,800     $ 1,424,668     $ 1,098,190  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      67,624       57,654       2,300       395       16,083       13,847  

Units issued

      4,019       15,711       2,945       1,961       2,784       3,777  

Units redeemed

      (37,180 )      (5,741 )      (2,016 )      (56 )      (1,859 )      (1,541 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      34,463       67,624       3,229       2,300       17,008       16,083  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

56

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Small Company Value
Trust Series I		     Small Company Value
Trust Series NAV		     Strategic Income Opportunities
Trust Series I		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 1,399     $ 2,590     $ 9,919     $ 15,774     $ 3,513     $ 5,215  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      1,399       2,590       9,919       15,774       3,513       5,215  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      27,369       27,449       179,154       150,648       —         (1 ) 

Net realized gain (loss)

      8,646       39,672       3,372       17,521       2,150       (2,626 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      36,015       67,121       182,526       168,169       2,150       (2,627 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      15,889       (80,307 )      146,539       (243,665 )      1,882       2,033  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      53,303       (10,596 )      338,984       (59,722 )      7,545       4,621  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      14,196       15,206       60,405       39,588       5,467       10,373  

Transfers between sub-accounts and the company

      (9,526 )      (15,259 )      (1,412 )      587,916       (65,034 )      (82,882 ) 

Transfers on general account policy loans

      (4,694 )      145       (708 )      (2,014 )      (5,100 )      103  

Withdrawals

      (7,556 )      (66,267 )      (285 )      (896 )      (251 )      (6,500 ) 

Annual contract fee

      (19,788 )      (18,059 )      (42,756 )      (32,806 )      (8,440 )      (10,821 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (27,368 )      (84,234 )      15,244       591,788       (73,358 )      (89,727 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      25,935       (94,830 )      354,228       532,066       (65,813 )      (85,106 ) 

Net assets at beginning of period

      173,468       268,298       1,036,639       504,573       209,604       294,710  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 199,403     $ 173,468     $ 1,390,867     $ 1,036,639     $ 143,791     $ 209,604  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      4,602       6,719       48,089       22,117       8,019       11,412  

Units issued

      334       376       2,328       28,508       905       379  

Units redeemed

      (938 )      (2,493 )      (1,658 )      (2,536 )      (3,691 )      (3,772 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      3,998       4,602       48,759       48,089       5,233       8,019  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

57

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Strategic Income Opportunities
Trust Series NAV		     Total Bond Market
Trust B Series NAV		     Total Return
Trust Series I		  
     2016     2015     2016     2015     2016      2015 (l)  

Income:

              

Dividend distributions received

    $ 42,480     $ 39,404     $ 19,051     $ 23,516     $     —        $ 85,312  

Expenses:

              

Mortality and expense risk and administrative charges

      —         —         —         —         —          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net investment income (loss)

      42,480       39,404       19,051       23,516       —          85,312  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Realized gains (losses) on investments:

              

Capital gain distributions received

      (6 )      —         11       —         —          38,834  

Net realized gain (loss)

      (11,772 )      33,623       (44 )      (19,030 )      —          (123,785 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Realized gains (losses)

      (11,778 )      33,623       (33 )      (19,030 )      —          (84,951 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Unrealized appreciation (depreciation) during the period

      44,990       (14,088 )      (5,081 )      (15,996 )      —          14,122  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net increase (decrease) in net assets from operations

      75,692       58,939       13,937       (11,510 )      —          14,483  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Changes from principal transactions:

              

Purchase payments

      167,547       145,398       75,272       48,997       —          18,870  

Transfers between sub-accounts and the company

      (865,142 )      (1,711,635 )      68,031       177,254       —          (689,724 ) 

Transfers on general account policy loans

      6,960       (21,667 )      (9,620 )      (1,637 )      —          —    

Withdrawals

      (74,684 )      (3,213 )      (9,718 )      (387 )      —          (22,242 ) 

Annual contract fee

      (85,646 )      (88,995 )      (43,221 )      (36,441 )      —          (12,265 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net increase (decrease) in net assets from principal transactions

      (850,965 )      (1,680,112 )      80,744       187,786       —          (705,361 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Total increase (decrease) in net assets

      (775,273 )      (1,621,173 )      94,681       176,276       —          (690,878 ) 

Net assets at beginning of period

      2,527,487       4,148,660       622,562       446,286       —          690,878  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Net assets at end of period

    $ 1,752,214     $ 2,527,487     $ 717,243     $ 622,562     $ —        $ —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  
     2016     2015     2016     2015     2016      2015  

Units, beginning of period

      130,343       216,653       26,275       18,892       —          23,015  

Units issued

      62,878       334,483       6,015       97,574       —          1,771  

Units redeemed

      (107,308 )      (420,793 )      (2,742 )      (90,191 )      —          (24,786 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

Units, end of period

      85,913       130,343       29,548       26,275       —          —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

     

 

 

  

 

(l)

Terminated as an investment option and funds transferred to Core Bond Trust Series I on April 27, 2015. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

See accompanying notes.

 

58

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Total Return
Trust Series NAV		     Total Stock Market Index
Trust Series I		     Total Stock Market Index
Trust Series NAV		  
     2016      2015 (m)     2016     2015     2016     2015  

Income:

              

Dividend distributions received

    $     —        $ 173,323     $ 2,095     $ 1,603     $ 49,198     $ 27,144  

Expenses:

              

Mortality and expense risk and administrative charges

      —          —         —         —         —         —    
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      —          173,323       2,095       1,603       49,198       27,144  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

              

Capital gain distributions received

      —          78,894       2,330       3,445       51,501       53,812  

Net realized gain (loss)

      —          (277,425 )      2,304       32,333       31,069       63,920  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      —          (198,531 )      4,634       35,778       82,570       117,732  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      —          57,025       9,787       (36,968 )      248,843       (145,663 ) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      —          31,817       16,516       413       380,611       (787 ) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

              

Purchase payments

      —          39,435       1,808       819       310,705       165,947  

Transfers between sub-accounts and the company

      —          (1,666,617 )      23,054       (66,535 )      276,056       1,433,026  

Transfers on general account policy loans

      —          (108,321 )      —         —         13,142       (7,931 ) 

Withdrawals

      —          (450 )      12       13       (35,860 )      (15,002 ) 

Annual contract fee

      —          (32,907 )      (4,709 )      (4,535 )      (150,627 )      (102,508 ) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      —          (1,768,860 )      20,165       (70,238 )      413,416       1,473,532  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      —          (1,737,043 )      36,681       (69,825 )      794,027       1,472,745  

Net assets at beginning of period

      —          1,737,043       117,346       187,171       2,747,338       1,274,593  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ —        $ —       $ 154,027     $ 117,346     $ 3,541,365     $ 2,747,338  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016      2015     2016     2015     2016     2015  

Units, beginning of period

      —          96,310       4,932       7,818       34,645       15,988  

Units issued

      —          13,368       1,041       42       7,438       22,760  

Units redeemed

      —          (109,678 )      (212 )      (2,928 )      (2,343 )      (4,103 ) 
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      —          —         5,761       4,932       39,740       34,645  
  

 

 

     

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(m)

Terminated as an investment option and funds transferred to Core Bond Trust Series NAV on April 27, 2015. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

See accompanying notes.

 

59

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     U.S. Equity
Trust Series I		     U.S. Equity Trust
Series NAV		     Ultra Short Term Bond
Trust Series I		  
     2016 (n)     2015     2016 (o)     2015     2016 (h)     2015  

Income:

             

Dividend distributions received

    $ 1,132     $ 419     $ 42,918     $ 14,162     $ 378     $ —    

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      1,132       419       42,918       14,162       378       —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      10,853       —         406,980       —         —         —    

Net realized gain (loss)

      (6,739 )      15,668       (270,428 )      12,378       19       —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      4,114       15,668       136,552       12,378       19       —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      (4,241 )      (14,984 )      (141,744 )      (24,447 )      (375 )      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      1,005       1,103       37,726       2,093       22       —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      536       919       55,290       57,031       —         —    

Transfers between sub-accounts and the company

      (20,217 )      3       (752,150 )      (12,317 )      24,667       —    

Transfers on general account policy loans

      3,377       15       (929 )      (4,998 )      —         —    

Withdrawals

      (3,374 )      (49,265 )      (6,038 )      (5,036 )      —         —    

Annual contract fee

      (2,341 )      (3,441 )      (31,169 )      (35,236 )      (433 )      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (22,019 )      (51,769 )      (734,996 )      (556 )      24,234       —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (21,014 )      (50,666 )      (697,270 )      1,537       24,256       —    

Net assets at beginning of period

      21,014       71,680       697,270       695,733       —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ —       $ 21,014     $ —       $ 697,270     $ 24,256     $     —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      1,428       4,899       47,322       47,465       —         —    

Units issued

      30       42       6,161       4,029       6,639       —    

Units redeemed

      (1,458 )      (3,513 )      (53,483 )      (4,172 )      (4,237 )      —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      —         1,428       —         47,322       2,402       —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(h)

Sub-account available in prior year but no activity.

(n)

Terminated as an investment option and funds transferred to 500 Index Fund B Series I on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

(o)

Terminated as an investment option and funds transferred to 500 Index Fund B Series NAV on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

See accompanying notes.

 

60

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Ultra Short Term Bond
Trust Series NAV		     Utilities Trust Series I     Utilities Trust
Series NAV		  
     2016     2015     2016     2015     2016     2015  

Income:

             

Dividend distributions received

    $ 4,594     $ 1,362     $ 6,543     $ 3,445     $ 44,418     $ 47,947  

Expenses:

             

Mortality and expense risk and administrative charges

      —         —         —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      4,594       1,362       6,543       3,445       44,418       47,947  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

             

Capital gain distributions received

      —         —         2,753       10,581       16,560       96,144  

Net realized gain (loss)

      (144 )      (1,043 )      (5,656 )      2,074       3,275       (102,727 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      (144 )      (1,043 )      (2,903 )      12,655       19,835       (6,583 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      (1,837 )      (297 )      4,793       (32,582 )      41,992       (299,898 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      2,613       22       8,433       (16,482 )      106,245       (258,534 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

             

Purchase payments

      33,774       17,076       2,116       3,037       104,793       113,300  

Transfers between sub-accounts and the company

      185,166       (24,031 )      6,505       19,318       (44,028 )      230,012  

Transfers on general account policy loans

      (342 )      —         772       299       4,629       (5,101 ) 

Withdrawals

      (19,333 )      —         10       19       (50,420 )      (1,884 ) 

Annual contract fee

      (16,525 )      (9,145 )      (4,306 )      (4,169 )      (82,605 )      (80,125 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      182,740       (16,100 )      5,097       18,504       (67,631 )      256,202  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      185,353       (16,078 )      13,530       2,022       38,614       (2,332 ) 

Net assets at beginning of period

      102,628       118,706       96,954       94,932       920,751       923,083  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 287,981     $ 102,628     $ 110,484     $ 96,954     $ 959,365     $ 920,751  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015     2016     2015  

Units, beginning of period

      10,190       11,787       3,048       2,544       36,163       30,892  

Units issued

      129,323       2,704       2,137       1,061       3,031       48,282  

Units redeemed

      (111,108 )      (4,301 )      (2,066 )      (557 )      (5,380 )      (43,011 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      28,405       10,190       3,119       3,048       33,814       36,163  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

61

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

STATEMENTS OF OPERATIONS AND CHANGES IN CONTRACT OWNERS’ EQUITY

For the years ended December 31,

 

     Value Trust Series I     Value Trust Series NAV  
     2016     2015     2016     2015  

Income:

         

Dividend distributions received

    $ 1,325     $ 1,291     $ 6,666     $ 4,893  

Expenses:

         

Mortality and expense risk and administrative charges

      —         —         —         —    
  

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

      1,325       1,291       6,666       4,893  
  

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses) on investments:

         

Capital gain distributions received

      15,889       30,033       76,034       92,138  

Net realized gain (loss)

      30,346       50,673       (18,949 )      13,770  
  

 

 

    

 

 

    

 

 

    

 

 

  

Realized gains (losses)

      46,235       80,706       57,085       105,908  
  

 

 

    

 

 

    

 

 

    

 

 

  

Unrealized appreciation (depreciation) during the period

      (20,124 )      (100,712 )      62,964       (184,516 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from operations

      27,436       (18,715 )      126,715       (73,715 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Changes from principal transactions:

         

Purchase payments

      5,715       7,384       99,543       90,347  

Transfers between sub-accounts and the company

      (54,824 )      11,978       (48,296 )      198,258  

Transfers on general account policy loans

      1,877       540       (266 )      (237 ) 

Withdrawals

      (29 )      (89,477 )      (41,432 )      (63 ) 

Annual contract fee

      (5,500 )      (6,637 )      (40,223 )      (35,525 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets from principal transactions

      (52,761 )      (76,212 )      (30,674 )      252,780  
  

 

 

    

 

 

    

 

 

    

 

 

  

Total increase (decrease) in net assets

      (25,325 )      (94,927 )      96,041       179,065  

Net assets at beginning of period

      217,906       312,833       792,056       612,991  
  

 

 

    

 

 

    

 

 

    

 

 

  

Net assets at end of period

    $ 192,581     $ 217,906     $ 888,097     $ 792,056  
  

 

 

    

 

 

    

 

 

    

 

 

  
     2016     2015     2016     2015  

Units, beginning of period

      6,024       7,879       31,997       22,570  

Units issued

      2,895       207       15,389       11,604  

Units redeemed

      (4,320 )      (2,062 )      (16,399 )      (2,177 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Units, end of period

      4,599       6,024       30,987       31,997  
  

 

 

    

 

 

    

 

 

    

 

 

  

 

See accompanying notes.

 

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS

December 31, 2016

 

1.

Organization

John Hancock Life Insurance Company of New York Separate Account B (the “Account”) is a separate account established by John Hancock Life Insurance Company of New York (the “Company”). The Account operates as a Unit Investment Trust under the Investment Company Act of 1940, as amended (the “Act”) and is an investment company and accordingly follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The Account consists of 103 active sub-accounts which are exclusively invested in a corresponding portfolio of the John Hancock Variable Insurance Trust (the “Trust”), and 5 active sub-accounts that are invested in portfolios of other Non-affiliated Trusts (the “Non-affiliated Trusts”). The Trust and Non-affiliated Trusts are registered under the Act as an open-ended management investment company, commonly known as a mutual fund, which does not transact with the general public. The Account is a funding vehicle for the allocation of net premiums under single premium variable life and variable universal life insurance contracts (the “Contracts”) issued by the Company.

The Company is a wholly owned subsidiary of John Hancock Life Insurance Company (U.S.A.) (“JHUSA”), which in turn is an indirect, wholly owned subsidiary of the Manufacturers Life Insurance Company which is an indirect, wholly owned subsidiary of Manulife Financial Corporation (““MFC””), a Canadian based publicly traded life insurance company. MFC and its subsidiaries are known collectively as Manulife Financial.

The Company is required to maintain assets in the Account with a total fair value of at least equal to the reserves and other liabilities relating to the variable benefits under all Contracts participating in the Account. These assets may not be charged with liabilities which arise from any other business the Company conducts. However, all obligations under the Contracts are general corporate obligations of the Company.

In addition to the Account, certain contract owners may also allocate funds to the fixed account, which is part of the Company’s general account. Because of exemptive and exclusionary provisions, interests in the fixed account have not been registered under the Securities Act of 1933, and the Company’s general account has not been registered as an investment company under the Investment Company Act of 1940. Net interfund transfers include transfers between separate and general accounts.

Each sub-account holds shares of a particular series (“Portfolio”) of a registered investment company. Sub-accounts that invest in Portfolios of the Trust may offer 2 classes of units to fund Contracts issued by the Company. These classes, Series I and Series NAV, represent an interest in the same Trust Portfolio, but in different classes of that Portfolio. Series I and Series NAV shares of the Trust Portfolio differ in the level of 12b-1 fees and other expenses assessed against the Portfolio’s assets.

As a result of a portfolio change, the following sub-accounts of the Account were renamed as follows:

 

Previous Name

   

New Name

   

Effective

Date

Equity-Income Trust Series I

   

Equity Income Trust Series I

   

05/02/2016

Equity-Income Trust Series NAV

   

Equity Income Trust Series NAV

   

05/02/2016

Funds transferred in 2016 are as follows:

 

Transferred from

   

Transferred to

   

Effective

Date

Franklin Templeton Founding Allocation Trust Series I   

Lifestyle Growth Trust PS Series I

   

10/21/2016

Franklin Templeton Founding Allocation Trust Series NAV   

Lifestyle Growth Trust PS Series NAV

   

10/21/2016

International Core Trust Series I

   

International Value Trust Series I

   

10/21/2016

International Core Trust Series NAV

   

International Value Trust Series NAV

   

10/21/2016

Money Market Trust B Series NAV

   

Money-Market Trust Series NAV

   

04/29/2016

Real Return Bond Trust Series I

   

Bond Trust Series I

   

04/29/2016

Real Return Bond Trust Series NAV

   

Bond Trust Series NAV

   

04/29/2016

U.S. Equity Trust Series I

   

500 Index Fund B Series I

   

10/21/2016

 

63

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

1.

Organization (continued):

 

Transferred from

   

Transferred to

   

Effective

Date

U.S. Equity Trust Series NAV

   

500 Index Fund B Series NAV

   

10/21/2016

Sub-accounts opened in 2016 are as follows:

 

Sub-accounts Opened

        

Effective

Date

Money-Market Trust Series NAV

      

04/29/2016

 

64

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

2.

Significant Accounting Policies

Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from reported results using those estimates.

Valuation of Investments

Investments made in the Portfolios of the Trust, and of the Non-affiliated Trusts, are valued at fair value based on the reported net asset values of such Portfolios. Investment transactions are recorded on the trade date. Income from dividends, and gains from realized gain distributions are recorded on the ex-dividend date. Realized gains and losses on the sales of investments are computed on a first-in, first-out basis.

Amounts Receivable/Payable

Receivables/Payables from/to Portfolios/the Company are due to unsettled contract transactions (net of asset-based charges) and/or subsequent/preceding purchases/sales of the respective Portfolios’ shares. The amounts are due from/to either the respective Portfolio and/or the Company for the benefit of contract owners. There are no unsettled policy transactions at December 31, 2016.

 

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

3.

Federal Income Taxes

The Account does not file separate tax returns. The taxable income of the Account is consolidated with that of the Company within the consolidated federal tax return. Any tax contingencies arising from the taxable income generated by the Account is the responsibility of the Company and the Company holds any and all tax contingencies on its financial statements. The Company’s consolidated federal tax return for the FY 2010 and onward remains open subject to examination by the internal revenue service. The Account is not a party to the consolidated tax sharing agreement thus no amount of income taxes or tax contingencies are passed through to the Account. The legal form of the Account is not taxable in any state or foreign jurisdictions.

The income taxes topic of the FASB ASC establishes a minimum threshold for financial statement recognition of the benefit of positions taken, or expected to be taken, in filing tax returns (including whether the Account is taxable in certain jurisdictions). The topic requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Company’s tax returns to determine whether tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions deemed to meet the more-likely-than-not threshold would be recorded as tax expense or benefit.

The Account complies with the provisions of FASB ASC Topic 740, Income Taxes. As of December 31, 2016, the Account did not have a liability for any uncertain tax positions. The Account recognizes interest and penalties, if any, related to tax liabilities as income tax expense in the Statements of Operations and Changes in Contract Owners’ Equity.

 

4.

Transactions with Affiliates

The Company has an administrative services agreement with Manulife Financial, whereby Manulife Financial or its designee, with the consent of the Company, performs certain services on behalf of the Company necessary for the operation of the Account. John Hancock Investment Management Services, LLC (“JHIMS”), a Delaware limited liability company controlled by MFC, serves as investment adviser for the Trust.

John Hancock Distributors, LLC, a registered broker-dealer and wholly owned subsidiary of JHUSA, acts as the principle underwriter of the Contracts pursuant to a distribution agreement with the Company. Contracts are sold by registered representatives of either John Hancock Distributors, LLC or other broker-dealers having distribution agreements with John Hancock Distributors, LLC.

Certain officers of the Account are officers and directors of JHUSA or the Trust.

Contract charges, as described in Note 9, are paid to the Company.

 

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

5.

Fair Value Measurements

ASC 820 “Fair Value Measurements and Disclosures” provides a single definition of fair value for accounting purposes, establishes a consistent framework for measuring fair value, and expands disclosure requirements about fair value measurements. ASC 820 defines fair value as the value that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; that is, an exit value. An exit value is not a forced liquidation or distressed sale.

Following ASC 820 guidance, the Account has categorized its fair value measurements according to a three-level hierarchy. The hierarchy prioritizes the inputs used by the Account’s valuation techniques. A level is assigned to each fair value measurement based on the lowest level input significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are defined as follows:

 

•  

Level 1 – Fair value measurements that reflect unadjusted, quoted prices in active markets for identical assets and liabilities that the Account has the ability to access at the measurement date.

 

•  

Level 2 – Fair value measurements using inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly.

 

•  

Level 3 – Fair value measurements using significant non market observable inputs.

All of the Account’s sub-accounts’ investments in a Portfolio of the Trust were valued at the reported net asset value of the Portfolio and categorized as Level 1 as of December 31, 2016. The following table presents the Account’s assets that are measured at fair value on a recurring basis by fair value hierarchy level under ASC 820, as of December 31, 2016:

 

     Level 1      Level 2      Level 3      Total  
  

 

 

  

Mutual Funds

    $ 233,632,617        —          —          233,632,617  
  

 

 

  

Total

    $ 233,632,617        —          —          233,632,617  
  

 

 

  

Assets owned by the Account are primarily open-ended mutual fund investments issued by the Trust. These are classified within Level 1, as fair values of the underlying funds are based upon reported net asset values (“NAV”), which represent the values at which each sub-account can redeem its investments.

Changes in valuation techniques may result in transfer in or out of an assigned level within the disclosure hierarchy. Transfers between investment levels may occur as the availability of a price source or data used in an investment’s valuation changes. Transfers between investment levels are recognized at the beginning of the reporting period. There have been no transfers between any level of fair value measurements during the period ended December 31, 2016.

 

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

6.

Purchases and Sales of Investments

 

The cost of purchases including reinvestment of dividend distributions and proceeds from the sales of investments in the Portfolios of the Trust and Non-affiliated Trusts during 2016 were as follows:

 

     Purchases      Sales  

Sub-account

      

500 Index Fund B Series NAV

    $ 7,505,902      $ 1,936,949  

Active Bond Trust Series I

      75,344        148,431  

Active Bond Trust Series NAV

      278,647        160,373  

All Cap Core Trust Series I

      10,610        32,274  

All Cap Core Trust Series NAV

      33,261        14,670  

Alpha Opportunities Trust Series I

      3,436        36,140  

Alpha Opportunities Trust Series NAV

      62,619        24,428  

American Asset Allocation Trust Series I

      1,081,796        153,265  

American Global Growth Trust Series I

      106,819        14,450  

American Growth Trust Series I

      1,103,914        302,989  

American Growth-Income Trust Series I

      893,903        568,708  

American International Trust Series I

      272,432        259,350  

American New World Trust Series I

      95,749        77,914  

Blue Chip Growth Trust Series I

      162,762        440,364  

Blue Chip Growth Trust Series NAV

      2,790,463        1,415,896  

Bond Trust Series I

      232,589        212,947  

Bond Trust Series NAV

      981,459        72,910  

Capital Appreciation Trust Series I

      70,032        19,260  

Capital Appreciation Trust Series NAV

      1,963,663        2,220,588  

Capital Appreciation Value Trust Series I

      55        28  

Capital Appreciation Value Trust Series NAV

      1,410,065        252,162  

Core Bond Trust Series I

      62,287        208,612  

Core Bond Trust Series NAV

      699,663        446,186  

Core Strategy Trust Series NAV

      1,249,749        388,477  

Emerging Markets Value Trust Series I

      131,203        129,324  

Emerging Markets Value Trust Series NAV

      993,239        1,208,696  

Equity Income Trust Series I

      159,203        190,119  

Equity Income Trust Series NAV

      1,131,618        735,594  

Financial Industries Trust Series I

      59,544        121,964  

Financial Industries Trust Series NAV

      47,667        80,394  

Franklin Templeton Founding Allocation Trust Series I (g)

      82        1,493  

Franklin Templeton Founding Allocation Trust Series NAV (h)

      649,598        3,388,593  

Fundamental All Cap Core Trust Series I

      2,766        5,975  

Fundamental All Cap Core Trust Series NAV

      269,508        40,174  

Fundamental Large Cap Value Trust Series I

      174,996        277,380  

Fundamental Large Cap Value Trust Series NAV

      611,824        599,479  

Global Bond Trust Series I

      29,165        11,551  

Global Bond Trust Series NAV

      123,476        144,599  

Global Trust Series I

      7,694        87,192  

Global Trust Series NAV

      167,409        123,506  

Health Sciences Trust Series I

      168,349        71,224  

Health Sciences Trust Series NAV

      879,198        343,619  

High Yield Trust Series I

      77,942        72,115  

High Yield Trust Series NAV

      7,522,097        6,299,097  

International Core Trust Series I (e)

      32,351        157,083  

International Core Trust Series NAV (f)

      456,916        1,435,803  

International Equity Index Trust B Series I

      44,468        45,811  

International Equity Index Trust B Series NAV

      791,989        988,006  

International Growth Stock Trust Series I

      7,895        15,936  

 

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

6.

Purchases and Sales of Investments — (continued)

 

     Purchases      Sales  

Sub-account

      

International Growth Stock Trust Series NAV

    $ 310,015      $ 37,216  

International Small Company Trust Series I

      47,782        1,391  

International Small Company Trust Series NAV

      154,307        67,599  

International Value Trust Series I

      128,011        47,233  

International Value Trust Series NAV

      1,273,837        304,070  

Investment Quality Bond Trust Series I

      77,223        7,900  

Investment Quality Bond Trust Series NAV

      291,354        24,573  

Lifestyle Aggressive MVP Series I

      46,500        11,953  

Lifestyle Aggressive MVP Series NAV

      2,190,017        1,400,437  

Lifestyle Aggressive Trust PS Series NAV

      158,619        1,072  

Lifestyle Balanced MVP Series I

      342,442        223,293  

Lifestyle Balanced MVP Series NAV

      5,290,642        2,473,294  

Lifestyle Balanced Trust PS Series NAV

      664,283        114,344  

Lifestyle Conservative MVP Series I

      3,579        73,889  

Lifestyle Conservative MVP Series NAV

      607,155        367,615  

Lifestyle Conservative Trust PS Series NAV

      17,326        4,370  

Lifestyle Growth MVP Series I

      188,658        254,902  

Lifestyle Growth MVP Series NAV

      5,163,775        2,483,301  

Lifestyle Growth Trust PS Series I

      1,140        98  

Lifestyle Growth Trust PS Series NAV

      4,018,044        69,475  

Lifestyle Moderate MVP Series I

      48,194        116,123  

Lifestyle Moderate MVP Series NAV

      1,479,342        664,820  

Lifestyle Moderate Trust PS Series NAV

      341,369        29,906  

M Capital Appreciation (a)

      96,060        75,302  

M International Equity (a)

      149,448        42,746  

M Large Cap Growth (a)

      320,827        110,812  

M Large Cap Value (a)

      152,539        227,598  

Mid Cap Index Trust Series I

      101,449        45,112  

Mid Cap Index Trust Series NAV

      957,253        1,203,956  

Mid Cap Stock Trust Series I

      36,707        74,332  

Mid Cap Stock Trust Series NAV

      244,080        122,125  

Mid Value Trust Series I

      87,590        63,686  

Mid Value Trust Series NAV

      259,440        91,906  

Money Market Trust B Series NAV (i)

      5,351,375        10,549,839  

Money Market Trust Series I

      649,572        716,567  

Money-Market Trust Series NAV

      11,188,065        6,306,088  

PIMCO All Asset (a)

      75,433        861,577  

Real Estate Securities Trust Series I

      148,077        157,772  

Real Estate Securities Trust Series NAV

      215,128        209,374  

Real Return Bond Trust Series I (c)

      157,429        215,482  

Real Return Bond Trust Series NAV (d)

      12,415        1,042,328  

Science & Technology Trust Series I

      77,134        73,178  

Science & Technology Trust Series NAV

      804,215        371,125  

Short Term Government Income Trust Series I

      192,387        113,576  

Short Term Government Income Trust Series NAV

      3,104,735        3,132,802  

Small Cap Growth Trust Series I

      1,978        59,596  

Small Cap Growth Trust Series NAV

      211,160        270,298  

Small Cap Index Trust Series I

      51,391        27,299  

Small Cap Index Trust Series NAV

      610,816        957,484  

Small Cap Opportunities Trust Series I

      14,400        11,553  

Small Cap Opportunities Trust Series NAV

      208,119        747,905  

Small Cap Value Trust Series I

      86,881        53,890  

 

69

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

6.

Purchases and Sales of Investments — (continued)

 

     Purchases      Sales  

Sub-account

      

Small Cap Value Trust Series NAV $

      374,828      $ 138,166  

Small Company Value Trust Series I

      41,752        40,351  

Small Company Value Trust Series NAV

      243,786        39,469  

Strategic Income Opportunities Trust Series I

      28,020        97,866  

Strategic Income Opportunities Trust Series NAV

      1,259,018        2,067,509  

Total Bond Market Trust B Series NAV

      166,998        67,197  

Total Stock Market Index Trust Series I

      29,842        5,253  

Total Stock Market Index Trust Series NAV

      705,408        191,290  

U.S. Equity Trust Series I (a)

      12,423        22,458  

U.S. Equity Trust Series NAV (b)

      540,673        825,772  

Ultra Short Term Bond Trust Series I

      67,389        42,778  

Ultra Short Term Bond Trust Series NAV

      1,313,139        1,125,804  

Utilities Trust Series I

      85,922        71,529  

Utilities Trust Series NAV

      143,358        150,008  

Value Trust Series I

      127,807        163,354  

Value Trust Series NAV

      479,793        427,771  

 

(a)

Terminated as an investment option and funds transferred to 500 Index Fund B Series I on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

(b)

Terminated as an investment option and funds transferred to 500 Index Fund B Series NAV on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

(c)

Terminated as an investment option and funds transferred to Bond Trust Series I on April 29, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

(d)

Terminated as an investment option and funds transferred to Bond Trust Series NAV on April 29, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

(e)

Terminated as an investment option and funds transferred to International Value Trust Series I on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

(f)

Terminated as an investment option and funds transferred to International Value Trust Series NAV on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

(g)

Terminated as an investment option and funds transferred to Lifestyle Growth Trust PS Series I on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

(h)

Terminated as an investment option and funds transferred to Lifestyle Growth Trust PS Series NAV on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

(i)

Terminated as an investment option and funds transferred to Money-Market Trust Series NAV on April 29, 2016.

 

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

6.

Purchases and Sales of Investments — (continued)

 

     Purchases      Sales  

Sub-Account

      

The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

7.

Unit Values

A summary of unit values and units outstanding for variable life contracts and the expense and income ratios, excluding expenses of the underlying Portfolios, were as follows:

 

        At December 31,   For the years and periods ended December 31,

Sub-account

   Year   Units
(000s)		   Unit Fair Value
Highest to Lowest (a)		   Assets
(000s)		   Expense Ratio
Highest to Lowest (b)		   Investment
Income Ratio (c)		   Total Return
Highest to Lowest (d)

500 Index Fund B Series NAV

       2016         360       $ 48.23 to $ 30.16       $ 16,841         0.00% to 0.00 %        2.20 %        11.64% to 11.64 % 
      2015         252         43.20 to 27.01         10,299         0.00 to 0.00         1.89         1.15 to 1.15  
      2014         207         42.71 to 26.70         8,236         0.00 to 0.00         1.73         13.43 to 9.85  
      2013         193         37.65 to 23.54         6,764         0.00 to 0.00         2.17         32.03 to 32.02  
      2012         165         28.52 to 17.83         4,351         0.00 to 0.00         1.13         15.80 to 8.03  

Active Bond Trust Series I

       2016         13         22.78 to 22.78         287         0.00 to 0.00         3.29         4.34 to 4.34  
      2015         16         21.84 to 21.84         354         0.00 to 0.00         5.02         0.17 to 0.17  
      2014         18         21.80 to 21.80         394         0.00 to 0.00         3.68         6.82 to 6.82  
      2013         15         20.41 to 20.41         315         0.00 to 0.00         6.44         0.24 to 0.24  
      2012         13         20.36 to 20.36         268         0.00 to 0.00         4.20         9.71 to 9.71  

Active Bond Trust Series NAV

       2016         14         74.36 to 74.36         1,077         0.00 to 0.00         3.76         4.50 to 4.50  
      2015         13         71.15 to 71.15         954         0.00 to 0.00         5.60         0.12 to 0.12  
      2014         9         71.07 to 71.07         653         0.00 to 0.00         3.64         6.97 to 2.79  
      2013         10         66.44 to 66.44         654         0.00 to 0.00         5.99         0.19 to 0.19  
      2012         9         66.31 to 66.31         610         0.00 to 0.00         5.15         9.76 to 5.32  

All Cap Core Trust Series I

       2016         16         19.31 to 19.31         300         0.00 to 0.00         1.79         10.56 to 10.56  
      2015         17         17.47 to 17.47         296         0.00 to 0.00         0.96         2.59 to 2.59  
      2014         17         17.03 to 17.03         293         0.00 to 0.00         0.92         9.65 to 9.65  
      2013         19         15.53 to 15.53         299         0.00 to 0.00         1.34         34.31 to 34.31  
      2012         37         11.56 to 11.56         429         0.00 to 0.00         1.15         16.57 to 16.57  

All Cap Core Trust Series NAV

       2016         6         22.97 to 22.97         140         0.00 to 0.00         1.98         10.65 to 10.65  
      2015         5         20.76 to 20.76         111         0.00 to 0.00         1.10         2.64 to 2.64  
      2014         5         20.23 to 20.23         94         0.00 to 0.00         1.02         9.68 to 7.59  
      2013         4         18.44 to 18.44         83         0.00 to 0.00         1.38         34.44 to 34.44  
      2012         4         13.72 to 13.72         55         0.00 to 0.00         0.24         16.62 to 10.44  

Alpha Opportunities Trust Series I

       2016         0         24.34 to 24.34         5         0.00 to 0.00         1.46         5.71 to 5.71  
      2015         2         23.02 to 23.02         40         0.00 to 0.00         0.66         0.00 to 0.00  

Alpha Opportunities Trust Series NAV

       2016         6         25.76 to 25.76         160         0.00 to 0.00         1.96         5.75 to 5.75  
      2015         5         24.36 to 24.36         133         0.00 to 0.00         0.71         (0.03) to (0.03 ) 
      2014         5         24.37 to 24.37         124         0.00 to 0.00         0.67         8.12 to 6.15  
      2013         4         22.54 to 22.54         93         0.00 to 0.00         0.92         35.58 to 35.58  
      2012         3         16.63 to 16.63         49         0.00 to 0.00         0.12         21.38 to 9.62  

American Asset Allocation Trust Series I

       2016         185         16.76 to 16.76         3,107         0.00 to 0.00         1.48         8.99 to 8.99  
      2015         151         15.38 to 15.38         2,326         0.00 to 0.00         2.26         1.06 to 1.06  
      2014         138         15.22 to 15.22         2,101         0.00 to 0.00         1.80         5.05 to 3.82  
      2013         104         14.49 to 14.49         1,506         0.00 to 0.00         1.24         23.30 to 23.30  
      2012         88         11.75 to 11.75         1,032         0.00 to 0.00         1.94         15.77 to 8.80  

American Global Growth Trust Series I

       2016         17         15.70 to 15.70         267         0.00 to 0.00         1.08         0.29 to 0.29  
      2015         13         15.66 to 15.66         205         0.00 to 0.00         2.12         6.64 to 6.64  
      2014         9         14.68 to 14.68         131         0.00 to 0.00         0.90         3.55 to 1.97  
      2013         6         14.40 to 14.40         82         0.00 to 0.00         1.04         28.63 to 28.63  
      2012         4         11.19 to 11.19         39         0.00 to 0.00         0.54         22.12 to 13.48  

American Growth Trust Series I

       2016         102         37.01 to 24.58         2,672         0.00 to 0.00         0.41         9.08 to 9.07  
      2015         100         33.93 to 22.54         2,411         0.00 to 0.00         0.25         6.44 to 6.44  
      2014         101         31.88 to 21.17         2,281         0.00 to 0.00         0.79         8.14 to 7.90  
      2013         117         29.48 to 19.58         2,499         0.00 to 0.00         0.57         29.61 to 29.61  
      2012         117         22.75 to 15.11         1,952         0.00 to 0.00         0.38         17.49 to 8.11  

American Growth-Income Trust Series I

       2016         95         33.49 to 22.44         2,394         0.00 to 0.00         1.60         11.10 to 11.10  
      2015         107         30.14 to 20.19         2,405         0.00 to 0.00         1.25         1.11 to 1.11  
      2014         138         29.81 to 19.97         3,002         0.00 to 0.00         0.93         10.25 to 7.27  
      2013         142         27.04 to 18.11         2,798         0.00 to 0.00         1.02         33.02 to 33.01  
      2012         144         20.33 to 13.62         2,131         0.00 to 0.00         2.01         17.16 to 10.27  

American International Trust Series I

       2016         83         31.58 to 17.94         1,603         0.00 to 0.00         1.00         3.12 to 3.12  
      2015         80         30.63 to 17.40         1,548         0.00 to 0.00         1.43         (4.82) to (4.82 ) 
      2014         62         32.18 to 18.28         1,281         0.00 to 0.00         0.98         (3.05) to (4.20 ) 
      2013         82         33.19 to 18.85         1,723         0.00 to 0.00         1.03         21.20 to 21.20  
      2012         81         27.39 to 15.55         1,427         0.00 to 0.00         1.06         17.50 to 13.22  

American New World Trust Series I

       2016         24         16.23 to 16.23         391         0.00 to 0.00         0.38         4.93 to 4.93  
      2015         24         15.47 to 15.47         368         0.00 to 0.00         1.69         (3.66) to (3.66 ) 
      2014         22         16.05 to 16.05         351         0.00 to 0.00         0.86         (8.21) to (8.64 ) 
      2013         20         17.49 to 17.49         345         0.00 to 0.00         1.22         10.89 to 10.89  
      2012         14         15.77 to 15.77         219         0.00 to 0.00         0.64         17.37 to 12.53  

Blue Chip Growth Trust Series I

       2016         27         26.67 to 26.67         722         0.00 to 0.00         0.01         0.81 to 0.81  
      2015         43         26.46 to 26.46         1,140         0.00 to 0.00         0.00         11.06 to 11.06  
      2014         45         23.82 to 23.82         1,067         0.00 to 0.00         0.00         9.07 to 9.07  
      2013         46         21.84 to 21.84         1,002         0.00 to 0.00         0.28         41.33 to 41.33  
      2012         44         15.46 to 15.46         686         0.00 to 0.00         0.09         18.31 to 18.31  

 

72

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

7.

Unit Values — (continued)

 

        At December 31,   For the years and periods ended December 31,

Sub-account

   Year   Units
(000s)		   Unit Fair Value
Highest to Lowest (a)		   Assets
(000s)		   Expense Ratio
Highest to Lowest (b)		   Investment
Income Ratio (c)		   Total Return
Highest to Lowest (d)

Blue Chip Growth Trust Series NAV

       2016         52       $  137.04 to $ 137.04       $ 7,175         0.00% to 0.00 %        0.06 %        0.85% to 0.85 % 
      2015       51       135.88 to 135.88       6,938       0.00 to 0.00       0.00       11.13 to 11.13
      2014       29       122.28 to 122.28       3,576       0.00 to 0.00       0.00       11.16 to 9.11
      2013       25       112.07 to 112.07       2,796       0.00 to 0.00       0.32       41.43 to 41.43
      2012       37       79.24 to 79.24       2,896       0.00 to 0.00       0.13       18.39 to 5.30

Bond Trust Series I

       2016         2         11.52 to 11.52         21         0.00 to 0.00         1.85         3.06 to 3.06  
      2014       2       11.16 to 11.16       24       0.00 to 0.00       3.73       5.53 to 5.53
      2012       2       10.72 to 10.72       21       0.00 to 0.00       3.38       6.34 to 6.34

Bond Trust Series NAV

       2016         98         11.56 to 11.56         1,137         0.00 to 0.00         3.93         3.19 to 3.19  
      2015       23       11.20 to 11.20       255       0.00 to 0.00       2.87       0.30 to 0.30
      2014       41       11.17 to 11.17       453       0.00 to 0.00       2.95       5.59 to 2.50
      2013       17       10.58 to 10.58       185       0.00 to 0.00       2.99       (1.32) to (1.32 ) 
      2012       18       10.72 to 10.72       198       0.00 to 0.00       2.96       6.31 to 2.99

Capital Appreciation Trust Series I

       2016         12         27.32 to 27.32         323         0.00 to 0.00         0.00         (1.08) to (1.08 ) 
      2015       12       27.61 to 27.61       329       0.00 to 0.00       0.00       11.45 to 11.45
      2014       14       24.78 to 24.78       349       0.00 to 0.00       0.05       9.65 to 9.65
      2013       15       22.60 to 22.60       343       0.00 to 0.00       0.24       37.41 to 37.41
      2012       22       16.44 to 16.44       358       0.00 to 0.00       0.16       15.98 to 15.98

Capital Appreciation Trust Series NAV

       2016         124         26.84 to 26.84         3,318         0.00 to 0.00         0.01         (1.00) to (1.00 ) 
      2015       154       27.11 to 27.11       4,175       0.00 to 0.00       0.02       11.47 to 11.47
      2014       182       24.32 to 24.32       4,417       0.00 to 0.00       0.08       11.81 to 9.68
      2013       216       22.17 to 22.17       4,798       0.00 to 0.00       0.26       37.50 to 37.50
      2012       224       16.13 to 16.13       3,613       0.00 to 0.00       0.24       16.03 to 3.07

Capital Appreciation Value Trust Series I

       2016         0         19.90 to 19.90         1         0.00 to 0.00         1.33         8.12 to 8.12  
      2015       0       18.41 to 18.41       0       0.00 to 0.00       1.10       5.28 to 5.28
      2014       0       17.48 to 17.48       1       0.00 to 0.00       5.47       12.22 to 12.22

Capital Appreciation Value Trust Series NAV

       2016         149         19.97 to 19.97         2,966         0.00 to 0.00         1.66         8.19 to 8.19  
      2015       104       18.46 to 18.46       1,928       0.00 to 0.00       1.27       5.27 to 5.27
      2014       89       17.54 to 17.54       1,562       0.00 to 0.00       1.69       12.38 to 7.58
      2013       71       15.60 to 15.60       1,110       0.00 to 0.00       1.39       22.29 to 22.29
      2012       66       12.76 to 12.76       840       0.00 to 0.00       1.68       14.77 to 7.74

Core Bond Trust Series I

       2016         31         20.87 to 20.87         651         0.00 to 0.00         1.89         2.74 to 2.74  
      2015       39       20.31 to 20.31       788       0.00 to 0.00       2.22       0.31 to 0.31
      2014       7       20.25 to 20.25       141       0.00 to 0.00       2.93       5.93 to 5.93
      2013       7       19.11 to 19.11       136       0.00 to 0.00       2.13       (2.15) to (2.15 ) 
      2012       7       19.53 to 19.53       141       0.00 to 0.00       2.67       6.46 to 6.46

Core Bond Trust Series NAV

       2016         141         16.76 to 16.76         2,357         0.00 to 0.00         2.12         2.73 to 2.73  
      2015       128       16.32 to 16.32       2,095       0.00 to 0.00       2.29       0.36 to 0.36
      2014       27       16.26 to 16.26       437       0.00 to 0.00       2.82       6.01 to 2.87
      2013       33       15.34 to 15.34       503       0.00 to 0.00       2.25       (2.12) to (2.12 ) 
      2012       30       15.67 to 15.67       470       0.00 to 0.00       1.81       6.54 to 3.76

Core Strategy Trust Series NAV

       2016         507         15.78 to 15.78         8,001         0.00 to 0.00         2.19         7.16 to 7.16  
      2015       482       14.73 to 14.73       7,097       0.00 to 0.00       2.41       (0.06) to (0.06 ) 
      2014       449       14.73 to 14.73       6,620       0.00 to 0.00       2.63       6.14 to 3.30  
      2013       406       13.88 to 13.88       5,637       0.00 to 0.00       1.15       19.29 to 19.29  
      2012       222       11.64 to 11.64       2,580       0.00 to 0.00       2.47       12.58 to 7.54  

Emerging Markets Value Trust Series I

       2016         4         13.47 to 13.47         49         0.00 to 0.00         5.49         18.00 to 18.00  
      2015       4       11.41 to 11.41       43       0.00 to 0.00       2.40       (19.07) to (19.07 ) 
      2014       0       14.10 to 14.10       5       0.00 to 0.00       1.85       (5.50) to (5.50 ) 
      2013       0       14.93 to 14.93       6       0.00 to 0.00       1.28       (3.22) to (3.22 ) 
      2012       0       15.42 to 15.42       7       0.00 to 0.00       0.83       18.53 to 18.53  

Emerging Markets Value Trust Series NAV

       2016         69         10.83 to 10.83         746         0.00 to 0.00         2.52         18.09 to 18.09  
      2015       84       9.17 to 9.17       766       0.00 to 0.00       1.54       (19.05) to (19.05 ) 
      2014       229       11.32 to 11.32       2,590       0.00 to 0.00       1.85       (5.37) to (7.51 ) 
      2013       247       11.97 to 11.97       2,956       0.00 to 0.00       1.35       (3.18) to (3.18 ) 
      2012       240       12.36 to 12.36       2,970       0.00 to 0.00       1.20       18.49 to 14.09  

Equity Income Trust Series I

       2016  (f)        17         30.83 to 30.83         518         0.00 to 0.00         2.24         19.12 to 19.12  
      2015       20       25.88 to 25.88       517       0.00 to 0.00       1.86       (6.75) to (6.75 ) 
      2014       23       27.75 to 27.75       630       0.00 to 0.00       1.69       7.47 to 7.47  
      2013       31       25.82 to 25.82       806       0.00 to 0.00       1.85       30.04 to 30.04  
      2012       35       19.86 to 19.86       698       0.00 to 0.00       2.12       17.36 to 17.36  

Equity Income Trust Series NAV

       2016  (g)        103         51.00 to 51.00         5,239         0.00 to 0.00         2.32         19.18 to 19.18  
      2015       106       42.79 to 42.79       4,555       0.00 to 0.00       1.74       (6.66) to (6.66 ) 
      2014       146       45.85 to 45.85       6,715       0.00 to 0.00       1.82       7.55 to 4.38  
      2013       162       42.63 to 42.63       6,921       0.00 to 0.00       2.00       30.05 to 30.05  
      2012       184       32.78 to 32.78       6,016       0.00 to 0.00       2.46       17.47 to 10.80  

Financial Industries Trust Series I

       2016         4         27.49 to 27.49         104         0.00 to 0.00         1.28         19.37 to 19.37  
      2015       7       23.03 to 23.03       150       0.00 to 0.00       1.00       (2.65) to (2.65 ) 
      2014       6       23.65 to 23.65       141       0.00 to 0.00       0.70       8.65 to 8.65  

 

73

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

7.

Unit Values — (continued)

 

        At December 31,   For the years and periods ended December 31,

Sub-account

   Year   Units
(000s)		   Unit Fair Value
Highest to Lowest (a)		   Assets
(000s)		   Expense Ratio
Highest to Lowest (b)		   Investment
Income Ratio (c)		   Total Return
Highest to Lowest (d)

Financial Industries Trust Series I

       2013         7       $ 21.77 to $ 21.77       $ 142         0.00% to 0.00 %        0.65 %        30.75% to 30.75 % 
      2012         7         16.65 to 16.65         111         0.00 to 0.00         0.80         18.05 to 18.05  

Financial Industries Trust Series NAV

       2016         16         33.13 to 33.13         540         0.00 to 0.00         1.54         19.47 to 19.47  
      2015         18         27.73 to 27.73         491         0.00 to 0.00         1.08         (2.58) to (2.58 ) 
      2014         17         28.46 to 28.46         488         0.00 to 0.00         0.78         8.64 to 6.56  
      2013         17         26.20 to 26.20         447         0.00 to 0.00         0.74         30.86 to 30.86  
      2012         16         20.02 to 20.02         312         0.00 to 0.00         0.68         18.03 to 8.06  

Franklin Templeton Founding Allocation Trust Series I

       2016  (o)        0         14.76 to 14.76         0         0.00 to 0.00         2.32         7.99 to 7.99  
      2015         0         13.67 to 13.67         1         0.00 to 0.00         2.45         (5.80) to (5.80 ) 
      2014         0         14.51 to 14.51         2         0.00 to 0.00         2.94         3.01 to 3.01  
      2013         0         14.09 to 14.09         2         0.00 to 0.00         21.24         24.43 to 24.43  
      2012         0         11.32 to 11.32         0         0.00 to 0.00         0.00         16.26 to 16.26  

Franklin Templeton Founding Allocation Trust Series NAV

       2016  (p)        0         14.82 to 14.82         0         0.00 to 0.00         2.94         8.09 to 8.09  
      2015         200         13.71 to 13.71         2,743         0.00 to 0.00         3.11         (5.75) to (5.75 ) 
      2014         168         14.55 to 14.55         2,450         0.00 to 0.00         3.55         3.06 to (1.98 ) 
      2013         134         14.12 to 14.12         1,891         0.00 to 0.00         2.82         24.51 to 24.51  
      2012         107         11.34 to 11.34         1,216         0.00 to 0.00         4.11         16.33 to 12.32  

Fundamental All Cap Core Trust Series I

       2016         0         41.10 to 41.10         1         0.00 to 0.00         0.61         8.34 to 8.34  
      2015         0         37.93 to 37.93         4         0.00 to 0.00         0.00         4.01 to 4.01  
      2014         1         36.47 to 36.47         39         0.00 to 0.00         0.41         9.75 to 9.75  
      2013         1         33.23 to 33.23         35         0.00 to 0.00         0.34         35.88 to 35.88  
      2012         0         24.46 to 24.46         0         0.00 to 0.00         0.47         23.52 to 23.52  

Fundamental All Cap Core Trust Series NAV

       2016         26         24.44 to 24.44         623         0.00 to 0.00         0.73         8.40 to 8.40  
      2015         18         22.55 to 22.55         414         0.00 to 0.00         0.00         4.09 to 4.09  
      2014         16         21.66 to 21.66         352         0.00 to 0.00         0.44         11.86 to 9.81  
      2013         27         19.73 to 19.73         531         0.00 to 0.00         1.14         35.87 to 35.87  
      2012         12         14.52 to 14.52         173         0.00 to 0.00         0.35         23.67 to 15.03  

Fundamental Large Cap Value Trust Series I

       2016         25         30.90 to 30.90         765         0.00 to 0.00         2.06         10.17 to 10.17  
      2015         29         28.05 to 28.05         801         0.00 to 0.00         1.02         (1.11) to (1.11 ) 
      2014         32         28.36 to 28.36         900         0.00 to 0.00         1.59         10.61 to 10.61  
      2013         5         25.64 to 25.64         135         0.00 to 0.00         0.00         32.41 to 32.41  

Fundamental Large Cap Value Trust Series NAV

       2016         109         21.77 to 21.77         2,375         0.00 to 0.00         2.34         10.21 to 10.21  
      2015         111         19.75 to 19.75         2,187         0.00 to 0.00         1.13         (1.06) to (1.06 ) 
      2014         105         19.96 to 19.96         2,105         0.00 to 0.00         0.87         10.66 to 7.82  
      2013         69         18.04 to 18.04         1,252         0.00 to 0.00         1.49         32.46 to 32.46  
      2012         3         13.62 to 13.62         35         0.00 to 0.00         2.01         24.48 to 16.71  

Global Bond Trust Series I

       2016         11         21.44 to 21.44         230         0.00 to 0.00         0.00         3.05 to 3.05  
      2015         10         20.80 to 20.80         207         0.00 to 0.00         2.60         (3.50) to (3.50 ) 
      2014         8         21.56 to 21.56         180         0.00 to 0.00         0.98         2.28 to 2.28  
      2013         8         21.08 to 21.08         170         0.00 to 0.00         0.42         (5.42) to (5.42 ) 
      2012         11         22.28 to 22.28         235         0.00 to 0.00         6.83         7.03 to 7.03  

Global Bond Trust Series NAV

       2016         31         30.66 to 30.66         953         0.00 to 0.00         0.00         3.15 to 3.15  
      2015         32         29.73 to 29.73         946         0.00 to 0.00         2.69         (3.51) to (3.51 ) 
      2014         33         30.81 to 30.81         1,021         0.00 to 0.00         1.05         2.42 to (1.88 ) 
      2013         31         30.08 to 30.08         921         0.00 to 0.00         0.34         (5.54) to (5.54 ) 
      2012         56         31.84 to 31.84         1,783         0.00 to 0.00         8.14         7.15 to 4.53  

Global Trust Series I

       2016         5         19.36 to 19.36         104         0.00 to 0.00         4.15         9.47 to 9.47  
      2015         10         17.68 to 17.68         184         0.00 to 0.00         1.86         (6.42) to (6.42 ) 
      2014         11         18.89 to 18.89         216         0.00 to 0.00         3.82         (2.60) to (2.60 ) 
      2013         5         19.40 to 19.40         103         0.00 to 0.00         0.27         31.08 to 31.08  
      2012         65         14.80 to 14.80         957         0.00 to 0.00         2.18         21.75 to 21.75  

Global Trust Series NAV

       2016         66         17.70 to 17.70         1,168         0.00 to 0.00         4.69         9.46 to 9.46  
      2015         66         16.17 to 16.17         1,073         0.00 to 0.00         1.97         (6.33) to (6.33 ) 
      2014         67         17.26 to 17.26         1,165         0.00 to 0.00         7.93         (2.51) to (6.31 ) 
      2013         7         17.70 to 17.70         130         0.00 to 0.00         1.77         31.04 to 31.04  
      2012         5         13.51 to 13.51         69         0.00 to 0.00         2.10         21.82 to 18.78  

Health Sciences Trust Series I

       2016         5         69.59 to 69.59         330         0.00 to 0.00         0.07         (10.57) to (10.57 ) 
      2015         4         77.81 to 77.81         346         0.00 to 0.00         0.00         12.69 to 12.69  
      2014         5         69.05 to 69.05         349         0.00 to 0.00         0.00         31.83 to 31.83  
      2013         6         52.38 to 52.38         293         0.00 to 0.00         0.00         51.07 to 51.07  
      2012         6         34.67 to 34.67         210         0.00 to 0.00         0.00         31.95 to 31.95  

Health Sciences Trust Series NAV

       2016         40         54.28 to 54.28         2,180         0.00 to 0.00         0.10         (10.54) to (10.54 ) 
      2015         40         60.67 to 60.67         2,419         0.00 to 0.00         0.00         12.76 to 12.76  
      2014         18         53.81 to 53.81         965         0.00 to 0.00         0.00         31.85 to 25.97  
      2013         20         40.81 to 40.81         833         0.00 to 0.00         0.00         51.24 to 51.24  
      2012         16         26.99 to 26.99         434         0.00 to 0.00         0.00         31.93 to 12.19  

High Yield Trust Series I

       2016         13         23.80 to 23.80         313         0.00 to 0.00         7.09         16.27 to 16.27  
      2015         14         20.47 to 20.47         285         0.00 to 0.00         7.50         (8.31) to (8.31 ) 
      2014         14         22.32 to 22.32         309         0.00 to 0.00         7.16         0.12 to 0.12  
      2013         10         22.30 to 22.30         230         0.00 to 0.00         6.83         8.53 to 8.53  

 

74

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

7.

Unit Values — (continued)

 

        At December 31,   For the years and periods ended December 31,

Sub-account

   Year   Units
(000s)		   Unit Fair Value
Highest to Lowest (a)		   Assets
(000s)		   Expense Ratio
Highest to Lowest (b)		   Investment
Income Ratio (c)		   Total Return
Highest to Lowest (d)

High Yield Trust Series I

       2012         11       $ 20.54 to $20.54       $ 235         0.00% to 0.00 %        7.93 %        18.98% to 18.98 % 

High Yield Trust Series NAV

       2016         132         22.57 to 22.57         2,982         0.00 to 0.00         8.21         16.56 to 16.56  
      2015         79         19.36 to 19.36         1,524         0.00 to 0.00         7.51         (8.38) to (8.38 ) 
      2014         78         21.14 to 21.14         1,652         0.00 to 0.00         6.91         0.00 to (3.67 ) 
      2013         74         21.14 to 21.14         1,571         0.00 to 0.00         3.08         8.68 to 8.68  
      2012         300         19.45 to 19.45         5,836         0.00 to 0.00         9.08         19.07 to 9.73  

International Core Trust Series I

       2016  (m)        0         14.48 to 14.48         0         0.00 to 0.00         24.24         1.23 to 1.23  
      2015         10         14.30 to 14.30         148         0.00 to 0.00         3.22         (5.45) to (5.45 ) 
      2014         9         15.13 to 15.13         129         0.00 to 0.00         4.23         (6.70) to (6.70 ) 
      2013         5         16.21 to 16.21         78         0.00 to 0.00         2.80         24.99 to 24.99  
      2012         6         12.97 to 12.97         80         0.00 to 0.00         2.96         15.05 to 15.05  

International Core Trust Series NAV

       2016  (n)        0         15.40 to 15.40         0         0.00 to 0.00         24.61         1.25 to 1.25  
      2015         78         15.21 to 15.21         1,192         0.00 to 0.00         3.16         (5.32) to (5.32 ) 
      2014         44         16.07 to 16.07         712         0.00 to 0.00         4.71         (6.76) to (11.03 ) 
      2013         22         17.23 to 17.23         374         0.00 to 0.00         3.16         25.13 to 25.13  
      2012         41         13.77 to 13.77         559         0.00 to 0.00         3.11         16.10 to 15.16  

International Equity Index Trust B Series I

       2016         19         11.39 to 11.39         217         0.00 to 0.00         2.75         4.45 to 4.45  
      2015         20         10.90 to 10.90         217         0.00 to 0.00         2.38         (5.91) to (5.91 ) 
      2014         21         11.58 to 11.58         239         0.00 to 0.00         3.03         (4.61) to (4.61 ) 
      2013         23         12.14 to 12.14         279         0.00 to 0.00         2.50         14.56 to 14.56  
      2012         25         10.60 to 10.60         262         0.00 to 0.00         6.95         6.02 to 6.02  

International Equity Index Trust B Series NAV

       2016         135         44.68 to 44.68         6,025         0.00 to 0.00         2.68         4.43 to 4.43  
      2015         143         42.78 to 42.78         6,099         0.00 to 0.00         2.85         (5.80) to (5.80 ) 
      2014         84         45.42 to 45.42         3,809         0.00 to 0.00         2.94         (4.57) to (7.23 ) 
      2013         98         47.59 to 47.59         4,652         0.00 to 0.00         2.52         14.54 to 14.54  
      2012         102         41.55 to 41.55         4,222         0.00 to 0.00         1.30         17.76 to 15.48  

International Growth Stock Trust Series I

       2016         12         11.98 to 11.98         143         0.00 to 0.00         1.76         (1.31) to (1.31 ) 
      2015         13         12.14 to 12.14         156         0.00 to 0.00         1.74         (2.27) to (2.27 ) 
      2014         12         12.42 to 12.42         155         0.00 to 0.00         1.73         0.20 to 0.20  
      2013         17         12.40 to 12.40         210         0.00 to 0.00         1.25         19.10 to 19.10  
      2012         16         10.41 to 10.41         169         0.00 to 0.00         4.01         4.08 to 4.08  

International Growth Stock Trust Series NAV

       2016         62         12.01 to 12.01         746         0.00 to 0.00         2.05         (1.19) to (1.19 ) 
      2015         41         12.16 to 12.16         493         0.00 to 0.00         1.82         (2.23) to (2.23 ) 
      2014         37         12.43 to 12.43         463         0.00 to 0.00         1.72         0.19 to (2.81 ) 
      2013         52         12.41 to 12.41         639         0.00 to 0.00         1.23         19.18 to 19.18  
      2012         54         10.41 to 10.41         557         0.00 to 0.00         4.25         4.12 to 4.12  

International Small Company Trust Series I

       2016         5         15.83 to 15.83         82         0.00 to 0.00         1.86         4.90 to 4.90  
      2015         2         15.09 to 15.09         35         0.00 to 0.00         1.78         6.54 to 6.54  
      2014         3         14.17 to 14.17         38         0.00 to 0.00         1.19         (6.89) to (6.89 ) 
      2013         3         15.22 to 15.22         50         0.00 to 0.00         1.89         26.34 to 26.34  
      2012         3         12.04 to 12.04         42         0.00 to 0.00         1.26         19.20 to 19.20  

International Small Company Trust Series NAV

       2016         69         15.89 to 15.89         1,100         0.00 to 0.00         2.05         4.95 to 4.95  
      2015         65         15.14 to 15.14         985         0.00 to 0.00         1.85         6.68 to 6.68  
      2014         45         14.19 to 14.19         640         0.00 to 0.00         1.56         (6.85) to (10.48 ) 
      2013         31         15.23 to 15.23         465         0.00 to 0.00         2.04         26.30 to 26.30  
      2012         27         12.06 to 12.06         325         0.00 to 0.00         0.93         19.23 to 12.82  

International Value Trust Series I

       2016         13         24.78 to 24.78         318         0.00 to 0.00         2.67         12.24 to 12.24  
      2015         10         22.08 to 22.08         215         0.00 to 0.00         1.72         (7.81) to (7.81 ) 
      2014         11         23.95 to 23.95         253         0.00 to 0.00         2.73         (12.51) to (12.51 ) 
      2013         12         27.37 to 27.37         331         0.00 to 0.00         0.79         26.15 to 26.15  
      2012         48         21.70 to 21.70         1,038         0.00 to 0.00         2.76         19.38 to 19.38  

International Value Trust Series NAV

       2016         100         15.99 to 15.99         1,596         0.00 to 0.00         4.13         12.20 to 12.20  
      2015         40         14.25 to 14.25         576         0.00 to 0.00         1.80         (7.72) to (7.72 ) 
      2014         57         15.44 to 15.44         877         0.00 to 0.00         3.29         (12.47) to (14.40 ) 
      2013         24         17.64 to 17.64         429         0.00 to 0.00         1.95         26.21 to 26.21  
      2012         20         13.98 to 13.98         285         0.00 to 0.00         2.82         19.59 to 19.36  

Investment Quality Bond Trust Series I

       2016         13         23.86 to 23.86         307         0.00 to 0.00         2.39         4.29 to 4.29  
      2015         10         22.88 to 22.88         236         0.00 to 0.00         1.86         (0.82) to (0.82 ) 
      2014         12         23.06 to 23.06         286         0.00 to 0.00         3.24         5.47 to 5.47  
      2013         10         21.87 to 21.87         222         0.00 to 0.00         3.90         (1.92) to (1.92 ) 
      2012         10         22.29 to 22.29         218         0.00 to 0.00         1.92         7.59 to 7.59  

Investment Quality Bond Trust Series NAV

       2016         32         16.55 to 16.55         521         0.00 to 0.00         2.49         4.26 to 4.26  
      2015         16         15.87 to 15.87         253         0.00 to 0.00         1.72         (0.68) to (0.68 ) 
      2014         20         15.98 to 15.98         316         0.00 to 0.00         4.08         5.54 to 2.04  
      2013         10         15.14 to 15.14         157         0.00 to 0.00         0.41         (1.88) to (1.88 ) 
      2012         158         15.43 to 15.43         2,439         0.00 to 0.00         3.52         7.66 to 4.09  

Lifestyle Aggressive MVP Series I

       2016         23         19.61 to 19.61         454         0.00 to 0.00         1.76         1.95 to 1.95  
      2015         22         19.23 to 19.23         421         0.00 to 0.00         1.38         (5.85) to (5.85 ) 
      2014         32         20.43 to 20.43         654         0.00 to 0.00         2.92         1.40 to 1.40  
      2013         30         20.14 to 20.14         607         0.00 to 0.00         2.58         26.72 to 26.72  

 

75

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

7.

Unit Values — (continued)

 

        At December 31,   For the years and periods ended December 31,

Sub-account

   Year   Units
(000s)		   Unit Fair Value
Highest to Lowest (a)		   Assets
(000s)		   Expense Ratio
Highest to Lowest (b)		   Investment
Income Ratio (c)		   Total Return
Highest to Lowest (d)

Lifestyle Aggressive MVP Series I

       2012         28       $ 15.90 to $15.90       $ 452         0.00% to 0.00 %        1.50 %        16.61% to 16.61 % 

Lifestyle Aggressive MVP Series NAV

       2016         700         17.93 to 17.93         12,546         0.00 to 0.00         1.77         1.89 to 1.89  
      2015         673         17.59 to 17.59         11,834         0.00 to 0.00         2.23         (5.79) to (5.79 ) 
      2014         578         18.67 to 18.67         10,794         0.00 to 0.00         3.04         1.54 to 0.53  
      2013         532         18.39 to 18.39         9,781         0.00 to 0.00         2.74         26.77 to 26.77  
      2012         569         14.51 to 14.51         8,248         0.00 to 0.00         1.68         16.67 to 9.51  

Lifestyle Aggressive Trust PS Series NAV

       2016         14         11.65 to 11.65         161         0.00 to 0.00         11.95         9.59 to 9.59  
      2015         0         10.63 to 10.63         1         0.00 to 0.00         2.01         (1.51) to (1.51 ) 
      2014         0         10.80 to 10.80         1         0.00 to 0.00         3.98         5.46 to 5.46  

Lifestyle Balanced MVP Series I

       2016         206         23.98 to 23.98         4,948         0.00 to 0.00         2.10         4.80 to 4.80  
      2015         215         22.88 to 22.88         4,907         0.00 to 0.00         2.42         (2.25) to (2.25 ) 
      2014         220         23.40 to 23.40         5,157         0.00 to 0.00         2.87         4.29 to 4.29  
      2013         225         22.44 to 22.44         5,048         0.00 to 0.00         2.86         12.79 to 12.79  
      2012         231         19.90 to 19.90         4,592         0.00 to 0.00         2.28         11.87 to 11.87  

Lifestyle Balanced MVP Series NAV

       2016         1,973         18.02 to 18.02         35,568         0.00 to 0.00         2.21         4.91 to 4.91  
      2015         1,939         17.18 to 17.18         33,314         0.00 to 0.00         2.63         (2.20) to (2.20 ) 
      2014         1,770         17.57 to 17.57         31,088         0.00 to 0.00         3.14         4.25 to 1.81  
      2013         1,553         16.85 to 16.85         26,170         0.00 to 0.00         3.07         12.89 to 12.89  
      2012         1,423         14.93 to 14.93         21,243         0.00 to 0.00         2.62         11.90 to 6.76  

Lifestyle Balanced Trust PS Series NAV

       2016         101         11.39 to 11.39         1,148         0.00 to 0.00         3.27         6.17 to 6.17  
      2015         56         10.73 to 10.73         600         0.00 to 0.00         3.19         0.10 to 0.10  
      2014         27         10.72 to 10.72         293         0.00 to 0.00         10.52         5.94 to 5.94  

Lifestyle Conservative MVP Series I

       2016         3         24.15 to 24.15         64         0.00 to 0.00         2.06         4.58 to 4.58  
      2015         6         23.10 to 23.10         135         0.00 to 0.00         2.49         0.05 to 0.05  
      2014         7         23.08 to 23.08         153         0.00 to 0.00         2.83         5.01 to 5.01  
      2013         7         21.98 to 21.98         149         0.00 to 0.00         3.50         3.88 to 3.88  
      2012         7         21.16 to 21.16         147         0.00 to 0.00         2.87         8.52 to 8.52  

Lifestyle Conservative MVP Series NAV

       2016         186         17.17 to 17.17         3,186         0.00 to 0.00         2.55         4.53 to 4.53  
      2015         180         16.43 to 16.43         2,960         0.00 to 0.00         2.79         0.18 to 0.18  
      2014         183         16.40 to 16.40         3,001         0.00 to 0.00         2.73         4.98 to 2.14  
      2013         214         15.62 to 15.62         3,346         0.00 to 0.00         3.65         3.99 to 3.99  
      2012         232         15.02 to 15.02         3,482         0.00 to 0.00         3.29         8.55 to 4.72  

Lifestyle Conservative Trust PS Series NAV

       2016         8         11.07 to 11.07         88         0.00 to 0.00         3.10         4.36 to 4.36  
      2015         7         10.61 to 10.61         75         0.00 to 0.00         2.96         0.22 to 0.22  
      2014         5         10.59 to 10.59         57         0.00 to 0.00         11.74         5.67 to 5.67  

Lifestyle Growth MVP Series I

       2016         94         21.56 to 21.56         2,018         0.00 to 0.00         1.77         3.34 to 3.34  
      2015         101         20.87 to 20.87         2,116         0.00 to 0.00         2.16         (4.53) to (4.53 ) 
      2014         104         21.86 to 21.86         2,279         0.00 to 0.00         2.76         2.16 to 2.16  
      2013         106         21.40 to 21.40         2,272         0.00 to 0.00         2.54         19.34 to 19.34  
      2012         106         17.93 to 17.93         1,897         0.00 to 0.00         1.87         13.87 to 13.87  

Lifestyle Growth MVP Series NAV

       2016         1,902         17.78 to 17.78         33,819         0.00 to 0.00         1.98         3.38 to 3.38  
      2015         1,837         17.20 to 17.20         31,597         0.00 to 0.00         2.31         (4.55) to (4.55 ) 
      2014         1,752         18.02 to 18.02         31,572         0.00 to 0.00         3.00         2.28 to 0.59  
      2013         1,626         17.62 to 17.62         28,644         0.00 to 0.00         2.71         19.38 to 19.38  
      2012         1,480         14.76 to 14.76         21,846         0.00 to 0.00         2.00         13.91 to 7.98  

Lifestyle Growth Trust PS Series I

       2016  (h)        0         10.20 to 10.20         1         0.00 to 0.00         9.22         1.99 to 1.99  

Lifestyle Growth Trust PS Series NAV

       2016         410         11.59 to 11.59         4,748         0.00 to 0.00         5.87         7.22 to 1.99  
      2015         73         10.81 to 10.81         786         0.00 to 0.00         3.37         0.00 to 0.00  
      2014         28         10.81 to 10.81         297         0.00 to 0.00         11.24         6.23 to 6.23  

Lifestyle Moderate MVP Series I

       2016         33         24.33 to 24.33         810         0.00 to 0.00         2.07         5.29 to 5.29  
      2015         38         23.11 to 23.11         880         0.00 to 0.00         2.49         (0.91) to (0.91 ) 
      2014         40         23.32 to 23.32         943         0.00 to 0.00         2.83         4.94 to 4.94  
      2013         43         22.22 to 22.22         961         0.00 to 0.00         2.93         10.22 to 10.22  
      2012         45         20.16 to 20.16         910         0.00 to 0.00         2.38         10.67 to 10.67  

Lifestyle Moderate MVP Series NAV

       2016         462         18.03 to 18.03         8,336         0.00 to 0.00         2.31         5.25 to 5.25  
      2015         443         17.13 to 17.13         7,592         0.00 to 0.00         2.66         (0.86) to (0.86 ) 
      2014         355         17.27 to 17.27         6,125         0.00 to 0.00         3.03         4.99 to 2.38  
      2013         345         16.45 to 16.45         5,683         0.00 to 0.00         3.70         10.26 to 10.26  
      2012         270         14.92 to 14.92         4,035         0.00 to 0.00         1.66         10.70 to 5.97  

Lifestyle Moderate Trust PS Series NAV

       2016         63         11.29 to 11.29         708         0.00 to 0.00         3.12         5.54 to 5.54  
      2015         37         10.69 to 10.69         399         0.00 to 0.00         3.16         0.14 to 0.14  
      2014         21         10.68 to 10.68         227         0.00 to 0.00         9.70         5.88 to 5.88  

M Capital Appreciation (e)

       2016         4         96.21 to 96.21         384         0.00 to 0.00         0.00         21.06 to 21.06  
      2015         4         79.47 to 79.47         309         0.00 to 0.00         0.00         (6.58) to (6.58 ) 
      2014         2         85.07 to 85.07         169         0.00 to 0.00         0.00         12.42 to 9.01  
      2013         1         75.67 to 75.67         55         0.00 to 0.00         0.00         39.20 to 39.20  
      2012         0         54.36 to 54.36         5         0.00 to 0.00         0.39         17.43 to 8.43  

 

76

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

7.

Unit Values — (continued)

 

        At December 31,   For the years and periods ended December 31,

Sub-account

   Year   Units
(000s)		   Unit Fair Value
Highest to Lowest (a)		   Assets
(000s)		   Expense Ratio
Highest to Lowest (b)		   Investment
Income Ratio (c)		   Total Return
Highest to Lowest (d)

M International Equity (e)

       2016         16       $ 31.73 to $31.73       $ 515         0.00% to 0.00 %        1.39 %        (0.05)% to (0.05) % 
      2015         13         31.74 to 31.74         415         0.00 to 0.00         2.01         (3.94) to (3.94 ) 
      2014         8         33.05 to 33.05         253         0.00 to 0.00         3.55         (7.06) to (10.07 ) 
      2013         3         35.56 to 35.56         111         0.00 to 0.00         3.81         16.32 to 16.32  
      2012         1         30.57 to 30.57         39         0.00 to 0.00         2.44         20.68 to 14.03  

M Large Cap Growth(e)

       2016         14         52.82 to 52.82         717         0.00 to 0.00         0.00         (2.32) to (2.32 ) 
      2015         10         54.08 to 54.08         555         0.00 to 0.00         0.03         7.70 to 7.70  
      2014         6         50.21 to 50.21         306         0.00 to 0.00         0.06         12.53 to 10.21  
      2013         3         45.56 to 45.56         136         0.00 to 0.00         0.61         36.15 to 36.15  
      2012         2         33.46 to 33.46         56         0.00 to 0.00         0.05         19.31 to 7.49  

M Large Cap Value(e)

       2016         23         25.98 to 25.98         598         0.00 to 0.00         1.78         9.64 to 9.64  
      2015         27         23.69 to 23.69         628         0.00 to 0.00         1.63         (0.66) to (0.66 ) 
      2014         14         23.85 to 23.85         323         0.00 to 0.00         2.01         9.68 to 5.84  
      2013         4         21.75 to 21.75         85         0.00 to 0.00         3.52         34.22 to 34.22  
      2012         1         16.20 to 16.20         21         0.00 to 0.00         0.88         17.29 to 10.97  

Mid Cap Index Trust Series I

       2016         8         49.24 to 49.24         370         0.00 to 0.00         1.26         20.11 to 20.11  
      2015         7         40.99 to 40.99         289         0.00 to 0.00         1.08         (2.60) to (2.60 ) 
      2014         7         42.08 to 42.08         299         0.00 to 0.00         0.96         9.35 to 9.35  
      2013         9         38.49 to 38.49         334         0.00 to 0.00         1.08         33.03 to 33.03  
      2012         8         28.93 to 28.93         243         0.00 to 0.00         1.47         17.48 to 17.48  

Mid Cap Index Trust Series NAV

       2016         99         32.32 to 32.32         3,184         0.00 to 0.00         1.22         20.17 to 20.17  
      2015         118         26.89 to 26.89         3,174         0.00 to 0.00         1.08         (2.54) to (2.54 ) 
      2014         128         27.60 to 27.60         3,524         0.00 to 0.00         1.00         9.40 to 6.47  
      2013         145         25.23 to 25.23         3,653         0.00 to 0.00         1.18         33.09 to 33.09  
      2012         139         18.95 to 18.95         2,630         0.00 to 0.00         1.69         17.54 to 8.00  

Mid Cap Stock Trust Series I

       2016         8         35.09 to 35.09         287         0.00 to 0.00         0.00         0.59 to 0.59  
      2015         10         34.88 to 34.88         347         0.00 to 0.00         0.00         3.00 to 3.00  
      2014         13         33.87 to 33.87         437         0.00 to 0.00         0.11         8.02 to 8.02  
      2013         13         31.35 to 31.35         392         0.00 to 0.00         0.04         36.82 to 36.82  
      2012         13         22.92 to 22.92         296         0.00 to 0.00         0.00         22.21 to 22.21  

Mid Cap Stock Trust Series NAV

       2016         16         76.41 to 76.41         1,249         0.00 to 0.00         0.00         0.58 to 0.58  
      2015         16         75.96 to 75.96         1,206         0.00 to 0.00         0.00         3.04 to 3.04  
      2014         14         73.72 to 73.72         1,049         0.00 to 0.00         0.15         9.25 to 8.11  
      2013         13         68.19 to 68.19         912         0.00 to 0.00         0.07         36.84 to 36.84  
      2012         18         49.83 to 49.83         887         0.00 to 0.00         0.00         22.34 to 8.31  

Mid Value Trust Series I

       2016         8         31.12 to 31.12         264         0.00 to 0.00         1.09         24.02 to 24.02  
      2015         9         25.09 to 25.09         219         0.00 to 0.00         1.12         (3.43) to (3.43 ) 
      2014         10         25.98 to 25.98         248         0.00 to 0.00         0.74         10.60 to 10.60  
      2013         10         23.49 to 23.49         227         0.00 to 0.00         1.06         31.39 to 31.39  
      2012         11         17.88 to 17.88         204         0.00 to 0.00         0.82         19.53 to 19.53  

Mid Value Trust Series NAV

       2016         19         47.84 to 47.84         885         0.00 to 0.00         1.26         24.09 to 24.09  
      2015         17         38.55 to 38.55         649         0.00 to 0.00         1.20         (3.41) to (3.41 ) 
      2014         16         39.91 to 39.91         651         0.00 to 0.00         0.68         10.70 to 4.90  
      2013         26         36.05 to 36.05         949         0.00 to 0.00         1.10         31.47 to 31.47  
      2012         44         27.42 to 27.42         1,196         0.00 to 0.00         1.00         19.54 to 12.75  

Money Market Trust B Series NAV

       2016 (q)         0         17.38 to 17.38         0         0.00 to 0.00         0.13         0.05 to 0.05  
      2015         299         17.37 to 17.37         5,198         0.00 to 0.00         0.00         0.00 to 0.00  
      2014         279         17.37 to 17.37         4,846         0.00 to 0.00         0.00         0.00 to 0.00  
      2013         376         17.37 to 17.37         6,537         0.00 to 0.00         0.01         0.01 to 0.01  
      2012         438         17.37 to 17.37         7,610         0.00 to 0.00         0.04         0.03 to 0.03  

Money Market Trust Series I

       2016         165         13.46 to 13.46         2,218         0.00 to 0.00         0.07         0.04 to 0.04  
      2015         170         13.46 to 13.46         2,285         0.00 to 0.00         0.00         0.00 to 0.00  
      2014         202         13.46 to 13.46         2,725         0.00 to 0.00         0.00         0.00 to 0.00  
      2013         203         13.46 to 13.46         2,731         0.00 to 0.00         0.00         0.01 to 0.01  
      2012         74         13.46 to 13.46         1,002         0.00 to 0.00         0.00         0.01 to 0.01  

Money-Market Trust Series NAV

       2016 (e)         488         10.00 to 10.00         4,882         0.00 to 0.00         0.15         0.05 to 0.05  

PIMCO All Asset(e)

       2016         95         22.84 to 16.18         1,534         0.00 to 0.00         2.15         12.59 to 12.59  
      2015         149         20.28 to 14.37         2,146         0.00 to 0.00         2.17         (9.31) to (9.32 ) 
      2014         314         22.37 to 15.84         4,983         0.00 to 0.00         4.91         0.24 to (3.88 ) 
      2013         309         22.31 to 15.81         4,889         0.00 to 0.00         4.24         (0.10) to (0.10 ) 
      2012         313         22.34 to 15.82         4,968         0.00 to 0.00         6.73         14.65 to 9.24  

Real Estate Securities Trust Series I

       2016         13         55.06 to 55.06         714         0.00 to 0.00         3.72         6.92 to 6.92  
      2015         13         51.50 to 51.50         695         0.00 to 0.00         1.89         2.67 to 2.67  
      2014         14         50.16 to 50.16         686         0.00 to 0.00         1.67         31.73 to 31.73  
      2013         13         38.08 to 38.08         506         0.00 to 0.00         1.98         (0.10) to (0.10 ) 
      2012         13         38.12 to 38.12         480         0.00 to 0.00         1.77         17.26 to 17.26  

Real Estate Securities Trust Series NAV

       2016         15         152.74 to 152.74         2,363         0.00 to 0.00         3.46         6.96 to 6.96  
      2015         16         142.80 to 142.80         2,280         0.00 to 0.00         1.62         2.80 to 2.80  
      2014         23         138.91 to 138.91         3,229         0.00 to 0.00         1.60         31.75 to 13.03  
      2013         28         105.43 to 105.43         2,959         0.00 to 0.00         1.97         (0.05) to (0.05 ) 

 

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

7.

Unit Values — (continued)

 

        At December 31,   For the years and periods ended December 31,

Sub-account

   Year   Units
(000s)		   Unit Fair Value
Highest to Lowest (a)		   Assets
(000s)		   Expense Ratio
Highest to Lowest (b)		   Investment
Income Ratio (c)		   Total Return
Highest to Lowest (d)

Real Estate Securities Trust Series NAV

       2012         31       $ 105.48 to $105.48       $ 3,238         0.00% to 0.00 %        1.96 %        17.33% to 4.78 % 

Real Return Bond Trust Series I

       2016 (k)         0         21.85 to 21.85         0         0.00 to 0.00         0.00         3.91 to 3.91  
      2015         3         21.03 to 21.03         53         0.00 to 0.00         4.58         (2.95) to (2.95 ) 
      2014         2         21.67 to 21.67         36         0.00 to 0.00         2.97         4.76 to 4.76  
      2013         2         20.69 to 20.69         35         0.00 to 0.00         2.56         (9.28) to (9.28 ) 
      2012         2         22.80 to 22.80         41         0.00 to 0.00         1.76         8.86 to 8.86  

Real Return Bond Trust Series NAV

       2016 (l)         0         15.07 to 15.07         0         0.00 to 0.00         0.00         3.92 to 3.92  
      2015         69         14.50 to 14.50         996         0.00 to 0.00         6.61         (2.94) to (2.94 ) 
      2014         50         14.94 to 14.94         740         0.00 to 0.00         3.00         4.88 to 0.73  
      2013         64         14.24 to 14.24         910         0.00 to 0.00         2.70         (9.25) to (9.25 ) 
      2012         80         15.69 to 15.69         1,252         0.00 to 0.00         1.81         8.86 to 4.13  

Science & Technology Trust Series I

       2016         14         18.62 to 18.62         263         0.00 to 0.00         0.00         8.38 to 8.38  
      2015         16         17.18 to 17.18         272         0.00 to 0.00         0.00         6.69 to 6.69  
      2014         14         16.10 to 16.10         224         0.00 to 0.00         0.00         12.89 to 12.89  
      2013         16         14.26 to 14.26         228         0.00 to 0.00         0.00         43.52 to 43.52  
      2012         18         9.94 to 9.94         175         0.00 to 0.00         0.00         10.45 to 10.45  

Science & Technology Trust Series NAV

       2016         40         31.10 to 31.10         1,238         0.00 to 0.00         0.00         8.41 to 8.41  
      2015         31         28.68 to 28.68         877         0.00 to 0.00         0.00         6.78 to 6.78  
      2014         24         26.86 to 26.86         639         0.00 to 0.00         0.00         14.24 to 12.95  
      2013         29         23.78 to 23.78         688         0.00 to 0.00         0.00         43.55 to 43.55  
      2012         29         16.57 to 16.57         478         0.00 to 0.00         0.00         10.54 to 1.76  

Short Term Government Income Trust Series I

       2016         35         10.75 to 10.75         373         0.00 to 0.00         1.72         0.57 to 0.57  
      2015         28         10.69 to 10.69         299         0.00 to 0.00         1.75         0.65 to 0.65  
      2014         32         10.62 to 10.62         339         0.00 to 0.00         1.97         1.15 to 1.15  
      2013         38         10.50 to 10.50         399         0.00 to 0.00         2.07         (0.86) to (0.86 ) 
      2012         36         10.59 to 10.59         386         0.00 to 0.00         1.65         1.21 to 1.21  

Short Term Government Income Trust Series NAV

       2016         48         10.79 to 10.79         515         0.00 to 0.00         1.44         0.63 to 0.63  
      2015         51         10.72 to 10.72         549         0.00 to 0.00         1.76         0.69 to 0.69  
      2014         49         10.65 to 10.65         521         0.00 to 0.00         2.17         1.19 to 0.39  
      2013         41         10.52 to 10.52         431         0.00 to 0.00         1.97         (0.74) to (0.74 ) 
      2012         47         10.60 to 10.60         499         0.00 to 0.00         1.71         1.18 to 0.55  

Small Cap Growth Trust Series I

       2016         1         25.77 to 25.77         18         0.00 to 0.00         0.00         2.29 to 2.29  
      2015         3         25.19 to 25.19         85         0.00 to 0.00         0.00         (8.85) to (8.85 ) 
      2014         3         27.64 to 27.64         95         0.00 to 0.00         0.00         7.57 to 7.57  
      2013         1         25.69 to 25.69         29         0.00 to 0.00         0.00         44.08 to 44.08  
      2012         1         17.83 to 17.83         15         0.00 to 0.00         0.00         16.47 to 16.47  

Small Cap Growth Trust Series NAV

       2016         32         30.58 to 30.58         968         0.00 to 0.00         0.00         2.27 to 2.27  
      2015         37         29.90 to 29.90         1,102         0.00 to 0.00         0.00         (8.78) to (8.78 ) 
      2014         17         32.78 to 32.78         573         0.00 to 0.00         0.00         11.05 to 7.60  
      2013         16         30.46 to 30.46         481         0.00 to 0.00         0.00         44.22 to 44.22  
      2012         12         21.12 to 21.12         261         0.00 to 0.00         0.00         16.53 to 4.70  

Small Cap Index Trust Series I

       2016         4         37.55 to 37.55         151         0.00 to 0.00         1.23         20.98 to 20.98  
      2015         4         31.04 to 31.04         115         0.00 to 0.00         0.96         (4.58) to (4.58 ) 
      2014         5         32.52 to 32.52         159         0.00 to 0.00         0.94         4.59 to 4.59  
      2013         5         31.10 to 31.10         154         0.00 to 0.00         1.47         38.61 to 38.61  
      2012         5         22.43 to 22.43         115         0.00 to 0.00         2.02         16.09 to 16.09  

Small Cap Index Trust Series NAV

       2016         80         29.98 to 29.98         2,384         0.00 to 0.00         1.16         21.02 to 21.02  
      2015         102         24.77 to 24.77         2,528         0.00 to 0.00         1.07         (4.59) to (4.59 ) 
      2014         100         25.96 to 25.96         2,591         0.00 to 0.00         0.90         7.14 to 4.71  
      2013         117         24.79 to 24.79         2,912         0.00 to 0.00         1.55         38.75 to 38.75  
      2012         134         17.87 to 17.87         2,391         0.00 to 0.00         2.96         16.06 to 10.12  

Small Cap Opportunities Trust Series I

       2016         3         44.71 to 44.71         126         0.00 to 0.00         0.45         19.47 to 19.47  
      2015         3         37.42 to 37.42         113         0.00 to 0.00         0.09         (5.17) to (5.17 ) 
      2014         2         39.46 to 39.46         84         0.00 to 0.00         0.05         2.39 to 2.39  
      2013         3         38.54 to 38.54         127         0.00 to 0.00         0.63         40.16 to 40.16  
      2012         4         27.50 to 27.50         107         0.00 to 0.00         0.00         16.84 to 16.84  

Small Cap Opportunities Trust Series NAV

       2016         34         22.03 to 22.03         759         0.00 to 0.00         0.60         19.51 to 19.51  
      2015         68         18.44 to 18.44         1,247         0.00 to 0.00         0.12         (5.12) to (5.12 ) 
      2014         58         19.43 to 19.43         1,120         0.00 to 0.00         0.08         3.44 to 2.42  
      2013         53         18.97 to 18.97         1,010         0.00 to 0.00         0.51         40.28 to 40.28  
      2012         7         13.52 to 13.52         90         0.00 to 0.00         0.00         16.88 to 10.99  

Small Cap Value Trust Series I

       2016         3         29.76 to 29.76         96         0.00 to 0.00         0.66         22.67 to 22.67  
      2015         2         24.26 to 24.26         56         0.00 to 0.00         0.64         (1.36) to (1.36 ) 
      2014         0         24.60 to 24.60         10         0.00 to 0.00         0.71         7.18 to 7.18  
      2013         3         22.95 to 22.95         63         0.00 to 0.00         0.62         33.31 to 33.31  
      2012         2         17.21 to 17.21         40         0.00 to 0.00         0.81         15.70 to 15.70  

Small Cap Value Trust Series NAV

       2016         17         83.77 to 83.77         1,425         0.00 to 0.00         0.79         22.68 to 22.68  
      2015         16         68.28 to 68.28         1,098         0.00 to 0.00         0.56         (1.31) to (1.31 ) 
      2014         14         69.19 to 69.19         958         0.00 to 0.00         0.78         7.99 to 7.25  
      2013         11         64.51 to 64.51         741         0.00 to 0.00         0.66         33.33 to 33.33  

 

78

Table of Contents

JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

7.

Unit Values — (continued)

 

        At December 31,   For the years and periods ended December 31,

Sub-account

   Year   Units
(000s)		   Unit Fair Value
Highest to Lowest (a)		   Assets
(000s)		   Expense Ratio
Highest to Lowest (b)		   Investment
Income Ratio (c)		   Total Return
Highest to Lowest (d)

Small Cap Value Trust Series NAV

       2012         9       $ 48.39 to $48.39       $ 415         0.00% to 0.00 %       1.00 %        15.78% to 10.07 % 

Small Company Value Trust Series I

       2016         4         49.89 to 49.89         199         0.00 to 0.00         0.76         32.32 to 32.32  
      2015         5         37.71 to 37.71         173         0.00 to 0.00         1.26         (5.60) to (5.60 ) 
      2014         7         39.94 to 39.94         268         0.00 to 0.00         0.03         0.11 to 0.11  
      2013         9         39.90 to 39.90         348         0.00 to 0.00         1.71         31.61 to 31.61  
      2012         10         30.32 to 30.32         292         0.00 to 0.00         0.26         16.30 to 16.30  

Small Company Value Trust Series NAV

       2016         49         28.53 to 28.53         1,391         0.00 to 0.00         0.86         32.33 to 32.33  
      2015         48         21.56 to 21.56         1,037         0.00 to 0.00         1.85         (5.51) to (5.51 ) 
      2014         22         22.81 to 22.81         505         0.00 to 0.00         0.05         0.30 to 0.14  
      2013         37         22.78 to 22.78         837         0.00 to 0.00         1.78         31.68 to 31.68  
      2012         35         17.30 to 17.30         613         0.00 to 0.00         0.18         16.41 to 11.42  

Strategic Income Opportunities Trust Series I

       2016         5         27.48 to 27.48         144         0.00 to 0.00         2.24         5.12 to 5.12  
      2015         8         26.14 to 26.14         210         0.00 to 0.00         2.26         1.22 to 1.22  
      2014         11         25.83 to 25.83         295         0.00 to 0.00         4.12         5.06 to 5.06  
      2013         12         24.58 to 24.58         283         0.00 to 0.00         5.48         3.82 to 3.82  
      2012         13         23.68 to 23.68         312         0.00 to 0.00         6.85         12.86 to 12.86  

Strategic Income Opportunities Trust Series NAV

       2016         86         20.40 to 20.40         1,752         0.00 to 0.00         2.54         5.19 to 5.19  
      2015         130         19.39 to 19.39         2,527         0.00 to 0.00         1.35         1.27 to 1.27  
      2014         217         19.15 to 19.15         4,149         0.00 to 0.00         4.44         5.13 to 1.57  
      2013         237         18.22 to 18.22         4,311         0.00 to 0.00         5.95         3.81 to 3.81  
      2012         177         17.55 to 17.55         3,108         0.00 to 0.00         9.07         12.94 to 7.30  

Total Bond Market Trust B Series NAV

       2016         30         24.27 to 24.27         717         0.00 to 0.00         2.80         2.45 to 2.45  
      2015         26         23.69 to 23.69         623         0.00 to 0.00         3.85         0.30 to 0.30  
      2014         19         23.62 to 23.62         446         0.00 to 0.00         2.66         6.06 to 2.90  
      2013         16         22.27 to 22.27         355         0.00 to 0.00         3.15         (2.44) to (2.44 ) 
      2012         51         22.83 to 22.83         1,155         0.00 to 0.00         1.09         4.08 to 2.03  

Total Return Trust Series I

       2015         0         30.63 to 30.63         0         0.00 to 0.00         39.24         2.04 to 2.04  
      2014         23         30.02 to 30.02         691         0.00 to 0.00         3.32         4.74 to 4.74  
      2013         23         28.66 to 28.66         653         0.00 to 0.00         3.08         (2.03) to (2.03 ) 
      2012         25         29.26 to 29.26         736         0.00 to 0.00         1.97         8.49 to 8.49  

Total Return Trust Series NAV

       2015         0         18.34 to 18.34         0         0.00 to 0.00         34.74         1.71 to 1.71  
      2014         96         18.03 to 18.03         1,737         0.00 to 0.00         3.32         4.72 to 2.38  
      2013         117         17.22 to 17.22         2,010         0.00 to 0.00         3.59         (1.98) to (1.98 ) 
      2012         125         17.57 to 17.57         2,202         0.00 to 0.00         2.12         8.57 to 4.25  

Total Stock Market Index Trust Series I

       2016         6         26.73 to 26.73         154         0.00 to 0.00         1.53         12.38 to 12.38  
      2015         5         23.79 to 23.79         117         0.00 to 0.00         1.20         (0.64) to (0.64 ) 
      2014         8         23.94 to 23.94         187         0.00 to 0.00         1.19         11.47 to 11.47  
      2013         8         21.48 to 21.48         175         0.00 to 0.00         1.43         33.39 to 33.39  
      2012         9         16.10 to 16.10         138         0.00 to 0.00         1.46         15.50 to 15.50  

Total Stock Market Index Trust Series NAV

       2016         40         89.11 to 89.11         3,541         0.00 to 0.00         1.58         12.38 to 12.38  
      2015         35         79.30 to 79.30         2,747         0.00 to 0.00         1.46         (0.53) to (0.53 ) 
      2014         16         79.72 to 79.72         1,275         0.00 to 0.00         1.28         11.46 to 8.79  
      2013         15         71.52 to 71.52         1,074         0.00 to 0.00         1.80         33.45 to 33.45  
      2012         10         53.59 to 53.59         558         0.00 to 0.00         1.77         15.56 to 7.92  

U.S. Equity Trust Series I

       2016 (i)         0         15.49 to 15.49         0         0.00 to 0.00         6.95         5.29 to 5.29  
      2015         1         14.71 to 14.71         21         0.00 to 0.00         1.50         0.53 to 0.53  
      2014         5         14.63 to 14.63         72         0.00 to 0.00         1.44         11.03 to 11.03  
      2013         5         13.18 to 13.18         69         0.00 to 0.00         1.68         28.22 to 28.22  
      2012         7         10.28 to 10.28         77         0.00 to 0.00         2.13         2.77 to 2.77  

U.S. Equity Trust Series NAV

       2016 (j)         0         15.52 to 15.52         0         0.00 to 0.00         7.49         5.36 to 5.36  
      2015         47         14.73 to 14.73         697         0.00 to 0.00         2.02         0.52 to 0.52  
      2014         47         14.66 to 14.66         696         0.00 to 0.00         1.37         11.07 to 7.43  
      2013         63         13.20 to 13.20         831         0.00 to 0.00         1.74         28.36 to 28.36  
      2012         63         10.28 to 10.28         645         0.00 to 0.00         2.42         6.03 to 2.81  

Ultra Short Term Bond Trust Series I

       2016 (h)         2         10.10 to 10.10         24         0.00 to 0.00         1.92         0.52 to 0.52  

Ultra Short Term Bond Trust Series NAV

       2016         28         10.14 to 10.14         288         0.00 to 0.00         1.37         0.67 to 0.67  
      2015         10         10.07 to 10.07         103         0.00 to 0.00         1.37         0.01 to 0.01  
      2014         12         10.07 to 10.07         119         0.00 to 0.00         1.43         0.03 to (0.14 ) 
      2013         14         10.07 to 10.07         142         0.00 to 0.00         1.67         (0.02) to (0.02 ) 
      2012         6         10.07 to 10.07         65         0.00 to 0.00         1.88         0.66 to 0.17  

Utilities Trust Series I

       2016         3         35.43 to 35.43         110         0.00 to 0.00         5.37         11.35 to 11.35  
      2015         3         31.82 to 31.82         97         0.00 to 0.00         3.29         (14.76) to (14.76 ) 
      2014         3         37.33 to 37.33         95         0.00 to 0.00         3.34         12.59 to 12.59  
      2013         2         33.15 to 33.15         71         0.00 to 0.00         1.95         20.57 to 20.57  
      2012         3         27.50 to 27.50         95         0.00 to 0.00         3.70         13.66 to 13.66  

Utilities Trust Series NAV

       2016         34         28.37 to 28.37         959         0.00 to 0.00         4.60         11.43 to 11.43  
      2015         36         25.46 to 25.46         921         0.00 to 0.00         4.56         (14.79) to (14.79 ) 
      2014         31         29.88 to 29.88         923         0.00 to 0.00         3.10         12.72 to 2.31  
      2013         31         26.50 to 26.50         829         0.00 to 0.00         2.23         20.65 to 20.65  

 

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

7.

Unit Values — (continued)

 

        At December 31,   For the years and periods ended December 31,

Sub-account

   Year   Units
(000s)		   Unit Fair Value
Highest to Lowest (a)		   Assets
(000s)		   Expense Ratio
Highest to Lowest (b)		   Investment
Income Ratio (c)		   Total Return
Highest to Lowest (d)

Utilities Trust Series NAV

       2012         29       $ 21.97 to $21.97     $ 628         0.00% to 0.00 %        2.76 %        13.63% to 10.75 % 

Value Trust Series I

       2016         5         41.88 to 41.88         193         0.00 to 0.00         0.76         15.76 to 15.76  
      2015         6         36.18 to 36.18         218         0.00 to 0.00         0.52         (8.89) to (8.89 ) 
      2014         8         39.71 to 39.71         313         0.00 to 0.00         0.48         9.82 to 9.82  
      2013         9         36.16 to 36.16         323         0.00 to 0.00         0.84         35.39 to 35.39  
      2012         10         26.70 to 26.70         275         0.00 to 0.00         0.85         17.42 to 17.42  

Value Trust Series NAV

       2016         31         28.66 to 28.66         888         0.00 to 0.00         0.81         15.79 to 15.79  
      2015         32         24.75 to 24.75         792         0.00 to 0.00         0.66         (8.86) to (8.86 ) 
      2014         23         27.16 to 27.16         613         0.00 to 0.00         0.54         9.88 to 7.60  
      2013         25         24.72 to 24.72         608         0.00 to 0.00         0.98         35.44 to 35.44  
      2012         19         18.25 to 18.25         353         0.00 to 0.00         1.07         17.50 to 6.68  

 

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

7.

Unit Values — (continued)

 

(a)

As the unit fair value is presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract unit values are not within the ranges presented.

 

(b)

These ratios represent the annualized contract expenses of the separate account, consisting primarily of the items known as “Revenue from underlying fund (12b-1, STA, Other)” and “Revenue from Sub-account” (formerly referred to as the administrative maintenance charges and sales and service fees (AMC and SSF)). The ratios include only those expenses that result in a direct reduction to unit values. Charges made directly to unitholder accounts through the redemption of units and expenses of the underlying fund are excluded.

 

(c)

These ratios represent the distributions from net investment income received by the sub-account from the underlying Portfolio, net of management fees assessed by the portfolio manager, divided by the average net assets. These ratios exclude those expenses, such as mortality and expense charges, that are assessed against policyholder accounts either through the reductions in the unit values or the redemptions of units. The recognition of investment income by the sub-account is affected by the timing of the declaration of dividends by the underlying Portfolio in which the sub-accounts invest.

 

(d)

These ratios, represent the total return for the periods indicated, including changes in the value of the underlying Portfolio, and expenses assessed through the reduction of unit values. These ratios do not include any expenses assessed through the redemption of un its. Investment options indicated in footnote 1 with a date notation, if any, denote the effective date of that investment option in the variable account. The total return is calculated for the period indicated or from the effective date through the end of the reporting period. For closed sub-accounts, the total return is calculated from the beginning of the reporting period to the date the sub-account closed. As the total return is presented as a range of minimum to maximum values, based on the product grouping representing the minimum and maximum expense ratio amounts, some individual contract total returns are not within the ranges presented.

 

(e)

Reflects the period from commencement of operations on April 29, 2016 through December 31, 2016.

 

(f)

Renamed on May 2, 2016. Previously known as Equity-Income Trust Series I.

 

(g)

Renamed on May 2, 2016. Previously known as Equity-Income Trust Series NAV.

 

(h)

Sub-account available in prior year but no activity.

 

(i)

Terminated as an investment option and funds transferred to 500 Index Fund B Series I on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

(j)

Terminated as an investment option and funds transferred to 500 Index Fund B Series NAV on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

(k)

Terminated as an investment option and funds transferred to Bond Trust Series I on April 29, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

(l)

Terminated as an investment option and funds transferred to Bond Trust Series NAV on April 29, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

(m)

Terminated as an investment option and funds transferred to International Value Trust Series I on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

(n)

Terminated as an investment option and funds transferred to International Value Trust Series NAV on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

(o)

Terminated as an investment option and funds transferred to Lifestyle Growth Trust PS Series I on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

(p)

Terminated as an investment option and funds transferred to Lifestyle Growth Trust PS Series NAV on October 21, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

(q)

Terminated as an investment option and funds transferred to Money-Market Trust Series NAV on April 29, 2016. The information above represents operations and change in owner’s contract holder equities from beginning of the year through termination date.

 

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JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK SEPARATE ACCOUNT B

NOTES TO FINANCIAL STATEMENTS — (CONTINUED)

December 31, 2016

 

8.

Diversification Requirements

 

The Internal Revenue Service has issued regulations under Section 817(h) of the Internal Revenue Code (“the Code”). Under the provisions of Section 817(h) of the Code, a Contract will not be treated as a variable life contract for federal tax purposes for any period for which the investments of the Account on which the contract is based are not adequately diversified. The Code provides that the “adequately diversified” requirement may be met if the underlying investments satisfy either a statutory safe harbor test or diversification requirement set forth in regulations issued by the Secretary of the Treasury. The Company believes that the Account satisfies the current requirements of the regulations, and the Account will continue to meet such requirements.

 

9.

Contract Charges

The Company deducts certain charges from gross premiums before placing the remaining net premiums in the sub-account. In the event of a surrender by the contract holder, surrender charges may be levied by the Company against the contract value at the time of termination to cover sales and administrative expenses associated with underwriting and issuing the Contract. Additionally, each month a deduction consisting of an administrative charge, a charge for cost of insurance, and charges for supplementary benefits is deducted from the contract value. Contract charges are paid through the redemption of sub-accounts and are reflected as terminations.

 

82

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PART C
OTHER INFORMATION
Item 26. Exhibits
The following exhibits are filed as part of this Registration Statement:
(a) Resolution of Board of Directors establishing Separate Account B is incorporated by reference to post-effective amendment number 1, file number 333-157213, filed with the Commission in April 2010.
(b) Not applicable.
(c) (1) Underwriting and Distribution Agreement between John Hancock Life Insurance Company of New York and John Hancock Distributors LLC dated December 1, 2009, incorporated by reference to pre-effective amendment number 1 file number 333-157213, filed with the Commission in April 2010.
(2)(a) Specimen General Agent and Broker-Dealer Selling Agreement by and among John Hancock Life Insurance Company (U.S.A.) and John Hancock Distributors LLC effective August, 2009, incorporated by reference to pre-effective amendment number 2, file number 333-157212, filed with the Commission on April 26, 2011.
(b) List of third party broker-dealer firms included as Attachment A, incorporated by reference to post-effective amendment number 10, file number 333-179571, filed with the Commission in April, 2017.
(d)(1) Specimen Flexible Premium Variable Life Insurance policy, incorporated by reference to pre-effective amendment number 1, file number 333-152408, filed with the Commission on November 10, 2008, form of Policy Endorsement dated 2009, incorporated by reference to post-effective amendment number 2, file number 333-152407 filed with the Commission in April 2010 and forms of Policy Endorsement dated 2010, incorporated by reference to post-effective amendment number 3, file number 333-152408, filed with the Commission on May 28, 2010.
(2) Specimen Change of Life Insured Rider, incorporated by reference to pre-effective amendment number 2, file number 333-152408, filed with the Commission on November 12, 2008.
(3) Specimen Overloan Protection Rider, incorporated by reference to pre-effective amendment number 1, file number 333-152408, filed with the Commission on November 10, 2008.
(4) Specimen Return of Premium Death Benefit Rider, incorporated by reference to pre-effective amendment number 1, file number 333-152408, filed with the Commission on November 10, 2008.
(e)(1) Specimen policy application, incorporated by reference to pre-effective amendment number 1, file number 333-152408, filed with the Commission on November 10, 2008.
(2) Specimen policy application supplement, incorporated by reference to pre-effective amendment number 1, file number 333-152408, filed with the Commission on November 10, 2008.
(f) (1) Declaration of Intention and Charter of First North American Life Assurance Company dated January 30, 1992, incorporated by reference to post-effective amendment number 7, file number 33-46217, filed with the Commission on February 25, 1998.
(a) Certificate of Amendment of the Declaration of Intention and Charter of First North American Life Assurance Company dated March 6, 1992, incorporated by reference to post-effective amendment number 7, file number 33-46217, filed with the Commission on February 25, 1998.
(b) Certificate of Amendment of the Declaration of Intention and Charter of the The Manufacturers Life Insurance Company of New York dated October 1, 1997, incorporated by reference to post-effective amendment number 7, file number 33-46217, filed with the Commission on February 25, 1998.
(c) Certificate of Amendment of the Declaration of Intention and Charter of The Manufacturers Life Insurance Company of New York dated January 1, 2005, incorporated by reference to pre-effective amendment number 1, file number 333-127543, filed with the Commission on November 16, 2005.
(d) Certificate of Amendment of the Declaration of Intention and Charter of John Hancock Life Insurance Company of New York dated July 26, 2006, incorporated by reference to post-effective amendment number 1, file number 333-131134, filed with the Commission in April, 2007.
(e) Certificate of Amendment of the Declaration of Intention and Charter approved on August 20, 1997, incorporated by reference to post-effective amendment number 2, file number 333-157213, filed with the Commission in April 2011.
(f) Certificate of Amendment of the Declaration of Intention and Charter approved on August 28, 2002, incorporated by reference to post-effective amendment number 2, file number 333-157213, filed with the Commission in April 2011.

 

(g) Certificate of Amendment of the Declaration of Intention and Charter approved on November 20, 2009, incorporated by reference to post-effective amendment number 2, file number 333-157213, filed with the Commission in April 2011.
(2) By-laws of the John Hancock Life Insurance Company of New York (formerly, The Manufacturers Life Insurance Company of New York), incorporated by reference to Exhibit (6)(B) to post-effective amendment No. 7 file number 33-46217 filed with the Commission on February 25, 1998 on behalf of The Manufacturers Life Insurance Company of New York Separate Account A.
(a) Amendment to the By-Laws and Charter of John Hancock Life Insurance Company of New York dated November 17, 2005, incorporated by reference to post-effective amendment number 1 file number 333-131134 filed with the Commission in April, 2007.
(b) Amended and Restated By-Laws of John Hancock Life Insurance Company of New York dated December 14, 2010, incorporated by reference to post-effective amendment number 2, file number 333-157213, filed with the Commission in April 2011.
(g)(1) Reinsurance Agreement between John Hancock Life Insurance Company of New York and Optimum Re Insurance Company, incorporated by reference to pre-effective amendment number 2, file number 333-152408, filed with the Commission on November 21, 2008.
(2) Reinsurance Agreement between John Hancock Life Insurance Company of New York and Transamerica Financial Life Insurance Company, incorporated by reference to pre-effective amendment number 2, file number 333-152408, filed with the Commission on November 21, 2008.
(3) Reinsurance Agreement between John Hancock Life Insurance Company of New York and Munich American Reassurance Company, incorporated by reference to pre-effective amendment number 2, file number 333-152408, filed with the Commission on November 21, 2008.
(4) Reinsurance Agreement between John Hancock Life Insurance Company of New York and Generali USA Life Reassurance Company, incorporated by reference to pre-effective amendment number 2, file number 333-152408, filed with the Commission on November 21, 2008.
(5) Reinsurance Agreement between John Hancock Life Insurance Company of New York and Hannover Life Reassurance Company of America, incorporated by reference to pre-effective amendment number 2, file number 333-152408, filed with the Commission on November 21, 2008.
(6) Reinsurance Agreement between John Hancock Life Insurance Company of New York and Swiss Re Life & Health America Inc., incorporated by reference to pre-effective amendment number 2, file number 333-152408, filed with the Commission on November 21, 2008.
(7) Reinsurance Agreement between John Hancock Life Insurance Company of New York and Hanover Life Reassurance Company of America, incorporated by reference to post-effective amendment number 5, file number 333-179571, filed with the Commission on December 6, 2013.
(8) Reinsurance Agreement between John Hancock Life Insurance Company of New York and Generali USA Life Reassurance Company of America, incorporated by reference to post-effective amendment number 5, file number 333-179571, filed with the Commission on December 6, 2013.
(9) Reinsurance Agreement between John Hancock Life Insurance Company of New York and RGA Reinsurance Company, incorporated by reference to post-effective amendment number 5, file number 333-179571, filed with the Commission on December 6, 2013.
(h) (1) Participation Agreement among The Manufacturers Life Insurance Company (U.S.A.), The Manufacturers Insurance Company of New York, PIMCO Variable Insurance Trust and PIMCO Advisors Distributors LLC dated April 30, 2004, incorporated by reference to pre-effective amendment number 1, file number 333-126668, filed with the Commission on October 12, 2005.
(2) Participation Agreement among John Hancock Life Insurance Company (U.S.A.), John Hancock Life Insurance Company of New York, and John Hancock Trust dated April 20, 2005, incorporated by reference to pre-effective amendment number 1, file number 333-126668, filed with the Commission on October 12, 2005.
(3) Participation Agreement among John Hancock Life Insurance Company (U.S.A.), John Hancock Life Insurance Company of New York, and M Financial Investment Advisers, Inc. dated November 13, 2009, incorporated by reference to file number 333-164150, filed with the Commission on January 4, 2010.
(4) Shareholder Information Agreement between John Hancock Life Insurance Company (U.S.A.), John Hancock Life Insurance Company of New York, John Hancock Life Insurance Company, John Hancock Variable Life Insurance, and John

 

Hancock Trust portfolios (except American Funds Insurance Series) dated April 16, 2007, incorporated by reference to post-effective amendment number 9, file number 333-85284, filed with the Commission in April, 2007.
(5) Shareholder Information Agreement between John Hancock Life Insurance Company (U.S.A.), John Hancock Life Insurance Company of New York, John Hancock Life Insurance Company, John Hancock Variable Life Insurance, and John Hancock Trust on behalf of series of the Trust that are feeder funds of the American Funds Insurance Series dated April 16, 2007, incorporated by reference to post-effective amendment number 9, file number 333-85284, filed with the Commission in April, 2007.
(i) (1) Administrative Services Agreement between John Hancock Life Insurance Company (U.S.A.) (formerly, The Manufacturers Life Insurance Company (U.S.A.)) and John Hancock Life Insurance Company of New York (formerly, The Manufacturers Life Insurance Company of New York) dated January 1, 2001, incorporated by reference to post-effective amendment number 1, file number 333-131134, filed with the Commission in April, 2007.
(a) Amendment No. 1 to Administrative Services Agreement between John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York effective May 1, 2005, incorporated by reference to post-effective amendment number 1, file number 333-131134, filed with the Commission in April, 2007.
(2) Investment Services Agreement between John Hancock Life Insurance Company of New York (formerly, The Manufacturers Life Insurance Company of New York) and The Manufacturers Life Insurance Company dated October 1, 1997, incorporated by reference to post-effective amendment number 1, file number 333-131134, filed with the Commission in April, 2007.
(a) Amendment No. 1 to Investment Services Agreement between John Hancock Life Insurance Company of New York (formerly, The Manufacturers Life Insurance Company of New York) and The Manufacturers Life Insurance Company dated August 31, 2000, incorporated by reference to post-effective amendment number 1, file number 333-131134, filed with the Commission in April, 2007.
(j) Not Applicable.
(k) Opinion and consent of counsel for John Hancock Life Insurance Company of New York, incorporated by reference to pre-effective amendment number 2, file number 333-152408, filed with the Commission on November 21, 2008.
(l) Not Applicable.
(m) Not Applicable.
(n) Consent of Independent Registered Public Accounting Firm, filed herewith.
(n)(1) Opinion of Counsel as to the eligibility of this post-effective amendment to be filed pursuant to Rule 485(b), filed herewith.
(o) Not Applicable.
(p) Not Applicable.
(q) Memorandum Regarding Issuance, Face Amount Increase, Redemption and Transfer Procedures for the Policies, incorporated by reference to pre-effective amendment number 1, file number, 333-33504 filed with the Commission on May 3, 2001.
(i) Powers of Attorney for Craig Bromley, Thomas Borshoff, Paul M. Connolly, Michael Doughty, Ruth Ann Fleming, James D. Gallagher, Scott S. Hartz, Rex Schlaybaugh, Jr., and John Vrysen, incorporated by reference to post-effective amendment number 1, file number 333-179570, filed with the Commission on April 24, 2013. Power of Attorney for Linda A. Davis Watters, incorporated by reference to post-effective amendment number 10, file number 333-179570, filed with the Commission in April, 2017.
Item 27. Directors and Officers of the Depositor
OFFICERS AND DIRECTORS OF JOHN HANCOCK LIFE INSURANCE COMPANY of NEW YORK
Name and Principal Business Address   Position with Depositor
Craig Bromley

601 Congress Street

Boston, MA 02210
   Director, Chairman and President
Thomas Borshoff

536 Stone Road

Pittsford, NY 14534
   Director

 

Name and Principal Business Address   Position with Depositor
Paul M. Connolly

75 Indian Spring Road

Milton, MA 02186
   Director
Michael Doughty

197 Clarendon Street

Boston, MA 02116
   Director, Executive Vice President
Ruth Ann Fleming

205 Highland Avenue

Short Hills, NJ 07078
   Director
James D. Gallagher

601 Congress Street

Boston, MA 02210
   Director, Executive Vice President, and General Counsel
Scott S. Hartz

197 Clarendon Street

Boston, MA 02116
   Director, Executive Vice President and Chief Investment Officer – US Investments
Rex Schlaybaugh, Jr.

400 Renaissance Center

Detroit, MI 48243
   Director
John G. Vrysen

601 Congress Street

Boston, MA 02210
   Director
Linda A. Davis Waters

601 Congress Street

Boston, MA 02210
   Director, Vice President
Executive Vice Presidents
    
Andrew G. Arnott*
    
Peter Gordon*
    
Timothy W. Ramza*
    
Halina K. von dem Hagen***
   and Treasurer
Senior Vice Presidents
    
John C.S. Anderson**
    
Kevin J. Cloherty*
    
Steven F. Dorval*
    
Barbara Goose*
   and Chief Marketing Officer
Gregory Mack*
    
William McPadden**
    
James O’Brien†††
    
Sebastian Pariath*
   and Head of Operations and Chief Information Officer
Alan R. Seghezzi**
    
Martin Sheerin*
   and Chief Financial Officer
Anthony Teta**
    
Brooks Tingle**
    
Leo Zerilli*
    
Vice Presidents
    
Emanuel Alves*
   Counsel and Corporate Secretary
Roy V. Anderson*
    
Abigail M. Armstrong**
    
Kevin Askew*****
    
William D. Bertrand**
    
Ann E. Birle*****
    
Stephen J. Blewitt**
    
Robert Boyda**
    
Daniel C. Budde**
    
Rick A. Carlson*
    
Bob Carroll**
    
Brian Collins*
    

 

Name and Principal Business Address   Position with Depositor
John J. Danello*
    
Brent Dennis**
    
Robert Donahue****
    
Steven F. Dorval*
    
Melvyn D’Souza***
   Vice President, Treasury
Paul Gallagher*
    
Ann Gencarella**
   And Derivatives Supervisory Officer
Richard Harris***
   and Appointed Actuary
Ellie Harrison*
   US Human Resources
John Hatch*
    
Eugene Xavier Hodge, Jr.*
    
James C. Hoodlet**
    
Mitchell Karman*
   and Chief Compliance Officer & Counsel
Frank Knox*
   and Chief Compliance Officer – Retail Funds/Separate Accounts
Hung Ko***
   Vice President, Treasury
Scott Lively*
    
Cheryl Mallett****
    
Nathaniel I. Margolis**
    
John B. Maynard*
    
Karen McCafferty*
    
Scott A. McFetridge**
    
Maureen Milet**
   and Chief Compliance Officer – Investments
Scott Morin*
    
Jeffrey H. Nataupsky*
    
Scott Navin**
    
Jacques Ouimet**
    
Jeffrey Packard**
    
Gary M. Pelletier**
    
E. David Pemstein
    
Charlie Philbrook*
   and Chief Risk Officer
Tracey Polsgrove*
    
Jill Rebman***
    
George Revoir*
    
Kerri Rogers*****
    
Andrew Ross****
    
Lisa Anne Ryan†††
    
Thomas Samoluk*
    
Gordon Shone*
    
Susan Simi**
    
Rob Stanley*
    
Tony Todisco*****
    
Simonetta Vendittelli*****
   and Controller
Peter de Vries***
    
R. Blake Witherington**
    
Henry Wong**
    
*Principal Business Office is 601 Congress Street, Boston, MA 02210
**Principal Business Office is 197 Clarendon Street, Boston, MA 02116
***Principal Business Office is 200 Bloor Street, Toronto, Canada M4W1E5
****Principal Business Office is 250 Bloor Street, Toronto, Canada M4W1E5
*****Principal Business Office is 380 Stuart Street, Boston, MA 02116
†Principal Business is 6400 Sheridan Drive, Williamsville, NY 14221
††Principal Business is 2001 Butterfield Road, Downers Grove, Illinois 60515
†††Principal Business is 200 Berkeley Street, Boston, MA 02116
††††Principal Business is 101 Huntington Avenue, Boston, MA 02116

 

Item 28. Persons Controlled by or Under Common Control with the Depositor or the Registrant
The Registrant is a separate account of the Depositor operating as a unit investment trust. The Registrant supports benefits payable under the Depositor's variable life insurance policies by investing assets allocated to various investment options in shares of John Hancock Variable Insurance Trust (formerly, John Hancock Trust) and other mutual funds registered under the Investment Company Act of 1940 as open-end management investment companies of the “series” type.
On the effective date of the registration statement, the Company and its affiliates are controlled by Manulife Financial Corporation.

 

 

Item 29. Indemnification
The Form of Selling Agreement or Service Agreement between John Hancock Distributors LLC and various broker-dealers may provide that the selling broker-dealer indemnify and hold harmless John Hancock Distributors LLC and the Company, including their affiliates, officers, directors, employees and agents against losses, claims, liabilities or expenses (including reasonable attorney’s fees), arising out of or based upon a breach of the Selling or Service Agreement, or any applicable law or regulation or any applicable rule of any self-regulatory organization or similar provision consistent with industry practice.
Insofar as indemnification for liability arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
Item 30. Principal Underwriter
(a) Set forth below is information concerning other investment companies for which John Hancock Distributors LLC, the principal underwriter of the contracts, acts as investment adviser or principal underwriter.
Name of Investment Company   Capacity in Which Acting
John Hancock Variable Life Separate Account S
   Principal Underwriter
John Hancock Variable Life Separate Account U
   Principal Underwriter
John Hancock Variable Life Separate Account V
   Principal Underwriter
John Hancock Variable Life Separate Account UV
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account R
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account T
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account W
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account X
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account Q
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account A
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account N
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account H
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account I
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account J
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account K
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account L
   Principal Underwriter
John Hancock Life Insurance Company (U.S.A.) Separate Account M
   Principal Underwriter
John Hancock Life Insurance Company of New York Separate Account B
   Principal Underwriter
John Hancock Life Insurance Company of New York Separate Account A
   Principal Underwriter
(b) John Hancock Life Insurance Company (U.S.A.) is the sole member of John Hancock Distributors LLC and the following comprise the Board of Managers and Officers of John Hancock Distributors LLC.
Name   Title
Michael Doughty**
   Chairman, Director
James C. Hoodlet**
   Director
George Revoir*
   Director, President and Chief Executive Officer
Al Seghezzi**
   Director
Martin Sheerin*
   Director
Christopher Walker***
   Director, Vice President, Investments
Emanuel Alves*
   Secretary
Brian Collins*
   Vice President, US Taxation
John Bryson
  Assistant Vice President
Jeffrey H. Long*
   Assistant Vice President, Chief Financial Officer and Financial Operations Principal

 

Name   Title
Michael Mahoney*
   Assistant Vice President and Chief Compliance Officer
David Pickett*
   Assistant Vice President and General Counsel
Halina K. von dem Hagen***
   Executive Vice President and Treasurer
Melvyn D’Souza***
   Vice President, Treasury
*Principal Business Office is 601 Congress Street, Boston, MA 02210
**Principal Business Office is 197 Clarendon Street, Boston, MA 02116
***Principal Business Office is 200 Bloor Street, Toronto, Canada M4W1E5
****Principal Business Office is 250 Bloor Street, Toronto, Canada M4W1E5
(c) John Hancock Distributors LLC
The information contained in the section titled “Principal Underwriter and Distributor” in the Statement of Additional Information, contained in this Registration Statement, is hereby incorporated by reference in response to Item 31.(c)(2-5).
(1)   (2)   (3)   (4)   (5)
Name of
Principal
Underwriter 		  Net
Underwriting
Discounts and
Commissions 		  Compensation
on Events
Occasioning
the Deduction
of a Deferred
Sales Load 		  Brokerage
Commissions 		  Other
Compensation
John Hancock Distributors LLC   $0   $0   $0   $0
Item 31. Location of Accounts and Records
The following entities prepare, maintain, and preserve the records required by Section 31(a) of the Act for the Registrant through written agreements between the parties to the effect that such services will be provided to the Registrant for such periods prescribed by the Rules and Regulations of the Commission under the Act and such records will be surrendered promptly on request: John Hancock Distributors LLC, John Hancock Place, Boston, Massachusetts 02117, serves as Registrant’s distributor and principal underwriter, and, in such capacities, keeps records regarding shareholders account records, canceled stock certificates. John Hancock (at the same address), in its capacity as Registrant’s depositor, and John Hancock Life Insurance Company of New York (at the same address), in its capacities as Registrant’s investment adviser, transfer agent, keep all other records required by Section 31 (a) of the Act.
Item 32. Management Services
All management services contracts are discussed in Part A or Part B.
Item 33. Fee Representation
Representation of Insurer Pursuant to Section 26 of the Investment Company Act of 1940.
John Hancock Life Insurance Company of New York hereby represents that the fees and charges deducted under the contracts issued pursuant to this registration statement, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by the Company.

 

Signatures
Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant has caused this amendment to the Registration Statement to be signed on its behalf in the City of Boston, Commonwealth of Massachusetts, as of the 25th day of April, 2017.
John Hancock Life Insurance Company of New York Separate Account B
(Registrant)
By: JOHN HANCOCK LIFE INSURANCE COMPANY of NEW YORK
By: /s/ Craig Bromley
Craig Bromley
Principal Executive Officer
JOHN HANCOCK LIFE INSURANCE COMPANY of NEW YORK
(Depositor)
By: /s/ Craig Bromley
Craig Bromley
Principal Executive Officer

 

Signatures
Pursuant to the requirements of the Securities Act of 1933, this post-effective amendment to the Registration Statement has been signed by the following persons in the capacities indicated as of the 25th day of April, 2017.
Signatures Title
/s/ Simonetta Vendittelli
Simonetta Vendittelli 		Vice President and Controller
/s/ Martin Sheerin
Martin Sheerin 		Senior Vice President and Chief Financial Officer
*
Craig Bromley 		Director
*
Thomas Borshoff 		Director
*
Paul M. Connolly 		Director
*
Ruth Ann Fleming 		Director
*
Michael Doughty 		Director
*
James D. Gallagher 		Director
*
Scott S. Hartz 		Director
*
Rex E. Schlaybaugh, Jr. 		Director
*
John G. Vrysen 		Director
*
Linda A. Davis Watters 		Director
/s/James C. Hoodlet
James C. Hoodlet 		 
*Pursuant to Power of Attorney

Table of Contents
Supplement Dated May 1, 2017
TO
Prospectuses Dated May 1, 2017 Or Later
    
This Supplement is to be distributed with certain prospectuses for variable life insurance policies of John Hancock Life Insurance Company (U.S.A.) or John Hancock Life Insurance Company of New York.
The prospectuses involved bear the title “Protection Variable Universal Life,” “Accumulation Variable Universal Life,” “Accumulation Variable Universal Life 2014,” “Corporate VUL,” “Medallion Variable Universal Life Plus,” “Medallion Variable Universal Life Edge,” “Medallion Variable Universal Life Edge II,” “Medallion Executive Variable Life,” “Medallion Executive Variable Life II,” “Medallion Executive Variable Life III,” “Performance Executive Variable Life,” “Variable Estate Protection,” “Variable Estate Protection Plus,” “Variable Estate Protection Edge,” “Performance Survivorship Variable Universal Life”, “Protection Variable Universal Life”, and “Survivorship Variable Universal Life.” We refer to these prospectuses as the “Product Prospectuses.”
This supplement will be used only with policies sold through the product prospectuses and through registered representatives affiliated with the M Financial Group.
    
This Supplement is accompanied with a current prospectus for the M Fund, Inc. that contains detailed information about the funds. Be sure to read that prospectus before selecting any of the four additional variable investment options/investment accounts.
    
AMENDMENT TO PRODUCT PROSPECTUSES
The table on the cover page of each product prospectus is amended to include the following four additional variable investment options/investment accounts:
M Capital Appreciation
M International Equity
M Large Cap Growth
M Large Cap Value
VL M SUPP (5/2017)
1