John Hancock Financial has realigned its operations, reducing its primary operating life insurance companies from five to three.

The Boston, Mass.-based company merged John Hancock Life Insurance Co. and John Hancock Variable Life Insurance Co. into John Hancock Life Insurance Co. (U.S.A.). The realignment, which is subject to regulatory approval, took effect Dec. 31, 2009.

John G. Vrysen

The realignment is designed to provide the company with more capital and a tax efficient structure, said John G. Vrysen, senior vice president at John Hancock Financial, in a statement. It also will simplify the company’s financial reporting, and “achieve other synergistic benefits to support its future growth, as well as the needs of its customers and distributors going forward,” Vrysen said.

A key change is that John Hancock Life Insurance Co (U.S.A.) will serve as its flagship company, with total assets of $195.6 billion, as of Sept. 30, 2009. The company operates in 49 states, selling all products, except group long-term care insurance. A separate entity, John Hancock Life Insurance Co. of New York, sells all products, except LTC coverage, in New York only. John Hancock Life & Health Insurance Company, licensed in all 50 states, issues group long-term care insurance in all states, as well as individual LTC policies in New York.

“We are pleased to have completed this important initiative and move forward with three companies fully aligned with how we serve and support our valued customers and distributors,” Vrysen said.

John Hancock’s realignment also involved the Dec. 31, 2009, merger of several holding company legal entities. Specifically, John Hancock Financial Services was merged into The Manufacturers Investment Corp. and Manulife Holdings (Delaware) LLC was merged into John Hancock Holdings (Delaware) LLC, company officials said.

The realignment had no impact on the terms or conditions of in-force policies, contracts or certificates. The location of the company’s offices and operations, as well as employment levels, have also been unaffected by the realignment.