Manulife Financial could be making a huge acquisition in the US and Ameriprise Financial might be among the possible targets, a Reuters report quoted a Canadian insurance analyst as saying.

Tom MacKinnon, an analyst with Scotia Capital, said Manulife has amassed excess capital of C$4 billion ($3.4 billion) and that figure could rise to C$6 billion ($5.17 billion) at the end of 2008.

"We have to believe that Manulife in particular is building an acquisition war chest," MacKinnon said, adding that the firm is likely to grow its US asset management business, as well as its individual insurance and annuity businesses.

Which firms might be attractive to the Canadian insurance giant? MacKinnon cited Ameriprise Financial and Principal Financial Group, saying both "fit the criteria" and noted that these are "of similar size to the John Hancock acquisition."

Manulife bought John Hancock in 2004.  

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