UPDATE 2-Manulife CEO D'Alessandro to retire in May 2009

(Adds comments from D'Alessandro. In U.S. dollars)

By Lynne Olver

TORONTO, May 8 (Reuters) - Manulife Financial (MFC.TO: Quote, Profile, Research) President and Chief Executive Dominic D'Alessandro, who spearheaded the company's dramatic U.S. expansion with the takeover of John Hancock, will step down in May 2009, the insurance company said on Thursday.

D'Alessandro, 61, has held the top job at the company for the past 14 years. He will step down at the company's annual meeting in May 2009.

"I'm going to be 62, and been thinking for a while now that I would like maybe to have some time to decompress, some time to myself with my family and that's what I plan to do," he told reporters after this year's annual meeting.

He said Manulife, which plans to announce a successor to its colorful and outspoken CEO by the end of this year, has been planning the succession for years.

He downplayed his departure with characteristic humor, noting that Manulife had plenty of talented people. "They replace even the Pope," he said. "Life goes on."

But D'Alessandro also said the door is open to final acquisitions on his watch. "If an opportunity came our way over the next while, I would be derelict in my duties if I didn't pursue it," he said.

"We will pursue opportunities to acquire blocks of business if it makes sense."