Canada $56 Billion Insurer Manulife Financial Unlocks CAD 800 Million ($573 Million) Capital from Reserves to Return to Shareholders by Reinsuring CAD 5.4 Billion ($3.8 Billion) of Reserves with Reinsurance Group of America Covering CAD 2.4 Billion of Long-Term Care Reserves & CAD 3 Billion of Legacy Block of United States Structured Settlements
21st November 2024 | Hong Kong
Canada Insurer Manulife Financial ($56 billion market value) has announced to unlock CAD 800 million ($573 million) capital from reserves to return to shareholders by reinsuring CAD 5.4 billion ($3.8 billion) of reserves with Reinsurance Group of America covering CAD 2.4 billion of Long-Term Care reserves & CAD 3 billion of legacy block of United States Structured Settlements. Manulife Financial (20/11/24): “Manulife Financial Corporation (“Manulife” or the “Company”) announced today that it has entered into a $5.4 billion reinsurance agreement with Reinsurance Group of America (“RGA”), including $2.4 billion of long-term care (“LTC”) reserves. Summary – We will reinsure a combined $5.4 billion of reserves across two blocks of legacy business to RGA. The blocks include portions of U.S. LTC and U.S. structured settlements. The LTC block represents $2.4 billion, or 6% of Manulife’s total LTC reserves as of September 30, 2024. The transaction is priced at close to 1.0 times book value, reflecting a modest negative ceding commission on LTC, and a nominal ceding commission on the structured settlements block. RGA is a highly experienced global reinsurer with multiple existing reinsurance arrangements with Manulife. The transaction includes significant structural protections, including over-collateralized trusts to hold investment assets. The reinsurance represents a 75% quota share on both ceded blocks. In connection with the transaction, we expect to dispose $1.5 billion of ALDA. Manulife will continue to administer all reinsured policies for a seamless customer service experience. The transaction is expected to close in early 2025, subject to customary closing conditions.”
“ Canada $56 Billion Insurer Manulife Financial Unlocks CAD 800 Million ($573 Million) Capital from Reserves to Return to Shareholders by Reinsuring CAD 5.4 Billion ($3.8 Billion) of Reserves with Reinsurance Group of America Covering CAD 2.4 Billion of Long-Term Care Reserves & CAD 3 Billion of Legacy Block of United States Structured Settlements “
Canada $56 Billion Insurer Manulife Financial Unlocks CAD 800 Million ($573 Million) Capital from Reserves to Return to Shareholders by Reinsuring CAD 5.4 Billion ($3.8 Billion) of Reserves with Reinsurance Group of America Covering CAD 2.4 Billion of Long-Term Care Reserves & CAD 3 Billion of Legacy Block of United States Structured Settlements
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