Manulife closes $4.1bn LTC reinsurance transaction with RGA

Manulife Financial Corporation (Manulife) has announced the closure of its transaction to reinsure two blocks of legacy business, including a younger block of long-term care (LTC), with Reinsurance Group of America (RGA).

The $4.1 billion reinsurance transaction was entered into between RGA and John Hancock, a subsidiary of Manulife.

The transaction, which was initially announced in November 2024, includes $1.9 billion in LTC reserves and a legacy block of U.S. structured settlements with $2.2 billion in reserves.

Both blocks are on a full-risk basis, with RGA coinsuring 75% on a quota share basis, while 25% is retained by John Hancock.

Roy Gori, President and Chief Executive Officer of Manulife, stated, “With this second milestone LTC reinsurance transaction, we have now reinsured both mature and younger LTC blocks, further validating our prudent LTC reserves and assumptions.”

He added, “Additionally, this transaction reaffirms our commitment to unlocking shareholder value and further reshapes our portfolio to higher return and lower risk.”

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