Manulife Financial Corporation has agreed to reinsure the biometric risk on a block of long-term care policies with $3.2 billion of reserves to Munich American Reassurance Company, a subsidiary of Munich Re Group. This is Manulife's third LTC reinsurance transaction and its first on a standalone LTC block, involving full risk transfer with no asset transfer. Upon closing, expected in the fourth quarter of 2026 pending regulatory approvals, Manulife will have cumulatively reduced its LTC morbidity sensitivity by 24% across all three deals. The transaction is priced similarly to prior deals with a modest negative 5% cede, is largely neutral to capital, and will have an immaterial annual impact on core earnings and net income attributed to shareholders of approximately $30 million in the first year, decreasing over time.
Manulife Financial CorpManulife reduces LTC morbidity sensitivity via reinsurance, neutral to capital with immaterial earnings impact.
Münchener Rück AGMunich Re assumes $3.2B LTC biometric risk, expanding reinsurance business.
