- Company’s third LTC reinsurance transaction and first on a standalone LTC block, highlighting Manulife’s ability to transact in various structures
- Full risk transfer on the biometric risk with no asset transfer
- Upon closing, Manulife will have cumulatively reduced LTC risk by 24
Manulife Financial Corporation (“Manulife” or the “Company”) announced today that it has agreed to reinsure biometric risk1 on a block of long-term care (“LTC”) policies with $3.2 billion of reserves2 to Munich American Reassurance Company (“Munich Re Life US”), a subsidiary of Munich Re Group, highlighting the Company’s continued efforts to reduce the risk profile of its inforce portfolio. The transaction is expected to close in Q4 2026 pending regulatory approvals.
Key highlights of the transaction include:
- Full risk transfer on biometric risk3 on $3.2 billion of LTC reserves to Munich Re Life US
- Inclusive of our previous LTC reinsurance transactions4, upon closing Manulife will have cumulatively reduced LTC morbidity sensitivity by 24%5
- Similar pricing to prior deals, with a modest negative 5% cede6, further validating reserves and assumptions
- Transaction largely neutral to capital, with immaterial annual impact to both core earnings and net income attributed to shareholders of ~$30 million in the first year and reducing over time7
“Today’s announcement represents our third LTC reinsurance transaction in under three years and first on a standalone LTC block, reflecting our ability to reduce our risk profile and strengthen our business through innovative actions. Looking ahead, we continue to see meaningful opportunities to improve our long-term care portfolio through organic initiatives that will enhance risk-adjusted returns and generate significant shareholder value.”
– Phil Witherington, President & Chief Executive Officer, Manulife
Slides related to this announcement are included as part of the 2Q26 earnings presentation available here: 2Q26 results presentation
About Manulife
Manulife Financial Corporation is a leading international financial services provider, headquartered in Toronto, Canada. Anchored in our ambition to be the number one choice for customers, we operate as Manulife across Canada and Asia, and primarily as John Hancock in the United States, providing financial advice, insurance and health solutions for individuals, groups and businesses. Through Manulife Wealth & Asset Management, we offer global investment solutions, financial advice, and retirement plan services to individuals, institutions, and retirement plan members worldwide. At the end of 2025, we had more than 37,000 employees, over 106,000 agents, and thousands of distribution partners, serving over 37 million customers with operations across 25 markets globally. We trade as ‘MFC’ on the Toronto, New York, and Philippine stock exchanges, and under ‘945’ on the Hong Kong stock exchange.
About Munich Re Life US
Munich Re Life US, a subsidiary of Munich Re Group, is a leading US reinsurer with a significant market presence and extensive technical depth in all areas of life and disability reinsurance. Beyond vast reinsurance capacity and unrivaled risk expertise, the company is recognized as an innovator in digital transformation and aims to guide carriers through the changing industry landscape with dynamic solutions insightfully designed to grow and support their business. Munich Re Life US also offers tailored financial reinsurance solutions to help life and disability insurance carriers manage organic growth and capital efficiency as well as M&A support to help achieve transaction success.
Source : Manulife Financial Corporation
