Manulife Financial Corporation has closed its previously announced reinsurance transaction with Munich Re’s U.S. subsidiary. The deal transfers biometric risk associated with a block of long-term care (LTC) policies carrying C$3.2 billion in reserves.
The agreement covers an 80% quota share of the specified policies. It took effect on July 1, 2026.
This is Manulife’s third LTC reinsurance transaction in recent years and its first involving a standalone block of this business. The company said the transaction supports its ongoing strategy to reduce risk and strengthen its business.
With the deal closed, Manulife has cumulatively reduced its LTC morbidity sensitivity by 24%. The transaction is expected to have a largely neutral effect on capital.