Manulife Closes Long-Term Care Reinsurance Deal with Munich Re
Manulife Financial Corporation has finalized a transaction to reinsure long-term care policies with Munich Re Life US. The deal covers $3.2 billion in reserves and transfers a significant portion of the company's long-term care risk.
Toronto, Canada – Manulife Financial Corporation announced on October 1, 2026, the completion of a previously announced transaction to reinsure biometric risk on a block of long-term care policies. The deal involves $3.2 billion in reserves and transfers this risk to Munich American Reassurance Company, a subsidiary of Munich Re Group.
The transaction, first announced on August 5, 2026, specifically addresses the biometric risk associated with a portfolio of long-term care insurance policies. Manulife, which operates as Manulife in Canada and Asia and primarily as John Hancock in the United States, aims to manage its risk exposure and free up capital through this arrangement.
Munich Re Life US is a key player in the reinsurance market, known for its expertise in life and disability reinsurance. The company provides substantial reinsurance capacity and risk expertise. With this agreement, Munich Re Life US assumes responsibility for a significant portion of the long-term care risk previously held by Manulife.
Manulife is an international financial services provider headquartered in Toronto. The company offers a range of financial advice, insurance, and health solutions to over 37 million customers across 25 markets. This reinsurance agreement is part of Manulife's ongoing strategy to optimize its risk profile and enhance its capital position.