Manulife Finalizes Long-Term Care Reinsurance Deal with Munich Re
Manulife Financial Corporation has closed a transaction to reinsure the biometric risk on a block of long-term care policies with Munich Re Life US. The deal covers reserves totaling $3.2 billion.
Toronto, Canada – October 1, 2026 – Manulife Financial Corporation announced today the closure of a previously announced transaction to reinsure the biometric risk on a block of long-term care policies with Munich American Reassurance Company, known as Munich Re Life US. This subsidiary of Munich Re Group will assume the risk associated with approximately $3.2 billion in reserves.
The transaction, effective July 1, 2026, is part of Manulife's strategy to manage its risk exposure and optimize its capital. By reinsuring this block of business, Manulife aims to reduce its exposure to long-term care liabilities and free up capital for other strategic priorities.
Manulife stated that it will continue to service its long-term care policyholders as usual. The company, which operates as John Hancock in the United States, is an international financial services provider.
Munich Re Life US, as part of the global Munich Re Group, is a significant reinsurer with extensive experience in life and disability reinsurance. This transaction aligns with the ongoing trend of insurers seeking to de-risk their balance sheets through reinsurance agreements.