Manulife Closes Long-Term Care Reinsurance Deal

TORONTO, Oct. 1, 2026 /CourierPR/ -- Manulife Financial Corporation has announced the successful closure of a significant reinsurance transaction, which involves reinsuring 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 transaction underscores Manulife's commitment to risk management and its strategic approach to managing the financial implications of its long-term care insurance policies.

The deal, which was previously announced on August 5th, 2026, represents a substantial step in Manulife's ongoing efforts to balance risk and profitability in its insurance portfolio. The transaction is expected to provide Manulife with enhanced financial stability and flexibility, allowing it to continue offering long-term care insurance to its customers while managing the associated risks more effectively.

At the end of 2025, Manulife 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. The company operates as Manulife across Canada and Asia, and primarily as John Hancock in the United States. Manulife's global reach and extensive distribution network enable it to provide financial advice, insurance, and health solutions to individuals, groups, and businesses worldwide.

Munich American Reassurance Company, 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. The company is recognized for its innovative approach to digital transformation and its ability to provide dynamic solutions that support carriers through the evolving industry landscape. Munich American Reassurance Company 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.

The announcement of this reinsurance transaction comes as part of Manulife's ongoing strategy to manage its risk profile and ensure the financial sustainability of its insurance products. By reinsuring biometric risk on a block of long-term care policies, Manulife is taking a proactive step to mitigate potential financial losses and maintain its competitive edge in the insurance industry. This transaction is expected to have a positive impact on Manulife's financial performance and its ability to continue offering high-quality long-term care insurance to its customers.