Manulife Finalizes $3.2 Billion Long-Term Care Reinsurance Deal

The deal, initially announced in August, involves an 80% quota share of the specified long-term care block. By offloading these liabilities to the US subsidiary of Munich Re Group, Manulife continues to refine its capital management strategy. The $3.2 billion figure reflects the IFRS 17 estimate, incorporating the present value of future cash flows, risk adjustments, and contractual service margins based on mid-year 2026 data.

This move aligns with the company’s broader efforts to optimize its balance sheet while maintaining its international financial services operations. Manulife, which serves over 37 million customers across 25 markets, operates primarily under the John Hancock brand in the United States and as Manulife throughout Canada and Asia. The financial impact of this reinsurance arrangement is calculated using an exchange rate of US$1.00 to C$1.41875.