Manulife Finalizes $3.2 Billion Long-Term Care Reinsurance Deal

Manulife Financial Corporation has officially closed its agreement to reinsure a block of long-term care policies with Munich American Reassurance Company. The transaction, which covers reserves totaling C$3.2 billion, marks a significant transfer of biometric risk to the Munich Re Group subsidiary effective as of July 1, 2026.

Today, 04:38· Money Talk· 76 reads

Manulife Finalizes $3.2 Billion Long-Term Care Reinsurance Deal

The deal involves an 80% quota share arrangement, calculated based on IFRS 17 standards regarding the present value of future cash flows, risk adjustments, and contractual service margins. This move aligns with the Toronto-based insurer’s broader strategy to manage capital efficiency and reduce its exposure to long-term care liabilities.

Both firms initially announced the terms of the agreement on August 5, 2026. By offloading these specific policy obligations to Munich Re Life US, Manulife aims to optimize its balance sheet while maintaining its service commitments to its global customer base. The financial figures provided in the agreement rely on exchange rate valuations of US$1.00 to C$1.41875 as of mid-2026.

Manulife Finalizes $3.2 Billion Long-Term Care Reinsurance Deal

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