RGA Announces US$4.1 Billion Coinsurance Transaction With Manulife
Reinsurance Group of America (RGA) has announced a US$4.1 billion coinsurance transaction with John Hancock, a Manulife subsidiary. The deal comprises $1.9 billion in long-term care (LTC) and $2.2 billion in structured settlements. RGA will coinsure a 75% quota share of both blocks, with John Hancock retaining 25%. The LTC policies match RGA's current portfolio characteristics, all issued post-2007. The transaction, funded with internal capital, is expected to close in early 2025 and become earnings accretive by 2025. RGA will continue supporting John Hancock's US permanent life business through yearly renewable term reinsurance at market terms.
Reinsurance Group of America (RGA) ha annunciato una transazione di coinsurance di 4,1 miliardi di dollari con John Hancock, una controllata di Manulife. L'accordo comprende 1,9 miliardi di dollari in assistenza a lungo termine (LTC) e 2,2 miliardi di dollari in liquidazioni strutturate. RGA coassicurera una quota del 75% di entrambi i comparti, mentre John Hancock manterrà il 25%. Le polizze LTC corrispondono alle caratteristiche attuali del portafoglio di RGA, tutte emesse dopo il 2007. La transazione, finanziata con capitale interno, dovrebbe chiudersi all'inizio del 2025 e generare utili aggiuntivi entro il 2025. RGA continuerà a supportare l'attività di vita permanente negli Stati Uniti di John Hancock tramite riassicurazione annuale rinnovabile a condizioni di mercato.
Reinsurance Group of America (RGA) ha anunciado una transacción de coinsurance de 4,1 mil millones de dólares con John Hancock, una subsidiaria de Manulife. El acuerdo incluye 1,9 mil millones de dólares en atención a largo plazo (LTC) y 2,2 mil millones de dólares en liquidaciones estructuradas. RGA coasegurará una participación del 75% de ambos bloques, mientras que John Hancock retendrá el 25%. Las pólizas de LTC coinciden con las características actuales de la cartera de RGA, todas emitidas después de 2007. Se espera que la transacción, financiada con capital interno, se cierre a principios de 2025 y que genere beneficios adicionales para ese mismo año. RGA seguirá apoyando el negocio vitalicio permanente de John Hancock en EE.UU. a través de la reaseguración de términos renovables anuales a precios de mercado.
Reinsurance Group of America (RGA)가 41억 달러 규모의 코인슈어런스 거래를 John Hancock, Manulife의 자회사와 발표했습니다. 이 거래는 19억 달러의 장기 요양(LTC) 및 22억 달러의 구조화된 합의로 구성되어 있습니다. RGA는 두 블록 모두에서 75%의 지분을 코인슈어하며, John Hancock은 25%를 유지합니다. LTC 정책은 2007년 이후 발행된 RGA의 현재 포트폴리오 특성과 일치합니다. 내부 자본으로 자금 조달된 이번 거래는 2025년 초에 종료될 것으로 예상되며, 2025년에는 수익 증가 효과를 가져올 것입니다. RGA는 시장 조건에 따른 연간 갱신형 재보험을 통해 John Hancock의 미국 영구 생명 보험 사업을 계속 지원할 것입니다.
Reinsurance Group of America (RGA) a annoncé une transaction de coassurance de 4,1 milliards de dollars avec John Hancock, une filiale de Manulife. L'accord comprend 1,9 milliard de dollars en soins de longue durée (LTC) et 2,2 milliards de dollars en règlements structurés. RGA coassurera une part de 75 % des deux blocs, John Hancock conservant 25 %. Les polices LTC correspondent aux caractéristiques actuelles du portefeuille de RGA, toutes émises après 2007. La transaction, financée par des capitaux internes, devrait être finalisée au début de 2025 et devenir bénéfique d'ici 2025. RGA continuera de soutenir l'activité de vie permanente aux États-Unis de John Hancock à travers une réassurance renouvelable annuelle à des conditions de marché.
Reinsurance Group of America (RGA) hat eine Transaktion über 4,1 Milliarden US-Dollar im Bereich der Co-Versicherung mit John Hancock, einer Tochtergesellschaft von Manulife, bekanntgegeben. Der Deal umfasst 1,9 Milliarden US-Dollar für die Langzeitpflege (LTC) und 2,2 Milliarden US-Dollar in strukturierten Vergleichen. RGA wird einen Anteil von 75% an beiden Blöcken co-versichern, während John Hancock 25% behält. Die LTC-Policen entsprechen den aktuellen Portfoliokriterien von RGA, die alle nach 2007 ausgegeben wurden. Die Transaktion, die mit internem Kapital finanziert wird, wird voraussichtlich Anfang 2025 abgeschlossen sein und bis 2025 gewinnsteigernd wirken. RGA wird weiterhin das US-Geschäft für permanente Lebensversicherungen von John Hancock durch jährlich erneuerbare Rückversicherung zu Marktbedingungen unterstützen.
- Transaction value of US$4.1 billion strengthens RGA's market position
- Expected earnings accretion by 2025
- Funded through existing internal capital resources
- Strategic alignment with existing LTC portfolio
- Continuation of permanent life business partnership
- None.
Insights
This
Key strategic benefits include:
- Portfolio diversification with complementary LTC policies matching existing risk profile
- Leveraging established expertise in longevity risk management
- Strengthening long-term partnership with a major industry player
This transaction showcases RGA's sophisticated approach to insurance portfolio optimization. The focus on post-2007 LTC policies is particularly strategic, as these newer vintages typically have more robust pricing and better risk characteristics than older blocks. The structured settlements component adds stable, predictable long-term cash flows, effectively diversifying the risk profile.
The deal's structure demonstrates RGA's evolved capabilities in managing both sides of the balance sheet - combining biometric risk expertise with asset management capabilities. This comprehensive approach positions RGA favorably in the competitive reinsurance market, particularly for complex, large-scale transactions.
The reinsured LTC block consists of policies that closely match the characteristics of RGA’s current in-force LTC portfolio, including that all such policies were issued in 2007 or later. The structured settlements block highlights the power of RGA’s expertise in longevity risk and the company’s 25-year history as a premier provider of asset-intensive solutions. Both transactions are on a full-risk basis, with RGA coinsuring
“We are excited to announce another mutually beneficial transaction with Manulife and are grateful for their continued trust in RGA,” said Ron Herrmann, Executive Vice President, Head of the
“The transaction is funded with existing internal capital resources and is expected to be accretive to RGA earnings in 2025, with attractive returns on capital,” said Axel André, Executive Vice President, Chief Financial Officer, RGA.
Today’s announcement reaffirms the long-standing and diverse global partnership between RGA and Manulife. Earlier in 2024, RGA and Manulife announced a landmark coinsurance transaction for universal life business in
Sidley Austin LLP acted as legal advisor to RGA in the transaction. Manulife will continue to administer all policies as part of this arrangement. The transaction is expected to close in early 2025, subject to customary closing conditions.
About RGA
Reinsurance Group of America, Incorporated (NYSE: RGA) is a global industry leader specializing in life and health reinsurance and financial solutions that help clients effectively manage risk and optimize capital. Founded in 1973, RGA is today one of the world’s largest and most respected reinsurers and remains guided by a powerful purpose: to make financial protection accessible to all. As a global capabilities and solutions leader, RGA empowers partners through bold innovation, relentless execution, and dedicated client focus — all directed toward creating sustainable long-term value. RGA has approximately
About Manulife
Manulife Financial Corporation is a leading international financial services provider, helping people make their decisions easier and lives better. With our global headquarters in
Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com.
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Lynn Phillips
Vice President, Corporate Communications
636-736-2351
lphillips@rgare.com
Lizzie Curry
Executive Director, Public Relations
636-736-8521
lizzie.curry@rgare.com
Jeff Hopson
Senior Vice President, Investor Relations
636-736-2068
jhopson@rgare.com
Source: Reinsurance Group of America, Incorporated
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