Reinsurance Group announces $4.1B coinsurance transaction with Manulife Financial

Reinsurance Group (RGA) and John Hancock, a subsidiary of Manulife Financial (MFC), an international financial services group, announced an agreement to reinsure approximately $4.1B in liabilities comprising $1.9B in long-term care, or LTC, and $2.2B in structured settlements. This latest transaction builds on RGA’s long-standing strategic partnership with Manulife across a wide range of business types and global markets. 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 75% quota share. RGA will also continue supporting John Hancock on their expected growth in U.S. permanent life business through partnership on yearly renewable term reinsurance, at market terms.