Manulife agrees to a $5.4B reinsurance deal, freeing up $800M for shareholder returns.

Manulife Financial Corporation has entered into a $5.4 billion reinsurance deal with Reinsurance Group of America to offload $2.4 billion in long-term care reserves and other lower-return assets. This transaction is expected to free up $800 million in capital, which Manulife will return to shareholders through share buybacks. The deal aims to shift Manulife's portfolio towards higher return and lower risk investments. The transaction, subject to customary closing conditions, is set to close in early 2025.

November 20, 2024
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