Transacting on a younger LTC block further validates LTC reserves and assumptions Another milestone transaction that optimizes our portfolio $0.8 billion capital release will be returned to shareholders via share buybacks Conference call to be held Thursday, November 21, 2024 , at 8:00 a.m.
ET ; details below TSX/NYSE/PSE: MFC SEHK: 945 C$ unless otherwise stated TORONTO , Nov. 20, 2024 /PRNewswire/ - Manulife Financial Corporation ("Manulife" or the "Company") announced today that it has entered into a $5.4 billion 1 reinsurance agreement with Reinsurance Group of America ("RGA"), including $2.
4 billion of long-term care ("LTC") reserves. Key highlights of the transaction: Reinsuring $2.4 billion of LTC reserves to RGA on a full risk transfer basis Inclusive of our previous LTC reinsurance transaction 2 ("previous transaction"), upon closing we will have cumulatively reduced LTC reserves by 18% and LTC morbidity sensitivity by 17% 3 Transacted LTC block is younger, with a greater proportion of active life reserves than our previous transaction Modest negative 4% LTC cede 4 further validates our reserves and assumptions Transaction also includes a legacy block of U.
S. structured settlements with $3.0 billion of reserves Accretive to core ROE 5 , and an attractive core earnings 5 multiple of 11.
4 times 6 ; neutral impact to core EPS 5 Close to 1.0x book value 7 ; expect to release $0.8 billion of capital, which we intend to fully return to shareholders Expect to dispose $1.
5 b.
