Reinsurance Group of America Inc. (RGA) has announced a significant agreement with John Hancock, a subsidiary of Manulife Financial Corporation, to reinsure a substantial sum of approximately $4.1 billion in liabilities. This volume includes $1.9 billion allocated to long-term care (LTC) and $2.2 billion designated for structured settlements.
The LTC block to be reinsured comprises policies that align closely with the characteristics of RGA's existing LTC portfolio, specifically those issued from 2007 onwards. This move underscores RGA's robust expertise in managing longevity risk and its notable 25-year track record as a leading provider of asset-intensive solutions within the structured settlements market. Both reinsurance transactions will be conducted on a full-risk basis, with RGA taking on 75% of the quota share, while John Hancock retains the remaining 25%. Furthermore, RGA will sustain its support towards John Hancock's anticipated expansion in the U.S. permanent life sector by partnering on yearly renewable term reinsurance, adhering to prevailing market conditions.
Completion of this transaction is projected for early 2025, pending adherence to customary closing conditions.
