Reinsurance News

Venerable & Manulife close $1.6bn variable annuity reinsurance transaction

4th October 2022 - Author: Kassandra Jimenez-Sanchez

Venerable Holdings, a provider of innovative risk transfer solutions to variable annuity issuers, has announced the completion of a reinsurance transaction with Manulife Financial Corporation, a Canadian multinational insurance company and financial services provider.

handshakeAccording to the announcement, the transaction involves the reinsurance of a block of New York variable annuity business from Manulife’s subsidiary John Hancock Life Insurance Company of New York.

It involves the 80% quota share reinsurance of approximately $1.6 billion of account value, as of August 31, 2022, and primarily comprises policies with guaranteed minimum withdrawal benefit riders, issued between 2003 and 2012.

Additionally, a small block of policies with only guaranteed minimum death benefit (GMDB) riders is also included. John Hancock will continue to administer the policies.

This compliments the reinsurance transaction that closed between the two parties earlier this year. Venerable reinsured roughly $22 billion of variable annuity business from Manulife’s U.S. subsidiary John Hancock.

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David Marcinek, Chairman of Venerable, commented: “We are very pleased to partner with Manulife on this latest transaction and highly value the relationship between the two organisations.

“Being able to bring this deal to completion during this period of uncertain markets is a testament to the strength and skill of both parties.”

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