Manulife Financial Corporation’s subsidiary, John Hancock Life Insurance Company (U.S.A.), has completed its previously announced $22 billion reinsurance transaction with Corporate Solutions Life Reinsurance Company, a subsidiary of Venerable Holdings, Inc.
The arrangement see Venerable reinsure roughly $22 billion of variable annuity business from Manulife’s U.S. subsidiary John Hancock.
On a pro forma basis as of March 31st, 2021, the transaction increases Venerable’s assets under management and reinsurance to $94 billion.
The legacy book consists primarily of policies with Guaranteed Minimum Withdrawal Benefit riders, issued between 2003 and 2012 by Michigan-based John Hancock. Additionally, a small block of policies with only Guaranteed Minimum Death benefits is included.
John Hancock is retaining administration of the block as part of the reinsurance transaction.
David Marcinek, Chairman of Venerable, commented: “Venerable continues to demonstrate an exceptional ability to structure and close complex transactions within accelerated timeframe. Our expertise managing variable annuity liabilities is best in class and we remain focused on identifying further opportunities for growth.”
Manulife President and Chief Executive Officer (CEO), Roy Gori, said: “The successful completion of this U.S. Variable Annuity reinsurance transaction marks an important milestone in our ongoing commitment to optimizing our legacy portfolio.
“This transaction unlocks value for our shareholders and meaningfully reduces our go-forward risk profile, while contributing to our goal of shifting the earnings mix of our franchise to focus on our highest potential businesses. We are pleased to have achieved such a strong outcome.”
Pat Lusk, CEO of Venerable, added: “Our dedicated and talented colleagues continue to deliver stellar implementation results and consistently position Venerable for success in achieving our financial and business goals. We look forward to a successful long-term relationship with Manulife.”
