Venerable Reaches Reinsurance Deal With Manulife Financial

(RTTNews) - Venerable Holdings Inc. said that it has reached a deal with Manulife Financial Corp. (MFC) to reinsure about US$22 billion of variable annuity business from its U.S. subsidiary John Hancock.

The reinsured business primarily comprises contracts with guaranteed minimum withdrawal benefits (GMWB), issued between 2003 and 2012 by John Hancock Life Insurance Company (U.S.A.), a Michigan domiciled entity. John Hancock will retain administration of the block as part of the agreement.

On a pro forma basis, as of 31st March 2021, the transaction will increase Venerable's assets under risk management from US$71 billion to US$94 billion.

The transaction is expected to close in the first quarter of 2022.