Toronto – October 01, 2026 -- Manulife Financial Corporation has closed a reinsurance transaction transferring biometric risk on a block of long-term care policies carrying $3.2 billion in reserves to Munich American Reassurance Company, a US subsidiary of Munich Re Group.
Manulife offloads $3.2 billion in long-term care reserves to Munich Re Life US
The deal shifts biometric risk exposure tied to the long-term care block off Manulife's balance sheet and onto Munich Re Life US, a subsidiary specializing in life and disability reinsurance for North American carriers. The transaction was first announced on August 5, 2026, and has now reached formal closing.
Transaction follows broader industry push to de-risk legacy long-term care liabilities
Long-term care blocks have historically posed persistent reserve and reunderwriting pressure for life insurers, prompting carriers to pursue reinsurance structures that transfer biometric risk to specialized reinsurers. Munich Re Life US has positioned itself as a reinsurer offering tailored financial reinsurance solutions aimed at helping carriers manage organic growth and capital efficiency.