Manulife announces largest canadian universal life reinsurance transaction

Continued momentum in manulife's transformation journey $0.8 billion capital release will be returned to shareholders through expanded buyback program tsx/nyse/pse: mfc sehk: 945 c$ unless otherwise stated toronto , march 25, 2024 /prnewswire/ - manulife financial corporation ("manulife" or the "company") announced today it has agreed to reinsure $5.8 billion of reserves1 of low roe canadian universal life block to rga life reinsurance company of canada ("rga"). key highlights of the transaction: reinsures $5.8 billion of reserves1 of low roe canadian universal life block represents largest universal life reinsurance transaction in canada attractive earnings multiple of 16.2 times2 and book value multiple of 1.0 times3 releases $0.8 billion of capital, which we intend to return to shareholders via share buybacks, resulting in core roe4 and core eps4 accretion of 0.14pps and $0.01, respectively; as well as roe4 and eps4 accretion of 0.16pps and $0.02, respectively expect to dispose $0.6 billion of alternative long-duration assets ("alda") "this transaction is the largest universal life reinsurance transaction in the canadian insurance industry and represents another milestone in our journey to transform our portfolio to higher roe and lower risk businesses.
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