Manulife Financial Agrees To Reinsure To Global Atlantic Four Blocks Of Legacy/Low Roe Business, Including C$6B Of Long-Term Care Reserves
Portfolio Pulse from Benzinga Newsdesk
Manulife Financial has agreed to reinsure C$13 billion of reserves, including C$6B of long-term care reserves, to Global Atlantic and its partners. This deal is expected to release $1.2 billion of capital for Manulife, which they plan to return to shareholders through share buybacks.
December 11, 2023 | 11:54 am
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Manulife Financial's reinsurance deal with Global Atlantic is expected to release $1.2 billion of capital, which will be returned to shareholders through share buybacks.
The transaction is significant for Manulife as it not only frees up a substantial amount of capital but also demonstrates the company's commitment to returning value to its shareholders. The announcement of share buybacks is typically viewed positively by the market as it often leads to an increase in the stock price due to the reduction in the number of shares outstanding and the signal that the company believes its stock is undervalued.
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