Retirement and life insurance provider Global Atlantic Financial Group has successfully completed a $10 billion reinsurance deal with Manulife across the United States and Japan.
The agreement, initially disclosed in December, pertains to a comprehensive portfolio of Manulife’s life, annuity, and long-term care insurance business originating from the United States and Japan.
The transaction is also notable as it marks the third such collaboration between Global Atlantic and Manulife, and it also marks Global Atlantic’s inaugural venture into the Japanese reinsurance market. The supporting general account assets under management at the time of closing are estimated at $10 billion.
In conjunction with finalizing the reinsurance agreement with Manulife, Global Atlantic also concluded an arrangement to retrocede all the long-term care insurance risks from this transaction to a highly rated global reinsurance partner, maintaining only the spread-based risks associated with the long-term care segment of the portfolio.
Global Atlantic describes the transaction as one that enhances the firm’s standing as a preferred reinsurer within the annuity and life insurance sectors, extending its influence both within the US and on an international scale.
The company has a 20-year history of these engagements, executing over 40 transactions with almost 30 clients, and has reinsured assets exceeding $140 billion since its founding. The deal is recognized as one of the most significant reinsurance transactions in Japan in recent years.
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