Manulife Financial (MFC) said late Wednesday it signed a $5.4 billion reinsurance agreement with Reinsurance Group of America (RGA).
The deal included reinsuring $2.4 billion of long-term care reserves to RGA. The company said the transaction is accretive to core return on equity, offers 11.4x multiple to core earnings, and will have a "neutral impact" on core earnings per share.
The transaction is expected to release $800 million of capital, which the company intends to return in full to shareholders through common share buybacks.
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