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Munich Re Assumes $3.2bn LTC Risk From Manulife
Third LTC reinsurance transaction in under three years extends Manulife’s de-risking programme.
10 August 2026 • Page 3 • Reinsurance & Transactions
First Standalone LTC Block Signals Growing Reinsurer Confidence in the Class
The Transaction
Munich Re has agreed to assume the biometric risk on a $3.2 billion block of long-term care policies from Manulife, through its US life reinsurance subsidiary, Munich American Reassurance Company.
The deal is structured to be capital-neutral, with an expected $30 million negative first-year earnings impact that declines over time, and is set to close in Q4 2026 pending regulatory approval. Manulife expects the transaction to cut its cumulative LTC morbidity sensitivity by 24%.
The Strategic Picture
Sits alongside UNUM’s $3.8bn cession to Fortitude Re (13 July edition) as further evidence that LTC de-risking has become a repeatable, multi-player trend rather than a series of isolated large transactions.
Manulife’s pattern — three deals in under three years — is worth tracking as a bellwether for how quickly the rest of the industry follows.
Market Perspective
LTC has historically been difficult to reinsure on a standalone basis, given long duration and poor industry-wide loss experience.
This is Manulife’s first standalone LTC block reinsured — its prior two transactions bundled LTC alongside other risk — and Munich Re’s willingness to take it on independently signals growing reinsurer confidence in pricing this class in isolation.
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