Manulife signs reinsurance deal with Global Atlantic, plans to buy back shares

TORONTO — Manulife Financial Corp. has signed a reinsurance deal with Global Atlantic that it says will free up $1.2 billion in capital that it plans to use to buy back shares.

The Toronto-based insurer says it is reinsuring $13 billion of reserves to Global Atlantic and its partners, including $6 billion in long-term care reserves. It is Manulife’s third deal with Global Atlantic.

Manulife says the deal is expected to release $1.2 billion of capital that it plans return to shareholders via share buybacks.

Manulife chief executive Roy Gori called the agreement a major milestone for the company as it reshapes its portfolio, reduces risk and delivers value to shareholders.