By Canadian Press

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

Dec 11, 2023 | 5:33 AM

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.

Manulife says it has received approval from the Office of the Superintendent of Financial Institutions to buy back up to about 2.8 per cent of its outstanding common shares starting in February.

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The share repurchase plan remains subject to the approval of the Toronto Stock Exchange.

This report by The Canadian Press was first published Dec. 11, 2023.

Companies in this story: (TSX:MFC)

The Canadian Press