WASHINGTON— New York Life has completed the acquisition of a majority interest in $25 billion of in-force life insurance policies from John Hancock.
New York Life disclosed that earlier this year that its general account, managed for the benefit of policyholders, exceeded $200 billion in assets for the first time in its 170-year history. With these additional assets, New York Life’s general account assets now exceed $213 billion, a record high for the company, officials said.
The John Hancock deal involved acquiring a net 60 percent interest in John Hancock’s “closed block” of primarily participating whole life policies. The transaction was initially announced in December and has been completed by receiving all necessary regulatory approvals.
Involved are 1.3 million in-force life insurance policies established as a separate block in connection with John Hancock’s demutualization in 2000.
New York Life has assumed $7 billion of statutory reserves. In addition, the New York Life unit, which oversees the company’s general account investments, will now manage approximately $12 billion in new assets as a result of the deal.
John Hancock, the U.S. division of Manulife Financial, will continue to administer the closed block policies, including paying claims and dividends. Terms of the transaction were not disclosed.
InsuranceNewsNet Washington Bureau Chief Arthur D. Postal has covered regulatory and legislative issues for more than 30 years. He can be reached at [email protected].
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