Venerable Enters into Reinsurance Agreement with Manulife Financial Corporation

iCrowdNewswire

<img src="https://icrowdnewswire.com/wp-content/uploads/2020/11/4000-logo.png" width="233" height="24" /> <org value="ACORN:1035824122" idsrc="xmltag.org" >Venerable Holdings, Inc.</org> (“Venerable”), the leader in providing innovative risk transfer solutions to variable annuity issuers, today announced a transaction with <org value="NYSE:MFC" idsrc="xmltag.org" >Manulife Financial Corporation</org> to reinsure approximately <money>US$22 billion</money> of variable annuity business from its <location value="LC/us" idsrc="xmltag.org" >U.S.</location> subsidiary <person>John Hancock</person>.
The reinsured business primarily comprises contracts with guaranteed minimum withdrawal benefits (GMWB), issued between 2003 and 2012 by John Hancock Life Insurance Company (<location value="LC/us" idsrc="xmltag.org" >U.S.A.</location>), a <location value="LS/us.mi" idsrc="xmltag.org" >Michigan</location> domiciled entity. A small block of policies with only guaranteed minimum death benefits (GMDB) is also included. <person>John Hancock</person> will retain administration of the block as part of the agreement.
“Today’s announcement evidences the continued execution of Venerable’s growth strategy, demonstrates the strength of our team, and further establishes us as the partner of choice in the variable annuity risk transfer space,” said <person>David Marcinek</person>, Chairman of Venerable. “Manulife is a sophisticated counterparty with exacting risk management objectives, and we look forward to working with them to realize the value this agreement will deliver to both of our organizations.”
On a pro forma basis, as of 3/31/2021, the transaction will increase Venerable’s assets under risk management from <money>US$71 billion</money> to <money>US$94 billion</money>.
<person>Pat Lusk</person>, Venerable’s CEO, said, “We value the opportunity to work with Manulife on this transaction, and our organization stands ready to execute a successful close early next year. Our unique risk transfer offering and accomplished team, coupled with our robust valuation, hedging, and risk management practices, continue to provide exceptional value to counterparties.”
The transaction is expected to close in the first quarter of 2022, subject to customary closing conditions.
<org value="ACORN:1648682691" idsrc="xmltag.org" >Wells Fargo Securities, LLC</org> is serving as financial advisor, and <org value="ACORN:0585050338" idsrc="xmltag.org" >Sidley Austin LLP</org> is serving as legal counsel to Venerable in connection with this transaction.
About Venerable
Venerable is a privately held company with business operations based in <location value="LU/us.pa.wester" idsrc="xmltag.org" >West Chester, Pennsylvania</location> and <location value="LU/us.ia.desmns" idsrc="xmltag.org" >Des Moines, Iowa</location>. Venerable owns and manages legacy variable annuity business acquired from other entities. Created by an investor group led by affiliates of <org>Apollo Global Management, LLC</org>, <org value="ACORN:2460137578" idsrc="xmltag.org" >Crestview Partners</org>, <org value="ACORN:3512144962" idsrc="xmltag.org" >Reverence Capital Partners</org>, and <org value="ACORN:0721921274" idsrc="xmltag.org" >Athene Holdings, Ltd.</org>, Venerable is a business with well-established, strategic investors, experienced in successfully building and growing insurance businesses with patient, long-term capital. For more information, please visit <a href="http://www.venerable.com">www.venerable.com</a>.
Contact:
Venerable <person>Allison Proud</person> Corporate Communications +(610) 249-9730

<div>See Campaign: <a href="http://www.venerable.com" target="_blank"><a href="http://www.venerable.com">http://www.venerable.com</a></a> Contact Information: <org>Allison Proud
Corporate Communications</org>
+(610) 249-9730 </div>