Venerable Enters into $22 Billion Reinsurance Agreement with Manulife Financial Corporation

Posted on 11/25/2021

Disclosed on November 15, 2021, Venerable Holdings, Inc. announced a transaction with Manulife Financial Corporation (NYSE: MFC) to reinsure approximately US$ 22 billion of variable annuity business from its U.S. subsidiary John Hancock. On a pro forma basis, as of March 31, 2021 the transaction will increase Venerable’s assets under risk management from US$ 71 billion to US$ 94 billion.

The reinsured business primarily comprises contracts with guaranteed minimum withdrawal benefits (GMWB), issued between 2003 and 2012 by John Hancock Life Insurance Company (U.S.A.), a Michigan domiciled entity. A small block of policies with only guaranteed minimum death benefits (GMDB) is also included. John Hancock will retain administration of the block as part of the agreement.

The transaction is expected to close in the first quarter of 2022, subject to customary closing conditions.

Venerable is a privately held company with business operations based in West Chester, Pennsylvania and Des Moines, Iowa. Venerable owns and manages legacy variable annuity business acquired from other entities. Created by an investor group led by affiliates of Apollo Global Management, LLC, Crestview Partners, Reverence Capital Partners, and Athene Holdings, Ltd.

Wells Fargo Securities, LLC is serving as financial advisor, and Sidley Austin LLP is serving as legal counsel to Venerable in connection with this transaction.

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