WEST CHESTER, Pa., Nov. 15, 2021 /PRNewswire/ — Venerable Holdings, Inc. («Venerable»), the leader in providing innovative risk transfer solutions to variable annuity issuers, today announced a transaction with Manulife Financial Corporation (NYSE: MFC) («Manulife») to reinsure approximately US$22 billion of variable annuity business from its U.S. subsidiary John Hancock.
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.
«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 David Marcinek, 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 US$71 billion to US$94 billion.
Pat Lusk, 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.
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.
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., 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 www.venerable.com.
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