Manulife Financial Corporation ("Manulife" or the "Company") announced today that it has agreed to reinsure biometric risk1 on a block of long-term care ("LTC") policies with $3.2 billion of reserves2 to Munich American Reassurance Company ("Munich Re Life US"), a subsidiary of Munich Re Group, highlighting the Company's continued efforts to reduce the risk profile of its inforce portfolio. The transaction is expected to close in Q4 2026 pending regulatory approvals.

Key highlights of the transaction include:

"Today's announcement represents our third LTC reinsurance transaction in under three years and first on a standalone LTC block, reflecting our ability to reduce our risk profile and strengthen our business through innovative actions. Looking ahead, we continue to see meaningful opportunities to improve our long-term care portfolio through organic initiatives that will enhance risk-adjusted returns and generate significant shareholder value."

- Phil Witherington, President & Chief Executive Officer, Manulife

Slides related to this announcement are included as part of the 2Q26 earnings presentation available here: 2Q26 results presentation 

About Manulife

Manulife Financial Corporation is a leading international financial services provider, headquartered in Toronto, Canada. Anchored in our ambition to be the number one choice for customers, we operate as Manulife across Canada and Asia, and primarily as John Hancock in the United States, providing financial advice, insurance and health solutions for individuals, groups and businesses. Through Manulife Wealth & Asset Management, we offer global investment solutions, financial advice, and retirement plan services to individuals, institutions, and retirement plan members worldwide. At the end of 2025, we had more than 37,000 employees, over 106,000 agents, and thousands of distribution partners, serving over 37 million customers with operations across 25 markets globally. We trade as 'MFC' on the Toronto, New York, and Philippine stock exchanges, and under '945' on the Hong Kong stock exchange.

About Munich Re Life US

Munich Re Life US, a subsidiary of Munich Re Group, is a leading US reinsurer with a significant market presence and extensive technical depth in all areas of life and disability reinsurance. Beyond vast reinsurance capacity and unrivaled risk expertise, the company is recognized as an innovator in digital transformation and aims to guide carriers through the changing industry landscape with dynamic solutions insightfully designed to grow and support their business. Munich Re Life US also offers tailored financial reinsurance solutions to help life and disability insurance carriers manage organic growth and capital efficiency as well as M&A support to help achieve transaction success.

Non-GAAP and other financial measures

Manulife prepares its Consolidated Financial Statements in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board. We use a number of non-GAAP and other financial measures to evaluate overall performance and to assess each of our businesses. Core earnings is a non-GAAP financial measure. For more information on the non-GAAP financial measures and non-GAAP ratios in this document please see section E3 "Non-GAAP and other financial measures" of the 2Q26 MD&A which is incorporated by reference and available on the SEDAR+ website at www.sedarplus.com.

Caution regarding forward-looking statements

This document contains forward-looking statements within the meaning of the "safe harbour" provisions of Canadian provincial securities laws and the U.S. Private Securities Litigation Reform Act of 1995, including statements regarding the expected timing and closing of the reinsurance transaction described herein and its expected impact and future opportunities to improve our long-term care portfolio.

Although we believe that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors and assumptions that could cause actual results to differ materially from expectations include but are not limited to the receipt of required regulatory approvals, satisfaction of customary closing conditions, the accuracy of actuarial assumptions and reserve estimates, changes in economic, market or regulatory conditions, the accuracy of information received from counterparties and the ability of counterparties to meet their obligations. Additional information regarding material risk factors may be found in our most recent annual and interim reports and other filings with Canadian and U.S. securities regulators.

The forward-looking statements in this document are stated as of the date hereof and, except as required by law, we do not undertake to update any forward-looking statements.

Media Inquiries

Fiona McLean(437) 441-7491fiona_mclean@manulife.com

Investor Relations

Derek Theobalds(416) 254-1774derek_theobalds@manulife.com

SOURCE Manulife Financial Corporation

SOURCE: Manulife Financial Corporation

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