Manulife Financial Corporation agreed to reinsure $13 billion of reserves, including $6 billion in long-term care (LTC) reserves, to Global Atlantic, marking the largest ever LTC reinsurance transaction. This deal, involving four legacy/low ROE blocks, aims to reshape Manulife's portfolio, reducing LTC morbidity sensitivities by 12% and releasing $1.2 billion in capital. Manulife plans to return this capital to shareholders through share buybacks. The transaction, priced at book value, is expected to reduce core earnings annually by approximately $130 million but increase net income to shareholders by about $15 million. The deal, subject to regulatory approval, is set to close in the first half of 2024. Willkie Farr & Gallagher LLP served as legal counsel to Manulife.