On March 25, 2024, Manulife Financial Corporation announced a reinsurance agreement with RGA Life Reinsurance Company of Canada, involving $5.8 billion of reserves from its Canadian Universal Life insurance block. This transaction, the largest of its kind in Canada, will release $0.8 billion in capital, which Manulife plans to return to shareholders through share buybacks, enhancing core return on equity (ROE) and earnings per share (EPS). Additionally, Manulife expects to sell $0.6 billion in alternative long-duration assets (ALDA) related to this block. The deal, valued at 16.2 times earnings and book value, aligns with Manulife's strategy to transform its portfolio towards higher ROE and lower risk. The transaction, which is not subject to closing conditions, will close in the second quarter of 2024. It includes a 100% quota share reinsurance and structural protections, like posted collateral. Manulife will maintain policy administration for seamless customer service, and the deal is expected to slightly reduce core earnings and net income while being accretive to core ROE and EPS. Manulife also received regulatory approval to increase its share repurchase limit, reflecting its commitment to shareholder value.