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.
About Venerable
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.
Contact:
Venerable
Allison Proud
Corporate Communications
+(610) 249-9730
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SOURCE Venerable