New York Life has completed the acquisition, through reinsurance, of a net 60% interest in John Hancock Financial’s closed block, comprised primarily of participating whole life insurance policies.
The transaction, which was initially announced in December 2014, has received all necessary regulatory approvals.
The closed block of 1.3 million in-force policies with a face amount of more than $25 billion was established in connection with John Hancock’s demutualization in 2000. Through reinsurance arrangements, New York Life has assumed $7 billion of statutory reserves.
New York Life’s NYL Investors, LLC unit, which oversees the company’s general account investments, manages approximately $12 billion in new assets as a result of the deal. With these additional assets, New York Life’s general account assets now exceed $213 billion*, a record high for the company.
John Hancock, the U.S. division of Manulife Financial Corporation, will continue to administer the closed block policies, including paying claims and dividends. Terms of the transaction were not disclosed.
New York Life Chairman and CEO Ted Mathas said, "The conclusion of this transaction brings New York Life a significant infusion of high-quality, whole life insurance assets, which serves as a strategic complement to our large and stable block of participating whole life insurance policies protecting millions of American families. Our acquisition of these whole life policy assets underscores our strategic focus on, and commitment to, growing our life insurance business, the fundamental business of New York Life for the past 170 years."