10:05 AM EDT, 03/25/2024 (MT Newswires) -- Manulife Financial Corporation ( MFC ) on Monday agreed to reinsure $5.8 billion of reserves of low ROE Canadian Universal Life block to RGA Life Reinsurance Company of Canada.

Among key highlights it said the transaction: Represents the largest Universal Life reinsurance transaction in Canada, with an "attractive" earnings multiple of 16.2 times and book value multiple of 1.0 times. It releases $0.8 billion of capital, which Manulife intends to return to shareholders via share buybacks, resulting in core ROE and core EPS accretion of 0.14pps and $0.01, respectively; as well as ROE and EPS accretion of 0.16pps and $0.02 , respectively. It expects to dispose $0.6 billion of alternative long-duration assets.

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