New York Life has announced that it will acquire through reinsurance 60% of John Hancock Financial’s closed block, made up primarily of participating whole life insurance. In addition, New York Life announced a separate agreement under which it will sell New York Life Retirement Plan Services (RPS), excluding the stable value business, to John Hancock, which will merge RPS with John Hancock Retirement Plan Services. The combined business will cover 55,000 retirement plans.
The block of 1.3 million policies was closed in connection with John Hancock’s demutualization in 2000, and includes more than $11 billion in liabilities. Through a reinsurance arrangement, New York Life will assume $7 billion of those liabilities. The policies have a face amount of more than $25 billion.