Unum Group announced the successful closing of its previously disclosed reinsurance transaction with Fortitude Reinsurance Company Ltd. The agreement, executed by Unum Life Insurance Company of America, involves ceding $3.4 billion of individual long-term care (LTC) reserves and approximately $120 million of individual disability insurance (IDI) in-force premium. This transaction was effective as of January 1, 2025.
The ceded business represents 19 percent of Unum's total LTC block and 20 percent of its in-force IDI premium. This strategic move is expected to generate approximately $100 million in capital benefits for Unum Group. Fortitude Re will retrocede the biometric risk to a highly rated global reinsurer, while Unum will continue to provide service and administration for the reinsured policies.
Richard P. McKenney, president and chief executive officer, stated that the closing of this transaction is a significant milestone in reducing the company’s exposure to the legacy long-term care business. He emphasized the company's continued focus on further reducing its risk profile, delivering growth in core businesses, and optimizing capital to deliver value for shareholders.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.