Unum Group announced its intention to reinsure a portion of its long-term care reserves and multi-life individual disability insurance business with Fortitude Re. This strategic move aims to allow Unum to concentrate on its higher-returning core businesses.
The company plans to transfer approximately $3.4 billion of individual long-term care reserves and $120 million of individual disability insurance in-force premium to Fortitude Re. This transaction is a key component of Unum's ongoing portfolio optimization strategy.
By ceding these long-duration liabilities, Unum seeks to enhance its financial flexibility and reduce its exposure to less strategic product lines. This initiative supports the company's broader objective of streamlining operations and allocating capital more efficiently towards growth segments.
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