Unum Group reinsures about 50,000 long‑term care policies with Fortitude Re
Unum Group closed a reinsurance transaction with Fortitude Re covering roughly 50,000 individual long‑term care policies. The deal transfers $3.8 billion of statutory reserves and about $4.5 billion of best‑estimate reserves to the reinsurer. Unum will continue to service and administer the reinsured policies, while Fortitude Re retroceded the risk to a global reinsurer. The transaction follows a similar reinsurance deal completed in 2025.
Why it matters
The company says the transaction reduces its exposure to the closed‑block individual LTC book, improving reserve margins. However, Unum will still retain servicing responsibilities and some LTC risk, so the net impact on earnings remains uncertain.
Key facts
- 1Approximately 50,000 individual long‑term care policies were reinsured. quantisnow.com
- 2$3.8 billion of statutory reserves were transferred in the reinsurance deal. tradingview.com
- 3Best‑estimate reserves transferred were approximately $4.5 billion. tradingview.com
- 4Unum will continue to service and administer the reinsured policies. stocktitan.net
- 5Fortitude Re retroceded 100% of the LTC insurance risks to a highly rated global reinsurer. stocktitan.net
- 6The transaction builds on a similar reinsurance deal completed in 2025. stocktitan.net
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.