Unum Group Cedes $3.8B of LTC Liabilities to Fortitude Re
UNM•Unum Group has signed a reinsurance deal to cede $3.8 billion of long-term care insurance liabilities to Fortitude Re. The agreement is designed to strengthen Unum’s capital position and reduce exposure to future LTC claim volatility.
1. Reinsurance Transaction Details
Unum Group has entered into an agreement with Fortitude Re to transfer $3.8 billion of existing long-term care insurance liabilities. The transaction covers specific blocks of in-force LTC policies previously retained on Unum’s balance sheet.
2. Capital and Risk Management Impact
By ceding these liabilities, Unum expects to lower reserve requirements and bolster its statutory capital ratios. The reinsurance structure also aims to mitigate future volatility associated with LTC claim trends.
3. Regulatory Approval and Timeline
The transaction is subject to customary regulatory approvals in key jurisdictions and is anticipated to close later this year, allowing Unum to recognize capital relief once finalized.
