Unum Group Closes $3.4 Billion Long-Term Care Reinsurance Transaction with Fortitude Re
'With the close of this transaction we have achieved a significant milestone in reducing the company's exposure to the legacy long-term care business,' said Richard P. McKenney, president and chief executive officer. 'Looking forward, we remain focused on further reducing our risk profile, delivering growth in our core businesses, optimizing our capital, and delivering value for our shareholders.'
According to the agreement, Unum America will cede $3.4 billion of individual LTC reserves and approximately $120 million of IDI in-force premium to Fortitude Re, on a coinsurance basis. The ceded business comprises individual LTC insurance policies representing 19% of Unum's total LTC block and a quota share of IDI policies reinsured from an affiliate representing 20% of Unum's total in-force IDI premium. Overall the transaction is expected to generate approximately $100 million capital benefit. As previously announced, Fortitude Re will retrocede biometric risk to a highly rated global reinsurer. Unum will continue to provide service and administration for the reinsured business.
Debevoise & Plimpton LLP served as legal counsel to Unum in connection with this transaction.
Forward-Looking Statements
Certain statements in this release constitute 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are made based on management's current expectations and beliefs concerning future developments and their potential effects upon Unum Group and its subsidiaries. Unum Group's actual results may differ, possibly materially, from expectations or estimates reflected in such forward-looking statements. Certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements can be found in Part 1, Item 1A (Risk Factors) of Unum Group's Annual Report on Form 10-K for the year ended December 31, 2024. The forward-looking statements in this release speak only as of the date of this release, and Unum Group does not undertake to update any particular forward-looking statement included in this release.
About Unum Group
Unum Group (NYSE: UNM), a leading international provider of workplace benefits and services, has been helping workers and their families thrive for more than 175 years. Through its Unum and Colonial Life brands, the company offers disability, life, accident, critical illness, dental, and vision insurance; leave and absence management support; and behavioral health services. In 2024, Unum Group reported revenues of $12.9 billion and paid $8.0 billion in benefits. The Fortune 500 company is recognized as one of the World's Most Ethical Companies by Ethisphere®.
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