Unum Group Engages in $3.4 Billion Long-Term Care Reinsurance Agreement with Fortitude Re
Chattanooga, Tenn. Unum Group (NYSE: UNM), a leading provider of employee benefits and insurance products, has announced a transformative reinsurance transaction involving its Unum Life Insurance Company of America subsidiary. Starting January 1, 2025, this strategic maneuver will see Unum cede a substantial portion of its individual long-term care (LTC) insurance policies to Fortitude Reinsurance Company Ltd. (Fortitude Re), on a coinsurance basis. The move encompasses 19% of Unum s total LTC insurance block, alongside a significant quota share of Individual Disability Insurance (IDI) policies reinsured from an affiliate, constituting 20% of Unum s total in-force IDI premium.
This $3.4 billion agreement marks a striking development in Unum s ongoing efforts to optimize its risk profile and enhance capital efficiency through strategic partnerships with renowned reinsurance entities like Fortitude Re. The transaction is poised to bolster Unum s financial position, mitigate risks associated with its insurance offerings, and reinforce its capacity to innovate and deliver value in its core business areas.
Richard McKenney, CEO of Unum Group, commented on the deal, stating, This agreement with Fortitude Re underscores our commitment to proactively managing our portfolio, ensuring long-term stability, and delivering value to our stakeholders. By transferring a portion of our LTC and IDI blocks, we are better positioned to focus on our growth s and continue providing excellence in our insurance services.
Fortitude Re, known for its expertise in managing complex insurance and reinsurance solutions, will assume responsibility for the specified blocks, echoing its reputation as a trusted partner for insurers seeking to strengthen their financial frameworks.
As the healthcare landscape continually evolves, Unum s strategic decisions reflect a forward-looking approach to navigating industry challenges and opportunities. The reinsurance agreement with Fortitude Re is expected to catalyze further growth and innovation within Unum s operational ventures.
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