Core Viewpoint - Unum Group's subsidiary, Unum Life Insurance Company of America, has entered into a coinsurance agreement with Fortitude Reinsurance Company to reinsure long-term care reserves and cede individual disability insurance business, expected to close in 2025 [1][2]. Group 1: Transaction Details - Unum America will cede 19% of its total long-term care block and 20% of its in-force individual disability insurance premium to Fortitude Re, effective January 1, 2025 [2]. - The transaction involves ceding $3.4 billion of individual long-term care reserves and approximately $120 million of individual disability insurance in-force premium to Fortitude Re [2]. Group 2: Financial Impact - The transaction is projected to provide Unum Group with an estimated $100 million capital benefit, including a $200 million capital impact from the reinsured long-term care block and a $300 million benefit from the reinsured individual disability insurance block [3]. - Unum Group's Closed Block segment reported a 16.4% decrease in adjusted operating income in 2024, primarily due to unfavorable benefits experience in long-term care [5]. Group 3: Strategic Shift - This agreement allows Unum Group to reduce its exposure to legacy long-term care business and focus on more capital-efficient, higher-returning core businesses [6]. - The company aims to lessen the impact of the closed block segment, which includes insurance products no longer actively marketed [4][6]. Group 4: Stock Performance - Unum Group's shares have increased by 65.6% over the past year, outperforming the industry growth of 33.6% and the Finance sector's growth of 21.7% [7].
Unum Group to Reinsure Long-Term Care Reserves With Fortitude Re