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CHATTANOOGA, Tenn.--(BUSINESS WIRE)--
Unum Group (NYSE: UNM) announced today that its Unum Life Insurance Company of America subsidiary (Unum America) closed its previously announced reinsurance transaction with Fortitude Reinsurance Company Ltd. (Fortitude Re). As a part of the transaction, Fortitude Re will retrocede biometric risk to a highly rated global reinsurer. Unum will continue to provide service and administration for the reinsured business.
The reinsured block consists of approximately 50,000 individual LTC policies with $3.8 billion of statutory reserves and approximately $4.5 billion of best estimate reserves. Following the transaction, Unum’s remaining LTC block is predominantly group LTC policies, which generally have more basic benefit structures than individual LTC policies, with the remaining block supported by robust reserve margins.
The transaction represents significant progress in Unum’s execution of its closed block strategy and follows the company’s previous LTC reinsurance transaction in 2025. Together, the two external transactions have decreased the company’s closed block footprint through reinsurance by more than $7 billion of LTC statutory reserves. Unum continues to actively manage the remaining block through a range of actions, with employer decisions to terminate group LTC coverage also contributing to the continued decline in case counts and exposure.
Debevoise & Plimpton LLP served as legal counsel to Unum in connection with this transaction.
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 2025, Unum Group reported revenues of $13.1 billion and paid $8.3 billion in benefits. The Fortune 500 company is recognized as one of the World’s Most Ethical Companies by Ethisphere®.
Retrocede means a reinsurer passes part of the insurance risk it accepted on to another reinsurer, like a store handing off a big delivery to a specialist carrier. It matters to investors because retrocession changes how insurance risk, required capital and potential losses are spread across firms, which can affect balance-sheet strength, earnings volatility and exposure to other counterparties.
statutory reservesfinancial
Amounts that insurance companies and some financial firms are legally required to set aside to cover future policyholder claims or other obligations; regulators dictate how these reserves are calculated and reported. Think of it as a mandated emergency fund or safety cushion whose size and adequacy affect a company’s reported capital, solvency ratings, and the reliability of its ability to pay claims—information investors use to assess financial strength and risk.
best estimate reservesfinancial
The insurer’s actuarial calculation of the present value of future claim payments and related expenses using the most likely assumptions for things like claim frequency, severity, mortality, interest rates and expenses. Think of it as a careful best-guess price tag for the future obligations a company has promised to pay; it matters to investors because those numbers determine reported liabilities, profits and the capital needed to cover policyholder promises.
