Unum Group has announced the completion of a significant reinsurance transaction with Fortitude Re, a global reinsurance company. Under the terms of the agreement, effective January 1, 2025, Unum will cede $3.4 billion of individual long-term care statutory reserves and approximately $120 million of multi-life individual disability insurance in-force premiums to Fortitude Reinsurance Company Ltd., a subsidiary of Fortitude Re. This cession represents 19% of Unum Group's total long-term care block and 20% of its in-force individual disability insurance premium. Despite the transfer, Unum will continue to manage and administer the reinsured policies. Additionally, Fortitude Re has arranged to retrocede the insurance risks to a highly rated global reinsurance partner, retaining only the underlying spread-based risks. Sidley Austin LLP provided legal counsel to Fortitude Re for this transaction.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.