Unum announced a reinsurance transaction for a portion of its closed block individual long-term care business with Fortitude Re, under which Unum expects to transfer approximately $5.7 billion of assets and cash at closing, subject to adjustments. The parties plan to execute a coinsurance agreement effective April 1, 2026, ceding a 100% quota share while Unum retains policy administration and may receive experience refunds tied to rate increases. In support of the retrocession, Unum subsidiary Provident Life and Accident will provide a $125 million (NPV) experience volatility cover to the retrocession partner, secured by a trust and settled every five years. Unum expects capital and tax benefits from the deal while maintaining participation in potential future premium rate increases.

Agreement 1: Unum Strikes Reinsurance Deal With Fortitude Re, Ceding LTC Block Backed by ~$5.7 Billion Assets

  • Agreement type: Master Transaction Agreement for long-term care reinsurance
  • Counterparty: Fortitude Re
  • Signed / Effective: Jul 02 2026 / same
  • Duration / Termination: Up to 6 months to Closing
  • Reason: De-risk legacy LTC and unlock capital and tax benefits

Agreement 2: Unum and Fortitude Re to Enter 100% Quota-Share Coinsurance on Closed LTC Block Effective Apr 1, 2026

  • Agreement type: Coinsurance Agreement (100% quota-share of closed block individual LTC)
  • Counterparty: Fortitude Re
  • Signed / Effective: N/A / Apr 01 2026
  • Duration / Termination: N/A
  • Reason: Transfer risk while retaining policy administration

Agreement 3: Unum's PLA Provides $125 Million Volatility Cover to Retrocession Partner for LTC Block

  • Agreement type: Experience volatility cover (cap $125 million NPV)
  • Counterparty: Third-Party Global Reinsurer
  • Duration / Termination: Settled every five years; secured by trust
  • Reason: Support retrocession and align economics

Original SEC Filing:

This is an AI-powered summary. It may contain inaccuracies. Consider verifying important information with the source. Please note this summary is solely based on documents filed with the SEC.