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Unum Group Announces $3.4 Billion Long-Term Care Reinsurance Transaction with Fortitude Re

1. Unum Group will cede 19% of LTC and 20% of IDI insurance policies. 2. The agreement with Fortitude Re aims to enhance financial stability.

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FAQ

Why Bullish?

Ceding a significant block of insurance reduces risk exposure and may improve profitability, similar to past agreements in the industry that positively affected share prices.

How important is it?

This strategic move enhances Unum's risk management profile, likely leading to a favorable market perception and potentially improved stock performance.

Why Long Term?

The agreement takes effect in January 2025, indicating a longer-term impact on financial stability and growth opportunities.

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FLGPRUMET
CHATTANOOGA, Tenn.--(BUSINESS WIRE)--Unum Group (NYSE: UNM) announced today that its Unum Life Insurance Company of America subsidiary (Unum America) has agreed to enter into an agreement to cede to Fortitude Reinsurance Company Ltd. (Fortitude Re), on a coinsurance basis, individual LTC insurance policies representing 19% of Unum's total LTC block and a quota share of IDI policies reinsured from an affiliate representing 20% of Unum's total in-force IDI premium, effective January 1, 2025. At t.

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