Unum Group said Monday it will cede $3.8 billion of long-term care statutory reserves to Fortitude Re in a coinsurance deal that cuts its remaining LTC reserve exposure by more than a quarter.
The transaction covers about 50,000 individual LTC policies and represents 26% of Unum’s total LTC statutory reserves and 52% of its individual LTC reserves as of March 31, 2026. After the deal closes, Unum expects its remaining LTC statutory reserves to fall to about $11.0 billion.
The company said roughly 70% of those remaining reserves will back group LTC policies, which have more basic benefit structures than individual policies.
The new reinsurance pact follows a similar transaction Unum announced in 2025. Together, the two deals will have reinsured more than $7 billion of LTC statutory reserves and reduced Unum’s total LTC statutory reserves by about 40%.
Unum said it will retain administration of the reinsured business, including claims handling and premium rate increase management. Fortitude Re will retrocede biometric risk on the block to a highly rated global reinsurer.
The company said the transaction is expected to leave it with year-end 2026 holding company liquidity of $1.5 billion to $2.0 billion, leverage of about 25%, and RBC of 400% to 425%.
Unum estimated the reinsured block at approximately $4.5 billion of best estimate reserves. The deal is expected to close during 2026. The market has reacted to these announcements by moving the company's shares -4.3% to a price of $88.365. Check out the company's full 8-K submission here.
