Unum Group said 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 base to about $11.0 billion.
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, based on March 31, 2026 figures. The block also carries about $4.5 billion of best estimate reserves.
After closing, Unum said roughly 70% of its remaining LTC statutory reserves will back group LTC policies, which it said have more basic benefit structures than individual policies.
The deal comes on top of a 2025 LTC reinsurance transaction. Together, the two external transactions reduce Unum’s closed-block LTC statutory reserves by more than $7 billion and cut total LTC statutory reserves by about 40%.
Unum said it expects year-end 2026 holding company liquidity of $1.5 billion to $2.0 billion after the transaction, with leverage of about 25% and RBC of 400% to 425%. The company said the transaction’s earnings impact should be limited to lost investment income and added interest expense tied to financing.
Unum will keep administering the reinsured business, including claims handling and premium rate increase program management. The company said the transaction is expected to close in 2026. The market has reacted to these announcements by moving the company's shares -4.01% to a price of $88.6375. Check out the company's full 8-K submission here.
