Unum Group reduces long-term care exposure by 40% since last year with latest reinsurance agreement.
Unum Group will reinsure an additional $3.8 billion of long-term care statutory reserves with Fortitude Re, increasing total reinsured reserves to $7 billion. The move cuts the company’s long-term care exposure by 40% compared to the start of 2023.
The transaction will lower Unum’s total long-term care statutory reserves from $14.8 billion to approximately $11 billion after closing. The deal removes all remaining individual long-term care business from Fairwind, leaving primarily group long-term care.
Unum will use $650 million of holding company excess capital for the transaction but maintains its capital return plans, including $1.3 billion in expected dividends and share buybacks in 2026. The deal is set to take effect April 1, 2026, pending regulatory approvals.