Major Reinsurance Deal: Unum Transfers ~$5.7B LTC Assets to Fortitude Re
UNM sits 35% above its 52-week low of $68.275.
Summary
Unum Group announced a significant reinsurance transaction, transferring approximately $5.7 billion in assets and cash related to a closed block of its individual long-term care (LTC) business to Fortitude Re. The deal includes a $125 million volatility cover provided by Unum. This follows an 8-K filed earlier today disclosing a major reinsurance transaction for $3.8 billion of LTC statutory reserves. This transaction is highly material, representing roughly 38% of Unum's market capitalization in transferred assets. It significantly de-risks Unum's balance sheet by offloading long-tail LTC liabilities, which have historically been a source of volatility and reserve increases, as seen in the $478.5 million pre-tax net reserve increase in 2025. The deal is expected to unlock capital and provide tax benefits, improving the company's financial flexibility and stability. The closing of the coinsurance agreement is expected within six months.
At the time of this announcement, UNM was trading at $92.00 on NYSE in the Finance sector, with a market capitalization of approximately $14.8B. The 52-week trading range was $68.28 to $93.22. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Wiseek News.