By Denny Jacob
Unum Group said its subsidiary agreed to enter a $3.4 billion reinsurance transaction with Fortitude Reinsurance.
The provider of workplace benefits and services said Unum Life Insurance Company of America agreed to cede, on a coinsurance basis, individual long-term care insurance policies representing 19% of Unum's total long-term care block and a quota share of IDI policies reinsured from an affiliate representing 20% of Unum's total in-force IDI premium.
The subsidiary will cede $3.4 billion of individual long-term-care reserves and about $120 million of IDI in-force premium to Fortitude Re, who will then retrocede biometric risk to a global insurer. The IDI portion of the transaction will consist of business reinsured from an affiliate, Provident Life and Accident Insurance, and won't include new business going forward.
The transaction is expected to generate an estimated $100 million capital benefit and close during 2025, said Unum.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
February 27, 2025 06:41 ET (11:41 GMT)
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