Unum Group To Cede $3.4 Bln LTC Insurance Policies To Fortitude, Stock Up

(RTTNews) - Unum Group (UNM) Thursday announced that its subsidiary, Unum Life Insurance Company of America, will transfer portions of its long-term care or LTC and individual disability insurance or IDI policies to Fortitude Reinsurance Company Ltd. through a co-insurance agreement effective January 1. The transaction involves ceding $3.4 billion in LTC reserves and $120 million in IDI premiums, generating an estimated $100 million capital benefit. Unum will continue servicing the reinsured policies. The deal, expected to close in 2025 pending regulatory approvals, aligns with Unum's strategy to reduce legacy risks and enhance capital efficiency.

UNM is currently trading premarket at $83.00 up 7.18 percent or $5.55 on the New York Stock Exchange.