Unum Group completes reinsurance deal for long-term care and disability blocks

Published 02/07/2025, 22:08
Unum Group completes reinsurance deal for long-term care and disability blocks

Unum Group (NYSE:UNM), a financial services company with a market capitalization of $14.14 billion and an "GREAT" financial health rating according to InvestingPro, announced the completion of a reinsurance transaction with Fortitude Reinsurance Company Ltd., according to a statement released Tuesday. The agreement, effective January 1, 2025, was finalized following the terms of a Master Transaction (JO:NTUJ) Agreement originally dated February 26, 2025.

Under the terms of the deal, Unum Life Insurance (NSE:LIFI) Company of America, a wholly owned subsidiary of Unum Group, entered into a coinsurance agreement with Fortitude Reinsurance Company Ltd. and, for certain limited purposes, New Reinsurance Company, Ltd. The arrangement covers a 100% quota share of a portion of Unum’s closed block individual long-term care business, representing $3.4 billion in statutory reserves. It also includes a 100% quota share of the individual disability business reinsured by Unum from Provident Life and Accident Insurance Company, amounting to approximately $120 million in in-force premium.

Fortitude Reinsurance Company Ltd. is organized under the laws of Bermuda, while New Reinsurance Company, Ltd. is organized under the laws of Switzerland.

The transaction was previously disclosed in Unum Group’s Form 8-K filed on February 27, 2025. The full text of the coinsurance agreement is expected to be filed as an exhibit to Unum Group’s Quarterly Report on Form 10-Q for the period ending June 30, 2025.

This information is based on a press release statement included in Unum Group’s filing with the U.S. Securities and Exchange Commission.

In other recent news, Unum Group reported its Q1 2025 earnings, which fell short of market expectations. The company announced an earnings per share (EPS) of $2.04, missing the forecasted $2.18, and revenue of $3.09 billion, below the anticipated $3.34 billion. Despite the earnings miss, Unum Group maintained a strong liquidity position with $2.2 billion in holding company cash. In a strategic move, Unum Group appointed Shelia Anderson as Executive Vice President and Chief Information and Digital Officer, who will lead the company’s digital transformation efforts. Additionally, Unum Group’s international segment showed growth, particularly in Poland. Analysts from various firms are closely monitoring these developments, with some expressing optimism about Unum’s growth prospects despite recent challenges. The company projects full-year sales growth between 5% and 10%, with expectations of improved earnings in future quarters. These developments highlight Unum Group’s ongoing efforts to adapt and grow in a competitive market.

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