Unum Group Cuts Long-Term Care Risk With $3.8B Reinsurance Deal

Unum Group agreed to reinsure an additional $3.8 billion of long-term care statutory reserves with Fortitude Re, bringing total reinsured LTC reserves to $7 billion and reducing its exposure by 40% from the start of last year.

The deal removes all of Unum’s remaining individual long-term care business from Fairwind, leaving mainly group LTC there, while total LTC statutory reserves are expected to fall from $14.8 billion to about $11 billion after closing.

Unum said the transaction will use $650 million of holding company excess capital, but capital return plans remain unchanged , including about $1.3 billion in expected dividends and share buybacks in 2026.

Unum Group NYSE: UNM said it has agreed to reinsure an additional portion of its long-term care insurance liabilities, marking the company’s third major external reinsurance transaction and its second involving long-term care. On a conference call with analysts, President and CEO Rick McKenney said the agreement will cede $3.8 billion of long-term care statutory reserves, bringing total long-term care reserves reinsured to $7 billion. He said the transactions have reduced Unum’s exposure by 40% compared with the beginning of last year.

The transaction is effective April 1, 2026, and is expected to close during 2026, subject to regulatory approvals and other customary closing conditions, according to Matt Royal, senior vice president of investor relations and treasury.

McKenney said the transaction removes all of Unum’s individual long-term care business that was originally written by Unum...