$3.8B Long-Term Care Deal A Sign Of Reinsurance Market's Evolution

With its July 6 agreement to assume approximately $3.8 billion in statutory reserves of Unum Group's individual long-term care business, reinsurer Fortitude Reinsurance Company Ltd. will more than double the size of a relationship it entered in 2025. US life insurers reported $110.82 billion of reserve credits and modified coinsurance reserves associated with individual and group long-term care business as of year-end 2025, according to data reported on Schedule S, Part 3, Section 2 of annual statements. With many large US life insurers already having reinsured in-force blocks of individual annuity business as well as entered forward flow transactions for new annuity business production, reinsurers have taken a multifaceted approach to continue to drive growth, including through strategies such as outright acquisitions of direct liability origination platforms, significant allocation of capital and resources to the pursuit of block deals in Japan and select other Asian markets, and increased appetite for risks like long-term care and universal life with secondary guarantees. Life reinsurers continue to broaden their appetite for a more diverse array of liabilities, including expansion into new geographies and lines of business that some may have previously eschewed. US life insurers reported $47.72 billion in