Unum Life Insurance Company of America (Unum America) has concluded a reinsurance transaction with Fortitude Reinsurance Company. 

The deal was first announced in March 2025.  

The agreement involves Unum America ceding $3.4bn of individual long-term care (LTC) reserves and nearly $120m of in-force individual disability income (IDI) premium to Fortitude Re on a coinsurance basis. 

The transaction encompasses a portion of the individual Unum LTC insurance policies, representing 19% of the company’s total LTC block, and a quota share of IDI policies reinsured from an affiliate, which constitutes 20% of company’s total in-force IDI premium.  

The deal is expected to generate a capital benefit of roughly $100m to Unum. 

As part of the arrangement, Fortitude Re will retrocede biometric risk to a reinsurer, while Unum will retain its service and administration functions for the reinsured business. 

Legal advisory for the transaction was provided by Debevoise & Plimpton for Unum, and Sidley Austin for Fortitude Re. 

Unum president and CEO Richard P. McKenney said: “With the close of this transaction, we have achieved a significant milestone in reducing the company’s exposure to the legacy long-term care business.  

“Looking forward, we remain focused on further reducing our risk profile, delivering growth in our core businesses, optimising our capital, and delivering value for our shareholders.” 

This transaction follows Fortitude Re’s closure of a $4bn reinsurance deal in March with Taiyo Life Insurance Company, a subsidiary of T&D Holdings, which involved the reinsurance of a portion of Taiyo Life’s whole life annuity business. 

Taiyo Life will continue to service and administer the reinsured policies.