Fortitude Re strikes $3.4 billion reinsurance deal with Unum

Fortitude Re has signed a reinsurance agreement with Unum Life Insurance Company of America, a subsidiary of Unum Group, covering $3.4 billion in individual long-term care (LTC) statutory reserves and $120 million in multi-life individual disability insurance (IDI) in-force premium.

The transaction, pending regulatory approvals, is effective January 1, 2025 and represents 19% of Unum’s LTC block and 20% of its in-force IDI premium.

Unum  will continue servicing and administering the reinsured policies, while Fortitude Re will retrocede 100% of the LTC and IDI insurance risks to a highly rated global reinsurance partner, retaining only the underlying spread-based risks. The deal reflects Fortitude Re’s strategic approach to capital-efficient reinsurance solutions in the life and disability insurance markets.

“Today’s announcement underscores the deliberate approach we have taken toward growth. When partners like Unum place their trust in us, we ensure the value delivered honors that trust. I would like to extend a special thank you to the many professionals who have collaborated and worked tirelessly to achieve this important milestone.” – Alon Neches, CEO, Fortitude Re.