Unum to Buy Fortitude Reinsurance Block in $3.8 Billion Asset Deal
The transaction advances Unum’s strategy to reduce exposure to its legacy long-term care business while sharpening focus on its employee benefits franchise.
**Unum Group (UNM) agreed to acquire a reinsurance block from Fortitude Reinsurance Company Ltd. in a $3.8 billion asset-purchase transaction**, the Chattanooga-based insurer said Monday. The deal covers statutory reserves tied to certain individual long-term care insurance policies and marks the latest step in Unum’s Closed Block strategy.
The transaction involves the transfer of $3.8 billion of statutory reserves, representing a portion of Unum’s legacy long-term care business. No cash consideration or exchange ratio was disclosed. The deal is expected to close during 2026, pending regulatory approvals and customary closing conditions.
Unum said the transaction would further reduce its exposure to the closed long-term care block while allowing the company to concentrate on its core employee benefits franchise. “This marks another important step in advancing our Closed Block strategy to further reduce our exposure to our legacy long-term care business and maintain our focus on Unum’s leading employee benefits franchise,” said Richard P. McKenney, president and chief executive officer.
Fortitude Reinsurance, a Bermuda-based reinsurer with an A rating from A.M. Best, has been a counterparty in prior transactions with Unum. In February 2025, Unum’s Unum Life Insurance Company of America subsidiary entered into a $3.4 billion coinsurance agreement with Fortitude Re, ceding 19% of its total long-term care statutory reserves and 20% of its in-force individual disability premium. That transaction closed in July 2025 and generated an estimated $100 million capital benefit for Unum.
The latest deal follows a pattern of reinsurance transactions aimed at managing legacy liabilities. Unum has used such transactions to validate assumptions about its long-term care block and improve its risk profile. The company has also emphasized capital efficiency, targeting higher-returning core businesses while reducing the footprint of its closed block.
Regulatory approvals remain a key condition for closing, with Unum expecting the transaction to wrap up during 2026. The company did not disclose expected accretion or integration synergies, but prior reinsurance deals have provided capital relief and improved balance sheet flexibility.