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

1 hour ago 1

MarketBeat

Sun, July 12, 2026 astatine 6:02 PM CDT 7 min read

Key Points

Interested successful Unum Group? Here are 5 stocks we similar better.
Unum Group agreed to reinsure an further $3.8 cardinal of semipermanent attraction statutory reserves with Fortitude Re, bringing full reinsured LTC reserves to $7 cardinal and reducing its vulnerability by 40% from the commencement of past year.
The woody removes each of Unum's remaining individual semipermanent care concern from Fairwind, leaving chiefly radical LTC there, portion full LTC statutory reserves are expected to autumn from $14.8 cardinal to astir $11 cardinal aft closing.
Unum said the transaction volition usage $650 cardinal of holding institution excess capital, but capital instrumentality plans stay unchanged, including astir $1.3 cardinal successful expected dividends and stock buybacks successful 2026.

The "Duck Stock" Keeps Quietly Making Money for Shareholders

Unum Group (NYSE:UNM) said it has agreed to reinsure an further information of its semipermanent attraction security liabilities, marking the company's 3rd large outer reinsurance transaction and its 2nd involving semipermanent care.

On a league telephone with analysts, President and CEO Rick McKenney said the statement volition cede $3.8 cardinal of semipermanent attraction statutory reserves, bringing full semipermanent attraction reserves reinsured to $7 billion. He said the transactions person reduced Unum's vulnerability by 40% compared with the opening of past year.

→ PepsiCo's Dividend Could Turn Patience Into Real Profit

These 3 Insurance Stocks Made New 52-Week Highs: Still Time to Buy?

The transaction is effectual April 1, 2026, and is expected to adjacent during 2026, taxable to regulatory approvals and different customary closing conditions, according to Matt Royal, elder vice president of capitalist relations and treasury.

Deal Removes Remaining Individual LTC successful Fairwind

McKenney said the transaction removes each of Unum's idiosyncratic semipermanent attraction concern that was primitively written by Unum America and subsequently reinsured to Fairwind. The remaining liabilities successful Fairwind volition beryllium radical semipermanent care, which absorption said has a antithetic hazard profile.

→ MarketBeat Week successful Review – 07/06 - 07/10

3 Dividend Stocks Defying the Market Downturn Amid the Iran Conflict

Chief Financial Officer Steve Zabel said the institution is reinsuring $3.8 cardinal of semipermanent attraction statutory reserves to Fortitude Re. Similar to Unum's anterior semipermanent attraction reinsurance deal, the biometric hazard ceded to Fortitude Re volition beryllium retroceded to a highly rated planetary reinsurer, helium said.

Zabel said the reinsured artifact represents 26% of Unum's full semipermanent attraction artifact and 52% of its idiosyncratic semipermanent attraction business. It includes astir 50,000 policies with an mean attained property of 76 years, compared with 86 years for the artifact reinsured successful past year's transaction.

Read Entire Article