13 July 2026 • Page 2 • Reinsurance & Transactions

Unum transfers $3.8bn of long-term care liabilities to Fortitude Re

Unum Group has agreed a $3.8 billion coinsurance transaction with Fortitude Re, a subsidiary of Twelve Points Group, covering approximately 50,000 in-force long-term care (LTC) insurance policies. The transaction represents one of the largest recent risk-transfer agreements in the North American legacy market and reflects the continuing evolution of specialist balance sheet management.

The agreement, expected to complete during the third quarter of 2026, includes approximately $3.2 billion of reserves together with a further $600 million of additional limit available to support future policyholder obligations. Following completion, Unum will have transferred more than $7 billion of LTC reserves through similar transactions since 2025.

The deal forms part of Unum’s continuing strategy to simplify its balance sheet, reduce long-duration insurance risk and release capital for investment in its core protection businesses. For Fortitude Re, the transaction further strengthens its position as one of the leading acquirers and managers of complex legacy insurance portfolios.

Long-term care liabilities remain among the most challenging classes of business within the North American insurance market, requiring significant capital commitment, specialist actuarial expertise and disciplined long-term claims management.

Transactions of this nature enable insurers to reduce earnings volatility while providing specialist runoff carriers with opportunities to generate long-term value through operational expertise and disciplined capital deployment.

Market observers note that the continued growth of funded reinsurance and legacy risk transfer reflects broader structural changes across the insurance sector. Increasing regulatory scrutiny, higher capital requirements and pressure on returns continue to encourage insurers to optimise mature portfolios through specialist risk transfer solutions.

Fortitude Re, backed by Twelve Points Group, has continued to expand its presence within the legacy and structured reinsurance markets, completing a series of significant transactions over recent years. The company has developed particular expertise in managing complex long-duration liabilities through sophisticated capital management techniques and operational excellence.

For the wider legacy market, the transaction demonstrates that long-term care remains an active and attractive class for specialist reinsurers despite its inherent complexity. Demand for capital-efficient solutions is expected to remain strong as insurers continue reviewing mature portfolios in response to evolving regulatory and economic conditions.

The transaction also highlights the increasing maturity of the global legacy insurance sector. Rather than simply resolving distressed liabilities, modern runoff and legacy transactions are increasingly being used proactively as strategic capital management tools that improve balance sheet efficiency while maintaining strong policyholder protection.