Unum Slashes Long-Term Care Exposure With $3.8 Billion Reinsurance Deal

Unum Group (NYSE: UNM ) said Monday it has agreed to reinsure $3.8 billion of long-term care (LTC) statutory reserves with Fortitude Reinsurance Company Ltd., marking another step in its strategy to reduce exposure to its legacy LTC business.

The transaction covers approximately 50,000 individual LTC policies and represents 26% of Unum’s total LTC statutory reserves and 52% of its individual LTC reserves as of March 31, 2026.

At closing, Unum Life Insurance Company of America will recapture the policies from its subsidiary, Fairwind Insurance Company, and cede them to Fortitude Re on a coinsurance basis.

Fortitude Re will then retrocede the biometric risk to a highly rated global reinsurer, while Unum will continue administering the policies, including claims and premium rate increases.

Unum Closed Block Strategy Advances Combined with a similar reinsurance deal announced in 2025, the latest transaction will reduce Unum’s total LTC statutory reserves by about 40%.

More than $7 billion of LTC statutory reserves will have been reinsured through the two transactions. “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,” President and CEO Richard P.

McKenney said. “Building on the actions we have taken over the last several years, including our prior external reinsurance transactions, this agreement significantly reduces the size and risk profile of the Closed Block.

With a strong capital position and a clear strategic focus, we remain committed to disciplined execution, prudent capital management, and delivering long-term value for shareholders.” Capital Outlook Unchanged The deal is expected to be financed through Fairwind’s excess capital, holding company liquidity and financing tied to future tax benefits.

Unum said it expects to maintain year-end 2026 holding company liquidity of $1.5 billion to $2 billion, leverage of about 25% and a risk-based capital ratio of 400% to 425%.

The company expects the transaction to have only a limited impact on operating earnings and anticipates closing the deal in 2026, subject to regulatory approvals and customary closing conditions.

Unum Technical Analysis Unum is still in a clear longer-term uptrend: at $92.00 it’s trading 2.2% above its 20-day SMA ($90.00), 8.5% above its 50-day SMA ($84.81), and 17.9% above its 200-day SMA ($78.05).

That “stacked” moving-average structure typically signals buyers have controlled the intermediate trend.

Momentum is the main thing to watch here, and MACD is leaning cautious: it’s below its signal line and the histogram is negative, which points to upside pressure cooling versus the prior upswing.

In plain English, MACD below the signal line often means rallies can lose steam unless buyers quickly reassert control.

The bigger-picture trend improved after the golden cross in May (the 50-day SMA moving above the 200-day SMA), and the stock has since pushed toward the top of its 52-week range ($93.22).

With a recent swing high in June and price now sitting just under that area, traders will often treat the current zone as a “prove it” level for continuation.

Key Resistance: $93.00 — a round-number area sitting just under the $93.22 52-week high, where breakouts can fail on the first attempt Key Support: $87.50 — a nearby pivot zone that sits above the 50-day SMA ($84.81), making it a logical spot buyers may defend on a deeper pullback UNM Price Action: Unum shares were down 0.37% at $92.00 during premarket trading on Monday.

The stock is trading near its 52-week high of $93.21, according to Pro data.

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