Unum Finds Reinsurer for Block of Individual Long-Term Care Policies
Unum Group has finalized a deal with Fortitude Re to reinsure a block of its individual long-term care insurance policies. This strategic move will impact approximately 31,000 individuals covered by these policies.
According to the announcement, the policies in the block have generated 5,121 claims. Unum will continue to manage the business of its remaining 85,000 individual policyholders.
This reinsurance agreement allows Unum to redistribute some of the risk associated with its long-term care portfolio. The move reflects ongoing efforts by insurance providers to manage the financial impacts of long-term care coverage, given the rising costs and evolving demographics associated with these policies. The agreement allows Unum to optimize its capital and manage its long-term care exposure, while Fortitude Re gains a portion of the market.
