Fortitude Re Completes $3.8B Unum Deal
Fortitude Re announced the closing of the previously announced reinsurance transaction between its subsidiary, Fortitude Reinsurance Company Ltd. [FRL], and Unum Life Insurance Company of America [Unum], a subsidiary of Unum Group.
A spokesperson said, “At closing, Unum recaptured a group of individual LTC policies from Fairwind Insurance Company [Fairwind], a wholly owned subsidiary of Unum, and reinsured them with FRL. The transaction covers approximately 50,000 policies, representing $3.8 billion in statutory reserves and approximately $4.5 billion on a best estimate reserve basis. It builds on the successful transaction between Fortitude Re and Unum announced last year.
“Unum will continue to service and administer the policies. Simultaneously with the closing, FRL entered into an agreement to retrocede 100% of the LTC insurance risks to a highly rated global reinsurance partner. FRL therefore retains only the underlying spread-based risks associated with this block of business.
“Sidley Austin LLP served as legal counsel to Fortitude Re.”
