Fortitude Re Announces $3.8 Billion Long-Term Care Reinsurance Agreement with Unum Group
Fortitude Re has entered into a $3.8 billion reinsurance agreement with Unum covering a U.S. long-term care insurance block. The transaction builds on an existing partnership and includes full retrocession of risk to a global reinsurance partner upon closing.
HAMILTON, Bermuda – July 6, 2026 — Fortitude Re announced today the signing of a $3.8 billion reinsurance transaction between its subsidiary, Fortitude Reinsurance Company Ltd. (“FRL”) and Unum Life Insurance Company of America (“Unum”), a subsidiary of Unum Group (NYSE: UNM).
Upon receipt of regulatory approvals and subject to satisfaction or waiver of certain other customary closing conditions, Unum will recapture from Fairwind Insurance Company ("Fairwind"), a wholly-owned subsidiary of Unum, an individual long-term care ("LTC") block representing approximately $3.8 billion of statutory reserves in Fairwind (or approximately $4.5 billion on a best estimate reserve basis) and cede the block to FRL, further building on the successful transaction between Fortitude Re and Unum announced last year.
Unum will continue to service and administer the reinsured policies. Simultaneously with the closing of the reinsurance transaction with Unum, FRL will enter into an agreement to retrocede 100% of the LTC insurance risks to a highly rated global reinsurance partner. FRL will thereby retain only the underlying spread-based risks associated with this block of business.
Upon receipt of regulatory approvals and subject to satisfaction or waiver of certain other customary closing conditions, Unum will recapture from Fairwind Insurance Company ("Fairwind"), a wholly-owned subsidiary of Unum, an individual long-term care ("LTC") block representing approximately $3.8 billion of statutory reserves in Fairwind (or approximately $4.5 billion on a best estimate reserve basis) and cede the block to FRL, further building on the successful transaction between Fortitude Re and Unum announced last year.
Unum will continue to service and administer the reinsured policies. Simultaneously with the closing of the reinsurance transaction with Unum, FRL will enter into an agreement to retrocede 100% of the LTC insurance risks to a highly rated global reinsurance partner. FRL will thereby retain only the underlying spread-based risks associated with this block of business.
“We are pleased to again partner with Unum and value the trust they have placed in our team,” said Kai Talarek, Chief Growth & Optimization Officer, Fortitude Re. “We also appreciate the support of our strategic partner Carlyle, whose investment expertise helps ensure we optimize the risk-adjusted return of the investments that back the promises we are making to our clients and their policyholders."
“This reinsurance agreement demonstrates how our client-centric approach drives highly customized solutions tailored to meet client needs,” said Russell Gao, Head of U.S. Origination & Strategy, Fortitude Re. “We thank Unum for its trust, collaboration and continued partnership.”
As a long-term partner and investor in Fortitude, Carlyle (NASDAQ: CG) has supported Fortitude on this transaction. Carlyle benefits from Fortitude’s continued growth, with this transaction expected to be added to Carlyle's fee-earning assets under management.
Sidley Austin LLP served as legal counsel to Fortitude Re.
About Fortitude Re
Fortitude Re refers to FGH Parent, L.P. and its subsidiaries. Fortitude Re is a leading global reinsurer with more than $100 billion in reserves. Backed by world-class investors, including Carlyle and T&D Insurance Group, Fortitude Re combines deep expertise, disciplined execution, and a strong capital base to help clients navigate significant risk and capital challenges. Powered by a people-first culture that attracts, develops, and retains top industry talent, the company delivers innovative, tailored solutions that create lasting value for clients, partners, and policyholders. For more information, visit fortitude-re.com and follow Fortitude Re on LinkedIn.
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Carlyle Group
Washington, DC, United StatesCarlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit, and Global Investment Solutions. With $441 billion of assets under management as of December 31, 2024, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies, and the communities in which we live and invest. Carlyle employs more than 2,300 people in 29 offices across four continents.
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