Unum Announces Reinsurance Deal
In December 2020, Unum Group announced a reinsurance transaction with a subsidiary of Global Atlantic (Commonwealth Annuity and Life Insurance Company) in a coinsurance agreement. The closed block of business is backed by approximately $7.1 billion in reserves. Unum will pay Global Atlantic a fee of around $376 million to reinsure about three quarters of the in-force policies in the closed block.
Global Atlantic’s primary focus is on selling life insurance and annuities, as well as reinsuring other businesses. Unum subsidiaries ceding individual disability business to Global Atlantic include Unum Life Insurance Company of America, Paul Revere Life Insurance Company, and Provident Life and Accident Insurance Company. Unum is also seeking permission from the original writers of some policies written by other companies to include them in the deal.
Around 95% of the affected policyholders are collecting benefits, while the remaining are not on claim. Unum will continue to administer claims made under the policies.
Sources:
Allison Bell, Unum Picks Global Atlantic for $7.1B Reinsurance Deal, ThinkAdvisor, December 17, 2020.
Unum Press Release, Unum Group Announces Reinsurance Transaction with Global Atlantic on $7.1 Billion Closed Individual Disability Block, December 18, 2020.
