Unum Group (Unum Group (UNM)) is taking another big step to shrink its legacy long-term care (LTC) business. On Monday, the company announced a reinsurance agreement with Fortitude Reinsurance Company Ltd. that will offload $3.8 billion of LTC statutory reserves — covering roughly 50,000 individual policies.

That's about 26% of Unum's total LTC statutory reserves and 52% of its individual LTC reserves as of March 31, 2026. The transaction works like this: Unum Life Insurance Company of America will first recapture the policies from its subsidiary, Fairwind Insurance Company, and then cede them to Fortitude Re on a coinsurance basis. Fortitude Re, in turn, will pass the biometric risk to a highly rated global reinsurer. Unum will keep administering the policies, including handling claims and premium rate increases.

This isn't Unum's first rodeo with LTC reinsurance. Combined with a similar deal announced in 2025, the company will have reduced its total LTC statutory reserves by about 40%. All told, 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,” said President and CEO Richard P. McKenney. “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

Unum plans to finance the deal through Fairwind's excess capital, holding company liquidity, and financing tied to future tax benefits. The company 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 transaction is expected to have only a limited impact on operating earnings and is slated to close in 2026, subject to regulatory approvals and customary conditions.

Technical Picture: Uptrend Intact, But Momentum Fading

Unum's stock has been on a steady climb. 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 that buyers have controlled the intermediate trend.

But momentum is worth watching. The MACD is below its signal line with a negative histogram, suggesting upside pressure is cooling relative to the prior upswing. In plain English, that 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 often treat the current zone as a “prove it” level for continuation.

• Key Resistance: $93.00 — a round-number area just under the $93.22 52-week high, where breakouts can fail on the first attempt.
• Key Support: $87.50 — a nearby pivot zone 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.