Bermuda reinsurer, Fortitude Re's previously announced reinsurance transaction between subsidiary Fortitude Reinsurance Company Ltd and Unum Group subsidiary Unum Life Insurance Company of America has closed.

Unum recaptured a group of individual long-term care policies from Fairwind Insurance Company, the 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 per cent 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.

Fortitude Re is a global reinsurer with more than $115 billion in total asset, and backed by investors that include Carlyle and T&D Insurance Group.