UNM LTC Risk Transfer, Round Two

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UNM LTC Risk Transfer, Round Two

Life Insurance

Life Insurance - Market Overweight

UNUM GROUP (UNM) July 6, 2026

UNM LTC Risk Transfer, Round Two Rating:

Outperform

The Wolfe Byte Price: $88.43

UNM’s new $3.8B LTC reserve cession to Fortitude Re—round 2 from last year's Price Target:

deal—proves its LTC block is transactable, confirming our thesis that the last deal $100

was a clearing event. UNM is ceding just ILTC this go around (vs. ILTC and IDI per Prior: $102

% Upside:

round 1). 13.1%

View UNM Model

Today's Sell-Off: UNM shares are underperforming today, down 4% as of this writing View Comp Table

as the market may be considering less future LTC reserve deal catalysts given notable Company Information

progress to date. While there are ILTC reserve deal precedents (including UNM), we 52-Week Range $69 - $93

have not seen one on the GLTC side probably given the less risky nature making it Market Cap. (MM) $14,754

Enterprise Value (MM) $18,750

a lower priority. The market may be missing another catalyst: Post deal, this primes Shares Out. (MM) 159.8

UNM to be a better takeout candidate, in our view. Avg. Value Traded (MM) $85.10

SI% of Float 2.1%

LTC Transaction Price Performance

UNM’s $3.8bn Fortitude Re deal ('26 close) focused exclusively on individual LTC YTD LTM UNM 15% 8%

risk, shifting the remaining $11bn portfolio toward a lower-risk profile; ~70% is now S&P 500 10% 21%

group LTC. According to IR, UNM is paying a $(1.8)bn cede reflecting 1.) $1.1bn pre- WRLI 9% 12%

tax ($800mn post-tax) Fairwind LTC protection give up (with $1.1bn remaining), 2.) 100

95$650mn of Hold Co. cash and 3.) $350mn debt raise (leverage to be ~25%.) Marginal

earnings headwind in '27. Hold Co. liquidity revision: $1.5-$2.0bn by YE26 from the 90

prior $2.0-$2.5bn. 8580

Highlights: 7570