Debevoise Advises Unum Group in Its Reinsurance Transaction with Global Atlantic Involving $7.1 Billion Closed Block Individual Disability Business

17 December 2020

Debevoise & Plimpton LLP is advising Unum Group (NYSE: UNM) in its agreement with three of its insurance company subsidiaries to reinsure a substantial portion of Unum's Closed Individual Disability Insurance Block ("IDI") business, backed by approximately $7.1 billion in reserves, to a subsidiary of Global Atlantic through a coinsurance arrangement. The total net considerations to be paid to Global Atlantic's subsidiary at the closing of the first phase of the reinsurance transaction is approximately $376 million, which will be offset by cash tax benefits. Once the transaction is fully executed, assuming receipt of all consents and regulatory approvals, the transaction is expected to allow Unum to release approximately $600 million of capital backing the block. For more information, please see the company’s press release.

Unum Group provides a broad portfolio of financial protection benefits and services through the workplace, and is a leading provider of disability income protection worldwide. Global Atlantic Financial Group, through its subsidiaries, offers a broad range of retirement, life and reinsurance products designed to help its customers address financial challenges with confidence.

The Debevoise team was led by Insurance M&A partner Marilyn Lion and includes associates Kristen Matthews, Sasha Semach and Leron Solomon and law clerk Gina Ragone, tax partner Peter Schuur and associates Jay Evans and Robert Nelson-Sullivan.