- Unum completed an external reinsurance transaction in July 2025 to reduce LTC exposure, marking a major strategic step.
- The company is actively seeking additional LTC risk reduction opportunities, emphasizing disciplined management of the LTC block.
- The transaction improves risk profile, frees capital, and shifts focus to higher-return core businesses.
- Management highlighted ongoing efforts to de-risk LTC through market transactions, despite market complexity and slow pace.
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- Globe Life submitted a preliminary business plan to Bermuda Monetary Authority to establish a reinsurance affiliate in Bermuda.
- The plan aims to reinsure a portion of new and in-force life insurance policies, with an initial reinsurance of a small block of reserves.
- The company expects to cede approximately 25% of total statutory life reserves over time, including in-force and new business.
- The first reinsurance transaction is targeted for the end of the year, with subsequent transactions possibly following.
- The Bermuda entity is expected to enhance the company's economic capital framework, support growth, and improve earnings emergence.
- Regulatory and rating agency discussions are ongoing, with formal licensing expected later in the year.
- Ryan Re, an underwriting MGU, will be the exclusive reinsurance underwriter for Nationwide's reinsurance renewal rights from Markel, creating a diversified portfolio with new relationships.
- The deal is part of a broader strategic alliance with Nationwide, expanded through a 10-year renewal agreement.
- The transaction is expected to be accretive starting in 2026, with temporary margin impacts in late 2025 due to talent investments.
- Ryan Re's capabilities are primarily underwriting, not broking, and it enhances Ryan Specialty's scale, geographic reach, and product scope.
- Management expressed high confidence in renewing a significant portion of the $1.2 billion reinsurance premium market, emphasizing the strength of their underwriting team.
- Markel announced the decision to sell renewal rights and cease writing new business in its global reinsurance operation, which was acquired through Alterra over 10 years ago.
- This move is aimed at focusing on core lines of business and improving profitability.
- The exit is expected to free up capital, with the reserves and investments continuing to generate returns, and will provide flexibility for reinvestment.
- The sale of renewal rights will result in premiums being earned over the next 2-3 years, with some renewal contracts processed in Q3 2025.
- Management highlighted the potential for capital release and optionality, with a focus on reinvesting proceeds strategically.
- The company reduced its quota share reinsurance from 55% to 20%, a move driven by improved loss ratios and capital efficiency.
- This change was a strategic decision to shift risk management focus from risk concentration to capital management.
- The transition is expected to unfold over several quarters, with ceding roughly 45% of premium in H2 2025 and reaching 20% by Q3 2026.
- The impact on revenue is expected to outpace gross profit growth, with a shift towards higher revenue growth rates as the reinsurance scope narrows.
- This structural change aims to improve capital utilization and reduce dependency on reinsurance, leveraging the company's improved loss ratios and captive reinsurance structures.
- U.S. Bancorp divested approximately $6 billion in mortgage and auto loans in Q2, leveraging favorable rate environment for asset sales.
- The sale of $4.6 billion in mortgage loans was aimed at shifting the asset mix towards supporting fee growth and higher-margin, multiservice clients.
- Proceeds from asset sales were reinvested into investment securities, with a $57 million loss from restructuring, expected to benefit net interest income within 2 years.
- The company plans to continue opportunistic asset sales aligned with market conditions to support strategic growth objectives.
- Redwood accelerated its shift towards a more scalable and simplified operating model, first announced at 2024 Investor Day.
- The company is reducing exposure to legacy assets, including multifamily bridge loans and third-party securities, due to their full valuation or underperformance amid rising interest rates.
- Approximately $0.79 per share of fair value and repositioning charges were recognized in Q2 from legacy portfolio wind-downs.
- Target to generate $200-$250 million from legacy asset sales by year-end 2025, with a long-term goal to reduce legacy investments to 0-5% by 2026.
- The move aims to redeploy capital into core platforms for higher quality, predictable earnings, and to support share repurchases.
- The company clarified that the current reinsurance program, effective from June 1, 2025, is not significantly different in cost as a percentage of direct earned premium compared to the previous period.
- This stability is notable given the recent landfalling storms last year, which typically would lead to increased reinsurance costs.
- The change in reinsurance programs from last year, including the winding down of the RAP program at no cost, impacts quarterly comparisons and reflects strategic reinsurance structuring.
- Significant reduction in risk-rated 5 loans from 7 to 2, with Louisville student housing loan resolved at over $3 million above carrying value.
- Resolution of two nonaccrual loans totaling $132 million, including a $21 million write-off for a Phoenix office property and a $15 million write-off for a Minneapolis hotel.
- Remaining 2 risk-rated 5 loans with a total UPB of $173 million, with ongoing resolution efforts for office and hotel assets.
- Sale of Phoenix office REO property at $16.7 million, generating a small gain, with two REO properties remaining.
- Active leasing and redevelopment efforts at Miami Beach office property, with positive leasing trends and ongoing negotiations.
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