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UNUMPROVIDENT TO RECAPTURE CLOSED BLOCK BUSINESS
CEDED TO CENTRE RE IN 1996
CHATTANOOGA, Tenn. (Aug. 16, 2005) – UnumProvident Corporation
(NYSE:UNM) today announced an agreement with Centre Life Reinsurance Ltd. to
recapture its closed block individual income protection business originally
ceded to Centre in 1996 by Unum Life Insurance Company of America. The business
includes approximately $1.6 billion in invested assets to be transferred and
$185 million of annual premium. The effective date of the recapture of this
ceded business will be on or prior to Dec. 31, 2005.
“The reinsurance no longer satisfies its original purpose, and we believe it is
most efficient to recapture it at this time,” said Robert Greving, executive
vice president and chief financial officer. “The recapture is not expected to
have a material impact on the operating income or on the targeted risk-based
capital objectives of the company.”
Since it already provides claims and service administration on these policies,
UnumProvident anticipates minimal impact to its operations and no impact to
policyholders.
UnumProvident’s Individual Income Protection - Closed Block segment reported
$961 million of premium income over the past 12 months and had invested assets
of $11.3 billion at June 30, 2005.
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