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UnumProvident Ends Centre Life Arrangement

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UnumProvident Corp. has agreed to recapture a surplus relief reinsurance arrangement for a closed block of individual disability insurance business from Centre Life Reinsurance Ltd.[@@]

UnumProvident, Chattanooga, Tenn., ceded the business to Centre Re, Hamilton, Bermuda, in 1996.

UnumProvident has continued to handle claims and administration for the block, and taking full responsibility for block claims back from Centre Re will add $185 million in annual premiums and $1.6 billion in assets and reserves, UnumProvident says.

Moody’s Investors Service, New York, put out a comment suggesting that the recapture will have little effect on UnumProvident’s exposure to claims and will have no effect on the company’s credit rating.