Notes that Unum Group Corp. (NYSE:UNM) is using to help support life and disability reserves are doing about the same as they were in late 2009.
Moody’s Investors Service today said it will keep the rating of Baa1 that it has assigned to insurance-linked securities issued by Tailwind Holdings L.L.C., a limited liability company that Unum started in 2006, to back disability insurance claim reserves.
Tailwind, which is incorporated in Delaware, owns Tailwind Reinsurance Inc., a special purpose captive reinsurer that’s domiciled in South Carolina, Moody’s said.
Tailwind Re has used capital raised by the sale of Tailwind notes to help back disability policies issued by Unum Life Insurance Company of America, Moody’s said.
Moody’s also has maintained the Baa1 rating it has assigned to notes from Northwind Holdings L.L.C.
Northwind Holdings, a Delaware limited liability company, owns Northwind Reinsurance Company, a special purpose captive reinsurance company that’s domiciled in Vermont.
Northwind Re has used capital from note sales to provide reinsurance for Provident Life and Accident Insurance Company, The Paul Revere Life Insurance Company and Unum Life Insurance Company of America.
The Northwind reinsurance arrangements help fund reserves for a block of life policies that cover both active workers and workers who are collecting disability benefits.
The outlook on the notes issued by the Unum captives is stable, Moody’s said.
Moody’s last reviewed the notes’ ratings in April 2011. Moody’s also affirmed the notes ratings that time around.