2 Includes a reserve increase of $151.5 million and $750.8 million in 2020 and 2018, respectively, related to our long-term care closed block business, as well as a reserve increase of $17.5 million in 2020 to our group pension closed block business. Also includes an increase in benefits and change in reserves for future benefits of $1,284.5 million in 2020 resulting from the recognition of the adjustment related to unrealized investment gains and losses previously recognized in accumulated other comprehensive income related to the previously mentioned reinsurance transaction. See Notes 6 and 12 of the "Notes to Consolidated Financial Statements" contained herein in Item 8 and "Executive Summary" contained herein in
In the fourth quarter of 2020, we released approximately $400 million of capital as a result of the reinsurance transaction and we expect to release approximately $250 million of additional capital in the first quarter of 2021 assuming the second phase of the transaction is fully executed, subject to receipt of required consents and regulatory approvals and the satisfaction or waiver of other customary closing conditions. See "Reinsurance" contained herein in Item 1; "Segment Results," and "Liquidity and Capital Resources - Cash Available from Subsidiaries" contained herein in Item 7, and Notes 12 and 16 of the "Notes to Consolidated Financial Statements" contained herein in Item 8 for further discussion on the impacts related to this reinsurance agreement.
See "Executive Summary" contained herein in Item 7 and Notes 6, 7, 8, 12, 13, and 15 of the "Notes to Consolidated Financial Statements" contained herein in Item 8 for further discussion regarding the impacts of the 2018 and 2020 long-term care reserve increases, the group pension reserve increase, the total impacts of the Closed Block individual disability reinsurance transaction, the amortization of the cost of reinsurance, costs related to the organizational design update, the impairment loss on the ROU asset related to one of our operating leases for office space, and the cost related to the early retirement of debt.
Other expenses, including compensation expense, increased in each of the years presented above due to operational investments in our business and growth in our fee-based service products, which was balanced with our continued focus on expense management and operating efficiencies. Included in other expenses for 2020 are costs related to an organizational design update, an impairment loss on the ROU asset related to an operating lease for office space, costs related to the Closed Block individual disability reinsurance transaction, and an increase in the provision for the allowance for expected credit losses on premium receivable balances.
Premium income increased compared to 2018 driven by prior period sales growth and the continued expansion of our dental and vision product line, partially offset by unfavorable persistency. Net investment income was lower compared to 2018 due to lower miscellaneous investment income and a decline in yield on invested assets, partially offset by an increase in the level of invested assets.
We remain committed to offering consumers a broad set of financial protection benefit products at the worksite. During 2021, we will continue to invest in a unique customer experience defined by simplicity, empathy, and deep industry expertise through the re-design of our processes and the increased utilization of digital capabilities and technology to enhance enrollment, underwriting, and claims processing. In addition, we will continue to focus on the expansion of our portfolio of products. In particular, with respect to smaller employers, we will continue to provide comprehensive consumer-focused products, enhance our distribution model, and utilize our MyUnum platform and digital tools to bring industry leading enrollment capabilities and a fully integrated customer experience. Our differentiated offering with HR Connect and significant investment in leave management services will allow for substantial growth opportunities, particularly with larger employers, and stronger persistency in our core products. We believe our active client management and differentiated integrated customer experience across our product lines, underpinned by strong risk management, will continue to enable us to grow our market over the long-term.
Benefits experience was unfavorable relative to 2019 due to lower claim resolutions in the group long-term disability product line resulting from the continued disruption in claim processes related to COVID-19 and higher claim incidence in the group life product line, partially offset by the impact of lower inflation-linked increases in benefits related to our group products.
Also impacting benefits experience for the Closed Block segment was the previously discussed group pension reserve increase within our "All Other" product line. Excluding this group pension reserve increase, benefits experience for the "All Other" product line was consistent with our expectations.
Interest and debt expense was lower than 2019 due to the principal repayments on the outstanding debt issued by Northwind Holdings, LLC (Northwind Holdings). In December 2020, Northwind Holdings redeemed the remaining $35.0 million of principal on the Northwind notes, and was released of any contractual collateral requirements.
The interest adjusted loss ratio for long-term care in 2019 was not comparable to 2018, excluding the previously discussed reserve increase, due to the update in our assumptions during the third quarter of 2018, but was generally consistent with our expectations during 2019. Individual disability benefits experience was favorable relative to 2018 driven by overall favorable claims activity.
reflecting the improved market conditions of the third quarter of 2020. The majority of our investments in partnerships are not redeemable. Distributions received from the funds arise from income generated by the underlying investments as well as the liquidation of the underlying investments. There is generally not a public market for these investments. We had $590.7 million of commitments for additional investments in the partnerships at December 31, 2020 which may or may not be funded. See Note 2 in the "Notes to Consolidated Financial Statements" contained herein in Item 8 for further discussion of our private equity partnerships.
In September 2019, we issued $450.0 million of 4.500% senior notes due 2049. The notes are callable at or above par and rank equally in the right of payment with all of our other unsecured and unsubordinated debt.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2020, based on criteria established in Internal Control -Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 17, 2021 expressed an unqualified opinion thereon.
Description of the Matter The Company’s reserves for individual and group long-term care policy and contract benefits are $12.8 billion of the $49.7 billion of Reserves for Future Policy and Contract Benefits on the consolidated balance sheet as of December 31, 2020. The two primary categories of long-term care reserves are policy reserves for claims not yet incurred and claim reserves for claims that have been incurred or are estimated to have been incurred but not yet reported. Notes 1 and 6 to the consolidated financial statements describe the accounting for these reserves.
Our audit procedures included, among others, assessing the terms of the reinsurance agreement with Commonwealth, evaluating management’s risk transfer conclusion, testing the calculation of the cost of reinsurance and the recognized investments gains and benefit expense amounts, and testing the reinsurance recoverable recorded.
Loss recognition testing is performed on an annual basis, or more frequently if appropriate, using best estimate assumptions as to future experience as of the date of the test. Insurance contracts are grouped for each major product line within a segment when we perform the loss recognition tests. If loss recognition testing indicates that deferred acquisition costs are not recoverable, the deficiency is charged to expense.
There were no troubled debt restructurings during 2020 or 2019. We had one mortgage loan which was modified in a troubled debt restructuring during the second quarter of 2018. The loan had a principal balance of $3.6 million prior to the restructuring, wherein the terms of the loan were modified to reduce monthly payments to interest-only at the current note rate and to permit a discounted payoff by September 2018. At time of restructuring, we recorded an allowance for credit losses on mortgage loans and recognized an impairment loss of $0.2 million in the second quarter of 2018. The payoff of the loan did not occur in
The aggregate contractual principal maturities are $2.0 million in 2023, $350.0 million in 2024, $775.0 million in 2025, and $2,247.5 million thereafter.
right, is counted as 1.76 shares. Awards granted before the termination of the 2012 Plan remain outstanding in accordance with the plan's terms. Stock options generally have a term of eight years after the date of grant and fully vest after three years.
Effective December 16, 2020, Provident Life and Accident Insurance Company, The Paul Revere Life Insurance Company and Unum Life Insurance Company of America, wholly-owned domestic insurance subsidiaries of Unum Group and collectively referred to as "the ceding companies", entered into a series of agreements (collectively referred to as the "reinsurance agreement") with Commonwealth Annuity and Life Insurance Company (Commonwealth), a subsidiary of Global Atlantic Financial Group, to reinsure on a coinsurance basis effective as of July 1, 2020 approximately 75 percent of the Closed Block individual disability business, primarily direct business written by the ceding companies. Commonwealth has established and will maintain collateralized trust accounts for the benefit of the ceding companies to secure its obligations under the relevant reinsurance agreement. As part of the agreement, additional Closed Block individual disability business consisting of direct business not ceded in December 2020 and business assumed by the ceding companies from third parties, is expected to be reinsured in the first quarter of 2021, subject to receipt of required consents and regulatory approvals and the satisfaction or waiver of other customary closing conditions and is considered the second phase of this transaction. In connection with the first phase of the coinsurance agreement that closed in December 2020, the ceding companies paid a total cash ceding commission to Commonwealth of approximately $438 million and transferred additional assets consisting primarily of fixed maturity securities and cash totaling $6,669.8 million.
The cost of reinsurance will be amortized over the expected run-off pattern of the ceded reserves for the DLR cohort and we recognized $2.6 million in amortization expense in 2020 subsequent to the execution of the agreement. The deposit asset will be adjusted over the 12-year period of the volatility cover based on cash flows related to the ALR cohort, settlement payments as determined above, and accretion of interest and will result in an amount equal to the expected disabled life reserve for the ALR cohort at the expiration of the volatility cover. Both the cost of reinsurance and the deposit asset are reported in Other Assets within our Consolidated Balance Sheets.