| Imagery Source: Unum Group |
| Information Source: Nasdaq |
- Net income of $39.7 million ($0.23 per diluted common share) for the third quarter of 2025; after-tax adjusted operating income was $357.1 million ($2.09 per diluted common share).
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- Core operations remained strong with 2.9 per cent growth on a constant currency basis, and 21.4 per cent adjusted operating return on equity; these results drove robust traditional U.S. life insurance company statutory operating earnings of approximately $300 million when adjusted for the impacts of the closing of our external long-term care reinsurance transaction.
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- Completed our annual GAAP reserve assumption updates, resulting in an after-tax net reserve increase of $377.8 million; the increase reflects strategic actions and experience updates in long-term care, partially offset by favourable trends in core business lines; the long-term care updates include de minimis expected statutory impacts without any capital contributions.
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- Strong balance sheet with holding company liquidity of $2.0 billion and weighted average risk-based capital ratio of approximately 455 per cent, per centtbove target levels and positions us to achieve full-year outlook; returned approximately $980 million to shareholders year-to-date, including $250 million of share repurchaserepurchases million in common stock dividends during the quarter.
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- Book value per common share of $64.56 grew 8.8 per cent over the year-ago quarter; book value per common share excluding accumulated other comprehensive income (AOCI) of $77.39 grew 4.4 per cent over the year-ago quarter.
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| Unum Group (NYSE: UNM) today reported net income of $39.7 million ($0.23 per diluted common share) for the third quarter of 2025, compared to net income of $645.7 million ($3.46 per diluted common share) for the third quarter of 2024. |
| Included in net income for the third quarter of 2025 are the after-tax amortization of the cost of reinsurance of $38.3 million ($0.22 per diluted common share), the after-tax amortization of the deferred gain on reinsurance of $3.6 million ($0.02 per diluted common share), the after-tax impact of non-contemporaneous reinsurance of $6.1 million ($0.04 per diluted common share), an after-tax net reserve increase related to assumption updates of $377.8 million ($2.21 per diluted common share), and a net after-tax investment gain on the Company’s investment portfolio of $101.2 million ($0.59 per diluted common share). Included in net income for the third quarter of 2024 are the after-tax amortization of the cost of reinsurance of $8.2 million ($0.04 per diluted common share), the after-tax impact of non-contemporaneous reinsurance of $4.8 million ($0.03 per diluted common share), an after-tax net reserve decrease related to assumption updates of $282.6 million ($1.51 per diluted common share), an after-tax loss resulting from a legal settlement of $12.1 million ($0.06 per diluted common share), and a net after-tax investment loss on the Company’s investment portfolio of $9.8 million ($0.05 per diluted common share). Excluding the items above, after-tax adjusted operating income was $357.1 million ($2.09 per diluted common share) in the third quarter of 2025, compared to $398.0 million ($2.13 per diluted common share) in the third quarter of 2024. |
| “We delivered solid top and bottom-line performance across our core businesses in the third quarter. Our premium and sales growth reflect sustained demand and customer retention for market-leading offerings,” said Richard P. McKenney, president and chief executive officer. “We continue to return capital to shareholders through dividends and share repurchases, while actively managing and reducing exposure in the closed block. With strong capital levels, solid fundamentals, and a clear strategic focus, we remain committed to disciplined execution and confident in our ability to drive long-term growth and create lasting value.” |
| UNUM IS A REGISTERED TRADEMARK AND MARKETING BRAND OF UNUM GROUP AND ITS INSURING SUBSIDIARIES. |
| RESULTS BY SEGMENT |
| We measure and analyse our segment performance based on "adjusted operating income" or "adjusted operating loss", which differ from income before income tax as presented in our consolidated statements of income due to the exclusion of investment gains or losses, certain impacts from reinsurance transactions, reserve assumption updates, and certain other items as specified in the reconciliations below. Investment gains or losses primarily include realised investment gains or losses, expected investment credit losses, impairment losses, and gains or losses on derivatives. Reserve assumption updates may result in increases or decreases to earnings. These performance measures are in accordance with U.S. generally accepted accounting principles (GAAP) guidance for segment reporting, but they should not be viewed as a substitute for income before income tax, net income, or net loss. |
| Unum US Segment |
| Unum US reported a decrease of 7.8 percent in adjusted operating income to $334.9 million in the third quarter of 2025, which excludes the amortization of the deferred gain on reinsurance of $4.6 million, the impact of non-contemporaneous reinsurance of $0.4 million, as well as the net reserve decrease related to the assumption updates of $147.7 million, compared to $363.3 million in the third quarter of 2024, which excludes the net reserve decrease related to the assumption updates of $143.6 million. Premium income increased 1.9 per cent to $1,755.4 million in the third quarter of 2025, compared to $1,723.5 million in the third quarter of 2024. Net investment income decreased 5.7 per cent to $151.9 million in the third quarter of 2025, compared to $161.0 million in the third quarter of 2024. |
| Within the Unum US operating segment, the group disability line of business reported a 14.8 percent decrease in adjusted operating income to $133.5 million in the third quarter of 2025, compared to $156.7 million in the third quarter of 2024, which exclude the reserve decreases of $105.8 million and $90.0 million related to the assumption updates during the third quarters of 2025 and 2024, respectively. Premium income for the group disability line of business was $785.2 million in the third quarter of 2025, which decreased compared to $793.4 million in the third quarter of 2024, driven primarily by the expected run-off in medical stop-loss premiums and lower persistency, partially offset by an increase in premium income due to sales. Net investment income decreased 4.3 per cent $75.3 million in the third quarter of 2025, compared to $78.7 million in the third quarter of 2024, due to a decrease in the level of invested assets. Excluding the reserve assumption updates, the benefit ratio for the third quarter of 2025 was 61.3 per cent, compared to 59.1 per cent third quarter of 2024, due to lower recoveries in our long-term disability product line and higher average claim size in our short-term disability product line. Group long-term disability sales were $28.4 million in the third quarter of 2025, an increase of 16.4 per cent4.4 million in the third quarter of 2024. Group short-term disability sales were $24.9 million in the third quarter of 2025, an increase of 56.6 per cent from $15.9 million in the third quarter of 2024. Persistency in the group long-term disability product line was 90.6 per cent for the first nine months of 2025, compared to 93.5 per cent for the first nine months of 2024. Persistency in the group short-term disability product line was 88.6 per cent first nine months of 2025, compared to 91.9 per cent in the first nine months of 2024. |
| The group life and accidental death and dismemberment line of business reported a 6.3 percent decrease in adjusted operating income to $88.1 million in the third quarter of 2025, compared to $94.0 million in the third quarter of 2024, which exclude the reserve decreases of $3.1 million and $13.0 million related to the assumption updates in the third quarter of 2025 and 2024, respectively. Premium income for this line of business increased 4.5 per cent.2 million in the third quarter of 2025, compared to the $494.9 million in the third quarter of 2024, due to sales and in-force block growth, partially offset by lower persistency. Net investment income decreased 4.1 per cent million in the third quarter of 2025, compared to $22.1 million in the third quarter of 2024, due to a lower level of invested assets. Excluding the reserve assumption updates, the benefit ratio in the third quarter of 2025 was 66.0 per cent, compared to 65.0 per cent third quarter of 2024, due to a higher average claim size in our group life product line, partially offset by a lower incidence in our accidental death and dismemberment product line. Group life and accidental death and dismemberment sales were $33.1 million in the third quarter of 2025, an increase of 24.9 per cent from $26.5 million in the third quarter of 2024. Persistency in the group life product line was 89.8 per cent first nine months of 2025, compared to 92.0 per cent first nine months of 2024. Persistency in the accidental death and dismemberment product line was 88.6 per cent for the first nine months of 2025, compared to 91.2 per cent for the first nine months of 2024. |
| The supplemental and voluntary line of business reported an increase of 0.6 percent in adjusted operating income to $113.3 million in the third quarter of 2025, which excludes the amortization of the deferred gain on reinsurance of $4.6 million, the impact of non-contemporaneous reinsurance of $0.4 million, and the net reserve decrease related to the assumption update of $38.8 million, compared to $112.6 million in the third quarter of 2024, which excludes the net reserve decrease related to the assumption update of $40.6 million. Premium income for the supplemental and voluntary line of business increased 4.1 percent to $453.0 million in the third quarter of 2025, compared to $435.2 million in the third quarter of 2024, due to the continued impacts from the recapture of a previously ceded block of business in the individual disability product line in the first quarter of 2025, higher prior period sales in the voluntary benefits product line, and favorable persistency in the voluntary benefits and dental and vision product lines, partially offset by the impact of ceding a portion of the individual disability product line as a part of the Closed Block long-term care and Unum US individual disability reinsurance transaction (Fortitude Re reinsurance transaction). Net investment income decreased 8.0 per cent to $55.4 million in the third quarter of 2025, compared to $60.2 million in the third quarter of 2024, primarily due to a lower level of invested assets and a decrease in the yield on invested assets. The benefit ratio for the voluntary benefits product line, which excludes the reserve decrease of $11.1 million and the reserve increase of $12.2 million related to the assumption updates during the third quarters of 2025 and 2024, respectively, was 46.2 percent in the third quarter of 2025, compared to 45.8 percent in the third quarter of 2024, due to unfavorable benefit experience in the accident product. The benefit ratio for the individual disability product line was 36.9 percent, for the third quarter of 2025, which excludes the impacts of non-contemporaneous reinsurance of 0.4 million and the reserve decrease of $27.7 million, compared to 42.8 percent in the third quarter of 2024, which excludes the reserve decrease of $52.8 million, due to higher claim resolutions resulting from higher recoveries and mortality, partially offset by higher claim incidence. The benefit ratio for the dental and vision product line was 76.5 per cent third quarter of 2025, compared to 74.6 per cent in the third quarter of 2024, due primarily to higher claim incidence. Relative to the third quarter of 2024, sales in the voluntary benefits product line increased 2.2 per cent in the third quarter of 2025 to $46.6 million. Sales in the individual disability product line increased 16.7 perper cent $34.3 million in the third quarter of 2025. Sales in the dental and vision product line decreased 5.6 per cent in the third quarter of 2025 to $11.8 million. Persistency in the voluntary benefits product line was 76 per cent for the first nine months of 2025, compared to 76.4 per cent for the first nine months of 2024. Persistency in the individual disability product line was 87.7 per cent for the first nine months of 2025, compared to 89.0 per cent for the first nine months of 2024. Persistency in the dental and vision product line was 83.1 per cent for the first nine months of 2025, compared to 81 per cent for the first nine months of 2024. |
| Unum International Segment |
| The Unum International segment reported adjusted operating income of $38.8 million in the third quarter of 2025, a decrease of 3.7 per cent from $40.3 million in the third quarter of 2024, which excludes the decrease of $5.4 million and the reserve increase of $7.5 million related to assumption updates during the third quarters of 2025 and 2024, respectively. Premium income increased 14.0 per cent to $281.1 million in the third quarter of 2025, compared to $246.6 million in the third quarter of 2024. Net investment income increased 19.1 per cent to $36.2 million in the third quarter of 2025, compared to $30.4 million in the third quarter of 2024. Sales increased 30.1 per cent to $49.7 million in the third quarter of 2025, compared to $38.2 million in the third quarter of 2024. |
| The Unum UK line of business reported adjusted operating income, in local currency, of £26.3 million in the third quarter of 2025, a decrease of 10.8 percent from £29.5 million in the third quarter of 2024, which exclude the reserve decrease of £0.7 million and the reserve increase of £6.4 million related to assumption updates during the third quarters of 2025 and 2024, respectively. Premium income was £171.0 million in the third quarter of 2025, an increase of 7.6 per cent58.9 million in the third quarter of 2024, due primarily to in-force block growth, sales, and favourable ency in the group life and supplemental product lines. Net investment income was £24.1 million in the third quarter of 2025, an increase of 13.7 per cent from £21.2 million in the third quarter of 2024, primarily due to higher income from inflation index-linked bonds. The benefit ratio, excluding the impacts of reserve assumption updates, was 73.8 per cent in the third quarter of 2025, compared to 69.5 per cent in the third quarter of 2024, due primarily to unfavourable benefit experience in the group long-term disability product line and higher inflation-linked experience in benefits, partially offset by favourable incidence in the group life product line. Sales increased 27.3 per cent to £29.4 million in the third quarter of 2025, compared to £23.1 million in the third quarter of 2024. Persistency in the group long-term disability product line was 92. er cent for the first nine months of both 2025 and 2024. Persistency in the group life product line was 90.2 per cent first nine months of 2025, compared to 88.6 per cent for the first nine months of 2024. Persistency in the supplemental product line was 93.6 per cent for the first nine months of 2025, compared to 90.4 per cent first nine months of 2024. |
| Colonial Life Segment |
| Colonial Life reported adjusted operating income of $116.6 million in the third quarter of 2025, a 2.8 per cent increase compared to $113.4 million in the third quarter of 2024, which excludes the reserve decreases of $8.9 million and $46.0 million related to the assumption updates during the third quarters of 2025 and 2024, respectively. Premium income increased 3.3 per cent to $456.5 million in the third quarter of 2025, compared to $441.9 million in the third quarter of 2024, due to favourable overall persistency and prior period sales. Net investment income increased 11.9 per cent to $44.3 million in the third quarter of 2025, compared to $39.6 million in the third quarter of 2024, due to an increase in the level of invested assets and an increase in the yield on invested assets. The benefit ratio, excluding the impacts of the reserve assumption updates, was 48.2 per cent in the third quarter of 2025, compared to 47.6 per cent in the third quarter of 2024, primarily due to unfavorablunfavourablexperience in the cancer and critical illness product line. Sales increased 3.1 per cent to $124.6 million in the third quarter of 2025, compared to $120.9 million in the third quarter of 2024. Persistency in the Colonial Life segment was 78.7 per cent for the first nine months of 2025, compared to 78 per cent for the first nine months of 2024. |
| Closed Block Segment |
| The Closed Block segment reported adjusted operating income of $14.1 million in the third quarter of 2025, which excludes the amortization of the cost of reinsurance of $48.6 million and the impact of non-contemporaneous reinsurance of $7.3 million as well as the net reserve increase related to the assumption updates of $640.5 million, compared to $34.2 million in the third quarter of 2024, which excludes the amortization of the cost of reinsurance of $10.4 million and the impact of non-contemporaneous reinsurance of $6.0 million as well as the net reserve decrease related to the assumption updates of $175.3 million. Premium income for this segment is largely driven by our long-term care product line, and in the third quarter of 2025, premium income for long-term care decreased 8.7 per cent to $158.6 million, compared to $173.7 million in the third quarter of 2024, primarily driven by the impact of the Fortitude Re reinsurance transaction. Net investment income decreased 21.0 per cent to $224.7 million in the third quarter of 2025, compared to $284.3 million in the third quarter of 2024. primarily driven by a decrease in the level of invested assets as a result of the Fortitude Re reinsurance transaction. |
| Policy benefits including remeasurement loss (gain), excluding the impacts of the reserve assumption updates and non-contemporaneous reinsurance, for the Closed Block segment were lower during the third quarter of 2025 relative to the same period of 2024 driven primarily by the impacts of the Fortitude Re reinsurance transaction, partially offset by an increase in the current period benefit expense resulting from the higher net premium ratio and the impact of capped cohorts, higher average claim size, and lower claim terminations in the long-term care product line. The net premium ratio for long-term care as Sas September 30, 2025,97.6 per cent higher than 94.9 per cent of June 30, 2025, due primarily to the impact of the reserve assumption updates in the third quarter of 2025. For more information on the reserve assumption update results, see pages 6 and 7. |
| Corporate Segment |
| The Corporate segment reported an adjusted operating loss of $47.7 million in the third quarter of 2025, compared to an adjusted operating loss of $49.4 million in the third quarter of 2024, which excludes the loss on legal settlement of $15.3 million, due primarily to increased net investment income, which was driven by an increase in the level of invested assets, and an increase in the yield on invested assets. |
| OTHER INFORMATION |
| Shares Outstanding |
| The Company’s weighted average number of shares outstanding, assuming dilution, was 170.6 million for the third quarter of 2025, compared to 186.9 million for the third quarter of 2024. Shares outstanding totalled 169.0 million at September 30, 2025. During the third quarter of 2025, the Company repurchased 3.2 million shares at a total cost of $253.3 million. |
| Capital Management |
| At SepteAs ofer 30, 2025, the weighted average risk-based capital ratio for the Company’s traditional U.S. insurance companies was approximately 455 per cent, aper holding companies had available holding company liquidity of $1,982.4 million. |
| Book Value |
| Book value per common share as of September 30, 2025, was $64.56, compared to $59.36 at September 30, 2024. Book value per common share excluding AOCI as of September 30, 2025, was $77.39, compared to $74.15 at September 30, 2024. |
| Effective Tax Rate |
| The effective tax rate on adjusted operating earnings was 21.8 per cent in the third quarter of 2025, compared to 20.7 per cent in the third quarter of 2024. The increase in the rate was driven primarily by global intangible low-tax income tax and less favourable prior year tax return upsets. |
| Outlook |
| While our core businesses continue to perform in line with our expectations, lower alternative investment income and the ongoing impacts from the annual assumption review reduced third-quarter after-tax adjusted operating earnings by approximately $0.10 per share, and we expect a comparable effect in the fourth quarter. |
| For the full document, click the link below |
| Unum Group |
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