Unum Group Statistical Supplement First Quarter 2024 TABLE OF CONTENTS (in millions of dollars, except share data and where noted) Interim Results are Unaudited | | Page | | --- | --- | | Financial Highlights | 1 | | Capital Metrics | 2 | | Ratings | 3 | | Consolidated Statements of Income | 4 | | Sales Data by Segment | 5 | | Consolidated Balance Sheets | 6 | | Financial Results by Segment | 7 | | Quarterly Historical Financial Results by Segment | 8 | | Financial Results and Selected Statistics by Segment ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-K (Mark One) ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2023 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 001-11294 Unum Group (Exact name of registrant as specified in its charter) Delaware 62-1598430 (State or other jurisdict ...

Uก้บู้ที่ GROUP® 2023 Results & 2024 Outlook January 31, 2024 2 2023 KEY MESSAGES • Record premiums and strong sales momentum • Fully recognized the premium deficiency reserve (PDR) • Record financial strength with RBC of 415% and holding company liquidity of $1.7B 4 • Core business earnings power strong, generating significant cashflow • Well-positioned with financial flexibility to win in the market • Inflection point for free-cash flow generation post PDR 4Q & FY2023 RESULTS $1.79 / $7.66 4Q-23 / FY-23 A ...

Financial Data and Key Metrics Changes - The company reported a 23% increase in adjusted operating EPS, reaching $7.66 compared to $6.21 in 2022 [18][26] - Full-year premium for core operations increased by 5.2%, with a fourth-quarter increase of 6.1% year-over-year [43][49] - The company ended the year with holding company cash of $1.7 billion and a risk-based capital (RBC) ratio of 415% [29][39] Business Line Data and Key Metrics Changes - Unum U.S. saw adjusted operating income increase by 39.4% to $1.36 billion, driven by strong performance in group disability, which experienced a 56.1% growth in adjusted operating earnings [49] - Colonial Life reported a sales growth of 6.2% and premium growth of 1.4% for the full year, with expectations for further growth in 2024 [53] - Unum International achieved a sales growth of 26.7% and premium growth of 11.6%, significantly exceeding initial expectations [36][52] Market Data and Key Metrics Changes - The company reported a consolidated sales growth of high-single-digits, with premium growth projected in the range of 5% to 7% for 2024 [31] - The U.K. business showed strong growth with a full-year sales increase of 18.6% and premium growth of 11.6% [52] - In Poland, sales increased by 76% and premium growth was 24.2% for the year [52] Company Strategy and Development Direction - The company aims to enhance its core operations and maintain a disciplined approach while continuing to innovate [30][32] - There is a focus on leveraging technology to improve customer experience, with initiatives like HR Connect and MyUnum [33] - The company plans to pursue selective M&A opportunities that align with its growth strategy while continuing to return capital to shareholders [38][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the supportive market backdrop and economic environment for continued growth [30][39] - The company anticipates generating free cash flow between $1.2 billion and $1.4 billion per year, with no additional capital contributions needed for long-term care in 2024 [63][70] - Management highlighted the importance of maintaining strong margins and a disciplined underwriting approach in a competitive market [100] Other Important Information - The company raised its dividend by 10% and plans to double share repurchases in 2024 with a $500 million authorization [27][39] - The effective tax rate for the fourth quarter was elevated at 22.8%, impacting EPS by approximately $0.03 [45] Q&A Session Summary Question: Core business earnings sustainability - Management believes core business earnings can be maintained, with group disability margins expected to remain stable [97][100] Question: Long-term care experience confidence - Management indicated that elevated incidence levels are likely a catch-up from low levels during the pandemic, with expectations for continued monitoring [101][103]

Financial Performance - Premium income for Q3 2023 was $2,525.9 million, a 5.7% increase from Q3 2022, and for the first nine months of 2023, it was $7,494.3 million, up 4.0% from the same period in 2022[364]. - Total revenue for Q3 2023 reached $3,092.5 million, reflecting a 4.5% increase compared to Q3 2022, and for the first nine months of 2023, total revenue was $9,240.8 million, a 2.9% increase from the prior year[364]. - Net investment income for Q3 2023 was $526.0 million, a 2.8% increase from Q3 2022, while for the first nine months, it decreased by 2.0% to $1,565.9 million compared to the same period in 2022[364][368]. - The consolidated benefit ratio for Q3 2023 was 77.1%, up from 62.9% in Q3 2022, indicating an unfavorable benefits experience[371]. - Commissions for Q3 2023 were $289.7 million, a 6.7% increase from Q3 2022, driven by higher overall sales and in-force block growth[373]. Segment Performance - The Unum US segment reported sales of $170.9 million in Q3 2023, an 8.5% increase from Q3 2022, and $762.1 million for the first nine months, an 18.1% increase from the same period in 2022[376]. - Adjusted Operating Revenue for the Unum US segment increased to $1,881.9 million in Q3 2023, a 5.9% rise from $1,776.4 million in Q3 2022[382]. - Adjusted Operating Income for the Unum US segment rose to $357.8 million in Q3 2023, a significant 27.4% increase from $280.8 million in Q3 2022[382]. - Adjusted Operating Revenue for Unum US Group Life was $491.0 million in Q3 2023, a 0.8% increase from $487.2 million in Q3 2022[387]. - Total Premium Income for Unum International increased by 21.5% to $210.6 million in Q3 2023, compared to $173.3 million in Q3 2022[407]. Investment and Financial Position - As of September 30, 2023, the total fair value of fixed maturity securities was $34,070.7 million, with net unrealized losses of $4,153.6 million[454]. - The company sold over $700 million of shorter duration bonds in Q3 2023, realizing approximately $35 million in investment losses from these sales[369]. - The carrying value of investments in private equity partnerships increased to $1,280.9 million as of September 30, 2023, from $1,194.3 million at December 31, 2022[472]. - The company has minimal exposure to policy withdrawal risk as the majority of liabilities related to insurance contracts are not interest rate sensitive[450]. - The company anticipates volatility in net investment income due to fluctuations in miscellaneous investment income and changes in market conditions[439]. Assumptions and Sensitivity Analysis - Sensitivity analysis indicates that a 10% change in claim resolution rates for the Unum US group long-term disability product line could result in a $100 million change, which is 1.8% of the liability for future policy benefits[350]. - The liability for future policy benefits is highly sensitive to key assumptions, with significant variability possible in claim costs due to long-term payout periods[355]. - The company updated policyholder lapse and mortality assumptions for DAC amortization during Q3 2023, consistent with related updates for future policy benefits[360]. - The sensitivity analysis for long-term care liabilities indicates that changes in assumptions could materially impact the present value of gross liability cash flows[353]. - The company monitors emerging experience to inform long-term assumptions, particularly for product lines with long-term claim payout periods[355]. Corporate Governance and Future Outlook - The board of directors authorized a share repurchase program of up to $500.0 million beginning January 1, 2024, with $75.9 million remaining under the current program as of September 30, 2023[480]. - The company plans to enhance digital capabilities and technology to improve customer experience and operational efficiency[400]. - The company anticipates increased adjusted operating income growth in 2023 supported by premium growth and improved claim experience[402]. - The company plans to invest in new solutions and digital capabilities to enhance customer experience and drive growth in 2023[429]. - The company has ongoing dialogue with rating agencies regarding its insurance risk profile and financial flexibility[523].

Financial Data and Key Metrics Changes - The company reported a net income of $202 million or $1.02 per diluted common share for Q3 2023, a decrease from $510.3 million or $2.53 per diluted common share in Q3 2022 [30] - Adjusted operating income increased 15% year-over-year to $381.7 million or $1.94 per diluted common share, up from $332.3 million or $1.65 per diluted common share in the previous year [53] - Statutory after-tax operating income for Q3 2023 was $532.7 million, bringing year-to-date statutory after-tax operating income to $1.1 billion [16][60] Business Line Data and Key Metrics Changes - Unum US saw a premium growth of 6.5% year-over-year, with adjusted operating income increasing 27.4% to $357.8 million [44][58] - Colonial Life's premium income was $431.2 million, a 1.9% increase from the prior year, with sales in Q3 reaching $121.3 million, up 4.7% [48][14] - Unum International reported adjusted operating income of $36.8 million, up from $24.9 million in Q3 2022, with premium growth of 12% [46][58] Market Data and Key Metrics Changes - The UK segment generated premium growth of 9.9% year-over-year, while Poland's operation grew by 27.3% [68] - The overall core operations earned premium grew by 4.9% year-to-date, just below the top end of the full-year outlook of 3% to 5% [64] Company Strategy and Development Direction - The company plans to increase its share repurchase authorization to $500 million for 2024, reflecting confidence in capital generation and deployment [34][62] - The focus remains on growing high-margin businesses, enhancing the Closed Block's certainty, and effectively returning capital to shareholders [92] - The company is optimistic about future growth rates, particularly in Colonial Life, supported by successful agent recruitment and technology initiatives [22][58] Management's Comments on Operating Environment and Future Outlook - Management highlighted a favorable macro environment with strong employment, higher interest rates, and a benign credit environment as positives for the business [33] - The company expects to meet its Colonial Life premium target in 2023 and anticipates continued growth momentum [58] - Management expressed confidence in the sustainability of current recovery trends and the overall strength of the franchise [57][82] Other Important Information - The company completed its annual GAAP reserve assumption review, resulting in a net increase in reserves of $177.2 million, with favorable adjustments in group disability and Colonial Life [71] - The premium deficiency reserve is expected to be fully funded, eliminating the need for additional capital contributions for the next five years [55][111] - The company has de-risked its balance sheet by selling over $700 million of shorter duration bonds and reinvesting in higher credit quality, longer-duration bonds [77] Q&A Session Summary Question: Can you provide an update on long-term care assumptions? - Management indicated that the majority of the financial impact was related to strengthening mortality and lapse assumptions for older age populations, with a focus on policies with richer benefits [114] Question: What drove the $200 million to $300 million contribution to First Unum? - The increase was attributed to the need to strengthen the asset adequacy reserve due to new assumptions, despite a strong hedge program [136] Question: How do current interest rates affect the premium deficiency reserve? - Management noted that if interest rates remain high, a significant portion of the reserves could become redundant over time, potentially turning into capital [91]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2023 ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number 001-11294 Unum Group (Exact name of registrant as specified in its charter) Delaware 62-1598430 (State or other jurisdiction of incorpo ...

Financial Data and Key Metrics Changes - In Q2 2023, net income was $392.9 million or $1.98 per diluted share, up from $367.3 million or $1.81 per diluted share in Q2 2022 [4] - After-tax adjusted operating income for Q2 2023 was $408.8 million or $2.06 per diluted share, an increase from $388.8 million or $1.92 per diluted share in the same quarter last year [4][9] - Return on equity (ROE) was reported at 13.8%, with after-tax operating earnings increasing by 5.1% from the previous year [9][11] Business Line Data and Key Metrics Changes - Unum US segment adjusted operating income increased by 17.5% to $343.1 million in Q2 2023 compared to $291.9 million in Q2 2022 [14] - Group disability line reported adjusted operating income of $159.8 million, up from $105.5 million in the same period last year, with a benefit ratio of 59.4% [14][15] - Colonial Life segment adjusted operating income was $15.5 million in Q2 2023, down from $96.6 million in Q2 2022, with a benefit ratio of 48.3% [18] Market Data and Key Metrics Changes - Unum International sales grew over 70% year-over-year, with Unum UK generating premium growth of 14.5% [7][18] - Unum US sales increased by 20% year-over-year in Q2 2023, with persistency for total group at 89.8% [16][19] - Colonial Life sales increased by 3.2% in Q2 2023, driven by healthy agent recruiting [19][66] Company Strategy and Development Direction - The company is focused on digital capabilities to enhance customer experience and strengthen relationships with employers and employees [6][7] - Plans to increase dividends by 10% and ramp up share repurchases by 50% indicate a commitment to returning capital to shareholders while maintaining strong capital positions [11][25] - The strategy includes fully recognizing the premium deficiency reserve (PDR) by year-end, which is expected to eliminate the need for further long-term care contributions in the near future [11][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the favorable macroeconomic environment, including higher interest rates and low pandemic mortality, which are beneficial for business [10][12] - The company expects continued strong sales, premium, and earnings growth across core businesses, particularly in group disability [27] - Management is monitoring trends in long-term care claims and remains optimistic about improvements in claims submissions [39][41] Other Important Information - The company reported cash exceeding $1 billion at the holding company and a risk-based capital (RBC) level of 450%, which is significantly above target levels [11][25] - The investment portfolio is performing well, with a focus on maintaining high-quality assets and managing risks effectively [21][23] Q&A Session Summary Question: Pricing trends in the industry - Management noted that external favorable risk trends continue, and they feel confident about their competitive positioning in the market [30] Question: Impact of NAIC's negative IMR proposal - Management indicated that while they have little negative IMR currently, the proposal could allow for increased interest rate hedging in the future [32] Question: Recovery trends in group disability - Recovery trends have been strong, and incidents have returned to pre-COVID levels, contributing to favorable loss ratios [35] Question: Long-term care loss ratio trends - Elevated incidents were noted, but claimant mortality has returned to seasonal expectations, with optimism about improving trends [39] Question: International business growth drivers - Strong growth in the UK market is attributed to high-quality products and investments in value-added services [47] Question: Future capital return plans - Management plans to balance reinvestment in core businesses with returning capital to shareholders, including increased dividends and share repurchases [49]

Financial Performance - Total revenue for Q1 2023 was $3,036.1 million, a 1.9% increase from $2,980.6 million in Q1 2022[324] - Net income for Q1 2023 was $358.3 million, representing a 49.0% increase from $240.4 million in Q1 2022[324] - Adjusted operating income for Unum US segment surged by 85.7% to $312.5 million in Q1 2023 from $168.3 million in Q1 2022[342] - Adjusted operating income for Unum International segment rose to $38.4 million in Q1 2023, a 48.3% increase from $25.9 million in Q1 2022[361] - Adjusted operating income for the Closed Block segment was $58.2 million in Q1 2023, down 26.0% from $78.6 million in Q1 2022[384] Premium Income - Premium income increased to $2,459.3 million, up 2.4% from $2,401.4 million in the same period last year[324] - Unum US segment premium income increased by 4.3% to $1,609.6 million in Q1 2023 from $1,543.0 million in Q1 2022[342] - Total Premium Income for Unum US was $408.0 million in Q1 2023, reflecting a 1.3% increase from $402.8 million in Q1 2022[349] - Total Premium Income for Unum International was $188.6 million in Q1 2023, a slight increase of 0.4% from $187.8 million in Q1 2022[361] - Colonial Life's total premium income slightly decreased to $429.5 million in Q1 2023, down 0.3% from $430.7 million in Q1 2022[376] Investment Income - Net investment income decreased by 3.5% to $508.8 million compared to $527.2 million in Q1 2022[324] - Net investment income decreased by 8.0% to $157.3 million in Q1 2023 compared to $171.0 million in Q1 2022[332] - Net Investment Income for Unum US decreased to $53.6 million in Q1 2023, down 3.9% from $55.8 million in Q1 2022[349] - Net investment income for the Closed Block segment decreased by 6.4% to $257.2 million in Q1 2023 from $274.8 million in Q1 2022[384] - The Corporate segment reported net investment income of $26.1 million in Q1 2023, a significant increase of 196.6% from $8.8 million in Q1 2022[397] Claims and Benefits - Policy benefits decreased by 5.1% to $1,882.1 million from $1,983.0 million in the prior year[324] - Consolidated benefit ratio improved to 70.6% in Q1 2023 from 79.7% in Q1 2022, indicating better claims experience[331] - The benefit ratio for Unum US group disability improved to 60.0% in Q1 2023 from 74.0% in Q1 2022[343] - The benefit ratio for Voluntary Benefits improved to 36.0% in Q1 2023 from 44.9% in Q1 2022[349] - The benefit ratio for Colonial Life was 53.0% in Q1 2023, slightly improved from 53.2% in Q1 2022, primarily due to favorable mortality experience[377] Sales Performance - Total sales for Unum US segment rose by 22.5% to $276.6 million in Q1 2023 compared to $225.8 million in Q1 2022[336] - Group long-term disability premium income grew by 8.8% to $504.7 million in Q1 2023 from $463.9 million in Q1 2022[343] - Group Long-term Disability sales increased by 32.8% to $53.9 million in Q1 2023 compared to $40.6 million in Q1 2022[353] - Sales in the public sector market for Colonial Life increased by 21.4% to $23.3 million in Q1 2023, driven by higher sales to existing customers[379] - Group long-term disability sales decreased by 41.0% to $9.2 million in Q1 2023, while group life sales increased by 95.2% to $16.2 million[368] Future Outlook - The company anticipates increased adjusted operating income growth in 2023 supported by premium growth and improved claim experience[356] - In 2023, the company expects adjusted operating income growth with sales growth and full year premium income increasing from the prior year, but at a rate below pre-pandemic levels[381] - The company plans to focus on scaling its business and enhancing digital capabilities in 2023 to drive sustainable growth[372] Investment Portfolio - The company maintains a diversified investment portfolio, with direct exposure to bank credit being less than 4% of the total portfolio on an amortized cost basis[403] - The total fair value of fixed maturity securities is $36,160.2 million, with net unrealized losses of $1,941.6 million as of March 31, 2023[405] - The fair value of below-investment-grade fixed maturity securities is $1,966.0 million, representing 4.4% of the total investment portfolio, a decrease from 4.6% at December 31, 2022[416] - The company held 43 investment-grade fixed maturity securities with gross unrealized losses of $10 million or greater, totaling $626.3 million[413] - The unrealized losses on investment-grade fixed maturity securities are primarily due to changes in interest rates and market credit spreads[414] Cash Flow and Liquidity - Net cash provided by operating activities for the three months ended March 31, 2023, was $150.6 million, a decrease from $325.8 million in the same period of 2022[452] - The company used $40.5 million in investing activities during the first quarter of 2023, compared to $192.4 million in 2022[452] - Cash used for repurchasing common stock was $51.2 million in Q1 2023, slightly up from $50.0 million in Q1 2022[457] - Dividends paid to stockholders in Q1 2023 amounted to $69.2 million, an increase from $62.0 million in Q1 2022[457] - As of March 31, 2023, Unum Group had available holding company liquidity of $1,343 million, primarily in bank deposits and corporate bonds[426]

Unum Group (NYSE:UNM) Q1 2023 Earnings Conference Call May 3, 2023 8:00 AM ET Company Participants Matt Royal - Senior Vice President-Investor Relations Rick McKenney - President and Chief Executive Officer Steve Zabel - Executive Vice President and Chief Financial Officer Mike Simonds - Executive Vice President and Chief Operating Officer Mark Till - Executive Vice President, and Chief Executive Officer-Unum International Tim Arnold - Executive Vice President, Voluntary Benefits and President-Colonial Life ...