Financial Data and Key Metrics Changes - Year-to-date premium growth increased by 4%, with earnings per share at $2.09, slightly below expectations due to volatility in the closed block [6][7][15] - Core business profitability trends remain strong, with return on equity for core operations near 20% and overall return on equity at 11.3% [9][11] - Adjusted after-tax operating income per share decreased from $2.13 to $2.09 year-over-year, reflecting strong core business returns that normalized from historic highs [15] Business Line Data and Key Metrics Changes - Unum US segment produced adjusted operating income of $334.9 million, down from $363.3 million a year ago, with premium growth adjusted for ceded business exceeding 4% [16][18] - Colonial Life adjusted operating income increased to $116.6 million, driven by 3.3% premium growth and 3.1% sales growth [19] - International segment adjusted operating income totaled $38.8 million, with premium growth of 9.5% and sales growth of 24.9% [21] Market Data and Key Metrics Changes - Group Disability produced adjusted operating earnings of $133.5 million, with a benefit ratio of 61.3%, aligning with low 60s guidance [16][17] - Persistency for total group was 89.8%, slightly down from 92.5% a year ago, but above expectations [18] - The closed block produced adjusted operating income of $14.1 million, down from $34.2 million in the prior year, impacted by lower alternative investment income [21][22] Company Strategy and Development Direction - The company is focused on managing the closed block strategy and reducing associated risks, with no future capital contributions expected [10][28] - Strategic actions include the successful closing of a long-term care reinsurance transaction and ongoing management of the block to strengthen long-term stability [9][10] - The company aims to invest in strategic initiatives, pursue selective M&A opportunities, and return capital to shareholders through dividends and share repurchases [11][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core business's ability to deliver sustainable results and maintain strong margins [31][32] - The company anticipates continued growth into 2026, supported by a disciplined approach to pricing and risk selection [12][31] - Management highlighted the importance of technology initiatives in driving engagement and retention among employers and employees [8][12] Other Important Information - The annual reserve assumption review resulted in a net increase in reserves of $478.5 million pre-tax, with strategic actions taken to de-risk the long-term care block [15][23] - The investment portfolio maintains an A-average rating with historically low exposure to below investment-grade securities [10][30] - The company returned nearly $1 billion to shareholders through share repurchases and dividends in the first nine months of the year [11][29] Q&A Session Summary Question: Can you provide more color on the statutory side of the LTC assumption review? - Management explained that the reserve charge impacted the entire block of business, with adjustments made that did not significantly affect statutory reserving levels [36][38] Question: What is the rationale for keeping capital in FairWind? - Management indicated that it is prudent to leave capital in FairWind due to strong protections in place [39][40] Question: How do the recent assumption changes impact the rate increase program? - Management confirmed that the changes in assumptions will flow through to the rate increase program, which is expected to be manageable and consistent with historical practices [44][85] Question: What are the expectations for group disability recoveries? - Management expressed confidence in the stability of recoveries, noting that the team effectively manages the group disability block [58][89] Question: What is the outlook for share buybacks and other uses of cash? - Management stated that capital deployment plans remain consistent, with a focus on growing core operations and pursuing selective M&A opportunities [93][94]

Financial Data and Key Metrics Changes - Year-to-date premium growth increased by 4%, with earnings per share at $2.09, slightly below expectations due to volatility in the closed block [6][7][15] - Core business profitability trends remain strong, with return on equity for core operations near 20% and overall return on equity at 11.3% [9][11] - Adjusted after-tax operating income per share decreased from $2.13 to $2.09 year-over-year, reflecting strong core business returns that normalized from historic highs [15] Business Line Data and Key Metrics Changes - Unum US segment produced adjusted operating income of $334.9 million, down from $363.3 million a year ago, with premium growth adjusted for ceded business exceeding 4% [16][18] - Colonial Life adjusted operating income increased to $116.6 million, driven by 3.3% premium growth and 3.1% sales growth [19] - International segment reported adjusted operating income of $38.8 million, with premium growth of 9.5% and sales growth of 24.9% [21] Market Data and Key Metrics Changes - Persistency for total group was 89.8%, down from 92.5% a year ago, but still above expectations [18] - Sales growth across core segments was robust, with Group Disability and Group Life showing favorable earnings power [7][8] - The investment portfolio maintained an A-average rating with historically low exposure to below investment-grade securities [10][30] Company Strategy and Development Direction - The company is focused on strategic actions to manage the closed block and reduce associated risks, including a successful long-term care reinsurance transaction [9][10] - Capital priorities include investing in strategic initiatives, pursuing selective M&A opportunities, and returning capital to shareholders through dividends and share repurchases [11][29] - The company aims to enhance its market position through technology initiatives and integrated benefit solutions [8][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver sustainable results and maintain strong capital positions, with no future capital contributions expected for long-term care reserves [28][30] - The operating environment is viewed as constructive, with ongoing discussions for potential future risk transfer deals [66] - The company remains focused on driving innovation and operational excellence while preparing for continued growth into 2026 [31][32] Other Important Information - The annual reserve assumption review resulted in a net increase in reserves of $478.5 million pre-tax, with strategic actions taken to de-risk the long-term care block [15][23] - The company returned nearly $1 billion to shareholders through share repurchases and dividends in the first nine months of the year [11][29] Q&A Session Summary Question: Can you provide more color on the statutory side of the LTC assumption review? - Management explained that the reserve charge impacted the entire block of business, with adjustments made flowing through to protections without significantly impacting statutory reserving levels [36][38] Question: What is the rationale for keeping capital in Fairwind? - Management indicated that leaving capital in Fairwind is prudent given the strong protections in place [39][40] Question: How do the recent assumption changes impact the premium rate increases? - Management confirmed that the changes are linked to the removal of morbidity and mortality improvement assumptions, which will flow through to the rate increase program [44][45] Question: What is the outlook for group disability recoveries? - Management expressed confidence in the stability of recoveries, noting that the process for managing group disability remains effective [58][89] Question: Will share buybacks potentially ramp up next year? - Management stated that while share repurchases have been increasing, the focus will remain on growing core operations and pursuing selective M&A opportunities [93][94]

Financial Data and Key Metrics Changes - Year-to-date premium growth increased by 4%, with earnings per share at $2.09, slightly below expectations due to volatility in the closed block [5][6][16] - Return on equity for core operations remains near 20%, while the overall return on equity is 11.3% [10][12] Business Line Data and Key Metrics Changes - Core business profitability trends show strong performance, with group disability and group life demonstrating favorable earnings power [7][10] - Unum US segment adjusted operating income was $334.9 million, down from $363.3 million year-over-year, with group disability adjusted operating earnings at $133.5 million [19][21] - Colonial Life adjusted operating income increased to $116.6 million, driven by a 3.3% premium growth [22] - International segment adjusted operating income totaled $38.8 million, with premium growth of 9.5% [23] Market Data and Key Metrics Changes - Persistency for total group was 89.8%, compared to 92.5% a year ago, indicating strong retention [21] - Sales growth across core segments was robust, with a 12% increase in sales for the quarter [7] Company Strategy and Development Direction - The company is focused on strategic actions to advance its closed block strategy and reduce associated risks, including a successful long-term care reinsurance transaction [11][12] - Investment priorities include strengthening core businesses, pursuing selective M&A opportunities, and returning capital to shareholders [13][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustainable results and emphasized the importance of digital initiatives in driving growth [14][36] - The company remains committed to proactive management of the closed block and believes no future capital contributions will be necessary [31][36] Other Important Information - The annual reserve assumption review resulted in a net increase in reserves of $478.5 million pretax, with strategic actions taken to derisk the long-term care block [17][25] - The investment portfolio maintains an A-minus average rating, with strong underlying statutory earnings of approximately $300 million [12][34] Q&A Session Summary Question: Can you provide more color on the statutory side of VLCC assumption review? - Management explained that the reserve charge impacted the entire block of business, with adjustments made flowing through to protections without significantly affecting statutory reserving levels [41][42] Question: What is the rationale behind keeping capital in Fairwind? - Management indicated that retaining capital in Fairwind is prudent given the strong protections available [46] Question: How do the recent changes impact the actuarial justified rate increases? - Management confirmed that the changes are linked to the removal of morbidity and mortality improvement assumptions, which will flow through to the rate increase requests [51][52] Question: What are the expectations for group disability recoveries? - Management expressed confidence in the stability of recoveries, noting that the team has effectively managed the group disability block [66][100] Question: What is the outlook for share buybacks and other uses of cash? - Management stated that capital deployment plans remain consistent, with a focus on growing core operations and pursuing selective M&A opportunities [108]

Financial Data and Key Metrics Changes - Year-to-date premium growth increased by 4%, with earnings per share at $2.09, slightly below expectations due to volatility in the closed block [4][5][13] - Adjusted after-tax operating income per share decreased from $2.13 in the same period last year to $2.09 this quarter [13] - Return on equity for core operations remains near 20%, while the overall return on equity is 11.3% [8][10] Business Line Data and Key Metrics Changes - Core operations premium grew 2.9%, exceeding 4% when adjusted for ceded business impacts [12] - Unum US adjusted operating income was $334.9 million, down from $363.3 million year-over-year, with Group Disability adjusted operating earnings at $133.5 million [14][15] - Colonial Life's adjusted operating income increased to $116.6 million, with premium growth of 3.3% [17] - International segment reported adjusted operating income of $38.8 million, with premium growth of 9.5% [18] Market Data and Key Metrics Changes - Persistency for total group was 89.8%, down from 92.5% a year ago, but above expectations [16] - Sales growth across core segments was nearly 4.5%, with Unum US growing nearly 4%, Colonial Life up over 3%, and International delivering 10% growth [5][12] Company Strategy and Development Direction - The company is focused on disciplined pricing and risk selection, with a commitment to long-term growth and profitability [7][10] - Strategic actions taken include a long-term care reinsurance transaction to manage risk and reduce the size of the closed block [8][9] - The company aims to invest in strategic initiatives, pursue selective M&A opportunities, and return capital to shareholders [10][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core business's ability to deliver sustainable results and maintain strong margins [11][27] - The company anticipates continued growth into 2026, supported by a robust capital position and strategic initiatives [27][28] Other Important Information - The annual reserve assumption review resulted in a net increase in reserves of $478.5 million pre-tax, with significant impacts on long-term care [13][20] - The investment portfolio maintains an A-average rating, with historically low exposure to below investment-grade securities [10][26] Q&A Session Summary Question: Can you provide more color on the statutory side of the LTC assumption review? - Management indicated that the adjustments impacted the entire block of business, with statutory reserving levels remaining well in excess of best estimate reserves [30][31] Question: What is the rationale for keeping capital in Fairwind? - Management decided to retain capital in Fairwind due to strong protections and a robust capital position [32] Question: How do the recent assumption changes impact the premium rate increases? - The changes are linked to the removal of morbidity and mortality improvement assumptions, which will flow through to the rate increase program [34][36] Question: What is the outlook for group disability recoveries? - Management reported stable recoveries and a benefit ratio around 62%, indicating confidence in the sustainability of recovery trends [41][42] Question: What are the plans for share buybacks and capital management? - The company plans to continue increasing share repurchases while prioritizing investments in core operations and selective M&A opportunities [58][59]

Financial Performance - Premium income for the three months ended September 30, 2025, was $2,688 million, a 23% increase compared to $2,6288 million for the same period in 2024[5, 5] - Net income for the three months ended September 30, 2025, was $397 million, a significant decrease from $6457 million for the same period in 2024[5, 5] - Adjusted operating revenue for the three months ended September 30, 2025, was $3,2458 million, slightly up from $3,2299 million in 2024[5, 5] - Net investment income for the three months ended September 30, 2025, was $4768 million, down 97% from $5278 million in 2024[12, 12] Segment Results - Unum US premium income increased by 19% to $1,7554 million for the three months ended September 30, 2025[28] - Unum International premium income increased by 14% to $2811 million for the three months ended September 30, 2025[28] - Colonial Life premium income increased by 33% to $4565 million for the three months ended September 30, 2025[28] - Closed Block premium income decreased by 101% to $195 million for the three months ended September 30, 2025[28] Sales Data - Unum US total sales increased by 161% to $1791 million for the three months ended September 30, 2025[13] - Unum International total sales increased by 301% to $497 million for the three months ended September 30, 2025[15] - Colonial Life total sales increased by 31% to $1246 million for the three months ended September 30, 2025[16]

Financial Performance - Premium income for Q3 2025 was $2,688.0 million, an increase from $2,628.8 million in Q3 2024, representing a growth of 2.3%[5] - Adjusted operating revenue for the nine months ended September 30, 2025, reached $9,923.3 million, up from $9,675.2 million in the same period of 2024, reflecting a growth of 2.6%[5] - Net income for Q3 2025 was $39.7 million, a significant decrease from $645.7 million in Q3 2024, indicating a decline of 93.8%[5] - Total revenue for Q3 2025 was $3,378.4 million, compared to $3,217.0 million in Q3 2024, marking an increase of 5.0%[5] - Total operating revenue for Unum Group rose by 0.6% to $3,250.4 million for the three months ended September 30, 2025, from $3,229.9 million in the prior year[30] - Total operating revenue for the nine months ended September 30, 2025, was $2,760.3 million, a decrease of 0.7% from $2,780.6 million in the same period of 2024[40] Equity and Liabilities - Adjusted stockholders' equity as of September 30, 2025, was $12,494.6 million, down from $13,078.5 million a year earlier, a decrease of 4.5%[6] - The total stockholders' equity (book value) as of September 30, 2025, was $10,908.8 million, slightly down from $10,951.4 million in the previous year[6] - Total liabilities increased to $52.77 billion as of September 30, 2025, compared to $50.99 billion at the end of 2024[23] - The company’s retained earnings grew to $13.25 billion as of September 30, 2025, up from $12.91 billion at the end of 2024[23] - Total Stockholders' Equity as of September 30, 2025, is $10,908.8 million, a decrease from $11,320.0 million on June 30, 2025[88] Sales Performance - Total sales for the Unum US segment reached $179.1 million in Q3 2025, a 16.1% increase from $154.3 million in Q3 2024[13] - Group Long-term Disability sales increased by 16.4% to $28.4 million in Q3 2025, compared to $24.4 million in Q3 2024[13] - Group Short-term Disability sales surged by 56.6% to $24.9 million in Q3 2025, up from $15.9 million in Q3 2024[13] - Total sales for the Unum International segment rose to $49.7 million in Q3 2025, a 30.1% increase from $38.2 million in Q3 2024[16] - Life insurance sales increased by 11.6% to $31.8 million in Q3 2025, compared to $28.5 million in Q3 2024[18] Investment Income - Unum US reported a net investment income decrease of 5.7% to $151.9 million for the three months ended September 30, 2025, down from $161.0 million in the previous year[30] - Net investment income for the three months ended September 30, 2025, was $75.3 million, down from $78.7 million in the same period of 2024[40] - Net Investment Income for the three months ended September 30, 2025, was $224.7 million, down 20.9% from $284.3 million in the prior year[56] Benefits and Expenses - Total benefits and expenses for Q3 2025 were $3,323.9 million, a significant increase from $2,402.4 million in Q3 2024[11] - Benefits and expenses for Unum US increased by 3.4% to $1,486.0 million for the three months ended September 30, 2025, compared to $1,437.7 million in the same period of 2024[31] - The total benefits and expenses for the three months ended September 30, 2025, were $680.0 million, a decrease of 0.6% from $684.0 million in the same period of 2024[40] Ratios and Returns - The adjusted operating return on equity for Unum US was 23.9% in Q3 2025, down from 25.5% in Q3 2024[5] - The benefit ratio for Unum US was 59.4% in Q3 2025, slightly up from 58.5% in Q3 2024[37] - The benefit ratio for the three months ended September 30, 2025, was 61.3%, an increase from 59.1% in the same period of 2024[40] - The adjusted operating income ratio for the three months ended September 30, 2025, was 17.0%, down from 19.8% in the same period of 2024[42] Market Performance - The company maintained stable ratings across major agencies, with a financial strength rating of 'A' for several subsidiaries[9] - The leverage ratio for the nine months ended September 30, 2025, was 23.4%, compared to 21.3% for the same period in 2024, indicating an increase in leverage[6] - The leverage ratio and book value per common share are important measures that exclude certain components of accumulated other comprehensive income (AOCI)[70] Corporate Segment - Total Operating Revenue for the Corporate Segment was $20.0 million for the three months ended September 30, 2025, compared to $12.5 million in the same period of 2024[58] - Loss Before Income Tax and Net Investment Gains and Losses for the Corporate Segment was $(47.7) million for the three months ended September 30, 2025, compared to $(64.7) million in the same period of 2024[58] - The Adjusted Operating Loss for the Corporate Segment was $(47.7) million for the three months ended September 30, 2025, compared to $(49.4) million in the same period of 2024[58] Reinsurance and Reserves - The reinsurance agreement with Fortitude Re covers approximately 21% of total Closed Block long-term care future policy benefits and 15% of Unum US individual disability future policy benefits as of December 31, 2024[68] - The third quarter of 2025 saw a net reserve increase of $478.5 million before tax, while the third quarter of 2024 experienced a net reserve decrease of $357.4 million before tax[68]

Group 1 - The article does not provide any specific information or insights regarding a company or industry [1]

Core Insights - Unum Group (UNM) is anticipated to show improvements in both revenue and earnings for Q3 2025, with revenue expected at $3.30 billion, reflecting a 2.4% year-over-year growth, and earnings estimated at $2.16 per share, indicating a 1.4% increase from the previous year [1] Financial Performance Expectations - The Zacks Consensus Estimate for premium income is projected at $2.7 billion, suggesting a 2.3% increase from the year-ago quarter [4] - Miscellaneous investment income is estimated at $531.8 million, with a consensus estimate of $532 million, indicating a 0.7% increase from the prior year [5] - Total benefits and expenses are expected to reach $2.8 billion, influenced by higher policy benefits, commissions, and other expenses [9] Segment Performance - Unum U.S. operating revenues are estimated at $2 billion, while Colonial Life's revenues are projected at $485.4 million [7] - Unum International is expected to generate $291 million in operating revenues, benefiting from improved sales and persistency [7] - The performance of Unum U.S. and Colonial Life is likely driven by higher premium income and favorable recoveries in various product lines [6] Earnings Prediction Model - Unum Group currently has an Earnings ESP of -0.26%, indicating that the most accurate estimate of $2.15 is lower than the consensus estimate of $2.16, suggesting a lack of conclusive evidence for an earnings beat [2] - The company holds a Zacks Rank of 3, indicating a "Hold" rating [3]

Core Viewpoint - Unum Group is set to release its third quarter 2025 results on November 3, 2025, followed by a conference call on November 4, 2025, to discuss the results and future guidance [1][2]. Financial Information - The earnings release and financial supplement will be available on the company's investor website [1]. - The anticipated future earnings release dates include: - Fourth Quarter 2025 – February 3 / February 4 at 8 a.m. - First Quarter 2026 – April 28 / April 29 at 8 a.m. - Second Quarter 2026 – July 28 / July 29 at 8 a.m. [5]. Company Overview - Unum Group, a leading international provider of workplace benefits and services, has been operational for over 175 years [6]. - The company reported revenues of $12.9 billion in 2024 and paid out $8.0 billion in benefits [6]. - Unum Group is recognized as one of the World's Most Ethical Companies by Ethisphere® [6].

Core Insights - Unum Group's premiums are benefiting from healthy in-force block growth and higher sales [1] - The company has maintained profitability through conservative pricing and reservation practices, with premium income increasing across its main operating segments [2] - Long-term projections indicate sales growth of 8-12%, premium growth of 4-7%, and adjusted operating earnings per share growth of 8-12% [3] Financial Performance - Unum Group expects improved sales growth in the second half of 2025, with flat sales growth anticipated for the full year [4] - The company projects after-tax adjusted operating earnings per share to be approximately $8.50 in 2025 [4] - Unum Group maintains a strong capital position, with an expected year-end Risk-Based Capital (RBC) ratio of 425% to 450% and holding company liquidity between $2 billion and $2.5 billion [4] Shareholder Value - The board has increased the shareholder dividend by 15%, effective in Q3 2024, marking the 15th dividend hike in the last 14 years [5] - Unum Group plans to complete share repurchases in the range of $500 million to $1 billion by the end of 2025, enhancing its attractiveness for yield-seeking investors [5] Industry Context - Other players in the Accident and Health insurance industry include Aflac, Trupanion, and Globe Life, with varying earnings performance [7][10][11] - Aflac has benefited from strategic growth investments and product enhancements, while Trupanion focuses on the pet insurance market [8][10] - Globe Life is experiencing revenue growth driven by premium increases in its Life and Health Insurance segments [11]