Unum(US:UNM)2025-04-30 20:32Financial Performance - Total revenue for Q1 2025 was $3,091.6 million, a decrease of 3.4% compared to $3,200.3 million in Q1 2024[22] - Net income for Q1 2025 was $189.1 million, down 52.2% from $395.2 million in Q1 2024[22] - The company reported a net investment loss of $206.8 million in Q1 2025, compared to a net investment loss of $1.2 million in Q1 2024[22] - The company’s total comprehensive income for Q1 2025 was $534.0 million, down from $763.2 million in Q1 2024[24] - For the three months ended March 31, 2025, net investment income was $513.2 million, slightly down from $513.5 million in the same period of 2024[128] - The company recognized a net investment loss of $206.8 million for the three months ended March 31, 2025, compared to a loss of $1.2 million in 2024[129] - Adjusted operating income for the total company was $466.8 million for the three months ended March 31, 2025, compared to the previous year's adjusted operating income[202] - Adjusted operating income for the three months ended March 31, 2025, was $466.8 million, down from $514.5 million in the same period of 2024[213] Revenue and Premiums - Premium income increased to $2,702.9 million in Q1 2025, up 3.5% from $2,610.3 million in Q1 2024[22] - Gross premiums recognized in the statement of income for the three months ended March 31, 2025, were $2.5921 billion, an increase from $2.5078 billion in 2024[167] - The Unum US segment reported a group long-term disability premium income of $504.5 million, slightly down from $516.7 million in the prior year[201] - Colonial Life's accident, sickness, and disability premium income increased to $247.1 million from $243.2 million year-over-year[201] - Unum US segment contributed $1,780.9 million to total premium income, while Unum International and Colonial Life segments contributed $246.7 million and $457.3 million, respectively[202] Assets and Liabilities - Total assets as of March 31, 2025, were $62,459.8 million, an increase from $61,959.3 million at the end of 2024[20] - Total liabilities rose to $51,245.8 million as of March 31, 2025, compared to $50,998.2 million at the end of 2024[20] - Stockholders' equity increased to $11,214.0 million as of March 31, 2025, from $10,961.1 million at the end of 2024[20] - The total liability for future policy benefits decreased to $36.8229 billion as of March 31, 2025, from $38.3828 billion in 2024[165] - The net liability for future policy benefits, after reinsurance recoverable, was $29.9347 billion at the end of the period, down from $30.8788 billion in 2024[165] Investment and Fair Value - The company reported a total of $1,450.6 million in private equity partnerships as part of its long-term investments[66] - The total fair value of private equity partnerships was $1,435.3 million, with unfunded commitments of $777.1 million as of March 31, 2025[61] - Fair value measurements for financial instruments are classified into three levels based on the observability of valuation inputs, with Level 1 representing quoted prices in active markets[46] - The company uses observable and unobservable inputs in measuring the fair value of fixed maturity and equity securities, with Level 1 fair values equating to active TRACE pricing[48] - As of March 31, 2025, total financial instrument assets carried at fair value amounted to $37,313.6 million, with Level 1 assets at $8,063.2 million, Level 2 at $27,669.2 million, and Level 3 at $145.9 million[65] Policy Benefits and Claims - Benefit payments for the period totaled $822.0 million, which is consistent with the previous year's payments of $819.2 million, indicating stability in claims[170] - The total liability for future policy benefits was reported at $8,611.1 million, down from $9,054.0 million in the prior year, marking a decrease of approximately 4.9%[171] - The net liability for future policy benefits stood at $8,492.7 million at the end of Q1 2025, a decrease from $8,848.2 million in Q1 2024, reflecting a reduction of about 4.0%[171] - The expected future benefit payments for the total Unum are projected at $17,799.0 million as of March 31, 2025, compared to $17,908.8 million in the previous year, indicating a decrease of 0.6%[173] Credit Losses and Allowances - The total allowance for credit losses increased from $2.2 million at the beginning of the period to $3.8 million by the end of the period, reflecting credit losses on securities not previously recorded[92] - The allowance for expected credit losses on mortgage loans was $16.6 million as of March 31, 2025, compared to $16.1 million at December 31, 2024[97] - The allowance for credit losses as of March 31, 2025, is $16.6 million, reflecting a slight increase from $16.1 million on December 31, 2024[110] - The company had one specifically identified impaired mortgage loan with a carrying value of $8.7 million as of March 31, 2025, down from $9.2 million at December 31, 2024[113] Regulatory and Accounting Changes - The company adopted ASU 2023-07 for segment reporting, enhancing disclosures of significant expenses for reportable segments, which includes the requirement to disclose the title and position of the Chief Operating Decision Maker (CODM) and how they assess segment performance[31] - The amendments in ASU 2023-09 require greater disaggregation of income tax disclosures, including a quantitative threshold of 5% for specified categories related to income tax rate reconciliation and income taxes paid[35] - The company will adopt ASU 2024-03, which mandates the disclosure of disaggregation of certain income statement expense line items, effective January 1, 2027[38] - The adoption of ASU 2023-09 will expand disclosures but is not expected to impact the company's financial position or results of operations[37] Mortgage Loans and Real Estate - The carrying amount of mortgage loans was $2,204.3 million as of March 31, 2025, down from $2,240.6 million at December 31, 2024[97] - The mortgage loan portfolio is diversified, with the largest property type being industrial at $670.7 million, representing 30.7% of the total[100] - The fair value of mortgage loans was estimated at $1,992.4 million, with a carrying value of $2,187.7 million[79] - The company has $1,975.4 million in mortgage loans, with a carrying value of $2,224.5 million[80] Derivatives and Hedging - The total notional amount of derivative financial instruments is $4,474.3 million, with a fair value of $100.0 million for assets and $220.4 million for liabilities[149] - The total cash flow hedges notional amount is $2,728.1 million, with a fair value of $31.4 million for assets and $187.5 million for liabilities[149] - The aggregate fair value of all derivative instruments with credit risk-related contingent features in a liability position was $220.4 million as of March 31, 2025[136] - The company expects to amortize approximately $6.6 million of net deferred gains on derivative instruments during the next twelve months[138]